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					</table>High-power string inverters can significantly reduce the balance of system (BOS) costs compared to central inverter solutions as they require fewer inverters per block and have a better DC-to-AC conversion ratio, a panel of industry experts at a webinar hosted by Mercom India said.
The impact of inverters on project performance, stability, and the levelized cost of energy (LCOE) is substantial.
The webinar, titled &#8220;How to Save Costs with High Power String Inverters in Large Scale Projects,&#8221; highlighted how high-capacity string inverters could help save costs for large-scale solar projects.
The panelists were Nilesh Mahajan, CEO and Director of <a href="https://roofsol.com/" target="_blank" rel="noopener">Roofsol Energy</a>; Yogish HN, AVP-BD at <a href="https://enerparc.in/" target="_blank" rel="noopener">Enerparc</a>; Kannan Devaraji, Senior Manager at Enerparc; Gajanan Sawant, Senior Manager – Design and Engineering at <a href="https://www.cleanmax.com/" target="_blank" rel="noopener">Cleanmax</a>; Sunil Panigrahi, Country Manager – India at <a href="https://en.hopewind.com/" target="_blank" rel="noopener">Hopewind</a> and Rakesh B P, Solution Manager at Hopewind.
Priya Sanjay, Managing Director, Mercom India, moderated the session.
Cost Savings
As high-power string technology requires fewer inverters per block, the costs associated with cabling, combiner boxes, junction boxes, mounting structures, and other electrical equipment are reduced. This brings down installation, operations, and maintenance expenses over the project&#8217;s lifecycle.
&#8220;We have calculated that using high-power string inverters in large-scale projects can save around $8,000 to $9,000 per MW in costs,&#8221; said Panigrahi . &#8220;For a 100 MW project, the savings become really substantial when you multiply across the entire capacity.&#8221;
&#8220;On the DC side, you can reduce the number of cables, and on the AC side, you can reduce the cable size. By this, you can reduce the project cost,&#8221; he added.
Apart from reduction in capital costs, developers also look at savings in LCOE over the life of the inverter, explained Nilesh Mahajan. &#8220;At the end of the day, we also want to see how the inverter will perform. Apart from capital costs, developers and EPC contractors also look at the costs associated with the inverters after installation, during maintenance, and the lifespan of the inverters and the critical components that need to be replaced.&#8221;
Better Conversion Ratios
Another key advantage highlighted was the higher AC/DC conversion ratios achievable with string inverters. &#8220;This higher DC overloading allows capturing more energy from the solar modules and accounts for any mismatch losses or degradation over time,&#8221; explained Rakesh.
Distributed string inverter configurations also provide more design flexibility than centralized solutions. If a fault occurs in one string, the entire plant is not shut down, unlike a central inverter.
Flexibility in OEMs
The introduction of high-power string inverters also offers increased flexibility when using various original equipment manufacturers (OEMs). Implementing high-power string inverters allows for the integration of multiple module technologies and ratings, providing developers and EPC firms greater flexibility.
&#8220;By introducing high power inverters, we have the flexibility to use different OEM and different technology because module costs are one of the deciding factors in the system as well as BOS costs,&#8221; said Kannan Devaraji.
Earlier conventional solar setups with a single central inverter could utilize only a single OEM of modules, limiting options when it came to costs and supply timelines.
&#8220;The cost and supply of a module also plays a role in overall costs,&#8221; added Devaraji.
Technological Challenges
However, string inverters also face technology challenges that need to be addressed. A major concern was derating, especially for hot, arid regions like Rajasthan, where temperatures routinely exceed 50°C. Developers stressed the need for more intelligent cooling systems.
&#8220;One of the major criteria before selecting an inverter is how it performs in extreme temperatures, along with reliability and safety aspects,&#8221; said Mahajan. &#8220;Certification is another aspect we look for. Since the projects are connected to the grid, we have to comply with the requirements of the grid operator,&#8221; he added.
Another requirement is faster response time to support dynamic reactive power requirements for large plants. Gajanan Sawant felt that under one-second response time is needed to provide grid services like frequency regulation, as opposed to about five seconds currently.
Highlighting the advantage of string inverters when it comes to response time, Rakesh explained that a lower number of inverters usually leads to faster response time. &#8220;When you connect a lower number of inverters, the response time is faster.&#8221;
Cyber security to safeguard the distributed assets from potential hacking was another area of focus for the panelists. They felt that inverters must have advanced security measures, certifications, and secure servers to prevent any data breaches or manipulation attacks.
Later this month, Mercom will host a <a href="https://www.mercomindia.com/webinars/how-to-protect-renewable-energy-projects-from-commercial-cyber-threats-with-insurance" target="_blank" rel="noopener">webinar</a> on how insurance can help protect renewable energy projects from commercial cybersecurity attacks.
Last year, Mercom <a href="https://www.mercomindia.com/smarter-inverters-crucial-from-advanced-solar-modules" target="_blank" rel="noopener">hosted</a> a webinar exploring the rising demand for high-capacity string inverters and larger solar modules with a power rating of 600W+. The webinar found that the shift to larger modules had prompted upgrades in project designs and other equipment to accommodate higher generation.
Sign up for Mercom&#8217;s next webinar on &#8211; <a href="https://www.mercomindia.com/webinars/how-to-protect-renewable-energy-projects-from-commercial-cyber-threats-with-insurance" target="_blank" rel="noopener">How to Protect Renewable Energy Projects from Commercial Cyber Threats with Insurance</a>

High Power String Inverters in Solar Projects Perform Better, Save Costs

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					</table>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.
When combined, the two renewable energy sources maximize electricity generation, strengthen grid reliability, and optimize land utilization.
According to <a href="https://www.mercomindia.com/research" target="_blank" rel="noopener">Mercom India Research</a>, India has an installed hybrid renewable energy capacity of 3.6 GW and a pipeline of about 31 GW, including battery storage projects.
On October 10, 2023, Mercom India hosted a webinar, &#8220;Risks and Solutions for Insuring Hybrid Renewable Energy Projects,&#8221; that focused on obstacles in providing insurance for these projects and effective risk mitigation approaches. You can watch the full webinar <a href="https://www.mercomindia.com/webinars/risks-and-solutions-for-insuring-hybrid-renewable-energy-projects" target="_blank" rel="noopener">here</a>.
The panelists were Vipul Shetty, Director of Energy Transition at <a href="https://www.howden.com/en-gb" target="_blank" rel="noopener">Howden</a>, Amit Sharma, Vice President – Business Development at <a href="https://www.cleanmax.com/" target="_blank" rel="noopener">CleanMax</a>, and Sachin Mansuriya, Lead – Wind Solar Hybrid Projects at <a href="https://www.fourthpartner.co/" target="_blank" rel="noopener">Fourth Partner Energy</a>.
Priya Sanjay, Managing Director, Mercom India, moderated the session.
Project-Specific Risks 
Insurance for wind-solar hybrid projects is to be tailored per the project&#8217;s characteristics, considering location, size, and the unique risks involved. This requires carefully assessing and managing these risks through appropriate insurance coverage so stakeholders can secure their investments and contribute to the growth of clean and sustainable energy production.
Speaking on the growing need for insurance products to meet the demands of wind-solar hybrid projects, Amit Sharma said, &#8220;In the last four to five years, the renewables sector has evolved, and the growth has been tremendous in the commercial and industrial (C&amp;I) segment. With the growing demand for wind-solar hybrid projects, the need for insurance has increased. The risks include natural disasters, equipment failure, market fluctuations, and changing regulatory landscape. These factors have accentuated the need for insurance to make the projects economically viable for investors.&#8221;
Commenting on the risks involved in the smooth operation of wind-solar hybrid projects, Vipul Shetty said, &#8220;Defects come in many forms, and they need to be insured. Developers can have defective wind turbines and solar panels, thermal runaway, and wind turbine damage due to natural causes. These risks are also applicable to storage. Then, there are also regulatory hurdles that hinder the smooth operation of wind-solar hybrid projects. So, it&#8217;s a mix of everything.&#8221;
&#8220;When we combine wind and solar with battery energy storage systems, we are doubling the risk. When we involve more OEMs, checking the track record takes a long time and becomes a complex process. But from an overall perspective, there&#8217;s not much difference from standalone wind and solar projects,&#8221; Shetty added.
Impact on PPA Prices
Sharing his views on the impact of insurance on the power purchase agreement prices (PPA) prices, Sharma said that the impact is lower or similar to standalone wind or solar projects.
&#8220;It is a material impact and is in the range of 0.2-0.3%, which comes to ₹0.2 (~$0.002)/kWh to ₹0.3 (~$0.004)/kWh. It affects the PPA prices, but insurance is necessary,&#8221; Mansuriya said.
Insurance Criteria
Speaking about the criteria for providing insurance, Vipul Shetty said that the most important thing is the OEMs&#8217; track record.
&#8220;The first thing we look into is the level of competency the OEMs have and the type of technology they are using. Also, we look into the scale of projects, which has increased considerably in the past few years. Another issue is the location of the projects to ascertain the likelihood of natural disasters, the frequency of which has increased in the recent past due to changing weather patterns,&#8221; he said.
Shetty dwelt on the issue of the constantly evolving technology landscape. &#8220;We have become more competent to deal with the changing technological landscape. We have renewable engineers to analyze the risk and give the green light to new technologies entering the renewable sector. It&#8217;s not much of a concern for us. It boils down to what level of infrastructure information is given to the insurers, and it is also important that correct information is provided to us.&#8221;
Expecting the insurance companies to keep pace with technological developments, Sharma said insurance companies need to keep pace with technological advancements in the hybrid segment.
&#8220;Climate change is a big issue now, and they should consider this while providing cover for hybrid projects. Also, virtual PPAs are likely to emerge in the near future, and the insurance companies should gear up with new insurance products to cater to this,&#8221; he said.
Tailored Solutions
Speaking about expectations from insurance providers, Sharma said there was a need for tailor-made solutions for various contingencies.
&#8220;The insurance providers should also consider supply-chain issues, which became prominent during the COVID-19 outbreak. Also, cyber-security is another area that they should look into. These are some of the areas where things can improve. Logistics is another area for which the insurance providers need to provide solutions,&#8221; Sharma said.
Bringing the insurer&#8217;s perspective to the table, Shetty said that the insurance companies are trying their best to provide warranties and new technology guarantees.
&#8220;We are also streamlining the whole process by providing guidelines to clients. The supply chain issue is definitely a concern for developers, but it isn&#8217;t easy to address it right now. It is a grey area. But on the brighter side, nearly 60-70% of renewable energy projects are now insured. More and more insurance companies are moving toward renewables as we move on the path of energy transition,&#8221; Shetty said.

Insurance Coverage Gains Prominence as Wind-Solar Hybrid Projects Take Centerstage

The prices of wind turbines are expected to increase by up to 10% over the next 12 to 18 months because of the rise in commodity prices, logistic costs, and Covid 19-related challenges, <a href="https://www.woodmac.com/" target="_blank" rel="noopener">Wood Mackenzie</a> has said in a recent report.
The report noted that turbine prices had gone up in the last six months due to increased steel, copper, aluminum, and fiber prices and a four-fold rise in logistics costs. The trend is expected to continue for the next four to five quarters.
Shashi Barla, the Principal Analyst at Wood Mackenzie, said, “Turbine original equipment manufacturers (OEMs) and component suppliers face a double whammy of cost increases and demand softening over the coming two years due to the US Production Tax Credit (PTC) and China feed-in-tariff (FiT) phase-outs. Despite this rise in costs, we expect turbine prices to return to normal levels by the end of 2022.”
The report stated that OEMs like Vestas, SGRE, and Nordex are forced to explore alternative supply hubs like India and face further cost pressures due to the ongoing US-China trade tussle. It added that supply chain strategies like the ‘India for India’ and ‘India for Global’ encouraged turbine component suppliers to follow their turbine OEM consumers into the Asia-Pacific nation.
“As expected, demand increases in India have failed to materialize therefore allowing OEMs and suppliers to leverage excess production capacity to serve export markets cost-effectively. As OEMs continue to manufacture the latest generation turbine in India, component suppliers are expanding within the market to produce components closer to their clients’ nacelle facilities,” Barla added.
Wood Mackenzie suggested that OEMs and turbine suppliers adopt next-generation technologies and materials as supply chain bottlenecks for import materials emerge over four to five years.
As per the report, the wind turbine industry will encounter supply constraints that could pose issues for country-level decarbonization targets if critical capital components and raw materials’ capacity will not be expanded over the next two years.
Mercom <a href="https://mercomindia.com/wind-installations-up-76-year-over-year/" target="_blank" rel="noopener">reported</a> that wind installations in India in the second quarter (Q2) of 2021 were down by 62% quarter-over-quarter, with 239 MW added in Q2 2021, compared to 623 MW added in Q1 2021.
The Global Wind Energy Council and MEC Intelligence, in a recent report ‘India Wind Energy Market Outlook 2025,’ <a href="https://mercomindia.com/india-to-add-20-2-gw-wind/" target="_blank" rel="noopener">predicted</a> that the world’s fourth-largest wind power market would add nearly 20.2 GW of new wind power capacity between 2021 and 2025. The capacity addition would increase India’s existing 39.2 GW wind market by 50%, paving the way for growth after recent years of slowdown.

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