Auction for rooftop solar projects deferred again
State-run Solar Energy Corp. of India (SECI) has deferred auction for the 1-gigawatt (GW) rooftop solar projects tender for the fourth time in the past three-four months, a move which has highlighted the complexities of the business. The bidding process for the largest ever rooftop solar tender in the country has now been extended to 17 April from 20 March, SECI said on its website. The public sector undertaking (PSU) had prepared to invite bids in December, Mint reported on 6 December. According to Sunsure Energy Pvt. Ltd, a company that develops solar projects for power producers, the tender has been postponed thrice between 24 January to 20 March. “There is a lot of speculation regarding the delay of this mega bidding,” Sunsure Energy said in a statement. “The reason for the delays can be attributed to any number of reasons, however it must be understood very clearly by the tendering agency that more diligence is required in preparation of the documents which can be easily achieved by increasing the involvement and feedback from the industry players.” We are waiting for some approvals from the ministry (ministry of new and renewable energy) and we are also doing survey of buildings and are waiting for that report to be out before calling for bids,” a SECI official said over the phone, asking not to be named as he is not authorized to be quoted. While the delay will not have an impact on specific companies in the sector, it will impact the sector in general, said Vinay Rustagi, managing director at boutique consultancy Bridge To India. “The government is expected to become a huge demand driver for the rooftop (solar project), but timescales keep shifting and it just shows the complexities of the rooftop market,” he said. According to Rustagi, while the tender is highly anticipated, being the largest so far, and is very attractive to developers due to stability from the government off-take of power, the process of site screening from over a thousand sites and estimation of project sizes is proving to be a challenge. Of the total 100 GW of solar power capacity that India needs to reach by 2022, about 40 GW has to come from rooftop projects. In 2016, the country’s rooftop solar market has added capacity at the fastest pace and crossed 1 GW in total installed capacity, but is still far from achieving the 40 GW target. The solar projects from the tender are to be set up on the roofs of central and state government buildings. Surplus power can be sold via connection to the grid and companies can avail of capital subsidies for the projects. SECI is a major implementing agency for solar projects in India and has already commissioned over 54MW of rooftop projects. Companies have been waiting for large tenders of this nature to increase their capacities and scale their companies higher, said a chief executive of a rooftop solar firm, on condition of anonymity. SECI plans to give 15 months to successful bidders from the date of issuance of letter of allocation for execution of the projects. Will Hernandez Womens Jersey
India becomes third largest aviation market in domestic traffic
India has become the third largest aviation market in terms of domestic passenger traffic, beating Japan, an industry report has said. India’s domestic air passenger traffic stood at 100 million in 2016 and was behind only the US (719 million) and China (436 million), Sydney-based aviation think-tank Centre for Asia Pacific Aviation (CAPA) said in its latest report. India acquired the third spot globally by unseating Japan, which flew 97 million domestic passengers in 2016, CAPA said. Domestic air traffic has shown a consistent growth of 20-25 per cent throughout 2015 and 2016, peaking in January this year at 25.13 per cent. However, the domestic travel demand rose 16 per cent in February this year, ending the long streak of over 20 per cent. According to CAPA, India which enjoyed the fourth position in terms of overall air passenger traffic (both domestic and international) along with the UK, has also inched closer to becoming the third largest one by March next year. “India will become the third largest market 2-3 years ahead of what was projected. This is because the growth has been much higher,” Kapil Kaul, head of CAPA India, said. Japan, which flew 141 million passengers in 2016, was ahead of India whose total air passenger traffic was 131 million in the previous year, as per CAPA. United States with 815 million passengers in 2016 enjoyed the top position, followed by China with 490 million, according to the report. “While we will reach the third spot for both domestic and international air travel ahead of the projected period, we will remain at that position for a very long time because it will not be easy to surpass China and the US,” Kaul said. Cody Bellinger Authentic Jersey
Defusing air rage: Airlines should take a tough line against unruly VIP behaviour
“Air rage” — or sudden and violent behaviour by a passenger affecting those who work on flights or associated people — is a menace that has led to civil aviation authorities issuing strict guidelines on deterrence and punishment for those responsible for such acts. In India, while the laws on unruly and disruptive behaviour in an airliner are clear, they are difficult to enforce when the perpetrators take the cover of their positions of power. The outrageous conduct of Ravindra Gaikwad, the Member of Parliament from Osmanabad who belongs to the Shiv Sena, with Air India staff after seeking a business class seat in an all-economy flight from Pune to Delhi, required more than just a legal response by the airline. The Air India cabin crew had its task cut out but handled the incident well as can be gleaned from raw video images of what transpired on March 23. The consequent steps taken by the national carrier and members of the Federation of Indian Airlines to put him on a “no-fly list” is a welcome one. While the Aircraft Rules of 1937 have outlined a course of actions to be taken after such disruptive behaviour, the application of a “no-fly list” is a new development and is in line with similar practices adopted in many countries. This practice should deter such outrageous actions by anyone, irrespective of whether the malefactor is in a position of power or not. Matt Tennyson Womens Jersey
Narendra Modi powers-up HAL’s indigenisation drive, India’s military may get 100 planes, 1,000 helicopters soon
State-run aerospace behemoth Hindustan Aeronautics Limited (HAL) has finalised a major plan to manufacture nearly 1,000 military helicopters and over a hundred planes, in tune with government’s focus on speeding up defence indigenisation. HAL Chairman and Managing Director T Suvarna Raju said the company has also ramped up its infrastructure to deliver 123 Tejas Light Combat Aircraft to the India Air Force with an annual delivery of 16 jets from 2018-19 onwards. In the next five years, the HAL will also carry out major upgrade of almost the entire fighter fleet of IAF including Su-30MKI, Jaguars and Mirage jets, making them more lethal, he said. “Next five years will be really vibrant time for HAL. We are upgrading almost every major platform including Sukhois, Jaguars, Mirage and Hawks. “We are going to build around 1,000 helicopters including Kamov 226, LCH (Light Combat Helicopter) ALH (Advanced Light Helicopter) in the next 10 years,” Raju told PTI in an interview. The HAL and Russian defence firms have finalised a Joint Venture agreement for production of light weight multi-role ‘Kamov 226T’ helicopters in India which will replace the aging fleet of Cheetah and Chetak choppers. The inter-government agreement for the deal was signed during Prime Minister Narendra Modi’s visit to Russia in December, 2015. Cody Parkey Jersey
Raj govt signs MoU for expansion of Jodhpur airport
A Memorandum of Understanding (MoU) was today signed between the Rajasthan government and other stakeholders for transferring 37 acres of land for development and expansion of the civil airport in Jodhpur. The state government signed the MoU with the Air Force, the Airport Authority of India (AAI) and the Jodhpur Nagar Nigam (JNN). The state government through JNN in lieu of the provided land, will provide 106 acres of land to the Air Force. The MoU was signed in presence of Jodhpur MP Gajendra Singh Shekhawat, Mayor Ghanshyam Ojha and other distinguished public representatives, and Air Force officials. According to the MoU, the state government will transfer 106 acres of its land contiguous to the airfield by JNN/state government. Jack Butler Jersey
BHEL commissions another 250 mw eco-friendly unit in Gujarat
State-owned power equipment maker BHEL today said it has commissioned a 250-mw eco-friendly unit, using low grade coal (lignite) as primary fuel. The lignite-based thermal unit, based on circulating fluidised bed combustion (CFBC) technology, is the second such facility to be commissioned at Bhavnagar Energy Company’s (BECL) 2×250 mw thermal power project at Padva in Bhavnagar district of Gujarat, a BHEL statement said. According to the statement, the first unit of the project was commissioned earlier in May 2016. The project is based on CFBC technology – an environment friendly one to utilise India’s large resource of low grade, high moisture lignite. BHEL has the unique distinction of engineering, supply, installation and commissioning of four units of India’s largest capacity CFBC boilers of 250 mw rating, including the two units at Bhavnagar. Earlier in Gujarat, BHEL has executed the 4×125 mw Surat Lignite Power project in Surat district, also involving the CFBC technology. CFBC boilers are highly fuel flexible and can burn a wide array of fuels, including lignite, and are highly environment friendly with very low pollutant emission. The successful commissioning of CFBC technology-based units has reinforced BHEL’s leadership status in executing a variety of thermal power projects involving supply of state-of-the-art equipment suitable for Indian conditions, it added. Jori Lehtera Womens Jersey
Modi government’s big solar push could run into land hurdle. Read why
The Union cabinet decided last month to double India’s solar power generation capacity, from 20 GW to 40 GW, by setting up 50 solar parks, which are solar projects with a capacity of 500 MW or more concentrated in one area. But this additional 20 GW would mean acquisition of at least 80,000 acres of land, thrice Jaipur’s area, and possibly a problematic move in a land-starved country. There are already signs of trouble with three recorded conflicts related to land acquisition for renewable energy projects. One of these involves the ultra-mega solar park — that is, one with a capacity of 500 MW or more — in Anantapur district in Andhra Pradesh, according to Land Conflict Watch, a mapped online repository of land conflicts across India. Delays in land acquisition add to the cost of the project, also making developers wary of investment. India’s record with solar power generation does not offer reasons to be optimistic either. With just a few days left for end of financial year 2016-17, India still has over 70 per cent of its target to achieve, while targets for upcoming years are even higher. The latest plan now is to generate 40 per cent of India’s solar renewable target of 100 GW by 2022 from solar parks and ultra-mega solar power projects. The augmented solar capacity, when operating at full capacity, will generate 64 billion units of electricity annually, cutting 55 million tonnes of CO2 per year over its life cycle, according to the Ministry of New and Renewable Energy (MNRE). For the sake of comparison, 64 billion units of electricity per year would be enough to power two Delhis, which required 31.1 billion units of electricity during 2016-17, according to the Load Generation Balance Report of the Power Ministry that records energy requirement and availability in the country for the upcoming year. India currently has one of the largest renewables expansion programmes in the world, aiming as it does to install 175 GW of capacity by 2022 — over thrice the current capacity of 50 GW — in line with its Intended Nationally Determined Contribution (INDC). INDC refers to the promise of alternate energy generation made by countries in the 2015 Paris Agreement with a view to cooling a rapidly-warming planet. As of January 2017, India’s cumulative installed solar capacity from all sources was just over 9 GW, and crossed 10 GW in March. To achieve targets, the country will therefore have to install about 90 GW more in the coming five years, a target that might not be achievable. At present, there is a marked gap between the targets and achievements. For example, against the target of installing 12,000 MW of solar capacity in 2016-17, by January 2017, only 2,472 MW had been installed. The largest contributors to solar energy in India will now be rooftop solar installations (40 per cent) and large solar parks (40 per cent). The last 20 per cent will come from utility scale solar projects, with a very small percentage coming from off-grid solar installations. Capacity addition of rooftop solar has been slow to take off. By November 2016, only 0.5 MW of solar rooftop capacity was installed, while 3 GW was sanctioned and under installation, according to MNRE. “The decentralised nature of rooftop installations makes progress difficult, because you need to engage about 500 consumers on average (on the assumption that one household installs a 2-W capacity on average) to reach 1 MW, so the administrative process is far more expensive,” said Abhishek Jain, senior programme lead at the Council on Energy Environment and Water (CEEW), a research institution based in New Delhi. Large solar parks come with several benefits for individual producers such as land clearances, development of infrastructure such as roads and transmission systems, and water access. By mid-2016, a total of 34 solar parks spread over 21 states were given approvals. These had an aggregate capacity of 20 GW. Details of state-wise division for the parks show that Andhra Pradesh, Madhya Pradesh, Gujarat and Karnataka had the most commissioned projects. Being part of a solar park also means that it is easier to raise finance at a lower cost for individual producers within the park. It also ensures that off-take is guaranteed, or else underwritten, which again reduces risk. With the additional 20 GW, the number of solar parks is estimated to increase to 83. Information about areas where these additional parks will be installed, or how the installation mix will change, is not yet available. Solar tariffs in India have been falling since 2010 — from Rs 10.95 per kWh in December 2010 to a level tariff of Rs 3.30 per kWh achieved last month by the 750-MW Rewa solar park project in Madhya Pradesh. Solar parks are perhaps currently the best way to produce renewable energy because they take care of problems faced by smaller producers, which include non-reliability with off-take of produced power, and problems of land acquisition, which is becoming increasingly problematic. “Land acquisition poses a challenge for developers but solar parks enable developers easy access to land, clearances, and evacuation infrastructure. As seen in the recent Rewa solar park bid, the risk of curtailment has also been eased by a 100 per cent payment guarantee offered by the state government,” Kanika Chawla, senior programme lead at CEEW, told IndiaSpend. As a general rule, one MW of ground-mounted solar installations require about four acres of land, down from five acres due to advancements in solar cell technology. Jose Abreu Womens Jersey
Arbitration on compensation demand in RIL-ONGC gas row starts
A three-member arbitration panel has started hearing validity of the government’s demand of USD 1.55 billion as compensation from Reliance Industries for “unfairly” producing ONGC’s gas. The panel, headed by Singapore-based arbitrator Prof Lawrence Boo, had its first hearing on March 3 where the timetable was drawn, sources privy to the development said. RIL will first file its statement of claim, followed by a statement of defence by the government. This will be followed by rejoinders, counter-rejoinders and oral hearing, sources said, adding that the panel plans to wind up the hearing in a year. The central government has named former Supreme Court judge G S Singhvi as its nominee on the three-member arbitration panel while RIL and its partners BP Plc of the UK and Canada’s Niko Resources have named former UK High Court Judge Bernard Eder to the panel. RIL-BP-Niko had slapped an arbitration notice on November 11 last year. This was against the oil ministry’s November 3, 2016 notice to RIL, Niko and UK’s BP seeking USD 1.47 billion for producing about 338.332 million British thermal units of gas in the seven years ended March 31, 2016 that had seeped or migrated from the Oil and Natural Gas Corporation’s (ONGC) blocks into their adjoining KG-D6 in the Bay of Bengal. After deducting USD 71.71 million royalty paid on the gas produced and adding an interest at the rate of Libor plus 2 per cent, totalling USD 149.86 million, a total demand of USD 1.55 billion was made on RIL, BP and Niko. RIL is the operator of the KG-D6 block with 60 per cent interest while BP holds 30 per cent. The remaining 10 per cent is with Niko Resources. The government’s compensation claim flowed from the report of the Justice (retd) A P Shah Committee. The Shah panel, in its August 28, 2016, report, concluded that there has been “unjust enrichment” to the contractor of the block KG-DWN-98/3 (KG-D6) due to production of the migrated gas from ONGC’s blocks KG-DWN-98/2 and Godavari PML. The government, sources said, accepted the recommendations of the committee and consequently, decided to claim restitution from RIL-BP-Niko for “the unjust benefit received and unfairly retained”. So, a notice was sent, they said, adding that the government is also pressing RIL to pay USD 174.9 million of additional profit petroleum after certain costs were disallowed because of KG-D6 output being lower than the target. The cost recovery issue is being arbitrated separately. Originally, ONGC had sued RIL for producing gas that had migrated from its blocks KG-DWN-98/2 (KG-D5) and Godavari PML in the KG basin to adjoining KG-D6 block of RIL. Under direction of the Delhi High Court, the government had appointed a one-man committee under retired Justice A P Shah to go into the issue. Shah, however, said the compensation should go to the government as it is the owner of all unproduced natural resources. Kareem Hunt Authentic Jersey
Renewables to account for over 60 per cent of India’s power capacity: Piyush Goyal
Enthused by drop in renewable energy tariff, Power Minister Piyush Goyal today said India’s 60-65 per cent of installed power generation capacity will be green energy. “Going by prices we have discovered, I am inspired to say that 60-65 per cent of India’s installed capacity base will be green energy,” Goyal said at Take Pride event organised by CII. He further said, “India’s renewable energy programme is a great example of how you can do big by thinking big.” Earlier this month, Goyal had predicted that India’s solar power generation capacity will cross 20,000 mw in the next 15 months, from the current 10,000 MW, and said drastic reduction in costs of solar power is proof of maturity of the sector. Lower capital expenditure and cheaper credit have pulled down solar tariff to a new low of Rs 2.97 per unit in an auction conducted for 750 mw capacity in Rewa Solar Park in Madhya Pradesh last month. The auction was conducted by a joint venture of Madhya Pradesh government and the Solar Energy Corporation of India (SECI). The wind power tariff has too dropped to a record low of Rs 3.46 per unit in an auction of 1,000 mw capacity conducted by the SECI. At present, out of 315 gw of total power generation installed capacity, around 50 gw is from renewable sources while large hydro projects (above 25 mw) constitute 44 gw. As much as 14,000 mw (or 14 gigawatt) of solar projects are currently under development and about 6 gw is to be auctioned soon. In 2016, about 4 gw of solar capacity was added, the fastest pace till date. According to power ministry estimate, another 8.8 gw capacity is likely to be added in 2017, including about 1.1 gw of rooftop solar installations. The government is targeting 100 gw of solar and 60 gw of wind energy capacity by 2022. Total renewable energy generation capacity is envisaged at 175 gw by 2022. Commending the government’s initiative on Goods and Services Tax (GST), he said: “Nearly seven constitutional laws have been passed in the last two and a half years by this government without a majority in the Rajya Sabha. Our finance minister is the best finance minister.” Bobby Hart Womens Jersey
Solar power tariffs in India have fallen by 73 percent since 2010
India’s solar sector recently reached record low tariff levels in the auction conducted at the Rewa Solar Park in the state of Madhya Pradesh. India was one of the first countries to adopt reverse auctions for solar projects since the inception of its national solar policy and the government’s goal has always been to procure solar power at the lowest price possible, according to Mercom Capital Group. According to the report, recent record low bid of Rs.3.30 (~$0.494)/kWh (levelized over 25 years) at the Rewa Solar Park by ACME was lower by Rs.1.05 (~$0.02) and 24 percent compared to the previous low of Rs.4.35 (~$0.07) quoted in Rajasthan (by Fortum) in July 2016. “When the first 150 MW of solar was tendered under the National Solar Mission (NSM) Batch-I in 2010, the average tariff quoted was Rs.12.16 (~$0.17)/kWh. Average tariffs have fallen by about 73 percent since 2010, almost in line with Chinese spot module prices, which have fallen by approximately 80 percent since 2010,” mentioned the report. Mercom Capital group said when the entire global solar market was about 17 GW in 2010; Indian solar installations at that point were only about 18 MW. When NSM was initially rolled out, neither the government agencies nor developers had much experience installing solar power projects, nor was there a supply chain in existence. With subsequent auctions, intense competition to get into a new sector resulted in aggressive bidding leading to continued drops in tariffs. “Intense competition in reverse auctions due to a limited supply of projects has pushed companies to bid lower and lower, sacrificing margins, in order to gain market share,” said the report. Other factors leading to fall included, highly competitive reverse auctions, falling module and component prices, the introduction of solar parks, lower borrowing costs, and the entry of large power conglomerates with strong balance sheets and access to cheaper capital have all contributed to the dramatic fall in bids. Additionally, an increase in lending by Indian Renewable Energy Development Agency (IREDA), the World Bank, the Asian Development Bank and other development banks have provided developers with cheaper loans which has enabled developers to bid at much lower prices, stated an official at Ministry of New and Renewable Energy (MNRE). In the last two years, average domestic borrowing rates have declined by approximately 14 percent for solar projects. Looking Ahead The central government just doubled solar park capacity to 40 GW, which is expected to help bring down costs as long as the parks are built and operated efficiently. The MNRE has also released new guidelines for auctions which brings in some of the lessons learned from REWA park. The additional 20 GW, when tendered, will change the face of the Indian solar sector and make it cheaper than thermal in some cases. At least that’s the expectation stated by an MNRE official. The government is also developing a green energy transmission corridor. Although the progress has been slow, the grid is getting ready to take on large renewable energy capacities. In addition, solar park capacities have doubled. You add these to falling module prices and the MNRE guidelines for solar tenders and we have the perfect environment for a solar boom in India, stated a project developer. “The Rewa auction was unique and is not a direct comparison to previous auctions or low bids. After many years of experimentation, the government is finally realizing that eliminating risks leads to lower bids, which results in lower tariff pay outs, saving possibly billions in the future. It took them seven years, but they are learning,” commented Raj Prabhu, CEO and Co-Founder of Mercom Capital Group. The government is extremely pleased with these record low bids; the question is – can developers and investors make attractive returns at these levels? There is no margin for error. Chukwuma Okorafor Jersey