India X Cleantech — April 2021

Welcome to another issue of our new India x Cleantech series! On a monthly basis, we are pulling news from across clean technology sectors in India into a single, concise summary article about the country.

Cleantech Investments

M&A Activity Picks Up In India’s Rooftop Solar Market

Amplus Energy, a rooftop solar power developer backed by Malaysian oil and gas giant Petronas, is reportedly in talks with ReNew Power to acquire its rooftop solar power portfolio. Amplus has a portfolio of 800 megawatts while ReNew Power, which is among the leaders in large-scale solar and wind power, has 140 megawatts of rooftop solar power portfolio. Another rooftop solar power company on the M&A radar is Fourth Partner Energy. The company has a 400-megawatt portfolio and serves commercial and industrial consumers. It is looking to raise $150 million through stake sale to Netherlands’ SHV Energy and India’s National Investment and Infrastructure Fund.

World Bank Offers $100 Million Credit Guarantee For Rooftop Solar Power In India

The World Bank will offer $648 million in funding assistance for the installation of rooftop solar power projects in the small and medium scale company segment. This package includes a credit guarantee scheme worth $100 million. The assistance will be delivered through the State Bank of India, the country’s largest commercial bank. The program will target small and medium-sized companies that usually do not meet lending criteria for funding institutions. This is the second collaboration between the World Bank and the State Bank of India. The World Bank launched a $648 million loan assistance program for the rooftop solar market in 2016.

Adani Green Energy To Buy 300 Megawatts Of Operational Solar Projects

Adani Green Energy is looking to acquire a 250-megawatt solar power project from another private Indian renewable energy developer. The project is located in the northern state of Rajasthan and was commissioned by Hero Future Energies. The project has a long-term power purchase agreement with the Solar Energy Corporation of India at a tariff of Rs 2.53 (3.49¢) per kilowatt-hour. The transaction will reportedly be valued at around Rs 10 billion (US$134 million). Adani has also acquired a 50-megawatt project in Telangana. The project was previously owned and commissioned by Toronto-based SkyPower Global.

Greenko Plans US$4.8 Billion Pumped Storage Project

Greenko plans to invest US$4.3 billion to set up a solar-wind hybrid project supported by pumped hydro storage in the northern state of Rajasthan. The project is likely to be completed by 2024 and will be the world’s largest renewable energy asset, the company claimed. Greenko announced these plans following incentives offered by the Rajasthan government for hybrid and storage-based renewable energy projects. This is the third pumped hydro storage project announced by Greenko. It is working on similar projects in the southern states of Andhra Pradesh and Karnataka.

Greenko Raises $940 Million Through Green Bond

Greenko Energy Holdings has announced that it has raised $940 million through the green bond issue priced at 3.85%. The bond was rated “Ba1” by Moody’s Investors Service. Demand for the bond exceeded $2.5 billion. Proceeds from the bond sale are expected to be used for refinancing existing debt facilities. Greenko has been among the most aggressive issuers of green bonds in India. It has raised around $4.5 billion through foreign and domestic green bond issues.

Electric Transport

EV Financing Market In India To Reach US$50 Billion By 2030

Indian government think tank NITI Aayog and US-based Rocky Mountain Institute reported that India’s EV financing market could touch US$50 billion by the end of this decade. The two agencies also noted that capital investment requirement in India’s electric mobility sector is around US$266 billion through 2030.

Renewable Energy & Batteries

NTPC To Commission 100-Megawatt Floating Solar Project Soon

NTPC is expected to commission a 100-megawatt floating solar power project in the southern state of Telangana. The project will be spread across 450 acres of the Sri Ram Sagar Reservoir. The total cost of the project is estimated at Rs 4.2 billion. Apart from this project, the company is also working on two other floating solar projects in southern states with a total capacity of 117 megawatts — a 92-megawatt project in Kerala and a 25-megawatt project in Andhra Pradesh. It is also working on a 230-megawatt ground-based solar power project in Tamil Nadu.

India’s Mytrah Energy Plans US Listing Through SPAC Route

Wind energy project developer Mytrah Energy is looking to merge with a special purpose acquisition company (SPAC) and subsequently get listed on a US stock exchange. The company is also looking at possible opportunities for a merger with other similar-sized renewable energy companies before the listing. Mytrah has an operational portfolio of 2.3 gigawatts, including 1.7 gigawatts of wind energy and 535 megawatts of solar power capacity. An additional 700 megawatts of projects are under development.

Tata Power Announces Blockchain-Based P2P Solar Power Trading Pilot

Tata Power Delhi announced that it will collaborate with Australia-based Power Ledger to launch a pilot project where prosumers can trade solar power with neighboring buildings. The pilot will cover 150 sites with prosumers having rooftop solar power systems selling excess power to neighboring residential and commercial consumers. The transaction will take place through Power Ledger’s blockchain technology that offers a near-real-time settlement.

India Imposes 40% Import Duty On Solar Modules

The Minister of New and Renewable Energy recently announced the imposition of a basic customs duty on solar cells and modules. Solar cells imported into India will attract a 20% duty while a 40% duty will be levied on imported modules. These duties will be imposed starting 1 April 2022. The move is seen as yet another attempt by the Indian government to protect and promote Indian solar cell and module manufacturing companies. The Indian solar power market is dominated by Chinese companies that supply 80-90% of solar modules.

India Auctions 500 Megawatts Of Solar At US¢3.03 Per KWh

Gujarat Urja Vikas Nigam Limited issued a 500-megawatt solar power tender in January. The capacity was awarded to five companies. NTPC was awarded 150 megawatts, Sprng Energy 120 megawatts, Coal India 100 megawatts, Tata Power Renewable Energy 60 megawatts, and SJVN 70 megawatts. These projects were awarded at a tariff of Rs 2.20 and Rs 2.21 (US¢3.03-3.04) per kilowatt-hour.

India Restricts Module Models Allowed To Be Installed At New Projects

The Ministry of New and Renewable Energy released a list of 23 companies and the modules manufactured by them. Project developers who are awarded projects under any government scheme must choose modules from this restricted list. The first list released by the government only has Indian companies. The ministry did not clarify when a revised list would be released and if international manufacturers would be included in such a list.

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