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Saurabh Mahapatra

A young solar enthusiast from India keeping an eye on all regulatory, policy and market updates from one of the fastest emerging solar power markets in the world.

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$35 Million Funding Deal Signed For 750 Megawatt Solar Park In India

by Saurabh Mahapatra
written by Saurabh Mahapatra

The entity responsible for the development of two solar power parks with a cumulative capacity of 1 gigawatts recently signed a funding agreement to finance the first phase of development.

Rewa Ultra Mega Solar Limited signed an agreement with the Indian Renewable Energy Development Agency (IREDA) for funding worth $35 million. The funding will be used for the development of transmission and power infrastructure at the 750 megawatt Rewa solar power park and the 250 megawatt Mandsaur solar power park, both in the state of Madhya Pradesh. 

The World Bank will provide a total of $100 million in debt funding for the two solar parks and $35 million is the first installment of that funding. The total funding includes a $75 million loan from the International Bank for Reconstruction and Development (IBRD) and a $23 million loan from the Clean Technology Fund (CTF), and an interest-free CTF grant of $2 million. 

IREDA is offering debt funding to Rewa Ultra Mega Solar Limited at an interest rate of 8.5%. The World Bank is offering funding guarantee at 0.5%, instead of the 1.2% currently being levied by the Indian government. Solar power parks and smart city projects are likely to receive guarantees at concessional rates of 0.5%.

The auction for the Rewa solar power park made history, as it was oversubscribed ten times over with prospective developers submitting bids for 7.5 gigawatts. Finally, three companies were awarded the rights to develop 250 megawatts of capacity each at the lowest solar tariff of that time, Rs 2.97/kWh (¢4.4/kWh).

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India Issues Guidelines To All States Over WTO Solar Equipment Compliance
Solar Policy

India Issues Guidelines To All States Over WTO Solar Equipment Compliance

by Saurabh Mahapatra
written by Saurabh Mahapatra

The Ministry of New & Renewable Energy in India has issued guidelines to all states related to the decision of the World Trade Organisation related to obligate use of Indian-made solar cells and modules.

In a letter addressed to power sector officials in all states, the Ministry stated that as the WTO ruled against the Domestic Content Requirement (DCR) program, Indian states cannot mandate the use of Indian-made solar equipment. 

Under the DCR program, project developers are required to use only Indian-made solar power equipment to set up projects. The program was launched by the government to ensure support for Indian solar module manufacturers which have been outpaced by the overwhelming share of imported solar modules in the Indian market.

The WTO passed its decision in September 2016, and a deadline of 14 December 2017 was agreed by India to finish all work on DCR projects. India can still set up solar power projects under the DCR program, but the electricity generated must be procured by the government or its entities itself and cannot be sold for commercial gains.

To meet the above condition, India was forced to cancel the allocation of a 250 megawatt solar power project awarded to Azure Power under the DCR program at a tariff of Rs 3.14/kWh (¢4.9/kWh). A couple of government-owned companies would have made commercial gains and thus violated the WTO decision.

The Ministry issued a deadline of 31 December 2017 to all DCR project developers to complete their projects. Additionally, it directed all states to provide advance information if they plan to float a DCR tender in the future.

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Uncertainty Looms At India’s Largest Solar Power Park As 1.2 Gigawatts Is Tendered

by Saurabh Mahapatra
written by Saurabh Mahapatra

Confusion and uncertainty is looming over the execution of India’s largest solar power park at Pavagada in Karnataka, southern India. The park is facing multiple issues related to tariffs and domestic content requirements, which is now in violation of a September 2016 WTO ruling.

A little background: The Pavagada solar power park is expected to have an eventual installed capacity of 2.7 gigawatts, however, information on how this capacity will be distribution among various stakeholders is available only for 2 gigawatts. Official records at Ministry of New & Renewable Energy still quote 2 gigawatts of solar power capacity for the park. 

Initially, this 2 gigawatts of capacity was allocated as 600 megawatts under a bundled solar-thermal program, 1,000 megawatts owned directly by NTPC Limited, 200 megawatts for Solar Energy Corporation of India for a storage project, and 200 megawatts for Karnataka Renewable Energy Development Limited (KREDL).

NTPC Pulls Out

According to media reports, NTPC has pulled out of the 600 megawatts of capacity bundled under the solar-thermal program. The capacity has been allocated to six developers in a tariff range of Rs 4.79/kWh (¢7.5/kWh) to Rs 4.86/kWh (¢7.6/kWh). NTPC was supposed to procured electricity from these projects at these tariffs and bundle it with thermal power from its own power plants, and then sell it to Karnataka-based utilities at Rs 3.30/kWh (¢5.2/kWh). However, NTPC has now backed out of this arrangement now citing various reasons. There is no word on the future of these projects — whether NTPC or Karnataka will procure from these projects and at what tariffs.

1.2 Gigawatt Tender By KREDL

NTPC was supposed to issue a tender for 1,000 megawatts of capacity as its direct share in the solar power park. However, the Karnataka Renewable Energy Development Limited recently issued a tender for 1,200 megawatts of capacity. This exhausts the capacity allocated to KREDL and also overlaps with NTPC’s 1,000 megawatt capacity. This tender also casts uncertainty over the fate of a 750 megawatt tender that NTPC has issued last year for the solar park. KREDL also tendered 200 megawatts of capacity in November 2017 for the project.

At this moment, Pavagada has four tenders open — 1.2 gigawatts issued by KREDL, 750 megawatts issued by NTPC, 200 megawatts issued by KREDL, and 200 megawatts issued by SECI. Combined, these tenders account for 2,350 megawatts of capacity. If we add the 600 megawatts of capacity already allocated to developers, the capacity increases to 2,950 megawatts, as against the current official capacity target of 2,000 megawatts and unofficial capacity target of 2,700 megawatts.

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Masdar Secures $188 Million Funding For Jordan’s Largest Solar Project
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Masdar Secures $188 Million Funding For Jordan’s Largest Solar Project

by Saurabh Mahapatra
written by Saurabh Mahapatra

After a shock setback in the Saudi Arabia solar power tender, Masdar Clean Energy has something to cheer about as its solar power project in Jordan secured funding.

The International Finance Corporation (IFC) recently announced that it sanctioned funding worth $188 million for a 342 megawatt (DC) Baynouna solar power project being developed by Masdar in Jordan. The project is the largest solar power project in Jordan. 

IFC will provide $54 million, while the balance of $134 million will be secured through other agencies, including Japan International Cooperation Agency (JICA), Dutch Development bank FMO, and Europe Arab Bank as B lenders and OFID, the OPEC Fund for International Development and German development bank DEG. IFC also played a major role in financial closure for the 117 megawatt Tafila wind farm, the largest wind energy project in Jordan, also developed by Masdar. Finnish asset manager Taaleri Oyj recently acquired a 30% stake in the project.

The Baynouna solar power park is expected to be commissioned in 2019 and will fulfill the electricity needs of around 110,000 homes and offset an estimated 360,000 tonnes of carbon dioxide emission every year. The total cost of development of the project is estimated at $260 million. Once commissioned, the project will supply electricity to the National Electric Power Company through a long-term power purchase agreement. With an estimated 563.3 gigawatt hours of electricity generation each year, the project will meet around 3% of Jordan’s annual energy consumption.

Jordan has set a target to procure 15% of its electricity from renewable energy sources by 2020, and hopes to reach an installed renewable energy capacity target of 1.8 gigawatts by that year. The two projects being developed by Masdar will account for 18% of that capacity.

Masdar recently lost out in a 300 megawatt solar power tender in Saudi Arabia despite having quoted the lowest-ever solar power tariff of ¢1.78/kWh.

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China’s CETC Plans 200 Megawatt Solar Fab In India
PVSolar $Solar ModulesSolar PV Manufacturing

China’s CETC Plans 200 Megawatt Solar Fab In India

by Saurabh Mahapatra
written by Saurabh Mahapatra

As the Indian government continues to look into anti-dumping and safeguard duties against imported modules, a Chinese company is planning to set up a solar module manufacturing unit in the country.

The China Electronics Technology Group Corporation (CETC) recently announced that it will invest $50 million to set up the first phase of a module manufacturing unit in the southern state of Andhra Pradesh. 

The first phase of development will create 300 new jobs, while the entire project will increase this number to 1,500. While the company did not specify the final production capacity of the manufacturing unit, a guesstimate on the basis of increase in jobs creation puts the number at 1 gigawatt.

A number of Chinese companies have announced plans to set up solar cell and module manufacturing units in India over the last few years. The pretext may have been the ambitious solar power capacity target and a domestic content requirement program that mandated the use of Made-In-India modules.

While the government will auction at least 77 gigawatts of solar power capacity by March of 2020, it had to forgo the DCR program following an unsuccessful arbitration with the United States at the World Trade Organisation.

The Ministry of New and Renewable Energy proposed a huge financial incentive package to the domestic module manufacturers, but the Ministry of Finance rejected this proposal.

Now, anti-dumping and safeguard duties against imported modules seem to be the only possible efforts to support Indian manufacturers. This could create a business case for Chinese manufacturers to set up shop in India.

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860 Megawatt Solar Tender In India Is 4X Over-Subscribed

by Saurabh Mahapatra
written by Saurabh Mahapatra

Recent price rises in solar power modules and a sharp cut in maximum permissible tariff bids does not seem to be impacting the aggressive tender bidding in India.

Karnataka Renewable Energy Development Limited (KREDL) recently launched a tender to set up 860 megawatts of solar power capacity across 43 location in the states, with 20 megawatts of capacity at each location. A total of 31 project developers have submitted bids to set up a cumulative capacity of 3,320 megawatts, nearly four times the capacity offered.  Charanka Solar Park Gujarat, India

Of the 31 developers that submitted bids, one was disqualified while two others did not complete the required formalities in time. Some of the major renewable energy developers that have submitted bids are: ReNew Power (580 megawatts), Greenko Energy (480 megawatts), Aditya Birla Group (220 megawatts), Shapoorji Pallonji Group (200 megawatts), Avaada Energy (180 megawatts), Acme Solar (180 megawatts), Orange Renewables (180 megawatts), and Canadian Solar (140 megawatts).

ReNew Power, Greenko Energy, and Acme Solar are among the leading renewable energy developers in India. ReNew Power and Acme have initial public offerings lined up, while Greenko Energy acquired the assets of SunEdison India following the latter’s bankruptcy.

The huge interest in the tender is remarkable as these projects would be distributed across the state and not located within a solar park. This probably means that the project developers would be responsible to acquire land for the projects which would increase the cost of generation, and thus the tariff bids.

Other factors are also likely to increase the tariff bids. Indian authorities recently recommended a 70% safeguards duty on imported solar modules. The duty would be reviewed once the appropriate agency completes its investigation. The duty was challenged by one of the developers in court and won an interim stay on the duty. Indian government agencies are also investigating whether to impose anti-dumping duties on solar modules imported from countries like China, Taiwan and Malaysia.

As per initial tender specifications, the developers would have had 12 months to commission the projects. However, KREDL insisted that the developers be given at least 18 months to complete the projects. The Karnataka Electricity Regulatory Commission agreed to this extension, but reduced the tariff cap from Rs 4.36/kWh (¢6.9/kWh) to Rs 3.57/kWh (¢5.6/kWh), an 18% cut.

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Indian State Of Rajasthan To Achieve 7 Gigawatts Of Solar Capacity By March 2019

by Saurabh Mahapatra
written by Saurabh Mahapatra

In just over a year’s time, the west Indian state of Rajasthan will have an installed solar power capacity of 7 gigawatts, government officials have said. The feat, if achieved, will be substantial, as only a handful of countries today have a solar power capacity of 7 gigawatts or more.

Rajasthan is a pioneer in solar power development in India. The state is dominated by the That Desert which offers large swaths of wasteland. The state also has some of the best locations in India in terms of solar radiation.

While Rajasthan did lose some ground to neighboring Gujarat and some southern states like Tamil Nadu, Andhra Pradesh, Karnataka, and Telangana in the pace of solar power capacity addition, it is set to reverse that trend now.

By March of 2019, the state is expected to have 1,755 megawatts of solar power capacity just from the Bhadla solar power park. All this capacity has already been allocated to project developers, with 740 megawatts of capacity already operational. Last year, the park witnessed the lowest tariff bids ever for solar power projects in India. A total capacity of 1,000 megawatts was allocated to project developers at tariffs as low as Rs 2.43/kWh (¢3.8/kWh). A final phase of 500 megawatts of capacity is yet to be auctioned.

In addition to the 740 megawatts of capacity operational at Bhadla solar power park, Rajasthan has also seen addition of 1,592 megawatts of capacity over the last four years. Several of these projects were commissioned under the central government’s National Solar Mission which initially had a target of 22 gigawatts of operational solar power capacity by March 2022. The target has now been increased to 100 gigawatts by the same time.

India’s current operational solar power capacity stands at over 12 gigawatts.

Apart from the Bhadla solar power park, the Rajasthan government, in partnership with private companies, is developing at least three more parks with a cumulative capacity of 3,250 megawatts. The Bhadla solar power park is expected to be fully operational with 2,250 megawatts by March 2019, while the other three solar power parks are expected to be operational by the end of 2019.

While state government officials claim that the Bhadla solar power park will be the largest solar power park in the world, Pavagada solar power park in Karnataka would likely take that label, with a planned capacity of 2,700 megawatts.

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Buyers Line Up For 350 Megawatts Of SkyPower Solar Capacity In India
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Buyers Line Up For 350 Megawatts Of SkyPower Solar Capacity In India

by Saurabh Mahapatra
written by Saurabh Mahapatra

At least three major renewable energy developers in India are looking to buy the seven solar power projects awarded to SkyPower Global as the Canadian company plans to exit the highly competitive market.

SkyPower Global was awarded three projects of 50 megawatts each in the state of Madhya Pradesh and four projects of 50 megawatts each in the state of Telangana. All these projects were awarded through competitive auctions under state solar policies.

We had earlier reported the problems SkyPower has been facing with one of the solar power projects in Madhya Pradesh. The company failed to commission the project by the deadline of January 2017 due to lack of enough land for the project.

The state government-owned company that was supposed to acquire power from the project refused to sign a power purchase agreement for the project and instead encashed the bank guarantee pledged by SkyPower.

SkyPower has challenged these developments in a court.

All seven projects were secured at the lowest solar power tariffs at that time. Media reports suggest that the built quality of the projects is very good, which has attracted the likes of ReNew Power, Greenko Energy, and Hero Future Energies. The plants are being constructed by Sterling & Wilson, which has also commissioned projects in the Middle East and Northern Africa.

While ReNew Power and Greenko Energy have the backing of major international investors, Hero Future Energies is part of a major Indian industrial conglomerate — Hero Group.

Greenko Energy acquired 1,300 megawatts of capacity awarded to SunEdison India after the latter’s bankruptcy. ReNew Power has also been looking at several potential acquisitions as it preps for its initial public offering. Hero Future Energies has been participating actively in several competitive auctions and would like to increase capacity under management.

In 2015, SkyPower Global had pledged to set up 9.9 gigawatts of solar power capacity across India. The company has been active in emerging solar power markets that offer significantly higher tariffs compared to those seen in high-competition markets such as Chile, the Middle East and India. The company has signed agreements to develop large-scale solar power projects in countries like Kenya, Bangladesh, and Egypt.

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India Officially Doubles Its Solar Parks Target To 40 Gigawatts
PVSolar Projects

India Officially Doubles Its Solar Parks Target To 40 Gigawatts

by Saurabh Mahapatra
written by Saurabh Mahapatra

Originally published on CleanTechies.

The Indian government has confirmed that it will go ahead with a second phase of its solar power park program.

The announcement was made by the Minister of Finance in the union budget speech for financial year 2017-18. India will increase the planned capacity addition under its solar power park program from 20 gigawatts to 40 gigawatts.

The Ministry of New and Renewable Energy, along with the Solar Energy Corporation of India, has already identified several solar power projects with cumulative capacity of 20 gigawatts. Under the second phase an additional 20 gigawatts capacity will be added.

While the existing solar power park program has been expanded, the overall installed capacity target remains the same at 100 gigawatts by March 2022.

This could essentially mean that the government recognizes that the planned capacity addition of 40 gigawatts under the rooftop solar segment may be too large of a target.

Recent auctions for solar power parks have received a huge response, with tariff bids falling sharply nearly each time.

Distribution utilities remain unprepared for rooftop solar power systems and consumers also seem unaware about the benefits of the such power systems.

Large-scale solar power parks, on the other hand, have numerous advantages, including low cost, large generation potential, and one-time investment in power generation infrastructure.

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Other Renewable Energy

Indian Renewable Energy Projects Could Save $11 Million Per Year At Sea Ports

by Saurabh Mahapatra
written by Saurabh Mahapatra

Originally published on CleanTechies.

The Indian Ministry of Shipping has announced plans to set up almost 100 megawatts of solar and wind energy capacity at 12 of the country’s major ports.

The Ministry of Shipping recently announced that under the ‘Green Port Initiative’ a total of 136.5 megawatts of renewable energy projects will be implemented at a dozen major ports in the country. These include 91.5 megawatts of solar power and 45 megawatts of wind energy projects.

Some ports also have some solar power projects operational. A total of 15.2 megawatts of solar power capacity has been implemented, while 6 megawatts of wind energy capacity has also been commissioned. According to the ministry, these renewable energy projects are expected to offset 136,500 tonnes of carbon dioxide emissions every year. The projects will also save around Rs 75 crore ($11 million) every year in energy costs.

As per a reply submitted by the Minister of State for Shipping Pon Radhakrishnan in Parliament last year, the funds required for the development of solar plants will be arranged by the ports from their own resources with no contribution from the government.

The initiative would also offset the cost of purchasing power from the grid and would help to meet the Renewable Energy Purchase Obligation (RPO), set by the government, mandating a certain percentage of renewables into the total energy mix.

Apart from sea ports, airports around the country are looking to set up solar power projects as well. The Ministry of Civil Aviation announced that as many as 143 airports across India are planning to set up a cumulative solar power capacity of 148 megawatts.

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