Monthly RE Update – September 2023

Monthly RE Update – September 2023

Tenders

New RFS Issued

  • In September 2023, 17 new renewable energy (RE) tenders with a cumulative capacity of 10,495 MW were issued.  MSEB Solar Agro Power floated solar tenders with a cumulative capacity of 2238 MW under (Mukhyamantri Saur Krushi Vahini Yojana 2.0) in Maharashtra.
  • SJVN issued a 1500 MW ISTS-connected Wind-Solar Hybrid tender. NTPC floated a 1500 MW ISTS-connected wind tender (NTPC Tranche-II).
  • SECI invited bid for the supply of 1260 MW firm and dispatchable ISTS-connected RE Power (FDRE-IV).
  • PFC Consulting Limited issued an ISTS-connected solar tender of 1250 MW.

Fig 1.1: New RE tenders issued in September 2023

PBG: Performance Bank Guarantee

EMD: Earnest Money Deposit Source: JMK Research

Source: JMK Research

Fig 1.1: RFS Issued

Tender Name

Technology

Tender Scope

Capacity (MW)

Other Details

Minimum CUF

Commissioning timeline from PPA signing (months)

Bid Submission Date

MSEB Solar Agro, 2238 MW, Solar, Maharashtra, Sep 2023

Small Scale Solar

Project Development

2238

EMD – INR 0.1 million/MW

21st-Oct to 20th-Nov-2023

SJVN, 1500 MW, ISTS Wind-Solar Hybrid, Pan India, Sep 2023

Wind-Solar Hybrid

Project Development

1500

EMD – INR 1.23 million/MW

PBG – INR 3.1 million/MW

35%

24

2nd-Nov-2023

NTPC, 1500 MW, ISTS-connected Wind, Pan India, Sep 2023

Wind

Project Development

1500

19th-Oct-2023

SECI, 1260 MW, RE with ESS (FDRE-IV), Pan India, Aug 2023

Hybrid

Project Development

1260

EMD – [INR 9,28,000 x Solar Capacity (MW) + INR 12,64,000 x Wind Capacity and other RE generating sources (MW) + INR 14,64,000 x ESS Capacity (MW)]

PBG – [INR 23,20,000 x Solar Capacity (MW) + INR 31,60,000 x Wind Capacity and other RE generating sources (MW) + INR 36,60,000 x ESS Capacity (MW)]

24

10th-Nov-2023

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

Utility Scale Solar

Project Development

1250

EMD – INR 0.46 million/MW

PBG – INR 2.3 million/MW

22%

18

12th-Oct-2023

RUMSL, 750 MW, Wind-Solar Hybrid, Madhya Pradesh, Sep 2023

Hybrid

Project Development

750

EMD – INR 1.21 million/MW

17th-Nov-2023

NLC, 600 MW, Solar (BOS), Gujarat, Aug 2023

Utility Scale Solar

BOS

600

EMD – INR 43.55 million

PBG – 10% of contract value

12

29th-Sep-2023

BHEL, 300 MW, Solar (EPC), Odisha, Aug 2023

Utility Scale Solar

EPC

300

11th-Sep-2023

RUMSL, 250 MW, Floating Solar, Madhya Pradesh, Sep 2023

Floating Solar

Project Development

250

EMD – INR 1.3 million/MW

27th-Oct-2023

RUMSL, 240 MW, Floating Solar (Phase II), Madhya Pradesh, Sep 2023

Floating Solar

Project Development

240

EMD – INR 1.3 million/MW

17th-Nov-2023

Singareni Collieries, 232 MW, Solar (EPC), Telangana, Sep 2023

Utility Scale Solar

EPC

232

EMD – INR 10 million

29th-Sep-2023

NTPC, 176 MW, Solar, Telangana, Sep 2023

Utility Scale and Floating Solar

Project Development

176

EMD – INR 100 million

20th-Oct-2023

JDVVNL, 76 MW, Solar (Under KUSUM scheme Component-C), Rajasthan, Aug 2023

Small Scale Solar

Project Development

76

EMD – INR 0.1 million/MW

PBG – INR 0.5 million/MW

19%

9

16th-Oct-2023 to 31st-Oct-2023

JVVNL, 51 MW, Solar (Under KUSUM scheme Component-C, Rajasthan, Sep 2023

Utility Scale Solar

Project Development

51

EMD – INR 0.1 million/MW

PBG – INR 0.5 million/MW

19%

18

26th-Oct-2023

NHPC, 40 MW, Solar (EPC), Odisha, Sep 2023

Utility Scale Solar

EPC

40

EMD – INR 30 million

14-Nov-2023

TERI, 20 MW/40 MWh, BESS (EPC), Delhi, Sep 2023

Hybrid

EPC

20 MW with 40 Mwh BESS

6

22nd-Sep-2023

PEDA, 12 MW, Solar (EPC), Punjab, Sep 2023

Utility Scale Solar

EPC

12

EMD – INR 4 million for 4 MW solar capacity

10

27th-Sep-2023

PBG: Performance Bank Guarantee

EMD: Earnest Money Deposit

Source: JMK Research

In addition, SECI issued notice for selection of hybrid power developers for setting up of 2000 MW ISTS-connected wind-solar hybrid tender (Tranche-VII).

SECI also issued notice for setting up of 1000 MW ISTS-connected solar tender in India (SECI-ISTS-XII).

Date Extensions

Table 1.2: Date Extension

Tender Name

Technology

Tender Scope

Capacity (MW)

Other Details

Minimum CUF

Commissioning timeline from PPA signing (months)

Bid Submission Date

NTPC, 2000 MW, Pumped hydro storage, Pan India, July 2023  

Pumped Hydro Storage

Project Development

2000

EMD – 200 MW to 360 MW – INR 200 million , 370 MW to 720 MW – INR 50 million,   730 MW to 1440 MW – INR 1000 million,  1450 MW to 2000 MW – INR 2000 million

2nd-Nov-2023

SECI, 1500 MW, RE with ESS (FDRE-II), Pan India, July 2023

RE with ESS

Project Development

1500

EMD – [INR 1.1 million x Solar capacity (MW) + INR 1.4 million x Wind Capacity (MW) + INR 0.4 million x ESS Capacity (MWh)].
PBG – [INR 2.9 million x Solar capacity (MW) + INR 3.5 million x Wind capacity (MW) + INR 1.2 million x ESS Capacity (MWh)]

 

24

15th-Nov-2023

NTPC, 1500 MW, Solar-Wind hybrid, Pan India, July 2023  

Wind-Solar Hybrid

Project Development

1500

 – –

30%*

17th-Oct-2023

NTPC, 1500 MW, Solar (ISTS-I), Pan India, July 2023  

Utility Scale Solar

Project Development

1500

 – –

21-22%*

27th-Oct-2023

NTPC, 1500 MW (min) with 9000 MWh ESS, Pan India, Apr 2023

Energy Storage System

Project Development

1500 MW with 9000 MWhr ESS

EMD – INR 1.2 million/MW

10th-Oct-2023

SECI, 1500 MW, RE with ESS (FDRE-II), Pan India, July 2023

RE with ESS

Project Development

1500

EMD – [INR 1.1 million x Solar capacity (MW) + INR 1.4 million x Wind Capacity (MW) + INR 0.4 million x ESS Capacity (MWh)].
PBG – [INR 2.9 million x Solar capacity (MW) + INR 3.5 million x Wind capacity (MW) + INR 1.2 million x ESS Capacity (MWh)]

24

15th-Nov-2023

SECI, 1300 MW, Wind (Tranche XV), Pan India, Aug 2023  

Wind

Project Development

1300

EMD – INR 1.26 million/MW/project

PBG – INR 3.16 million/MW/project

22%

24

20th-Oct-2023

PSPCL, 1000 MW, Solar, Punjab, May 2023

Utility Scale Solar

Project Development

1000

EMD- INR 0.40 million/MW

PBG- INR 1.18 million/MW

19%

18

3rd-Oct-2023

SECI, 800 MW, RE with ESS (FDRE-III), Pan India, Aug 2023

Hybrid

Project Development

800

EMD – [INR 9,28,000 x Solar Capacity (MW) + INR 12,64,000 x Wind Capacity (MW) + INR 14,64,000 x ESS Capacity (MW)]. Performance Bank Guarantee = [INR 23,20,000 x Solar Capacity (MW) + INR 31,60,000 x Wind Capacity (MW) + INR 36,60,000 x ESS Capacity (MW)]

 

24

20-Nov-2023

GUVNL, 700 MW, Solar Phase XI, Gujarat, Mar 2021

Utility Scale Solar

Project Development

700

EMD – INR 0.4 million/MW

PBG-INR 0.9 million//MW

17%

15

25th-Oct- 2023

GUVNL, 600 MW, Solar (Phase XXI), Gujarat, July 2023

Utility Scale Solar

Project Development

600

EMD- INR 0.50 million/ MW/ project
PBG- INR 1 million/ MW/ project

17%

21

7th-Oct-2023

SECI, 500 MW, RE with ESS (FDRE-I), Pan India, July 2023

RE with ESS

Project Development

500

EMD – Solar – INR 1.16 million/MW, Wind – INR 1.39 million/MW, ESS – INR 0.48 million/MWh
PBG – Solar – INR 2.90 million/MW, Wind – INR 3.47 million/MW, ESS – INR 1.20 million/MWh

24

6th-Nov-2023

PSPCL, 500 MW, Solar, Punjab, Aug 2023  

Utility Scale Solar

Project Development

500

EMD – INR 0.4 million/MW
PBG – INR 1.18 million/MW

19%

18

4th-Oct-2023

GUVNL, 500 MW, Wind (Phase VI), Pan India, July 2023  

Wind

500

Project Development

EMD – INR 1 million/MW
PBG – INR 2 million/MW

22%

24

9th-Oct-2023

GUVNL, 500 MW, RE with 250 MWh ESS Phase (XV), Gujarat, Jun 2022

Utility Scale Solar

Project Development

500

EMD – INR 1 million/MW

PBG-INR 2.5 million/MW

Wind- 22% Sola-17% Hybrid-30%

18

18th-Oct- 2023

NTPC, 310 MW, Solar, West Bengal, Feb 2023

Utility Scale and Floating Solar

Project Development

310

EMD – INR 5 Crore to INR 20 Crore

4th-Oct-2023

RUMSL, 114 MW, Solar, Madhya Pradesh, Aug 2023  

Utility Scale Solar

Project Development

114

EMD – INR 0.8 million/MW

PBG – INR 1.6 million/MW

15

16th-Oct-2023

Source: JMK Research

*Subject to issuance of tender documents

Installed Capacity

From January to August 2023, about 8.3 GW solar capacity and 2.2 GW wind capacity was added in the country, taking the cumulative RE capacity to 131.5 GW.

In August 2023, a combined total of 615 MW of solar and wind capacity was added.

Figure 2.1: RE installations in August 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 August 2023

Tamil Nadu installed the maximum solar and wind capacity of 116 MW and 50 MW respectively in August 2023. Gujarat added the highest rooftop solar capacity of 56 MW in the country in this month.

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

Source: MNRE, JMK Research

Projects

Key announcements that were made during the month were:

  • Karnataka Energy Department is planning to expand the current capacity of Pavagada Solar Park from 2000 MW to 5000 MW in the Tumkur district with a 2500 MW solar power plant near the Ryapte Gram Panchayat area, whereas the additional 500 MW is planned to be established near the Inturayanhalli panchayat.
  • KP Energy Limited has been awarded a contract for the development of a 464.10 MW Balance of System package for an Inter-State Transmission System connected wind energy project in Gujarat from NTPC REL. The project falls under the firm’s ‘Captive Power Producer (CPP)’ business segment. Under the contract, the firm will provide a comprehensive range of services, including Engineering, Procurement, Construction and Commissioning (EPCC).
  • Assam Power Development Corporation has issued a Letter of Award (LOA) to SJVN for developing three projects of total capacity 320 MW. It comprises tariff-based competitive bidding tenders of APDCL for 50 MW, 70 MW, and 200 MW solar projects and the projects will be on build-own and operate basis. The 50 MW and 70 MW solar projects have been allotted at a tariff of Rs 3.92 per unit and will be developed under the solar park category. The third solar project of 200 MW capacity has been allotted at a tariff of Rs 3.90 per unit and will be developed anywhere in Assam.
  • SJVN has signed an agreement with the Bhakra Beas Management Board (BBMB) to set up an 18 MW solar power project at an investment of INR 90 crore. The project will be developed on the land parcels of BBMB in Himachal Pradesh and Punjab. The project is scheduled to be commissioned by August 2024.
  • Ayana Renewables has signed an agreement with Hindalco for the development of 330 MW of solar and wind power capacity, with support from pumped hydro storage solutions, in partnership with Greenko Energies. Additionally, the company will develop round-the-clock (RTC) supply of 100 MW of renewable energy power to Hindalco’s smelting plant in Odisha.
  • Hitachi will provide a grid connection solution to Ayana Renewable Power for their upcoming 300 MW solar power plant in Bikaner, Rajasthan. The company will provide an EPC management package that collects all the power generated by the plant and transfers it into the national transmission system safely and reliably. The project is scheduled to be commissioned in March 2024.
  • US-based company Bright Night Power is planning to commission the first 100 MW of wind-solar hybrid project with an investment of INR 800 crore in Maharashtra. The company aims to complete the project by first quarter of 2024.
  • Sterling and Wilson Renewable Energy Ltd has secured its third solar EPC contract from NTPC REL of capacity 300MW (AC) in Khavda RE Power Park of Gujarat. The contract price, including three-year operation and maintenance, would be INR 1,535 crore (around $185 million).
  • Tata Power plans to set up a 41 MW captive solar plant in Thoothukudi, Tamil Nadu. The project is expected to be commissioned within 12 months from the signing of the project development agreement (PDA). In addition,
    • Tata Power Renewable Energy Limited (TPREL) collaborates with Sanyo Special Steel Manufacturing India for setting up of 28.125 MW captive solar plant in Maharashtra.
    • TATA Power has partnered with Neosym to develop a 26 MW AC solar plant. The project will be located at Jamkhed in the Ahmednagar district of Maharashtra. The plant is scheduled to start operation in March 2024.
    • Also, Tata Power Renewable Energy Limited signs PDA with ANAND Group, an Automotive leader for 4.4 MW AC Group Captive solar plant.
    • Tata Motors has partnered with TPREL to develop a 12 MWp on-site solar project at its Pune commercial vehicle manufacturing facility. The new plant will expand the Pune factory’s on-site solar power capacity to 20.73 MWp. The solar project is to be commissioned within six months of signing the PPA.
    • The company also collaborates with Chalet hotels to supply 13.75 million Units (MUs) of clean energy. As per the agreement, a 6 MW solar plant will be set up and which will reduce 9.762 tonnes of carbon emissions.
  • Waaree Renewable Technologies Ltd (WRTL) has announced that it has received work orders for a total of 52.6 MWp. The company received a Letter of Intent (LoI) from one of India’s leading power generation companies for the execution of a ground-mounted solar power project and is expected to be completed in FY24-FY25.
  • ADP & Fourth Partner Energy collaborate together to set up a 25 MW solar plant in Tamil Nadu with a worth of INR 1.2 billion towards the construction, operation, and maintenance. The project will generate 50.7 GW hours of electricity per year, and it will directly send power to open-access consumers.
  • Vibrant Energy signed PPA with Ultra cement for the supply of wind energy with a capacity of 21.6 MW in Maharashtra.
  • KPI Green Energy has bagged 9.70 MW of solar projects. Of this 4.7 MW will be executed by KPI energy and the remaining 5 MW capacity by Sun drops Energeia pvt ltd. The project is scheduled to be complete by FY 2023-24.
  • Fimer recently supplied its 2 MVA inverters for battery energy storage systems (BESS) deployed at IT major Capgemini’s campuses in Mumbai and Noida. Capgemini’s Mumbai campus has a 3.5 MW BESS system installed by Arcedo System. The Noida campus has a 2.5 MW system by Replus Engitech. Both projects were commissioned in 2023.
  • AmpIn Energy is going to supply 4.5 MW of solar power Allana Group plant in Aligarh as a part of a partnership. The power offtake will increase the usage of renewable energy to about 50% of the total energy mix at Allana Group’s plant at Aligarh, in Uttar Pradesh, Ampin Energy.
  • In addition, AmpIn Energy has partnered with Varroc’s manufacturer to supply 33.1 MW of solar power to a Maharashtra-based automobile manufacturer. The solar supply will meet nearly 65%-75% of Varroc’s total power requirement in its seven manufacturing plants in Maharashtra.
  • O2 Power has joined hands with Gateway Terminals India Private Limited (the Indian subsidiary of APM Terminals, one of the world’s leading terminal companies) to supply 10.65 MW worth of captive solar power from its plants in Maharashtra. It will help meet 80% of the terminal’s power needs.

Monthly RE Generation

In August 2023, Renewable energy sources generated 16,725 MU, which is 23% less than the RE generation in August 2023. Solar and Wind generation decreased by 12.6% and 31.6% respectively, on month-on-month basis, in September 2023.

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

Source: CEA, JMK Research

Investments/ Deals

In September 2023, about $366 million was invested in the RE sector in India. The key investments during the month were:

  • Juniper Green secured $350 million investment by AT Capital Group and Vitol. The investment will be utilised in reaching the company’s target to triple its operational capacity to 2.5 GW by 2026.
  • Gensol Engineering acquired 54.4% stake in Scorpius Trackers, a single solar tracker company.

Table 4.1: Investment and deals in September 2023

Company Name

Deal Type

 

Sector

Investor

Deal Value

Stake Acquired

Juniper Green

Equity

Renewable

AT Capital Group and Vitol

$350 million

Scorpius Trackers

Equity

Solar

Gensol Engineering

$16.2 million

54.4%

Ellipson

Equity

Solar

Capital A

$0.3 million

Other important announcements that were made during the month were:

  • Private equity investors TPG, Tokyo Electric Power Company (Tepco) and Brookfield are in advanced talks to buy a minority stake in JSW Neo Energy. Also, JSW Group is looking to raise up to $500 million from the stake sale.
  • REC plans to amplify its green project loan portfolio to 3 lakh crores. REC Limited has successfully secured a total of USD 1.15 billion in August 2023 through syndicated term loans. The financing was divided into two tranches: Tranche 1 amounted to USD 505 million and Tranche 2 totalling USD 645 million on 3rd August and 31st August 2023, respectively. The loans come with a 5-year tenor and are benchmarked to Overnight SOFR (Secured Overnight Financing Rate), which serves as the benchmark rate for loans denominated in USD.
  • REC has also sanctioned a debt funding of INR 9,156 crore for pumped storage and solar-wind projects in India. The state-owned power finance company has approved a debt funding of INR 6,075 crore (around $731 million) to Greenko’s 1.44 GW pumped storage project and over INR 3,081 crore ($371 million) to Serentica Renewables’ 560 MW solar-wind hybrid project at Gadag, Karnataka.
  • The Indian Renewable Energy Development Agency (IREDA) has filed its Draft Red Herring prospectus (DRHP) with capital market regulator Sebi to raise funds for its initial public offering (IPO). The IPO with a face value of INR 10 consists of a fresh issue of up to 403.16 million equity shares and an offer for sale (OFS) of up to 268.78 million equity shares.
  • TATA Power’s new solar factory in Tamil Nadu will get a big financial boost of up to $425 million from the U.S. International Development Finance Corporation (DFC). The money from DFC will ensure that Tata Power Solar can get everything it needs to make solar panels. They plan to start making their first panels by the end of the year.
  • Serentica has tied up with Power Finance Corporation (PFC) for INR 2,600 crore in debt funding for developing projects in Karnataka. In Karnataka, the company is setting up 400 MW of wind and solar capacities where it has already secured connectivity to the inter-state transmission system. The debt funding will avail 40 billion units of clean energy annually to energy-intensive industries and displace 37 million tonnes of carbon emissions.
  • Gentari, Edelweiss, and Actis have entered the last round for acquiring solar projects totaling 350 MW from O2 Power, promoted by Singapore’s Temasek and European alternative asset manager EQT. The transaction, having an equity and enterprise value of $50 million and $200 million, respectively, is being managed by EY. They are also actively scouting for opportunities in India’s green economy and are also in the race for buying 185 MW solar projects from Finnish state-run power utility Fortum Oyj.
  • Total Energies, a company based in France is close to investing about $300 million in a new joint venture with Adani Green Energy. The Joint venture will be equally owned by both companies and will house 1 GW of Renewable Energy Projects. The project will comprise a mix of solar and wind assets of 250 MW of operational capacity, 500 MW of under-construction facilities, and 250 MW of planned projects.
  • The government announced that it will sell up to 4.9% stake in power producer SJVN Ltd via Offer For Sale and has a fixed floor price of Rs 69 per share. The OFS opens on September 21 for non-retail investors and on September 22 for retail investors. The government will sell 9.66 crore shares with a face value of Rs 10 as part of the base offer and might sell 9.66 crore additional shares as part of the green shoe option. The floor price of Rs 69 represents a 16% discount from SJVN scrip’s closing price of Rs 82.1.
  • Sidbi, the national development bank focused on refinancing loans up to 100% for small enterprises. Sidbi lends up to Rs 7.5 crore to eligible MSMEs without charging processing fees by taking 25 percent margin money as security under the new credit scheme in partnership with Tata Power to promote energy efficient and green business operations.
  • Azure is planning to expand with an investment of $700 million including 700 MW solar, 120 MW wind and 150 MW hybrid project. The company is exploring options like selling minority stakes in its projects and bank debt to raise as much as INR 5,800 crore ($700 million) to fund capacity expansion.
  • Abu Dhabi’s International Holding Company (IHC) has decided to sell its stake in two Adani companies. IHC has entered into a definitive agreement with a buyer to dispose of its FDI investment in Adani Green Energy Ltd and Adani Transmission Ltd. IHC had in April 2022 invested about USD 500 million each in renewables arm Adani Green Energy and power company Adani Transmission, and a further USD 1 billion in the group’s flagship Adani Enterprises.
  • Brookfield has formed a joint venture with Axis Energy to develop renewable energy projects. Brookfield has committed to providing equity capital of up to $845 million for the Joint Venture.
  • Waaree has started work on its initial public offering to raise $300-350 million, Waaree is hoping to raise funds in the IPO at a valuation of up to $3 billion. Earlier company raised INR 1,000 crore in August to fund its ongoing capex plans and INR 1,000 crore in October 2022.

GTAM Traded Volume

The IEX traded a total of 89 MUs in GTAM in September 2023, which is 12.3% higher than the volume traded in August 2023. The average trade price in IEX-GTAM for September 2023 was INR 6.47/kWh. This is about 6.5% less than the previous month’s price.

Figure 5.1: GTAM Traded volume and Price Trend

Source: IEX, JMK Research

Key Market Updates

Solar Manufacturing

India’s solar module manufacturing capacity to hit 100 GW By 2026

India plans to have 100 GW of solar module manufacturing capacity per annum by 2026 and is targeting the development of domestic solar manufacturing of over 290 GW of solar capacity by 2030. Currently, India has 27 GW of solar module manufacturing capacity and 7 GW of solar cell capacity. India is targeting that it would add at least 48 GW of solar module manufacturing capacity under a production-linked incentive scheme apart from the existing capacity.

Solar panel makers may receive priority sector lending status

The Reserve Bank is currently reviewing the proposal to categorize loans to solar panel manufacturers as part of priority sector lending, and a decision is anticipated within the next two to three months. Following discussions with stakeholders, two key recommendations have been reached: granting priority sector status to banks for supporting solar panel manufacturers, and the Renewable Energy Ministry advocating for adjustments to the Production-Linked Incentive (PLI) scheme.

Gautam Solar to expand PV module manufacturing capacity to 2 GW by 2024

Gautam Solar will double its annual solar module manufacturing capacity to 2 GW by the end of the calendar year 2024. The company is planning to invest around INR 150 crore ($18 million) in setting up the manufacturing capacity, which will be used to produce n-type TOPCon and mono PERC modules. 

Luxra collaborates with Rayzon Solar for PV module production in India

Luxra Group signed an MOU with Rayzon Solar for solar module production in India and it will focus on PV module quality skills and sharing the knowledge of PV module manufacturing in India. Luxra Group started their PV module manufacturing near Solapur region in Maharashtra.

Reliance is planning for fast-track execution of solar gigafactory

The solar PV gigafactory will manufacture modules, cells, wafers, ingots, polysilicon, and glass at a single location in Jamnagar. It will deploy heterojunction technology (HJT) to manufacture one of the highest-efficiency solar PV cells and modules globally for utility-scale and rooftop power generation. The company targets to bring this factory on stream in a phased manner by the end of 2025. RIL is concurrently focused on setting up a battery gigafactory by 2026.

Green Hydrogen

MPPGCL issues tender for 600 MW hydrogen generation plants 

Madhya Pradesh Power Generating Company Limited (MPPGCL) has issued a tender for a work contract for complete operation and assistance in the operation work of hydrogen generation plant 2X600 MW, Stage-1 and 2X660 MW, Stage-2 at Sri Singhaji Thermal Power Project for a period of 12 months.

TCPL Green Energy solutions (GES) intend to establish manufacturing facility in Jharkhand

TCPL GES intends to set up a manufacturing facility in Jharkhand that aims to produce hydrogen-based powertrains and battery electric vehicle aggregates and systems. Over the upcoming years, the company will invest INR 350 crore to produce fuel-agnostic power train solutions which include hydrogen internal combustion engine (ICE), battery and fuel cell electric vehicle systems as well as fuel delivery systems. The plant is expected to commence production in 2024 with the hydrogen ICE, followed by the battery-electric components and fuel delivery system-related products.

NTPC to commission India’s first green hydrogen fuelling station in September

With the successful launch of the green hydrogen pilot project, NTPC is planning to commission the country’s first Green Hydrogen fuelling station in Ladakh. The project will produce 80 Kg per day of 99.97% pure Hydrogen that will be compressed, stored, and dispensed.

NTPC collaborates with Chidambaranar Port to develop a Green Hydrogen Hub in Tamil Nadu

NTPC Green Energy has signed an MOU with V.O. Chidambaranar Port Authority (VOCPA) to develop a Green Hydrogen hub in Tamil Nadu. According to the MOU, NTPC and VOCPA will collaborate to establish a green hydrogen production facility and produce its derivatives, including green ammonia and green methanol, on the land provided by VOCPA for both domestic use and export.

India’s hydrogen generation market to reach $21.9 billion by 2030

According to a recent report, the hydrogen generation market in India is projected to reach $21.9 billion by 2030, at a compound annual growth rate (CAGR) of 11.1% between 2023 to 2030. Reliance Industries and the Adani Group have already expressed interest in making substantial investments in the production of green hydrogen and the development of green hydrogen energy storage solutions.

Adani forms Joint Venture with Kowa Holdings Asia Pte Ltd to promote green Hydrogen products in Japan

Adani Global Pte Ltd, Singapore, a step-down subsidiary of Adani Enterprises Ltd formed a JV(50:50) for sales and marketing of green ammonia, green hydrogen, and its derivatives in Japan, Hawaii, and Taiwan. The first project of ANIL of 1 million metric tonnes per annum of green hydrogen is being implemented in phases in Gujarat. The initial phase is expected to start production by FY2027. ANIL aims to increase capacity to up to 3 MMTPA of green hydrogen in the next 10 years, with an investment of about $50 billion.

Ministry confirms the execution of green hydrogen storage project

India will launch a pilot green hydrogen storage project of 100 MW capacity for Round the Clock electricity supplies. An investment pipeline of nearly $250 billion is set to benefit India, primarily due to growing interest in renewable energy and green hydrogen. It will help to reduce the cost of RTC renewable energy from INR8/unit to INR6/unit.

UP govt plans to meet its green hydrogen production capacity by 2028

The Uttar Pradesh government is planning to meet its green hydrogen production capacity of nearly half 500,000 tonnes per annum by 2028. The government is drafting the Green Hydrogen Policy 2023 to ensure complete utilization of domestic green hydrogen production. The current hydrogen demand in UP is approximately 900,000 tonnes per annum, especially in the fertilizer and refinery sectors. The UP Global Investors Summit 2023, the state received renewable energy investment proposals, including green hydrogen of over Rs 2.70 trillion from 20 companies.

Ohmium plans to expand its manufacturing capacity in India

Ohmium, a US-based green hydrogen electrolyser manufacturer, has plans to announce multiple projects in India. The company is also actively expanding its annual manufacturing capacity in India, working towards 2GW capacity.

Energy Storage

India would need 74 GW energy storage capacity for RE integration by 2032

According to the National Electricity Plan (NEP) 2023, the Central Electricity Authority (CEA) has projected a requirement of 74 GW and 411 GWh of energy storage capacity by 2032. CEA projects a need for INR 4.47 lakh crore (about $60 billion) in investment for energy storage infrastructure by 2032.

Mandatory storage requirements for renewable energy projects are anticipated

The center authority may mandate energy storage systems(ESS) for Renewable energy projects installed over 5 MW or mandate to installation of ESS for a minimum of 5 % of the RE capacity. According to the newly issued national framework for energy storage system promotion, the Ministry of Power has stated that ESS capacity can be included in the bidding process, either alongside the renewable energy project or in conjunction with other storage solutions. Additionally, the ministry has recommended encouraging hydro projects to incorporate minimum poundage capacity to handle variability and peak demand.

Reliance Industries pushes battery unit timeline by 2 years to 2026

Reliance Industries pushes the battery unit timeline by 2 years to 2026. The giga battery will produce battery chemicals, cells, and packs, all the way up to containerized energy storage systems, and will include a Battery Recycling facility to deliver a truly integrated ecosystem.

Other Market Updates

Parliamentary panel asks Renewable Energy Ministry to seek into matter of loan enhancement

Despite the RBI has categorized RE as a priority sector, loans up to only Rs 30 crore are provided for renewable energy projects. Parliamentary panel has directed the Renewable Energy Ministry to pursue the matter of enhancement in the loans limit for the sector with the Finance Ministry as well as with the RBI.

About 1.7 GW and 1.1 GW of utility-scale solar capacity and wind capacity were added, respectively in Q2 2023  

In Q2 2023 (April-June 2023), about 1.7 GW and 1.1 GW of utility-scale solar capacity and wind capacity were added, respectively. Solar installation capacity is 28% higher than the previous quarter’s installations. In the wind segment, it is 54% higher than the Q1 2023 installations. In Q2 2023, about 40 GW of project development RE tenders were issued. The investment flow in the RE sector in Q2 2023 was more than $4374 million.

The United States and India introduced renewable energy tech platform

The U.S. Department of Energy and India’s Ministry of New and Renewable Energy (MNRE) have collaboratively launched the U.S.-India Renewable Energy Technology Action Platform (RETAP) as part of their strategic clean energy partnership. This platform is initially concentrated on green hydrogen, wind power, long-duration energy storage, and the exploration of geothermal energy.

Power ministry may recommend GST cut on hydro project components

The Ministry of Power is likely to ask for a cut in the goods and services tax (GST) on components used in hydropower projects. The ministry may seek a cut in components like turbines, steel, and cement which are in the higher slabs. As the levy on the components is at 18% or above, the need is that the levies should at least be below the 18% slab. The recommendation to the finance ministry would be to bring these items in the 5% slab as suggested by the stakeholders. While on turbine and steel, GST stands at 18%, that on cement is at the highest slab of 28%.

Over the next five years, SECI Planning to launch 15-20 GW of Renewable energy tenders per annum

SECI is planning to enter the RE market space and also come up with new business models to procure clean energy. Over the next 5 years, SECI targeting 100 GW of RE capacity through developer mode. Out of this, about 10 GW will come from plants or captive plants.

Government announces 25% incentive for critical mineral exploration by public and private agencies

The government has announced an incentive of 25% of the approved project cost for exploration agencies. The ministry said that both public and private sector exploration agencies are eligible to benefit from the 25% financial incentive. Critical minerals play a pivotal role in modern industries, from electronics to defense and renewable energy.

Buying green power may be mandatory under the Energy Conservation Act

The government is planning to make the national renewable purchase obligations (RPOs) enforceable under the Energy Conservation Act. Bringing the mandates under the purview of the Energy Conservation Act will enable penalties on entities deviating from the central government’s prescribed RPO trajectory. Under the current trajectory of purchase obligations, the total portion of renewable energy is 43.3% of total electricity consumption in 2029-30.

Comparing on m-o-m basis, price for global mono PERC modules have decreased by 1.2% in September 2023.

Figure 7.1: Solar Modules Price trends

Source: PVInfoLink, JMK Research

JMK Research carried out price survey from domestic suppliers for September 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 August price of mono PERC 500 Wp modules was INR 23.3/Wp, down by 4.9% as compared to the price of modules in August.
  • The price for Polycrystalline 330 Wp modules was INR 21.7/Wp, which is about 1.36% less than the previous month’s price.
  • The price for Bifacial modules was INR 24.7/Wp in September, which is around 3.1% less than the price of modules in August.

Figure: Average Prices for Domestic Modules

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

Policies and Regulations

Central

Policy Name

Issuing Agency

Date of Issue

MNRE proposes to hold bids for the development of offshore wind energy sites in Tamil Nadu

MNRE

28th-Sep- 2023

SJVN supplies 15 MW of solar power from the Himachal Floating plant at INR 3.26 per unit

CERC

23rd-Sep-2023

CERC approves High Price bilateral market segment in PXIL

CERC

21st-Sep-2023

MNRE updated the ALMM list with a total enlisted capacity of 19,405 MW till Sep 2023

MNRE

20th-Sep-2023

CERC issued the order stating the adoption of tariffs assigned in the PPA

CERC

13th-Sep-2023

MOP issues an order to implement the pooling of CGSs with expired PPA

MNRE

11th-Sep-2023

MNRE extends the waiver of Domestic content requirements for solar cells under component C of the PM KUSUM scheme

MNRE

11th-Sep-2023

Cabinet approves INR 37.6 billion Viability Gap Funding for development of Battery Energy Storage Systems

GoI

6th-Sep-2023

MNRE updated the ALMM list with a total enlisted capacity of 18,068 MW till Sep 2023

MNRE

1st-Sep-2023

MoP issues Electricity Rules (third Amendment) to resolve the matter of captive generation plants

MNRE

1st-Sep-2023

MoP issues framework for promoting  Energy Storage Systems

MoP

31st-Aug-2023

State

Policy Name

Issuing Agency

Date of Issue

UERC updates additional surcharge to INR 1.05/kWh from Oct to Mar 2024 for open-access consumer

UERC

25th-Sep-2023

Gujarat Government allows all ISTS /In-STS connected RE projects to be set up in the State

Government of Gujarat

21st-Sep-2023

Rajasthan extends the validity of its multi-year tariff order by one year until March 2025

RERC

21st-Sep-2023

Jharkhand State Electricity Regulatory Commission (JSREC) allows DISCOM to procure 100 MW of floating solar power at a price of INR 3.50/kWh

JSERC

12th-Sep-2023

TNERC proposes a draft for forecasting, scheduling, and deviation settlement related to wind and solar generation

TNERC

11th-Sep-2023

Government of Gujarat issues Gujarat Renewable Energy Policy 2023

Government of Gujarat

1st-Sep-2023

TSERC issued draft monthly banking of open access at 8% of energy banked

TSERC

1st-Sep-2023

West Bengal Discom to procure 150 MW of ISTS-connected Wind Solar Hybrid Power from AmpIn energy at INR 2.92/kWh

WBERC

31st-Aug-2023

Government of Rajasthan Energy Department issued Rajasthan draft Energy Policy 2050

Government of Rajasthan

31st-Aug-2023

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