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Sr. DESIGNER : ANAND VAIDYA DESIGNER : RATNESH JOSHI ROOFTOP & OFFGRID SUBSCRIPTIONS : India to achieve universal GAZALA KHAN electrification under [email protected] CONTENT Saubhagya scheme in 2018

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6 EQ February 2018 www.EQMagPro.com 44

ROOFTOP & OFFGRID AFRICAN DEVELOPMENT BANK, Nordic Development Fund, Global Environment Facility INTERVIEW and Calvert Impact Capital partner in US $55-mil- Exclusive Interview with lion investment into Off-Grid Energy Access Fund 28 Rajeshwara Bhat 43

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Products Pg. 71-76 INDIA POLICY & REGULATION Average spot power price GOA STATE SOLAR POLICY - 2017 drops 15% in Dec to Rs 3/unit

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ROOFTOP & OFFGRID

GAIL commissions India’s second largest rooftop solar plant in UP

India plans to have 40 GW of rooftop photovoltaics (PV) by 2022. This is part of its target of having 175 IT CURRENTLY HAS 60 GW OF GW of non-hydro renewables capacity by that time. RENEWABLE ENERGY CAPACITY. tate-owned gas utility GAIL India Ltd The plant over the roofs of warehous- said it has commissioned the coun- es covers a total area of 65,000 square try’s second largest rooftop solar meters. power plant. The firm has installed “With an expected PLF of around a 5.76 MWp (Mega Watt peak) solar 15 per cent annually, over 79 lakh KWh S plant at its petrochemical complex at (or units) of electricity is targeted to Pata in Uttar Pradesh, be generated for captive use of India’s largest gas-based petrochemcials GAIL Chairman and Managing plant,” it said. Director B C Tripathi said the com- pany as a marketer of benign natural Tata Power Solar had in December gas is thrilled to integrate captive 2015 commissioned a 12 MW solar solar PV towards achieving lower rooftop project in Amritsar, which pro- carbon footprint at its installations. duces more than 150 lakh units of power Captive solar power initiative of annually and offset over 19,000 tonne of GAIL will reduce carbon emissions carbon emissions every year. by 6,300 tonnes per annum and India plans to have 40 GW of rooftop help India achieve climate goals, the photovoltaics (PV) by 2022. This is part of its target of having 175 GW of non-hydro statement said. “GAIL’s solar rooftop renewables capacity by 2022- made up of project is also a step under ‘Make in 60 GW onshore wind, 60 GW utility-scale India’ with Indian vendors entrusted solar, 10 GW bio-energy, 5 GW small for manufacture, supply and execu- hydro and 40 GW rooftop solar. tion.” Source: PTI

www.EQMagPro.com EQ February 2018 11 ROOFTOP & OFFGRID

India to achieve universal electrification under

Saubhagya scheme in 2018 “The distribution sector is set to The government has planned installation of more and more attract the most attention, from pre-paid meters household electrification to fran- chisee bids. We will see a new set Seventy years after independence, India is racing to connect thousands of of players entering. Unbundling villages with electricity as it looks to accelerate growth whose dividend of wires and supply can spur are distributed to all. innovation in business models,” Kameswara Rao Partner-energy & he new year will see the government accelerate ef- forts to achieve the mammoth task of reaching power utilities PricewaterhouseCoopers to more than a quarter of a billion people who lack said. access to electricity. Year 2017 was an important year, when government unveiled Rs 16,320 crore Pradhan T Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA) in He said, “There’s a huge expectation that the government September to provide electricity connection to around and utilities run a proper pipeline of bids. In its absence new 4 crore families in rural and urban areas by March capital and local supply chain can dry up.” He is of the view 2019. However, the Power Ministry’s internal target to that utilities facing the impact of competition and loss of com- achieve universal electrification under the Saubhagya mercial load are likely to get their act together by investing in scheme is December, 2018. technology and younger workforce. Providing a connection would not help the poor The Ujwal DISCOM Assurance Yojana (UDAY) for financial people particularly in rural in view of their lower paying and operational turnaround of discoms was launched in No- capacity and irregular incomes. In order to boost elec- vember, 2015. The scheme aims to provide permanent solu- tricity consumption particularly in rural areas under tion to legacy of debts of approximately Rs 4.3 lakh crore and the Saubhagya scheme, the government has planned address potential future losses. The scheme also envisages installation of more and more pre-paid meters. reform measures in all sectors generation, transmission, dis- tribution, coal, and energy efficiency. The scheme availability period expired on March 31, 2017. Nagaland, Andaman & Nicobar Islands, Dadra & Nagar Haveli & Daman & Diu signed MoUs with the Government of India under UDAY Scheme on November 20, 2017. With this, 27 states and four UTs have joined UDAY till date. Under the Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) projects worth Rs 42,565 crore have been sanctioned in 32 States/ UTs. As on November 30, 2017, electrification in 1,24,219 villages and intensive electrification in 4,68,827 villages has been completed. Free electricity connections to 277.20 lakh BPL (below poverty line) households have been released. As many as 18,452 census villages in the country out of total inhabited villages of 5,97,644 as per census 2011 were reported un-electrified by the states on April 1, 2015. Power Minister R K Singh on several occasions As on November 30, 2017, electrification in 15,183 villages talked about the installation of pre-paid as well has been completed and 1,052 villages have been reported as smart metres in the coming days for online un-inhabited. The remaining 2,217 villages are expected generation, service and payment of electricity to be electrified by May 1, 2018. These 2,217 villages are bills without human interface. located in Arunachal Pradesh (1,069), Assam (214), Bihar (111), Chhattisgarh (176), Jammu & Kashmir (99), Jharkhand The objective of Saubhagya scheme is to provide last mile (176), Karnataka (8), Madhya Pradesh (34), Manipur (54), connectivity and electricity connections to all households in rural Meghalaya 50), Mizoram (11), Odisha (182) and Uttarakhand and urban areas. Under the scheme free of cost electricity con- (33). Simillary, IPDS (integrated power development scheme) nections to all remaining un-electrified households with at least aims to provide quality and reliable 24×7 power supply in the one deprivation on the basis of SECC (Socio Economic Caste urban area. Economic) data in rural areas and economically poor households So far, projects worth Rs 26,910 crore covering 3,616 in urban areas would be given. towns have been sanctioned. State utilities have awarded the The others families would be charged a sum of Rs 500 per works worth Rs 23,448 crore. The IT and technical interven- household in ten equal instalments with the bill. Besides that fami- tion envisaged in IPDS scheme will not only ensure 24×7 lies located in remote and inaccessible areas would be provided power supply in urban area but will also help in improvement with Solar Photovoltaic (SPV) based standalone systems with in billing and collection efficiency which will ultimately result LED lights, fan, power plug etc. The beneficiaries will be identified in reduction in Aggregate Technical and Commercial (AT&C on the basis of socio economic conditions using SECC 2011 data. or distribution) losses. Besides, the power ministry is about to The effective implementation of UDAY scheme meant for revival bring hydro power policy which provides for incentives to the of debt-laden discoms, would also make difference in 2018. tune of Rs 16,000 crore for this segment. Source: PTI

12 EQ February 2018 www.EQMagPro.com www.EQMagPro.com EQ February 2018 13 ROOFTOP & OFFGRID

30 NDMC schools to have rooftop solar facility In a bid to promote use of renewable energy, 30 municipal schools in north Delhi have been Azure Roof Power to Electrify identified for installation of solar panels on Government Buildings of Udaipur rooftops, tanding committee of the Smart City North Delhi Municipal Cor- poration (NDMC) approved AZRE) one of India’s leading independent solar power producers has won the mandate to install the proposal, as part of first ever 2 MW rooftop solar project for Udaipur Smart City Limited (USCL). which “30 per cent subsidy zure Roof Power will design, supply, install, commission and operate S for the scheme would be the grid connected rooftop solar PV project for 25 years at various provided by the Union Government buildings in Udaipur. The project is estimated to save government”. 25% of USCL’s existing electricity cost. Azure Roof Power offers superior rooftop solar power solutions for commercial, industrial, Agovernment, and institutional customers in cities across India to lower their energy bill and meet their greenhouse gas (GHG) emis- sion reduction targets. With over 150 MWs of high quality, operating and committed solar assets across 20 states, Azure Roof Power has one of the largest rooftop portfolios in the country. “Solar panels will be installed Azure Roof Power has a well-diversified customer base with ma- at rooftop of municipal build- jority portfolio contracted with Government of India backed entities. ings under the NDMC as part Azure Roof Power customers include large commercial real estate of its renewable energy ini- companies, a leading global chain of premium hotels, distribution tiative. The generated power companies in smart cities, warehouses, Delhi Metro Rail Corpora- will be used promptly for tion, Indian Railways, a Delhi water utility company and various internal consumption. “The Government of India Ministries. scheme would begin with 30 identified buildings of mu- nicipal primary schools,” the NDMC said in a statement.

Speaking on the occa- sion, Inderpreet Wadhwa, The panel also approved Founder, Chairman and different proposals related to the Chief Executive Officer, Swachh Bharat Mission. Azure Power said “Roof- “Different types of vehicles, top solar forms an es- equipment and machines to the sential part of the smart tune of Rs 100 crore would be cities development and procured under the Urban De- serves as remedies to the velopment Fund for the purpose growing infrastructural of the Swachh Bharat Mission,” problems of India to build it said. a smarter and more sus- Besides, 22 mobile com- tainable future. munity toilet vans would be procured at an estimated cost of Rs 14 lakh, the statement said. “20,000 twin-bins of plastic of Azure Roof Power helps lower the energy costs of our customers with frame and necessary tilting and meet their greenhouse gas (GHG) emission reduction targets. and locking arrangement will be In addition, Azure Roof Power provides roof owners with an assured made available in phases,” the stream of cash flows through lease rentals or revenue share. In 2013, we built the first MW scale rooftop project in Gandhinagar under the NDMC said. smart city initiative and recently we have worked on several smart city projects in Bhubaneshwar and Cuttack owing to our extensive experience in providing superior solar power operations.”

14 EQ February 2018 www.EQMagPro.com ROOFTOP & OFFGRID

BRPL’s solar rooftop consumer programme launched Aiming to promote clean energy, a major discom here launched the “country’s first” solar rooftop consumer aggregation programme for residential buildings, which seeks to provide installations at a single point for an entire apartment complex. “This path breaking ‘utility Listing the benefits for consumers, the discom anchored rooftop program’ The ‘Solar said a 1 kW solar photovoltaic (PV) rooftop sys- aims to maximise the utilisa- City Initiative tem is expected to generate 4-5 kilowatt hours tion of solar rooftop potential – Solarise (kwh) of electricity per day, which corresponds in south and west Delhi. Dwarka’ was to an average monthly saving of about Rs 750 unveiled by for a period of 25 years for single-point delivery Delhi Power “Unlike conventional consumers. Minister Saty- methods, under this endar Jain. programme, rooftop “Moreover, to set up the solar plant, a 30 solar installations will per cent capital subsidy is provided by the be provided at a single Ministry of New and Renewable Energy point for the entire along with a Rs 2 per unit generation-based aking its commitment to pro- apartment complex. In mote renewables to the next incentive allotted to a limited number of the first phase (Solarise level, BSES Rajdhani Power early projects by the Delhi government,” Limited (BRPL), in partner- Dwarka), around 150 Besides helping the BRPL in meeting its ship with United States Agen- societies will be tar- renewable purchase obligation (RPO), the cy for International Develop- geted in Dwarka. Look- pioneering initiative will help the discom T ing at the response, minimise overloading issues in congested ment (USAID) – PACE-D and Indo-German Collaboration the program will be areas during the peak summer months. (GIZ) launched the ambitious expanded to other “It will also help us in achieving capex de- initiative, the BSES said in a residential segments ferment for line replacement and unplanned statement. across BSES,” it said. grid upgradation intermittently,”

www.EQMagPro.com EQ February 2018 15 INDIA

Clean energy crosses 62 GW mark; solar over 16W, wind 32.7GW The countrys renewable energy capacity stood at 62.05 GW by November 2017, which includes 32.75 GW of wind energy and 16.61GW of solar power, Parliament was informed Recently. he minister informed the House that the power generated from these sources is fed into the grid and then utilised by distribution companies to provide the same to consumers. The government has fixed a target of installing 175 GW of renewable energy capacity by 2022, T which includes 100 GW from solar, 60 GW from wind, 10 GW from Bio-power and 5 GW from Small Hydro power. “A total of 62.05 In a separate reply to the House, GW of renewable Singh said that tidal energy cannot be presently harnessed on commercial energy capacity has basis due to high capital cost ranging been installed as from Rs 30 crore to 60 crore per MW. on November 30, Solar, wind and thermal power cost 2017 which includes around Rs 6 crore per MW for creating peak demand of 164.06 BU. 32.75 GW from new capacities as per industry informa- Similarly, he informed the house that wind, 16.61 GW tion energy deficit was recorded at 0.7 per from solar, 8.29 GW Singh told the House that there is an cent in April-November this fiscal as from bio-power and estimated potential of about 8000 MW 809.49 BU was supplied against the 4.40 GW from small of tidal energy with 7000 MW in the demand of 815.34 BU.According to hydro power (up to Gulf of Kambhat, 1200 MW in the Gulf the load generation balancing report 25 MW),” Power of Kutch in Gujarat, and about 100 MW of the Central Electricity Authority for and New & Renew- in the Gangetic delta in Sunderbans 2017-18, India would become power able Energy Minister in West Bengal. The minister also told surplus nation. It had said, “All India R K Singh said in a the House that the peak power supply power supply position indicates that the written reply to the deficit in April-November this fiscal was country is likely to have a peak surplus Rajya Sabha. 2 per cent in the country as 160.75 bil- of 6.8 per cent and energy surplus of lion units (BU) was supplied against the 8.8 per cent.” International Multilateral Financial Institutions providing Technical and Financial assistance for Solar Power Projects in the Country: Shri R.K. Singh inister of State (IC) Technical Assistance is for Power and New The Minister stated also available for promo- & Renewable Ener- that the World Bank is tion of rooftop systems gy, Shri Raj Kumar providing assistance under World Bank, Asian Singh, in a written of USD 100 Million Development Bank, reply to a question for development of USAID and GIZ assis- on support to solar internal infrastruc- tance. The assistance M power projects in ture of solar parks under such schemes are the country, in Lok Sabha informed that a programme being available to all States/UTs the Government has various solar power implemented by the depending on requirement programmes which are being implement- Indian Renewable and demand. ed through assistance of World Bank, Energy Development The solar and wind International Finance Corporation and Agency Ltd. (IREDA) power projects are very other multilateral financial institutions. under the aegis of this competitive as compared Further, the Minister stated that a Ministry. to conventional power concessional loan of USD 620 Million projects. The lowest tariffs has been provided by the World Bank to in solar and wind discon- the State Bank of India and of USD 500 (IREDA) under the aegis of this Ministry. tinued recently have come million by the Asian Development to the Also, the International Finance Corporation down to Rs. 2.44/kWh and Punjab National Bank for financing of (IFC) has signed an agreement with the Rs. 2.43/kWh respective- grid connected rooftop solar projects in State government of Madhya Pradesh to ly, Shri Singh informed. Industrial and Commercial sectors. help them in setting up of various solar PV power projects, Shri Singh added. Source: PIB

16 EQ February 2018 www.EQMagPro.com INDIA

As compared to solar power, thermal power is sold at Rs 5 per unit, “Currently, the generation of solar power is very mini- mum compared to traditional energy. This year, the govern- ment is planning to boost solar power generation,” the official added.

States of Rajasthan, Telan- Mahavitaran to purchase 1000 MW gana, Tamil Nadu and Andhra Pradesh are ahead of Maha- solar power in 2018 rashtra in generation of solar power, the official added. In a move to boost solar energy production in Maharashtra, Mahavitaran, the power transmis- At present, the solar power sion company of the state government, is planning to purchase 1000 MW solar power this year. generation in Maharashtra is Bids to purchase 1000 MW solar power have been invited at Rs 3 only 1,000 MW out of which per unit, an Energy department official told PTI over weekend. 300 MW is produced by Ma- haGenco (Maharashtra State t present, such agriculture pump Ujni dam in Solapur district will Electricity Board Co Limited). sets having 5500 MW capacity be the first such solar power Under the Chief Minister’s have been set up. This year, the generation scheme in the state. Solar Agri Feeder programme, government is planning to set He said global tenders for the solar power pumps with the ca- up floating solar panels on wa- project would be invited soon. pacity of 7000 MW will be set ter reservoirs to produce solar Water conservation department up for the agriculture purpose. energy, the official said, adding has set the target of 1000 MW A that the floating solar panel on solar energy from the Ujni dam.

www.EQMagPro.com EQ February 2018 17 INDIA

63 solar micro grids of 1899 kWp aggregated capac- ity reported to be installed in the country: Shri R.K. Singh

inister of State (IC) Average spot power price drops for Power and New & Renewable Ener- 15% in Dec to Rs 3/unit gy, Shri Raj Kumar Singh, in a written Average spot power price dropped to Rs 3 per unit in December, which is about 15 per cent reply to a question lower than Rs 3.55 per unit in the preceding month on Indian Energy Exchange (IEX). on steps taken by M Government to explore the solar micro grid model in “The average Market Clearing Price (MCP) discovered the country, in Lok Sabha informed that in Day-Ahead Market at IEX for December was at Rs 3 per under the Solar Off-grid and Decentral- unit, about 15 per cent lower than the price in Novem- ized Applications Programme, so far 63 ber’17 which was Rs 3.55 per unit and 29 per cent above Rs solar micro grids of 1899 kWp aggre- gated capacity have been reported to 2.32 per unit same month last year,” the exchange said in be installed in the country with financial a statement said. support from the Ministry of New & Renewable Energy (MNRE). otal of 3,108 MU price’ was realised for 30 days in (million units) was the month of December. On daily cleared, which is average basis, 841 participants about 12 per cent traded in the day-ahead power lower than the market in December. It said that a 3,524 MU traded in total of 8,41,052 ESCerts (energy November and was saving certificates) were traded in T almost equivalent December with maximum price at to 3,095 MU traded in December Rs 1,000 per ESCert and mini- 2016. On a daily average basis mum price at Rs 350. The market about 100 MU were traded. Aver- saw trade of 66,569 ESCerts in age daily sell and buy bids were November. 209 MU and 123 MU, respectively. The Renewable Energy The total sell bids during the Certificate (RECs) Market, which month were 6,475 MU and the trades on last Wednesday of total buy bids were 3,826 MU. every month, saw the highest MNRE has provided financial The IEX said that with persistent ever trade of 32.39 lakh non-solar support up to 30% of the cost efforts from the government to RECs traded at the floor price in improve the coal supply situation, the trading session held on 27 De- of micro/mini-grids systems for the availability of coal at gen- cember, 2017 registering increase installation in the rural areas of erators’ end was better and thus of 71 per cent over November, the spot power prices reduced when 18.89 lakh non- solar RECs the country. The design capacity in comparison to the previous were traded. The Term-Ahead of micro grid depends upon the month. Market (TAM) traded 78 MU in requirement to be catered. Moreover, due to the seasonal December, mainly in the Intra-day variation and drop in temperature and day-ahead contingency mar- Shri R.K. Singh across northern states, power ket segments. The TAM traded demand remained subdued in 317 MU in November 2017 and December, The ‘one nation, one 68 MU in December 2016. Source: PIB Source: PTI

18 EQ February 2018 www.EQMagPro.com Trade Wa rs

India rejects U.S. solar claim at WTO, explores new defence India hit back at Washington’s latest legal assault on its solar power policies at the World Trade Organiza- tion, rejecting a U.S. legal claim and exploring pos- sible new protection of India’s own solar industry.

he United States triggered a new round of litiga- tion at the WTO, arguing that India had failed to United States complained to the WTO abide by a ruling that it had illegally discriminat- in 2013, saying U.S. solar exports to India ed against foreign suppliers of solar cells and had fallen by 90 percent. The WTO judges modules. In a statement published by the WTO agreed that India had broken the trade on Monday, India said it had changed its rules rules by requiring solar power developers to conform with the ruling and that a U.S. claim to use Indian-made cells and modules. In for punitive trade sanctions was groundless. T a separate move that could protect its solar industry from global competitors, not only “India underscores that the United States’ re- U.S. rivals, India told the WTO last week quest is not a valid request,” the Indian state- that it was considering the case for imposing ment said. It said Washington had skipped temporary emergency tariffs on solar cells, legal steps, failed to follow the correct WTO modules and panels, after a petition from procedure, and omitted to mention any spe- the domestic industry. cific level of trade sanctions that it proposed Safeguard tariffs are permitted by the WTO to level on India, leaving India “severely if there is evidence of serious harm, or prejudiced”. India would be vindicated if the threat of serious harm, to a country’s pro- proper process was followed, it said. “In view duction from a sudden, unforeseen surge of the above, India strongly objects to the in imports. India said the market share of U.S. request of 19 December 2017,” it said. imports had increased from 86 percent Renewable energy has become an area in 2014-15 to 90 percent in 2017-18, with of severe trade friction as major economies growing losses for Indian producers and compete to dominate a sector that is expected a fourfold rise in inventory levels. That to thrive as reliance on coal and oil dwindles. amounted to prima facie evidence of seri- India unveiled its national solar programme in ous injury to Indian firms, India said in the 2011, seeking to ease chronic energy shortages WTO filing. in Asia’s third-largest economy without creating pollution.

www.EQMagPro.com EQ February 2018 19 PV MANUFACTURING

CANADIAN SOLAR, PHOTOWATT AND ECM GREENTECH PLAN TO FORM A JV COMPANY IN LOW-CARBON PRODUCTION OF SILICON INGOTS AND WAFERS Canadian Solar Inc. (the “Company”, or “Canadian Solar”) (NASDAQ: CSIQ), one of the world’s largest solar power companies, announced it plans to partner with Photowatt, a subsidiary of EDF Energies Nouvelles and ECM Greentech, a group that is in the forefront of silicon crystalliza- tion equipment and process in France.

he three companies intend to set up a joint venture (“JV”) special- “This cooperation is a win-win for ized in low-carbon production each party involved. The French of advanced technology silicon government’s ongoing annual ingots and wafers in France. EDF solar energy program of 2,500 Energies Nouvelles through its MWp tendering, together with EDF subsidiary Photowatt, Canadian Group’s target of building 30 GWp Solar and ECM Greentech would of solar projects in France between T 2020 and 2035 will create great op- own 60%, 30% and 10% of the equity in the JV respectively. portunities for solar energy market The JV partners are pioneers there. We are happy to participate in high performance of casting in the leading development of this mono technology, which gives next generation of low carbon solar energy production. the JV the potential to deliver the mono-crystalline silicon solar performance at the multi- Canadian Solar has over 16 years of manufacturing experience in crystalline cost. Meanwhile, the the solar industry and has deployed over 25 GWs of solar modules technology developed by the JV around the world. This new carbon technology, coupled with high ef- partners would contribute to one ficiency will speed up the energy generation grid parity,” commented of the lowest carbon footprints Dr. Shawn Qu, Chairman and Chief Executive Officer of Cana- in manufacturing solar products. dian Solar Inc. France is a leader in low-carbon The establishment of the JV is being reviewed and subject to the ingot and wafer production. clearance by the relevant competition authorities.

China National Building Rourkela Steel Plant Materials Acquires a sets up 1 MW solar unit Minority Interest in SINGULUS TECHNOLOGIES China National Building Materials, Beijing (CNBM), has informed SINGULUS TECHNOLOGIES AG that it has acquired a minority interest of around ystem, which is in the final 1.5 million shares (around 16.8%) of the current Rourkela Steel stage of commissioning, is 8.9 million issued shares from external sharehold- Plant (RSP), a expected to generate mini- ers. It is reported that the corresponding legally unit of SAIL Ltd, mum 1.479 million units of binding purchase agreements have been signed. has set up 1 MW solar energy per annum, RSP A transfer of ownership of the shares to CNBM solar photovol- Ssaid in a statement. T It is also installing other facilities for (closing) is to take place in the near future, once taic (PV) power certain conditions precedent have been fulfilled. generation unit production of green energy. Two 5 KW rooftop solar PV power generation sys- For example, the acquisition of the shares remains inside the plant tems have already been installed and to be approved by Chinese government agen- premises at cies and the relevant competition authorities. It is seven more such systems are in the a cost of pipeline. RSP is also in the process of expected that the approvals will be granted over Rs. 6.68 crore. the coming months. setting up a 15 MW hydro power project on the downstream of Mandira Dam in collaboration with GEDCOL.

20 EQ February 2018 www.EQMagPro.com INDIA

Cabinet apprised of the MoU between India and Italy on cooperation in the field of renewable energy The Union Cabinet chaired by Prime Minister Shri Narendra Modi has been apprised of the Memorandum of Understanding (MoU) on India-Italy Cooperation in Renewable Energy between India and Italy.

he MoU was signed on 30th India and Italy aim to establish a Joint Working Committee to re- October, 2017 at New Delhi. The the basis for a cooperative insti- view, monitor and discuss matters MoU was signed by Shri Anand tutional relationship to encourage relation to areas of cooperation. Kumar, Secretary, Ministry of New and promote technical bilateral It aims for exchange of expertise and Renewable Energy, Govern- cooperation on new and renew- and networking of information and ment of the Republic of India and able issues on the basis of mutual helps in strengthening bilateral H.E. Mr. Lorenzo ANGELONI, Ital- benefit equality and reciprocity. cooperation between the two T ian Ambassador to India. The MoU envisages establishing countries.

www.EQMagPro.com EQ February 2018 21 featured

Adani Group among top 15 global Shell ventures back utility solar power developers into solar * Shell agrees to acquire stake in Silicon Ranch Corporation Adani Group has been named in the top 15 global utility solar power developers * Investment to reach up to $217 mln, could expand that includes likes of First Solar, Total, SunEdison and Engie. * Deal follows string of deals beyond oil and gas dani, ranked 12th, is the only Indian company on the list put out by Greentech Media, a Wood Royal Dutch Shell agreed on Monday to acquire a stake in a Mackenzie business. U.S. solar company, 12 years after exiting the sector, in the latest in a series of deals to grow beyond its core oil and “We have only included companies that gas business. are active in developing projects in more than he Anglo-Dutch company also one country,” it said in a report. “There are a gave the green light for its first number of developers active in single markets major new project in the North Sea A (predominantly China, India and the US) that in six years, signalling a cautious have developed more capacity than some of return to spending following three the companies covered in this report.” years of belt tightening in the face Top of the list is First Solar with an operational of lower oil prices. Shell agreed capacity of 4,619 MW and in-development capac- T to buy a 43.86 percent stake in ity of 4,802 MW. Adani has 788 MW of operational Silicon Ranch Corporation from funds linked to capacity and another 1,270 MW under development. Partners Group for up to $217 million. It follows on the heels of British rival BP, which last month also re-entered the solar sector with the $200 “Adani is moving into the Australia solar market with million investment in Lightsource. the development of the 140 MW Whyalla and 170 Nashville, Tennessee-based Silicon Ranch MW Rugby Run plants,” GTM Research said. develops, owns and operates solar plants It “could potentially look to acquisitions to grow outside across the United States with a capacity of 880 of India the company had been rumoured to be interest- megawatts. Shell also has an option to increase ed in the acquisition of Equis Energy,” the report said. its ownership after 2021. Adani Renewables is targeting 10 GW of installed renewable power by 2022. The company currently has “With this entry into the 12 MW of operational wind assets, as well as 788 MW fast-growing solar sector, of solar PV. “The top 15 companies have an additional Shell is able to leverage 33.5 GW of announced projects in the pipeline,” it said. its expertise as one of the top three wholesale power First Solar, Canadian Solar and Total have the larg- sellers in the U.S., while est project pipelines. SunEdison has the fifth-largest expanding its global New portfolio, though the company is in the process of Energies footprint,” Marc divesting much of its portfolio to other developers after van Gerven, Shell vice filing for Chapter 11 bankruptcy in April 2016. The re- president of solar, said in a port said the top 15 developers are globally diversified and 13 companies are active in developing projects in statement. at least three regions around the world. In November, Shell doubled its planned investment “Most of the largest developers are actively looking to in its new energies division, which focuses on renew- develop projects outside of the well-established markets ables and low carbon technologies, to $1 billion-$2 such as Europe and Japan that have provided much billion until 2020. The investment in renewables far of the early growth in their portfolios. Very large-scale exceeds those of other major oil companies but still projects are now more achievable in emerging markets, represents a fraction of Shell’s overall capital expen- particularly in the Middle East and Latin America,” diture of around $25 billion. Oil companies have come it said. Also, several companies are moving toward a under growing pressure from investors to adapt to “build, sell and operate” model rather than keeping the transition to lower carbon energy as governments projects on their own books. seek to reduce greenhouse gas emissions by the end of the century. “This points toward an increasingly active secondary Last month, Shell agreed to buy British household market for large-scale solar PV (photovoltaic) assets energy and broadband provider First Utility, targeting and an easy entry to the solar market for companies a market for its gas supplies which it expects will play with money to spend,” the report said. Each of the top a growing role in the transition to low carbon energy 15 global developers is actively articipating in tenders sources. Shell first entered the solar sector when it for large-scale capacity around the world. acquired Siemens Solar in 2002, only to sell the en-

Source: PTI tire business six years later. It still retains a tiny stake in Showa Shell’s solar business after selling most of the business in 2016. Source: Reuters

22 EQ February 2018 www.EQMagPro.com featured

JSW Energy incorporates JSW Solar for clean energy biz Sajjan Jindal-led JSW Energy said it has incorporated a wholly owned subsidiary JSW Solar Ltd to pursue business opportuni- ties in renewable energy and related segments.

ompanys board in August last year had ap- proved the proposal of entering into electric “The company has, on January 1, vehicles, energy storage systems and as- 2018, incorporated a wholly owned sociated business, directly or through one or subsidiary JSW Solar Ltd to, inter more subsidiaries. The company had said that the expected alia, pursue business opportuni- capex to be incurred on these businesses ties in the renewable energy space, C over the next three years would be in the energy storage systems, micro grids, range of Rs 3,500 to Rs 4,000 crore. The company has also inked a pact with the etc,” JSW Energy said in BSE filing. Government of Gujarat to set up facility to manufacture electric car and storage battery.

www.EQMagPro.com EQ February 2018 23 solar PROJECT

EMMVEE Commissions TPREL commissions 40MW Solar PV project 50 MW DCR solar plant in Karnataka. in Karnataka mmvee Photovoltaic Power Private Limited, India’s top solar Renewable energy company Tata Power Renewable Energy Ltd(TPREL), PV modules manufacturer commissions 40 MW solar power announced the commissioning of its 50 MW DCR solar plant at Pav- plants in Karnataka. agada Solar Park in the state.

he three solar projects are spread he project was won by the company on across 206 acres area of land (Bage- April 4, 2016 under the National Solar palli, Kunigal & Bidar), the 40MW plant Mission Phase-II Batch-II Tranche-I State has 132,000 polycrystalline modules Specific Bundling Scheme, the company and will have a power generation ca- said in a release. pacity of 72million U/a. With this development, TPREL’s total Emmvee has managed its position installed operating capacity now stands at T in the industry by delivering seamless T 1664 MW, it said. services and equipment product in The 50 MW solar plants have been built the field of solar industry manufactur- over 253 acres, TPREL said, adding, the ing unit. These modules are created sale of power from solar plant has been to perfection with our state-of-the-art tied up under a 25-year Power Purchase machinery and the raw materials used Agreement with NTPCBSE 0.22 % Ltd. at are of the best quality. a tariff of Rs 4.84/ unit.

Speaking on the occasion “the commissioning of the 50 MW D.V.Manjunatha, Founder and solar plant in Karnataka fortifies Managing Director, Emmvee our position of being the largest Group said, “It gives us im- renewable energy company in the mense satisfaction and pride country, with a strong presence in in commissioning 40MW solar solar power generation.” projects in Karnataka which TPREL CEO Rahul Shah said, adds to our milestone and also drive towards clean energy. “… we continue to seek potential areas across India With the current solar revolu- and in select International markets through organic and tion happening across the inorganic opportunities,” he said. TPREL recently commissioned 25 MW solar plant in country, we wish to complete Charanka, Gujarat Solar Park, Gujarat; 30 MW solar plant many more projects in future”. in Palaswade in Maharashtra and 100 MW Solar plant at Pavagada Solar park in Karnataka. Tata Power’s vision is to have 35-40 per cent of the company’s total genera- tion capacity from non-fossil fuel sources by 2025, the company said. Tata Power’s renewable energy capacity this year crossed 2000 MW and green generation portfolio crossed the 3000 MW mark, it added.

24 EQ February 2018 www.EQMagPro.com solar PROJECT

Arctech Solar’s First Middle East Project At the very beginning of the 2018, Arctech Solar’s client formally began the construction work for its 10MW solar power plant in Khafji, Saudi Arabia. This is a new market breakthrough for Arctech Solar’s trackers after its success- ful entry into African market last October.

he 10MW Khafji project is expected to be commissioned “We are delighted to make an by the end of March 2018. effort to the development of Once completed, this project can not only produce enough Saudi Arabia’s seawater electricity to households, but also desalination,” This project power seawater desalting plant in Saudi Arabia lays the nearby with clean, renewable solarT power. Given that the project was located groundwork for us to in a sandy area, Arctech Solar supplied its enter the Middle East redundancy design to this project. With its market. We look forward reliability of redundancy design and excellent tracking performance, Arctracker Pro was the to playing a positive role first tracker product in China that obtained the in ‘Saudi Vison 2030’ and UL2703 & UL3703 certificates by UL last year continuing our involvement and has been widely recognized and accepted by customers. Arctech Solar brought its new product in the Middle East area.” commented SkySmart, the world’s first tracker designed for by Mr. Guy Rong, president of Arctech Solar’s bifacial modules, attended the 2018 WFES held international business. in Abu Dhabi on 15th-18th January.

www.EQMagPro.com EQ February 2018 25 BUSINESS & FINANCE

Orb Energy raises Rs 95 Cr from FMO, OPIC & others Orb Energy is looking to use the capital to grow its in-house finance facility of rooftop solar panels for Indian SMEs and to further expand its Kenya operations.

olar energy systems maker Orb Energy has raised over Rs 95 crore ($15 million) in a part-equity and part-debt round from the Dutch development bank FMO, self- sustaining US government agency Overseas Private In- vestment Corporation (OPIC), African finance institution Pamiga and Germany’s development finance institution DEG. With this, the total capital raised by the company Sstands at $26 million. ReNew Power raises With over $10 million of this round raised as long-term debt from OPIC, Orb is looking to use the capital to grow Rs 2,235 cr from NCD its in-house finance facility of rooftop solar panels for Indian SMEs and to further expand its Kenya operations. ReNew Power has raised Rs 2,235 crore through a non-convert- Orb’s in-house platform provides finance to SMEs looking ible debenture (NCD) issue which will be utilised for repaying to reduce electricity costs through ownership of a roof- its existing loans and business expansion. top solar system. To make the adoption of solar panels easier, Orb offers finance packages without collateral. he issue had two parts with the Based out of Bengaluru, Orb provides solar energy first, a credit enhanced NCD worth systems such as solar panels and water heaters, and Rs 760 crore and the second, a has sold over 150,000 systems in India since inception in multi-issuer cross-collateralised 2006. A vertically integrated company, Orb manufactures rupee bond involving multiple power its own solar photovoltaic panels and solar water heating distribution companies valued at Rs systems through two manufacturing plants in southern 1,475 crore, the company said in a India and has a cumulative installation of over 30 MW of Tstatement . Debt worth Rs 1,475 crore involves rooftop solar systems over the past decade. multiple power distribution companies from In India, rooftop solar systems offer industrial custom- Andhra, Rajasthan and Gujarat, and is spread ers a 3-4 year payback without any subsidy – an unheard across eight special purpose vehicles and 12 of return on investment on an unsubsidized solar power projects totaling 234 mw of installed capacity (174 system. But many cash-constrained SMEs in India can- mw of wind and 60 mw of solar). not afford the up-front costs of solar without credit. Orb is looking to cement its position in this market as a leading “We continue to broad-base credit facility provider, a move that it expects will drive our sources of debt and this strong commercial sales growth. NCD issue has saved interest cost between 1.5 and 2 per “We will generate revenues of over Rs 100 crore cent. This is expected to help in FY18 and are projecting a 40-50% increase freeing up existing bank limits in topline growth over the next three years. For and allowing us to contribute FY19, we are targeting revenues of Rs 150-160 to working towards renewable crore,” Damian Miller, CEO of Orb Energy, told energy targets set by states and ET. With a production capacity of 2-3 MW per the Centre,” companys deputy month currently, Miller is targetting to increase CFO Kailash Vaswani said. production to reach the full capacity of 60 MW over the next year. He further said the proceeds from the bond issue will be used for the prepayment of existing term loans “Orb has demonstrated through its unique in- which he did not quantify. house finance facility and vertically integrated The second issue of Rs 760 crore, has a approach, that profitable growth is possible in tenor of 17 years. this fast-moving, highly competitive segment India Infrastructure Finance Company and the Indian of India’s solar market,” said Jurgen Rigterink, Renewable Energy evelopment Agency have together CEO of FMO. extended a partial credit guarantee. ReNew Power has a host of international investors, including Goldman Sachs and Global Environment Fund from the US, Abu With this capital infusion, Orb is aiming for profit- Dhabi Investment Authority and Asian Development ability in the rooftop solar sector in India within the next Bank and JERA from Asia and till date, it has raised a couple of years. The company will also use a small part total equity of USD 900 million. L&T Financial Services of the capital raised to expand its residential and com- acted as the underwriter for the multi-issuer cross- mercial solar business in Kenya, where it has sold over collateralised rupee bond. 10,000 systems since 2014.

26 EQ February 2018 www.EQMagPro.com BUSINESS & FINANCE

CDC launches Ayana Renew- able Power, appts PJ Nayak as Chairman The UKs development finance institution CDC said it has formed a new company Ayana Renewable Power that will focus on operations in India and neighbouring South Asian countries.

irm has also appointed PJ Nayak “Ayana will develop hundreds of MWs of gen- as the chairman and Shivanand erational capacity targeting underserved Indian Nimbargi as managing director states and neighbouring countries in South Asia and CEO of Ayana Renewable including Bangladesh, Nepal, Myanmar and Sri F Power, a new independent solar Lanka. Ayana is 100 per cent funded by CDC, and and wind generation, the com- pany said in a statement issued will be run by an independent board and man- here. agement team,”

ith more than Ayanas strategic vision is to create 25 years of significant renewable power experience in generating capacity across South Asia, the banking and financial compl ementing it with a development services agenda which reaches out to commu- sector Nayak nities near locations where such W was the for- capacity has been created,” mer chairman and CEO of Axis PJ Nayak as the chairman Bank, and has served as the chairman of Union Bank of Co- Ayana Renewable Power said. lombo, country head at Morgan Stanley India and senior adviser at TPG Capital. Nimbargi, who has an experience operational capacity from 150 MW Prior to this he was a senior of over 20 years in the power sector, to 700 MW. He previously held a official in the Indian Administra- has served as the managing director variety of senior roles at Alstom tive Services, and served as joint and CEO of Green Infra from 2011 India where he was employed for secretary for the Department of to 2016. While at Green Infra, he 15 years. He was most recently the Economic Affairs in the Ministry built a new management team and managing director of L&T Metro Rail of Finance. more than doubled the companys (Hyderabad). Source: PTI

www.EQMagPro.com EQ February 2018 27 BUSINESS & FINANCE

Global green bond issuance hit record $155.5 billion in 2017 -data Global green bond issuance hit a record $155.5 billion in 2017, surpassing previous estimates, and could reach $250 bln-$300 bln this year, research from the Climate Bonds Initiative (CBI) shows.

Husk Power raises $20 mn for its mini-grid business ssuance last year was 78 percent higher than 2016’s Husk Power Systems said that it has raised USD 20 million $87.2 billion and well above the CBI’s estimate in Decem- (over Rs 127 crore) to scale its renewable mini-grid business ber of $130 billion. The United States, China and France both in Asia and Africa. accounted for 56 percent of total issuance in 2017, ac- cording to the CBI, a London-based non-profit organisa- tion which certifies the green credentials of bonds. Fannie The USD 20 million equity investment has Mae was the largest overall issuer in the United States, been made by “Shell Technology Ventures with $24.9 billion from its green Mortgage Backed Securi- LLC, Swedish development finance institu- I tion Swedfund International and ENGIE ties programme. Green bonds are a growing category of fixed-income securities, which raise capital for projects Rassembleurs d’Energies, ENGIE group’s with environmental benefits. impact investment fund”, the company said There were 10 new entrants to the market last year: in a statement. Argentina, Chile, Fiji, Lithuania, Malaysia, Nigeria, Singa- pore, Slovenia, Switzerland and the United Arab Emir- usk Power designs, builds, owns ates. Although green bonds make up a small fraction of and operates one of the world’s the overall bond market, they are attracting more attention lowest-cost hybrid power plants because meeting emissions-cut targets will require tril- and distribution network in India lions of dollars of capital from public and private sectors. and Tanzania, the statement said. Last year, several climate leaders called for a ten-fold It provides power to rural com- increase in green bond investment from 2016 levels and munities and businesses, entirely set a target for 2020 of $1 trillion. H from renewable energy sources. Husk Power co-founder and There are now three vital years to CEO Manoj Sinha said: “Together reach the milestone of a trillion dol- with our strategic partners, we are lars in green finance by end 2020. now confident of achieving our vi- sion of becoming the world’s larg- The final results for 2017 provide some est rural utility company providing foundation, but must be doubled and 24/7, 100 percent renewable and doubled again by the end of the decade,” affordable power to drive inclu- CBI’s Chief Executive Sean Kidney said in sive and sustainable development a statement. in growth markets.” Source: PTI

“The spotlight is now firmly on financial system ac- tors, banks, insurers, corporates and institutional inves- tors to achieve this vital 2020 climate investment target,” he said. The most common use of proceeds from green bonds last year was on renewable energy but invest- ment in low-carbon buildings and energy efficiency rose in 2017, the CBI said. “With a multitude of rail and urban metro deals, allocations to low-carbon transport almost doubled in volume. The trend to finance an increasingly diverse range of projects continues,” it said. Source: in.reuters

28 EQ February 2018 www.EQMagPro.com BUSINESS & FINANCE

AISIA opposes safeguard duty on import of Solar panels, cells NEW DELHI: Strongly opposing the proposed blanket safeguard duty on im- portProposed of solar levy panels will beand counterproductive cells, AISIA (All India for Solar Industries Association) hassolar said industry that the levy will badly impact solar manufacturers operating out ofCall the forSpecial differential Economic anti-dumping Zones (SEZ) across duty on the spe country.- cific countries like China

The SEZ units are treat- ed on par with foreign manufacturers and any hence any Safeguard duty will be detrimental to the Indian solar in- dustry as a whole, said Mr. Gyanesh Chaudhary, general secretary of All India Solar Industries Association (AISIA).

ISIA, however, made a strong case for specific anti-dumping The purpose of imposing Safe- duty on imports In determining whether seri- guard Duty should be to protect the from China which is ous injury is present, investigat- domestic industry from goods which flooding the Indian ing authorities must evaluate are being dumped at below market market with its cheap all relevant factors having a prices, but in case domestic manu- solar modules making bearing on the condition of the facturers situated on SEZs the levy Adomestic industry unviable. yields counterproductive results. This If we take the case of Solar Modules industry, include the absolute could also lead to increase in cost and Cells, India has 3.1 GW of installed and relative rate and amount of power that will discourage the domes- capacity of Solar cells out of which 2 increase in imports, the market tic industry, Mr. Chaudhary pointed GW, more than 60% is situated in SEZs. share taken by the increased im- out. It should be noted that out of 8.3 GW of ports, as well as changes in level The imposition of differential Solar Module Manufacturing facilities of Anti-dumping duty – higher on solar of sales, production, productiv- modules and lower on solar cells – for 3.8 GW are situated in SEZs. Hence, ity, capacity, utilization, profit the indigenous manufactures situated imports from China PR, Taiwan and in SEZ will come under the ambit any and losses, and employment Malaysia will encourage growth of blanket duty that will be imposed on solar of the domestic industry, Mr. domestic manufacturing. This will help cells and modules which will make them Chaudhary said. both solar cell and module manufac- uncompetitive,” turers to compete in the local market India created Special Economic and encourage the Make in India In 2016-17, the estimated demand Zones (SEZs) in 2005 with single mission, of solar modules was around 6 GW window clearance and tax holi- Protective measures such as Safe- whereas the demand is expected to go days to facilitate manufacturing in guard Duties, ADD and Basic Custom up to 10 GW in 2017-18.Under the WTO India. Under the custom laws, SEZ Duty (BCD) are meant to help the framework a member country can im- units are considered to be outside domestic industry but they can cripple pose a Safeguard Duty if the increased Indian customs territories. Thus, SEZ units and goes against the theme quantity of imports may be either an goods manufactured in SEZ, if and spirit of Make in India Policy. At absolute increase or an increase relative sold in India, are treated deemed a time when GDP growth is declining to domestic production which is caus- exports with no customs duty ap- in a constant manner, manufacturing ing serious injury or a threat of serious plicable. Indigenous manufacturers industry has a huge role to play in injury to the Domestic industry. ‘Serious located in SEZ will caught on the India’s growth story, we need to re- injury’ is defined as a significant overall wrong foot in case a Safeguard valuate the duty structures to facilitate impairment in the position of a domestic Duty is imposed on all imported the survival and growth of domestic industry. solar modules and cells. industry, Mr. Chaudhary added.

www.EQMagPro.com EQ February 2018 29 INTERViEWINTERVIEW

Exclusive Interview with Soumyen Mukherjee

EQ: In one of your last interview you in different ways and forms. It has submitted its told EQ that 2017 would be the most EOI for 500 Mw of its own and for the rest 500Mw important year for Solar Industry. How it would form Joint Venture with some reputed the year went for you and Sova Solar? developers of India. SM: The overall performance of Sova Solar has EQ: Anti Dumping Duty and Safeguard increased in 2017 in comparison to the last 6 /7 Duty are two very hot topic now a days years, but the expectation from the industry in 2017 for the Indian industry. What is your was more than it has actually performed . Due to several international and domestic issues the major opinion about the impact of these duties? projects in India got disturbed and as a result the SM: You have asked a very contradictory question, target could not be attended properly. though it is a very burning one. However, I must express my view transparently, as I fancy. If you EQ: Recently SECI has issued an EOI for see the Indian industry with a macro perspective, 20GW. What is your opinion about it ? then you would see both the Indian Cell and How Sova Solar will participate in the Module manufacturers are working very hard said EOI? and despite having various internal hardship and external threats they are making their rooms well. Let me start the reply in a different way. India SM: They actually need the support from the market. has signed GATT agreement way back in 1992, Once the demand and supply would match the which had opened the door of Indian market to India manufacturers would lead the world economy outside world. That has adversely affected our without any hesitation. So we need the demand present Government’s movement to popularise from the market only. No other protection is the DCR Solar Projects in India. Ministry had tried required. to find out an alternative way to safeguard the If we take the reference of the recent list domestic Industry and to form a niche market, as published by MNRE, we can find a good gap a whole. Not only that the concept of MAKE IN between Cell Manufacturing Capacity and INDIA has also to be protected. This Expression Module Manufacturing capacity in India. Firstly a Of Interest (EOI)is the very initial step towards that. symmetricity needs to established between these We highly appreciate the initiative taken by our two manufacturers’ cpacity and secondly it should Minister-In-Charge, Shri R.K Singh. Being a retired be ensured that their production will be consumed bureaucrat has taken a very well thought step to fully by the Indian developers. If our Ministry can form a market for the domestic manufacturers. shape it properly then no antidumping duty and Sova Solar Ltd., is a gladly participating in this EOI safeguard duty would be required .

30 EQ February 2018 www.EQMagPro.com INTERVIEWINTERViEW

Exclusive Interview with

Soumyen Mukherjee President Sova Solar Ltd

EQ: How cost effective is your module in the tied with IIT Kharagpur. The team lead by Professor Jatin market? What kind of support would feel will Roy are continuously monitoring our production process make Indian product more cost competitive? and advices us how to maintain our product quality. SM: We are very very competitive in the market, both EQ: How would you opine the impact of GST for domestic and export. We are supplying modules on the India business ? to various domestic and international EPC solution providers on regular basis. The main game of the SM: The move to start a new regime is always very industry is controlled by the wafer manufacturer and too appreciable. Imposition of GST is expected to be a some extent the foreign cell supplires. They controls good move for our country. The nation was running by a the cost of the ultimate products. The conversion cost parallel economy which didn't contribute directly to the of Sova Solar is very cost competitive . The production growth of the country. With the compulsory imposition of incentive , as I fancy, is the most fruitful means to make GST it is expected that parallel economy will come under the Indian Modules most competitive. If you take a price the same umbrella of the country. data base from the market you may definitely find there The Solar industry may face some initial hindrances, is a gap of UD$ 0.02 to US$ 0.03 per watt peak and the like other industry, but in long run it will definitely enjoy gap is 7% to 10% maximum. If we , the Indian Module the benefits of GST. With the help of instilling more liquid manufacturers, would get production incentive, mind it funds into the economy the purchasing capacity of mass not subsidy, to that extent our modules will be much more will be increased. GST will not be an additional cost to cost competitive. registered retailers therefore there will be no hidden taxes and the cost of doing business will be lower. Once EQ: What is the highest capacity of Modules this flow will become smooth, like other industry Solar you are currently producing in your state Industry will also enjoy the benefits. of the art? What is the target in regard to In the GST system, when all the taxes are integrated, it would make possible the taxation burden to be split technological development this year? equitably between manufacturing and services. GST SM: Before replying to your it is to be made clear that will be levied only at the final destination of consumption Sova Solar supplies only those modules which are based on VAT principle and not at various points (from produced at their own facility. It doesn’t use any other manufacturing to retail outlets). This will help in removing means yet. However, We are currently producing 335 Wp economic distortions and bring about development of a Poly Crystalline Module in 72 Cells matrix and our target common national market, which ultimately help the total is to attain the limit of 345 Wp by the end of this year. We economy and Solar Industry is not out of the economy. have already introduced PV MODULE with PERC Cell . Moreover, GST will also help to build a transparent and Our target is to reach 360Wp in that segment. Regarding corruption free tax administration. technological development we may be aware that we are

www.EQMagPro.com EQ February 2018 31 INTERViEWINTERVIEW

Exclusive Interview with Rajeshwara Bhat

EQ: Proposed Indian Safeguard Duty on EQ: What is your suggestion regarding Module/Cells Import…What are your views on Safeguard duty to Government / this Foreign Module Makers / Indian RB: The proposed Indian Safeguard Duty on Modules/ Manufacturers / Developers / Policy Cells will adversely affect the industry considering Makers / Regulators etc.. the fact that our manufacturing capacity both in terms Safeguard duty should be a well thought of modules & cells are not on par with the target RB: envisaged by our Honorable Prime Minister under out subject holders duly considering the National Solar Mission. The modalities of imposing bare facts instead of mere assumptions. such safeguard duties has sent investors on cautious Government should engage with all the mode where in the projects which have already been stakeholders and come out with deliberations bid or PPA signed will go in hibernation mode if the designed to address the concerns of the Solar proposed safe guard duties are applicable for such industry as a whole. Government should projects also. Due to the ambiguity & in absence of also work on initiatives that would strengthen clear guidelines, most of the bids are seeing poor our manufacturing capabilities in line with response or in some cases, established players have demand & target set out under National Solar gone on defensive mode by not being active which Mission. Foreign Module makers should start will in long run affect the Solar Industry in India. Due exploring opportunities to establish their to lower cell manufacturing capacity in comparison manufacturing capabilities locally in India and to Module assembly in India, most of such module work closely with the authorities to address plants will also be severely affected by imposition of concerns expressed by local industry. Indian such duties. It is highly desirable to strengthen Indian manufacturers should look at enhancing their manufacturing capability which will have long term capabilities to indigenously source their raw benefits but the measures undertaken should be well materials and work out plans on back ward thought out that will address concerns of all stake integration that will suffice their manufacturing holders in the domain. capabilities. Developers should petition strongly with the authorities so as to minimize the EQ: Currently 10GW + Solar Projects are impact on the growth trajectory of the industry. in the offing in India, Whats your plan to Policy Makers & regulators have a crucial role Capture this opportunity. of connecting all the missing dots in the Solar RB: We have been working constantly to enhance our Industry and ensure level playing that would in house expertise and looking for strategic tie ups that encourage investments and brings in most would enable us to capture good business in India competitive tariff.

32 EQ February 2018 www.EQMagPro.com INTERVIEWINTERViEW

Exclusive Interview with

Managing Director Rajeshwara Bhat Juwi India Renewable Energies Pvt Ltd

EQ: USA President Trump Decision on EQ: There have been some challenges faced by 30% Duty on all Imported Cells and SECI regarding PSA’s…Kindly tell us what has Modules…What is the impact on Indian been happening and how has it affected your / Chinese Manufacturers and the global projects and what measures have you taken to solar market deal with this. RB: Global Solar market will greatly be affected due RB: We have not faced any such situations in our projects. to USA President Trump decision on 30% Duty on all Developers should work closely with the authorities to Imported Cells & Modules. The investments in the solar remove the road block by duly complying to conditions. domain may take a regressive step and the targets anticipated may fall back initially. In general, Solar EQ: PPA Re-Negotiation, Cancellation etc…by Industry has been subjected to various policy paradigm some state governments, please enlighten as to across globe in the past which has seen a pass what has been happening and what measures through over a period of time. Chinese manufacturers have your company taken may in long run look at plans to locally produce & cater RB: We are presently focused on EPC services & have not to such market situations considering the regulations see any such situations in our business. PPA Re-negotiation prevailing in the market. Indian Manufactures may not & cancellations are worst allayed fears of any investor and have to worry much in terms of US market but would should never be encouraged at any levels which would cheer a bit anticipating similar impositions in India. otherwise send negative sentiments across the Solar EQ: Problem of the wrong classification of industry. Solar Modules by customs officials, what EQ: What according to you is the current has been your experience and remedy opportunities, biggest challenges, in Indian measures taken Solar Market. RB: Classification of Solar Modules by custom RB: Indian Solar Market in its present form has ample officials has further delayed many projects where opportunities across various segments but wheeling through in no concrete solution seems to have been offered some of the toughest times which will eventually settle down. though intermittent measures are in place. There This would give rise to certain uprising events and even some should be a clarity in terms of statutory obligations or of the downturns which will lead to consolidation of players at duty structure being considered in the projects that various echelons. Indian Solar Market will see a greater boom in would not only protect Solar Investments but also years to come which will through its innovations and technology ensure profitability of the solar plants. adaptations will be the largest power producer shortly.

www.EQMagPro.com EQ February 2018 33 INTERViEWINTERVIEW

EQ: Module Prices Going up, and reports EQ: Aggressive Bidding despite of many of some module companies who have re- challenges enlisted above, what is your negotiated the prices…kindly enlighten view/opinion what really is happening and what RB: We are keenly following the biddings in India measures have you been taking. and even across the globe along with recent RB: We have been hearing such news and internally, developments in the sector and have been treading we are continuously working to strengthen and a cautious but inclusive approach though innovation leverage our position as a global player which will and professional measures. create long term partnerships in the market to avoid such contractual deviations. EQ: Impact of Proposed Indian safeguard duty and Trump's decision on EQ: Impact of GST on Solar ? Manufacturers in Indian SEZ RB: GST regime has added to the cost of the project RB: Indian Safeguard Duty talks about including as compared to relaxed taxing regime that was manufacturers in Indian SEZ under the ambit of previously experienced by the industry. Solar industry safeguard duty which has not gone well with the has eventually seem to be settling down and would see Indian manufacturers as majority of the capacity more consolidation in this year. has been located in SEZ areas. SEZ units are treated on a par with foreign manufacturers, and EQ: Expectations from Indian Government hence, any safeguard duty would be detrimental to Budget 2018-19 ? the Indian solar industry as a whole. RB: The speculation in terms of customs duty, safe EQ: Can India Achieve its target of guard duty, anti-dumping duty and all other ambiguities 80GW of Utility scale solar and 20GW may be rested to peace by bringing in more clarity in terms of guidelines thereby creating a level playing of rooftop solar by 2022 ? What is the among different players in the market. opportunity, challenges, roadblocks and required ecosystem to achieve the EQ: BIS Certification…What is your view target. in terms of enough lab infra, need of BIS, RB: Target set in do not seem to be unachievable Process, applicability and recent news that provided policy makers come out clear on the customs officials not allowing import of allayed fears, ambiguities on duty structure, taxes, solar products without BIS Certification. regulations and others which has been creeping in negative tone. Solar Industry in ’s form will be RB: BIS Certification was envisaged to ensure able to sustain the shocks not for long and needs common bench marking for the industry and it an immediate over haul on regulation that would has gone in to glitches at various levels owing to reset the growth trajectory thereby yielding huge infrastructural draw backs which should be duly investments, jobs, revenues and above all a green addressed such that the project schedules are not sustainable energy for the generations ahead. affected.

34 EQ February 2018 www.EQMagPro.com www.EQMagPro.com EQ February 2018 35 INTERViEWINTERVIEW

Exclusive Interview with Jason Chow

EQ: 12. Please describe in brief about Mr. Baoshen Zhong, the Chairman of Longi your company, directors, promoters, Group, graduated from Lanzhou University with a investors, its vision & mission BS in Physics. He is an expert in magnetic materials and member of the Standing Committee of Fushun JC: LONGi Solar is a wholly-owned subsidiary Municipal Political Consultative Conference. Zhong of LONGi Group. LONGi Group (SH601012) is won the award of Outstanding Private Entrepreneur committed to the mono-crystalline solar field and of Fushun City in 2002 and 2004. He was voted as has become the world’s largest supplier of mono the Annual Model Worker of Fushun City for three silicon wafers, with a total asset of over $2.7 consecutive years from 1997 to 1999 and the Star billion (2016). LONGi Solar is a world leading Manager of Fushun City in 2001. Moreover, he manufacturer of high-efficiency mono-crystalline also won “May 1st Labor Medal ” and “Outstanding cells and modules. Armed and powered by Socialist Builder” of Liaoning Province in 2002. advanced technology and long standing During that period, he held several social positions, experience of LONGi Group in the field of mono- including vice chairman of the Washing Process crystalline silicon, LONGI Solar has shipped Division of China Heavy Machinery Industry over 1GW products in 2015 and is estimated Association (CHMIA) and vice chairman of the to double the revenue by the end of 2016. The First Session of Shaanxi Solar Energy Photovoltaic company has its headquarters in and branches Industry Alliance. From 2006 to June, 2014, Mr in Japan, Europe, North America, India and Baoshen Zhong was a director of LONGI Silicon Malaysia. With strong focus on R&D, production Materials Corp. Since June, 2014, he has been the and sales & marketing of mono- crystalline chairman of the Board of LONGI Silicon Materials silicon products, LONGi Solar is committed to Corp. He has rich experience in management and providing the best LCOE solutions as well as used to be the director of a company specializing in promoting the worldwide adoption of mono- magnetoelectric materials, instrument, investment, crystalline technology. PV, semi-conductor and CNC equipment.

36 EQ February 2018 www.EQMagPro.com INTERVIEWINTERViEW

Exclusive Interview with

Marketing Manager Jason Chow APAC, LONGi Solar

Mr Wenxue Li, the President of LONGi Solar, Mr Hong Chen, the Vice President of LONGi Solar, graduated from Lanzhou University in 1990, born in Chengdu, Sichuan Province, graduated from majoring in physics of metals, and later received Lanzhou University, majoring in physics. Chen has an MBA from Xidian University in 2002. Li is long been engaged in semi-conductor and solar PV now chief executive of LERRI Solar. From sectors. He used to be an engineer, technical director 1990 to October, 2010, he successively held and production director of the production base of the positions of vice-general manager, general LONGI Silicon Materials Corp. He now holds the manager, chairman of the Board and secretary of position of vice-general manager of LERRI Solar. the Party committee of Shaanxi Jinshan Electric Currently, Chen is mainly responsible for technical Appliance Co., Ltd. For thirteen consecutive research & development, quality control, global years, the company remained among the top 100 customer services, planning & anagement, production manufacturers of electronic components in China management of relevant production bases, and so and was rated by Shaanxi Provincial People’s on. He has accumulated extensive experience in Government as a “quality and performance- aspects like PV research & development and project guaranteed” enterprise. In 2010, Mr Wenxue Li management. joined LONGI Silicon Materials (Ningxia), where Vision: To provide customers with excess value he successively held the positions of executive products and services, To provide employees a deputy general manager and vice president of platform with the most growing value,To create the the operation center. Since February, 2015, he best investment value for the shareholders. has been the president of LERRI Solar, making Mission: To become a leader in mono-crystalline great contributions in upgrading corporate products, To contribute more efficiently to the global management, improving production efficiency and photovoltaic power plant. To become a loyal partner of stimulating staff’s initiative. Li has won the title of the photovoltaic industry. To create greater value for “Model Worker of Xianyang City” and was elected customer & investment. To promote the development a representative of the Third People & Congress of photovoltaic industry, To build a greener earth for of Xixia District, Yinchuan. the offspring.

www.EQMagPro.com EQ February 2018 37 EQ: Please share your Road Maps – opportunity for LONGi to promote its mono bifacial Pricing, Technology etc… PERC modules. The biggest challenge would be the uncertainty of the market due to the GST tariff JC: LONGi Solar is committed to R&D of the new proposed to Chinese manufacturers. technology to reduce the production cost of wafers, EQ: Impact of GST on Solar? cells and modules. Bifacial PERC is the latest technology of LONGi Solar. Bifacial PERC modules JC: So far, GST has already seriously influenced enable bifacial application by printing an Al finger India’s solar market. We will see what can happen in grid instead of the full-area Al layer on the rear side. the near future of 2018. The process can be simply applied and significantly increase energy yield without additional cost. It has EQ: How much modules have you the remarkable advantages of high efficiency, high supplied to India till now, what is the reliability and high energy yield. The bifacialty of Hi- target/expectation in 2018-2019 MO2 modules on mass production line can achieve more than 75%, which is expected to be over 80% in JC: In 2017, LONGi shipped 91 WM of mono the near future. modules to India. LONGi’s sales target for Indian Market in 2018 is approximately 1.5GW EQ: Currently 10GW + Solar Projects are in the offing, Whats your plan to Capture this EQ: What are your plans for India, your opportunity. view on the GOI target of 100GW Solar Power by 2022 JC: Chinese PV manufacturers dominate the world solar market. Nevertheless, Chinese manufacturers JC: LONGi targets the India as a major market. face various challenges from the foreign governm- Thus, LONGi is building cell and module factories ent, the US and European anti-dumping policies, and with annual production volume of 1GW each. As now comes the Indian anti- dumping policy. mentioned above, the sales target of LONGi for the India is the next booming market for solar. Indian market in 2018 is 1.5GW. Chinese PV manufacturers, including LONGi, are keen to capture this precious opportunity to enter EQ: What are your plans for manufactu- the Indian market, and also contribute to the new ring set up in India, the opportunities and energy sector of India. Despite of the proposed anti- chal -lenges in manufacturing in India dumping policy in India, LONGi has already made a JC: The cell and module plants in India are still progress in developing the India market, i.e., launch under construction and are expected to be available of branch office and cell and module plants in India. by late 2018 or early 2019. So far, with the help of Furthermore, LONGi has been making massive local authorities in India, everything goes well. marketing effort in India’s solar market in order to showcase the advantages of mono-crystalline EQ: How much is your R&D budget as modules. % of your sales / profits EQ: What according to you is the current JC: According to LONGi 2016 Annual Report as opportunities, biggest challenges, in of 11 March 2017, Research and Development Indian Solar Market. investment is accounted for 5% of revenue of LONGi. JC: India plans to install 100GW of solar energy by EQ: What are the top 5 markets for your 2022 in accordance with the JNNSM. Therefore, the company in the past, present and future efficiency of solar modules is vital to the increase of power generation. Therefore, this would be a great JC: India, America, Japan, Australia, and, of course, China.

38 EQ February 2018 www.EQMagPro.com www.EQMagPro.com EQ February 2018 39 INTERViEWINTERVIEW

Exclusive Interview with Gaurav Mathur

EQ: Proposed Safeguard Duty on Module/ Price road map: Cells Import…What are your views on this It is very hard to comment on the price road map as it is strongly depends on raw material cost, driven GM: The country is targeting 100-gw (gigawatt) solar by public policy support in the form of feed-in- tariffs, capacity by 2022 against the current installed capacity investment tax credits and renewable energy portfolio of 15 gw and has planned to auction 20 gw capacities by standards. As solar system prices have dropped rapidly in March, and 30 gw each in next two fiscals. We feel the GoI recent years, governments in many countries have scaled would take appropriate decision to protect the domestic back these subsidies. The price point is always uncertain. industry as well make sure to fulfill the policy targets. Technology Road map: Several years of dramatic cost reductions of crystalline- EQ: Please share your Road Maps – Pricing, silicon (x-Si) solar technologies and consolidation efforts Technology etc… throughout the industry, the next wave of solar deployment will utilize innovations focusing on higher-efficiency cells GM: While the solar module comprises the most and modules. The performance improvements will continue costly component of a total solar system, technological to drive down the cost of solar modules, but perhaps more advancements have contributed a significant drop in importantly, these improved cell architectures will introduce prices with further declines anticipated in the coming greater opportunity for differentiation in the marketplace. years. From 2015 to 2016, the price of solar panels Trina Solar will greatly benefit from their research and dropped nearly 40 percent on average, according to development efforts by offering more diverse products recent research from International Technology Roadmap that are able to better meet the wide range of customer for Photovoltaics. Despite these price improvements, the requirements – especially for distributed generation panels still constitute roughly 45 percent of the total cost applications. While our technology differentiation will of a PV system. However, experts expect this to fall to 29 drive higher margins throughout the industry, some of our percent by 2027. The reasoning behind these estimates technologies are better suited for large-scale success due stem from the introduction of innovative new technology, to the ssociated costs, technical value, and commercial processes and solutions that boost efficiency, increase readiness. power output and improve performance gains. Combined, these factors are contributed to help lower EQ: World Market Scenerio including China the overall prices of solar PV systems. Half-cut solar and its impact on pricing and availability of cells, PERC cells are part of a revolutionary new breed modules in 2018-2019. Expected Pricing & of PV echnologies working in concert bringing down the module price tag. GM: we have wait and see the implications and price trend.

40 EQ February 2018 www.EQMagPro.com INTERVIEWINTERViEW

Exclusive Interview with

Director Sales Gaurav Mathur Trina Solar

EQ: Currently 10GW + Solar Projects are in EQ: What according to you is the current the offing, Whats your plan to Capture this opportunities, biggest challenges, in Indian opportunity Solar Market. GM: Thanks to Trina’s in-house R&D team. Trina has GM: India blessed with a strong policy frame work right product offerings for India and for 6 years, Trina and be going strong day by day…however the project become most trusted and preferred brand, we have execution timelines are going beyond the deadline local establishment with localized service support. Our which is challenge for the suppliers to support the focus is to improve on customer oriented services. developers. EQ: Problem of the wrong classification of EQ: Impact of GST on Solar? Solar Modules by customsofficials, what GM: There is a definitely an impact and cost of the has been your experience and remedy modules/components have increased, However, we measures taken take this as a positive step as it will help all foreign companies in ease of doing business as same tax GM: What ever may be decision, industry needs a structure for entire India. quick conclusion on this as there was momentary pause in the imports. EQ: Aggressive Bidding despite of many EQ: Module Prices Going up, and reports challenges enlisted above, what is your of some module companies who have view/opinion re-negotiated the prices…kindly enlighten GM: All developers are experienced and based on what really is happening and what some data they forecast bidding price. Sometimes the markets dynamics does not support them like recently measures have you been taking. we have seen the increase in raw material prices. GM: the solar module supplier suffered due to the abnormal dynamics in the key raw material cost and EQ: How much modules have you supplied delays in the project execution. The suppliers are in the to India till now, what is the target/expecta- process of mitigating the issues for better support the tion in 2018-2019 buyer. This optimization process has to happen with all stakeholders of the industry. GM: Trina solar has supplied more than 3.2GW as on date to India. We are watching the market this year for the trade remedial measure before we make our plan.

www.EQMagPro.com EQ February 2018 41 INTERViEWINTERVIEW

EQ: Kindly enlighten our readers on the perfor EQ: How much is your R&D budget as % of mance of your modules in India in various your sales / profits geographic locations, customer feedback,. GM: We are spending a lot of money in R&D and ours GM: Our 3.2 GW installations were scatter in every nook is the only State Key lab in China which is accredited by and corner of India… Trina solar modules works well for Science and Technology department of China. We have the local weather condition in India, we have repeated experienced person and right kind of product to cater orders from our clients, and this indicates the happiness of the global solar market. Our lab is the first lab to get the our clients. Not only from the developers, have the lending CTDP certification from UL and TUV institutes in India also preferred to fund most bankable product like Trina EQ: What are the top 5 markets for your company in the past, present and future EQ: Please describe in brief about your comp- GM: As a global player, we do not have any restric-tions any, directors, promoters, investors, its vision & or reservation on any market. As on date our global mission installations are more than 35GW. GM: Trina Solar was founded in 1997 by Gao Jifan. As a solar pioneer, Trina Solar helped change this solar industry, EQ: Technology road map in terms of 1500V rapidly growing from one of the first PV enterprises in China to Double Glass, BiFacial Cells, PERC/PERT become a world leader in solar technology and manufacture. Technologies, upcoming game changes As the world leading provider of smart solar solutions, Trina technologies Solar delivers PV products, applications and services to GM: Again thanks to our R&D team, they are always promote global sustainable development. Through constant ready with new products that can serve to the industry innovation, we continue to push the PV industry forward by with long run we are ready with 1500V, PERC technology, creating greater grid parity of PV power and popularizing Bifacial, Dual glass and smart modules for various renewable energy. Our mission is to boost global renewable segments of the market energy development around the world for the benefit of all of humanity. EQ: Explain various guarantees, warrantees, Through 2016, Trina Solar has delivered more than 30 GW of solar modules worldwide, accounting for more than insurance, certifications, test results, perform 10 percent of global market share. This makes us the largest -ance report of your modules solar module supplier in the world and earned us the 19th GM: Trina solar product comes with industry standard spot on the “2016 Global Top 500 New Energy Enterprises.” In 10 years product warranty and 25 years performance addition, our downstream business includes solar PV project warranty backed by optional 3rd party insurance development, financing, design, construction, operations & amp; management and one-stop system integration solutions EQ: Kindly highlight your product, for customers. At the end of 2016, these solar projects technology & company USP’s, distinctive connected approximately 1.5 GW to the global power grid. Currently, Trina Solar is pioneering development in Smart PV advantages etc… Energy and Energy Internet Solutions. GM: We predominantly sell poly silicon modules in 60 cell and 72 cell configuration. Our Tallmax series one of EQ: What are your plans for India, your view on the most preferred model India. Our 1500V (Tallmax), the GOI target of 100GW Solar Power by 2022 cut cell /half cell (Split max), bifacial (Duom ax twin) modules are present offerings for India. Our USP is the GM: India is one of our major market of interest and we are performance of the product and localized sales, service happy to be part of, to support 100GW solar target by GoI support EQ: Solar Trade Wars : What are the benefits to EQ: As a manufacturer, kindly share your Indian manufacturers /foreign manufacturers plans to foray as developer or equity inve GM: India’s solar PV target is so big that every manufacturer -stor in solar pv power projects. can have their piece of cake…the size depends on the vario GM: At the moment we are a pure supplier for solar us factors like the capacity, product fitness and the support PV panels…

42 EQ February 2018 www.EQMagPro.com www.EQMagPro.com EQ February 2018 43 ELECTRIC VEHICLES

Tata Power makes Mumbai Electric Vehicle Ready; sets up strategic additional EV Charging stations

Sets Up Strategic Ev Charging Stations In Retail Malls At Palladium And Phoe- nix Marketcity Ev Charging Stations Coming Up At Bkc & Borivali

44 EQ February 2018 www.EQMagPro.com ELECTRIC VEHICLES

Commenting on the same, Mr. Anil Sardana, CEO & MD, Tata Power, said, “We are proud and happy to present Mumbai with additional electric vehicle charg- ing stations that cover the expanse of the city. We are also happy that one of these EV charging stations is India’s first Electrical Vehicle Charging station at popular retail mall. With these installations, Tata Power continues to pursue sustain- able practices by using technology thereby providing customers access to energy-efficient options with ease. As the nation moves towards clean and affordable power for all, it is our endeavor to provide cus- tomers with the best solutions for a greener tomorrow”.

ata Power, India’s largest With the Government of battery charging status and integrated power company, has India encouraging shift to units consumed while charg- been pioneer in technology electric vehicles by 2030, ing a car. The Company plans adoption and innovation while Tata Power’s aim is to build a to set up charging stations at also setting industry bench- seamless network of electric various locations in Mumbai T marks in operational & sustain- charging stations to make and is in discussions with vari- ability aspects. Building on its it easier for people to adopt ous stakeholders to this end. momentum of having installed EVs and be future ready. The Mumbai’s first Electric Vehicle setting up of smart charging charging station in Vikhroli. The infrastructure at parking area Company has been cover- of Malls would enable users ing strategically located areas to make best use of their time where EV users wish to have while their car charges. As outlets .The company has now India gears up for revolution in set up additional electric vehicle mobility ,Tata Power is all set charging stations at strate- to offer customers e-charging gic locations thereby making with convenience. Mumbai truly ready to usher in The newly installed char- the Electric Vehicle wave. The gers at Palladium and Phoenix latest Electric Vehicle charg- Marketcity will enable electric ing stations by Tata Power car users to charge their cars have been set up at Palladium (Battery Electric Vehicles such Mall Lower Parel, and Phoenix as the Mahindra e2o, Nissan Marketcity, Kurla; and two more Leaf, etc) at any time safely coming up at BKC and western and conveniently. The char- express highway at Borivali. gers can also monitor the car

www.EQMagPro.com EQ February 2018 45 testing

FIRST ONSITE EL Testing Of PV Modules In India by Mahindra Susten

Satish Pandey, Rajesh, Jamuvan, EL Testing on installed module Gaurav & Shyam Kumar Mahindra Susten Electroluminescence Test set up: he increasing demand for solar electrical energy has lectroluminescence (EL) is an optical phenomenon which multiplied the need for photovoltaic (PV) arrays. As the has been used for a long time in lightening applications Tmajor component of the PV array, the demand for solar Eand recently integrated as an investigation procedure for cells has also increased. This demand has translated into an photovoltaic devices. It consists of applying a direct current to increased production of solar cells in recent years. Depend- the module and measuring the Photoemission by means of an ing on the materials used in manufacturing, solar cells can be infrared-sensitive camera trolley. This power supply is accumulat- divided into two major types. They are (i) monocrystalline and ed with battery and it is mounted in a movable trolley, so we can (ii) multi-crystalline silicon. Due to low manufacturing and perform the testing of the modules onsite without any external processing cost of the multi-crystalline silicon, this material is power source. The integrated synchronization module allows the generally more preferred in the production of the solar wafer control of the EL camera as well as the communication with the or PV module. measurement software. The user-system interaction is assured by The current global market share shows the most used tech- the Mobile software. The Onsite EL testing of PV module can be nology is silicon based solar panel with approximately an 85% performed before installation of modules on structure and after of the total market. Due to this fact, the interest in understand- module installation. Fig-1 & Fig-2 are showing the EL testing of ing the degradation process of Si-based PV modules has grown PV modules. among PV owners, since the degradation of output power Operating voltage and current: affects the long-term profitability of the PV system. Many different failures can occur in PV modules during op- he purpose of applying an electric voltage during the eration. Among the different possible failures, micro-cracks are electroluminescence imaging is to counter the depletion able to cause a significant decrease in output power. Cell crack- zone electric field and hence allow the charge carriers to ing is an important issue in the photovoltaic manufacturing diffuse into the junction and recombine. Due to the inter- supply chain that directly affects output power and long term nalT resistance of the power supply, higher voltages are needed to reliability of PV Modules. Cell cracks can be introduced during achieve sufficient recombination rates and good quality results. wafering, cell/module manufacturing, and transport & installa- The weak recombination is unable to provide sufficient lumines- tion stages. The modules which are defected during wafering or cence and reveal all module details. Optimal results are achieved cell/module manufacturing can be identified by Electrolumines- with a voltage ≈30% higher than Voc of the module. Furthermore, cence (EL) test at manufacturing plant but the modules which very high currents tend to accelerate the module heating and are defected during transport and installation stage needs to thus to distort the measured luminescence, so the applied current be tested and identified at site location to avoid the power loss should be lower than Short Circuit Current of the Module. and long term reliability of the PV Plant. To identify this defect, in India Mahindra Susten has owned the first onsite battery ac- Application stages cumulated Electroluminescence Test facility with installed and 1. Pre installation, 2. Post installation uninstalled both modules. Advantages of EL Test: Following are the advantages of the onsite EL testing- • We can identify defects in modules which cannot be seen by bare eyes such as micro cracks, finger defect, dark cell, solder- ing defect, PID defect etc. • Improves quality and reliability of the PV Plant by quality check. • Flexible system can be usedfor EL testing of PV Module at Pre installation & Post installation • By comparing the EL image of Module at manufacturing plant and site we can check the Quality of transportation and han- dling of modules during the installation Conclusion Electroluminescence testing is a novel technique to detect the different defect in Polycrystalline Modules. In India Mahindra Susten has the first onsite Electroluminescence battery accu- mulated test setup for testing of the PV modules which leads to EL Testing on Un-installed module better quality and improved performance of the PV plants.

46 EQ February 2018 www.EQMagPro.com MEA

The wholly owned operations & maintenance contractor of ACWA Power said, “Tech- ACWA Power and nology in the renewable ener- gy industry is rapidly evolving not only on how electricity is generated but also in how Huawei launch plants are operated. This pilot programme is an important step in our continuous pursuit programme to of delivering power reliably and at the lowest possible cost, a mission that neces- sitates the implementation of enhance efficiency the latest solutions. The pilot programme is the first step in rolling out this technol- ogy in current and future of solar plants sites as we strive to digitize our operations.” Julio FusionSolar Smart PV Management System leverages state Torre Gutierrez, President & CEO of the arttechnology and digitalized intelligence to improve of NOMAC, PV plant efficiency

CWA Power, the developer of a rapidly growing portfolio of solar power plants spanning Morocco For the solar industry to to Vietnam announced at the World Future Energy continue to reduce cost and Summit at Abu Dhabi, the roll out of a centralized compete with fossil fuel alter- control and monitoring pilot project that will imple- natives, adopting the cutting- ment Huawei’s Fusion Solar solution for enhanced edgetechnologies to improve A plant management, monitoring and control. performance and operating FusionSolar, is a Centralized Control and efficiency is vital. We are Monitoring system that helps PV power plants run confident that the FusionSolar more effectively through better technology. The Smart PV Management Sys- system improves communications capabilities to tem will significantly contrib- enable a solar power network, remote control, ute to this mission. What’s and automatic troubleshooting at a solar power more, we’re looking forward plant. Fusion SolarSmart PV Management System to team up with ACWA to aims to increase availability, reduce cost of O&M build more innovative PV (operations and maintenance) and reduce the plants in MENA and all over power loss of whole PV plant. The system al- the world.” Mr. Yin Fei- lows solar plant operators to control and monitor jun, GM of FusionSo- performance without being on site, especially the lar Smart PV Global senior experts can manage several PV plants at Sales, Huawei the same time. This greatly lowers the labor and cost requirements for O&M.

Julio Torre Gutierrez, President & CEO of NOMAC, the wholly owned operations & maintenance contractor of ACWA Power said, “Technology in the renewable energy industry is rapidly evolving not only on how electricity is generated but also in how plants are operated. This pilot programme is an important step in our continuous pursuit of delivering power reliably and at the lowest possible cost, a mission that necessitates the implementation of the latest solutions. The pilot programme is the first step in rolling out this technology in current and future sites as we strive to digitize our operations.”

www.EQMagPro.com EQ February 2018 47 African development

AFRICAN DEVELOPMENT BANK, Nordic Development Fund, Global Environment Facility and Calvert Impact Capital partner in US $55-million investment into Off-Grid Energy Access Fund

the African Development Bank’s Board approved a US $30-million investment in the Facility for Energy Inclusion Off-Grid Energy Access Fund (“FEI OGEF”). This follows the approval of additional investments of US $10 million from Calvert Impact Capital (CIC), US $8.5 million from the Global Environment Facility (GEF) and €6 million from the Nordic Development Fund (NDF). In addition, the NDF will provide a €0.5-million grant for technical assistance to support deal structuring and capacity development.

48 EQ February 2018 www.EQMagPro.com African development

Over 600 million people are estimated to lack access to modern energy in Sub-Saharan Africa.

Head Global Partners operating out of offices in Nairobi, Lagos and London, with an initial focus on East Africa as well as Côte d’Ivoire, Ghana and FEI OGEF is Nigeria, and looking to build a strong the first Bank pipeline of transactions throughout the instrument region. The pioneering Fund will unlock that enables and catalyse financial sector and local debt financing, currency participation in this growing including in local currency, to off- green finance opportunity. EI OGEF is a US grid energy access companies who $100-million blended need growth capital to expand their finance debt fund operations across Africa. The strong designed to provide collaboration of the Bank, SEFA loans in local and hard and NDF in preparing and creating Fcurrencies to off-grid this fund, and the co-investment The GEF is energy companies with by the GEF and CIC, demonstrate pleased to be a the dual objectives the power of partnerships for clean partner in this of scaling up access energy access in Africa,” said Astrid innovative blended to clean electricity for Manroth, Director, Transformative finance facility off-grid households Energy Partnerships at the African which is part of and crowding in local Development Bank. GEF’s strategic financial institutions priority to “crowd-in” private as co-lenders. The sector investment to help countries Fund directly supports The combination of these four first meet their environmental and the Bank’s New investments brings this innovative sustainability goals,” said Gustavo Deal on Energy for fund closer to its first close target to Fonseca, Director of Programs at Africa and is part of be achieved in the first quarter of 2018 the Global Environment Facility. its “High 5” priority to and provides a strong signal to the light up and power community of interested investors. In the continent, with an particular, the approvals will provide aspirational target of comfort for dedicated private-sector connecting 75 million investors to join FEI OGEF. OGEF squarely households through The Fund is a first mover matching fits within our off-grid energy access local currency debt instruments with investment solutions by 2025. recent innovations in off-grid energy mandate of Through the use of business models to scale up energy leveraging public clean energy instead access for underserved and rural capital at scale of fossil fuels to power households. It provides a blended to create systemic change in communities, the Fund capital structure whereby investments sectors and geographies that have is expected to result in equity provides comfort and risk been overlooked by mainstream in the reduction of up cushioning to attract early participation capital markets. We are excited to to 8 million tonnes of and additional investment by work with the AfDB and the other CO2 emissions over development finance institutions and investors to scale this facility and its lifetime. other commercial investors. increase access to clean electricity During a recent visit to the Bank for off-grid households in Africa,” headquarters in Abidjan, NDF’s said Jenn Pryce, President and CEO Managing Director Pasi Hellman said, of Calvert Impact Capital. “This initiative highlights the close and constructive working relationship between NDF and the AfDB. We The Facility for Energy Inclusion have been in lock step throughout the (FEI) is the Bank’s flagship initiative preparation and development cycle for providing long-term finance to of the Fund. Now we have a fully small-scale renewable energy access packaged investment vehicle to bring projects, of which FEI OGEF is one of to market scaling up proven clean the financing windows. FEI has been off-grid energy solutions to the energy developed with grant support from the access challenge on the continent.” Bank-hosted Sustainable Energy Fund The Fund will be managed by Lion’s for Africa (SEFA).

www.EQMagPro.com EQ February 2018 49 Energy storage

Siemens Financial Services and Fluence announce comprehensive financing program for energy storage customers worldwide

Diverse suite of iemens Financial Services (SFS) and financial solutions Fluence, a Siemens and AES company, provide necessary announce a comprehensive financing capital to expand program to support customers in growing energy storage their investments in energy storage sector solutions. The new financing program will offer customers leasing and project Granting customers finance options for qualified projects access to a combination S using Fluence’s industry-leading trio of proven, bankable of energy storage platforms. Fluence’s energy storage combination of unmatched energy solutions with tailored storage experience, proven technical financing solutions, and the availability of tailored Leasing and project financial solutions will further drive finance options for down the total system costs of energy qualified projects using storage and accelerate the growth of this dynamic segment of the power Fluence’s industry- market, estimated by Bloomberg New leading trio of energy Energy Finance (BNEF) to be a $100 storage platforms billion market opportunity by 2030.

“SFS stands ready to provide significant capital to address the needs of the growing energy storage market through our program with Fluence,” Roland Chalons-Browne, CEO, Siemens Financial Services commented. “Providing customers access to market-leading energy storage technology and the capital needed to realize energy storage projects – regardless of size or region – is unique and will help the market grow exponentially.”

50 EQ February 2018 www.EQMagPro.com Energy storage

“With this SFS financing program, we can offer our customers a wide array of capital solutions ranging from small- ticket leases to large-scale project financing and everything in between,” commented Stephen Coughlin, CEO of Fluence. “Financing is often viewed as an obstacle; however by working with SFS, we are simplifying energy storage capital investments for many of our customers, allowing them to move their storage projects forward.”

“C&I customers typically have smaller-scale projects and are looking for cash-neutral financing options, in which case equipment leasing or performance contracting solutions might work best,” commented Jan Teichmann, vice president of global markets for Fluence. “For utilities and grid operators, their larger, more complex energy storage projects call for project finance in the form of a debt or an equity investment. Working with SFS, we can offer the full spectrum of capital solutions to meet needs as diverse as our customers.”

tarting operations this month, Fluence was created SFS HAS GAINED IMPORTANT EXPERIENCE SERVING THE GROWING ENERGY to deliver customized STORAGE MARKET IN SEVERAL REGIONS SUCH AS: energy storage technology United States: Through a project efficient, resource-saving technologies, solutions and services finance solution, SFS provided a portion Siemens is a leading supplier of systems required by customers and financial S of the senior debt financing for a term loan for power generation and transmission institutions. Fluence combines the most to support the construction of AES’s 100 as well as medical diagnosis. With comprehensive set of industrial-scale megawatt (MW)/400MWh battery system approximately 372,000 employees in 190 energy storage offerings in the world with in Southern California, which is tied to a countries, Siemens reported worldwide the track record, ascale, global reach and new, 1,284 MW combined-cycle natural revenue of $92.0 billion in fiscal 2017. backing of two large, established power- gas generator. The system will replace Siemens in the USA reported revenue sector companies. With nearly 500 MW 1960’s-era power plants in Los Alamitos, of $23.3 billion, including $5.0 billion of energy storage projects deployed or Huntington Beach, and Redondo Beach. in exports, and employs approximately contracted in 15 countries, Fluence has Germany: SFS established a program 50,000 people throughout all 50 states nearly twice the track record of any other to provide packaged managed service and Puerto Rico. company. solutions for municipalities eligible to Fluence, a Siemens and AES The financial services arm of participate in Germany’s Frequence company, is a global energy storage engineering giant Siemens, SFS offers reserve control market. The program technology solutions and services suitable financing instruments across the includes projects in the range of five to company that combines the agility of a capital spectrum, ranging from leasing eight MW peak power that use Siemens’ technology company with the expertise, and performance contracting to large- SIESTORAGE systems. vision, and financial backing of two scale project finance and corporate United Kingdom: SFS in the United industry powerhouses. Established finance, in addition to financial structuring Kingdom recently announced an in 2018, as the successor to industry and advisory support. With a global outcome-based finance model for pioneers AES Energy Storage and footprint, SFS is adept at leveraging its purchases of Fluence’s Siestorage Siemens energy storage, Fluence’s goal expertise across a variety of markets energy storage systems, which are is to create a more sustainable future to serve its customers with tailored available to users with on-site electricity by transforming the way we power our solutions. The financing program with demand profiles anywhere between world. The company offers proven energy Fluence is unique in that it allows support 1MW and 100MW. Siemens Corporation storage technology solutions designed to to a wide array of clients around the world Siemens Corporation is a U.S. subsidiary address the diverse needs and challenges – from commercial & industrial (C&I) of Siemens AG, a global powerhouse of customers in a rapidly transforming energy users to utilities and grid operators focusing on the areas of electrification, energy landscape, providing design, – with customized financial solutions automation and digitalization. One of delivery and integration in over 160 to help address their specific project the world’s largest producers of energy- countries. challenges.

www.EQMagPro.com EQ February 2018 51 POLICY & REGULATION

Forecasting,Scheduling And Deviation Settlement For SOLAR AND WIND Generation – Regulations, 2017

hese Regulations Are Intended To Facilitate Grid Integration Of Wind And Solar Energy Generated In Tamil Nadu While Maintaining Grid Stability And Security As Envisaged Under The State Grid Code And The Act, Through Forecasting, Scheduling And A Mechanism For The Settlement Of Deviations By Such Generators. T In order to maintain system security, stability and reliability, the SLDCshall take into consideration the forecasts of Wind and So- lar generation for Week-Ahead, Day-Ahead and intra-Day opera- tions and scheduling, and longer term forecasts for its planning. The SLDC shall make use of the flexibility provided by conven- tionalGenerating Units and the capacity of inter-Grid tie-lines to accommodate Wind and Solar energy generation to the largest extent possible subject to Grid security. These Regulations shall apply to all Wind and Solar Energy Generators (excluding Rooftop PV Solar power projects) in Tamil Nadu connected to the Intra-State Transmission System or Distribution System, including those connected through Pooling Sub-Stations, and using the power generated for self-consump- tion or sale within or outside the State: The Commission shall review these Regulations after two years, or earlier if it considers necessary.

52 EQ February 2018 www.EQMagPro.com POLICY & REGULATION

TECHNICAL ARRANGEMENTS: FORECASTING AND SCHEDULING CODE

This Forecasting and Scheduling The QCA shall furnish the opts to adopt the forecast of the Code specifies the methodology technical specifications of the SLDC, the consequences of any for Day-Ahead scheduling of Wind Generators whom it represents to error in such forecast which re- and Solar Energy Generators con- the SLDC in the prescribed format, sults in deviations from scheduling nected to the intra-State Transmis- at the time of its registration or shall be borne by the concerned sion Network (Transmission and within such period thereafter as Generators through their QCA. Distribution system), its revisions may be stipulated by the SLDC in The SLDC shall recover such on a one and a half hourly basis, its Detailed Procedure, and when charges as may be approved by and the treatment of their devia- there is a change in hese specifi- the Commission for providing its tions from such Schedules. cations. forecasting services to the QCA The Wind and Solar Energy The QCA shall provide real-time and the amount so recovered shall Generators at each Pooling Sub- data relating to the power system be treated as ‘other income’ in the Station shall appoint a QCA: output and parameters and Aggregate Revenue Requirement Provided that an individual Gen- weather-related data, as may be of the SLDC for the determination erator not connected to a Pooling required, real-time to the SLDC. of its Fees and Charges. Sub-Station may opt to be its own Meters shall be installed for The QCA shall provide to the or appoint a separate entity as its energy accounting in accordance SLDC a Day-Ahead and a Week- QCA. with the relevant provisions of the Ahead Schedule for each Pooling The QCA shall be treated as a Central Electricity Authority (CEA) Sub-Station or each stand-alone State Entity. 5.4.Every QCA shall Regulations governing metering, Generating Station, as the case be registered with the SLDC in along with telemetry /communica- may be, to enable it to assess accordance with the Detailed Pro- tion and Data Acquisition Systems the Availability of energy and the cedure prescribed in pursuance of for the transfer of information to margin available in the State Grid. Regulation the SLDC by the QCA. The Day-Ahead Schedule shall Notwithstanding the appointment The QCA shall furnish to the comprise the Wind or Solar energy of a QCA, the onus of complying SLDC the aggregated forecasts generation to be scheduled in with the relevant provisions of relating to its Wind and Solar En- each 15-minute time block starting these Regulations shall remain ergy Generators connected to the from 00:00 hours of the following that of the concerned Generators, intra-State Transmission network, day, and for all 96 time blocks of and the commercial and other with details of their Availability. that day; and the Week-Ahead arrangements between them and Schedule shall contain the same The SLDC shall also undertake their QCA shall be governed by information for the next seven forecasting of the Wind and Solar their inter-se agreements or terms days. energy generation expected to be of engagement. injected into the intra-State Trans- a) The QCA may revise the Schedule The QCA shall be appointed by mission network at each location, of Generators connected to the the Generators for the purposes by engaging forecasting agencies Intra-State Transmission Network specified in these Regulations, if required, so as to enable it (excluding collective transactions) including but not limited to the fol- to better plan for the balancing by giving advance notice to the lowing: resources required for secure Grid SLDC. operation. a) Meter reading and data collec- b) Such revisions shall be effective tion and its communication, and The QCA shall aggregate the from the 4th time block following co-ordination with the Distribution Schedules of all Generators con- the time block in which notice was Licensees, the SLDC and other- nected to a Pooling Sub-Station given. agencies; and communicate them to the c) There may be one revision for SLDC. 5.14.No Wind or Solar b) De-pooling of amounts payable on each time slot of one and half energy generation shall be consid- behalf of the constituent Generator hours starting from 00.00 hours ered for despatch by the SLDC if of the Pooling Sub-Station from of a particular day, subject to a it is not scheduled by the QCA on the State Deviation Pool account maximum of 16 revisions during behalf of the Generators in accor- and settling them with each Gen- the day. dance with the provisions of these erator; Regulations. Wind energy generators shall c) Settlement of the Deviation Charg- provide time block wise banked The QCA may adopt the forecast es specified in these Regulations energy withdrawal schedule and of the SLDC for preparing its with the SLDC on behalf of the allocations to captive users on chedule or provide SLDC with Generators. weekly basis. The schedule for the a Schedule based on its own first week at the start of the billing The QCA shall be the single point forecast, which shall be the refer- cycle shall be provided seven of contact between the SLDC and ence Schedule for the purposes of days before the commencement of its Generators for the purposes of deviation determination and settle- the billing cycle. these Regulations. ment: Provided that, if the QCA

www.EQMagPro.com EQ February 2018 53 POLICY & REGULATION

The plan for data telemetry, (a) Any intentional mis-declaration The Generators shall satisfy ormats of forecast submis- of Available Capacity to the themselves that the QCA is sion and other modalities and SLDC for its own undue technically and financially requirements shall be stipulated commercial gain or that of a competent to undertake on their in the Detailed Procedure to be Generator shall be considered behalf the functions and dis- submitted by the SLDC within as gaming and shall constitute charge the obligations specified two months, which the Commis- a breach of these Regulations. in these Regulations. sion shall endeavour to approve (b) Upon identification of gaming within a month thereafter. by SLDC, the QCA shall be The terms of engagement of The Detailed Procedure shall liable to pay a penalty of three the QCA shall include provi- address the following aspects times the eviation Charges that sions on the following aspects: would have been applicable a) The respective roles and a) The procedure and require- had the Available Capacity responsibilities of the QCA and ments, including the payment been correctly declared. Generators; of fees and penalties, for the (c) The amount of penalty shall b) The metering, billing and en- registration and de-registration ergy accounting arrangements; of QCAs by the SLDC. be payable by the QCA to the c) The modalities for recovery of b) The information and data, and State Deviation Charges from the the formats, required by the Deviation Settlement Mecha- SLDC from the QCAs and to be nism (DSM) Pool, through the Generators and their settle- provided by the SLDC to them. SLDC. ment, including the principles c) The mode and protocol of (d) The SLDC may, after giving for de-pooling; communication for exchange of due notice and as stipulated in d) The payment security mecha- information and data between the nism and related provisions; the QCAs and the SLDC. Detailed Procedure, cancel e) The events of default and their d) The guidelines for energy and the registration of the QCA mitigation. deviation accounting of Wind upon repeated events of mis- COMMERCIAL ARRANGEMENTS and Solar energy transactions declaration. under the State energy account- Deviation Settlement for Intra- ing framework, with illustrative Principles of appointment of QCA State Transactions examples, in accordance with The sale of power within the principles specified in these The Generators at a Pooling Tamil Nadu by Solar and Wind Regulations. Sub-Station may appoint one e) The mechanism for monitoring Energy Generators connected amongst themselves or any compliance of the Forecasting to the Intra-State Transmission other entity as a QCA. and Scheduling Code by the Network shall be settled by the QCAs. The QCA shall be appointed Procurers on the basis of their f) The default conditions in the with the approval of at least actual generation, whereas State Pool Settlement by QCAs 51% of the Generators at a the Deviation Settlement shall and their treatment. Pooling Sub-Station, in terms be undertaken as specified in The commercial impact of devi of their combined installed these Regulations. A Generator tions from Schedules based on capacity. Provided that QCA who deviates from its given the forecasts shall be borne by may undertake forecasting and Schedule shall be liable to pay the Generators through their scheduling at feeder level; a Deviation Charge under the QCAs. provisions of these Regula- tions. Treatment to the Gaming

In respect of sale or self-consumption of power within Tamil Nadu, if the actual injected generation of a stand-alone Generator or the aggregate of such generation at a Pooling Sub-Station, as the case may be, differs from the scheduled generation, the Deviation Charge for the excess or shortfall shall be payable by the QCA to the State Deviation Pool Ac- count, through the SLDC, as specified in Table 1 below:

S.No. Absolute Error in %age terms in Deviation Charge payable to State 15-minute time block DSM Pool 1 < = 10% None 2 >10% but <=20% At Rs. 0.50 per unit 3 >20% but <=30% At Rs. 0.50 per unit for the shortfall or excess beyond 10% and upto 20% + Rs. 1.00 per unit for the balance energy beyond 20% and upto 30% 4 >30% At Rs. 0.50 per unit for the shortfall or excess beyond 10% and upto 20% + Rs. 1.00 per unit for the shortfall or excess beyond 20% and up to 30% + Rs. 1.50 per unit for the balance energy beyond 30%

54 EQ February 2018 www.EQMagPro.com POLICY & REGULATION

IMPLEMENTATION ARRANGEMENTS The SLDC and the QCA shall maintain records Metering and accounts of the time block-wise Schedules, Every Pooling Station shall have a Special Energy Meter (SEM) the actual generation injected and the devia- capable of recording the energy in time blocks as specified in tions, for the Pooling Sub-Station and the indi- the CEA Regulations governing metering. vidual Generators separately. The QCA shall furnish weekly meter readings to the SLDC by The QCA shall undertake de-pooling of the ener- 00.00 hours on the Thursday of the previous week, in addition to gy deviations and the Deviation Charges against the data provided to the Supervisory Control and Data Acquisi- each Generator at the Pooling Sub-Station as tion (SCADA) Centre, for the purpose of energy accounting specified in Regulation 16. under these Regulations. The QCA shall undertake the settlement of the Deviation harges with the SLDC on behalf of the Energy Accounting concerned Generators. The energy accounting shall be undertaken on the basis of the data recorded by the SEM referred to in Regulation Deviation Settlement for Inter-State Transac- tions Communication between QCA and SLDC The sale or self-consumption of power outside The Detailed Procedure prescribed by the SLDC shall set out Tamil Nadu by Solar and Wind Energy Genera- the protocol for communication and exchange of information tors connected to the Intra-State Transmission between the QCA and the SLDC, including but not limited to the system or Distribution system shall be settled following aspects: by the Procurers on the basis of their scheduled generation. a) Communication of the Day-Ahead, Week-Ahead Schedule and intra- Day schedule and any revisions to the SLDC. Inter-State transactions at a Pooling Sub-Station shall be permitted only if the concerned Genera- b) Communication of the real-time generation at the Pooling Sub- tor is connected through a separate feeder. Station or by the stand-alone Generator The Generator shall submit, through the QCA, a c) Communication of Grid constraints and curtailments by the separate Schedule for its energy generation, in SLDC to the QCA. accordance with these Regulations, to the SLDC The SLDC shall equip itself with the necessary Information and the concerned Regional Load Despatch Technology (IT)-enabled communication platform and software Centre (RLDC). for communication between it and the QCA. The SLDC shall prepare the deviation settle- The QCA shall provide the IT-enabled communication software ment account for such Generator on the basis log-in details to enable the SLDC to access live data of all of measurement of the deviation in the energy Schedules and deviations and facilitate the timely billing and injected and its impact at the State periphery. payment of Deviation Charges. Excess injection over the schedule shall not be accounted for. The IT-enabled communication platform and software should enable the SLDC and QCA to exchange information, including The Generator shall pay the Deviation Charges but not limited to the following: applicable within Tamil Nadu in case of devia- tions in the State DSM Pool, the consequences i. Generator outages and their reasons; of such deviation at the Inter-State level being ii. Deviation Charges payable by the QCA; governed by the CERC Regulations governing the Deviation Settlement Mechanism and related iii. Site characteristics and details of the Wind Turbines, Solar matters. Inverters, etc.; The Deviation Charges for under-injection iv. Schedules and generation handled by the QCA. by Generators connected to the Intra-State Transmission Network and selling or consuming Deviation Accounting power outside Tamil Nadu shall be as specified The methodology for deviation settlement for the State shall be in the Annexure to these Regulations, the ac- as follows: counting for which shall be done by the SLDC. a) The Deviation Charges payable or receivable for the State as Deviation Settlement for Inter- and Intra-State a whole at the State periphery shall first be computed by the Transactions: other provisions SLDC. Deviations in respect of Inter-State and Intra- b) The SLDC shall compute the impact of the deviation of the Solar State transactions shall be accounted for sepa- and Wind Energy Generation and its contribution to the Devia- rately at each Pooling Sub-Station. tion Charge at the State periphery. The SLDC shall provide separate energy and c) The SLDC shall compute the Absolute Error, i.e. the difference Deviation Accounts for Inter-State and Intra- between the scheduled and the actual energy injected, in re- State transactions to the QCA, ho shall settle the spect of each Pooling Sub-Station and each Generator feeding Deviation Charges with the concerned Genera- energy directly to another Sub-Station, and shall accordingly tors. determine the amounts payable on account of the Deviation Charge in accordance with Regulations 7 and 8.

www.EQMagPro.com EQ February 2018 55 POLICY & REGULATION

d) Any shortfall in the aggregate Intimation of Curtailment MISCELLANEOUS amount of Deviation Charge Any curtailment imposed on payable by Solar and Wind the energy injection for reliable Energy Generators at the State POWER TO AMEND and secure Grid operation in periphery and the amount emergent situations shall be receivable from them by the The Commission may, communicated by the SLDC to State Deviation Pool Account the QCA through an IT-enabled at any time, vary, alter, shall be accounted for sepa- communication, and no Devia- rately. modify or amend any tion Charges shall be payable provisions of these Settlement of Deviation Charges for any consequent deviations if the SLDC fails to do so. Regulations. 18 Power to The SLDC shall compute the remove difficulties If any deviations from the Schedule, In case of any curtailment determine the Deviation planned and communicated difficulty arises in giving Charges payable and bill the by the SLDC due to line main- effect to the provisions QCA accordingly. tenance or other reasons in of these Regulations, certain time blocks of a day, Payment Mechanism for De- the QCA shall be responsible the Commission may, by viation Settlement for curtailing the generation general or specific order, The QCA shall pay the amount at site and amending the make such provisions of Deviation Charges to the Schedule accordingly, failing SLDC, and collect it from which the SLDC shall revise not inconsistent with the the concerned Generators the Schedule as required. provisions of the Act, in proportion to their actual Energy Accounting as may appear to be generation: Provided that the onus of ensuring the payment All accounts relating to devia- necessary for removing of the Deviation Charges to the tions shall be prepared by the the difficulty. SLDC by the QCA shall remain QCA on a weekly basis based that of the concerned Genera- on inputs from the SLDC, and tors. be accessible to the SLDC POWER TO RELAX through an IT-enabled system The Deviation Charges shall and software. be paid within ten days from The Commission may by the issue of the accounts The SLDC shall furnish the general or special order, and billing by the SLDC, processed data on a weekly failing which a late payment basis by Thursday mid-night for reasons to be recorded surcharge amounting to 1.25% for the seven-day period end- in writing, and after giving per month shall be levied for ing on the previous Sunday an opportunity of hearing the period of delay. mid-night to the concerned QCA in the prescribed format, to the parties likely to De-Pooling of Deviation for the preparation of weekly be affected by grant of Charges The QCA shall de- Energy Accounts of energy pool the energy deviations and relaxation, may relax from the Pooling Sub-Station the Deviation Charges against or the stand-alone Generator, any of the provisions each Generator in proportion as the case may be. of these Regulations on to its actual generation or in proportion to Available Capac- Any discrepancy communicat- its own motion or on an ity, as may be mutually agreed ed by the QCA within 15 days application made before it between QCA and the Genera- shall be corrected forthwith by by an interested person. tors. the SLDC after verification.

56 EQ February 2018 www.EQMagPro.com RENEWABLE ENERGY After Telecom And IT Sector Revolution, Next Revolution Will Be Of Clean Energy: Sumant Sinha,

Wind energy has seen a fall in prices due to technology evolution”, At the Young Entrepreneurship Summit and Awards 2018, organized by ICFAI and BW Business- world, there was a session on ‘Clean Energy is ready to power the Future’, where the speaker was Sumant Sinha, Founder Chair- man & CEO, ReNew Power.

enewable inha also added, “Solar story is more and confident that this sector will grow energy has been Sremarkable. In the beginning, solar dramatically. And the kind of revolutions in around for the applications were on satellites and the cost the telecom sector and IT sector, a similar last 25 years. of that solar generation was expensive. The revolution will happen in the clean energy It started off cost of solar has also come down greatly in sector”. “The average Indian consumes 1/3rd Roriginally with the concept the last 7-8 years. This evolution is going to the power than what the global consumer of wind energy and slowly continue happening as we are just half-way consumes. The power consumption of the after that it migrated through. Wind and solar are going to become average Indian is set to go up, it will probably to solar. But now solar cheaper in the future”. “Wind and solar are double. If we have to double our total installed and wind have become now cheaper than thermal. That is why we are capacity from 330 to 660, a lot of it will come cost-effective and have in the beginning of the third energy transition. from renewable energy sources. We have become competitive with Renewables will start replacing the existing to add 10 times the capacity we have. By the conventional thermal. legacy systems we have, whether its coal or 2030, we will get to 40% of our total energy When wind and solar oil. Over the next 5-6 years, all new capacity capacity from renewable energy sources. started off, government addition will be renewables. The first obstacle Our commitment to the Paris agreements will mandates and government which will arise is that renewable energy is boost the scope of renewables”, said Sinha. subsidies were fuelling not a stable source of power. Sumant Sinha also added, “If you look it. Renewables started off Sun shines only in the daytime, and wind at the sector itself, there are very small size with this whole imperative also blows in different patterns. Hence, companies. We have the largest capacity in of climate change. It renewable energy is not on demand energy this space but it is a very fragmented sector. started off in the mid for some services. There was a general The sector is going to undergo consolidation 90’s, when people started thought that you could have 8-10% of and massive growth. We are reading a realizing they can generate renewable energy in the grid. But European lot about electric vehicles, and there is a power through wind countries have shown that the capacity of strong attempt to make all cars electric turbines. Wind turbines renewable energy can be in much larger vehicles post-2030. It is really an exciting have become bigger in quantities in the system. You can have a sector to look at when we go forward. More size over the years, almost much higher penetration of renewables in the and more people will start installing solar triple the size. Wind grid than thought before”, said Sinha. on their rooftops, and that will make grid turbines, when you stand Sinha also went on to add, “Batteries are management tougher and will test the ability below, when you hear them now becoming cheaper and you can store of policymakers and distributors. There is a moving, you will realize large amount of energies in batteries. We tremendous amount of research being done that it’s a big entity and are going to see a similar reduction of cost on how to bring the cost of solar and wind this is what has enabled in battery storage. And that will be a boon lower. The funny thing is that even though the cost to come down. as you can now store renewable energy in India’s reforms started in 1990, the power Wind energy has seen a fall batteries. In the next few years, renewables sector seems to have had a go-bye, and in prices due to technology and storage will be cheaper than coal or there are a lot of reforms which are needed in evolution”, said Sinha. gas based power. We feel comfortable this power sector”, concluded Sinha

www.EQMagPro.com EQ February 2018 57 POLICY & REGULATION

GOA STATE SOLAR POLICY - 2017

Solar energy is the most oa is richly endowed with moderate climate secure of all energy sources. and bright sunshine for almost 8-9 months in It is abundantly available. It a year for generating solar power. The State can be easily converted into of Goa entirely depends on thermal energy electrical energy. Production generated in other States. Goa being eco-sen- of electrical power and its sitive,G no Thermal Energy generation is possible in the State. easy availability at regu- Hence in order to attain self-reliance in Power generation lated rates is an established and to promote clean source of Power, Solar Policy is being benchmark of development. adopted. This would result in reduction of carbon emis- No major economic activity sions. can be sustained without ad- The challenge before the State Government is not only equate and reliable sources to meet the ever growing demand for power but also to of power. The challenges of progressively increase the share of Renewable Sources in Climate Change and Global the energy - mix so as to achieve overall energy security and Warming resulting from also to meet the Renewable Purchase Obligation (RPO)as burning of fossil fuels are per the target fixed by appropriate authorities from time to continuously threatening time. It can be done by promoting the systematic tapping of the world community. Solar the solar energy potential to the maximum. Technological Power generation offer an improvements have now made generation of solar energy environmentally safe and economically viable and would lead to reduction of expen- sustainable alternative. diture of the State in purchase of Conventional Power from the Grid. An appropriate policy framework is therefore essential to promote the SolarEnergy generation initiatives. Therefore, the State Government is pleased to introduce the “Goa State Solar Policy -2017”,

58 EQ February 2018 www.EQMagPro.com POLICY & REGULATION

CATEGORY FOR GENERATING SOLAR POWER I : PROSUMER boundary of the premises will be as existing on date of Notification “Prosumer” is a Consumer having of this policy. However, the Small an already connected load with Prosumer is also allowed to opt the Goa Electricity Department for Net metering, if he chooses so. (GED)and is also a Producer of Solar Power. Prosumer is catego- b) Large Prosumer is a person hav- rised into two types namely Small ing an HT connection i.e. and Large. connected load above 100 kW with GED. It will include Residen- a) Small Prosumer is a person tial, Commercial, Institutional or already having an LT connection Industrial consumers. i.e. connected load upto 00kW All large prosumer shall be al- with GED. It will include lowed to go for Net metering only. Residential, Commercial, Insti- The feed in tariff will be as per tutional or Industrial consumers. LEGISLATIVE FRAMEWORK JERC approved solar tariff rates They are allowed to go for Gross FOR POLICY: for that year for the surplus energy metering upto 100kW or the con- exported as per the net metering Several provisions under the Electricity Act, nected load, whichever is lower. mechanism of JERC. The solar 2003 mandates the Electricity Regulatory The feed in tariff will be as per the power plant can be installed on Commissions and the Government’s to Joint Electricity Regulatory Com- rooftop or ground based within take the necessary steps for promotion of mission (JERC) approved solar the same premises. The area/ renewable energy. The Section 108 and tariff rates for that year. The solar boundary of the premises will be Section 109 of the Electricity act 2003 man- power plant can be installed on as existing on date of Notification dates the Government to give directions rooftop or ground based within the of this policy. to the State Commission in the matter of samepremises. The area/ policy involving public interest. Accordingly, the state Government in exercise of its II : PROSUMER powers has formulated this Policy. The Producer is an entity intend- (PPA) with all intending pro- ing to set up a Solar Power ducers subject to availability of OPERATIVE PERIOD: plant with a capacity of more infrastructure for evacuation of This policy shall come into effect from the than 100kW exclusively for sale power.a) Small Prosumer is a date of notification in the official gazette of power to the Distribution person already having an LT in the state of Goa and shall remain in Licensee under gross metering connection i.e. connected load operation up to 7 (seven) years. However, as per the tariff discovered by upto 00kW with GED. It will this is subject to modifications as may be Reverse Bidding.The solar power include Residential, Commercial, made by Government of Goa from time plant can be installed on rooftop Institutional or Industrial consum- to time, without jeoparding the already or ground based. Producers are ers. They are allowed to go for signed Agreement or MOU. Even though, allowed to participate in reverse Gross metering upto 100kW or the policy will be in operation for 7 years, bidding for four sizes of instal- the connected load, whichever is all Agreements and PPAs signed under lation i.e. i) 100kW to 1MW, ii) lower. The feed in tariff will be as this policy shall be valid for the period of 1MW to 5MW, iii) 5MW to 10MW per the Joint Electricity Regulatory Agreement / PPA. and iv) 10MW & above. The Commission (JERC) approved producer will be selected through solar tariff rates for that year. The Reverse Bidding on the basis of solar power plant can be installed the maximum discount offered on rooftop or ground based within on the levillised tariff fixed by the the samepremises. The area/ JERC for the solar power plant boundary of the premises will be for that year. At the above discov- as existing on date of Notification ered price of Solar tariff for that of this policy. However, the Small slab/size, the GED will enter into Prosumer is also allowed to opt a Power Purchase Agree ment for Net metering, if he chooses so.

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NORMS / CONDITIONS APPLICABLE FOR REVERSE BIDDING

In order to keep away speculative bidding and to ensure d) For supply to be considered as valid supply, atleast 50% participation of only serious power producers, following of power as per PPA should be made available. Failure conditions for bidding shall apply:- will be treated as breach of contract & one month supply i. Price : Price for supply of solar power shall be as per the value equivalent BG will be encashed or penalty imposed. discount offered on the levellised tariff rate as declared by However the supply will be paid at the contract rate. JERC and duly notified as on the last date of responding to e) Upto 10% lower supply quantum will not attract penalty. the Expression of Interest (EOI)/bidding. Anything above 10% & upto 50% will be levied penalty ii. Eligibility: Besides other General Condition of EOI/bidding, at 5% of value of supply that is missing above the 10% only those who have firm proof of land in their ownership threshold.. or NOC/confirmation from the owner of the land regarding f) For delay upto 12 months, the bidders shall pay penalty his intention to lease out the land to the bidder (in case of equal to 5% of value of energy committed for every day of bidder being successful in the bid) for a period equal to or delay. For delay upto next 12 months (if approved by Gov- more of the period of PPA shall be considered. ernment), the penalty will be at twice the rate as already iii. The term for starting of supply from completion of bidding mentioned at point (b) above. process & execution PPA shall be as mentioned at point g) The bidder will have to provide 6 BGs each equivalent to no.12 of this policy. 30 days supply for the capacity of the plant size he has iv. The solar capacity to be approved for each year for all the quoted based on his own expectation of generation. The slabs as mentioned above at para 5.2 shall be separately bidder shall clearly mention the size of the plant he plans notified by the Government at the time of bidding. How- to install and the minimum average units per KW per ever, an information on future requirement for 5 yrs will month that he commits to be generated from the same. be indicated. The lowest bidder in each slab shall have This will be the basis for calculation of his value of BGs the right to go for PPA for the whole capacity allocated to and penalties, if any, in case of default. that slab. In case he desires to restrict to only his quoted h) PPA shall not take into consideration the rainy season capacity in the bid, then other bidders in that slab will be wherein supply as available will be considered for payment given the option to match the L1 rate.Incase they agree and above clauses a) to g) shall not be applicable. The for the same, then PPA at L1 rate upto allocated capacity start of rainy season shall be date of onset of monsoon as of that slab will be entered with them. In case there are declared by Meteorology or the day in June when seasons more bidders than the allocated capacity in that slab, then rains cross 15cms whichever is early & will last for purpose priority will be given in terms of next lowest bidder and so of this PPA for 75 days from that date. on i.e. from L1 to L2 to L3 and so on till the whole capacity in the slab is exhausted. In case even after signing of PPA i) The BG submitted shall be valid for atleast 02 years. with all bidders in that slab, the capacity is still left, then Out of six BG two BG (of one month each) shall be kept only non-bidders will be given the option to enter into PPA valid throughout the period of PPA, failing which equiva- at L1 rate at the discretion of the Government. lent amount of billing will be frozen. The B/L BG shall be returned after 6 month of successful operation (6 month v. Permissible delays and Penalty thereof:- of Non default operation after commissioning) or validity of BG whichever is later and the operator is required to a) Any delay though condoned, shall not increase the period extend the BG till such condition is achieved in case the of PPA. Thus while delay could be permitted to the extent same happens after 02 years. permissible on payment of penalty, the total time frame of PPA shall remain unaltered. j) Both the penalties i.e. for delay in supply or for short supply, shall be levied simultaneously if there is a default b) Maximum delay permissible to start the supply shall be on both the accounts. However, in case one month BG is 12 months. However, the State Government at its dis- encashed in any month because of short supply, then no cretion may permit further delay of upto 12 months on other penalty in that month shall be imposed to save the payment of twice the penalty levied for the 1stdelay bidder from double whammy. permitted, prorata to the delay time on day basis. Provided that inspite of delays of first 12 months as permitted and Solar Power Plants under Renewable Energy Certifi subsequent discretionary delay, if permitted by Govern- cate (REC) Mechanism ment of Goa, do not result in supply, then the PPA stands null & void and all Bank Guarantees shall be encashed. The State Government shall promote the development of solar power plants under the Renewable Energy c) The supplier shall give notice of his intention of supply Cerificate mechanism specified by the Central Electricity three months prior to date as scheduled in PPA. Failure Regulatory Commission. Under the REC mechanism to give this notice will automatically be considered as delay the producer will set up the solar plant and sell the power until the notice is received for 90 days for intention to begin to GED at averge ower purchase cost. The solar power supply. Delay accordingly will be calculated in days and generator will be ermitted to ell the REC as per the penalty will be imposed as per rules. market mechanism. The State shall not laim any benefit for REC.

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Third Party Sell Solar Power SUBSIDY/INCENTIVES: The State shall promote development of solar power a) The Subsidy received from the Government of plant sale of electricity to third party other than GED. India will be credited to the prosumer/developer as The producers who are intending to set up the solar per the guidelines of Ministry of New & Renewable power plant within the State and sell the solar power Energy (MNRE). so generated to the third party beside GED would have b) For Small Prosumers i.e. for solar plants of upto their own private power purchase agreement with any 100kW size, the State Government shall grant 50 % third private party. The producer will have to pay the of the Capital Cost or the benchmark cost provided wheeling charges as per JERC rates. However, the by MNRE whichever is lower, as interest free loan, State Government/GED reserve the right to procure which will be recovered in instalments after six 10 percent of the power so generated at the agreed months onwards, from the time power flows into price between solar producer and third party buyer or grid. The recovery will be made from the payment to be made to the generator for every kWh supplied at JERC tariff for that year or the reserve bidding price to the grid. The recovery will be at Rs. 4 per kWh or identified for that plant size, whichever is lower. JERC feed in tariff rate whichever is less. c) The State Government shall provide a subsidy of Roof top Solar Power Generation through 30% of capital cost or the benchmark cost provided by MNRE, whichever is lower, for plants of size RESCO upto 100kW for the standalone systems including Under the Renewable Energy Service Company the cost of battery (Off-grid Systems) which will be (RESCO) model instead of prosumers the RESCO will released by way of Rupee 1 for every unit of power generated and will be paid once in six months. A invest on behalf of one or more roof top owner in the sealed tested Energy meter form GED is required to housing colony, towns, etc., on their roof tops and will be installed at the generation side to measure the sell the power so generated to GED. The owners of the solar power generation. No payment shall be made rooftops will have their own agreement with the RESCO. to such producer under Net/Gross metering to avoid The GED will enter into the power purchase agreement possibility of Double benefit. with the RESCO for 25 years for the purchase of power d) For Small Generators, the meters will be rented at JERC approved solar tariff rates in that year. out on payment of monthly fees. In case of Large Generators,the certified/approved meters shall be LAND procured at their cost. Producer should identify suitable Rooftop or Private GRID CONNECTIVITY, SAFETY AND BILLING CYCLE land for atleast 25 years for their projects within the state of Goa. The cumulative solar capacity allowed at a particu- lar Distribution Transformer (DT) shall not exceed a) To generate solar power, conversion of land is not the 30% of the peak capacity of the DT. GED will needed. However for Rooftop solar units same has undertake power cable connectivity and charge it to be fitted on legally approved structures only. to the installer with due installation charges. The b) 2% of the total area can be used for construction, Billing cycle for large prosumers will be monthly and operation and Office set up subject to a maximum the settlement period will be six months basis. How- of 200 Sq. mtrs./per MW. ever for the educational institutions, it will be annual from April onwards. The billing cycle for small c) No Town & Country Planning (T&CP) permission prosumers and for producers shall be on monthly will be required for setting up of solar farm includ- basis and their settlement will be within next 30 ing construction for operational space as men- days. For all the grid connected and battery backup tioned at (b) above. stand-alone installations, all the instrumentation, d) For the rooftop installation of 100kW and above, operating unit specifications and safety norms will the building structure needs stability certificate as per the guidelines of JERC and MNRE but State from PWD/Chartered Engineers. Apart from struc- specific. These will be specified, reinforced and tural stability certification, nothing else is required. checked periodically by GED. e) No Gram Panchayat/Urban Local body/T&CP ADMINISTRATIVE MODALITIES Department Construction licence/NOC/Completion certificate will be required. Every Prosumer and Producer in the state will have to enter in PPA with the GED for the period of 25 f) For Communidade land, the lease rent agreed to years and the tariff will remain fixed for the period and between the solar power producer and the Com- required to submit account of the power generated munidade will have to be approved by General annually before year end. The disputes related to the Body of the Communidade and the State Govern- power sale to GED will have to be settled through the ment. empowered committee constituted by the State as noti- fied. The Prosumer shall have the right to terminate the g) Separate Policy will be formulated for the allotment PPA at any time by serving a written notice of 90 days of Government land or buildings. However, for its in advance to the GED. nodal agency which will serve own use this policy shall be applicable. as single window dealing with projects.

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Minutes of the Conference of Power and MNRE Minister’s of States/UTs held on 7th Dec. 2017 in New Delhi • Doing away with the human interface Secretary (Power) welcoming the delegates expressed totally in metering, billing and col- regret for the cancellation of Power Ministers Conference lection. Create systems for payment scheduled for 9th – 10th November, 2017 at Rajgir due to for electricity bills through electronic mode. unavoidable circumstances • 100% metering of the energy supplied Secretary (Power) stated the issue to be deliberated in the conference include: (prepaid metering for small consum- ers) and Smart Metering for large • Electrification of the remaining 2170 villages by March 2018 including consumers to enable remote monitor- difficult villages requiring additional efforts by the States. ing and auditing of the consumers • Achieving financial and operational turn-around of DISCOMs under • Adoption of Franchise models UDAY. • Setting up of special police station to • Achieving universal household electrification under SAUBHAGYA. control electricity theft and setting up • Undertaking reforms such as introduction of prepaid meters/ smart me- of special courts for speedy redressal ters, separation of carriage and content, DBT (Direct Benefit Transfer) of theft cases. • The target under UDAY scheme was • Secretary(Power) stated that the ac- ucts would be reduced which in turn to reduce the AT&C losses to 15%. He tual delivery point was the DISCOMs. would reduce its import. Renewable added that Government proposes to He hoped that fruitful deliberations energy with better storage tech- amend the Tariff Policy to provide that would be held with the DISCOMs and nologies would edge out electricity from January, 2019 losses beyond Power Ministers of the States which produced by the fossil fuels. We 15% may not be compensated by would result in generation of innova- have to focus on strengthening our increase in tariff. tive ideas and solutions to tackle the distribution system, transmission and challenges faced by the power sector. sub-transmission system to meet our • Hon’ble MoS (IC) informed that Government of India is committed • Hon’ble Minister of State (IC) for future requirements. to achieving the target of 175 GW Power and New & Renewable En- • With the aim of providing 24X7 power installed capacity for Renewable ergy, Shri R.K. Singh, supply to all at affordable price, huge generation by 2022. And by 2030 investment to the tune of Rs. 85,000 • (hereinafter referred as MoS(IC) - 40 % of the country’s generation crores was being made under various while welcoming the delegates to the would be from renewable sources. schemes by the Central Government conference stated that power was the This huge generation would require to upgrade/ augment the distribu- basic requirement for the develop- balancing requirement which could tion system and sub-transmission ment of the country. Power sector be made available from hydro power system. The basic problem in the needed to grow at a higher rate than and Government is already working on sector which needed to be urgently GDP growth rate of the country. By improving the Hydro Policy. December 2018, with electrification addressed is to reduce the gap • Hon’ble MoS (IC) stated that for of every households in the country, between the energy supplied and making MAKE IN INDIA campaign a 40 million new electricity consumers energy billed. We need to strengthen success, tariff of electricity (basic input were expected to be added. The av- the system to reduce transmission for the industry) should be afford- erage per capita electricity consump- and distribution losses. With the goal able. For this we need to restrict the tion of about 1100 units in the country of 24X7 power supply, the quantum cross-subsidy upto 20% as provided in was anticipated to at least double of electricity consumption is likely to the Tariff policy. Subsidy for electricity within five years. increase and so the loss of electric- ity. The transmission and distribu- may also be necessary for the lower Hon’ble MoS (IC) further informed • tion losses had to be plugged. The strata of the population but it has to be that by 2030 we have targeted for remedies available with DISCOMs to managed through DBT ( Direct Benefit 30% E-Mobility. With Electric Vehicles overcome this problem were: Transfer ) as done in case of cooking the dependency on petroleum prod- gas (LPG).

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DDUGJY, IPDS AND SAUBHAGYA &K informed that under DDUGJY 11 projects were on’ble MoS (IC), reviewing social media, formal launch in the State J being imple ented by PGCIL, 6 the progress, pointed out that by Chief Ministers, followed by launch in 42565 crores was sanctioned for each district and local level. Nodal Officer projects were sub- judice, one H project was being done depart- DDUGJY in the year 2015 and still only to whom people can approach for getting Rs 5128 crores has been released from electricityconnections needed to be pub- mentally and in 4 nos. projects, the fund and there were many projects licised along with telephone numbers so the response was very poor. which were yet to be bid out. The prog- that people could approach them in case Hon’ble MoS(IC) suggested that ress made is slow. While for states like of any difficulty. the State Government should J&K (where climate conditions are harsh) Joint Secretary (Distribution), MoP make suitable submission before and Chhattishgarh(Naxalite areas) slow stated that the Restructured Acceler- progress could be understood but for oth- ated Power Development and Reforms the Hon’ble Court seeking expe- ers it was not acceptable and the States Programme (R-APDRP), which had been ditious decision on pending court needed to gear up. subsumed in IPDS, was not yet closed cases. and about 8% to 10% of the money under Hon’ble MoS (IC) stated that Prad- the scheme was yet to be released. He harkhand stated that all han Mantri Sahaj Bijli Har Ghar Yojana requested the States for closure of the Jprojects had been awarded –“SAUBHAGYA” a new scheme launched projects under RAPDRP. Arunachal and would be completed by June by the Prime Minister is to ensure electri- Pradesh stated that the progress reflected 2018. fication of all households in the country in for their State regarding the DDUGJY rural as well as urban area. Poor house- was not reflecting the actual progress eghalaya stated that the de- holds would be provided electricity con- made by them and the same needed to lay in award of projects was nections free of cost. be corrected. It was clarified that States M have to begin using ID and Password of due to prolonged monsoon and Other households would also be the SAUBHAGYA Portal where they can some disputes in areas bordering provided electricity connections under the directly update the progress. Assam. scheme on payment of Rs.500 only which Bihar stated that there was delay shall be recovered by the DISCOMs in in award of contracts due to delay in izoram stated that DDUGJY ten (10) instalments along with electricity finalisation of technical standards for few Mworks would be completed bills. So with implementation of DDUGJY, items which was finalized only in July by April 2018 and IPDS works by IPDS and SAUBHAGYA there would be 2017. However they would complete their December 2018 except for IPDS no unelectrified household in the coun- target by December 2018. Chhattishgarh works in Aizawl. try. The work of rural electrification and stated that tendering had been completed electricity to each household has to be and they would complete the works by ajasthan raised the issue of completed by December 2018 barring December 2018 except for about 160 vil- technical standards for Dis- few States where it would be completed lages which were in Naxal affected areas R by February or March 2019. Every State where the works would be completed by tribution Transformers. Principal needed to do micro analysis of the pres- February 2019. Chhattishgarh suggested Secretary(Energy) Rajasthan ent progress and take necessary steps reduction of GST for electrical items from stated that BEE star rating to achieve the targets. Joint secretary 18% to 12%. Goa stated that they have requirements ( which requires (Distribution), MoP stated that under the opened tenders for balance 4 nos. of regular certification) were not in SAUBHAGYA scheme the States need projects. Hon’ble MoS(IC) pointed out that sync with the BIS technical stan- not wait for eparation of DPR. They in many of the past meetings there was dard. Hon’ble MoS(IC) assured can straightaway start implementing no participation from Goa and requested the scheme by increasing the scope of them to participate. Goa informed that to look into the matter. already awarded projects. Based on the there was shortage of officers in Goa to average rate of Rs 500 per household which Hon’ble MoS(IC) assured that they ther States also presented for providing electricity access, advance would soon send a panel of officers to Otheir status of various money can be requisitioned by the State Goa from which they could choose. projects under DDUGJY and for implementation of the scheme and Haryana stated that they were the IPDS. Hon’ble MoS(IC) stated DPR could be submitted subsequently. first State to opt for smart meters. EESL that main purpose of the review Bihar has already developed the mobile was in the process of buying one million of the schemes state-wise with app for the same. smart meters. UP stated that they were their Power Ministers was to Survey works in Bihar state had been procuring 40 lakh prepaid meters and 1 undertaken by them. In UP it had been lakh smart meters and with such aggre- bring to their notice the status assigned to RECPDCL and five states ( gation the cost was liely to come down of the schemes as on date, the MP, Odisha, Chhattishgarh, Assam and considerably. Himachal Pradesh stated areas that needed to be focussed Jharkhand ) are getting it done through that they had already completed 100% so that necessary steps could be Department of Post. Hon’ble MoS (IC) electrification. There were five strengthen- taken well in time to achieve the recommended wide publicity for SAUBH- ing schemes which were under evaluation committed targets. AGYA scheme through camps, hoardings, and the delay was due to litigation.

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U DAY 24X7 SUPPLY

oint Secretary (Distribution), street light dues. Uttar Pradesh oint Secretary (Distribution), MoP stated that JMoP making the presenta- stated that in two districts Jthe 24X7 SUPPLY FOR ALL aimed to pro- tion stated that 27 states and 04 Faizabad and Lucknow, all vide reliable and quality 24x7 power to domestic, UTs have signed MoU under the Government Departments have industrial and commercial consumers by March UDAY scheme. Analysis of the been directed to install prepaid 2019, and for irrigation pump for 8 to 10 hours a figures of Profit, ACS-ARR gap, meters. After deliberations on the day and access to all unconnected households in AT&C losses and Energy billed outstanding dues of Government five years. The PFA Action Plan includes effective for the FY 16 to FY 18 shows Departments it was decided that implementation of various schemes under Genera- that UDAY had a clear impact Central Government would issue tion, Transmission, Distribution, Discom health, towards increase in energy a directive to clear the outstand- Renewable Energy, Energy efficiency and capacity consumption, improvement in ing electricity dues of Govern- building. operational efficiency and decline ment Departments for the current on’ble MoS(IC) stated that vision was to in overall losses. year and minimum 25% dues of provide 24X7 power for all by March 2019. previous years by March 2018. H on’ble MoS(IC) going This is a basic service obligation for the DISCOMs. Hthrough the billing efficiency oint Secretary (Distribution), After March 2019, if there was any load shedding state wise stressed upon the JMoP informed that average without any reason, there will be penalties except need to go for prepaid and smart power procurement cost of the in case of technical faults or Acts of God. metering and removal of human UDAY participating states in hhattishgarh raised the issue of difficulty in interface by using technology to the FY 2017 was Rs. 4.22 per Cprocuring forest clearance for Transmission improve the billing efficiency as unit. Further analysis shows lines and suggested treating Transmission lines well as to bring down the AT&C that some States have even as linear projects as was done in case of road losses within 15%. lower procurement cost but their projects. establishment cost was higher. oint Secretary (Distribution), The average establishment cost n universalisation of metering, Karnataka JMoP stated that the chal- of UDAY participating states Ostated that maximum cost involved was for lenge in the UDAY scheme was was Rs 0.67 per unit ( 13% of software development, storage and communica- that there was data discrepancy ARR) but for many States, it was tion for which EESL needed to do something. between provisional data and higher than the average - upto EESL stated that apart from meter procurement finally audited data. In case of Rs.1.73 per unit. This brings they were also involved in development of entire some States, the gains made opportunity of potential savings ecosystem for prepaid and smart metering were mainly financial gains (due of about Rs. 10,000 Cr, if the es- amil Nadu stated that they had undertaken a to decline in interest payouts). tablishment costs were reduced pilot project wherein smart metering was being Otherwise, the operational T to the extent of average of UDAY done for consumers consuming more than 500 Efficiency leaves much to be States. H.P raised the issue of units in a month. desired. Therefore, this was the higher establishment cost due to area where substantial amount hilly terrain and scattered popula- ecretary(Power), MoP stated that for smart me- of improvement needed to be tion. Some of the States were of Stering, area with high population density should achieved. The other challenge the view that norms for establish- be chosen and the entire ecosystem needed to be was the DISCOMs dues from ment cost for providing electricity developed as it would be cost effective. Government departments which per 1000 consumers needs to oint Secretary (Distribution), MoP stated as a was about Rs 31,465 crores be worked. After deliberation as per latest figures available. Jpart of promotion for digital payments Govt. Hon’ble MoS(IC) directed Central of India had set a target for 2500 crores digital As per the provision of UDAY Electricity Authority to work out scheme, dues should have been transaction for the FY 2017-18 which includes 101 the norms for establishment cost crore digital transaction for power sector. States cleared by States by October and submit the details within a 2016. needed to incentivize digital payments by giving week. cash back/discount, waiver of convenience fee/ ihar stated that in their State unjab stated that they had MDR charges etc. and promoting digital payments Bthe outstanding dues were Preduced their power procure- through Bharat Bill Payment System (BBPS), Na- of Urban Department for which ment cost by 10 paisa. They tional Payment Corporation of India (NPCI), Bharat reconciliation meetings are going were power Surplus, so were QR Code / BHIM app, printing of Bharat QR Code on. Chhattishgarh stated that liable to pay Rs 345 crores as on electricity bills etc. dues were mainly of Panchayats fixed cost to NTPC even with- on’ble MoS(IC) stated that for the success of and the money was adjusted in out scheduling a single Unit of HMAKE IN INDIA initiative of the Government, their grants. Punjab stated that power. Hon’ble MoS(IC) sug- cross subsidy had to be capped at 20% of the they have levied 2% municipal gested Punjab to write to MoP average cost of supply by the States. States had tax and the Money received was separately so that the matter also to ensure that all subsidy payment were made being used towards adjusting could be looked into. through Direct Benefit Transfer (DBT).

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REFORMS 24X7 SUPPLY STRENGTHENING presentation was made by Chief Amendment Bill 2014, the concern OF TRANSMISSION ngineer(RR), MoP on issues like expressed by various States had been SYSTEM FOR 24X7 ACross subsidy charges, Time of addressed. The time frame for imple- the day Tariff , Separation of carriage mentation, was kept as one year as POWER and content and issues in notification per the bill, which has now been left of RPO trajectory till 2022 etc. open to the States. Further adequate MOS(IC) noted that if tariff is too checks and balances to safeguard o meet 24x7 power for all in the high, consumers will opt for open ac- consumer interests shall be provided country, consistent expansion cess or captive generation. He further in the detailed transfer scheme to be Tin the Transmission Network expressed that from March, 2019 prepared by the State Governments. and augmentation of transformation onwards it may be ensured that the States were requested to suggest a capacity are essential. The aggregate tariff should be within ± 20% of cost of time frame within which the separa- inter-regional transmission capacity supply. tion of carriage and content can be by the end of 12thPlan is 75,050 MW The recommendation of the Com- implemented after the amendment of and the expected aggregate inter- mittee report on Tariff simplification Electricity Act is notified. regional power transfer capacity by and Tariff rationalization was also Hon’ble Minister expressed that re- 2021–22 will be 1,18,050 MW. As shared with the States. The States tail consumers should have the choice on Sep’2017, about 3,80,402 ckm of were requested to review the existing to choose their power supplier. With transmission lines (220 kV & above) tariff categories and bring it down to separation of carriage and content, and 7,82,830 MVA of Transformation five primary categories with recom- service efficiency of the supplier shall capacity (220 kV & above) exist for mended sub-categories as suggested. improve, it may also result in disap- transmission of power in the country. On separation of carriage and pearance of theft of electricity. A brief presentation was made by content, as proposed by Electricity the JS (Trans) on ‘Strengthening of Transmission System for 24x7 Power: Right of Way (RoW)’. She stated RENEWABLE PURCHASE OBLIGATION (RPO): - ISSUES hat one of the major issues during construction of transmission lines is RPO Trajectory has been notified by the country. To minimise further acquisition of the RoW. Many projects MOP applicable till 2018-19. There are additional capacity, we may have get delayed because of the develop- certain issues which needs to be deliber- all Hydro Projects as RE source, ers’ inability to acquire land and get ated before finalization of RPO Trajec- Distributed Generation and co- timely clearances from all stakehold- tory till 2022 like RPO on “energy or generation may also be considered ers. To resolve the compensation capacity” terms, uniform or state specific to qualify as RPO issues and to bring uniform methodol- RPO, flexibility in meeting RPO targets • Solar power is coming in a big way ogy for calculation of compensation between Solar and Non-Solar RPO, and may replace thermal, then RPO charges, the Ministry of Power on Hydro as RE source etc. may not berequired. 15th Oct. 2015 issued the Guidelines States shared their views of the above for payment of compensation towards issues. Hon’ble MOS(IC) expressed that ‘damages’ in regard to RoW for Trans- • KERALA has a view that if uniform RPO commitment is coming because mission lines. It was informed that RPO is notified for all the States of country’s commitment. Country has these Guidelines have been adopted then it will have many issues like made capacity commitment in NDC tar- by 10 States. She also informed that RE Potential in the State, Land gets. He further suggested that MW term Ministry, further, constituted a Com- availability, Inter State Transmission is basic and compliance is easy. mittee to suggest a methodology for Capacity etc. and suggested that Hon’ble MOS(IC) noted that Legal payment of compensation relating to these should be State specific RPO. framework mandated monitoring of RoW in the Urban Areas. The Com- • UP expressed that RPO should be RPO obligation by Regulators, but the mittee has prepared a Report which source neutral and interchangeabil- same was not being done. RE potential has been circulated to the States for ity to be provided. is different in different States. The rates their comments and additional input. • NHPC suggested that large Hydro ( achieved will be different for different However, not many States have >25 MW) should be considered as States depending on the Solar or Wind responded. Renewable Energy. intensity. Act says that RPO should be in Secretary (Power) urged the States • ODISHA had a view that present terms of energy. to send their comments on the Report mechanism of RPO in MU terms is Secy, MNRE suggested that MOP so that the same may be adopted better that RPO in MW terms. trajectory to be followed, may have to be which would help to reduce the delay • Captive Plants : RPO should also reworked if we are moving towards MW in construction of lines. He further be applicable on captive plants from MU. Addl Secy, MNRE uggested requested the States especially also. that RPO should remain in terms of En- Karnataka, Maharashtra and West • Waste heat recovery boiler. Some ergy. Solar/non-solar can be combined. Bengal to extend necessary assis- study may be done if some portion RPO in MW terms will not serve the tance including Police protection so of co-generation exist from other purpose. Addl Secy. MNRE further sug- that the pending important lines can sources also. gested that SERC may adopt uniform be completed. • RAJASTHAN : There is already RPO all across country even for private excess capacity of generation in DISCOMs.

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Energy Conservation E- Mobility Building Codes (ECBC) presentation was made by DG BEE Presentation was made by Shri Saurabh Kumar, MD, EESL. : Energy Conservation Building Codes ndia had set a target of 30% of Hon’ble MoS(IC) in his address A(ECBC) prescribe minimum energy total vehicles shall be e-vehicles by emphasized on the need for fulfillment efficiency standards for commercial buildings. 2030. MD(EESL) informed that we of commitment made by the country to These standards were applicable to large I had regulatory gap regarding setting the United Nations Framework Con- commercial buildings (connected load of 100 up of charging stations as sale of vention on Climate Change on Nation- kW/contract demand of 120 kVA and above). electricity requires distribution licence. ally Determined Contribution (NDC). ECBC 2017 was launched by Hon’ble Minister Hon’ble Minster informed that regu- Hon'ble Minister directed that major is- in June, 2017 latory gap would be plugged soon. sues in RE(Renewable Energy) sector As of now, 11 States had issued notification EESL had estimated that Central such as poor compliance of RPO by and 4 had included the same in their building Govt. had 5 lakh vehicles which can States/UTs, delay in signing of PPAs, bye laws. 10 States were in advanced stages generate demand of 3-4 GWh batter- delay in procurement of land for RE of issuing notification and rest of the States ies. This would attract battery manu- projects need to be resolved. had to issue the notification within a reason- facturers to set up manufacturing able time. Hon’ble Minister advised that all big plants in India. EESL had aggregated After detailed discussions with building should be energy efficient and states demand for 10000 EVs with a range States/UTs, Hon’ble Minister re- should adopt ECBC 2017 and also incorporate of 130 km per charge. EESL would quested the following:- the same in the relevant bye-laws. lease vehicles to Govt at Rs 40,000 • States/UTs to ensure 100% RPO pm along with driver or Government compliance in order to achieve Demand Side Management Organizations can opt for outright 175 GW RE target on time purchase at Rs 11.8 lacs per vehicle • Align RPO trajectory as per noti- G, BEE stated that in agriculture sector, which was lowest in the world. AC and fication of Ministry of Power RE Energy could be conserved by instal- DC Charging station were being setup procurement trajectory at Dlation of energy efficient star labelled in Delhi. EESL has received request the State/UT level pumps. Few states had mandated that all from Andhra Pradesh for EVs and • Scheduling of bids at regular new onnections will mandatorily have star were in discussions with Maharashtra. interval of time to ensure sign- labelled pumps. Hon’ble Minister advised that Cost to operate EVs was Rs 1.25/ ing of all PPAs. In this connec- all States may consider mandating that all new km at electricity tariff of Rs 8 per kWh. tion, States/UTs may indicate pumps should be energy efficient/star labelled. Two models had been selected in the their willingness to allow central EESL tender for EVs and both were of agencies like SECI/NTPC to bid Perform, Achieve and Indian manufacturers Ministry of New on their behalf. If States/UTs bid and Renewable Energy on their own, they should follow Trade (PAT) Secretary, MNRE highlighted the the schedule of bidding laid out major achievements in RE sector, nationally. erform, Achieve and Trade (PAT) such as: i) installation of RE capac- • Simplification of solar rooftop Scheme was launched under the ity of 62 GW as on Nov, 2017 (32.7 installation procedure PNational Mission for Enhanced Energy GW from wind power, 16.6 GW from • States/UTs should honour the Efficiency. 478 designated consumers from 8 solar power, 8.2 GW from Bio-power PPAs, faster signing of PPAs sectors were given targets to reduce their SEC & 4.3 GW from small Hydro Power) where bids have been closed. in the cycle of three ears under PAT Cycle-I against the target of 175 GW RE to be Tariffs are bound to be different (2012-2015). DG, BEE stated that most of the achieved by 2022; ii) commendable from one bid to another depending designated consumers had done exceedingly achievements in aggregate in offgrid/ upon region, so the sanctity of PPAs/ well and saving had been converted into En- decentralised renewable energy; bids should be maintained. The fol- ergy aving Certificates (ESCerts). Trading had iii) record lowest tariff discovered in lowing issues/points regarding renew- started. Designated Consumers who had not solar & wind power through reverse able energy sector emerged during chieved targets were non compliant and had auction. the session: Renewable Purchase to purchase certificates. These Designated Additional Secretary, MNRE Obligations (RPOs) States/UTs gave Consumers should purchase certificates by made a brief presentation on the views and suggestions as regard set- 31st December, 2017. Out of 110 non compli- “Mission 175 GW RE by 2022 & ting RPO targets in terms of installed ant Designated Consumers, 70 Designated Solar Sector” where the compre- capacity, merging of Solar & Non So- Consumers were yet to purchase ESCerts for hensive action plan to achieve lar RPOs, etc. For the issue of setting compliance and out of which 32 were thermal RE targets and physical progress RPO argets in term of installed capac- power plants. If they do not purchase ESCerts of solar sector made so far was ity, Hon’ble Minister directed that this by 31st December, 2017, they would be liable presented. This was followed with issue needs a detailed examination, for penalty. the brief Presentation on issues/ till then, the present system of RPO Secretary (P) requested Secretaries of all points related to Wind Energy & targets in energy terms may continue. the States to advise GENCO’s to purchase Small Hydro Power Sector by Joint However, the States/UTs may convert certificates wherever required. NTPC request- Secretary (BPY), MNRE. Thereafter, the RPO in energy terms into capacity ed to permit trading of certificates within same Scientist F (DKK), MNRE made a required depending upon the CUF of group of companies. Secretary (P) advised brief Presentation on issues/points the individual RE sources for planning that the purpose of the scheme was to make related to Bio Energy Sector. purpose. all units efficient.

66 EQ February 2018 www.EQMagPro.com POLICY & REGULATION

Solar Energy

• State/UT Governments may procure RE power from targets is being proposed by the Ministry. other states with high RE resource as Inter State Trans- • State/UT Governments to identify at least one city for mission system charges have bee waived off till 2019 & making it 100% RE city. which is proposed to be extended up to 2022. • State/UT Governments to submit proposals for new Suggestions/Responses from State/UT Governments solar parks of additional capacity of 20 GW. The suggestions/responses from various State/UT • State/UT Governments need to expedite the progress Governments are as follows: of sanctioned solar parks in their respective States ODISHA: including commitment to buy at least 20% power, timely Captive thermal power Plants should come under the ambit completion of transmission & other infrastructure, etc. of RPO mechanism. Telangana: State government has car- • Land for solar park may be secured on lease/rental ried out district wise bidding for small solar power plants. basis in case of diculty arising in acquiring the land in the States/UTs. KARNATAKA: • Due to non-availability of land in few States/UTs, Captive RE Plants may be made eligible under RPO smaller capacity solar parks may be taken up. mechanism. Land for smaller solar plants near substations • Ministry is finalizing a new scheme for solar rooftop and acquired on lease/rental basis from farmers. Biomass Power KUSUM program. Plants must be given must run status. Tariff for biomass • State/UT DISCOMs may rent rooftops for solar power power plants may be determined through bidding route. plant, aggregate its generation and feed it to the grid. States with high RE installed capacity are being penal- • Solar power plants needs to come up at all metro/rail- ised under Deviation Settlement Mechanism (DSM) for way stations. frequency deviation • Procedure for establishing Solar Rooftop plant needs to KERALA: be streamlined by the State/UT Governments. Use of plastic floaters for floating solar plants has led to • The states of Karnataka, Maharashtra, Telangana & decrease in capital cost of floating solar plants. Gujarat have already implemented one of the compo- nents of KUSUM program. The implementation model UTTAR PRADESH: may be obtained from these states & the same may be New solar policy has been approved by the state govern- circulated to other states for adoption. ment. • Possibility of establishing floating solar power plants MAHARASHTRA: at Dams/Reservoirs or ash ponds/coal mines may be Model bidding guidelines for other RE sources may be pre- explored by the State/UT Governments. pared by Ministry as done for solar/wind power. • Necessary regulations for Forecasting & Scheduling of solar/wind power may be taken up by State/UT Govern- CHHATTISGARH: ments. Proposal for additional requirement of standalone solar pumps for LWE districts to be submitted to Ministry. wind Energy RAJASTHAN: Possibility of merging of Solar & Non Solar RPOs or flex- • Non windy states may aggregate their demand for wind ibility between Solar & Non Solar RPOs may be explored by power and convey it to Ministry at the earliest. MNRE/Ministry of Power. • Windy states may prepare for bids as per bidding guide- lines to be issued soon by the Ministry. GUJARAT: • Non-signing of PPAs by the State DISCOMs aects the Ceiling on solar pumps capacity under MNRE scheme was confidence of investors in the wind energy sector. requested to be removed/ raised from current level of 5 HP. • Timely payment to developers by the DISCOMs must be For grid-connected pumps, feeder wise solarisation was ensured. suggested. Thereafter the floor was thrown open to States • States/UTs are advised to follow feed in tari route for for their comments. wind power projects having capacity less than 25 MW. Hon’ble Minister from Karnataka raised the issue of coal • Small Hydro Power, Bio Energy & other Sectors shortage for thermal power generation. Against FSA, coal is • Slow progress in Small Hydro Power & Bio energy- supplied at 85% and under MOU at 25% level only. Hon’ble sector is a major concern. Union Minister informed that current coal scarcity is rec- • Despite High capital cost, Small Hydro Power & Bio ognised. This is being monitored everyday and Minister is energy plants need to be taken up as a source of also getting updates every day. Position is improving now firm RE power for grid balancing. and commercial mining is likely to solve the problem in long • Levy of various charges i.e. LADA, allotment/pre- term. Karnataka requested extension of time for implemen- mium fees, demand of free electricity from State/UT tation of new environmental norms. Hon’ble Union Minister Governments for SHP projects may be stopped. assured that issue would be taken up with MoEF&CC. • PPAs are not being signed by the State DISCOMs Hon’ble Minister from Karnataka stated that transmis- for Biomass power plants. sion charges by PGCIL to Karnataka has increased from 31 • Single window clearance system may be introduced paise to 71 paise and are expected to reach – 94 paise next by State/UT Governments for speedy approval/clear- year while other states like Andhra Pradesh and Tamilnadu ances for SHP & Biomass projects. are paying much less. Hon’ble Union Minister informed that • Incentive to DISCOMs for achievement above RPO a committee has been formed to look into the issue.

www.EQMagPro.com EQ February 2018 67 POLICY & REGULATION

ROLL OF STATE NODAL AGENCY GEDA a) Announcement of Scheme: The Nodal Agency shall bring out a com- prehensive scheme to implement the targets of Renewable Energy (RE). - Runaway 53GW The scheme should elaborate the ap propriate process for invitation of bids/ applications, incentives and central financial assistance, if any, targets, Solar Boom in China implementation mechanisms etc. b) Allotment of the Solar Power Capac- ities : The Nodal Agency shall, from Pushed Global Clean time to time, undertake the process for allotment of solar power capacities to the project developers. The Nodal Agency in consultation with the related Energy Investment stakeholders shall announce the process for allotment of solar power capacities. Ahead in 2017 c) Facilitation in Development of Solar Power Plant : The Nodal Agency shall, facilitate the project developers World clean energy investment totalled $333.5 billion last year, in Setting up of solar projects including up 3% from 2016 and the second highest annual figure ever, sanctions/clearances from number of taking cumulative investment since 2010 to $2.5 trillion. Government agencies/departments. The State Government will provide requisite clearances through a “Single Window Clearance Mechanism”. It will be operated through GEDA. An extraordinary boom in photovoltaic installations d) Identification of Government Land made 2017 a record year for China’s investment in and Facilitation of its allotment for clean energy. This over-shadowed changes else- Solar Power Plant Development : where, including jumps in investment in Australia The Nodal Agency shall identify gov- and Mexico, and declines in Japan, the U.K. and Ger- ernment land and shall coordinate with many. Annual figures from Bloomberg New Energy the Government departments, prepare Finance (BNEF), based on its world-leading database transparent procedure, take neces- of projects and deals, show that global investment sary approvals and clearances for the in renewable energy and energy-smart technologies allotment of Government Land to the reached $333.5 billion last year, up 3% from a revised project developers for the development $324.6 billion in 2016, and only 7% short of the record of power plant subject to policy formu- figure of $360.3 billion, reached in 2015. lated by Government as per 9(g). e) Support in availing the Subsidy : The Nodal Agency shall facilitate the pro- sumer/producer to avail the subsidy, if any, available from Central and/or State Government. f) Capacity Building & Awareness : The Nodal Agency shall organize Capac- ity Building & Training Sessions for participation by the segment stakehold- ers. The Nodal Agency shall also take necessary steps in creating awareness among the citizens of the State. Jon Moore, chief executive of BNEF, com- mented: “The 2017 total is all the more g) Coordination with MNRE for Techni- cal Specification : The State shall remarkable when you consider that capital follow the technical specifications and costs for the leading technology – solar – standards as specified by the MNRE, continue to fall sharply. Typical utility-scale from time to time. The Nodal Agency PV systems were about 25% cheaper per shall provide its inputs to the MNRE for megawatt last year than they were two specifying new standards or amend- years earlier.” ing existing technical specifications for different component of solar plant photovoltaic.

68 EQ February 2018 www.EQMagPro.com research & analysis

Justin Wu, head of Asia-Pacific for BNEF, "Second, the cost of solar continues said: “China installed about 20GW more solar ca- to fall in China, and more projects pacity in 2017 than we forecast. This happened for are being deployed on rooftops, in two main reasons: first, despite a growing subsidy industrial parks or at other distrib- burden and worsening power curtailment, China’s uted locales. These systems are not regulators, under pressure from the industry, were limited by the government quota. slow to curb build of utility-scale projects outside Large energy consumers in China are allocated government quotas. Developers of these now installing solar panels to meet projects are assuming they will be allocated subsidy their own demand, with a minimal in future years. premium subsidy"

Investment by country Overall, Chinese investment in all the clean India $11 billion, down 20% compared to 2016 energy technologies was $132.6 billion, up • Brazil $6.2 billion, up 10% 24% setting a new record. The next biggest • France $5 billion, up 15% investing country was the U.S., at $56.9 bil- • Sweden $4 billion, up 109% lion, up 1% on 2016 despite the less friendly • Netherlands $3.5 billion, up 30% tone towards renewables adopted by the • Canada $3.3 billion, up 45% • South Korea $2.9 billion, up 14% Trump administration. Large wind and solar • Egypt $2.6 billion, up 495% project financings pushed Australia up • Italy $2.5 billion, up 15% 150% to a record $9 billion, and Mexico up • Turkey $2.3 billion, down 8% 516% to $6.2 billion. On the downside, Japan • United Arab Emirates $2.2 billion, saw investment decline by 16% in 2017, to up 23-fold $23.4 billion, while Germany slipped 26% to • Norway $2 billion, down 12% $14.6 billion and the U.K. 56% to $10.3 bil- • Argentina $1.8 billion, up 777% lion in the face of changes in policy support. • Switzerland $1.7 billion, down 10% Europe as a whole invested $57.4 billion, • Chile $1.5 billion, up 55% down 26% year-on-year. Below are the • Austria $1.2 billion, up 4% 2017 totals for other countries and regions • Spain $1.1 billion, up 36% investing $1 billion-plus in clean energy: • Taiwan $1 billion, down 6% • Indonesia $1 billion, up 71%

www.EQMagPro.com EQ February 2018 69 research & analysis

Investment by sector Investment by category Acquisition spending

olar led the way, as mentioned reaking the investment total down by type he above figures all above, attracting $160.8 of deal, the dominant category – as always concern new investment Sbillion – equivalent to 48% B– was asset finance of utility-scale renew- Tcoming into the clean of the global total for all of clean able energy projects of more than 1MW. This energy sector. BNEF also energy investment. The two big- was $216.1 billion in 2017, up fractionally on the measures money changing gest solar projects of all to get the previous year. Small-scale projects of less than hands, as organizations pur- go-ahead last year were both in the 1MW (effectively small solar systems) attracted chase and sell clean energy United Arab Emirates: the 1.2GW $49.4 billion, up 15% – thanks in large part to the projects and companies, and Marubeni JinkoSolar and Adwea installation rush in China. refinance existing project Sweihan plant, at $899 million, and Equity-raising by specialist clean energy com- debt. the 800MW Sheikh Mohammed Bin panies on public markets totaled $8.7 billion in This acquisition activity to- Rashid Al Maktoum III installation, at 2017, down 26%. The biggest transactions in this taled $127.9 billion in 2017, up an estimated $968 million. category were a $978 million convertible issue 4% on the previous year and Wind was the second-biggest by electric car maker Tesla, and a $545 million the highest ever. Acquisitions sector for investment in 2017, at placement by Guodian Nanjing Automation, a and refinancing of renew- $107.2 billion. This was down 12% Chinese technology supplier to generating and able energy projects rose on 2016 levels, but there were transmission plants. 14% to a record $87.2 billion, record-breaking projects financed Venture capital and private equity investment while corporate M&A involv- both onshore and offshore. On- in clean energy came to $4.1 billion in 2017, ing specialist clean energy shore, American Electric Power said down 38% on the previous year and the low- companies fell 51% to $17.5 it would back the 2GW Oklahoma est figure since 2005. The biggest deals were a billion. Public market inves- Wind Catcher project in the U.S., at $400 million Series A round for Microvast Power tor exits came to $7.4 billion, $2.9 billion excluding transmission. System, a Chinese maker of electric vehicle down 8%, and private equity Offshore, Ørsted said it had reached technology, and a $155 million expansion capital buy-outs reached an all-time ‘final investment decision’ on the round for Greenko Energy Holdings, an Indian high of $15.8 billion, up sixfold 1.4GW Hornsea 2 project in the U.K. wind project developer. on the previous year. The larg- North Sea, at an estimated $4.8 Asset finance of energy-smart technologies est acquisition transaction of billion. There were also 13 Chinese was $21.6 billion, up 36% thanks to increased the year was the purchase of offshore wind projects financed last installation of smart meters and lithium-ion bat- a 51% stake in U.S. ‘yieldco’ year, with total capacity of 3.7GW, teries for energy storage. Corporate research TerraForm Power by Brook- and estimated investment of $10.8 and development into clean energy rose 11% to field Asset Management for billion. $22.1 billion, and government R&D was almost $4.7 billion. The third-biggest sector was level at $14.5 billion. energy-smart technologies, where asset finance of smart meters and battery storage, and equity-raising by specialist companies in smart grid, efficiency, storage and electric vehicles, reached $48.8 billion in 2017, up 7% on the previous year and the highest ever. The remaining sectors lagged far behind, with biomass and waste- to-energy down 36% at $4.7 billion, biofuels down 3% at $2 billion, small hydro 14% lower at $3.4 billion, low- carbon services 4% down at $4.8 billion, geothermal down 34% at $1.6 Source: Bloomberg New Energy Finance. Note: billion, and marine energy down 14% Clean energy covers renewable energy exclud- Abraham Louw, analyst, at just $156 million. ing large hydro, plus energy smart technologies The clean energy investment total clean energy economics at such as efficiency, demad response, storage BNEF, said: “It is notable excludes hydro-electric projects of and electric vehicles. BNEF’s annual figures more than 50MW. However, for com- for past years, revised in this round, are $61.7 that acquisition activity parison, final investment decisions billion in 2004, $88 billion in 2005, $129.8 billion in clean energy has been in large hydro are likely to have been worth $40-50 billion in 2017. in 2006, $182.2 billion in 2007, $205.2 billion in excess of $100 billion BNEF’s preliminary estimates are in 2008, $206.8 billion in 2009, $276.1 billion in each of the last three in 2010, $324 billion in 2011, $290.7 billion that a record 160GW of clean energy years. The fact that gener- generating capacity (excluding large in 2012, $268.6 billion in 2013, $321.3 billion hydro) were commissioned in 2017, in 2014, $360.3 billion in 2015, $324.6 billion ating assets, in particular, with solar providing 98GW of that, in 2016 and $333.5 billion in 2017. The 2016 are in growing demand wind 56GW, biomass and waste-to- figures reflect a significant revision, due to the from buyers is a sign of a energy 3GW, small hydro 2.7GW, arrival of new data on Chinese solar and wind geothermal 700MW and marine less and on global corporate R&D. maturing sector.” than 10MW.

70 EQ February 2018 www.EQMagPro.com RENEWABLE ENERGY India Ratings: Renew- able Power Contract Renegotiations Contin- ue to Affect Investor Sentiment The renegotiation of tariffs under renewable power pur- chase agreements (PPAs) by quoting high tariffs is not an apparent option available with state discoms, says India Ratings and Research (Ind-Ra).

Reportedly, state utilities have evinced interest in revisiting signed PPAs to capitalise on falling solar and wind tar- iffs. This has affected investor sentiments towards the fledgling renewable sector. Moreover, erratic counterparty behaviour has continued to reduce project cash in some states. Ind-Ra considers PPA renegotiation or cancellation an event risk and a deviation from the normal course of business. Therefore, current ratings of entities do not factor in this risk.

lthough solar cost per unit is India has a commissioned solar capacity of about 14GW and higher than the average revenue a commissioned wind capacity of about 30GW. Installed wind requirement, wind cost procure- and solar capacity could entail a payout of about INR300 billion ment per unit is lower than the across several states, considering 80% of the power is bought average revenue requirement, by state utilities at INR5/kWh at a plant load factor of 20%. Ther leading to an overall cash ac- efore, the cash flow impact across states utilities may be imma- cumulation for discoms across terial for individual states. the five sample states, except Although there is no anecdotal evidence of cancellation of ATelangana. With solar power tariffs rapidly declin- PPAs, there have been instances of lower-than-contracted pay- ing and power procurement quantity from the solar ments or grid curtailments. There is no direct evidence of PPA space increasing in the next two years, the impact of cancellation due to higher tariffs, except in Uttar Pradesh. Be earlier high solar tariffs on the financials of discoms that as it may, the central government’s efforts to maintain inves- could be completely eliminated. tor sentiment and direct state governments on the importance The Ministry of New and Renewable Energy has of renewable energy help mitigate the risk arising from negative instructed state discoms to abide by signed PPAs sentiment. However, additional clarity will attract investments in and not to create uncertainty. Some recent judge- the sector. ments of courts and regulatory commissions have State utilities’ aim to reduce the cost of power may be laud- tried to clear uncertainty over projects. However, able. However, the achievement of the aim in a disorderly and disruptions through renegotiations in future cannot rushed manner and in contravention of the signed agreements be completely ruled out. is not the right way. If one or two states undertake such actions, Based on the contractual obligation and the firm many others will be increasingly eager to follow suit, thereby nature of PPAs, many projects are keen to access leading to non-achievement of the central government’s target the capital market independent of sponsors. Any of 175GW by 2022. signs of renegotiation or cancellation of PPAs would have an overriding impact on the fledgling infrastruc- ture bond market. The states see renegotiation as insurance against the rising cost of power procurement. Unlike road projects where debt and equity holders are covered through termination clauses, renewable project PPAs lack termination clauses and re-engagement of power sale is also not easy, thereby placing the loan recovery at risk for lenders. The upshot of state utilities’ actions is a perfect recipe to turn performing assets into non-performing. Given that the debt ser- vice reserve is sufficient to meet not more than one quarter of debt service obligations in many cases, in the absence of working capital, the asset, would slip into the default category in less than six months, if payments are stopped by the utility.

www.EQMagPro.com EQ February 2018 71 RENEWABLE ENERGY

Renewable Power Contract Renegotiation Disruption Lingers in Investor Minds

Power Contract Renegotiation – Event Risk: The renegotiation of renew able pow er purchase agreement (PPA) tariffs by quoting high tariffs is not an apparent option available with state discoms, says India Ratings and Research (Ind-Ra). Reportedly, state utilities’ keen interest in revisiting signed PPAs to capitalise on falling solar and wind tariffs is under- standable, given their weak finances. Even with the current capacity of 60GW, the renewable sector is still in the ramp-up tage on account of limited operational history, technical robustness of modules and potential technological redundancies, especially in the solar sector.

Although there is no anecdotal evidence of cancellation Insignificant Impact on Discoms ’ Bottom Line : India of renew able PPAs in contravention to possible exit claus- has a commissioned solar capacity of about 14GW es available in PPAs, there have been instances of low and a wind capacity of about 30GW. Installed wind and er-than-contracted payments or grid curtailments. There is solar capacity could entail a payout of about INR300 no direct evidence of PPA cancellation due to higher tariffs, billion across several states, considering 80% of the except in Uttar Pradesh. Be that as it may, the central gov- power is bought by state utilities at INR5/kWh at a plant ernment’s efforts to maintain investor sentiment and direct load factor of 20%. Therefore, the cash flow impact state governments on the importance of renew able energy across states utilities may be immaterial for individual help mitigate the risk arising f rom negative sentiment. How states. Anecdotal experience show s high power cost ever, additional clarity will attract investments in the sector. as the sole reason for the proposed renegotiation/ Ind-Ra generally will consider PPA renegotiation or cancellation of PPAs. Solar power tariffs plunged to cancellation an event risk and a deviation from the normal INR2.44/kWh in May 2017 from INR5.10/kWh in June course of business. Therefore, its current ratings on these 2015. Similarly, reverse action in wind power led to a projects do not factor in this risk. decline in tariff to INR2.43/kWh from the existing feed in tarif fs of above INR4.00/kWh.

Although solar cost per unit is higher than the average rev- save about INR9.73 billion. Rajasthan makes profit per unit enue requirement, wind cost procurement per unit is lower on solar. With solar power tariffs rapidly declining and power than the average revenue requirement, leading to an overall procurement quantity from the solar space increasing in the cash accumulation for discoms across the five sample states, next two years, the impact of earlier high solar tariffs on the except Telangana. These states, except Rajasthan, would financials of discoms could be completely eliminated.

72 EQ February 2018 www.EQMagPro.com RENEWABLE ENERGY

Should the states emulate grid curtailment compensa- Right Concoction to Move Performing to Non- tion in upcoming PPAs and formalise a methodology Performing Assets for existing PPAs, it could reduce the financial issues of renewable energy generators. tate utilities have the right intention to reduce the cost of power. Meanwhile, as a proportion of the Limited Leeway to Absorb Operational Issues Soverall energy cost, discoms’ renewable energy bill still remains negligible. In the medium term, if the pro- olar project with a project cost of INR1,050 million posed renegotiation/cancellation of PPAs practice turns (143MW capacity), 75% of which is debt-funded, effective and discoms renege on contractual clauses, could withstand a tariff fall of about 16% from banks could face a battery of distressed assets. Given S the original INR5.5/kWh and could possibly meet debt debt service reserve is sufficient to meet one quarter of service obligations. In addition, the project could make a debt service obligations in many cases, in the absence of single-digit equity return over the tenor of the PPA. How- working capital, the asset, would slip into the default cat- ever, the tariff would be still significantly higher than the egory in less than six months, if payments are stopped recently discovered tariffs of INR2.44/kWh and could, by utility. In the event of a renewable energy project thus, leave limited leeway to absorb any shocks in the contract getting terminated, the possibility of the recov- operational performance and receivable days. ery of debt is low because of a no termination payment clause. In addition, re-engagement for power sale is not easy owing to cost-tariff dynamics. On the other hand, expected loss in road projects for a lender is relatively low because the termination payments Federal Intermediation May be Required in Medium Term iven the importance of renewable energy in the long term and the global commitment to reduce Gdependence on fossil fuels, potential investments in renewable energy cannot be underestimated. Any minor change in the policy or renege on contractual obligations would lead to serious repercussions for foreign invest- ments in the sector. One way of aggregating renewable energy could be by way of a unified agency, such as Solar Energy Corporation of India, aggregating the procure- ment and allocation of renewable energy to various states, ensuring renewable purchase obligation compliances and Renewable-to-Thermal Contagion coordinating on their payments. Such an initiative could help in the growth of investments in the sector, gradually PA renegotiation is not restricted to renewable energy decreasing the dependence on fossil fuels. The initiative and has gradually made its way to the thermal sector. requires policy measures at various levels. PThe recent instance of the termination notice invoca- tion by an Uttar Pradesh state utility highlights the high pro- curement cost relative to the average power procurement Equity and Debt Investments Likely to cost of the state as the reason for the utility exiting from the be at Risk PPA. istorically, counterparty risks have weakened the State utilities have increasingly started providing high-cost credit profiles of renewable energy projects despite power source as the reason for the cancellation or renego- the fact such projects have a relatively comfortable tiation of PPAs, notwithstanding the source of generation. H With the advent of renewable energy, there is a possibility operational and technology profiles. This is because of uncertain and irregular payment profiles of counterpar- of a fall in tariff not envisaged originally. Capital cost of new ties. Thus, several projects of both thermal and renewable thermal projects will always increase. On the other hand, projects were impaired. capital cost of renewable energy will decline. Moreover, cost The renegotiation risk, if becomes rampant across of power generated by thermal projects is subject to coal states, any amount of additional cash buffers or tighter price variations. Meanwhile, solar and wind power plants do debt structure cannot address it. The renegotiation of not have any fuel cost. Utilities can explore signing PPAs PPAs is understandable, provided the utilities commence with shorter terms or specific exit clauses to avoid getting it prior to the investments made by equity holders and stuck with high-cost PPAs. However, such a move could lenders. However, when projects are operating in full increase tariffs discovered in bids. "Thus, a sophisticated swing, the renegotiation could derail a project’s debt power buying mechanism is needed to compare various serviceability. power buying options based on tenor, price and source." Often, during the rating exercise, some developers have quoted grid curtailments in certain quarters as the reason behind lower plant load factor. Grid curtailments in certain states are attributed to high cost per kWh. Such a curtailment risk has been recently addressed through the introduction of a compensation clause in the PPA of Solar Energy Corporation of India.

www.EQMagPro.com EQ February 2018 73 RENEWABLE ENERGY

Some Key Judgements; Ministry in Favour of Honouring Contracts

hile disclaiming that Ind-Ra tribunal ordered the state commission the tariffs of 41 completed power is not opining on the judg- of Gujarat to reopen the PPA to avert projects (totalling over 800MW). In Wments of courts or appel- the closure of the facility and to in- some cases, the developers were late authorities, it is a fact that in centivise the renewable energy. Even paid PPA tariffs for over five months. April 2017, the Supreme Court of in this order, the state commission The abrupt move to halt the pay- India impressed on the importance was required to balance the interests ments stressed the liquidity profile of of adherence to a PPA while ruling of the consumer and the generator. a project and has possibly wiped out on the compensatory tariff claims of This case is different because the its debt service reserve. Plants that thermal plants, including Coastal Gu- plants were faced with challenges commissioned operations after the jarat Power Limited and Adani Power due to a significant hike in biomass AP discom request in March 2017 Limited. fuel price. Under the current circum- continue to supply power without pay- The judgment clarifies that a rise stances, PPA renegotiation is initi- ments. Given the wind season con- in price/cost (analogous to high cost ated after the project was accepted cluded recently, continued payment of power under PPA compared with and the PPA was signed between the delays could eventually result in debt other sources of power) cannot be parties. Such measure impairs the servicing delays. Any renegotiation of the sole reason for the termination, sentiments of investors and lenders. tariffs against the original one could unless such a price rise causes a In its PPA with the developer, have affected investments of about serious hindrance in contract per- Madhya Pradesh Power Management INR50 billion in Andhra Pradesh. In formance. In response to a petition Company Limited (MPPMCL) has its order on 13 December 2017, the relating to a dispute between the mentioned that if MPPMCL refuses to state regulatory commission consent- parties involving the termination of buy power and the tariff realised from ed to the PPAs of the 41 completed PPAs owing to a high average power third-party sale is lower than the PPA power projects and averted several purchase cost of NTPC, NHPC Lim- tariff, MPPMCL is liable to bridge the assets from falling into the non-per- ited (‘IND AAA’/Stable) and THDC shortfall. Similarly, the new solar PPA forming asset category. India Limited ('IND AA+'/Stable), the notified by the central government On the other hand, the Ministry Ministry of Power stated that the pro- provides compensation, includ- of New and Renewable Energy has curer (Tata Power Delhi Distribution ing full debt payment and 150% of instructed state discoms to abide by Ltd) had a right to allocated capac- adjusted equity, for grid curtailments signed PPAs and not to create uncer- ity at all times, and accordingly, the and termination. On one hand, some tainty. Ind-Ra views the instruction obligation to pay the fixed charges for discoms and the central government as a landmark, as it provides more the power allocated continues, even are tightening PPA terms to improve clarity on the central government’s in case of non-scheduling of power. project bankability levels. On the commitment to renewable energy The ministry added that investments other hand, unilateral actions of state investments. If required, state govern- made by central public sector units utilities jeopardise the outlook for the ments may issue directions to state were to be serviced and accordingly sector. electricity regulatory commissions, as central public sector units would be Legal notices and lawsuits from per Section 108 of the Electricity Act, prejudiced if any procurer decided to either party elongate the pains of the 2003. Ind-Ra believes the instruction unilaterally terminate the agreement projects and affect the financial pro- is in line with the statements made in the middle. file of the fledgling renewable energy by the central government on the In the case of Junagadh Power sector. In March 2017, an Andhra Tata Power Delhi Distribution case, Projects Limited versus Gujarat Urja Pradesh discom requested the state reassuring that PPAs are sacrosanct Vikas Nigam Limited, the appellate regulatory commission to not adopt documents.

arnataka Electricity Regulatory Com- and Renewable Energy’s instruction to state mission (KERC) had reduced the period discoms to abide by signed PPAs and not to of the control period to 31 August 2017 create uncertainty, could provide respite to Kfrom the originally scheduled 9 October 2018, wind developers in the state. while revising the tariff downwards to INR3.74/ In the recent judgement of Gujarat Urja Vi- kWh against the earlier set INR4.50/kWh. This kas Nigam versus Solar Semiconductor Power is a deviation from KERC’s earlier order, lead- Company (India) Private Limited, the Supreme ing to uncertainty over projects. The tariff de- Court of India agreed to the redetermination of termined in the order shall also be applicable the tariff due to delays in the project commis- to projects that have entered into PPAs with sioning. In addition, the apex court ruled that state discoms prior to the order date that are the extension of the control period was outside not approved by the commission, if it opts. the purview of the regulatory commission; The instructions from the state energy however, an ephemeral solution until a perma- department in Karnataka to override KERC’s nent resolution was achieved and a specific order and exercise Section 108 of the Electric- timeline to complete the process could have ity Act, 2003, in line with the Ministry of New reduced the financial pains of the developer.

74 EQ February 2018 www.EQMagPro.com PR DUCTS

he new REFUsol 100K is the logical continua- tion of the proven REFUsol 8-23K and REFU- REFU Launched sol 40/46 K string inverter ranges. It can be connected to any grid voltage between 380 and T 480 VAC offering maximum power between 83 and 100 kVA. The device underlines REFU New 100Kw String remaining true to its global approach offering maximum compatibility, flexible installation and easy serviceability. The REFUsol 100K can be mounted in a Inverter At WFES In vertical or horizontal position as required by the site conditions. It is available in two variants – with either fused direct string connections for distributed designs, or for a centralized designs Abu Dhabi with a single DC input. The REFUsol 100K in- verter is commissioned easily via app (available for iOS and Android) which connects seamlessly As a prelude to an exciting 2018, REFU launched its with Bluetooth® to the inverter. The integrated, entirely new 100kW string inverter at the World Future fail-safe Ethernet daisy chain (alternatively Energy Summit (WFES) in Abu Dhabi (January 15th-19th) RS485) allows cost efficient high-speed monitor- ing without special accessories. Each inverter You will find REFU as part of the German Pavilion, booth is individually connected to REFUlog for pro- number 7134. fessional monitoring, configuration and remote firmware updates.

“The new 100kW inverter continues our rich tradition of technology leadership and innovation. It underlines our aspiration to develop the right solutions for our customer’s demands combining maximum performance, simplicity and flexibility.” states Ralf Betkerowitz, CEO of REFU Elektronik GmbH.

Zouhair Kefi, Senior Vice President Segment Solar, Energy and Hybrid at REFU, adds: “We are excited to launch the next generation of our string inverter range, and this is not yet the end. We might have been too early for the solar market when launching the industry’s first 1,500 V as early as 2011, but we build on this knowledge and experiences for our new REFUsol 125kW/1,500V inverter that will round off our portfolio

by the end of the year.” Source: news-prettl

www.EQMagPro.com EQ February 2018 75 PR DUCTS

Secure a Faster ROI with GoodWe & Second Generation of MT Series

Leading solar inverter manufacturer GoodWe has received large orders for its second generation of MT Series string inverters from Indian top solar developers and EPCs with a total capacity of 45MW. Half of them are on the way. Apart from offering a more competitive price, the new MT series inverters are able to provide a continuous maximum AC output power overload of 15% thanks to its boost function, which offers customers a faster return on investment.

he new MT Series features a more compact design with less than 20% volume and lighter weight compared to other conventional models, which greatly simplifies installation and commis- T sioning, saving time and costs. It also supports 95mm2 aluminum cables instead of 75mm2 opper cables, which saves investment for AC cables. With capacities of 50 kW and 60 kW, the new transformerless, three-phase GoodWe MT series grid-tied inverters are equipped with four MPP Trackers ensuring that the outputs of connected modules are able to generate the highest yields even in different PV installation conditions, 5% “We are pleased to launch our new output up compared with the string inverters with generation of MT Series inverters one MPP tracker on the market. Moreover, the which can be successfully deployed start-up voltage is 200V, much lower than 600V of other products, which makes our inverter start on large scale commercial rooftops up earlier to generate more power with longer and ground-mounted solar PV working time. Even on the rainy days, the inverter systems,” said Huang Min, CEO of can still work normally because of the low start voltage. GoodWe. “The compact design of MT Series can help further reduce installation costs while its power boost function provides higher yield and a faster ROI.”

76 EQ February 2018 www.EQMagPro.com SuryaC n 2018

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www.EQMagPro.com EQ February 2018 77 Sineng Electric Launches New Central Distributed Inverter for Bifacial Solar Modules

BEIJING — Leading global solar inverter manufacturer Sineng Electric made headway with the launch of a new central distributed inverter for bifacial solar modules recently in Beijing. The new product drew wide attention from industry watchers, customers and media organizations.

ifacial Solar modules not only collect sunlight on the side facing the light source, but they also collect light on the back side that is reflected from the surface beneath the solar panel and from the B environment. Bifacial modules can generate an additional yield between 10 to 30 percent, compared with monofacial modules. However, due to the increased current of each string and seriously string mismatch, bifacial modules do not always perform perfectly due to the limited of traditional inverters when light conditions are optimal. In a move that not only resolves these issues but also facilitates technological progress across the sector, Sineng Elec- tric has created and released a new central distributed inverter compatible with bifacial solar modules.

“Bifacial modules will become a leading force in the industry due to significant improvement in energy yields and reduction in cost. The inverter is the first of its kind, a combination of the extensive expertise we gained as the result of the ac- quisition of a global top 500 firm, our rich experience in the operation of inverters, and our dedicated efforts in research and development. The solution is compatible with leading P-type PREC and N-type bifacial modules available in the market,” said Sineng Electric General Manager of Products, Wang Yuelin, at the forum.

ith the higher yields and lower system costs, degrees C and addresses the issues related to the high cur- Sineng Electric’s central distributed inverter sys- rent gain on the back side. tem (with multi MPPT inputs) has been widely In addition, the ability to handle long periods of 1.1X and W applied in various scenarios. The new central dis- short periods of 1.2X overload capability evenly matches the tributed inverter comes equipped with the MPPT overload capabilities of the AC-side transformer and boost combination box designed specially for bifacial circuit. The power supply for the tracking bracket integrated modules, capable of supporting an increase in with the delivery system delivers a cost-effective combination the maximum operating current up to 12.5A and of a tracking bracket and bifacial solar modules. a current gain of over 30 percent on the back side With years of experience in innovation and development, of the panel. The string-level MPPT technology Sineng Electric has been named one of the top three inverter solves issues related to string mismatch caused manufacturers in China. The company has also achieved by an uneven exposure to light on the back side, several key technological breakthroughs in the inverter field despite the complex conditions of the surface be- and built its leading position in terms of research and develop- neath the solar panel. The power-capacity ratio on ment, thanks to the development platform and technologies it the DC side supports extensive and flexible con- gained as the result of the acquisition of a global top 500 firm. figurations and adapts to the change in capacity Looking forward, Sineng Electric plans to continue increasing (0.9 – 1.3) on the DC side, which is caused by the its investments in research and development, improving its difference in current gain on the back side. The technologies and driving solar to grid parity. unit is capable of operating at full capacity at 55 Source:Sineng www.EQMagPro.com

78 EQ February 2018 www.EQMagPro.com Huawei Showcased Cutting-edge FusionSolar Smart PV Solutions for MENA at WFES

The World Future Energy Summit (WFES) took place in Abu Dhabi on January 15, 2018. The four-day event attracted more than 630 exhibitors and 30,000 visitors from 175 countries and regions. It has become the largest and most influential gathering on renewable energy in Middle East and Africa (MENA), bringing exports, project developers, distributors, investors and policy makers from across the globe to come together and discover new solutions to the world’s growing energy challenges.

Julio Torre Gutierrez, President & CEO of NOMAC, the wholly owned operations & maintenance contractor of ACWA Power said, “Technology in the renewable energy industry is rapidly evolving not only on how electricity is gener- ated but also on how plants are operated. This pilot programme is an important step in our continuous pursuit of delivering power reliably and at the low- est possible cost, a mission that necessitates the implementation of the latest solutions. The pilot programme is the first step in rolling out this technology in current and future sites as we strive to digitize our operations.”

eanwhile, Huawei signed a franchise contract with Abunayyan Trading, a well-known trading company, to expend its presence in Saudi Arabia. Abunayyan Trading is one of the most trusted names in the power and M water business, providing integrated solutions for customers in Saudi Arabia and Middle East. Eanwhile, Huawei signed a franchise contract with Abunayyan Trad- ing, a well-known trading company, to expend its presence in Saudi Arabia. Abunayyan Trading is one of the most trusted names in the In the meantime, Huawei also signed power and water business, providing integrated solutions for custom- certification supplier contracts with ers in Saudi Arabia and Middle East. Knights Energy of Jordan, ECOsys and Phoenix of Lebanon, 1 TEC Investment of South Africa, Enersyscom of Egypt. his year will witness the rapid growth in MENA’s PV market capacity. Huawei teamed up with these partners The region is one of the most attractive marketplaces in renewable and fully expanded its business in the energy industry, especially the PV industry. With a major breakthrough MENA solar markets. On the third T in key accounts of 16 MENA countries, Huawei achieved a shipment day, the Middle East Solar Industry of more than 300 MW in 2017. Going forward, it will further expand Association awarded Huawei the Best investment and business to help develop the region’s new energy Technology on Display at WFES 2018 market, especially in the UAE, Saudi Arabia, Jordan, Morocco, Egypt, for its superior product quality and user and South Africa. experience, at the industry’s premier awards ceremony — Middle East Solar Awards.

Source:Huawei www.EQMagPro.com

www.EQMagPro.com EQ February 2018 79 PR DUCTS Sungrow Launches 3.125MW 1500Vdc Turnkey Station at WFES 2018 ABU DHABI, United Arab Emirates — Sungrow, the global leading inverter solution supplier for renewables, launched the SG3125HV, the company’s latest 3.125MW 1500Vdc turnkey station, along with its string inverter series, at the World Future Energy Summit, the most visited event for renewable energy in the Middle East and North Africa (MENA) region, held at the Abu Dhabi National Exhibition Centre from January 15-18.

he SG3125HV container- ized solution integrates PV inverter power conversion together with block monitor- T ing, an auxiliary power sup- ply, and Night Static Var Gen- erator (SVG) functionality in a standard “Known for its rich solar 10-foot container, meaning significant resources, the Middle East savings in initial investment and future and North Africa area has operating costs. Thanks to the 3-level topology and seen growing demands for smart cooling design, it reaches a peak solar power in recent years. efficiency of 99% and can work without We are delighted to develop derating at 50; in the MENA region, having sustained power yield for PV products that are in accordance plants in the scorching heat is essential with this trend, and also, we for good project economics. Developed are determined to set up a for large-scale utility plants, the prod- uct also features a high DC/AC ratio complete and localized sales of 1.5 and flexible 6.25MW or 12.5MW and service network to better block design. Also on show are the benefit our customers,” said SG125HV, the world’s most powerful 1500Vdc string inverter rated at 125kW, Professor Renxian Cao, President of and SG36KTL-M, a first choice string Sungrow. inverter for rooftop projects.

Source: SUNGROW Power Supply Co., Ltd

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