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Infrastructure & PPPs in India - Q3 2021 Update - Power & Renewable Energy

INDIA is witnessing a large number of green hydrogen and battery storage project developments. The country's renewable energy story continues to see significant investments from both local & global developers and financiers.

Read more about key developments in Infrastructure and PPPs in Q3/2021 in India in power & renewable energy sector our latest insight.

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

 

July 2021

GOA AUTHORITY INVITES BIDS FOR WASTE PROCESSING PLANT

The waste management corporation of Goa state has called for bids to set up a solid waste facility in a public-private partnership (PPP). The facility - to be located in Bainguinim village in North Goa - will process 250 tonnes of waste daily and carry a 10-year concession.

The concessionaire will be responsible for the design, engineering, financing, construction and operations and maintenance. The plant will cater to the Tiswadi sub-district and will have facilities for recycling, sorting, segregation, bio-methanation and composting systems.

The project is being taken up in order to expand the state’s waste processing capacities. A nearby facility with capacity of 150 tonnes has been receiving wet and dry waste of more than 200 tonnes every day. The state government has a plan to set up more waste treatment plants.


INDIA'S JSW TIES UP WITH FORTESCUE FOR GREEN HYDROGEN

India's JSW Energy has signed an agreement with Australia’s Fortescue Future Industries (FFI) to jointly produce green hydrogen. The pact is aligned with the Mumbai-based industrial conglomerate’s objective of raising the share of renewables in its power generation portfolio to 85% by 2030 from 30% at present.

Fortescue Future Industries, part of metals group Fortescue, will work with JSW Energy on potential projects in India. The tie-up comes amid Indian government plans to impose domestic green hydrogen consumption obligations on some industries. The Ministry of New and Renewable Energy is currently seeking feedback on its National Hydrogen Energy Mission policy draft.


Aug 2021

RENEW AGREES 500 MW RENEWABLES DEAL WITH DATA CENTER

Indian renewable energy company ReNew Power has signed a deal to supply about 500 MW of electricity to data centre platform RackBank’s hyperscale facility in the country.

Goldman Sachs-backed ReNew will develop, co-own and operate a hybrid power project for the data center, the first such green facility in India. The project will be built by ReNew Green Solutions, the company's business-to-business arm.

RackBank will purchase the electricity through an open access mechanism - which allows bulk commercial users to buy power at a lower tariff from a private developer's offsite projects instead of from a local utility. The 35,000 sqft data center, in the southern Indian city of Chennai, will have 500 MW of IT infrastructure capacity in the next five years.

As part of the deal, the project will offset any non-renewable power consumed by RackBank’s data center through green credits purchased from ReNew, ensuring that the data center operates on a net-zero emissions basis.


GOA PLANS PPPS TO BUILD SEWAGE TREATMENT PLANTS

The government in India's Goa state has compiled a new policy that proposes using public-private partnerships (PPPs) to build sewage treatment facilities.

Currently, municipalities across the state generate about 250 MLD (million litres per day) of wastewater, most of which is discharged untreated into water bodies. This is projected to increase to about 350 MLD in the next two to three years. The intent is to treat this wastewater to varying degrees so that industries can reuse the resource. This will require new sewage treatment plants, which the government intends to set up as PPPs.

Other focus areas of the new policy include desalination of seawater for drinking, the development of hydropower, rainwater harvesting and floodplain management. The progress of the action plan as outlined by the policy will be reviewed every three years. The policy document itself will be reviewed after 10 years.


RENEW TO INVEST USD 1.2BN IN WIND-SOLAR PROJECT

ReNew Power will invest up to USD 1.2Bn to develop a 1.3 GW hybrid renewable energy project comprising wind and solar. The Gurugram-headquartered company, backed by investors such as Goldman Sachs and Canada Pension Plan Investment Board (CPPIB), will set up the project at three locations across the Indian states of Karnataka, Maharashtra, and Rajasthan.

The capacity includes 900 MW of wind and 400 MW of solar along with corresponding battery storage.


TATA TO BUILD LADAKH SOLAR POWER-BATTERY PROJECT

The Solar Energy Corporation of India (SECI) has selected Tata Power to develop a 50 MW/50 MWh solar power and battery energy storage system (BESS) project in the country's northern region of Ladakh. The development, India's first co-located solar power generation and BESS project, will cost an estimated INR 38.6Bn (USD 52Mn).

The project will be situated at Phyang village in Ladakh's Leh district. It will be the first large scale solar project in the high-altitude area of Ladakh, sitting 3,600 meters above sea level. The BESS will be operated and maintained by Tata Power for 10 years. It is expected to start operations in March 2023.


September 2021

INDIA'S TATA POWER WINS 330 MW SOLAR PROJECTS

India's Tata Power has won the right to develop two solar power projects with a combined capacity of 330 MW in Madhya Pradesh state. These consist of the 160 MW Unit 1 and 170 MW Unit 2 in the Neemuch solar park.

The project was awarded by Rewa Ultra Mega Solar Ltd. (RUMSL), a joint venture between the Solar Energy Corporation of India (SECI) and the Madhya Pradesh state government. The agency has been tasked with the development of large-scale solar parks in Madhya Pradesh.

The Neemuch solar park will have a total capacity of 500 MW, with the 170 MW Unit 3 to be developed by Dubai's Al Jomeh Energy and Water Company. The Tata Power projects will supply electricity to the Indian Railways and the Madhya Pradesh electric utility in a 25-year power purchase agreement (PPA). The project is scheduled to be completed within 19 months of the signing of a PPA.


INDIA SEEKS BIDS FOR 4 GWH OF BATTERY STORAGE

India plans to invite bids from foreign and domestic companies to develop 4 GWh of batteries around the country. The 4 GWh auction will be followed by a 12 GWh grid-scale battery storage project in the Ladakh region of India. The Ladakh project will include 10 GW of solar and wind power to be developed in Ladakh, 3,600 meters above sea level, as well as battery storage systems.

There is a global need to grow the use of batteries and electrolyzers so that those technologies can benefit from economies of scale and help shift the world from fossil fuels to renewable energy. India plans to grow from 100 GW of operational solar and wind capacity and 63 GW under construction to 175 GW of renewables next year. The plan is to use large batteries to stabilise the grids, given the intermittent supply of power from solar and wind.


INDIA'S TATA POWER WINS MAHARASHTRA SOLAR TENDER

Indian diversified power company Tata Power has won the right to build a 250 MW solar power plant in the state of Maharashtra. State-owned National Thermal Power Corporation and Sutlej Jal Vidyut Nigam also bid but Tata Power won the entire capacity.

Tata Power's unit TP Saurya will build the grid-connected solar project at the Dondaicha Solar Park in Dhule district of the state and sell the power to the utility Maharashtra State Electricity Distribution Company Limited (MSEDCL). The project must be commissioned within 15 months of the power purchase agreement (PPA) being signed.

 

List of key transactions - Power & Renewable Energy - India



List of Upcoming Projects - Power & Renewable Energy - India


Source: Inframation, YOG INFRA analysis

 

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