The Asian Development Bank (ADB) has approved a $250 million (~₹20.8 billion) policy-based loan to strengthen India’s power sector, supporting a speedy transition to renewable energy.

The Power Sector Reform Program (Subprogram 1), the first phase of a two-part initiative, aims to develop markets for power trade and ancillary services, including policy actions to accelerate solar and renewable energy deployment, encourage renewables in agriculture, and optimize power project dispatch for emission reduction.

The loan will enhance the financial performance, corporate governance, and service quality of electricity distribution companies (DISCOM), fostering a conducive environment for private sector investment. An incentive-based approach targeting parameters like losses, cost recovery, metering, and prompt payment of dues will elevate DISCOMs’ performance.

This program builds on ADB’s engagements in emerging areas, such as green hydrogen, that will be important to facilitate energy transition. ADB will allocate $1.5 million (~₹124.83 million) in financial grants from its Technical Assistance Special Fund and the Climate Change Fund for capacity development and policy reforms. The program has been collaboratively prepared with development partners, including Germany’s KfW.

ADB Principal Energy Specialist Len George said, “ADB has been working with the Government of India to help ramp up its transition to clean and renewable energy and facilitate policy actions to ensure a sustainable, inclusive, and climate-friendly power supply. This policy-based loan will help reduce barriers to scale up commercial financing for clean energy and contribute to India’s fulfillment of its climate change mitigation commitments.”

In May, ADB launched the ‘Innovative Finance Facility for Climate in Asia and the Pacific’ (IF-CAP), with an initial of $3 billion in guarantees, unlocking up to $15 billion in new loans for climate action. The program involves partner nations such as Denmark, Japan, South Korea, Sweden, the United Kingdom, and the United States and contributes to ADB’s $100 billion climate change combat goal for 2019–2030.

ADB’s recent proposals aim to boost rooftop solar systems in India, offering four models — utility facilitation, roof-leasing with utility investment, EPC-annuity payment basis, and utility as a Renewable Energy Service Company — to expedite deployment and enhance outcomes in India’s solar transition.

The Solar Energy Corporation of India’s (SECI) tenders to set up 450,000 metric tons (MT)/annum production facilities for green hydrogen and 1.5 GW of electrolyzer manufacturing capacities across India has received an overwhelming response from industry majors in the country, according to Mercom sources.

The tenders for green hydrogen and electrolyzer manufacturing were issued in July this year under the Ministry of New and Renewable Energy’s (MNRE) Tranche-I of the Strategic Interventions for Green Hydrogen Transition (SIGHT) program.

Major bidders for the green hydrogen projects include BHEL, Torrent Power, Hygenco, JSW Neo Energy, CESC Projects, ACME Cleantech Solutions, Sembcorp, Greenko Group, and GH4 India (a joint venture of Indian Oil Corporation, L&T and ReNew).

For the electrolyzer manufacturing capacity, the top bidders include NuTech, Green H2 Network India, Hygenco, Matrix Gas and Renewable (Gensol), C Doctor and Co., Larsen and Toubro Electrolyzers and Adani New Industries.

Under the Green Hydrogen tender, the selected bidder is expected to set up production facilities in thousand metric tons (TMT) scale for green hydrogen production and its derivates. Bidders can opt for either Bucket I – Technology Agnostic Pathways bucket or Bucket II – Biomass-based Pathways bucket. The total capacity under Bucket-I is 410,000 MT/annum of green hydrogen, and the total capacity under Bucket-II is 40,000 MT/annum.

The projects must be commissioned within 30 months of receiving the letter of award.

For the electrolyzer manufacturing tender, companies have submitted bids under two buckets – i) Electrolyzer manufacturing capacity based on any stack technology (1200 MW) and (ii) Electrolyzer manufacturing capacity based on indigenously developed stack technology (300 MW).

The selected bidder must set up the manufacturing facilities within 24 months of receiving the letter of award.

The guaranteed life of electrolyzers must be at least 60,000 hours.

Another large conglomerate is said to be seeking an extension to participate in the tender.

At a recent meeting with industry stakeholders, the Central Electricity Authority said it has begun planning to install transmission infrastructure to cater to the power demands of upcoming green hydrogen and green ammonia plants across seven coastal states and three inland states in consultation with the Central Transmission Utility.

In October this year, the MNRE unveiled a ₹4 billion (~$48.12 million) Research and Development Roadmap for the National Green Hydrogen Mission, seeking to develop an ecosystem that can help commercialize green hydrogen.

SJVN Green Energy, a subsidiary of SJVN, has invited bids to purchase or lease up to 1,000 acres of land in Assam for 28 years to develop 200 MW of solar power projects, including connectivity with the state transmission utility system.

The selected land should have all necessary regulatory approvals, including chain link fencing around its boundaries.

The last date for the submission of bids is December 26, 2023. Bids will be opened the same day.

Bidders have to submit ₹5,900 (~$70.75) as the cost of the bid document.

Bidders must furnish an earnest money deposit as follows:

Bidders can propose multiple land parcels, with each single connected parcel being either 200 acres or a multiple thereof, up to a maximum of 1,000 acres. Any single connected land parcel less than 200 acres will not be considered.

If the land parcel exceeds 200 acres but is not in multiples of 200 acres, area will be adjusted to the nearest multiple of 200 acres, and the bidder’s quoted prices for that land parcel will also be adjusted or prorated accordingly.

If a bidder submits a proposed land parcel that combines outright purchase and lease land, such a parcel will be rejected.

The land can be located within a solar park, provided it can be transferred to SJVN Green Energy through outright purchase in accordance with solar park rules and regulations.

At the time of submitting the bid, the bidder must either have an agreement to sell or own at least 20% of the offered land parcel. This agreement must remain valid for a minimum of three months from the deadline for the last bid submission date.

The closest part of the land must not be more than 15 kilometers in aerial distance from the state’s nearest grid sub-station, with the minimum estimated spare capacity specified as follows: 200 MW for 1,000 acres, 160 MW for 800 acres, 120 MW for 600 acres, 80 MW for 400 acres, and 40 MW for 200 acres.

The land must have a minimum annual global horizontal irradiance of 1,550 kWh/m2. It should form a single connected patch and must be accessible via road. SJVN Green Energy retains the right to accept the land parcel as a whole or in parts.

The land must not be in or within the prohibited range of any wildlife-protected area or defense establishment, and there should be no government restrictions in setting up a solar power project on the offered land.

Recently, SJVN Green Energy invited bids to purchase or lease 1,000 acres of land in Punjab for 28 years to develop 200 MW solar power projects.

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