Infrastructure & PPPs in India - Q4 2021 Update - Power & Energy Transition
INDIA has announced and is implementing a number of energy transition projects in areas of EVs, new renewables (floating solar), green hydrogen and battery storage projects. The country has also strengthen its electricity transmission grid infrastructure with help of private sector participation, so as to support the integration of renewable energy in the overall power mix.
Read more about key developments in Infrastructure and PPPs in Q4/2021 in India in power & energy transition sector our latest insight.
This is second publication on a 2-part insight series on India.
STERLITE WINS USD 42M INDIA ELECTRICITY TRANSMISSION PROJECT
India's Sterlite Power has won the right to build and operate an inter-state transmission project in the country's northeast region. The line will run from Bongaigaon city in the state of Assam to Nangalbibra in Meghalaya, across the Brahmaputra River. It will cost an estimated INR 3.2Bn (USD 42Mn).
The development will include a 220/132 kV substation at Nangalbibra, about 130 km of 400kV D/c transmission lines and a 20km, 132kV D/c line connecting Hatsinghmari town in Assam to Ampati in Meghalaya. Sterlite has previously developed an inter-state transmission network - NER-II - that spans the north-eastern states of Assam, Arunachal Pradesh, and Tripura. It will use that experience to implement the river-crossing solutions to build the lines across the Brahmaputra River.
Mumbai-headquartered Sterlite owns a portfolio of 26 projects across 13,700 circuit kilometers in India and Brazil, including the latest win. The company is currently focusing on integrating renewable energy sources to the grid in India.
ADANI TRANSMISSION SECURES USD 700MN PROJECT FINANCE
Indian conglomerate Adani Group’s power transmission unit has raised USD 700Mn for its under-construction portfolio. Adani Transmission (ATL) has signed definitive agreements with eight international banks to fully finance its four transmission projects in the states of Gujarat and Maharashtra to establish a green corridor.
The capex revolving structure provides a funding of USD 1.1Bn on a fully drawn basis. The lenders are DBS Bank, Intesa Sanpaolo, Mizuho Bank, MUFG Bank, Siemens Bank, Société Générale, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation.
SECI ANNOUNCES TENDER FOR 1.2 GW OF ISTS-CONNECTED WIND PROJECTS
The Solar Energy Corporation of India (SECI) has announced a tender to set up 1.2 GW interstate transmission system (ISTS)-connected wind power projects (Tranche-XII) in the country. Bidders will not have to furnish any earnest money deposit for this tender.
The scope of work includes identifying land, installation, and ownership of the project, obtaining connectivity, long-term access, and necessary approval and interconnection with the ISTS network to supply power to SECI.
BIDS INVITED FOR 1,200 EVS AND CHARGING STATIONS IN KERALA
The Kerala State Electricity Board (KSEB) has invited expressions of interest (EoIs) for the supply of 1200 electric vehicles (EVs), along with setting up charging stations for commercial operation in the state.
Part-I includes supply of 200 brand new electric cars for the transportation of KSEB officials. The electric car should have both AC and heating facilities with advanced safety features. After completing all the registration formalities, the electric cars must be delivered to the location prescribed by KSEB within 45 days from the date of supply order. In the first phase, 100 electric cars will be required.
Part-II includes 1,000 special-purpose EVs. KSEB is using jeeps in the field offices for transportation of men and materials to the sites. These will be replaced with EVs. The supply of EVs should be completed within three years from the date of the agreement.
RAILWAYS TENDERS GRID-CONNECTED AND ROOFTOP SOLAR PROJECTS
The Ministry of Railways (MoR) has issued two tenders inviting bids to set up a 1,160 kW grid-connected solar project for Konkan Railways and rooftop solar installations on seven railway stations in the Bangalore Division of South Western Railway.
Konkan Railway Tender
The scope of work for the Konkan Railway tender includes supply, installation, testing, commissioning of an on-grid solar power plant of roughly 1,160 kWp capacity. The project will generate and supply solar energy to railway installations through public-private partnership (PPP) on a design, build, finance, operate, and transfer (DBFOT) basis for 25 years.
The solar project will power office buildings, railway stations, and other establishments on the Konkan Railway route in Maharashtra, Goa, and Karnataka. The project must be completed within 300 months from the date of issue of the letter of award (LoA).
Bangalore Division of South Western Railway
The Bangalore Division of South Western Railway has invited bids to install rooftop solar projects in the range of 10 kW and 17 kW on railway stations.
The project must be completed within four months from the date of issuing the LoA.
INDIAN SMART METERING COMPANY WINS USD 76MN ASSAM PROJECT
Indian smart metering company IntelliSmart Infrastructure has won a project to install and operate 600,000 smart meters in the state of Assam. IntelliSmart, a joint venture between the state-backed National Investment & Infrastructure Fund (NIIF) and Energy Efficiency Services Ltd (EESL), will procure the smart meters for the project.
The project is estimated to cost INR 5.6Bn (USD 76Mn) and be financed through 70% debt and the remaining as equity. IntelliSmart is in the process of arranging the debt for the project. IntelliSmart will implement the project on the design-build-finance-own-operate-transfer (DBFOOT) arrangement and maintain the advanced metering infrastructure system for a period of 9 years.
The smart metering project aims to bring transparency in the meter reading and billing process in Assam, The project will allow consumers to monitor electricity usage and expenses on their smartphones.
INDIA TO PRIVATISE POWER DISTRIBUTION IN TWO UNION TERRITORIES
The Indian cabinet approved the privatisation of the electricity distribution companies in the union territories of Dadra & Nagar Haveli, and Daman & Diu.
A special purpose vehicle - NH-DD Power Distribution Corporation - will be incorporated and its shares sold to the highest bidder. The privatisation will lead to an increase in competition, strengthen India's power sector and lead to a recovery of dues. Unlike states, India's union territories are federal territories governed by the central administration.
India released draft bidding guidelines for privatising distribution utilities and proposed majority stake sales. It offered assets wiped clean of losses and unsustainable debt. The country aimed to complete the privatisations in the union territories by January 2021 but some areas like Chandigarh have been stuck in legal proceedings. The federal government has not set a new target.
VECTOR TO PARTNER EVERGREEN FOR INDIA WIND POWER PROJECTS.
Vector Green Energy and Evergreen Power will develop around 300 MW of wind power projects in India. As part of the agreement, Vector will take over and construct a portfolio of 250 MW which was awarded to US-based Evergreen by the Solar Energy Corporation of India.
Both companies have also decided to expand the partnership beyond 300 MW. Vector, which is owned by Global Infrastructure Partners India, has an operational capacity of 650 MW. Of this, 23 MW is wind power. It is also developing 90 MWp of solar projects in Gujarat state.
Illinois-headquartered renewables company Evergreen has a project footprint across the US and India. It is involved in developing, constructing, and managing wind, solar, hybrid and battery storage projects.
INDIAN OIL FLOATS TENDER TO DEVELOP GREEN HYDROGEN GENERATION PROJECTS
Indian Oil Corporation Limited (IOCL) has issued a global tender to develop green hydrogen generation facilities on a build, own, operate (BOO) basis at its refineries in Mathura, Uttar Pradesh, and Panipat, Haryana. The successful bidders will need to develop a green hydrogen generation facility with a 5,000 MT annual capacity for its refinery in Mathura and a 2,000 MT annual capacity for its refinery in Panipat.
The scope of work includes design, engineering, procurement, construction, commissioning, and performance guarantee trial runs of green hydrogen generation units. The successful bidders must commission projects within 28 months from the letter of award (LOA) and provide comprehensive operation and maintenance services for 16 to 24 years.
SECI INVITES BIDS FOR AN 8 MW WASTE-TO-ENERGY PROJECT IN UTTAR PRADESH
The Solar Energy Corporation of India (SECI) has invited bids to set up an 8 MW grid-connected waste-to-energy project in Kanpur, Uttar Pradesh.
The scope of work includes securing connectivity, approvals, installation, and interconnection of the project with the grid network to supply power to SECI. The successful bidder should also make storage arrangements for refuse-derived fuel (RDF) supplied by the Department of Urban Development or Urban Local Body for 45 days of plant operation. The successful bidder must commission the project within 18 months from the date of PPA.
TAMIL NADU DISCOM TO PROCURE 500 MW OF SOLAR POWER UNDER KUSUM PROGRAM
The Tamil Nadu Electricity Regulatory Commission (TNERC) has approved the Tamil Nadu Generation and Distribution Corporation’s (TANGEDCO) proposal to procure 500 MW of solar power from projects with capacity in the range of 1 MW to 2 MW under Component A of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program. The ceiling tariff has been set at INR3 (USD 0.040)/kWh.
The Commission approved the deviations sought by TANGEDCO in the draft tender document and the draft power purchase agreement (PPA).
NTPC FLOATS O&M TENDER FOR 260 MW OF SOLAR PROJECTS IN RAJASTHAN
NTPC Limited has invited bids for the comprehensive operations and maintenance (O&M) of its 260 MW solar project at the Bhadla Solar Park in Rajasthan for three years. The bidder should have executed a contract for O&M of at least one grid-connected solar power project of 150 MW or above capacity for at least one year during the last seven years as on the bid opening date.
BIDS INVITED FOR 18 MW OF SOLAR PROJECTS IN PUNJAB AND HIMACHAL PRADESH
The Punjab Energy Development Agency (PEDA) has invited bids for a cumulative capacity of 18 MW of grid-connected solar power projects at four locations of the Bhakra Beas Management Board (BBMB) on a build, own, and operate basis.
The successful bidder will be responsible for supplying power to the BBMB as per the terms and conditions of the power purchase agreement (PPA). The solar projects are to be commissioned within 13 months from the date of the signing of the PPA.
SECI AWARDED 1785 MW SOLAR PV TO SIX (6) DEVELOPERS
Solar energy corporation of India (SECI) has awarded 1785 MW grid connected solar PV in Rajasthan to 6 different developers. The commissioning timeline of the project is up to 18 months. The details of the developer are as follows:
INDIA CLEARS 23 INTER-STATE POWER TRANSMISSION PROJECTS
The Indian government has approved 23 new inter-state transmission system projects estimated to cost INR 158.93Bn (USD 2.11Bn). Of the 23 projects, 13 will be developed under a tariff-based competitive bidding system and the remainder under a regulated tariff mechanism.
The projects will require an evacuation system for 14 GW of renewable power in the state of Rajasthan, 4.5 GW in Gujarat, and 1 GW of solar power from the Neemuch asset in the state of Madhya Pradesh, among others.
INDIA’S TATA POWER WINS 300 MW RENEWABLES PROJECT
India’s Tata Power has won the right to develop a 300 MW hybrid wind and solar power project for the state of Maharashtra. Maharashtra State Electricity Distribution Company awarded the project to TP Saurya, a wholly owned subsidiary of Tata Power. The project will be commissioned within 18 months from the date of execution of a power purchase agreement.
The total renewable energy capacity of Tata Power, an arm of the diversified conglomerate Tata Group, is now 4.9 GW. This includes 2.95 GW in installed capacity and 1.95 GW under implementation.
INDIA’S AZURE POWER SIGNS 2.3 GW PPA WITH SECI
Indian renewables developer Azure Power has agreed to sell 2.3 GW of electricity to state-run Solar Energy Corporation of India (SECI). The power purchase agreement (PPA) is part of a manufacturing-linked solar tender of 4 GW. Projects developed under this PPA will supply power for 25 years at a fixed tariff of INR 2.42 (USD 0.33) per KW and will be constructed in the state of Rajasthan. They will be commissioned in phases, from November 2024 onwards.
The company has also signed a 25-year agreement to supply 200 MW of power to Maharashtra State Electricity Distribution from its second wind–solar hybrid project. The power will be sold at a fixed tariff of INR 2.62 per KW. The agreement entails setting up of 133 MW solar and 67 MW wind capacity within 18 months from the signing of the PPA.
ADANI GREEN ENERGY SIGNS 4.7 GW PPA
India’s Adani Green Energy has signed an agreement with state-run Solar Energy Corporation of India (SECI) to supply 4.7 GW of renewable power.
The power purchase agreement (PPA) is part of a manufacturing-linked solar tender of 8 GW awarded to the clean energy arm of diversified Indian business conglomerate Adani Group by SECI in June 2020. This is the world’s largest green PPA.
Adani Green has signed PPAs with SECI for a total generation capacity of close to 6 GW of the 8 GW awarded. It expects to close agreements for the remaining 2 GW in the next two to three months.
INDIA'S L&T AND RENEW POWER PARTNER FOR GREEN HYDROGEN
Indian engineering conglomerate Larsen & Toubro (L&T) and renewables major ReNew Power have agreed to set up a venture for green hydrogen. L&T and ReNew will jointly develop, own, execute and operate such projects in India.
New York-listed ReNew, had a total capacity of about 10.3 GW across India, including both operational and under-development projects.
The demand for green hydrogen in the country is expected to be about 2 million metric tonnes by 2030, requiring an investment of more than USD 60Bn.
INDIA'S TATA SOLAR WINS 120 MWh BATTERY STORAGE PROJECT
India's Tata Power Solar Systems has won an order to build a 100 MW solar project in the engineering, procurement and construction (EPC) method along with a 120 MWh utility-scale battery energy storage system in Chhattisgarh state.
Awarded by Solar Energy Corporation of India, the total contract value is INR 9.45Bn (USD 126Mn). The scope of work includes engineering, design, supply, construction, erection, testing, operations and maintenance, and commissioning.
The development will be completed within 18 months. Tata Power Solar's utility-scale EPC order book is about 4.4 GW with an approximate value of INR 90Bn.
List of key transactions - Power & Renewable Energy - India
List of Upcoming Projects - Power & Renewable Energy - India
Source: Inframation, YOG INFRA analysis
ABOUT YOG INFRA
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.
For more information about us, our service offerings and team, please visit www.yoginfra.com Contact us at email@example.com ©2021 YOG INFRA. All rights reserved. #infrastructure #update #PPP