Blogs


Wind faces slow going   
12 November 2019 |

In a major relief to the sector, MNRE has granted project completion deadline extension to wind projects allocated under SECI auction tranches 1-5. More time has been granted to these projects mainly because of delays in land allocation and completion of transmission infrastructure. A total capacity of 7,200 MW was allocated by SECI in these auctions between Feb-2017 and Sep-2018,…

Wind faces slow going   
12 November 2019 |

In a major relief to the sector, MNRE has granted project completion deadline extension to wind projects allocated under SECI auction tranches 1-5. More time has been granted to these projects mainly because of delays in land allocation and completion of transmission infrastructure. A total capacity of 7,200 MW was allocated by SECI in these auctions between Feb-2017 and Sep-2018,…


Lack of competitive advantage hurting developers   
05 November 2019 |

Last week, SECI conducted auction for a 1,200 MW utility scale solar tender. The tender received bids for full 1,200 MW but the auction was completed for only 960 MW, equivalent to 80% of the bids received, as per the rules in place. ReNew, Avaada and UPC Renewables won 300 MW each at a tariff of INR 2.71/ kWh; Tata Power…

Lack of competitive advantage hurting developers   
05 November 2019 |

Last week, SECI conducted auction for a 1,200 MW utility scale solar tender. The tender received bids for full 1,200 MW but the auction was completed for only 960 MW, equivalent to 80% of the bids received, as per the rules in place. ReNew, Avaada and UPC Renewables won 300 MW each at a tariff of INR 2.71/ kWh; Tata Power…


Changes afoot to improve investor risk profile   
01 November 2019 |

MNRE has announced various changes to the competitive bidding guidelines for utility scale solar projects. There are broadly two categories of changes – to address offtake risk and improve execution timelines. 

Changes afoot to improve investor risk profile   
01 November 2019 |

MNRE has announced various changes to the competitive bidding guidelines for utility scale solar projects. There are broadly two categories of changes – to address offtake risk and improve execution timelines. 


Developers rushing to issue green bonds   
22 October 2019 |

Indian developers have been rushing out to issue green bonds as liquidity in the Indian financial markets continues to stay stretched. An aggregate amount of USD 2.9 billion has been raised by Greenko (USD 1.3 billion), Adani (USD 862 million), ReNew (375) and Azure (350) in the last seven months. The spurt in issuance comes after a lull 2018 when…

Developers rushing to issue green bonds   
22 October 2019 |

Indian developers have been rushing out to issue green bonds as liquidity in the Indian financial markets continues to stay stretched. An aggregate amount of USD 2.9 billion has been raised by Greenko (USD 1.3 billion), Adani (USD 862 million), ReNew (375) and Azure (350) in the last seven months. The spurt in issuance comes after a lull 2018 when…


Sector reform essential to build growth momentum   
15 October 2019 |

A mini-controversy broke out last week with Indian credit rating and advisory company CRISIL issuing a report claiming that India would under-achieve the 175 GW renewable capacity target for March 2022 by 42%. MNRE immediately issued a prickly rebuttal terming the report as factually incorrect and lacking credibility. It has expressed confidence that capacity target of 175 GW would “…not only be…

Sector reform essential to build growth momentum   
15 October 2019 |

A mini-controversy broke out last week with Indian credit rating and advisory company CRISIL issuing a report claiming that India would under-achieve the 175 GW renewable capacity target for March 2022 by 42%. MNRE immediately issued a prickly rebuttal terming the report as factually incorrect and lacking credibility. It has expressed confidence that capacity target of 175 GW would “…not only be…

Award winnig research
Improving prospects of residential rooftop solar market   
11 October 2019 |

Last week, Amplus Solar announced a foray into the residential rooftop solar market. The company, so far focused only on C&I consumers, plans to offer standard rooftop solar solutions backed by a long-term warranty and integrated financing solution.

Improving prospects of residential rooftop solar market   
11 October 2019 |

Last week, Amplus Solar announced a foray into the residential rooftop solar market. The company, so far focused only on C&I consumers, plans to offer standard rooftop solar solutions backed by a long-term warranty and integrated financing solution.


Project execution slowdown to continue   
01 October 2019 |

Utility scale renewable capacity addition has been in a slow mode for the past eighteen months. We estimate Q3 2019 capacity addition at only 2,549 MW (solar 2,114, wind 435), about two-thirds of scheduled capacity addition. Since touching a record high of 5,111 MW in Q1 2018, quarterly capacity addition has averaged at less than 2,000 MW, substantially behind the…

Project execution slowdown to continue   
01 October 2019 |

Utility scale renewable capacity addition has been in a slow mode for the past eighteen months. We estimate Q3 2019 capacity addition at only 2,549 MW (solar 2,114, wind 435), about two-thirds of scheduled capacity addition. Since touching a record high of 5,111 MW in Q1 2018, quarterly capacity addition has averaged at less than 2,000 MW, substantially behind the…


Rooftop solar O&M needs urgent policy intervention
26 September 2019 |

Indian rooftop solar market grew at an estimated CAGR of 83% over past three years. While the market grows rapidly, operation and maintenance (O&M) provision is often ignored. Specialist rooftop solar O&M business segment has not taken off yet in India and remains a disorganized, underdeveloped market. Key reasons include low consumer awareness, tendency to cut costs, policy thrust on…

Rooftop solar O&M needs urgent policy intervention
26 September 2019 |

Indian rooftop solar market grew at an estimated CAGR of 83% over past three years. While the market grows rapidly, operation and maintenance (O&M) provision is often ignored. Specialist rooftop solar O&M business segment has not taken off yet in India and remains a disorganized, underdeveloped market. Key reasons include low consumer awareness, tendency to cut costs, policy thrust on…


Customs duty bazooka for module manufacturing   
24 September 2019 |

After failure of all previous and ongoing policy initiatives to kickstart domestic manufacturing of solar modules, MNRE has recommended imposition of basic customs duty on import of all solar PV cells, components and modules. It has recommended that duties of 10-15% be introduced in April 2021 and gradually ramped up by 2023-2024 to 30% on cells and modules, and 15% on wafers, glass,…

Customs duty bazooka for module manufacturing   
24 September 2019 |

After failure of all previous and ongoing policy initiatives to kickstart domestic manufacturing of solar modules, MNRE has recommended imposition of basic customs duty on import of all solar PV cells, components and modules. It has recommended that duties of 10-15% be introduced in April 2021 and gradually ramped up by 2023-2024 to 30% on cells and modules, and 15% on wafers, glass,…


Slowdown bites hard
20 September 2019 |

India’s total installed solar capacity touched 34,154 MW on 30 June 2019. This capacity is split between utility scale, rooftop solar and off-grid solar as 27,934 MW, 4,960 MW and 1,260 MW respectively. Total project pipeline – projects allocated to project developers and at various stages of development – stood at 19,698 MW as on 30 June 2019.

Slowdown bites hard
20 September 2019 |

India’s total installed solar capacity touched 34,154 MW on 30 June 2019. This capacity is split between utility scale, rooftop solar and off-grid solar as 27,934 MW, 4,960 MW and 1,260 MW respectively. Total project pipeline – projects allocated to project developers and at various stages of development – stood at 19,698 MW as on 30 June 2019.

Award winnig research
Forecasting regulations a tough proposition for developers   
18 September 2019 |

In response to a petition filed by the Indian Wind Power Association (IWPA), the Rajasthan High Court has recently upheld validity of the forecasting and scheduling regulations. The IWPA had challenged validity of these regulations on the grounds of high penalty charges and poor forecasting ability of the Qualified Coordinating Agencies (QCAs). The Rajasthan High Court has clarified that technical…

Forecasting regulations a tough proposition for developers   
18 September 2019 |

In response to a petition filed by the Indian Wind Power Association (IWPA), the Rajasthan High Court has recently upheld validity of the forecasting and scheduling regulations. The IWPA had challenged validity of these regulations on the grounds of high penalty charges and poor forecasting ability of the Qualified Coordinating Agencies (QCAs). The Rajasthan High Court has clarified that technical…


The renewable energy bull run is over   
10 September 2019 |

Last week, we stated that investor interest in the RE sector has fallen sharply in the last 12 months. In the wake of increasing costs and execution risks, difficulties in getting debt financing and delinquent DISCOMs, the developers are finally saying no to new tenders. The number of active bidders has declined from more than 200 in 2015 to just 30 in…

The renewable energy bull run is over   
10 September 2019 |

Last week, we stated that investor interest in the RE sector has fallen sharply in the last 12 months. In the wake of increasing costs and execution risks, difficulties in getting debt financing and delinquent DISCOMs, the developers are finally saying no to new tenders. The number of active bidders has declined from more than 200 in 2015 to just 30 in…


Undersubscription becoming a norm   
03 September 2019 |

Two auctions were completed last week by SECI for a 1,800 MW wind tender and a 1,200 MW solar tender respectively. Both were heavily undersubscribed and received only two responses each: wind – CLP (250 MW) and Enel (300); solar – SB Energy (450) and GRT Jewellers (150). Final project allocations were made only for 441 MW (INR 2.83-2.84/ kWh)…

Undersubscription becoming a norm   
03 September 2019 |

Two auctions were completed last week by SECI for a 1,800 MW wind tender and a 1,200 MW solar tender respectively. Both were heavily undersubscribed and received only two responses each: wind – CLP (250 MW) and Enel (300); solar – SB Energy (450) and GRT Jewellers (150). Final project allocations were made only for 441 MW (INR 2.83-2.84/ kWh)…


C&I energy storage has a bright future
30 August 2019 |

Energy storage is slated to play a critical role in supporting rapid expansion of variable RE in the grid while ensuring its stability and security. While a number of grid-scale solar-storage hybrid tenders have been issued recently, activity in behind-the-meter market is yet to pick up pace in India.

C&I energy storage has a bright future
30 August 2019 |

Energy storage is slated to play a critical role in supporting rapid expansion of variable RE in the grid while ensuring its stability and security. While a number of grid-scale solar-storage hybrid tenders have been issued recently, activity in behind-the-meter market is yet to pick up pace in India.


Ministry of Power to review power procurement model   
27 August 2019 |

The Ministry of Power has constituted a new panel to examine “deepening of the power markets in India.” The panel comprises representatives from the Ministry of Power, CERC (India’s chief power regulator) and CEA (Central Electricity Authority). Its mandate is to examine the current power procurement model in India, heavily biased towards long-term PPAs, benchmark it against international norms and…

Ministry of Power to review power procurement model   
27 August 2019 |

The Ministry of Power has constituted a new panel to examine “deepening of the power markets in India.” The panel comprises representatives from the Ministry of Power, CERC (India’s chief power regulator) and CEA (Central Electricity Authority). Its mandate is to examine the current power procurement model in India, heavily biased towards long-term PPAs, benchmark it against international norms and…