A new study by Wood Mackenzie stated that India and Australia are the only markets in the Asia Pacific with levelled cost of electricity (LCOE) for renewables cheaper than new-build coal. The report says by 2030, all of Asia Pacific will have cheaper renewable power compared to the lowest-cost fossil fuel.
The report predicted that in India, renewable energy generation cost will further decline to become 56% cheaper than new-build coal by 2030. In Australia, the second-cheapest renewable power market in Asia Pacific, renewable power generation will be 47% cheaper than new-build coal, the report said. India will dominate the costs because the country has low construction and labour costs and good renewable resources, the report said.
Floating wind power capacity to grow 2,000 times to 250GW by 2050: report
According to a recent report, floating wind power capacity will grow 2,000 times from the present 100 megawatt (MW) to 250 GW in 2050. The report stated floating wind energy will contribute 2% of the world’s electricity supply by 2050 and more than 20% of the offshore wind market. Researchers of the Norway-based risk management and quality assurance company DNV GL said the cost of floating wind will fall about 70% by 2050. Industry will require comprehensive standards and risk management for the technology to scale, the report said. The average costs are not expected to fall below those for bottom-fixed wind, but the price difference would narrow as both fall, the report said.
The key to these savings would be the highly cost-competitive supply chain, introduction of bigger turbines, larger wind farms and significant technology developments.
Adani green stocks get 562% surge in 2020, lack of analyst coverage baffles market
Adani Green Energy, the largest energy firm in India is the only company in the top 100 in stocks that has no analyst coverage, or rating, Bloomberg reported. Shares of Adani Green rose 562% in 2020. Market players are “baffled” by the zero presence of analyst coverage. Experts said the company’s low free float, the percentage of shares available for trading, may be the key reason for that.
Adani’s stock gains have pushed the company’s market cap to $23.4 billion, over 40-fold jump from its value at the end of June 2018, when the company made its stock-market debut. In January, the company said it will be the world’s largest renewable power company by 2025. In June, it said it will invest Rs450 billion to execute what it called the world’s largest solar order. Experts said it takes courage to take a call when things are in process, when the WIP is happening, experts said.
IEEFA analyzes key reasons behind the new record low of Rs2 /KW at the recent SECI auction
According to the latest analysis by IEEFA, the key factors behind the new record low tariff for solar projects at ₹2/kWh at Solar Energy Corporation of India (SECI) auction of November 23, 2020, include access to low-cost financing at 7-7.5% for government entities like NTPC and for international developers able to arbitrage multi-decade, record-low OECD interest rates (even adjusting for a significant combined currency and country risk premium for India). And the expectation that mono PERC module prices will fall 10-15% to reach USc19-20/Wp (watt peak) by 2022 (excluding duties and taxes).
The Institute of Energy Economics and Financial Analysis (IEEFA) added that the power purchase assurance between the intermediary procurer SECI and the buying entity provides confidence to developers and minimises the off-taker risk. Power procured by SECI has been provisioned to be sold to Rajasthan Urja Vikas Nigam Limited (RUVNL). Another contributing factor may be that modules for this specific tender will be exempt from safeguard duty (SGD) and basic Custom duties (BCD), IEEFA said.
Telangana to pay ₹58.3 million in GST & VAT refunds to two solar firms
The government of Telangana will pay nearly $789,059 to two solar project developers as refunds under State Goods and Services Taxes (SGST) and Value Added Taxes (VAT). Telangana approved around $352,847 payable to Pratamesh Solarfarms Limited, a subsidiary of ReNew Power and $436,212 to SE Solar Limited, a subsidiary of Suzlon Energy. Both companies are based at Wanaparthy in the district of Mahabubnagar, Telangana.
The companies had claimed SGST and VAT refunds as per the Solar Power Policy, 2015, for setting up solar power projects in the state. In April, the Central Electricity Regulatory Commission (CERC) said the introduction of GST fell within the scope of the “Change in Law” clause for power-purchase agreements. It stated that any additional costs borne by solar developers due to the imposition of GST were to be reimbursed.
India and Sweden to fund joint research in smart grids sector
India and Sweden will jointly develop new technologies in the smart grids sector. The countries have called for proposals from Indian and Swedish companies. The selected projects shall be co-funded by India’s Department of Science & Technology and the Swedish Energy Agency for two years. The consortium of companies could also include research organisations such as universities and research institutes. The DST will provide total funding of up to Rs18 crore to support Indian partners, while the Swedish side will give a maximum of 25 million Swedish Krona for the Swedish project partners. Projects can start January 1, 2022, and must end by December 31, 2023.
India’s Department of Science & Technology and the Swedish Energy Agency have launched a collaborative funding programme for Indian and Swedish companies that aim to jointly develop new technologies, services and processes in the area of smart grids.
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