Simple Energy Proposed Production 1 Million E-scooter Units Annually at TN Plant..
Simple Energy, a Bengaluru-based electric two-wheeler (E2W) maker announced setting up its new production plant at Hosur, Tamil Nadu. Simple Energy‘s Hosur production plant is coming on a 200,000 sq ft with a production capacity of up to 1 million units a year. This Plant is also expected to create 1,000 jobs in Tamil Nadu. This e-mobility startup claims to invest over Rs. 350 crore in coming two years to increase its presence in India. The Plant announced that the work for setting up the factory has started and that the production is expected to commence by the end of this year. The E2W manufacturer is ready to launch its hi-tech sporty electric scooter titled ‘Simple One’ on Independence Day 2021. Simple One will be available in different cities in different phases, starting with Bangalore, Chennai and Hyderabad followed by other cities later. Mr. Suhas Rajkumar, founder & CEO of Simple Energy said that they aim to lead electric mobility in the country, besides being able to cater to a larger audience faster than ever. As for the product specification, the Simple One will have a 4.8 kWh lithium-ion battery, a range of 240km in eco mode, a top speed of 100kph, and 0-50kph acceleration in 3.6 seconds. Other notable features are mid-drive motor along with a removable battery and futuristic design, a touchscreen, onboard navigation, and Bluetooth, among others. The exact pricing of the telectric two wheeler is not revealed yet. The State is also has another Electric two wheeler manufacturing Unit Ola Electrics.
Simple Energy, a Bengaluru-based electric two-wheeler (E2W) maker announced setting up its new production plant at Hosur, Tamil Nadu. Simple Energy‘s Hosur production plant is coming on a 200,000 sq ft with a production capacity of up to 1 million units a year. This Plant is also expected to create 1,000 jobs in Tamil Nadu. This e-mobility startup claims to invest over Rs. 350 crore in coming two years to increase its presence in India. The Plant announced that the work for setting up the factory has started and that the production is expected to commence by the end of this year. The E2W manufacturer is ready to launch its hi-tech sporty electric scooter titled ‘Simple One’ on Independence Day 2021. Simple One will be available in different cities in different phases, starting with Bangalore, Chennai and Hyderabad followed by other cities later. Mr. Suhas Rajkumar, founder & CEO of Simple Energy said that they aim to lead electric mobility in the country, besides being able to cater to a larger audience faster than ever. As for the product specification, the Simple One will have a 4.8 kWh lithium-ion battery, a range of 240km in eco mode, a top speed of 100kph, and 0-50kph acceleration in 3.6 seconds. Other notable features are mid-drive motor along with a removable battery and futuristic design, a touchscreen, onboard navigation, and Bluetooth, among others. The exact pricing of the telectric two wheeler is not revealed yet. The State is also has another Electric two wheeler manufacturing Unit Ola Electrics.
Tamil Nadu expecting to create 1,000 jobs in its new Venture in Solar Energy Segment.
First Solar Inc., an America Solar Technology Company, on 30th, July 2021 said that it is investing USD 684 in Tamil Nadu in the new manufacturing facility of integrated photovoltaic (PV) thin film solar module. The First Solar produces its thin film PV modules using a fully integrated, continuous process under one roof without depending on China for any auxiliary components. This facility would be manufacturing the latest its thin film PV modules capable of generating 3.3 gigawatts (GW) DC. First Solar Inc., intends to combine highly skilled workers with Industry, machine-to-machine communication, artificial intelligence and Internet of Things connectivity. This advanced facility is expected to commence operations in the second half of 2023 and is expected create 1,000 jobs in the facility. First Solar Inc., finds India as an
attractive market as India is an inherently sustainable market, a growing economy and huge consumption of energy. India is now poised with well-defined goal of 25 GW of Solar energy every year for the decade. India goal for its clean energy targets with effective trade and industrial policy designed to enable self-sufficient domestic manufacturing and true energy security. First Solar is having many
Long-standing customers in the country and it intends to give access to an advanced PV module, which is made in India, for India. The First Solar is producing solar modules wit 2.5 lower carbon emission. The energy return from their PV modules is twice as fast as crystalline silicon (c-Si) panels that are pre-dominantly made in China. First Solar’s PV modules are designed and developed at R &D labs in California and Ohio. Also, to note a study has found that phasing out fossil fuels would actually add 80-lakh energy sector jobs across the world by 2050, of which over 5.4 lakh would be in India. As per ‘One Earth’ journal on 30th, July 2021, if the Paris Agreement target of temperature rise staying well below 2°C, the number of jobs in India’s energy sector would go up from 8.6 lakh to 14 lakh by 2050. The US and Middle East and North Africa would be adding maximum numbers of jobs. All this combined show over a million jobs by 2050. China, on the other hand, would lose many jobs. Low-carbon technologies are more job-intensive. That would lead to an increase in the number of jobs, especially during the expansion of renewable energy capacity.
First Solar Inc., an America Solar Technology Company, on 30th, July 2021 said that it is investing USD 684 in Tamil Nadu in the new manufacturing facility of integrated photovoltaic (PV) thin film solar module. The First Solar produces its thin film PV modules using a fully integrated, continuous process under one roof without depending on China for any auxiliary components. This facility would be manufacturing the latest its thin film PV modules capable of generating 3.3 gigawatts (GW) DC. First Solar Inc., intends to combine highly skilled workers with Industry, machine-to-machine communication, artificial intelligence and Internet of Things connectivity. This advanced facility is expected to commence operations in the second half of 2023 and is expected create 1,000 jobs in the facility. First Solar Inc., finds India as an
attractive market as India is an inherently sustainable market, a growing economy and huge consumption of energy. India is now poised with well-defined goal of 25 GW of Solar energy every year for the decade. India goal for its clean energy targets with effective trade and industrial policy designed to enable self-sufficient domestic manufacturing and true energy security. First Solar is having many
Long-standing customers in the country and it intends to give access to an advanced PV module, which is made in India, for India. The First Solar is producing solar modules wit 2.5 lower carbon emission. The energy return from their PV modules is twice as fast as crystalline silicon (c-Si) panels that are pre-dominantly made in China. First Solar’s PV modules are designed and developed at R &D labs in California and Ohio. Also, to note a study has found that phasing out fossil fuels would actually add 80-lakh energy sector jobs across the world by 2050, of which over 5.4 lakh would be in India. As per ‘One Earth’ journal on 30th, July 2021, if the Paris Agreement target of temperature rise staying well below 2°C, the number of jobs in India’s energy sector would go up from 8.6 lakh to 14 lakh by 2050. The US and Middle East and North Africa would be adding maximum numbers of jobs. All this combined show over a million jobs by 2050. China, on the other hand, would lose many jobs. Low-carbon technologies are more job-intensive. That would lead to an increase in the number of jobs, especially during the expansion of renewable energy capacity.
Sun- Solar Inverter Market.
The Sun- Solar Inverter Market is the latest interesting market study. The boom in renewable energy in India has created a thriving new industry segment though main attention focused is still, on the solar modules or PV panels. Off late another critical component in solar and other renewable energy systems has emerged. The solar inverter market. This solar inverter market has become a thriving market today. Many players have jumped into this segment and are rigorously competing for market share and leadership in India. India is the world’s fourth largest market. Competition in the sales effected and the growth is one factor. A player also has to compete with the technology, standard and the global players.
The Sun- Solar Inverter Market is the latest interesting market study. The boom in renewable energy in India has created a thriving new industry segment though main attention focused is still, on the solar modules or PV panels. Off late another critical component in solar and other renewable energy systems has emerged. The solar inverter market. This solar inverter market has become a thriving market today. Many players have jumped into this segment and are rigorously competing for market share and leadership in India. India is the world’s fourth largest market. Competition in the sales effected and the growth is one factor. A player also has to compete with the technology, standard and the global players.
Electric Vehicles to transform India by 2030.
India has carved out a clear road map for a major transformation to electric vehicles (EVs) by 2030. The government’s keenness to eliminate the pre-existing roadblocks by making swift policy changes for sustainable mobility is encouraging growth in the segment.
Faster Adoption and Manufacturing of Electric Vehicles in India II (FAME II) scheme started In March 2019, that not only provides the much-needed assistance to the EV sector but also instilled confidence in manufacturers to compete with the fossil-fuel based Internal Combustion Engine (ICE) counterparts that are comparatively cheaper and popular among buyers. The progress was however marred by a global pandemic. Of the allocated Rs 10,000 crore under the scheme, only Rs 500 crore was spent. Also against an expected sale of 10 lakh of electric 2 wheelers, only 58,613 units were sold. Here the government’s move to extend the FAME II scheme by two years comes as a sign of hope that will expedite the adoption of EVs in India by taking advantage of the untapped potential.
The scheme will recover as the 3-year period will now be active till March 31, 2024. Siding with this is the decision of the Ministry of Heavy Industries and Public Enterprises announcement of a 50% increase in incentives for electric two-wheelers to Rs 15,000 per kilowatt-hour (kWh) from the existing Rs 10,000 per kWh. It has also mandated Energy Efficiency Services Ltd (EESL) to procure 3 lakh electric three-wheelers for different uses. These decisions will drastically help the manufacturers to cut the cost of electric models by Rs 10,000-20,000 and to make them more cost-effective for Indian users. The EV market, which stood at a mere $536.1 million in 2019, is projected to expand at a robust 22.1 per cent during 2020 to 2030. Hence a huge opportunity for India to not only achieving its sustainability targets but also emerge as a global EV manufacturing hub. To further attract Overseas manufacturers of along with Indian manufacturers of EVs in India, Government has intiated a new Scheme known as Production Linked Incentive Scheme. The current trends are in favour of growth and the revised policies under the FAME-II scheme, which are already in place, are bound to increase growth in the segment.
Globally while auto sales in 2020 fell by 16%, EV sales took a 40% leap in the same duration. It is estimated that by 2025, EVs will contribute around 25% of the global auto sales, led by two Wheelers, and will grow higher by 2030. This is a huge opportunity for Indian players and gain a larger market share. To make EV models more reliable, affordable and efficient, collaborations in the industry as well as with governments are required. As consumers, have huge expectations from the vehicles and their performances. To satisfy the customers, the EV manufacturing segment must be provided with subsidies to manufacturers, development of convenient charging infrastructure and incentivizing the buyers to strengthen the framework. Other than extending the FAME-II scheme, the country also needs to develop a strong EV supply chain and reduce the dependence on imports. Robust infrastructure, capital expenditure, and a transparent approach are required to create the ecosystem in such a manner that EV parts and components are made in India. This will not only create a huge employment opportunity, it will ultimately reduce the cost, and make it more affordable and convenient for customers as well as manufacturers leading to higher numbers of sales.
It is a good sign that EVs are now getting more recognition and acceptance from private players, than just a government mandate. Many states are now comprehending or completely replacing the state-run buses with electric alternatives. This will drastically help to reduce the carbon footprint. According to a World Economic Forum report, e-commerce is expected to soar 78% globally by 2030. The volume of delivery vehicles in the top 100 cities in the world will thus rise by 36% as we approach 2030. This will increase the demand for goods delivery vehicles in Tier-1, Tier-2 as well as remote locations and broaden the scope for the development of smaller format electrical alternatives, like road-ready 3-wheeler (3W) electric delivery vans. Maintenance and repairing, of EVs, require different skill sets that must be attended through the skill development programs of NGOs/Govt. Lack of awareness on the benefits of electric vehicles and pre-conceived notions, that they are more expensive than conventional models is a major concern that must be addressed with, to make India a global leader in EV adoption and manufacturing by 2030.
India has carved out a clear road map for a major transformation to electric vehicles (EVs) by 2030. The government’s keenness to eliminate the pre-existing roadblocks by making swift policy changes for sustainable mobility is encouraging growth in the segment.
Faster Adoption and Manufacturing of Electric Vehicles in India II (FAME II) scheme started In March 2019, that not only provides the much-needed assistance to the EV sector but also instilled confidence in manufacturers to compete with the fossil-fuel based Internal Combustion Engine (ICE) counterparts that are comparatively cheaper and popular among buyers. The progress was however marred by a global pandemic. Of the allocated Rs 10,000 crore under the scheme, only Rs 500 crore was spent. Also against an expected sale of 10 lakh of electric 2 wheelers, only 58,613 units were sold. Here the government’s move to extend the FAME II scheme by two years comes as a sign of hope that will expedite the adoption of EVs in India by taking advantage of the untapped potential.
The scheme will recover as the 3-year period will now be active till March 31, 2024. Siding with this is the decision of the Ministry of Heavy Industries and Public Enterprises announcement of a 50% increase in incentives for electric two-wheelers to Rs 15,000 per kilowatt-hour (kWh) from the existing Rs 10,000 per kWh. It has also mandated Energy Efficiency Services Ltd (EESL) to procure 3 lakh electric three-wheelers for different uses. These decisions will drastically help the manufacturers to cut the cost of electric models by Rs 10,000-20,000 and to make them more cost-effective for Indian users. The EV market, which stood at a mere $536.1 million in 2019, is projected to expand at a robust 22.1 per cent during 2020 to 2030. Hence a huge opportunity for India to not only achieving its sustainability targets but also emerge as a global EV manufacturing hub. To further attract Overseas manufacturers of along with Indian manufacturers of EVs in India, Government has intiated a new Scheme known as Production Linked Incentive Scheme. The current trends are in favour of growth and the revised policies under the FAME-II scheme, which are already in place, are bound to increase growth in the segment.
Globally while auto sales in 2020 fell by 16%, EV sales took a 40% leap in the same duration. It is estimated that by 2025, EVs will contribute around 25% of the global auto sales, led by two Wheelers, and will grow higher by 2030. This is a huge opportunity for Indian players and gain a larger market share. To make EV models more reliable, affordable and efficient, collaborations in the industry as well as with governments are required. As consumers, have huge expectations from the vehicles and their performances. To satisfy the customers, the EV manufacturing segment must be provided with subsidies to manufacturers, development of convenient charging infrastructure and incentivizing the buyers to strengthen the framework. Other than extending the FAME-II scheme, the country also needs to develop a strong EV supply chain and reduce the dependence on imports. Robust infrastructure, capital expenditure, and a transparent approach are required to create the ecosystem in such a manner that EV parts and components are made in India. This will not only create a huge employment opportunity, it will ultimately reduce the cost, and make it more affordable and convenient for customers as well as manufacturers leading to higher numbers of sales.
It is a good sign that EVs are now getting more recognition and acceptance from private players, than just a government mandate. Many states are now comprehending or completely replacing the state-run buses with electric alternatives. This will drastically help to reduce the carbon footprint. According to a World Economic Forum report, e-commerce is expected to soar 78% globally by 2030. The volume of delivery vehicles in the top 100 cities in the world will thus rise by 36% as we approach 2030. This will increase the demand for goods delivery vehicles in Tier-1, Tier-2 as well as remote locations and broaden the scope for the development of smaller format electrical alternatives, like road-ready 3-wheeler (3W) electric delivery vans. Maintenance and repairing, of EVs, require different skill sets that must be attended through the skill development programs of NGOs/Govt. Lack of awareness on the benefits of electric vehicles and pre-conceived notions, that they are more expensive than conventional models is a major concern that must be addressed with, to make India a global leader in EV adoption and manufacturing by 2030.
INDIA OPTING TO ALUMINIUM –ION BATTERIES DUE TO DEMAND FOR STORAGE OF REN ENERGY.
India is the third largest importer of oil in the world. In order to minimize dependency on oil and fuel imports, India is advancing in a battery technology that uses aluminum rather than lithium as the key ingredient for storing energy and sustainable usage in the EVs in the country. India has large reserves of bauxite, the ore used to make aluminum. It can opt to produce lithium, the key metal for the current generation of EV batteries. In this regard, the Indian Oil Corporation (Indian Oil) has announced that it has established a Joint Venture (JV) with Israeli start-up company Phinergy which specializes in hybrid lithium-ion and aluminum-air/zinc-air battery systems. This joint venture plans to manufacture Aluminum-Air systems in India. Under this technology, recycling of used Aluminum will help India in becoming “Aatmanirbhar” for energy requirements. This Indo-Israeli JV also intends to develop fuel cells and indigenous hydrogen storage solutions for promoting green mobility. These new Aluminium-ion batteries have twice the energy density of conventional aluminum devices. The scientists used a cathode made of anthraquinone, instead of one based on graphene, increasing energy density. Aluminum in principle works better than lithium-ion as a charge carrier. Such Aluminium Batteries are less environmentally harmful. Due to vast reserves of Bauxite ores for Aluminium, the JV plans to manufacture Aluminum-Air systems in India. India has already invested substantially in production of Aluminium and is the second biggest smelter of Aluminium. In Aluminium-ion batteries, Aluminium ions provide energy by flowing from the positive electrode of the battery to the negative electrode. Rechargeable Aluminium-based batteries offers low cost and low flammability, with high capacity. An Aluminium-air battery is found advantageous than the lithium-ion battery. It is cheaper, better for longer mobility and above all safe. , Lithium-ion batteries often contain hazardous materials, making them harder to recycle.
India will be a big market for Aluminium-air batteries when it comes to storing of renewable energy and for the electric mobility like the two, three wheeled electric vehicles and bigger transport vehicles.
India is the third largest importer of oil in the world. In order to minimize dependency on oil and fuel imports, India is advancing in a battery technology that uses aluminum rather than lithium as the key ingredient for storing energy and sustainable usage in the EVs in the country. India has large reserves of bauxite, the ore used to make aluminum. It can opt to produce lithium, the key metal for the current generation of EV batteries. In this regard, the Indian Oil Corporation (Indian Oil) has announced that it has established a Joint Venture (JV) with Israeli start-up company Phinergy which specializes in hybrid lithium-ion and aluminum-air/zinc-air battery systems. This joint venture plans to manufacture Aluminum-Air systems in India. Under this technology, recycling of used Aluminum will help India in becoming “Aatmanirbhar” for energy requirements. This Indo-Israeli JV also intends to develop fuel cells and indigenous hydrogen storage solutions for promoting green mobility. These new Aluminium-ion batteries have twice the energy density of conventional aluminum devices. The scientists used a cathode made of anthraquinone, instead of one based on graphene, increasing energy density. Aluminum in principle works better than lithium-ion as a charge carrier. Such Aluminium Batteries are less environmentally harmful. Due to vast reserves of Bauxite ores for Aluminium, the JV plans to manufacture Aluminum-Air systems in India. India has already invested substantially in production of Aluminium and is the second biggest smelter of Aluminium. In Aluminium-ion batteries, Aluminium ions provide energy by flowing from the positive electrode of the battery to the negative electrode. Rechargeable Aluminium-based batteries offers low cost and low flammability, with high capacity. An Aluminium-air battery is found advantageous than the lithium-ion battery. It is cheaper, better for longer mobility and above all safe. , Lithium-ion batteries often contain hazardous materials, making them harder to recycle.
India will be a big market for Aluminium-air batteries when it comes to storing of renewable energy and for the electric mobility like the two, three wheeled electric vehicles and bigger transport vehicles.
,strong>TATA POWER AIMING TO BECOME A 15 GW OF RENEWABLE ENERGY CAPACITY ENTITY.
Tata Power plans to add renewable energy projects to grow to 15 GW company in the coming few years, its chairperson Natarajan Chandrasekaran said on 5th July 2021. Tata Power is focusing upscaling its rooftop solar, solar pumps, electric vehicle charging systems and home automation businesses in the consumer renewables business. Tata Power is already having operating capacity of 1839 Mw renewable energy capacity comprising 907 Mw wind power and 932 Mw solar power. Another 373 Mw of wind and solar capacity is under development. Chandrasekharan said that the company is seeing strong growth in rooftop solar and solar pumps segments. He also said that the company currently has the highest ever EPC order book and is expanding its capacity in solar cells and modules manufacturing. Tata Power continues to divest non-core assets to simplify the business. Apart from the sale of the defense business, this year, it completed the divestment of its South Africa wind assets and its shipping business.
He said the company is witnessing strong growth in rooftop solar and solar pumps segments. “The company currently has the highest ever EPC order book and is expanding solar cells and modules manufacturing capacity. It also won over 1 Gw renewables capacity projects during the year,” Chandrasekaran said. He also said that during the current year Tata Sons has pumped in Rs 2,600 crore of preferential equity in the company to strengthen the Tat Power’s Balance Sheet. Besides the proceeds from the divestments were utilised to reduce the debt. He said the company continues to divest non-core assets to simplify the business. Apart from the sale of the defense business, this year, it completed the divestment of its South Africa wind assets and its shipping business. Last year, Tata Power completed acquisition of three distribution license areas in Odisha and one in April this financial year. The Company distributes power in Mumbai, Delhi, Ajmer, besides Odisha.
Tata Power reported consolidated net profit of Rs 1,439 crore in its last Balance Sheet. The consolidated profit after tax before exceptional items stood at Rs 1,424 crore as against Rs 1,231 crore in the previous year, due to lower losses in Mundra project and higher profit from acquisition of Prayagaj power project in Uttar Pradesh. The consolidated revenues in the year were Rs 33,079 crore, compared to Rs 28,948 crore a year ago, representing an increase of about 14% owing to revenue growth through three Odisha discoms and execution of solar EPC projects. It was seen that the cash generated from operations increased by 15% to Rs 8,458 crore in the year. The consolidated net debt at the end of the year was Rs 35,946 crore, reduction of about Rs 7, 600 crore over the previous year level of Rs 43,559 crore.
The cash generated from operations increased by 15% to Rs 8,458 crore in the year. The consolidated net debt at the end of the year was Rs 35,946 crore, reduction of about Rs 7, 600 crore over the previous year level of Rs 43,559 crore.
Tata Power plans to add renewable energy projects to grow to 15 GW company in the coming few years, its chairperson Natarajan Chandrasekaran said on 5th July 2021. Tata Power is focusing upscaling its rooftop solar, solar pumps, electric vehicle charging systems and home automation businesses in the consumer renewables business. Tata Power is already having operating capacity of 1839 Mw renewable energy capacity comprising 907 Mw wind power and 932 Mw solar power. Another 373 Mw of wind and solar capacity is under development. Chandrasekharan said that the company is seeing strong growth in rooftop solar and solar pumps segments. He also said that the company currently has the highest ever EPC order book and is expanding its capacity in solar cells and modules manufacturing. Tata Power continues to divest non-core assets to simplify the business. Apart from the sale of the defense business, this year, it completed the divestment of its South Africa wind assets and its shipping business.
He said the company is witnessing strong growth in rooftop solar and solar pumps segments. “The company currently has the highest ever EPC order book and is expanding solar cells and modules manufacturing capacity. It also won over 1 Gw renewables capacity projects during the year,” Chandrasekaran said. He also said that during the current year Tata Sons has pumped in Rs 2,600 crore of preferential equity in the company to strengthen the Tat Power’s Balance Sheet. Besides the proceeds from the divestments were utilised to reduce the debt. He said the company continues to divest non-core assets to simplify the business. Apart from the sale of the defense business, this year, it completed the divestment of its South Africa wind assets and its shipping business. Last year, Tata Power completed acquisition of three distribution license areas in Odisha and one in April this financial year. The Company distributes power in Mumbai, Delhi, Ajmer, besides Odisha.
Tata Power reported consolidated net profit of Rs 1,439 crore in its last Balance Sheet. The consolidated profit after tax before exceptional items stood at Rs 1,424 crore as against Rs 1,231 crore in the previous year, due to lower losses in Mundra project and higher profit from acquisition of Prayagaj power project in Uttar Pradesh. The consolidated revenues in the year were Rs 33,079 crore, compared to Rs 28,948 crore a year ago, representing an increase of about 14% owing to revenue growth through three Odisha discoms and execution of solar EPC projects. It was seen that the cash generated from operations increased by 15% to Rs 8,458 crore in the year. The consolidated net debt at the end of the year was Rs 35,946 crore, reduction of about Rs 7, 600 crore over the previous year level of Rs 43,559 crore.
The cash generated from operations increased by 15% to Rs 8,458 crore in the year. The consolidated net debt at the end of the year was Rs 35,946 crore, reduction of about Rs 7, 600 crore over the previous year level of Rs 43,559 crore.
Impact of Basic Customs Duty on solar equipment.
On March 9, 2021, the Ministry of Finance approves the imposition of 25 per cent basic customs duty (BCD) on solar cells and 40 per cent on solar modules. The BCD, being effective from April 1, 2022, forms part of the series of decisions taken by the Government of India (GoI) to boost the domestic solar equipment manufacturers. During February 2021, the Ministry of New and Renewable Energy discontinued the benefit of concessional custom duty in respect of items imported for setting up of solar power projects. The purpose of these decisions is to not only reduce dependence on imports but also create a solar equipment manufacturing industry that will not only be self-sufficient, besides being an active participant in the global supply chain.
The imposition of BCD has received a mixed response from various stakeholders in the industry. While domestic manufacturers have welcomed the decision, it has not found favour with the solar power project developers (SPPDs), as they are vaguely doubtful of the ability of domestic manufacturers to meet the present and future demand. While the current demand is of 30 GW per year, domestic manufacturers are in a position to supply only 2.5 GW of solar cells and 10 GW of modules. The SPPDs opine that this demand supply gap will force them to rely on expensive imports to meet their contractual obligations for setting up the projects in hand.
Chinese suppliers because of the competitive prices offered by them currently dominate India’s solar energy sector. The demand supply gap exists, as Indian manufacturers are unable to compete with the prices offered by their Chinese counterparts, thereby disincentivising Indian manufacturers from augmenting their manufacturing capacities. The imposition of BCD will eliminate the price advantage attached to imports from China and create a level playing field for the domestic manufacturers. However, this advantage may be negated if domestic manufacturers are unable to righty utilise the imposition of BCD as an opportunity to ramp up their production capabilities. Currently, India imports most of the raw materials required to manufacture solar equipment domestically. While the BCD will solve one-half of the equation, achieving complete self-sufficiency and scale of economies would require the GoI to offer additional incentives to boost the domestic production of other raw materials.
The announcement of the imposition of BCD has also left the industry speculating about the duty structure in the foreseeable future. India is imposing a safeguard duty (SGD) on import of solar cells from China, Thailand and Vietnam. This SGD is valid until July 2021, whereas the BCD is scheduled to become effective from April 1, 2022. This has caused uncertainty about the duty to be levied in the intermediate period from August this year until March next year. A clarification from GoI in this regard will be helpful in reducing the concerns of the relevant stakeholders and allowing them to plan their business decisions accordingly.
Though the present SGD levied on imports from China, Thailand and Vietnam, the BCD will be applicable to all imports, regardless of the country of origin. This has specifically become an additional cause of concern for solar equipment manufacturers operating out of special economic zones (SEZs). Goods and services from SEZs, when offered to entities in the domestic tariff area, are considered as imports, and are thus subject to customs duty. Currently, 63 per cent of India’s solar cell manufacturing units and 43 per cent of solar panel manufacturing units are located in SEZs. The imposition of BCD therefore will make the products manufactured in the SEZs expensive. This then goes against the reason of BCD impositions, as the price advantages intended to be offered will no longer be available to solar equipment manufactured in the SEZs.
The imposition of BCD must also be seen in the light of India’s international obligations. India is a signatory to the Information Technology Agreement (ITA) under the WTO framework. The ITA legally and morally binds its signatories to eliminate tariffs on IT products, which also include solar cells and modules. Hence, the BCD may be challenged before the WTO.
As part of the Paris Climate Agreement, India has committed itself to achieving 100 GW of solar energy capacity by 2022. It has been predicted that the imposition of BCD will reduce the pace of growth in the solar energy sector.
The decision to impose BCD, though taken with sincere intentions, may have unintended ramifications. India is on a path to foster self-sufficiency in all sectors critical to the economy. The need of the hour is to develop a roadmap for increasing capabilities to effectively utilise the advantages that will be monetarily beneficial to domestic manufacturers with the alignments imposition of the BCD. This would require some proper adjustments by the GoI to balance the interest of all stakeholders.
On March 9, 2021, the Ministry of Finance approves the imposition of 25 per cent basic customs duty (BCD) on solar cells and 40 per cent on solar modules. The BCD, being effective from April 1, 2022, forms part of the series of decisions taken by the Government of India (GoI) to boost the domestic solar equipment manufacturers. During February 2021, the Ministry of New and Renewable Energy discontinued the benefit of concessional custom duty in respect of items imported for setting up of solar power projects. The purpose of these decisions is to not only reduce dependence on imports but also create a solar equipment manufacturing industry that will not only be self-sufficient, besides being an active participant in the global supply chain.
The imposition of BCD has received a mixed response from various stakeholders in the industry. While domestic manufacturers have welcomed the decision, it has not found favour with the solar power project developers (SPPDs), as they are vaguely doubtful of the ability of domestic manufacturers to meet the present and future demand. While the current demand is of 30 GW per year, domestic manufacturers are in a position to supply only 2.5 GW of solar cells and 10 GW of modules. The SPPDs opine that this demand supply gap will force them to rely on expensive imports to meet their contractual obligations for setting up the projects in hand.
Chinese suppliers because of the competitive prices offered by them currently dominate India’s solar energy sector. The demand supply gap exists, as Indian manufacturers are unable to compete with the prices offered by their Chinese counterparts, thereby disincentivising Indian manufacturers from augmenting their manufacturing capacities. The imposition of BCD will eliminate the price advantage attached to imports from China and create a level playing field for the domestic manufacturers. However, this advantage may be negated if domestic manufacturers are unable to righty utilise the imposition of BCD as an opportunity to ramp up their production capabilities. Currently, India imports most of the raw materials required to manufacture solar equipment domestically. While the BCD will solve one-half of the equation, achieving complete self-sufficiency and scale of economies would require the GoI to offer additional incentives to boost the domestic production of other raw materials.
The announcement of the imposition of BCD has also left the industry speculating about the duty structure in the foreseeable future. India is imposing a safeguard duty (SGD) on import of solar cells from China, Thailand and Vietnam. This SGD is valid until July 2021, whereas the BCD is scheduled to become effective from April 1, 2022. This has caused uncertainty about the duty to be levied in the intermediate period from August this year until March next year. A clarification from GoI in this regard will be helpful in reducing the concerns of the relevant stakeholders and allowing them to plan their business decisions accordingly.
Though the present SGD levied on imports from China, Thailand and Vietnam, the BCD will be applicable to all imports, regardless of the country of origin. This has specifically become an additional cause of concern for solar equipment manufacturers operating out of special economic zones (SEZs). Goods and services from SEZs, when offered to entities in the domestic tariff area, are considered as imports, and are thus subject to customs duty. Currently, 63 per cent of India’s solar cell manufacturing units and 43 per cent of solar panel manufacturing units are located in SEZs. The imposition of BCD therefore will make the products manufactured in the SEZs expensive. This then goes against the reason of BCD impositions, as the price advantages intended to be offered will no longer be available to solar equipment manufactured in the SEZs.
The imposition of BCD must also be seen in the light of India’s international obligations. India is a signatory to the Information Technology Agreement (ITA) under the WTO framework. The ITA legally and morally binds its signatories to eliminate tariffs on IT products, which also include solar cells and modules. Hence, the BCD may be challenged before the WTO.
As part of the Paris Climate Agreement, India has committed itself to achieving 100 GW of solar energy capacity by 2022. It has been predicted that the imposition of BCD will reduce the pace of growth in the solar energy sector.
The decision to impose BCD, though taken with sincere intentions, may have unintended ramifications. India is on a path to foster self-sufficiency in all sectors critical to the economy. The need of the hour is to develop a roadmap for increasing capabilities to effectively utilise the advantages that will be monetarily beneficial to domestic manufacturers with the alignments imposition of the BCD. This would require some proper adjustments by the GoI to balance the interest of all stakeholders.
Huge investment opportunity for US in Indian energy space, trade, infrastructure, defence and security.
The road transport and highways Union minister Nitin Gadkari on 30.04.2021 said that all outstanding trade issues will be resolved soon between India and the US, and urged American firms to explore huge investment opportunities in India. Addressing Indo-US Partnership Vision Summit, Gadkari said that India and the US have reached principle agreement in the area of, energy, defence, security and trade. The Union Minister confirms major trade agreement will be signed soon. The two countries are negotiating a trade package to chalk out certain issues and promote two-way commerce. In 2018-19, India’s exports to the US stood at USD 52.4 billion, while imports were USD 35.5 billion. Trade deficit dipped from USD 21.3 billion in 2017-18 to USD 16.9 billion in 2018-19.
The minister said that on strategic fronts, our bilateral relationship has always ensured peace, prosperity and security across both regions and added the US renamed its pacific military command to the Indo-Pacific command. He also said that there is a huge opportunity for investment in the infrastructure sector in India as Indian government is working to build world-class infrastructure for its citizen. It aims to improve highways, road and ports and that India is the fastest growing economy and the rate of return is very good. There is also an opportunity of investment now in the electricity in public transport
The minister said currently, India’s automobile industry is worth Rs 7 lakh crore and intends to see India as the number one hub of automobile manufacturing in the next five years. The minister said the MSME sector in the country also provides a golden opportunity for investors in the US as the performance in the sector is growing and has huge potential for exports.
Gadkari also noted that the government focusing on the diversification of agriculture and is working to increase the share of renewable energy besides laying emphasis on hydrogen fuel cell battery technology. The minister said there is huge potential for investment in the power sector, especially the green energy segment. He also spoke of potentials in solar energy in India.
The road transport and highways Union minister Nitin Gadkari on 30.04.2021 said that all outstanding trade issues will be resolved soon between India and the US, and urged American firms to explore huge investment opportunities in India. Addressing Indo-US Partnership Vision Summit, Gadkari said that India and the US have reached principle agreement in the area of, energy, defence, security and trade. The Union Minister confirms major trade agreement will be signed soon. The two countries are negotiating a trade package to chalk out certain issues and promote two-way commerce. In 2018-19, India’s exports to the US stood at USD 52.4 billion, while imports were USD 35.5 billion. Trade deficit dipped from USD 21.3 billion in 2017-18 to USD 16.9 billion in 2018-19.
The minister said that on strategic fronts, our bilateral relationship has always ensured peace, prosperity and security across both regions and added the US renamed its pacific military command to the Indo-Pacific command. He also said that there is a huge opportunity for investment in the infrastructure sector in India as Indian government is working to build world-class infrastructure for its citizen. It aims to improve highways, road and ports and that India is the fastest growing economy and the rate of return is very good. There is also an opportunity of investment now in the electricity in public transport
The minister said currently, India’s automobile industry is worth Rs 7 lakh crore and intends to see India as the number one hub of automobile manufacturing in the next five years. The minister said the MSME sector in the country also provides a golden opportunity for investors in the US as the performance in the sector is growing and has huge potential for exports.
Gadkari also noted that the government focusing on the diversification of agriculture and is working to increase the share of renewable energy besides laying emphasis on hydrogen fuel cell battery technology. The minister said there is huge potential for investment in the power sector, especially the green energy segment. He also spoke of potentials in solar energy in India.
Top 10 solar developers installed 69 per cent projects in 2020.
India’s top 10 large-scale project developers in Renewable Energy sector accounted for 69 per cent of the projects installed in 2020.
Adani was the top utility-scale project developer by installed capacity in 2020. Tata Power Solar had the largest rooftop installations in 2020, followed by Fourth Partner Energy.
A report by Mercom Communications India points that In 2020, the top 10 rooftop solar installers accounted for 66 per cent of the rooftop solar market. Rooftop installations totaled 719 MW in 2020, a 35 per cent drop year-over-year due to COVID-19 related challenges. It added that large-scale solar installations in 2020 accounted for 78 per cent of the total solar installations with 2.5 GW. While solar accounted for 48 per cent of new power capacity additions in 2020. Sterling & Wilson was the top EPC provider for utility-scale solar in 2020, followed by Tata Power Solar. The report said that LONGi Solar was the leading module supplier to India in 2020, and in terms of combined shipments, Trina Solar topped the list. Due to the increasing interest from Corporates buying open access projects the open access installations in India saw a 56 per cent increase in 2020. Here the Rays Power Experts, Amplus Solar, and CleanMax were the top open access developers as of December 2020.
The Mercom Communications India report said during 2020, India installed 3.2 GW of solar power projects across the country. India also had a robust pipeline of 47.5 GW of utility-scale projects under development at the end of 2020, with another 24.5 GW of tenders pending auction.
The report added that companies offering engineering, procurement, construction services saw a large number of projects continued in 2021 due to delays caused by the COVID-19 pandemic, land acquisition, and evacuation issues, among other issues.
India’s top 10 large-scale project developers in Renewable Energy sector accounted for 69 per cent of the projects installed in 2020.
Adani was the top utility-scale project developer by installed capacity in 2020. Tata Power Solar had the largest rooftop installations in 2020, followed by Fourth Partner Energy.
A report by Mercom Communications India points that In 2020, the top 10 rooftop solar installers accounted for 66 per cent of the rooftop solar market. Rooftop installations totaled 719 MW in 2020, a 35 per cent drop year-over-year due to COVID-19 related challenges. It added that large-scale solar installations in 2020 accounted for 78 per cent of the total solar installations with 2.5 GW. While solar accounted for 48 per cent of new power capacity additions in 2020. Sterling & Wilson was the top EPC provider for utility-scale solar in 2020, followed by Tata Power Solar. The report said that LONGi Solar was the leading module supplier to India in 2020, and in terms of combined shipments, Trina Solar topped the list. Due to the increasing interest from Corporates buying open access projects the open access installations in India saw a 56 per cent increase in 2020. Here the Rays Power Experts, Amplus Solar, and CleanMax were the top open access developers as of December 2020.
The Mercom Communications India report said during 2020, India installed 3.2 GW of solar power projects across the country. India also had a robust pipeline of 47.5 GW of utility-scale projects under development at the end of 2020, with another 24.5 GW of tenders pending auction.
The report added that companies offering engineering, procurement, construction services saw a large number of projects continued in 2021 due to delays caused by the COVID-19 pandemic, land acquisition, and evacuation issues, among other issues.
Fourth Partner Energy secures Rs 250-crore funding from UK-based CDC Group.
Fourth Partner Energy, Hyderabad-based solar energy firm, said on 28.04.2021 that it has received Rs 250-crore investment from UK’s development finance institution, CDC Group. The capital would be utilised towards growing its renewable solutions platform across India and South Asia.
CDC’s investment will fund about 217 megawatt (MW) green field renewable power generation in India, avoiding 258,000 tonnes of annual carbon dioxide emissions.
Vivek Subramanian, co-founder and executive director at Fourth Partner Energy said that they will deal in growing their battery storage, energy trading and EV charging capabilities and that CDC’s funding will pave the way for the company to grow. The solar firm has a portfolio of 550 MW across its distributed and open access portfolios and has commenced operations across Sri Lanka, Bangladesh and Vietnam.
This funding also marks CDC’s foray into India’s commercial and industrial solar segment and Fourth Partner Energy’s first major round of fund raising in 2021.
In 2020, Fourth Partner Energy had secured a Rs 110 crore funding from Swiss climate action fund ResponsAbility and a Rs 126-crore investment from a consortium of European lenders, led by Symbiotics.
Fourth Partner Energy, Hyderabad-based solar energy firm, said on 28.04.2021 that it has received Rs 250-crore investment from UK’s development finance institution, CDC Group. The capital would be utilised towards growing its renewable solutions platform across India and South Asia.
CDC’s investment will fund about 217 megawatt (MW) green field renewable power generation in India, avoiding 258,000 tonnes of annual carbon dioxide emissions.
Vivek Subramanian, co-founder and executive director at Fourth Partner Energy said that they will deal in growing their battery storage, energy trading and EV charging capabilities and that CDC’s funding will pave the way for the company to grow. The solar firm has a portfolio of 550 MW across its distributed and open access portfolios and has commenced operations across Sri Lanka, Bangladesh and Vietnam.
This funding also marks CDC’s foray into India’s commercial and industrial solar segment and Fourth Partner Energy’s first major round of fund raising in 2021.
In 2020, Fourth Partner Energy had secured a Rs 110 crore funding from Swiss climate action fund ResponsAbility and a Rs 126-crore investment from a consortium of European lenders, led by Symbiotics.
