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RSA -The Rajasthan Solar Association

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Ministry of New and Renewable Energy 18-January, 2018 10:56 IST
International Solar Alliance Forum at World Future Energy Summit, Abu Dhabi

Shri R.K. Singh announces $ 350 million Solar Development Fund by the Government of India for Solar Projects Financing

India has one of the fastest growing Renewable Energy programmes in the World and would achieve 175 GW target of installed Renewable Energy capacity well before 2020: Shri R.K. Singh

On receipt of 15 ratifications, the International Solar Alliance (ISA) Framework Agreement entered into force on the 6th December, 2017 thereby making ISA a de jure treaty based international intergovernmental organisation. So far 19 countries have ratified and 48 countries have signed the ISA Framework Agreement.

In one of its first outreach programmes post-ratification, the ISA hosted a two Day Event ‘International Solar Alliance Forum’ during 17-18th January, 2018 at the Future World Energy Summit (WFES) 2018. WFES is a signature event of a global initiative, Abu Dhabi Sustainability Week, hosted by Masdar scheduled during 15-18th January, 2018 at Abu Dhabi (UAE). During the ISA event an ISA Pavilion was also set up for dissemination of information about ISA and its activities and programmes.

On the first day of the ISA Forum, 17th January, 2018 the Ministerial Plenary of ISA Energy Ministers was held. The ISA Ministerial was attended by seven Energy Ministers of ISA Member countries. They presented their views on benefits of collaboration, synergies, and knowledge sharing at the international level to scale up solar energy for universal energy access and investing in Innovations, Technology and R&D for solar projects followed by breakout sessions.

Delivering the keynote address on the occasion, Shri Raj Kumar Singh, Minister of State (IC) for Power and New & Renewable Energy, Government of India congratulated ISA for organising the ISA Forum as its first overseas outreach activity. He stated that over the years the Renewable Energy has become cheaper and is set to replace conventional energy, which is a healthy development, and added that India has one of the fastest growing Renewable Energy programmes in the World and the country would achieve its target of 175 GW of installed Renewable Energy capacity well before 2020. The Minister said that that ISA shall help mobilize sufficient funds for solar energy projects. During his address, Shri Singh announced setting up of a $ 350 million solar development fund by the Government of India for solar projects financing.

While formally opening the Ministerial session and welcoming the participants, Shri Upendra Tripathy, Interim Director General of ISA informed about exchange of LoIs / MoUs of Ten solar related projects which various company and bankers signed early in the day. He further stated that ISA shall stand for translating ‘Action into Transaction’. He also informed that over 100 projects shall be signed by April 2018 under ISA umbrella. He also thanked member countries and various stakeholders making ISA a reality in a short time. He further informed about and extended invitation for the 2nd RE-INVEST meet to be held in partnership with the Ministry of New and Renewable Energy, Government of India during 19-21th April, 2018.

The Ministerial Plenary was followed by three technical panel discussions: ISA a Trillion Dollar Opportunity; Networking of R&D Institutions in ISA Countries for Solar Innovation, Incubation & Start-Ups; and Best Practices for Solar Capacity Building in ISA Countries. These sessions were attended by Energy Ministers, policymakers, Multilateral Banks & Finance Institutions, R&D Institutions & Innovators, solar project developers and manufacturers, investors and other stakeholders.

At the end of the ISA Ministerial session, the YES Bank committed financing solar projects of over $5 Billion. M/s CLP and M/s NTPC Limited announced forging partnership deal with ISA and committed to make voluntary contribution of $1 million each to ISA fund corpus. IEA and GCF also announced entering into partnership with ISA.

Being an action-oriented organisation, ISA promotes actual on ground rolling out of solar projects. Therefore, during first half of the day nine companies exchanged LoIs/MoUs for solar related projects in the ISA Pavilion. The companies are: Vyonarc Development Ltd., Greenko Solar, Gensol Group and SOLARIG from Spain, Shakti Pump, Refex Energy, Amplus Solar, TATA Power, Jackson Solar,Hero Future Group and Zodiac Energy.

About ISA

The Paris Declaration establishes ISA as an alliance dedicated to the promotion of solar energy among its member countries. The ISA’s major objectives include global deployment of over 1,000GW of solar generation capacity and mobilisation of investment of over US$ 1000 billion into solar energy by 2030. As an action-oriented organisation, the ISA brings together countries with rich solar potential to aggregate global demand, thereby reducing prices through bulk purchase, facilitating the deployment of existing solar technologies at scale, and promoting collaborative solar R&D and capacity building.

When the ISA Framework Agreement entered into force on December 6th, 2017, ISA formally became a de-jure treaty based International Intergovernmental Organization, headquartered at Gurugram, India. As of now the ISA Framework Agreement has been signed by 48 countries, with 19 of them also depositing the instruments of ratification with the Ministry of External Affairs, Government of India. For further details please visit ISA website



(Release ID :175707)

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MNRE & GIZ Signs Agreement to Improve Framework Conditions for Grid Integration of Renewable Energies

The Ministry of New and Renewable Energy (MNRE), Government of India and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH India on behalf of the Government of the Federal Republic of Germany signed an agreement on technical cooperation under the “Indo-German Energy Programme – Green Energy Corridors (IGEN-GEC)” here today . The main objective of this programme component is to improve the sector framework and conditions for grid integration of renewable energies.

In the distinguished presence of Minister of State (IC) for Power, Coal, New & Renewable Energy and Mines Shri Piyush Goyal and the German Ambassador to India, H.E. Dr. Martin Ney, the agreement was signed by Dr. Wolfgang Hannig, Country Director, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH India and Mr. A.N. Sharan, Joint Secretary, Ministry of New and Renewable Energy (MNRE).

Speaking on the occasion, Shri Goyal said “ am delighted that this relationship between GIZ and India will result in improve market mechanisms and regulations, help us train manpower, to ensure grid stability & integration of renewables into grid and ensure safer & secure grid and a grid which can take cyber challenges” . Shri Goyal further added that Germany is a very reliable partner country and has been supporting India in achieving its goal for sustainable development through bilateral cooperation for almost six decade now.

Dr. Ney added “When in July 2012 Power Grid Corporation of India submitted a comprehensive and well elaborated “Transmission Plan for Envisaged Renewable Capacity” to MNRE it paved the way for India’s ambitious goals to transform its power system by significantly increasing the share of renewable energies in the energy mix. Also in Germany’s “Energiewende” the evacuation and grid integration of renewable energy plays a pivotal role with major technological and fiscal challenges. Both the countries have very constructive dialogue under the Indo-German Energy Forum (IGEF).

Being committed to this objective, GIZ and MNRE will work on improving market mechanisms and regulations for integration of Renewable Energies; advancing technical and institutional conditions in specified target states, regions and on a national level; adding human capacities to handle systemic (strategic, managerial, financial, technical) Renewable Energies integration in an efficient and effective manner.

The IGEN-GEC programme is commissioned by the Federal Ministry for Economic Cooperation and Development (BMZ) and jointly implemented by Ministry of New and Renewable Resources (MNRE), Ministry of Power (MoP), Government of India and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). This programme component supports the implementation of the Renewable Energy Management Centre (REMCs), Green Energy Corridors scheme of the Government of India which is a prerequisite for large scale grid integration of renewable energy thus contributing to achieve the 175 GW target of the Government of India for renewable energy generation capacity by 2022.

Based on the Indo-German Consultations held on 11th April 2013 in Berlin, both countries confirmed collaboration on the Green Energy Corridors. In the subsequent bilateral development cooperation negotiations, it was agreed that Germany will provide concessional loans of up to 1 billion Euros through KfW (German Development Bank) and up to 10 million Euros under technical assistance in forecasting, balancing, market design, network management and demand side energy efficiency, implemented by GIZ. These contributions have been further increased in 2015 and 2016 by concessional loans up to 400 million Euros for transmission infrastructure and up to 7 million Euros for training activities in the photovoltaic solar rooftop sector and energy efficiency in residential buildings under technical assistance through GIZ.

It was added that India & Germany will further benefit each other in the journey towards sustainable development. Economic growth and a cleaner world with successful continuation of cooperation & fruitful exchange.

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Indian contractor appointed for world’s largest solar project

Full screenSolar sector: Important lessons have been learnt
Photovoltaic plant will have total capacity of 1,177MW

India’s Sterling & Wilson has been appointed as the engineering, procurement and construction (EPC) contractor by the consortium developing the world’s largest solar project at Sweihan in Abu Dhabi.

The Indian contractor will provide EPC and operation and maintenance services for the 1,177MW photovoltaic (PV) solar plant. The project will take about 23 months to complete.

MEED reported on 28 February that government utility provider Abu Dhabi Electricity & Water Authority (Adwea) had signed a power purchase agreement (PPA) with a consortium led by Japan’s Marubeni Corporation and China’s Jinko Solar to develop the 1,177MW solar plant, which will eclipse the 800MW third phase of the Mohammed bin Rashid al-Maktoum solar park in neighbouring Dubai. The project is being developed under the independent power producer (IPP) model.

The Sweihan solar scheme reached financial close in May. It will require investment of about AED3.2bn ($872m), which will be raised through a mixture of debt and equity.

The Marubeni/Jinko Solar consortium submitted the lowest tariff in September 2016 for the 350MW PV Sweihan IPP. The tariff of 2.42 $c/kWh (cents a kilowatt hour) set the world record for an unsubsidised PV solar project. While the actual tariff will be higher as the price will be based on evaluated weighted levelised electricity costs (EWLEC), which includes adjustments for electrical energy provided rather than just the weighted levelised electricity costs (WLEC), it was still considered a record tariff at the time it was offered.

The project forms part of the UAE’s target for 50 per cent of energy to come from clean resources by 2050, of which 44 per cent will come from renewable energy.

Germany’s Fichtner is the technical adviser for the scheme. US-based Akin Gump Strauss Hauer & Feld is the legal adviser and the UK’s Alderbrook Finance is providing financial advisory services.
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Competition in the Indian solar market intensifies further

First round of bids was submitted for Solar Energy Corporation of India’s (SECI’s) 750 MW tender in Bhadla Solar Park, Rajasthan last week. A total of 33 developers are believed to have submitted bids for an aggregate capacity of 8,750 MW – an oversubscription of almost 12x. Coming in the wake of intensely competitive bidding in Rewa and Kadappa tenders, the signs are that competition for new projects is getting fiercer particularly as the supply of new projects has slowed down in the last twelve months.
The large oversubscription in Bhadla can be attributed primarily to easing up of new tender announcements and greater private sector interest in the sector;
Lower solar tariffs should ideally provide demand boost for solar projects but ironically they are adding to short-term slowdown as central and state governments reconsider procurement policies;
We expect a slight reduction in new solar capacity addition in India in 2018 before activity picks up again from 2019 onwards;
Most of the active project developers in India including Adani, ReNew, Acme, Azure, SolaireDirect (Engie), FRV, Sembcorp, EDF, Canadian Solar, Aditya Birla, Shapoorji Pallonji, Mytrah, Fortum and Trina Solar have participated in this tender. Notably, Welspun has made a comeback after the sale of its assets to Tata Power. ReNew, SoftBank and Saudi based Alfanar have submitted bids for the entire 750 MW capacity. Adani and SolaireDirect have bid for 550 MW and 500 MW respectively.

We believe that the large oversubscription in Bhadla tender is primarily due to slowdown in new tender issuance but improved credit rating of SECI is also a relevant factor.

The Indian government’s announcement of 100 GW solar target led to a big surge in new tender announcements in H2/2015 and H1/2016 with some large states front-loading their solar power procurement programs. At the peak of tender activity in 2016, SECI tenders were oversubscribed by only about 2x (Maharashtra 450 MW, Andhra Pradesh 400 MW) or even undersubscribed (Odisha 300 MW, Karnataka 950 MW). But growing interest from many large global and domestic solar developers in the sector combined with slowdown in new tenders is leading to a tough competitive environment for project developers.

Figure – Solar tender auction completion

Source: BRIDGE TO INDIA research

The main problem here is sustaining a high level of new solar power demand from states when many of them are facing power surplus. Solar tariffs in the sub-INR 3.50/ kWh (US¢ 5.4) range should provide huge demand boost for solar power in the long run but ironically, lower tariffs have led to unique challenges in the short-term. Central and state governments are reconsidering their procurement policies leading to postponement of some tenders. Meanwhile, some DISCOMs, having completed auctions with higher tariffs (notably Jharkhand and Odisha), are now having second thoughts on signing PPA’s.

We believe that this short-term lull will lead to fierce competition for new tenders and a slight reduction in new solar capacity addition in 2018 before activity picks up again.
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