Blogs
Bidding behavior in the Indian solar sector not sustainable
20 March 2017 | BRIDGE TO INDIA
Last week, BRIDGE TO INDIA launched its latest report: “Analysis of utility scale solar tenders in India”. This report examines recent bidding history for all PPA-based, open category tendered projects to understand risk-return relationship in the sector. From July 2015 to December 2016, India allocated 12.6 GW of solar projects to private developers through...
India not doing enough to capture energy storage opportunity
14 March 2017 | BRIDGE TO INDIA
After squeezing global solar module manufacturers out of business, China is at it again. It is using every trick available – government subsidies, domestic quotas, restriction on foreign players and cornering raw material supplies – to dominate energy storage industry, which has been so far led by Japanese and Korean manufacturers such as Panasonic, Samsung SDI and LG Chem. The country is...
Another year from hell for module suppliers
06 March 2017 | BRIDGE TO INDIA
Solar module prices are expected to continue declining in 2017 as global supply continues to exceed demand. As the largest supplier and installer of solar modules, China will continue to drive global pricing. The country’s demand is expected to be up to 20% lower than in 2016 – as against a record 34 GW of installations in 2016, it is expected to add only about 28 GW in 2017 – putting...
India’s first wind power auction to upend traditional business model
28 February 2017 | BRIDGE TO INDIA
India’s first ever wind power auction has resulted in a record low wind power tariff of INR 3.46 (US¢ 5.2)/kWh, just marginally higher than the record low levelized tariff of INR 3.29 (US¢ 4.9)/kWh in the recent Rewa solar auction (refer). Mytrah, Sembcorp, Inox and Ostro are...
India’s problems with coal sector continue
20 February 2017 | BRIDGE TO INDIA
In January 2017, India’s coal imports declined by 22 percent to 14 million tonnes (refer) because of lukewarm demand from power generating stations. Coal India Limited, which accounts for 80% of domestic coal production, has posted its worst ever...
Rewa project is a glimpse into future of the power sector
20 February 2017 | Vinay Rustagi
The 750 MW Rewa solar project has seen tariffs fall to a record low of Rs 2.97/ kWh. Levellized tariff works out to Rs 3.29/ kWh, 24% below the previous low of Rs 4.34 seen in an NTPC tender in January 2016. Most of this fall can be attributed to lower equipment cost. Solar module prices, constituting about 60% of capital costs, have fallen by 26% in the last year. The Rewa auction makes...
Lacklustre budget
15 February 2017 | Mudit Jain
The Union Budget of India for financial year 2017-18 was presented last week. The Indian budget making exercise is somewhat unique as it is seen as setting the tone for major government policy and reform agenda rather than merely a record of financial book-keeping. From that perspective, the budget was a disappointment as it didn’t break any new ground for the renewable sector. It included a...
Record low tariff in Rewa improves growth prospects for solar in India
13 February 2017 | BRIDGE TO INDIA
Madhya Pradesh government completed auction process for the 750 MW Rewa solar project last week (see our previous blogs – link 1 and link2), where tariffs fell to a record low of INR 2.97 (US¢...
SECI gets a significant boost to its credit rating
06 February 2017 | BRIDGE TO INDIA
In a very pleasing development for renewable IPPs, Solar Energy Corporation of India (SECI) has been included as a beneficiary in a tripartite agreement between the Government of India, state governments and the Reserve Bank of India (RBI). The tripartite agreement serves as a payment security mechanism for central government undertakings whereby, in the event of a payment default by any state...
Jharkhand shows the perils of participating in state government tenders
30 January 2017 | BRIDGE TO INDIA
In the second half of 2015, Jharkhand Renewable Energy Department (JREDA) had announced India’s then largest tender for allocation of 1,200 MW of ground mounted, grid connected solar projects. The tender size was so large as to meet over 90% of the state’s peak power consumption and over 20% of its overall power requirement. Despite this and the state being power surplus, the tender was...
International developers in a wait and watch mode
25 January 2017 | Vinay Rustagi
India is expected to add new solar capacity of over 9 GW this year as against less than 1 GW just three years ago. The country should join the exclusive top three solar countries club alongside China and USA. There are an estimated 15 GW of projects already allocated and in different stages of development. Growing market has led to a burgeoning investment interest from Indian and...
India’s first wind tender oversubscribed despite offtake uncertainties
23 January 2017 | BRIDGE TO INDIA
Earlier this month, Solar Energy Corporation of India (SECI) received bids for India’s first wind power tender (
