YOG INFRA
- Jul 8, 2022
- 7 min read

Infrastructure & PPPs in India - Q2 2022 Update - Power & Energy Transition

YOG INFRA Q2 2022 insights

INDIA remains the most active Asian country and a highly transformative market for clean energy transition. Apart from continuous growth of renewable energy generation, there are multiple partnerships between Indian and international developers in areas of large-scale battery manufacturing and green hydrogen. We also see a trend of large C&I contracts by industrial consumers (factories, airports etc.) to make a switch to renewable energy.

Read more about key developments in Infrastructure and PPPs in India in power & energy transition sector our latest insight.

This is first publication on a 2-part insight series on India.

April 2022

INDIA’S NEW BIO-REFINERIES PROGRAMME TO INCLUDE PPPs

The Indian government has launched a bio-refineries programme aimed at accelerating clean energy solutions through public-private partnerships, among other methods. The programme is centered on technology advancement and cooperation for cost-effective production of sustainable biofuels.

Mission Integrated bio-refineries will involve partnerships between countries, international organisations, the corporate sector, academic institutions, and civil society.

INDIAN COMPANIES PLAN GREEN HYDROGEN VENTURE

Indian clean energy developer ReNew Power, state-owned Indian Oil Corporation and engineering and construction company Larsen & Toubro (L&T) have agreed a partnership for green hydrogen projects.

The new company will sell the gas at an industrial scale, L&T and Indian Oil have separately signed a binding term sheet to form a joint venture to manufacture and sell electrolyzers used in the production of green hydrogen.

The three companies will invest and own equal equity in the hydrogen venture, an Indian Oil, the project company will be set up in the next four to five months. It will first focus on green hydrogen projects at Indian Oil's refineries at Mathura in Uttar Pradesh state and at Panipat in Haryana, before considering other developments.

Green hydrogen, considered one of the cleanest sources of power in the world, is produced using renewable electricity. It is mainly used in the refining, steel and fertilizer sectors in India.

INDIAN STATE SEEKS INTEREST FOR 1.2 GW SOLAR PROJECTS

A state-owned energy procurement authority in India has invited expressions of interest to develop 1.2 GW of grid connected solar projects in Uttar Pradesh.

Bundelkhand Saur Urja, a joint venture between public sector hydro enterprise NHPC and the Uttar Pradesh New and Renewable Energy Development Agency, will sign a power purchase agreement with the developers at a fixed tariff capped at INR 2.75/kWh (USD 0.03 cents).

The projects will be developed in two phases of 600 MW each and are scheduled to be commissioned in 2024.

GREENKO - JOHN COCKERILL 2 GW GREEN HYDROGEN ECTROLYZER FACTORY

Greenko has formed a partnership with Belgian mechanical engineering group John Cockerill to set up a 2 GW green hydrogen electrolyzer factory in the Indian sub-continent. The facility will target a capacity of 2 GW. Greenko Group is an Indian renewables developer.

O2 POWER AND POWIN FORM INDIA BATTERY PACT

Indian renewable energy developer O2 Power has signed a memorandum of understanding with US-based Powin to develop battery storage projects. Marking its entry into India with the partnership, Powin will deliver and commission the storage systems while O2 Power will provide the engineering, procurement and construction services.

O2 Power - a company jointly set up by EQT Infrastructure and Singapore's Temasek - is currently looking to expand in the Indian renewable energy storage market. The company sees a large opportunity in India to provide battery integrated solutions to power utilities as well as to commercial and industrial customers who want round-the-clock power supply.

May 2022

INDIA FORGES RENEWABLES PARTNERSHIPS WITH GERMANY AND DENMARK

Germany has expressed interest in providing financial and technical assistance, including concessional loans of up to EUR 1 Bn (USD 1.01 Bn), to renewable energy projects in India as part of a bilateral partnership.

The partnership will focus on innovative solar energy and other renewables - including the associated challenges for grids, storage, and market design - and support the creation of a circular economy for solar technologies. The two sides will also prepare a roadmap for the development of the green hydrogen sector and explore collaboration on green energy corridors.

India is targeting an offshore wind generation capacity of 30 GW and high efficiency solar cells modules of 50 GW. The government is also planning to expand battery storage, green hydrogen, and green ammonia development.

SEMBCORP TO BUILD INDIA RENEWABLES PROJECT FOR SAINT-GOBAIN Singapore-based Sembcorp Industries' renewable power arm in India will build a 33 MW wind-solar hybrid project for French building materials maker Saint-Gobain. Saint-Gobain India will sign a power purchase agreement for 25 years with Green Infra Wind Energy for its manufacturing facilities in Sriperumbudur, Perundurai and Tiruvallur districts in Tamil Nadu state.

The asset will be developed over the next year. The exact locations are yet to be decided, with evaluation currently ongoing. Saint-Gobain India will own 26% equity in the project while the remaining will be with Green Infra Wind.

Saint-Gobain is aiming to achieve carbon neutrality by 2050 and is targeting to meet its entire power needs in India through clean energy sources by 2028. Sembcorp currently owns 5.7 GW of renewable energy capacity including wind and solar in India, Singapore, Vietnam and China. It aims to reach an installed capacity of 10 GW by 2025.

NORWAY'S STATKRAFT PLANS INDIA RENEWABLES PUSH

Norwegian state-owned energy developer Statkraft seeks to grow its India renewables capacity to 1.5 GW by 2025. The company, which plans to focus on hydro, solar, and wind power production in India, aims to reach 500 MW of generation capacity in each of the three segments by 2025.

Statkraft's first large-scale solar power plant in India — a 76 MW Nellai facility in the southern state of Tamil Nadu started operations. The Oslo-headquartered company is a hydropower producer internationally, and Europe’s largest generator of renewable energy. It produces hydro, wind, solar and gas-fired power and supplies district heating. It is present in 19 countries.

June 2022

INDIA'S ACME TO BUILD USD 6.7 Bn HYDROGEN PROJECT

Indian renewable energy developer ACME Cleantech has agreed to develop INR 520 Bn (USD 6.7 Bn) hydrogen and ammonia project in the southern state of Karnataka. The project will also include a solar power project in Mangaluru.

The project will start operating by 2027. ACME has signed a memorandum of understanding for the project with the Karnataka state government. The state is also formulating a green hydrogen policy.

Gurugram based ACME, which owns about 5.5 GW of renewables capacity across India, also owns another hydrogen ammonia solar power plant in the Bikaner district of Rajasthan.

The company is also developing another green ammonia facility in an equal joint venture with the Norwegian independent power producer Scatec. The project being developed in the Duqm Special Economic Zone of Oman is expected to produce up to 1.2 million tons of green ammonia annually once complete. The first phase of the facility is expected to produce 100,000 tons of green ammonia annually with about 300 MW of electrolyser capacity and powered by 500 MW of solar.

INDIA’S AYANA POWER TO DEVELOP RENEWABLES PROJECTS IN KARNATAKA

India’s Ayana Power has signed an expression of interest with the state government of Karnataka to invest INR 120 Bn (USD 1.54 Bn) for developing wind and solar power projects with a total capacity of 2 GW.

The National Investment and Infrastructure Fund-backed renewables developer has an operational portfolio of 340 MW (alternating current) in the state.

INDIAN BATTERY MAKER WINS GREEN HYDROGEN PROJECT

Amara Raja Power Systems — a part of the USD 1.3 Bn Amara Raja Group — has won a contract from India's state-owned NTPC to set up the country's first green hydrogen station in Leh, a central-government administered territory. The pilot project will produce a minimum of 80 kg/day of 99.97% pure hydrogen, which will be compressed, stored, and dispensed.

NTPC initially plans to ply five hydrogen fuel cell buses in the region. A part of the National Hydrogen Energy Mission, the project is a precursor to large-scale green hydrogen mobility and storage projects in the country, Amara Raja said in the statement.

PETRONAS INDIA SIGNS 100 MW SOLAR DEAL WITH MICROSOFT

Amplus Solar, a unit of Malaysian energy company Petronas, has signed a long-term agreement to sell electricity to technology major Microsoft in India. It will build a 100 MW solar project in Rajasthan state to fulfil the contract.

Amplus will finance the project through a mix of equity and debt that is yet to be arranged.

The project will be located near Bikaner district. Microsoft and Petronas have also agreed to co-innovate digital solutions that will support Petronas' efforts to achieve net zero carbon emissions by 2050.

The companies will look to develop the energy industry’s first Digital Sustainability Core to use technology to power environmental sustainability. They will build an intelligent platform powered by data and artificial intelligence for a sustainability hub to record, report and reduce emissions.

Amplus owns a solar portfolio of more than 1.1 GW in India including large scale, commercial and rooftop power projects.

DELHI AIRPORT SWITCHES ENTIRELY TO RENEWABLE ENERGY

India's Delhi International Airport (DIAL) has switched to green energy and uses hydro and solar power for all its energy requirements.

The aerodrome has secured a long-term power purchase agreement with a hydropower producing facility in Himachal Pradesh till 2036.

As part of the Green Transportation Program, DIAL has also started using electric vehicles (EV) and plans to phase out all diesel-and petrol-run vehicles. In the first stage, DIAL will procure 62 EVs that will join the fleet in the next three to four months.

List of key transactions - Power & Renewable Energy - India

Source: Inframation, YOG INFRA analysis

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Our objective is to drive economic growth and make positive social impact through sustainable infrastructure development. YOG INFRA is an infrastructure focused financial advisory firm. We work with Developers and Development Finance Institutions (DFIs) and help them make informed investment decisions across infrastructure development lifecycle. With our offices in Singapore and India, we work on projects globally, and the team brings strong experience in supporting development of infrastructure projects.