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The Central Electricity Regulatory Commission
(CERC) recently approved Power Exchange India’s (PXIL) proposal to
introduce delivery-based monthly contracts, which can be traded on one
month, two-month, and three-month ahead basis in
conventional and renewable energy segments of the term-ahead market.
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It directed PXIL to make changes in its software
before the commencement of the delivery-based month-ahead contracts and
to align its business rules per the procedure for scheduling bilateral
transactions.
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The Commission also directed the Power System
Operation Corporation (POSOCO) to submit a report within three months
from the introduction of the contracts after seeking feedback from the
power exchanges.
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PXIL had filed a petition seeking approval to
introduce month-ahead contracts at the exchange.
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Background
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Currently, the exchange offers day-ahead contracts,
intraday contracts, day-ahead contingency contracts, real-time contracts,
and term ahead contracts for trading in
electricity. It also offers the exchange of renewable energy certificates
(RECs) and energy-saving certificates.
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In its submission, PXIL noted that participants enter
into bilateral contracts that do not provide end-to-end service for the
period extending beyond 11 days. These contracts vary significantly in
structure and do not necessarily have an equitable risk-sharing
mechanism.
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In some cases, even if the market platform is
available and auctions are undertaken, it may not necessarily transform
into actual transactions, thereby raising the overall transaction cost.
So, introducing these contracts at the power exchanges for a duration beyond 11 days would be helpful.
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The power exchange proposed to introduce
delivery-based monthly contracts which can be traded on one month,
two-month, and three-month ahead basis both in
conventional and renewable energy segments of the term-ahead market.
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The stakeholders affirmed that introducing these
contracts would provide more avenues for market participants to trade
power beyond 11 days.
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Some stakeholders suggested that a more extended
duration contract (up to one year) may also be introduced to have better
planning both from the procurer and seller’s point of view.
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Commission’s analysis
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The Commission observed that the issue of longer
duration contracts (beyond T+11 days) and financial derivatives were
sub-judice since 2011. In 2018, the Ministry of Power constituted a
committee to examine the technical, operational, and legal framework for
futures/forward and derivative contracts in electricity and to give
recommendations in this regard.
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The Commission noted that the power exchange had
sought approval to introduce the proposed contracts both in the
term-ahead and green term-ahead markets. Considering that conventional
and renewable energy have their own significance, the Commission approved
the contracts to be introduced in both the term-ahead and green
term-ahead markets.
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The central regulator observed that any new segment
in a market should be introduced gradually. The petitioner had proposed
multiple contracts to be introduced on its exchange platform.
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Considering this market may have low liquidity
initially, the petitioner’s proposed contracts may have overlapping
effects, impacting the volume per contract. It approved the exchange’s
proposal to introduce monthly contracts, any-day, and weekly contracts
with modified timelines for pre-specified time blocks.
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The Commission also approved using a uniform price
auction as a matching methodology for price discovery in daily, weekly,
and monthly contracts and renamed it ‘Uniform Price Step Auction.’
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It noted that the reverse auction should be used as
a price matching methodology for any day single-sided contract.
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The central regulator said that PXIL should
commence the physical delivery of electricity on a day more than one day
ahead (T + 2 or more) of the last day of bidding.
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It also approved delivery duration for these
contracts as T+2 to T+90 days for daily contracts, TW+1 to TW+12 for
weekly contracts, TM+1 to TM+3 months for monthly contracts, and T+2 to
T+90 days for any day single-sided contracts, wherein T denotes the
zero-day of trading, TW denotes the zero-week of trading and TM denotes
the zero-month of trading.
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The Commission directed PXIL to submit the
compliance report within two weeks.
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Last October, CERC approved the introduction of the
green day-ahead contract at the Indian Energy Exchange (IEX) and the
Power Exchange India (PXIL) in the integrated day-ahead market in a
restricted manner.
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GE Energy Financial Services (GE EFS) has acquired
a 49% interest in the Morjar onshore wind farm from Indian power company
Continuum Green Energy India for an undisclosed sum.
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Located in the Indian state of Gujarat, the 148.5MW
Morjar wind facility will feature 55 units of GE Renewable Energy’s
2.7-132 onshore wind turbines.
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The wind farm is expected to come online this
month.
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Once operational, it will generate enough clean
electricity to meet the needs of 125,000 households.
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GE Renewable Energy recently delivered 37 of its
2.7-132 onshore wind turbines for a 240MW wind-solar hybrid project
operated by Continuum in Gujarat, India.
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The company’s investment in the Morjar wind farm is
said to be its first in the state of Gujarat through a structured
preferred equity solution.
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GE Energy Financial Services global renewable
energy leader Gaurav Raniwala said: “Providing a bespoke financing
product to a strategic customer strengthens GE’s partnership to continue
to deliver accessible, affordable and reliable renewable energy across
India to support the country’s decarbonisation and renewable energy
targets.
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“We look forward to furthering the partnership with
Continuum on future renewables projects with GE’s innovative financing
and technology solutions.”
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GE EFS added that it has invested in more than 1GW
worth of renewable projects in India to date.
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These projects are located across various Indian
states, including Madhya Pradesh, Rajasthan, Karnataka, Uttar Pradesh,
Maharashtra, Andhra Pradesh and Gujarat.
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A global infrastructure fund managed by Morgan
Stanley Infrastructure owns a majority stake in Continuum.
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Continuum CEO Arvind Bansal said: “The Morjar
onshore wind investment through GE EFS is a marquee transaction that can
be replicated to enable future development of wind and hybrid projects in
India.
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“We are proud to partner with GE EFS through
bespoke energy financing and renewables technology to continue to
accelerate efforts to help support customers in the energy transition.”
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Chhatrapati Shivaji Maharaj International Airport
(CSMIA) is India’s first airport to launch a one-of-its-kind Vertical
Axis Wind Turbine (VAWT) & Solar PV hybrid (Solar Mill) to explore
the possibility of utilization of wind energy at the airport. CSMIA has
introduced this pilot program in collaboration with WindStream Energy
Technologies India Pvt Ltd, which ensures 24/7 energy generation, harnessing
maximum energy through wind power systems, while enabling highly
efficient and low carbon future for aviation. This sustainable initiative
undertaken by CSMIA reduces dependence on conventional electricity which
propels its journey towards ‘Net Zero’ emissions.
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An Aim to Reduce Carbon Emissions
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Since its inception, CSMIA has been inching towards
the reduction of carbon emissions under its Environment &
Sustainability policy and GHG policy. Over the years, incredible efforts
and strong beliefs in sustainable development have ensured minimal
environmental footprint at the airport. Thus, to assist in enhancing
capacity usage of green energy, CSMIA has deployed a 10Kwp Hybrid
SolarMill consisting of 2 Kwp TurboMill (3 Savonious type VAWT) and 8 Kwp
Solar PV modules with an estimated minimum energy generation of 36
Kwh/day.
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WindStream Energy Technologies India Pvt Ltd has
developed this novel and patented, first-of-its-kind, fully integrated,
hybrid renewable energy product which harnesses solar and wind energy
combined to generate electricity. The energy generated through this
technology can be customized on a need-specific basis. Due to its modular
and scalable size, it’s easy to mount the technology on any mobile or
static rooftop. This technology is a vital step in deploying a solution
at the airport that is renewable, clean, green, environment-friendly,
bird-friendly, and a silent solution with a 25-year design life.
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In FY 21-22, CSMIA used 9.41 MU of renewal (Solar
and wind) power, which includes onsite solar power generation of 5.46 MU
and wind power of around 3.94 MU. Thus, usage of solar and wind power has
reduced ~7400 tCO2e emissions at the airport. CSMIA aims to replicate the
project to increase the onsite renewal power generation in the coming
years.
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Share of Wind Energy to Renewable Energy Generation
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According to the International Renewable Energy
Agency (IRENA), wind energy contributes 27% of the world’s renewable
electricity generation capacity as of April 11, 2022. It is estimated
that VAWT technology will generate ~13140 KWh/annum for 25 years &
will increase renewable energy in the existing energy mix and can reduce
carbon emission to about 259515 KgCo2e (Kilogram of carbon dioxide
equivalent per kilogram). This plant requires bare minimum maintenance of
installation, unlike any other machines for electrical supply, where load
& batteries are attached to the system.
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In the wake of the growing carbon footprint
globally, this innovative technology is yet another initiative taken by
CSMIA, adding to a milestone in the sustainable brand value of the
organization. CSMIA over the years has envisaged several sustainable
innovations and projects such as green building designs, operational
measures like A-CDM, electrically operated vehicles, and increasing renewable
energy generation from 0 – 4.56 Mwp, to name a few. These initiatives
have propelled CSMIA to become a carbon neutral airport by achieving ACA
Level 3+ “NEUTRALITY” in 2016-17. CSMIA continues to bring in new and
advanced sustainable practices timely to further boost the operational
efficiency of the airport in a green way and endeavors to achieve ‘Net
Zero’ carbon emission by 2029.
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The electricity board of Gujarat in India has
opened a competitive solicitation for renewable energy paired with energy
storage systems (ESS) to bring electricity to off-grid villages in the
state.
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Gujarat Urja Vikas Nigam Limited (GUVNL) is
Gujarat’s state-owned utility responsible administering the bulk sale and
purchase of power on behalf of its government’s re-organisation scheme.
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GUVNL is seeking to enter power purchase agreements
(PPAs) for up to 500MW of grid-connected renewable energy and ESS capable
of delivering the peak power requirements of local distribution companies
(discoms). The utility group issued a Request for Selection (RfS)
yesterday (14 June).
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The 25-year PPAs will help GUVNL to meet its
renewable power purchase obligations (RPPO) as well as the future needs
of discoms.
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Projects proposed can be either solar PV, wind or a
combination of both, paired with energy storage. However, certain minimum
capacity requirements apply based on the chosen combination: for
instance, plants with wind and a co-located storage system without solar
must be 25MW or more.
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Meanwhile other configurations have a 50MW minimum
requirement, and other stipulations apply such that if a wind-solar and battery
hybrid is proposed, the smaller of the two renewable energy systems must
be sized to at least 33% of the total contracted capacity.
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India ranked third in renewable energy
installations in 2021, after China and Russia, according to a global
status report released on Wednesday, June 15. India installed 15.4
gigawatts (GW) of renewable energy projects in 2021, the report titled
Renewable Energy 2022: Global Status Report published by REN21 (Renewable
Energy Policy Network for the 21st Century) said.
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It ranked fourth in total solar installations (60.4
GW) for the year – overtaking Germany (59.2 GW) for the first time.
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The world, overall, added around 3,146 GW of total
installed renewable power capacity in 2021 – a spike of 11% from the
previous year. Despite this, the share of renewables in global energy use
stagnated in 2021.
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Renewable energy capacity is nowhere close to the
targets that need to be met for global climate goals in this decade, as
per the report. India, too, will have to do much more to reach its
renewable energy target, said energy scientists.
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As a means of achieving its climate goals, India
has announced a target of 500 GW of renewable energy by 2030 through
sources such as solar photovoltaic (PV) energy, wind and hydropower.
Currently, projects worth almost $197 billion are underway in India, said
Union minister of state for new and renewable energy, Bhagwant Khuba, on
May 22.
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REN21, a global collective of renewable energy
actors, including scientists, governments such as India’s,
non-governmental organisations and members of the industry, collated data
on renewable energy installations, markets, investments and policies in
countries across the world. More than 650 experts have contributed to the
outcome of the report.
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According to the report, despite the impacts of the
COVID-19 pandemic, renewables saw a year of record growth in both
investment and installation. Globally, renewable power capacity additions
grew 17% in 2021, amounting to more than 314 GW of added capacity.
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Overall, the total installed renewable power
capacity globally grew 11% to reach around 3,146 GW. This included
hydropower – with new capacity additions of at least 26 GW, and solar PV
adding 175 GW of new capacity – a record high – in 2021 to reach a
cumulative total of around 942 GW.
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India also ranked third in total installed capacity
of wind power at 40.1 GW – after China, the United States and Germany,
and for developing hydropower projects – followed by China and Canada.
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As per the report, India was also the second
largest market in Asia for new solar PV capacity. Globally, India’s solar
PV capacity addition ranked third with 13 GW of additions in 2021. It
ranked fourth in the total solar installations at 60.4 GW, overtaking
Germany (59.2 GW) for the first time.
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India progressed in terms of investment in
renewables, and policy too. The total new investment in renewables for
the year 2021 increased by 70% to $11.3 billion. India also extended its
national Rs 18,100 crore ($24.3 billion) solar production programme,
which provides incentives to domestic and international companies for
setting up battery manufacturing plants. In 2021, after India increased
its cap on solar PV installations under its net metering scheme, the
country’s rooftop PV market hit a record high, the report said.
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Still not enough
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But despite all this, the overall share of
renewables in the world’s final energy consumption has stagnated – rising
only minimally from 10.6% in 2009 to 11.7% in 2019 – and the global shift
of the energy system to renewables is not happening, the report found. In
fact, the renewable energy capacities achieved so far come nowhere close
to the targets required to keep the world on track to reach net zero
emissions by 2050.
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The strong economic rebound in 2021 contributed to
a 4% rise in final energy consumption, offsetting the growth of renewables.
Progress across different sectors (such as the use of green energy in the
transport industry) has also been uneven. As per the report, the invasion
of Ukraine added to the energy crisis that the world saw in 2021.
Governments, however, responded by increasing fossil fuel production and
subsidies. Fossil fuels were burnt to meet the increase in energy demand
worldwide (by around 4% in 2021) and this has caused a record surge in
carbon dioxide emissions (up by 6%, adding more than two billion tonnes).
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“Although many more governments committed to net
zero greenhouse gas emissions in 2021, the reality is that, in response
to the energy crisis, most countries have gone back to seeking out new
sources of fossil fuels and to burning even more coal, oil and natural
gas,” said Rana Adib, REN21 executive director, in a press release.
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We’ll need more
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While India added record-high capacities of
renewable energy in 2021, it will take more for the country to reach its
target of 500 GW by 2030, said Neeraj Kuldeep, Programme Lead, Council on Energy, Environment and Water (CEEW). India
will have to increase the annual capacity deployments by a factor of
three; one of the significant challenges is to integrate such a huge
capacity in the grid, he told The Wire.
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“Much of the installations so far have been in only
five states where RE [renewable energy] already holds
more than 40% share which sometimes even reaches 60-70% mark during the
peak wind season. Adding more capacity within RE-rich states will require
significant investment in inter-state transmission infrastructure and
Discom buy-in from non-RE states for power off-take.”
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The government has introduced a slew of initiatives
such as the Performance Linked Incentive (PLI) Scheme, Green Open Access
Rules, Green Term Ahead and Day-Ahead Market etc. that will accelerate RE
deployment, Kuldeep added. On June 6, for example, India notified the
Green Open Access Rules which facilitates the generation, purchase and
consumption of green energy including that produced by waste-to-energy
plants. Among the many things the Rules enable is open access, which
permits such green energy to be accessed by more consumers, big and
small.
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“However, it is too soon to conclude whether these
will deliver on their objectives and help India reach the 500GW goal,”
Kuldeep said.
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Renewable energy projects in India also come with
their share of social and environmental impacts. Projects such as the
solar power project in Karnataka’s Pavagada have come under scrutiny for
the disruptions in traditional livelihoods and depletion in biodiversity
they have caused.
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The completion of India’s renewable energy projects
in pipeline would required around ₹4 lakh crore of capital
investment, according to a joint report EY and FICCI.
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Noting that India added over 15 GW of renewable
power generation capacity in FY22, the report said that around 103 GW of
utility-scale renewable power generation projects and 11 GW of
distributed renewable power generation projects are in the pipeline with
the potential to create 8 lakh and 96,500 fresh jobs, respectively.
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Overall the projects would be able to avoid 4.35
billion tonne of carbon dioxide emissions over their lifetime, it said.
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“India’s energy transition is gaining momentum
post-Covid with strong backing from policy enablers focused on improving
ease of doing business, competitiveness, and self-reliant supply
chains," said the report titled ‘Accelerating India’s clean energy
transition’.
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According to the report, the role of state
governments will be critical in the effective adoption and implementation
of policies enabling ease of doing business and competitiveness of energy
transition. Rigorous planning at the state level and predictable growth
in demand for clean energy sources are essential for accelerating energy
transition investments, it said.
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Creating vertically integrated domestic supply
chains can help build resilience against such forces in the long term, it
added.
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Somesh Kumar, partner for power and utilities at EY
India, said: “India’s energy transition may leave fossil fuel industries,
communities, and workers exposed to muted or declining demand for fossil
fuel commodities in the long term. Understanding and addressing the
social dimensions of the energy transition is critical to ensure that
fossil fuel communities are not left behind.“
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From conventional energy sources like fossil fuels
and coal, now Goa is stepping towards the use of non-conventional sources
of energy which is solar power energy, Goa Chief Minister Pramod Sawant
said on Thursday.
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Speaking at a programme, he said most of the people
from Goa don’t know about the power shutdowns which take place in other
states.
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'Being the power generating states, they always do
a 12 hour shut down in their states, but in Goa, even after being a power
dependent State, we don’t have shut downs,' he pointed.
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The Government of Goa has entered into a MoU with
the Government of Zambia for exploring the conventional heater technology,
he said.
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He highlighted the concentric heating plant which
was recently installed at Goa University.
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The chief minister appreciated government officers
for implementing various new technologies in different sectors in Goa.
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'If we all work together with full dedication then
we will be able to make Goa as number one State technology wise as well
as in other sectors too,' he added.
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India and Germany’s solar sectors are set to
outperform in the coming years, but both markets will fall short of
government PV deployment targets, according to Fitch Solutions.
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The consultancy forecasts that India will more than
double its solar capacity in the next decade, expanding from 49.3GW as of
year-end 2021 to 139.5GW by 2031, driven by robust government support, a
large project pipeline and ongoing private investment.
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However, India’s underdeveloped grid network and
domestic solar manufacturing capacity will hinder the solar sector’s
ability for rapid expansion, Fitch warned, as it expects the country “to
fall significantly short” of its target of having 300GW of solar deployed
by 2030.
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Its install forecast is far lower than research
published earlier this year by think tank Institute for Energy Economics
and Financial Analysis (IEEFA) and consultancy JMK Research &
Analytics, which projected that India would have 214GW of solar installed
by 2030.
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Fitch said that while Prime Minister Modi has
implemented incentives such as subsidy schemes, financing mechanisms and
auction systems to encourage solar growth, higher equipment costs and
logistical challenges pose a near-term challenge.
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Research published in April from JMK found that
module prices in India had increased ~38% in the previous 20 months, in
part due to supply chain disruptions and rising solar demand.
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Meanwhile, India’s power minister R K Singh doubled
down on support for the country’s basic custom duty on solar cells and
modules last week, saying there were “no plans” to change the system
despite soaring module costs and a limited domestic supply.
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Alongside India’s PV ramp-up, Fitch forecasts
“steady growth” for Germany’s solar sector over the coming decade, thanks
in part to strong government support as well as an attractive residential
solar market.
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Forecasting that solar capacity in Germany will
increase from an estimated 59.6GW in 2021 to 131.9GW by year-end 2031,
the consultancy said solar represents an integral part of the
government’s long-term energy plan.
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Nonetheless, those figures are notably lower than
Germany’s new 2030 solar install target of 215GW.
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To reach a goal of having 80% of electricity
consumption from renewable sources by 2030, Germany aims to streamline
renewables permitting, make more land available for solar and increase
auction volumes.
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India will need an investment of Rs 4 lakh crore
for implementation of 113 gigawatt (GW) of renewable
energy projects in the pipeline, a report said on Thursday. India's
energy transition is gaining momentum post-COVID with strong backing from
policy enablers focused on improving ease of doing business,
competitiveness, and self-reliant supply chains, the joint report of
EY-FICCI said.
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According to the report titled 'Accelerating
India's Clean Energy Transition', about 103 GW of utility-scale renewable
power generation projects and 11 GW of distributed renewable power
generation projects are in the pipeline in India.
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"Total renewable power generation projects in
the pipeline would need approximately Rs 4 lakh crore of capital
investment with the potential to avoid 4,350 MT of CO2 emissions over
their lifetime," it said.
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The implementation of these projects will create a
total of 8,96,500 fresh jobs, the report said.
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Somesh Kumar, Partner and National Leader, Power
and Utilities at EY India, said, "India's energy transition may
leave fossil fuel industries, communities, and workers exposed to muted
or declining demand for fossil fuel commodities in the long term. Understanding
and addressing the social dimensions of the energy transition is critical
to ensure that fossil fuel communities are not left behind."
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