Renewable energy certificate sales down 50% to 3.49 lakh in June

Renewable energy certificate sales down 50% to 3.49 lakh in June

Sales of renewable energy certificates dipped 50 per cent to 3.49 lakh units in June compared to 6.98 lakh in the same month a year ago, according to official data. Renewable energy certificate (REC) is a type of market-based instrument. One REC is created when one megawatt hour of electricity is generated from an eligible renewable energy source.

According to official data, a total of 2.29 lakh RECs were traded on the Indian Energy Exchange (IEX) in June, compared to 4.19 lakh in the same month of 2019. Power Exchange of India (PXIL) recorded sales of around 1.2 lakh RECs in June as against 2.79 lakh earlier.

IEX and PXIL are engaged in trading of RECs and electricity. REC trading is conducted on the last Wednesday of every month. The IEX and PXIL data showed that RECs witnessed higher supply, with sell bids exceeding buy bids. There were buy bids for over 2.29 lakh RECs against sell bids for over 8.48 lakh RECs in June this year.

Similarly, the supply was high at PXIL. There were buy bids for over 1.22 lakh RECs and sell bids for over 4.49 lakh units for the month. Overall supply for RECs was high as the total buy bids at both power exchanges was over 3.4 lakh units against sell bids of over 12.97 lakh units.

Under the renewable purchase obligation (RPO), bulk purchasers like discoms, open access consumers and capacitive users are required to buy a certain proportion of RECs. They can buy RECs from renewable energy producers to meet the RPO norms. The proportion of renewable energy for utilities is fixed by the central and state electricity regulatory commissions.

The REC mechanism is a market-based instrument to promote renewable sources of energy and development of market in electricity. It provides an alternative voluntary route to a generator to sell its electricity from renewable sources just like conventional electricity and offer the green attribute (RECs) separately to obligated entities to fulfil their RPO.

Source Link:

Gujarat to become global hub for renewable energy sector in next 3-5 years

Gujarat to become global hub for renewable energy sector in next 3-5 years

Gujarat is making rapid strides in the renewable energy (RE) sector, with a slew of mega green energy projects enlisted until 2030, given that policy initiatives and strong investor support remain throughout.


  • Gujarat will be a global hub for the renewable energy industry in the next 3-5 years
  • Installed capacity to for power generation through RE sources will reach 61,000 MW by 2030
  • Reliance Industry Ltd extended their interest in Gujarat’s RE progress last month

Ahmedabad: The renewable energy (RE) sector is witnessing rapid strides on behalf of Gujarat that has entered with an array of mega green energy projects. These projects include issues related to electricity generation and equipment manufacturing. Gujarat’s RE power generation capacity, backed by policy initiatives and strong investor support, is expected to jump to 38,466 MW by 2025 and 61,466 MW by 2030, as per estimates by the state government.

The state’s present total installed power generation capacity from renewable energy sources- solar, wind, hydel, biomass and bagasse, is about 13,152 MW. As told by Mamta Verma, principal secretary, Energy and Petrochemicals department, Gujarat government, told the TOI.

“In the next 3-5 years, Gujarat will certainly be a global hub for the renewable energy sector. Our installed capacity to generate power from renewable energy sources is expected to surge to over 38,000 MW by 2025 and over 61,000 MW by 2030. These estimates are based on project plans that have already been finalized. The estimates are likely to be revised soon given the influx of fresh proposals.” She added, “with the state and central government’s policies and positive approach, Gujarat’s dependency on non-renewable energy will be negligible or zero in the coming years,” he further noted.

Several mega projects are being implemented across the state to boost electricity generation from renewable energy sources. The foundation stone for a 30,000 MW hybrid (solar and wind) renewable energy park in Kutch, claimed to be the world’s largest of its kind, was laid by Prime Minister Narendra Modi.

The park, spread across 72,600 hectares, is being set up near the Indo-Pak border, around 90 km from Khavda. The project is estimated to attract a Rs 1.5 lakh crore investment.

Four power distribution companies, affiliated with the state-run Gujarat Urja Vikas Nigam Ltd (GUVNL), recently signed power-purchase agreements (PPAs) for 3,979 small-scale solar power projects (0.5-4 MW) with a total generation capacity of 2,500 MW. Expected to be commissioned within the next 18 months, these projects will bring an investment worth Rs 10,000 crore in sectors associated with green energy.

Work-related to the development of solar energy parks at Dholera near Ahmedabad, and Raghanesda and Harshad in Banaskantha. Gujarat, the top state in solar rooftop installations, is also working on a slew of other solar and wind energy projects auctioned by the Solar Energy Corporation of India.

Last month, Mukesh Ambani-led Reliance Industries Limited (RIL) announced that the company has started developing a 5,000-acre Dhirubhai Ambani Green Energy Giga Complex in Jamnagar. It will consist of four giga factories for manufacturing solar photovoltaic modules, energy storage batteries, fuel cells, and electrolyser.

Over the next three years, RIL will invest Rs 60,000 crore in these initiatives. It will also invest another Rs 15,000 crores to provide infrastructure and utilities for manufacturing ancillary material and equipment for supporting these giga factories. By 2030, at least 100 GW of solar energy in India will be established and enabled by Reliance.

Gujarat’s average demand for power hovers around 16,500 MW and renewable power helps meet at least one-third of this requirement. By 2030, its average power demand is estimated to rise to 28,500 MW, and the state’s RE power generation capacity will be more than double the average power requirement.

Goldi Solar, a solar panel manufacturer based in Surat, is planning to increase its manufacturing capacity from 500 MW to 2,500 MW in phases.

Source Link:

Global Green Bond Issuance Reached a Record High of $269.5 Billion in 2020: Report

Global Green Bond Issuance Reached a Record High of $269.5 Billion in 2020: Report

Global green bond issuance reached a record high of $269.5 billion in 2020, a 1.12% increase compared to $266.5 billion in 2019, due to a late surge in the second half of 2020, Climate Bonds Initiative has said in a report.

Green bonds are financial instruments designed to raise money for climate and environmental projects.

“The impact of COVID-19 in 2020 proved a huge economic and social negative. In that context, the resilience of green finance markets led to a record year of issuance. 2021 may enable a sustained resurgence,” the report said.

The U.S. President Joe Biden’s announcement to rejoin the Paris Climate Accord, governments, policymakers, and investors’ growing focus to support the decarbonization of energy-intensive industries can play key roles in increasing green bond issuance in 2021.

In 2020, the cumulative green bond issuance crossed over $1 trillion and stood at $1.05 trillion, an average annual growth of 60% since 2015.

Green Issuance 2015-2020

Last year, the United States led the way by issuing green bonds with a total value of $51.1 billion, followed by Germany at $40.2 billion and France at $32.1 Billion. China and the Netherlands issued green bonds worth $17.2 billion and $17 billion, respectively. The top 20 countries cumulatively issued green bonds worth $243.8 billion, out of total green bond issuance of $269.5 billion.

Fannie Mae, a U.S. government-sponsored enterprise, issued the most green bonds with a total value of $13 billion, followed by Germany, with its debut sovereign green bond issuance worth $12.8 billion.

The proceeds of green bonds were mainly utilized in the energy sector, with investments worth $93.6 billion, representing 35% of total issuance in 2020, followed by low-carbon buildings amounting to 26% of total issuance, with investments worth $70.6 billion. Low-carbon transport, with investments worth $63.7 billion, represented 24% of total issuance.

Use of Proceeds 2020

According to the report, urban transport operators, including New York MTA, SNCF, and LA MTA, dominated the list of top certified issuers green bond issuers. Societe du Grand Paris, a French government entity with green bond issuance worth $12.2 billion, was the biggest certified issuer in 2020.

The climate bonds certification program, a labeling scheme for bonds and loans, continues to grow in line with the market as $150 billion of certifications was passed in 2020, a 20% annual increase as of October 2020.

Green bonds have been an attractive source of funds for renewable energy companies in India and globally. In October 2020, independent power producer ReNew Power raised around $325 million through overseas green bonds, and CLP Wind Farms secured ₹2.96 billion (~$40.51 million) through its green bonds.

Source Link:

World energy transitions outlook: 1.5°C pathway

World energy transitions outlook: 1.5°C pathway

This report by IRENA outlines a pathway for the world to achieve the Paris Agreement goals and halt the pace of climate change by transforming the global energy landscape. It presents options to limit global temperature rise to 1.5 degrees Celsius and bring CO2 emissions to net zero by 2050

The World Energy Transitions Outlook outlines a pathway for the world to achieve the Paris Agreement goals and halt the pace of climate change by transforming the global energy landscape. This report presents options to limit global temperature rise to 1.5°C and bring CO2 emissions to net zero by 2050, offering high-level insights on technology choices, investment needs, policy framework and the socio-economic impacts of achieving a sustainable, resilient and inclusive energy future. This Outlook presents several prerequisites which underpin the theory of change behind IRENA’s 1.5°C Pathway.

Source Link:

Reliance to Foray into Solar, Battery Storage, Green Hydrogen, and Fuel Cell Production

Reliance to Foray into Solar, Battery Storage, Green Hydrogen, and Fuel Cell Production

Reliance Industries (RIL) will invest ₹750 billion (~$10 billion) to build an integrated solar photovoltaic (PV) factory, advanced energy storage battery manufacturing unit, green hydrogen, and fuel cell facility in Gujarat’s Jamnagar. The plans were announced by the Chairman, Managing Director, and largest shareholder of RIL, Mukesh Ambani, during the 44th Annual General Meeting of the shareholders.

Ambani informed his shareholders that RIL has started developing the Dhirubhai Ambani Green Energy Giga Complex on 5,000 acres of land in Jamnagar. The project is slated to be amongst the largest such integrated renewable energy manufacturing facilities globally.

RIL has plans to build four factories of gigawatt-scale that will manufacture and fully integrate critical components of the ‘new energy’ ecosystem.

One of them would be an integrated solar PV module factory. The first integrated solar PV gigawatt factory will start with converting raw silica to polysilicon, which we will then convert to ingot and wafers. These wafers would be used to make high-efficiency solar cells and finally assembled into high-efficiency solar modules.

The second set-up is meant for housing an advanced energy storage battery factory. RIL is exploring new and advanced electrochemical technologies that can be used for such large-scale grid batteries to store energy. The company plans to collaborate with global leaders in battery technology to achieve the highest reliability for round-the-clock power availability through a combination of generation, storage, and grid connectivity.

The third unit – an electrolyzer factory – would be used to produce green hydrogen. According to the company, green hydrogen is a unique energy vector that can enable deep decarbonization of many sectors such as transportation, industry, and power. One of the most common methods of generating green hydrogen is by electrolysis of pure water through electrolyzers. RIL will set up an electrolyzer gigawatt factory to manufacture modular electrolyzers of the highest efficiency and lowest capital cost. These can be used for captive production of green hydrogen for domestic use and global sale.

The fourth facility – a fuel cell factory – would convert hydrogen into motive and stationary power. “In the new era, fuel cells will progressively replace internal combustion engines. Fuel cell engines can power automobiles, trucks, and buses. They can also be used in stationary applications for powering data centers, telecom towers, emergency generators, and microgrids and industrial equipment,” Ambani said.

RIL would invest the amounts in these initiatives over the next three years to realize an end-to-end renewable energy ecosystem.

The Jamnagar complex will provide infrastructure and utilities to manufacture ancillary material and equipment needed to support these gigawatt factories to ensure all critical materials are available in time. RIL will also lend support to independent manufacturers with the right capabilities to be part of the ecosystem.

“RIL would invest an additional ₹150 billion (~$2.02 billion) in the renewables value chain, partnerships, and future technologies, including upstream and downstream industries. “Our overall initial investment from our internal resources in the new energy business will be ₹750 billion (~$10.11 billion) in three years,” Ambani added.

RIL also has plans to build two additional divisions.

The ‘Renewable Energy Project Management and Construction Division’ will provide gigawatt-scale end-to-end solutions for large renewable plants across the world. It will enable and partner with thousands of green micro, small and medium enterprise entrepreneurs, who can deploy kilowatt to megawatt-scale solutions in agriculture, industry, residences, and transportation.

The Renewable Energy Project Finance Division will provide financial solutions to the stakeholders providing a platform to source long-term global capital for green investments at attractive terms.

Ambani said, “We will seek support from our relationship banks and global green funds for this purpose. Simultaneously, we will also facilitate a platform to provide financing for the entire ecosystem of small businesses and entrepreneurs who invest alongside us.”

In 2017, the Indian Renewable Energy Development Agency (IREDA) provided a loan to the tune of ₹3 billion (~$45.7 million) to Reliance Money, a brand by Reliance Commercial Finance Limited, a subsidiary of Reliance Capital Limited, for renewable energy and energy efficiency projects. To date, Reliance Commercial Finance Limited has financed or co-financed renewable energy projects of more than 1,800 MW, including both wind and solar energy projects, according to the company.

The previous renewable energy investment of RIL was the acquisition of Kanoda Energy Systems a company with a presence in the fields of solar advisory, product design, and technology validation, engineering, procurement & construction, and operation & maintenance (O&M) of solar projects.

With the announcement of the production-linked incentive program of the government, large conglomerates and joining the renewable energy manufacturing drive.

Source Link:

Himachal Pradesh commissions 50 KW rooftop solar project in Solar

Himachal Pradesh commissions 50 KW rooftop solar project in Solar

New Delhi: Himachal Pradesh State Electricity Board (HPSEB) inaugurated a 50 kilowatt (KWp) capacity solar rooftop project in Solan under the centre’s Integrated Power Development Scheme (IPDS) scheme.

The project was inaugurated by Sukh Ram, Power Minister, Himachal Pradesh and P K Singh, Director – Commercial & Projects (Additional Charge), PFC Ltd. The inauguration ceremony was also attended by senior officials from HPSEBL and PFC.

“A total of 152 Photo Voltaic Panels are installed which will produce approximately 165 Kwh of electricity on a daily basis,” PFC said in a statement. Under the IPDS scheme, HPSEBL has so far installed rooftop solar plants of 1,107 kWp capacity in the state.

Source Link: