Maharashtra Government’s 100 MW Solar PV received forest clearance…

Power India found that Government of Maharashtra (GOM)’s 125 MW Solar PV Project proposed to be located at Dhule, Maharashtra has been cleared of MoEF as per GoM official.

 

The proposed project which advertise the GoM’s renewable energy commitments, once built up will be among the first large scale (>100 MW) projects of India’ nascent solar sector which contributes around 1% of country’s installed power capacity.

 

  The project was announced last May, but hit an obstacle in September when state officials in the environment ministry said that a portion of the land meant for it was classified as a “forest”, and thus couldn’t be readily allocated for industrial development.

 

The project, which is a part of a larger 150 MW solar power project at Dhule, is entirely financed by the Maharashtra government, with around 80% of the project cost loaned from German development bank KfW.

 

Under the government’s ambitious Jawaharlal Nehru National Solar Mission that started in January 2010, India aims to have 2,000 MW of installed solar power generation capacity by 2013, 10,000 MW by 2017 and 20,000 MW by 2022. Separately, several states have committed to source at least 0.25% of their installed capacity from renewable energy sources, with the Dhule plant also being built to fulfil such obligations.

The successfully commissioning of the plant at Dhule will see another tranche of projects greater than 100 MW each coming up in Maharashtra’s drought-prone Marathwada and Vidarbha regions, said Girase. Other experts said this will pave the way for similar, large initiatives in Rajasthan and Gujarat.

 

 

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Moser Baer Solar enters debt restructuring cell with RS.739 Crs in restructuring…

India’s  solar power ambitions may get a jolt with the first major company in the industry  Moser Baer Solar headed to the corporate debt restructuring cell with Rs 739 crore in restructuring.

 

Moser Baer Solar is a subsidiary of  Moser Baer India. Another subsidiary company Moser Baer Photo Voltaic with a debt of Rs 823.63 crore was admitted to CDR in January.

 

“In April, companies including Moser Baer Solar, Gontermann-Peipers (India) and PCH Retail have approached the corporate debt restructuring cell,” said a banker in the know of the development. “These cases will be discussed in the next meeting,” he said.

 

Moser Baer Solar expressed its inability to comment on the development as its chief financial officer was traveling overseas. Firms operating in the solar energy space have been under strain following developments in European markets.

 

“Solar energy companies are involved in manufacturing of solar panels and are also procuring land and setting up solar energy projects,” said Pashupathy Gopalan, MD, Sun Edison India. “In the past one year, these companies have been under strain as the European market, particularly the Italian government, has dialed out and reduced its solar policy. The demand is much lower than supply and prices of solar panels have dipped over 50%,” said Gopalan.

 

The Italian market has slowed in anticipation of the government’s decision on a new solar subsidy scheme to be rolled out in June.

 

In February, banks had cleared debt restructuring for Moser Baer India. Banks had an exposure of Rs 2,000 crore to the company.

 

India’s renewable energy investment potential is estimated to be nearly $2 billion, but experts say investors are seeing demand only for hydropower generation while solar power and wind energy are stuck with taxation and regulatory issues.

 

Rating agency  CRISIL in its report said it expects banks to restructure loans worth 2 trillion by March 2013

 

 

 

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IFC to invest USD 130 Million in the form of det and equity into INOX for 400 MW of wind projects…

Power India found that International Finance Corporation (IFC) is planning to invest around USD 130 Million in to the INOX Renewable Limited which is a subsidiary of Gujarat Flurochemicals Limited.

 

The funds raised will be used to fund 400 MW of wind projects in the states of Rajasthan and Gujarat.

IFC’s proposed investment involves equity investment of $40Mn in IRL and senior debt of $90Mn.

 

Incorporated in 2010, INOX Renewable is a part of INOX Group which has interest in diverse businesses including Industrial Gases, Refrigerant Gases, Fluoro Chemicals, PTFE, Renewable Energy, Cryogenic Equipment and Entertainment.

 

INOX Renewable houses the wind power generation business of the INOX group.
The company is planning to build up to 3000 MW of wind projects by 2017 with the majority being in the states of Rajasthan and Gujarat.

 

Recently, Gujarat Fluorochemicals transferred its 65MW wind energy business to INOX Renewables.
The total project cost of 400 MW wind project is estimated at $480 Mn which is proposed to be implemented by March 2013.

 

Its existing operational assets are a 4MW wind farm in Tamil Nadu, two wind farms in Rajasthan, including Sadiya -12MW and Ossiya – 30MW, a 23.1MW site in Gude Panchgani, Maharashtra; and a 50 MW site at Mahidad in Gujarat. There is a 100MW wind farm at Dangri, Rajasthan currently under construction.

 

Recently, Chennai based wind power developer – Trishe Energy was also planning to raise funds from private equity investors for setting up of 1,000-MW of wind farms.

Other investments in this sector include IDFC India Infrastructure Fund’s $33Mn investment in Caparo Energy and FE Clean Energy’s $40Mn investment in NSL Renewable Power.

 

 

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Rajasthan to delay award of contracts for 200 MW solar projects till August…

India’s Rajasthan state will delay awarding contracts to companies to build 200 megawatts of solar capacity by about two months to August.

 

The last day to submit expressions of interest is May 18, M.M. Vijayvergia, executive director of the state-run Rajasthan Renewable Energy Corp., which is overseeing the process, said today in an interview in Jodhpur.

 

Shortlisted candidates will be invited to submit bids and the process should be finished around August, he said, without giving a reason for the delay.

 

Companies that have said they plan to participate in the bidding include Welspun Group, India’s largest solar photovoltaic developer backed by Apollo Global Management LLC (APO) co-founder Leon Black, and Mumbai-based Visual Percept Solar Projects Pvt., owned by the Enam Group.

 

 

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BEST to sign a long term PPA with Indiabulls for 300 MW…

Power India found that Brihanmumbai Electric Supply & Transport (BEST) is planning to enter into a long term Power Purchase Agreement (PPA) with Indiabulls Power Limited for 300 MW.

 

The move was considering the estimated exponential increase in power demand in Mumbai city over the next four-five years.

 

BEST is having a current PPA with Tata Power which was for 932 MW and at a tariff rate of Rs. 3.54 per unit is getting expired in 2016.

 

The BEST committee on Tuesday approved the signing of a power purchase agreement with Indiabulls Power for 300 megawatt. The firm will start supplying power from 2016.

 

As said by Mr. O. P. Gupta, General Manager, BEST said:

“Looking at the rate of development, we expect the power demand, catered by the BEST, to touch 1,300 megawatt by 2016. This will be the first time that we are buying power for the long term outside Tata Power”

The state government’s proposed Dharavi redevelopment plan and the construction of a business district in Wadala by the Mumbai Metropolitan Region Development Authority are likely to drive this growth in the demand for electricity.

 

“The projected demand for both these projects is 300 megawatts each, but it will take time for the projects to take shape and the demand to scale up. So we have gone with the assumption that put together, the demand from these two projects would be 300 megawatts by 2016,” Gupta said.

 

As per the agreement with Indiabulls, the company will supply power at Rs 3.42 per unit as the base price for 25 years.

 

BEST will start a fresh bidding process in 2013-end for a long-term supply of 1,000 megawatts, so that it has the capacity to cater to 1,300 megawatts by 2016.

“If we need power over and above that, we will go to the power exchange or buy it from the open market. However, the price in the open market is higher,” Gupta said.

Recently, BEST had purchased 50 megawatts for Rs 4.56 from the open market to make provisions for the peak demand during summer.

Meanwhile, the BEST has decided to hike salaries of its employees after discussions with the Sharad Rao-led union, which had called a flash strike last year.

As a result, BEST will shell out about Rs 350 crore as arrears from 2006 and bear incremental expenses of about Rs 140 to Rs 150 crore every year now on.

 

 

 

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Environment ministry has clear Himachal Pradesh’s proposal on clean development lead the state to move closer to World Bank’s loan of Rs. 1000 Crs…

Power India found that MoEF has cleared the Himachal Pradesh Government’s proposal for environmentally sound and carbon-smart growth in key economic sectors including tourism and hydro-power which facilitated the state government to move a step closer for getting Rs. 1,000 Crs Development Policy Loan (DPL) from World Bank.

 

Ministry of Environment and Forests (MoEF) had initially raised objection regarding issues related to low carbon development initiatives, which was aimed at reducing Greenhouse Gases (GHG) emissions, it finally gave a green signal to the Ministry of Economic Affairs to begin tripartite negotiations with World Bank and Himachal Pradesh.

 

The loan is a first of its kind foreign assistance for environmentally sound and carbon-smart growth in key economic sectors including tourism and hydro-power.

 

Mr. Sudripto Roy, the Additional Chief Secretary (Forest & Environment) ha said:

“This is a positive development for Himachal Pradesh. We have provided a revised proposal to the MoEF. The negotiations on availing at least the first instalment of the loan can begin next month”

 

The World Bank team, which had visited the state in January 2012, and held discussions with secretary-level officers of all the departments, had agreed in principal to sanction the loan.

 

Some of the sectors taken up under the major policy matrix for green initiatives include hydro-power development, direct cash benefits to project affected families in hydro sector, low carbon rural development, tourism growth, agriculture and horticulture development, environment protection and adaptation to climate changes.

 

After having already taken a lead in the environment protection measures, Himachal Pradesh has set a target to become the country’s first carbon neutral state by 2020. The loan will enable sustainable management of natural resources and heritage with a focus on forests, wildlife, wetlands, livestock, mining, fisheries, waste disposal and architecture. Last year, the state had signed a pact with WB to generate carbon credits of Rs 20 crore for 20 years from Mid-Himlayan ‘bio carbon projects’ in 10 districts.

 

 

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Power Ministry to introduce competitive bidding for short term procurement of power…

Power India found that  Ministry of Power (MoP) is planning to introduce competitive bidding guidelines for short term procurement of power.

 

The move was to bring in more transparency in the procurement process of power.

 

Power India further found that the guidelines, prepared after consultations with stakeholders, would be applicable for power being procured for a period of less than one year.

 

As said by MoP official:

“We are almost ready with the competitive bidding guidelines for short term power procurement. We expect to notify the same in May,”

The new norms would help in bringing transparency as well as standardise the whole process of short term power procurement, the official noted.

Presently, there are no specific guidelines for short term power market, which accounts for about 10 per cent of total electricity procured in the country.

State-run Power Finance Corporation (PFC) had come out with draft guidelines for short-term power procurement by distribution licensees through tariff-based bidding process. Power exchanges are not included in the same.

Among others, the draft norms had suggested that the minimum time-frame of ten days should be given for completion of the bidding process.

Excluding renewable sources and captive power plants, the total electricity generated in February stood at 70,999.60 million units. Out of that, 6,441.56 million units — or about nine per cent — were transacted through short-term mode, according to data available with the Central Electricity Regulatory Commission (CERC).

Going by estimates, the short-term power procurement rate is about Rs 4 per unit, declining from Rs 6-7 range in the past few years.

 

 

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Solar Energy Corporation to be fully operational by June 2012 as per MNRE…

Power India found that  the newly established  Solar Energy Corporation of India (SECI), formed primarily for executing the Jawaharlal Nehru National Solar Mission (JNNSM), will be fully functional by June.

 

The said corporation, SECI, was formed in early 2012 with an initial investment of Rs. 20.0 Billion. (see link)

 

As said by Mr. Ashwini Kumar, Director, MNRE, during the Fourth Asia Solar Energy Forum:

“The broad mandate of the company will be to help the ministry to implement JNNSM. It will be fully functional in another two months,”

Under the JNNSM launched in 2010, the government intends to commission 20,000 MW in grid-connected solar power by 2022. In the first phase, solar power generation capacity of around 1,100 MW will be created by 2013, which will be further increased to 10,000 MW by 2017 in the second phase of the programme.

 

At present the recruitment process for the company is on, which would be completed soon, Kumar said, adding that it has an approved equity of Rs 2,000 crore.

 

SECIL would execute turnkey projects, disburse subsidies under the JNNSM and set up grids in the energy deficient area for access. Kumar said the company, based in New Delhi, has started functioning as three board meetings have been already held.

 

The corporation will soon float a tender for setting up lantern charging centres in the naxal hit districts across nine states in the country, he added.

 

SECI was created for avoiding any shortage of funds for the mission and to encourage private players, so that India can achieve targeted solar power generation capacity under the mission. In January this year, Prime Minister  Manmohan Singh had appointed Anil Kakodkar as Chairman of SECI.

 

 

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Narmada canal network has potential to produce 2,200 MW of solar power, to save 11000 acres of land…

If even 10 per cent of the 19,000 km-long Narmada canal network in Gujarat is used for setting up canal-top solar panels, it has the potential to produce 2,200 MW of solar power, save 11,000 acres of land that would otherwise be used and prevent 2,000 crore of precious water from evaporation annually, the Chief Minister, Mr Narendra Modi, said.

Also, canal-top solar power equipment produces 15 per cent more power than the plant set up on land as the water flowing underneath keeps the solar panels relatively cool and helps generate more power, he said. He was inaugurating India's first 1 MW canal-based solar power project, commissioned on the Sanand branch canal near Chandrasan village of Kadi taluka, Mehsana district.

The State Government was compelled to take up this project through Gujarat State Electricity Corporation Ltd (GSECL), as no developer was ready to take the challenge at that time, he said.

The 1 MW plant, set up over a 750 meter-long stretch of the canal, commissioned in February, will generate 16 lakh units of clean electricity and prevent evaporation of 90 lakh litres of water from the canal annually.

The length of the Narmada Main Canal, constructed under the Sardar Sarovar Project (SSP), is 458 km. The Sardar Sarovar Narmada Nigam Ltd (SSNNL) has so far constructed about 19,000 km long canal network, out of the 75,000 km planned for the entire project.

Sun Edison’s new technology proposal

Meanwhile, SunEdison India, which developed the canal-top project for GSECL, is promoting a new, sun-tracking solar panel technology in which the panels, like sunflower, follow the sun's movement across the sky.

As said by Mr. Pashupathy Gopalan, MD, SunEdison India:

“It costs about Rs 2 crore a MW more than the traditional technology. Our 10 MW plant in Surendranagar district has demonstrated that it produces more power,”

Interestingly, SunEdison has also installed a 15 kW solar power plant in Minwada village of Guna district in Madhya Pradesh, which is the only power provider to 75 families of the remote village.

At present, SunEdison is producing 50 MW of solar power at various sites in India, including 45 MW in Gujarat alone, he added.

 

 

 

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