Finance

Latest forecasts predict capacity expansions of ever cheaper PV and wind power generation up to 2030 will do little to dethrone king coal in India.

Suzlon Energy has sold subsidiaries Amun Solarfarms and Avighna Solarfarms to Canadian Solar for Rs545 million. The company set up the units as special purpose vehicles for two solar projects of 15 MW each, at Ramannapet and Kamareddy.

Around US$1 billion is expected to be raised in the sale of up to 30% of Sterling & Wilson’s solar engineering arm. The funds will come from a pre-listing stake sale followed by an initial public offering (IPO), and will be used to reduce the debt of the 153-year-old conglomerate.

The Indian Ministries of External Affairs and Power, in collaboration with the Confederation of Indian Industry (CII), organized the South Asia Power Summit 2018, held recently in New Delhi. The daylong conference highlighted that diversity of energy resources in South Asian countries brings the opportunity to provide affordable, low-carbon energy in the region. The business case for enhanced energy trading in the region, and challenges faced in inter-country electricity trading were important elements of this discussion.

India added 1.2 GW of large-scale projects in the third quarter of 2018-19, taking new capacity in the first half to 1.9 GW. The numbers are down 43% and 44%, respectively, on the same periods of the previous year, according to Bridge to India’s quarterly India Solar Compass.

The world is witnessing a major shift in energy demand from advanced to developing economies, with demand growing fastest in India – according to the International Energy Agency’s (IEA’s) latest World Energy Overview.

Developers gave short shrift to gloomy predictions about depreciation, protectionism and tax headwinds as tendering and auction figures soared, but they shied away from the tough price caps set for SECI’s procurement exercises.

While the timelines for PV power plant execution and completion of manufacturing facilities are now more realistic, production obligations – especially for capacity utilization – need to be revisited.

The target of 105 GW of cumulative installed photovoltaic power, which was originally planned to be achieved by the end of the decade, has already been surpassed. PV Info Link now reports that the 2020 solar target may be revised upwards to between 210 GW and 270 GW.

The developer will supply energy to the NTPC under a 25-year PPA and can build the project anywhere in India, with construction slated to finish in early 2021.