Month in a Minute Top Headlines from Indian Renewable Sector in July 2022

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Here is a recap of some of the most important headlines from July 2022:

India’s installed renewable energy capacity, including large hydro projects, stood at 159.81 GW, accounting for a 40.15% share of the overall power capacity mix at the end of the second quarter (Q2) of the calendar year (CY) 2022, according to data from the Central Electricity Authority, Ministry of New and Renewable Energy, and Mercom’s India Solar Project Tracker. The share of renewable energy increased marginally from the previous quarter when the total installations stood at 155.26 GW, accounting for 39% of the overall power capacity mix.

Various government agencies floated solar tenders aggregating to about 9.13 GW in Q2 CY 2022, an increase of 80% compared to the previous quarter, according to Mercom India Research. Tender announcements were up by 8% year-over-year (YoY) compared to the same period last year. Auctions were held for almost 4 GW of solar projects in Q2 2022, a 54% increase compared to Q1 2022. Auction activity increased by a massive 788% compared to the same period last year.

India added 430.45 MW of wind power capacity in Q2 of CY 2022, a 57% quarter-over-quarter (QoQ) increase compared to 275 MW installed in Q1 2022. The cumulative wind installations in the country stand at 40.8 GW, according to the data released by Ministry of New and Renewable Energy (MNRE). The YoY installations increased by 80% compared to 239.6 MW in Q2 2021. Tamil Nadu, Gujarat, Karnataka, and Maharashtra continued to be the leading markets for wind, accounting for 72.3% of the cumulative capacity. In Q2 2022, Gujarat topped the list adding nearly 210.2 MW of wind capacity.

Tata Power has planned to spend over ₹750 billion (~$9.46 billion) in the next five years on renewables. Tata Power has a consolidated capital expenditure of ₹140 billion (~$1.76 billion) with ₹100 billion (~$1.26 billion) in renewables. The company is looking to scale its generation capacity to over 30 GW by the financial year 2027 from the current 13.5 GW. It aims to increase its clean energy portfolio from 34% to 80% by 2030. The company also aims to become carbon net-zero by 2045, water-neutral by 2030, and zero waste-to-landfills before 2030.

Renewable energy producer ReNew Energy Global announced that it had refinanced its 2024 maturity dollar-denominated bonds with amortizing project debt from an Indian non-banking financial company. ReNew issued bonds worth $525 million in 2019, which were set to mature in 2024. The refinancing has cut the bonds’ Indian rupee interest cost by 200 basis points, with the interest rate fixed for three years while pushing the maturity to the end of the fiscal year 2027.

Electric two-wheeler maker iVOOMi Energy has announced an investment of ₹2 billion (~$25 million) in electric two-wheeler manufacturing and related research and development. The R&D facility will work on accelerating battery performance. The company will introduce battery modules, swappable batteries, and core battery technology. The manufacturing facility in Pune, Maharashtra, will be operational from March 2023.

Bengaluru-based electric vehicle manufacturer Ola Electric announced that it will invest $500 million in setting up a state-of-the-art Battery Innovation Center in Bengaluru. The center would be equipped with more than 165 unique and advanced lab apparatuses to cover all aspects of cell-related research and development.

The Solar Energy Corporation of India (SECI) disbursed ₹9.13 billion (~$114.78 million) to solar and wind power generators for the power purchased in June 2022. The disbursed amount accounted for nearly 97.5% of the total paid by the nodal agency during the month. The agency disbursed a total of ₹9.36 billion (~$117.7 million), including solar and wind power purchases, reimbursements to developers, duties, and other remunerations. The nodal agency released ₹15.48 million (~$194,585) as a subsidy under the rooftop program and ₹50.63 million (~$636,445) towards transmission charges.

Retail sales of electric vehicles (EVs) clocked 390,399 units in the first half (1H) of CY 2022. The sales represent a 333% YoY growth compared to the 90,102 units sold in the same period last year, per the data released by the Ministry of Road Transport and Highways through its Vahan Dashboard. The EV sales (390,399) in 1H 2022 surpassed the sale of EVs in the entire year of 2021 (311,420).