EQ Magazine Nov'18 Part 1/2.pdf by EQ Int'l Solar Media Group

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CONT EN T

VOLUME 10 Issue # 11

INVERTER

GoodWe Inverters Flawless Operation under Harsh...

INVERTER

Quad-core Inverter, Smart and Powerful Inverter

26 BUSINESS & FINANCE

Azure Power Closes Financing Deal of ~US$ 88 million...

BUSINESS & FINANCE

Saudi Arabia, BP eye major Indian solar play

Disclaimer,Limitations of Liability While every efforts has been made to ensure the high quality and accuracy of EQ international and all our authors research articles with the greatest of care and attention ,we make no warranty concerning its content,and the magazine is provided on an>> as is <<basis.EQ international contains advertising and third –party contents.EQ International is not liable for any third- party content or error,omission or inaccuracy in any advertising material ,nor is it responsible for the availability of external web sites or their contents The data and information presented in this magazine is provided for informational purpose only.neither EQ INTERNATINAL ,Its affiliates,Information providers nor content providers shall have any liability for investment decisions based up on or the results obtained from the information provided. Nothing contained in this magazine should be construed as a recommendation to buy or sale any securities. The facts and opinions stated in this magazine do not constitute an offer on the part of EQ International for the sale or purchase of any securities, nor any such offer intended or implied Restriction on use The material in this magazine is protected by international copyright and trademark laws. You may not modify,copy,reproduce,republish,post,transmit, or distribute any part of the magazine in any way.you may only use material for your personall,Non-Commercial use, provided you keep intact all copyright and other proprietary notices.If you want to use material for any non-personel,non commercial purpose,you need written permission from EQ International.

November Part-A 2018

INDIA

SECI’s auction for 5GW solar manufacturing gets one bidder...

Shri RK Singh launches award scheme under ‘Saubhagya’

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INTERVIEW

WORLD BANK REPORT

Where Sun Meets Water Floating Solar Market Report...

WITH Mr.Raman Nanda

CEO , SB Energy

43 41 DISTRIBUTED SOLAR

SKODA AUTO India Inaugurates 980 KW Advanced Solar Power Generation

BUSINESS & FINANCE

Azure Power Announces Pricing of Public ...

DISTRIBUTED SOLAR

Financers, Bankers and Economists Discuss Measures ...

INDIA US keen to invest in India’s infra, port, solar sector development: OPIC

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Rising electricity demand in India leading to costlier...

BUSINESS & FINANCE

ThomasLloyd acquires significant stake in...

15 08

RESEARCH & ANALYSIS

BUSINESS & FINANCE Greenko Energy signs pact to acquire assets of Skeiron

EQ NEWS Pg. 07-39

PRODUCTS Pg. - 77

BUSINESS & FINANCE IREDA Signs MoU with REC

November Part-A 2018

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November Part-A 2018

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INDIA

SECI’s auction for 5GW solar manufacturing gets one bidder

Oriano Solar Fastest Growing Technology Firm From Maharashtra: Deloitte

As per the tender document, the bidders were allowed to bid for a minimum capacity of 1GW of manufacturing linked to 2GW of assured off take of power.

Mumbai-based solar solutions company, Oriano, has emerged as fourth fastest growing technology company pan India on the Deloitte Technology Fast 50 India 2018, a ranking of the 50 fastest growing technology companies in India.

tate-run Solar Energy Corporation of India (SECI) got poor response to its tender for 5GW/year solar manufacturing here as only one bidder Azure Power turned up for the auction. The SECI being the nodal agency of the government had invited bids for selection of solar power developers for setting up of 5GW (Per Annum) solar manufacturing plant linked with power purchase agreements (PPAs) for ISTS (Inter State Transmission System) connected Solar PV Power Plant.

“The auction for the solar manufacturing of 5GW capacity got poor respose as only one bidder Azure Power turned up for bidding,” a source said. As part of the government’s targets of achieving a cumulative capacity of 100 GW Solar PV installation by 2022, the SECI had invited bids from developers. It was a tariff based competitive bidding followed by e-Reverse Auction. As per the tender document, the bidders were allowed to bid for a minimum capacity of 1GW of manufacturing linked to 2GW of assured off take of power. However, the bidders were free to bid for the entire 5GW manufacturing, linked to 10GW Power Plant for which assured offtake was given. The slab for bidding was 1GW each and capacity(ies) was to be allocated on bucket filling basis.The SECI was to enter into PPA with successful developers for a period of 25 years. The maximum tariff was capped at Rs 2.93/unit for 25 years.

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eadquartered in Mumbai, Oriano is the only company from Maharashtra to make it in Top 5, making it fastest growing technology company in the Maharashtra region. Rankings are based on percentage revenue growth over three years. Oriano grew 3431% percent during this period.

Attracting enough customers to attain such fast growth over three years makes a strong statement about the quality of a company's product and its leadership," said Rajiv Sundar, Program Director - Technology Fast 50 India 2018 and Partner, Deloitte India. "We congratulate Oriano on being ranked No. 4 on the 50 fastest growing technology companies in India.

Founded in June 2015 by Sachin Jain, Yeshwant Rao and Sameer Shah, Oriano is funded by leading Venture Capital and Venture Debt investors viz. Samridhi Fund (backed by UK's DFID, SIDBI, LIC and UIIC) and Caspian Impact Investments. Oriano Solar is a leading solar solutions company for Industrial units, SMEs and Utility-Scale developers and has 350 MW+ of solar projects executed and under development, driving social impact and sustainability across industries and educational institutes in India and helping them reduce their energy cost. These projects have created over 2,200 construction jobs at the bottom of the pyramid. Also, it has helped to reduce 10.8 million metric tons of annual carbon offset and it is equivalent of planting 5.75 million trees and meeting electricity demands of 198,512 Indian households. Oriano was awarded #1 'Solar PV EPC company of the year 2018 (50-100 MW)' by India Solar Week Awards. Prior, Oriano was selected as 'Energy Startup of the Year 2016' Award from Entrepreneur India and 'TECH30' company of the year 2016 by Yourstory.com. Oriano is also developing products in B2C consumer space in off-grid energy access, SME Rooftops, Smart LED Lighting, MicroGrid and Distributed Solar Home kits powered by Data Analytics and Android platform. Oriano has an advancestage pipeline of more than 200 MW of solar projects in the next financial year.

November Part-A 2018

INDIA

No impact on India of US exit from Paris climate deal: Top official

US keen to invest in India’s infra, port, solar sector development: OPIC

India asserted that it is not in favour of reopening the Paris accord on Climate Change and said the negotiations on the issue are not facing any adverse impact of the Trump administration pulling out of it.

OPIC is a self-sustaining US government agency that helps American businesses invest in emerging markets

“There has been some talk of reopening some of the clauses of the Paris agreement. India is not in favour and that is largely accepted. If the US is with us, it strengthens the climate change negotiations, but I don’t think we’re having an adverse impact as far as our negotiations are concerned,” Union Environment Secretary C.K. Mishra told reporters.

The US government’s development finance institution OPIC is keen to invest in the development of India’s infrastructure, port and solar energy sectors, a top US official said Tuesday.

Overseas Private Investment Corporation (OPIC) Executive Vice-President David Bohigian, who is visiting India, further said that India is a clearly the anchor of US government’s Indo-Pacific strategy.

“In all our negotiations that we are having , the US is a part of the negotiation work. They are still with us on the negotiations,” he said.

is remarks came at a briefing by the External Affairs Ministry ahead of the first General Assembly of the International Solar Alliance starting here . Mishra also welcomed the United Nations announcement to confer Prime Minister Narendra Modi with its highest environmental honour, the Champions of Earth award, for his leadership of the International Solar Alliance and pledge to eliminate single use plastic in India by 2022. “It is a rare honour for India as it’s the first time that India is getting an award in Policy Leadership field,” he said. The award was announced on September 26 in New York and would be given to Modi on Wednesday by UN’s Secretary General António Guterres.“It is a recognition of India’s leadership in environmental field in the last few years,” he said. Mishra added that India was steadily moving in the direction of its commitment to have 175 gigawatt of renewable energy being produced in India by 2022, and added that having 100 GW of solar power was a major part of that.

External Affairs Ministry’s Economic Relations Secretary T.S. Tirumurti said the award, to be jointly given to Modi and French President Emmanuel Macron, was a “global recognition of work done by India especially in realm of solar power and renewable energy”.

November Part-A 2018

PIC is a self-sustaining US government agency that helps American businesses invest in emerging markets.“We are looking across all

sectors (of India for investment) including infrastructure development, port development and solar energy sector, not just in venture capital,” Bohigian said in an interaction with reporters. He, however, added that OPIC does not have any numerical target for investments in India, and the development finance institution is looking at the merits of the projects in India. “We are proud to announce

our investments in Iron Pillar, a midstage India-focused venture capital fund,” Bohigian said.

He also noted that when countries take development finance from any source, then the policymakers must ensure sovereignty of the host country, rights and transparency in project funding. Bohigian said the OPIC has $23 billion portfolios across 90 countries in the world in every sector from small, medium size ventures up to major infrastructure projects. In India, it has around 40 projects with total investments valued at $1.5 billion, he added.

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November Part-A 2018

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INDIA

Shri RK Singh launches award scheme under ‘Saubhagya’ More than 1.65 Crore households connected since the launch ofSaubhagya Shri RK Singh, Minister of State (IC) for Power and New & Renewable Energy announced an award scheme under Saubhagya to felicitate the DISCOMs / Power Department of the States and their employees for achieving 100 per cent household electrification in their area of operations. Awards would be provided for achieving 100 per cent household electrification at DISCOM/ Power Department level of the States.

ight States which have already achieved more than 99 per cent household electrification prior to launch of Saubhagya (Andhra Pradesh, Gujarat, Goa, Haryana, Himachal Pradesh, Kerala, Punjab and Tamil Nadu), are ineligible for participation under the award scheme. All the remaining States and their Discoms are eligible for the award. Award will be given in three categories, (i) DISCOMs / Power Departments of Special Category States (which includes seven North Eastern States, Sikkim, J&K and Uttarakhand); (ii) DISCOMs / Power Departments of other than Special Category States (which includes Bihar, Chhattisgarh, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Telengana, Uttar Pradesh and West Bengal)having more than 5 Lakh un-electrified households and (iii) DISCOMs / Power Departments of other than Special Category States having less than 5 Lakh unelectrified households. There will be two quantum of award in each of the three categories. Under first quantum of award, the 1st DISCOM / Power Department to achieve 100per cent household electrification by 30th November 2018 would be provided cash award of Rs. 50 Lakh. The Principal Secretary (Energy/ Power) of the State will devise the mechanism to distribute this cash prize amongst employees of the concerned DISCOM / Power Department. From this amount, Rs. 20 Lakh will be given to the division of DISCOM / Power Department with highest number of households electrified. Certificate of appreciation would also be given to five officials of concerned DISCOM/Power Department of any level from managing Director to Lineman to be nominated by the Principal Secretary (Energy / Power) of the States. Government of India launched ‘Pradhan Mantri Sahaj Bijli Har Ghar Yojana’ (Saubhagya) in Sept. 2017 to achieve the goal of universal household electrification in the country by 31st March 2019. The scheme envisages to provide last mile connectivity and electricity connections to all remaining households in rural as well as urban areas. With the support of State Power Departments and DISCOMs more than 1.65 Crore households have already been connected since the launch of scheme. All the States have shown confidence in achievement of the target much before the targeted timelines.

November Part-A 2018

Hon’ble C.M. of Maharashtra inaugurates EESL’s 200 MW Small Solar Power Plant in Maharashtra under “Mukhyamantree Saur Krishi Vahini Yojna” Hon’ble Chief Minister of Maharashtra Shri Devendra Fadnavis, inaugurated the EESL’s prestigious and first of its kind innovative 200 MW small solar power plant program in Maharashtra from Mantralaya, Mumbai.

he 200 MW small solar power plants are being developed by EESL & MSEDCL on the vacant / unused/ open lands of MSEDCL/MSETCL substations in Maharashtra under “Mukhyamantree Saur Krishi Vahini Yojana” for solarisation of Agriculture Feeders. As a part of the scheme, about 11 solar projects with a cumulative capacity of around 10 MW spread in Nashik, Nagpur, Aurangabad, Dhule, Latur and Wardha districts were inaugurated by the Hon’ble Chief Minister of Maharashtra Shri Devendra Fadnavis. The inaugural function was also attended by dignitaries Shri Chandrashekar Bawankule, Energy Minister, Shri. Chandrakant Patil, Ministry of Revenue Relief & Rehabilitation, Shri. Sudhir Mungantiwar, Ministry of Finance planning & Forest, Hon. Shri. Madan Yerawar, Ministry of state – New and Renewable Energy. Maharashtra State Electricity Distribution Company Limited (MSEDCL) and Energy Efficiency Services Limited (EESL) had signed a Power Purchase Agreement for installation of 200 MW small solar power plants. Under this program, EESL is providing turnkey engineering, procurement and construction services for power projects of size ranging from 0.5 MW to 2 MW. EESL is also providing operation & maintenance services for each of the power plants for a period of 25 years. Power generated from these small solar power plants would be fed to Agri. Feeders, this in turn, will benefit the farmers, DISCOM and the nation in following ways:

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INDIA

• Quality and reliable day time electricity to farmers • Savings on the Transmission network cost, reduced T&D losses for DISCOM • Contribute to the nation’s vision of 100 GW solar capacity by 2022 and will act as a catalyst to enhance India’s position as a global green power

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This 200 MW small solar plant program will generate around 300 million units of electricity every year and will reduce emissions by approx. 0.293 million tonnes per year. Commenting on the successful commencement of the program, Mr. Saurabh Kumar, Managing Director, EESL said, “We are honoured to be associated MSEDCL with this prestigious program. This is yet another milestone in our quest to become a sustainability driven company, committed to exploring clean energy solutions. Renewable energy is the best way of mitigating the impact of climate change.”

Speaking on the occasion Hon’ble Chief Minister of Maharashtra Shri Devendra Fadnavis said “The solarization of Agricultural feeders is a unique project in the country, farmers are the major beneficiaries of the program as they will have access to the quality electricity during the day time. As the projects are going to be developed in the MSEDCL substation premises, the Transmission and Distribution (T&D) losses are also avoided by MSEDCL.”

November Part-A 2018

BUSINESS & FINANCE

Risen Energy accelerates overseas expansion with signing of contract for first PPA project in Vietnam China-based PV module manufacturer Risen Energy recently announced that the company has signed a contract for a 61 MW power purchase agreement (PPA) project in Ninh Thuan with Tasco, a Vietnam-based company.

he project is Risen Energy’s first PV power station in Vietnam as well as one of the first PPA projects in the country. The project will play a benchmarking role in the Chinese company’s future expansion into Vietnam. Construction of the facility is expected to start in mid- or late September, with local government leaders from Ninh Thuan and top management executives from Risen Energy, including its president Wang Hong, scheduled to attend the groundbreaking ceremony. With Vietnam’s economic reform in full swing, the country has experienced an average growth rate of 17% in energy demand over the last few years. The country now relies heavily on hydro and thermal power to generate electricity. Yet, solar energy reserves abound, with an average daily solar radiation of 5 kWh per square meter, making Vietnam a PV power market with huge potential. In addition, the government is also aggressively driving development of the PV market. According to the national electricity master plan put in place by the government in 2016, PV installation capacity is expected to reach 850 MW by 2020, 4,000 MW by 2025 and 12,000 MW by 2030. Risen Energy plans to take full advantage of the development opportunities in the country’s emerging PV market, accelerating its expansion plans there. The company has already established a Vietnam-based subsidiary, aggressively investing in the establishment of power stations across the country, where there are apparent geophysical advantages, and offering local companies an opportunity to participate in the engineering, procurement, and construction (EPC) component of its projects. Risen Energy explained that the Ninh Thuan facility will be outfitted with 330 W high-efficiency polycrystalline modules as they are more suited to local environmental conditions and construction needs, laying an important technological foundation for the project’s successful construction and operation. The project is on schedule to be connected to the grid in 2019.

Risen Energy said, “This is Risen Energy’s first project in Vietnam as well as one of the first PPA projects in the country. Risen Energy’s participation in the project will allow the market to fully understand our core advantages, including technologies and experience in EPC. Vietnam is an important emerging market for the company. Through participation in the construction, we will gain precious experience in how to plan and execute a project in Vietnam, creating a development model that can be used as a reference for future endeavors. The highly efficient operations and management model deployed by the company’s team and the superior quality of the power station will improve the level of confidence that local companies have in the Risen Energy brand and the quality that it stands for, increasing possibilities for further collaboration between them and ourselves.” Source: Risen Energy Co., Ltd

November Part-A 2018

IREDA Signs MoU with REC Indian Renewable Energy Development Agency Ltd. (IREDA) and Rural Electrification Corporation Ltd. (REC) signed a Memorandum of Understanding (MoU) for working together to promote Renewable Energy development across the country.

he MoU was signed by CMD, REC Dr. P. V. Ramesh and CMD, IREDA Shri K S Popli in the presence of Hon’ble Minister of State (I/C) Power and New & Renewable Energy Shri R K Singh and Secretary, MNRE Shri Anand Kumar on 26th September 2018 in MNRE, New Delhi. To achieve the goal of 175 GW of renewable energy by 2022 provides a huge opportunity for all stakeholders including landers to be part of the green growth of the country. Financing of around 100 billion dollars would be required in next four years to meet the RE target. In this regard, REC and IREDA have come together to take advantage of huge opportunity provided by RE and to meet the financing requirement of the sector.

While signing the MoU, Mr. Popli said, by coming together REC and IREDA can address substantial financing requirement for the sector seamlessly, at a time when need for financing large projects would grow exponentially in coming years. CMD, REC Dr. P.V. Ramesh said This is a new milestone for us in our quest to promote sustainable development and focus on green energy solution. This is a transformational opportunity for REC and IREDA to work together forming a perfect synergy between both the organisation. Source: psuconnect.in

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November Part-A 2018

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BUSINESS & FINANCE

Aditya Birla Finance receives Rs. 1,000 Crore, 7-year ‘green’ loan from IFC IFC, a member of the World Bank Group, has extended a 7-year long term loan of Rs. 1,000 crore to Aditya Birla Finance Ltd. (ABFL), the NBFC arm of Aditya Birla Capital Limited (ABC).

BFL is a well-diversified non-banking finance company (NBFC) with a long term credit rating of AAA from both ICRA as well as India Ratings. ABFL will use the proceeds to finance renewable energy projects and help the country move towards its target of 175 GW of renewable energy capacity by 2022. The IFC green loan, sanctioned in March 2018, is an Indian rupee loan under Track III of the Reserve Bank of India’s guidelines for external commercial borrowings. India’s power sector is one of the largest in the world, but the country’s per capita consumption of electricity is less than a fourth of the global average. The government wants to provide electricity 24×7 to the entire country by 2019, while minimizing the impact on the environment. For that, it plans to increase the renewable energy capacity to 175 GW, comprising solar, wind, biomass, and small hydro, by 2022.

We are delighted to partner with IFC, with which we have a very good relationship. This is not just about a loan but also about being able to access the expertise that IFC has in this area and together making a small difference to the energy requirements of our country, said Mr. Ajay Srinivasan, Chief Executive of Aditya Birla Capital. With this funding, IFC will help ABFL develop its renewable energy program by providing longer-tenor financing, knowledge sharing, and setting of standards. IFC brings to the partnership its deep understanding of the renewable energy sector.

India is yet to have its entire population covered by 24X7 electricity, which is a critical development gap we want to help bridge in a manner that is friendly to the environment. Aditya Birla Capital’s business mix and market presence are aligned to our priorities and we consider the company a potential strategic partner in development, said Jun Zhang, country head, International Finance Corporation, India. The project complements IFC’s India Country Strategy for FY2017-2021, which commits to enabling electricity access for 60 million people, creation of 25 GW of installed renewable capacity, and contributing 11 percent to the total energy-related greenhouse gas avoidance potential.

BELECTRIC expands its footprint in India’s Solar Industry BELECTRIC as EPC and O&M provider awarded for large-scale project with a capacity of 250 MW-AC. Construction works are expected to start in November this year. BELECTRIC, a German based company, further increases its footprint in the ever-growing solar PV industry of India by securing a major contract for a large-scale solar project. India is not only one of the largest PV markets but also one of the most challenging. That’s why we are particularly proud to have been awarded a contract for a 250 MW-AC solar plant by Fortum Solar India Private Limited, explains Ingo Alphéus, CEO of BELECTRIC Solar & Battery GmbH. “It is also by far the most sizeable project we have won so far from a third-party customer. Together with the 349 MWp (250 MW-AC) project Limondale, which we are starting to build for our parent company innogy SE in Australia, this underpins our strong position in large-scale EPC and O&M for ground-mounted PV. Jitendra Singh, CEO & Managing Director of BELECTRIC Photovoltaic India Pvt. Ltd, adds: We are delighted to be awarded the contract for this new project in Karnataka which is going to be the largest capacity installation we have done in India. This project includes five sites in a solar park totaling to 250 MW-AC and we plan to start construction next month. This new contract in addition to our two large rooftop projects under construction in India proves again that we are highly competitive in today’s market and that our costumers recognise our high health and safety as well as quality standards. Source: belectric

November Part-A 2018

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BUSINESS & FINANCE

Greenko Energy signs pact to acquire assets of Skeiron

Greenko Energy Holdings, a renewable energy company, announced recently that it has signed a pact to buy the assets of Pune-based Skeiron Green Renewables in Andhra Pradesh and Karnataka.

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Also, Greenko said it has already acquired Orange Renewables as was proposed in June, a senior official of Greenko said. The combined deal of Orange and Skeiron would add 1,300 MW of wind and solar power to the overall operational capacity of Greenko to 4.5 GW of wind, solar and hydroelectricity, a press release said. Greenko has an additional capacity of generating over 8 GW from integrated renewable energy projects, which would take the total operating capacity to about 12 GW to become a leader in the new energy sector in the country, the release said. “The deal will add nearly USD 200 million to EBITDA (earnings before interest, tax, depreciation and amortisation) of Greenko in the first full year after close, with further accretion and growth anticipated thereafter,” it said. The proposed acquisition of the assets of Skeiron and Orange Renewable was expected to drive capacity, revenue, EBITDA and overall earnings growth potential of Greenko and its stakeholders, the release said.

Greenko has been focusing on building integrated renewable energy assets with storage, which can compete with conventional energy assets like thermal in quality, quantity and cost, the release quoted managing director and chief executive officer of Greenko Anil Chalamalasetty as saying.

November Part-A 2018

BUSINESS & FINANCE

ReNew Power Expands Leadership Team Announces Three Strategic Hires ReNew Power Limited, India’s largest renewable energy IPP in terms of total energy generation capacity, announced the hiring of three senior executives who have joined the organization in leadership roles.

hese strategic appointments are in line with the company’s continued focus on strengthening its management team. ReNew announced the appointments of Mayank Bansal as President – Strategy & Operations, Varun Sivaram as Chief Technology Officer, both to be based out of its Gurugram office, as well as Stephen O’Rourke, who has joined as Managing Director, ReNew North America and will be based at the company’s recently set up international office in San Francisco, California . Mayank will be responsible for developing the current and future strategy of the company and all capital allocation decisions. He has close to 20 years of consulting experience across verticals like Automobile, Metals & Mining, Infrastructure and Consumer Goods. Prior to joining ReNew, he had served as a Partner with AT Kearney and has also worked with Mckinsey & Co. and Hindustan Unilever. He is an Electrical Engineering graduate from IIT Bombay and an MBA from ISB Hyderabad. As CTO, Varun will be responsible for understanding and integrating new technologies in existing lines of business, identifying new streams of technology enabled opportunities and building a culture of technology innovation within ReNew. He has previously served as the Director of the Energy Program at the Council on Foreign Relations in Washington D.C., Senior Energy Advisor to the Mayor of Los Angeles and the Governor of New York, and a consultant at McKinsey & Co. besides authoring a bestselling book – ‘Taming the Sun: Innovations to Harness Solar Energy and Power the Planet’. He is a Rhodes and a Truman Scholar, and holds a PhD in condensed matter physics from St. John’s College, Oxford University. Stephen will be driving ReNew’s business in the US market, which the company has recently entered. He joins ReNew Power from Capitas Energy where he served as the cofounder and Managing Partner helping them source, advance and sell more than 300MWac of mid-stage and greenfield utility scale projects in less than 2 years. He has previously held senior positions in organizations such as SunEdison, Deutsche Bank Securities and Applied Materials Inc. Stephen has graduated in Electrical Engineering from the US Naval Academy and also holds a Masters degree in Nuclear Engineering.

Commenting on these appointments, Mr Sumant Sinha, Chairman and Managing Director, ReNew Power, said, “We are pleased to welcome Stephen, Mayank and Varun to the leadership team. These senior level hires reflect our commitment to the goal of providing smarter and more efficient clean energy solutions. I look forward to our new appointees bringing in fresh ideas and rich experience to the organisation, adding a new dimension to our business

CDPQ increases its stake in Azure Power, an Indian leader in solar power, to 40% La Caisse de dépôt et placement du Québec (CDPQ), a long‑term institutional investor, announced it has increased its stake in Azure Power Global Ltd. (Azure Power), a leading player in solar energy, to 40% through a US$100 million contribution to the company’s recent capital raising. This new investment in Azure Power brings the total amount invested by CDPQ to US$240 million.

zure Power is one of India’s largest independent solar power producer with a pan-Indian portfolio of more than 3 GW spread across 23 Indian states. With its in-house engineering, procurement and construction expertise and advanced in-house operations and maintenance capability, Azure Power provides low-cost and reliable solar power solutions to customers throughout India. It has developed, constructed and operated solar projects of varying sizes, from utility scale, rooftop to mini & micro grids, since its inception in 2008.

Through this investment, we are reaffirming our commitment to Azure Power and our willingness to support its growth. Azure Power is a leader in the fast-growing sector of solar power in India, a priority market for CDPQ, and has a high-quality management team that possesses thorough knowledge of the industry. Furthermore, this transaction fits perfectly with CDPQ’s desire to contribute, as an investor, to a global low-carbon economy, said Mr. Emmanuel Jaclot, Executive Vice-President, Infrastructure at CDPQ. CDPQ’s successive investments into Azure Power since we went public on NYSE in 2016 are a strong testament of our leading solar power platform in India. CDPQ’s new investment enables our continued organic growth of highest quality solar power assets and our contribution towards realization of India’s Hon’ble Prime Minister’s commitment towards clean and green energy, said Mr. Inderpreet Wadhwa, Founder, Chairman and Chief Executive Officer at Azure Power. Source: Caisse de dépôt et placement du Québec

November Part-A 2018

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November Part-A 2018

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BUSINESS & FINANCE

ThomasLloyd acquires significant stake in SolarArise India Projects Pvt Ltd. thomasLloyd’s investment is expected to support the Company’s expansion of its solar energy capacity by approximately 250 MW. These projects will be a combination of government and state sector projects as well as selected private sector projects, benefiting from long-term power purchase agreements.

homasLloyd will join the existing founding shareholders, the European Initiative on Clean, Renewable Energy, Energy Efficiency and Climate Change related to Development SICAV SIF in relation to Global Energy Efficiency and Renewable Energy Fund (“GEEREF”), advised by the European Investment Bank Group, and Kotak Mahindra managed Core Infrastructure India Fund (“CIIF”), along with the founding management team. Following the investment, ThomasLloyd will become the largest shareholder in the Company. The co-founders being Tanya Singhal, Anil Nayar, and James Abraham, are experienced professionals, who have been pioneers in the Indian solar market since 2009. They helped shape the initial solar policies in India, expanded technical innovation in the industry, and pioneered the construction and finance of utility-scale solar plants. The existing portfolio reflects their strengths in technology, construction, and finance. James and Tanya previously worked for Boston Consulting Group where James was a senior partner and initial member of BCG India and Anil was formerly a senior partner at KPMG in both Canada and in India. The investment will be from ThomasLloyd Cleantech Infrastructure Holding GmbH, ThomasLloyd Cleantech Infrastructure Fund SICAV and ThomasLloyd SICAV-Sustainable Infrastructure Income Fund. This is ThomasLloyd’s first renewable energy investment in India, and beyond the current identified portfolio, ThomasLloyd has the scope to expand capacity in excess of 1GW of grid-connected solar for the fast-growing domestic Indian market.

November Part-A 2018

For ThomasLloyd, Nandita Sahgal Tully, Managing Director Merchant Banking, said: This partnership will fuel our ambitions to tap into the incredible opportunity in the Indian renewables sector and to be involved in the setup of greenfield solar assets across several states. Our strategy has always been to build a portfolio consisting of high quality, medium-sized, grid connected assets with long term diversified PPAs. We look forward to working with the management team and other stakeholders to achieve this target.

For ThomasLloyd, Chairman and Group CEO, Michael Sieg, commented: Building on our track record of impact investing in Southeast Asia we believe this is an important investment in addressing the growing energy needs of India in a sustainable and environmentally responsible manner. We support the Government’s renewable energy target outlined in their National Solar Mission of 100GW installed solar capacity by 2022. For Management, Founder and Director, Mr. Anil Nayar, said: We are excited to work with the ThomasLloyd Group. Their philosophy of quality and longterm value creation resonates with our own focus on technology, operations, and finance over the lifetime of the plant. We are looking forward to building together our portfolio and years of a partnership to serve India’s goals for a clean-energy future. Source: thomas-lloyd

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BUSINESS & FINANCE

The Public Investment Fund (PIF) Denies Claims of Shelving SoftBank Solar Project In response to claims in recent press reports, a spokesperson for the Public Investment Fund (PIF) stated that media articles claiming that work has been shelved with respect to SoftBank and Solar Projects are completely inaccurate.

he spokesperson added that the Public Investment Fund continues to work with the SoftBank Vision Fund, and other parties, on a number of large-scale, multi-billion dollar projects relating to the solar industry, which will be announced in due course. The announcement in March 2018 clearly stated that this includes solar generation projects and joint plans to develop large-scale solar panels manufacturing facilities in Saudi Arabia for solar power generation. This will be complimented by R&D and training components. These plans to develop a leading champion for the industry remain on-track and in-line with the timeline that would be anticipated for projects of this scale and ambition. Alongside this, the Kingdom is moving forward with the overall renewable energy strategy, through which Saudi Arabia aims to be a leading and reliable diversified supplier of renewable energy. In line with Vision 2030, the Ministry of Energy, Industry and Mineral Resources is undertaking a program in coordination with the Kingdom’s stakeholders to transform the power sector, and ensure it is more competitive, efficient and sustainable, underpinned by a strong pipeline for private sector participation. Source: Royal Embassy of Saudi Arabia, Information Office

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November Part-A 2018

BUSINESS & FINANCE

EESL’S UK SUBSIDIARY, EDINA, SIGNS INR 155 CRORE ORDER WITH STERLING & WILSON, INDIA’S LARGEST EPC SOLUTIONS PROVIDER Edina UK Ltd – the leading supplier, installer and maintenance provider for combined heat and power (CHP), gas, and diesel power generation solutions in the United Kingdom (UK) – that was acquired by Energy Efficiency Services Limited (EESL) and its UK subsidiary EnergyPro Assets Limited’s (EPAL) earlier this year has signed an agreement worth £17 million (INR 155 crore) with Sterling & Wilson Cogen Solutions Pvt Ltd. (SWCOGEN), a group company of Sterling & Wilson, India’s largest EPC solutions provider.

s part of the agreement, which has been enabled with EESL’s financial backing, Edina UK will requisition gas engines by MWM and generator units with 90 MWe capacity to support Sterling and Wilson’s ongoing effort to scale the market for Short Term Operating Reserves (STOR) in the UK. The engines and generators shall be provided by Edina by September 2019 and will enable Sterling and Wilson to build the market for independent power generation.

Rajesh Shah, CEO –SWCOGEN said There is a growing demand for gas based power as one of the key alternate energy solutions. We are delighted to partner with EESL to build Short Term Operating Reserves (STOR) in UK market which is one of our potential markets globally. This joint cooperation between the two companies will also address CHP opportunities in India. The framework agreement for 90 MW between SWCOGEN UK branch and Edina UK follows the initial agreement in March 2018 when Edina agreed to supply SWCOGEN UK branch with gas generating units to develop capacity market projects for 20 MW of electrical power. The UK-based projects are aimed to supply power to the UK national grid for peak demand applications under the National Grid driven Capacity market program, where SWCOGEN will provide complete wrap EPC to its own group company investing in multiple sites. EESL expects that UK-based servicing opportunities with Indiabased clients, like Sterling & Wilson, will help it scale the Indian and international trigeneration markets. Through the £55 million (INR 493 crore) acquisition of Edina – the first-of-its-kind venture by an entity under the Ministry of Power – EESL intended to bring CHP technology to India, providing an integrated service offering to industries that would include equipment maintenance, and electricity, heat and power supply at no upfront costs for technology installation. EESL and Edina have received an encouraging response to their efforts to scale India’s trigeneration and CHP markets and expect to convert projects of INR 150 crores in the financial year 2018-19. EESL has a proven track record of forging new frontiers in global energy efficiency services markets. The company has taken its market transformation business models to the UK, South Asia and South-East Asia. Energy efficiency initiatives implemented by EESL have cumulatively led to energy savings of over 41 billion kWh and a reduction of over 32 million tonnes of greenhouse gas (GHG) emissions across the globe.

November Part-A 2018

Source: edelman

Sterling & Wilson Eyes 200 MW Solar PV Projec- ts in Kazakhstan Sterling and Wilson, World’s leading solar EPC company, has announced its plans to enter Kazakhstan. The company is targeting EPC for Solar PV projects of capacity 200 MW in Kazakhstan till 2020. The country is expected to receive bids for 180 MW of Solar PV in the month of October. This is part of the series of tenders announced by Kazakhstan government in the beginning of the year.

azakhstan is aiming at reducing its dependency on fossil fuel power generation to alternative energy. The country is working towards increasing the share of renewable energy in electric power generation to 3% by the year 2020 and to 10% by 2030.

Bikesh Ogra, CEO-Solar, Sterling and Wilson says, Though Kazakhstan has huge oil reserves, growing energy consumption is one of the drivers behind the growth of renewable energy. International Energy Agency has predicted the demand for energy in the country to double up by the year 2035. The Central Asian country’s growing concern of climate change is also one of the factors for the switch to renewables. Sterling and Wilson is exploring all options to support the country in meeting its renewable energy targets. Sterling and Wilson has a subsidiary company in Kazakhstan with category I license. The local company would be responsible for execution of Solar PV projects. Sterling and Wilson, today, is actively present in Asian continent outside India, with over 50 MWp of solar PV plants operational in Philippines powering more than 30,000 homes, and another 60 MWp project is in commissioning phase in Bangladesh. Sterling and Wilson, today, has to its credit a total of close to 6.14 GWp of solar EPC portfolio in various geographies including Africa, Middle East, Asia, Australia, Latin America & USA. It is currently constructing 1177 MWp of Solar PV plant in Abu Dhabi which is the world’s largest single location Solar PV plant till date. It is building number of projects in Zambia, Egypt, Namibia, Niger, Jordan, Argentina, and Morocco.

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November Part-A 2018

BUSINESS & FINANCE

UK-based Pontaq to raise £50 mn in third fund Pontaq, a UK registered venture capital fund that invests in ventures involved in cross-border technology transfer between the UK and India, is in the process of raising its third fund, the UK India Innovation Fund 3, of £50 million.

he third fund is structured in such a way that for every £1 that it raises from investors, the UK government will contribute £1.5, subject to due diligence. The first fund was £1 million in size and the second fund, £5-10 million.

Pontaq is also in the process of raising the second fund, for which the UK government has provided tax breaks for UK tax payers investing in the fund, while Indian tax payers are allowed to invest through LRS (Liberalised Remittance Scheme) as approved by the RBI, according to Mahesh Ramachandran, based in India, and Prem Barthasarathy, based in the UK, both General Partners of the fund. They told BusinessLine that Pontaq has started investing from the second fund, while it will start deploying from the third fund after the UK Government puts in the money. The third fund has secured commitment of about £8 million so far. Of the proposed £50 million third fund, Pontaq will raise £20 million from external investors and the UK Government’s share will be £30 million. It will invest 70 per cent of the money in UK- and Europebased start-ups and the balance in ventures in rest of the world, which includes India.

Investment plan As in the first two funds, the third fund too will invest in three sectors – FinTech; emerging technologies such as IoT, AR/VR, AI and blockchain; and smart cities technology, including energy, waste, water and transport. According to Ramachandran, the third fund will come in at the pre-Series A and Series A stage of the ventures. It will invest £1-3 million, in multiple rounds. At the stage that Pontaq comes in, the start-up will have some kind of traction in the market, preferably a few paying customers or a really strong IP. At least three ventures in which Pontaq had invested in from its earlier fund were planning to enter India, while an IoT startup in India that Pontaq was appraising for an investment opportunity was looking to enter the UK.

India plans Pontaq, according to them, is also working on an Indiaspecific fund that will be registered with the Securities and Exchange Board of India as an alternative investment fund. This fund, apart from investing in the sectors that the UK India Innovation Fund 3 focusses on, will also look at healthcare and medtech as two additional sectors to back start-ups in. Barthasarathy said there was tremendous scope for these two sectors in India and they also tied in with the Smart Cities Tech focus of the third fund.

He said Pontaq would also look at an energy fund, one that would focus on the entire chain – rooftop solar for individual homes, to peer-to-peer sharing of electricity, to feeding excess power to the grid to charging of electric vehicles. Barthasarathy said Pontaq’s ultimate aim was to have a smart city, for which it had even decided the name – Anugraha, the name by which Pontaq is registered with the UK’s financial regulatory body. The plan was to invest £1 billion to support one million people, or, about 250,000 households. Source: thehindubusinessline

Apollo Global to buy $1 billion energy investments from GE Capital Apollo Global Management LLC on Monday agreed to buy a $1 billion portfolio of equity investments in energy assets from General Electric’s finance arm GE Capital, as the U.S. conglomerate looks to narrow its focus on its industrial roots.

G 26

E Capital’s energy portfolio has about 20 investments in renewable energy, contracted natural gas fired generation and midstream energy infrastructure assets, primarily in the United States, the U.S. private equity firm said in a statement. GE, which replaced its Chief Executive Officer John Flannery in a surprise move earlier this month with outsider Larry Culp, has been divesting assets worth billions from its finance unit since 2015 to focus on jet engines, power plants and renewable energy. Financial details of the deal, which is expected to close in the fourth quarter of 2018, were not disclosed. For Apollo, the deal comes amid a recovery in energy prices. Reuters reported in April

November Part-A 2018

that the private equity firm was seeking to raise more than $4 billion for its third natural resourcesfocused private equity fund. RBC Capital Markets, Goldman Sachs and Bank of Montreal provided financing to Apollo for the deal. Citigroup Global Markets Inc, RBC Capital Markets and Goldman Sachs were financial advisers to Apollo, while Bank of America Merrill Lynch and PJT Partners advised GE Capital. GE’s shares were up about 2.8 percent at $13.54 in early trading, while Apollo’s shares were little changed at $33.68. Up to Friday’s close, GE’s stock had risen about 16.7 percent since Sept. 28, the last trading day before the company announced Culp as the new CEO.

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BUSINESS & FINANCE

Azure Power Announces Pricing of Public Offering of 14,800,000 Equity Shares Azure Power Global Limited (“Azure Power” or the “Company”) (NYSE: AZRE) announced that it has priced its underwritten public offering of 14,800,000 equity shares (the “Offering”) at a public offering price of $12.50 per equity share.

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s part of this Offering, the Company has granted the underwriters a 30-day option to purchase up to an additional 1,200,000 equity shares at the public offering price, less underwriting discounts and commissions. The Company’s shareholders, CDPQ Infrastructure Asia Pte Ltd., IFC GIF Investment Company I and International Finance Corporation, have each indicated its intention to purchase up to approximately $100 million, $40 million, and $10 million, respectively, of the equity shares in the Offering at the public offering price. Indications of interest are not binding agreements or commitments to purchase; therefore, CDPQ Infrastructure Asia Pte Ltd., IFC GIF Investment Company I and International Finance Corporation may each determine to purchase a smaller amount or not to purchase any equity shares in the Offering. The Offering is expected to close on October 10, 2018, subject to customary closing conditions. Azure Power’s equity shares are listed on the New York Stock Exchange under the symbol “AZRE.” Credit Suisse Securities (USA) LLC, Barclays Capital Inc. and HSBC Securities (USA) Inc. are acting as joint lead book-running managers. SG Americas Securities, LLC is acting as a book runner. JMP Securities LLC, Roth Capital Partners and Janney Montgomery Scott, LLC are acting as co-managers for the Offering.

November Part-A 2018

BUSINESS & FINANCE

Saudi Arabia, BP eye major Indian solar play In what may further reduce India’s solar power tariffs, Saudi Arabia is interested in partnering with India for developing complementary supply chains as well as deploying finance and new technologies here. Also, Lightsource BP is betting big for developing solar power projects here through its partnership with the National Investment and Infrastructure Fund of India (NIIF).

We discussed with Indian leadership the opportunities to synergise our vision with India,” said Khalid A. Al-Falih, Saudi Arabia’s energy, industry and mineral resources minister at the India Energy Forum by CERAWeek. He added that the idea was to develop solar supply chains that complement each other as well as investing here in the space. l-Falih, who is also the chairman of world’s biggest oil producer Saudi Arabian Oil Co. (Saudi Aramco), met Prime Minister Narendra Modi during his meeting with top executives of global oil companies and experts from the energy sector. Saudi Arabia’s proposal comes at a time when India has pitched the International Solar Alliance (ISA) as a counterweight to Organization of the Petroleum Exporting Countries (Opec)—of which it is a prominent member. At the recently concluded first general assembly of the first treaty-based international government organization headquartered in India, Prime Minister Narendra Modi said that ISA will play a role similar to that of Opec.

“The lowest cost PV (photo voltaic) solar project is in Saudi Arabia. I think some of the developments in financing as well as future technologies that we will be developing in the Kingdom will be given priority hopefully to be deployed as part of India’s solar vision,” Al-Falih added.

November Part-A 2018

The announcement also assumes significance given that most solar power developers in India have been sourcing solar modules and equipment from countries such as China, where they are cheaper. Saudi Arabia plans to manufacture 200 gigawatts (GW) of photo voltaic capacity by 2030. India on its part has an ambitious 175GW clean energy target by 2022, of which 100GW is to come from solar projects. Mint reported on 14 June about the Public Investment Fund (PIF) of Saudi Arabia, which has invested in SoftBank’s Vision Fund and ride-hailing firm Uber, looking to invest in India’s infrastructure sector. Saudi Arabia is a crucial source of energy for India and hosts a number of expatriate Indians. PIF, which acts as the Kingdom’s main investment arm, plans to increase assets under management from around $230 billion to over $400 billion by 2020. Building “strategic economic partnerships” is among its key objectives. India has also emerged as one of the most favourable destination for renewable energy with investments of about $42 billion. According to the government, over the next four years, the green energy sector has business potential of around $70-80 billion. This in turn has attracted super-majors such as BP Group that has already made a $12 billion investment commitment in India till date.

We are working with a new company called Lightsource BP developing solar projects on a very-very large scale. So far, we have committed to a fund—Green Growth Equity Fund (GGEF) about $250 million of investment in solar projects. I believe that will get to be a billion dollar fund to develop solar,” said BP’s group chief executive officer (CEO) Bob Dudley at a press conference at the India Energy Forum . BP Plc owns a 43% stake in Lightsource BP, that has invested $3 billion across 2 GW of solar projects globally. The NIIF has partnered with the UK Government for GGEF, wherein they have committed £120 million each into the fund. EverSource Capital, an equal joint venture between Everstone Group and Lightsource BP is GGEF’s fund manager, that plans to raise £500 million from international institutional investors. These announcements comes in the backdrop of India registering record low solar tariff of Rs2.44 per unit making it imperative for solar power developers for obtaining finance at the lowest cost. Also, SoftBank Group Corp. CEO’s Masayoshi Son offer to supply free electricity to International Solar Alliance member countries, including India, once its contracts to supply power in these countries expire after 25 years is expected to bring further disruptions to an already highly competitive sector. By 2030, India plans to meet 40% of its electricity needs from non-fossil fuel sources. This assumes significance in a country that is now the biggest emitter of greenhouse gases after the US and China, and is among countries most vulnerable to climate change. India plans to reduce its carbon footprint by 33-35% from its 2005 levels by 2030, as part of its commitments to the United Nations Framework Convention on Climate Change adopted by 195 countries in Paris in 2015.

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November Part-A 2018

14.08.18 14:28

BUSINESS & FINANCE

JA Solar Supplied All Modules for the First Largescale Solar Power Plant in Bangladesh JA Solar Holdings Co., Ltd., a world-leading manufacturer of highperformance photovoltaic products, announced that it had supplied all solar modules for Bangladesh’s first large-scale solar power plant with an installed capacity of 28 MW.

Azure Power Closes Financing Deal of ~US$ 88 million Ahead of Schedule Azure Power (NYSE: AZRE), one of India’s leading independent solar power producers, announced it closed a financing deal of INR 6 billion (~88 USD million) for its 200 MW solar power plant in Bhadla, Rajasthan ahead of schedule.

he project is located in Teknaf and was successfully connected to the utility grid in September 2018. Given the frequent blackouts in the region, the construction of the solar power plant will help alleviate power shortages as the power generated from the plant can meet 80% of the electricity demand in the area. Meanwhile, the solar plant is expected to reduce carbon dioxide emissions by 20,000 tons per year when compared with the diesel power plant of the same scale. The Bangladeshi government intends to generate 2,000 MW of electricity through solar power by 2021. This project is the first step for the government to implement its new energy plan, and is of great significance in the development of new energy in the country. The project is near the largest river in the region, and is within 1km of the coast. Year-round hot, humid and windy climate as well as saline and alkaline soil result in stringent requirements for solar module performance. JA Solar’s solar modules have passed rigorous long-term reliability and environmental adaptability tests, and have excellent resistance to PID attenuation, salt spray corrosion and wind pressure, and can maintain high-efficiency stable power output on a long-term basis. The project was constructed by Technaf Solartech Energy Limited (TSEL), a subsidiary of Joules Power.

Nuher Latif Khan, Managing Director of TSEL, said, “JA Solar’s modules have distinct advantages in electricity generation, and the electricity output generated from the solar power plant has gone far beyond our expectations.” Mr. Baofang Jin, President and CEO of JA Solar, said, JA Solar will continue to focus on technological innovation and product quality improvement to meet the diverse needs of our global customer base and promote the development of renewable energy globally.

Source: JA Solar Holdings Co., Ltd.

November Part-A 2018

he project was won through an auction conducted by Solar Energy Corporation of India (SECI), a Government of India enterprise and a company with a AA+ domestic debt rating by ICRA, a Moody’s Company. The solar plant will be set up at Bhadla Solar Park in Rajasthan and is likely to be commissioned in 2019. Azure Power has a long history of developing and operating solar power plants with SECI. In 2015, Azure Power developed a 100 MW solar power plant outside a solar park in the state of Rajasthan, which was SECI’s first allocation and also the largest solar power project under India’s National Solar Mission at commissioning. Today, Azure Power stands with over 1,000 MW portfolio with SECI.

Speaking on this occasion, Inderpreet Wadhwa, Founder, Chairman and Chief Executive Officer, Azure Power said, We are pleased to announce the closing of financing for our 200 MW plant in Bhadla. This financing is a testament to our strong financing, project development, engineering and execution capabilities. We are delighted to make this contribution towards realization of our Hon’ble Prime Minister’s commitment towards clean and green energy, through solar power generation.

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November Part-A 2018

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BUSINESS & FINANCE

Singapore’s IIX leads $1.66m Series A in Bangladesh solar energy rm SOLShare

RUMS calls bids for 1500 MW Solar Project in Madhya Pradesh

IIX Growth Fund, a social and environmental impact fund backed by Singapore-based Impact Investment Exchange (IIX), marks its first Bangladesh investment in SOLshare, which also received investment from Silicon Valley-based Innogy New Ventures and Portuguese utility firm EDP. IIX also supported SOLshare as a mentor in 2012.

Madhya Pradesh doubles the success of 750 MW Rewa Solar, with the call for bids for 1500 MW Solar Project in the state. The Rewa Ultra Mega Solar Ltd (RUMSL) has implemented the innovative 750MW Rewa Solar Project with historical outcomes.

OLshare, established in 2015 by Sebastian Groh, established the world’s first peer-topeer solar energy grid in remote area of Bangladesh. Its decentralised peer-to-peer microgrids deliver solar power to households and businesses, and enable them to trade their excess electricity for profit. “The propritary SOLbox energy meter allows for peer-to-peer electricity trading between offgrid households and micro-enterprises connected to solar panels. As more users connect over time, the SOLshare network grows in supply and distribution, empowering everyone to become solar entrepreneurs by selling excess energy,” SOLshare said. The company said it will use the fresh funds to increase access to clean energy for over 19,000 rural households and 14,000 micro-entrepreneurs, and address climate change by avoiding over 2,200 metric tons of carbon emissions by 2021.

The aim is to create efficient and dynamic local energy markets that empower households and encourage solar entrepreneurship – starting in Bangladesh, followed by India before the end of this year, and eventually on a global scale, Dr. Sebastian Groh, Managing Director of SOLshare. According to the company, Bangladesh has five million solar home systems installed more than any other country in the world. However, more than half of the country’s population has no access to electricity, and demand has reached nearly double the country’s generating capacity. “Bangladesh faces significant unmet energy needs as its power generation is dependent on limited energy sources—imported fossil fuel and natural gas. Furthermore, grid extension is not always feasible and in some cases technically challenging,” it said. Asia and the Pacific region is home to the majority of the world’s energy poor, with an estimated 700 million people without access to electricity. The IIX Growth Fund was launched by IIX to make direct equity investments in impact enterprises in select under-served emerging and frontier markets in South and Southeast Asia. It focuses on investments that are either owned by women or have a significant positive impact on women, address climate change issues and enable access to healthcare, education and other critical needs for marginalized communities. Source: dealstreetasia

November Part-A 2018

UMSL is a joint venture of government of Madhya Pradesh owned MPUVNL and Government of India owned SECI. RUMS has now issued notice inviting tenders for solar projects in 550 MW Agar Solar Park, 450 MW Shajapur Solar Park and 500 MW Neemuch Solar Park.The project is double the size of Rewa, is another major step towards fulfilling Prime Minister’s mission of 100 GW solar by the year 2022. RUMSL held a road show for launching the bidding process for the project on October 5, during the 2nd Global RE-Invest in New Delhi. In September, the state cabinet approved the project, underscoring the commitment of government towards green and cheaper power. During the road show, RUMSL will sign a term sheet with Indian Railways and Railways Energy Management Company Limited (REMCL) for procuring about 23% energy from the project, with Madhya Pradesh Power Management Company (MPPMCL) procuring the rest. Further, RUMSL will also sign an agreement under which IREDA will, for the first time ever, provide a long-term overdraft facility that would enable RUMSL to extend payment security to developers for the Rewa project. Principal secretary of new and renewable energy department Manu Srivastava informed that by mobilizing private investment of about INR 6330 crores or USD 875 million, the projects will further showcase Madhya Pradesh as a preferred investment destination.The project will repeat several features of the Rewa transaction. The project intends to be the second project in the country, after Rewa, to supply power to a big institutional customer, namely, Indian Railways.

Coal India, NLC India ink pact to set up JV for power generation CIL Chairman A K Jha had earlier said the company is optimistic about an aspirational production target of 652 million tonne for 2018-19. Coal India said it has entered into a pact with NLC India Ltd (NLCIL) to set up a joint venture for power generation. “Coal India Ltd (CIL) and NLCIL have signed a memorandum of understanding (MoU) for formation of a joint venture for solar power generation of 3,000 MW and thermal power projects of 2,000 MW capacity,” CIL said in a filing to BSE. The PSU accounts for over 80 per cent of domestic coal output.

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November Part-A 2018

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BUSINESS & FINANCE

Amp Closes C$200 Million Financing with ZOMA Capital to Fund Continued Growth Amp Solar Group (“Amp”), a leading global developer of flexible clean energy infrastructure, announced that it has closed C$200 million financing led by Colorado-based ZOMA Capital in order to continue the development, acquisition and build out of clean energy infrastructure assets in its core markets. PLEXUS Solutions acted as structuring and financial consultant on behalf of ZOMA Capital.

SolarEdge to Acquire Kokam, a Provider of Li-ion Cells, Batteries, and Energy Storage Solutions

ince its inception in 2009, Amp has successfully grown a portfolio of over 700MW of distributed generation and utility scale energy projects. Amp continues that growth with a development pipeline of over 2GW of projects in some of the world’s most attractive power markets, including North America, Japan, Australia and India.

We are very pleased to partner with ZOMA Capital to continue to drive our growing development platform,” said Dave Rogers, President and CEO of Amp. “This financing validates Amp’s position as a market leader, and allows us to accelerate our strong growth trajectory. We are proud of Amp’s proven track record, our world-class team and that our success means firms like ZOMA Capital want to be a part of our future. Amp’s efforts to transform the energy economy align with our dedication to investing in a more efficient, responsive, and modernized electric grid,” said Melissa Cheong, Chief Investment Officer of ZOMA Capital. “ZOMA is excited to support the team at Amp, who we believe will bring great renewables project development experience and expertise across geographies. Source: AMP

November Part-A 2018

SolarEdge Technologies, Inc. (“SolarEdge”) (NASDAQ:SEDG), a global leader in smart energy technology, announced today that it has entered into definitive agreements to acquire a major stake in Kokam Co., Ltd. Headquartered in South Korea, Kokam is a provider of Lithium-ion battery cells, batteries and energy storage solutions

ounded in 1989, Kokam has been manufacturing Lithium-ion cells and providing reliable, safe, high-performance battery solutions for the past twenty-nine years. Kokam provides battery solutions for a wide-variety of industries, including ESS (energy storage systems), UPS, electric vehicles (EV), aerospace, marine and more.

The acquisition of Kokam will enable us to grow our offering, adding already proven battery storage to our product portfolio,” said Guy Sella, CEO, Chairman and Founder of SolarEdge. “Our technological innovation combined with Kokam’s world-class team and renowned battery storage solutions, will enable seamless integration with our current solutions, taking us a further step toward making solar installations smarter and more beneficial. The acquisition of approximately 75% of outstanding equity shares of Kokam reflects an aggregate investment of approximately $88 million, including related transaction expenses. The transaction is subject to customary closing conditions and is expected to close in the coming weeks. Over time, the Company intends to purchase the remaining outstanding equity shares of Kokam that are currently listed on the Korean over the counter exchange through openmarket purchases and otherwise, eventually resulting in Kokam becoming a wholly-owned subsidiary of SolarEdge.

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RESEARCH & ANALYSIS

India to achieve 76% of renewable energy target by 2022: Wood Mackenzie Wood Mackenzie’s solar analyst Rishab Shrestha said India faces a myriad of challenges in the renewables industry. India may achieve about 76 per cent of the target of having 175 gigawatts of renewable power generation capacity by the scheduled date of 2022 as it faces myriad challenges, Wood Mackenzie said. India is targetting 100 GW of solar capacity and 75 GW of wind power by 2022. “Even with significant cost declines, Wood Mackenzie expects about 76 per cent of the target to be met by 2022 and this would still be a noteworthy achievement,” the world’s leading research and consultancy firm said in a report.

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Wood Mackenzie’s solar analyst Rishab Shrestha said India faces a myriad of challenges in the renewables industry. “The recent cancellation of auctions risks jeopardising investor confidence. Various duties on equipment and the associated uncertainty has led to a short-term uptick in solar prices. This leads to the knock-on effect on already cashstrapped state distribution companies who are showing an unwillingness to green light high priced solar projects,” he said. onetheless, the government’s commitment and support towards renewables remain strong. The government has been swift and adaptable at responding to various industry hurdles and are helping reduce project risks. As a result, renewable prices continue to remain competitive. Wood Mackenzie said combined wind and solar capacity have almost doubled from 2014 levels to 61 GW this year. “Driving this growth is the significant cost decline that auctions continue to deliver,” Shrestha said. “In the next five years, capital costs are expected to decline by 23 per cent for wind and 31 per cent for solar. This trend will only continue as new generation technologies replace old ones.”

Wood Mackenzie expected non-hydro renewables to make up 13 for per cent of power generation mix by 2023. Improving grid flexibility through storage and flexible power generation will be extremely crucial in achieving high levels of renewable penetration, it said, adding that economic competitiveness, technological maturity, and financially healthy off-takers will provide a solid base for renewable capacity growth to cater to electricity demand growth. “Over the longer-term horizon of 2040, India is forecasted to increase its renewable capacity by around seven times to 384 GW. This share will be driven by diverse sub-segments which include offshore wind, hybrid projects, floating solar and distributed solar. The 384 GW of non-hydro renewables will ultimately contribute 20 per cent of generation share by 2040,” Shrestha said.

Wood Mackenzie, however, said coal remains principal energy driver in near term. Its coal principal analyst Pralabh Bhargava said: “We have increased India’s imports for thermal coal from 158 million tonnes to 164 million tonnes in 2018 with a further upside risk of 3-4 million tonnes as coal stocks at Indian power plants and Coal India Ltd are at historically low levels”. India’s spot market prices, for both coal and power, are expected to remain strong in the coming months as continuous industrial production growth is pushing demand, while supply remains tight. “Growth in domestic coal production and dispatches can only partially meet the growing demand for coal, which is resulting in increased reliance on imports. With a decade-low stockpile at Coal India’s mines and more than half of the plants with a supercritical level of less than seven days’ stock, the reliance on imported coal for several power plants will increase the flow of imports into India,” Bhargava said. Until recently, the demand for imported thermal coal was driven by non-utilities, where a lack of domestic supply and the need for high-energy coal kept the segment active in the seaborne market. With the power sector increasingly relying on imports, Wood Mackenzie expected the rally in Indian imports to continue till early next year. It said industrial production in India has grown at an average of more than 7 per cent this year, leading to an increase in power generation by 6 per cent over January to August 2018. Cement production was up 16 per cent and steel production 4 per cent for the same period. “Policies to improve the power sector have started to have an impact. At the end of the financial year in March 2018, the performance of several states in reducing technical and commercial losses as well as increasing tariffs was improving. The government is looking to de-stress some power-generating units, which may result in improvements in load factors at several plants in the short-to-medium term,” it said. India’s rupee depreciating against US dollar from an average of 63.65 to a US Dollar in January 2018 to 73.56 in the first week of October has increased the costs of imports and only the lack of domestic coal availability is forcing companies to import. Source: PTI

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RESEARCH & ANALYSIS

How Renewables Lead to a World of Peak Energy It can be hard to get your head around just how much energy the world uses. Expressed in terms of oil, it was equivalent to almost 14 billion metric tons of the stuff in 2017.

hat’s like burning through all of Russia’s proved reserves in the space of 12 months, which is, in technical terms, a lot. But there’s an even trickier issue to ponder: What does it even mean to “use” energy? Granted, that sounds like something you might hear from a stoner at the engineering faculty. But it’s an increasingly important question as renewable energy and electrification expand. Harry Benham, an oil-industry veteran who now runs Carbury Consulting, wrote an elegant blog post this summer about the fundamental difference between thermal energy — mostly from burning stuff or splitting atoms — and what he calls the “universal energy” captured in wind and solar power. While earlier shifts, such as swapping wood for coal, are often called energy transitions, they were really substitutions of one thermal source to another. But wind and solar “are different energies in kind, not degree.” The big thing here is waste. Broadly speaking, when you burn a gallon of gasoline, perhaps only a quarter of the energy released actually goes into turning the wheels. The rest is wasted, mostly as heat. In other words, you buy roughly four gallons of gasoline to get the useful energy of one. Renewable energy doesn’t work that way, with wind turbines or solar arrays effectively capturing energy from the ether. Yes, they only convert a portion of the energy hitting them into electricity, but that energy is infinite and hasn’t had to be mined or pumped and transported. This presents an applesand oranges-problem for statisticians. Here are projections of global primary energy demand in 2040 from BP Plc and the International Energy Agency:

The estimates for thermal energy from fossil fuels and nuclear power are very similar. The “other renewables” bars are different largely because BP excludes some non-traded fuels that the IEA measures. The really interesting difference concerns hydro, solar and wind power. BP’s higher figure isn’t because it is more bullish on these. Rather, in order to make the renewables figures comparable with the ones for fossil fuels and nuclear power, BP grosses them up as if they also produced waste energy. The IEA doesn’t do this, so its figure represents just the energy derived from a solar panel, wind turbine, or hydro plant. The IEA figure is 36 percent of the BP one, similar to the 38 percent conversion factor BP uses to adjust the data.

November Part-A 2018

There are pros and cons to both approaches. The IEA’s reflects the fundamentally different nature of renewable energy, but at the cost of making its share of the market look very low: Solar and wind are 11 percent of BP’s mix in 2040 but less than 4 percent of the IEA’s. By far the biggest element in both forecasts, though, is the one you can’t see: waste. Here are BP’s projections, but with a few adjustments. First, I’ve grouped them into thermal sources (oil, gas, coal, nuclear, biomass and biofuels), hydro power, and wind and solar power. Then, I’ve assumed a flat conversion efficiency of 38 percent for the thermal sources (i.e., the amount of useful energy they produce). This is in line with BP’s assumed average for thermal power plants and is used across the board for the sake of simplicity:

This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners. Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal’s Heard on the Street column and wrote for the Financial Times’ Lex column. He was also an investment banker.

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RESEARCH & ANALYSIS The numbers aren’t exact, but the picture is clear: Perhaps 6070 percent of what we call primary energy isn’t usefully consumed at all. That’s a moot point when fossil fuels plus nuclear power dominate. Their sheer energy density (the power they pack into a small volume) combined with, in the case of fossil fuels, inconsistent or absent pricing of greenhouse-gas emissions, has made them dominant. Waste heat just comes with the territory. But as renewable energy falls in cost and makes inroads, especially in conjunction with increased electrification of things like heating and transportation, it becomes a far more interesting issue. Consider an electric car being charged mostly with power from renewable sources. If it replaces a car running on gasoline, then it doesn’t just displace the useful gallon turning the wheels, but also the other three that were just making the radiator do its job. In his blog post, Benham proposed a thought experiment, shifting some estimates around on energy consumption and the growth of solar and wind power. Using my broad assumption on conversion, BP’s projections imply useful energy demand — that is, excluding the implied waste — growing by almost 1.2 percent a year from 2020 to 2040. Hydro power grows by about 1 percent a year (it’s hard to build dams everywhere) and solar and wind together by an average of just under 7 percent a year (front-loaded and down from 20 percent in the previous decade). Now plug in more aggressive numbers for wind and solar, growing at an average of 10 percent instead through 2040 and dropping to 7 percent in the next decade (leaving everything else unchanged):

POWER TARIFF PEAKS A DECADE-HIGH IN THE SPOT DAY-AHEAD MARKET The power tariff on Sunday the 30th of September 2018 touched a decade -high due to low hydro and wind energy production and coal shortage at thermal plants. The spot power price for supply touched 17.61/unit in spot trading on IEX

T In case it needs to be said, this isn’t supposed to be an accurate picture of the future. The point is to show how renewable energy, at higher penetration, subverts the way we think about the world’s energy consumption. By displacing not only useful thermal energy but also the waste, renewable sources add to the overall level of useful energy while simultaneously slowing and even reversing the growth in primary energy consumption. A growing world economy and population coupled with flat or even falling primary energy demand might seem paradoxical. But we’ve seen it happen already in the U.S. and some other countries (see this recent analysis by Nikos Tsafos at the Center for Strategic & International Studies). At the very least, the rise of renewable sources means we should be thinking about “useful energy” as a way of adding up our needs rather than just “primary energy.” Competition from renewable technologies, coupled with higher electrification, represents a decisive break with the past. All that primary energy that isn’t actually being used is like a target on the incumbent system’s back; especially as, for some fuels, it also serves as a metaphor for more pernicious forms of waste, such as carbon dioxide. As with any other industry, such excess invites disruption.

he average spot power price was also high at INR 7.64/unit at the stock exchange on the same day. The power price has seen an upward trend in the dayahead market (DAM) with 14.09/unit last week. A total of 271 MU (million units) were sold for supply on Monday. In the DAM trading session which concluded on Sunday at IEX, there were buy bids for 306 MU against sell bids for 357 MU.

The upward trend of the power tariff suggests that the prices discovered on the exchange has taken an uphill and buyers now are residing to other options than exchanges for power purchase. Notably, there has also been a coal shortage in the power plants and the power minister of the country has asked the state power generators to strengthen their coal mining wing. Source: reconnectenergy

Source: Bloomberg L.P.

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November Part-A 2018

RESEARCH & ANALYSIS

Average spot power price jumps to Rs 4.69/unit in Sep Average spot power price surged 41 per cent in September to Rs 4.69 per unit as compared to Rs 3.34 per unit in August this year at Indian Energy Exchange (IEX), mainly due to higher demand, coal shortage and lower wind as well as hydro power generation. “The average Market Clearing Price (MCP) at Rs 4.69 per unit registered 41 per cent increase over 3.34 per unit price in August 2018 and 15 per cent increase over Rs 4.09 per unit in same month (September) last year,” Indian Energy Exchange (IEX) said in a statement.

UPERC APPROVES UPNEDA’S PETITION FOR FIXING THE CEILING TARIFF FOR 500 MW SOLAR PROJECTS UP New and Renewable Energy Development Agency (UPNEDA) and UP Power Corporation Ltd. (UPPCL) had filed a petition seeking approval for RFP & PPA for procurement of 500 MW Grid-connected solar power through tariff based competitive bidding discovering ceiling tariffbased competitive bidding discovering a ceiling tariff of INR 3.25/unit. UPERC has recently approved the petition and suggested certain changes in the PPA but largely accepting the petition as it is. The key points of the approved petition include: Commercial operation date will be 21 months for projects of capacity less than 250 MW. Commercial operation date will be 24 months for projects of a capacity of more than 250 MW. Upper tariff ceiling will be ₹3.25/kWh if safeguard duty is included. If safeguard duty is not included, upper tariff ceiling will be ₹3.10/kWh. Financial closure must be attained within 365 days of PPA signing. The changes suggested by the commission are: The document talks about providing 210 days time for the submission of technical Feasibility of connectivity of the plant to the STU substation. The commission suggested that in case the STU is not in a position to provide connectivity to the proposed solar plant due to technical issues, then the PPA should be considered unfruitful without any financial liability on either party. The commission is of the opinion that since the power is always procured in kWh or Million Units (MU) and not in MWh. It should be specified in the PPA that the power will be procured in kWh or MU but the bidding will be done in MWh. Source: reconnectenergy

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ccording to the statement, the key reasons for increase in volume as well as prices in the day-ahead market included but not limited to increase in demand for power in eastern, western and southern states, low availability of coal with thermal power plants; reduced generation from wind and hydro based capacity, and scanty rainfall and dry weather in southern states in second half of the month. However, the IEX said that One Nation, One Price was realised for 28 days in the month. In the day-ahead market (DAM), the record high volume of 5,725 MU (million units) traded in September 2018 is an increase of 44 per cent month-on-month (MoM) basis and 40 per cent increase year-on-year (YoY) basis. The market achieved all time high record daily volume of 306 MU for delivery on 29th September, 2018, crossing the 300 mark for the first time. n a daily average basis about 191 MU were traded (in September), the highest during any month, it added. The all India peak demand touched 176 GW on September 18, 2018 registering 3 per cent increase over August 2018 and 11 per cent increase over September 2017, as per the NLDC (National Load Dispatch Centre) statistics. The electricity market at IEX – the day-ahead market (DAM) and term-ahead market (TAM) combined traded the highest ever monthly volume of 5,829 MU in September 2018 vis-a-vis 4,061 MU traded in August 2018 and 4,239 MU in the same month (September) last year. The TAM traded 103 MU in September 2018, registering 19 per cent increase (month on month) basis and 32 per cent decline Y-o-Y (year on year) basis. The Renewable Energy Certificate (REC) market trading session held on Wednesday featured a total trade of 16,03,446 RECs (16.03 lakh) about 2.16 times increase over trade of 5,07,811 RECs in August 2018 and 4.5 times increase over trade in September 2017. The September 2018 trading Session saw trade in 2,44,401 non-solar RECs and record high trade of 13,59,045 solar RECs. Source: PTI

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RESEARCH & ANALYSIS

Scientists Call for $2.4 Trillion Shift From Coal to Renewables The world must invest $2.4 trillion in clean energy every year through 2035 and cut the use of coal-fired power to almost nothing by 2050 to slow the quickest pace of climate change since the end of the last ice age, according to scientists convened by the United Nations.

he findings released by the UN’s Intergovernmental Panel on Climate Change add pressure on policymakers and businesses to step up their response to global warming, which the scientists said is melting ice caps and making storms more violent. The atmosphere is almost 1 degree Celsius (1.8 Fahrenheit) hotter than it was at the start of the industrial revolution, and burning more fossil fuels will accelerate the shift toward higher temperatures, the group said in its report.

“These systems transitions are unprecedented in terms of scale, but not necessarily in terms of speed, and imply deep emissions reductions in all sectors,” the IPCC said in the report. “These options are technically proven at various scales, but their large-scale deployment may be limited by economic, financial, human capacity and institutional constraints.’’ To limit warming to 1.5 degrees would require a roughly fivefold increase in average annual investment in low-carbon energy technologies by 2050, compared with 2015. The $2.4 trillion needed annually through 2035 is also an almost sevenfold increase from the $333.5 billion Bloomberg NEF estimated was invested in renewable energy last year.

THE IPCC REPORT ALSO RECOMMENDED THAT BY 2050: Temperatures are currently on track to rise 3 degrees Celsius by 2100. That’s double the pace targeted under the Paris climate agreements endorsed by almost 200 nations in 2015.

We are already seeing the consequences of 1 degree of global warming through more extreme weather, rising sea levels and diminishing Arctic sea ice, said Panmao Zhai, one of the co-chairs who helped bring together the report by the researchers who reviewed thousands of scientific papers.

Coal’s share of electricity supply should be cut to 2 percent or less. Renewables should supply 70 percent to 85 percent of power generation. Carbon capture and storage technology should be deployed to absorb remaining fossil-fuel emissions. Natural gas could maintain an 8 percent share of electricity generation if CCS reduced total global net emissions to zero by 2050. Those ambitions would mark a massive upheaval to the energy system, with coal currently accounting for about 37 percent of power and gas at 24 percent, according to the International Energy Agency.

Envoys at the 2015 Paris talks asked the IPCC to study what it would take to limit warming to 1.5 degrees, a more ambitious goal than the previous 2-degree target. The scientists concluded that carbon dioxide emissions should be cut 45 percent by 2030 from 2010 levels then reduced to zero by 2050. That would require “unprecedented changes in all aspects of society,” most especially within the energy industry. The report acknowledged those changes would be difficult and costly, but not impossible.

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November Part-A 2018

RESEARCH & ANALYSIS The IPCC’s proposals are bolder than the most-ambitious scenario set out by the IEA. The Paris-based institution envisioned coal maintaining 6 percent share of the power generation market and gas 16 percent by 2040 under one pathway that’s compatible with 2 degrees of warming. Organizations and investors that back green energy said the report makes it clear that the world should accelerate the shift away from coal, the most polluting fossil fuel.

The coal industry has no role in a climatestable world, said Jan Erik Saugestad, chief executive officer of Norway’s Storebrand Asset Management, which oversees $88 billion. It’s our pressing duty to call on other investors to end meaningless engagement with coalexposed companies. The report also highlights the risk to further investments in natural gas-fired power plants and suggests that more of them should be replaced by renewables, said Han Chen, who follows energy finance for the Natural Resources Defense Council. “Large quantities of current gas plants will need to be retired early, while those under construction or in planning stages must be reconsidered immediately as they are not compatible with the 1.5-degree future,” Chen said.

Cancellations, falling rupee making bidders cautious, says Ind-Ra Frequent bid cancellations, the falling Indian rupee and lack of clarity on safeguard duty implications are making bidders cautious about competitive tariffs in renewable energy projects, research agency India Ratings (Ind-Ra) said

hese factors could lead to the ministry of new and renewable energy (MNRE) miss the renewable energy auction target of 30 giga-watt (GW) set for FY19, the agency said, adding that “even a one rupee depreciation in the `/$ exchange rate necessitates operators to increase tariffs by Rs 0.02/unit to maintain profitability”. In the first five months of FY19, 3.9 GW of solar bids have been cancelled by various agencies die to higher prices discovered in the auctions. However, reauctions in two instances have discovered prices lower than the initial biddings, providing some vindication to the cancellations. Uttar Pradesh recently conducted bids for 500 MW of solar, after cancelling the auctions for 1000 MW, when the lowest tariff of Rs 3.48 per unit was discovered. The latest bids fetched a lowest tariff of Rs 3.17 per unit.

Gujarat had cancelled the first bidding process for 500 MW solar capacity held in March, when the lowest tariff discovered was Rs 2.98 per unit. The reauction fetched the magic figure of Rs 2.44 a unit, matching the record low rate first found in May 2017 for Rajasthan’s Bhadla project. However, sources said Azure Power, which had won 100 MW in the latest Gujarat auction by quoting `2.45 a unit, has requested the state to withdraw its bids. “Frequent scrapping of auctions decelerates capacity additions and weakens investor confidence on the sector,” Ind-Ra said. The World Coal Association noted the IEA and other forecasters expect the fuel to remain an important part of the energy system for the foreseeable future. That would make it crucial to expand carbon capture projects, which siphon the gas off from smokestacks and store it permanently underground. “Any credible pathway to meeting the 1.5 degree scenario must focus on emissions rather than fuel,” Katie Warrick, interim chief executive officer of the WCA, said after reviewing a draft of the report. The report was meant to ring alarm bells about global warming, noting that temperatures are likely to be 1.5 degrees higher by 2030 to 2052 based on current commitments to reduce emissions made under the Paris deal. While an increase of that magnitude would boost sea levels by as much as 77 centimeters by the end of the century, that would be about 10 centimeters lower than at 2 degrees, the report said. Source: Bloomberg L.P.

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The Solar Energy Corporation of India (SECI) had cancelled 2,400 MW bids from the 3,000 MW solar auction held on July 13. Only Acme Solar’s 600 MW bid was not scrapped as it had quoted the lowest tariff of `2.44 per unit. As recently reported by FE, power minister RK Singh has pointed out that states are reluctant to buy unreliable solar power even if tariffs are much lower than thermal electricity. States effectively end up paying a much higher price for every unit of solar electricity due to the mandatory payment of fixed charges to thermal power plants, even if they don’t offtake any electricity from the latter. If the states don’t agree to procure solar power, SECI may end up paying `40 crore per year for every 100 MW of untied solar capacity, the minister had pointed out. Source: financialexpress

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RESEARCH & ANALYSIS

Rising electricity demand in India leading to costlier coal imports: ICRA The recent energy demand rise in India has improved offtake from the power generators but has also resulted in higher dependence on costlier coal imports as the supply of the dry fuel from domestic sources was insufficient, research and ratings agency ICRA said The all-India electricity demand growth remained steady at 5.6 per cent during the first five-month period of FY2019 and the increased demand is being met from higher generation by both thermal and renewable energy plants, the report said.

This is also reflected in an improvement in thermal power PLF (plant load factor or capacity utilisation) to 60.6 per cent in 5M FY2019 (April to August) against 59.1 per cent in 5M FY2018, it said.

ICRA Ratings Sector Head and Vice President Girishkumar Kadam said, “With international coal price level increasing by about 20 per cent in nine months of 2018 on a Y-o-Y basis and the rupee also seeing a sizeable depreciation against the USD, this resulted in an upward pressure on cost of power purchase for the distribution utilities. Given this, augmentation of domestic coal supplies (through both higher mining activity and improved rail infrastructure) remains crucial for the sector from a cost control perspective.” he spot power tariffs witnessed a sharp increase in September 2018 with the average rate on Indian Energy Exchange increasing to Rs 4.7 per unit in September 2018 from Rs 3.3 per unit in August 2018. This is due to higher energy demand, decline in generation from wind and hydro sources and shortages in domestic coal availability, it said. While spot tariffs are likely to remain firm in the near term, given our expectations of strong demand from discoms with elections around the corner, the same is unlikely to be sustained in the medium term and would remain range-bound between Rs 3.5 to 3.8 per unit, given the significant overcapacity in place and an increasing share of renewable energy generation, it added.

In a positive development for power generation projects, the Ministry of Power (MoP) has recently issued directions to the Central Electricity Regulatory Commission (CERC) under section 107 of the Electricity Act 2003 for allowing pass-through of changes in domestic duties, levies, cess and taxes in a time-bound manner. This is given the significant delays witnessed in the past for pass-through of the additional cost arising from change in law events. The ICRA has analysed the financial performance of distribution utilities (discoms) for FY2017 in nine key states, wherein the profitability for a majority of the discoms remained modest owing to a mix of reasons including inability to pass on the variation in power purchase costs in a timely manner, poor operating efficiencies and delays in realising payments, especially from state governments. However, it said that as per the MoP guidance, there has been a substantial reduction in the losses of the discoms for FY2018, post the implementation of UDAY and the resultant reduction in interest costs.

“While the benefits of deleveraging have largely been realized, going forward, improving operating efficiencies, through AT&C loss reduction, and securing timely and adequate tariff hikes will remain critical,” added Kadam. Source: PTI

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November Part-A 2018

RESEARCH & ANALYSIS

India may miss target of auctioning solar, wind capacities in FY19: Report India may miss the solar and wind energy auction target in the current fiscal, mainly due to rupee depreciation, safeguard duty and grid connectivity, India Ratings and Research said. The Ministry of New and Renewable Energy has set a target of auctioning 34 GW of solar energy projects and 10 GW of wind energy projects. “The solar auction target for FY19 may be missed on account of frequent changes in the implementation of safeguard duty, apprehensions about grid connectivity and land acquisition-related bottlenecks. Also, a depreciating rupee compared to USD poses a threat to economical solar tariffs,” Indian Ratings and Research said in a statement.

ccording to India Ratings and Research (Ind-Ra), a sense of cautious optimism is spreading across renewable projects, with bidders and lenders going circumspect around low margin of error owing to the steep fall in tariffs since the start of auction regime. It said that recent scrapping of solar auctions around tariff concerns can derail the ministry’s target to achieve 100GW of solar capacity by FY22. On the positive side, solar projects in Ind-Ra’s portfolio demonstrated stable generation levels with improving grid availability in FY18. Also, major state distribution utilities, including Solar Energy Corporation of India, demonstrated a stable payment history in FY17 and FY18. Stable generation nature of solar power compared to other renewable sources remains a major advantage for solar power projects. On wind side, grid connectivity related concerns have forced bidders to skip auctions in the past, and the ministry target to conduct 10GW of auctions in FY19 may be missed, it said. The FY18 was a year of underperformance for wind power projects, with generation lagging P90 levels. Ind-Ra considers the unpredictability of wind resource a major risk for wind projects. However, it said that the issuers are managing the risk by portfolio diversification and maintenance of adequate debt coverages and liquidity. A major positive for wind power projects is the stabilising grid availability. Tamil Nadu demonstrated a substantial improvement in grid availability over FY16-FY18. Mergers and acquisitions activity in renewables was sluggish in the last 12 months, with major players counting on enough capacity available to bid for new projects, it added. In Ind-Ra’s opinion, there could be a few deals in patches. Also, high interest rates and rupee depreciation have discouraged a major surge in capital market transactions on debt side. Achieving financial closure for new renewable projects with highly competitive tariffs and refinancing of existing loans may be a challenge without sponsor backing, on account of the low margin for error. Source: PTI

November Part-A 2018

Cautious Optimism Reigns Over Renewable Energy A sense of cautious optimism is spreading across renewable projects, with bidders and lenders going circumspect around low margin of error owing to the steep fall in tariffs since the start of auction regime, says India Ratings and Research (Ind-Ra).

he recent scrapping of solar auctions around tariff concerns can derail the Ministry of New and Renewable Energy target to achieve 100GW of solar capacity by FY22. The solar auction target for FY19 may be missed on account of frequent changes in the implementation of safeguard duty, apprehensions about grid connectivity and land acquisition-related bottlenecks. Also, a depreciating rupee compared to USD poses a threat to economical solar tariffs. On the positive side, solar projects in Ind-Ra’s portfolio demonstrated stable generation levels with improving grid availability in FY18. Also, major state distribution utilities, including Solar Energy Corporation of India, demonstrated a stable payment history in FY17 and FY18. Stable generation nature of solar power compared to other renewable sources remains a major advantage for solar power projects. On wind side, grid connectivity related concerns have forced bidders to skip auctions in the past, and the ministry target to conduct 10GW of auctions in FY19 may be missed. FY18 was a year of underperformance for wind power projects, with generation lagging P90 levels. Ind-Ra considers the unpredictability of wind resource a major risk for wind projects. However, the issuers are managing the risk by portfolio diversification and maintenance of adequate debt coverages and liquidity. A major positive for wind power projects is the stabilising grid availability. Tamil Nadu demonstrated a substantial improvement in grid availability over FY16-FY18. Mergers and acquisitions activity in renewables was sluggish in the last 12 months, with major players counting on enough capacity available to bid for new projects. In IndRa’s opinion, there could be a few deals in patches. Also, high interest rates and rupee depreciation have discouraged a major surge in capital market transactions on debt side. Achieving financial closure for new renewable projects with highly competitive tariffs and refinancing of existing loans may be a challenge without sponsor backing, on account of the low margin for error. Source: indiaratings.co.in

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RESEARCH & ANALYSIS

World to Install Over One Trillion Watts of Clean Energy by 2023 The world could install more than a trillion watts of renewable power over the next five years, more than the entire current generation capacity of the European Union.

he International Energy Agency’s latest annual report on renewables forecasts as much as an extra 1.3 terawatts of clean energy will be installed by 2023 under one scenario. Even in its more conservative central forecast, the agency predicts that global renewable energy capacity will grow by 1 terawatt, driven by a boom in solar installations and more accommodating government policy.

The positive outlook for clean energy comes with a warning that government support and market design is critical to ensuring that renewables continue to be invested in and built. Energy from solar, wind and hydro will continue to outpace natural gas and coal over the next five years, the IEA said. Generation from natural gas will be squeezed by cheap coal and ever more competitive solar and wind technologies. Despite renewable energy expanding its share of global electricity output to 30 percent by 2023, growing coal generation in Asia means that the dirtiest fossil fuel will remain the largest source of power in the world. Hydropower is forecast to increase 12 percent over the next five years and will still be the largest renewable electricity generation source by 2023. Wind output is expected to increase its share by two-thirds to 7 percent. Solar power is seen tripling, overtaking bioenergy to become the thirdlargest source of renewable energy.

China will be responsible for 41 percent of global renewable growth, adding 438 gigawatts of clean energy to become the largest consumer of green energy in the world, overtaking the EU, the IEA said. Almost half of Brazil’s total power consumption will come from renewables by 2023, in large part down to hydro and bioenergy. The IEA focused on “modern bioenergy,” saying it is the “blind spot” of the renewables world even though it accounted for half of all clean energy consumed in 2017. Most modern bioenergy, which includes liquid fuels produced from plants, gas from anaerobic digestion and wood pellets, is used to heat buildings in industry. It excludes traditional bioenergy, which comes from biomass such as wood and animal waste.

Modern bioenergy is the overlooked giant of the renewable energy field,” said Fatih Birol, the IEA’s executive director. “We expect modern bioenergy will continue to lead the field, and has huge prospects for further growth. Only bioenergy that reduces life-cycle greenhouse gas emissions while avoiding social, environmental, and economic impacts should have a future role in a clean energy system, the IEA said. Global carbon dioxide emissions from energy use climbed 1.6 percent in 2017 after three years of little change. Coal currently feeds about 27 percent of the world’s energy demand. That proportion is likely to drop to about 22 percent in 2040 as governments move toward cleaner energy policy, according to the IEA’s last World Energy Outlook in 2017. Source: Bloomberg L.P.

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November Part-A 2018

distributed SOLAR

Azure Roof Power Signs Record 415 PPAs with Various Government Establishments in Madhya Pradesh in a Single Day Azure Power (NYSE: AZRE), one of India’s leading independent solar power producers, announced it has signed a record 415 PPAs for a port-ion of the 11.2 MW rooftop solar power project won RECENTLY for Madh-ya Pradesh Urja Vikas Nigam Limited (MPUVNL) in which the company won ~90% of the total project sites allocated.

Chennai: Vikram Solar commissions rooftop solar project for city firm Vikram Solar, a rooftop solar and EPC solutions provider, announced the installation of 1,056 kW rooftop solar project for the Chennai unit of Century Plyboard Ltd. The Century Plyboards’ Chennai unit, is spread over 11,000 square metres and has 3,300 modules in operations with a cumulative annual energy yield of 1.536 million units, a company statement said. Similar to the Chennai unit, Vikram Solar said it recently commissioned a 405 kw Rooftop Solar photo-voltaic system for Century Plyboards in Gujarat. “The plant is expected to produce an annual yield of nearly six lakh units which would reduce around 500 metric tonne of carbon di-oxide emissions per year,” it said. “Century Plyboards Ltd is a leader in the industry and it was a privilege for us to make their vision a reality in their first step towards the green energy drive..,” Vikram Solar MD and CEO, Gyanesh Chaudhary said. “We are proud to have showcased a strategic and technological advantage in conceptualising the project, and upholding our commitment to the client,” he said. Currently, Vikram Solar’s annual photo-voltaic module production capacity stands at 1GW, the statement added. Source: PTI

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arious Government colleges, engineering colleges, polytechnics, Industrial Training Institutes (ITIs) and universities gathered in Bhopal for the signing ceremony. Several dignitaries attended the ceremony including Vijendra Singh Sisodiya, Chairman, MP Urja Vikas Nigam; Manu Srivastava, Principal Secretary, New and Renewable Energy Department; Neeraj Mandloi, Principal Secretary, Higher Education Department; Dr Sanjay Goyal, MD, MP Madhya Kshetra Vidyut Vitaran Company; and Ajit Kumar, Commissioner, Higher Education Department. Azure Roof Power offers superior rooftop solar power solutions for commercial, industrial, government, and institutional customers in cities across India to lower their energy bill and meet their greenhouse gas (GHG) emission reduction targets. With over 200 MWs of high quality, operating and committed solar assets across 23 states, Azure Roof Power has one of the largest rooftop portfolios in the country. Azure Roof Power has a well-diversified customer base with a majority of the portfolio contracted with Government of India backed entities. Azure Roof Power customers include large commercial real estate companies, a leading global chain of premium hotels, distribution companies in smart cities, warehouses, Delhi Metro Rail Corporation, Indian Railways, a Delhi water utility company and various Government of India Ministries.

Manu Srivastava, Principal Secretary, New and Renewable Energy Department, said “We are glad to partner with Azure Power in meeting the country’s renewable energy obligations. This step is an expression of commitment of the Madhya Pradesh Government towards renewable energy and its commitment to the improvement of educational institutions in the state.” Speaking on this occasion, Mr Vishal Jain, DGM, Azure Roof Power said “Our sincere gratitude to MPUVNL for all the cooperation and support extended. We are glad to contribute towards the expansion of solar by the Government of Madhya Pradesh.”

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distributed SOLAR

SKODA AUTO India Inaugurates 980 KW Advanced Solar Power Generation Project At Its Production Facility In Aurangabad H. E. Mr. Milan Hovorka, Hon. Ambassador of the Czech Republic to India said that “ŠKODA has been praised world over for its environment friendly practices – and today is no different. I am delighted to be here at the inauguration of the advanced solar power generation project in Aurangabad and wish ŠKODA luck for future endeavours.” Mr. Nandakumar Ghodele, Hon. Mayor of Aurangabad said that “This project epitomizes adoption of new technologies towards environment friendly development and the plant demonstrates how energy needs of the local manufacturing bodies can be met through clean and renewable sources like solar.” Commissioned as part of the ‘INDIA 2.0’ project, ŠKODA AUTO India inaugurated the Advanced Solar Power Generation Project, with a capacity of 980 KW, at its manufacturing facility in Aurangabad.

Key Points Solar panels with higher efficiency to generate 1,475 MWh of power per annum. Unique car port structure will cover 30 per cent of the plant’s annual energy consumption. 922 ton per annum reduction in carbon dioxide emissions from the production process.

uilt in line with the ‘GREEN FUTURE’ strategy of ŠKODA AUTO and commissioned as part of the ‘INDIA 2.0’ project, ŠKODA AUTO India inaugurated the Advanced Solar Power Generation Project, with a capacity of 980 KW, at its manufacturing facility in Aurangabad. The unique car port structure of the designated system will cover 30 per cent of the plant’s annual energy consumption by generating 1475 MWh of power per annum. This contributes to a significant 922 ton per annum reduction in carbon dioxide emissions from the production process.

Mr. Gurpratap Boparai, Managing Director, ŠKODA AUTO India Private Ltd. said that “The installation of the Advanced Solar Power Generation Project at our production facility in Aurangabad reinforces our commitment towards building a ‘GREEN FUTURE’. We have taken a small but significant step towards contributing to India’s commitment to the world in reducing carbon footprint.” ŠKODA AUTO India is making headway towards its pursuit of sustainable development, resource conservation, carbon footprint reduction, and cost optimisation as part of the ‘INDIA 2.0’ project. With the ever-changing environmental scenario, it has become essential for the Indian Automotive Industry to demonstrate their commitment towards supporting the environment. This project will not only help reduce carbon footprint in and around the vicinity of Aurangabad, but will also create an example for other automobile OEM’s in the country. Source: businessworld.in

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November Part-A 2018

distributed SOLAR

MPUVN rooftop solar gets lowest ever tariff of Rs 1.38 per unit Madhya Pradesh Urja Vikas Nigam (MPUVN) Friday announced that it has achieved historic low tariff of Rs 1.38 per unit for central government buildings in its RESCO II rooftop solar tender, an official statement said.

tate government medical colleges, also a beneficiary in the tender, have got a rate of Rs 1.63 per unit for the first year. The rates would increase by 3 per cent annually and would roughly double at the end of 25 years, MPUVN said. “Madhya Pradesh has discovered the lowest rate of Rs 1.38 per unit for first year in central government buildings, which is one fourth of what the consumers are presently paying,” it said in a statement. Renewable Energy Service Company (RESCO) sets up solar power projects and then monetises the energy produced. In comparison, a system integrator installs the project and is involved in the execution and implementation of the project for another RESCO. The RESCO – II tender issued by MPUVN attracted 9 international and domestic bidders, who oversubscribed its 8.6 MWp rooftop tender capacity by more than 630 per cent, it added. The results were announced at an event on the sidelines of RE-Invest 2018, a global platform to explore strategies for development and deployment of renewables.

IOC in Kerala to achieve selfreliance in power generation by March 2020: official Public sector oil major Indian Oil Corporation (IOC) is ready to achieve selfreliance in the state by relying on alternative sources of energy by March 2020. The four MW solar plant, to be set up our Udayamperur bottling plant with a cost of about Rs 30 crore, will be operational by March 2020,’’ informed Indian Oil Corporation Chief General Manager and Kerala head P S Mony during an interaction with media.

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he work had already started for the solar plant and it was expected to be operational by March 2020, he said adding that with the operation of the project, the energy required for its three bottling plants in Kollam and Chelari, besides Kochi, would be produced through solar. Claiming that the IOC plants have maintained the guidelines of environmental in all bottling plants and because of that they received ISO certificates in this regard.

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One lakh solar agriculture pumps approved in Maharashtra: Fadnavis The Maharashtra government has approved one lakh solar agriculture pumps and aims to provide uninterrupted power supply to farmers even during day time, Chief Minister Devendra Fadnavis said at the launch of the Mukhyamantri Saur Krishi Vahini Scheme.

The Mukhyamantri Saur Krushi Yojana aims to generate 2,500 megawatt solar power through a High Voltage Distribution System (HVDS) wherein more number of farmers will get power from a single transformer, Fadnavis said. “Our goal is to provide uninterrupted power supply to farmers even during day time,” Chief Minister Devendra Fadnavis said. nstead of the prevailing tariff of Rs 6, solar energy tariff will be between Rs 2.72 and Rs 3.10. The state government will save Rs 3 per unit,” he said. Fadnavis explained that, at present, the government has to purchase electricity at Rs 6 per unit and supply it to farmers at Rs 1.20 to Rs 1.60 per unit, leading to a loss of Rs 3-3.5 per unit. “Similarly, the government will spend less on subsidies, including cross subsidies, for industrial consumers,” Fadnavis said. Fadnavis said that new electric connections to agriculture pumps, including solar ones, will be made through the High Voltage Distribution Scheme which will benefit nearly 2.5 lakh consumers. Speaking about electric vehicles, Fadnavis said that the initiative was important to protect the environment and will also create job opportunities for ITI students and engineers. “Many automobile companies are willing to manufacture electric vehicles. But they want charging infrastructure in place,” he said, adding that such charging stations will be set up in the MahaNirmiti office premises.

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RE-Invest 2018

Financers, Bankers and Economists Discuss Measures to Improve Financing for Renewable Energy Projects; Laud India’s Achievements in Renewable Energy Leading bankers and renewable energy financing experts from multilateral agencies discussed solutions to issues pertaining to financing of renewable energy projects, and how access to financing can be improved to expand clean energy projects across the world, at a Plenary Session titled ‘Bankers’ Perspective on Renewables’, of the 2nd Global RE-Invest India-ISA Partnership Renewable Energy Investors’ Meet & Expo (RE-Invest 2018) at Greater Noida today. The panel discussion had representation from World Bank, International Energy Agency, Germany’s KfW, Citigroup, and leading Indian companies Power Finance Corporation (PFC), Rural Electrification Corporation (REC), Yes Bank and Indian Renewable Energy Development Agency (IREDA).

In the session, Director (Projects), Power Finance Corporation Shri Chinmoy Gangopadhyay said, “We are trying to look at solar energy projects from the angle of their long term viability. As there are very little entry barriers in the solar business, so everyone has entered and promoters try to move out in a few years. This sometimes creates difficulty in assessing the viability of projects.” “There are also issues with regard to the quality of solar panels. There is no benchmark to assess the quality of solar panels. Suppliers who are tier one today, fall out of that position later and there is difficulty in ascertaining quality,” Gangopadhyay added.

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Solar energy projects have been discovering tariffs much lower than grid prices. Experts in the panel discussion said they feel these low prices would affect the long term viability of solar energy projects. Michael Eckhart, MD and Global Head of Environmental Finance and Sustainability, Citigroup, offered a solution to this problem. “To ensure the long term viability of solar energy projects, in Argentina, in Mexico, and everywhere else, including in India, I am recommending that there be two parameters for procurement of solar energy – the lowest cost, and a debt service ratio, a measure of how financially viable is a project, at that price (of solar energy). What I fear is that with all these low price bid procurements of solar energy, five to ten years from now we will have a wave of project refinances,” Mr. Eckhart said.

November Part-A 2018

RE-Invest 2018

International Solar Alliance will Play same role as OPEC: Narendra Modi

States ask for subsidies, support, protection, right policies to boost clean energy in India States on Wednesday urged the Centre to provide a level-playing field for domestic investors in the renewable energy sector and categorise large hydro projects as clean energy source to give a boost to green energy projects.

In meeting the energy requirements of the world in the years to come, the International Solar Alliance (ISA) will play the same role as oil-cartel OPEC plays , Prime Minister Narendra Modi said. SA is an inter-governmental treaty-based organisation of countries between the Tropic of Cancer and Tropic of Capricorn, looking to promote solar energy in the member nations. OPEC currently meets around half of the world’s oil requirements. India is becoming the most preferred destination for investment in solar energy today, as the country targets to draw 40% of its total energy requirements from nonfossil fuel sources by 2030,The prime minister was speaking at the inauguration of the first general assembly of ISA, the second edition of India’s flagship renewable energy event Re-Invest and the second Indian Ocean Rim Association Renewable Energy Meet in the city .

“Through ISA, climate-justice has been given a platform. The entire world should get the benefits of ISA,” he said. Modi said that this is the best time to invest in renewable energy, and India looks to create a robust solar components manufacturing ecosystem in the country. The statement assumes importance as efforts on part of the ministry of new and renewable energy to create local manufacturing capacity for solar panels have received tepid response from the industry. India is also working on the national energy storage mission and promote creation of demand, indigenous manufacturing, innovation and policy support, a move that will help renewable energy become more reliable in future.“Renewable energy deployment plans for next four years are likely to generate business prospects of the order of $70-80 billion,” Modi said. “It offers tremendous opportunity to the businesses to leapfrog technologies and create volumes by investing in projects, manufacturing, energy storage and support to startups,” UN Secretary General Antonio Guterres, who also attended the opening ceremony of Re-Invest, called climate change an “existential threat” and maintained that political commitment was essential to combating it.

“There should be a level-playing field because foreign investors come with huge investments. Our Indian investors needs protection from the government,” Puducherry Chief Minister V Narayanasamy observed during a session. The government should provide bank support and bank subsidy for harnessing clean energy sources, States also asked the government to protect the domestic industry for improving renewable energy equipment manufacturing particulary of solar energy and reducing huge import dependence. Uttar Pradesh Minister of Additional Energy Sources Brajesh Pathak sad, “There a lot of scope of investing in solar energy in Uttar Pradesh, We will extend all support for your investments.” About solar manufacturing, he said about 90 per cent of the solar manufacturing is related to assembly of imported equipment only in India. India depends on solar equipment imports largely from China, Taiwan and Malaysia for setting up of solar plants. Himachal Pradesh Chief Minister Jai Ram Thakur suggested that all hydro power projects should be included in the category of renewable energy so that they could also avail the benefits being given to renewable energy projects. At present, hydro power projects up to 25 MW capacity are included under this category. He added that hydro power projects generate green energy which was eco friendly, if this demand was fulfilled then more investors would be attracted to the state and economy would be strengthened further.

Source: economictimes.indiatimes

November Part-A 2018

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RE-Invest 2018

Indian solar industry can attract $70-80 bn investment: Modi

States ask for subsidies, support, protection, right policies to boost clean energy in India India wants to create a robust ecosystem for the manufacture of solar panels in the country to give a filip to the sector which can provide opportunities for investments worth $70-80 billion, Prime Minister Narendra Modi said

ssembly here of the International Solar Alliance (ISA), the Indian Ocean Rim Association (IORA) Renewable Energy Ministerial and Global RE-Invest 2018, Modi said in the last four years, India has emerged as the most favourable destination for renewable energy investment and has attracted $22 billion of investment in the sector. He said the government’s target is to generate 40 per cent of India’s total energy requirements in 2030 by non-fossil fuel based sources.

“Solar power generation costs in India have gone down hugely, while the country has become the most favourable destination for renewable energy. In the last 4 years, the sector has attracted investments worth $22 billion,” We want to set up a strong ecosystem for manufacture of solar panels in the country. This area has immense opportunity available, for investment worth $70-80 billion.” Elaborating on India’s strides in clean energy development during the tenure of the NDA government, Modi said that 72 gigawatt (GW) of renewable energy capacity had been added in this period, while solar capacity had gone up nine-fold from earlier. “Power storage is equally important and a National Energy Storage Mission is being drawn up from the perspec tives of demand creation, manufacture, innovation and augmenting storage capacity,” the Prime Minister said. that towards achieving the government’s target of achieving 175 GW renewable energy capacity by 2022, it is planned to install 28 lakh solar pumps across the country in the next four years which would add capacity of 10 GW. Giving the call of “One World, One Sun, One Grid”, Modi said that the “ISA will assume tomorrow the role that the OPEC (Organisation of Petroleum Exporting Countries) is playing.” We are moving to a future where oil wells will be replaced by the rays of the sun in meeting our Source: IANS energy needs,”

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States on Wednesday urged the Centre to provide a level-playing field for domestic investors in the renewable energy sector and categorise large hydro projects as clean energy source to give a boost to green energy projects.

hief ministers and representatives of various states at the Second Global RE-Invest Summit here demanded that subsidies and easy credit should be provided to domestic investors as well as feasible and acceptable policies. The government should provide bank support and bank subsidy for harnessing clean energy sources, he stressed States also asked the government to protect the domestic industry for improving renewable energy equipment manufacturing particulary of solar energy and reducing huge import dependence.

“There should be a level-playing field because foreign investors come with huge investments. Our Indian investors needs protection from the government,” Puducherry Chief Minister V Narayanasamy observed during a session. Uttar Pradesh Minister of Additional Energy Sources Brajesh Pathak sad, “There a lot of scope of investing in solar energy in Uttar Pradesh, We will extend all support for your investments.”

About solar manufacturing, he said about 90 per cent of the solar manufacturing is related to assembly of imported equipment only in India.India depends on solar equipment imports largely from China, Taiwan and Malaysia for setting up of solar plants.Himachal Pradesh Chief Minister Jai Ram Thakur suggested that all hydro power projects should be included in the category of renewable energy so that they could also avail the benefits being given to renewable energy projects. At present, hydro power projects up to 25 MW capacity are included under this category. He added that hydro power projects generate green energy which was eco friendly, if this demand was fulfilled then more investors would be attracted to the state and economy would be strengthened further.

November Part-A 2018

RE-Invest 2018

Renewable Energy Experts discuss the future of clean energy at Reinvest 2018

NOW VIEWING The power packed technical sessions at the 2nd Global RE-Invest India-ISA Partnership Renewable Energy Experts’ Meet & Expo (RE-Invest 2018), organized by the Ministry of New and Renewable Energy saw industry experts, corporates and sector players discussing the opportunities and challenges held by the Renewable Energy sector at Greater Noida.

aying impetus on private sector’s contribution to the renewable energy sector at the Technical Session: ‘Next Gen Renewables’, Head of Department Energy System Analysis, Fraunhofer Institute for Solar Energy Systems Dr. Thomas Schlegl, offered technological collaboration with Indian institutes at the Fraunhofer Institute, Germany. Fellow, Brookings India, Dr. Rahul Tongia, who was the moderator at the session, stated that the technological disruption should be analyzed for the renewable energy sector and should be factored in for application. Stating the policy requirements for installation of solar rooftops, panelist at a session named ‘The Sun Overhead: India’s Rooftop

Solar Programme’s panelists said “Awareness among customers about rooftop technology is critical. Rather than focusing on subsidization of rooftop panels for households, the industry needs to work together for faster installation capacity, in order to reach the target of 40GW of solar rooftops.” The technical sessions on the 2nd day of RE-Invest 2018 witnessed participation of Executive Chairman, SoftBank Energy, Mr. Manoj Kohli, Regional Programme Officer – Asia, Country Support and Partnerships Division, International Renewable Energy Agency (IRENA) Mr.Prasoon Agarwal, and Managing Director, Hero Future Energies Private Limited Mr. Rahul Munjal, among others.

Lauding the Kusum Yojana at the special session: India’s Energy Basket 2030, Chairman Elect, Global Solar Council (GSC) Mr. Pranav. R Mehta, said, “With Kusum, instead of asking for electricity, our farmers will be supplying electricity.”

November Part-A 2018

Opining his views at the technical session: storage solution in Renewable, Chief Executive Officer, Emergent Ventures, Mr. Vinod Kala, who was the moderator of the session underlined the need for creating a conducive policy and regulatory framework that gives impetus to domestic manufacturing, demand creation and allows integrated e-mobility requirement seamlessly. Stating the demand portfolio for renewable energy batteries he said, “Ancillary services market should also be kept in mind.”

Reiterating the discussions of the ministerial sessions held on day one of RE-Invest 2018, Joint Secretary, Ministry of Renewable Energy, Government of India, Mr. G K Gupta, said “Like the telecom revolution, where prices were brought down from Rs. 16 per minute to a few paisas per minute, now is the time for a similar revolution for the Renewable Energy sector.”

Source: pib.nic.in

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RE-Invest 2018

UDAY scheme can be model bout massive rotation of capital: Michael Eckhart

PowerGrid sees % e2% 82% b9 50,000 -cr opportunity in green transmission corridors

The UDAY scheme (Ujjwal Discom Assurance Yojana) started by the Ministry of Power in 2015 could be a model for the rest of the world, global bankers participating in a panel discussion on renewable energy felt.

At least 60,000 MW needed by 2022 to meet Centre’s 100-GW target: Chairman Jha PowerGrid Corporation of India Limited (PGCIL) expects a market opportunity of ₹50,000 crore for setting up Green Energy Evacuation Corridors in India by 2022.

“I applaud this initiative which brings about massive rotation of capital,” said Michael Eckhart, Managing Director, Global Head of Environmental Finances and Sustainability at Citibank. Under UDAY, state government underwrite loans taken by their discoms, thereby increasing their creditworthiness.

hat factors are taken into account while quoting low tariffs? Is rupeedollar volatility considered?” Eckhart of Citibank feared the low tariffs could lead to a wave of project bankruptcies. Chinmoy Gangopadhyay, Director, Projects, Power Finance CorporationNSE -2.61 %, also questioned the quality of solar panels used in some projects. “There is no benchmark,

The discussion, on ‘Bankers’ perspective on renewables’, moderator by former Chairman of State Bank of India, Arundhati Bhattacharyya, and part of RE Invest 2018, currently being held in Delhi, saw bankers express both appreciation of, and reservations about, India’s renewable energy programme. Apart from UDAY, the setting up of solar parks across the country also drew praise. Rapidly dropping tariffs of renewable energy, both solar and wind, however, has caused some worry among bankers. “We have seen that some of the assumptions made by developers have proved incorrect,” said Ajeet Kumar Agarwal, Director (Finance), Rural Electrification Corporation NSE

“The centre has set a target to add 100 GW of solar power generation capacity in the grid. This will require an additional transmission capacity of at least 60,000 MW by 2022. These projects will be announced over the next two years and will cost nearly ₹50,000 crore,” IS Jha, Chairman and Managing Director, PGCIL, told Business Line on the sidelines of the second RE-invest conference. Jha said the transmission projects will be back in demand soon.

the past few years, addition of conventional power generation capacity has tapered, which has led to a slowdown in the demand for transmission projects. Now, the demand has started picking up from the renewable energy sector.

DOMINANT PLAYER

“The immediate requirement from the transmission sector is to meet the demand from the renewable energy sector. But after another two years, there will be a rise in generation from conventional sectors and consequently, more demand for the transmissions sector,”

PGCIL is the dominant power transmission player in India. Currently it has a market share of 98 per cent. Private sector players have alleged that this dominant position accords PGCIL an unfair advantage. On these charges, Jha said:, “The projects nominated to PGCIL by the Centre are those which the private companies do not go for. PGCIL builds and competes for projects at the most competitive rate, driven by cheaper financing costs and operational expertise.” Private players have also approached the PM’s Office and sought a reconstitution of the National Committee on Transmission to accord a level-playing field for them. The NCT has been tasked to constitute the Bid Evaluation Committee (BEC) for Tariff-Based Competitive Bidding Projects besides other mandates.In a representation to the Centre, industry bodies alleged that presence of the Chief Operating Officer of PGCIL on the NCT gives an unfair advantage to the Central transmission utility in the projects. Jha denied these allegations and said the PGCIL official on the board is only to provide technical assistance. “There is no unfair advantage. The bid requirement details are announced well in advance and the PGCIL official on the NCT is for assuring technical assistance to the committee,”

“We have not got any representation from the government on the same,” Jha added. Source: economictimes.indiatimes

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Source: thehindubusinessline

November Part-A 2018

RE-Invest 2018

Global RE Invest Meet sees participation of 20,000 delegates

A three-day long 2nd Global Re-Invest India-ISA Partnership Renewable Energy Investors Meet & Expo saw participation of over 20,000 delegates, including representatives from over 77 countries of which 40 were at the ministerial level.

Over 50 plenary and technical sessions were held at the event in which 150 speakers (including 55 international speakers) participated. There were nine different country sessions, eight state sessions and over 500 business to business bilateral meetings, a ministry statement said. The MNRE hosted the First Assembly of International Solar Alliance (ISA), 2nd Indian Ocean Rim Association (IORA) Energy Ministerial Meet, 2nd Global REInvest Meet & Expo that concluded today at the India Expo Mart in the National Capital Region. The three events were inaugurated by Prime Minister Narendra Modi in the presence of United Nations Secretary General Antonio Guterres on October 2, 2018 in Vigyan Bhavan, New Delhi. The valedictory session was attended by Power and New and Renewable Energy Minister R K Singh, Railway Minister Piyush Goyal, Francisco Ismodes Mezzano, Energy Minister of Peru; Anand Kumar, Secretary, Ministry of New and Renewable Energy, among others.

Speaking at the session, Power Minister R K Singh said, “Re-Invest allowed the policy makers, speakers, scientists, businessmen to meet and interact with each other. I think this is the perfect model to bring all of them together. This conglomeration conveys that the world wants to do something about the environment by taking the renewable route. Our Prime Minister has given us another challenge of one world, one sun, one grid. It is feasible and we will also achieve it.”

November Part-A 2018

“I am sure a conference of this scale will recharge the sector. This is the take off point for the next phase of renewable energy. I look forward to a day when sun, wind and biogas becomes the main source of energy. Let us lead the world to the next level of clean energy.” Railway Minister Piyush Said "

The business proceedings of the First Assembly of ISA was held on October 3, followed by its two technical sessions on October 4 and 5 respectively. Apart from this, ISA’s 5th program on Scaling-up Solar E-Mobility and Storage was also launched during the assembly and 2 MoUs were signed one with IORA and the other with United Nations Environment. The ISA’s 5th programme on ‘Scaling-up Solar EMobility and Storage’ aims to promote, assess potential, harmonize demand and pool resources for rapid deployment of and scaling up solar e-mobility and associated Storage infrastructure in urban and rural areas of ISA member countries. The Assembly witnessed participation from ISA prospective countries, partner countries, dignitaries from the United Nations, Presidents of Multilateral Development Banks, global funds, international financial institutions, representatives from the corporate sector and civil society.

Francisco Ismodes Mezzano, Energy Minister, Peru said, I would like to thank the Government of India forer the hospitality and support. I look forward to welcome all of you to the Peru World and Sun Expo next year in November.

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ELECTRIC VEHICLES

Tata Power, HPCL join hands to set up commercial EV charging stations

Electric vehicle startup Strom Motors secures angel funding from IAN

As part of the agreement, both companies will collaborate in planning, development and operation of charging infrastructure for electric vehicles.

ata Power has signed an MOU with stateowned Hindustan Petroleum Corp Ltd (HPCL) for setting up commercial-scale charging stations for electric vehicles at the HPCL retail outlets and other locations across India. As part of the agreement, both companies will collaborate in planning, development and operation of charging infrastructure for electric vehicles. The stations will be equipped to charge e-cars, e-rickshaws, e-bikes and e-buses, etc. Both entities also intend to additionally explore areas of opportunities & collaboration in related fields like renewable energy, Tata Power said in a statement.

Praveer Sinha, CEO & Managing Director, Tata Power, said, “By servicing electric vehicles through the proposed charging stations across India, Tata Power will be playing a crucial role in enabling a stronger penetration of EVs in the country, thus fulfilling our commitment to power India’s future in an environmentally sustainable way.” In this partnership, HPCL will leverage on its vast marketing infrastructure network in the form of retail outlets and other locations for setting up of electric vehicle charging stations on pan India basis.

“We believe that a robust network of charging stations is very critical for market acceptability of EVs which will also ensure last mile connectivity and thereby facilitate widespread adoption of EVs,” said Rajnish Mehta, Executive Director, Corporate Strategy Planning and Business Development, HPCL.

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As part of the agreement, both companies will collaborate in planning, development and operation of charging infrastructure for electric vehicles.

umbai-based electric vehicle startup Strom Motors has raised an undisclosed amount of seed funding from Indian Angel Network (IAN). The round was led by IAN members Neeraj Garg, Sanjay Bhasin and Anirudh Agarwal, who will also be strategic members to the company’s board. The funds raised will be used to strengthen its leadership position in the smart mobility market, boosting product sales, accelerating its geographical expansion, along with increasing consumer base across markets. Strom Motors, operated by E14 Technologies, was founded by Pratik Gupta, Jean-Luc Abaziou, and Dr Gimer Blankenship in 2011. The startup aims to create clean and smart mobility solutions through sustainable automobile technology.

Talking about the investment, Pratik Gupta, CEO at Strom Motors said, “We are looking forward to leveraging the expertise and in-depth industry knowledge of IAN members to bring significant developments in the company. Sustainable personal mobility solution in India is still in its nascent stages and there is huge opportunity for electric vehicle segment to grow in the coming years.” He further added, “Our efforts are not only to bring substantial innovation in the EV space, but also solve some of the key challenges faced by the country today such as road congestion and air pollution. The investment will help us to strengthen our roots in India and obtain homologation and begin deliveries of Strom-R3.”

Earlier this year, Strom Motors unveiled its smart electric car StromR3. The startup claims to have already received over 100 pre-orders for its electric car from the Maharashtra region. Strom Motors has also tied up with what3words, a geo-addressing company based in the UK, to optimise GPS mapping and bring accuracy to navigation in a complex road infrastructure like India. Other players in the electric mobility space include Ather Energy, Ultraviolette Automotive, and Greaves Cotton, among others. With the electric mobility space expected to be a multibillion dollar industry and Indian government pushing towards sustainable solutions, more Indian startups are expected to drive the transition from fossil fuel-propelled vehicles to clean fuel driven vehicles.

November Part-A 2018

ELECTRIC VEHICLES

Toyota and SoftBank Agreed on Strategic Partnership To Establish Joint Venture for New Mobility Services Government withdraws sops to conventional battery vehicles under FAME As per a notification by Heavy Industries Ministry, the incentives under the extended scheme from October 1 will be available only for registered vehicles.

he government extended the first phase of the Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME-India) scheme for promoting electric and hybrid vehicles by another six months till March 31, 2019 but has withdrawn benefits available to conventional battery vehicles. Moneycontrol had earlier reported that department of heavy industries (DHI) is likely to extend the first phase of FAME. As per a notification by Heavy Industries Ministry, the incentives under the extended scheme from October 1 will be available only for registered vehicles. Until now, electric two-wheelers and three-wheelers powered by conventional lead-acid batteries were eligible for incentives under FAME-I. However, these vehicles will no longer be able to avail sops from October 1. According to sources, the launch of FAME II, which was to take place on September 7, has been delayed as the prime minister’s office (PMO) has sought reworking of the proposal to offer incentives of around Rs 5,500 crore. Officials said the PMO is in favour of utilising most of the funds to encourage local manufacturing of lithium-ion batteries, which form the core of electric vehicles, as India presently imports these batteries from China.

“It has been decided that the period of the FAME-India scheme be further extended for a further period of six months up to March 31, 2019 or till notification of FAME-II, whichever is earlier,” the ministry said. It said the benefits of incentives available to conventional battery vehicles stand discontinued with effect . “Incentives in the remaining period of the scheme shall only be available for registered vehicles. Henceforth, with effect 2018, vehicles not requiring registration shall be excluded from the scope of the scheme irrespective of the type of battery,” it said. The phase I of the Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME-India) scheme was supposed to be implemented over a two-year period commencing from April 1, 2015. It was to be followed by the rollout of the second phase. However, the first phase was extended thrice for six months each earlier and has now been further extended till March 2019 or till notification of the second phase.

Source: moneycontrol

November Part-A 2018

Toyota Motor Corporation (“Toyota”) and SoftBank Corp. (“SoftBank”) have agreed to form a strategic partnership to facilitate the creation of new mobility services, and plan to establish a joint venture company, MONET Technologies Corporation (“MONET”), before the end of the 2018 fiscal year (April 2019). The objective of MONET is to help realize a safer and more comfortable mobility society by combining SoftBank’s corporate philosophy, “Information Revolution — Happiness for everyone,” with Toyota’s vision of “Mobility for All.” The name “MONET” combines the first letters of the words “mobility network,” and was chosen to embody the desire of both companies to build a mobility network that provides safer and more comfortable mobility to everyone.

ONET will provide coordination between Toyota’s Mobility Services Platform (“MSPF”), Toyota’s information infrastructure for connected vehicles, and SoftBank’s Internet of Things (IoT) Platform, which was built to create new value from the collection and analysis of data acquired from smartphones and sensor devices. By utilizing a wide range of different forms of data related to automotive and human mobility on both platforms, MONET is aiming to optimize supply and demand in transportation and, ultimately, to launch Mobilityas-a-Service (MaaS) businesses capable of resolving social mobility issues and creating new value. For the first phase, MONET plans to roll out just-in-time vehicle dispatch services for local public agencies and private companies throughout Japan. These services, which will include on-demand transportation through regional partnerships and corporate shuttles, will be provided in tune with user demand. By the second half of the 2020s, MONET plans to roll out Autono-MaaS*1 (autonomous mobility as a service) businesses using e-Palette, Toyota’s dedicated battery electric vehicle for mobility services that can be used for various purposes, including mobility, logistics, and sales. Possibilities include demand-focused just-in-time mobility services, such as meal deliveries vehicle where food is prepared while on the move, hospital shuttles where onboard medical examinations can be performed, mobile offices, and many more. MONET also intends to roll out these businesses in Japan with an eye to future expansion on the global market. Source: softbank.jp

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TECHNOLOGY

Magenta Power installs India’s first EV billing meter in association with MSEDCL (Maharashtra State Electricity Board)

LONGi and UNSW Renew Strategic Partnership Based on Remarkable Achievements over the Past Three Years

Magenta Power, who is doing pioneering work in the EV charging infrastructure space in India has yet again, another first to its credit announced India’s first EV billing meter in association with MSEDCL (Maharashtra State Electricity Distribution Company Limited). The EV Billing Meter is launched in sync with the Government Plans to support adoption of Electric Vehicles.

LONGi renewed its strategic cooperation with the University of New South Wales (‘UNSW’), a world renowned university with a globally leading photovoltaic research institution. Warwick Dawson, Director of Knowledge Exchange Division of Enterprise and Professor CheeMun Chong of UNSW and Vice President Tang Xuhui of LONGi Solar signed the contract in a private press conference held as part of All Energy in Melbourne, Australia.

overnment of India has been pushing the EV agenda by way of policies to support adoption of Electric Vehicles. On policy, which has been in place for long but not implemented was the EV charging metering under a subsidised rate. Individual states like Maharashtra, Karnataka, Andhra Pradesh, Telangana published their EV policies with this subsidised energy rates on offer. But on the ground, while some EV charging stations have come up, they have been connected to the base meters which meant higher prices for the consumers. With the support of the government of Maharashtra and the MAITRI program and installation by MSEDCL, the state of Maharashtra has installed the first EV billing meter in the country.

Speaking on the launch Mr. Maxson Lewis, Director – Magenta Power said, “This is a first of its kind initiative in India which now opens up the nation to setup such charging points under the governments EV support program. The idea is to make the charging experience across India as convenient as possible.While this meter setup is a small step it is a significant one in India’s EV journey. This meter has been setup at a charging station installed by Magenta Power in Navi Mumbai. Magenta Power will be deploying the new EV billing meters on all it 6 charging stations already in operation. Magenta Power is planning a slew of new charging stations on other important highways under the EV billing meters scheme Source: softbank.jp

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ONGi started cooperation with the UNSW as early as November 2015 when both parties reached a strategic partnership on technology R&D and industrialization, and personnel training. In August 2017, the strategic partnership was renewed to further strengthen LONGi Solar’s technology leadership in the photovoltaic industry.

Director Warwick Dawson said, "Our cooperation with LONGi in the past few years has achieved remarkable results, and we are honored to witness the determination for globalization and passion for technology of LONGi as a global leading solar technology company. UNSW will continue to exchange advanced lab technologies with enterprises to accelerate the application of technologies to production lines." Mr. Tang Xuhui added, “The cooperation is of great significance to both sides, and will also promote the in-depth exchange of PV technologies between Australia and China. The PV industry is driven by technology. LONGi has always attached great importance to scientific research. Through close cooperation with UNSW, we have made great strides in innovations that contributes high efficiency technology solutions to the industry, brings high yield PV products to end users and accelerates the progress of PV grid parity.” LONGi and UNSW have carried out extensive communication and cooperation. A recent result of the partnership is light-induced regeneration (LIR) technology – a monocrystalline low LID solution – which was jointly released by LONGi and UNSW in Shanghai on April 20, 2017. The technology completely solved the initial LID phenomenon and leads to higher capacity and lower LCOE of monocrystalline module systems. In addition to the cooperation with UNSW, LONGi Solar actively participates in the Australian PV market with high-efficiency monocrystalline products since October 2016. With reliable products and backed by strong financial health, LONGi has developed rapidly in Australia and established strong relationships in large-scale power stakeholders, EPCs and local distributors. In a short two years, LONGi has deployed its high efficiency monocrystalline modules in Queensland, New South Wales, and Victoria. LONGi plans to export more than 50% of its module products to overseas markets by 2020, and Australia is an important destination. Source: LONGi Solar

November Part-A 2018

TECHNOLOGY

Enphase Energy and LONGi Solar Announce AC Module Partnership Enphase Energy, Inc. (NASDAQ:ENPH), a global energy technology company and the world’s leading supplier of solar microinverters, and LONGi Solar, a subsidiary of LONGi Green Energy Technology Co. Ltd. (Shanghai: 601012), the world’s leading manufacturer of monocrystalline wafers, cells and modules, a strategic partnership to develop Enphase Energized™ LONGi Solar AC Modules (ACMs) based on seventh-generation Enphase IQ™ microinverters. The Enphase and LONGi Solar developed ACMs will be available in the US starting in the fourth quarter of 2018.

ONGi Solar will initially develop two Enphase Energized ACMs: LONGi Solar’s high-efficiency mono technology for 300-320W 60-cell will be paired with the Enphase IQ 7 Microinverter™, and LONGi Solar’s high-efficiency mono technology 340-375W 72-cell modules will be paired with the Enphase IQ 7+ Microinverter. Both the 60- and 72-cell LONGi Solar AC modules have received UL certification. These Enphase Energized ACMs allow installers to be more competitive through improved capital management, reduced labor costs, improved SKU management with accelerated design and installation times.

LONGi Solar is proud to work with Enphase to develop AC modules,” said Mr. Wenxue Li, president of LONGi Solar. Solar installers will immediately benefit from increased productivity in addition to reduced costs of LONGi Solar’s High Efficiency monocrystalline Technology. We have great confidence in the success and longevity of the collaboration between LONGi Solar and Enphase. The seventh-generation Enphase IQ™ Microinverter System dramatically simplifies solar installations and provides a complete AC solution that produces no high-voltage DC, providing a safe solar solution for homeowners. Enphase Energized AC modules from LONGi Solar work seamlessly with the full suite of Enphase IQ™ accessory products: the lighter two-wire Enphase Q Cable™, the Enphase IQ Combiner 3™ with pre-installed Enphase IQ Envoy™, and the Enphase AC Battery, all of which help make solar installation simple and fast.

LONGi Solar is the world’s leading manufacturer of monocrystalline PERC PV modules, and this AC module partnership is yet another validation of the ACM concept and of Enphase microinverter technology, said Badri Kothandaraman, president and CEO of Enphase Energy. “The LONGi Solar ACM partnership harnesses the strengths of both companies to offer a high quality, easy-to-use and highvolume mainstream ACM solution.” LONGi Solar AC Modules based on Enphase IQ™ microinverters meet or exceed regulatory requirements set by the National Electrical Code (NEC) and individual states and are certified compliant with NEC 2014 and 2017 rapid shutdown requirements. Unlike string inverters, Enphase IQ microinverters have rapid shutdown built in, with no additional equipment necessary. Enphase IQ microinverters also comply with requirements for distributed solar on utility networks included in Rule 21 in California and Hawaiian Electric Company Rule 14H, such as power factor, voltage and frequency ride-through requirements. Source: Enphase Energy, Inc.

November Part-A 2018

Blockchains, LLC And NV Energy Sign Agreement To Work On Blockchain-Powered Collaborative Energy Projects The CEOs of Blockchains, LLC and NV Energy today signed a Memorandum of Understanding (MOU) which outlines their agreement to work together on energy projects powered by blockchain technology. Blockchains and NV Energy’s shared vision will pilot concepts that place the customer in control of energy creation, consumption, storage and transactions.

The goal of this collaboration is to create technology solutions that will produce customer-centric energy platforms powered by public blockchain, all with the intent of integrating approved incubations into Nevada’s energy framework, said Jeffrey Berns, CEO of Blockchains, LLC. “These types of collaborative efforts, which return the power and control in transactions to the customer, are the very essence of blockchain technology. This partnership is only the beginning of what we have planned for Innovation Park.”

We are thrilled to have access to Nevada-based experts in this cutting edge technology, and to be able to grow solutions that empower our customers,” said Paul Caudill, CEO of NV Energy. “We will explore a variety of out-of-the-box energy concepts to identify ways to improve the customer experience, including applications that further the use of energy storage, renewable energy and collaborative energy conservation. We are, in addition, excited about the many other undiscovered applications that public blockchain technology has the potential to make possible.” Projects developed at Innovation Park, the home of Blockchains, LLC in Northern Nevada, could be utilized to serve NV Energy’s 1.3 million customers. Any projects incubated and ready for implementation will first be presented to, and approved by, the Public Utilities Commission of Nevada (PUCN).

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TECHNOLOGY

New ceramic composite material makes solar energy generation cheaper: Study

Biggest U.S. Power Market to Test Blockchain to Trade Renewables Blockchain, the technology that underpins cryptocurrency transactions, is about to get tested in a trading system for matching clean-energy buyers and sellers in the largest U.S. power market.

Researchers conceived a composite of ceramic zirconium carbide and tungsten, to create robust heat exchangers for conversion of solar heat to electricity.

y created plates of the ceramic-metal composite, they were able to get better performance at higher temperatures. Scientists have developed a material that can be used to harvest electricity from the Sun’s heat, paving the way for generating cheaper solar power on cloudy days and at nighttime. The innovation is an important step for putting solar heat-to-electricity generation in direct cost competition with fossil fuels, researchers said.

Storing solar energy as heat can already be cheaper than storing energy via batteries, so the next step is reducing the cost of generating electricity from the Sun’s heat with the added benefit of zero greenhouse gas emissions,” said Kenneth Sandhage, a professor at Purdue University in the US. Concentrated solar power plants convert solar energy into electricity by using mirrors or lenses to concentrate a lot of light onto a small area, which generates heat that is transferred to a molten salt. Heat from the molten salt is then transferred to a “working” fluid, supercritical carbon dioxide, that expands and works to spin a turbine for generating electricity. To make solar-powered electricity cheaper, the turbine engine would need to generate even more electricity for the same amount of heat, which means the engine needs to run hotter. The problem is that heat exchangers, which transfer heat from the hot molten salt to the working fluid, are currently made of stainless steel or nickel-based alloys that get too soft at the desired higher temperatures and at the elevated pressure of supercritical carbon dioxide. Researchers conceived a composite of ceramic zirconium carbide and the metal tungsten for more robust heat exchangers. They created plates of the ceramic-metal composite. The plates host customisable channels for tailoring the exchange of heat. Mechanical tests and corrosion tests showed that the composite material could be tailored to successfully withstand the higher temperature, high-pressure supercritical carbon dioxide needed for generating electricity more efficiently than today’s heat exchangers.

PJM Interconnection LLC and Energy Web Foundation are developing a digital ledger system to track electricity from wind and solar power plants as it’s produced, delivered, traded and sold, according to Jaclynn Lukach, vice president of PJM’s environmental information services unit. They expect to start a pilot program by the end of the first quarter.

t’s a big test for an emerging technology that developers say has the potential to make transactions faster and cheaper, through a secure trading platform that can attract more participation than existing mechanisms. PJM’s market trades wholesale electricity in megawatt-hours — one megawatt-hour is enough to power about 800 homes for an hour.

Blockchain will give some smaller users the ability to trade, Lukach said in an interview. “We’re also hoping it will reduce administrative costs.” PJM will test a blockchain system that lets people trade the renewable energy credits that wind and solar farms produce as they generate electricity. The digital ledger technology will be used to keep track of the credits as they’re created, bought and sold.

PJM, which operates a grid from Washington, D.C., to Chicago, has been studying blockchain for energy-trading platforms for about a year and sees an opportunity to reduce the cost of renewable-energy investments. Energy Web Foundation, a nonprofit co-founded by the Rocky Mountain Institute, has developed blockchain trading systems for smaller markets from Belgium to Singapore, said Douglas Miller, a senior associate at RMI. “This one’s larger in scope and scale,” Miller said in an interview. “In a year or so, we hope PJM will want to build it out more.”

Source: Bloomberg L.P.

Source: PTI

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November Part-A 2018

featured

Dia Mirza, Alec Baldwin host UN’s ‘Champions of the Earth 2018’ Awards At this year’s United Nations’ annual flagship awards ‘Champions of the Earth 2018’, Indians were seen as an integral part of the ecology conversation, moving a step closer to a more environment friendly living.

osting these awards along with actor Alec Baldwin was UN Environment Goodwill Ambassador and Indian actor Dia Mirza, who is known to crusade for and lend her voice to ecological protection. The gala brought together a cross section of world leaders and influencers to celebrate momentum for change in defense of our one planet. Conferred with the UN’s highest environmental honour, six of the world’s most outstanding environmental change makers were recognised with the ‘Champions of the Earth Award’ and seven trailblazers between the ages of 18 and 30 took home the coveted Young Champions of the Earth Prize, for their ambitious project ideas to restore and protect the environment.This years’ laureates are recognized for a combination of bold, innovative, and tireless efforts to tackle some of the most urgent environmental issues of our times. Hoisting the Indian flag higher globally, young champion Arpit Dhupar was recognised and Prime Minister Narendra Modi and Cochin Airport won the award along with Joan Carling, French President Emmanuel Macron, China’s Zhejiang’s Green Rural Revival Programme and Beyond Meat and Impossible Foods. Mr Modi and Mr Macron were recognised in the Policy Leadership category for their pioneering work in championing the International Solar Alliance and promoting new areas of levels of cooperation on environmental action, including Macron’s work on the Global Pact for the Environment and PM Modi’s unprecedented pledge to eliminate all single-use plastic in India by 2022.

In a world of uncertainty, this is certain: We will not solve the extraordinary challenges our world faces today without extraordinary talent, new thinking and bold ideas, said Head of UN Environment Erik Solheim. ‘The Champions of the Earth Award and Young Champions of the Earth Prize recognize those not afraid to chart unknown waters or be the voice of the voiceless. These people are changing our world today for a better tomorrow,’ I have had the honour to host for the second year in a row Champions of the Earth Awards, a truly motivating and inspiring platform that brings together some of the finest human beings on the planet. People and organisations that truly care about progress and the planet. To be able to host this year’s awards with Alec Baldwin made the experience all the more special, Dia said. The awards were presented during the Champions of the Earth Gala in New York City, on the sidelines of the 73rd UN General Assembly. This is the second consecutive year, since being appointed UN Environment Goodwill Ambassador for India, that Dia was seen hosting the awards. Source: UNI

November Part-A 2018

LONGi forecasts 1,000 gigawatt photovoltaic market LONGi, a leading manufacturer of monocrystalline high-performance modules, cells and wafers, expects the market volume for photovoltaic modules to reach 1,000 gigawatts (GW) in the near future. This is what Zhenguo Li, founder and CEO of the Chinese group, said at the Future of Energy Summit in London at the beginning of October.

By 2050, 100 percent of global electricity demand could be met from renewable energy sources, 68 percent from solar energy. This was the result of a German-Finnish study. Our calculations show that in the medium term, 1,000 GW of PV capacity would have to be installed annually if population growth and the improvement of quality of life were to be taken into account, says Zhenguo Li. “After 30 years, the solar modules will have to be replaced by new ones. So the solar market is far from getting saturated.” In the year 2000, the globally installed PV capacity was still 100 megawatts (MW) and rose to over 100 GW by 2017.

“In some regions of the world, a kilowatt hour of solar power already costs less than 2 US cents, for example in the Middle East and Latin America. Solar energy is on its way to becoming the cheapest energy source in the world. Together with energy storage, I consider it to be the ultimate energy solution for mankind,” Li continues.

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Energy storage

Energy Storage: A Game Changer For Renewables India, undoubtedly, is on the path to becoming one of the global leaders in the renewable energy sector. Being ranked fourth in the wind and fifth in solar, India is gradually transitioning from fossil fuels to renewables. This ongoing revolution is creating demand for new storage technologies and options to integrate clean energy into the power system. It is heralding a change where India is transitioning rapidly to renewables.

torage technologies will allow for more reliable and flexible operation of the electricity distribution and transmission grids, enhancing electric power quality and making renewable energy user-friendly. Overall, it would be a cost-effective solution in the long-run to lessen the requirement for backup capacities by storing the solar power during the day and feeding it back into the system after sunset. What is needed is the ramping up of energy storage technologies, especially at a time when hopes are high for a major shift to electric mobility. It is being projected that within the next five to seven years, electric vehicles, on a cost-competitive basis, would outpace fossil fuel-based transportation. Therefore, the pressure is on electric mobility to help bring down the country’s dependence on imported fossil fuels, thereby improving India’s energy security. To fulfill the goal of large-scale deployment of electric vehicles, India will require cutting edge battery manufacturing technology, and timely actions in capturing the fast-evolving technological landscape in energy storage. A joint report on India’s Energy Storage Mission by the NITI Aayog and American think-tank Rocky Mountain Institute, state that India’s demand for batteries to meet its mobility transformation goals will support global-scale production that could place the country among the world’s leading battery manufacturers. By 2030, India could account for more than one-third of the global market for batteries for electric vehicles. Look at the global trends. As per International Renewable Energy Agency’s report “Electricity Storage And Renewables: Costs And Markets to 2030”, published in October 2017, a total of 176 GW of electricity storage was operational in 2017. Of this, chemical storage accounted for only about 2 GW. This was, however, the fastest growing segment. Lithium-ion batteries comprise the majority of new battery capacity being installed globally. The prices of lithium-ion batteries have fallen from $1,000 /kWh in the year 2010 to $209/kWh in 2017. Bloomberg projections state that prices are set to decline to $100/kWh by 2025 and $75/kWh by 2030. Considering the global scenario, India is aiming at creating an environment for battery manufacturing growth, scaling both supply chain strategies and battery cell manufacturing.

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With this view, Ministry of New and Renewable Energy is working on the National Energy Storage Mission and has initiated an array of initiatives to encourage manufacturing, innovation, cost reduction, and spurring deployment in various end-use applications. Currently, efforts are being made to indigenously develop energy storage technologies and systems for electricity and mobility applications apart from ensuring the availability of high performance and affordable storage solutions that will enable rapid electrification of transport and seamless integration of renewables into the grid. Plans are afoot to set up large-scale integrated energy storage manufacturing clusters and undertaking the development of pumped hydro storage in conjunction with other sources of renewable energy, wherever feasible. The priorities are set for the future. The sector, however, is highly complex. Multiple technology options and deployment solutions are available. These are undergoing rapid transitions and therefore demands focused and forward-looking mission approach. We have our task cut out for us. India must put in place a mechanism that will seamlessly integrate technology advances to industry on a real-time basis. We need to support the industry as it adopts technology for large scale manufacturing of energy storage systems. India’s ultimate efforts must be focused on developing globally competitive energy storage technologies and products that cater to meeting domestic demand and securing global market share. On October 4, at a technical session at the 2nd global RE-INVEST 2018, an eminent international panel will deliberate on different aspects of energy storage like technology choices, regulatory needs, indigenous manufacturing, and other related issues of energy storage. As the best minds convene, the moment is opportune to form mutually-beneficial partnerships promoting cost-effective and scalable innovation in energy storage.

November Part-A 2018

PV MANUFACTURING

AGFA WINS SOLAR + POWER AWARD 2018 New SofarSolar Factory Provides a Capacity of over 4GW

Mortsel, Belgium: Agfa Specialty Products was announced the winner of the Solar + Power Award 2018 within the Solar PhotoVoltaic Material category for the breakthrough technology of their UNIQOAT backsheet product.

A new factory developed by SofarSolar was officially put into operation this year at the beginning of September.

he factory is located in Dongguan of the Guangdong province and has been designed to meet the production needs of grid-tied and storage inverters. With dozens of international production lines, the property has been operating at a high rate and has been producing a vast number of products ever since its initial opening. Due to the large-scale amount of work that’s being produced, the capacity of the factory is expected to exceed 4GW, which further helps SofarSolar with their plans for future industry development and a global strategic layout. The factory has been designed and constructed on land over 20,000 square metres, allowing integration of its four main functions: production, warehousing, offices, and living. This allows SofarSolar to focus on ensuring that they’re able to meet all production needs, along with sustaining quality control of the production lines, and improve both the working and living environment of the company employees. For SofarSolar, which is a subsidiary of the bigger Solar Group, this new factory is also somewhat of a new starting point. With the factory currently in operation, the production capacity of inverters and energy storage inverters will produce an annual amount of 4GW. This amount is then expected to be increased by at least 50% in the following two years, with plans for capacity that could potentially double or triple in size in the following 5 years to meet the demand of further global customers. Along with maintaining the quality control and production lines that SofarSolar has already established, the factory also allows the introduction of several additional advanced automatic production lines. As well as this, it works to adopt the new 6 steps of complete inspection processes and devotes itself entirely to cost control, quality control, and product efficiency. SofarSolar is currently one of the top 5 string inverter companies that can be found throughout China, and it’s quickly gaining a notable--reputation throughout the international industry as well. Due to the effectivity of its products and the maintained brand appeal of its machinery, it has now been awarded the reputation of being a leader in power storage inverter technology. As the demands for its product lines increase even further, SofarSolar products are being widely used throughout the domestic market in China, as well as having an international reach in the photovoltaic market. With this new guarantee of heightened production capacity and quality, SofarSolar will continue to seize the new direction of the development of the market, taking on new opportunities to further their global expansion. This foothold gives them the power they need to take on market competitors and secure their future position throughout the foreign market.

November Part-A 2018

gfa Specialty Products was shortlisted for their UNIQOAT backsheet technology by a panel of judges that includes people representing the Solar Industry value chain, associations, institutes and Universities. The industry then casted vote for the best company, project or product through an online voting process. This year Agfa won with highest number of votes beating other contestants in the Solar PV Materials category. The 10th edition of the Solar + Power Award ceremony took place on September 26 in Brussels in the week that the city hosts the international EU PVSEC Conference on PhotoVoltaic Solar Energy.

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PV MANUFACTURING

CNBM plans Additional 300 MW Production Capacity for CIGS ThinFilm Solar Modules in Bengbu In the course of a festive signing ceremony during the International Import Expo Show (CIIE) in Shanghai, China, a letter of intent (LOI) for the delivery of more than 10 production machines for the site in Bengbu, Province Anhui, for the manufacturing of 300 MW of CIGS thin-film solar modules at each site was signed

he contractual partner for SINGULUS TECHNOLOGIES are subsidiaries in operation of China National Building Materials, Beijing (CNBM). CNBM plans Additional 300 MW Production Capacity for CIGS Thin-Film Solar Modules in Bengbu to increase production to 600 MW. SINGULUS TECHNOLOGIES now shortly expects the signing of the respective detailed delivery contract for more than 10 production machines of the CISARIS, SELENIUS and VISTARIS type on the basis of the letter of intent. The volume will then amount to a high doubledigit million Euro amount. The financing of the projects is expected after the signing of the legally binding delivery contracts.

SINGULUS TECHNOLOGIES signs during the China International Import Expo Show (CIIE) further Agreements for the Delivery of Production Systems for CIGS Solar Modules During the International Import Expo Show (CIIE) in Shanghai, China, SINGULUS TECHNOLOGIES today signed a further letter of intent (LOI) for the delivery of more than 10 production machines for the manufacturing of 300 MW of CIGS thin-film solar modules.

fter China National Building Materials, Peking (CNBM) signed already yesterday an agreement for the expansion of the manufacturing site in Bengbu, Province Anhui, today another agreement was signed for 300 MW manufacturing capacity for the city of Xuzhou in the province Jiangsu. The volume will amount also to a high double-digit million Euro amount. With this further agreement during the last two days a capacity for 600 MW was signed. During the International Import Expo Show in Shanghai also a LOI was signed for the delivery of the missing five CISARIS selenisation furnaces for the second production site Meishan, province Sichuan. SINGULUS TECHNOLOGIES is discussing with the costumer the final contracts for the delivery of the machines. Production and delivery of the machines should take place during 2019 and 2020.

Dr.-Ing. Stefan Rinck, CEO of the SINGULUS TECHNOLOGIES AG, comments: â&#x20AC;&#x153;These new contracts, which our company signed for the delivery of large production machines for the manufacturing of CIGS solar modules in the past two days, confirm our close partnership with CNBM and our leading position in the market segment for CIGS thin-film solar modules. CNBM already works on the installation and ramp up of 1.2 GW CIGS manufacturing capacity and thus continues its investments and expansion plans in China for the set-up of production capacity in the GW area as planned.

Source: SINGULUS

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Source: xmr3

November Part-A 2018

61Â

INTERVIEW

Interview With Mr.Raman Nanda SB Energy CEO EQ: How do you see the pace of progress of solar energy in India? Given the cheap access to coal, should India invest in clean coal technology? RN: Solar, now below Rs 3, is already cheaper than half of India’s power which is at Rs 3.52 and rising. With solar this cheap, the true pace of progress is only limited by how quickly land and grid can get ready. The government’s 500 GW target by 2030 is viable. With clear and reliable policy, the industry will work hard to ensure India emerges as the global leader in this industry of the future. Since Narendra Modi became PM, the government has taken the necessary steps to transform a megawatt industry into a global gigawatt industry, and they did it in a way that it captured the world’s imagination. There are three building blocks; first, land. No nation that I know of has created solar parks at such scale and speed. These parks are being developed across India. Second, the grid. The government’s real efforts to implement its Green Corridor plans have resulted in nearzero curtailment for solar. And third, the PPA. After Madhya Pradesh set the benchmark, the National solar PPA standard has been improved. India has demonstrated global leadership in firmly establishing these three building blocks.

EQ: What are the missing pieces in the jigsaw puzzle that will help in speeding up execution? RN: A lot has been done but you are right. Things need to speed up. To achieve 500 GW, the industry needs to ramp up to 30 gigawatts a year, which is 3x our current pace. It will take $200-300 billion fresh investment by 2030. To attract this scale of investment, we should upgrade the Solar PPA to international standards. Only then can we attract serious global investors at the $100 billion scale. We also need to accelerate work on modernising the grid, implementing Green Corridor

November Part-A 2018

plans and developing Solar Parks. Only when these building blocks are in place can the industry gear itself up to deliver.

EQ: Do we need a bigger scale for the ‘Make-in-India’ piece to fall in place? EQ: Where do you see the company in RN: To compete with the World’s best, next five years? we need to think big. Eight of the world’s top 10 manufacturers are in China. They benefit from huge scale, 50 GW+, a mature, dynamic and resilient local supply chain, and generous government incentives. For Make in India to succeed, we need to compete with Chinese imports. We need to think big. A few gigawatts here or there won’t make a difference. If we don’t think at scale, it will be challenging for us to compete. And even if we get the scale right, we should be clear that it will take a few years for the industry to become truly competitive. This will not happen overnight. There is no magic bullet. Storage should also be ‘Made in India’. This industry is still small globally, but getting ready for vertical lift-off. Now is the time to attract them to India and become the global leader in storage, another technology of the future.

EQ:How are t wo recent developments, a weaker rupee and the safeguard duty, going to impact tariffs and manufacturing plans for solar equipment? RN: We have already seen a 20-30 paise increase, a 10% bump up in winning tariffs. This is due to the weakening rupee and rising bank interest rates. We are yet to see the full impact of Safeguard Duty. The industry is doing its best. Module prices are down and EPCs are constantly reducing prices. But financial and regulatory headwinds are out of our control. They will continue to impact solar tariffs. A robust, competitive manufacturing industry at scale could eliminate these issues in one stroke. And boost jobs, industry, and GDP.

RN: Our goal is to be a scale player. We began in 2015 and have spent our first three years working hard to build our first Gigawatt. We are ready to commit to being a long-term partner in the Prime Minister’s bold Vision for Renewable Energy for India, through fair, open and transparent processes.

EQ: Do you see the cost breaking the Rs 2 barrier very soon? RN: Let’s not forget that we’ve watched a rapid drop from roughly Rs 18 to Rs 2 in 9 years, which is just incredible. Given bare bone margins today, there has to be a tectonic shift for tariffs to come down further. I don’t think it’s going to happen in the near term. And, this is the wrong focus. With solar so cheap today, our attention should be on building a robust high quality industry at scale, which can in the next five years become the world leader, create millions of jobs here at home, save billions of dollars in exports, boost the economy and contribute towards energy independence. The industry can attract $100s of billions of foreign investment, a lot of which will get invested in the remotest parts of India. Just think of the opportunity for inclusive growth, by investing billions into clean infrastructure in the remotest parts of India.

EQ: When you say tectonic shift, what do you mean by that? RN: Back to the tectonic shift to go below Rs 2; the first step is reliable policy: a dependable calendar of projects at scale will allow the industry to re-imagine what we can do as developers, designers, suppliers, builders, financiers, and operators. How we can better use technology and scale to eliminate unnecessary cost and waste.

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distributed SOLAR

MICL's Chembur project goes solar to save INR 4,35,000 INR annually

n a breakthrough step for rooftop solar installations on under construction building projects, Avishakti Rooftop Solar Pvt. Ltd has installed a rooftop PV plant for the recently completed project by Man Infraconstruction Limited (MICL Group) in Chembur, Mumbai. The rooftop solar plant has been installed at Aaradhya One, a residential tower consisting of12 floors andhousing 68 apartments. The 23.4 kWp rooftop solar plant is designed to generate approximately 36,000 units annually. This power will be utilized to light up the commonly utilized appliances of the building like lights in the common areas, lift, water pump etc.

The rooftop solar system was installed during the construction phase will be on grid and will run on Net Metering. Animesh Manek, Managing Director, Avishakti Rooftop Solar Pvt. Ltd explains the technology, “The Net Metering technology enables the system to transfer any extra electricity generated by the system back to the grid. On the days the PV system generates less, the required electricity is consumed from the grid. At the end of the year, you pay only for the net usage. i.e. electricity generated minus electricity used.”

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The project will result in an estimated saving of approximately 4,35,000 INR annually by reducing their electricity bills.This can prove to be a major financial advantage for those residing in the building. “It’s all about giving a better quality of services to our customers. Opting for rooftop solar means reducing the maintenance bills of the project’s residents.” said Ravindra K. Yevale, Senior General Manager, MICL Group. The numbers don’t indicate a major trend among real estate developers for choosing solar. With not enough knowledge about fluctuating prices, maintenance, and policy regulations for the technology, builders often skip it. However, going solar at this stage has its perks.AnimeshManek, Founder & Director, Avishakti Rooftop Solar Pvt. Ltd, the company that installed the rooftop solar system explains, “If real estate developers plan rooftop solar plants for their projects right at the construction stage, it can have its benefits. For instance, sufficient space can be planned to accommodate the solar panels as per the requirement. It also works in making the rooftop PV plant aesthetically appealing.” The benefits of rooftop solar adoption don’t end at just the financial advantages. Solar energy is a clean form of energy, which means by choosing is a step towards a greener future. The rooftop solar plant installed at Aaradhya One will prevent 64.44 tons of CO2 from being released into the air annually. “Opting for solar energy isn’t just about reducing your electricity bills. Looking at the big picture, it is a noble step toward a better environment. With a step like this, we are improving the quality of life for our customers as well as for those around us”, Parag Shah, Managing Director, MICL Group.

“Sustainable living is the need of the hour. Having a green initiative like rooftop solar speaks volumes of the progressive mindsets of the construction companies and translates into a positive impact on their image” Animesh concludes.

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inverter

GoodWe Inverters Flawless Operation under Harsh Environmental Conditions End-users frequently express concern about installationof solar systems in environments of harsh weather conditions, such as extreme temperatures, high humidity or salt spray. One interesting example is provided by the GoodWe solar inverters that have been installed close to the beautiful city of Nantong that lies just next to the Yellow Sea. Even though this is not a very large project - only 18 DT series inverters were installed- this is a case in point that illustrates the GoodWe strategy of gaining customersâ&#x20AC;&#x2122; confidence through the installation of high quality inverters capable of enduring extreme environmental conditions.

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inverter

“

Due to concerns related to the corrosion of the electronic equipment placed near humid and salty environments, we had much consideration and very rigorous products selection since the very beginning, especially for solar inverters – and only tier one products were considered for selection. We executed the 800kW project on two stages: on the first stage of the selection, only GoodWe and Huawei inverters met all the requirements; however, considering that GoodWe provided equal excellent performancein power generation as Huawei and unparalleled service in the following six months, we finally chose GoodWe as the winner of the project in the second stage.

“

In this case, the plant owner took advantage of suitable roofs, along with the surface of the water, to construct the photovoltaic power station. Three years on and this solar platform is still operating on a perfect condition with stable high energy yields every day. As for the reason why, the plant owner explained

Furthermore, GoodWe Smart Energy Management System (SEMS) has been used for visualizing and monitoring the operation of this power plant. The main focus of the system is to improve O&M efficiency by establishing an intelligent warning system which provides quick troubleshooting solution to underperforming power plants. SEMS also generates customized charts and tables to facilitate data analysis. This cost-free system can allow customers to overview their power plants via web or smartphone application.

“We are proud that our products have beaten Huawei’s inverters in this verydemanding project.” stated Mr. Huang Min, CEO of GoodWe. “GoodWe will always ensure the quality of its products before they enter the market, and among many other quality enhancement methods, we always conduct strict environmental adaptability tests for outdoor implementation through third-party authoritative institutions, in orderto ensure the long-term reliability of our inverters.”

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With an in-house R&D team of 200 employees and two global research centers, GoodWe offers a comprehensive portfolio of products and solutions for residential, commercial and utility-scale PV systems, ensuring that performance and quality go hand-in-hand across the entire range. On the one hand, the inverter comes on a die-casting case made of aluminum-magnesium alloy, which has a strong anti-corrosiveness and good air tightness preventing moisture and wet dust into the fuselage inside.On the other hand, only the most

reliable and prominent components are selected for the inverters after rigorous testing. For example, GoodWe inverter uses a dual 85-film capacitor, which withstand up to 85 ℃ high temperatures and 85% humidity. In addition, all GoodWe inverters pass an aging test at 50 ℃ in a high humidity, sealed room for 6 hours to simulate extreme temperature conditions and ensure their maximum performance without degradation. All GoodWe inverter series are IP65 waterproof and dustproof for indoor or outdoor mounting.

November Part-A 2018

BUSINESS & FINANCE

The Dynamics of Merger and Acqui -sition Processes in Renewable Energy TIMING: All counterparties have an aligned interest in completing a transaction quickly. From the seller’s perspective, the time value of consideration. From the buyers, certainty of the deal, realization of fees (for fund managers) and capacity target realization, and of course the success fees for the bankers involved. Common pitfalls we have observed is undervaluing the impact of time value (for the seller) and prolonged decision-making post receipt of offers. In our experience, buyers in the sector are sophisticated enough to move efficiently toward the offer submission stage. Moving from the non-binding-offer stage to transaction execution is where the most substantial amount of time lapses. 6-12 months remains the prudent expectation for the completion of a deal. UNCERTAINTY: There will be unexpected forces throughout a transaction given the dynamics of the market. It is prudent to assume this as a rule rather than the exception. We have witnessed substantial movements in debt rates, opportunity costs for the buyers in the market (e.g., concerning other opportunities and bids), exit strategies, and technical understanding. Beyond these events, other macro issues (for example de-monetization, GST, implementation of duties, land irregularities, environmental factors such as flooding, and others). One or more such factors are almost always inevitable, during a 6-12-month transaction cycle. Expectations for both buyers and sellers should be managed accordingly, and a sense of “urgency” and “momentum” are critical in moving a deal across the finish line.

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I am writing to capture learnings from our experience working on M&A transactions in the renewable energy sector in India. As a firm, a core part of our business focuses on assisting developers of wind, solar and hydroelectric projects in sales processes and finding buyers for their portfolios. We have had several successes, as well as failures. There are five (5) areas of consideration we are far more cognizant of which relate to these deals.

QUALITY: Unlike what we have observed in developed markets, the range of quality across assets in India varies substantially. Desktop due diligence may not be adequate in assessing the ultimate value of a transaction. At Greenstone, we have begun to analyze technical inputs (e.g. prudent loss factors in resource projections) which we would expect to be incorporated from buyers. Additionally, we have had good experience highlighting the key risks and issues upfront ahead of any decision. It is important for sellers to be forthcoming, comprehensive, and clear about all of the potential issues to build trust with the other parties and reduce any surprises moving forward. SUPPLY AND DEMAND: The supply and demand dynamics of the market should always be kept in mind. For example, in the first half of 2017, the sector witnessed few auctions despite tremendous demand from new entrants and existing platforms planning to scale. Consequently, organic capacity was awarded only to the most aggressive or well capitalized groups (from a cost perspective). This increased the focus from parties on M&A and we witnessed several deals completed in the subsequent 12-month period. Today, however, developers have significant greenfield opportunities, in addition to numerous opportunities on the acquisition side which does impact buyer’s demand. We always consider which side of the market has leverage in general.

VALUATION: Metrics alone are not enough to assess valuation (e.g. DCF or EV/EBITDA) figures. Structure of the transaction, quality, supply/demand dynamics, trajectory of interest rates, and other factors ultimately have an impact on the final price. Thus, the basis for the metrics (original projections vs. revised projections) has a tremendous impact. Ultimately, we endeavor to discuss each of these areas with our clients and manage expectations concerning future potential roadblocks and critical areas of decision making. This work is an on-going journey and we continue to learn from our own experience and that of others. The value of consolidation remains: moving assets to groups who are better positioned to manage risks and optimize performance, unlock value for existing developers, and release capital for future projects. The goal of Greenstone is to assist the development of the renewable energy sector in India by enhancing the efficiency of financing across these transactions. We remain optimistic about the sector and the deal-making to come.

AUTHORS : RAHUI GOSWAMI Managing Director of Greenstone Advisors LLP

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November Part-A 2018

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inverter

Quad-core Inverter, Smart and Powerful Inverter The developments of inverter, UPS, EV charger and VFD are based on the developments of power device and control chip. From 2008 to 2018 the inverter’s price has been reduced by more than 80%, yet the efficiency has been increased by more than 10%. These all depend on the improvements of power device and control chip.

or inverter control chip, Texas Instruments is No.1 in this area. To ensure the leading performance of chips in power electronic industry, TI has made a lot effort on design. DSP controller TMS320C200 is with built-in flash rom, high speed A/D converter, high speed I/O port, reliable CAN module, PWM controller, etc. Nearly all the necessary functions have been integrated. For the software part, TI used SVPWM, PID control, phase-sync loops, MPPT tracking and islanding detection. Further, TI designed a large amount of sample programs. And even for the inverter’s topology and chip peripheral circuit design, TI provides designing principle and samples. With these

November Part-A 2018

software and hardware support, inverter manufacturer can quickly launch new products. For quite a while inverter only has one core chip, which is DSP. The development of string inverters did not 100% follow TI’s roadmap and it provides opportunities to other control chip suppliers. Firstly, power capacity of inverters grows larger and for low voltage 400V on-grid inverters, the maximum capacity could reach up to 80kW. Also, inverter has to manage more and more devices like panels, DC cables and even AC distribution cabinet and grid. Further, the communication functions become more powerful. Inverter needs multiple USB, RS485, RS232 ports to connect with computer,

flash disk, data logger, meter and CT. In this case, one DSP is no longer enough. CPLD chips which is designed to handle complicated processing and ARM communication specified chips are now necessary. Power capacity has increased from 10kw to 80kw by eight times, but the volume increased from 43dm3 to 146 dm3 by only 3.4 times, which means the power density has increased by 1.86 times. The increasing power not only brings larger current but also the complexity of control algorithm. Take Growatt 80k inverter for example. With 6 MPPTs, it needs to control six different circuits and the controlling difficulty increased by six times.

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inverter MORE FUNCTIONS : string monitoring, I/V curve diagnosis, AFCI detection, panels PID healing, grid error recording, power factor adjustment and grid harmonics adjustment. With the development of solar industry these years, there are fewer and fewer suitable roofs with good grid environment. The installation environment become harsh with low PF or high harmonics. Inverter, as the only smart device in the solar system, needs to provide more added values to make PV industry more competitive, so that revenue from electricity bill is no longer the only income source.

DSP, CPLD and ARM are all embedded processors with calculation, storage and processing functions. With different expertise, they are for different applications. DSP, digital signal processing expert, has got the most sufficient software instructions and focuses mostly on calculation. Growatt 80kw inverter has dual DSPs, one is for PV side MPPT and voltage boosting, the other is for AC side inverting, and they are independent but cooperative to enhance the system reliability. CPLD is high speed programmable logic components with the fastest

speed and hard ware algorithm. It can deal with multiple tasks simultaneously. For example, you have a solar system on roof of a factory thatâ&#x20AC;&#x2122;s with large overhead crane. Start and stop of the crane will lead to short-time high harmonics, and regular inverter cannot protect the IGBT within such short time and it will cause IGBT to blow. For Growatt Max series inverter, through DSP + CPLD combination along with inverter waveform tracing current limitation function, it can improve the acting speed for 10+ times. Therefore, Growatt Max can shut down the IGBT before electric surge.

ARM is the communication expert and is mainly used for task management. Nowadays more than 90% phones uses ARM architecture, just like TI. ARM provides a serial of communication solutions like SPI bus, 232 bus, 485 bus, USB bus and Ethernet bus. The data bus is separated from address bus in order to achieve quick information exchange between control chips, operation monitoring, data storage and external communication with higher data renew frequency and shorter software updating time. Growatt Max series string inverter adopts a

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quad-core architecture with dual DSP, CPLD and ARM, which makes it more functional and reliable. To date, it has been widely used in many scenarios like Chengdu Shuangliu airport (high EMC requirement), Jiangsu Changzhou machine factory (high harmonics), Changchun Auto factory(ultra-low temperature), and Zhuhai water processing factory(high humidity). In these cases, the inverter works stably, generates high power, and perfectly handles various harsh climate environments and electrical environments.

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Energy storage

Vanadium : The World’s Critical Elementas Fueling a Major Trade War The move towards the adoption of electric vehicles (EV’s) along with solar and wind power generation has sparked interest in what could become the next super metal: vanadium. The United States doesn’t currently produce vanadium; however, United Battery Metals (OTC: UBMCF) (CSE:UBM) (FWB:0UL) (Profile) is in development of a world-class vanadium resource in Colorado. The vanadium redox battery (VRB) is a potentially revolutionary way to store energy, and major miners such as Largo Resources (TSX: LGO) (OTC: LGORF) may not be able to react quickly enough to offset the potential spike in vanadium demand. The adoption of VRB technology could provide a catalyst for the vanadium industry, a positive for companies such as Prophecy Development Corp. (TSX: PCY) (OTC: PRPCF), Vanadium One Energy Corp. (TSX.V:VONE), and First Vanadium Corp. (TSX.V:FVAN) (OTC: CCCCF), which are eager to serve this growing marketplace.

November Part-A 2018

CRITICAL TO SECURITY

he Department of the Interior deemed vanadium as one of the commodities considered critical to the economic and national security of the United States. This recognition is a result of President Donald J. Trump’s executive order to break America’s dependence on foreign minerals President Trump has moved relentlessly against China on trade policy, a country that happens to be the global leader in vanadium production by a wide margin. Without Chinese vanadium to depend on, the United Battery Metals’ (OTC: UBMCF) (CSE:UBM) Wray Mesa, Colorado, project could help the US develop its own domestic vanadium supply. The price of V2O5 vanadium pentoxide flake 98 percent, a common form of vanadium, has increased significantly over the last three years. The global shift toward EVs is growing stronger. According to Forbes, China is subsidizing the purchase price of an EV by as much as $10,000 per vehicle. Beijing wants to curb its dependency on dirty fuel sources, which has required the government to slash the number of new vehicle registrations allowed in Beijing this year from 150,000 to just 100,000. Of those 100,000, 60 percent must be an EV. Vanadium redox batteries offer a potentially gamechanging solution for stationary storage units and charging stations. Unlike lithium-ion batteries, VRBs can be charged and discharged simultaneously, allowing up to 50 vehicles to connect to VRB charging stations at the same time. This means the trend towards EVs could require significant amounts of vanadium in the form of charging infrastructure to provide energy to these new vehicles. Until recently the steel industry used the majority of the vanadium supply as an additive to strengthen steel. Demand in the steel industry continues to grow, thanks in part to the current administration’s support of domestic steel production, which has caused companies such as US Steel to open new facilities and cancel plant closures nationwide. Now it looks like vanadium could be vital for cutting-edge battery technology in addition to being a steel additive. There are currently no active vanadium producers in the United States, meaning United Battery Metals could have a head start in development, thanks to its 3,000-acre land package in Wray Mesa. In addition to the steel industry and car charging stations, VRB’s could play a critical role in grid power storage. Solar and wind power nationwide is a burgeoning industry that is growing exponentially with a shift to clean energy solutions. California has recently announced that by 2020 all homes and mid-rises will be required to install solar panels. It is here that VRBs can play a part. The ability to store power from low-usage periods and spill it back into the grid during peak demand periods makes VRB’s a far superior choice for large-scale energy storage than lithium-ion batteries. Experts predict that it is just a matter of time before this law will be adopted nationwide. Regulations such as these could become a big driver for vanadium demand in the United States, a country in desperate need of a domestic resource.

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Energy storage GROWING PRESSURE ON BATTERY INFRASTRUCTURE

V’s offer society an incredible transportation option that could drastically reduce carbon emissions. As the shift towards EV’s continues, a new network of charging stations could be necessary to provide the vehicles with electricity. With multiple governments already moving to regulate internal combustion engine vehicles, the move towards electric transportation has already begun, meaning the race is on to create the energy infrastructure necessary to support these new electric vehicles. The electric vehicle revolution has required massive amounts of lithium to produce the lithium-ion batteries found in EV’s such as the Tesla. However, the next battery revolution could be built on a different resource altogether. As energy demands grow and the lithiumion battery becomes as common as the lightbulb, new sources of energy have the potential to become the backbone of the next battery industry. In the case of vanadium, the unique properties of the metal have enabled new means of electric storage, which could greatly benefit vanadium miners such as UBM.

VANADIUM: ENABLING THE ENERGY STORAGE REVOLUTION

anadium redox batteries offer unique advantages that no other battery can match. Unlike lithium-ion batteries, VRB’s don’t heat up when in use, and they can be charged and discharged at the same time. Today VRB’s are being developed to work in conjunction with renewable power sources and EV’s. Unfortunately, there isn’t currently enough vanadium in production to meet growing demand. For United Battery Metals, the vanadium supply crunch in the United States offers a potentially lucrative opportunity. The company has a large land package in a politically stable jurisdiction, and its Wray Mesa project has the potential to become the lone vanadium producer in the country. VRB’s also solve a common problem for sustainable power sources, offering an almost perfect solution for storing power at stationary power stations. They offer a long service life and can be recycled when they need to be replaced. VRB’s can also charge and discharge simultaneously, meaning a VRB-based power station could be capable of charging itself through the grid while also providing energy to vehicles or other devices. According to Forbes, the number of EV’s sold globally is expected to increase from 1.2 million in 2017 to 2 million in 2019. This trend could also greatly benefit vanadium miners such as United Battery Metals, which are capable of providing enough of the super metal necessary to jumpstart the next battery revolution.

A HEAD START IN THE RACE TO VANADIUM PRODUCTION

United Battery Metals could be in a prime position to meet US demand with its wholly controlled Wray Mesa project in the UraVan district of Colorado. This year the USGS added vanadium to its list of strategic elements, meaning the Wray Mesa project could become incredibly important to the United States and its national

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interests as the country focuses on developing its own domestic resources. Wray Mesa has a chance to become the next major source of vanadium in the United States. According to a 43-101 prepared in 2013, Wray Mesa is sitting on an estimated resource of 2,640,000 pounds of vanadium. The property is also close to the town of La Salle, which has access to established roads, and municipal water only six miles away. With a global scramble to lock down large amounts of high-grade vanadium taking place, UBM could be in an optimal position to capitalize on the trend. The UruVan district has a history of producing both uranium and vanadium, with a number of small mom-and-pop mines populating the area. Colorado is also a mining-friendly jurisdiction with a solid track record of protecting resource investments. United Battery Metals has put together a land package that has an estimated resource of more than 2.6 million pounds of vanadium; However, the resource model the company used is based on exploration results that likely understated the resource. Very little modern drill work has been undertaken in the UruVan district, meaning there could be a lot more vanadium waiting to be found during exploration. Most of the elements that will drive the shift away from carbon-heavy power are in short supply. Metals such as vanadium and cobalt have been an afterthought to industry for decades; however, lately the price of these vital elements has been exploding.

OTHERS IN THE VANADIUM SPACE

rophecy Development Corp. (TSX: PCY) (OTC: PRPCF) owns the Gibellini project in Nevada, which is one of the only large-scale, open-pit vanadium projects of its kind in North America. The project is currently undergoing EPCM and EIS preparation and could be the right project at the right time. Vanadium One Energy Corp. (TSX.V:VONE) is a mineral exploration company whose mandate is to acquire vanadium and manganese mineral projects within North America. The company plans to define the economic potential of its properties, define end markets, and process and refine raw materials onsite to create a closed-loop supply chain with end users.Largo Resources (TSX: LGO) (OTC: LGORF) is a strategic mineral company focused on the product of vanadium flake, high-purity vanadium flake, and high-purity vanadium powder. One of the lowest cost producers of V205, the company currently operates the Maracás Menchen Mine in Brazil, an open pit mine that boasts consistent, robust production rates. First Vanadium Corp. another mining company developing projects in North America. The company is working to catch up with vanadium demand through its Carlin project in Nevada. The Carlin project was originally discovered by Union Carbide Corp. in the 1960s, including 127 rotary drill holes that have systematically defined near surface shallow dipping deposits. First Vanadium is also exploring a copper project just outside of Jerome, Arizona.

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world bank report

Where Sun Meets Water Floating Solar Market Report

nergy Sector Management Assistance Program (ESMAP) The Energy Sector Management Assistance Program (ESMAP) is a global knowledge and technical assistance program administered by the World Bank. ESMAP assists low- and middle-income countries to increase their know-how and institutional capacity to achieve environmentally sustainable energy solutions for poverty reduction and economic growth. ESMAP is funded by Australia, Austria, Canada, Denmark, the European Commission, Finland, France, Germany, Iceland, Italy, Japan, Lithuania, Luxemburg, the Netherlands, Norway, the Rockefeller Foundation, Sweden, Switzerland, the United Kingdom, and the World Bank.

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world bank report SOLAR ENERGY RESEARCH INSTITUTE OF SINGAPORE (SERIS) The Solar Energy Research Institute of Singapore (SERIS) at the National University of Singapore, founded in 2008, is Singapore’s national institute for applied solar energy research. SERIS is supported by the National University of Singapore (NUS), National Research Foundation (NRF) and the Singapore Economic Development Board (EDB). It has the stature of an NUS University-level Research Institute and is endowed with considerable autonomy and flexibility, including an industry friendly intellectual property policy. SERIS’ multi-disciplinary research team includes more than 160 scientists, engineers, technicians and PhD students working in R&D clusters including i) solar cells development and simulation; ii) PV modules development, testing, certification, characterization and simulation; iii)

PV systems, system technologies, including floating PV, and PV grid integration. SERIS is ISO 9001 & ISO 17025 certified. SERIS has extensive rich knowledge and experience with floating PV systems, including having designed and operating the world’s largest floating PV testbed in Tengeh Reservoir, Singapore, which was commissioned by PUB, Singapore’s National Water Agency, and the EDB. Launched in October 2016, this testbed compares side by side various leading floating PV solutions from around the world. Through detailed monitoring and in-depth analysis of performance of all the systems, SERIS accumulated deep insight into floating solar and SERIS’ objective is to disseminate the best practices in installation and operation of floating solar pants as well as help to formulate standards for floating PV.

EXECUTIVE SUMMARY FLOATING SOLAR MARKET REPORT WHY FLOATING SOLAR?

Other Potential Advantages Of Floating Solar Include :

Floating solar photovoltaic (PV) installations open up new opportunities for scaling up solar generatingcapacity, especially in countries with high population density and competing uses for available land. Theyhave certain advantages over land-based systems, including utailization of existing electricity transmission infrastructure at hydropower sites, close proximity to demand centers (in the case of water supply reservoirs), and improved energy yield thanks to the cooling effects of water and the decreased presence of dust. The exact magnitude of these performance advantages has yet to be confirmed by larger installations, across multiple geographies, and over time, but in many cases they may outweigh any increase in capital cost. The possibility of adding floating solar capacity to existing hydropower plants is of particular interest, especially in the case of large hydropower sites that can be flexibly operated. The solar capacity can be used to boost the energy yield of such assets and may also help to manage periods of low water availability by allowing the hydropower plant to operate in “peaking” rather than “baseload” mode. And the benefits go both ways: hydropower can smooth variable solar output by operating in a “load-following” mode. Floating solar may therefore be of particular interest where grids are weak, such as in Sub-Saharan Africa and parts of developing Asia.

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• • •

Reduced evaporation from water reservoirs, as the solar panels provide shade and limit the evaporative effects of wind Improvements in water quality, through decreasedalgae growth Reduction or elimination of the shading of panels by their surroundings Elimination of the need for

•

major site preparation, such as leveling or the laying of foundations, which must be done for land-based installations Easy installation and deployment in sites with low anchoring and mooring requirements, with a high degree of modularity, leading to faster installations

An overview of floating solar technology : The general layout of a floating PV system is similar to that of a landbased PV system, other than the fact that the PV arrays and often the inverters are mounted on a floating platform (figure 1). The direct current (DC) electricity generated by PV modules is gathered by combiner boxes and converted to alternating current (AC) by inverters. For small-scale floating plants close to shore, it is possible to place the inverters on land— that is, just a short distance from the array. Otherwise, both central or string inverters on specially designed floats are typically used. The platform, together with its anchoring and mooring system, is an integral part of any floating PV installation.

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world bank report FIGURE 1 Schematic representation of a typical large-scale floating PV system with its key components

Source: Solar Energy Research Institute of Singapore (SERIS) at the National University of Singapore (NUS). Currently most large-scale floating PV plants are deployed using pontoon-type floats, with PV panels mounted at a fixed tilt angle. Typically, the floating structure can be made of so-called pure floats or floats that are combined with metal trusses (figure 2). A pure float configuration uses specially designed self-buoyant bodies to which PV panels can be directly affixed. This configuration is the most common. It is available from several suppliers and claims an installed capacity worldwide of several hundred megawatts. Another type of design uses metal structures to support PV panels in a manner similar to land-based systems. These structures are fixed to pontoons whose only function is to provide buoyancy. In this case, there is no need for specially designed floats. The floating platform is held in place by

The current global market for floating solar The first floating PV system was built in 2007 in Aichi, Japan, followed by several other countries, including France, Italy, the Republic of Korea, Spain, and the United States, all of which have tested small-scale systems for research and demonstration purposes. The first commercial installation was a 175 kWp system built at the Far Niente Winery in California in 2008. The system was floated atop a water reservoir to avoid occupying land better used for growing grapes. Medium-to-large floating installations (larger than 1 MWp) began to emerge in 2013. After an initial wave of deployment concentrated in Japan, Korea, and the United States, the floating solar market spread to China (now the largest player), Australia, Brazil, Canada, France, India, Indonesia, Israel, Italy, Malaysia, Maldives, the Netherlands, Norway, Panama, Portugal,Singapore, Spain, Sweden, Sri Lanka, Switzerland, Taiwan, Thailand, Tunisia, Turkey, the United Kingdom, and Vietnam. Projects are under consideration or development in Afghanistan, Azerbaijan, Colombia, Ghana, and the Kyrgyz Republic, as well as other countries.

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an anchoring and mooring system, the design of which depends on factors such as wind load, float type, water depth, and variability in the water level. The floating platform can generally be anchored to a bank, to the bottom, to piles, or to a combination of the three. The developer selects a design suitable to the platformâ&#x20AC;&#x2122;s location, bathymetry (water profile and depth), soil conditions, and variation in water level. Bank anchoring is particularly suitable for small and shallow ponds, but most floating installations are anchored to the bottom. Regardless of the method, the anchor needs to be designed so as to keep the installation in place for 25 years or more. Mooring lines need to be properly selected to accommodate ambient stresses and variations in water level. FIGURE 2 The most common float types: pure float (top) and pontoons with metal structures (bottom)

INDONESIA

INDIA

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world bank report Recently, plants with capacity of tens and even hundreds of megawatts have been installed in China; more are planned in India and Southeast Asia. The first plant larger than 10 MWp was installed in 2016, and in 2018 the world saw the first several plants larger than 100 MWp, the largest of which is 150 MWp. Flooded mining sites in China support most of the largest installations (box 1). With the emergence of these new markets, cumulative installed floating solar capacity and annual new additions are growing exponentially (figure 3). As of mid-2018, the cumulative installed capacity of floating solar was approaching 1.1 gigawatt-peak (GWp), the same milestone that ground-mounted PV reached in the year 2000. If the evolution ofland-based PV is any indication, floating solar could advance at least as rapidly, profiting as it does from

Recently, plants with capacity of tens and even hundreds of megawatts have been installed in China; more are planned in India and Southeast Asia. The first plant larger than 10 MWp was installed in 2016, and in 2018 the world saw the first several plants larger than 100 MWp, the largest of which is 150 MWp. Flooded mining sites in China support most of the largest installations (box 1). With the emergence of these new markets, cumulative installed floating solar capacity and annual new additions are growing exponentially (figure 3). As of mid-2018, the cumulative installed capacity of floating solar was approaching 1.1 gigawatt-peak (GWp), the same milestone that groundmounted PV reached in the year 2000. If the evolution ofland-based PV is any indication, floating solar could advance at least as rapidly, profiting as it does from

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FIGURE 4 Floating solar installations in Malaysia, and Japan

MALASIA

JAPAN

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world bank report Hydropower-connected solar PV systems The development of grid-connected hybrid systems that combine hydropower and floating photovoltaic (PV) technologies is still at an early stage. Only a small system of 218 kilowatt-peak (kWp) has been deployed in Portugal (see photo) (Trapani and Santafé 2015). But many projects, and of much greater magnitudes, are being discussed or developed across the world. The largest hybrid hydro-PV system involves groundmounted solar PV. This is the Longyangxia hydroconnected PV power plant in Qinghai, China (Qi 2014), which is striking for its sheer magnitude and may be considered a role model for future hybrid systems, both floating and land-based. The Longyangxia hydropower plant was commissioned in 1989, with four turbines of 320 megawatts(MW) each, or 1,280 MW in total. It serves as the major load peaking and frequency regulation power plant in China’s northwest power grid. The associated Gonghe solar plant is 30 kilometers (km) away from the Longyangxia hydropower plant. Its initial phase was built and commissioned in 2013 with a nameplate capacity of 320 megawatt-peak (MWp). An additional 530 MWp was completed in 2015. First-ever hydropower-connected floating solar operation, Montalegre, Portugal

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Marine installations are also appearing. The deployment of floating solar technologies near shore may be of strong interest to populous coastal cities. Indeed, it may be the only viable way for small island states to generate clean solar power at scale, given the limited availability of land suitable for ground-mounted PV installations. The PV power plant is directly connected through a reserved 330 kilovolt (kV) transmission line to the Longyangxia hydropower substation. The hybrid system is operated so that the energy generation of the hydro and PV components complement each other (Choi and Lee 2013). After the PV plant was added, the grid operator began to issue a higher power dispatch set point during the day. As expected, on a typical day the output from the hydro facility is now reduced, especially from 11 a.m. to 4 p.m., when PV generation is high. The saved energy is then requested by the operator to be used during early morning and late-night hours. Although the daily generation pattern of the hydropower has changed, the daily reservoir water balance could be maintained at the same level as before to also meet the water requirementsof other downstream reservoirs. All power generated by the hybrid system is fully absorbed by the grid, without any curtailment. This system shows that hydro turbines can provide adequate response as demand and PV output varies. POLICY AND REGULATORY CONSIDERATIONS Currently, even in countries with significant floating solar development there are no clear, specific regulations on permitting and licensing of plants. Processes for the moment are assumed to be the same as for ground-mounted PV, but legal interpretation is needed in each country. In some countries, drinking water reservoirs or hydropower reservoirs are considered national-security sites, making permitting more complex and potentially protracted. As highlighted in this report, floating solar deployment is expected to be cost-competitive under many circumstances and therefore not to require financial support. Nevertheless, initial projects may require some form of support to overcome barriers associated with the industry’s relatively limited experience with this technology. So far, a number of countries have taken different approaches to floating PV. Typical policies currently supporting floating solar installations can be grouped into two categories : FINANCIAL INCENTIVES: • Feed-in tariffs that are higher than those for groundmounted PV (as in Taiwan, China) • Extra bonuses for renewable energy certificates (as in the Republic of Korea) • A high feed-in tariff for solar PV generally (as in Japan) • Extra “adder” value for floating solar generation under the compensation rates of state incentives program (as in the U.S. state of Massachusetts). Supportive governmental policies: • Ambitious renewable energy targets (as in Korea and Taiwan) • Realization of demonstrator plants (as in the Indian state of Kerala)

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world bank report

•

Dedicated tendering processes for floating solar (as in China, Taiwan, and the Indian state of Maharashtra)

•

Openness on the part of the entities managing the water bodies, such as tenders for water-lease contracts (as in Korea).

• Special considerations for hydro-connected plants:

– Whether the hydropower plant owner/operator is allowed to add a floating solar installation

– Whether the hydropower plant owner/opera tor is allowed to provide a concession to a third party to build, own, and operate a floating solar plant – Management of risks and liabilities related to hydropower plant operation and weather events that can affect the solar or hydropower plants

– Rules of dispatch coordination of the solar and the hydropower plants’ outputs.

However, for most countries hoping to develop a well-functioning floating solar segment of a wider solar PV market, the following policy and regulatory considerations need to be addressed: •

Unique aspects of permitting and licensing that necessitate interagency cooperation between energy and water authorities. This also includes environmental impact assessments for floating PV installations.

•

Water rights and permits to install and operate a floating solar plant on the surface of a water body and anchor it in or next to the reservoir.

•

Tariff setting for floating solar installations (which could be done as for land-based PV, for example, through feed-in tariffs for small installations and tenders or auctions for large ones).

•

Access to existing transmission infrastructure:

– How will this be managed?

– Who will be responsible?

– What permits/agreements will be required?

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MARKET OPPORTUNITIES There are more than 400,000 square kilometers (km2 ) of man-made reservoirs in the world (Shiklomanov 1993), suggesting that floating solar has a theoretical potential on a terawatt scale, purely from the perspective of the available surface area. The most conservative estimate of floating solar’s overall global potential based on available man-made water surfaces exceeds 400 GWp, which is equal to the 2017 cumulative installed PV capacity globally. Table 1 provides a summary of the man-made freshwater bodies supporting this very

November Part-A 2018

world bank report conservative estimate. Considering global irradiance data on significant water bodies, and assuming 1 percent to 10 percent of their total surface area as used for floating solar deployment, an estimate of potential peak capacity was derived using the efficiency levels of currently available PV modules and the surface area needed for their installation, operation, and maintenance. Then, to estimate potential electricity generation, the capacity estimate was multiplied by the expected specific energy yield, with local irradiance used alongside a conservative assumption of an 80 percent performance ratio. These estimates use very low ratio of coverage of the reservoir. In reality, many existing projects implemented on industrial or irrigation reservoirs cover much more significant portions of the reservoirs, after environmental studies confirm no expected impact on the aquatic life in the reservoirs. The situation from one reservoir to another can differ significantly, however. There are individual dams on each continent that could theoretically accommodate hundreds of megawatts or, in some cases, gigawatts of floating solar installations. Examples of such reservoirs are provided in table 2. While hydropower and solar capacity do not provide the same type of power production (solar typically has a lower capacity factor and generates variable power), the table compares the surface needed for a PV plant having the same peak capacity as the hydropower reservoir.

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COSTS OF FLOATING SOLAR AND PROJECT STRUCTURING Capital costs

The capital costs of floating PV are still slightly higher or comparable to those of ground-mounted PV, owing chiefly to the need for floats, moorings, and more resilient electrical components. The cost of floats is expected to drop over time, however, owing to better economies of scale. Total capital expenditures for turnkey floating PV installations in 2018 generally range between USD 0.8â&#x20AC;&#x201C;1.2 per Wp (figure 6), depending on the location of the project, the depth of the water body, variations in that depth, and the size of the system. China is the only country that has yet built installations of tens to hundreds of megawatt-peak in size. The costs of smaller systems in other regions could vary significantly. As reflected in figure 6, Japan remains a region with relatively high system prices, while China and India achieve much lower prices, a pattern that can also be seen in ground-mounted and rooftop solar systems when compared to the global average.

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world bank report

Levelized Costs Of Electricity, Including Sensitivity Analysis Calculated on a pretax basis, the levelized cost of electricity (LCOE) for a generic 50 MW floating PV system does not differ significantly from that of a groundmounted system. The higher initial capital expenditures of the floating system are balanced by a higher expected energy yield—conservatively estimated at 5 percent, but potentially as high as 10–15 percent in hot climates. This result holds at a range of discount rates, as shown in table 3. Both projects have the same theoretical financial assumptions and irradiance. However, the main differentiating factors are system price (a floating system is considered 18 percent more expensive), insurance costs (0.4 percent of the floating system price vs. 0.3 percent for ground-mounted systems), and performance ratios (5 percent higher for floating systems). The LCOE calculation represents only a break-even analysis—that is, if the tariff were set at the LCOE, the net present value of the project would be zero. Equity investors would presumably require a higher tariff from the off-taker to make the project economically viable for them, assuming debt financing was accessible. If the performance ratio of a floating solar projectis assumed to be 10 percent higher than that of a ground-based project (instead of 5 percent), a sensitivity analysis hows that the LCOE for the base case decreases to USD 5.3 cents per kWh, almost equivalent to the LCOE of the ground-mounted PV project.

Project structuring

To understand how floating solar projects are typically financed, it is useful to classify them into two main categories: those with an installed capacity of 5 MWp or lower, and and those with an installed capacity greater than 5 MWp. Table 4 summarizes typical financial structures for these categories, which are similar to financial structures for land-based PV deployment. To gain trust in the technology, public grants are often

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provided to finance R&D and pilot projects (<1 MWp), which are often run by universities or public research institutions. Given their small size (except in China), most floating solar projects are financed in local currencies and mainly by local or regional banks. Japan, Taiwan, and a few other areas have seen an increased involvement of local commercial banks seeking to take advantage of favorable long-term feed-in tariffs available for floating solar. The involvement of large international commercial banks, and of multilateral development finance institutions in developing countries, is expected to grow as larger projects become more common in areas outside China.

CHALLENGES While enough large-scale projects have been imple ented to permit floating solar technology to be considered commercially viable, there are remaining challenges to its deployment—among them the lack of a robust track record; uncertainty surrounding costs; uncertainty about predicting environmental impact; and the technical complexity of designing, building, and operating on and in water (especially electrical safety, anchoring and mooring issues, and operation and maintenance). The experience of other technologies operating in aquatic environments, including near-shore environments, offers good lessons in the last of these areas.

November Part-A 2018

world bank report

ed to permitting and commercial aspects include: a lack of clarity on licensing/permitting (especially concerning water rights and environmental impact assessment); difficulties in selecting qualified suppliers and contractors; difficulties in designing insurance policies that include liabilities for potential damage of the hydro plant; and uncertainties about the adequacy of warranties of the performance or reliability of critical components. In most countries, the policy and regulatory framework needs to be adjusted to provide more clarity in some of these reas.

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VARTA Storage GmbH and Solare Datensysteme GmbH Strengthen Their Strategic Cooperation Installation of solar PV plants under 10kWp increased by 46% from July 2015 to July 2018 and is still climbing (source: BSW Solar).

he reduction of feed-in tariffs has made the consumption of self-produced power one of the most important aspects of PV power. It is essential to integrate energy storage and energy management systems to continue to improve the efficiency of solar power. For this reason, VARTA Storage GmbH and Solare Datensysteme GmbH are intensifying the cooperation that they established in 2015. Geislingen-Binsdorf, Germany, 4 October 2018: After successfully developing the intelligent charging time shift function, both companies are intensifying their cooperation. The goal is to make PV power even more appealing.

Regarding increased cooperation, Dr. Frank Schlichting, CEO of Solare Datensysteme GmbH, says, “We look forward to continuing our working relationship with VARTA Storage GmbH to ensure that PV power is used where it is generated. The two components of energy storage and energy management have to be optimally matched to each other. The professional cooperation of VARTA and SDS is based on the common goal of ‘a successful transition to clean energy.’ This is our motivation and a significant factor in our success.” Gordon Clements, General Manager of VARTA Storage, a subsidiary of VARTA AG have a similar view: “For us, it is important that energy storage is optimally integrated into the entire PV system. We all benefit from the resulting added value, increased productivity, greater flexibility and improved usability – not just the environment.”

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November Part-A 2018

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