Maharashtra Approves Tariffs for 8.7 MW of Solar Power Under KUSUM Program

Brookfield to Aquire KKR’s 50% Stake in Renewable Developer X-Elio

NTPC’s Subsidiary Will Develop Renewable Projects for IndianOil Refineries

Constant Climate-Centric Funding Can Limit Global Temperature Under 1.5°C 

India Voices Concern over Europe’s Carbon Tariff Measure at WTO

JSW and Greenko Win Karnataka’s Bid for 1 GW of Pumped Storage Projects

Sterling and Wilson Bags BoS Package Tender for 1.2 GW Solar Projects

Indian Oil Floats O&M Tender for 8 MW Solar Project in Ahmedabad

IIT Mandi Creates Low-Cost Method for Solar Cell Metal Oxide Layers

Government Allows NTPC to Invest Over 30% of Net Worth in its Green Arm


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					</table><p>The Maharashtra Electricity Regulatory Commission (<a href="https://www.mahadiscom.in/en/home/" target="_blank" rel="noopener">MERC</a>) has adopted tariffs of ₹3.28 (~$0.039)/kWh, ₹3.29 (~$0.039)/kWh, and ₹3.30 (~$0.040)/kWh for the procurement of 8.7 MW of solar power on a long-term basis.</p>
<p>The Commission noted that the solar power procured from the projects would be eligible to fulfill the solar renewable purchase obligation (RPO) of the Maharashtra State Electricity Distribution Company (<a href="https://www.mahadiscom.in/en/home/" target="_blank" rel="noopener">MSEDCL</a>).</p>
<p>MSEDCL had filed a petition seeking approval for the adoption of tariffs for the long-term procurement of 8.7 MW of solar power under Component A of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program.</p>
<p><strong>Background  </strong></p>
<p>In February last year, MSEDCL floated a tender for the procurement of 500 MW of solar power under the PM-KUSUM program. Due to low participation, MSEDCL decided to <a href="https://www.mercomindia.com/bids-298-mw-solar-projects-kusum-program-maharashtra" target="_blank" rel="noopener">reissue</a> the tender for 298 MW without any ceiling tariff in August.</p>
<p>A total of 10 bids were received, with a total cumulative capacity of 11.2 MW. Financial bids of nine qualified bidders were opened on September 29, 2022.</p>
<p>The e-reverse auction was conducted on October 3, 2022. The quoted rates were much higher than the discovered market rates at the time. Hence, the bidders were called to negotiate the quoted rates.</p>
<p>On May 16, 2020, the Commission approved the ceiling tariff for decentralized projects as ₹3.30 (~$0.040)/kWh. Hence, MSEDCL accepted offers up to ₹3.30 (~$0.040)/kWh. Accordingly, the revised accepted offers stood as follows:</p>
<p style="text-align: center;"><strong><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/MERC-KUSUM-1.png"><img decoding="async" loading="lazy" class="alignnone wp-image-51639 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/MERC-KUSUM-1.png" alt="MERC KUSUM-1" width="342" height="281" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/MERC-KUSUM-1.png 342w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/MERC-KUSUM-1-300x246.png 300w" sizes="(max-width: 342px) 100vw, 342px" /></a></strong></p>
<p><strong>Commission’s analysis</strong></p>
<p>The Commission noted that MSEDCL considered offers within the ceiling tariff of ₹3.30 (~$0.040)/kWh in the post-bidding process.</p>
<p>The Commission observed that the MSEDCL, in its two tenders for grid-scale solar power procurement, discovered tariffs in the range of ₹2.90 (~$0.035)/kWh-₹2.97 (~$0.036)/kWh.</p>
<p>MERC said that it was evident that the tariff considered for adoption was marginally higher than the resultant tariff of the interstate transmission system (ISTS)-connected solar projects.</p>
<p>But, under Component A of the PM-KUSUM program, MSEDCL will receive a procurement-based incentive from the Central government, which is ₹0.40 (~$0.004)/kWh or ₹660,000 (~$7,994)/MW of installed capacity, whichever is less for the first five years from the commercial operation date of the project.</p>
<p>Accordingly, the Commission deemed it fit to adopt and approve tariffs for 8.7 MW of solar projects on long-term basis (for 25 years) under Component-A of the PM-KUSUM program.</p>
<p>The state regulator noted that as against the bid capacity of 298 MW, only 8.7 MW bids had been received. Still, more quantum is required to fulfill the target of 500 MW set by MNRE and reduce the power purchase cost.</p>
<p>The Commission directed MSEDCL to make extra efforts to give adequate publicity to the program so that more bids are received. MSEDCL should focus on the area where barren land is available coupled with good availability of solar radiation throughout the year.</p>
<p>This will help MSEDCL increase the availability of land for implementing such solar projects and provide assured rental income to farmers, the commission added.</p>
<p>Last November, MERC <a href="https://www.mercomindia.com/regulator-approves-tariff-133-mw-solar-power-kusum" target="_blank" rel="noopener">allowed</a> MSEDCL to procure 132.75 MW of solar power on a long-term basis at ₹3.10 (~$0.038)/kWh tariff.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.</p>



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					</table><p>Global investment firm Kohlberg Kravis Roberts (<a href="https://www.kkr.com/" target="_blank" rel="noopener">KKR</a>) has agreed to sell 50% of its stake in renewable developer X-ELIO to its joint venture partner <a href="https://bep.brookfield.com/" target="_blank" rel="noopener">Brookfield Renewable</a>.</p>
<p>Financial details were not disclosed.</p>
<p>Since KKR&#8217;s initial investment in 2015, followed by Brookfield&#8217;s acquisition of a 50% stake in 2019, X-ELIO has benefitted from over $2 billion of investment.</p>
<p>X-ELIO has constructed or developed 3 GW of renewable energy projects globally.</p>
<p>Further, the renewable energy developer is projected to have 3 GW of assets in operation, under construction, or ready-to-build in Spain, Italy, the U.S., Australia, Japan, and Latin America by the end of 2023.</p>
<p>Additionally, X-ELIO said that it has over 10 GW of an advanced near-term pipeline of solar and storage assets.</p>
<p>&#8220;Since KKR&#8217;s initial investment eight years ago, we have helped X-ELIO become a global leader in sustainable energy development. As a firm, we have been a long-term investor behind the energy transition. I&#8217;m proud of what we have accomplished together, and wish X-ELIO continued success on this exciting journey,&#8221; said Tara Davies, Co-Head of European Infrastructure at KKR.</p>
<p>Earlier this month, Godawari Green Energy, a wholly-owned subsidiary of KKR-backed Virescent Renewable Energy Trust, <a href="https://www.mercomindia.com/virescent-acquires-solar-project-gujarat" target="_blank" rel="noopener">acquired</a> a 25 MW operational solar project from Samta Energy in the Surendranagar district of Gujarat.</p>
<p>The Competition Commission of India <a href="https://www.mercomindia.com/competition-watchdog-450-million-hero-futures-energies" target="_blank" rel="noopener">recently</a> approved a $450 million investment through the subscription of compulsorily convertible preference shares of Hero Group&#8217;s renewable arm, Hero Future Energies, by Ardor Holding II Pte, a special purpose vehicle indirectly owned by KKR.</p>
<p>Last June, Brookfield <a href="https://www.mercomindia.com/brookfield-asset-management-raises-15-billion-for-clean-energy" target="_blank" rel="noopener">announced</a> the final institutional close of a $15 billion raise for the Brookfield Global Transition Fund (BGTF), focused on facilitating the global transition to net zero. Brookfield had <a href="https://mercomindia.com/brookfield-raises-billion-energy-fund/" target="_blank" rel="noopener">raised</a> $7 billion in the initial close of BGTF.</p>
<p>Total corporate funding worldwide in the solar sector, including venture capital and private equity, debt financing, and public market financing, came to $24.1 billion, a decline of 13% compared to the $27.8 billion raised in 2021, according to Mercom&#8217;s <a href="https://mercomcapital.com/product/annual-q4-2022-solar-funding-ma-report/" target="_blank" rel="noopener">Annual and Q4 2022 Solar Funding and M&amp;A Report</a>.</p>



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					</table><p><a href="https://www.ntpc.co.in/" target="_blank" rel="noopener">NTPC</a> Limited&#8217;s wholly owned subsidiary, <a href="https://www.ntpc.co.in/en/ntpc-green-energy-limited" target="_blank" rel="noopener">NGEL</a>, has entered into a joint venture agreement with Indian Oil Corporation (<a href="https://iocl.com/" target="_blank" rel="noopener">IOCL</a>) to develop renewable energy projects that can meet round-the-clock power requirements to meet the electricity demands of IOCL refineries.</p>
<p>The signing of the joint venture agreement between NTPC Limited and IOCL is expected to facilitate the two companies in achieving the Clean Energy Targets set by the Government of India in their respective core businesses, an official statement said.</p>
<p>By collaborating in the development of renewable energy projects, it is expected that both companies can contribute towards the country&#8217;s transition to a cleaner and more sustainable energy future.</p>
<p>NGEL has set an ambitious goal of developing a renewable energy portfolio of 60 GW within the next ten years.</p>
<p>This target reflects the company&#8217;s commitment to expand its green energy business and aggressively pursue renewable energy projects.</p>
<p>Earlier in July 2022, Indian Oil Corporation (IOC) and NTPC <a href="https://www.mercomindia.com/ioc-ntpc-supply-renewable-power-indian-oil-refineries" target="_blank" rel="noopener">signed</a> similar agreement to form a joint venture (JV) company to meet the power requirements of upcoming projects of Indian Oil refineries with renewable power.</p>
<p>In 2020, both NTPC and Indian Oil <a href="https://www.mercomindia.com/ntpc-indian-oil-set-up" target="_blank" rel="noopener">signed</a> a memorandum of understanding with South Delhi Municipal Corporation to develop a demonstration waste-to-energy project at the Okhla landfill site in Delhi. About 17,500 tonnes of refuse-derived fuel will be processed using gasification technology. The gas generation will help import petroleum products and save on precious foreign exchange.</p>
<p>Indian Oil and NTPC have also invited bids to set up green hydrogen generation facilities and fuel stations across the country.</p>
<p>During the signing ceremony, Kausik Basu, ED (M&amp;I), IOCL, and V.V. Sivakumar, GM, NGEL, signed the joint venture agreement. The event was attended by Gurdeep Singh, CMD, NTPC Limited, and Shrikant Madhav Vaidya, Chairman, IOCL.</p>
<p>IndianOil currently has a renewable portfolio of 239 MW currently, which the company is expanding through new wind, solar, hydel, and pumped hydro projects.</p>
<p>Recently, the company <a href="https://www.mercomindia.com/indianoil-subsidiary-expand-green-energy-businesses" target="_blank" rel="noopener">said</a> it would consolidate its current green assets under one umbrella to bolster the expansion across all verticals, including biofuels, renewables, green hydrogen, carbon offsets, and carbon capture, utilization, and storage.</p>
<p>Following this, the IOC board approved the formation of a wholly owned subsidiary, subject to the approval of NITI Aayog and the finance ministry.</p>
<p>The subsidiary would help the company expand its operations into low-carbon, new, clean, and green energy businesses.</p>



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					</table><p>Financial support from developed economies to developing nations which is a critical enabler of climate action has been inadequate, said scientists in the latest Intergovernmental Panel on Climate Change (<a href="https://www.ipcc.ch/" target="_blank" rel="noopener">IPCC</a>) report highlighting that the promised mobilization of $100 billion under the Paris Climate Accord hasn’t materialized for the developing countries.</p>
<p>India welcomed the much-needed financial support to provide developing countries with the required technology to help cut greenhouse gas emissions. The report emphasized that India has consistently held the position that development is our first defense against climate change.</p>
<p>Further, the IPCC Synthesis Report said that promoting scientific, indigenous, and local knowledge on climate-centric measures is the need of the hour, along with the available global capital to mitigate the rising levels of greenhouse gas emissions.</p>
<p>One of the effective ways to achieve climate goals is increasing and maintaining continuous investments in climate actions and policies, the report said. It added that public funding through investors, governments, banks, and financial regulators can extend all support required to reduce emissions worldwide.</p>
<p>Christopher Trisos, one of the 93 experts who authored the report, said, “Accelerated climate action will only come about if there is a many-fold increase in finance. Insufficient and misaligned finance is holding back progress. The greatest gains in wellbeing could come from prioritizing climate risk reduction for low-income and marginalized communities, including people living in informal settlements.”</p>
<p>However, while countries have pledged to maintain the global temperature below 1.5 degrees Celsius by 2050 and 2 degrees Celsius by 2070, the report projects that the 2050 target already stands breached owing to over a century of burning fossil fuels that has led to global warming of 1.1 degrees Celsius above pre-industrial levels.</p>
<p>IPCC stated that if global warming is to be limited to 1.5 degrees, emissions need to be cut by almost half by 2030 from the current levels.</p>
<p>The report said that for every 1,000 gigatonnes (Gt) of carbon dioxide (CO2) emitted by human activity, global surface temperature rises by 0.45°C. The remaining carbon budgets from the beginning of 2020 are 500 GtCO2 for a 50% likelihood of limiting global warming to 1.5°C and 1,150 GtCO2 for a 67% likelihood of limiting warming to below 2°C.</p>
<p>Kroll Bond Rating Agency recently <a href="https://cms.mercomindia.com/access-finance-key-raising-eus-per-capita-solar/" target="_blank" rel="noopener">published</a> an analysis stating that with strong financing policies like asset-backed securities, the European Union can generate 680 TW of electricity annually by installing rooftop solar– a quarter of Europe&#8217;s current consumption.</p>
<p>The IPCC report said that effective and equitable conservation of approximately 30-50% of the Earth’s land, freshwater, and ocean will help ensure a healthy planet.</p>
<p>Another author Aditi Mukherji said, “Climate justice is crucial because those who have contributed least to climate change are being disproportionately affected. Almost half of the world’s population lives in highly vulnerable regions to climate change. In the last decade, deaths from floods, droughts, and storms were 15 times higher in highly vulnerable regions.”</p>
<p>IPCC <a href="https://cms.mercomindia.com/rapid-cuts-in-ghg-emissions-needed/" target="_blank" rel="noopener">reported</a> in 2021 that an increase of 1.5°C in global temperature will cause increasing heat waves, longer summers, and shorter winters. A 2°C rise would have devastating effects like reaching critical tolerance thresholds for agriculture and health, directly impacting the food system and human lives.</p>
<p>According to the International Renewable Energy Agency, global investments in energy transition technologies <a href="https://cms.mercomindia.com/investments-renewables-2022-need-increase/" target="_blank" rel="noopener">achieved</a> a historic milestone by reaching a record high of $1.3 trillion in 2022, a 19% increase over 2021 and a 50% jump from the pre-pandemic levels of 2019.</p>



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					</table><p>India has expressed concern about the carbon border measures proposed by the European Union (EU) at a recent meeting of the World Trade Organization’s (<a href="https://www.wto.org/" target="_blank" rel="noopener">WTO</a>) Committee on Trade and Environment.</p>
<p>Presenting a paper on the increasing use of environmental measures as protectionist non-tariff barriers, India said it was concerned about the proposed Carbon Border Adjustment Mechanism (CBAM), which seeks to impose a carbon tariff on carbon-intensive products imported into Europe.</p>
<p>The EU’s carbon measure seeks to put a ‘fair price’ on the carbon emitted during the production of carbon-intensive goods entering the EU and encourage cleaner industrial production in non-EU countries.</p>
<p>The CBAM will initially apply to imported products and commodities like cement, iron and steel, aluminum, fertilizers, electricity, and hydrogen. It will enter into force in its transitional phase on October 1, 2023.</p>
<p>Besides CBAM, India also opposed import restrictions based on the green content of commodities, deforestation-related measures, and environment-based management of minimum residue limits in agriculture.</p>
<p>Indian exporters of commodities, especially aluminum, iron, and steel, to the EU will have to <a href="https://www.mercomindia.com/eus-carbon-deal-accelerate-exporters-transition-renewables" target="_blank" rel="noopener">meet</a> these standards much faster than before to comply with CBAM.</p>
<p>In December, Finance Minister Nirmala Sitharaman, without referring to CBAM, had warned Indian industry to be prepared for the impending tariffs walls being considered by developed countries.</p>
<p>At the same Committee on Trade and Environment meeting, China introduced a proposal to deepen multilateral discussions on the trade aspects and implications of environmental measures with wide ramifications.  China suggested that members start discussions on CBAM at the June CTE meeting.</p>
<p>“Trade policies designed to achieve environmental objectives should be consistent with the fundamental principles and basic rules of the WTO, strike a balance between environmental considerations and trade considerations, and do not constitute protectionist measures or green trade barriers,” China said.</p>
<p>While China has obliquely dubbed the EU carbon tax as a protectionist measure, the country has been the subject of debate for a similar proposal that seeks to <a href="https://www.mercomindia.com/china-contemplates-exports-of-solar-tech" target="_blank" rel="noopener">restrict</a> the export of critical technology related to solar photovoltaic components.</p>
<p>Responding to China’s move, the EU said it would study the proposal, noting that it has been responding to members&#8217; questions in recent years and intended to hold a dedicated information session in the coming months.</p>
<p>The EU also said CBAM will be subject to the EU&#8217;s internal legislative process, which will be finalized in May 2023.</p>
<p>India has maintained that any measures taken to combat climate change should not constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on international trade.</p>



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					</table><p>JSW Neo Energy (<a href="https://www.jsw.in/energy" target="_blank" rel="noopener">JSW Energy</a>) and Greenko KA 01 IREP (<a href="https://greenkogroup.com/" target="_blank" rel="noopener">Greenko</a>) have won the Power Company of Karnataka’s (<a href="https://kpcl.karnataka.gov.in/" target="_blank" rel="noopener">PCKL</a>) auction to supply 1 GW of energy for 8 hours daily from pumped hydro storage projects providing continuous 5-hour discharge.</p>
<p>JSW Neo Energy won 300 MW by quoting ₹14.75 million (~$178,661), and Greenko bagged 700 MW by quoting ₹14.76 million (~$178,782) under the bucket-filling method. Greenko had quoted for 960 MW.</p>
<p>The starting price for the e-reverse auction was set as ₹14.88 million (~$180,235).</p>
<p>The tender was <a href="https://www.mercomindia.com/karnataka-bids-pumped-storage-projects" target="_blank" rel="noopener">floated</a> earlier this month.</p>
<p>PCKL will sign power purchase agreements (PPA) with the successful bidders, which will be valid for 40 years.</p>
<p>The projects must be commissioned within 36 months of signing the PPA. The projects can be located anywhere in Karnataka.</p>
<p>The minimum capacity for the first part of commissioning at one project site will be 50% of the allocated project capacity or 100 MW, whichever is lower. In the case of early part-commissioning, PCKL may procure the power at 75% of the annual fixed cost on a pro-rata basis.</p>
<p>If commissioning is delayed, the project’s performance bank guarantee will be encashed proportionate to the balance capacity not commissioned.</p>
<p>Developers must arrange connectivity to the nearest state transmission utility substation at their own cost.</p>
<p>Last month, the <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Ministry of Power</a> <a href="https://www.mercomindia.com/government-proposes-green-finance-pumped-storage-projects" target="_blank" rel="noopener">proposed</a> supporting pumped storage projects through concessional climate finance. Sovereign green bonds issued for mobilizing resources for green infrastructure may be deployed in developing these projects, which utilize renewable energy for charging.</p>
<p>The ministry has issued draft guidelines for pumped storage projects in the country. The guidelines seek to utilize the immense potential of pumped storage projects in grid stabilization and in meeting the peak power demand.</p>
<p>In August last year, JSW Renew Energy Five Limited, a special purpose vehicle of JSW Energy, had <a href="https://www.mercomindia.com/jsw-renew-energy-wins-seci-tender-1gwh-bess" target="_blank" rel="noopener">won</a> Solar Energy Corporation of India’s auction to set up pilot projects of 500 MW/1000 MWh standalone battery energy storage systems under a build, own, operate, and transfer model. JSW Renew Energy Five had won the total capacity by quoting ₹1.08 million (~$13,566)/ MW/ month.</p>
<p>Subscribe to Mercom’s <a href="https://mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener">India Solar Tender Tracker</a> to stay on top of real-time tender activity.</p>



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					</table><p><a href="https://www.sterlingandwilsonre.com/" target="_blank" rel="noopener">Sterling and Wilson Renewable Energy</a>, the solar engineering, procurement, and construction (EPC) arm of Shapoorji Pallonji Group, won <a href="https://www.ntpc.co.in/">NTPC</a>’s tender for the balance of system (BOS) package to develop 1.2 GW (4*300 MW) of solar power projects at Khavda renewable park in Gujarat.</p>
<p>The aggregate capacity of the project is approximately 1.5 GW. The total bid value, including the operation and maintenance for 3 years, is ₹21 billion (~$254 million).</p>
<p>NTPC Renewable Energy, the wholly-owned subsidiary of NTPC, <a href="https://www.mercomindia.com/ntpc-bos-tender-1-2-gw-solar-projects-gujarat" target="_blank" rel="noopener">invited</a> bids for the project in November last year. The scope of work included the design, engineering, manufacturing, installation, and commissioning of solar projects.</p>
<p>NTPC said that the projects could be in diverse sectors, including power, steel, oil and gas, petrochemical, fertilizer, cement, coal mining, or any other process industry. The Ministry of New and Renewable Energy gave the go-ahead to NTPC Renewable Energy in 2021 to set up the renewable park at the Khavda solar park.</p>
<p>Last June, NTPC Renewable Energy also <a href="https://www.mercomindia.com/ntpc-floats-bos-tender-solar-projects-gujarat" target="_blank" rel="noopener">invited</a> bids for the BoS package for 1,255 MW (3*315 MW+310 MW) of solar projects at the Khavda park. The total contract value, including three years of operation and maintenance, is about ₹22 billion (~$275.41 million).</p>
<p>Sterling and Wilson Renewable Energy emerged as the lowest bidder for the 1,255 MW project.</p>
<p>Per the tender terms, Sterling and Wilson deposited ₹50 million (~$612,045) as bid security for one block of 300 MW capacity, ₹100 million (~$1.22 million) for two blocks totaling 600 MW, and ₹200 million (~$2.45 million) for three or more blocks totaling 900 MW and 1,200 MW, respectively.</p>
<p>According to Mercom’s <a href="https://www.mercomindia.com/product/mercoms-india-solar-market-leaderboard-2022-market-shares-and-profiles" target="_blank" rel="noopener">India Solar Market Leaderboard 2022</a>, Sterling and Wilson, Siemens Gamesa, and Tata Power Solar were the top utility-scale solar engineering, procurement, and construction service-providing companies in 2021. Sterling and Wilson led the way with a market share of 12%.</p>
<p>Last year, Shapoorji Pallonji <a href="https://cms.mercomindia.com/shapoorji-pallonji-to-offload-1-25-stake-in-sterling-and-wilson/" target="_blank" rel="noopener">proposed</a> to sell 2,370,787 equity shares having a face value of ₹1 (~$0.013) each, amounting to a 1.25% equity it holds in its solar engineering and construction arm Sterling and Wilson Renewable Energy.</p>



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					</table><p>Indian Oil Corporation (<a href="https://iocl.com/" target="_blank" rel="noopener">IOCL</a>) has invited bids for the operation and maintenance (O&amp;M) of an existing 8 MW solar power project at the LPG bottling plant at Sanand in Ahmedabad for five years.</p>
<p>The last date to submit the bids is April 15, 2023. Bids will be opened on April 17.</p>
<p>The project&#8217;s estimated cost is ₹40.9 million (~$494,921).</p>
<p>Bidders need not submit any earnest money deposit to participate in bidding. The successful bidder must submit an amount equivalent to 3% of the total contract value as a security deposit.</p>
<p>In cases where the bidder has completed one such similar work, the cost should not be less than ₹4.1 million (~$49,541). For two similar works, each should not cost less than ₹3.3 million (~$39,608) and not cost less than ₹2.5 million (~$29,676) for three similar works.</p>
<p>For micro and small enterprises (MSEs), they should have completed one similar work costing not less than ₹3.47 million (~$42,031) or two similar works, each costing not less than ₹2.8 million (~$33,673), or three similar results, each costing not less than ₹2.1 million (~$25,194).</p>
<p>Also, bidders should have executed work consisting of the supply, installation, and O&amp;M of a 4 MW solar power project or higher capacity during the last five years up to the previous day of the month before the one in which the tender has been invited.</p>
<p>The work should have been satisfactorily carried out by the party directly in their name as a direct order and not in any other form such as MoU, joint venture, sister concern, or agent, and subcontracted work will not be considered.</p>
<p>The annual turnover of bidders during the preceding three financial years should be at least ₹4.9 million (~$59,473). For MSEs, the annual turnover should be at least 85% of 60% of the estimated work cost under consideration or ₹4.17 million (~$50,509).</p>
<p>IOCL <a href="https://www.mercomindia.com/indian-oil-tender-om-5-mw-solar" target="_blank" rel="noopener">invited</a> bids for the comprehensive annual rate contract for the O&amp;M of a 5 MW solar power project at IOC&#8217;s Rawra facility in Jodhpur, Rajasthan, for three years.</p>
<p>IOCL had <a href="https://www.mercomindia.com/indian-oil-invites-4-5-mw-solar-in-tamil-nadu" target="_blank" rel="noopener">invited</a> bids for comprehensive O&amp;M of a 4.5 MW grid interactive ground-mounted solar power project at Narimanam, Tamil Nadu.</p>
<p>Subscribe to Mercom&#8217;s <a href="https://www.mercomindia.com/product/india-solar-tender-tracker" target="_blank" rel="noopener">India Solar Tender Tracker</a> to stay on top of real-time tender activity.</p>



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					</table><p>Researchers at the Indian Institute of Technology Mandi (<a href="https://www.iitmandi.ac.in/" target="_blank" rel="noopener">IIT Mandi</a>) have claimed a breakthrough in producing metal oxide layers for use in advanced architecture silicon solar cells using a cost-effective method.</p>
<p>This innovative process could pave the way for the commercial production of advanced solar cells with improved efficiency and lower costs, contributing to the widespread adoption of renewable energy sources.</p>
<p>Their findings have been published in <em>Materials Science: Materials in Electronics</em> journal.</p>
<p>Metal oxides, such as nickel oxide, are essential materials in the field of advanced architecture silicon solar cells.</p>
<p>These semiconductors play a crucial role in absorbing and converting solar energy into electricity, a process vital for generating renewable energy.</p>
<p>While nickel oxide is important for advanced solar cells, it is expensive because the required films are tiny, and the equipment and materials are costly. Current methods are not practical for commercial use.</p>
<p>The IIT researchers have developed a cost-effective method for producing ultrathin films of metal oxides using cheaper starting materials.</p>
<p>The approach involves using an aerosol-assisted chemical vapor deposition technique to deposit a thin nickel oxide film onto a silicon substrate.</p>
<p>Kunal Ghosh, who led the research team, explained that aerosol-assisted chemical vapor deposition is a technique used to produce high-quality, uniform thin films on various surfaces, including silicon, by delivering a vapor phase precursor as an aerosol.</p>
<p>The team utilized nickel nitrate to create nickel oxide films with a thickness of around 15 nanometres. It analyzed the morphology and composition of the resulting nickel oxide films using various characterization techniques.</p>
<p>The researchers also investigated the diode characteristics of the deposited thin film on the silicon substrate and determined that it was suitable for the production of solar cells.</p>
<p>These findings suggest that the newly developed method for producing nickel oxide films could lead to the development of high-performance, low-cost solar cells with great potential for large-scale commercial use.</p>
<p>In October 2022, researchers of the university <a href="https://www.mercomindia.com/iit-mandi-researchers-claim-eco-friendly-method-to-recycle-wind-turbines" target="_blank" rel="noopener">claimed</a> to have successfully used microwaves to recycle polymer composites from old wind turbine blades, using a rapid, sustainable, and comparatively eco-friendly method.</p>
<p>In December 2022, researchers at IIT Roorkee <a href="https://www.mercomindia.com/iit-roorkee-claim-17-efficiency-perovskite-solar-cells" target="_blank" rel="noopener">said</a> they had successfully developed a prototype of a low-cost, high-quality perovskite solar cell that achieved a stable power conversion efficiency (PCE) of 17.05%.</p>



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					</table><p>The government has allowed <a href="https://www.ntpc.co.in/" target="_blank" rel="noopener">NTPC</a> to invest in its subsidiary, NTPC Green Energy (NGEL), beyond the limit allowed for a ‘maharatna’ central public sector enterprise (CPSE).</p>
<p>The extant guidelines prescribe a ceiling of 30% of a CPSE’s net worth for making such investments.</p>
<p>The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, also exempted NGEL’s investment in NTPC Renewable Energy and its other joint ventures and subsidiaries, subject to a ceiling of 15% of its net worth beyond the monetary ceiling of ₹50 billion (~$605 million) to ₹75 billion (~$1 billion).</p>
<p>NTPC has set a target of reaching a renewable energy operational capacity of 12 GW by 2025 and 60 GW capacity by 2032.</p>
<p>The exemption will help decrease India’s dependency on conventional sources of energy by diversifying the country’s energy generation sources and decreasing the coal import bills. Further, it will also help ensure a 24X7 power supply to every corner of the country.</p>
<p>The exemption will accelerate India’s efforts in achieving the goal of 500 GW of non-fossil energy capacity by the end of the current decade.</p>
<p>The investments by NTPC and its subsidiaries align with the government’s ‘Panchamrit’ program that was announced at the COP26 Summit as part of India’s contribution to climate action.</p>
<p>NTPC Green Energy has 15 renewable energy assets of 2,861 MW, which are operational or nearing commercial operation date.</p>
<p>NTPC incorporated its green energy arm in April 2022 to support its green targets and <a href="https://www.mercomindia.com/ntpc-to-transfer-15-renewable-assets-worth" target="_blank" rel="noopener">inked</a> a business transfer agreement with the latter to transfer its 15 solar and wind assets.</p>
<p>The projects have a combined capacity of 2.8 GW. Of the 15 renewable projects, 13 projects with 2.2 GW capacity are fully operational, and the remaining two projects totaling 600 MW have attained an operational capacity of 350 MW.</p>
<p>The net worth of the 15 renewable energy assets is ₹13.7 billion (~$171.8 million) as of March 31, 2022, which is 1% of the net worth of NTPC, i.e., ₹1.4 trillion (~$17 billion).</p>
<p>Last month, NGEL <a href="https://www.mercomindia.com/ntpc-proposals-green-term-loan-of-%e2%82%b990-billion" target="_blank" rel="noopener">invited</a> proposals from banks for a green term loan of up to ₹90 billion (~$1 billion) to repay debt obligations towards NTPC against the acquisition of 15 renewable assets.</p>


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Energy Storage Firms Tap $26.4 Billion in Corporate Funding in 2022, up 55% YoY

Karnataka Tariff Hike Proposal to Deter Consumers from Availing Open Access

Study Says EV Batteries Can Meet Short-Term Grid Storage Demand by 2030


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					</table><p>India added 2.5 GW of solar open access in the calendar year (CY) 2022, a year-over-year (YoY) increase of 92% from the 1.3 GW installed in CY 2021, according to the newly released <a href="https://mercomindia.com/product/india-solar-open-access-market-report-q4-2022/" target="_blank" rel="noopener">2022 Q4 &amp; Annual Mercom India Solar Open Access Market Report</a>.</p>
<p>The year marked the highest-ever annual installations of solar open access, driven by developers’ need to avoid a 40% Basic Customs Duty on solar modules. The higher tax rates became <a href="https://mercomindia.com/bcd-favor-solar-manufacturers/" target="_blank" rel="noopener">effective</a> from April 1 last year.</p>
<p>Further, the commissioning of open access projects accelerated owing to a lack of clarity about the applicability of the Approved List of Models and Manufacturers regulations. However, the government <a href="https://mercomindia.com/mnre-almm-order-open-access-net-metering-projects/" target="_blank" rel="noopener">clarified</a> in October that projects which had applied for approval before October 1 last year would be exempt from ALMM.</p>
<p>Additionally, the commissioning of projects delayed in 2021 due to the COVID-19 pandemic also contributed to the doubling of installed capacity in 2022 YoY.</p>
<p>However, the breakneck project commissioning speed slowed down drastically in the fourth quarter (Q4) of CY 2022 as India added just 293 MW of solar open access capacity, a decline of 52% quarter-over-quarter and 10% YoY.</p>
<p>Karnataka added the most solar open access capacity in CY 2022, followed by Maharashtra, Tamil Nadu, Chhatisgarh, and Uttar Pradesh. The top five states accounted for 77% of the total installations during the year.</p>
<p>The cumulative installed solar open access capacity stood at 7.7 GW as of December 2022.</p>
<p><img decoding="async" loading="lazy" class="aligncenter wp-image-50789 size-medium" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/Solar-Open-Access-Installations-MW-1-300x194.png" alt="Solar Open Access Installations (MW)" width="300" height="194" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/Solar-Open-Access-Installations-MW-1-300x194.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/Solar-Open-Access-Installations-MW-1-768x497.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/Solar-Open-Access-Installations-MW-1-1536x994.png 1536w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/Solar-Open-Access-Installations-MW-1-650x420.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/Solar-Open-Access-Installations-MW-1-624x404.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/Solar-Open-Access-Installations-MW-1-600x388.png 600w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/Solar-Open-Access-Installations-MW-1.png 1671w" sizes="(max-width: 300px) 100vw, 300px" /></p>
<p>Karnataka remained the leading state, accounting for over 32% of the capacity addition in the quarter. The top five states contributed over 96% of all open access installations during the quarter.</p>
<p>The development pipeline of solar open access projects in the country totaled 6.6 GW as of Q4 2022. Nearly 70% of this pipeline is in Andhra Pradesh, Rajasthan, Karnataka, Maharashtra, and Gujarat.</p>
<p>Cumulatively, Karnataka was the leading state in solar open access installations, accounting for nearly 36% of the total capacity, followed by Maharashtra, with over 12% of the total installations.</p>
<p>The captive and group captive models have seen a rise in demand in the country, given the surcharge exemptions and lower net landed costs.</p>
<p>The third-party installations, however, saw a considerable impact due to the substantial cross-subsidy and additional surcharges in states like Karnataka, Telangana, and Maharashtra.</p>
<p>In Telangana, Haryana, Gujarat, and Uttarakhand, the additional surcharges were altered during the last quarter leading to revised net landed costs.</p>
<p>Chhattisgarh continued to have the lowest net landed cost among all states, followed by Andhra Pradesh and Odisha.</p>
<p><img decoding="async" loading="lazy" class="aligncenter wp-image-50790 " src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/Top-5-States-Cumulative-Solar-Open-Access-Installed-Capacity.png" alt="Top 5 States Cumulative Solar Open Access Installed Capacity" width="368" height="397" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/Top-5-States-Cumulative-Solar-Open-Access-Installed-Capacity.png 1097w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/Top-5-States-Cumulative-Solar-Open-Access-Installed-Capacity-278x300.png 278w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/Top-5-States-Cumulative-Solar-Open-Access-Installed-Capacity-768x830.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/Top-5-States-Cumulative-Solar-Open-Access-Installed-Capacity-650x702.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/Top-5-States-Cumulative-Solar-Open-Access-Installed-Capacity-624x674.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/03/Top-5-States-Cumulative-Solar-Open-Access-Installed-Capacity-600x648.png 600w" sizes="(max-width: 368px) 100vw, 368px" /></p>
<p>&#8220;The solar installations in the open access segment overcame the regulatory challenges and recorded the best year to date despite the odds. The overwhelming growth reflects the demand by industrial and commercial units keen on sourcing clean power and conscious of the economic benefits. Though the government has announced that consumers with sanctioned load of 100 kW and above are eligible to source green power through open access, consumers below 1 MW demand remain largely underserved and are a dormant market,&#8221; commented Priya Sanjay, Managing Director at Mercom India.</p>
<p><strong>Short-term Market</strong></p>
<p>Andhra Pradesh was the largest electricity supplier in the Green Day-Ahead Market (G-DAM), accounting for over 40% of the market share in Q3 CY 2022.</p>
<p>Gujarat emerged as the leading procurer of energy from the G-DAM, followed by Maharashtra, which accounted for 14.6% and 12.5% of the total power purchased during Q3 CY 2022.</p>
<p>The Delhi High Court&#8217;s <a href="https://mercomindia.com/delhi-high-court-suspends-rec-trading-for-six-weeks/" target="_blank" rel="noopener">suspension</a> of trading in renewable energy certificates issued before October 31, 2022, for six weeks adversely impacted energy trading in the fourth quarter.</p>
<p>Mercom expects 2023 to be a stronger year for solar open access installations, given the significant pipeline, removal of the ALMM mandate, and lower power purchase agreement tariffs.</p>
<p>The increased awareness of the cost-saving benefits offered by open access, particularly under captive and group captive business models, among C&amp;I consumers, is expected to encourage the rapid adoption of open access in 2023.</p>
<p>The report further provides an in-depth analysis of the solar open access segment in seventeen states, including a comprehensive coverage of open access charges, retail supply tariffs, and the market size of each state.</p>
<p>The report includes insights on the average power purchase agreement prices, net landed costs, banking regulations, short-term transactions, and open access policies and regulations that were introduced in Q4 2022.</p>
<p>The report sheds light on the perspectives and opinions of leading open access installers nationwide during the quarter.</p>
<p><strong>The &#8220;2022 Q4 &amp; Annual Mercom India Solar Open Access Market Report&#8221; report is 79 pages and covers vital information and data on the market. For the complete report, visit: </strong><a href="https://mercomindia.com/product/india-solar-open-access-market-report-q4-2022/" target="_blank" rel="noopener">https://mercomindia.com/product/india-solar-open-access-market-report-q4-2022/</a></p>


India Installs a Record 2.5 GW of Solar Open Access in 2022, Up 92% YoY


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					</table><p>The Kerala State Electricity Board (<a href="https://kseb.in/index.php?lang=en" target="_blank" rel="noopener">KSEB</a>) has invited bids to empanel solar developers to set up 100 MW of grid-connected rooftop and ground-mounted projects.</p>
<p>Empanelled vendors also must furnish operation and maintenance (O&amp;M) services for five years.</p>
<p>The project is divided into four parts:</p>
<ul>
<li>Part A: projects up to 10 kW</li>
<li>Part B: projects above 10 kW and up to 50 kW</li>
<li>Part C: projects above 50 kW and up to 100 kW</li>
<li>Part D: projects above 100 kW</li>
</ul>
<p>The last day to submit the bids is May 6, 2023. The bids will be opened on May 15.</p>
<p>Bidders must furnish an earnest money deposit of ₹100 (~$1.21)/ kW subject to a maximum of ₹10 million (~$121,194). Empanelled vendors must submit 10 % of the awarded contract value as a performance bank guarantee.</p>
<p>Any bidder who submits a quote for Part B, Part C, or Part D must also include a mandatory quote for Part A, which should not be less than 25% of their total quoted capacity for the other three parts combined.</p>
<p>The annual O&amp;M charge for the first year should not be lower than 1.5% of the project cost, and for the second year should not be lower than the first year O&amp;M cost with an escalation rate of 5.72%.</p>
<p>Projects with a capacity of 10 kW or more must be commissioned within six months, and those below 10 kW must be commissioned within three months.</p>
<p>Bidders should have installed and commissioned at least 1 MW of rooftop or ground-mounted solar projects in India. For quoting more than the minimum capacity, they should demonstrate that they have installed and commissioned at least 50% of quoted capacity six months before the bid opening date.</p>
<p>They should have an annual turnover of at least ₹15 million (~$181,743)/ MW for two financial years within the last five years. Their net worth should be at least ₹7.5 million (~$90,871)/ MW of quoted capacity.</p>
<p>The empanelled vendors must bear the distribution infrastructure cost from the solar generation facility to the interconnection point of equipment, data acquisition, and communication facility.</p>
<p>Energy generated under this contract will be accounted against KSEB&#8217;s renewable purchase obligation.</p>
<p>Last April, KSEB <a href="https://www.mercomindia.com/epc-tender-11-mw-21-locations-kerala" target="_blank" rel="noopener">invited</a> bids to appoint EPC contractors to develop 11 MW of ground-mounted, grid-connected solar power projects at various locations in Kerala.</p>
<p>Subscribe to Mercom&#8217;s <a href="https://mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener">India Solar Tender Tracker</a> to stay on top of tender activity in real-time.</p>


Kerala Issues Empanelment Tender for 100 MW of Solar Projects


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					</table><p>Gujarat Urja Vikas Nigam (<a href="https://www.guvnl.com/" target="_blank" rel="noopener">GUVNL</a>) has invited bids to procure power from 500 MW of grid-connected wind projects (Phase V) with a greenshoe option of an additional capacity of up to 500 MW.</p>
<p>The last day to submit the bids online is April 11, 2023. Bids will be opened on April 17.</p>
<p>Bidders will have to pay ₹300,000 (~$3,628) plus 18% Goods and Services Tax (GST) as bid processing fee.</p>
<p>They must also furnish ₹1 million (~$12,092)/MW as an earnest money deposit. The successful bidder will have to furnish an amount equivalent to ₹2 million (~$24,184)/MW at the time of signing the power purchase agreement (PPA).</p>
<p>GUVNL may enter into a PPA with successful bidders for 25 years from the scheduled commercial operation date of the project or the date of full commissioning of the project, whichever is earlier.</p>
<p>Projects considered for the tender include the ones under construction, projects which are not yet commissioned, and projects already commissioned but do not have any long-term PPA with any agency and selling power on a short-term or merchant plant basis. These projects should not have been accepted under any other central or state programs or have any obligation toward existing buyers.</p>
<p>Bidders can bid for a minimum capacity of 25 MW for intrastate projects and a minimum capacity of 50 MW for interstate projects.</p>
<p>Bidders should ensure pre-bid tie-up with not less than three manufacturers for the project’s design, engineering, supply, procurement, construction, and operation &amp; maintenance.</p>
<p>The net worth of bidders as of the last day of the previous financial year should not be less than ₹12 million (~$145,104)/MW of the quoted capacity.</p>
<p>In order to ensure that quality systems are installed, only type-certified wind turbine models listed in the Revised List of Models and Manufacturers of wind turbines prepared by the Ministry of New and Renewable Energy will be allowed.</p>
<p>According to the tender documents, the project should be designed for interconnection with the state transmission utility or the central transmission utility substation through a dedicated transmission line for the delivery of energy at the Gujarat Energy Transmission Corporation periphery.</p>
<p>The successful bidder will be responsible for getting grid connectivity.</p>
<p>All expenses, including wheeling charges and losses between the project and the delivery point, will have to be borne by the successful bidder without any reimbursement by GUVNL.</p>
<p>The declared annual capacity utilization factor (CUF) should not be less than 22%. The successful bidders will have to maintain generation to achieve annual CUF within +20% and -20% of the declared CUF during the PPA duration of 25 years.</p>
<p>In January this year, Juniper Green Energy, WYN Renewables (EDF Renewables), ACME Pokharan Solar, and Solarcraft Power India <a href="https://mercomindia.com/juniper-edf-renewables-acme-solarcraft-win-guvnls-auction/" target="_blank" rel="noopener">won</a> GUVNL’s auction to supply power from 300 MW of grid-connected wind projects (Phase-IV) with a greenshoe option of an additional 300 MW.</p>
<p>Subscribe to Mercom’s <a href="https://mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener">India Solar Tender Tracker</a> to stay on top of tender activity in real time.</p>


Gujarat Invites Bids to Procure 500 MW of Wind Power with Greenshoe Option


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					</table><p>Small businesses are open to adopting rooftop solar if loan repayment is not an additional burden and is equal to their savings on electricity bills. Entities in the commercial and industrial (C&amp;I) segment are increasingly moving towards renewable energy options, including rooftop solar, given the immense benefits they bring in terms of cost savings and reputation as sustainable companies.</p>
<p>Vikas Agarwal, the co-founder of non-banking financial company <a href="https://creditfair.in/" target="_blank" rel="noopener">Credit Fair</a>, said in an interview with Mercom India that there is an uptick in rooftop installations in the residential segment after the Union government <a href="https://mercomindia.com/modi-launches-national-portal-rooftop-solar/" target="_blank" rel="noopener">launched</a> a national portal for rooftop solar to submit applications.  The government has also<a href="https://mercomindia.com/residential-rooftop-solar-subsidies-to-be-directly-transferred-to-the-consumers/" target="_blank" rel="noopener"> started</a> direct transfer of subsidies to the consumers’ bank accounts.</p>
<p><strong>Can you briefly introduce Credit Fair to our audience, specifically your green loan offerings?</strong></p>
<p>Credit Fair started operations in 2018 as a non-banking financial company regulated by RBI. One of the four categories of businesses we finance is solar rooftop installation which makes up roughly 20% of our loan book.</p>
<p><strong>What loan products do you offer for residential rooftop solar, and what are some of the criteria to qualify for these loans?</strong></p>
<p>We finance three categories of rooftop solar installation: residential (standalone units), housing societies, and MSMEs. The residential rooftop systems range between 3-5 kW. The systems for MSMEs could range from 20-50 kW. We are currently processing 500 applications in a month from all over India.</p>
<p><strong>What are the other concerns that keep individual households away from adopting solar rooftop solar?</strong></p>
<p>With the improvement in the timely disbursement of subsidies from the central government, individual households have started adopting rooftop solar solutions.</p>
<p>Depending on the project, the subsidy covers about 20-25% of the cost. Earlier, the subsidy would come to the installer, but now the central government has dedicated a web portal for such applications. Consumers can fill in the details and receive the subsidy amount directly into their bank account within 40-50 days of commissioning.</p>
<p><strong>What is the average cost of constructing a residential system at 3 kW? What loan amount can Credit Fair release for such a system? Will you finance 100% of the project value?</strong></p>
<p>Depending on the quality of engineering, procurement, and construction (EPC) work, a 3 kW system can cost up to ₹225,000 ($2,718). Credit Fair provides about 80% of the total cost as loans, while the remaining 20% is a down payment from the customers. We disburse the loan, and then the installation work starts. Usually, we pay the installers directly on behalf of the consumer.</p>
<p><strong>Do you provide loans directly to households or through partnerships with rooftop installers? How does a rooftop installer become a partner of Credit Fair?</strong></p>
<p>We have recently onboarded Tata power as the installer. They have 400 dealers all over India. So, all these dealers will now be on board with us to do this business. We are also working with Solar Square.</p>
<p><strong>Is the disbursal of subsidies from state governments a challenge for residential rooftop solar?</strong></p>
<p>There is barely any subsidy from state governments, but the central government system of timely disbursal of subsidies has improved with the advent of the new central portal for rooftop solar installations.</p>
<p><strong>What is the profile of C&amp;I consumers to whom you provide loans? What is the average size of C&amp;I projects that you finance?</strong></p>
<p>Currently, we cater to small businesses that typically require up to 50 kW systems. We have clients that include flour mills and other metalwork firms.</p>
<p><strong>What are the typical concerns that deter small C&amp;I consumers from adopting solar?</strong></p>
<p>We have found that medium enterprises with turnover above ₹500 million (~$6 million) usually know the benefits of bringing solar into their energy mix. But smaller units are reluctant about the upfront investment. However, installers and financial companies like us have a substantial role in convincing these businesses to adopt solar.</p>
<p><strong> </strong><strong>Do you customize EMIs so that they can be covered within the energy savings for a C&amp;I entity?</strong></p>
<p>We structure our EMIs to ensure that it’s equal to the amount of savings accrued to the business, and the tenure is typically 3-5 years. This model ensures that there is no additional interest payment burden for the firms, making it easier for them to adopt solar.</p>
<p>The loan ticket size is typically ₹1.5-2 million (~$18,125-$24,166) and can go up to ₹5 million (~$60,388)<strong>.</strong></p>
<p>During the underwriting process, we ask for data regarding electricity bills for the past three months and cash flow status. Based on this, we calculate the power saving and design our EMIs so that the savings are used to pay off the loan.</p>
<p><strong>Do you have loans for electric vehicles?</strong></p>
<p>We do have loans for electric vehicles, but it’s not a big portfolio currently.</p>
<p><strong>What are your plans for the next five years? Do you see the green loan business growing?</strong></p>
<p>We are aggressively focusing on the green loan business and target 40% of the total loan book to be green financing in the next two years.</p>
<p>It translates to assets under management (AUM) of ₹10 billion (~$121 million) with ₹4 billion (~$48.4 million) of green loans by FY 25.</p>
