Monthly RE Update – May 2024

Monthly RE Update – May 2024

Tenders Issued

  • New RFS Issued: 13222 MW of RE tenders issued in May 2024
  • RUVNL floated a Solar – 8000 MW tender in Rajasthan
  • NTPC and NHPC invited bids of 1200 MW each for  Hybrid and Solar tenders respectively.
  • SECI issued Solar 1200 MW and Wind – 500 MW tenders across India
  • SJVN floated a tender to manufacture and supply 376.60 MWp domestic modules for the GUVNL(Phase-XIV) solar power project in Gujarat.

New RE tenders issued in May 2024

Source: JMK Research

Tender Name

Technology

Tender Scope

Capacity (MW)

Minimum CUF

Commissioning timeline from PPA signing (months)

Bid Submission Date

RUVNL, 8000 MW, Solar, Rajasthan, May 2024

Utility Scale Solar

Project Development

8000

17%

30

24th-Jun-2024

NTPC, 1200 MW, RE Power (FDRE), May 2024

Hybrid

Project Development

1200

23rd-Jul-2024

NHPC, 1200 MW, ISTS Connected Solar, PAN India, May 2024

Utility Scale Solar

Project Development

1200

21%

24

29th-Jun-2024

SECI 1200 MW, ISTS (XVI), Solar, PAN India, May 2024

Utility Scale Solar

Project Development

1200

17%

24

17th-Jul-2024

SECI,500 MW, ISTS (Tranche XVII), Wind, India, May 2024

Wind

Project Development

500

22%

24

8th-Jul-2024

SJVN, 376.6 MWp, Solar, GUVNL(Phase XIV), Gujarat, May 2024

Solar Module Manufacturing


PV Module Manufacturing


376.60 MWp

11th-Jun-2024

NTPC, 225 MW, Solar, Khavda (Stage III) (EPC), Gujarat,May 2024

Solar

EPC

225

4th-Jul-2024

NHPC, 200 MW, Solar (EPC), Gujarat, May 2024

Utility Scale Solar

EPC

200

12

11th-Jun-2024

RECPDCL 200 MW, Solar (EPC), Uttar Pradesh, May 2024

Utility Scale Solar

EPC

200

21%

18

6th-Jun-2024

Travancore Cochin Chemicals, 22 MW, Solar, Kerala, May 2024

Utility Scale Solar

Project Development

22

19th-Jun-2024

Source: JMK Research

Apart from the tenders issued this month, THDC India has invited bids for the development of 600 MW to 2000 MW on/off stream pumped storage projects on a turnkey basis with operation and maintenance for 15 years in various states of India. Bidders must pay an earnest money deposit of INR 100 million.

Auction Completed

In May 2024,  NTPC’s 1500 MW – Solar Capacity was auctioned and allotted to various RE developers. In addition, NTPC concluded the auction of its supply of Solar PV Modules for 1255 MW Khavda Solar Project in Gujarat.

Figure 1.2: Winners in the latest RE and Manufacturing tenders

Source: JMK Research

Tender NameTechnologyCapacity Tendered (MW)Capacity Allotted (MW)Winner Details
NTPC,1500 MW, Solar(ISTS-III), Pan India, Feb 2024Utility Scale Solar15001500Apraava Energy – 50 MW (INR 2.68/kWh)

Avaada Energy – 750 MW (INR 2.69/kWh)

JSW Energy – 400 MW (INR 2.69/kWh)

Renew – 300 MW (INR 2.69/kWh)
NTPC,1584.6 MWp, Bifacial Solar, Pan India, May 2024Domestic Manufacturing (DCR)1584.61584.6Emmvee- 795.4 MW

Vikram Solar- 397.7 MW

Renew- 391.5 MW

Source: JMK Research

Installed Capacity

From January to April 2024, 9,319 MW solar capacity and 1,426 MW of wind capacity were added to the country, taking the cumulative RE capacity to 191.67 GW.

In April 2024, a combined total of  1099 MW of solar and wind capacity was added.

Figure 2.1: RE installations in April 2024

Source: MNRE, JMK Research

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

State wise utility scale solar and wind installed capacity in April 2024

In April 2024, Gujarat added the highest Utility-Scale Solar & Rooftop Solar capacities, with about 197 MW and 50 MW, respectively.

In terms of wind installations, Karnataka installed the maximum capacity of 205 MW followed by Gujarat with 61 MW.

Figure 2.2: State wise utility scale solar and wind installed capacity in April 2024

Source: MNRE, JMK Research

Projects Commissioned

Table 2.1: List of key solar projects commissioned in May 2024

Developer NameTechnologyCapacityState
Amplus SolarSolar73.4 MWUttar Pradesh
NTPCSolar57 MWRajasthan
Avaada EnergySolar50 MWBihar
Orb EnergySolar35 MWKarnataka

Source: JMK Research

Key announcements that were made during the month were:

  • Tata Power Renewable Energy Limited (TRPEL) has signed a PPA with SJVN for a 460 MW FDRE project comprising solar, wind, and battery storage to deliver continuous power during peak demand. It also boosts the RPO (Renewable Purchase Obligation) and Energy Storage Obligations (ESO) targets of Discoms and is set to produce 3000 MUs of power annually and offsets 2.2 billion Kg of CO2 each year.
  • Waaree Energies Ltd, has secured a Letter of Intent to supply 400 MW for bifacial PV modules from Gujarat Industries Power Co. Ltd (GIPCL) for the 2375 MW RE park near Great Rann of Kutch. The project scope includes manufacturing, testing, packing, and transportation of PV modules along with spares of 2 MW.
  • SJVN’s 15 MW Nangal Pond floating solar project in Himachal Pradesh has suffered a setback due to weather-related damage to already installed modules. SJVN won the project bid with a competitive offer of INR 3.26/kW and had aimed to commission the project by August, but the setback may delay this timeline.
  • KPI Green Energy secures orders worth 74.3 MW solar projects, out of which 27 MW capacity (wind -solar hybrid) includes 20 MW of solar power, 30 MW capacity includes KPark Sunbeat Private Limited, and 17.3 MW capacity includes Sun Drops Energia Private Limited, subsidiaries of KPI Green under captive power producer.
  • SunSource Energy has successfully commissioned a solar power project for CtrlS. The project is located in Gursarai, Jhansi district of Uttar Pradesh to provide clean power to CtrlS’s Noida Data Center. Generating approximately 100 GWh of clean energy, the project is expected to offset over 94,640 tonnes of CO2 emissions throughout its technical lifetime and aids CtrlS in fulfilling 60% of its annual energy requirement through renewable sources.
  • Gujarat Toolroom announced its acquisition of a 65-acre land parcel in Gujarat for the development of a green energy project, with an investment of INR 572 crore. The project is expected to be completed between 3 to 5 years and will establish a hybrid power plant contributing 97.5 MW of clean electricity to the grid. Of the acquired land, 60 acres will be dedicated to solar panel installation, while the rest will accommodate essential power management infrastructure, including transformer stations and high-voltage line terminals. The project’s layout plan also includes provisions for 15 on-shore wind turbines, each expected to generate 2.5 MW/hour.
  • Juniper Green Energy has signed a PPA with SJVN securing a 320 MW firm and dispatchable renewable energy (FDRE) contract. This deal paves the way for the development of nearly 1 GW of capacity across Gujarat and Rajasthan. The 25-year PPA, achieved at a tariff of INR 4.38 with state utility SJVN also increases Juniper Green Energy’s operational and under-construction capacity to 2.5 GW.
  • Larsen & Toubro’s Power Transmission & Distribution (PT&D)  secures multiple orders both in India and abroad valued between INR 5,000 crore to INR 10,000 crore. The projects include two floating solar plants in India with a combined capacity exceeding 150 MWac alongside a ground mounted Solar PV capacity of 120 MWac. Additionally, PT&D has secured contracts for 765 kV transmission lines and a gas-insulated substation in Rajasthan and Karnataka, facilitating the integration and evacuation of renewable energy to various load centers across the country.
  • ReNew has signed 5 significant PPAs of 2.2 GW capacity to increase its portfolio to 15.6 GW. Additionally, ReNew has secured Letters of Award for an additional 5.8 GW of renewable energy capacity. These agreements comprise 3 solar PPAs totaling 800 MW with NTPC Limited, Damodar Valley Corporation, and SECI, at a weighted average tariff of INR 2.59 per kWh, along with a 1 GW Firm and Dispatchable Renewable Energy (FDRE) PPA with SJVN Limited at a tariff of INR 4.39 per kWh. Furthermore, the company has added a 438 MW PPA with a multinational commercial and industrial customer. The combined projects will involve the development of 1,500 MW of solar and 688 MW of wind projects, expected to be commissioned within the next 24 months.
  • TANGEDCO has signed a PPA with SECI for procuring 500 MW, with INR 2.72 per unit for 200 MW and INR 2.73 per unit for 300 MW of solar power to meet its RPO. The 500 MW is set to be available within 18 months after PPA is signed.
  • The Bhilai Steel Plant (BSP) operated by Steel Authority of India Limited (SAIL), is set to establish Chhattisgarh’s first floating solar power plant to supplement the plant’s power requirements. The floating solar plant is expected to be installed on the water reservoir located within the BSP premises with an estimated capacity of 5 MW and is set to produce 34.26 million units annually. The deadline is set for next year and is executed by NTPC-SAIL Power Supply Company Limited. The EPC contract is expected to be awarded shortly.
  • Vikram Solar has secured an order to supply 397.7 MWp solar modules for NTPC’s Khavda Solar Project in Gujarat. The project, expected to have a total capacity of 1,255 MW, aligns with India’s Domestic Content Requirement (DCR) and emphasizes the promotion of domestic solar manufacturing. The order received was for bifacial DCR modules with a minimum capacity of 540 Wp.
  • Onix Trans Stellar has secured 187 MW of solar projects across 60 locations in Gujarat under the PM KUSUM Scheme. The projects, awarded through auctions conducted by the Government of Gujarat, will have PPA with Paschim Gujarat Vij Co. Ltd. These feeder-level solarization projects, tendered under Component C of the PM KUSUM Scheme, are expected to become operational by the end of December this year.
  • Sineng Electric has supplied 2,887 units of its 275 kW string inverters (SP-275K-INH) for a 641 MW solar project in Gujarat, India, developed and owned by Adani. This project is part of the 30 GW Khavda Solar Park, the world’s largest renewable energy installation which will power 16.1 million Indian homes.The 641 MW project is expected to generate around 1,900,000 MWh of clean energy annually offsetting approximately 913,428 tons of CO2 emissions per year equivalent to planting 4,567,124 trees.
  • Madhav Infra Projects Ltd has secured a letter of award to develop a 15 MW floating solar PV project at Maroda Reservoir-I for NTPC-SAIL Power Co. Ltd (NSPCL) in Bhilai, Chhattisgarh. The project, valued at INR 90.35 crore, encompasses design, engineering, procurement, construction, installation, commissioning, and operation and maintenance. The EPC work is expected to be completed within 12 months.
  • Paschim Gujarat Vij Company Ltd. (PGVCL) has awarded 479 MW of solar projects to multiple developers as part of the PM KUSUM scheme, focusing on feeder-level solarization to enhance renewable energy infrastructure.Tendered under Component C of PM KUSUM, these projects are set to be operational across 170 locations in Gujarat by the end of 2024. Onix Renewable secures the largest portion with 187.4 MW across 60 locations, followed by Indian Infrastructure and Project India covering 47.5 MW across 12 locations. Quoted tariffs range from INR 2.87/kWh to INR 3.00/kWh, ensuring competitive pricing, with successful power purchase agreements signed with PGVCL.
  • Havells India Ltd plans to expand its solar power capacity to approximately 16 MW by installing a 4.6 MW solar plant at its Alwar facility in the upcoming fiscal year, aiming to meet 67% of its total electricity demand through renewable energy and significantly reduce Scope 2 emissions. Currently, the company has a solar power generation capacity of 11.26 MW, covering about 8.4% of its electricity consumption and offsetting 7,971 tons of CO2 emissions.
  • Oriano Clean Energy has secured an EPC contract for a 50 MW AC/75 MWp solar power project from a leading Indian developer, encompassing the solar plant’s balance-of-systems (BOS) with a 132 KV transmission line and switchyard, with a commissioning timeline of 7 months. Earlier this year, Oriano commissioned 155 MWp of captive open access capacity for Hira Group in Chhattisgarh, involving three projects connected to a 132 KV infrastructure.
  • Suzlon Group has secured a 551.25 MW wind power project order from the Aditya Birla Group, to be executed across two sites in Rajasthan and Gujarat. The project will involve the development of 368.55 MW in the Barmer district of Rajasthan by Suzlon and 182.70 MW in the Bhuj district of Gujarat. The generated power will be used for captive consumption within Aditya Birla Group companies.
    • The company has announced that it has secured orders to develop 402 MW wind energy projects from Juniper Green Energy, involving the installation of 134 wind turbine generators (WTGs) with a Hybrid Lattice Tubular (HLT) tower and a 3 MW capacity at the Fatehgarh site in Rajasthan.

Monthly RE Generation

In May 2024, Renewable energy sources generated 20,673 MU, which is 27.4% less than the RE generation in April 2024. Solar and Wind energy generation increased by 6% and 73.8% respectively on a month-on-month basis in May 2024.

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

Source: CEA, JMK Research

Investments/ Deals

In May 2024, a total of about  $830 million was raised in the RE sector in India. The key investments during the month were:

  • Adani Green Energy has secured $400 million green loan for its under-construction solar projects in Gujarat and Rajasthan. The lenders include DBS Bank, Intesa Sanpaolo, MUFG Bank, Rabobank, and Sumitomo Mitsui Banking.
  • Avaada Energy secured a $142.5 million loan from SBI for a solar project in Gujarat.
  • Enfinity Global Inc has secured $135 million in financing from the Canada Pension Plan Investment Board (CPP Investments) for the development of 1.2 GW of solar and wind projects in India.

Table 4.1: Investment and deal in May 2024

Company NameDeal TypeSectorInvestorAsset AcquiredStake AcquiredDeal value
Adani Green EnergyDebtSolarCooperative Rabobank, DBS Bank, Intesa Sanpaolo, MUFG Bank, and Sumitomo Mitsui Banking$400 million
Avaada EnergyDebtSolarSBI$142.5 million
Enfinity GlobalSolar and WindCanada Pension Plan Investment Board$135 million
Blupine EnergyDebtSolarHDFC Bank$50.1 million
Avaada EnergyDebtSolarAseem Infrastructure Finance Ltd$38 million
Ampin EnergyEquityRenewableresponsAbility$35 million
Reliance Industries (REC Solar)AcquisitionRenewableElkem ASA100%$22 million
Jakson GreenEquityRenewableHSBC India$7.2 million
FortumAcquisitionSolarGentari Renewables India18543.75%

Source: Industry news articles, JMK Research

Note: The remaining stake of Fortum of 56.25% have been acquired by UK Climate Investments Lakeside Limited and a fund managed by Evli Fund Management Ltd

Other important announcements that were made during the month were:

  • Neyveli Lignite Corporation (NLC) is set to make an investment of $3.4 billion in expanding renewable energy capacity by 394% to 7GW. This investment forms a significant portion of NLC’s overall $11 billion plan to bolster core mining and thermal generation capacities by 2030.
  • Mahindra Susten along with its partner Ontario Teachers’ Pension Plan, is planning to invest INR 21,000 crore over the next five years to develop a renewable energy asset portfolio of nearly 5.5 GW, including storage and round-the-clock (RTC) power projects.
  • SAEL Ltd. is planning its maiden dollar bond sale targeting up to $500 million and aims to launch solar plant constructions by the end of June. Proceeds from the bond sale will be utilized for business expansion and debt refinancing.  SAEL is currently in discussions with a group of foreign banks to arrange the bond sale, seeking a tenor in the range of 5-7 years.
  • REC is planning to raise funds from overseas through a loan of $1 billion from the Asian Development Bank (ADB) and Export-Import Bank of Korea (Korea Eximbank) alongside a term loan of $500 million from KfW development bank. The company aims to reduce its cost of funds by 12 basis points to around 7% in FY25 and is targeting a total fundraising of $8 billion including $2 billion via green bonds followed by $6 billion subsequently. Additionally, REC plans to infuse INR 500 crore into its newly approved subsidiary in GIFT city, Gujarat, with the potential to increase it up to INR 5,000 crore aiming to finance green hydrogen and green ammonia projects.
  • REC Power Development & Consultancy Ltd (RECPDCL) is seeking bids for the acquisition of 200 MW operational solar, wind, and hybrid projects without storage. Each bidder may submit bids for up to two projects. RECPDCL intends to acquire 100% shareholding in the project.
  • Adani Enterprises is planning to spend INR 80,000 crore across businesses in FY 2024-25. Adani New Industries Limited (ANIL) aims to establish factories capable of producing 10 GW of solar modules and 3 GW of wind turbines, with further expansion plans for green hydrogen production.
    • In addition, Adani Energy Solutions plans to raise INR 12,500 crore through a Qualified Institutional Placement (QIP) or other permissible modes, as approved by the company’s Board of Directors. The issuance will involve equity shares with a face value of INR 10 each and is subject to necessary approvals.
  • Radiance plans to raise $150 million in equity for ambitious expansion to 2 GW over the next 3 years. The funds will be used for securing land and connectivity for new projects, with 800 MW of land already secured and provisions made for an additional 1.2 GW. Radiance aims to diversify its energy portfolio by integrating wind energy, targeting 20-35% of its portfolio to come from wind. An innovative move by Radiance involves using robotic cleaning for solar modules, saving water and enabling more frequent cleaning cycles.
  • Societe Generale has committed up to $1 billion in financing for ReNew Global’s energy transition projects over the next 3 years, supporting the Indian company’s expansion in green power and decarbonization both domestically and internationally. The MoU between the two entities encompasses collaboration on solar, wind, complex renewables, green hydrogen, energy storage, and solar module manufacturing.
  • Jakson Green announced a significant investment of INR 3,500 crore through private equity investors and non-recourse financing to develop its renewable portfolio, including solar utility projects and green hydrogen, methanol, and ethanol. 
  • InoxGFL Group is set to launch a renewable energy platform in collaboration with leading private equity players, producing over 1.5 GW of wind and solar power. Notable foreign investors such as APMoller Capital, I Squared Capital, and Actis are expected to hold a 51% stake, with the Jains holding 49%. This platform is projected to generate INR 10,000-12,000 crore in additional revenues for Inox Wind over the next 3-4 years and INR 150-200 crore in annual contracts for Inox Green.
  • KPI Green Energy announced that its board has approved a proposal to raise up to INR 1,000 crore through the issuance of shares via qualified institutional placement (QIP). The board approved raising funds through the issuance of equity shares or other equity-linked securities or convertible/exchangeable securities via QIPs in one or more tranches.
  • GP Eco Solutions India (GPES) plans to raise INR 30-35 crore through an initial public offering (IPO) on NSE Emerge for expansion in the solar power sector. Out of the raised funds, INR 12.45 crore will be for working capital and expansion, INR 7.6 crore for a new solar inverter assembly facility in Noida via subsidiary Invergy India, and the remainder for general corporate purposes. The IPO will involve selling 38.52% of GPES’s stake by promoters, leaving them with a 61.48% stake post-IPO.
  • Ircon International’s board has approved the investment of INR 88.92 crores in form of optionally convertible debentures in Ircon Renewable Power. The investment is set to be in single or multiple tranches.
  • Orient Green Power Company plans to raise up to INR 250 crore through equity shares to its existing shareholders. The equity shares, each with a face value of INR 10, are proposed to be offered for a total amount not exceeding INR 25,000 lakh (INR 250 crore). The rights issue allows existing shareholders to buy additional shares at a discount, thereby raising funds for the company without involving new investors.
  • Juniper Green Energy is in discussions with investment banks to explore the possibility of launching an initial public offering (IPO), aiming to raise approximately $200-250 million or potentially more. If successful, the funds raised from the IPO will finance the development of its portfolio of renewable energy projects.
  • IREDA is planning to raise funds of INR 24,200 crore this fiscal year through a follow-on public offer (FPO) and perpetual debt to meet future capital needs, support renewable energy projects within 4-6 months.
    • IREDA also plans to issue bonds under a new subsidiary, IREDA Global Green Energy Finance IFSC, in GIFT City, Gujarat, to secure competitive offshore funding and reduce hedging costs.
  • JSW Energy is evaluating over half a dozen deals in the renewable energy sector, targeting projects with capacities between 500 MW and 3,000-4,000 MW as financial investors seek exits. Recently, JSW raised INR 5,000 crore through a qualified institutional placement for renewable investments and plans to invest INR 15,000 crore in FY25 for ongoing and new projects. Additionally, JSW signed an MOU to build 6,200 MW of green power for JSW Steel by 2030, with a 1,000 MW PPA expected soon. The company will not pursue new greenfield thermal projects due to uncertain PPAs.
    • JSW Neo Energy and Sekura Energy are among the five bidders who have submitted non-binding offers to acquire a controlling stake in Ayana Renewable Power. Other bidders include Masdar, Sembcorp, and Macquarie. NIIF which holds 51% stake in Ayana will shortlist suitors in the coming weeks. British International Investment (formerly CDC Group) owns 32% and the Green Growth Equity fund of Eversource Capital holds 17% in Ayana. While some bidders have proposed acquiring a 51% stake others aim for a full buyout offering flexibility in deal structuring.
  • Greenko’s plea to Competition Commission of India is cleared and is set to acquire Sikkim Urja through additional shares. Sikkim Urja is a special-purpose vehicle for implementing a 1200 MW hydropower project in North Sikkim.
  • Tata Power is negotiating with lenders including the State Bank of India, IndusInd Bank, Axis Bank, and ICICI Bank to secure up to $1 billion in loans for its clean energy projects. This would be the largest local currency loan in India this year, supporting Tata Power’s $1.6 billion investment in pumped hydro storage projects in Maharashtra. The loan, which may be structured as a bilateral agreement or syndicated facility, will be disbursed in stages and priced above benchmarks like the RBI’s repo rate.
  • NTPC proposed an INR 10,000 crore initial public offering (IPO) for its green energy business, aiming to enter the primary market by FY2025. The proceeds from the IPO will be used to fund ongoing and future projects in solar, green hydrogen, and green ammonia.
  • Siemens Energy AG is selling its India wind turbine business which generates annual revenues of $700 million and is valued at $1 billion. Barclays is managing the sale, with potential buyers including Adani Renewable Energy, TPG Rise, Brookfield Energy Transition Funds, Macquarie, and Masdar.
  • Siemens Energy aims to fully integrate Siemens Gamesa and address ongoing quality and operational issues, targeting a break-even by 2026 after an anticipated 2 billion euro loss for fiscal 2024.

GTAM Traded Volume

The IEX traded a total of 47 MUs in GTAM in May 2024, which is ~3.4X higher than the volume traded in the previous month. The reason for the significant increase is the high demand for power during the summer months. The average trade price in IEX-GTAM for May 2024 was INR 8.89/kWh.

Figure 5.1: GTAM Traded volume and Price Trend

Source: IEX, JMK Research

Comparing on m-o-m basis, price for global mono PERC modules have decreased by 8.6% in May 2024.

Figure 6.1: Solar Modules Price trends

Source: PVInfoLink, JMK Research

Comparing on m-o-m basis, prices for domestic modules have decreased in May:

  • Mono PERC 500 Wp – INR 18.8/Wp (down by 5.1%).
  • Polycrystalline 330 Wp – INR 18.1/Wp (down by 5.2%).
  • Bifacial Modules – INR 18.9/Wp (down by 5.9%).

Fig 6.2: 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

Grew Energy is building 3.2 GW solar module factory in Jammu and Kashmir

  • Grew Energy is investing INR 4,500 crore in building a fully backward integrated solar module manufacturing unit in Jammu & Kashmir, aiming to produce 3.2 GW of high-efficiency modules and 2.8 GW of ingots, wafers, and cells annually.

Solex Energy invests INR 700 million to expand the Solar module production capacity

  • Solex Energy has signed an MoU with GMEE Solar and Wuxi Tide winner Industrial International Co Ltd for an 800 MW solar module capacity expansion, with an investment of INR 700 million.
  • This partnership will boost Solex Energy’s module production capacity to 1.5 GW by the end of September this year.

Tata Power Tirunelveli gears up for solar cell production from next month

  • Tata Power is gearing up for the commissioning of its 4 GW solar cell manufacturing facility in Tamil Nadu’s Tirunelveli district, expected to begin next month and reach peak production capacity within 3 months.
  • The company has already operationalized its 4 GW PV module manufacturing facility in the same location, with both facilities aimed at meeting Tata Power’s requirements for projects with domestic content requirement (DCR) obligations.

Adani begins commercial output of wafers, ingots for solar power

  • Adani Group commences commercial production of wafers and ingots for solar power cells and modules at its Gujarat factory and aims to generate 45 GW of renewable power by 2030, primarily from its $18.01 billion Khavda renewable energy park in Gujarat. Adani’s manufacturing hub in Mundra, Gujarat will see investments exceeding INR 300 billion ($3.60 billion) to expand solar cell and wind turbine capacities. The 4 GW solar cells and modules produced are exported to the U.S. and is planned to increase the capacity to 10 GW. Adani New Industries Ltd (ANIL) aims to increase wind turbine output from 1.5 GW to 5 GW by March 2027.

Green Hydrogen

Reliance Industries partners with Nel ASA for alkaline electrolysers

  • Reliance Industries Ltd has signed an agreement with Norway’s Nel ASA to source and manufacture alkaline electrolyzers for green hydrogen production as a part of Reliance’s $75 billion investment in renewable energy.
  • The agreement grants Reliance an exclusive license for Nel’s technology in India and allows global manufacturing for captive purposes.

Asahi India Glass signs hydrogen off-take with INOX Air products for 20 years

  • Asahi India Glass (AIS) and INOX Air Products (INOXAP) signed a 20-year green hydrogen offtake agreement, with INOXAP supplying green hydrogen to AIS’s float glass facility in Chittorgarh, Rajasthan.
  • INOXAP’s plant will generate up to 190 tons of green hydrogen annually through solar-powered electrolysis, offsetting around 1,250 MT of carbon emissions per year and 25,000 MT over the agreement’s duration.
  • AIS will invest in the solar plant to power green hydrogen production, with the initial phase supplying 95 TPA of green hydrogen to AIS.

Larsen & Toubro to commission electrolyzer factory this fiscal

  • Larsen & Toubro (L&T) is set to commission its giga-scale electrolyzer factory in Gujarat within the next 9 months.
  • The factory which will produce electrolyzers up to 4 MW in size is established under the subsidiary L&T Electrolysers Ltd and focuses on manufacturing pressurized alkaline electrolyzers using technology from McPhy Energy, France.The project has an approved investment of around INR 500 crore and is located at the A M Naik Heavy Engineering Complex in Hazira, Gujarat.

GAIL (India) Ltd. Commissions India’s First Green Hydrogen Plant

  • GAIL (India) Ltd has commissioned its first green hydrogen plant at Vijaipur, Madhya Pradesh, marking its entry into alternate energy.
  • The 10 MW proton exchange membrane electrolyzer will produce approximately 4.3 tonnes of green hydrogen daily with 99.999% purity using solar energy.
  • GAIL is also developing 20 MW solar power plants at Vijaipur to support green hydrogen production.

Nayara announces foray into ethanol production with investment of INR 600 crore

  • Nayara Energy has announced a INR 600 crore investment to establish two ethanol manufacturing plants in Andhra Pradesh and Madhya Pradesh, each with a capacity of 200 thousand liters per day (KLPD) to support India’s goal of achieving a 20% ethanol blending target by FY 2025-2026.
  • Nayara Energy plans to expand its ethanol production capacity to approximately 1,000 KLPD by eventually setting up 5 plants and providing around 8% of the country’s refining output.

Yara Clean and Greenko ZeroC sign term sheet for renewable ammonia supply

  • Yara Clean Ammonia and Greenko ZeroC have signed a term sheet for the supply of renewable ammonia from Phase 1 of AM Green’s ammonia production facility in Kakinada, India, and encompasses the long-term supply of up to 50% of renewable ammonia.
  • It is expected to produce and export renewable ammonia generated from round-the-clock carbon-free energy by 2027.

Storage

Energy Storage Systems important for India’s renewable energy expansion

  • A report by credit rating agency ICRA forecasts that India’s renewable energy generation, including large hydro projects, is set to surge to 40% of the nation’s electricity generation by 2030, up from the current 25.
  • Declining battery prices have accelerated the adoption of battery energy storage systems (BESS) with multiple bids for BESS projects have been initiated with tariffs in these bids experiencing a significant decrease from Rs. 10.84 lakh/MW/month to INR 4.49 lakh/MW/month between August 2022 and March 2024.
  • While BESS costs have declined to INR 6.0-7.0 per unit, they still exceed pumped hydro storage (PSP) costs at around INR 5.0 per unit. However, the shorter gestation period and lower execution risks for BESS projects compared to PSP hydro are expected to drive their increased adoption in the future.

Other Market Updates

India achieves record power demand of 250 GW on May 30, 2024

  • India achieved a record maximum power demand of 250 GW on May 30, 2024, with the northern and western regions reaching new highs as well.
  • This surge is attributed to hot weather and rising power consumption. Thermal power generation also hit a record high of 176 GW due to the strategic use of imported coal and gas. Renewable energy sources like solar and wind also played a role.

A report by IEEFA and JMK Research recommends reducing GST for hydropower and wind projects

  • To ease the financial strain on developers and increase affordability, a report by IEEFA and JMK Research recommends reducing the GST on hydropower components from 18-28% to 12% and wind projects from 12% to 5%.
  • It also suggests maintaining a GST rate below 5% on Battery Energy Storage Systems (BESS) and their components for the next 5 years.
  • Recommendations include extending the 100% exemption on inter-state transmission system (ISTS) charges until 2030, eliminating reverse auctions for wind tenders, and introducing financing structures like an InvIT.
  • It also proposes a pilot power exchange-based Contract for Difference (CfD) project to improve the power exchange market and urges expedited visa approvals for skilled Chinese technicians to facilitate the expansion of solar manufacturing in India.

India sees a rise in the power exchange market and declining PPAs

  • PPAs are diminishing in importance in India’s power market with the short-term market now constituting 15% of the sector, up from 10% in FY 17. Power exchanges are gaining prominence with a 16.4% CAGR from FY2020 to FY2024 and representing 8% of total electricity consumption.
  • Demand Side Management (DSM) is declining due to the introduction of the Real-Time Market (RTM).  Bilateral transactions and DSM have grown at much lower rates (3.4% and 2% CAGR respectively) compared to power exchanges.
  • Renewable energy generation is increasing at 8.2% CAGR over the last 5 years with installed capacity growing at 10.6% CAGR aiming to reach 500 GW by 2030.
  • India’s electricity consumption in FY 24 rose by 7.6% year-over-year with additions in thermal capacity and 27 GW under construction, 50 GW planned. Coal production increased by 10% year-over-year in Q4 FY 24, with dispatch to the power sector growing by 8.1%.

India overtakes Japan and becomes third largest solar power generator in 2023

  • India overtakes Japan in 2023 to become the world’s third-largest solar power generator with solar accounting for 5.8% of its electricity production up from 0.5% in 2015. Solar energy deployment in India has rapidly increased to a record 18 TWh added in 2023 and ranks fourth behind China, the United States, and Brazil.
  • Globally, solar power has maintained its status as the fastest-growing electricity source for the 19th consecutive year. It contributes more than twice as much new electricity as coal in 2023. The global solar generation in 2023 was over 6 times larger than in 2015 to reach a record of 5.5% of global electricity production.
  • The International Energy Agency (IEA) projects solar to account for 22% of global electricity generation by 2030 under the Net Zero Emissions scenario.

India can potentially achieve its 30 GW Offshore wind target but faces several challenges

  • JMK Research suggests India can potentially achieve its 30 GW offshore wind capacity target by 2030, but several challenges need to be addressed. The country aims for this capacity as part of its broader 500 GW renewable energy goal, with an estimated offshore wind potential of 70 GW, split between Gujarat (36 GW) and Tamil Nadu (35 GW).
  • Currently, India has no installed offshore wind capacity, but MNRE has outlined three development models and plans to auction 37 GW by 2030. The first 4 GW tender was issued in February 2024.

India’s tender target reaches a record of 70 GW renewables in FY 24

  • Renewable energy tender issuances in India hit a record 69 GW in FY 2024, surpassing the government’s target of 50 GW. Solar and wind tenders comprised 57% of the total, with the remainder being wind-solar hybrid and renewable energy combined with energy storage systems (ESS).
  • Innovative tenders included India’s first large-scale offshore wind tender for 4 GW and a 500 MW concentrated solar + thermal storage tender. There’s a significant rise in tenders for energy storage system (ESS) projects, reflecting the importance of storage in India’s renewable energy infrastructure.
  • State-level tendering authorities, like Gujarat Urja Vikas Nigam Ltd (GUVNL) and Rajasthan Urja Vikas Nigam Ltd (RUVNL), play a crucial role in the tendering ecosystem. Location wasn’t a constraint for 80% of tenders, indicating developers’ flexibility with inter-state transmission system (ISTS) connectivity.
  • Despite challenges like 40% import duties on solar modules and requirements for local component purchases, the market remains on track to achieve its 2030 target of 500 GW. Stakeholders anticipate tendering capacity to surpass the 50 GW national target again in FY 2025, with accelerating allotments from unawarded tenders in FY 2024.

A report by IEEFA and JMK Research recommends reducing GST for hydropower and wind projects

  • To ease the financial strain on developers and increase affordability, a report by IEEFA and JMK Research recommends reducing the GST on hydropower components from 18-28% to 12% and wind projects from 12% to 5%.
  • It also suggests maintaining a GST rate below 5% on Battery Energy Storage Systems (BESS) and their components for the next 5 years.
  • Recommendations include extending the 100% exemption on inter-state transmission system (ISTS) charges until 2030, eliminating reverse auctions for wind tenders, and introducing financing structures like an InvIT.
  • It also proposes a pilot power exchange-based Contract for Difference (CfD) project to improve the power exchange market and urges expedited visa approvals for skilled Chinese technicians to facilitate the expansion of solar manufacturing in India.

India’s tender target reaches a record of 70 GW renewables in FY 24

  • Renewable energy tender issuances in India hit a record 69 GW in FY 2024, surpassing the government’s target of 50 GW. Solar and wind tenders comprised 57% of the total, with the remainder being wind-solar hybrid and renewable energy combined with energy storage systems (ESS).
  • Innovative tenders included India’s first large-scale offshore wind tender for 4 GW and a 500 MW concentrated solar + thermal storage tender. There’s a significant rise in tenders for energy storage system (ESS) projects, reflecting the importance of storage in India’s renewable energy infrastructure.
  • State-level tendering authorities, like Gujarat Urja Vikas Nigam Ltd (GUVNL) and Rajasthan Urja Vikas Nigam Ltd (RUVNL), play a crucial role in the tendering ecosystem. Location wasn’t a constraint for 80% of tenders, indicating developers’ flexibility with inter-state transmission system (ISTS) connectivity.
  • Despite challenges like 40% import duties on solar modules and requirements for local component purchases, the market remains on track to achieve its 2030 target of 500 GW. Stakeholders anticipate tendering capacity to surpass the 50 GW national target again in FY 2025, with accelerating allotments from unawarded tenders in FY 2024.

India aims to boost wind energy capacity by 25 GW with the help of INR 2 lakh crore investment

  • According to Crisil Ratings, India is set to significantly boost its wind energy capacity by nearly 25 GW between fiscal years 2025 and 2028, up from 9 GW added between 2021 and 2024, with capital expenditures ranging from INR 11.8 lakh crore to INR 22 lakh crore.
  • Despite a slowdown from 1.7 GW annual additions (2018-2023) compared to 3.0 GW annually (2014-2018) due to site and return challenges, government policies now aim to auction 50 GW of renewable projects annually, including 10 GW for standalone wind.
  • From fiscal 2023, 5 GW of standalone wind projects and 18 GW of hybrid and storage-linked projects were auctioned, up from 3 GW and 4 GW respectively in fiscal 2021 and 2022. Average tariffs stabilized at INR 3.2 per unit in 2023-2024, expected to continue into 2025, making projects viable for developers.

India’s Solar module exports rose 91% in FY 2024

  • India’s solar module exports increased by 91% to $1.97 billion in fiscal year 2023-24, with the USA being the largest destination, accounting for $1.94 billion (98.5%) of the total exports. Exports to South Africa amounted to $4.73 million.
  • India imported $4.35 billion worth of solar modules in FY 2024, a 361% increase from $943.52 million in FY 2023. China was the largest supplier, with shipments totaling $2.85 billion (66% of India’s total imports). Vietnam was the second largest supplier, with imports totaling  $935.05 million.
  • India’s imports of non-assembled solar cells rose significantly in FY 2024, reaching $1.85 billion a 41% increase from $1.31 billion in FY 2023. China remained the largest supplier, with imports nearly doubling to $1.04 billion from $581.45 million in FY 2023. Malaysia and Thailand followed, with imports totaling $311.81 million and $248.75 million, respectively.

Policies and Regulations

Central Level Regulatory Updates

Tender NameIssuing AgencyDate of Issue
ALMM & RLMM exemption for RE plants in Special Economic Zones (SEZ) or Export Oriented Units (EOU) supplying green hydrogen production facilitiesMNRE27th-May-2024
MNRE updated the ALMM list with an enlisted capacity of 48.14 GW in May 2024MNRE24th-May-2024
MNRE issues clarification on ALMM order for solar projectsMNRE20th-May-2024
CERC declares compensation for Azure Power for installing bird divertersCERC3rd-May-2024

State Level Regulatory Updates

Tender NameIssuing AgencyDate of Issue
Gujarat Electricity Regulatory Commission(GERC) issued draft regulation for Net metering Rooftop Solar PV (4th Amendment) Regulation,2024GERC18th-May-2024
CSERC issued a draft order for determination of tariff for various renewable and non-fossil fuel-based co-generation plants for FY 2025CSERC15th-May-2024
CSERC issued proposals for new banking, settlement charges for renewable energyCSERC14th-May-2024
HPERC issued a draft (Third Amendment) for Rooftop Solar PV Grid Interactive System Regulations, 2024HPERC13th-May-2024
Delhi High Court rules in favor of solar sector and grants duty-free importsDelhi High Court8th-May-2024
CERC declares compensation for Azure Power for installing bird divertersCERC3rd-May-2024
Himachal Pradesh approves Power purchase agreement (PPA) for 5 MW Solar projectHERC3rd-May-2024
Andhra Pradesh Electricity Regulatory Commission (APERC) issues Green Energy Open Access(GEOA) Regulation 2024APERC2nd-May-2024
BYPL secures PPA with SECI for 100 MW of Wind-Solar Hybrid powerDERC1st-May-2024
DERC provides regulatory approval for India’s first utility scale BESS project of 20 MW/40 MWh capacityDERC1st-May-2024
RVUNL sets the stage for 810 MW solar project at INR 2.64 per kWhRVUNL1st-May-2024
UERC (Tariff and Other Terms for Supply of Electricity from Renewable Energy Sources and non-fossil fuel based Co-generating Stations) (First Amendment) Regulations, 2024 (Principal Regulations, 2023)UERC31st-Apr-2024
AP Green Energy Corporation Ltd (APGECL) to procure 7000 MW power from SECI through Adani Renewables and Azure Power IndiaAPERC12th-Apr-2024
Joint Electricity Regulatory Commission for Manipur and Mizoram issues (Methodology for determination of Green Energy Open Access Charges) Regulations, 2024JERC9th-Apr-2024
Meghalaya State Electricity Regulatory Commission(MSERC) issues Green Energy Open Access RulesMSERC3rd-Apr-2024
About Us

JMK Research & Analytics is a specialist research and consulting firm focussing on various cleantech segments in India and the Asia Pacific markets including, Renewables, E-mobility, Energy Storage (ESS) and Green Hydrogen.

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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