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Suzlon Energy on Thursday reported widening of its
consolidated net loss to Rs 777.52 crore in the quarter ended September
30, 2019. The company had reported a net loss of Rs 625.76 crore in the
corresponding quarter last fiscal, Suzlon Energy said in a BSE filing.
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Its revenue from operations fell to Rs 803.09 crore
during the quarter under review as against Rs 1,194.99 crore in the
year-ago period.
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The company's total expenses were at Rs 1,551.16 crore
as against Rs 1,850.28 crore in the same period of preceding fiscal.
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"The sector is witnessing issues on project
execution due to some policy issues but there has been some healthy
growth in installations over the last year. Wind capacities added in India
in H1 2019-20 was at 1,304 MW as compared to 569 MW in H1 2018-19,"
Suzlon Group CEO J P Chalasani said in a separate statement.
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"Our operations are at a subdued level with
minimal allocation of funding as we are trying to fix our capital
structure," he added.
Three Bidders For SECI’s Manufacturing Linked Tender
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Several extensions and modifications later, the
Solar Energy Corporation of India (SECI) can finally heave a sigh of
relief for its mega manufacturing linked solar project tender. It has now
received offers for 8 GW of solar PV project capacity linked with 2 GW of
manufacturing capacity from three bidders.
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Mercom India Research reports the bids have come
from:
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Adani Green Energy for 4 GW projects with 1 GW
manufacturing capacity,
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Azure Power and
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Navyug Green Energy have each bid for 2 GW of
project capacity and 500 MW of manufacturing capacity.
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This way 7 GW of project capacity tendered has been
oversubscribed by 1 GW.
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SECI had originally issued a manufacturing linked
tender in May 2018 for 5 GW production capacity with 10 GW project
capacity and a maximum tariff payable at INR 2.93 per kWh for 25 years.
In January 2019, the government rejected the sole bid it received from
Azure Power finding it unreasonable as per local media reports and said
it will re-issue the tender.
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In June 2019, SECI launched a fresh interstate
transmission system (ISTS) connected solar power project development
tender linked with 2 GW annual manufacturing capacity capping bids at INR
2.75 per kWh, which Mercom said back then was a revamped version of its
January 2019 tender.
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A Press Trust of India (PTI) report points out that
India suffers a forex outflow of around $10 billion annually as it is
dependent on Chinese solar modules for 95% of its requirement.
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Recently, the Indian Renewable Energy Development
Agency Limited (IREDA) has proposed to provide term loan assistance under
this manufacturing linked tender of SECI stating in a letter that it
would be happy to examine any such proposal from a qualified bidder.
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India has an official target to achieve 175 GW of
renewable energy capacity by 2022, including 100 GW solar, which the
government says it is confident of overachieving with 200 GW to be
installed cumulatively by 2022. Indian Prime Minister Narendra Modi
announced at the 2019 Paris Climate Action Summit that his country would
be increasing overall renewable energy capacity to 450 GW by 2030.
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However, event the 2022 target seems a long way to
go. End of July 2019, the cumulative grid-interactive solar PV capacity
of India was over 30 GW out of 81.3 GW of total renewable energy capacity.
General
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Several wind power projects have missed their
completion deadlines. Wind energy companies (developers) blame the delay
mainly on non-availability of land.
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Ever since wind power projects began in February
2017 to be awarded through auctions to energy companies on the basis of
who offers to sell power at the lowest prices, there have been 16
successful auctions so far (not counting the cancelled ones). Eighty
projects, worth 14,412.64 MW of capacity have been awarded to wind
developers.
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Each auction has its own deadline for completion of
projects awarded under it. By now, 5,087 MW of projects should have come
up, against which the achievement is 1,707 MW.
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Gujarat overwhelmed
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Of the 14,412 MW awarded, 9,370 MW were through
eight successful auctions of SECI, a government of India-owned company
meant to foster development of renewable energy projects in the country.
SECI buys power from wind (and solar) companies and sells the power to
electricity distribution companies (discoms) in non-windy States, under
back-to-back agreements with the discoms.
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Under the SECI auctions, a developer could put up
his project at a place of his choice – the company would get paid the
agreed per-kWhr tariff for the electricity delivered at the agreed
sub-station.
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As the competitively-determined tariffs squeezed
margins, most developers opted to put up their projects in the two
windiest States of India – Tamil Nadu and Gujarat. Out of the 31 projects
awarded under the first five SECI auctions, (for which developers have
disclosed the States of choice), 21 opted for Gujarat, 9 Tamil Nadu and one
Karnataka.
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An overwhelmed Gujarat government felt it was not
all right that 21 projects worth 4,975 MW should take up its windiest
sites and all the cheap power should go to other States. So, it put the
stopper on allocation of land, wanting to reserve the lands for itself.
The projects got stuck.
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BusinessLine learns that a high-level meeting
between Gujarat and the Ministry of New and Renewable Energy took place
in Delhi on Wednesday to find a solution to this problem.
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TN situation
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In Tamil Nadu too, land issues have cropped up. The
State is refusing to let wind turbines be put on agricultural lands. Many
in the industry believe there is more to it than meets the eye.
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The deadlines for the other projects are closing
in. As much as 2,950 MW of SECI IV and V and 500 MW of Maharashtra are
scheduled to come up in calender 2020. If the land issue doesn’t get
sorted out, there is no hope in hell that they would.
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Nor can the developers move to elsewhere because
other States have less wind resources, which will affect power generation
and hence viability.
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The Solar Energy Corporation of India (SECI)
received bids for 8 GW of solar power projects linked with 2 GW of
photovoltaics (PV) manufacturing capacity in a tender after its increased the solar electricity tariff cap.
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The government solar agency extended the deadline
for bids in the 7-GW solar tender several times this year as it failed to
attract significant interest. It amended certain clauses to make the
tender more attractive, including lifting the maximum tariff for the
solar electricity from the projects to INR 2.93 (USD 0.041/EUR 0.037) per
kWh, from INR 2.75/kWh previously.
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Mercom India Research said today Indian companies Azure
Power Global Ltd (NYSE:AZRE), Adani Green Energy Ltd (BOM:541450) and
Navyuga Engineering Co have bid to develop 8 GW of PV projects and set up
2 GW of manufacturing capacity, which is 1 GW above the solar project
capacity the tender seeks to award. Adani bid for 4 GW of power and 1 GW
of manufacturing capacity, while each of the other two bidders proposed
to establish 2 GW of solar parks and 500 MW of manufacturing plants.
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The tariff-based reverse auction to determine the
final awards will be held in the coming weeks, according to Mercom’s
report. The solar projects will get 25-year power purchase agreements
(PPAs).
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(INR 100 = USD 1.39/EUR 1.26)
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Caisse de dépôt et placement du Québec (CDPQ), one of
Canada’s leading institutional investors, has announced that it will
invest $75 million in Azure Power Global Limited, a solar power developer
in India.
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Once the transaction is complete, which is subject
to approval from Azure Power’s shareholders and other customary closing
conditions, CDPQ’s stake in Azure Power will increase from 41.4% to
49.4%.
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Last year, Mercom had reported when CDPQ had
announced that its stake in Azure Power had been increased to 40% through
₹7.32 billion ($0.1 billion) contribution to the company’s capital
raising.
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According to Mercom’s India Solar Project Tracker,
Azure Power has around 1.7 GW of large-scale solar projects in operation,
and ~1.9 GW of solar projects are under the development pipeline.
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Earlier this year, CDPQ announced that it had
raised its target for its carbon-neutral assets to CA $32 billion (~$24.2
billion) by 2020.
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CDPQ has been actively involved in solar-related
investments in the past few years. Last year, the company had announced
an investment of CA$150 million (~$114 million) in debt financing to
ContourGlobal. ContourGlobal is a platform for acquiring and developing
energy assets with long-term contracts across the world.
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The global investor also invested CA$50.4 million
(~$38.29 million) in a leading U.S. residential solar company, Sunrun.
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There was another foreign investment in an Indian
renewable energy company recently. Just a few days ago, the United Arab
Emirates-based Masdar invested around $150 million (~₹10.7 billion)
in Hero Future Energies. This was the second such strategic investment in
HFE since 2017 when an investment of $125 million (~₹8.94 billion)
was made by the International Finance Corporation (IFC), which is an arm
of the World Bank.
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According to Mercom Capital Group’s recently released
9M 2019 Solar Funding and M&A Report, the total corporate funding
(including venture capital/private equity, public market, and debt
financing) in the first nine months (9M) of 2019 was up with $9 billion
raised, compared to $6.7 billion that was raised in the same period last
year, a 34% increase year-over-year (YoY).
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Solar power generation numbers declined by 14%
quarter over quarter (QoQ) in the third (Q3) quarter of 2019. Solar power
generation in India stood at 10,530 million units (MUs), according to the
data released by the Central Electricity Authority (CEA).
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The decline in generation numbers is not a surprise
as the quarter coincided with the monsoon season when solar generation
typically dips.
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In the first nine months (9M) of the calendar year
(CY) 2019, solar power generation totaled 34,207 MUs, a 29.6% increase on
a YoY basis when compared to the 26,449 MU of solar electricity
generation in 9M of CY 2018.
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Solar power generation peaked in March and April.
The decline in solar power generation started in May and June; this has
been a yearly trend, which is clear in the monthly chart below. The rainy
season in the country affected solar power generation significantly.
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Solar power generation in India has continued to
grow, albeit at a slower pace despite nagging issues such as curtailment,
low tariffs, delayed payments, and lack of availability of transmission
infrastructure and land.
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Recently, the Ministry of New and Renewable Energy
(MNRE) issued a letter to the chief secretaries of all states and union
territories, asking them to ensure that ‘must run’ status has been
accorded to both wind and solar power projects in the states in line with
the Indian Electricity Grid Code 2010 and the Electricity Act 2003.
However, it remains to be seen what the MNRE can do if states continue to
violate the must-run status rules. This challenge, which is becoming
widespread, has started to affect the solar generation and needs to be
addressed immediately to the meet solar installation goals by 2022.
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Hindustan Insecticides Limited, a government-owned enterprise,
has issued an expression of interest (EOI) for 2.15 MW of solar projects
with battery energy storage systems (BESS) to be installed at three of
its manufacturing units in the states of Kerala, Maharashtra, and Punjab.
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The tender includes both ground-mounted and rooftop
solar projects. The overall estimated cost for the projects is ₹96.89
million (~$1.35 million).
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It plans to set up a 603.5 kW project at
Udhyogmadal in Kerala costing an estimated ₹27.19 million
(~$380,084) , a 1,540 kW project at Rasayani in
Maharashtra for about ₹68.85 million (~$962,159) and a 17.6 kW
project at Bhatinda in Punjab for around ₹844,800 (~$11,805.8).
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The projects are to be developed under the RESCO
model. The RESCO model is a system where the solar project is owned by
the developer, and the consumer only has to pay for the energy generated.
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The last date for bid submission is November 28,
2019. The timeline for the commissioning of the projects will be 120 days
from the date of issue of the work order.
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The scope of work under this tender would cover the
design, engineering, supply, construction, erection, testing,
commissioning, and operation and maintenance of the projects as well as
the BESS. HIL will enter a power purchase agreement (PPA) with the
successful bidder for a period of 25 years.
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Applicants are expected to come from a related
field with three years of relevant experience in installing solar power
systems. They must have installed at least 2 MW of solar projects;
previously, the tender document stipulates.
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The tender stipulates that the net worth of an
interested bidder should be 15% of the annualized bid value while the
turnover should be 50% of the bid value.
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Recently, another government enterprise, Hindustan
Shipyard Limited, announced that it was planning to increase its rooftop
solar capacity by adding 1 MW installation at its premises in the state
of Andhra Pradesh. This project will be installed under the RESCO model
and will be executed by CleanMax Solar.
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Then in July 2019, Mercom reported about three
small solar tenders floated by government-owned enterprises.
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The Hindustan Aeronautics Limited (HAL) has issued
a Request for Selection (RfS) for setting up of 2 MW of solar projects
under RESCO mode at its Avionics Division in Hyderabad.
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The project is to be developed on a
build-own-operate (BOO) basis, and the last date for the submission of
bids is December 9, 2019.
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Prospective bidders are expected to pay a sum of ₹2
million (~$28,025.3) as the earnest money deposit (EMD), and the period
of execution of these projects is six months.
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According to HAL, the project is a part of the
defense program for setting up over 300 MW of grid-connected and off-grid
solar PV power projects under the Jawaharlal Nehru National Solar Mission
(JNNSM).
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The scope of work includes setting up a solar PV
project, along with the power evacuation network up to the designated
point and to the nearest substation within the campus. It also involves
the development, construction, synchronization, commission, and operation
and maintenance of the 2 MW solar PV power project. The generated power
will be sold to HAL for a period of 25 years. As per the tender document,
the maintenance of the transmission system up to the interconnection
point will also be the responsibility of the successful bidder.
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The project under the developer mode will be free
to procure solar cells and modules under the open category (indigenous or
imported).
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The entire cost of transmission, including the cost
of construction of the lines, wheeling charges, and losses from the
project up to the delivery point will be borne by the selected bidder and
will not be met or reimbursed by HAL.
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Based on the RfS, the selected bidder must submit a
performance guarantee for a value of ₹6,000,000 (~$84,076) before
signing the power purchase agreement (PPA) or three weeks from the date
of issue of Letter of Intent (LoI).
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As far as the technical bids are concerned, the
successful bidder should strictly comply with the technical parameters.
Further, the cells and modules used in the project should be sourced only
from the modules and manufacturers included in the Approved List of
Models and Manufacturers (ALMM), as published by the Ministry of New and
Renewable Energy (MNRE).
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It should be noted here that recently, the ministry
issued a notification shedding light on its earlier order regarding the
compulsory registration under the Approved Models and Manufacturers of
Solar Photovoltaic Modules. The MNRE has stated that the list would
consist of List-1, which specifies the models and manufacturers of solar
PV modules, while List-II will specify the models and manufacturers of
solar PV cells. Both the lists will come into effect from March 31, 2020.
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Moreover, according to HAL, the net worth of the
bidder for this tender should be at least ₹10.7 million (~$0.15
million)
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The company has committed to install 50 MW of
renewable energy power projects to reduce its carbon footprint and has
already installed wind and solar power projects of nearly 46 MW capacity.
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Meanwhile, a few weeks ago, Mercom reported that
the electronics manufacturing division of HAL issued a Request for
Information to identify a potential Indian entity for business
cooperation in the electric vehicle charging business.
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Bharat Electronics Limited (BHEL) has issued a
Request for Selection (RfS) for setting up 122 solar-powered smart class facilities
in government high schools of Yadgir district of Karnataka.
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The project falls under its Corporate Social
Responsibility (CSR). In August 2019, Mercom reported on how CSR funds
can be an effective tool for solar expansion. The concept of CSR, which
was introduced through the Companies Act 2013, puts the onus on companies
to formulate policies which will help in uplifting the community.
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The total capacity of the project is 36.6 kW. The
last date for the submission of bids is November 22, 2019, while the
tender opening date has been scheduled for November 23, 2019.
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The scope of work includes the design, supply,
testing, installation, and successful commissioning of the smart class
hardware and educational digital content, including five years of comprehensive
annual maintenance contract (CAMC).
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The work for the smart class hardware involves the
supply, installation, commissioning, and maintenance of solar-based
standalone power systems with battery and other associated infrastructure
and equipment, including the central processing unit (CPU) preloaded with
educational digital content.
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The PV systems should carry an overall warranty of
at least five years. Solar PV modules should be of the crystalline
silicon type and should be manufactured in India. Further, the minimum
rated power of the module should not be less than 150 W.
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The tender also specifies that the inverters should
be hybrid with batteries with both solar and grid priority operational
modes.
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According to the tender document, the bidder should
have an average annual turnover of at least ₹10 million (~$139,747)
for the last three financial years.
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Regarding the technical criteria, the successful
bidder should have successfully implemented similar smart class
facilities that involve smart classroom solutions or digital classrooms.
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The system components should comply with the
standards prescribed by either the Ministry of New and Renewable Energy
(MNRE) or Karnataka Renewable Energy Development Limited (KREDL). The
solar PV modules used should qualify for the latest edition of the
International Electrotechnical Commission (IEC) PV module qualification.
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Earlier, it was reported that the Himachal Pradesh
Energy Development Agency (HIMURJA) invited bidders to bid for the
installation of solar projects at 312 middle schools in 11 districts of
the state. The project installations will be executed under the state’s
‘Samagra Shiksha Abhiyan’ program.
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Previously, Mercom published an article that
analyzed how solar is beginning to power classrooms, dormitories and
canteens of multitudes of educational institutions across the country.
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Ecoppia, a leading developer of fully autonomous,
water-free photovoltaic (PV) solar panel cleaning solutions, has
announced that it has been chosen by Fortum, to deploy its field-proven
platform across different projects in India, totalling 427 MW of
production capacity.
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UK Climate Investments (UKCI), a Macquarie
subsidiary, and Elite Alfred Berg (EAB) who are stakeholders for 230 MW
of Fortum’s operating asset share the same vision to drive towards the
sustainable operation of solar business.
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To reshape the global energy ecosystem and improve
resource efficiency with smart solutions, the firm was chosen to equip
the Fortum developed projects in the Pavagada and Bhadla solar parks with
its connected and environmentally friendly E4 solution. Ecoppia is
already well-known and massively operational in the Indian subcontinent,
deployed over nearly 2 GW in production capacity in that region alone,
and boasting over 7 GW in secured projects globally.
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“As we drive the change towards a cleaner world,
the Ecoppia water-free solutions are a perfect fit with our strategy,”
said Sanjay Aggarwal, managing director India in Fortum.
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“Now, we will be able to provide clean energy
without exhausting water resources – ensuring solar energy production is both
cost-effective and truly environment-friendly. This is a natural next
step towards sustainable & clean development, a joint vision shared
with our partners UKCI & EAB,” he concluded.
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Ecoppia’s robust E4 robot for fixed-tilt solar
installations supports both framed and frameless panels add no load to
the panel surface and have been proven to be fully safe on both panels
and Anti Reflective Coating (ARC). Certified by the leading US module
maker First Solar – the E4 will clean both crystalline modules and
frameless modules in Fortum’s sites.
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“It’s a great honor to extend our successful
collaboration with Fortum to additional projects,” noted Eran Meller, CEO
of Ecoppia. “We see Fortum as a true and visionary partner in advancing
the solar industry towards full automation and lower, viable LCOE,” he
added.
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State-owned SECI's manufacturing-linked solar
energy auction for 5GW capacity has evoked good response as Adani Green
Energy, Azure and Navyug have submitted bids for a total of 10 GW projects.
Solar Energy Corporation of India's (SECI) for 5GW solar energy auction
includes 1GW manufacturing component. Thus developers will have to set up
solar equipment manufacturing capacity of 1 GW and power generation
projects of 4 GW.
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The tariff based reverse auction will be conduced
by SECI later this week, a source said.
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Adani Green Energy has submitted bid for 5GW,
including 1GW manufacturing facilities, followed by Azure and Navyug
which submitted bids for 2.5 GW each, including 500 MW manufacturing
plants each, the source added.
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These bids came in after several obstacles were
faced in the manufacturing-linked solar power auctions. For past few
months, renewable power project bids, particularly manufacturing-linked
solar energy ones, were either extended or scrapped on account of poor
response from the developers.
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After successful auction, an investment of around
Rs 6,000 crore is expected for setting up 1GW of solar manufacturing
facilities, which would generate permanent direct employment of up to
10,000 people, the source said.
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At present, India imports 95 per cent of its solar
module requirement from China, leading to a forex outflow of around USD
10 billion per year.
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This programme will be a boost for manufacturing,
resulting in large scale development of industries and employment in
India.
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The success of this tender will help achieve the
Prime Minister's objective of generating 450 GW of renewable energy by
2030. ABI BAL
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Adani Green Energy on Wednesday posted a consolidated
net profit of Rs 102 crore profit for the September quarter of 2019-20.
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The company reported a loss of Rs 188 crore in the
year-ago period, a BSE filing said.
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Total income rose to Rs 711.96 crore in the second
quarter from Rs 458.89 crore a year ago.
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"Adani Green Energy continues to expand and
invest in the renewables spectrum following the government's mission to
be the world's largest renewable energy expansion programme of 175GW till
2022. The company will continue to provide reliable, sustainable, round
the clock green power for India's growing power demands and needs,"
Chairman Gautam Adani said in a statement.
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CEO Jayant Parimal said the company commissioned
450 MW of new renewable capacity in April-September of this fiscal,
taking total operational portfolio to 2.4 GW.
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"With a further 2.9 GW currently under
construction, we will reach 5.3 GW capacity progressively over the next 2
years, contributing to the renewable energy targets of the country,"
Parimal added.
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Shares of Adani Green were trading at Rs 96 per
scrip, up 2.56 per cent, on the BSE.
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