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SECI Floats Tender to Procure 1.2 GW Round-the-Clock Renewable Power

Daily News Wrap-Up: APTEL Criticizes MERC for Denying Petitioner Relief

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					</table><a href="https://www.mercomindia.com/oriano-waaree-prozeal-companies-in-2023" target="_blank" rel="noopener">Oriano, Waaree Renewable Technologies, Prozeal Green Energy, Tata Power Solar, and Gensol Engineering emerged as the top utility-scale solar engineering</a>, procurement, and construction (EPC) service providers in the calendar year (CY) 2023, according to Mercom’s India Solar Market Leaderboard CY 2023. Oriano was the top EPC player with a market share of 14.8%, followed by Waaree Renewable Technologies and Prozeal Green Energy with 13.7% and 13.6%, respectively.
<a href="https://www.mercomindia.com/thdc-invites-bids-for-pumped-storage-projects" target="_blank" rel="noopener">THDC India has invited bids for the development of 600 MW to 2,000 MW on/off stream pumped storage projects on a turnkey basis with operation and maintenance</a> for 15 years in various states in India. The last date for the submission of bids is May 13, 2024. Bids will be opened the next day. The scope of work includes selecting sites, conducting all relevant studies and investigations, and preparing preliminary feasibility reports and detailed project reports.
<a href="https://www.mercomindia.com/first-solars-thin-film-modules-dcr" target="_blank" rel="noopener">The Ministry of New and Renewable Energy (MNRE) has approved the use of thin film solar modules produced at First Solar’s (FS India Solar Ventures)</a> vertically integrated solar manufacturing facility in Tamil Nadu in projects that have a Domestic Content Requirement (DCR) mandate. DCR solar modules refer to those in which both the solar cells and modules are manufactured within India. MNRE introduced this policy to promote local manufacturing and support the ‘Make in India’ initiative.
<a href="https://www.mercomindia.com/grew-energy-solar-facility-jammu-kashmir" target="_blank" rel="noopener">Grew Energy, a renewable energy venture of the Chiripal Group, announced plans to set up a 3.2 GW solar module manufacturing facility in Kathua, Jammu &amp; Kashmir</a>. The company will invest ₹45 billion (~$ 538.8 million) to establish the fully integrated three-stage facility on 80 acres of land. Upon completion, the plant will have an annual production capacity of 3.2 GW of high-efficiency solar modules and 2.8 GW of solar ingots, wafers and cells.
<a href="https://www.mercomindia.com/east-central-railway-rooftop-solar-projects" target="_blank" rel="noopener">East Central Railway has invited bids to empanel agencies to implement 1.1 MW rooftop solar projects for the Samastipur division. The last date for submitting bids</a> is June 10, 2024. Bids will be opened the same day. The selected solar power developer will oversee all aspects of the project, including engineering, design, procurement, installation (including civil and structural components), testing, and commissioning of the solar systems.
<a href="https://www.mercomindia.com/central-railway-empanel-rooftop-solar" target="_blank" rel="noopener">The Pune Division of Central Railway has invited bids for state-wise empanelment of agencies to implement grid-connected rooftop solar power projects</a> in Maharashtra through public-private partnerships and on a design, build, finance, operate, and transfer basis. The projects would be developed in two capacity ranges — (i) above 10 kW and up to 100 kW, and (ii) above 100 kW and up to 500 kW. Bidders can quote for one or all the capacities.
<a href="https://www.mercomindia.com/india-third-solar-power-producer" target="_blank" rel="noopener">India’s power sector emissions rose 7.2% in 2023 from the previous year as a decline in hydropower generation due to droughts, particularly in the second half</a> of the year, offset gains from wind and solar output, according to a report from energy think tank Ember. Hydropower generation fell by 15% in 2023, forcing an increased reliance on coal-fired power plants to meet demand. India’s weakened monsoon spell, coupled with the country’s strong GDP growth, added nearly 190 million tons of CO2 to global emissions in 2023.
<a href="https://www.mercomindia.com/reduction-water-use-solar-cell-manufacturing" target="_blank" rel="noopener">In a recent paper published in Solar Energy, researchers said they collected data from a solar cell factory to develop and evaluate water recycling strategies</a> in the manufacture of solar Passivated Emitter and Rear Cells. A team of researchers from Fraunhofer Institute for Solar Energy Systems ISE, Technische Universität Berlin, RENA Technologies, and the University of Freiburg have, for the first time, developed a comprehensive water model of a solar cell factory to reduce water consumption and minimize wastewater production.
<a href="https://www.mercomindia.com/flux-powers-q3-net-loss" target="_blank" rel="noopener">Lithium-ion storage solutions provider Flux Power Holdings’ net loss for the third quarter of the financial year 2023-24 widened 83% year-over-year</a>  to $2.64 million on higher operating and interest expenses. The adjusted earnings before interest, taxes, depreciation, and amortization loss for the quarter was ₹1.38 million compared to a loss of $676,000, primarily attributable to the impact of lower revenue.
<a href="https://www.mercomindia.com/array-technologies-swings-to-q1-loss" target="_blank" rel="noopener">Array Technologies, a utility-scale solar tracker supplier, reported a net loss of $11.3 million in Q1 2024 from a net income of $17.2 million in the same quarter</a> last year due to lower sales and declining average selling prices. Revenue came in at $153.4 million, down 59% from $376.8 million in the prior year quarter. The timing of project deliveries drove the YoY decline in revenue.
<a href="https://www.mercomindia.com/canadian-solars-q1-profits-dip-85-lower-module-demand" target="_blank" rel="noopener">Solar module manufacturer Canadian Solar posted a net income of $12.35 million in the first quarter (Q1) of 2024, an 85.25% YoY drop from $83.71 million</a> as the company continued to tackle pricing pressures in light of lower module average selling prices. The drop in profit was offset by the lower manufacturing costs and higher contribution from battery energy storage solutions sales. Canadian Solar’s operating expenses during the quarter increased to $203.68 million, an 18.15% YoY increase from $172.4 million.
<a href="https://www.mercomindia.com/sma-solar-net-income-plunges-on-increased-costs" target="_blank" rel="noopener">Germany-based solar energy equipment supplier SMA Solar Technology reported a net income of €28.5 million (~$30.6 million), down by 44.8% YoY from €51.7 million</a> (~$55.6 million) in Q1 2023. Earnings before interest, taxes, depreciation, and amortization amounted to €49.9 million (~$53.6 million), down by 16.8% YoY from €60.0 million (~$64.5 million) in the corresponding quarter of the previous year.
<a href="https://www.mercomindia.com/fluence-energy-q2-net-loss-narrows" target="_blank" rel="noopener">Fluence Energy, a utility-scale energy storage firm, reported a 66% narrower net loss of $12.9 million in the second quarter of FY 2023-24 from $37.4 million</a> last year as it reigned in its operating expenses. Despite an 11% fall in quarterly revenue from $698 million last year to $623 million in the second quarter, Fluence’s gross profit more than doubled from $30 million last year to $64 million. Gross profit margin improved to about 10.3%, compared to 4.4% for the same quarter last year.
<a href="https://www.mercomindia.com/sunrun-narrows-loss-in-q1-2024" target="_blank" rel="noopener">U.S-based solar energy, battery, and storage service provider Sunrun incurred a net loss of $87.8 million in Q1 of 2024 due to the company transitioning</a> from traditional tax equity to tax credit sales, causing it to invest $181 million in working capital. The company expects to recover this investment in the next quarter as cash from tax credit sales is recovered via arrears, while cash from tax credit allocation is earned back at the time of installation.

Daily News Wrap-Up: Leading Solar EPC Companies in 2023

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					</table>India&#8217;s power sector emissions rose 7.2% in 2023 from the previous year as a decline in hydropower generation due to droughts, particularly in the second half of the year, offset gains from wind and solar output, according to a report from energy think tank <a href="https://ember-climate.org/" target="_blank" rel="noopener">Ember</a>.
Hydropower generation fell by 15% in 2023, forcing an increased reliance on coal-fired power plants to meet demand. Around a quarter of the rise in coal generation was caused by the hydropower shortfall, with the remaining increase due to rapidly growing electricity demand, partly boosted by heatwaves and greater cooling requirements.
India&#8217;s weakened monsoon spell, coupled with the country&#8217;s strong GDP growth, <a href="https://www.mercomindia.com/india-adds-190-mt-of-co2-iea-report" target="_blank" rel="noopener">added</a> nearly 190 million tons of CO2 to global emissions in 2023, according to a report by the International Energy Agency. However, without the growing deployment of clean energy technologies since 2019, the growth of emissions would have been three times larger, the IEA said. According to Ember, India overtook Japan to become the third-largest solar power generator globally in 2023. But growth in clean electricity sources like wind and solar met only 30% of the increased demand.
<img loading="lazy" decoding="async" class="aligncenter wp-image-66089 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/05/Screenshot-2024-05-10-171739.png" alt="Global power sector emissions" width="509" height="388" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/05/Screenshot-2024-05-10-171739.png 509w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/05/Screenshot-2024-05-10-171739-300x229.png 300w" sizes="(max-width: 509px) 100vw, 509px" />
Wind and solar&#8217;s share in India&#8217;s electricity mix reached a record high of 9.9%, or 196 TWh, in 2023, compared to the global average of 13.4%.
Despite progress in renewable energy deployment, the report warned that wind, solar, and other low-carbon sources are not growing fast enough to meet India&#8217;s burgeoning power demand, leading to continuously rising emissions.
Power demand rose 5.4% to 99 TWh in 2023 compared to the previous year, which was more than twice the global pace. India&#8217;s clean electricity growth has surpassed the demand increase in only two previous years: 2019 due to good hydro conditions and 2020 because of a fall in pandemic-induced demand.
Coal Remains King
While India has ambitious renewable energy targets and is one of the few countries planning to triple its non-fossil fuel power capacity by 2030, coal remains dominant in meeting the nation&#8217;s energy needs.
Over the past two decades, coal power generation in India has increased nearly fourfold, from 390 TWh in 2000 to 1,480 TWh in 2023. The share of coal in the overall generation mix also rose from 68% to 75% during this period.
India had the second-highest increase in coal power globally in 2023 after China. The country&#8217;s emissions intensity, described as grams of carbon dioxide released per unit of energy produced, stood at 713 gCO2/kWh, higher than the global average.
The report said India needs to accelerate the deployment of clean energy sources to meet rising power demand without increasing emissions. Achieving this would require an annual growth rate of 27% for solar and 16% for wind.
Solar installations <a href="https://www.mercomindia.com/plagued-by-project-delays-plummet-by-44-in-2023" target="_blank" rel="noopener">dropped</a> 44.1% in 2023 due to project delays, with a capacity of 7.5 GW added against 13.4 GW in 2022, according to Mercom India&#8217;s <a href="https://www.mercomindia.com/product/q4-2023-india-solar-market-update" target="_blank" rel="noopener">Q4 &amp; Annual 2023 India Solar Market Update</a>.
India <a href="https://www.mercomindia.com/india-added-wind-capacity-yoy-increase">added</a> 1.2 GW of new wind energy capacity in the first quarter of 2024, a 56% surge from 737.9 MW last year, according to <a href="https://www.mercomindia.com/research">Mercom India Research</a>.
Global Renewables Expansion
In 2023, the growth in solar and wind took the world past 30% renewable electricity for the first time. Renewables have expanded from 19% of global electricity in 2000, driven by an increase in solar and wind from 0.2% in 2000 to a record 13.4% in 2023.
<img loading="lazy" decoding="async" class="aligncenter wp-image-66090 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/05/Screenshot-2024-05-10-172438.png" alt="Solar in global electricity mix" width="500" height="387" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/05/Screenshot-2024-05-10-172438.png 500w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/05/Screenshot-2024-05-10-172438-300x232.png 300w" sizes="(max-width: 500px) 100vw, 500px" />
China was the main contributor in 2023, accounting for 51% of the additional global solar generation and 60% of new global wind generation. Combined with nuclear, the world generated almost 40% of its electricity from low-carbon sources in 2023. Consequently, the CO2 intensity of global power generation reached a new record low, 12% lower than its peak in 2007.
The Ember report said global electricity demand rose to a record high in 2023, with an increase of 627 TWh, equivalent to adding the entire demand of Canada (+607 TWh). Over half of the electricity demand rise in 2023 was from five technologies: electric vehicles, heat pumps, electrolyzers, air conditioning, and data centers. The spread of these technologies will accelerate the growth in electricity demand.
The next phase of the energy transition over the coming decade will mean a permanent decline in fossil fuel use in the power sector at a global level is now inevitable, leading to falling sector emissions, the report said.

India Now Third Largest Solar Power Producer But Emissions Rise in 2023: Report

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					</table>Hybrid power projects are emerging as key players in Türkiye&#8217;s pursuit of solar energy goals because of their capability to generate electricity from both primary and secondary sources connected to the grid at the same location, an energy think tank, <a href="https://ember-climate.org/" target="_blank" rel="noopener">Ember</a>, reported.
The implementation of hybrid power projects and the conversion of existing power projects to hybrids where solar is the secondary source became possible in Türkiye through a regulatory amendment in 2020.
As of the end of 2023, solar was the secondary source for all 240 operational and planned hybrid power projects in Türkiye.
The strategic integration of solar power provides additional electricity generation, optimizing infrastructure costs by connecting to the grid from the same point as the primary source.
According to the report, hybrid solar power projects can help Türkiye achieve its clean energy targets by allowing solar potential to be utilized together with other renewable generation.
The report delves into the installed capacity, project pipeline, and allocated grid capacity of hybrid solar power projects in Türkiye as of the end of 2023.
Solar Capacity Surpasses Wind
Officially reported installed capacity statistics indicate Türkiye&#8217;s solar capacity reaching 11.7 GW and wind capacity at 11.8 GW by the end of 2023. However, these figures exclude the secondary solar capacity installed in hybrid power projects.
According to the Energy Market Regulatory Authority (<a href="https://erranet.org/member/emra-turkiye/" target="_blank" rel="noopener">EMRA</a>), Türkiye has incorporated 510 MW of secondary solar capacity as of 2024, propelling total solar capacity to surpass wind at 12.2 GW.
<img loading="lazy" decoding="async" class="aligncenter wp-image-63736" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/Ember-report-on-Turkey-Hybrid-Solar.png" alt="Ember report on Turkey Hybrid Solar" width="600" height="375" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/Ember-report-on-Turkey-Hybrid-Solar.png 748w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/Ember-report-on-Turkey-Hybrid-Solar-300x187.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/Ember-report-on-Turkey-Hybrid-Solar-650x406.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/Ember-report-on-Turkey-Hybrid-Solar-624x390.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/Ember-report-on-Turkey-Hybrid-Solar-600x375.png 600w" sizes="(max-width: 600px) 100vw, 600px" />
Ember states that the absence of hybrid capacity in official statistics undermines the accuracy of analysis and planning. Constituting 4.2% of total installed solar capacity, the inclusion of hybrid solar capacity in official statistics is crucial for a more comprehensive understanding of Türkiye’s renewable energy landscape.
Hybrid solar capacity predominantly integrates with wind power installations, with 63% of the secondary solar capacity installed in 14 projects where wind serves as the primary source.
The synergy between solar and wind, characterized by their inverse hourly generation patterns, allows for a more stable generation profile in wind-solar hybrid power projects.
While hydro comes second after wind with 80 MW of secondary installed solar capacity, all of this capacity is concentrated in the Aşağı Kaleköy Hydroelectric Power Project (HEPP), the sole hydro-solar hybrid project in Türkiye.
Regional Concentration and Hybrid Solar Generation
Hybrid power projects are distributed across 28 provinces in Türkiye, with significant capacity concentrated in specific regions.
Provinces such as Uşak, Bingöl, and Sivas host the highest hybrid solar capacity, accounting for 42% of the total installed capacity. Furthermore, Konya and Karaman, featuring both wind and high solar potential, contribute an additional 15% to the overall capacity.
The estimated annual generation of hybrid solar power projects, considering installed capacity and solar potential, is close to 800 GWh. This represents 4.2% of Türkiye’s total solar energy production in 2023.
The report noted that despite regulatory amendments in October 2023, which require reporting electricity generation from secondary sources and distinguishing solar and wind capacities at the regional level, challenges persist.
Hybrid solar generation data remains included as part of the primary source in official data before November 2023, impacting the accuracy of past generation records.
According to the report, despite the challenges, Türkiye&#8217;s hybrid solar capacity holds promise. With permitting processes completed for a capacity four times the current installed capacity, there is 1.9 GW of approved hybrid solar capacity yet to be installed, equivalent to 16% of all installed solar capacity in the country.
Floating Solar as a Catalyst for Hybrid Capacity Development
Exploring the potential of floating solar, Türkiye currently has 80 GW of untapped capacity. Despite this, no floating solar projects have been integrated into hybrid power projects, except for the Aşağı Kaleköy HEPP with ground-mounted solar modules.
Türkiye took a significant step towards utilizing floating solar potential through a bill submitted in January that allowed floating solar installations on dammed hydro reservoirs.
The bill paved the way for the designation of renewable energy resource areas on power project reservoirs, enabling floating solar tenders alongside the installation of secondary solar capacity on water surfaces at hybrid power plants.
Transparent and Comprehensive Energy Strategy
While Türkiye has made strides in incorporating hybrid power projects into its energy landscape, challenges persist, including the need for transparent capacity allocation processes and comprehensive planning.
A regulatory amendment in October 2023 addressing solar and wind capacities at the regional level was a positive step.
Ember stated that for Türkiye to reach its 53 GW solar capacity target by 2035, a holistic energy strategy that considers the role of hybrid power projects and floating solar power and anticipates their installations is crucial.
The journey to unlock Türkiye&#8217;s solar potential continues, with hybrid power projects poised to be instrumental in achieving the nation&#8217;s renewable energy ambitions.
In an earlier webinar <a href="https://www.mercomindia.com/insurance-prominence-wind-solar-hybrid-projects-centerstage" target="_blank" rel="noopener">hosted</a> by Mercom India, industry experts discussed how wind-solar hybrid projects are a practical solution to tackle the intermittency issues of standalone wind and solar energy sources and are poised to play a critical role as a generation source going forward.
Mercom earlier <a href="https://www.mercomindia.com/top-developments-wind-hybrid-market-2023" target="_blank" rel="noopener">reported</a> the top developments that influenced the wind and hybrid power market in India during 2023.

Türkiye’s Hybrid Projects Help Solar Surpass Wind Capacity with 11.7 GW

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					</table>Solar and wind energy comprised 12% of the electricity generated globally in 2022, leading to a record low carbon intensity of 436 gCO2/kWh, according to independent think tank <a href="https://ember-climate.org/" target="_blank" rel="noopener">Ember</a>.
The growth in wind and solar generation (~557 TWh) alone met 80% of global electricity demand growth in 2022 (~694 TWh).
All clean energy sources, including renewables and nuclear, comprised 39% of global electricity.
Solar and wind generation grew by 24% and 17%, respectively. Over 60 countries generated more than 10% of their electricity from wind and solar.
However, other clean electricity sources dropped for the first time since 2011 due to a fall in nuclear output and fewer new nuclear and hydropower projects coming online.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/Ember-report.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-52599 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/Ember-report.png" alt="Ember report" width="700" height="456" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/Ember-report.png 700w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/Ember-report-300x195.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/Ember-report-650x423.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/Ember-report-624x406.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/04/Ember-report-600x391.png 600w" sizes="(max-width: 700px) 100vw, 700px" /></a>
Emissions drop
Wind and solar power are helping to slow the rise in power sector emissions, with the growth in these sources meeting 80% of global electricity demand growth in 2022. If all electricity from wind and solar came from fossil fuels, emissions would have been 20% higher.
Clean power growth is predicted to surpass electricity demand growth in 2023, with a small fall in fossil generation (-47 TWh or -0.3%). As wind and solar power expand, subsequent years are expected to see larger declines in fossil generation.
Power sector emissions hit a new high due to increased electricity demand in 2022, with coal generation up by 1.1%. Gas power generation fell marginally (-0.2%) in 2022–for the second time in three years– in the wake of high gas prices globally. Gas-to-coal switching was limited in 2022 because gas was already mostly more expensive than coal in 2021.
Only 31 GW of new gas power plants were built, the lowest in 18 years, while coal plant closures decreased as countries sought to maintain backup capacity during the energy transition.
However, 2022 saw the lowest number of coal plant closures in seven years as countries look to maintain backup capacity, even as the transition speeds up.
Last October, the International Energy Agency (IEA) had forecast that global CO2 emissions from fossil fuel combustion would <a href="https://mercomindia.com/co2-emissions-from-fossil-drop-due-to-of-renewables-iea/" target="_blank" rel="noopener">grow</a> by just under 1% this year as the strong expansion of renewables and electric vehicles will prevent a sharper rise.
IEA also <a href="https://www.mercomindia.com/renewables-account-global-power-capacity-iea" target="_blank" rel="noopener">estimated</a> that renewable energy would account for 90% of the global power capacity increase in 2022. The report predicted that around 280 GW of new renewable energy capacity will be operational in 2022.

Wind, Solar Produce a Record 12% of Global Power Generation in 2022

According to the latest report published by the energy think tank <a href="https://ember-climate.org/" target="_blank" rel="noopener">Ember</a> and <a href="https://climateriskhorizons.com/" target="_blank" rel="noopener">Climate Risk Horizons</a>, 27 GW of proposed new coal power plants in India could deplete scarce public resources, lock consumers onto high electricity prices and threaten India&#8217;s renewable energy ambitions.
<a href="https://mercomindia.com/wp-content/uploads/2021/09/Picture1-2.jpg"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-28889" src="https://mercomindia.com/wp-content/uploads/2021/09/Picture1-2.jpg" alt="" width="524" height="704" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/09/Picture1-2.jpg 524w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/09/Picture1-2-223x300.jpg 223w" sizes="(max-width: 524px) 100vw, 524px" /></a>
The report suggests that India does not require additional coal capacity to meet its power demand growth by FY 2030. Surplus coal plants can be scrapped without sacrificing the power infrastructure&#8217;s ability to meet future demand.
The report further states that India can free up ₹2.47 trillion (~$33.50 billion) in capital expenditure and save ₹432.19 billion (~$5.83 billion) annually by investing in renewable energy and storage instead of coal projects.
India&#8217;s total installed power capacity currently stands at 387 GW, with 209 GW hard coal and lignite, 94 GW other firm capacities such as gas, diesel, large hydro, nuclear, bio-power, small hydro, and 84 GW of wind and solar combined.
If India retires coal plants older than 25 years, then roughly 54 GW of coal-powered plants will close by FY 2030. If the 33 GW currently under construction are completed on schedule and no other new coal plants are built, India&#8217;s coal power capacity will be 188 GW by FY 2030.
&#8220;The 27 GW of new coal being proposed at an investment value of ₹2.47 trillion (~$33.50 billion) represent a significant threat to the Indian economy, not just in terms of misallocation of scarce capital, but also due to the lock-in effect of expensive electricity and ancillary impacts on the renewable energy industry. This must be avoided, especially as the Indian financial sector is yet to recover from the non-performing asset crisis created by excessive coal construction in the last decade,&#8221; said Ashish Fernandes, CEO, Climate Risk Horizons.
According to the Central Electricity Authority&#8217;s (CEA) forecast in the <a href="https://cea.nic.in/wp-content/uploads/2020/04/nep_jan_2018.pdf" target="_blank" rel="noopener">13th National Electricity Plan (NEP13</a>), India&#8217;s electricity demand in FY 2022 is expected to reach 1,566 TWh, which implies that the required power demand will grow by 5% every year from financial year (FY) 2017 to FY 2022.
India did witness this growth rate in FY 2018 and 2019. However, the rate rose by only 1% in FY 2020 due to a broader economic slowdown, ultimately falling by 0.5% in FY 2021 due to the COVID-19 pandemic.
This year, India&#8217;s electricity demand would have to rise by 13% to meet the NEP13 forecast.
India needs to add about 39 GW of new renewable energy annually to reach the 450 GW target by FY 2030, from the current target of <a href="https://mercomindia.com/renewable-energy-installations-india/" target="_blank" rel="noopener">100 GW</a>. Although the current build rate is falling short, things are looking positive as commitments made by ten different power generators in India now add up to 301 GW, the report said.
<a href="https://mercomindia.com/wp-content/uploads/2021/09/Picture2-2.png"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-28890" src="https://mercomindia.com/wp-content/uploads/2021/09/Picture2-2.png" alt="" width="602" height="382" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/09/Picture2-2.png 602w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/09/Picture2-2-300x190.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/09/Picture2-2-600x381.png 600w" sizes="(max-width: 602px) 100vw, 602px" /></a>
According to the report, even if India&#8217;s power demand grows 5% annually, coal-fired generation in FY 2030 will be lower than in FY 2020 as long as India achieves its non-coal generation targets. Essentially, more coal capacity beyond what&#8217;s already under construction isn&#8217;t needed to meet the aggregate demand growth by FY 2030.
The report argues that a 5% annual growth in power demand up to FY 2030 would result in a demand of 2,144 TWh in FY 2030, up from 1,381 TWh in FY 2021. Coal-fired generation in FY 2030 would be 984 TWh, 10 TWh less than in FY 2020; so, the power demand growth by FY 2030 can come from renewable energy and non-coal generation.
Assuming India also delivers on the non-coal capacity targets for FY 2030, other firm capacities will increase to 157 GW, including battery storage, while wind and solar will add up to 420 GW.
By FY 2030, India will have about 346 GW of &#8220;firm&#8221; power capacity in addition to 420 GW of variable renewable energy to meet an estimated peak demand of 301 GW. India can meet peak demand in FY 2030 even if it retires its old coal plants and stops building new coal beyond those under construction.
A recent <a href="https://ember-climate.org/project/global-electricity-review-h1-2021/" target="_blank" rel="noopener">report</a> published by Ember has revealed that global power sector emissions have increased above pre-pandemic levels due to a rise in electricity demand. The increased demand was mostly met by wind and solar power (57%) and by an increase in emissions-intensive coal power (43%) that caused the rise in CO2 emissions.
The Ember report comes in the wake of a recent report of the Intergovernmental Panel on Climate Change which <a href="https://mercomindia.com/rapid-cuts-in-ghg-emissions-needed/" target="_blank" rel="noopener">warned</a> that time is running out for the world to avoid the worst impacts of climate change.

New Coal Plants to Exhaust ₹2.47 Trillion, Investing in Renewables Can Save ₹432 Billion

A new <a href="https://ember-climate.org/project/global-electricity-review-h1-2021/" target="_blank" rel="noopener">report</a> published by energy think tank <a href="https://ember-climate.org/" target="_blank" rel="noopener">Ember</a> has revealed that global power sector emissions have increased above pre-pandemic levels.
Global power sector emissions rebounded in the first half (1H) of 2021, increasing 12% from the lows seen in 1H-2020 when Covid-19 lockdowns went into effect. The emissions are now 5% above the pre-pandemic levels of 1H-2019, while electricity demand also rose 5%.
The increased global electricity demand was mostly met by wind and solar power (57%) but also by an increase in emissions-intensive coal power (43%) that caused the rise in CO2 emissions.
The Ember report comes in the wake of a recent report of the Intergovernmental Panel on Climate Change which <a href="https://mercomindia.com/rapid-cuts-in-ghg-emissions-needed/" target="_blank" rel="noopener">warned</a> that time is running out for the world to avoid the worst impacts of climate change.
The report compares the first six months of 2021 to the same period in 2019 to show for the first time how the electricity transition has changed as the world rebounds from the impact of the pandemic in 2020. For the first time, wind and solar generated over a tenth of global electricity and overtook nuclear generation.
<a href="https://mercomindia.com/wp-content/uploads/2021/08/Picture6.png"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-28519" src="https://mercomindia.com/wp-content/uploads/2021/08/Picture6.png" alt="" width="602" height="358" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/08/Picture6.png 602w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/08/Picture6-300x178.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/08/Picture6-600x357.png 600w" sizes="(max-width: 602px) 100vw, 602px" /></a>
In India, things looked better as the continued impact of the pandemic in 1H-2021 kept electricity demand muted and coal rise minimal. Electricity demand in 1H-2021 was only 3% higher than 1H 2019 levels. This is one of the lowest increases in developing Asia as pandemic restrictions continued. Almost 72% of India&#8217;s increase in demand was met by growth in solar and wind, which rose by 47% and 9%, respectively.
On the negative side, however, coal generation increased by 4% to fill the remaining gap in demand and reduce hydroelectricity generation.
&#8220;Catapulting emissions in 2021 should send alarm bells across the world. We are not building back better; we are building back badly,&#8221; said Dave Jones, Global Programme Lead, Ember. &#8220;A super-fast electricity transition this decade is critical to limit global heating to 1.5 degrees. The electricity transition is happening but with little urgency: emissions are going in the wrong direction.&#8221;
Much of the rise in emissions resulted from massively increased demand in developing countries, particularly in Asia. In China, electricity demand rose by 14% from 1H-2019 to 1H-2021 and is approaching EU per capita levels. Only 29% of that rise in demand was met by wind and solar, while over two-thirds (68%) was met by coal power. Coal power increased by 337 TWh, more coal generation than was used by the whole of the EU in 1H-2021. China&#8217;s share of global coal generation rose from 50% before the pandemic to 53%.
&#8220;Developing Asia must focus its attention on meeting all demand growth with new zero-carbon electricity as a first initial step of the region&#8217;s journey towards 100% clean electricity before mid-century,&#8221; said Dr. Muyi Yang, Senior Analyst &#8211; Asia, Ember. &#8220;Developing Asia can leapfrog fossils and move straight to cheap, clean renewables. But this is contingent on whether the region can further accelerate its inexorable march of clean electricity. At the same time, use electricity more efficiently.&#8221;
Despite having pledged to propel their economies into a new green normal, most countries are yet to achieve a truly green recovery for their power sector. Although Norway and Russia appear in the &#8216;green recovery&#8217; quadrant, this is due to temporary factors rather than a significant structural improvement in their electricity sector.
Many countries had a &#8216;grey recovery,&#8217; with high electricity demand growth, which was met in part with wind and solar but also extra coal generation, leading to higher power sector CO2 emissions. Some of the &#8216;grey recovery&#8217; countries are Mongolia, China, Bangladesh, Vietnam, Kazakhstan, Pakistan, and India.
Earlier this year, the UN Environment Program <a href="https://mercomindia.com/investing-climate-economic-un-report/" target="_blank" rel="noopener">released</a> a report that said nations must boost their efforts to adapt to the changing climate scenario to avoid dire consequences in the future.

Global Power Sector Emissions Rise 5% Above Pre-Covid Levels: Report

The strong growth in wind and solar power capacity additions in 2020, despite the pandemic, resulted in a record fall in coal power globally, according to the climate and energy think tank <a href="https://ember-climate.org/" target="_blank" rel="noopener">Ember</a>. Ember has released a report, Global Electricity Review 2021, which gives an account of the electricity data from around the world.
Wind and Solar Give Tough Competition to Coal
The report revealed that almost a tenth of global electricity was generated by wind and solar in 2020, showing a robust increase of 15% (+314 TWh) compared to what they accounted for in 2019. The two green power modes doubled their presence globally in the last five years.
Wind and solar produced 9.4% of the world’s electricity in 2020. Its share has more than doubled from 4.6% in 2015 when the Paris Climate Agreement was signed.
Over the last five years, wind and solar power’s combined market share increased by 4.8 percentage points (from 4.6% to 9.4%), and coal’s market share fell by 3.9 percentage points (from 37.8% to 33.8%).
The global market share of most other fuel types has not changed significantly.
The growing share of wind and solar resulted in a record fall of 4% (-346 TWh) in coal power consumption, the report explained. The drop was similar to the rise in wind and solar power of 314 TWh, more than the U.K.’s entire electricity production. This overshadowed the aggregate changes across global electricity: demand fell 23 TWh, gas and oil fell 12 TWh. A rise in hydro of 94 TWh was mostly countered by a fall of 104 TWh of nuclear. In comparison, coal collapsed almost everywhere, with large falls in the U.S. (-20%), European Union (EU) (-20%), and even India (-5%).
<img loading="lazy" decoding="async" class="aligncenter size-full wp-image-26413" src="https://mercomindia.com/wp-content/uploads/2021/05/Ember-Wind-Solar-2020.png" alt="Ember Wind Solar 2020" width="1225" height="719" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/05/Ember-Wind-Solar-2020.png 1225w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/05/Ember-Wind-Solar-2020-300x176.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/05/Ember-Wind-Solar-2020-768x451.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/05/Ember-Wind-Solar-2020-650x382.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/05/Ember-Wind-Solar-2020-624x366.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/05/Ember-Wind-Solar-2020-600x352.png 600w" sizes="(max-width: 1225px) 100vw, 1225px" />
The study further detailed that the reason behind the green trend is the drop in electricity demand (-0.1%) due to the Covid-19 pandemic that kept 2020 in its grip, adding that this was the first fall since 2009.
In a <a href="https://mercomindia.com/renewables-overtake-fossil-fuels-europe/" target="_blank" rel="noopener">report</a> released in February this year, Ember had pointed out that renewables overtook fossil fuels as the EU’s primary source of electricity due to the rapid growth of clean energy and decline of coal power. The report said that renewables generated 38% of Europe’s electricity in 2020, while fossil fuels like gas and coal produced 37% of power in 2020.
Renewables Supplied a Third of Africa’s Electricity Demand
According to the report, among Africa’s leading economies, Morocco and Kenya had the highest levels of wind and solar, generating 16% and 15% of their electricity, respectively, from wind and solar in 2019.
However, many of Africa’s leading economies are yet to realize the potential of wind and solar power, said the survey. In 2019, Nigeria and Algeria generated less than 1% of their electricity from wind and solar, while Egypt increased to 3% in 2019 after recent growth in solar power. South Africa generated 6% of its electricity from wind and solar in 2020, tripling since 2015, but still below the world average of 9.4%, the report noted.
Global Shift from Coal Power Needs to Pick Up Pace
The report suggested that clean electricity is not yet being produced fast enough to keep pace with rising electricity demand. Even as wind and solar have risen to nearly a tenth of world electricity, their growth has slowed in recent years, the study pointed out. The 4% dip in coal generation during the pandemic year of 2020 is still insufficient to meet climate targets, the report analyzed.
According to the report, many countries under the Organization for Economic Co-operation and Development umbrella are witnessing coal collapse. The study noted that in EU-27, coal generation has almost halved since 2015 (-48%), and the U.S. saw a similar fall (-43%). Smaller, more recent falls have happened in Japan, South Korea, Australia, Canada, and Mexico.
However, these falls over the last half-decade were almost entirely offset by rises in Indonesia, Turkey, China, and India. That meant, even including 2020’s record 4% fall, global coal generation was only 0.8% lower in 2020 than in 2015.
Industry experts believe that governments and financial institutes have an important role in bridging the gap and ensuring a green transition. With investors such as Sumitomo Mitsui Financial Group, JP Morgan Chase, Mizuho Financial Group, among others, <a href="https://mercomindia.com/japanese-bank-says-no-to-financing-new-coal-powered-projects/" target="_blank" rel="noopener">pledging</a> to stop funding new coal-fired power projects, more policies seem to be committing to green energy.

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