Daily News Wrap-Up: Renewables Account for 41% of Installed Power Capacity in 2022

EV Makers Expect Tax Cuts and Incentives in Budget 2023

January 31, 2023


At the end of the calendar year (CY) 2022, India’s renewable energy capacity, including large hydroelectric projects, made up 40.75% of the country’s cumulative power capacity, with 166.9 GW, according to data from the Central Electricity Authority (CEA), the Ministry of New and Renewable Energy (MNRE), and Mercom’s India Solar Project Tracker. The total renewable energy share in the power mix increased marginally from 163.7 GW, which was 40.3% of the overall power capacity mix in the previous quarter. According to the data, solar power accounted for a significant portion of the total power capacity and also renewables. It made up 15% of the total installed power capacity and 37% of the total installed renewable capacity. This is an increase of 0.6% from the last quarter, where solar accounted for 36.4% of the total renewable capacity.

The Indian electric vehicle (EV) industry is hoping for the government to rationalize the indirect tax structure on EV components and extend the rollout of incentives under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) program. Further, the industry has also appealed to the government that the EV sector is classified under priority lending guidelines allowing scheduled banks to lend more liberally to the industry, as observed in the renewables sector.

The Ministry of New and Renewable Energy (MNRE) has increased the Central Financial Assistance (CFA) for residential consumers of northeastern states, along with hilly states of Uttarakhand, Himachal Pradesh, and the union territories of Jammu and Kashmir, Ladakh, Lakshadweep, and Andaman & Nicobar Islands. Residential consumers will receive ₹17,662 (~$216.7)/kW as CFA for the first 3 kW. For rooftop capacity beyond 3 kW and up to 10 kW, they will receive CFA of ₹8,831 (~$108.3)/kW. For residential welfare associations or group housing societies, a CFA of ₹8,831 (~$108.3)/kW for common facilities up to 500 kW at 10 kW per house will apply.

The Karnataka Power Corporation Limited (KPCL) has floated a tender for operations and maintenance (O&M) of a 10 MW solar project. The scope of the work will include maintenance of a 33kV transmission line up to 110/33/11kV Shiggoan substation at a distance of 9.5 kilometers. The O&M contract will be valid for five years. The last date for the submission of bids is February 9, 2023. Bids will be opened the following day.

The Telangana State Renewable Energy Development Corporation (TSREDCO) has invited bids from consultancies to prepare a study on the feasibility and detailed project report (DPR) to establish grid-connected solar photovoltaic projects at 50 33/11 kV sub-stations within Telangana State Northern Power Distribution Company’s (TSNPDCL) jurisdiction. The projects will be installed under Component-C of the Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan program. The last date to submit the bids is February 3, 2023. Bids will be opened the next day.

Military Engineer Services has invited bids for developing three solar power projects of capacities 1 MW, 200 kW, and 130 kW at Niwaru, Bhakrota, and Jaipur military station, respectively, under garrison engineer (South) Jaipur. The last date to submit the bids is March 4, 2023. Bids will be opened on March 6. The project’s estimated cost is ₹85.6 million (~$1.05 million). The project must be completed within a year from the date of handing over the site to the contractor.

The Vedanta Group said it will source 600 MW of solar and 91 MW of hybrid renewable power through open access under the captive mode for its various operations across the country. The company disclosed it in a BSE filing. The projects will be set up through special purpose vehicles (SPVs) of Serentica Renewables India. Vedanta would execute the power delivery agreements (PDA) with Serentica. The solar capacity would be used for the Group’s aluminum operations in Jharsuguda, copper, and oil & gas operations across India. Additionally, the power generated from the hybrid renewable project would be divided into 50 MW for aluminum operations, 16 MW for copper operations, and 25 MW for oil and gas operations.

SolarArise, a Delhi-based solar developer, has announced the completion of its acquisition by Thomas Lloyd Energy Impact Trust, an investment fund listed on the London Stock Exchange. SolarArise has eight solar power projects with a total capacity of 400 MW across Madhya Pradesh, Maharashtra, Uttar Pradesh, Karnataka, and Telangana. SolarArise’s operating revenues are generated under fixed-price, long-term power purchase agreements. Last June, Thomas Lloyd Impact Trust acquired the remaining 57% interest in SolarArise India Projects for a cash consideration of $38.5 million (~$3.14 billion). The initial 43% interest acquired in SolarArise in 2018 was a part of the seed assets outlined at the initial purchase offering.

Amara Raja Batteries recorded a net profit of ₹2.21 billion (~$27.09 million) in the third quarter (Q3) of the financial year (FY) 2022-23, a 52% YoY increase from ₹1.45 billion (~$17.77 million) on the back of robust demand for batteries from the aftermarket and original equipment manufacturing segments. For the October-December period, the company recorded an income of ₹26.64 billion (~$326.63 million), a 12% YoY increase from ₹23.84 billion (~$292.28 million). On a QoQ basis, the net profit increased by 10% from ₹2.01 billion (~$24.63 million), while the income fell by 2% compared to ₹27.24 billion (~$333.84 million).

Solar module maker JA Solar has signed a strategic cooperation framework agreement with the Ordos Municipal government in China’s inner Mongolia region to build a low-carbon industrial park for the photovoltaic (PV) industry cluster. The company plans to invest ¥40 billion (~$5.9 billion) for the cluster. The PV industry cluster, once complete, will have facilities to produce 10,000 tons of silicon, 20 GW each of ingots and wafers, 30 GW of photovoltaic cells, and 10 GW of solar modules.

OX2, a Swedish renewable energy company, said it would develop offshore wind projects amounting to 1.4 GW in the Gulf of Bothnia in the Finnish economic zone. The wind farm will be located southwest of Vaasa, about 30 kilometers northwest of Kaskinen. It will comprise about 100 turbines and have an annual production of about 6TWh. OX2 received a research permit for the Tyrsky wind farm from the Finnish government in 2022. The licensing period is estimated to be about four years, and the wind farm is expected to be operational around 2030.