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First test of solar power satellite hardware conducted by NRL in orbit

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U.S. Naval Research Laboratory engineers launched PRAM, the Photovoltaic Radio-frequency Antenna Module, aboard an Air Force X-37B Orbital Test Vehicle on May 17 as part of a comprehensive investigation into prospective terrestrial use of solar energy captured in space.

Paul Jaffe, PRAM principal investigator stated that, to their knowledge, this experiment was the first test in orbit of hardware designed specifically for solar power satellites, which could play a revolutionary role in our energy future.

The 12-inch square tile module will test the ability to harvest power from its solar panel and transform the energy to a radio frequency microwave.

Chris Depuma, PRAM program manager commented that, PRAM could convert sunlight for microwave power transmission and they could’ve also converted for optical power transmission. Converting to optical might would make more sense for lunar applications because there’s no atmosphere on the Moon. The disadvantage of optical is that we could lose a lot of energy through clouds and atmosphere.

The use of solar energy to operate satellites began at the start of the space age with another NRL spacecraft: Vanguard I, the first satellite to have solar cells. This current experiment focuses on the energy conversion process and resulting thermal performance. The hardware will provide researchers with temperature data, along with PRAM’s efficiency in energy production. This information will drive the design of future space solar prototypes.

Depending on the results, the team aims ultimately to build a fully-functional system on a dedicated spacecraft to test the transmission of energy back to Earth. The development of a space solar capability could potentially help provide energy to remote installations like forward operating bases and disaster response areas.

This flight experiment enables researchers to test the hardware in actual space conditions. Incoming sunlight travels through the Earth’s atmosphere, both filtering the spectrum and reducing its brightness. A space solar system traveling above the atmosphere would catch more energy from each of the sunlight’s color bands.

There is more blue in the spectrum in space, allowing us to add another layer to solar cells to take advantage of that, stated Jaffe. He also added that, it is one reason why the power per unit area of a solar panel in space is greater than on the ground.

The National Security Space Office recommended in a 2007 feasibility study to investigate solar power satellite technology. NRL’s expertise with solar-powered satellites since the late 1950s and long history as a pioneer in space, including in the development of GPS, led researchers to further explore this emergent field.

Contributing and supporting partners for this effort included the Operational Energy Capability Improvement Fund in the Office of the Under Secretary of Defense for Research and Engineering, the U.S. Naval Research Laboratory, the Department of the Air Force Rapid Capabilities Office, the Department of Defense Space Test Program, Boeing, TSC Praxis Operations, Gulfview Research, Odin Engineering, and SpaceQuest.

MNRE Drafts Guidelines and model PPA for Implementation of Off-Grid Solar Power Plants in RESCO Model

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Ministry of New and Renewable Energy (MNRE), the nodal Ministry of the Government of India has drafted guidelines and model PPA for Implementation of Off-Grid Solar Power Plants in the RESCO model under MNRE Programme – for comments of stakeholders.

Under the Phase III of Off-grid and Decentralized Solar PV Applications Programme of MNRE, off-grid solar power plants of individual size up to 25 kWp can be installed in areas where grid power has not reached or is not reliable. Such plants are mainly aimed at providing electricity to Government schools, hostels, panchayats, police stations, and other public service institutions.

Recently the Scheme has been extended up to 31.3.2021 and applicable only for North-eastern States for installation of off-grid solar PV plants through RESCO mode with Central financial assistance (CFA) of 90% of the benchmark cost of the system.

The order stated that “As the intended beneficiaries for off-grid solar power plants are public service institutions, there could be difficulty in arranging the beneficiary share in an upfront manner. Further, after the guarantee period is over, continuing of O&M of the plant is an issue due to the fund and technical constraints of the beneficiary. In order to effectively utilize the costly assets of the solar PV system, it has been decided that such a system should be operated through RESCO mode. These guidelines provide an implementation framework for the operation of off-grid solar PV systems through RESCO mode.”

With an objective to ensure proper repair and maintenance of the off-grid solar power plants to be installed under the Programme and promote efficiencies in operation, it has been decided to introduce a RESCO model for such systems. The plants would be eligible for CFA at 90% of the benchmark cost. This CFA provided by MNRE would reduce the financial burden to a significant level, which otherwise is very high in per-unit terms due to the smaller size of plants and investment in storage batteries. Under the program, off-grid solar power plants can be installed in areas where the grid power is not available and areas where grid power though available is not reliable.

Under the RESCO model, it is proposed that the vendor will install and operate the solar power plant of capacity up to 10 kWp for at least 10 years and solar PV plants of capacity above 10 kWp for at least 15 years. Solar power plants will be installed by the RESCO on a BOOT basis. After completion of this time period, the plant will be handed over to the beneficiary in operating condition. 

The draft stated that there could be two different financial models for operating a solar power plant depending upon payment of CFA: (i) Upfront payment of CFA: The MNRE CFA of 90% of the benchmark cost will be paid upfront after successful commissioning of the plant. (ii) Payment of CFA in installments: To enable the availability of funds at the time of replacement of batteries, the CFA may be released in installments. a. 50% of MNRE CFA at the time of commissioning and balance 50% CFA at the end of five years, or replacement of batteries, whichever is later. This option will be available for projects up to 10 kWp capacity. This will ensure the smooth operation of the plant for the complete period of contract of 10 years. b. For projects of capacity more than 10 kWp and up to 25 kWp having a 15 years contract, MNRE CFA will be released in three installments. 50% of MNRE CFA will be released at the time of commissioning; the second installment of 25% of CFA will be released at the end of five years, or the first replacement of batteries, whichever is later. Balance 25% of CFA will be released at the end of ten years, or second replacement of batteries, whichever is later. 

A representative system of 4 kWp has been considered for the estimation of the tariff. The average daily solar power generation per kWp of solar panels is considered 2.5 kWh as NE Region has lesser sunny days and low solar radiation levels. Therefore, the daily minimum guaranteed solar power would be 10 kWh. With battery back-up of 7.2 VAh per Wp total battery requirement would be 28.8 kWh. It is assumed tubular-gel batteries having a life of 4-5 years would be used and required to be replaced only once (at power producer’s cost) during the contract period of 10 years. MNRE benchmark cost has been considered for arriving at the total cost of the project. The developer will arrange a loan @ 12% for investment in the project. 

The case I: subsidy is paid upfront In this case the levelised tariff discovered is Rs. 5.96 per kWh (Annexure-I) Case II: 50% subsidy is paid upfront and balance 50% after completion of 5 years, In this case, the levelised tariff discovered is Rs. 9.55 per kWh (Annexure-II).

About the implementation of guidelines, the order stated that the Implementation Timelines Project shall be installed and commissioned by the successful RESCO within 3 months from placement of award by implementing agency. A maximum extension of 3 months can be provided to RESCO, provided the reasons for the delay are beyond the control of the RESCO. Any delay beyond 3 months will result in the cancellation of the award. 

It has been highlighted that only indigenously manufactured PV modules should be used in the Programme and The Power Producer shall give 10 days advance notice to conduct the testing of the Project and shall conduct testing of the Project in the presence of

Purchaser’s designated representative. The purchaser shall pay all amounts due hereunder within 30 days after the date of the receipt of the invoice.

In case payment of any invoice is delayed by the Purchaser beyond its due date, a late payment surcharge shall be payable by Purchaser to the Power Producer at the rate of 1.25% per month (“Late Payment Surcharge”) calculated on the amount of outstanding payment, calculated on a day to day basis for each day of the delay, compounded on monthly rates. Late Payment Surcharge shall be claimed by the Power Producer, through its subsequent invoice. 

It has been determined that If a Force Majeure Event shall have occurred that has affected the Power Producer’s performance of its obligations hereunder and that has continued for a continuous period of one hundred eighty (180) days, the Purchaser shall be entitled to terminate the Agreement and if such Force Majeure Event continues for further ninety (90) days period, the Agreement shall automatically terminate. Upon such termination for a Force Majeure Event, neither Party shall have any liability to the other (other than any such liabilities that have accrued prior to such termination).

The Parties agree and acknowledge that the Power Producer may intend to novate the Agreement to a party, and has the right to transfer any or all of its rights and obligations under this Agreement to a party or any other third party (“New Party”), with the consent of the Power Purchaser. The Power Purchaser shall not unreasonably withhold such consent. Upon Novation, the New Party shall automatically and without any further action be entitled to all the same rights and assume the same obligations, under this Agreement, as if it were originally a party to this Agreement. Further, the Purchaser hereby agrees and undertakes that, promptly upon receiving a request from the Power Producer, the Purchaser shall execute such further writings, deeds and/or agreements and take all such further actions as may be necessary for effecting or implementing the transfer of any or all of the Power Producer’s rights and/or obligations under this Agreement to the New Party. If the parties agree to do Novation then a separate Novation agreement shall be executed.

It has been stated in the order that The failure of the Power Producer or Purchaser to enforce any of the provisions of the Agreement, or the waiver thereof, shall not be construed as a general waiver or relinquishment on its part of any such provision in any other instance or of any other provision in any instance and If any dispute of any kind whatsoever arises between Purchaser and Power Producer in connection with or arising out of the contract including without prejudice to the generality of the foregoing, any question regarding the existence, validity or termination, the parties shall seek to resolve any such dispute or difference by mutual consent. If the parties fail to resolve such a dispute or difference by mutual consent, within 45 days of its arising, then the dispute shall be referred by either party by giving notice to the other party in writing of its intention to refer to arbitration as hereafter provided regarding the matter under dispute. No arbitration proceedings will commence unless such notice is given. 

Introducing floating solar PV technology in Bangladesh

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Photo credit: Ezaz Al Qudrat A Mazid, managing director, Solar EPC Development Limited

Solar energy is the largest energy resource on earth that offers abundant renewable energy resource to mankind relatively well-spread over the globe. It can be captured and transformed into heat or electricity. There are several technologies commercially available for converting solar energy into electrical energy. These are broadly classified into two groups: solar photovoltaics (PV) and solar thermal or concentrating solar power (CSP).

In Bangladesh, only solar PV has gained acceptance because of ease of application and affordability. The main limitation of solar PV is that it requires a huge land for useful power generation from ground-mounted solar PV ranging from 3 to 4 acres of land per megawatt depending on solar irradiance and efficiency of the solar PV system. Thus, in a densely populated country like Bangladesh the space for generating utility-scale solar power is very limited because of competing demand of land for agricultural or other uses.

The technological innovation that has minimised the burden of land requirement is Floating Solar PV. The general layout of a floating solar PV system is similar to that of a ground-mounted solar PV system. The only difference is that in floating solar PV system, the PV arrays and often the inverters are mounted on a floating platform. The floating platform is held in place by an anchoring and mooring system (figure 1). The direct current (DC) electricity generated by PV modules is gathered by combiner boxes and converted to alternating current (AC) by inverters. For small-scale floating solar PV plants near the shore, it is possible to place the inverters on land. Otherwise, both central or string inverters on especially designed floats are typically used. The platform, together with its anchoring and mooring system, is an integral part of any floating PV installation.

A floating solar PV system can conveniently be installed on still water bodies such as ponds, lakes, dams and reservoirs. Floating solar PV technology has a number of advantages over land-based equivalent. The foremost benefit is that it takes the advantage of idle water surfaces, and hence there is no direct competition with agriculture or other uses of land. Secondly, floating solar PV panels have higher power generation efficiency compared to the ones installed on land, thanks to the cooling effect of water underneath the panels. The cooler environment also reduces stress on the system, extending the system’s lifespan. Thirdly, floating solar panels can shade the water they float on and reduce evaporation which is crucial for water conservation in dry season. Fourthly, floating solar PV is potentially less prone to shading and typically performs in a low-dust environment. Finally, operation and maintenance costs are also often reduced because the water needed for cleaning is available at source and components are less likely to overheat.

Exploiting its advantages, Japan built the first floating solar PV plant with an installed capacity of 20 kilowatt-peak (kWp) in 2007 in Aichi. Following Japan, many countries including France, Italy, the Republic of Korea, Spain, and the United States tested small-scale floating solar PV systems for research and demonstration purposes. Consequently, the first commercial floating solar PV plant of 175 kWp installed capacity was built in the US state of California in 2008, which was floated atop a water reservoir. Afterwards, medium-to-large floating solar PV plants, larger than 1 MWp, began to emerge in 2013. Recently, plants with capacity of tens and even hundreds of megawatts have been installed in China; more are planned in India and Southeast Asia. China is also credited with the installation of world’s largest floating solar PV plant of 150 MWp capacity on a lake that formed following the collapse of a coal mine in the Anhui province. Floating solar PV plants now exist in nearly every region of the world surpassing total installed capacity 1 gigawatt-peak (GWp) in 2018. The rise of floating solar PV is also opening up opportunities for combining floating solar PV plants with hydropower stations. Establishment of the first-ever hydropower-connected floating solar PV plant with an installed capacity of 220kWp in Portugal is a case in point. Installation of floating solar PV plants in diverse countries at different scales clearly manifests the maturity of the technology to be replicated elsewhere with similar conditions.

Realising the benefits of floating solar PV technology, Mongla Port Municipality, for the first time in Bangladesh, installed a 10kWp floating solar PV system on the water surface of the reservoir of its water treatment plant in 2019 (figure 2). The Successful operation of this 10kWp floating solar system with net-metered connection paved the way for installing many more similar systems and even developing megawatt-scale floating solar PV plants.

Bangladesh, located on the delta of three major rivers, possesses an enormous quantity of water bodies including rivers and streams, lakes and marshes, haors, baors, beels, reservoirs, ponds, and estuarine systems with extensive mangrove swamps. These water bodies dispersed throughout the country offer ample scope for expansion of floating solar PV plants of different capacities, provided the authorities concerned might find them out.

Bangladesh, with high population density and competing uses for available land, simply cannot afford to keep her water bodies underutilised when there exists a potential to use them for solar electricity generation. Following Mongla Port Municipality, unexploited and non-revenue-generating water surfaces may be turned into commercial solar power plants taking advantage of the floating solar PV technology. The authorities in charge of the management of water bodies are required to take initiatives to find out the ones suitable for installation of floating solar PV plants. They may either take steps to set up floating solar PV plants themselves, or let private-sector sponsors set up the same. Wider deployment of floating solar PV plants will contribute to scaling up renewable power generation while ensuring better management of water bodies otherwise left unutilised.

KERC Grants Extension for RPO Compliance By 3 Months

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Karnataka Electricity Regulatory Commission has recently issued an order regarding RPO Compliance for FY20- Regulations.

The commission stated that “ “Keeping in view the prevailing COVID-19 pandemic situation and the consequent lockdown, the Commission hereby extends the time for complying with the RPO for FY20 by three months. Thus, the obligated entities namely, Distribution Licensees, Grid-connected Captive Consumers, and Open Access Consumers may meet their RPO for FY20 by 31.08.2020. Any obligated entity failing to meet the RPO or any part of it(or FY20 within the time specified above, shall purchase RECs to the extent of 110% of quantum of the shortfall in meeting RPO by 30.09.2020, failing which the obligated entity shall be liable for action under Section 142 of the Electricity Act, 2003.”

In exercise of its powers under ‘Clause 12 of KERC (Procurement of Energy from Renewable Sources Regulations,2011, the Commission hereby orders as follows:

This Commission has been monitoring the compliance of Renewable Purchase Obligation (RPO) by obligated entities, in terms of KERC (Procurement of Energy from Renewable Sources Regulations),2011, as amended from time to time.

The relevant provisions on RPO compliance, as per the above Regulations, as

reproduced below:

” A distribution licensee or other consumer specified in clause 3 shall comply with the

renewable purchase obligation for any financial year as specified in these regulations, on or before 31st May of the immediate following financial year.

Provided that any distribution licensee or other consumer specified in clause 3 failing to meet the RPO or any part of it for any financial year shall purchase RECs to the extent of 110% of quantum of the shortfall in meeting RPO, by 30th June of thot immediate following financial year, failing which he shall be liable for action under Section 142 of the Electricity Act, 2008.

Provided further, if a distribution licensee has purchased RECS to meet the RPO specified within the time frame specified above based on provisional data for any year and finalization of accounts if RECs purchased are in excess of the RPO specified. then such excess RECs purchased shall be allowed to be accounted for meeting the RPO of the immediately following year.

Provided also that the quarterly data of the RPO compliance otter validation shall be hosted on the website of the nodal agency”

As per the above provisions, the obligated entities have to comply with the RPO for FY20, by 31st May 2020 without any penalty and by 30.06.2020 with 10% excess REC purchase, failing which the Commission is empowered to initiate action. However, due to the prevailing COVID-19 pandemic situation, the world over there were lockdowns, which has affected the economies of all the countries in the world. Most of the industries in India also in Karnataka were shut down due to lockdown, which has resulted in the loss of revenue to the obligated entities. Keeping in view the above-unprecedented condition, the Commission decides to extend the time or compliance of RPO for FY20 by three months.

NRL conducts first test of solar power satellite hardware in orbit

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U.S. Naval Research Laboratory engineers launched PRAM, the Photovoltaic Radio-frequency Antenna Module, aboard an Air Force X-37B Orbital Test Vehicle on May 17 as part of a comprehensive investigation into prospective terrestrial use of solar energy captured in space.

“To our knowledge, this experiment is the first test in orbit of hardware designed specifically for solar power satellites, which could play a revolutionary role in our energy future,” said Paul Jaffe, PRAM principal investigator.

The 12-inch square tile module will test the ability to harvest power from its solar panel and transform the energy to a radio frequency microwave.

“PRAM converts sunlight for microwave power transmission. We could’ve also converted for optical power transmission,” said Chris Depuma, PRAM program manager. “Converting to optical might make more sense for lunar applications because there’s no atmosphere on the Moon. The disadvantage of optical is you could lose a lot of energy through clouds and atmosphere. “

The use of solar energy to operate satellites began at the start of the space age with another NRL spacecraft: Vanguard I, the first satellite to have solar cells. This current experiment focuses on the energy conversion process and resulting thermal performance. The hardware will provide researchers with temperature data, along with PRAM’s efficiency in energy production. This information will drive the design of future space solar prototypes.

Depending on the results, the team aims ultimately to build a fully-functional system on a dedicated spacecraft to test the transmission of energy back to Earth. The development of a space solar capability could potentially help provide energy to remote installations like forward operating bases and disaster response areas.

This flight experiment enables researchers to test the hardware in actual space conditions. Incoming sunlight travels through the Earth’s atmosphere, both filtering the spectrum and reducing its brightness. A space solar system traveling above the atmosphere would catch more energy from each of the sunlight’s color bands.

“There’s more blue in the spectrum in space, allowing you to add another layer to solar cells to take advantage of that,” Jaffe said. “This is one reason why the power per unit area of a solar panel in space is greater than on the ground.”

The National Security Space Office recommended in a 2007 feasibility study to investigate solar power satellite technology. NRL’s expertise with solar-powered satellites since the late 1950s and long history as a pioneer in space, including in the development of GPS, led researchers to further explore this emergent field.

Contributing and supporting partners for this effort included the Operational Energy Capability Improvement Fund in the Office of the Under Secretary of Defense for Research and Engineering, the U.S. Naval Research Laboratory, the Department of the Air Force Rapid Capabilities Office, the Department of Defense Space Test Program, Boeing, TSC Praxis Operations, Gulfview Research, Odin Engineering, and SpaceQuest.

EBRD invests in wind and solar energy in Poland

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The portfolio includes the construction under the Polish renewable energy auction support scheme (contract for difference) of 93 MW of new capacity – the three wind farms Udanin (50 MW), Parzeczew (9 MW) and Wrzesnia (9 MW) and 25 MW of solar photovoltaic – as well as the operation of wind farms Linowo (58 MW) and Rzepin (48 MW).

The EBRD loans will be provided to five Polish special-purpose vehicles that are ultimately owned by two experienced sponsors – the French renewable energy developer and operator Qair and the French infrastructure fund RGreen Invest.

Harry Boyd-Carpenter, EBRD Director, Head of Energy EMEA, said: “While so many efforts are rightly focused on addressing the Covid-19 crisis, it is also vital to sustain the momentum behind the green transition. Climate change may now feel less immediate, but it is every bit as serious a challenge. By providing long-term finance under the current circumstances, the EBRD is making a significant contribution to Poland’s energy transition and demonstrating its commitments to its partners and strategic goals. We are delighted to engage for the first time with such strong partners as Qair and RGreen Invest in this.”

Jean-Marc Bouchet, Qair founder and Chairman, said: “From its beginning, Qair has been focused on the energy transition by developing, building and operating renewable assets in France, Europe and the rest of the world. These financings from the EBRD and BNP Paribas of operating and new assets in Poland are a clear sign that Qair’s lifelong commitment to promoting green electricity is more relevant than ever and that the strategy that Qair has been pursuing in Poland for over five years is coming to fruition.”

Poland still generates 80 per cent of its energy from coal, with harmful effects on the environment and human health. The country has committed itself to the EU climate and energy targets for 2030, which include a reduction of at least 40 per cent in greenhouse gas emissions. Renewable energy has a key role to play in meeting that goal.

The EBRD started investing in Poland in 1991 and to date has provided €10.3 billion through 434 projects to all sectors of the economy. Supporting the country’s green transition with investments in renewable energy and energy efficiency remains one of the Bank’s priorities in Poland.

38% drop in Solar Jobs, analyses SEIA

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New analysis shows that the U.S. solar industry will employ 114,000 fewer workers by June 2020, compared to previous forecasts that projected the industry would employ 302,000 Americans over the same time period. With an expected workforce of 188,000 people, this job loss will take the industry back to 2014 levels as a result of the COVID-19 crisis.

Last week the U.S. government reported another 3 million unemployment claims. The solar industry is now losing jobs at a faster rate than the U.S. economy. The analysis from the Solar Energy Industries Association (SEIA) represents a 38% drop in solar jobs compared to previous estimates for June. The drop coincides with a 37% decrease in expected Q2 solar installations from pre-COVID forecasts, as the United States is only on track to install 3 gigawatts (GW) of new capacity in Q2 2020.

“Thousands of solar workers are being laid off each week, but with swift action from Congress, we know that solar can be a crucial part of our economic recovery,” said Abigail Ross Hopper, president and CEO of SEIA. “With a few simple changes, Congress has an opportunity to save solar jobs, rebuild our economy and advance clean energy even as policy makers address this very real public health crisis.”

All 50 states show solar jobs losses, with 36 states suffering job losses above 30%. Seven states and Washington, DC— including large solar states like New York and New Jersey— have seen solar job losses exceed 60%.

A BW Research Partnership report based on Bureau of Labor Statistics data showed 95,600 renewable energy jobs and a total of 594,300 clean energy jobs had already been lost in March and April. SEIA’s analysis shows that vast majority of renewable energy job losses come from the solar energy industry.

The 37% decrease in new installed solar capacity is equivalent to the electricity needed to power 288,000 homes and $3.2 billion in economic investment.

Strategic government action can prevent further solar job losses, revive many of the already lost jobs, and help reinfuse billions of dollars into the U.S. economy.

First Indian Floating Solar + Storage Project Bids Extended Again, 7th Extension

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The Solar Energy Corporation of India (SECI) has issued a notification, extending the bid submission deadline of its 4MW Floating Solar With 2MW of BESS Tender. The last date of bid submission is extended till 15.06.2020 (18:00 HRS). The techno-commercial bid opening shall be carried out w.e.f. 11:00 HRS on 18.06.2020.

In January, the Solar Energy Corporation of India Limited (SECI) issued a Request for Selection (RfS) to initiate 4 MW of grid-connected floating solar projects. The project consists of 2 MW of battery energy storage system (BESS). The projects will be established at Kalpong Dam in Diglipur which is located in northern Andaman and it will evolve on a build-own-operate (BOO) basis.

Recently, The Solar Energy Corporation of India (SECI) issued a notification, extending the bid submission deadline of its 4MW Floating Solar With 2MW of BESS Tender. The last date of bid submission was extended till 18.05.2020 (18:00 HRS). The techno-commercial bid opening was extended till 21.05.2020 (11:00 HRS).

On 25th March, SECI issued its fourth extension notice from 25.03.2020 to 13.04.2020 (18:00 HRS) and the techno-commercial bid was extended till 16.04.2020. Previously on 12th March, SECI has extended its deadline for the third time. It had extended the bid submission deadline from 13.03.2020 to 20.03.2020 and the techno-commercial bid was extended to 25.03.2020. On 28th February SECI extended the date of this tender from February 28, 2020, to 13.03.2020, and on 18th February SECI extended the bid submission deadline from 13-03- 2020 to 28-02-2020.

As the Earnest Money Deposit (EMD) interested bidders must remunerate ₹5.4 million. The highest tariff payable to the developer is ₹8 /kWh for 25 years which includes all statutory taxes, levies, duties, and cess. To participate in this tender the minimum annual turnover of the bidder should be ₹48 million while net worth should be minimum ₹54 million.

The timeline for the project is 18 months and the total performance bank guarantee will be encashed by the agency in case of delay beyond 24 months.

The notice also states that “Prospective bidders are requested to remain updated for any notices/ amendments/ clarifications etc. to the NIT documents through the websites”.

JinkoSolar Launches 2020 Flagship Tiger Pro Series with Module Output of Up to 580W

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JinkoSolar Holding Co., Ltd., one of the largest and most innovative Solar Module Manufacturers in the World, announced the official launch of its 2020 flagship Tiger Pro module series, on 15th May 2020. 

The Tiger Pro module series was unveiled through a virtual product launch that was a live broadcast around the world. The Tiger Pro module series showcases multiple solar power efficiency innovations across three flagship model. The module series can generate maximum power output of up to 580 Wp, which are 40% higher than current mainstream products installed in utility projects. All these high energy density modules use innovative multi-wire 9BB and TR tiling ribbon technology to reach significantly improved performance with conversion efficiency up to 21.6%. In addition to their unparalleled power generation performance and outstanding output temperature coefficient, other advantages of the Tiger Pro module series include lower power attenuation rate (at 2% for the first year) and better open- circuit voltage. By significantly reducing LCOE compared to traditional modules, the high- efficiency Tiger Pro module series paves the way for investors to generate higher power output. Slated to commence mass production in the third quarter of 2020, the series is expected to lead the development trend of the industry and become a mainstream choice for utility scale projects. 

Mr. Kangping Chen, JinkoSolar’s Chief Executive Officer, commented, “We’ve made an enormous leap into the high efficiency era by introducing industry-leading and more competitive products. The global PV market is rapidly moving towards high-performance modules to reduce system costs and initial upfront capital investment. So, it was time to consolidate our competitiveness by leveraging our ability to rapidly begin mass producing cutting-edge technology products. We always modify our designs based on customer feedback and market response because designing high-efficiency products in the lab is one thing but ramping up to mass production drives the entire industry forward together towards grid parity. With various types of modules, Tiger Pro series enables the construction of more powerful and efficient solar power farms that will bring higher return on investment for projects with larger technical and efficiency requirements. It is expected to lead the next generation of industry standards and drive the PV industry developing into a new chapter.” 

Sunport Power Releases New High Efficiency MWT PV Modules

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Representational image. Credit: Canva

The second-generation C6-II and D6-II solar panels feature multiple upgrades alongside an increased power output up to 375W. The MWT technology abandons traditional solder ribbon design and creates conductive back-sheet interconnection structure, which can avoid soldering stress and micro-cracks of cells to boost long-term reliability. The back-contact design ensures a stable connection of cells regardless of distance and placement. Benefiting from further optimized module layout design and half-cut cells, 40W extra power output has been added to the second-generation products.

“With our goals for the sustainable development, Sunport Power has been pioneering the development of our MWT-based modules, which offer a significant advantage over standard photovoltaic module designs in terms of both performance and durability. Our company will continue to focus on product R&D based on this world-leading technology, creating new and innovative solar solutions for the global market,” said Martin Green, Chief Scientist of Sunport Power.

Excellent Performance and Market Prospect

Sunport Power’s breakthrough in the back-contact PV modules drives forward the photovoltaic industry from the level of conventional technology to the field of high-efficiency solar panels with an affordable approach. In becoming the only GW-scale MWT cell & module manufacturer in the world, Sunport’s first-generation C6 and D6 modules hold the dominant position in the target market across several countries including Italy, Spain, Australia and Poland.

“We are glad that our products have gained recognition in global markets. To date, our full-black rooftop solar modules from D6-series account for more than 50 % of shipment volume in Europe,” said Dr. Fengming Zhang, CEO of Sunport Power, “We have also signed an agreement with the biggest PV distributor in Poland, with the plan to provide rooftop solar modules for more than 40,000 local households in the next two years.”

Further Development

Given the tremendous success of the first generation of D-Series modules, Sunport is anticipating considerable interest for its new generation products in Europe, Japan and Australia. Through an increasing focus on MWT technology, Sunport is positioning to become a leading solar panel manufacturer in advanced solar technology and make a meaningful impact in the switch to efficient green energy.

MASE signs operations and maintenance contract for Shamsuna 10 MW Solar PV Plant

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Located in Aqaba, the Plant is part of Jordan’s Round I Renewable Energy Program and a member of IFC’s Seven Sisters. MASE, the leading regional solar operations and maintenance firm, signed a turn-key contract with Catalyst Investment Management (CIM) to operate and maintain the Shamsuna 10 MW Solar PV Plant located within Solar Park I of the Ma’an Development Area in Ma’an, Jordan. The Plant, owned by CIM, is part of Jordan’s Round I Renewable Energy IPP Program. It is financed by the World Bank’s International Finance Corporation (IFC), acting as mandate lender for the Seven Sisters Program, together with the Entrepreneurial Development Bank (FMO).

Under the contract, MASE will carry out turn-key operations, maintenance and management services comprising preventative, predictive and corrective maintenance to ensure the plant’s long-term performance and optimal availability. MASE was selected by CIM as part of a competitive request for proposal process, which involved technical and commercial due diligence carried out by the project lenders and their technical advisers. The process and subsequent award further cements the bankability of MASE’s solar O&M value proposition and adds upon its rapidly growing operational track record in Jordan.

A case for operating brownfield PV plants in Jordan

The Shamsuna Solar PV Plant was commissioned in February 2016 and operates under a 20-year PPA with the National Electric Power Company (NEPCO). The Plant was constructed by Enerray as EPC Contractor, also acting as O&M up until the handover to MASE, as second-term O&M service provider. The O&M contract with MASE will be one of the first major involvement of a specialized O&M firm in a brownfield utility-scale solar PV plant in Jordan and is expected to set a local contractual and operational precedent for other solar assets opting to decommission the involvement of the EPC Contractor in the longer-term operations and maintenance.

SECI Extends Bid Deadline For 14 MW Solar + BESS At Leh and Kargil

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The Solar Energy Corporation of India (SECI) has issued a notice which states that the bid submission deadline of 14 MW solar power plants with 42 MWH BESS at Leh and Kargil under Prime Minister Development Package (PMDP) has been extended.

Existing last date of bid submission and bid opening was 01.06.2020 till 1400 HRS and 01.06.2020 at 1600 HRS respectively which has been extended to 01.06.2020 till 30.06.2020 till 1400 HRS and 30.06.2020 at 1600 HRS.

In January SECI issued an RfS for setting up 14 MW solar power plants with 42 MWh Battery Energy Storage Systems in Leh and Kargil. The maximum Levelized tariff payable to the Project Developer is fixed at INR 2/ kWh for 25 years. The project will consist of two 7 MW / 21 MWh each at Leh and Kargil.

The proposals have been invited for setting up the solar projects on a “Build Own Operate” basis. The SPD shall be given a Viability Gap Funding (VGF) by SECI. The upper limit for VGF to be quoted by a bidder is kept at INR 13 Crore for 1 MW Solar PV Power Project with Battery Storage of 3 MWh.

The buying entity of the power is Power Development Department Ladakh (PDD Ladakh). PDD will sign a Power Purchase Agreement (PPA) with the selected bidder for the purchase of solar power for a period of 25 years as per the terms, conditions, and provisions of the RFS. The maximum levelized tariff payable to the Project Developer is fixed at INR 2/ kWh for 25 years. This shall be inclusive of all statutory taxes, duties, levies, cess applicable as on the last date of bid submission.

SECI has postponed site visits for this tender stating that It’s evident that the global outbreak of Pandemic Novel Coronavirus, COVID 19 has significantly hampered the functioning of all sectors including institutions, commercial establishments, offices & various manufacturing units are also at standstill. In such a situation, the site visit for the subject RfS has already been postponed until the indefinite period.

In April, The Solar Energy Corporation of India (SECI) has issued a notice which states that the bid submission deadline of 14 MW solar power plants with 42 MWH BESS at Leh and Kargil under Prime Minister Development Package (PMDP) has been extended. Existing last date of bid submission and bid opening was 16.04.2020 till 1400 HRS and 1600 HRS respectively which has been extended to 01.06.2020 till 1400 HRS AND 1600 HRS.

NTPC Tenders For Solar Modules Package Worth 33.6 MWp At Solapur

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The National Thermal Power Corporation Limited (NTPC) has recently issued a tender inviting bid from eligible bidders on Single Stage Two Envelopes (i.e. Envelope-I: Technical Bid and Envelope-II: Financial Bid) with Reverse Auction for the supply and installation of solar PV modules worth 33.6 MWp at the Solapur PV Project in Maharashtra.

The scope of work for the selected bidders will include Manufacturing, Supply, Packing, and Forwarding, Transportation Supervision of Installation, and Supervision of Commissioning of Solar PV Modules (Crystalline {Minimum 330 Wp Nominal rating}) of Nominal DC capacity of 33.6 MWp.NTPC intends to finance the subject package through its resources.

The last date for bid submission is 24-June-2020 and the techno-commercial bids will be opened on 25-June-2020. The date and time of opening of the reverse auction will be intimated to all bidders separately. A pre-bid meeting has been scheduled for 8-June- 2020.

Along with the bids, the bidders must submit Bid Security for an amount Rs. 1,00,00,000/-.as well as Document fee of Rs. 22,500/-.

Qualifying Requirements for Bidders for this bid is the bidder should have manufactured and supplied Solar Photo Voltaic (SPV) Modules of cumulative capacity of 26 MWp or above, out of which at least one such supply order should be for 6 MWp or above capacity. The reference plant of 6 MWp or above capacity must have been in successful operation for at least six months before the date of the techno-commercial bid opening. OR the bidder should be Group Company/Holding Company or Subsidiary company of the module manufacturer. Bidder shall furnish a letter of Undertaking jointly executed by the module manufacturer and the bidder at the time of submission of the techno-commercial bid as per format enclosed in the bidding document.

The average annual turnover of the Bidder, should not be less than INR 55 Crores (Indian Rupees fifty-five Crores only) during the preceding three (3) completed financial years as on date of techno-commercial bid opening. Net Worth of the Bidder as on the last day of the preceding financial year should not be less than 100% (hundred percent) of bidder’s paid-up share capital. In case the Bidder does not satisfy the Net Worth criteria on its own, it can meet the requirement of Net worth based on the strength of its Subsidiary(ies) and/or Holding Company and/or Subsidiaries of its Holding companies wherever applicable. 

n case the Bidder is not able to furnish its audited financial statements on a standalone entity basis, the unaudited unconsolidated financial statements of the Bidder can be considered acceptable.

It has been highlighted that “Issuance of Bid Documents to any Bidder shall not construe that such Bidder is considered to be qualified. Bids shall be submitted online. Bidder shall furnish Bid Security, Integrity Pact, Pass Phrase, and Power of Attorney separately offline as detailed in Bidding Documents before the stipulated bid submission closing date and time. Transfer of Bidding Documents purchased by one intending Bidder to another is not permissible”

Recently, NTPC The National Thermal Power Corporation Limited (NTPC) has issued NIT for Centralised monitoring analytical tool for 250 MW Mandsaur solar PV plant for a period of 06 months. The Last Date for Bid submission is 18.05.2020 at 3:00 PM. The Bid Opening Date is 20.05.2020 at 3:00 PM. Domestic Competitive Bidding will be followed for this tender. The last date to Clarify anything regarding this bid is 12-May-2020 at 03:00 PM. The bid will be valid for 180 days and the successful bidder will have to complete the project in 180 Days.

National Thermal Power Corporation Limited (NTPC) has recently floated a tender for Electrical Maintenance of Vindhyachal Super Thermal Power Station(VSTPS), Stage-V (1X500MW), FGD, Stage-5 Rooftop solar, 2X4 MW small hydro, and AWRS stage-4 amp 5. The location for this project is in Vindhyanagar, Madhya Pradesh. The bid opening date is 15-May-2020 at 11:00 AM and the last date of bid submission is 13-May-2020 at 11:00 AM. The last date to Clarify anything regarding this bid is 08-May-2020. Along with the bid, the bidders have to submit an earnest money deposit (EMD) of Rs. 5,00,000.There will be no pre-bid meeting for this tender. The Bid will be Valid for 180 days and the period of completion of work is 730 days.

Middle East and South America are the current hotspot regions for investment in low-carbon energy transition

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A new research report by international law firm Ashurst found that 88% of senior business leaders from across the G20 have changed their organisations’ investment strategies over the past 12 months to align more closely with the low-carbon energy transition. The report, Powering Change: Energy in Transition, compiles the views of more than 2,000 senior business leaders from across G20 countries on the changing global energy market as organisations seek to meet rising energy demand and a drive towards decarbonisation.

The research explored attitudes towards and investment behaviours in renewable power generation and decarbonisation technologies in both the regions and countries in which the respondents are based, and in other jurisdictions in which they invest or plan to do so in the future.

It showed that North America, the Middle East, and South America are the current hotspot regions for investment in the energy transition. When adding current plus new investment plans over the next five years, these three hotspot regions are joined by North Africa and South East Asia.

According to Ashurst’s research, the vast majority of respondents (87%) cited either significant or extreme pressure from government to act on climate change.

Paradoxically, around one third (31%) of respondents cited a lack of government support as one of the most significant barriers to low-carbon investment. Respondents from China and India indicated political support as a driving factor more so than any other countries across the G20 – 46% and 43% of respondents respectively. By contrast, only 19% of respondents from Indonesia and 18% of respondents from Turkey highlighted political support as a driving factor– lower than any others across the G20.

The research also identified the technologies with the highest present and future investment levels among the companies surveyed, as reflected by current and committed or anticipated future spend. Solar was identified as the renewable power generation technology with the highest levels of current and committed investment, followed by hydro and onshore wind. Conversely, the technologies with lower levels of current investment but high levels of potential include biomass and offshore wind. In terms of non-power generation technologies, battery storage and electric vehicles receive the highest current and committed investment, but energy trading, carbon capture, utilisation and storage (CCUS), hydrogen and smart meters are seen as the areas with the highest potential in the next five years.

Antony Skinner, Ashurst’s head of power & utilities for EMEA/US, said “The effects of climate change can no longer be ignored. Addressing its impacts has become a priority for businesses, governments and individuals alike. As the energy transition takes place, with increasing emphasis on cleaner and renewable technology, energy supply is under more scrutiny than ever before.

“Some parties have a first-mover advantage while others are taking their first, tentative steps in their contribution to a carbon neutral economy. With the onset of COVID-19 and the sharp reduction in oil prices, this is clearly a volatile and uncertain period for all markets, especially energy. However the fundamentals of the market and prospects for the clean energy transition will likely remain largely unchanged in the longer term.

“This report highlights the global opportunities as the transition accelerates, and investors and society place growing pressure on corporates and governments to take more assertive action.”

David Wadham, Ashurst’s head of power & utilities for APAC, added “Governments and businesses are significantly increasing the attention they pay to the low-carbon transition – the global growth in renewable energy investment is testament to this. Our research shows that energy producers and users worldwide are feeling Government and societal pressure to decarbonise and, as a result, over the past 12 months the vast majority have begun to adapt their investment plans accordingly.

“This data challenges any notion that the larger developing economies are only interested in fossil-fuel based energy production: there is real interest in low-carbon investments across the board.”

Sterling and Wilson Solar Limited signs its largest order in Australia with a value of ~ AUD 525 million

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Sterling and Wilson Solar Limited (SWSL) (BSE Scrip Code: 542760; NSE Symbol: SWSOLAR), today announced that it has signed (along with its branch and Australian subsidiary) an EPC contract of approx. AUD 525 million (~ INR 2,600 crore) as well as the Operation and Maintenance (O&M) contract of approx. AUD 85 million (~ INR 415 crore), which is its largest order in Australia. The duration of the O&M contract is for a maximum period of 20 years.

With this award, SWSL has clearly established its presence in Australia, within a short period of 15 Months of setting up the operations. With this order, the Company’s cumulative order book in Australia adds up to approx. AUD 1 billion (~ INR 4,900 crore), making it amongst the largest Solar EPCs in this very promising market.

In spite of the ongoing pandemic, SWSL has also signed two projects in India with leading global IPPs adding up to a value of INR 620 crores.

A substantial portion of the Company’s international revenues for the current financial year will come from Australia, South America and the USA where the construction of solar projects has now commenced to full capacity. Renewable projects in India, which also add up considerably to the Company’s revenues, have been allowed to restart now. SWSL is in the process of handing over projects which are being completed post lockdown and starting other projects. The worst impact of COVID-19 seems to have passed and the Company is looking forward to increased activity in order booking and revenues. 

Mr. Bikesh Ogra – Director and Global CEO, Sterling and Wilson Solar Limited said, “This is our largest order in Australia and is a culmination of efforts to break new ground in countries like Australia, the United States and South America, where SWSL has invested in a strong team that is completely aligned with the local requirements. Renewable sector plays a vital role in the world’s journey towards clean energy and as a home-grown company we are continuously working together with several stakeholders in supporting this vision. India continues to be a steady and focused market for SWSL. Along with our exponential growth in the international market over the past decade, we continue to remain a dominant player in the domestic market as well.”

About Sterling and Wilson Solar Limited

Sterling and Wilson Solar Limited, a Shapoorji Pallonji group company, is a global pure-play, end-to-end solar engineering, procurement and construction (EPC) solutions provider. The company provides EPC services primarily for utility scale solar power projects with a focus on project design and engineering and manage all aspects of project execution from conceptualizing to commissioning. Sterling and Wilson Solar Limited also provides operations and maintenance (O&M) services, including for projects constructed by third parties. Present in 25 countries today, Sterling and Wilson Solar has operations in Asia, the Middle East, Africa, Europe, the Americas and Australia.

Visit us – www.sterlingandwilsonsolar.com

Sungrow to Supply 1500V SG250HX Inverter Solutions to 500 MWac PV Plant in Oman

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Sungrow, the global leading inverter solution supplier for renewables, announced it will supply 1500V SG250HX inverter solutions to the 500 MWac IBRI II project in Oman, which is the largest utility-scale PV plant in the Sultanate to date, demonstrating the Company’s robust efforts in supporting Oman’s ambition of lifting the renewable energy mix by 10%. The delivery of inverter solutions will commence in Q2 this year.

A Landmark Independent Power Plant

The IBRI II PV project is an Independent Power Project (IPP) to be developed on a BOO (build, own, operate) basis. The $400 million project was funded on a debt to equity ratio of 70:30 and a consortium consisting of ACWA Power, Gulf Investment Corporation (GIC) and the Alternative Energy Projects Company (AEPC) has achieved the financial closure of it recently.

The project is expected to come online in the summer of 2021, barring aside any potential COVID-19 related considerations. It will supply clean power to state-owned utility Oman Power and Water Procurement Company (OPWP) under a 15-year contract. The plant can generate roughly 1,300 GWh annually, which is enough to power an estimated 33,000 homes and offset 340,000 tonnes of carbon dioxide emissions per year.

SG250HX Paves the Way to Lower LCOE

The project is located in a desert around 300 km west of Muscat with ample sunshine and abundant flat land. The system poses strict requirements on a minimized LCOE with cutting-edge PV technologies and the resilience to harsh conditions like high temperature and sand corrosion.

Sungrow’s SG250HX, the world’s most powerful 1500V string inverter, to be installed onsite is an ideal match to the project. The solution features 12 MPPTs with maximum efficiency of 99% and enables flexible block design allowing for up to 6.75 MW blocks. Compatible with bi-facial modules and tracking systems, the solution can significantly maximize ROI for a PV project.

The improved Power Line Communication (PLC) will decrease installation cost without excessive communication wiring. Equipped with 24-hour Static Var Generator (SVG) function, the solution can provide an instantaneous and effective response to power quality problems, enabling improved power system stability, reduced energy losses and complying with most demanding local power quality standards and grid codes, saving approximately $1,143,000.

Particularly with IP66 and C5 protection together with the smart forced air-cooling technology, the 250 kW inverter can operate without derating even the ambient temperature is up to 50 degree Celsius, strongly resilient to scorching deserts of Oman.

Tap More Potential in MENA

“As a leading developer, owner, and operator of power generation and water desalination plants, ACWA Power has considerable experience in deploying PV Independent Power Plants worldwide. The Oman IBRI II Solar PV is expected to play a strategic role in building Oman’s renewable production capacity. We are delighted to partner with best-in-class entities such as Sungrow, that will support us in delivering long-term sustainable benefits for all our stakeholders through providing advanced, tailor-made solutions such as the SG250HX to our customers,” commented Rajit Nanda, Chief Investment Officer from ACWA Power.

“Sungrow and the SG250HX complement our ongoing mandate to provide low-cost power to communities through utilizing the latest, most cost-efficient technologies and we look forward to working on this venture with them,” he added.

“The 1500V 250 kW string inverter has been attracting around 3 GW orders since it was first rolled out in Intersolar Europe 2019. We’re glad to decarbonize the local economy by bringing in more flagship products,” said James Wu, Vice President of Sungrow.

“It’s another fabulous milestone we did in Oman, even in Gulf Cooperation Council. It once again demonstrates that growing number of customers are impressed by Sungrow competitive products and services,” he added. Wu also mentioned, Sungrow supplied a 105 MW project in Oman which will be put into commercial operation soon. As one of the most energetic PV and BESS players in the Middle East and North Africa (MENA), Sungrow has the regional hub established in Dubai. In addition to remaining a remarkable market share in Omani PV market, Sungrow expands its footprints in other key markets in MENA as well. With the 500 MWac project added to its portfolio, the Company is expected to hit 1 GW in this region.

Major financial implications in Bangladesh’s power system due to overcapacity in coal, LNG power, says IEEFA

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Bangladesh’s plan for significant coal- and LNG-fired power plant additions will lock the nation into substantial overcapacity, with major financial implications, according to a new study released today by the Institute for Energy Economics and Financial Analysis (IEEFA).

The coronavirus pandemic is currently lowering power demand significantly in Bangladesh, and in markets globally. This is increasing financial stress on Bangladesh’s Power Development Board by reducing revenue whilst capacity payments to idle plants have to be maintained. The pandemic is also delaying China-backed Belt and Road coal power projects in Bangladesh.

Author of the study Simon Nicholas, energy finance analyst with IEEFA, says COVID-19’s impact will mean long-term power demand will also be lower than forecast.

“Based on current plans for coal- and LNG-fired power additions, we calculate that Bangladesh will have the capacity to generate 58% more power than the nation needs by 2030, based on our forecasts of power demand growth and taking into account the economic impact of COVID-19,” says Nicholas.

Bangladesh already has major power plant overcapacity with only 43% capacity utilization of existing power plants in fiscal year 2018-19.

Significant capacity payments to idle power plants are helping drive the need for increasing government subsidies to the Power Development Board to cover its financial losses. In fiscal year 2018-19, the government subsidy to the Board rose again to reach Tk80bn (US$936m). It was Tk45bn (US$530m) in the previous financial year.

“A long-term switch from cheap domestic gas towards more expensive imported coal and liquefied natural gas (LNG), combined with the severe, long-term power overcapacity Bangladesh is on course for, is likely to see government subsidies continue to rise,” says Nicholas.

Power tariffs for consumers can also be expected to increase, according to the report.

The economic impact of COVID-19 means such huge subsidies are going to be harder to maintain as the government bails out flailing industries.

Nicholas suggests large fleets of big coal and LNG plants are increasingly less appropriate to meet lower-than-expected demand growth in developing nations. Egypt recently shelved a China-backed 6.6GW coal plant proposal due to concerns about overcapacity and a preference for renewable energy.

Report co-author Sara Jane Ahmed highlights that Indonesia provides important lessons for Bangladesh, as it is already suffering from the financial impacts of an overreliance on coal power.

“Indonesia’s PLN – the state-owned power utility – has seen its over-commitment to coal power lead to a rapid escalation in government subsidies which reached an enormous US$5bn in 2018,” says Ahmed.

Ahmed says Indonesia’s power development plan includes an overestimated power demand growth forecast for 2019-2028.

“Such mis-forecasts compound over time and are the basis for planning too much power capacity development, resulting in overcapacity, higher capacity payments, larger subsidies, and increases in tariffs,” says Ahmed.

“Bangladesh needs to change direction or head down the same road as Indonesia towards a financial crisis within its power system.”

The report authors suggest Bangladesh needs to consider regaining control of its power sector by renegotiating coal and LNG plants to more appropriate, modular renewable energy – without capacity payments – and grid investments to meet lower demand growth. This would reduce the overall system cost while improving domestic energy security and resilience.

More recently, the Government of Bangladesh is looking to renegotiate with project proponents to replace a 350MW coal plant with grid upgrades to reduce losses in the rural electricity system.

“The amount of land suitable for renewables in Bangladesh is likely to be more than previously assumed,” says Nicholas.

However, some tough choices over land use may have to made if Bangladesh is to avoid entrenching a power system dominated by expensive, imported coal and LNG with higher power tariffs and government subsidies.

“The COVID-19 induced delay to coal power projects gives Bangladesh an opportunity to reset energy development policy and redirect resources to support economic fundamentals and energy price stability to enable the realization of Vision 2041,” said Nicholas.

DISCOMs To Be Privatized In Union Territories : Ministry

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Finance Minister Nirmala Sitharaman recently announced Rs 90,000 crore Liquidity Injection for DISCOMs and Union Ministry of Power writing to all States/UTs extending Rs 90,000 crore financial package now the ministry has also added some of the important schemes for the same.

During her press conference, Smt. Sitharaman outlined the need for Policy reforms to fast track investments and the steps taken by the Government in this regard. She stated that fast track clearance is being done through the Empowered Group of Secretaries, a Project Development Cell would be set up in each Ministry to prepare investable projects and coordinate with investors and Central and State governments.  

The Finance Minister announced following policy reforms to fast track investment in an effort towards Aatma Nirbhar Bharat:

  • There will be fast tracking of investment clearance through the Empowered Group of Secretaries.
  • Project Development Cell will be constituted in each Ministry to prepare investable projects, coordinate with investors and Central/State Governments.
  • There will be a ranking of States on investment attractiveness to compete for new investment.
  • Incentive schemes for promotion of new champion sectors will be launched in sectors such as solar PV manufacturing; advanced cell battery storage etc.

Sitharaman also announced that a scheme will be implemented in States through challenge mode for Industrial Cluster Upgradation of common infrastructure facilities and connectivity. There will be availability of industrial land/land banks for promoting new investments and making information available on the Industrial Information System (IIS) with GIS mapping. 3376 Industrial Parks/ Estates/SEZs in five lakh hectares are mapped on IIS. All Industrial Parks will be ranked during 2020-21.

The Finance Minister today announced the following structural reforms in the the details are as follows:

Policy Reforms to fast-track Investment which includes Effort towards AtmanirbharBharat • Fast track Investment Clearance through Empowered Group of Secretaries (EGoS), Project Development Cell in each Ministry to prepare investable projects, coordinate with investors and Central/ State Governments, Ranking of States on Investment Attractiveness to compete for new investments, Incentive schemes for Promotion of New Champion Sectors will be launched in sectors such as Solar PV manufacturing; Advanced cell battery storage; etc.

Upgradation of Industrial Infrastructure under which scheme that will be implemented in States through Challenge mode for Industrial Cluster Upgradation of common infrastructure facilities and connectivity, Availability of Industrial Land/ Land Bank for promoting new investments and making information available on Industrial Information System (IIS) with GIS mapping,3376 industrial parks/estates/SEZs in 5 lakh hectares mapped on Industrial Information System (IIS) and All industrial parks will be ranked in 2020-21.

A Tariff Policy laying out the following reforms will be also released which will consist of 

A. Consumer Rights- DISCOM inefficiencies not to burden consumers • Standards of Service and associated penalties for DISCOMs, DISCOMs to ensure adequate power; load-shedding to be penalized

B. Promote Industry- Progressive reduction in cross-subsidies, Time-bound grant of open access and Generation and transmission project developers to be selected competitively 

C. Sustainability of Sector- No Regulatory Assets, Timely payment of Gencos, and DBT for subsidy; Smart prepaid meters.

Ministry has also decided to Privatize of Distribution in UTs which includes Sub-optimal performance of power distribution & supply, Power Departments / Utilities in Union Territories will be privatized,It Will lead to better service to consumers and improvement in operational and financial efficiency in Distribution and Provide a model for emulation by other Utilities across the country.

Sambitosh Mohapatra, Leader – Power and Utilities, PwC India said “Power distribution in UTs to be privatized is an exciting step ahead. These are smaller and manageable entities. It will assist in generating private sector appetite amongst Indian and international investors; various PPP models will be tested; and a quick demonstration of possible efficiency improvement and customer engagement models. It will provide confidence to larger states and utilities to undertake privatization based on improvements achieved here.”

Sumant Sinha, CMD, ReNew Power in regards to that said “The union government’s announcements on policy reforms in critical sectors like Mining, Aviation, Defence production, and Space has opened up the gates for increased participation of Indian companies in these sectors. These measures will not only go a long way in making India- Atmanirbhar but also create a more transparent policy framework for private sector participation. It is now up to the Indian Corporates to live up to the promise and make the best out of this opportunity. What is also heartening is that the government has taken another step on the path of distribution reforms by indicating early implementation of the National Tariff Policy and starting the privatization process for discoms. Coming, just days after the announcement of the ₹ 90,000 Cr fund infusion into discoms, the sector is witnessing some of the most far-reaching reforms seen in a long time”.

Dan Dorner, new Head of Secretariat for the Clean Energy Ministerial (CEM)

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Dan Dorner has taken up his position as new Head of Secretariat for the Clean Energy Ministerial (CEM), a global forum tasked with accelerating clean energy transitions and took up his position last week.

The Clean Energy Ministerial brings countries, companies, and international experts together to shape and accelerate the deployment of clean energy worldwide. Its country membership spans every continent and collectively accounts for approximately 90% of global clean energy investments. Its work programme covers all sectors and clean energy technologies – from renewables, smart grids and power systems, hydrogen, and carbon capture and storage, to electric vehicles, super-efficient appliances, gender equality and more.

“We need the Clean Energy Ministerial now more than ever,” said Dr Fatih Birol, the IEA’s Executive Director said. “CEM can boost the pace of clean energy transitions, both as countries seek to ensure a sustainable recovery from Covid-19 and as they seek to achieve their long-term clean energy goals. The IEA is proud to provide a home to the CEM Secretariat, as well as being a key partner in delivering its important work. I am delighted to welcome Dan back to the IEA in his new role.”

Taking up his appointment, Dan Dorner said: “If the world is to achieve its clean energy goals, the 2020s must be the decade of deployment. The Clean Energy Ministerial exists to raise ambition and accelerate action. It’s at its best when it incites passion, excitement, and inspiration in a global community committed to achieving their clean energy goals.”

Mr Dorner previously served as the Head of International Energy for the United Kingdom, advising the government across a wide spectrum of bilateral and multilateral energy policy issues, as well as representing the UK in fora such as the G7, G20, the IEA and IRENA.

Before that, Mr Dorner worked at the IEA as a lead author for the Agency’s flagship World Energy Outlook report, its lead on energy access issues, and the Executive Director’s Sherpa to the United Nations. He has also held several positions in the UK Treasury Department. Mr Dorner holds a Master’s Degree in International Management and a Bachelor’s Degree in Business Management.

Hosted at the IEA in Paris, the Clean Energy Ministerial is a high-level platform for actors from around the world to take action to accelerate clean energy transitions. Its community works together through a flexible programme of initiatives and campaigns toward a common purpose of seeing the faster adoption of clean energy technologies. For more information, go towww.cleanenergyministerial.org, follow the CEM Secretariat on Twitter (@CEMSecretariat) or sign-up to its quarterly newsletter (here).

CEM members include: Australia, Brazil, Canada, Chile, China, Denmark, European Commission, Finland, France, Germany, India, Indonesia, Italy, Japan, Korea, Mexico, Netherlands, New Zealand (observer), Norway, Russia, Saudi Arabia, South Africa, Spain, Sweden, United Arab Emirates, United Kingdom and the United States.

Mr Dorner took up his position as Head of the CEM Secretariat on 11 May 2020. He replaces Christian Zinglersen, who held the position from 2017, and is now the Director for the European Union’s Agency for the Cooperation of Energy Regulators (ACER).

Union Power Ministry Writes To States/UTs Extending Rs 90,000 Crore Package Under Atmanirbhar Bharat Abhiyan

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Finance Minister Nirmala Sitharaman recently announced Rs 90,000 crore Liquidity Injection for DISCOMs and in regards to that Union Ministry of Power has written to all States/UTs extending Rs 90,000 crore financial package to assist the stressed DISCOMs. Communication in this regard has been sent on 14.05.2020.

“The package for the power sector will significantly reduce the burden of Discoms for maintaining the distribution of electricity as supplied by gencos/transcos during these difficult times,” said Shri RK Singh, Minister of State (Independent Charge) for Power and New and Renewable Energy. The Government of India had on 13.5.2020 decided to make an infusion of liquidity of Rs 90,000 cr through Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) as a part of the Atmanirbhar Bharat Abhiyan.

Under this intervention, REC and PFC would extend special long term transition loans up to 10 years to DISCOMs.

The letter sent to States/UTs mentions that REC and PFC shall immediately extend loans to DISCOMs which have headroom for further borrowing within the working capital limits prescribed under UDAY. Further, the DISCOMs that do not have headroom under UDAY working capital limits but have receivables from the State Government in the form of electricity dues and subsidy not disbursed will also be eligible for these loans to the extent of receivables from the State Government. Since these loans are long term and are not against the working capital requirement of the DISCOMs, with repayment security from the State Government, UDAY Working capital limits will not be applicable.

Besides, the respective States may request for relaxation of the limit to the Government of India for the DISCOMs that do not have receivables from States or headroom available under the working capital limits imposed under UDAY.

The letter says the COVID-19 pandemic and the resultant lockdown has adversely affected the power sector finances, creating a situation of acute liquidity crisis across the value chain in the power sector as a consequence. In this situation, the liquidity infusion in the Power sector value chain will help to tide over the cash flow problem. This money will help discoms to repay most of the money that they owe to power generators( Gencos) and Transmission Companies( Transco’s). It will help restart the virtuous cycle of cash flow in the Power sector.

The loans will be provided to the DISCOMs against guarantees by the State Governments which will be used to clear liabilities of CPSE Gencos/Transco, IPP, and RE generators. Total funding quantum will be about Rs. 90,000 crore. The funding would be done in two tranches of Rs. 45, 000 crores each., it adds.

To further lift the discoms out of financial stress, Power Ministry as per another communication issued on 15.5.2020, has decided to defer the fixed charge on power not scheduled of Central Gencos for lockdown period and it will be repaid in interest-free three equal installments in subsequent months. During the lockdown period, there has been a significant drop in demand because industrial and commercial units were closed. According to the Power Purchase Agreements, Discoms pay a fixed charge to Gencos for all the contracted quantity, even if power is not drawn. This has burdened the Discoms because they have to pay for the power that was not used during the lockdown period.

They have also suggested a rebate of 20-25 percent on power supplied(fixed cost) including Inter-State Transmission Charges(ISTS) payable to PGCIL for the lockdown period. The Discoms have been asked to pass on these cost savings to the end consumers which will lead to a reduction in electricity cost to end consumers.