Last Updated: September 07, 2022

Green Investment

Asia’s richest man Gautam Adani on Wednesday said his ports-to-power conglomerate will build three giga factories for manufacturing solar modules, wind turbines, and hydrogen electrolyzers as part of a USD 70 billion investment in clean energy by 2030.

Adani group is stepping up investments across the green energy value chain as it aims to become the world’s top renewable energy producer by 2030.

“The Adani Group has already committed USD 70 billion (for climate change and green energy).

This will see us building three giga factories in India leading to one of the world’s most integrated green-energy value chains,” he said after receiving the USIBC Global Leadership Award here.

These giga factories will “extend from polysilicon to solar modules, complete manufacturing of wind turbines, and the manufacturing of hydrogen electrolyzers,” he said.

This, he said, will generate an additional 45 GW of renewable energy to add to Adani group’s existing 20 GW capacity, as well as 3 million tons of hydrogen by 2030.

The announcement comes weeks after rival billionaire Mukesh Ambani announced a fifth giga factory as part of investment in low carbon energy.

The new giga factory for power electronics will be in addition to four giga factories announced last year for making integrated solar PV modules that will produce electricity from sunlight, electrolyzers that produce hydrogen from water, fuel cells and batteries to store energy from the grid as well as 20 GW solar energy capacity by 2025 for captive needs.

Listing out imperatives for US-India engagement, Adani said the combined value of the GDP of the two nations in 2050 is expected to be a staggering USD 70 trillion dollars or 35-40 per cent of the global economy.

By that year, the combined population of the two countries will be over 2 billion with a median age of less than 40 years as compared to the already median age of 44 in Europe and 40 in China.

“When seen through these lenses of economics and the raw power of consumption it is evident that the existing 150 billion dollars of bilateral trade between the US and India is no more than a speck in the ocean. Far more needs to be done,” he said.

On the stuck trade deal, he said he believes the two nations will resolve and mutually accept some compromises.

“What we cannot afford – is to remain stuck in the belief – that all aspects of trade and relations are being hampered as a result of tariffs,” he said.

Source Link: https://www.business-standard.com/article/companies/adani-to-build-3-giga-factories-in-india-as-part-of-70-bn-green-investment-122090700560_1.html

Last Updated: Aug 10, 2022

Assam Solar Power

There will be a joint venture for the development of solar project of 1000MW where APDCL will hold 49 per cent stake and NCL India will have the remaining 51 per cent.

The project will generate about 2,000 employment during the construction of the solar project. There will also be about 1,000 jobs when the project is operational.

The Assam government has decided to produce 2,000 MW of solar power with an investment of Rs 10,000 crore. Chief Minister Himanta Biswa Sarma has said that the capacity will be added in the next three years.

Assam wants to add 2000MW solar through two projects. The state will form a joint venture with centre-owned NLC India. It will also obtain a loan from the Asian Development Bank (ADB) for the other solar project.

Exercising the first option, the Assam Power Distribution Company Ltd (APDCL) has now collaborated with NLC India for the development of 1,000 MW of solar energy.

They will make an investment of Rs 5,500 crore. An agreement has been inked in presence of Union Minister of Coal Pralhad Joshi and Himanta Biswa Sarma. The two companies will form a joint venture to develop the project.

The Chief Minister informed that in the joint venture, APDCL will hold 49 per cent stake and NCL India will have the remaining 51 per cent. Rakesh Kumar, Chairman and MD, NLC India, said, “We are already ready to start the work with the signing of the MoU.

The total project cost will be around Rs 5,500 crore depending on the engineering, procurement and construction (EPC) bids.” The CMD also informed that the solar project will be developed in 2-3 pockets of Assam. The power production will commence in 1.5 years.

Kumar added, “The land is already available and tender documents are ready. The project will generate 1,500 million units and our target is to produce 35,000 million units in 25 years.”

He further informed that the project will generate about 2,000 employment during the construction of the solar project. There will also be about 1,000 jobs when the project is operational.

Another Project In Offing There will also be an investment of another Rs 4,000 crore in Assam in the solar sector for the generation of another 1,000 MW.

Sarma held, “This is a central government initiative and we have got in-principle approval of the ADB loan for this. This will be implemented fully by APDCL. So, Assam will see a total of around Rs 10,000 crore investment to produce 2,000 MW of renewable energy.”

Assam is currently generating about 200 MW of renewable power in total.

Giving a thrust on expanding economic development in Assam, the CM said, “We need 1,000-1,500 MW of solid power because of rising economic activities. We have requested NLCI to set up a thermal power plant of 1,000 MW catering to the demands of only Assam.”

Source Link: https://www.saurenergy.com/solar-energy-news/assam-to-invest-rs-10000cr-for-2000-mw-solar-power

Last Updated: 28 December 2021

Last Updated: DECEMBER 16, 2021

Investments in the Indian solar sector increased by 49%, in the third quarter (Q3) of the calendar year (CY) 2021, compared to Q2 2021. However, in a year-over-year (YoY) comparison, the investments increased by a massive 1,152%, according to Mercom India Research’s latest Q3 2021 India Solar Market Update.

Investments in the large-scale solar segment in Q3 2021 increased by 34% compared to Q2 2021.

The increase in investments in the solar sector is reflective of the increased project development activity that has recovered strongly from the previous quarter.

The report states that in 9M 2021, investments in the solar sector experienced a 400% increase compared to the same period in 2020 which was severely affected by COVID-19 restrictions.

Some of the deals that grabbed the headlines in Q3 2021:

• Adani Green Energy raised $750 million (~₹56.66 billion) by issuing its maiden ListCo senior green bonds.
• Through its 100% subsidiary Azure Power Energy, Azure Power Global raised $414 million (~₹31.28 billion) through dollar green bonds. The bond issuance drew interest from global investors, with more than 60% of the issuance placed with US and European investors.
• Azure Power secured $163 million (~₹12.32 billion) syndicated financing from Mitsubishi UFJ Financial Group for a 300 MW solar project in Rajasthan, India.
• ACME Solar raised around $334 million (~₹25.23 billion) for 12 solar projects through the issuance of offshore green bonds. US dollar-denominated green bonds will fund the debt investment.
• Virescent Renewable Energy Trust (VRET), a renewable energy infrastructure investment trust (InvIt) from KKR’s Virescent Infrastructure, raised ₹4.6 billion (~$62 million) from foreign and domestic investors. Alberta Investment Management Corporation (AIMCo), a Canada-based institutional investment manager, led the funding round. VRET’s initial portfolio comprises nine operational solar projects with an aggregate capacity of 395 MW. The assets are located in Maharashtra, Tamil Nadu, Uttar Pradesh, Gujarat, and Rajasthan.
• The Asian Infrastructure Investment Bank (AIIB), a multilateral development bank, approved a $50 million (~₹3.78 billion) loan facility to Italy-based Enel Green Power to develop a 300 MW solar project in Rajasthan. The project is being developed in Bikaner, Rajasthan, and is expected to be commissioned in December 2022.

Download executive summary for the Q3 2021 India Solar Market Update.

Source Link: https://mercomindia.com/solar-investments-development-activity-picked-speed/

Last Updated: DECEMBER 24, 2021

According to Bloomberg New Energy Finance (BNEF) reports, new investments made in the clean energy sector in the country stood at USD 6.2 billion in 2020, USD 9.3 billion in 2019 and USD 10.8 billion in 2018. These figures were cited by the minister in a written reply in the Rajya Sabha last month.

Getty ImagesIndia, which has an installed renewable energy generation capacity of a little over 150 GW, aims to reach 175 GW in 2022. After witnessing cloudy skies this year, the country’s renewable energy sector is expected to boom with a likely investment of over USD 15 billion in 2022 as the government focuses on electric vehicles, green hydrogen, manufacturing of solar equipment as well as achieving the ambitious 175 GW renewable capacity target.

India, which has an installed renewable energy generation capacity of a little over 150 GW, aims to reach 175 GW in 2022. Out of the total mix, 100 GW would be from solar, 60 GW from wind, 10 GW from bio-power and 5 GW from small hydro power projects.

“In 2022, we expect the investment in renewable energy to cross at least USD 15 billion,” Union Minister for Power and New and Renewable Energy R K Singh told PTI.

According to Bloomberg New Energy Finance (BNEF) reports, new investment made in the clean energy sector in the country stood at USD 6.2 billion in 2020, USD 9.3 billion in 2019 and USD 10.8 billion in 2018. These figures were cited by the minister in a written reply in the Rajya Sabha last month.

The second wave of COVID-19, which started in April, had impacted implementation of various renewable energy projects as states imposed restrictions to curb the spread of infections.

During the 2014-2019 period, renewable energy programmes and projects in India attracted investments of USD 64.4 billion, as per REN21 Renewables 2020 Global Status Report.

Nevertheless, in 2021, new opportunities emerged. Indian companies have started exploring overseas markets to raise funds and in August, ReNew Power became the first Indian renewable energy company to list on Nasdaq.

Data from the Department for Promotion of Industry and Industrial Trade (DPIIT) showed that Indian ‘Non-Conventional Energy’ sector received about USD 7.27 billion as FDI from 2014-15 up to June 2021. Out of the total amount, FDI to the tune of USD 797.21 million came in 2020-21.

On the country’s march towards achieving the renewable energy capacity of 175 GW in 2022, the minister said, “We will achieve the 175 GW of renewable energy capacity target which was set by us (excluding large hydro).”

In November, Singh said, the country achieved an installed capacity of 150 GW of renewable energy, including large hydro projects. There is 63 GW of renewable energy capacity which is under installation, which is expected to be completed next year, he noted.

At COP 21, as part of its Nationally Determined Contributions (NDCs), India committed to achieving 40 per cent of its installed electricity capacity from non-fossil energy sources by 2030. India has achieved this target in November 2021 itself.

As on November 30, the country’s installed renewable energy capacity stood at 150.54 GW, comprising solar (48.55 GW), wind (40.03 GW), small hydro power (4.83 GW), bio-power (10.62 GW) and large hydro (46.51 GW). The nuclear energy-based installed electricity capacity is at 6.78 GW.

Together, the non-fossil-based installed energy capacity is 157.32 GW, which is 40.1 per cent of the total installed electricity capacity of 392.01 GW.

India aims to have 500 GW of installed renewable energy (RE) capacity by 2030.

Talking about boosting investments in the RE space, Singh said, “We have also opened the gates for installation of RE and selling it through open access. Now, anybody can set up RE capacity and sell it wherever it wants.”

In 2021, the government introduced the production linked incentive (PLI) scheme ‘National Programme on High Efficiency Solar PV Modules’ with an outlay of Rs 4,500 crore to support and promote manufacturing of high efficiency solar photo voltaic (PV) modules.

These include the upstage vertical components like cells, wafers, ingots and polysilicon. The initiative is expected to reduce import dependence in the solar PV sector.

Pursuant to the decision, a tender inviting bids for manufacturing of high efficiency solar PV modules was issued. As many as 18 bids were received and that could help add another around 55 GW of solar PV module manufacturing capacity to the present capacity of around 11 GW.

Letter of Awards have been issued by IREDA to three successful bidders for setting up 8,737 MW capacity of fully-integrated solar PV manufacturing units. The government has plans to increase the allocation of the PLI scheme to Rs 24,000 crore.

As on November 30, 52 solar parks have been sanctioned with a cumulative capacity of 37.92 GW in 14 states. Solar power projects of an aggregate capacity of around 9.2 GW have already been commissioned in these parks.

Under the rooftop solar programme Phase-II, a total of 5.7 GW solar capacity has been set up as on November 30. Against the target of 4 GW for residential sector under Phase-II, allocation of 3.4 GW has already been made to various states/ UTs and 1.07 GW has been installed.

About 8,434 ckm (circuit kilometres) of intra-state transmission lines have been constructed and 15,268 MVA intra-state substations have been charged under the green energy corridor for evacuation of RE.

In his Independence Day speech this year, Prime Minister Narendra Modi announced the launch of the National Hydrogen Mission.

The goal is to make India a global hub for green hydrogen production and exports. The draft National Green Hydrogen Mission document is under inter-ministerial consultations.

Under the 12 GW grid-connected solar PV power projects by Central Public Sector Undertakings (CPSUs) with domestic cells and modules, the government has sanctioned around 8.2 GW projects as of November 30.

Source Link: https://economictimes.indiatimes.com/industry/renewables/brighter-days-await-renewable-energy-space-investments-likely-to-cross-usd-15-billion-in-2022/articleshow/88468211.cms

CDC Group, a U.K. government-owned development finance institution, has invested $70 million in the Green Growth Equity Fund (GGEF), India’s climate change fund. The fund is managed by Eversource Capital, a joint venture between private equity fund Everstone Group and Lightsource bp, British Petroleum’s renewable energy platform.

GGEF maintains that it already has strong climate credentials and has several investments in its portfolio. The portfolio includes Radiance, a renewable energy solution for commercial and industrial customers; e-mobility platform Greencell Mobility; utility-scale renewable energy platform Ayana; Integrated waste management platform Everenviro; and wastewater management platform Kathari.

“India is a fascinating market for renewable energy. Our investment in GGEF will consolidate CDC’s role in India as a staunch supporter of the country’s low carbon future,” said Srini Nagarajan, Managing Director and Head of Asia, CDC Group.

GGEF will use the investment to finance the development of ‘green infrastructure’ companies in India. GGEF claims it is different from many funds in that it adopts a ‘platform model.’ This means that the fund sets up a company from scratch in a sector of interest and then grows the platform by acquiring other companies in the sector.

According to GGEF, the platform can achieve operational efficiencies and scale by consolidating many smaller companies with similar business models under one roof. This business model is key to improving profitability and building a company of sufficient size to attract a buyer. The environmental, social, and (corporate) governance (ESG) standards of investees will also be brought to a common standard across the platform.

Dhanpal Jhaveri, Chief Executive, Eversource Capital and Vice President, Everstone Group, said, “We are committed to bringing positive climate impact by catalyzing capital for and investing in high growth platforms and businesses. These businesses will contribute to the Indian government’s ambitious climate goals and renewable energy targets. We want to thank CDC for reposing their trust in us. Their fund commitment to our Green Growth Equity Fund is a testament of the hard work put in and the results achieved by the EverSource team in a short time.”

Last month, the CDC announced its ambition to invest up to $1 billion in climate funding to India over the next five years. This commitment will fund climate mitigation projects and businesses and enhance national efforts to align with the Paris Agreement. Over the past four years, CDC has invested more than $1 billion in climate finance across Africa and South Asia. CDC already has a $2 billion portfolio in the country.

Earlier, CDC Group had announced a $30 million facility to Tata Cleantech Capital Limited (TCCL) through its directed green lending facility. This first-of-its-kind facility will enable Tata Cleantech Capital to offer loans to businesses that focus on e-mobility solutions and water and energy efficiency to help mitigate climate change.

CDC has invested in Bengaluru-based Ayana Renewable Power, which was launched in January 2018. It had initially committed to invest $100 million into the company. In December 2020, the CDC announced equity funding of $70 million (~₹5.1 billion) in Ayana.

Source Link: https://mercomindia.com/cdc-invests-indias-green-equity-fund/