SOLAR MONTHLY UPDATE | February 2016

Transcription

SOLAR
MONTHLY UPDATE
Vol. I
Issue III
February 2016
Creating value,
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supply chain ensuring an effective and efficient
capital structure.
Our services include:
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Private Equity Advisory

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Inside this Issue:
Solar News Round Up
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Solar State Focus - Andhra Pradesh
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Company Limelight - Welspun
Renewables
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Foreign Investor Corner - India Budget
2016 : Solar Round-up
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Technology Update - Grid Connected
Solar Storage Systems - Re-emerging
Trend
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Solar Tender Tracker January-March 2016
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SOLAR NEWS ROUND UP
INDIA'S SECI ANNOUNCES WORLD'S FIRST
SOLAR TENDER WITH ATTACHED BATTERY
STORAGE CLAUSE IN AP STATE
For the first time, solar storage will be part of a
tender that state-run Solar Energy Corporation of
India (SECI) has floated for 750 MW of installed
capacity at Ananthapuramu Solar Park in Kadapa
district of Andhra Pradesh, India.
It is the first hybrid tender of the SECI in which
every bidder will have to include a small storage
system alongside its solar plant, adding up to a
total of 100 MW installed storage capacity. This
tender is probably the first of its kind in the world.
WORLD'S LARGEST SOLAR PLANT TO
SUPPLY POWER TO 1.1 MILLION PEOPLE
Morocco's initiative to build the largest solar plant
in the world has moved a step forward with the
first phase of the Noor Concentrated Solar Power
(CSP) plant Noor 1, going live on February 9, 2016.
Noor 1, in the town of Ouarzazate, will provide 160
MW of the ultimate 580 MW capacity due from the
plant by 2018. Once completed, the US$ 9 billion
solar array will supply energy to 1.1 million people
and cut carbon emissions by 760,000 tons per
year. The solar plant is funded by the World Bank
and is expected to eventually export energy to
Europe.
SECI TO RE-OPEN 50 MW DCR TENDER IN
MAHARASHTRA FOR BIDDING AMID
SUBDUED INTEREST IN ROUND 1
Bids were submitted last month for a 500 MW
tender under the Viability Gap Funding (VGF)
scheme to Solar Energy Corporation of India
(SECI). In this tender, 50 MW was reserved for
Domestic Content Requirement (DCR) category
and remaining 450 MW was for open category.
However, the bidder interest in this tender was
highly subdued as compared to other recent
tenders. Only one participant (Adani Power) bid for
the 50 MW under DCR category. This tender for
DCR category will now be re-opened for bidding.
The main reason is believed to be the downward
revision in tariff for VGF based projects to a fixed
`4.43/kWh from the earlier `5.43/kWh for the first
year with an escalation of `0.05/kWh for next 20
years (equivalent to a Levellised tariff of INR
5.79/kWh).
INDIA TO TENDER PROJECTS OF ALMOST 4
GW IN FEBRUARY –MARCH 2016
During the remaining period of the current fiscal,
as much as 3,790 MW of solar power generation
capacity is expected to be added by March-end,
taking total installed solar power generation
capacity of the country to 9,038 MW from existing
5,248 MW, by FY 2016-17 according to a status
report by MNRE. Of the 4,431MW that the
Government is expected to tender in 60 days,
starting 1 February, 3,156 MW will be tendered by
the SECI, while 1,050 MW will be by NTPC, 150 by
the Bihar Government and 75MW by the Central
Government's PSU's.
Tendering for solar projects totalling a capacity of
15,177 MW have already been completed and a
total capacity addition of 12,161 MW is expected
during the FY2016-17.
INDIA APPROVES 33 SOLAR PARKS ACROSS 21
STATES WITH A TOTAL CAPACITY OF 19.9 GW
MNRE has now approved a total of 33 solar parks
in 21 states with a total capacity of 19.9GW. This
is an increase of six from the 27 solar parks that
had been approved at the end of last year with an
aggregate capacity of 18.4GW according to the
Parliamentary Consultative Committee of the
MNRE and Ministry of Power.
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SOLAR STATE FOCUS – ANDHRA PRADESH
AP COMMISSIONED SOLAR CAPACITY BY
SCHEME
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GRID CONNECTED SOLAR PROJECTS
SANCTIONED BY DISTRICT
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THE ANDHRA EDGE IN SOLAR
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SOLAR PARK
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ANDHRA PRADESH SOLAR DISTINCTIONS
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Prior to 2010, Rajasthan generated power only
from traditional sources and required to procure
power from other states. Since implementing an
initial round of 46 solar projects under Jawaharlal
Nehru National Solar Mission (JNNSM), solar
power acted as a springboard for Rajasthan to
turn into a power surplus state and overtake
Gujarat as the state with the largest
commissioned solar capacity at the end of 2015.
Total Commissioned Solar Capacity till
30-11-15 (MW) by Scheme
During the year 2014, APTransCo (Andhra Pradesh
Transmission Corporation) has entered into
agreements with IPPs to install 619 MW of solar
power. NTPC also entered into agreement in the
year 2015 with APTransCo to install 250 MW plant
(first phase of the 1,000-MW ultra-solar power
project) in the economically backward Anantapur
district.
Andhra Pradesh has an installed capacity of
475.74 MW of solar power as of January 1 2016.
Andhra Pradesh - Grid Connected Solar Projects
sanctioned up to 31.12.2015 by Capacity (MW)
Kurnool, 1
Kadapa, 5
Nellor, 5.7 West
Godavari, 3
Krishna, 3.15
Guntur, 1
Chitoor, 10.7
Ananthapur, 123.4
Andhra Pradesh
Rest of India
2,347.19
Source: NREDCAP, Renewable Energy Status as of 31.12.2015http://nedcap.gov.in/PDFs/RE_Status.pdf
1,409.03
* Excludes projects commissioned after December 2015 including
UMPPs totalling 2.5 GW capacity.
658.72
94.75
MNRE
Projects
329.47
State
Policy
150.00
38.70
RPO
REC
Scheme
98.03
2.82
Pvt. initiative
(Rooftop)
109.51
10
CPSUs
Source: MNRE
Since 2014, Andhra Pradesh Government, with a
focus on the carbon credit market, embarked on an
ambitious green power programme. The State
unveiled plans to produce 9,000 MW solar and
wind power by 2019 to earn clean development
mechanism (CDM) benefits from carbon credit
exchanges. It plans to establish a 'Green Corridor'
with several 'clean energy' power projects. The
target is to produce 5,000 MW solar power and
4,000 MW wind power through joint ventures with
major companies, according to the Principal
secretary-energy, AP. Major Government-owned
companies such as NTPC and SECI have also
added their might to this project by planning their
own large scale solar power projects in the state.
The Andhra Pradesh edge in Solar Power
Key Advantages of AP as a key solar power
destination are:
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Availability of about 300 sunny days in a year
with solar insolation of more than
5kWh/m²/day.
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Amongst the best performing power
distributing companies in India (APEPDCL
(Andhra Pradesh Electricity and Power
Distribution Company Limited) and APSPDCL
(Andhra Pradesh State Power Distribution
Company Limited).
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An efficient and strong evacuation
infrastructure that can facilitate distributed
generation.
AP is also chosen to be the home of 4 of the 35
solar parks that are being developed by the
Government of India.
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promoted by SoftBank of Japan made its debut
in Indian solar market with a tariff of `4.63 per
kWh for 350 MW in open category. For its role,
the Corporation has bagged the Best
Government Nodal Agency award for Solar
under NSM-Solar Excellence.
The following table gives the trend in solar power
project bids by state till date. The table highlights
AP bids over the years and how it remains a
trendsetter in lowering bids over the years.
Andhra Pradesh Solar Distinctions
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APSPCL has achieved the distinction of
sanctioning 4,000 MW of solar power
generation parks under the Ministry of New and
Renewable Energy. In doing so, it has been
chosen as the best Government nodal agency
for solar energy push.
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Pivotal Role in lowering tariffs in Indian Solar
Market: In the Kurnool Park, a lowest tariff of
`4.63 per kWh was quoted by Sun Edison for
500 MW in Phase-1. In Phase-2, SB Energy
Table 2 : Trend in Solar Power Project Bids since 2010 to January 2016
Name
Year
NSM Batch 1
NSM Batch 2
Orissa Phase 1
Orissa Phase 2
Karnataka
Madhya Pradesh
Dec '10
Dec '11
Mar '12
Dec '12
Apr '12
Jun '12
Tamil Nadu
Rajasthan
Mar '13
Mar '13
Apr '13
June '13
Aug '13
Aug '13
Jan '14
Oct '14
Andhra Pradesh
Punjab Phase 1
Uttar Pradesh Phase 1
Karnataka Phase 2
Madhya Pradesh Phase 2
Andhra Pradesh Phase 2
Karnataka
Telangana
Punjab (Capacity 5-24 MW)
Punjab (Capacity 25-100 MW)
NTPC Anantapur
Uttar Pradesh Phase 2
Madhya Pradesh
Telangana Group 1****
Telangana Group 2****
Punjab
Uttarakhand
AP-500 MW Bundling scheme******
AP-350 MW Bundling scheme*******
AP-150 MW Bundling scheme
(DCR)********
Haryana (State scheme)
Rajasthan-420 MW Bundling
UP-100 MW Bundling
Capacity on
Offer (MW)
150
350
25
25
60
125
150
75
226
270
130
130
100
500
Oct '15
Nov '15
Dec '15
Dec '15
500
500
100
100
250
215
300
500
1500
500
170
500
350
150
Dec '15
Jan '16
Jan '16
150
420
100
Nov'14
Nov'14
Feb'15
Feb '15
May '15
June '15
June '15
August '15
August '15
Sept '15
Highest Bid
(`/KWh)
12.76
9.39
8.98
9.50
8.50
12.45
14.50
8.25
15.99
8.75
9.33
8.05
6.97
5.99**
(7.03 Level.)
7.12
6.90
7.45
7.56
-
Lowest Bid
(`/KWh)
10.95
7.49
7.00
7.28
7.94
7.90
5.97
6.45
6.49
7.20
8.01
5.50
6.47
5.25**
(6.17 Level.)
6.71
6.46
6.88
6.88
-
Weighted Avg.
Price (`/KWh)
12.16
8.79
8.36
8.73
8.34
8.05
6.48*
6.45 (L1)
6.49 (L1)
8.41
8.90
6.87
6.86
5.75**
(6.75 Level.)
6.94
6.72
7.17
7.16
6.16*** (L1)
8.60
5.64
5.90
5.90
5.98
5.99
4.63
4.63
5.13
7.02
5.05
5.50
5.20
5.09
5.57
4.63
4.63
5.12
8.04
5.36
5.73
5.62
5.65
5.80
4.63
4.63
5.12
5.00
4.36
4.78
5.00
4.35
4.78
5.00
4.35
4.78
*5% escalation for 10 years
** 3% escalation for 10 years. Separate L1 for 9 districts
*** EPC Bids with Domestic content requirement. Capital subsidy of Rs. 1 Cr/MW
Source: MNRE
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Solar Park
A joint venture between SECI (Solar Energy
Corporation of India), APGENCO (Andhra Pradesh
Power Generation Corporation Limited) and
NREDCAP (New & Renewable Energy
Development Corporation of Andhra Pradesh Ltd.)
Name
Has been formed for development of Solar Park in
Andhra Pradesh. The equity of 50% shall be held by
SECI, 41% by APGENCO and 9% by NREDCAP. The
JV company is known as Andhra Pradesh Solar
Power Corporation Limited (APSPCL). Details of
the solar parks are given in table below:
Location
Proposed Capacity (MW)
Identified Land Area
Anantapur Solar Park
NP Kunta (Anantapur) Galliveedu (Kadapa)
9000 acre (Approx.)
Kurnool Solar Park
Pinnapuram (Kurnool)
1500
1000
5000 acre (Approx.)
Source: MNRE
A.P. Solar Policy 2015
Andhra Pradesh Solar Power Policy Highlights 2015
Description
Particulars
Operation Period
Nodal Agency
Single Window Clearance
Applicable for 5 years. SPP's* will be eligible for incentives for a period of 10 years.
NREDCAP
All approvals/clearances will be disposed within 30 days from date of registration.
Eligibility for REC
All projects developed with the below incentives will be eligible for REC benefits.
Land Availability
The project developer will be responsible for acquiring the land required for the project.
Evacuation Facility
Entire construction cost of evacuation facility to be borne entirely by developer.
Incentives Offered
Wheeling Charges
For captive use or third party sale within the State, wheeling charges will be exempted.
Distribution losses
Distribution losses for injection at 33 kV or below will be exempted.
Banking
Open access
CSS
100% banking for all Captive and Open Access year round. Banking charges @2% of
energy delivered will be adjusted.
Intra-state clearance for the whole tenure of the project or 25 years
whichever is earlier will be granted.
For third party sale CSS exempted for captive projects for a period of 5years.
Industry Status &
PPP Status
SPP’s* shall be treated as eligible industry under the incentives available to
industrial units. PPP status will be provided for projects selling power to DISCOM.
Must Run Status
Injection from Solar Projects will be considered to be deemed scheduled.
Pollution Clearance
SPP's will be exempted from obtaining pollution clearances.
Solar Power Projects (SPP's)*
Sale of Power to
DISCOM's
Government will promote setting up of SPPS's for sale of power to DISCOM's. DISCOM's
will procure around 2000 MW of solar power capacity in a phased manner within
the next 5 years.
Third Party sale
for captive use
Power producers will be encouraged to set up SPP's for captive use within the State or
third party sale within and outside AP State.
Solar Parks
AP Govt. will develop Solar Parks and add capacity of 2,500 MW over the next 5 years.
Solar Rooftop
Projects
Solar pump sets
Solar manufacturing
The Govt. will promote solar rooftop systems on gross and or net meter basis. A max. of
1MWp will be allowed at a single location.
50,000 solar powered pump sets will be operational in the State within 5 years.
The Govt. will promote the solar manufacturing facility. Incentives like exemption
from electricity duty for 10 years, and priority land allotment.
The policy also gives directions about migrating projects from solar policy 2012 i.e. projects commissioned after 30th June 2014,
to the new policy. The policy has given a good scope for availing OA due to exemption from all major charges and losses, besides
providing deemed scheduling and banking facility.
Source: Reconnect Energy
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COMPANY LIMELIGHT – WELSPUN RENEWABLES
About the Company
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About the Company
Headquarters
Key Personnel
Products
Installed Solar Capacity
Parent
Website
Solar Projects
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Director's Quote
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Welspun Renewables (A Pvt Ltd Company)
New Delhi & Mumbai
Vineet Mittal, Vice Chairman
Renewable Energy Generation - solar and wind
700 MW, Generated 1.737 billion units till date
Welspun Energy Pvt. Ltd.
www.welspunrenewables.com
About Welspun Renewables
Welspun Renewables is a leading independent
developer of renewable energy projects. In line
with Prime Minister Narendra Modi's 175 GW
renewable vision, the organization is committed to
establishing mega renewable capacities across
the country. In the next few years Welspun
Renewables plans to set up 5000 MW renewable
capacities,of this 1000 MW capacity will be
commissioned within this year.
In a short span of time, the clean energy generator
has pioneered solar power generation, both in
terms of plant size and total installed capacity. Its
power plants are among the highest generating
renewable energy projects in the country and have
been built ahead of committed timelines, thereby
helping the country meet its clean energy targets.
Welspun Renewables holds the distinction of
winning and operating one of the world's largest
solar projects of 151 MW (DC).
Accreditations
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A+ Certificate from CARE Credit Ratings
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The first organization in the clean energy space
to be ISO 9001:2008 certified
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The only corporate in India with a renewable
energy program registered with UNFCCC
(United Nations Framework Convention on
Climate Change) as a CDM (Clean Development
Mechanism) Program of Activities
Notable Investors and Funding of the
Company
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Global institutions like General Electric Financial
Services and Asian Development Bank have
chosen to invest in the company, marking
another First in India's solar energy industry.
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Recently Welspun Renewables received another
round of funding of USD 617 million through a
combination of debt and equity infusion by the
promoters, existing and new investors.
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General Electric Financial Services: In April 2014,
GE Energy Financial Services invested US$24
million in 151 MW (DC) solar photovoltaic
project in Neemuch, Madhya Pradesh
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Asian Development Bank (ADB): In June 2014,
ADB invested US$50 million equity into Welspun
Renewables, making it their largest direct equity
investment in the renewable energy sector
Solar Projects
Located in high solar irradiation sites, Welspun
Renewables has establishedsolar power plants
across the states of Gujarat, Rajasthan, Madhya
Pradesh, Maharashtra, Karnataka, Punjab, Tamil
Nadu and Andhra Pradesh. Some of its projects are
laying benchmarks in clean energy generation
across state territories.
1. Madhya Pradesh - 151 MW (DC) Neemuch
solar project
One of the largest solar power projects in the
world at the time of its commissioning. It
catapulted the state of Madhya Pradesh from
negligible capacity to one of the leaders in
renewable energy generation
2. Rajasthan –126 MW Pratapgarh wind project
One of the largest wind power projects to come
up in the state
3. Rajasthan - 55 MW (DC) Phalodi solar project
When commissioned this was one of the largest
solar projects to come up in the county
4. Maharashtra - 52 MW (DC) Baramati solar project
Largest solar power project to be built under the
Public Private Partnership model in the state
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5. Punjab – 34 (DC) MW Bathinda solar project
The largest solar power project to come up in
the state as yet
6. Karnataka - 19 MW (DC) Chitradurga solar project
Largest solar project to be commissioned in the
state at the time of its commissioning, the
power plant is generating enough energy to
help the state meet its summer power needs
The total generation from the company's solar &
wind plants till date was 1.737 billion units.
Through this the company managed to offset
nearly 15,11,2784 tonnes of CO2 emissions.
Company Milestones
2015
Commissioned 126 MW Pratapgarh wind project
Bathinda 52 MW (DC) solar project inaugurated
Commissioned Baramati 52 MW (DC) power plant, Maharashtra's largest solar project under PPP Mode
Awarded IFC-Mint Strategy Award 2015 in the Utilities, Gas and Power Category
Vineet Mittal awarded Global Solar Leadership Award 2015
Welspun Renewables Recognized with Asia Renewable Energy Excellence - Outstanding Achievement Award
'Solar Project of the Year' awarded to Baramati 52 MW (DC) power plant
2014
One of the world's largest 151 MW (DC) solar projects inaugurated
General Electric's (GE) first Indian solar investment with Welspun Renewables
Commissioned Karnataka's largest 19 MW (DC) solar project
Welspun Renewables ISO 9001:2008 certified
Awarded 'Golden Peacock Innovative Service Award' 2014
Asian Development Bank makes its 1st equity infusion ever in Welspun Renewables
Foundation stonelaid by deputy CMfor 52 MW (DC) Baramati Project
Welspun Renewables marks entry into Solar Rooftop Business by commissioning 3 projects in record time
IPPAI Power Awards 2014 presented for innovations in solar project construction
Vineet Mittal named 'Solar Power Man of the Year 2014’
2013
MNRE and Rajasthan Chief Minister dedicate Phalodi 55 MW (DC) solar project to the nation
MNRE's 'The Solar Power Developers Award' presented by Honorable Prime Minister of India
UNFCCC registers India's First Ever Dual Scale renewable energy PoA (Program of Activities)
Commissions 20 MW wind project in Rajasthan
Collaborated with Indian Council of Forestry Research & Education for increasing India's forest cover
'Best Solar Power Producer' Award by IPPAI
2012
Commissioned 15 MW (DC), 5.5 MW (DC) and twin 5 MW (DC) solar capacities in Gujarat, Andhra Pradesh and Rajasthan
'Outstanding contribution as a Solar Power Project Developer' by Government of Gujarat's Energy &
Petrochemicals Department
ASSOCHAM Global CSR Excellence Award 2012
'Solar Power Project of the Year' bestowed by Asian Power for its 15 MW Anjar solar project, Gujarat
Commissioned additional 30 MW (DC) solar capacity in Gujarat
Director's Quote
With the falling solar tariffs, what do you foresee as the future for solar power market in India in terms of financial
viability?
“India has successfully managed to bring solar closer to grid parity with its aggressive implementation polices.
With the setting up of 175 GW capacity target by the Honorable Prime Minister, the tariffs are sure to further
reduce sustainably. However, the Government needs to arrest the current aggressive downward tariff spiral. In
present circumstances, setting up projects at such aggressive tariffs will not be financially feasible for developers.
We need to refer to historical coal based UMPP scenario. Aggressive tariffs were quoted by developers, but the
projects are running into major losses. Such a scenario adversely affects the sector's growth and inadvertently the
country's development agenda.”
- Vineet Mittal, Vice Chairman, Welspun Renewables
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FOREIGN INVESTMENT CORNER
India Budget 2016 : Solar round-up
Budgetary allocation for Solar Industry : Rs.4000
crore
Physical Budgetary Target for Solar Power
Capacity FY 2016-17: 12,000 MW
Key budgetary measures that are likely to directly
or indirectly impact the Indian solar industry:
An increase in the clean energy cess or clean
environment cess on coal from Rs.200 to
Rs.400 per tonne – likely to impact solar power
developers favorably as it is likely to drive up the
price of coal by 6 to 7 % or 0.20 paise per unit
and thereby that of power from coal fired
plants, making solar power competitive
alternative
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Lowering of the accelerated depreciation (AD)
benefit (while computing taxable income) from
80% to 40%. Until now renewable energy
developers were allowed to claim 80%
depreciation of the installation cost of a plant in
the first year itself. The benefit currently being
availed largely by roof-top developers could
have a small adverse impact on the solar
rooftop segment. However, the industry is
deemed by experts to have matured enough to
not be affected hugely by it
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IREDA to have more funds to finance solar
projects: To augment infrastructure spending
further, Government will permit mobilization of
additional finances to the extent of Rs.31, 300
crore by NHAI, PFC, REC, IREDA, NABARD and
Inland Water Authority through raising of bonds
during 2016-17
l
New manufacturing units to be provided 5% tax
incentive: The new manufacturing companies
which are incorporated on or after 1.3.2016 are
proposed to be given an option to be taxed at
25% + surcharge and cess provided they do not
claim profit linked or investment linked
deductions and do not avail of investment
allowance and accelerated depreciation. This
measure could help solar manufacturing
companies being incorporated in India under
the Make in India initiative
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TECHNOLOGY UPDATE
Grid Connected Solar Storage Systems – a
remerging trend globally and in India?
According to a study by the US Government's
Lawrence Livermore National Laboratory, more
than 60% of the energy we generate is lost
between the time it is generated and the time it is
consumed. This continues to be true for grid
connected solar PV power. Battery storage for
solar power has always been an alternative that
has not gained popularity till recently, owing to
prohibitive costs and lack of ample research and
development.
Once a dominant force in the solar market,
batteries have been pushed aside in favor of gridtied systems. SECI's new hybrid tender with a
battery storage clause is again likely to change the
market dynamics marrying grid connected solar
power indelibly with battery storage systems.
In the mid-nineties, in a market as advanced as the
United States, the only method of installing asolar
PV system was through batteries. However, world
over as Governments began incentivizing grid
connected solar power, and US, Germany and
Japan stepped up promotional campaigns, there
arose a strong burst of activity for the grid-tied
market globally. In 1997, nearly two-thirds of
worldwide solar deployment was off-grid. Three
years later, grid-tied installations outpaced offgrid installations globally for the first time.
Consequently, battery storage systems went from
being the core enabler of solar PV to a marginal
technology. Battery storage systems now account
for around 1 percent of the world's annual solar
installations.
Now, interest has once more revived in this crucial
segment of the industry with lithium-ion batteries
getting cheaper and more abundant. Solar
penetration has also reached high enough levels to
worry utilities, and electricity markets have
evolved enough to reward storage, and attention
has suddenly shot turned back to batteries. The
recent opening of a solar bid by India's Solar
Energy Corporation of India (SECI), with a battery
storage clause included in a 750 MW Grid
Connected Solar Power project in the state of
Andhra Pradesh in India, is a case in point.
In Germany, as feed-in tariff rates dipped below
retail rates from the grid, batteries have become
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more popular to serve self-consumption. In the
U.S., solar service providers like SolarCity and
SunPower see batteries as a way to enhance their
long-term relationships with customers, while also
utilizing net metering and ancillary service
payments to increase the value of the solar
system.
Industry leaders in the US are betting that hybrid
inverters that can handle switching demands
between the grid and batteries will be the next big
thing in residential and commercial solar. The
market is just emerging. The timing of the surge is
up for debate. GTM Research forecasts that
distributed storage in the U.S. will grow to more
than 700 MW over the next six years, partly driven
by solar installers who can monetize batteries.
However, there is also skepticism whether it will be
the solar companies that directly leverage the
value of distributed storage. Installers and service
providers may not be internally equipped to handle
the complexities of storage regulation. Companies
such as Sun Power in the US that have invested in
battery storage technologies would have to get
the model right.
America's biggest solar installer, SolarCity, could
still buck that prediction. In April, the company
announced it was creating a grid-engineering
department specifically to work on the regulatory
and technical complexities of integrating storage
with solar. It showed how serious the company is
getting about batteries.
SolarCity also benefits from its close financial ties
to Tesla, which is preparing to break ground on the
world's biggest factory for lithium-ion batteries. A
handful of executives in the solar industry have
moved into storage and are attempting to apply
the financial innovation and cost-reduction
lessons they learned from deploying PV. Top
executives of companies such as Sun Edison and
Sun Power are on the board of companies
manufacturing batteries.
for each kW hour of storage. More than $3 trillion
has already been invested in small-scale solar and
battery storage worldwide. Today, the solar
battery market — estimated at $50 billion
annually — is poised to increase 10-fold in just
three years to 2,400 MW.
Even without any special effort, lithium-ion
batteries would be cost-effective to be deployed
on a large scale within five years as a result of a
yearly cost reduction of 20% to 30%. Battery costs
have seen substantial decline every decade since
inception in the early 1990s.
The game changing SECI solar tender with
storage clause
SECI has for the first time in India, come out with a
tender for a solar plant that stipulates a
compulsory storage clause for each bidder. Each
bidder will have to include a small storage system
along with the solar plant that they plan to build, as
a part of the total 100 MW installed storage
capacity. According to Ashvini Kumar, MD of SECI,
“Mechanisms for forecasting how much renewable
power will be available each day (and informing
the grid in advance) are being put in place.
Developers will have to work out how much
deviation is there and how much it will be reduced
by battery storage. You have to go beyond the
present stage of technology. This tender may
trigger many more similar ones in future.”
Naturally, he expects the bids received to quote
prices much higher than in the `4-5 per unit band
that other solar bids in the recent past have thrown
up. They will also be eligible for viability gap
funding (VGF). The obvious expectation is that
though consumers will pay higher costs currently,
storage cost will decline, as has been the case with
solar LEDs.
Studies by the US Western Electricity Coordinating
Council have found that finding better ways to
store energy could cut total transmission and
distribution losses by about 18% and boost the
efficiency of electricity use by up to 11%.
What is stopping a battery revolution is not a
technological breakthrough, but a technological
advancement. A solar battery costs around $450
10
SOLAR BIDS IN THE MONTH OF FEBRUARY - MARCH 2016
Organiser State
Capacity
Bid Submission
Date
Technical Bid
Date
NTPC
Andhra Pradesh 1000 MW ultra-mega solar PV at NP kunta village
SECI
Madhya Pradesh 200 MW (2x100 MW)
08/01/2016
(Extended)
22/02/2016
JREDA
Jharkhand
Setting up of Grid Connected Solar PV Projects of
1200 MW capacity
25/02/2016
01/02/2016
SECI
Karnataka
1000 MW
29/02/2016
SECI
Orissa
500 MW
29/02/2016
SECI
Gujarat
250 MW Solar Park in Charanka
JNNSM
Andhra Pradesh 500 MW in Ananthapuramu Solar Park in AP, Phase-II, Last date extended
Batch-III, Tranche-IV
01/02/2016
30/12/2015
(Extended)
29/02/2016
02/03/2016
08/03/2016
Neyveli
Tamil Nadu
Lignite
Corporation
Limited
Setting Up of 4 Blocks of Grid Interactive Solar PV
Power Project Of Each 65 MW AC capacity
Neyveli
Rajasthan
Lignite
Corporation
Limited
65 MW AC Grid Interactive Solar PV Power Project
with associated 33kv Power System complete for
Grid Interconnection
SECI
Odisha
10 MW, Paradip Port
NTPC
Karnataka
Allotment of 240 MWs Grid Connected Solar PV
Projects In 12 Taluks of Karnataka State
18/03/2016
NTPC
Karnataka
Steel giant Arcelor Mittal plans to build a
500-600 MW solar plant
18/03/2016
NTPC
Karnataka
Development of 250 MW (5 blocks of 50 MW each)
Solar PV projects at Pavagada Solar Park in Karnataka
01/04/2016
NTPC
Karnataka
Development of 750 MW (6 Blocks of 125 MW each)
Solar PV Projects
05/04/2016
NTPC
Karnataka
Procurement of 200 MW power from Grid Connected
Solar PVpower plants within the state of Kerala
05/04/2016
Last date extended
08/03/2016
15/01/2016
(Extended)
10/03/2016
Source: LSI Financial Services Tender Monitor 2016
11
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