Daily News Wrap-Up: Reliance, ReNew, Tata Bid Among Bidders for Module PLI

Himachal Pradesh invites bids for a 32 MW solar project

March 3, 2023


Solar module manufacturers, including Reliance Industries, ReNew Power, and Tata Power, are among the bidders for the second phase (Tranche II) of the Production-Linked Incentive (PLI) program under the ‘National Program on High-Efficiency Solar Modules’ to achieve gigawatt-scale high-efficiency solar modules manufacturing capacity.

Himachal Pradesh Power Corporation (HPPCL) has invited bids to commission a 32 MW solar power project in Una, Himachal Pradesh. The selected bidders must also provide eight years of comprehensive operation and maintenance services. The last day to submit the bids is March 25, 2023. Bids will be opened on the same day. Bidders must furnish an earnest money deposit of ₹37 million (~$448,297). The scope of work includes end-to-end work on the solar project on a turnkey basis. The contractor must provide all necessary equipment, materials, and services for the satisfactory operation of the project and its integration with the evacuation system provided by the state electricity authority.

Kerala State Electricity Regulatory Commission has set ₹2.97(~$0.036)/kWh and ₹2.69(~$0.033)/kWh as the average power purchase cost (APPC) for financial years (FY) 2019-20 and 2022-2023. The Kerala State Electricity Board (KSEB) had filed a petition with the Commission to determine the APPC for FY20 and FY23. According to KSEB, the Commission did not endorse the APPC for FY19 to FY22 in the multi-year tariff order that was issued in 2019. Therefore, KSEB computed the APPC for FY20 at ₹2.97 (~$0.036)/kWh by considering the cost of power purchase and self-generation approved in KSERC’s 2019 truing up order.

Reduced power generation because of equipment underperformance has resulted in a loss of $.2.5 billion for the global solar industry, according to Raptor Maps, an analytics, insights, and productivity software provider. “We are progressively losing more power and more money, with an estimated annual revenue loss of $82 million across the 24.5 GW analyzed by Raptor Maps in 2022, translating to $2.5 billion in losses for the entire solar industry. When coupled with other learnings from the field – solar assets are chronically underperforming relative to pro forma assumptions – there is an enormous financial impact that the industry needs to address,” the Raptor Maps’ Global Solar Report said.

United States-based solar tracker systems provider FTC Solar posted a net loss of $20.5 million in the fourth quarter (Q4) of 2022, a year-on-year (YoY) improvement of 14.15% compared to a loss of $23.88 million during the corresponding period in 2021.The company recorded a revenue of $26.22 million, a drop of 74.2% YoY from $101.72 million in Q4 2021. FTC Solar attributed the drop in revenue to the lower demand environment in the U.S., as customers struggle to navigate the regulatory environment and get a line of sight to solar modules.

The net loss of Eos Energy, a sustainable zinc-based energy storage solutions provider, widened to $56.6 million for Q4 of FY 2022 compared to the net loss of $30.6 million in the same quarter of the previous year. The company said that the total interest expense increased by 485% YoY to $7.6 million due to increased borrowing from the senior secured term loan, resulting in a net loss for Q4. The total loss for the period includes a $4.4 million write-down of property, plant, and equipment that are long-term assets.

Warranty of solar modules is a crucial part of any solar installation, as modules account for nearly 40% of project cost. Warranty covers both the product and its performance. While warranty is a business enabler, it is yet to grain traction in the industry, experts at a webinar hosted by Mercom India said. The webinar was titled ‘Solar PV Performance Warranty: Building Market Confidence.’ The panelists were Burzin Umrigar, SVP-Head Construction Insurance & Renewable Energy, Howden India; Punit Mehta, Director at Pixon Green Energy; Sudhanshu Kamboj, VP-Project Development at Radiance Renewables; and Vineet Mittal, Director, and Co-founder at Navitas Solar. Priya Sanjay, Managing Director, Mercom India, moderated the session.

Global energy-related carbon dioxide emissions rose by under 1% during the year 2022, which is lower than initially expected, the International Energy Agency said in a report. The impact of the increase in use of coal and oil amid the energy crisis was offset by the growth of solar, wind, and electric vehicles, heat pumps, and energy efficiency, the report said. The report covers CO2 emissions from all energy combustion and industrial processes, providing a picture of energy-related greenhouse gas emissions in 2022.