India x Cleantech — December 2019

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Originally published on Future Trends

Welcome to another issue of our new India x Cleantech series! On a monthly basis, we are pulling news from across clean technology sectors in India into a single, concise summary article about the country.

Climate Policy & Carbon Tax

India Needs To Increase Forest Expansion To Meet Climate Targets

In order to meet targets pledged as part of the Paris Agreement, India needs to increase forecast expansion, a US-based non-profit organization has claimed in a report. Universal Ecological Fund analyzed 184 voluntary pledges made by countries under the Paris Agreement and found that 75% percent of the pledges are inadequate to reduce greenhouse gas emissions. India’s forest cover is around 24% and the country has made repeated commitment to increase it to 33%. According to a number of studies, India is expected to over-achieve on its carbon intensity target. Universal Ecological Fund, however, expects India’s greenhouse gas emissions to increase.

Cleantech Investments

US OPIC Invests $350 Million In Indian Renewable Energy Projects

Overseas Private Investment Corporation, a US government agency, recently invested $350 million to fund the development of 6 solar and wind energy projects in India. The agency has been an active investor in India’s renewable energy market for the last several years.

Masdar Invests $150 Million In Renewable Energy IPP Hero Future Energies

Masdar, the renewable energy arm of Mubadala Investment Company, has invested $150 million in a leading renewable energy producer in India — Hero Future Energies. India’s renewable energy market was abuzz with this investment deal for several months. Funds raised from the deal are expected to be used for future project development and geographical expansion of the company. The International Finance Corporation, already a shareholder in the company, is expected to pump in an additional $125 million soon. The company has operational assets of 1.3 gigawatts with an additional 1.5 gigawatts under construction or planning.

Canadian Pension Funds Invests $75 Million In Azure Power

India-based solar IPP Azure Power has secured yet another around of funding from its largest investor, Caisse de dépôt et placement du Québec (CDPQ). The pension fund now owns nearly a 50% stake in the company, having made a total investment of $320 million. Azure Power has a portfolio of 3 gigawatts in India. Apart from CDPQ, the International Finance Corporation, French and German development banks are investors in NYSE-listed Azure Power.

Canadian Investors Plan Big Investments In Indian Renewable Energy Companies

Asset management company Brookfield is reportedly planning to inject $800 million in ReNew Power Limited, India’s largest renewable energy developer. Goldman Sachs currently holds a 48% stake in ReNew Power and is expected to sell some of its share to Brookfield through this transaction. Abu Dhabi Investment Authority, JERA, Asian Development Bank, Canada Pension Plan Investment Board, and Global Environment Fund are the other minority stakeholders in ReNew Power.

Electric Transport

Over A Quarter Million EVs In India Have Received Subsidies

According to the Ministry of Heavy Industries and Public Enterprises, around 285,000 electric vehicles have so far been issued a total of $50 million in subsidies. These vehicles have helped offset close to 140,000 tonnes of carbon dioxide emissions, saving over 55 million liters of fuel to date.

Germany Plans €1 Billion Investment In Electric Mobility In India

Germany is expected to invest €1 billion over the next five years to boost electric mobility in India. The announcement was made during the recent visit of Angela Merkel to India. According to Indian government officials, the funds shall be used to replace diesel-powered buses with electric buses. The first target state for this transformation is expected to be Tamil Nadu, which is expected to receive €200 million. The funds shall also be used to set up EV charging stations.

Suzuki Plans Electric Scooter Trials In India Next Year

Japanese automaker Suzuki is expected to launch electric scooters in India on a pilot basis next year. The pilot would be aimed at gauging the infrastructure readiness for electric scooters. Currently, lack of EV charging stations is one of the leading basic infrastructure challenges faced by the Indian EV market. Suzuki’s four-wheeler venture in India — Maruti — has also delayed the launch of electric cars, citing the same reason.

Last-mile Electric Bike Start-up Lands $8 Million Funding

Electric bike-sharing start-up Yulu has secured $8 million in funding from Bajaj Auto, one of India’s leading two-wheeler manufacturers. Bajaj Auto, operating in India for over 70 years, will design and manufacture new bikes for Yulu. In order to boost last-mile connectivity Yulu has secured permission to offer electric bikes at 250 subway stations in Delhi.

Tata Motors Bags Order For 500 Electric Sedans

One of India’s leading electric car manufacturers — Tata Motors — has landed an order for its upgraded compact electric sedan model. The company will supply 500 units of the electric Tigor to Urban Lithium, an electric car aggregator that services corporates. The Tigor offers 213 kilometers of range every charge with a top speed of 80 kilometers per hour. 

Renewable Energy & Batteries

Share Of Fossil Fuel Capacity Continues to Contract

The share of fossil fuel-based power generation capacity contracted for a 16th consecutive quarter during August-October 2019. The share of fossil fuels in India’s installed capacity is now less than 63%. This is despite the fact that fossil fuel-based capacity addition in Q3 2019 was nearly twice that of renewable energy. The last increase in its share, on quarterly basis, was recorded in Q4 2015.

Renewable Energy Sees Poor Capacity Addition Growth In Q3 2019

Year-on-year renewable energy capacity addition growth remained flat in Q3 2019. Total capacity addition remained virtually unchanged at 1.3 gigawatts, including 1 gigawatt of solar power and 0.2 gigawatts of wind energy capacity. Quarter-on-quarter renewable energy capacity addition fared even more poorly. Total renewable energy capacity addition fell nearly 41%, solar power fell 29%, and wind energy declined 71%. In the last 18 quarters wind energy has seen 1 gigawatt-plus capacity addition only in 3 quarters.

India To Achieve 200 Gigawatts Of Renewable Energy Capacity By 2022

India already has an installed renewable energy capacity of 83 gigawatts with an additional 45 gigawatts operational in the hydro power sector. This takes the total to 128 gigawatts. A total of 31 gigawatts of capacity is being executed while another 35 gigawatts of capacity is to be auctioned. Taking into account the 13 gigawatts of hydro power capacity under construction, the government expressed confidence that the renewable energy capacity by December 2022 would cross 200 gigawatts. 

India’s ReNew Power Hits 5 Gigawatts Of Renewable Energy Capacity

ReNew Power Limited reported that it achieved 5 gigawatts of operational renewable energy capacity in India. The company has 3.1 gigawatts of wind energy and 1.9 gigawatts of solar power capacity operational across multiple states in the country. According to media reports, only 10 companies globally have been able to achieve this feat so far. The company achieved this milestone when it commissioned a 250 megawatt solar power project in the western state of Rajasthan.

Power Ledger Brings P2P Blockchain Solar Power Trading To India

Delhi-based power distribution utility BSES Rajdhani Power Limited (BRPL) recently announced that it has partnered with Power Ledger to run a pilot project in a New Delhi suburb to enable peer-to-peer solar power trading. The project will be implemented in closed gated communities with rooftop solar power systems installed. The pilot project will cover a capacity of 5-6 megawatts of solar power.

Indian Railways Targets 500 Megawatt Rooftop Solar Capacity By 2022

The Indian government announced that Indian Railways, country’s largest power consumer, has installed 96 megawatts of rooftop solar power capacity atop buildings and stations. An additional capacity of nearly 250 megawatts is under development. The installation is part of its goal to have 500 megawatts of rooftop solar capacity operational by 2022. In 2017, the government announced plans to install rooftop solar projects at around 7,000 railway stations across the country.

Solar Manufacturing Tender Finally Gets Response From Developers

After a delay of several months and amendments to the initial solar power project development and manufacturing tender, the Solar Energy Corporation of India finally received a healthy response from some of the leading developers. Adani Green Energy submitted a bid to set up 4 gigawatts of power projects and 1 gigawatt of manufacturing capacity. Azure Power submitted a bid for 2 gigawatts of power generation and 500 megawatts of manufacturing capacity.

Financing

AIIB Likely To Invest $100 Million Per Year In Indian Renewable Energy Sector

The Asian Infrastructure Investment Bank (AIIB) is expected to invest $100 million every year in Indian solar and wind energy projects. The first investment from the bank is expected in December 2019. AIIB Director General conceded that the bank has so far stayed away from investing in renewable energy projects in India even though its total investment stands at nearly $3 billion.