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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.

Solar $Solar Projects

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

by Saurabh Mahapatra January 29, 2018

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.

January 29, 2018 0 comment

Uncategorized

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

by Saurabh Mahapatra January 29, 2018

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.

January 29, 2018 0 comment

PV Solar $Solar Modules Solar PV Manufacturing

China’s CETC Plans 200 Megawatt Solar Fab In India

by Saurabh Mahapatra January 29, 2018

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.

January 29, 2018 0 comment

Solar $

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

by Saurabh Mahapatra January 29, 2018

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.

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.

January 29, 2018 0 comment

Uncategorized

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

by Saurabh Mahapatra January 29, 2018

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.

January 29, 2018 0 comment

PV Solar $

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

by Saurabh Mahapatra January 22, 2018

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.

January 22, 2018 0 comment

PV Solar Projects

India Officially Doubles Its Solar Parks Target To 40 Gigawatts

by Saurabh Mahapatra February 16, 2017

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.

February 16, 2017 0 comment

Other Renewable Energy

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

by Saurabh Mahapatra February 16, 2017

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.

February 16, 2017 0 comment

PV Solar Projects

Indian State Considers 100 Megawatt Floating Solar Project

by Saurabh Mahapatra February 16, 2017

written by Saurabh Mahapatra

Originally published on CleanTechnica
by Saurabh Mahapatra

Yet another floating solar power project is under consideration in India.

According to media reports, the state government of Andhra Pradesh is considering setting up a floating solar project of 100 megawatts of capacity. The project could come up at Penna Ahobilam Balancing Reservoir which has a live capacity of 305 million cubic meters. The dam also has an installed capacity of 20 megawatts.

The state’s renewable energy department has shared little to no details about the project.

While the concept of floating solar power projects remains new, India has been experimenting with such novel ideas of solar power generation over the last few years. These include solar power systems installed over canals and at their banks as well as over dam barriers.

The Ministry of New & Renewable Energy is supporting the development of 50 megawatts of canal-top solar power projects and 50 megawatts of solar power projects at canal banks. The total cost estimated for the development of 100 megawatts of capacity is around $127 million.

Apart from the central government, several state governments have also planned canal-top solar power projects, including Gujarat and Punjab.

A public sector company — National Hydro Power Corporation — has also announced plans to set up 600 megawatts of floating solar power project at one of its large hydro power projects.

All of these planned and under-construction projects over dams and reservoirs lag behind the monstrous project being constructed in China. A floating solar power park is being developed in China’s Qinghai province. The project — Longyangxia Dam Solar Park — will have an installed capacity of 850 megawatts once completed, making it one of the largest solar power projects — over land or water.

February 16, 2017 0 comment

Cheaper Solar Power Allows Indian Companies To Dump Utility Supply

by Saurabh Mahapatra February 9, 2017

written by Saurabh Mahapatra

Originally published on CleanTechnica
by Saurabh Mahapatra

The sharp fall in tariffs of solar photovoltaic power projects in India has allowed industrial units to invest in captive power plants to meet power demand earlier being met from power distribution utilities.

Solar power tariffs for photovoltaic power plants in competitive auctions have collapsed from INR 12.76/kWh (19.00¢/kWh) in 2010 to as low as INR 3.00/kWh (4.40¢/kWh) in 2016. This sharp fall has been the result of progressive policies by the Indian government, increased competition among project developers, reduced module prices, and lowered interest rates.

Industrial electricity tariffs, on the other hand, have increased almost on a consistent basis. So now that solar power has achieved grid parity large industrial consumers are looking to invest in captive solar power projects to offset the high electricity tariffs levied by distribution utilities.

Industrial consumers are required to pay an additional surcharge over and above the electricity tariffs in order to subsidize the tariffs for residential consumers. The overall electricity tariff faced by industries is thus substantially higher than the cost of generation of solar power.

The Indian government has also waived off several add-on charges faced by renewable energy projects. These include wheeling, cross-subsidy, banking, and other charges. These charges will be waived-off for solar power projects commissioned by June 30th, 2017, and for wind energy projects commissioned by March 31st, 2019.

If an industry could obtain debt financing at concessional rates from an international agency, like KfW, Asian Development Bank, etc., the solar power project can have a near-constant cost of generation of around INR 4.00/kWh (5.90¢/kWh) for the project’s life time, the CEO of a leading cement manufacturer told an Indian newspaper.

February 9, 2017 0 comment

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