Monthly RE Update – February 2024

Monthly RE Update – February 2024

Tenders

New RFS Issued

• In February 2024, 17 new renewable energy (RE) tenders with a cumulative capacity of 15,008 MW were issued.
• MSAPL issued solar tenders of 3048 MW capacity under Mukhyamantri Saur Krushi Vahini Yojana 2.0 in Maharashtra.
• NTPC issued a 1500 MW solar tender (ISTS-III) this month. Additionally, NTPC invited bids for an ISTS connected wind solar hybrid (Tranche V) tender.
• UPPCL floated a solar tender with a capacity of 2000 MW anywhere in India.
• SJVN issued a wind-solar hybrid tender of 1500 MW capacity to be set up anywhere in India. SECI also invited bids for setting up of 1200 MW ISTS-connected wind-solar hybrid (Tranche VIII) tender.

Fig 1.1: New RE tenders issued in February 2024

Source: JMK Research

Source: JMK Research

In addition, SECI invited bids for setting up 4 GW of offshore wind energy projects off the coast of Tamil Nadu. The successful bidders must submit an earnest money deposit of INR 10 million per block. The last date for bid submission is 2nd May 2024.

Auction Completed

About 6,750 MW of RE tenders were auctioned and 6,110 MW capacity was allotted to various RE developers in February 2024.

Figure: Winners in the latest RE tenders

Source: JMK Research

Source: JMK Research

Installed Capacity

In January 2024, about 1020 MW solar capacity and 233 MW wind capacity was added in the country, taking the cumulative RE capacity to 182 GW.

Out of the total installed RE capacity, solar energy constitutes the largest share with 41%, followed by large hydro (26%) and wind at 24%.

Figure 2.1: RE installations in January 2024

Source: MNRE, JMK Research

Note: Solar includes utility scale solar, rooftop solar and off grid/distributed solar segments

State wise solar and wind installed capacity in January 2024

In January 2024, Maharashtra led in solar capacity installation with 624 MW, followed by Haryana (83 MW), Madhya Pradesh (76 MW), and Tamil Nadu (66 MW). While, Karnataka added the maximum wind capacity of 272 MW this month.

Figure 2.2: State wise solar and wind installed capacity in January 2024

Source: MNRE, JMK Research

Projects Commissioned

Source: JMK Research

Key announcements that were made during the month were:

• SJVN received a letter of intent (LOI) from GUVNL to set up a 200 MW solar power project under GUVNL Phase XXII solar tender. The project shall be commissioned in a period of 18 months from the date of signing of PPA.
  • SJVN has signed an agreement with Jammu & Kashmir Power Corp Ltd. According to the agreement, SJVN will supply 300 MW of solar power from its 1 GW plant located in Rajasthan. SJVN is developing this solar project under the central public sector undertakings (CPSU) scheme of the Indian Renewable Energy Development Agency (IREDA). The project cost is estimated at INR 5,491 crore, with a scheduled commissioning date in July 2024.

• The Assam government launched infrastructure projects worth over INR 200 crore in Nagaon district, including a solar power plant and water supply initiatives under the Jal Jeevan Mission. The projects inaugurated were a renovated stadium and a 100 MW solar power plant in the state.

• The Uttar Pradesh Power Corp. Ltd (UPPCL) and SECI have executed a power sale agreement (PSA) for 1 GW of solar power from interstate transmission system (ISTS) connected projects. UPPCL will buy this power at a tariff of INR 2.52-2.53 per kWh plus INR 0.07 trading margin imposed by SECI. The solar power shall be procured from the projects of Avaada Energy (300 MW), Sprng Energy (250 MW), ReNew Solar Power (300 MW) and Solarcraft Power India 8 (150 MW). The expected scheduling of the power is around February 2026.

• Suzlon has bagged a 642 MW wind power project from an Evren company, ABC Cleantech Private Limited (ACPL). As part of the order, Suzlon will install 214 wind turbine generators (WTGs) with a Hybrid Lattice Tubular (HLT) tower and a rated capacity of 3 MW each in Andhra Pradesh.
  • Suzlon has also secured a contract for a 30 MW wind power project from EDF Renewables. As per the agreement, Suzlon will set up 10 wind turbine generators (WTGs) featuring a hybrid lattice tubular tower, each with a rated capacity of 3 MW, in Gujarat.

• Waaree Renewable Technologies has received a letter of award (LOA) to set up a 412 MWp (335 MW AC) solar power plant on a turnkey basis. The total worth of this order would be INR 554.30 crore which includes EPC work of INR 547.50 crore and O&M INR 6.798 crore. The project is estimated to be commissioned by December 2024.
  • Waaree Renewable Technologies bagged an order worth INR 990.6 crore for a 980 MWp solar project. The project is scheduled to be completed within 12 months as per the LOA.
  • Additionally, the company has partnered with Mahindra Susten to supply 280 MW of solar modules. The modules are scheduled for delivery in the third quarter of FY 2025 as per the agreement.

• L&T has received an order to establish a 75 MW floating solar plant in Panchet dam. This plant is part of the Ultra Mega Renewable Power Park being developed on Damodar valley corporation reservoirs in Jharkhand and West Bengal.

• Inox Wind has received an order for the supply of 1500 MW of wind energy from CESC Ltd.

• The Spanish Renewable energy developer Acciona Energy is planning to install a 412 MWp solar plant in Rajasthan which is estimated to be completed by 2025.

• Torrent Power collaborates with seawater desalination arm of Shapoorji Pallonji for the installation of a 150 MW solar plant in Gujarat. Torrent Power signed an agreement with Shapoorji Pallonji to raise minimum 26% stake in the 150 MW of solar project, which will be developed by Torrent Power arm Torrent Urja 8 (TU8).

• Aether Industries Limited has awarded a contract for a 15 MW solar power project to KPI Green Energy. This project falls under the ‘Captive Power Producer (CPP)’ segment of the company. The solar power will be located in Gujarat and the phase-wise commissioning of the solar power plant is set to begin by April 2024.

• KPI Energy received an order for a solar project of 1.5 MW from Pruthvi Textiles in Telangana. The projects are scheduled to be completed in the financial year 2024-25.

• NLC India Limited will begin construction at a 300 MW solar project in the Bikaner district of Rajasthan. The facility will be funded by the Ministry of New and Renewable Energy’s Navratna Central Public Sector Enterprises (CPSE) scheme.

• NHPC is also going to install 300 MW of solar plant in Bikaner, Rajasthan. The project is being set up by NHPC under the Government of India’s CPSU Scheme, Phase-II, Tranche-III tender with a total investment of over INR. 1,732 crores. The project is scheduled for the commissioning by September 2024.

• JSW Energy has received LOA for a wind capacity of 500 MW from SECI for setting up wind power project. The company received this award against tariff based competitive bid invited for setting up of 1,350 MW ISTS connected wind power projects (Tranche-XVI).
  • The company has also received an LOA to establish a 700 MW ISTS-connected solar plant in any part of India on a build-own-operate basis. JSW secured this project by offering a competitive tariff of INR 2.53/kWh in SJVN’s auction for the development of 1.5 GW ISTS-connected solar power projects. The project is obligated to deliver power from the entire contracted capacity within 24 months from the effective date of the PPA.

• Hartek Power has secured an order from SJVN Green Energy Ltd to establish a 75 MW grid-connected solar plant along with a 132 kV substation in Jamui, Bihar. The estimated cost of this project would be INR 113 crore and the scope of work includes design, land development, engineering, equipment procurement, testing at the manufacturer’s works, packing, forwarding, and transportation.

• Tata Power Renewable Energy Ltd (TPREL) has signed a power delivery agreement (PDA) with Tata Communications for an 18.75 MW AC group captive solar power plant, with an investment valued at INR 105 crore.

• Blusmart has signed a multi-year power purchase agreement with Tata Power Trading to procure 30 MW of green power. The capacity will be sourced by Tata Power Trading company from Tata Power’s 200 MW solar plant in Rajasthan.

• Clean Max Enviro Energy Solutions (CleanMax) has secured a 25-year power purchase agreement with Bangalore International Airport Ltd (BIAL) for a 45.9 MW solar-wind power project. It will develop the project through a special-purpose vehicle named Clean Max Bial Renewable Energy. The power project will be set up in a solar-wind farm located in Jagaluru, Karnataka, owned and operated by CleanMax. It will consist of 36 MWp of solar power and 9.9 MW of wind power plants.

• Juniper Green Energy has partnered with Envision to set up a 300 MW wind project in Gujarat. As per the MoU, Envision will supply 91 units of EN 156-3.3 MW Wind turbine Generators (WTGs) and oversee the installation, commissioning, and maintenance of all WTGs.

• Gensol Engineering has won the EPC contract for two solar projects with a cumulative capacity of 422.5 MWp. The capacity includes a 350 MWp ISTS-connected solar power project in Rajasthan and a 72.5 MWp plant in Maharashtra, with the total value of these projects being INR 337.7 crore.

• Nxtra, the data centre unit of Bharti Airtel, signed an agreement with Ampin Energy and Amplus Energy to procure an additional 140 GWh of renewable energy. As per the agreement, Ampin Energy and Amplus Energy will set up captive solar and wind power plants of 48 MWdc and 24.3 MW, respectively, for Nxtra’s data centres in Tamil Nadu, Uttar Pradesh, and Odisha.

• Uttar Pradesh has proposed to set up eight renewable energy projects worth more than INR 67,000 crore. The projects, with a combined capacity of 13,250 MW, will be developed by private sector entities, including Torrent Power, Greenko Group, JSW Neo Energy, ACME Cleantech Solutions, Amunra Infratech and Agritech, and Avaada Water Battery. The biggest project, based on the pumped storage power (PSP) model, will be developed by Torrent Power in Sonbhadra to generate 4,150 MW of hydropower with an investment of INR 24,200 crore.

Monthly RE Generation

In February 2024, Renewable energy sources generated 14,580 MU, which is 15.5% higher than the RE generation in January 2024. Solar and Wind generation increased by around 17.7% and 16.9% on month-on-month basis, in February 2024.

Figure 3.1: Source-wise Renewable Energy Generation (MU) – India

Source: CEA, JMK Research

Investments/ Deals

In February 2024, a total of $500 million was raised in the RE sector in India. The key investments during the month were:

• Gentari Sdn Bhd, a unit of Malaysia’s state-run oil and gas company Petronas, has emerged as the winning bidder for the Indian solar projects of Finland’s Fortum Oyj, totalling 185 MW. Gentari has been given exclusivity for documentation of the sales process run by Kotak Investment Banking for the deal at an enterprise value of around $200 million.
• Infrastructure investment trust IndiaGrid has completed the acquisition of 300 MW solar project at an enterprise value of $187 million. With this asset addition, IndiGrid’s portfolio now consists of 19 solar projects across eight states of the country with a total generation capacity of 1.1 GWp.
• Gensol Engineering raised a significant INR 900 crore ($108 million) equity capital through warrants convertible into equity shares on a preferential basis. The company plans to deploy these funds for working capital, inorganic growth opportunities, and further investment in its subsidiaries as it aims for a 5X growth within the next three years.

Table 4.1: Investment and deal in February 2024

Source: Industry news articles, JMK Research

Other important announcements that were made during the month were:

• The Asian Development Bank (ADB) has raised 12.5 billion Indian rupees (about $150 million) through its largest local currency green bond issue to date. The issue is structured as a 4-year currency-linked bond, with a bullet repayment at maturity and carrying a fixed interest rate of 6.72% per year. The bond is denominated in Indian rupees but settled in United States dollars, with returns to investors indexed to the performance of the Indian currency. The proceeds of the green bond will be deployed to finance ADB’s private sector renewable energy and green finance projects.

• Green Infra Wind Energy Limited, Sembcorp Industries’ wholly-owned subsidiary, has completed the acquisition of 100% share capital in two special purpose vehicles (SPVs) of Leap Green Energy Private Limited. The SPVs own 228 MW of operational wind assets in Madhya Pradesh, Maharashtra and Rajasthan, India. With the addition of the wind assets and a 245 MW acquisition pending completion, Sembcorp’s gross renewables portfolio globally now stands at 13.5 GW.

• Brookfield Asset Management is looking to partially monetise on its clean energy assets. The company is planning to offload assets with a capacity of about 1.6 GW. A potential deal is likely to value at 9,000 to 10,000 crores, inclusive of debt. The few assets earmarked for divestment comprise capacities of 500 MW in Rajasthan, 50 MW in Gujarat, 300 MW in south India and 80 MW in Madhya Pradesh.

• Tata Power Solar has facilitated over INR 3,500 crore ($422.15 million) of customer financing for solar projects during the last 4.5 years. Tata Power Solar has achieved this feat through collaborations with more than 20 active financing partners, including public-sector units, private banks, and non-banking finance companies. The extensive network consists of State Bank of India (SBI), Small Industries Development Bank of India (SIDBI), Union Bank of India (UBI), HDFC, Bank of Baroda, Tata Capital, Greenlance Energy, Ecofy, Credit Fair, and Paytm as the primary lending partners.

• NTPC has received approval from the Department of Investment and Public Asset Management (DIPAM) to list its green energy arm NTPC Green Energy Ltd (NGEL) to raise up to INR 10,000 crore. The company is planning to utilise the funds towards energy transition and setting up green energy projects, including solar and green hydrogen.

• Shell has started the sale process for its Indian renewable energy unit Sprng Energy and has started reaching out to prospective buyers for the portfolio, which could fetch an enterprise value of $1.6-1.8 billion. Shell acquired the Sprng Energy from infrastructure investor Actis in August 2022 for an enterprise value of $1.55 billion and got a portfolio of 2.1 GW of renewable energy assets and a pipeline of 7.5 GW. Shell is working with investment bank HSBC for the proposed stake sale.

• Adani Green Energy plans to raise $500 million by issuing dollar bonds in March 2024. Currently, the company is undertaking groundwork and engaging with investors to determine pricing.
  • Adani Group is in advanced talks with West Asia-based sovereign funds to raise up to $2.6 billion for its airport expansion and green hydrogen projects. The timing of the fundraising is yet to be determined, but it is expected to be launched in the market by mid-2024.
  • Adani New Industries is also in discussions to raise up to $3 billion for capital expenditure. The company is discussing the planned transaction with a group of foreign lenders and is likely to raise the money via offshore loans in two or three tranches over the next 12 months, with the process starting in June. The loan’s tenor could range from three to five years, with the pricing likely linked to the Secured Overnight Financing Rate.

• Enerparc has secured bridge financing for a project portfolio consisting of solar PV and hybrid projects, including battery storage (BESS), with an overall capacity of 325 MW. The financing was provided by the Eiffel Investment Group, while Capcora acted as the exclusive financial advisor to ENERPARC throughout the process.

• IREDA has signed an agreement with PNB to explore finance opportunities in renewable energy projects in India.

• Fitch Ratings has assigned Adani Green Energy Ltd Restricted Group 1’s proposed $409 million senior secured notes due 2042 an expected rating of ‘BBB-(EXP)’ with a stable outlook. These U.S. dollar-denominated bonds will have a door-to-door tenor of 18 years and weighted average life of 12.7 years. AGEL RG1 consists of Adani Green Energy (UP) Ltd, Parampujya Solar Energy Pvt Ltd and Prayatna Developer Pvt Ltd, which operate a cumulative 930 MW of solar generation assets across India. It intends to use the gross proceeds of the offering to refinance the US$500 million 6.25% Senior Secured Notes due 2024.

• ReNew Energy is in talks with Singapore’s Sembcorp Industries Ltd to sell solar energy projects totalling 350 MW. The deal is estimated to be valued at around $241 million at the enterprise level and around $121 million in terms of equity.

• Radiance Renewables is planning to invest $150 million to expand its operating capacity and invest in hybrid wind-solar projects over the next three years in Karnataka, Tamil Nadu, Maharashtra, and Rajasthan. The funds will be used to increase the generation capacity to 2 GW for solar and hybrid wind-solar projects both on intra-state and inter-state transmission systems.

KP Green Engineering Ltd has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO). The issuance of INR 156.14 crore will be utilized to partially finance the capital expenditure towards setting up a new manufacturing unit of steel. Its extensive product range encompasses lattice tower structures, substation structures, solar mounting structures etc.

GTAM Traded volume

The IEX traded a total of 15 MUs in GTAM in January 2024, which is same as the volume traded in December 2023. The average trade price in IEX-GTAM for January 2024 was INR 6.56/kWh. This is about 7.9% lesser than the previous month’s price.

Figure 5.1: GTAM Traded volume and Price Trend

Source: IEX, JMK Research

Module Price Trends

Comparing on m-o-m basis, price for global mono PERC modules have decreased by 0.86% in February 2024.

Figure 7.1: Solar Modules Price trends

Source: PVInfoLink, JMK Research

JMK Research carried out price survey from domestic suppliers for February 2024 and as per the responses received, the all-inclusive domestic module prices till project site (including freight charges, GST etc) for various categories are:

• The February price of mono PERC 500 Wp modules was INR 19.7/Wp, down by 1% as compared to the price of modules in January.
• The price for Polycrystalline 330 Wp modules was INR 19.08/Wp, which is about 1.1% less than the previous month’s price.
• The price for Bifacial modules was INR 19.9/Wp in February, which is around 2.5% less than the price of modules in February.

Fig 7.2: Average Prices for Domestic Modules

Source: JMK Research

Note: Domestic module prices are all inclusive prices till project site including freight charges, GST, etc.

Key Market Updates

Solar Manufacturing

Cosmic PV Power ramping up solar module manufacturing capacity to 1.2 GW

Cosmic PV Power is ramping up its solar module manufacturing capacity to 1.2 GW from 850 MW at present. The company’s existing 850 MW facility in Surat, Gujarat, manufactures mono PERC and polycrystalline modules both. It will discontinue 250 MW of polycrystalline capacity and add 600 MW of new lines that will be equipped for TOPCon production. It is expected to the start production by May.

JSW Energy puts solar module manufacturing plan on hold

JSW Energy has put its solar module manufacturing plans on hold, citing a record fall in prices of solar panels. The company said it is re-evaluating the business viability. JSW Energy, was allocated a performance-linked incentive (PLI) for quoted manufacturing capacity of 1 GW wafer + cell + module in March last year.

Citizen Solar collaborates with Jinchen to expand module capacity to 1.2 GWp

Citizen Solar has signed an MoU with Chinese solar equipment manufacturer Jinchen Corporation to expand its solar module manufacturing capacity to 1.2 GWp. The agreement with Jinchen for the solar modules manufacturing equipment’s will start from March 2024 in a phased manner. The company is already listed on MNRE’s ALMM list with an approved manufacturing capacity of 70 MW

Renewsys plans to set up TOPCon solar cell & module production capacity

RenewSys aims to establish a 1 GW TOPCon solar cell manufacturing facility by December 2026. Furthermore, the company is expanding its production capabilities by adding 1 GW of TOPCon module production capacity, slated to commence production by April 2025. Additionally, there are plans to increase the TOPCon solar module capacity by another 2 GW by April 2026, along with a 2 GW capacity expansion for ethylene vinyl acetate (EVA)/polyolefin (POE)/EPE encapsulation film by December 2024.

Future Solar increases module manufacturing capacity to 1.2 GW

Currently, Future Solar has a module manufacturing capacity of 500 MW and aims to increase it to 1.2 GW. The company unveiled its bifacial dual-glass n-type TOPCon modules at Intersolar India 2024.

Emmvee inaugurates a 1.5 GWp Topcon solar cell manufacturing facility in Karnataka

Emmvee is setting up 1.5 GWp of Topcon solar cell manufacturing unit in Karnataka and the production will start in June 2024. Presently, the company is producing 580 WP Topcon modules based on M10 wafers and plans to expand its portfolio to include 650 WP modules.

Pahal Solar starts building 1.8 GW solar module manufacturing facility in Gujarat

Pahal Solar begins the construction of a cutting-edge manufacturing facility capable of producing 1.8 GW of advanced solar modules in Gujarat. From 30 MW in 2017 to 1.8 GW in 2024, Pahal Solar’s present production capacity has surged to 1.8 GW, with plans for further expansion.

Nova Solar plans to expand solar module manufacturing capacity to 1.2 GW by mid April

Nova Solar is expanding its solar module capacity to 1.2 GW with the commissioning of two new stringers of 400 MW each by the mid of April. The company currently has 600 MW of production capacity, which produces polycrystalline (200 MW) and mono PERC modules and is equipped to handle TOPCon production. It will phase out the polycrystalline production by March 15.

Jupiter International to set up 1.2 GW solar cell manufacturing facility in Odisha

Jupiter International is planning to set up a 1.2 GW solar cell manufacturing facility in Odisha. The facility will manufacture TopCon solar cells exclusively. The commissioning of the plant is expected to get completed by March 2025. Besides the solar cell project, Jupiter is also executing a 1.3 GW integrated solar cell and module manufacturing facility in a joint venture with Ampin Energy Transition in Odisha. The project is expected to be commissioned by the end of 2024.

Green Hydrogen

Gensol Engineering & Matrix Gas wins 63 MW under the National Green Hydrogen Mission PLI scheme

Gensol Engineering and Matrix Gas & Renewables Ltd has secured government incentives for an electrolyzer manufacturing capacity of 63 MW per annum. Gensol & Matrix won the capacity in the first round of the PLI scheme under the National Green Hydrogen mission.

Acme and Avaada begins work on green hydrogen and green ammonia projects in Odisha

The state government laid the foundation of the two clean energy projects in Odisha, which would entail a combined investment of INR 3,500 crore. Acme will set up a 1.1 MTPA green ammonia plant in the Tata Steel special economic zone (SEZ), while Avaada Group will establish a 0.5 MTPA green hydrogen/ammonia project in the industrial park.

Hygenco plans to Invest $2.5 billion to set up green hydrogen plants in India

Hygenco Green Energies plans to invest $2.5 billion to establish green hydrogen lants in India over a period of three years. Presently, the company is producing green hydrogen at two plants with capacities of 140 KW and 3 MW of renewable energy capacity, which includes an R&D cum demonstration unit in the final installation stage in Hisar, Haryana. Additionally, two more plants with a total capacity of 15 MW in Phase I are under construction in Maharashtra.

Green hydrogen’s allocation increases to INR 600 crore from INR 297 crore in FY 2025 Budget

The Union Budget for 2024-25 has allocated INR 600 crore for the National Green Hydrogen mission, which is 102% higher than the previous year’s budget of INR 297 crore.

JSW Neo Energy invests INR 67.6 crore to set up a green hydrogen production facility under the SIGHT scheme

JSW Neo Energy has been awarded the LOA to establish a 6.5 ktpa green hydrogen production facility through a SECI auction under the Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme. The facility is expected to be operational within 36 months from the LOA date. Under this scheme, JSW will receive incentives for three years from the start of green hydrogen production, involving an investment of INR 67.6 crores.

Acme and Indian Gas Exchange (IGX) signs a MoU for green hydrogen development

Acme Group signs a MoU with the Indian Gas Exchange (IGX) to develop green hydrogen and green ammonia in India. The two companies aim to set up a physical trading market for green molecules, starting with regional hubs located near hydrogen and ammonia projects and leading eventually to a nationwide hub.

Honeywell announced to setup world’s first commercial scale Liquid Organic Hydrogen Carrier

Honeywell announced that ENEOS, a leading energy company in Japan, will develop the world’s first commercial-scale Liquid Organic Hydrogen Carrier (LOHC) project at multiple sites.

CIAL signs MoU with BPCL to set up country’s first green hydrogen plant at airport

The Cochin International Airport (CIAL) has signed a Memorandum of Understanding (MoU) with Bharat Petroleum Corporation Ltd (BPCL) for setting up the country’s first green hydrogen plant in an airport. According to the agreement, BPCL will invest INR 30 crore and set up the plant at Kochi Airport and impart technology. CIAL will provide suitable land, water, and green energy for the plant which is expected to be completed in early 2025. The CIAL has 50-MW green energy installed capacity producing two hundred thousand units of power a day, it has now inked an MoU for a strategic collaboration with BPCL for setting up a 500-KW pilot project at the airport premises.

NTPC collaborates with APIIC to establish green hydorgen hub

NTPC Green Energy has signed a land lease agreement with Andhra Pradesh Industrial Infrastructure Corp (APIIC) for the development of an integrated hydrogen hub on 1200 acres of land in Andhra Pradesh. This hydrogen hub will host world-class facilities for electrolyzer and fuel cell manufacturing, related ancillary industries, start-ups, incubation, testing, production, and export of green hydrogen and its derivates such as green ammonia/methanol.

Jindal Stainless Ltd to inaugurate its first green hydrogen plant

Jindal Stainless Ltd (JSL) to inaugurate its first green hydrogen plant. With the inauguration, JSL will become India’s first stainless steel company to install such kind of plant on a commercial scale. The project targets to reduce carbon emissions considerably by around 2,700 metric tonne per annum and 54,000 tonne Co2 emissions over 20 years.

Indian Oil Company Ltd (IOCL) restarts tender to install a green hydrogen production unit

IOCL is set to reissue a tender for establishing a green hydrogen production unit. The decision comes as part of a INR 2.4 trillion green transition initiative to achieve net-zero carbon emissions by 2046, with plans to install units at all refineries.

NTPC Green Energy to invest INR 80,000 crore for Maharashtra projects

NTPC Green Energy Ltd. (NGEL) announced that it has signed an agreement with the government of Maharashtra for the development of green hydrogen and its derivatives such as green ammonia and green methanol of up to 1 million tonne capacity per annum. The agreement also includes the creation of pumped storage projects of 2 GW and the development of renewable energy projects with or without storage up to 5 GW in the state.

ReNew begins work on 1.2 mmtpa green ammonia plant in Odisha

ReNew E-Fuels has commenced work on a green ammonia plant with a production capacity of 1.2 mmtpa in Odisha. ReNew E-Fuels is developing the project with an investment of INR 22,000 crore (over $2.65 billion).

Energy Storage

Power Minister finalizes mechanisms for deployment of Battery Energy Storage Systems to deliver Round-the-Clock Renewable Energy

The government finalizes the structure for operationalizing the scheme for Viability Gap Funding (VGF) for development of Battery Energy Storage Systems (BESS) with capacity of 4,000 Megawatt Hours (MWh). Various sites in states rich in renewable energy were discussed as potential locations for BESS, in order to get maximum benefit from the storage system.

SECI commissioned India’s largest 120 MWh battery energy storage system project in Chhattisgarh

SECI has successfully commissioned India’s largest battery energy storage system (BESS) with an installed capacity of 152.325 MWh and dispatchable capacity of 100 MW AC (155.02 MW peak DC) solar power with 40 MW/120 MWh BESS in Rajnandgaon, Chhattisgarh.

India’s renewable energy sector to see surge in battery storage capacity to 4 GW by FY 2028

India is planning to add approximately 4 GW of battery storage capacity by FY 2028. This expansion is expected to enhance the returns profile of standalone storage projects by 300-400 basis points to 12-13%, aided by a 20% year-on-year decline in battery prices and government grants. The country’s renewable energy capacity, encompassing solar and wind, has witnessed significant growth, escalating to around 120 GW by December 2023 from about 70 GW in December 2019.

India targets 70 GW energy storage by 2030, needs INR 14 lakh crore financing

India aims to install around 12 GW of energy storage capacity by FY24, with expectations to rise to 70 GW by FY30.To meet the target of 425 GW installed RE capacity, along with 19 GW in pumped storage projects (PSP) and 42 GW in battery-enabled storage solutions (BESS) by 2030, an estimated INR 14 lakh crore in incremental debt financing is required.

Hindalco Industries aims to reach 30% of its energy mix from RE by 2030

Hindalco Industries has decided, upon completing the phase-I project of Pumped Hydro Storage, to aim for 30% of its energy mix to come from renewable energy sources by 2030. Additionally, the company aims to achieve carbon neutrality by 2050. As part of these efforts, Hindalco plans to expand the Pumped Storage plant in Odisha from 100 MW to 350 MW. Furthermore, it intends to install a solar project with pumped hydrogen at its Madhya Pradesh smelter through Aditya Birla Renewables.

Tata Power Invests INR 15,000 crore to establish 2.8 GW of Pumped storage projects by 2028-29

Tata Power is looking to set up pumped hydro storage projects of 2,800 MW capacity by 2028-29 with an investment of INR 15,000 crore.Overall, there is 97 GW of pumped hydro storage potential in India.

Other Market Updates

ALMM to keep margins of solar module makers at 12-14% next fiscal

The implementation of the Approved List of Models and Manufacturers (ALMM) from April 1, 2024, is expected to help keep operating margins of domestic module makers strong at 12-14% in FY25, in line with the level likely this fiscal. This fiscal, the profitability is expected to almost double over the previous fiscal as rising share of exports, which fetch a 15-20% premium over domestic prices, will more than offset the surge in imports in the absence of ALMM.

India’s solar capacity soars 26-fold and wind capacity doubles over the past decade

India marks a major milestone in renewable energy capacity, now standing at 188 GW, a remarkable increase from 81 GW in the past decade. The rapid growth in the country’s renewable energy sector is evident, with solar power capacity surging 26-fold and wind power capacity doubling over the last 10 years. Globally, India ranks fourth in the wind sector and fifth in solar power capacity. The nation aims to achieve 50% of its electric power from non-fossil fuels by 2030.

CERC initiates pilot study on power market coupling

Central Electricity Regulatory Commission (CERC) has directed a shadow pilot study on market coupling, aiming to enhance market efficiency and optimize transmission infrastructure. The proposed shadow pilot study aims to couple the Real-Time Market (RTM), RTM with Security Constrained Economic Dispatch (SCED), and Day-Ahead Market (DAM) of power exchanges. The shadow pilot will assess the operational, market, and regulatory impacts before full-scale implementation.

Around 469 GW of Power Capacity would be added in 2031-32

The Government announced that about 156 GW of new power generation capacity is in the pipeline, which includes 103 GW of RE,26 GW of thermal,18 GW of hydro, and 8 GW of nuclear energy. The total estimated capacity of 469 GW is expected to be added by 2031-32.The Transmission plan for integration of 5,00,000 MW RE capacity by 2030 is being implemented in a phased manner, equivalent to the capacity addition of RE.

India approves 37.74 GW of solar parks across 12 states since 2014

The power ministry confirms that, since 2014, India has sanctioned 51 solar parks with a combined capacity of 37.74 GW in various states. As of December 2023, 10.5 MW projects have been commissioned within 20 solar parks.According to the estimations of the National Institute of Solar Energy (NISE), India has a solar potential of 748 GWp, based on data from the Waste Land Atlas of India 2010.

India requires INR 30 lakh crore investment to meet its Nationally Determined Contributions (NDC) goals for FY 2024-30

Indian Renewable Energy Development Agency (IREDA) stated that the investment is likely to be required, INR 30 lakh crore over the period FY 2024-30. The investment is required in building capacities in solar, hydro, wind, and waste-to-energy sectors, green hydrogen (including electrolyzers), batteries, and transmission. Furthermore, this initiative not only yields significant advantages but also promotes awareness of renewable energy among the general population, furthering India’s ambitious objectives of attaining net-zero emissions by 2070 and achieving energy independence by 2047.

Credit Fair collaborates with Jakson Solar to assist solar financing in India

Credit Fair has partnered with Jakson Solar to offer affordable financing options for solar equipment in India. The goal is to facilitate the installation of clean energy systems for individuals, MSMEs, trust institutions, and housing societies. The company will provide easy EMI options for up to 7 years with the flexibility to pre-close loans without additional charges. The objective is to accelerate the adoption of solar energy solutions across the country, offering faster, simpler, and fully digital lending solutions to customers opting for Jakson Solar equipment.

PM Suryaghar Muft Bijli Yojana provides subsidies to residential consumers, up to INR 78,000

The central government has unveiled substantial subsidies under the ‘PM Surya Ghar Bijli Yojana,’ which aims to install solar rooftops in 1 crore households by providing up to 300 units of free electricity per month. The program introduces a progressive subsidy model designed to make solar power more accessible and affordable. According to this scheme, residential households will get a subsidy scheme of INR 30,000/kW up to 2 KW, with an additional INR 18,000/kW for any added capacity up to 3 kW, and the total subsidy for systems larger than 3 kW is capped INR 78,000, ensuring substantial financial support for larger installations. Ministry has shifted National Rooftop Solar Portal to PM Surya Ghar Portal. MNRE announced that the residential rooftop solar applications submitted before 13 February 2024, will not be applicable for central financial assistance (CFA) under the new PM Surya Ghar: Muft Bijli Yojana.

Q4 2023 (Oct-Dec) India RE update-JMK Research

JMK Research has issues its Q4 2023 (Oct-Dec) India RE update. The key pointers from the report are mentioned below: India’s renewable capacity installation reached 133.88 GW as of December 31, 2023. In Q4 2023 (October-December 2023), about 1.42 GW of utility-scale solar capacity was added. About 0.17 GW was added in the wind segment. In rooftop solar, there were no installations during this quarter. According to JMK Research, in CY2024, about 20.6 GW of new solar capacity is expected to be added in India (16 GW from utility-scale, 4 GW from rooftop solar and another 600 MW from off grid component). Whereas in the wind segment, it is projected that around 4.5 GW of new capacity is likely to be added in CY2024.In Q4 2023, Sungrow was the leading inverter supplier followed by FIMER and Sineng. While Jinko was the leading module supplier contributing about 35% share of total shipments in this quarter. In Q4 2023, 77 new tenders with a cumulative capacity of 34.1 GW were issued across renewable segments, which is about 21.2% higher than the previous quarter.

MNRE puts on hold the ALMM reimposition order in abeyance

The Ministry of New and Renewable Energy has kept in abeyance its recent order of reimposing the Approved List of Models and Manufacturing regulation from 1^st April 2024. On 9^th February 2024, MNRE has notified that the ALMM regulation will be reimposed from 1st April 2024.

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