India x Cleantech — June 2020

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Originally published on Future Trends.

Cleantech Investments

Investment Firm KKR Buys 317 Megawatts Of Solar Projects In India

Shapoorji Pallonji Group has sold solar power projects with a total capacity of 317 megawatts for US$200 million. This transaction is believed to be KKR’s second investment in India’s power sector. The company had earlier invested in an infrastructure investment fund for transmission projects.

This is not the first asset sale by Shapoorji Pallonji Group, which has been struggling to repay loans. Earlier this year, it sold 194 megawatts of capacity to Actis Group’s Sprng Energy for US$200 million.

Saudi Firm Alfanar Plans To Sell 300 Megawatt Wind Project In India

Saudi Arabia’s Alfanar Group is reportedly planning to sell 300 megawatts of wind energy assets in India. The company currently has 600 megawatts of wind energy portfolio in India secured in auctions conducted by Solar Energy Corporation of India (SECI).

Brookfield May Acquire US$300 Million Renewable Energy Loans In India

Brookfield Asset Management is reportedly in talks with Indian lender Piramal Capital & Housing Finance to acquire loans worth US$300 million given to three renewable energy companies in India. Primal Group company had disbursed loans to ReNew Power, Atria Power, and Acme Solar in 2016 and 2017. According to media reports, Primal Group is looking to sell these loans due to increased financial pressure resulting from the COVID pandemic.

Electric Transport

Uber’s Indian Rival Ola Buys Electric Bike Company

Ola Electric, a subsidiary of cab-hailing company and Uber rival Ola, has acquired an electric scooter company. Etergo is an Amsterdam-based that manufactures ‘premium’ electric scooters with a range of 240 kilometers (149 miles) per charge. Ola Electric is currently running a number of pilot projects for deployment of electric two- and three-wheelers across Indian cities.

Renewable Energy & Batteries

India’s Solar Park Scheme Offers $700 Billion Opportunity For Investors

According to the think-tank Institute for Energy Economics and Financial Analysis (IEEFA), India could attract investments worth $500-700 billion in its solar power park scheme. The investment is likely to come not only in power generation but also in the development of transmission infrastructure.

India has approved solar power parks of 26.5 gigawatts capacity so far, IEEFA notes. The state of Gujarat, located in western India, leads with 6.2 gigawatts of solar parks approved by the government. The state will also host one of the largest solar parks in the country, and perhaps the world. Bidding for projects at the 5 gigawatt Dholera solar park has already begun. The Indian government has also approved a 5 gigawatt solar power park in the federally-administrated region of Ladakh.

Solar PV Installations In India To Fall By 23%, Says IEA

The International Energy Agency (IEA) estimates that new solar PV capacity addition in India will decline by 23% this year. COVID-related lockdowns and the poor financial health of distribution companies are among the major reasons for this sharp decline. However, IEA expects the capacity addition in 2021 to exceed that of 2019.

India’s ReNew Power Wins 400 Megawatt Renewable Energy Project

One of India’s leading renewable energy IPPs, ReNew Power, has secured rights to develop a 400 megawatt project under a recent tender issued by SECI. The company will be free to set up either solar or wind or solar-wind hybrid project to supply a pre-defined amount of electricity to distribution utilities in capital city New Delhi and federally-administered regions of Dadar and Nagar Haveli. ReNew Power secured the project at a tariff bid of Rs 2.90 (US¢3.81) per kilowatt-hour. This tariff will increase at 3% each year for the first 15 years of the 25-year agreement to supply power. Two other companies submitted bids for this tender. Greenko Energy Holdings had bid for 400 megawatts while Ayana Renewables and HES Infra had bid for 100 megawatts and 50 megawatts, respectively.

Nearly 85% Of Power Capacity Added In India In Q1 2020 Was From Solar & Wind

According to government data, India added a net capacity of 1.3 gigawatts in the January-March 2020 quarter. The capacity was the lowest for the first quarter of the year for at least five years. Net capacity addition in Q1 2019 was 5.6 gigawatts, while that in Q4 2019 was 5.4 gigawatts. Thus, the new capacity added was the lowest in six quarters. Renewable energy technologies once again contributed to the bulk of new capacity addition. 1.1 gigawatts of renewable energy capacity was added in Q1 2020, including 0.9 gigawatts of solar power and 0.2 gigawatts of wind power. 

India Misses Renewable Energy Targets In 4th Consecutive Year

At the start of financial year 2019–2020, the Ministry of New and Renewable Energy (MNRE) had set a target to add 11.8 gigawatts of renewable energy capacity. This target was the lowest in four years. Compared to 2018–2019, the capacity addition target was 24% lower, yet India failed to achieve the target. During the period of April 2019 to March 2020, the country managed to add 8.7 gigawatts of renewable energy capacity, a shortfall of 26%. The largest capacity addition achieved in India’s renewable energy sector remains 11.3 gigawatts in 2016–2017.

India Proposes Mandatory Procurement of Hydroelectricity

According to media reports, the Indian government has proposed an amendment to the Electricity Act calling for the implementation of a hydropower purchase obligation (HPO). If implemented, this new amendment will required electricity retailers to purchase a minimum percentage of their electricity demand from hydropower projects. The HPO will be implemented in addition to the existing Renewable Purchase Obligation (RPO) which requires electricity retailers to purchase a minimum percentage of electricity from solar and non-solar renewable energy technologies.

Hydropower generator enters solar power business

One of India’s leading hydropower generation companies, NHPC Limited, has entered the solar power business. The company recently auctioned 2 gigawatts of solar power capacity. NHPC will act as an Intermediary Procurer for this, and possibly more, solar power projects. The company has over 7 gigawatts of hydropower capacity.

Government-owned Companies Set Up Offshore Wind Energy Joint Venture

Government-owned companies NTPC and ONGC have entered a joint venture to set up offshore wind energy projects. The companies will also explore partnership opportunities in other renewable energy sectors. The two companies have set a target to have 10 gigawatts of renewable energy portfolio by 2040. NTPC is India’s largest power generation company with over 62 gigawatts in installed capacity. It plans to have 32 gigawatts of renewable energy capacity by 2032. ONGC is India’s largest oil and gas exploration company. It has only 176 megawatts of renewable energy portfolio.

CO2 Footprint Update

India Records First Fall In Carbon Emissions In 38 Years

According to Carbon Brief, India has seen its first decline in its carbon emissions output in 38 years due to the fall in electricity and oil consumption. Carbon Brief estimates that India’s carbon emissions declined 1% during the period of April 2019 and March 2020. The bulk of this decline is estimated to have occurred in March 2020 when a nationwide lockdown was announced by the Indian government. Emissions are estimated to have contracted by 30% in April.

Air Pollution In Delhi Down 49% Amid COVID Lockdown

The COVID-related lockdown in Delhi has resulted in a significant improvement in air quality. According to a study by Indian Institute of Technology (Delhi), Delhi’s Air Quality Index improved 49% during the national lockdown period. PM 2.5 levels fell by 43% while those of PM 10 declined by 31%. Transportation and industry, the two largest contributors to Delhi’s pollution, were nearly completely shut during the lockdown period, resulting in noticeable improvement in air quality.