Daily News Wrap-Up: India’s Solar Imports and Exports Rise YoY in Q2 2023

SECI seeks a short-term working capital credit facility of ₹6 billion

August 21, 2023


India exported solar cells and modules worth $463.8 million (~₹38.6 billion) in the second quarter (Q2) of calendar year 2023, a staggering year-over-year increase of 1,669%, according to the Department of Commerce data. However, on a quarter-over-quarter basis, exports fell 3.1% from $478.8 million (~₹39.9 billion) in Q1 2023. Solar photovoltaic modules accounted for approximately 98% of the country’s total solar exports.

Solar Energy Corporation of India has invited quotations for a short-term working capital credit facility of up to ₹6 billion (~$72.3 million) to help it make monthly payments to solar, wind, and hybrid energy projects. The credit facility can be a cash credit, overdraft, or working capital demand loan. The last date to submit proposals is September 5, 2023. The non-fund-based credit facility will be for one year, with an option to renew it for a year more.

NLC India has invited bids to appoint an owner’s engineer consultant for developing a 600 MW solar power project in the Gujarat State Electricity Corporation’s solar park (Phase-II) at Khavda, Gujarat. The last date to submit the bid is August 28, 2023. Bids will be opened on the same day. The scope of work involves consultancy services for project development, which encompasses fundamental engineering, evaluating and endorsing design and engineering materials, as well as providing technical assistance throughout the project’s implementation and commissioning phases.

Wind energy solutions provider Inox Wind has announced an investment of approximately ₹5 billion (~$60 million) from its main promoter and affiliated group entities. The capital infusion was realized through an equity share sale of the company by its promoter and associated group entities, facilitated through block deals. The generated funds will be used to settle Inox Wind’s debts.

Adani Energy Solutions, formerly known as Adani Transmission, has signed an agreement with Megha Engineering and Infrastructures to acquire KPS 1 Transmission (KPS1) at Khavda in Gujarat. Adani Energy will buy 100% equity shares of KPS 1 at a face value of ₹10 (~$0.12) per share. KPS 1 is a special-purpose vehicle created for the inter-state transmission project of the Ministry of Power to implement the KPS1-Khavda power substation gas-insulated switchgear 765 kV double circuit line and its augmentation.

Mundra Solar Energy, a step-down subsidiary of Adani Enterprises, received the commercial operational date certificate from Solar Energy Corporation of India for a 2 GW solar cells and modules manufacturing facility at Mundra in Gujarat. Adani Enterprise holds 74% shares of Mundra Solar Energy through its wholly-owned subsidiary, Adani Tradecom. Adani Green holds the remaining stake in Mundra Solar Energy.

The Federal Network Agency of Germany (Bundesnetzagentur) has concluded its latest 1.6 GW solar auction with a total of 124 accepted bids, discovering a lowest tariff of €0.054 (~$0.059)/kWh in the process. The highest awarded bid value was €0.067 (~$0.073)/kWh and the average volume-weighted surcharge value was €0.065 (~$0.071)/kWh. The ceiling tariff for the auction for the ground-mounted solar projects was set at €0.074 (~$0.081)/kWh.

German conglomerate Siemens will start manufacturing solar photovoltaic string inverters in the U.S., specifically designed to serve the domestic market. The manufacturing facility will be located in Kenosha, Wisconsin. It will be owned and operated by Siemens’ long-time manufacturing partner Sanmina. Manufacturing is expected to begin in early 2024, with a plan to scale the capacity by 5,200 Blue Planet TL3 string inverters equivalent to 800 MW annually.

To achieve a fivefold increase in annual offshore wind installations (excluding China) by 2030, the global supply chain will need a secured investment of $27 billion by 2026, finds the latest Horizons report from Wood Mackenzie. According to the global insights firm’s projections, the base case outlook suggests an annual capacity addition of 30 GW by 2030. However, this falls significantly short of the ambitious offshore wind targets set by policymakers worldwide, which call for nearly 80 GW of capacity per year.

The European Union has taken one more step towards implementing the Carbon Border Adjustment Mechanism (CBAM), with the European Commission adopting the rules governing the implementation of the carbon tariff on imported goods. The transitional phase of CBAM, which starts on October 1 this year, will be in force until the end of 2025. The carbon tariff measure has governments outside the EU and exporters of goods from those countries worried because they fear the competitiveness of their products will be dented.