Benelux_Infrastructure_Forum_171
24 April 2017 2017 09:15 AM GMT

India’s Solar Objectives Get Major Boost with 750MW Rewa Ultra Mega Solar Park

India’s State Government of Madhya Pradesh has signed project agreements with solar power companies making Rewa Ultra Mega Solar Park a reality and helping India get closer to its 100 GW solar energy goal by 2022. IFC, a member of the World Bank Group, is the lead transaction advisor for this project that will mobilise $550 million in private investment and avoid a million tonnes of GHG emissions. The project is led by Rewa Ultra Mega Solar Limited (RUMSL), a joint venture between the Solar Energy Corporation of India (SECI) and Madhya Pradesh Urja Vikas Nigam Limited (MPUVN). The initiative utilised a robust project structure and innovative de-risking mechanisms, paving the way for other large-scale solar power projects in India.

With a record low tariff of US Cents 4.4/kilowatt hour offered through a competitive bidding process, the project achieved the lowest tariffs ever awarded for a solar project in India, bringing solar tariffs in the country on par with fossil fuels for the first time. “The Rewa solar park transaction will have an enormous ripple effect, helping create new markets for large solar projects across India and the region,” said Philippe Le Houérou, IFC Executive Vice President and CEO. “We have partnered with state and national government agencies for years to develop the solar market in India – from rooftops to mega solar parks – and the agreements signed today are the next step in IFC’s efforts to help India be a global leader in renewable energy and secure a clean, sustainable future.”

As transaction advisor appointed by the government of Madhya Pradesh, IFC played a strategic role in advising RUMSL in designing the structure, balancing public and market risks, and creating a competitive auction process. IFC also assisted in developing a unique power scheduling arrangement that enabled the Delhi Metro Rail Corporation to take energy straight from the solar park to power its rail service. “With the Ministry of New & Renewable Energy asking other states to incorporate many key provisions of this transaction into their solar projects, we are very proud that Madhya Pradesh is leading the way in large-scale renewable power developments in India,” said Manu Srivastava, Chairman, Rewa Ultra Mega Solar Limited and Principal Secretary, New and Renewable Energy Department of Government of Madhya Pradesh. “This is the first time that solar power has achieved grid parity in our country, which means that the ambitious renewable energy targets set by the Government of India are within reach. This is truly revolutionary. IFC played a critical role in this record-setting project.”

The 750 MW capacity project was auctioned in three packages of 250 MW each, and will be one of the biggest single site solar projects in the world. The three winning bidders for the project are Mahindra Renewables, ACME Solar, and Solenergie Power. The winning bidders signed two sets of power purchase agreements with the Madhya Pradesh Power Management Corporation Ltd (MPPMCL) and the Delhi Metro Rail Corporation. With about 24% percent of energy from the park being sold to the Delhi Metro, it will meet about 80% of daytime energy requirement of Delhi Metro.

The Rewa solar project will also receive financing from the World Bank, which is helping India deliver on its solar ambitions with more than $1 billion in lending over FY2017, as well as supporting the India-led International Solar Alliance, which aims to promote solar use globally by mobilising $1 trillion in investments by 2030.

India is IFC’s top country exposure, globally. IFC’s committed portfolio in India is over $5 billion as of June 30, 2016. In FY16, IFC committed $1.1 billion in new investments in the country. In addition to strengthening local capital markets in India, IFC is focused on boosting financing in infrastructure and logistics, promoting financial inclusion, helping create conditions to attract increased private capital, and helping structure public-private partnerships. 

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it’s needed most. In FY16, our long-term investments in developing countries rose to nearly $19 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity.

August 9th 2017
IDFC Alternatives Fund Acquires Solar Projects Totaling 190MW From First Solar

India Infrastructure Fund II (IIF II), represented by its investment manager, IDFC Alternatives Limited, one of India’s largest alternatives fund managers, is to acquire seven operating solar projects owned and operated by the First Solar Group in the Indian states of Andhra Pradesh and Telangana aggregating to a capacity of 190 MW. All the projects utilise First Solar’s advanced CdTe (Cadmium Telluride) based thin film modules, one of the most environmentally friendly PV technologies, and sell the power generated to state utilities, under long term power purchase agreements. Aditya Aggarwal, Partner, IDFC Alternatives stated that “consistent with its stated strategy of aggregating operating renewable assets, IIF II is well on its way to achieving an installed base of 400-450 MW of operating renewable assets by the end of the current financial year.”

August 17th 2017
Siemens Gamesa Installs Asia’s Tallest Turbines, Whilst Stepping Up Integration

Siemens Gamesa has set a new record in Asia by installing this year the tallest wind turbines on the continent. The turbines are equipped with 153-metre tall towers, and with the 56-metre blades, they reach a total height of 210 metres. Presently, a major focus for the company is the integration of the entities of Siemens and Gamesa. This has the objective of realising the new company’s substantial potential, thanks to its bigger scale and global reach: a presence in more than 90 countries, an installed base of 75 GW, and an order book of €21bn.

August 14th 2017
Offshore Wind Drives 6.1 GW Of European Wind Installations In First Half Of 2017

6.1 GW of extra wind energy capacity was installed in Europe in the first half of 2017, according to figures released by WindEurope. The figure puts Europe on course for a bumper year for installations, although hides some worrying trends. WindEurope Chief Policy Officer, Pierre Tardieu, said: “We are on track for a good year in wind capacity installations but growth is driven by a handful of markets. At least ten EU countries have yet to install a single MW so far this year. Although this won’t translate into lower installations for another few years, the industry needs clarity on volumes for the post-2020 period to maintain the current cost reduction trend”.

August 9th 2017
35% Of German Electricity Consumption Now From Renewables: Grid Challenges Ahead

The Centre for Solar Energy and Hydrogen Research in Baden-Württemberg (ZSW) and the German Association of Energy and Water Industries (BDEW) have stated in an initial assessment that electricity generated from clean energy accounted for 35% of Germany’s consumption in 1H 2017. It’s the first time that this mark has been reached. The total share of electricity generated from renewables was up 2% from last year. The growth from onshore wind was 13.6%; offshore wind saw the steepest growth at 47.5%; growth from biomass increased by 2.2%, whilst the growth from PV systems was 13.5%, compared with the 1H 2016.