Finance

An analysis by India Ratings and Research (Ind-Ra) says improvements in PV panel designs and costs, lower financing costs, and state-specific sectors such as the location’s solar potential and certain waivers have driven the decline in Indian solar tariffs.

The solar glass manufacturer plans to utilize the funds to more than double its solar glass production capacity from 450 tonnes per day (TPD) to 950 TPD.

The Indian renewables platform’s promoters have committed additional equity funding of $390 million, taking the total to $721 million. National Investment and Infrastructure Fund (NIIF), accounting for $284 million of the new injection, becomes the majority shareholder now. U.K. government-owned development finance institution CDC Group and UK-India Green Growth Equity Fund (GGEF) have committed $70 million and $36 million, respectively.

A new report looks at the rising dependence of India’s DISCOMs on electricity subsidies, despite concerted bailout efforts by the central government. It assesses various states’ performance in reining in DISCOMs’ financial losses and enhancing their overall efficiency over the last five years. Building on these findings, the study suggests reforms in the distribution and design of subsidies to increase power companies’ revenues as consumption surges.

The rating considers the central government’s direct ownership and very strong level of control, the company’s important policy role as a financier to encourage renewable energy investments in India, and its status as a nodal agency to carry out the government’s initiatives for the sector. 

Gopal Lal Somani, a former director at the Jaipur-based Rajasthan Renewable Energy Corporation Ltd (RRECL), says distributed solar systems with storage are the key to achieving India’s mission of supplying clean energy at an affordable cost to all. In this article, he dwells on the benefits and techno-commercial feasibility of these systems for the nation.

India Ratings says innovative measures to mitigate financing risks, optimize financing costs, and reduced currency risks leading to higher equity returns and better coverages provide international renewable energy players an edge over domestic peers.

As per the agreement, the Indian Renewable Energy Development Agency (IREDA) will undertake techno-financial due diligence of renewable energy, energy efficiency and conservation projects for state-owned hydropower producer Satluz Jal Vidyut Nigam Ltd (SJVN).

The Distribution Companies (DISCOMs) shall be the implementing agency for agricultural feeder-level solar plants and shall incentivize farmers for consuming power below the benchmark consumption for their area—an important measure for conserving groundwater level.

The minimum solar tariffs discovered fell by 131.5% over the last five years, with an 18% drop achieved in the last five months alone.