Blogs
Coronavirus disruption highlights risk of external dependence
28 February 2020 | BRIDGE TO INDIA
The Ministry of Finance has clarified that projects affected by the Coronavirus breakout would be given relief by way of extensions in project completion timelines under Force Majeure provisions. The announcement is not a surprise as the resultant business disruption, clearly outside the control of the...
India takes one more step in integration of RE
25 February 2020 | Mridul Chadha
Eight of the proposed 11 Renewable Energy Management Centres (REMCs) have commenced operations. REMCs were proposed to be set up by the Ministry of Power back in 2017 to aggregate renewable energy forecasts and dispatch schedules. They are expected to help optimise scheduling of conventional power plants and maintain grid balance. In late-2018, 11 REMC contracts were awarded by Power Grid...
Weak power demand an under appreciated risk
24 February 2020 | BRIDGE TO INDIA
India added 2,770 MW of renewable capacity in Q4 2019. For the year 2019, total capacity addition is estimated at 11,403 MW comprising 7,140 MW utility scale solar, 1,896 MW rooftop solar and 2,367 MW wind. The total figure is up marginally over 10,683 MW capacity addition in 2018 but substantially lower than 14,031 MW in 2017. Capacity addition numbers are stuck at levels far below...
King coal here to stay
12 February 2020 | BRIDGE TO INDIA
Thermal power IPPs have put in bids of INR 3.26/ kWh in a 2,500...
No dearth of equity
06 February 2020 | BRIDGE TO INDIA
Singapore’s sovereign wealth fund, Temasek, and Swedish PE fund, EQT, have announced entry in the Indian renewable power sector with a corpus of USD 500 million. They have set up a new renewable IPP platform, O2 Power, as a 50:50 joint-venture. The venture...
Government passing the buck to project developers
31 January 2020 | BRIDGE TO INDIA
Last week, we wrote about the proposed MNRE scheme to procure round-the-clock renewable power with blending with thermal power. As we noted, the need for firm, predictable power is all too clear. But it is odd that the government is asking the project developers to provide a solution for this. Not only is the scheme...
Complex tender designs on the way
24 January 2020 | BRIDGE TO INDIA
MNRE has issued a draft scheme for procuring renewable power, blended with thermal power, on a round-the-clock basis with 80% overall availability. The scheme is technology agnostic. Minimum 51% of power outcome is required to come from renewable sources – with or without storage solutions. Thermal power may be supplied from existing power plants. Bidders are expected to quote a composite...
Regulators add to the pain
14 January 2020 | BRIDGE TO INDIA
Maharashtra state regulator, MERC, has recently rejected most of the winning bids in two renewable energy tenders as it viewed the winning tariffs as too high or unreasonable. The two tenders include a 350 MW solar-wind hybrid tender by Adani Electricity, Mumbai DISCOM, and a 1,400 MW agricultural solar tender floated by Maharashtra State Electricity Development Corporation (MSEDCL, the...
2020 – year of prayer and hope
09 January 2020 | BRIDGE TO INDIA
As we commence the new year, there is much anticipation that 2020 would offer respite from the multitude of problems faced last year. A jump in new installations – from a total of an estimated 11.4 GW last year to 15.0 GW – would certainly provide relief to equipment suppliers and contractors. Most of the increase would come...
2019, RE’s annus horribilis
20 December 2019 | BRIDGE TO INDIA
The Government of India is reportedly considering an ordinance to usher in reforms for the power sector in India. As per a news report, the government is seeking to bring about various legislative changes including timely payments by DISCOMs, reduction in cross...
Andhra Pradesh and Centre on escalation path
14 December 2019 | BRIDGE TO INDIA
As per news reports, SECI is seeking to invoke its legal rights in the tripartite agreement with Andhra...
Consolidation underway in solar EPC market
04 December 2019 | BRIDGE TO INDIA
India’s utility scale solar capacity reached 29.7 GW by September 2019, growing 25% y-o-y. A review of the EPC data shows two interesting trends. Contrary to popular perception, share of third-party EPC contractors is increasing and touched 77%, highest in the last five years. Second, there is increasing consolidation in the EPC market as many regional and smaller players have been edged out...
