Monthly RE Update – December 2023

Monthly RE Update – December 2023

Tenders

New RFS Issued

  • In December 2023, 10 new renewable energy (RE) tenders with a cumulative capacity of 5,785 MW were issued. SECI issued a 1500 MW ISTS-Connected solar tender (ISTS-XIII).
  • NTPC floated two tenders of 1500 MW each, an ISTS-Connected solar tender and ISTS-Connected Wind-Solar Hybrid tender (Tranche IV) across Pan India.
  • UPNEDA issued a rooftop solar tender of 500 MW capacity in Uttar Pradesh.

Fig 1.1: New RE tenders issued in December 2023

Source: JMK Research

Table 1.1: RFS Issued

Tender Name

Technology

Tender Scope

Capacity (MW)

Other Details

Minimum CUF

Commissioning timeline from PPA signing (months)

Bid Submission Date

SECI, 1500 MW, ISTS Connected Solar (ISTS-XIII), Pan India, Dec 2023

Utility Scale Solar

Project Development

1500

EMD – INR 0.93 million/MW/projectPBG – INR 2.32 million/MW/project

17%

24

31st-Jan-2024

NTPC, 1500 MW, ISTS Connected Solar, Pan India, Dec 2023

Utility Scale Solar

Project Development

1500

4thJan-2024

 

NTPC, 1500 MW, ISTS Connected Wind Solar Hybrid (Tranche-IV), Pan India, Dec 2023

Hybrid

Project Development

1500

EMD – INR 1.16 million/MW

3rd-Jan 2024

UPNEDA, 500 MW, Rooftop Solar, Uttar Pradesh, Dec 2023

Rooftop Solar

RESCO

500

EMD – (INR 10,00,000) x Quoted Bid Capacity in MWPBG – (Rs. 10,00,000) x Allocated Capacity in MW

15%

18

15th-Jan-2024

RECPDCL, 250 MW, ISTS Connected Solar, Pan India, Dec 2023

Utility Scale Solar

Project Development

250

EMD – INR 0.9 million/MWPBG – INR 1.75 million/MW

22%

18

25th-Jan-2023

BSPGCL, 185 MW Solar with 254 MWh BESS (EPC), Bihar, Dec 2023

Hybrid

EPC

185 MW Solar with 254 MWh BESS

EMD – INR 182.6 millionPBG – 10% of the contract value

18

4th-Jan-2024

BPCL, 100 MW, Wind, Madhya Pradesh and Maharashtra, Dec 2023

Wind

Project Development

100

EMD – INR 20 million/MWPBG – 10% of the contract value

21

1st-Jan-2024

HPCL, 100 MW, Solar (EPC), Andhra Pradesh, Dec 2023

Utility Scale Solar

EPC

100

EMD – 1% of the contract valuePBG – For all items excluding contractor’s variance request (CVR) items: 10% of the purchase order valueFor CVR items: INR 1 million or 5% of the order value

15th-Dec-2023

PSPCL, 100 MW, Solar, Punjab, Dec 2023

Utility Scale Solar

Project Development

100

EMD – INR 10 million

19%

24

18th-Jan-2024

HPPCL, 50 MW, Solar (EPC), Dec 2023

Utility Scale Solar

EPC

50

23rd-Jan-2023

PBG: Performance Bank Guarantee

EMD: Earnest Money Deposit

Source: JMK Research

Auction Completed

About 2750 MW solar tenders and 1500 MW wind-solar hybrid tender were auctioned in December 2023.

Figure: Winners in the latest RE tenders

Source: JMK Research

Tender Name

Capacity Tendered (MW)

Capacity Allotted (MW)

Minimum CUF

Commissioning timeline from PPA signing (months)

Bid Submission Date

NTPC, 1500 MW, Solar-Wind hybrid (Tranche-I), Pan India, July 2023

1500

1104

30%

O2 Power – 300 MW (INR 3.35/kWh)Sprng Energy – 250 MW (INR 3.35/kWh)Acme – 300 MW (INR 3.36/kWh)Juniper Green Energy – 230 MW (INR 3.36/kWh)Avaada – 24 MW (INR 3.37/kWh)

PFC Consulting, 1250 MW, ISTS-connected Solar, Pan India, Sep 2023

1250

1250

22%

18

NTPC – 900 MW (INR 2.53/kWh)Acme – 300 MW (INR 2.53/kWh)Solarcraft Power (Blupine Energy – 50 MW (INR 2.54/kWh)

SECI, 1000 MW, ISTS connected Solar (Tranche XII), Pan India, Oct 2023

1000

1000

17%

24

Avaada Energy – 300 MW (INR 2.52/kWh)Sprng Energy – 250 MW (INR 2.52/kWh)ReNew Solar – 300 MW (INR 2.52/kWh)Solarcraft Power (Blupine Energy – 150 MW (INR 2.53/kWh)

GUVNL, 500 MW, Solar (Phase XXII), Gujarat, Nov 2023

500

390

17%

24

SJVN – 100 MW (INR 2.63/kWh)Hinduja Renewables – 140 MW (INR 2.64/kWh)Avaada – 100 MW (INR 2.65/kWh)Solarcraft Power India (Blupine Energy) – 50 MW (INR 2.65/kWh)

Source: JMK Research

In addition, bids submission was also concluded for Electrolyser Manufacturing Capacities in India under Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme (Tranche-I). The tender has been issued in July 2023.

Bidder’s Name

Bucket 1: Annual Manufacturing Capacity (MW)

Bucket 2: Annual Manufacturing Capacity (MW)

Hild Electric

100

Ohmium Operations

137

John Cockerill

300

Waaree

300

Jindal

300

Adani New Industries

300

300

L&T Electrolysers

300

Avaada Electrolyser

300

Green H2 Network

100

Reliance Electrolyser

300

Advait Infratech

100

Acme

100

Oriana Power

100

Matrix Gas and Renewables Ltd

105

HHP Seven

100

HomiHydrogen Private Ltd

101.5

BHEL

10

Newtrace Private Ltd

6

C. Doctor & Company Private Ltd

10

Pratishna Engineers

19

LiveHy Energy

40

Additionally, bids was submitted for Green Hydrogen Production Facilities in India under SIGHT scheme Tranche I in December 2023.

Bidder’s Name

Bucket 1: Production Capacity (MT/annum)

Bucket 2: Production Capacity (MT/annum)

Acme

90000

Torrent Power

18000

UPL Ltd

10100

GH4INDIA Private Ltd

10000

Aneeka Universal

2000

Sembcorp Green Hydrogen

36000

Greenko ZeroC

90000

CESC Projects

10500

JSW Energy

10000

Welspun New Energy

20000

Avaada GreenH2

90000

Reliance Green Hydrogen

90000

HHP Two Private Ltd

75130

BPCL

2000

Installed Capacity

From January to November 2023, about 9 GW solar capacity and 2.7 GW wind capacity was added in the country, taking the cumulative RE capacity to 132.7 GW.

In November 2023, a combined total of 565 MW of solar and wind capacity was added.

Figure 2.1: RE installations in November 2023

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 November 2023

Tamil Nadu installed the maximum solar capacity of 137 MW in November 2023 followed by Gujarat (99 MW). Karnataka and Tamil Nadu added the highest wind capacity of 214 MW and 52 MW respectively, in the country in this month.

Figure 2.2: State wise solar and wind installed capacity in November 2023

Source: MNRE, JMK Research

Projects

Key announcements that were made during the month were:

  • JSW Renew Energy has commissioned the first phase of 51 MW capacity of its 810 MW wind energy project in Tamil Nadu. The project has a power purchase agreement with Solar Energy Corporation of India (SECI) for 25 years.
  • Godawari Power & Ispat, announced that its arm Hira Ferro Alloys has commissioned a 22 MWp solar plant for self-consumption. The plant, located in the Bemetara district of Chhattisgarh, is part capacity of a proposed 55 MWp plant.
  • Engie has started building a 400 MW solar plant in Gujarat. It secured the capacity through competitive bidding in a 750 MW auction by GUVNL. The project will be built with an estimated investment of around $200 million and benefit from a 25-year power purchase agreement (PPA) signed with GUVNL. The project is expected to be commissioned by the second quarter of 2024.
  • Premier Energies has secured a 350 MW bifacial solar module supply order from IRCON Renewable Power Ltd under the domestic content requirement (DCR) category. Premier Energies expects the module deliveries to be completed by August 2024.
  • Hindustan Petroleum Corp Ltd (HPCL) will deploy a 100 MW of solar Project at Gaaliveedu for self-consumption. A Memorandum of Understanding (MOU) has been signed between the HPCL and Andhra Pradesh Power Corp Ltd to set up solar & wind power plants of 500 MW each, along with 250 MW of pumped storage projects, involving an investment of INR 10,000 crore.
  • Eden Renewable declared the signing of a 300 MW PPA with SECI for the sale of renewable energy at a tariff of INR 2.60/kWh.
  • Hindustan Unilever Limited (HUL) announced a strategic partnership with Brookfield to set up a solar energy park with 45 MW capacity in Rajasthan. HUL’s Board of Directors approved an equity investment of up to 27.73% (and up to 32.24% including HUL’s wholly-owned subsidiaries).
  • The Andhra Pradesh government has announced the commencement of a 750 MW solar project in Kadapa and a 100 MW solar plant in Anantapur. The government also declared plans for the establishment of 16 additional substations with the total cost of these projects is worth Rs 66 billion.
  • Goldi Solar announced that it has received a supply order for 190 MW of solar modules from Engie India.
  • Waaree Energies has secured a contract to supply 200 MW of Solar PV modules, incorporating cells made in India, for IRCON Renewable Power’s PV project in Pavagada, Karnataka.
  • Sunsure Energy collaborated with Sandoz India for the supply of renewable energy from a 20 MW of solar plant.
  • The Uttar Pradesh government is set to establish a 50 MW solar plant in the Bakhira bird sanctuary.
  • Sembcorp Industries has received a contract from NHPC to build a 300 MW solar power project. The letter of award was issued to Sembcorp’s wholly owned renewables subsidiary Green Infra Wind Energy Limited (GIWEL). The project is part of a 3GW bid issued by NHPC earlier in 2023. The project will be funded by internal funds and debt and is expected to be ready for commercial operation in 2026.
  • Tata Power Solar Systems Ltd will provide 152 MWp of bifacial mono-PERC modules built with in-house developed cells to NTPC for Nokh PV Park in Rajasthan. The order value of the project is around INR 418 crore.
    • Tata Power Renewable Energy Limited (TPREL), has received a Letter of Award (LOA) for developing the 200 MW FDRE project with SJVN. The project is expected to be commissioned within 24 months from the PPA execution date.
    • Tata Power Renewable Energy has signed an agreement with Dr Abhay Firodia Group of companies, Force Motors Ltd and Jaya Hind Industries Pvt Ltd to establish a 13.2 MW Group captive solar plant.
  • A solar project of 800 MW is to be developed by joint venture of state-owned hydropower producer THDC and the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA). The solar park with a cost of around INR 4,000 crore will spread across nine villages which includes 3045 acres of private land and 955 acres of government land.
  • The government is implementing a scheme to establish solar parks and Ultra Mega solar power projects with a target capacity of 40 GW. Under this initiative, as of November 2023, the MNRE has sanctioned 50 solar parks with a total capacity of 37.49 GW in India. Of this, 10.4 GW of solar projects have been commissioned.
  • Inox Wind Limited (IWL) secures a significant 279 MW order from a major Commercial & Industrial (C&I) entity. The project, scheduled for completion by June 2025, involves the installation of WTGs across Rajasthan and Gujarat.
  • Adani Green Energy (AGEL) has signed a PPA with the SECI to supply 1,799 MW of solar power. AGEL has completed the power offtake tie-up for the entire 8,000 MW manufacturing-linked solar tender awarded to it by the SECI in June 2020.
  • Suzlon has announced that it has bagged a 300 MW wind energy project from Apraava Energy. Suzlon will install 100 Wind Turbine Generators (WTGs) with a Hybrid Lattice Tubular (HLT) tower, and a rated capacity of 3 MW each at the client’s site in Karnataka.
    • Suzlon has bagged two separate wind energy orders of 100.8 MW each from Mahindra Susten and an Indian arm of a leading Nordic energy company. Suzlon will install 48 units of their S120 – 140m wind turbine generators (WTGs) with a Hybrid Lattice tubular (HLT) tower and a rated capacity of 2.1 MW each in Maharashtra for Mahindra Susten Pvt Ltd. Suzlon will install 32 wind turbine generators (WTGs) with a Hybrid Lattice Tubular (HLT) tower and a rated capacity of 3.15 MW each for Nordic Energy in Karnataka.

Monthly RE Generation

In December 2023, Renewable energy sources generated 13,707 MU, which is 23.5% higher than the RE generation in November 2023. Solar and Wind generation increased by around 12.6% and 50.6% respectively on month-on-month basis, in December 2023.

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

Source: CEA, JMK Research

Investments/ Deals

In December 2023, a total of $1576 million was raised through debt and equity in the RE sector India. The key investments during the month were:

  • Adani Green Energy raised an investment of $1.36 billion through debt in the solar energy sector from anchor investors including BNP Paribas, Cooperative Rabobank U.A., DBS Bank Ltd, Intesa Sanpaolo S.p.A, MUFG Bank Ltd., Societe Generale, Standard Chartered Bank and Sumitomo Mitsui Banking Corp.
  • Sterling and Wilson Renewable Energy announced the completion of a fund raise of $180 million through Qualified Institutions placement (QIP) route.
  • KPI Green energy raised $36.08 million through debt from investors like Quant Mutual Fund, JM Financial Mutual Fund, SBI General Insurance, Societe Generale, Copthall Mauritius Investment, CITI group Global Markets Mauritius, Morgan Stanley Asia (Singapore), East Bridge Capital, Bengal Finance and Investment and Vikasa India. Sterling and Wilson secured an investment of INR 1500 crore through equity.

Table 4.1: Investment and deal in December 2023

Company Name

Deal Type

Sector

Investor

Deal value

Adani Green Energy

Debt

Solar

BNP Paribas, Coöperatieve Rabobank U.A., DBS Bank Ltd, Intesa Sanpaolo S.p.A., MUFG Bank, Ltd., Societe Generale, Standard Chartered Bank and Sumitomo Mitsui Banking Corp

$1.36 billion

Sterling & Wilson

Equity

Renewables

$180 million

KPI Green Energy

Equity

Renewables

Quant Mutual Fund, JM Financial Mutual Fund, SBI General Insurance, Societe Generale, Copthall Mauritius Investment, CITI group Global Markets Mauritius, Morgan Stanley Asia (Singapore), East Bridge Capital, Bengal Finance and Investment and Vikasa India

$36.08 million

Source: Industry news articles, JMK Research

Other important announcements that were made during the month were:

  • Sembcorp Industries has entered into two separate agreements to acquire 428 MW of wind power assets in China and India at INR 1,247 crore. Sembcorp has a total renewable energy portfolio of 3.7 GW in India with 2.25 GW of wind and 1.45 GW of solar assets.
  • France’s Technique Solaire Group announced that it has finalized the acquisition of five ground-mounted solar farms with a combined capacity of 135.4 MWp in Karnataka. The acquisition has enabled Technique Solaire to raise its capacity in India to 210 MWp. The French IPP has set the target to reach over 350 MWp of operational capacity in the country by the end of 2025.
  • Inox Wind Energy Ltd has declared infusion of INR 800 crore into Inox Wind Ltd (IWL), its subsidiary company, which will use the amount to clear a portion of its outstanding debt. For this cash consideration of INR 800 crore, Inox Wind has allocated 0.01% non-convertible redeemable preference shares of INR 10 each to IWEL.
  • Adani Group’s solar-energy unit has unveiled an initial blueprint for repaying its $750 million bond due next year. The bond’s underwriters will provide a funding letter for $675 million and the company will use equity transaction proceeds to build up the repayment sum.
    • Adani Green Energy plans to raise about $410 million via new bond issuance to refinance a dollar note maturing in a year. The company’s ESG compendium highlights a significant commitment to decarbonization, including investments totaling $100 billion over the next decade for energy transition efforts.
    • Adani Green Energy Ltd (AGEL) has announced the completion of the transfer of 1,050 MW renewable portfolio to a joint venture with TotalEnergies. As part of the JV, TotalEnergies bought a 50% stake in AGEL’s 1,050 MW portfolio for $300 million.
    • Adani is also planning to inject $2 billion into the group’s renewable energy unit via debt.
  • IREDA has floated a retail division for providing loans under PM-KUSUM scheme, Rooftop Solar, and other Business-to-Consumers(B2C). IREDA’s retail division has already sanctioned its first loan of INR 58 crores under KUSUM-B.
    • IREDA plans to raise another roughly 10 billion rupees ($120 million) shortly by selling 10-year bonds.
  • Alpex Solar, has announced the filing of its Draft Red Herring Prospectus (DRHP) with NSE Emerge (National Stock Exchange of India’s new initiative for small and medium-sized enterprises and startup companies from India). The offering comprises a fresh issuance of 64,80,000 equity shares with a face value of INR 10 for each share. The company is planning to raise funds to expand their capacity from 450 MW to 1.2 GW in the existing manufacturing unit.
  • Mahindra & Mahindra Group has finalized the sale of its entire 60.1% stake in solar development entity Emergent Solren to Sustainable Energy Infra Trust (SEIT).
  • State Bank of India (SBI) collaborates with KfW (German Development Bank) for a credit worth Euro 70 million to support Solar PV projects in India. The signing ceremony will take place at the IFSC Gift City Branch in Ahmedabad, as announced by SBI through a filing to stock exchanges.
  • ADB has signed an agreement with the Indian government to deliver a $200 million loan to improve the quality, efficiency, and reliability of power supply in the state of Uttarakhand. The ADB funding for the project will strengthen the power system infrastructure and help Uttarakhand in achieving its goal of providing 24×7 power to its residents.
  • BluPine Energy has successfully achieved financial closure for its 120 MW solar project in Gujarat, securing green loan financing through Standard Chartered. The company secured the project via Gujarat Urja Vikas Nigam Ltd (GUVNL). The total investment for this venture amounts to INR 665 crore.
  • Ambuja Cements Ltd, part of the diversified Adani Group, plans investment in 750 MW of new renewable power generation capacity in Gujarat (600 MW solar and 150 MW wind) and a 250 MW solar power project in Rajasthan as it pursues cost reduction and environment sustainability across its cement manufacturing operations.
  • Vikram Solar Ltd has signed a retainer letter with the US International Development Finance Corporation (DFC) for $200 million in funding for its 3 GW cell and module manufacturing plant at Gangaikondan in Tamil Nadu.

GTAM Traded volume

The IEX traded a total of 15 MUs in GTAM in December 2023, which is 46.6% higher than the volume traded in November 2023. The average trade price in IEX-GTAM for December 2023 was INR 6.08/kWh. This is about 1.9% lesser than the previous month’s price.

Figure 5.1: GTAM Traded volume and Price Trend

Source: IEX, JMK Research

Key Market Updates

Green Hydrogen

Government plans long-term exemption for green hydrogen projects from its list of authorized manufacturers for solar panels

The Ministry of New and Renewable Energy (MNRE) has proposed an exemption for green hydrogen developers from adhering to its list of authorized manufacturers to enable them to import solar PV modules and wind turbine models from China. Additionally, MNRE also proposed an exemption on duties and taxes up till 2035 on equipment imports for setting up export-oriented green hydrogen projects.

Adani Power to reduce CO2 emission by using 20% of Green ammonia in Thermal Project

Adani Power has announced the use of green ammonia in conjunction with conventional coal to operate the 330 MW boiler at its Mundra Plant in Gujarat. The quantum of green ammonia would be 20% of the total fuel requirement.

Adani Total Gas launches green hydrogen blending pilot in Ahmedabad

Adani Total Gas Ltd (ATGL), an energy and city gas distribution company, co-promoted by Adani Group and TotalEnergies, has initiated a green hydrogen blending pilot project in Gujarat. ATGL stated it will employ the latest technologies to blend green hydrogen (GH2) with natural gas for over 4,000 residential and commercial customers in Ahmedabad. GH2 will be produced using electrolysis of water with renewable power. The project is expected to be commissioned by June 2025.

Kerala allocates over INR 12,490 crore for green transport corridor and phase-I green hydrogen valley

Kerala has allocated over Rs 12,400 crore for the green transport corridor and Rs 90 for phase-I Green Hydrogen Valley. The allocated budget of Rs 90 crore will be used for setting up three hydrogen valley platforms and distributed among the entire hydrogen value chain which includes production, distribution, and transportation.

Larger green hydrogen plants to be constructed near ports in India

The government said that the majority of Green Hydrogen plants in India are estimated to be established near port locations. In such cases, desalinized seawater could also be used for green hydrogen production. The production of 1 kg of green hydrogen requires approximately 10 litres of demineralized water. Consequently, the demineralized water requirement for the annual production of 5 million metric tons (mmt) of green hydrogen will be about 50 million cubic meters (MCM) per annum.

Sadhana Nitro plans to set up a Green Hydrogen Plant for self-consumption

Sadhana Nitro, a chemical Manufacturer plans to install 15-20 MW of green hydrogen plant for self-consumption for its manufacturing facilities. The company has approved INR 49.95 crore to develop a 15-20 MW green hydrogen facility. It will acquire 126 acres of land, where solar and wind power will be used for the production of green hydrogen.

Essar invests INR 30,000 crore for Green Hydrogen Project in Gujarat

Essar Group has partnered with the Gujarat Government to establish a 1 GW Green Hydrogen Project with an investment of INR 30,000 crore. Essar outlines a $3.6 billion investment for the development of various low-carbon energy transition projects in the next five years. $2.4 billion is earmarked for Stanlow in the UK, while $1.2 billion will be allocated to projects in India.

ONGC aims to build 2MMTPA Green Ammonia capacity by 2035

Oil and Natural Gas Company plans to invest about INR 80,000 crore to INR 85,000 crore for two projects of one million metric tonnes per annum (mmtpa) each.

Indian Government spent INR 11 lakhs under the National Green Hydrogen Mission against INR 100 crore provision in FY 2024

The Green Hydrogen Mission, approved by the Union Cabinet on January 4, 2023, with an INR 19,744 crore outlay from 2023-24 to 2029-30, has been implemented by MNRE. The Government has spent INR 11 lakh under the National Green Hydrogen Mission till date, against the revised estimates of INR 100 crore for FY 2024.

Sembcorp inks deal with Japanese firms to export green ammonia from India

Sembcorp Industries said its green hydrogen unit had partnered with two Japanese firms Sojitz Corp and energy major Kyushu Electric Power to supply green ammonia produced in India to Japan. The partnership will support the (Japanese) government’s goal to achieve net zero by 2050.

Torrent Power incorporates wholly-owned subsidiary Torrent Green Hydrogen

Torrent Power announced the incorporation of its wholly owned subsidiary Torrent Green Hydrogen Private Limited. Torrent Green Hydrogen Private Limited (TGHPL) will deal with the business of manufacture, assemble, purchase, purify, store, transport, experiment with, the supply, trade and generally deal in hydrogen, its byproducts and/or its derivatives like ammonia, chemicals, compressed natural gas and mineral substances.

Energy Storage

Battery prices drop by 14% in the year 2023

Lithium-ion batteries the average price of battery packs has fallen this year to $139/kWh, or 14% less than the average of $161/kWh in 2022. As for the future, BNEF expects prices to closely follow the trajectory of raw material prices and pack costs will fall to $133/kWh in 2023 to $100/kWh.

Pumped Hydro Storage Projects with a capacity 55,085 MW under survey

The government stated that currently 43 Pumped Hydro Storage (PSPs) are under survey investigation with an aggregate installed capacity of 55,085 MW. These included projects situated in states like Uttarakhand (Tehri Dam), Tamil Nadu (Kundah), Andhra Pradesh (Pinnapuram) and Maharashtra (Koyna). The projects include Andhra Pradesh(17.1GW), Maharashtra(15.4GW), Jharkhand (1.50 GW), Odisha (1.42 GW), Rajasthan (5.56 GW), Uttar Pradesh (5.94 GW), Madhya Pradesh (3.245 GW), Karnataka (3.9 GW) and Tamil Nadu (1 GW). Under the revised guidelines, the timeline for concurrence of the DPR of other PSPs has been reduced from 125 days to 90 days while the DPR for Integrated Renewable Energy Projects that contain other RE sources such as wind energy, and solar energy has been reduced to 50 days.

Ministry will allow 85% of power from VGF-funded BESS projects to Discoms

The Union Minister for Power and New & Renewable Energy has informed that the Government has approved the scheme for Viability Gap Funding (VGF) for development of Battery Energy Storage Systems (BESS) with capacity of 4,000 megawatts hours (MWh). Under the scheme, VGF to the extent of up to 40% of capital cost for BESS will be provided by the Central Government. Public and private sector entities will be selected through a competitive bidding process. The projects under the scheme will be approved over a period of 3 years (2023-24 to 2025-26). Under the scheme, at least 85% of the power from VGF-funded BESS projects will be first offered to Discoms before making it available for others.

India joins Battery Energy Storage Systems Consortium for RE integration

India became a member of the Battery Energy Storage Systems (BESS) Consortium, an initiative led by The Global Leadership Council (GLC) of the Global Energy Alliance for People and Planet (GEAPP). IndiGrid, a power sector infrastructure investment trust, was awarded its first BESS project to design, supply, test, install, commission, operate, and maintain a 20 MW/40 MWh in Delhi.

1.3 million MMT of carbon emissions can be reduced each year with 4000MWh Battery Energy Storage System

The development of a 4,000 MWh Battery Energy Storage System (BESS) is expected to reduce carbon emissions by 1.3 million metric tons (MMT) per year. The minister informed that under the viability gap fund(VGF), projects will be approved over three years from 2023-24 to 2025-26, with the disbursement of funds extending until 2030-31 across five tranches. The anticipated cost for the BESS system ranges between INR 2.40 to INR 2.20 Crore/MWh for the development of 4,000 MWh capacity, totalling a capital cost of INR 9,400 Crores, supported by a budget of INR3,760 crore.

Other Market Updates

Ministry of Power and Bureau of Energy Efficiency (BEE) sets a roadmap for 2030

The Ministry of power and the Bureau of Energy Efficiency (BEE) announced a revision to the Energy Conservation Act of 2001.  The organizations have set ambitious renewable energy consumption benchmarks for the specified consumer. From April 2024, energy derived from Wind Power Projects initiated after March 31, 2024, along with energy from Hydro Power Projects, including Pump Storage and Small Hydro Projects post this date, will be the focal point. Moreover, the Central Government could potentially approve energy sourcing from hydro-renewable projects abroad.

Radiance Renewables aims for ambitious funding of INR 1,250 crores to expand capacity

Radiance Renewables backed by Eversource Capital, is ramping up for a substantial fundraising initiative with plans to raise approximately INR 1,250 crore (about USD 150 million) by June 2024. This strategic movement aligns with the company’s vision to significantly amplify its capacity from the current 500 MW to an impressive 2 GW within the next three years.

India gears up to achieve 50% of power installed capacity milestone through non-conventional sources

India is on its way to achieving 50% of its installed capacity from non-fossil sources by 2030. The country installed 186.49 GW of capacity from non-fossil sources which is 43.82% of its total installed capacity. Out of the total capacity, 178.98 GW is RE, and 7.48 GW is nuclear power. Additionally,114.08 MW is under implementation, and 55.13 GW capacity is under tendering. The share of non-fossil fuel electricity has increased from 32.54% in March 2014 to 43.82% in October 2023.

REC aims for 30% AUM in renewable energy sector

REC is aiming for a bigger share of the INR 3 lakh crore opportunity in the renewable energy segment. The company plans to allocate 30% of its Asset Under Management (AUM) to this sector over the next few years. The renewable energy capacity is currently at 180 GW, and it could expand to 500 GW over the next seven years. At the beginning of the current year, REC’s AUM was around INR 4,35,000 crore after a year-on-year growth of approximately 13%. However, the first half of the year witnessed a remarkable surge, with AUM growing by 20%.

India’s RE capacity is estimated to reach 170 GW by 2025

According to the ICRA agency, India’s renewable energy (RE) capacity is estimated to reach 170 GW by March 2025, up from the level of 132 GW as of October 2023. The reason behind the capacity additions is likely to be supported by the significant improvement in the tendering activity in FY 2024, with over 16 GW projects bid out so far and another 17 GW bids underway by the central nodal agencies.

ONGC commits invest up to INR 35000 crore for 5 GW of solar and wind capacity by 2030

ONGC is planning to invest up to INR 35000 to develop 5 GW of Wind and solar power capacity by 2030. ONGC plans to have 10 GW of RE by 2030 which is exploring different options such as pumped storage with 2 GW capacity by 2030, offshore wind with 1 GW capacity by 2035, and solar and onshore wind capacity of about 5 GW by 2030.

Gujarat accounts for 74% of the solar rooftop installations under the Phase II of Solar Rooftop Scheme

With total installed capacity of 3,174 megawatts (MW), Gujarat accounts for 31% of India’s total rooftop solar installation 10,406 MW. Gujarat was the biggest beneficiary of the Phase II of Solar Rooftop Scheme, where the installation got government support and subsidy, with 74% of such installations in the state taking place under the scheme. Between 2019 and November 2023, Gujarat installed 1,956 MW capacity, which is 61 % of the total capacity.

Comparing on m-o-m basis, price for global mono PERC modules have decreased by 3.1% in December 2023.

Figure 7.1: Solar Modules Price trends

Source: PVInfoLink, JMK Research

JMK Research carried out price survey from domestic suppliers for December 2023 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 December price of mono PERC 500 Wp modules was INR 20.6/Wp, down by 1.9% as compared to the price of modules in November.
  • The price for Polycrystalline 330 Wp modules was INR 19.9/Wp, which is about 1.97% less than the previous month’s price.
  • The price for Bifacial modules was INR 21.54/Wp in December, which is around 2.5% less than the price of modules in November.

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.

Policies and Regulations

Central Level Regulatory Updates

Policy Name

Issuing Agency

Date of Issue

MNRE issues an order for extension of compliance to Quality Control Order 2017 standards

MNRE

27th-Dec-2023

Central Government issues amendments to the Carbon Credit Trading Scheme, 2023

MoP

19th-Dec-2023

Ministry of External Affairs issued the Offshore wind energy lease rules 2023

Ministry of External Affairs

19th-Dec-2023

Solar rooftop up to 10kW requires no testing for technical – MoP

MoP

13th-Dec-2023

MNRE issues National Repowering & Life Extension Policy for Wind Power Projects-2023

MNRE

7th-Dec-2023

State Level Regulatory Updates

Policy Name

Issuing Agency

Date of Issue

MERC disallows Cross subsidy Surcharge for open access consumers

MERC

27th-Dec-2023

RERC issues an order giving relief to UltraTech Cement Limited towards CSS and AS

RERC

14th-Dec-2023

MERC rejected the MEDA petition to meet 50% RPO Procurement within the state

MERC

14th-Dec-2023

MPERC rejects the petition for imposition of Grid Support Charges on Rooftop Solar Systems consumers

MPERC

13th-Dec-2023

RERC issues Terms and Conditions for Tariff determination from Renewable Energy Sources (Second Amendment) Regulations, 2023

RERC

8th-Dec-2023

Puducherry issues guidelines to install rooftop solar and ground-mounted solar projects

Puducherry Government

8th-Dec-2023

OERC determines generic tariff for Renewable Power Projects in Odisha from FY 2023-24 to FY 2025-26

OERC

4th-Dec-2023

Arunachal Pradesh Electricity Regulatory Commission (APERC) issues draft Green Energy Open Access Regulations

APERC

1st-Dec-2023

RERC approved procurement of 105.4 MW power from Biomass Plants to meet RPO compliance

RERC

24th-Nov-2023

RERC approves levelized tariff of INR 3.55/kWh under Component-C of PM KUSUM scheme

RERC

21st-Nov-2023

UPERC has allowed net metering for public and private consumers

UPERC

17th-Nov-2023

TNERC exempts 50% of rooftop solar network charges for MSMEs in Tamil Nadu

TNERC

17th-Nov-2023

About Us

JMK Research & Analytics is a specialist consultancy firm providing research and advisory services to Indian and International clients across solar, wind and e-mobility segments.

Based on our in-depth sector experience, strong industry network, we provide key insights and detailed industry information which helps clients develop successful business models and market strategies.

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