The Southern Railway has invited bids for the installation of 1.2 MW rooftop solar projects at various locations in Perambur, Chennai, under the renewable energy service company (RESCO) model.

The bids open on May 7, 2024, and the last date to submit bids is May 21, 2024.

The project, with an estimated value of ₹169.8 million (~$2 million), is part of the Indian Railways’ efforts to leverage renewable energy sources to power its operations. The successful bidder will be responsible for the design, engineering, procurement, construction, installation, testing, and commissioning of the rooftop solar PV system and its operation.

The cost of the tender document is ₹34,810 (~$416), and the required earnest money deposit is ₹1.28 million (~$15,300).

Bidders must have an average annual turnover of at least ₹15 million (~$179,000) during the last three financial years and a positive net worth in all those years. Additionally, they must have installed either a minimum of 200 kWp of grid-connected rooftop solar systems or 1,000 kWp of any grid-connected systems.

Joint venture firms are allowed to bid for the project, and the ranking of the bids will be from lowest to highest based on the tariff rate quoted by the bidders. Tariff rates should be exclusive of taxes and levies such as self-generation tax, network charges, and any taxes in the future. These taxes and levies will be borne by the Railways.

The successful bidder will be required to complete the project within 240 days from the contract’s award date.

Recently, South Eastern Railway invited bids to empanel agencies for setting up 8.383 MW of grid-connected rooftop solar power projects in Odisha, Jharkhand, and West Bengal through public-private partnerships on a design, build, finance, operate, and transfer basis.

Earlier, the Asansol Division of Eastern Railway in West Bengal invited bids from solar developers to install 1 MW grid-connected rooftop solar projects on a design, build, finance, operate, and transfer basis.

Subscribe to Mercom’s India Solar Tender Tracker to stay on top of tender activity in real time.

Nova Clean Energy has acquired HyFuels, a 1 GW portfolio of mid-to-late-stage wind and solar development projects as well as an earlier stage green ammonia project located on the Texas Gulf Coast. 

HyFuels, spread over approximately 25,000 acres, has its power supply split evenly between wind and solar. The first phase of the project is expected to reach Full Notice to Proceed next year and commercial operations in 2026.  

Nova has entered into a long-term development services agreement with BNB Renewable Energy, from whom Nova acquired HyFuels. 

“The Texas grid is going to continue to need a variety of power sources to serve its fast-growing demand,” says Ben Pratt, president of Nova. “Wind paired with solar provides a generation profile that industrial as well as utility customers increasingly want to see. We are excited to work with BNB on this important portfolio.” 

The post Nova Acquires 1 GW Solar, Wind Development Asset Portfolio from BNB appeared first on Solar Industry.

Sol Systems and SOLARCYCLE have formed a partnership with the aim of ensuring Sol Systems’ energy projects are sustainable throughout a solar panel’s lifecycle by addressing the challenge of recycling and reusing retired panels.

SOLARCYCLE technology extracts materials such as silver, silicon, copper, aluminum and glass, allowing the company to divert materials from landfills and enables the recovery of what it says is up to 95% of the value of recycled panels. Extracted materials are then refined and reintroduced into the domestic supply chain.

The collaboration has executed work orders on two projects. Earlier this year, the company says it partnered with SOLARCYCLE to recycle panels from a community solar array in Scottsbluff, Neb., following weather damage.

“What SOLARCYCLE can do is groundbreaking, and it aligns with Sol Systems’ dedication to sustainability and innovation, especially as solar installations rapidly increase and the need for better end-of-life solutions for solar panels becomes more urgent,” says Sol Systems’ Eugene Rhee.

The post Sol Systems, SOLARCYCLE Partner on PV Panel Recycling appeared first on Solar Industry.

Husk Power Systems, a decentralized solar-hybrid mini-grids provider, has secured a $4 million investment in debt financing from Electrifi. This impact investment facility will enable the company to accelerate its efforts to provide clean energy access in rural India.

The latest funding adds to ElectriFi’s $6 million investment in September 2022, which allowed Husk to implement solar microgrids that electrified 80 communities.

Husk, which builds and operates low-cost hybrid power plants and distribution networks, has delivered reliable, clean electricity to remote communities, households, and micro, small, and medium-sized enterprises not connected to the grid in India and Africa.

“In total, the $10 million from EDFI MC is an important enabler for Husk to scale its mini-grid footprint in India and achieve an even greater impact on tens of thousands of lives and livelihoods,” said Manoj Sinha, Co-Founder and CEO of Husk.

In the past, ElectriFi, managed by EDFI Management Company and funded by the European Union, has supported Husk’s efforts to achieve its impact and operational targets. This further enabled Husk to attract significant interest from other investors, translating to the company raising $43 million in Series D funding.

The company acts as a catalyst for facilitating further private capital funding for high-impact businesses, such as Husk’s.

“Our initial investment not only provided Husk with essential capital but also served as a strong validation of their business model, attracting further significant investment. This is a prime example of how ElectriFI fosters innovation and unlocks commercial financing for clean energy solutions in emerging markets,” said Rodrigo Madrazo, CEO of EDFI Management Company.

Last January, Husk also secured $750,000 in debt financing from Deutsche Investitions- und Entwicklungsgesellschaft to support its expansion of microgrids in North and East India.

Advances in grid technologies offer promising solutions to augment the existing transmission infrastructure swiftly and cost-effectively. One such solution highlighted by a recent report by the non-profit organization GridLab is the technology of reconductoring with advanced conductors within existing corridors.

Reconductoring involves replacing existing conductors with advanced counterparts in the same rights-of-way (ROW), enhancing the current grid’s transmission capacity.

The report states that reconductoring offers the most feasible path to up to double transmission capacity along existing transmission corridors. This approach allows for the efficient utilization of clean energy resources while new transmission lines are developed to meet long-term system needs.

By leveraging advanced conductors, reconductoring projects can double the power transfer capacity within existing ROWs, particularly benefiting shorter transmission lines (<50 miles) limited by thermal constraints.

In a report last year, the International Energy Agency said that the world must add or replace 80 million kilometers of electricity grids by 2040, equal to all grids globally today, to meet national climate targets and support energy security.

The reconductoring technology solution could be helpful in countries like India, where renewable energy generation is surging, resulting in an unprecedented demand for evacuation infrastructure to connect to the grid.

Need for Reconductoring

The landscape of energy production and consumption is rapidly evolving, driven by the twin forces of plummeting costs in clean energy technologies and the increasing demand for electricity across various sectors.

To achieve ambitious clean energy goals, such as the aim of 100% clean electricity in the U.S. by 2035, the focus has shifted to generating renewable energy and addressing the critical constraint of grid capacity.

While the deployment of renewable energy sources has seen growth, transmission capacity has struggled to keep pace, growing at a mere 1% per year over the past decade. This imbalance has led to over 2 TW of untapped generation and storage resources awaiting grid access.

Moreover, escalating electricity demand, coupled with the escalating frequency and severity of extreme weather events, is placing unprecedented strain on the grid.

To alleviate this pressure and ensure the realization of decarbonization goals, immediate action to enhance transmission capacity is imperative.

Recent policy initiatives have outlined long-term strategies for expanding transmission capacity, yet implementing these measures will take time, leaving critical gaps in the interim.

Economic Advantages of Reconductoring

The economic advantages of reconductoring with advanced conductors are substantial. Compared to the construction of new transmission lines, reconductoring projects typically cost less than half while providing similar capacity increases across all voltage levels.

These cost savings are further amplified when considering the speed of implementation and the avoidance of new ROW acquisition and construction costs.

The impact of reconductoring extends beyond immediate gains in transmission capacity. By enabling nearly four times the interzonal transmission capacity expansion by 2035 compared to new-build alone, reconductoring facilitates the transition toward widespread decarbonization and electrification.

This approach not only meets near-term transmission needs but is also expected to buy time for developing new lines to address long-term requirements.

A simultaneous strategy of reconductoring with advanced conductors and addressing barriers to new greenfield transmission presents the most significant cost savings, totaling over $400 billion by 2050 compared to the business-as-usual scenario.

By unlocking access to clean energy in more locations and distributing transmission capacity across multiple corridors, reconductoring contributes to lower wholesale electricity costs and substantial system-wide savings.

However, realizing reconductoring’s technical potential hinges on overcoming various barriers, including technical integration considerations and policy and regulatory challenges.

Addressing these obstacles is essential to harnessing the full benefits of reconductoring with advanced conductors and accelerating the transition toward a cleaner, more resilient grid.

Ahead of the seven-phase elections to the Lok Sabha, India’s lower house of Parliament, starting April 17, 2024, the two major political parties in the fray have committed themselves to implementing a plethora of energy transition initiatives. In their manifestos, the ruling Bharatiya Janata Party (BJP) and the Opposition Indian National Congress have outlined their vision for adopting renewable energy to achieve energy independence. The manifesto of the BJP, which has been governing India since 2014 and is seeking a third consecutive term, has detailed programs it plans to undertake on the renewable energy front.

Solar engineering, procurement, and construction company Mahindra Susten, in collaboration with the Ontario Teachers’ Pension Plan Board, said it will develop a 150 MW hybrid renewable power project involving an investment of ₹12 billion (~$143.8 million). The project will comprise ~101 MW of wind and ~52 MW of solar capacity, the company said in a bourse filing. Scheduled for commissioning within the next two years, it will incorporate over 80% locally manufactured components. Upon completion, the project will supply clean energy to commercial and industrial customers in Maharashtra, generating around 460 million kWh of energy and offsetting nearly 420,000 tons of CO2 emissions.

Nearly 12,000 power projects, an overwhelming majority based on renewable sources, representing a combined capacity of 1,570 GW and 1,030 GW for storage, are in interconnection queues in the U.S. Renewable sources constitute 95% of the total capacity in the active queue. Over 94% or about 1,480 GW of the proposed generation capacity is zero-carbon, according to a recent Berkeley Lab report. Utilities and regional grid operators mandate that projects wishing to link to the grid must undergo a sequence of assessments before construction. This procedure determines the potential necessity for new grid system enhancements before a project can integrate into the system, estimating and allocating the associated equipment costs.

As the deadline for the Inter-State Transmission System (ISTS) charges waiver approaches, additional substations are critical to ensure the smooth facilitation of renewable energy projects.

The government has extended the ISTS charges waiver deadline multiple times since 2019. The latest extension applies to solar, wind, renewable energy hybrid, pumped hydro storage, and battery energy storage systems commissioned by June 30, 2025. This waiver will remain in effect for 25 years.

The objective behind the waiver of ISTS charges was to encourage renewable capacity addition by reducing the cost of generation to achieve the country’s non-fossil fuel energy capacity of 500 GW by 2030. The Ministry of Power also broadened the waiver’s coverage to encompass hydropower projects, offshore wind, green hydrogen, and green ammonia projects.

According to a developer, “The Central Electricity Regulatory Commission has nine separate transmission zones with the resultant ISTS charges for renewables ranging from about ₹1 ($0.012)/kWh to ₹2.30 ($0.028)/kWh. So, without the ISTS charges waiver, some projects may become unfeasible.”

While the initiative and relief provided by the extension are commendable, the transmission infrastructure challenges, especially the shortage of substations, are a huge concern for projects under development. If the projects are delayed due to these constraints, the developers could miss out on the waiver, and the projects could end up being economically unviable.

The developers are looking for proactive measures by the government to address the infrastructure gap before it impacts the projects that are bid factoring ISTS charges waiver.

A renewable energy developer told Mercom, “For projects that are under development but are not commissioned by the 2025 deadline solely due to issues related to transmission or sub-station infrastructure, developers will have the option to invoke force majeure.”

However, some stakeholders have also pointed out that the risk of not commissioning the projects is far higher than not qualifying for the waiver of ISTS charges.

The Central Transmission Utility (CTU) regularly releases a list of available substations and those already engaged.

For the projects lined up for construction, the developers need to regularly check the available substations and purchase land closer to those substations to avoid challenges.

The developer added, “Despite approximately 40 GW of available transmission capacity, these resources are in states with relatively lower solar irradiation. Developers will have to consider the lower energy generation in these locations before participating in bids to avoid quoting unrealistic lower tariffs.”

According to another developer, “During the long-term access (LTA) regime, the power generators were to pay the ISTS charges. This led to a large majority of the renewable energy capacity being concentrated in regions like Rajasthan and Gujarat, causing huge grid congestion. Now, in the GNA regime, the ISTS charges are levied on the beneficiaries. For projects being developed under competitive bidding by implementing agencies, the charges will act as a deterrent for ISTS-connected projects. The government is implicitly ensuring renewable energy projects are developed through state-level bids, especially in states where the renewable energy uptake has been low and where there is no grid congestion, like in Bihar, Uttar Pradesh, Punjab, and Haryana, among others.”

Impact on green energy open access projects

For green energy open access projects, the waiver of ISTS charges results in lower project costs, translating to attractive tariffs for businesses procuring power from ISTS-connected green open access projects.

Subrahmanyam K V, Vice President of Business Development of Radiance Renewables, said, “As of February 2024, there is a demand for GNA connectivity by consumers totaling approximately 7 GW, out of a total project connectivity of 12.5 GW ”

He pointed out three pressing problems leading to the substation shortages. He said, “There exists a disparity between planned capacity and actual implementation on the ground. It’s imperative to strategically position substations near areas abundant in resources, facilitating the establishment of co-located solar and wind projects. Given India’s rich solar and wind resources, the emphasis should be on pursuing hybrid power projects wherever feasible. Co-located projects also offer reduced transmission charges compared to standalone ones. Furthermore, the absence of a standardized process for GNA regulations in each state for NOC requisition and scheduling underscores the need for inter-state collaboration to streamline procedures ”

Another leading developer emphasized that ISTS allows green power to be delivered through open access to states lacking favorable policies or availability of land.

For example, although Uttar Pradesh is known for the high demand for green energy by consumers, developers face challenges of unfavorable conditions compared to states like Maharashtra or Karnataka, which have suitable land, solar irradiation, and supporting policies.

In such scenarios, the exemption of ISTS charges proves beneficial for both consumers and developers, allowing access to green power at a reasonable cost. Without this exemption, consumers would be compelled to purchase green power at higher rates than those offered by DISCOMs, making green power procurement unfeasible.

With the tight timeline of June 2025 looming for setting up all transmission projects, an extension is crucial, as not all projects can be completed within this timeframe.

Currently, Karnataka, Maharashtra, Gujarat, Tamil Nadu, Rajasthan, and Uttar Pradesh continue to remain preferred states for ISTS projects.

Additionally, stakeholders have highlighted several challenges encountered during the execution of green open access projects. One notable issue is the involvement of numerous nodal agencies in the approval process, which creates obstacles in securing timely and seamless approvals.

Despite ISTS charges exemption for green energy open access projects notified by the central government, stakeholders have told Mercom they still must obtain approvals from both states involved, resulting in a cumbersome procedure.

Developers look forward to establishing a centralized “Open Access Cell” to streamline application processes and expedite approvals.

Extension of ISTS Waiver

Kannan Krishnan, Joint Managing Director of Jakson Green, calling for an extension of the waiver, said, “Extending the ISTS charges waiver for another three years will undoubtedly serve as a catalyst for exponential growth within the industry. However, it’s evident that further infrastructure development, particularly the establishment of additional substations, is essential for the seamless execution of ISTS projects”.

“We believe an extension beyond 2025 will facilitate a smoother transition and sustained growth trajectory for the renewable energy sector. This extension will provide the necessary time for infrastructure alignment and foster an environment conducive to industry expansion and innovation.”

In Subrahmanyam’s view, granting a minimum extension of one year would aid round the clock renewable energy in an effective way. Without such an extension, consumers are left exposed to an open risk of transmission charges which can upset the project economics.

Given the ambitious industrial net zero targets, stakeholders are advocating for an extension until 2030 to facilitate more installations to meet these targets, akin to the extension already granted for green hydrogen and ammonia projects.

Mercom earlier reported on how green energy open access developers want ISTS charges waived beyond June 2025