YOG INFRA Q3 2024 insights
INDIA has attracted a lot of interest and investments on its clean energy transition journey - across the value chain of renewable energy projects. We see project developments in rooftop solar, power transmission, pumped storage, battery storage etc. The green hydrogen projects have received a mix response with recent cancellation of a public tender which didn't attract bidder interest. Innovative financing modalities continue to be explored - including use of green bonds, large-scale refinancings and blended finance mechanisms.
Read more about key developments in Infrastructure and PPPs in India in power & clean energy transition sector our latest insight.
This is first publication on a 2-part insight series on India.
JULY 2024
ADB APPROVES SUPPORT FOR ROOFTOP SOLAR SYSTEMS IN INDIA
The Asian Development Bank (ADB) has approved USD 240.5 Mn in loans to finance rooftop solar systems in India that will help the government expand energy access using renewable energy. The financing will support tranches 2 and 3 of the Multitranche Financing Facility (MFF) Solar Rooftop Investment Program approved by ADB in 2016. The program was restructured in 2023 to focus on deploying residential solar rooftop systems.Â
India aims to achieve about 50% of the cumulative electric power installed capacity from non-fossil fuel energy sources by 2030, which is in line with its global commitments to reduce carbon emissions. The financing will be made available to the State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (NABARD) to provide loans to developers and end-users throughout India to install rooftop solar systems. ADB will provide SBI USD 90.5 Mn from its Clean Technology Fund (CTF) while NABARD will receive USD 150 Mn—comprised of USD 80 Mn from ADB’s ordinary capital resources and USD 70 Mn from CTF.
USD 5.3 BN TRANSMISSION PROJECTS DELAYED, PLAN TO BOOST POWER SUPPLY MAY BE HIT
India’s plan to pre-empt a crisis of electricity shortage by quickening the capacity addition across the value chain is facing a hurdle, with as many as 32 transmission projects entailing investments of USD 5.3 Bn being already or likely to be delayed.
According to data from the ministry of statistics and programme implementation, 50 large projects worth USD 7.1 Bn being implemented by the Power Grid Corporation of India (PGCIL), 18 with total value of USD 3.4 Bn are facing an average delay of 32 months. Another 8 projects bid out by the state-run entity under the Tariff Based Competitive Bidding (TBCB) route with total value of USD 1.04 Bn are reporting an average delay of 12 months.
As per Central Electricity Authority’s draft plan, the country requires investments of USD 57 Bn by 2027 for developing its transmission infrastructure, including lines, substations, and reactive compensation. The plan includes 170 transmission schemes with a total estimated cost exceeding USD 37 Bn for inter-state transmission and around USD 19 Bnd for intra-state systems. PGCIL holds over 80% of the country’s transmission projects. The share of private companies is increasing gradually, thanks to the TBCB route.
The peak power deficit to touch 35 GW by 2032 due to inadequate installed capacity. The quantum of deficit will depend on the rate at which the demand grows. Deficits are more certain because we do not have adequate supply. It’s not about coal availability anymore, it’s about installed capacity not being there.
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RIL LAUNCHES PILOT SOLAR AND BATTERY STORAGE PROJECTS IN JAMNAGAR.
Reliance Industries (RIL) has commenced pilot projects for its solar and battery energy storage initiatives in Jamnagar. These pilots precede the anticipated start of production of 9.6 GW solar modules later this year.A vast giga complex is being developed, spanning over 5,000 acres, as part of its new energy business, with a significant investment exceeding USD 10 bn. In its first quarter results for FY25, the company briefly mentioned its new energy business, highlighting significant progress in the implementation of new energy giga factories without delving into specifics.
The green energy ecosystem's main components include integrated solar modules, a battery storage system, and renewable energy feeding into modular electrolyzers for green hydrogen production, which will be converted into electricity via fuel cells. Reliance Industries has strategically prepared for the entire value chain through ten strategic acquisitions totaling approximately USD 1.5 Bn.
In January 2024, the company secured a 74,750-hectare land agreement with the Gujarat government for green hydrogen production. In April, it acquired six plots from the Deendayal Port Authority to establish units for producing green hydrogen and green ammonia. Additionally, the company participated in the rebidding of the Production-Linked Incentives (PLI) scheme for manufacturing 10 GWh Advanced Chemistry Cells and had previously secured PLI for 5 GWh ACC storage in 2022, along with PLIs for solar modules.
BLUEBIRD SOLAR RAMPING UP PANEL CAPACITY TO 1.2 GW
Bluebird Solar has announced its collaboration with Cliantech Solutions to install an 800 MW fully automated solar panel manufacturing line at its facility in Greater Noida. Bluebird Solar currently operates a 400 MW production capacity. The introduction of this new 800 MW manufacturing line, scheduled to be operational by the end of Q3 of 2024, will increase Bluebird Solar’s total manufacturing capacity to 1.2 GW. With this, it will produce n-type TOPCon PV modules up to 645Wp in various cell configurations like 132 cells, 144 cells and 156 cells.
Situated across a sprawling 5-acre facility in Greater Noida, Bluebird Solar’s manufacturing and warehousing infrastructure spans over 2 lakh square feet. The facility employs advanced, ISO-certified processes that integrate cutting-edge AI-driven machinery to produce solar PV modules. This ensures that every phase—from raw material procurement to final product delivery—is meticulously controlled, adhering to stringent quality standards and eliminating any margin for error.
The Memorandum of Understanding (MoU) signed between Cliantech Solutions and Bluebird Solar also outlines plans for an additional 600 MW production line, slated to be operational by Q1 2025.
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SJVN SECURES 2.4 GW PUMPED STORAGE PROJECT IN MIZORAM
SJVN has received a Letter of Intent for allotment of a 2.4 GW pumped storage project from the state government of Mizoram. The pumped storage project has been proposed across Darzo Nallah, a tributary of Tuipui river. The estimated cost of the project on completion is USD 1.6 Bn including IDC [interest during construction) and financing costs.
This is SJVN’s first project in the state of Mizoram. The pumped storage project is on-stream closed-loop type. It comprises eight units of 300 MW each. The annual energy generation with 95% plant availability shall be 4,993.20 MU. The annual input energy required for pumping water to the upper reservoir has been estimated to be 6,331.66 MU with 95% plant availability. The project completion period is 72 months.
AUGUST 2024
IOCL CANCELS GREEN HYDROGEN TENDER AGAIN AFTER BIDDERS' DISINTEREST
State-run Indian Oil Corporation Ltd (IOCL) has withdrawn a tender for constructing India's first green hydrogen plant at its Panipat refinery in Haryana for the second time. IOCL, marked the tender as "cancelled" on its website. The tender was pulled due to only receiving two bids. Previously, it had been reported that the bidders were GH4India and Noida-based Neometrix Engineering. This tender was noteworthy as it marked India's first venture into determining the cost of green hydrogen via competitive bidding.
In August last year, IOCL invited bids for establishing a green hydrogen production unit with a capacity of 10,000 tonnes per annum at its Panipat refinery. This unit was intended to be built, owned, and operated for 25 years. According to the tender terms, the winning bidder was required to commence hydrogen gas delivery within 30 months of the project's award. The project involved a 75 MW electrolyzer capacity to generate 300 MW of clean energy, with an overall capital expenditure estimated at USD 400 Mn. However, industry participants highlighted several clauses in the bid document that appeared to favour GH4India.
Around 30 entities obtained pre-bid documents in May, including Indian firms like Inox-Air Products, Acme, Tata Projects, and NTPC, as well as international companies such as Siemens, Petronas/Gentari, and EDF. Prospective bidders have raised concerns about the eligibility criteria, specifically the requirement for experience in operating hydrogen systems, EPC, and electrolysers.
JSW NEO ENERGY SECURES 230 MW RENEWABLE ENERGY CONTRACTÂ
JSW Neo Energy Limited, a wholly-owned subsidiary of JSW Energy Limited, has been awarded a 230 MW contract for firm and dispatchable renewable energy by the Solar Energy Corporation of India Limited (SECI). This contract is part of SECI’s competitive bid for 630 MW of ISTS-connected firm and dispatchable power from renewable energy projects (SECI-FDRE-IV). With this addition, JSW Energy’s total locked-in generation capacity has increased to 16.4 GW, including 2.3 GW of hybrid capacity.
JSW Energy currently operates 7.5 GW of capacity and aims to reach 10 GW by FY25. The company’s portfolio includes thermal (3,508 MW), wind (1,962 MW), hydel (1,391 MW), and solar (675 MW) power generation. The company has set ambitious targets, including achieving 20 GW of generation capacity and 40 GWh of energy storage capacity before 2030. JSW Energy also aims to become carbon neutral by 2050. This contract aligns with JSW Energy’s strategy to expand its renewable energy offerings and transition towards becoming an energy products and services company.
INDIAN CONSORTIUM WINS HYDROGEN ELECTROLYSER BID
Gensol Engineering Ltd and Matrix Gas & Renewables Ltd emerged as the winning consortium to manufacture a 237 MW hydrogen electrolyzer under the production-linked incentive (PLI) scheme. It is part of a competitive tender issued by the Solar Energy Corporation of India (Seci), with the total capacity secured by the consortium reaching 300 MW. The Gensol-Matrix consortium’s winning bid secures a cumulative capacity of 300 MW, which includes a prior award of 63 MW under the first tranche of the Seci tender. The total incentive under the PLI scheme amounts to USD 53 Mn.
Electrolysers are essential for the production of green hydrogen, a key element in the global push towards decarbonisation. The Gensol-Matrix project will, therefore, play a crucial role in this effort, further solidifying India’s position as a leader in sustainable energy. The project is poised to contribute significantly to India’s ambitious target of producing five million metric tons of green hydrogen annually by 2030.
RENEW SIGNS 437.6 MW GREEN ATTRIBUTE CONTRACT WITH MICROSOFT
ReNew, India’s leading renewable energy company announced the signing of a green attribute sale contract of 437.6 MW with Microsoft. This contract is expected to generate over one million units of green electricity attributes annually, contributing to Microsoft’s ambition to be carbon-negative by 2030.
As part of the agreement, ReNew will direct approximately USD 15 Mn of revenue from the contract towards a community fund to support environmental justice initiatives focusing on women’s livelihoods and economic empowerment, energy access, rural electrification, environmental remediation and water quality improvement, and other concerns of communities disproportionately impacted by pollution and climate change. This work will be delivered in partnership with ReNew Foundation, the philanthropic arm of ReNew, which works to create sustainable communities through climate action with a focus on women and youth and whose efforts are aligned with Microsoft’s Environmental Justice priorities.
BROOKFIELD-BACKED AVAADA ENERGY SEEKS HYDROPOWER ACQUISITIONS
Mumbai-based integrated renewable power developer Avaada Energy is open to exploring potential acquisitions of hydropower projects in India. The company is interested in supplementing renewable energy supply with technologies or resources that ensure the availability of power 24/7.
India has an aggregate capacity of 15 GW of construction-stage hydropower projects. The country’s total hydro capacity is likely to increase to 67 GW by 2031-32 from 42 GW. In June 2023, Avaada Energy announced a USD 1.3 Bn funding round, which included USD 98 Mn committed by Brookfield Renewables, as well as an additional USD 23 Mn from Thailand-based Global Power Synergy, an existing shareholder, that holds 42.93% of the company.
Global Power had previously invested USD 6 Mn in the same year. The funds will be used to bolster Avaada's green hydrogen, green methanol, green ammonia, solar manufacturing and renewables ventures. Avaada Energy’s portfolio includes renewables, green fuels and storage solutions. It has an operational capacity of a little more than 4.5 GW and ongoing projects of a combined capacity of 2.5 GW to 3 GW. It targets to secure an operational capacity of 11 GW by 2026, and 30 GW by 2030 for its IPP business.
SEPTEMBER 2024
I SQUARED, JSW NEO AND MACQUARIE REPORTEDLY SHORTLISTED TO BUY O2 POWER IN USD 1 BN DEAL
New York-based private equity firm I Squared Capital Advisors, LLC, JSW Neo Energy Limited, a subsidiary of India's JSW Group, and Macquarie Group Limited , one of the largest foreign infrastructure investors in the country, have been shortlisted to submit binding bids to buy renewable energy platform O2 Power Private Limited, in a deal that is likely to peg its equity value at USD 1 bn and enterprise value at USD 2.3 bn. Talks are also on with New York-based alternative investment firm Stonepeak to take it to the next stage of the sale process for submitting a binding offer in a deal that will rank among the largest green energy transactions in the country. I Squared Capital, JSW Group's JSW Neo Energy, and Macquarie Group have been informed that they have been shortlisted from among the bidders that submitted NBOs (non-binding offers).
These selected bidders will be given full data room access, after which the binding bids will be submitted. The process has seen a lot of interest, with 13 prospective buyers that had signed non-disclosure agreements (NDA) for the sale of O2 Power. EQT and Temasek hold 51% and 49%, respectively, in O2 Power, and have invested USD 500 Mn in the company founded in 2019 by former ReNew Power executives. O2 Power is targeting a portfolio of around 5 GW and has already created a 4-GW portfolio.
REC RAISES USDÂ 500 MN VIA GREEN BOND TO SUPPORT RENEWABLE ENERGY PROJECTS
REC Limited has raised USD 500 Mn through green dollar bonds for numerous renewable energy projects. This was part of a USD 10 bn global medium-term program of the company. The 5-year note has a coupon rate of 4.75 percent per annum to be paid semi-annually. It has a maturity date of September 27, 2029. In 2024, this is the first US dollar bond issuance by an Indian public sector enterprise.
Keeping in line with REC’s Green Finance Framework, the funds raised will be utilised to finance eligible green projects, as per green bond principles of Climate Bond Initiative, London and RBI’s ECB guidelines. The joint bookrunners for the issue were Barclays, DBS, HSBC, Mizuho, MUFG, and Standard Chartered Bank. REC’s loan book is currently USD 63 Bn with a USD 8.6 Bn net worth as on June 30, 2024.
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NGEL AND MAHAPREIT TO DEVELOP 10 GW RENEWABLE ENERGY PROJECTS IN MAHARASHTRA
NTPC Green Energy Limited (NGEL) has entered into a Joint Venture Agreement (JVA) with Mahatma Phule Renewable Energy and Infrastructure Technology Limited (MAHAPREIT). The JV company will be responsible for development of 10 GW of Renewable Energy Parks and Projects in Maharashtra or in various other states of India. NGEL is a wholly-owned subsidiary of NTPC.
In Q3 2024, NGEL and Rajasthan Rajya Vidyut Utpadan Nigam Limited formed a joint venture to fulfil the green hydrogen and renewable energy objectives of NTPC. The JV is expected to develop renewable energy projects of 25 GW and green hydrogen developments and its derivatives of 1 Mn metric tonne per annum (MMTPA) in Rajasthan.
List of Key Transactions - Q3 2024

Source: YOG INFRA analysis
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