Daily News Wrap-Up: Power Ministry Seeks Comments on Draft Electricity Amendment

Renewable Lender IREDA Approved 37% More Loans in FY 2022-23

March 30, 2023


The Ministry of Power has invited comments from the stakeholder on the draft Electricity (Rights of Consumers) Amendment Rules, 2023. The proposed rules seek to bring transparency and give more control to consumers when dealing with power distribution companies. The power ministry has sought comments from chief and principal secretaries of all states, power distribution companies, power transmission companies and power generators, industry associations, and central ministries.

The Indian Renewable Energy Development Agency has approved ₹327.6 billion (~$4 billion) worth of loans as on March 27, up 37% year-over-year (YoY), which reflects the continued growth of the renewable energy sector in the country. The government-owned lender disbursed ₹163.2 billion (~$1.98 billion) of loans during FY 2022-23, surpassing the previous highest annual loan disbursement of ₹160.7 billion (~$2 billion) in FY 2021-22.

NTPC Renewable Energy said it would supply 1.3 GW of round-the-clock (RTC) renewable energy for powering Greenko’s upcoming green ammonia plant in Andhra Pradesh’s Kakinada. The government-owned power producer entered a term-sheet agreement with Greenko ZeroC, the green molecule production arm of Hyderabad-based Greenko Group. The Kakinada facility is expected to add up to 1 million tons of green ammonia production capacity annually by 2027.

EnerVenue, a California-based company specializing in metal-hydrogen batteries, plans to open a one-million-square-foot battery gigafactory in Shelby County, Kentucky. The project’s initial phase will focus on producing 1 GWh of batteries annually, anticipating beginning production by the end of this year. The company has committed to investing over $1 billion in subsequent phases to increase production to over 20 GWh per year across its domestic manufacturing sites. The 73-acre site facility will serve as EnerVenue’s flagship manufacturing plant for its Energy Storage Vessels.

West Central Railway has invited bids for state-wise empanelment of agencies to implement rooftop solar projects of 12.5 MW at various locations in Jabalpur, Bhopal, and Kota zones. The projects would be developed in two capacity ranges— more than 10 kW and up to 100 kW, and more than 100 kW and up to 500 kW. The projects must be commissioned within 240 days of receiving the work order. The developers must also provide comprehensive operation and maintenance services for 25 years.

JSW Neo Energy, a wholly owned subsidiary of independent power producer JSW Energy, will acquire Mytrah Energy’s 12 special purpose vehicles (SPV) within the already agreed consideration. The cumulative consideration for 12 SPVs stands at ₹18.2 million (~$221,024). However, the transaction value would be part of the earlier deal under which JSW Energy acquired Mytrah Energy’s portfolio of about 1.8 GW renewable energy generation capacity, comprising 17 SPVs and 1 Ancillary SPV.

A consortium of Brookfield Asset Management and MidOcean Energy, the global LNG platform owned and managed by EIG, has agreed to acquire Australia-based integrated power generator and retailer Origin Energy for A$18.7 billion (~$12.5 billion). As part of its acquisition of Origin Energy’s Energy Markets segment, Brookfield plans to expedite the development of renewable energy generation capacity. Brookfield has formulated a business plan for Origin Energy Markets that involves investing at least $20 billion over the next ten years to construct up to 14 GW of new renewable generation and storage facilities in Australia.

A parliamentary committee has recommended extending the Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME-II) program by two years beyond its current March 31, 2024, deadline. The panel added that it would allow more time to evaluate its effectiveness and make necessary adjustments to promote electric vehicles (EVs). The committee found that removing government support for EVs would significantly increase prices. Many startups involved in the EV industry may also have to shut down once the FAME-II program ends.

Close on the heels of a similar agreement with the European Union, the United States and Japan have agreed on a trade deal for critical minerals used in clean energy technologies. The contract is intended to help Japan meet sourcing requirements for new electric vehicle (EV) subsidies in the U.S. and reduce reliance on China for strategic resources.

India will need an investment of ₹14.5 trillion (~$176.6 billion) by 2027 to install a renewable generation capacity of 210 GW and a battery storage capacity of 8.6 GW/ 34.7 GWh to meet the country’s growing demand for electricity. Union Minister of Power R.K. Singh informed the Rajya Sabha that the government plans to add 17,500 km of transmission lines and 80,000 MVA of transmission capacity across India as part of the planned national grid expansion.

The Minister of Power R.K. Singh told the Parliament that the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM) program has benefited over 200,000 farmers as of February 28. A capacity of 89.45 MW has been installed under Component-A of the program. Approximately 209,000 pumps have been reported as installed or solarized under Component-B and Component-C.