Daily News Wrap-Up: Winners of GUVNL’s 500 MW Phase XXIV Solar Auction

Aggressive renewable energy push likely to continue under new Modi government

June 11, 2024


KPI Green Energy, Avaada Energy, Solarcraft Power India 5 (BluPine Energy), NRC Industries, and Hinduja Renewables were declared winners in Gujarat Urja Vikas Nigam’s (GUVNL) auction to supply power from 500 MW grid-connected solar power projects with a 500 MW greenshoe option (Phase XXIV). KPI Green won 120 MW at a tariff of ₹2.67 (~$0.0320)/kWh. Avaada quoted ₹2.68 (~$0.0321)/kWh to win 200 MW. BluPine won 40 MW at a tariff of ₹2.69 (~$0.0322)/kWh. NRC Industries quoted ₹2.72 (~$0.0326)/kWh to win 10 MW. Hinduja Renewables won 130 MW out of the quoted capacity of 300 MW at 2.72 (~$0.0326)/ KWh under the bucket-filling method.

With India’s long-winded election process coming to a close and Narendra Modi sworn in as Prime Minister for a third consecutive term, the country’s aggressive renewable energy push is likely to continue. In the Bharatiya Janata Party’s (BJP) second term in office, renewable energy was one of the cornerstones of the government’s economic agenda. The government undertook a series of initiatives to strengthen India’s energy security by augmenting solar and wind capacity to complement coal-based thermal, which is still the country’s primary energy source. India displaced Japan to become the third-largest solar energy producer in 2023. Going into the elections, the BJP had outlined its ambitious clean energy vision in its manifesto.

The recent hike in electricity generation duty from ₹0.012 (~$0.00014)/kWh to ₹0.15 (~$0.0018)/kWh for rooftop solar systems in Kerala is threatening to disrupt the pace of renewable energy adoption in the state. The state expects an additional annual revenue of ₹240 million (~$2.87 million) from the increased duty. This sharp increase contradicts the central government’s policy against imposing generation duties on renewable energy sources like solar. However, since electricity comes under the Concurrent List in the Constitution, the center and state governments have the liberty to frame their own laws. The Concurrent List consists of subjects of common interest to both the Union and the States. Parliament and the State legislatures can make laws on the subjects included in this list.

The Hyderabad Division, Electrical-South Central Railway has issued a tender for 2.742 MW of rooftop solar projects of different capacities at station buildings, service buildings, residential buildings, and level crossings, and a ground-mounted 300 kW solar project. The last date to submit bids is July 3, 2024. The projects must be completed within four months of receiving the work order. Bidders must submit an earnest money deposit of ₹1.18 billion (~$14.13 million). The cost of the tender document is non-refundable.

Telecommunications Consultants India has invited expressions of interest to select consortium partners to commission a 23 MW grid-connected solar power project for Western Coalfields in Nagpur, Maharashtra. Selected bidders must oversee the project’s operation and maintenance for ten years. The last day to submit the bids is June 21, 2024. Bids will be opened on the same day. Bidders must submit an Earnest Money Deposit (EMD) of ₹5 million (~$59,868). An EMD of ₹500,000 (~$5,986) must be paid by bidders along with the bid submission, and the balance should be paid if selected.

Solar Energy Corporation of India has invited bids for the production and supply of green ammonia in India through cost-based competitive bidding under strategic interventions for the green hydrogen transition (SIGHT) program. The last date for the submission of bids is July 29, 2024. The Union Cabinet last year sanctioned the National Green Hydrogen Mission with a budget of ₹197.4 billion (~$2.3 billion) up to 2029-30. A key financial initiative under this mission was the SIGHT program, which has an allocation of ₹174.9 billion (~$2.09 billion). This program introduces two separate financial incentive mechanisms designed to boost domestic electrolyzer manufacturing and the production of green hydrogen.

Global energy investment in 2024 is projected to exceed $3 trillion, with $2 trillion dedicated to clean energy technologies and infrastructure, according to the latest World Energy Investment 2024 report by the International Energy Agency. This reflects a surge in clean energy investment since 2020, driven by advancements in renewable power, grids, and storage. The current trends in clean energy spending exceed those for oil, gas, and coal. Investment in solar photovoltaic technology alone is expected to surpass $500 billion in 2024, outpacing all other power generation sources combined.