China power crisis hits Indian solar projects
After the ravages of Covid-19, electricity shortages in China have now raised costs for its solar manufacturers, with knock-on effects for developers in India too, again highlighting the dangers of relying on a single solar supply chain.
Green lending criteria could improve the performance of power discoms in India
A new report finds the current credit rating mechanism for power distribution companies in India is highly linked to their operational and financial performance. The report highlights the need to revise discom ratings to reflect their green mandates, decarbonization plans, and tariff implications to resolve the challenges of payables (and receivables).
Proposed power market reforms could reduce renewable energy costs further
A new IEEFA note discusses the impact of the proposed market-based economic dispatch mechanism for procuring bulk power, and regulations for frequency control ancillary services.
APTEL orders compensation for solar curtailment in Tamil Nadu
The Delhi-based Appellate Tribunal for Electricity (APTEL) has directed Tamil Nadu State Load Despatch Centre (TNSLDC) and The Tamil Nadu Generation and Distribution Corporation (TANGEDCO) to compensate developers at 75% of PPA tariff per kWh on solar curtailment.
Prioritizing efficient plants in coal power dispatch could save INR 9,000 crore annually
A new report proposes a scenario that prioritizes efficiency over variable costs in India’s coal power dispatch mechanism. It goes on to estimate the efficiency improvements and cost savings achieved in this scenario.
One Nation, One Grid, One Price
The Indian power sector is set for a revolution with the proposed market-based economic dispatch (MBED) mechanism. MBED aims to establish a uniform pricing framework that prioritizes the least cost and most efficient generators while backing down more expensive ones, thereby creating a national merit order.
Electricity demand in India to grow at 6% in FY2022
Ratings agency ICRA maintains a negative outlook for thermal power generation despite a rise in electricity demand. The thermal plant load factor will remain subdued at 57%. The gap between the average cost of supply and the average tariff for discoms is estimated at 70-75 paise per unit for FY2022.
NTPC seeks offtakers for 735 MW Nokh solar project
Applications are invited for procurement of power generated from NTPC’s 735 MW solar power project in Nokh, Rajasthan. To qualify, the applicant must have a sanctioned load greater than 2 MW.
China’s Jinchen holds 10 GW of solar production line orders from India
Jinchen Machinery has landed module production equipment orders from leading Indian solar manufacturers. It has already installed 2 GW of production lines and plans to supply the balance within three months. The company will open an India office in Surat, Gujarat.
Module price increases to moderate solar project returns
Solar module prices have increased by about 15-20% over the last 4-5 months to around 22-23 cents/watt as of date. As PV modules comprise about 50-55% of the overall project cost, such an increase in the module price level, if sustained, may moderate the debt service coverage metrics for developers by about 12-14 basis points.
