Latest Renewable Energy News & Updates: 10

Billions at Risk: 45 GW Renewable Energy Projects Face Major Setbacks!

Extent of Delays: India’s renewable energy projects face delays of up to 12 months in signing Power Purchase Agreements (PPAs), impacting 40-45 GW of projects out of an 80-90 GW pipeline.

Key Challenges:

• Regulatory uncertainties.
• Financial difficulties faced by DISCOMs.
• Mismatches between state and central policies.
• Grid infrastructure constraints and tariff disputes.

Impact on Execution:

• PPAs are crucial as execution timelines begin only after their signing.
• Delays result in cost overruns, increased risks, and lowered investor confidence.

Trends Over the Years:

• 2022: 6-12 months delay; 9.5 GW PPAs signed out of 15 GW planned.
• 2023: 8-10 months delay; 12 GW PPAs signed out of 18 GW planned.
• 2024: Expected 4-8 months delay.

Expert Opinions:

Discoms are focusing on projects with higher capacity utilization.

A timely signing of PPAs is essential to avoid execution lags and support the growth of renewable energy.

While bidding activity remains robust, addressing these challenges is vital to achieving seamless project execution and meeting India’s renewable energy targets.

-The Economic Times

No more duty-free import of solar power items: CBIC

Government Decision: Duty-free import of solar power goods under the MOOWR scheme is discontinued from December 17, 2024.

Customs Duty: Solar modules will now attract a 40% duty, and solar cells a 25% duty.

Impact on Businesses:

• Companies can no longer store imported goods in bonded warehouses without paying duties.
• Increased costs and cash flow disruptions for solar power projects.
• Profitability may be affected for projects with fixed tariffs under Power Purchase Agreements (PPAs).

Reason for Change: The move aims to boost local solar manufacturing and reduce reliance on imports.

Industry Reaction:

• Experts warn of higher project expenses.
• Some see it as a step toward strengthening domestic solar manufacturing capabilities.

-Mint

Govt May Mandate 10% Battery Storage For New Renewable Energy Projects

Proposed Mandate: The Ministry of New and Renewable Energy (MNRE) is considering a 10% battery storage requirement for new solar and wind projects to ensure round-the-clock power supply and address intermittency issues.

Gradual Scale-Up: The mandate may start at 10% and increase to 30-40% as battery prices decline.

Need for Storage: Battery storage helps stabilize grid operations and maximizes transmission infrastructure use by storing energy for non-generation periods.

Incentives:

• The government has approved ?3,760 crore in viability gap funding (VGF) for battery energy storage systems (BESS).
• Projects totaling 4,000 megawatt-hours (MWh) will receive up to 40% financial support by FY31.

Impact on Renewable Energy: This initiative will enhance the reliability of solar and wind power, supporting India’s goal of 500 GW of renewable energy capacity.

Competitive Pricing: Recent renewable tenders combining solar, wind, and battery storage show rates comparable to coal-based power, boosting adoption prospects.

This step is poised to transform India’s renewable energy landscape by integrating efficient storage systems into the grid.

-The Economic Times

NTPC Powers Up Gujarat: 30 MW Solar Supply Goes Live From Massive 150 MW Project!

Project Overview: NTPC Renewable Energy, a subsidiary of NTPC Green Energy, has started commercial electricity supply of 30 MW from its 150 MW solar project in Mesanka, Gujarat.

Timeline:

• Second Phase: 30 MW operational from December 11, 2024.
• First Phase: 60 MW operational since July 29, 2024.

Future Plans: The project’s total capacity of 150 MW is being gradually brought online.

This marks another step in NTPC’s efforts to expand renewable energy production in India.

-The Economic Times