Power Insight Vol 10 ; No 4 by Vision Media Group

INR. 100/-

RNI No.:MAHENG/2010/39548

Vol. No.10

Issue No. 4

October - November 2019

Cover Focus

Wind Power Sector -India Pg.18 - Sector Overview & Outlook Pg. 22 - OffShore Wind Trends

The Indian wind energy sector has changed dramatically over these years. The sector has seen some remarkable developments and opportunities, on the one hand, but on the other there are some challenges and issues that affect the sectorâ&#x20AC;&#x2122;s growth.

Industry Insight

Market Review

Special Feature

Power & Distribution Transformers

Solar PV O&M Market

Solar - Wind Hybrid

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October - November 2019

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October - November 2019

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Editor’s // Note

Is India really on track to achieve its wind power targets

he global wind power market grew from $71.6 billion in 2010 to $96.4 billion in 2018, registering an increase of 35 per cent and is expected to hit $124.5bn by 2030, as per GlobalData. Such a growth has been predicted on account of a significant increase in capacity addition expected in the Asia-Pacific region during 2019–2030. India is the second-largest wind power market after China in the region with a wind energy potential of 302 GW at 100 m hub-height. As India switched from a feed-in tariff scheme in early 2017 to a reverse auction system - this transition has slowed down the growth momentum for some time as not enough auctions were held, leading to a fall in new projects. However, the market is making a strong comeback as seen in 2018-19 where around 10,000 MW of projects were auctioned off by the Solar Corporation of India (SECI) and witnessed a strong participation by developers. Today wind tariffs have stabilized, and are least likely to fall further as per industry experts. Moreover, India is well-qualified in most supply chain management with over 25 years ‘ experience with wind farm installations. Nevertheless, techno-economic strategies based on global interactions can still be imbibed. The industry currently just needs money so that improved technology can continue to develop taking the wind power sector to new heights. However, wind power in India to reach 60GW targets by 2022 is facing headwinds because of land acquisition issues and grid bottlenecks that are leading to delays to project implementation in the sector. Based on these factors Fitch Solutions Macro Research, unit of Fitch Group, in its outlook for the country’s renewable energy sector has forecast India to install 54.7 GW of wind capacity by 2022, compared to the 60 GW government targets. The authorities must ensure the bottlenecks are regulated, safeguarding all shareholders ‘ interests so that the industry can grow in a sustainable manner.......

Pankaj V Chauhan Editor - Power Insight

Email : pankaj@vision-media.co.in

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Power Insight

October - November 2019

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Cover Focus Wind Power Sector

18 Wind Power Sector - India

Editor:

Pankaj V Chauhan

Over the past couple of years, India’s is struggling with wind power growth which slower than before on account of various reasons. There is an urgent need to address and overcome the prevailing sector challenges so as to keep the trajectory of this rate of growth steeper in order to meet country’s renewable energy sector goals.

Market Overview & Outlook

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Creative Head: Prashant S. Kharat

22 Offshore Wind Power Trends & Development

Graphic Designer: G. Sanjay

Offshore wind power provides huge promise, but its use on a large scale poses many technological and operational challenges. Recently, India has been pushing for offshore wind energy and its plans are worthy of appreciation. But recognizing all regulatory and technical challenges is critical for countries such as India, where offshore wind deployment is not yet under way...

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October - November 2019

India’s Ailing - Thermal Power Sector The current energy demand curve is on a downward spiral. The average PLF for thermal units in the April-September period was the lowest in over a decade while133 thermal power stations across the country are stated to be shut down due to a lack of demand.

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Regulars

03 06 08 12 48 50

Editor’s Note Conventional Updates Renewables Updates T&D Sector Updates Company Release Events Diary

wHATâ&#x20AC;&#x2122;S // INSIDE

Market Review

Solar O&M Market - India

Need & Approaches to Solar O&M - India

A number of issues may arise during the functioning of a solar PV plant. Thus, to get optimum efficiency, performance and returns from a solar PV plant, a dedicated O&M activity is a key requirement..

Solar PV O&M - Market & Evolving Trends

An insight into opportunities, progress and trends across solar PV O&M market in India

Solar O&M - Key Issues & Challenges

Insight into key issues and challenges in solar O&M space in India that need to be addressed for smooth market growth and better services....

Industry Insight

Transformer Industry

Power & Distribution Transformers - India An insight into Indian transformer industry opportunities and challenges. While analysing into the key driver that has driven a steady growth in recent years and looking into future prospects..

Smart Transformer â&#x20AC;&#x201C; Technology Trends

Smart digitized transformers that provide remote control and data analytics of critical parameters for predictive maintenance are now gaining traction in India, on account of their increased deployment from utilities...

Special Feature

Wind-Solar Hybrid - Reluctant Growth The concept of solar wind hybrid can take a few years before india can see its wide spread implementation on account of several technical challenges involved...

Next Issue Editorial Attraction Sector Focus: Indsutry Insight Market Review Special Feature

Power Transmission Sector Meters & Metering Solutions Solar PV Inverters Smart Grid

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October - November 2019

sECTOR // UPDATES

Conventional News

Thermal Power

Half of country’s installed Thermal Power units were shut down due to low demand

Thermal electricity generation stagnates during first two quaters of FY20.

As on November second week, of the 262 coal, lignite and nuclear units reported to be out-of-service for a variety of reasons, nearly half — or 133 units — were shut as operators were faced with low demand or were unable to ink pacts with distribution utilities for sale of power.

Electricity generation from the thermal power plants has stagnated during April-September period of this fiscal year. CEA data shows that total electricity produced by the thermal power plants inched up only by a modest 0.92 per cent to 534.5 billion units (BU). By contrast, nuclear and hydro power plants logged 25.5 % and 15 % growth in electricity production in the same period. The pan-India electricity generation rose by 3.5 % to 658.55 BU.

faced with “reserve shutdown,” a technical term for a unit shut down due to lack of demand, while another 14 units on account of developers not managing to ink PPAs with electricity distribution utilities.

A total of 119 thermal units across mostly India’s northern and western heartland were

Thermal Power

Only 10% of stressed coal power sector assests resolved: ICRA

In terms of capacity addition, though, thermal power generation zoomed 4695 per cent to add 3345 Mw during the first half or April-September period of FY20. On the contrary, no fresh capacity was added in hydro and nuclear power. The nationwide rated power capacity from all sources stood at 363.36 Gw at the end of September 2019.

The resolution of stressed thermal assets remains slow despite the various measures undertaken by the government and lenders.

Also, the Plant Load Factor (PLF) of thermal power plants has been consistently declining since the beginning of this fiscal year.

While in natural gas, the absence of any policy measures for use of imported R-LNG (re-gasified liquefied natural gas) with subsidy support makes the resolution for the sector uncertain.

ICRA in its report stated that only about 10% of the 40 GW stressed coal-based capacity achieving resolution, mainly through acquisition by a new sponsor. The balance capacity is under various stages of resolution, including through Insolvency and Bankruptcy Code (IBC).

Thermal Power

Coal power capacity utilisation may fall to 35% by 2022: KPMG

KPMG, has predicted that capacity utilisation for many coal-fired power plants in India will drop to 35-40% by 2022 as renewable power generation sources rise.

As per KPMG, even a scenario with 130 GW of renewables instead of the planned 175 GW by 2022 could result in plant load factor (PLF) dropping to 3540 per cent for many coal plants.

Average capacity utilisation of coal fired power plants are around 51% at present and some plants may have to be seasonally shut or mothballed, KPMG has predicted.

“Increased penetration of renewable energy in the electricity system will lead to duck curve effects, requiring flexible operation of conventional power plants,” it said in its report.

October - November 2019

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Coal

Coal consumption by thermal power plant may take a hit in India The amount of the fossil fuel consumed by the country’s power generators, most of them coal-fired, during the ongoing financial year that began in April is on track to fall for the first time in over a decade. The above statement is based on an analysis of official data by Charles Worringham, a contributing researcher at the Institute for Energy Economics and Financial Analysis, a non-profit based in Australia. The reasons noted for this decline is a combination of factors, including the rise in electricity generation from other sources and the overall slowdown in the country’s economy. From April to October this year, coal consumption by thermal power plants declined by 2.3 million tonnes compared to the corresponding period last year. The fall in India’s coal consumption by the electricity generation industry began in August, and worsened over the next two months.

SECTOR // UPDATES Hydro Power

Hydro Power

India’s Hydroelectricity generation jumps highest in five years India’s hydroelectricity generation soared 16 per cent this financial year so far, the highest in five years, as the share of power generated from non-fossil fuels jumped to a record high, feeding the rising energy demand of the world’s fastest-growing major economy. Electricity generation in India rose 7.4 per cent in the first quarter ended June 2019, and 6.7 per cent in July. However, it was flat in September and tapered in the October as excess rainfall in several parts

BHEL bags Rs 200 crore order to upgrade Chilla hydro project BHEL has received an order worth Rs 200 crore for renovation, modernisation and uprating (RM&U) of Chilla Hydro Electric Plant from Uttarakhand Jal Vidyut Nigam Limited (UJVNL) for RM&U of the 4x36 MW, the engineering firm said in a statement.

of the country reduced demand for air conditioning and irrigation requirement. Power Minister R K Singh, stated that though in October the generation fell by almost 13 per cent but, only from conventional sources of generation. Renewable sources of electricity were not accounted for. Solar power generation rose in the month and so did hydroelectric power.

Located in Pauri Garhwal district of Uttarakhand, the plant comprises four units of 36 MW each, which will be uprated to 39 MW each, according to the statement.

Conventional Power

Thermal Power

Half of India’s coal-fired plants fail to comply with emission norms

A recent study notes that more than half of India’s coal-fired power plants which were ordered to modernise their equipment to curtail air pollution are set to miss the deadline. The thermal power companies had already received an extension to meet the deadline for emission standards which was previously set as December 2017. India’s plan for the plants to comply with emission norms have two phases; some plants have the time till the end of December 2019 while others have time till the end of December 2022. By December 2022, as many as 440 plants, which produce 166.5 gigawatts of power, are supposed to comply with regulations. Also, a total of 267 units, which produce 103.4 gigawatts, are supposed to be compliant between December 2019 and February 2022, that is, these units have 27 months to meet the requirements.

Russia’s Rosatom is interested in partnering with Indian companies

BHEL’s scope of work in the order includes design, engineering, manufacturing, supply, dismantling, erection, testing and commissioning of critical parts of Turbines, Generators, Governors, Controls & Instrumentation, Protection and Balance of Plant (BoP).

Russia’s Rosatom State Atomic Energy Corp is interested in partnering Indian companies to work on small- and medium-sized nuclear reactors. This collaboration interest with Indian firms is in the backdrop of India’ strategy to expand its footprint in Africa. “For those countries that don’t have significant demand or the system capacity to absorb large capacity power units, a similar solution with 50-100 MW units can be useful. We are also in talks with some international partners for development of such units in third countries. We want to enhance our cooperation beyond execution of present projects,” Nikita Mazein, vice president of Rusatom Overseas said in a statement.

Major equipment for the contract will be manufactured and supplied by BHEL’s plants at Bhopal, Jhansi, Rudrapur and Bengaluru, thereby providing impetus to the government’s ‘Make in India’ initiative.

Hydro Power

Small Hydropower market to worth USD 3.0 Billion by 2024 according to MarketsandMarkets™ latest report. According to market research report “Small Hydropower Market by 2024” published by MarketsandMarkets™, the global Small Hydropower Market is projected to reach USD 3.0 billion by 2024 from an estimated market size of USD 2.6 billion in 2019, at a CAGR of 2.4% during the forecast period. The report states that Asia Pacific is currently the largest Small Hydropower Market, followed by Europe and North America. China, Vietnam, and India are the world’s fastest-growing economies, contributing largely to the

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Asia Pacific market. The Asia Pacific market is expected to grow during the forecast period owing to the investments in rural electrification and offgrid energy generation. The 1–10 MW segment is expected to dominate the Small Hydropower Market in 2019 owing to the small hydropower installations in various countries across the globe. This higher share can be attributed to the small-scale decentralized projects being deployed in developing nations, especially in Asia Pacific region.

Power Insight

October - November 2019

sECTOR // UPDATES

Renewable News

Renewable Energy

Renewables to account for 55% of energy mix by 2030: R K Singh Power minister RK Singh at the meeting of BRICS energy ministers stated that the country will exceed its target of installing 200 GW of renewable energy capacity in 2022.

Renewable Power

India needs USD 30 billion investments per year in renewable sector, backed by a strong regulation to preserve contract sanctity While, speaking at Singapore International Energy Week, Arunabha Ghosh, chief executive officer of Council on Energy, Environment and Water, stated that India ideally needs USD 30 billion investment per year in the renewable sector, backed by a strong regulation to preserve contract sanctity. “Today, we are averaging about USD 11 billion a year in renewable investments, we ideally should be getting USD 30 billion per year in

India has already installed renewable energy capacity of 83,000 MW, while another 31,000 MW is being executed and 35,000 is under bidding, he said. “So this becomes 140,000145,000 MW. In hydro, we have installed capacity of around 45,000 MW and under installation capacity is about 13,000 MW. Which makes it around 60,000 MW. So we will cross 200,000 MW capacity of renewable energy by 2022,” he said. Singh added that India’s energy situation had changed significantly. has aggressively expanded its wind and solar energy capacity in the past five years, helped by aggressive bidding by companies.

India,” he said. He added that, there is need to enforce regulation, make transparent bidding process at tendering stage and preserve the sanctity of contract. He said the sanctity of contracts means the authority cannot change terms and conditions of the contract and if done so, the investor or project operator is compensated as per original contract.

Renewable Power

India installed over 40 W of renewable capacity in last 5 years

A total of 40,922 MW of renewable energy capacity had been installed in India during the last five years through solar, wind and small hydro power projects. This was according to information provided by the Central Electricity Authority (CEA), which was presented in the Rajya Sabha by Union Minister of State (Independent Charge) for New and Renewable Energy, RK Singh.

Renewable Power

IRENA praises India’s political will on renewable energy development India is showing political will to develop renewable energy despite challenges such as land regulations, Francesco La Camera, Director General of the International Renewable Energy Agency, made the remarks while releasing a report on “A Climate-Safe and Sustainable Energy System” at the Asia Clean Energy Summit.

Renewable Power

India could expect USD 100m investment a year in renewables: AIIB Beijing-headquartered Asian Infrastructure Investment Bank (AIIB) expects an annual private investment worth USD 100 million a year in solar and wind projects in India from next month.

projects in the Renewable Energy sector in India,” said Pang after addressing the South Asian Diaspora Convention. Pang also expected the private investments in renewable energy sector in India as foreign direct investment, relieving the Indian government of project financing challenges.

“AIIB expects to tap as much as USD 100 million green and renewable projects in India from next month,” bank’s Director General (Investment Operations) Pang Yee Describing India as a “vibrant private sector market”, Pang said private investments valiEan said. date business models of infrastructure and “In a month’s time, you will see approval of ensure it is economically sustainable.

October - November 2019

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“The most important thing is the political will (of India),” he said at a press conference, highlighting the Indian government’s commitment to achieve its renewable energy targets as part of its stronger efforts to manage climate change. Speaking on the challenges in developing renewable energy, Camera said, “naturally, in India it is not simple reality.”

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October - November 2019

sECTOR // UPDATES Wind Power

Solar Power

Developers tepid response for SECI’s 1200 MW wind power tender

Solar accounts for 9.2% of India’s total installed capacity

Only two bidders have showed interest in a wind energy tender floated by stateowned Solar Energy Corporation of India, indicating to the lukewarm response wind tenders have been receiving lately from developers. The 1,200 MW tender was issued by SECI, for the second time this week at a ceiling tariff of Rs 2.93 per unit. It had been revised from Rs 2.85 per unit in an effort to stimulate participation. Most likely, the ceiling tariff will not be increased any

further because discoms are reluctant to buy power if the tariff is more than three rupees. On the other hand, industry experts attribute the poor participation to lack of suitable land and transmission capacity, not the ceiling tariff.

Renewable Power

Masdar’s made an investment of USD150 mn in Hero Future Energies

India, Saudi Arabia ink 12 agreements in sectors including renewable energy

Masdar, an Abu Dhabi Future Energy Co., has acquired around 20% in Hero Future Energies (HFE) for USD150 million. “The strategic investment of $150 million by Masdar will help facilitate the further expansion of HFE in India and other key growth markets,” Hero Future Energies said in a statement.

India and Saudi Arabia have signed in November, 12 MoUs and agreements in key sectors including renewable energy. The agreements were signed in the presence of Prime Minister Narendra Modi and Saudi Crown Prince Mohammed bin Salman.

The investment in the renewable energy firm comes against the backdrop of India’s growing strategic engagement with the UAE. The deal also comes at a time when credit availability for renewable energy firms has dried up. “Hero Future Energies and Masdar are ideal long-term strategic partners. We have clear alignment in our core ambitions. We are committed to advancing the development, commercialization and deployment of cutting-edge renewable power solutions,” Rahul Munjal, chairman and managing director of Hero Future Energies, said in the statement. IFC had invested $125 million in Hero Future Energies in 2017. Hero Future Energies plans to build a 5 gigawatt (GW) portfolio by 2022 and expand its operations in Africa and India, and be present across the solar energy value chain. Alongside traditional renewable projects of solar and wind, Hero Future Energies is focusing on futuristic renewable energy projects.

According to Mercom’s India Solar Project Tracker, between July 2019 and September 2019, India added more than 2.2 GW (tentative) of solar energy capacity. Cumulative solar installations at the end of September 2019 reached 33.8 GW, representing 9.2% of the total power generation capacity in India.

October - November 2019

In the quarter ending September 2019, India’s total renewable energy capacity (including large hydro) stood at 130.68 GW. This translates into approx. 35.7% of the total installed power capacity in the country. The share of solar in the total power capacity mix grew from 8.73% at the end of June 2019 to 9.2% at the end of September 2019.

An MoU was inked on cooperation in the field of renewable energy between the Saudi Ministry of Energy and India’s Ministry of New and Renewable Energy. Earlier, the Prime Minister delivered the keynote address at the third Future Investment Initiative (FII), also dubbed as the ‘Davos in the Desert’ and met with several ministers of the Saudi leadership.

On the other hand, wind power accounted for 36.9 GW of the total installed power capacity and nearly 10.09% of the overall power capacity mix as of September 2019.

Renewable Power

Waiver of transmission charges for renewable energy extended The Power Ministry has given a nine month extension during which renewable energy project developers will be freed from interstate transmission system charges for the transmission of electricity generated by their renewable energy plants. The ministry of power has extended the period by nine months that was earlier opened until the end of March 2022, so that all solar and wind projects commissioned during that year will secure a 25-year waiver for the grid charges.

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As before, however, the waiver is only granted to projects allocated through a competitive bidding process and which sell power to electricity distribution companies under power purchase agreements to enable the energy off-takers to fulfill renewable purchase obligations (RPOs). This is the second extension of the waiver after an order issued in February last year extended the original scheme, which had been due to expire this year for solar projects and wind farms.

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October - November 2019

sECTOR // UPDATES Power Transmission

Power Transmission

Tamil Nadu gets USD 451 mn loan from ADB to strengthen its power transmission capacity

T&D News

ATL gets LoI for transmission project in Gujarat

The Asian Development Bank (ADB) has sanctioned a USD 451 million loan to the state of Tamil Nadu for a project that will enable better power transfer between the southern part of the Chennai-Kanyakumari Industrial Corridor (CKIC) and the northern regions where there is higher power demand. Adani Transmission Ltd (ATL), the largest private sector power transmission company operating in India, has received a letter of intent from REC Transmission Projects to build, own, operate and maintain a transmission project in Gujarat for a period of 35 years.

The project is estimated to cost USD 653.5 million, of which the government will provide USD 202.5 million . It is expected to be

completed by the end of 2024. The project also aims to set up a transmission link to transfer 9,000 MW of extra capacity from Virudhunagar in the southern CKIC northwards to Coimbatore and Chennai. Plans for a 400-kV network to pool power generated at renewable and thermal power projects in Thoothukudi district to Virudhunagar are also in the pipeline.

Power T&D

AIIB to fund T&D projects in Assam and other infra projects

The project Lakadia Banaskantha Transco Ltd will comprise of about 360 circuit km of 765 kV direct line along with 765 kV bays at Lakadia and Banaskantha substations. It is primarily being constructed to establish transmission system associated with longterm applications from Gujarat’s wind and solar energy zone in Radhanesda.

Beijing-based Asian Infrastructure Investment Bank (AIIB) is evaluating loans worth over USD 2.2 billion for funding power T&D projects in Assam, along with other infra projects in India.

The transmission line will be used to evacuate power to Lakadia pooling station. The project has been awarded to Adani Transmission through a tariff-based competitive bidding process.

AIIB - vice-president and chief investment officer DJ Pandian said, “The electricity distribution project may not be financially viable but, that’s a public good, the government has to do it. That’s why we want guarantee from the government of India.”

AIIB will start appraising a $400-million loan for strengthening electricity distribution in Assam and an equal amount in two phases for a transmission project in the state.

Power Transmission

Power Grid Corporation bags two transmission projects in Uttar Pradesh Power Grid Corporation of India (PGCIL) was declared as the successful bidder in two intra-state transmission system projects of Uttar Pradesh under tariff-based competitive bidding (TBCB). PGCIL will construct 765/400/220 kilovolt (kV) GIS substations in Meerut and Rampur; and 400/220/132 kV GIS substations in Simbhaoli and Sambhal with associated transmission lines. The projects are to be established under BOOM (build, own, operate and maintain)

October - November 2019

basis. The company received letters of intent for the projects on 22 November 2019. The announcement was made after market hours yesterday, 22 November 2019.

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Power Transmission

ReNew Power Transmission eyeing double-digit growth

ReNew Power, which is expanding across the energy sector supply chain, is aiming to achieve double-digit growth in power transmission. The company, which recently started participating in transmission project tenders, is hopeful of grabbing $20 billion worth of Central and state-level power transmission network projects. Goldman Sachs-promoted ReNew Power started its ‘New Ventures’ division to explore business opportunities in energy storage, power transmission, floating solar, and wind-solar hybrid projects. The company targets a doubledigit market share in power transmission in the coming 3-5 years. In order to translate this the company will be participating in 40-50 per cent of the transmission projects on offer.

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October - November 2019

sECTOR // UPDATES Power T&D

Demand for power T&D equipment to grow at 8.2 per cent Demand for electric power transmission and distribution equipment in India is forecast to rise 8.2% per year to $15.8 billion in 2023, the Freedonia Group, a division of MarketResearch.com, has predicted in a recent report on the transmission and distribution sector. Factors supporting increases include strong growth in China - by far the largest national market - which will account for 33% of new demand rapid industrializa-

Upgrades and expansion of the nation’s underdeveloped electricity sector – both to reduce the large amount of power currently lost during transmission and to improve access to electricity in rural areas will provide strong opportunities for growth in the country, as consumers switch away from alternative sources of power such as generators.

Power Distribution

Stringent prosecution of violators for illegal power connections in J&K

To ensure uninterrupted power supply and bring down pilferage, the Jammu and Kashmir administration has decided to make certain that all consumers have metered connection and strictly enforce provisions of the Central Electricity Act for stringent punishment to violators. According to an order issued by the administration of the Union territory, all power distribution corporations of Jammu and Kashmir have been directed to ensure that electric metres are installed at all industrial and commercial establishments within two months. Officials have been directed to conduct special drives in their respective jurisdictions to ensure metering and collection of dues in a time-bound manner. “There are a large number of electrified households in the Union Territory without metering and electricity dues are realized on flat rate basis. A huge power consumption and power theft has been observed in such cases,” the order stated.

tion in India, the third-largest market for these products in the world growing populations, particularly in developing countries where electrical infrastructure is still being established continued integration of electricity generated by renewable energy sources into existing power grids.

October - November 2019

India’s electricity demand fell by 13 per cent in October 2019 India’s electricity demand fell 13% in October led by a sharp reduction in offtake from the industralised states like Gujarat & Maharashtra. Electricity demand during October this year was down to 98 billion units as against 113 billion units in the same month last year, data available with the Central Electricity Authority (CEA) said. This is the third consecutive month of low power demand which has slowed since August. However, government officials attributed it to late rains and favorable weather conditions. The reduction in demand this year is unusual in October as the country has been witnessing exceptionally high demand in September-October every year.

Power Transmission

BSES and Ola Electric Mobility to set up battery swapping stations in Delhi A memorandum of understanding (MoU) was signed recently between the BSES discoms and Ola Electric Mobility for setting up battery swapping stations at identified locations in south, west, central and east Delhi areas. The agreement, valid for a period of three years, will hasten adoption of electric vehicles in the city. Co-founder of Ola Electric Mobility, Ankit Jain said the agreement will augment company’s efforts for laying a strong foundation to enable smooth functioning of Electric Vehicles (EVs) across the country by creating a widespread network of charging solutions that vehicle owners and operators can rely on. “As part of the agreement, Ola Electric will manage and operate these stations through a cloud based software system. On its part, BSES will facilitate in identification of strategic locations for battery swapping (and charging) stations, depending on the optimum usage and potential of electric vehicles in the area,” he said.

Power Distribution

EESL and NIIF forms JV for Smart Meters deployment across India Energy Efficiency Services Limited (EESL), and National Investment and Infrastructure Fund (NIIF) have announced a new Joint Venture (JV), IntelliSmart Infrastructure Private Limited (“IntelliSmart”), to implement the smart meter roll-out program of power distribution companies. With a focus on expediting the deployment of smart meters across the country, IntelliSmart plans to operate on a large scale by leveraging the expertise and capital of both the shareholders. “The centre plans to install 25 crore

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smart meters in the next few years. With the replacement of 25 crore conventional meters with smart meters, billing efficiency can improve from 80 per cent to 100 per cent. Smart meters can improve billing efficiency and have the potential to increase discom revenues by Rs 1,104 billion,” the companies said in a joint statement. IntelliSmart will be working collaboratively with all stakeholders to procure, deploy and provide operations and maintenance for the smart meter infrastructure.

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Special // ARTICLE

India’s Ailing

Thermal Power Sector The current energy demand curve is on a downward spiral and 133 thermal power stations across the country are stated to be shut down due to a lack of demand.

hile there’s enough capacity now, India has finally overcome the capacity constraint that dogged power generation since long. Frequent load shedding and tripping of the electricity grids, seems under control. That, indeed, is a significant achievement. The total generation capacity of the country today stands at 365 GW that is good enough to meet any surge in demand for the next few years even if economic growth picks up pace. India’s share of renewable energy is 22 per cent and growing. The government has set itself as aspirational green energy target of 175 GW (achieved 83 GW so far) by 2022. The leading sources of renewable in country currently include Solar and Wind power. While solar energy is available only during the day time and on the other hand, wind is seasonal. Thus, conventional sources play an important role for a sustainable grid, as it provides for usage of clean energy when available and switches to conventional sources at other times. Therefore it is needed that planners impart significant flexibility to the grid to leverage

October - November 2019

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clean energy effectively and optimally use the thermal assets – backbone of Indian power sector.

Scary Sector Picture However, recent media reports have painted a scary picture of the country thermal power sector. One report mentioned that as many as 262 thermal power units had shut down operations by early November. While, another report stated that Coal India’s output fell to its lowest in six years in September this year, adding that its coal shipment that month was a five-year low. On the other hand, Central Electricity Authority (CEA) data revealed that the plant load factor (PLF) of thermal units during the April-September 2019 period at 57.67 per cent, that was the lowest in a decade. Even worse picture is that by end-September, it had dropped further to 51 per cent. Now the question arises, that if the circumstances are so severe, then the nation should have been in turmoil under these conditions with a crushing energy shortage. But, more or less this fiscal, high demand has been met for

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Special // ARTICLE electricity across the country and the deficit was only 0.7 per cent.

The Underlying Issue The underlying problem of the country’s power sector is that currently we have a situation where installed capacity in the country is uncomfortably high than the peak demand. In October the average peak demand (of around 165 GW) was less than half the total generation capacity. Thus it was derived by media that thermal power plants with an aggregate capacity of 65,133 MW have been shut down for want of demand. This has also raised concerns of a fresh set of NPAs hitting the already fragile banking system. This fear is a bit over-blown as most of these plants have a power purchase agreement (PPA) which has a ‘Take or Pay’ clause. Only those without a PPA and/or a coal linkage will face liquidity issues and possible default of their debt obligations.

out that since the country has added renewables, therefore, dependency on thermal has reduced but overall power demand has increased as compared to last year.

to be the only solution as the country can longer work on the principle of Cross-subsidisation of free or cheap power by charging the industry more..

Summing Up

On the other hand, shutting down so many power plants and running the rest at half their capacity is not an optimal strategy. The need of the hour thus is flexible generation capacity, something India lacks in its overall energy mix.

If we take a closer look we will find Responding to a series of stories that that the industry is stressed by the came out in the media about the ‘distress’ in the thermal power sector, R.K. Power demand declined more than Singh, India’s MNRE Minis13% year on year in October this ter dismissed the reports year, the steepest monthly decline in of Thermal Power demand slowdown stating that a decade. Thus, in this age of renewthe government has able energy - versatility has become brought in flexibility and all the more important, apart from have taken major steps to the economic cycles, and the resulting reduce inefficiency in the sector. uncertainty of demand..... While referring to media headlines that mentioned how thermal plants PLF fell to an all-time low in October below 50 per cent - the first time since April 2011. The stories blamed it on lack of growth in electricity consumption, a key determinant for measuring economic growth. The minister pointed

drop in demand from the well-paying category of consumers like industry users, especially in states such as Maharashtra, Tamil Nadu and Gujarat, whereas low-paying domestic consumers have actually grown. For such a problem, tariff rationalisation seems

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The electricity sector in India is in a relative better situation. Now that we are sitting on surplus capacity and in a position to meet every unit of demand, the situation demands for closing down of inefficient generation units. As India’s per capita electricity consumption at 1,181 units is still far lower than China’s and the United States, the headroom for growth is immense. Thus a concerted effort to deal with the prevailing issues in the power sector will ensure and add to India’s growth into a developed economy over the coming years. n

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sECTOR // FOCUS Cover Focus

Wind Power Sector - India

Wind Power Sector Indian Market Overview & Outlook

he main factor driving wind power market growth worldwide is renewable, reliable and affordable energy requirements. While the production of wind power may not be the most lucrative land use, as well as for many people find it responsible for noise and aesthetic pollution, but this is more environmentally friendly in contrast to conventional power stations, as there are a few adverse effects from wind farms.

world.

The regulatory framework and policy structure in several regions and countries have led to significant improvements towards promotion of wind energy and allowing these countries to take the lead in growth of wind energy.

Wind power has been growing at a good rate worldwide, during the past decade. Global installed wind power capacity increased from 197.6 GW in 2010 to 594.5 GW in 2018 at a compound annual growth rate (CAGR) of around 15 per cent. The global wind power markets size was estimated at around USD 96.4 billion in 2018, reflecting a rise of 35 per cent rise from an estimated size of USD 71.6 billion in 2010.

While, India being a relatively newcomer to wind production compared to Denmark or the US, has strongly established itself in recent past years to become the fourth largest wind power installed country in the

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Over the past couple of years, Indiaâ&#x20AC;&#x2122;s is struggling with growth slower than before on account of various reasons. There is need to address and overcome the prevailing sector challenges so as to keep the trajectory of this rate of growth steeper in order to meet its energy sector goals.

Global Market Scenario

This growth was largely driven by favour-

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SECTOR // FOCUS

State wise Installed Wind Capacity ason 31 October 2019

able government policies in countries such as China, the US, Germany, Canada, Brazil and India. A major boost in the investment is due to increase in capacity installations, led by countries such as China, the US, Germany, and India. According to GlobalData forecasts, a significant capacity addition is expected in the Asia-Pacific region during the period 2019–30 that would be driving the market to reach USD124.5 billion that in 2030. When realized, this would equate to a 29 per cent increase based on the figures for 2018.

Indian Market Overview As per various market reports, the Asia Pacific region leads the world wind power market and has been projected to maintain a decent growth surge, over the coming. India at the verge of

States

Installed Wind Power Capacity (MW)

Tamil Nadu Gujarat Maharashtra Karnataka Rajasthan Andhra Pradesh Madhya Pradesh Telangana Kerala Others Total

9231.77 7203.77 4794.13 4753.40 4299.73 4092.45 2519.89 128.10 62.50 4.30 37090.03

a renewables revolution is the second largest wind market in the region of Asia-Pacific following China. With the total installed wind power capacity of 36.625 GW, as of 31 March 2019, India is the fourth largest installed wind power capacity in the world after China, the US and Germany. In India, 70 per cent of the annual wind generation coincides with the SouthWest Monsoon during the five months period from May to September. Currently, wind power accounts for almost 10 per cent of the total installed electricity generation capacity in India and contributed around 62 TWh of generation in FY2018-19, representing approximately 4 per cent of country’s total electricity generation. The wind power capacity utilisation factor in the country during the fiscal year 201819 was estimated at almost 19.33 per cent.

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If we look at present wind power potential in India and respective achievement in the sector – the country has been able to tap a little over 10 per cent of the total potential. National Institute of Wind Energy (NIWE) has assessed the wind power potential at 100 meter above ground level and estimated that there exist over 302 GW of wind power potential in India. Gujarat has the maximum potential followed by Karnataka and Maharashtra. On the other hand the total installed capacity at the end of October 2019 stood over 37 GW. Of all the states that have currently having installed wind power capacity, Tamil Nadu tops the list with the largest installed wind power generation capacity in the country, at the end of October 2019. It is followed by Gujarat, Maharashtra, Karnataka, Rajasthan and Andhra

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sECTOR // FOCUS Pradesh. Together these six states currently account for around 92 per cent of the country total installed wind power capacity.

Prevailing Trends Since 2017, the bulk of India’s wind power has been allocated to developers through auctioning, taking the wind energy sector away from FiTs. Since then, wind power rates have plummeted rapidly in India. During recent wind energy auctions, the levels of the wind energy tariff have fallen to a record low of INR 2.43 per kWh (without direct or indirect subsidies). To make the process more transparent and less risky for developers, the union government announced the new tariff wind power auction guidelines in December 2017. The country has an ambitious goal of building 175 GW of renewable energy by 2022, of which 60 GW will be from wind energy. In order to promote satisfactory growth in the wind power segment to meet the development targets, the country is looking to tender 20 GW of wind energy by March 2020, according to the annual reviews published by the Ministry of New and Renewable Energy (MNRE) in December 2018, with a two-year implementation period. However, in the last two-three years the wind power industry has lost both its part and its share in the renewable power portfolio, with a negative installation growth in the segment. The wind industry is hit with this downturn - as the projects are facing problems related to land and network availability in India, according to experts in industry. Developers also have trouble

October - November 2019

with widespread network congestion and generation curtailments. Looking at the prevailing scenario, Fitch Solutions Macro Research, unit of Fitch Group, has forecasted India to install around 54.7 GW of wind power capacity by 2022, in its recent outlook for the country’s renewable energy sector. The research firm mainly attribute it to land acquisition issues and grid bottlenecks that will lead to delays to project implementation in the sector and will eventually lead to missing out on targets.

Recent Developments The Indian government has on the other hand decided to promote offshore wind projects in the country. In September 2015, the India’s cabinet has approved the National Offshore Wind Energy Policy. With this, the Ministry of New & Renewable Energy (MNRE) has been authorized as the Nodal Ministry for use of offshore areas within the Exclusive Economic Zone (EEZ). In this regard, medium and long-range off-shore wind capacity additions targets of 5 GW by 2022 and 30 GW by 2030 have also been announced by MNRE. National Institute of Wind Energy (NIWE) is in the phase of conducting offshore wind potential studies. Initial studies have revealed good potential on the coasts of Tamilnadu and Gujarat. For precise

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wind quality measurements, one LiDAR has been installed near Gujarat coast, which is generating data about the quality of off-shore wind since November, 2017. India seems pacing up rapidly towards offshore wind energy development as the Nodal Ministry (MNRE) & Nodal Agency (NIWE) calls with the Expression of Interest (EoI) inviting the bidders for development of first 1000MW commercial scale offshore wind farm in India, near the coast of Gujarat.

Way Forward India is very experienced and quite competent in most supply chain management, with over 25 years of experience in wind farm installations. A new revolution, policies and capital has now pushed investment in the wind energy market in India. Independent power producers (IPP) are growing expenditure in contrast to manufacturing ventures. India is a nation with limitless renewable energy potentials and wind energy is a source of great importance for both meeting the energy needs of India and developing its economy. But this potential is not getting used in effective manner as a number challenges come in the way of wind power development in the country. Due to these problems, future of wind energy development in the country has only been deteriorating. If the government could look into way for elimination of these challenges, then India will set a new record in the sector as the market of wind power generation will see an unprecedented growth. n

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sECTOR // FOCUS Cover Focus

Wind Power Sector

Offshore Wind

Trends - India Offshore wind power provides huge promise, but its use on a large scale poses many technological and operational challenges. Recently, India has been pushing for offshore wind energy and its plans are worthy of appreciation. But recognizing all regulatory and technical challenges is critical for countries such as India, where offshore wind deployment is not yet under way...

ffshore wind turbines are installed in the vicinity of water systems and a very efficient wind energy production process. Europe pioneered in this technology way back in 1991, mainly looking at the advantage of more energy generation offered by an offshore wind plant compared their counterparts on ground. As of today, more than 1,600 wind turbines enough to supply electricity to half a million households are located at more than 50 offshore locations across 10 European countries. Offshore wind power provides huge promise, but its use on a large scale poses many technological and operational challenges. Offshore wind turbines are not used much in India as the country has not been able to develop an offshore turbine industry being a developing economy. Nevertheless, looking at the scope, some companies have come forward to set up the offshore wind turbines in India. Gujarat is the first place which is planning to set up the offshore wind power project. The plans are worth appreciating, but for countries

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SECTOR // FOCUS five windmills, each with a capacity of 6 MW. Last but not least, India took the first significant step towards developing offshore wind farms. The Union Ministry for New and Renewable Energy (MNRE) in April 2018, released an Expression of Interest (EOI) to set up country’s first GW offshore wind farm in Gulf of Khambhat off the coast of Gujarat. The EOI received an overwhelming response from 34 Indian and International players. The EoI drew responses from some of leading technology providers in the world. Respondents to the EoI included Sterlite Power Grid, Greenko, Mytrah Energy, Inox Wind, Suzlon Energy, and ReNew Power Ventures. Some of the well-known foreign participants included Orstead, Alfanar, Deep Water Structures, EON Climate & Renewable, Terraform Global, Macquarie Group, Shell, and Senvion. The initiative seems to be well timed with Indian Government plans to boost renewable energy to reach a renewable potential of 175 GW by 2022. Nonetheless, offshore wind generation

like India, where offshore wind deployment has not yet taken off, understanding all the regulatory and technical challenges is critical.…

The First Step

In order to achieve renewables capacity of 175 GW by 2022, government plans to increase renewable energy sources. Nonetheless, offshore wind output is not part of this target because India has separately set very ambitious additional capacity targets in the offshore wind power sector....

In recent years, India has been pushing for offshore wind energy to take advantage of it’s approximately 127GW of wind power potential – primarily off the coasts of Tamil Nadu, Gujarat and Maharashtra.

The first National Offshore Wind Energy Policy was published in October 2015, outlining the Government Roadmap. Then India explored options in March 2018 to build a small state owned offshore wind estate off the coast of Tamil Nadu near the Pamban island. The plan was to build four or

are not part of this target, so India has set very aggressive additional capacity goals in the offshore wind energy sector independently. The country plans to have an operational offshore wind energy capacity of 5 GW by 2022 and increase it to 30 GW by 2030. However, it will be a few years before India can see an offshore wind farm. The call for EoIs is merely a preliminary

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step, as the document released by the NIWE doesn’t yet mention details of the project and only talks about a meeting of those interested in the idea.

Key Developments The first offshore wind power tender in India seems to be coming soon in light after several initial hiccups. In January 2019, MNRE came up with draft offshore wind energy lease rules. These rules mainly highlights that the players awarded lease in identified areas would have exclusive rights to carry out geological and other geotechnical studies & surveys. It also mentions that the allocated lease areas would be 100-500 square km. In addition, it states that the lease periods would include five years to carry out surveys, and 30 years for construction and operation. Lease renewals beyond this would be awarded at five-year increments. These rules, once finalized, would lead to faster development of the offshore wind sector as provisions have been provided for the state and central governments to work in tandem. The Indian government is also planning to support the country’s first offshore wind project with viable gap funding worth USD 909 million. There is an agreement in principle on the funding and is now likely to be discussed by various ministries and finally approved by the Cabinet of Ministers. The funding for the viability gap ensures that the project continues at the agreed rate with the purchasers. State power distribution utilities reportedly agreed to purchase energy generated from power plant an INR 3.50/kWh. Here, the government financing would make up for the difference from the financially viable tariff to the agreed energy purchase tariff. Once the government approves the viability gap funding, little to no hurdles may remain in the path to the country’s

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October - November 2019

sECTOR // FOCUS first-ever offshore wind energy tender. Meanwhile, a number of measures have been taken to lay the foundations for the first project by the National Wind Energy Institution (NIWE) and other agencies in India. In the proposed sites off the coast of Gujarat comprehensive wind assets surveys have been completed and further surveys in the near future are expected.

Challenges & Issues Potential offered by offshore wind power is enormous, but not without the technical and execution level challenges, which make it difficult and costly to harness offshore wind power. Offshore windmills are costlier than offshore windmills. Furthermore the cost of building and constructing offshore wind projects is much higher than onshore wind projects. Meanwhile in India the costs are likely to be higher, because of the lack of installation and support ships, the local sub-structures and a shortage of qualified manpower.

The high cost of capital leads to tariffs higher than current onshore wind rates. Tariffs of INR 7–10 per unit for offshore winds in India are anticipated compared to the current level of around INR 2.43 for onshore wind energy. However, as the tariffs of offshore wind energy in the European markets

There is also a lack of the historic data, including the resource map and the bathymetrical data (sea depth information in different positions), which is important for identification of suitable wind turbine sites, the construction of foundations and the energy production estimation. As, this data is not available which could lead to ambiguity and delay in project design.

Clearances for offshore projects in India will likely to involve a long list of ministries and department. It might result in a lengthy process that may eventually lead to project delays and cost overruns. This aspect needs the government attention for speedy clearance and approvals...

have decreased substantially, experts believe that they can also achieve a commercially viable stage in India with time. Thus, for a few years, incentives and strategies for controlling the sector need to be enforced by the government like what was done in the early days - for onshore wind market.

Among other related issues, the major constraint is grid. Subsea cabling and development of transmission infrastructure is another challenging task towards making transmission lines available for the project.

Then there are issues with manufacturing or procuring equipment. Offshore wind farms typically have larger turbines with longer windmill blades. But most firms in India don’t yet make such high-capacity machines, so components will have to be imported.

Conclusion The government’s plan will put India in the same league as other countries globally, who are investing in offshore wind energy. However, it will have to look into speedy clearance and approvals. Since, the list is quite comprehensive of ministries / departments of Central government that are likely to participate in the process of granting clearances for offshore wind energy projects in India, this might hold up the approvals and, eventually lead to overall project delays and cost overruns. If India is able to achieve the 5,000 MW target, it will be one of the first markets to do so on a large scale. The hope is that India would have a unique chance to tap into this unexplored market with its political will of self-dependence on energy security backed by the necessary policies, legislation, economic, and technical support. n

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Market // REVIEW Market Review

Solar O&M

Solar O&M in India

Need & Approaches

Though, solar energy needs trifling maintenance compared to other generation sources, however, a number of issues may arise during the functioning of a solar PV plant. Thus, in order to get optimum efficiency, performance and returns from a solar PV plant, a dedicated maintenance and operation activity is a necessary requirement.... |

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ndia is betting big on solar PV power to meet its oncoming electricity requirements. The country has witnessed substantial installation of solar PV projects across the country, over the past 4-5 years. However, after building the solar PV project, an efficient operation and a diligent maintenance of the same is must. As compared to other generation sources, solar energy needs trifling maintenance. However, investments in photovoltaic solar plants are made to last for 20â&#x20AC;&#x201C;25 years or more and that is why operations and maintenance problems need to be dealt with utmost care in order to achieve a true ROI figures.

Need for O&M There are number of issues that are involved or arise during the functioning of a solar PV plant. Thus in order to get optimum efficiency, performance and returns from a solar pv plant, a dedicated maintenance and operation activity is

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Market // REVIEW ates less energy.

Hotspots: It is a common misleading

belief that panel efficiency is at best under maximum solar irradiance. In reality, higher temperatures can damage solar panels and cause hot spots to emerge. Because solar cells are bound to strings, only one hot spot can cause many cells to operate poorly bringing down the efficiency of the plant.

Inverter Failure: Though solar PV

systems are generally reliable, however inverter failures in photovoltaic power plants are the most common cause of system downtime and leads to reduce returns on investment (ROI). The planned maintenance of inverters should therefore be considered as a key element of O&M.

Improper Orientation: Static PV solar systems have a problem of panel orientation. Due care must be taken on the part of the consumer to ensure that the installer takes the necessary steps to identify the ideal panel direction.

tions for support structures should also be included in inspection routine in order to prevent water erosion.

Environment Challenges: Ultimately, the panels should be protected against wind, snow and dust depending on environmental and climatic conditions of the solar pv project area. In these cases, routine cleaning and maintenance is necessary.

Other Common issues : In addition to above, there are certain other unplanned maintenance requirements that includes - tightening cable connections that have loosened, replacement of burst fuses, lightning damage repair, intruder damage or during cleaning, SCADA faults rectification, structure faults repair, system tracking faults rectification, and so forth.

O&M Activities & Approaches:

In general, maintenance of a solar PV plants can be divided into two areas scheduled maintenance and unscheduled maintenance. While, under scheduled maintenance, everything is planned in advance and targeted Likewise, maintenance controls are towards failure prevention along with also needed for tracking systems. Such ensuring the optimal operation of the installation. On the other Inverter failures in photovoltaic power hand, unscheduled maintenance is carried out in response plants are the most common cause to failures. of system downtime and leads to

reduce returns on investment (ROI). The planned maintenance of inverters should therefore be considered as a key element of O&M in a solar photovoltaic power plant....

a necessary requirement. Different components of PV solar plant may fail during the operation. Some of the common issues faced during operation of a solar PV plants are discussed below;

Panel Cracking & Discoloration:

The cracks in panels can lead to panelâ&#x20AC;&#x2122;s failure or optimum efficiency losses. This crack can happen in the new ones too, if being damaged during the manufacturing process. On the other hand, another common defect is visual discolouration that reduces the quantity of sunlight entering a solar cell. It decreases the sensitivity of solar cells to solar radiation, and cre-

controls are set out in the documents of the manufacturer and specified within the conditions of guarantee.

Structural Integrity: Mechanical

integrity and corrosion symptoms should be regularly checked of module mountings structure, cable channels and any other structural elements that are built for the solar PV power plant. In addition, an inspection of founda-

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Another way of classifying PV O&M approaches is to divide them into three categories, Preventative maintenance (PM); Corrective or reactive maintenance and Condition-based maintenance (CBM) - each with various cost-benefit and risk profiles.

Preventative maintenance (PM):

This requires regular equipment inspection and service â&#x20AC;&#x201D; at intervals dictated by type of equipment, environmental conditions and warranty conditions under an O&M services arrangement - in order to avoid breakdowns and excessive output losses. The perceived ability to lower the likelihood of unplanned PV system downtime makes this approach more

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Market // REVIEW and more popular.

labour work, if not optimally designed.

This involves tasks such as the washing of panels, drainage of water, Vegetation growth control, wildlife protection and power generation system maintenance (e.g. Inverter operation, BOS inspection and tracker maintenance).

Condition-based maintenance (CBM): In order to predict failure and to give priority to maintenance activities and resources, the CBM maintenance approach uses real-time data.

India currently has over 30GW demand for solar PV operations and maintenance (O&M). Through 2022, more than three times the target set through 100 GW is projected to be reached, offering a significant business potential in solar O&M space, over the coming years..... It also includes the detection and resolution of problems during the life of the PV system, the maintenance of the data acquisition and monitoring system as well as the maintenance of the site (e.g. security, road / closure repair, compliance with the environment, snow removal). Though the initial costs of PM programs are modest, however, the underlying structure of PM can create superfluous

nance: This strategy addresses the needs for maintenance of equipment and failures after it occurs and is therefore designed to reduce accidental failures so as to mitigate unplanned downtime.

CBM systems are being set up for increased efficiency in O&M by a growing number of third party Integrators and key turnkey providers.

Key activities included in corrective / reactive Maintenance are - On Site Monitoring, Non-critical Reactive Repair, High Priority Critical Reactive Repair (addresses of production problems degradation) and Warranty Enforcement.

In general CBM consists of active monitoring â&#x20AC;&#x201C; replacement of equipment for remote and on-site options (planned and unplanned), and Warranty Enforcement (planned and unplanned).

This conventional industry standard allows low initial costs, but also increases the risk of component failure and includes higher backend costs. Although reactive maintenance is expected to take place in the course of a 20-year life of a facility,

Nonetheless, increased efficiency comes with an additional price tag due to software and hardware requirements for interaction & monitoring. In addition, the relative innovation of CBM can create maintenance challenges, partly caused by equipment malfunction monitoring and/or erratic data collection.

Corrective or reactive mainte-

However, it can be reduced by means of more proactive PM and CBM maintenance strategies.

Way forward The overall market for solar photovoltaic operations and maintenance (O&M) has currently crossed the 30 GW mark in India. By 2022, it is expected to exceed more than thrice to reach the 100GW targets set presenting a significant business opportunity in solar O&M space over the coming years. With emergence of a more sophisticated and structured approach in the solar O&M market, third party providers are able to deliver more value to solar investors and owners. However, India has a very pricecompetitive environment in solar O&M space when it comes to preserve both contract volumes and margin. Also there is a risk that there could be also a downside to that if the competition goes â&#x20AC;&#x2DC;too farâ&#x20AC;&#x2122; and providers go to service levels that are not sufficient to protect the asset and to ensure its performance. Though, we have not reached there yet, but certainly seeing the tight price levels, especially in the utility scale segment, the situation is a little worrisome. n

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Solar O&M Market & Evolving Trends An insight into opportunities, progress and trends across solar PV O&M market in India...

&M project outsourcing is critical for developers and plant owners so as to focus on their core business activities. While handling out a solar power plant under an O&M contract, the aspirations of the owners are for maximisation of generation output and plant life sustainability â&#x20AC;&#x201C; as a typical Solar PV plant has life of over 20 years. In addition, the plantâ&#x20AC;&#x2122;s O&M has become even more important for ensuring overall productivity for the plant and can have significant effects on the project IRRs with lowering tariffs in India. Thus, the O&M service provider is largely responsible for the operation and maintenance of the solar power plant ensuring efficient and quality production levels throughout service cycle for the satisfaction of the customer

Market & Trends In recent years, the solar power industry in India has grown significantly. While the plant sizes are increasing, the developers are expecting improved performance levels that has opened up new market opportunities for Solar plant operation and maintenance service providers. The major trends that are shaping the solar O&M market in India include the number of factors. First of all, we are witnessing increased scale and density of solar plants in India backed by continued and strong market growth. Increased scale and density helps the vendors because the more plants you have in a given territory, www.powerinsight.vision-media.co.in

the more efficient you can become in serving these plants and the more you can optimize your costs. Further, over the years the sector has witnesses an increase in awareness and focus on these topics of O&M and asset management from the investors, from the developers and from EPCs as well. This increased recognition and focus from these key stakeholders has been playing a key role in shaping the Solar O&M and asset management market in India. In addition, now with more plants exiting their initial warranty period - the O&M market in India is opening up for fresh O&M contracts. Typically the O&M contracts are tied to a period that usually matches with the initial warranties. At the expiry of the warranties period, the holder is left with an option to either choose to extend the contract with the original supplying provider (often by the EPC or the Developer) or to move to a thirdparty service provider.

Evolution of Independent Players It is important for industries to rely on the expertise of solar PV O&M companies for the need for daily and optimum solar panel management. Though, many a time companies and plant owners engaged in solar PV projects believe they can perform O&M activities through an available in-house team. On the other hand, solar PV EPC providers believe that they are in a better position to carry out O&M activities, since they have built the project and are also

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Market // REVIEW equipped with qualified engineers. This allows the customer to hold the EPC’s feet ‘to the fire’ and also our ‘feet to the fire’ because, we commissioned the plant. If we come back and say, well, this plant wasn’t built right, we don’t have such excuses. We have to say this plant is according to what was designed and so we can provide those performance

vice business for solar O&M. This could include installation firms, developers, manufacturers or other service providers now doing O&M. Such solar power maintenance companies are trained to keep the PV system up and take corrective action whatever is required.

They are in position to do a much better job than the rest being equipped with engineers who have received extensive solar Increased scale and density of solar operation and maintenance training. plants in India backed by owners ex-

pectations for improved performance levels in solar plants is responsible for shaping the solar O&M market in India. Thereby opening up new market opportunities for solar plant operation and maintenance service providers. ....

In the fast moving solar PV operations and maintenance (O&M) market, independent service providers or ISPs who were once marginal players’ are now capturing significant levels of market share related to O&M and asset management services. These are organizations active in the solar market that have created a ser-

With years of field training to their credit, they perform automatic as well as efficient system checks to ensure that solar power plants are evaluated in line with international standards.

Their consistent monitoring and inspections guarantee instant actions when production drops. Overall, O&M teams take care of all the aspects of maintaining a solar power plant thus ensuring that there are no glitches in the smooth functioning and power supply to their clients. So this is really a clear opportunity and it is going to increase because as the number of new plants has been in-

creasing these last few years, you take that same growth curve and you shift it by two to five years, depending on the length of the warranty, and then you have warranty exits that follow that same growth curve. Thus, these factors are definitely positive for independent vendors in particular.

Making Choice: The first value is choice because the developer and plant owners usually wouldn’t even look to an alternative provider to the EPC. This is typically because they know the plant well because they designed and built it. It is also an advantage for owners as an EPC cannot shift the blame to someone else, particularly when it comes to warranties. But at the same time, ISPs and ASPs are increasingly competitive in those situations, especially when there’s an RFP process with competitive bids. Here the investors and owners now have more choice from increased competition, meaning that providers are going to fight to offer the best deal.

To Sum - Delivering value is the key There’s an increased requirement of higher performance guarantee and plant availability numbers. This coupled with reducing price expectations, is making the market highly competitive to operate in. Survival in the market can only be ensured through best in class service offerings, aligned with customer expectations, at competitive pricing. Moving forward, as a more sophisticated and structured approach emerges in the solar O&M market, third party providers will able to deliver more value to solar investors and owners. The key to all of this is to be able to provide performance guarantees. n

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Market // REVIEW

Solar O&M

Key Issues & Challenges Insight into key issues and challenges in solar O&M space in India that need to be addressed for smooth market growth and better services....

he total addressable market for solar PV operations and maintenance (O&M) has crossed the 30 GW mark in India. It is likely to more than triple by 2022 to exceed 100 GW. This presents a significant business opportunity for solar O&M players. While outsourcing O&M for the projects, investors/ developers focus on various aspects. One is if the O&M contractor can provide safe services, because the investors don’t want to have their names in the press in relation to an accident at a solar site. Another aspect is the technical capability of an O&M player. The third aspect is price. It is not the most important aspect but it is a key one. While the O&M story is on a growth path and people in the solar industry are just portraying a rosy image of the situation when actually, it is not that easy a space to operate in. There are some key issues and challenges in this space that needs to be addressed.

Key Issues & Challenges Grid problems are one of India’s major challenges. Grid fluctuations and instability sooner or later leads to loss of equipment and higher downtime. In addition, there is handful of unique technical and operational challenges facing utility solar operators in India that poses challenges for O&M service providers to keep plants running in opti|

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Power Insight

mum conditions. These can be broadly be categorised into challenges related to location and cost among other related challenges and the crucial one being Nonavailability of adequate supply of water along with incomplete EPC work …

Cost Challenges: Of the many challenges in the solar O&M space, cost is one of the major challenges faced by the service providers, particularly when maintenance is more crucial. Safety, followed by workforce at the site and module cleaning process, is the biggest contributor to costs. Plant owners while cutting down the costs expect service providers to deliver the best of services at the lowest price possible. While O&M costs have notably over the years however plant owners expectations for inclusion of additional services within the contract – poses major challenge for O&M service providers. Thus, with price reductions, the pressure and need is increasing for optimisation of processes so as to optimise cost. Consequently, increased reliance on technology for plant monitoring, module cleaning and remote plant performance monitoring will be necessary to reduce critical cost components and stay competitive on the market. Though there are a number of quality conscious

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Market // REVIEW players in the solar power space, but there are a number of other players who are only price conscious. If O&M is not done properly, over a year or two, issues start cropping up. Thatâ&#x20AC;&#x2122;s where industry best practices come into the picture, but to follow the best practices one need sufficient funds and budget where small service providerâ&#x20AC;&#x2122;s face challenges.

Remote Location Challenges: Since most of the

utility scale plants are located in remote locations, local problems also begin to appear such as burglary, theft, agitation, etc. In addition, a dedicated workforce is necessary because projects on the ground need more attention. However, O&M service providers find it difficult to establish an experienced team for remote sites. Furthermore, the O&M team faces another challenge of insufficient basic facilities at these remote locations. Though these issues, to some extent - can be addressed and eased through focus on sustainable development and CSR initiatives - including provision of skills training and the creation of jobs to ensure local inclusion helps toward smooth functioning of the plant.

Water Availability Challenges: The availability of water is another issue. The shortage of water supply in India is a problem for almost 50 per cent of the utility scale projects. In large-scale projects, there is an enormous water crisis as for proper cleaning the water is not available satisfactorily. Robotic cleaning may be a choice as the modules can be cleaned every night before the moisture sticks the dust on the following morning. Nonetheless, it depends again on the type of dust or soil deposition of the components. On the other hand, especially in the rooftop space it is difficult or practically impossible to clean because the dust is settling on the modules throughout the day. The next morning due to moisture this dust sticks to the plates. Where solar projects are built on industrial rooftops, as it is a difficult task to obtain entry permits and work permits in which a lot of time of the working day just goes away. Thus the availability of water is very important; otherwise O&M service provider has to depend on dry cleaning. The dry cleaning services increases the cleaning costs while the effectiveness of cleaning decreases. Therefore, water has an incredibly important role to play along with the Water quality, which is very critical again. The majority of industries do not provide the right water quality and the module gets affected by the hard water or recycled water.

Incomplete EPC work: Many a times, when the O&M

responsibility begins - an incomplete EPC work, too, leads to uncalled for problems for an O&M service provider in the field. This is on account of cost cutting by the EPC and the investor during the execution of a project with which the O&M supplier has essentially to work with. For example, it is important to have a centralised control room and a SCADA system that can be centrally monitored in a large-scale venture. If for cost cutting an investor or EPC did not install central monitoring, then it becomes difficult to zero down on the equipment unit underperforming.

Way forward: Over time, the Solar O&M industry in India has grew in line with growing business models and adopting the most promising technologies. In todayâ&#x20AC;&#x2122;s solar O&M space, we are seeing a growing role in digitisation and automation. Though there is price pressure, however, and O&M companies should try to adopt new technologies to see how the costs can be decreased and how quality reliability can be sustained. Since O&M falls in the service space, customers will always expect something more and something better, so there is need for continuous innovations. n

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October - November 2019

INDUSTRY // INSIGHT Industry Insight

Transformer Industry

Power & Distribution

Transformer

The Indian transformer industry has reported steady growth in recent years, with an annual compound increase rate of more than 8 per cent from FY15 to FY19. On the other hand, in addition to increasing its manufacturing capacity, the industry has also matured on technology front. Power Insight takes an insight into industry growth, opportunities and challenges, while looking into future prospects ... |

October - November 2019

Power Insight

n the context of the extremely unbalanced distribution of energy resources and consumer centers in India, a strong base of T&D infrastructure is of the greatest importance. Now with increasing integration of renewables into the grid, the government has started focusing more on strengthening the countryâ&#x20AC;&#x2122;s T&D infrastructure. The main components of the power grid are transformers. The voltage of electricity needs to be regulated while its transmission from generation centres to the end user. The transformer industry is on a growth path with steady investment in the transmission sector and on-going initiatives in the distribution sector.

Industry Overview In recent years, the Indian transformer industry recorded steady growth recording an annual compound growth rate of over 8 per cent between FY15 and FY19. According to IEEMA, the

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INDUSTRY // INSIGHT

matured in terms of technology. The well-established players in the market are - ABB, Crompton Greaves, Eaton, General Electric , Siemens, Ormazabal , Transformers and Rectifiers , SGB-Smit Group , Wilson Power Solutions , Lemi Trafo JSC , Hyosung Corporation , Celme S.R.L , Brush Electrical Machines Ltd. , Emerson Electric, Eremu SA , Hammond Power Solutions, Hitachi, Kirloskar Electric, Schneider Electric , Vantran Industries, Wenzhou Rockwell Transformer, etc.

Growth Trends In recent years, the highest growth was observed in the 220 kV and 400 kV categories while the HVDC segment remained more or less constant. Thus the most important product on the transformer market with a total capacity of 356 GVA currently is the 220 kV voltage transformers. In view of the expected capacity increases for the coming years, more high voltage substations (HVDC, 765 kV) will become more prevalent. Particularly, the category of 765 kV is designed

size of the domestic transformer industry in 2018-19 was estimated at INR 148 billion by Indian Electric and Electronic Manufacturers Association (IEEMA). The industry registered a growth of approximately 10 per cent over the last financial year 2018. As per IEEMA, the distribution transformers growth index stood at 21.5 per cent and power transformers at negative (-) 3.1 per cent during 2018-19. While the distribution transformers accounted for a 60 per cent share on the transformer market, while power transformers hold the remainder 40 per cent of the market share. Over the years, the Indian transformer market has not only expanded its manufacturing capacity, but has also

In addition, as PowerGrid Corporation is taking charge of developing and expanding intra-state transmission projects, and demand for power transformers is expected to grow dramatically at 400 kV and below.

Demand Drivers: Government is taking major steps to strengthen the power transmission & distribution network to enhance the electrification in the country has added to the increase in demand for transformers. In addition, various schemes and initiatives undertaken by the government in recent years such as Deendayal Upadhyaya Gram Jyoti Yojana; Saubhagya and Integrated Power Development Scheme to strengthen sub-transmission and distribution networks in rural and urban areas, have also increased demand for distribution transformers in utilities.

Meanwhile, with the continuous growth of power generation through renewables, significant investments to strengthen transmission network, along with a rise in per capita electricity consumption and emerging trends of For the future, increase in per capita electricity charging stations consumption is expected as well for electric vehicles and so on, will keep the demand as potential maximum loads are also for transformers increasing expected to reach 230 GW by 2021-22, further.

requiring estimated investment in the transmission sector by INR 2.6 trillion - this bodes well towards boosting demand for transformers .....

to increase capacity from the current level of 213,000 MVA, to over 280,000 MVA. The demand for transformers has been increased in recent years due to significant growth seen in the country’s transmission sector, especially in the 765 kV, 400 kV, and 220 kV alternating current voltages (AC) and 800 and 500 direct current (DC) voltages.

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In addition, replacement demand of old transformers with energy efficient transformers will add to this growth trend.

Also, increased demand for distribution transformers will be driven by ‘Metro & Railway’ electrification projects due to higher government spending within the industry.

Key Challenges CRGO Supply Issues: Smooth supply of cold-rolled grain-oriented (CRGO) is one of the major challenges facing the transformer industry. CRGO is

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October - November 2019

INDUSTRY // INSIGHT an important raw material of transformers but is currently not being produced in India. As manufacturer needs to import the CRGO, its price fluctuations and low supply hinders the production of transformers industry in the country.

modern technology to produce transformer with higher energy efficiency. However, it itself is a time consuming process to obtain this dual certification and sometimes the processing of renewal requests takes even 2-3 months that leads to controversy in acceptance of that transformers by discoms.

Also, this lack of satisfactory supply of CRGO steel leads to the enormous volume of low grade CRGO steel entering the market that severely Although transformer quality has imaffects the quality and proved and failure rates have decreased cost of transformers.

Quality Control: As per

quality control program of the Bureau of Energy Efficiency (BEE) transformer industry requires double certification of transformers one from the Bureau of India Standards (BIS) and the other from BEE.

under the BIS certification program, this dual certification is a time consuming process. Sometimes it take 2-3 months to process leading to controversy in acceptance of these transformers by distribution utilities....

While we have seen that the quality of transformers has been improved and the failure rate reduced under BIS certification programme. On the other hand, the BEE star labelling has helped fostered the use of

Other concerns include a lack of adequate transformer testing facilities, especially in segments with high voltage and ultra-high voltage along with delays in payment by state distribution companies. Furthermore, industry faces challenges relating to

the lack of obligatory instructions for the installation and maintenance of transformers, transformer overloading, meddling with protection equipment, material and oil theft that leads to fire and transformer failure.

Future Outlook The government is undertaking crucial measures to improve the countryâ&#x20AC;&#x2122;s power T&D network and has projected to invest INR 146,000 crore in electricity transmission by the year 2019. Going forward, the potential peak load is expected to reach 230 GW by 2021-22, that would require an estimated INR 2.6 trillion investment in the transmission sector â&#x20AC;&#x201C; and also fillip to power transformers demand. In addition, on account of old transformers replacement with new ones, the demand for energy efficient and intelligent transformers will also rise. While, the idea of smart transformers will see further implementation in the system as there is an increasing focus on reliability of supply and reducing system failures. The demand for transformers will increase in the next few years, with the growth of generation capacity and consumption per capita. According to recent report by 6Wresearch - by 2022, India is expected to reach $2.9 billion in power & distribution transformer markets. However, there is an urgent need to take concrete steps to encourage manufacturing of CRGO steel locally as well as streamlining the process for faster quality certification approvals. Also there is need to take necessary measures to overcome the other challenges faced by the domestic industry to support growth in coming days. n

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INDUSTRY // INSIGHT

Smart Transformers Smart digitized transformers that provide remote control and data analytics of critical parameters for predictive maintenance are now gaining traction in India, on account of their increased deployment from utilities....

ransmission and distribution (T&D) utilities are interested in monitoring the status and conditions of their transformers fleet in order to prevent failure or malfunction. For this they follow a strategic and systematic approach referred to as Asset management system. Now with increasing digitalisation and Internet of Things (IoT) implementation T&D utilities have evolved from precautionary maintenance to predictive maintenance in their asset management strategies.

in monitoring and maintenance optimization remain top priorities for many utilities.

Utilities are now relying more on smart, digitized transformers that provide remote monitoring and data analytics of critical parameters in real time for predictive maintenance. It helps utilities take corrective action to prevent grid disruptions and blackouts from happening before failure occurs. This increases reliability and makes it possible to use grid assets and power networks more effectively.

Smart transformers are integral elements of the Smart Grid that works separately to constantly adjust the voltage and to keep in touch with the smart grid so as to ensure remote control when needed as well as to provide power supply and transformers information and feedback themselves.

Smart Transformers Though there have been a number of technological improvements to transformers so as to perform the important function of adjusting voltage levels. These include AC & DC technology with ultra-high voltage, biodegradable oil-filled transformers, ultra-low sound transformers and high efficiency distribution transformers. However, as load peaks (both predictable and unexpected) - it leads to generation of high temperatures that cut the life cycle of the transformer. In addition, sometimes unexpected failures may result in accidents on the network leading to financial and other penalties. Thus, improvements

October - November 2019

Power Insight

The utilities therefore want to track and monitor their transformer fleet status and condition so that they can interfere before a fault or malfunction occurs and that has been made possible through adoption of smart and digital technologies. Thus, a transformer that comes with intelligent electronic devices and intelligent diagnostic and monitoring features are broadly termed as Smart Transformer.

These smart transformer solutions are largely composed of 3 components â&#x20AC;&#x201C; hardware, software and services â&#x20AC;&#x201C; operating together to provide efficiency and reliability for the utilities. Incorporated with devices such as digital sensors, dissolved gas analyzers and digital safety equipment they help in collecting data for local tracking, diagnosis and control. Same data can also be monitored using cloud at station level for control as well as preventive and predictive maintenance. Being designed to provide voltage efficient electricity for the energy requirements of the facility; large commercial installations are increasingly using these transformers to make the use of power efficiently and in a cost-effective manner. Even at the distribution and transmission levels the use of these transformers is gaining ground.

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INDUSTRY // INSIGHT Key Benefits The smart transformers are enabled with digital capabilities that allow remote monitoring and data analysis in real time of its vital parameters. Thus, they are ideally suited for tracking and regulating electricity supply during fluctuation and ensuring voltage optimisation even in the case of new demands. They play an important role in protection of the power system from load disorder by insulating the source from load harmonics and voltage sags. These transformers also help in improving the power quality by summarizing loads to the mains with the same phase current or even for the unbalanced loads. This helps in increased reliability of power network system thereby allowing improved utilization of grid resources and assets. Apart from improving efficiency and product life, the digital capabilities of these transformers boost reliability and mitigate outages by preventative actions. Thus to cater to the new and emerging grid challenges, digital transformers are increasingly gaining traction as they assist in reducing grid losses and improving power supply reliability. In addition to the various technical functions mentioned above, the customerâ&#x20AC;&#x2122;s cyber-security concerns could also be addressed by these smart digital transformers through addition of security features like the RFID access card-enabled Wi-Fi to this. Also, the stored data is encrypted and the user requires a decryption key to read the data.

Growing Need Smart transformers are ideal for the power systems that are designed for renewable energy integration as they supply accurate power requirements and responds immediately to power grid fluctuations, acting as a voltage control system. Since a large number of small local energy producers operate renewable electric power plants

which alter the flow of power in the distribution network on the consumerâ&#x20AC;&#x2122;s end of the grid. In addition, there are a number of critical nodes at the distribution transformer level that will increase over the coming years, leading to the requirement for the type of monitoring & control previously limited to large power transformers. Meanwhile, the increasing use and charge of electric vehicles in residential areas, that is bringing about dramatic changes in patterns of consumption. This large local charging activity can also cause overloads at the distribution transformer level. Thus, smart distribution transformers can provide intelligence at the distribution transformer level as well as help in optimizing operational and maintenance costs to maximize reliability and managing of the asset more efficiently. Also these smart transformer systems are ideal for rural network applications. The interface includes a distribution transformer equipped with OLTC for automatic voltage regulation and a communications system. It helps to create a route between remote locations where the transformer is located and the gateway where data is collected from another smart transformer

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in the region.

Way Forward Smart transformers are intelligent enough to satisfy the demands of future power systems and can also enhance safety, and are therefore highly popular and useful for future applications. In order to achieve higher precision, technology providers are working on integrating sensing technology directly in the transformer during the production process. In addition, to make transformer both safer and environmentally friendly, technology providers are looking into integrating the digital technologies into dry-type transformers. These transformers will be ideally suited for applications with high risk, like densely populated areas and in vulnerable ecosystems. Over the coming years, the use of smart transformers is set to increase at distribution and transmission levels forming an integral part of the new electricity grid which monitors voltage independently and maintains communication with the smart grid so as to permit remote management and input on power supply parameters in real time. n

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October - November 2019

sPECIAL // FEATURE

Wind Solar Hybrid Reluctant Growth

The concept of solar wind hybrid can take a few years before india can see its wide spread implementation on account of several technical challenges involved...

y contrast to traditional sources of power in many respects, renewable resources such as solar and wind are very advantageous, so that they are clean and available indefinitely. But the only drawback is that their outputs depend upon the climatic conditions. With increasing energy costs, the use of wind solar hybrid plants are gaining importance as they offer a high reliability of power supply, and also because the wind turbines and photovoltaic (PV) panels have been witnessing reduction in prices. The hybrid PV / wind system has become viable alternatives in recent years to meet the demands for environmental protection and electricity supply. Most importantly, with the complementary characteristics between solar and wind energy resources for certain locations, hybrid PV/wind system with storage banks presents an unbeatable option for the supply of small electrical loads at remote locations where no utility grid power supply.

tential. Since India has made a global commitment to installs 175 GW of renewable energy capacity by 2030, as well as 40 per cent of the country’s electric power capacity would come from fossil fuels by 2030. Thus, renewable hybrids can play a key role in helping India accelerate the decarbonisation of power generation and lowering the cost of electricity in the medium term. Wind -Solar hybrid projects were seen as one of the options before the Union government to help it meet the ambitious renewable targets of 175 GW by 2022. To tap this segment, the Ministry of New & Renewable Energy (MNRE) issued the draft WindSolar Hybrid Policy in mid-2016.

India Taking Stride

Following several discussions with the stakeholders over a two-year period, MNRE unveiled the final policy document “National Wind-Solar Hybrid Policy” in May 2018. The main objective of this policy is to establish a framework to encourage large-scale hybrid wind-solar electricity projects.

As a tropical peninsula, India has an immense supply of renewable resources that will significantly reduce its carbon footprint if it is used to its full po-

Further, the policy also aimed at optimising and improving the efficacy of the usage of transmission infrastructure and land, which in turn will mitigate

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SPECIAL // FEATURE

inconsistencies associated with the generation of renewable power and and help in attaining better grid stability. Apart from that, the policy will also motivate the development of solutions and technological advancements in the field of wind-solar hybrid power generation.

Providing the Initial Boost A step forward has been the announcement of scheme by the Indiaâ&#x20AC;&#x2122;s Ministry of New and Renewable Energy for the establishment of 2 500 MW of Inter-State Transmission System (ISTS)-connected wind-solar hybrid projects. The Scheme is intended to facilitate the installation of new hybrid wind-solar projects at a price that has been found through the transparent reverse bending process by the nodal agency Solar Energy corporation of India (SECI). Meanwhile, under Section 63 of the Electricity Act 2003, the new guidelines will provide the structure and process required for transparent bidding. The scheme is being implemented to build, own and operate (BOO) 2500 MW hybrid projects. Applicant with a project capacity of at least 50 MW at one project site will be entitled for bidding capacity to a total of 200 MW and 500 MW. Under the Scheme, the projects will be defined by separate points of injection into the grid at interconnection/metering point

of ISTS substation or in case of sharing of transmission lines, by separate injection at pooling points.

Slow Start Unfortunately, the wind-solar hybrid model is currently struggling to take off in India. Nearly a year since their launch, hybrid segment has seen a slow start, with experts attributing the same to the policy guiding auctions. Of the 3,200 MW of the wind solar hybrid tenders that central and state government agencies launched last year, only 2,400 MW have materialised. While of that only 1,600 MW have been allotted, representing mere 34 per cent of the subscription. The auctions have witnessed participation from a handful of developers like Adani, Softbank, and ReNew Power. The tepid response to the tenders even led the Solar Energy Corporation of India (SECI) to cut the capacity of one of its tenders from 2,500 MW to 1,200 MW. While Two other wind-solar hybrid tenders, one from NTPC for 174 MW in Karnataka and another for 600 MW in Andhra Pradesh, have got cancelled. According to industry experts, low ceiling tariffs of INR2.7 per unit set by SECI; expectation of a minimum 38 per cent

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October - November 2019

sPECIAL // FEATURE combined utilisation factor (CUF) in the tenders; and lack of good sites are among the reasons impacting hybrid projects. Significantly, the industry has been demanding higher tariffs even as the government has mostly capped tariffs at below INR 3 per unit.

Challenges Hybrid energy projects are at a nascent stage globally and like every new technology or innovation, it is currently going through a stage of evolution. However, that has not stopped developers from adopting this model for developing renewable energy systems. In India, Karnataka launched the first large-scale solar wind hybrid project, which incorporates 50 MW of wind and 29 MW of solar power. However, this plant was developed for captive use. In future large scale adoption and commissioning of hybrid energy projects would depend on multiple factors. Though the policy has been designed as a framework to promote large-scale wind solar hybrid systems connected to the network for optimal and efficient use of the transmission

infrastructure and land, reducing variability in generating renewable energy and improving grid stability. However, the policy lacks a clear framework for converting existing wind or solar projects into hybrid projects, instead focusing solely on procurement by government agencies from new projects, which is a shortcoming. A few other challenges on the policy front includes - metering technology and standards, forecasting and scheduling, grant of connectivity to the grid, RPO mechanisms for discoms, rules defining PPAs for hyrbrid projects, amongst others. The main purpose for adoption of a solar-wind hybrid is to get an uninterrupted power generation, as they complement each other to overcome their individual erratic generation challenges. However, without incorporation of a storage technology â&#x20AC;&#x201C; they are not good enough to meet the peak demand curves. Here the inability to incorporate the storage in the large scale solar wind hybrid project also hits on its wide spread adoption. The technology side will play a significant role in the broad-based implementation of these projects, with storage costs as an important component of hybrid projects. The renewable storage costs and technologies currently prevailing for large-scale renewable power projects are not in favour of project viability and sustainability. Unless there is a breakthrough in storage technology that reduces per watt costs considerably, solar & wind projects with 100 per cent storage will remain confined to select geographies and projects.

Way Forward The growth of hybrid plants will promote renewable energy expansion in the Indian energy mix, ensure grid stability, and encourage efficient land and other resources use to make the industry competitive. Though, it may take a couple more years to bring smooth flow to the concept, since the integration of the two systems involves several technical challenges. On the other hand, while the industry has welcomed the latest Wind-Solar Hybrid Policy, it may be necessary to revise its certain aspects in light of a number of serious concerns. It is now up to states with strong wind and solar profiles to develop an acceptable regulatory structure that maximizes the effectiveness of the policy recommendations. The position of states is vital to the overall success of the policy. At present, only a few hybrid plants are present in the country. Expert believes that hybrid plants can only take off in India in significant ways if they receive sufficient fiscal incentives and favourable regulatory measures at initial stages. n |

October - November 2019

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Market // REVIEW

WEE 2020

World Environment Expo

International Exhibition on Environment Conservation Technologies & Eco-friendly Products

4 - 6 JUNE 2020 th

Pragati Maidan, New Delhi-India

Focus Industries Renewable Energy & Allied Industries

Concurrent Events • NGV Expo 2020 • India Buildtech 2020 • Green India Awards 2020 • World Environment Conference 2020

ORGANIZERS

S U P P O R T E D B Y:

+91-8506982056, +91-8377998447

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A S S O C I AT E PA R T N E R

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COMPANY // RELEASES Tata Power and The Rockefeller Foundation announce the launch of breakthrough enterprise TP Renewable Microgrid

ata Power and The Rockefeller Foundation announced the launch of TP Renewable Microgrid Ltd., which will address one of the most pervasive challenges in modern India: the lack of access to affordable, reliable electricity for millions of rural homes and enterprises. By scaling up an innovative microgrid model to be implemented in collaboration with Smart Power India (SPI) and the Institute for Transformative Technologies, TP Renewable Microgrid Ltd. will provide clean power to nearly 5 million households, directly impacting the lives of 25 million people over the next decade.

with approximately 11,000 MW of installed generation capacity and over 2.6 million customers under management across Delhi, Ajmer and Mumbai. Tata Power brings significant experience in distributed energy, having established a joint venture with the Delhi government to serve a large portion of the local population, including sizeable slum communities. “We are proud to bring energy to millions of people. Once at scale, TP Renewable Microgrid Ltd. anticipates supporting 100,000 rural enterprises, creating 10,000 new green jobs, and providing irrigation for over 400,000 local farmers,” said Tata Power CEO Praveer Sinha. “We look forward to empowering communities across India by creating micro enterprise and opportunities for all people.” TP Renewable Microgrid Ltd.’s anticipated rollout of 10,000 grids will drastically expand the global microgrid footprint, and will act as a catalyst for governments and the private sector to collaborate in building clean, resilient and stable grids in other markets. SPI, which was launched by The Rockefeller Foundation in 2015, would provide technical expertise to the enterprise, having built microgrids that today provide clean, distributed electricity to more than 200 villages in rural India.

This unique collaboration will amplify the Government of India’s ongoing campaign to provide electricity to rural areas, unleashing the potential of renewable microgrids to serve households and businesses that suffer from poor reliability and coverage by traditional grid-based power. Rural businesses and households continue to rely on alternative sources to power daily needs—with more than 40% of rural enterprises in states like Bihar and Uttar Pradesh relying on non-grid sources of power such as diesel. TP Renewable Microgrid Ltd. will provide a competitive and cleaner source of power, expanding access and lowering effective electricity costs and carbon emissions by 1 million tons per year as well as reducing the amount of diesel burned by 57 million liters yearly. Over time, the opportunity to deploy grid-interactive solutions will materialize, creating a more integrated, stable and smart rural grid. TP Renewable Microgrid Ltd. will be operated and managed by Tata Power, India’s largest integrated power company |

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“We have an unprecedented opportunity to transform the lives of millions of people in India by providing access to power,” said Dr. Rajiv J. Shah, President of The Rockefeller Foundation. “Providing reliable electricity to the communities that need it most is one of the best ways for us to end poverty and unleash economic opportunity in our lifetimes.” In addition to building, owning and operating microgrids in India, TP Renewable Microgrid Ltd. intends to provide ancillary micro enterprise services to benefit communities. TP Renewable Microgrid Ltd. reflects a scaling-up of The Rockefeller Foundation’s efforts to tackle energy poverty worldwide. In September 2019, The Rockefeller Foundation also announced the launch of the Global Commission to End Energy Poverty (GCEEP) to fast-track sustainable power solutions, investments and partnerships that will deploy globally over the next decade. n

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COMPANY // RELEASES GE Achieves Record Transmission of Power on a Super Energy Highway in India

E’s Grid Solutions business achieved a new milestone in its Champa-Kurukshetra ultra-high-voltage direct current (UHVDC) project in India with the 1,305-km link now capable of transmitting 4,500 MW of electricity. This follows the recent successful energization of the third of four poles planned for the ±800kV UHVDC transmission line. A special feature of the Champa project is the use of an overhead line with dedicated metallic return, which uses a neutral conductor as a part of the DC circuit. GE is the first company in the world to demonstrate this technology with this project and is therefore providing additional value to the customer by eliminating the typical technical and environmental issues associated with the traditional electrode solution. The transmission line is a crucial component of the Indian government’s electricity-for-all initiative and will help provide reliable electricity for millions of people living in the states of Punjab, Haryana, Delhi, Uttar Pradesh and surrounding areas. The project is being executed by GE T&D India Limited, the listed entity of GE’s Grid Solutions

business in India. Phase 1 of the project, completed in 2017, provided 3,000 MW of transmission capacity. GE’s recent energization of Pole 3 added another 1,500 MW of transmission capacity, marking a key benchmark towards the completion of Phase 2. Once Pole 4 is commissioned, the entire system will transmit 6,000 MW of electricity at 800kV - making the project one of the largest generation-to-consumption transmission systems in the world. n

Sumant Sinha of ReNew Power honoured with the ‘Distinguished Alumnus Award’ by IIM Calcutta

n recognition of his extraordinary contribution in the field of business entrepreneurship, Sumant Sinha, Chairman and Managing Director, Renew Power Private Limited (“ReNew Power”), India’s largest Renewable energy company, was awarded IIM-Calcutta’s Distinguished Alumnus Award on 14 November 2019.

the Aditya Birla Group for 5 years till 2007, and then COO at Suzlon, before starting ReNew in 2011. On receiving the honour, Sumant Sinha, CMD of ReNew Power said, “It is always a matter of great pride to receive recognition from one’s alma mater. IIM Calcutta has been a significant part of my formative years and has helped me understand and realise the potential of business as a tool to change lives and livelihoods. I’d also like to thank all Renew employeesfrom the bottom of my heart for all their efforts in making ReNew the largest clean energy company in India and for being an integral part of my entrepreneurial journey.” Under his leadership, ReNew has become the first clean energy company in India to cross 5,000 MW of commissioned capacity. ReNew power was also the first renewable energy company in India to attain the Unicorn status and has raised more than $1.4 Bn of equity till date, with a total asset base in excess of $6.5 Bn.

A leading first-generation entrepreneur, Sumant Sinha began his career as an investment banker in the US and UK with leading global banks such as Citibank and ING, post which he returned to India and was the Group CFO of

This is the second time that Sumant is being honoured with a distinguished Alumnus Award. In 2018, he had received the ‘IIT Delhi Distinguished Alumnus Award’ from his other alma mater – IIT Delhi.n

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Nov 2019

CII Global Energy XPO

27-29

Aerocity Central, New Delhi, India

Dec 2019

Intersolar India 2019

Bangalore International Exhibition Centre, Bengaluru, India

An Exclusive display of eminent brands of energy sector verticals featuring Renewable Energy, Conventional Generation, Transmission & Distribution, Energy Storage & Charging Infrastructure, Power Equipment Manufacturers & Service Providers, Oil & Gas, New Technologies and Start-ups, Electric Vehicles, International and State Pavilions

Intersolar India at the Bangalore International Exhibition Centre is India’s most pioneering exhibition and conference for India’s solar industry and has a focus on the areas of photovoltaics, PV production and solar thermal technologies. 2019, Intersolar India will be held for the first time under the umbrella of The smarter E India – India’s innovation hub for the new energy world.

For Details Visit : http://www.gexpo.in

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18-22

Jan 2020

Elecrama 2020

13-15

India Expo Mart, Greater Noida, India

Feb 2020

Chennai Trade Centre, Chennai, India

ELECRAMA brings together the complete spectrum of solutions that powers the planet from source to socket and everything in between. Featuring not just equipment & technology, but peerless thought leadership platforms for everything electric - from technical conclaves to industry summits..

This event will be bringing together businesses, sustainable energy industry trade associations, government agencies, and energy policy research organizations to showcase the status and potential of the cross-section of renewable energy industry.

For Details Visit : https://www.elecrama.com

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15-18

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10th World PetroCoal Congress and Expo Convention Centre-NDCC, New Delhi

The 10th World PetroCoal Congress-2020 conference & expo aims to encourage fruitful dialogue for sustaining future growth of Petroleum – Coal Sector and make an attempt to provide solutions to the problems faced by the Oil, Gas and Coal industries world over. Specially focused on key industry issues and emerging energy solution while pursuing business building and networking... For Details Visit : http://www.worldpetrocoal.in

3rd Renewable Energy Expo

October - November 2019

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Feb 2020

India Solar Expo 2020

IIA Bhawan Grounds, Vibhuti Khand, Gomti Nagar, Lucknow, India

Indian Industries Association (IIA) welcomes you to the world of endless opportunities in one of the world’s biggest solar market. India is a market which is seething with an insatiable appetite for power, so what are you waiting for!!! Come and explore this wonderful opportunity, at- India Solar Expo 2020.. For Details Visit : https://www.aiss.org.in

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