BRIDGE TO INDIA


RE debt financing gets tougher   
29 October 2018 |

RE projects are facing increasing financing challenges. Liquidity in the Indian financial system has dried up considerably pushing up cost of debt finance by 1.0-1.5% over last year. To make matters worse, we understand that most private banks and non-banking finance companies (NBFCs) are unwilling to finance RE projects at present. Tough financing conditions are expected to pose a formidable…

RE debt financing gets tougher   
29 October 2018 |

RE projects are facing increasing financing challenges. Liquidity in the Indian financial system has dried up considerably pushing up cost of debt finance by 1.0-1.5% over last year. To make matters worse, we understand that most private banks and non-banking finance companies (NBFCs) are unwilling to finance RE projects at present. Tough financing conditions are expected to pose a formidable…


NTPC jumps into the bidding arena   
22 October 2018 |

Uttar Pradesh conducted auction for its 500 MW utility scale solar tender on 10 October 2018. Winning tariffs came at between INR 3.17-3.23/ kWh (USD cents 4.4). Capacity was won by NTPC (160 MW), Adani (100 MW), Sukhbir Agro, Eden, Solar Arise and Avaada (50 MW each) and Maheshwari Mining (40 MW). The tender marks the first instance of NTPC…

NTPC jumps into the bidding arena   
22 October 2018 |

Uttar Pradesh conducted auction for its 500 MW utility scale solar tender on 10 October 2018. Winning tariffs came at between INR 3.17-3.23/ kWh (USD cents 4.4). Capacity was won by NTPC (160 MW), Adani (100 MW), Sukhbir Agro, Eden, Solar Arise and Avaada (50 MW each) and Maheshwari Mining (40 MW). The tender marks the first instance of NTPC…


One more extension for the 10 GW integrated solar tender   
15 October 2018 |

SECI has again extended bid submission date for the 10 GW integrated project development and module manufacturing tender. Revised date is 12 November, 2018. This is the fifth such extension after another round of poor response from the industry. We understand that many developers and 5-7 Chinese module manufacturers are keen to participate in the tender. But the conditions are…

One more extension for the 10 GW integrated solar tender   
15 October 2018 |

SECI has again extended bid submission date for the 10 GW integrated project development and module manufacturing tender. Revised date is 12 November, 2018. This is the fifth such extension after another round of poor response from the industry. We understand that many developers and 5-7 Chinese module manufacturers are keen to participate in the tender. But the conditions are…


GST problems refuse to go away   
08 October 2018 |

Central Electricity Regulatory Commission (CERC) has issued its final decision in response to appeals filed by Adani and Azure against NTPC and SECI respectively for ‘change in law’ compensation claims arising from GST implementation. It has opined that implementation of GST constitutes ‘change in law’ as defined in the respective PPAs. It has also ruled that project developers can claim…

GST problems refuse to go away   
08 October 2018 |

Central Electricity Regulatory Commission (CERC) has issued its final decision in response to appeals filed by Adani and Azure against NTPC and SECI respectively for ‘change in law’ compensation claims arising from GST implementation. It has opined that implementation of GST constitutes ‘change in law’ as defined in the respective PPAs. It has also ruled that project developers can claim…


Spot price spike unlikely to have any impact on solar power   
01 October 2018 |

Spot prices for power on the energy exchange in India touched an all-time high of INR 17.61/ kWh (USD cents 24) last week. Average daily price on October 1, 2018 shot up to INR 7.64 (USD cents 11), about 150% higher than average for last year. Trading volumes have also simultaneously shot up by about 18% over last year. The…

Spot price spike unlikely to have any impact on solar power   
01 October 2018 |

Spot prices for power on the energy exchange in India touched an all-time high of INR 17.61/ kWh (USD cents 24) last week. Average daily price on October 1, 2018 shot up to INR 7.64 (USD cents 11), about 150% higher than average for last year. Trading volumes have also simultaneously shot up by about 18% over last year. The…


International strategic investors hedging their bets in India   
24 September 2018 |

Hongkong’s CLP Group has agreed to sell 40% equity stake in its Indian subsidiary, CLP India, to CDPQ, a Canadian pension fund. Meanwhile, Engie has also offered a 50% equity stake to STOA, a French institutional investor, in its wind business in India. These are just two recent examples of international strategic investors mitigating their India investment exposure. International strategic…

International strategic investors hedging their bets in India   
24 September 2018 |

Hongkong’s CLP Group has agreed to sell 40% equity stake in its Indian subsidiary, CLP India, to CDPQ, a Canadian pension fund. Meanwhile, Engie has also offered a 50% equity stake to STOA, a French institutional investor, in its wind business in India. These are just two recent examples of international strategic investors mitigating their India investment exposure. International strategic…


Power sector reform still a distant dream   
21 September 2018 |

The Ministry of Power has proposed a number of progressive ideas for the electricity sector in the form of draft amendments to the National Electricity Act and National Tariff Policy. Proposed amendments include obligating DISCOMs to supply 24X7 power, a new penalty mechanism for non-compliance with renewable purchase obligations (RPOs), penalties for PPA violations, tariff rationalization and elimination of tariff...

Power sector reform still a distant dream   
21 September 2018 |

The Ministry of Power has proposed a number of progressive ideas for the electricity sector in the form of draft amendments to the National Electricity Act and National Tariff Policy. Proposed amendments include obligating DISCOMs to supply 24X7 power, a new penalty mechanism for non-compliance with renewable purchase obligations (RPOs), penalties for PPA violations, tariff rationalization and elimination of tariff...


Unremitting price focus a major challenge for the Indian solar sector   
10 September 2018 |

MNRE recently advised SECI to revise ceiling tariff downwards in new utility scale solar tenders to INR 2.68 (2.50 without any safeguard duty), a reduction of over 8% on the prevailing level of INR 2.93. The recent 10,000 MW integrated manufacturing tender also has a lower ceiling tariff of INR 2.75 (without any safeguard duty). We also understand that SECI…

Unremitting price focus a major challenge for the Indian solar sector   
10 September 2018 |

MNRE recently advised SECI to revise ceiling tariff downwards in new utility scale solar tenders to INR 2.68 (2.50 without any safeguard duty), a reduction of over 8% on the prevailing level of INR 2.93. The recent 10,000 MW integrated manufacturing tender also has a lower ceiling tariff of INR 2.75 (without any safeguard duty). We also understand that SECI…


Government no closer to unlocking the manufacturing puzzle   
03 September 2018 |

SECI has made several amendments to its RFS for the integrated project development and module manufacturing tender. The big change is reduction in manufacturing capacity from 5 GW to 3 GW. MNRE received strong representations from the private sector with most companies not happy with the integrated tender design or with the ratio of project development and manufacturing capacity. Accordingly,…

Government no closer to unlocking the manufacturing puzzle   
03 September 2018 |

SECI has made several amendments to its RFS for the integrated project development and module manufacturing tender. The big change is reduction in manufacturing capacity from 5 GW to 3 GW. MNRE received strong representations from the private sector with most companies not happy with the integrated tender design or with the ratio of project development and manufacturing capacity. Accordingly,…


Slow project progress poses a risk to government targets   
27 August 2018 |

702 MW of new utility scale solar power generation capacity was commissioned in Q2 2018 taking total installed capacity to 24,941 MW on June 30, 2018. Capacity addition was 11% below our estimate and 60% below the scheduled commissioning target. It was also 82% lower than actual capacity addition in the previous quarter. Accordingly, we estimate total utility scale solar…

Slow project progress poses a risk to government targets   
27 August 2018 |

702 MW of new utility scale solar power generation capacity was commissioned in Q2 2018 taking total installed capacity to 24,941 MW on June 30, 2018. Capacity addition was 11% below our estimate and 60% below the scheduled commissioning target. It was also 82% lower than actual capacity addition in the previous quarter. Accordingly, we estimate total utility scale solar…


Floating solar slow to take-off   
20 August 2018 |

In December last year, SECI announced an EOI for 10 GW of floating solar projects, which was later adopted into the government’s revised 227 GW RE target for March 2022. Several large floating solar projects have been announced subsequently over the last few months. But bid deadlines have been continually extended and progress has been slower than expected....

Floating solar slow to take-off   
20 August 2018 |

In December last year, SECI announced an EOI for 10 GW of floating solar projects, which was later adopted into the government’s revised 227 GW RE target for March 2022. Several large floating solar projects have been announced subsequently over the last few months. But bid deadlines have been continually extended and progress has been slower than expected....


MSEDCL fights back against rooftop solar   
13 August 2018 |

Maharashtra State Electricity Distribution Company (MSEDCL), Maharashtra’s largest DISCOM, has proposed a series of measures to counter growth of rooftop solar in its latest petition to the state regulator. The proposed measures include: i) shift from net-metering to gross-metering; ii) restrictions on capacity addition through lowering the cap on transformer level capacity (from 40% to 15%)...

MSEDCL fights back against rooftop solar   
13 August 2018 |

Maharashtra State Electricity Distribution Company (MSEDCL), Maharashtra’s largest DISCOM, has proposed a series of measures to counter growth of rooftop solar in its latest petition to the state regulator. The proposed measures include: i) shift from net-metering to gross-metering; ii) restrictions on capacity addition through lowering the cap on transformer level capacity (from 40% to 15%)...


MNRE plays a dangerous game   
06 August 2018 |

SECI has cancelled 2,400 MW of the 3,000 MW solar tender for which an auction was completed about three weeks ago. Capacity was won by Acme (600 MW, INR 2.44/ kWh), Azure (300 MW, 2.64), Canadian Solar (200 MW, INR 2.70), Adani (300 MW, INR 2.71), ReNew (500 MW, INR 2.71) and SoftBank (1,100 MW, INR 2.71). All bids other…

MNRE plays a dangerous game   
06 August 2018 |

SECI has cancelled 2,400 MW of the 3,000 MW solar tender for which an auction was completed about three weeks ago. Capacity was won by Acme (600 MW, INR 2.44/ kWh), Azure (300 MW, 2.64), Canadian Solar (200 MW, INR 2.70), Adani (300 MW, INR 2.71), ReNew (500 MW, INR 2.71) and SoftBank (1,100 MW, INR 2.71). All bids other…


Rooftop solar growing faster than expected   
30 July 2018 |

BRIDGE TO INDIA has released the latest edition of its India Solar Rooftop Map report. As per the report, India added new rooftop solar capacity of 1,142 MW in the financial year 2017-18, up 68% over previous year. Total installed capacity is estimated to have reached 2,538 MW as on 31 March, 2018. OPEX market share is rising strongly, driven…

Rooftop solar growing faster than expected   
30 July 2018 |

BRIDGE TO INDIA has released the latest edition of its India Solar Rooftop Map report. As per the report, India added new rooftop solar capacity of 1,142 MW in the financial year 2017-18, up 68% over previous year. Total installed capacity is estimated to have reached 2,538 MW as on 31 March, 2018. OPEX market share is rising strongly, driven…


The government announces yet another idea for domestic manufacturing   
23 July 2018 |

Indian government appears to be working on a new scheme to support domestic manufacturing. The scheme involves procuring 12 GW of new project capacity using domestically manufactured modules over next four years. Power from these projects will be bought exclusively by public sector units for their own consumption. If implemented, it will be the government’s DCR 2.0 scheme. The previous scheme...

The government announces yet another idea for domestic manufacturing   
23 July 2018 |

Indian government appears to be working on a new scheme to support domestic manufacturing. The scheme involves procuring 12 GW of new project capacity using domestically manufactured modules over next four years. Power from these projects will be bought exclusively by public sector units for their own consumption. If implemented, it will be the government’s DCR 2.0 scheme. The previous scheme...


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