Union Budget: Analysis of the announcements for renewable energy sector

Presenting the union budget, Finance Minister Arun Jaitley re-stated the government’s ambitious green energy targets without much detail on the implementation and financing of the solar, wind, biomass and hydro energy projects.

“The Ministry of New Renewable Energy has revised its target of renewable energy capacity to 1,75,000 MW till 2022, comprising 100,000 MW Solar, 60,000 MW Wind, 10,000 MW Biomass and 5000 MW Small Hydro,” said Jaitley, reiterating the announcements made in the past few months.

The Finance Minister proposed to increase the Clean Energy Cess from Rs 100 to Rs 200 per metric tonne of coal, to finance clean environment initiatives. But with the proposals for the utilization of funds from the increased coal cess yet to be spelt out, it is still very much a waiting game.

The budget proposed creation of a National Investment and Infrastructure Fund (NIIF) and an annual flow of Rs 20,000 crore into it. This will raise money to be invested in renewable energy projects as well.

The decision to electrify 20,000 villages with the help of solar off-grid solutions also offers an excellent opportunity for businesses to scale up their solar offerings in rural areas.

To support manufacturing in solar energy sector, excise duty has been slashed on round copper wire and tin alloys for use in the manufacturing solar PV ribbon (used in solar PV cells).

Prime Minister Narendra Modi, a keen proponent of solar energy in his home state of Gujarat, has been proactive on the renewable energy front and there is tremendous optimism from the private sector. However, until the implementation process  is announced, it remains to be seen whether the government will walk the talk.

Posted in Opinion & analysis, Solar News, Solar Posts | Tagged , , , , , , , | Leave a comment

Railway Budget: Indian Railways Plans 1000 MW of Solar Energy Projects

The Indian railways took a step towards becoming green on Thursday, with rail minister Suresh Prabhu saying that Indian railways plans to tap the sun for energy needs so that it can reduce its dependence on electricity generated by fossil fuels.

The rail network plans 1000 MW of solar-power projects in the next five years, minister Suresh Prabhu said in parliament on Thursday. The minister while presenting the railway budget for the year beginning in April said that work is in full swing at the solar power plant at Katra station and is slated for completion in March 2015. He added that developers can use the railway land and buildings to set up solar panels with subsidy/viability gap funding support of Ministry of Non- Renewable Energy in next five years.

The minister said he plans to purchase power by soliciting bids from generators and power exchanges, resulting in savings of 30 billion rupees ($485 million).

 

Posted in Solar News | Tagged , , | Leave a comment

Mercom projects India’s solar power installation for 2015 at 1,800 MW

Solar installations in India during the calendar year 2014 totaled 883 MW, down 12 per cent compared with 1,004 MW installed in 2013, according to Mercom Capital Group, a global clean energy communications and consulting firm.

In its quarterly update on the Indian solar market, Mercom said the 2015 forecast is unchanged at approximately 1,800 MW with some upside.

“Most of the industry is confused as they are constantly bombarded with new policies, goals, drafts and revisions,” said Raj Prabhu, CEO and Co-Founder of Mercom Capital Group. “The last time the National Solar Mission (NSM) conducted a solar auction was in October 2013 – the industry just wants to see execution.” He added.

The official release can be accessed here.

Posted in Solar News | Tagged , , , , | Leave a comment

Several companies win mandates for solar power projects in Punjab

Delhi-based ACME, French company Solaire Direct, Crocus Infra of the Indiabulls group, and the American firm, Azure Power, are among those that have won mandates to put up solar power projects in Punjab.

ACME group has won rights to put up 74 MW solar power projects in a bidding process put through by the Punjab Electricity Development Agency (PEDA). It has won 24 MW, bidding a tariff of Rs. 7.16 a kWhr and another 50 MW for Rs. 7.06 kWhr.

The group will put up these projects in the State with an investment of Rs. 600 crore and the electricity will be sold to the State electricity distribution company at these tariffs. With this, ACME’s total solar projects under development in the country have crossed the 700-MW-mark.

Crocus picked up 44 MW (20 MW for Rs. 7.42; 20 MW for Rs. 7.56 and 4 MW for Rs. 7.45). Solaire Direct got 54 MW (for Rs. 6.88 a kWhr) and Azure Power, 28 MW (24 MW for Rs. 7.19 and 4 MW forRs. 7.33)

PEDA had issued a tender to buy solar electricity from 250 MW of projects. The total capacity was divided into three categories, with maximum bidding capacity of 24 MW, 50 MW and 5 MW by a single company under each category.

 

Posted in Solar Posts | Tagged , , , , , , | Leave a comment

RE-Invest 2015 – post-event summary and media coverage

The Ministry of New and Renewable Energy, Government of India organized the first Renewable Energy Global Investors Meet & Expo, RE-Invest, from 15 to 17 February 2015 in New Delhi.

The central theme of RE-Invest was to attract large scale investments for the renewable energy sector in India. The event was inaugurated by the Hon’ble Prime Minister of India and attended by the prominent global stakeholders.

A total of 119 companies set their pavilions in the lawns of Hotel Ashok in New Delhi. The four participating countries were Germany, UK, Italy and UAE. Apart from this, states such as Madhya Pradesh , Andhra Pradesh , Punjab and Jharkhand and associations of solar and wind power developers / manufacturers showcased their initiatives in the renewable energy sector. With latest technologies, financing options and investment opportunities, the expo provided an opportunity for companies to showcase their services. 202 speakers spoke on 7 sessions, 40 international speakers, 9 state energy ministers & 200 global investors showcased their respective interests while 2862 delegates participated in RE-Invest 2015.

At the RE-Invest, the participating companies committed to develop a cumulative renewable energy capacity of 2,66,000 MW. Banking institutions committed to finance 78,000 MW of renewable energy projects.

Inauguration by PM Modi

http://www.narendramodi.in/pms-address-at-the-inauguration-of-re-invest-2015-the-first-renewable-energy-global-investors-meet-and-expo/

http://www.dnaindia.com/india/report-pm-makes-strong-pitch-for-innovation-in-making-renewable-energy-affordable-2061208

Policy announcements

Andhra Pradesh: solar and wind policies

Solar policy document

Report on India’s Renewable Electricity Roadmap 2030

http://shaktifoundation.in/wp-content/uploads/2014/02/Report-on-Indias-RE-Roadmap-2030-full-report-web2.pdf

http://pib.nic.in/newsite/PrintRelease.aspx?relid=115487

Policy-related links

http://articles.economictimes.indiatimes.com/2015-02-12/news/59083830_1_hydel-piyush-goyal-approvals

http://www.thehindu.com/business/Industry/govt-to-protect-investments-in-renewable-energy-piyush-goyal/article6901732.ece

Prominent speakers

Michael R Bloomberg

http://mikebloomberg.com/index.cfm?objectid=88CAD6FE-5056-9A3E-D08B50334970CCF3&utm_source=Twitter&utm_medium=Social&utm_campaign=REInvest2015

http://timesofindia.indiatimes.com/business/india-business/UN-special-envoy-Bloomberg-praises-PM-Modis-green-steps-says-very-bullish-on-India/articleshow/46260885.cms

http://www.un.org/apps/news/story.asp?NewsID=50109#.VObW_PmUf1s

Memorandums of Understanding

SECI signs MoU with THDCIL for Development of 250 MW of Solar Projects

Adani Enterprises in MOU with Government of Rajasthan for 10GW PV power plant

SJVN has confirmed plans for a 4.2GW renewable energy park: SJVN & Hindustan salts MoU

SunEdison commits to creating over 15,000 MW of renewable energy

Essel Group to set up 5000 MW of Solar Park Projects in Rajasthan: MoU with Govt of Rajasthan

Azure Power, GERMI sign MoU for solar certification programme

Welspun Renewables to set up 11 GW of solar, wind projects 

Andhra inks MoUs for 4,000 MW wind power

MoU between Punjab & Progetika – SRC, Italy

At 750MW, Madhya Pradesh to get world’s largest solar power plant

Others

http://www.business-standard.com/article/economy-policy/india-s-first-renewable-energy-summit-likely-to-see-166-gw-of-solar-investment-115021000461_1.html

http://www.hindustantimes.com/business-news/293-companies-pledge-266-gw-clean-power/article1-1317191.aspx

http://www.pv-tech.org/news/companies_race_to_grab_share_of_indias_100gw_pv_plans

Investments:

SBI commits Rs 75,000 crore for financing clean energy generation

http://www.hindustantimes.com/business-news/dilip-shanghvi-to-buy-equity-worth-rs-1-800-crore-in-suzlon-energy/article1-1316697.aspx

http://www.business-standard.com/article/economy-policy/re-invest-2015-companies-commit-200-billion-to-clean-energy-115021400027_1.html

Investment Needs

http://profit.ndtv.com/budget/renewable-energy-ministry-wants-innovative-financial-models-739623

http://www.business-standard.com/article/companies/rs-5-000-7-000-cr-investment-required-to-meet-govt-s-60-gw-target-iwtma-115021700286_1.html

Effects

http://economictimes.indiatimes.com/jobs/solar-energy-output-goal-could-create-1-million-jobs-study/articleshow/46245532.cms

http://www.thehindubusinessline.com/economy/india-will-be-one-of-the-worlds-top-5-solar-markets-by-2020/article6913457.ece

Top players

Sl. No. Name of the company Capacity (in MW) Solar (in MW) Wind (in MW)
1 Sun Edison Energy India Pvt Ltd 15200 10000 5200
2 Axis Wind Energy Ltd 12500 5500 7000
3 Essel Infra Projects Ltd 12000 12000
4 Renew Power 11500 7000 4500
5 Welspun Renewables 11001 8660 2341
6 Azure Power 11000 11000
7 Raasi Solar Energy 10600 10600
8 Hindustan Clean Energy Ltd 10000 7000 3000
9 Greenko Energies 9990 3000 5900(Others 1090)
10 Sky Power Global 9900 9900

 

ORIGINAL DOCUMENT FOR GREEN ENERGY COMMITMENTS FROM REINVEST 2015 WEBSITE

Essel Infra Projects (12 GW), Azure Power (11 GW), SunEdison (10 GW), Welspun (8.7 GW), Renew Power (7 GW) and First Solar (5 GW). Ambitious plans have also been submitted by large Indian conventional power companies such as Adani Power (6 GW) and Reliance Power (6 GW).

Raasi Solar Energy, a company promoted by a former Member of Parliament, link: http://cnarasimhan.com/ has indicated plans for 10 GW

Sky Power Global, a large Canadian project developer, aims for 9.9 GW

CPEC, a less known player, that had earlier commissioned a project under the Gujarat Solar Policy, has indicated plans for developing 9 GW

Amongst public sector companies, significant interest has come from NTPC (3.3 GW), NEEPCO (2.5 GW), Coal India (1 GW) and Satluj Jal Vidyut Nigam (1 GW). In total, 140 developers have made project development commitments.

On the manufacturing side, three existing Indian players have indicated their ambitious plans: Vikram Solar (2.3 GW/year), Waaree Energies (2 GW/year) and Emmvee Photovoltaic (750 MW/year).

On the finance front, L&T Finance indicated that it wants to finance 6.5 GW and Yes Bank 5 GW of renewables.

Videos

Webcast

Full Speech: PM at 1st Renewable Energy Global Investors Meet & Expo

Shri Piyush Goyal Addressing a Curtain Raiser Press Conference

An Interaction with Director-General, International Renewable Energy Agency Mr. Adnan Z. Amin

Talkathon with Shri Piyush Goyal

Posted in Opinion & analysis, Solar News, Solar Posts | Tagged , , , , , , | Leave a comment