Daily News Wrap-Up: Investments in Indian Solar Sector Down 22% YoY in Q3

Western Railways’ tender for 1.3 MW rooftop solar projects

December 6, 2023


Investments in the Indian solar sector in the third quarter of the calendar year 2023 totaled $1.57 billion (~₹129.86 billion), a 22% year-over-year decrease from $2.02 billion (~₹166.29 billion). The figures were revealed in Mercom India Research’s latest report, Q3 2023 India Solar Market Quarterly Update. The decline was primarily due to lower installations during the quarter due to the delays, extensions, and postponements of utility-scale projects to 2024. Additionally, the falling module prices lowered project costs and the required investments.

The Bhavnagar Division of Western Railways has invited bids to set up 1.3 MW rooftop solar power projects with a net metering facility. The scope of work includes designing, supplying, erecting, testing, and commissioning projects with a minimum 10 kW system capacity per location. The exact locations where the systems would be installed were not disclosed. The selected bidder must also provide a five-year warranty and comprehensive maintenance for the installed systems. Bids can be submitted from December 13 to December 27, 2023. Bids will be opened on the last day.

India has not endorsed a pledge signed by over 118 countries at the ongoing COP28 summit in Dubai to triple renewable energy capacity by 2030, as doing so would have meant committing to a deal on phasing down coal. India’s stance does not come as a surprise. In recent months, India has made it clear it would not yield to any pressure to abandon its plan to augment the capacity of coal-fired power plants to meet burgeoning power demand. It has maintained that the power demands of a growing economy are a priority that it cannot jettison.

The Indian Energy Exchange (IEX) traded 189 million units of green energy during November 2023, a 46.61% year-over-year drop from 354 MU. Green energy trade has continued to slide throughout 2023, given the considerable drop in renewable generation due to seasonality and increased power demand across the country. IEX cited the government data published in November 2023, stating the country’s energy consumption reached 120 billion units, representing an 8.5% increase YoY.

The Asian Development Bank has granted a $200 million loan to enhance the quality, efficiency, and dependability of Uttarakhand’s electricity supply and help the state’s residents transition to the use of clean energy sources. With the introduction of an innovative and climate-resilient underground cable system that consists of 354 ring main units, 99 compact substations, and 537 kilometers of underground cables, the project will update the power network infrastructure of Dehradun, the capital city of Uttarakhand.

Specialty chemicals manufacturer Sadhana Nitro Chem will set up a green hydrogen facility based on a solar and wind project with a 15-20 MW capacity, primarily for captive use. To fund the solar and wind projects, the company is planning rights issue at ₹121 (~$1.45) per share to raise a total of ₹49 million (~$5.9 million). The funds raised through the rights issue will be used to acquire a 126-acre plot to establish the solar and wind projects. The harnessed energy from these projects will, in turn, be used to produce green hydrogen through water electrolysis.

Adani Green Energy announced a follow-on funding of a $1.36 billion senior debt facility as part of its construction financing framework, enhancing the pool to $3 billion since the initial project financing. The financing will be a key enabler in developing a 2,167 MW renewable energy park in Khavda, Gujarat. The park is expected to accelerate the company’s vision of 45 GW operating capacity by 2030. The definitive agreements have been executed with eight leading international banks, which are returning lenders instrumental in establishing AGEL’s construction financing framework since March 2021.