India Seeks Soft Bank Push for Modi'sSolar Goal

India has closed bids for a third of its target of tendering 15,000 megawatts (MW) of solar projects this fiscal year, a government official said, and is expecting interest from investors such as SoftBank to lift the industry.

The tenders are part of Prime Minister Narendra Modi's ambitious plans to raise solar capacity five fold to 100,000 MW by 2022 to meet India's growing power needs, create jobs and fight climate change without committing to an emission target.

"We are creating the base for big companies like SoftBank and Foxconn to participate," Upendra Tripathy, new and renewable energy secretary, told Reuters on Monday. "We want big players to come in, costs to come down and targets to be met."

Japan's SoftBank this month announced plans to set up a company to invest $20 billion (roughly Rs. 1,32,512 crores) in India's renewable energy industry, with Taiwanese iPhone maker Foxconn and India's Bharti Enterprise as minority partners. SoftBank's executives have met both Modi and Tripathy.

Indian resources conglomerate Adani Group has all but ended a deal with U.S. company SunEdison for a solar equipment plant, only to start talks with Softbank and Foxconn for investments, sources said.

So far this fiscal year India has closed tenders for about 5,000 MW of solar power and is seeking bids for 5,000 MW more, Tripathy said.

Government-controlled companies Solar Energy Corp of India and NTPC Ltd have issued most of the tenders, along with states such as Madhya Pradesh in central India. SkyPower, Acme Solar, Suzlon Energy and SunEdison have been among the winners.

Tripathy said though companies were keen to invest and solar power was already competing with fossil-fuel derived electricity, central and state governments would have to make it easier for businesses to buy land.

Source: NDTV.com

West Asian companies look to buy Indian green power assets

The companies are seeking opportunities in growth markets at a time when crude oil prices have fallen

Original Post : Utpal Bhaskar, Livemint

India has pushed green power to the top of its energy security agenda and needs as much as $200 billion to meet its target of installing 100GW of solar power and 60,000MW of wind power by 2022. Photo: Bloomberg

New Delhi: West Asian investors are looking at acquiring green power assets in India for the first time, lured by the government’s push for renewable energy.

Doha-based Nebras Power QSC and Dubai’s private equity firm Abraaj Group are evaluating renewable energy projects, with Abraaj Group evaluating at least two operating green energy platforms for investing in India.

This development comes in the backdrop of India’s growing focus on the Gulf region in the era of depressed oil prices.

“West Asian investors are looking at the Indian green energy space for the first time,” said a person aware of the development, requesting anonymity.

Abraaj Group has $9 billion under management with a focus on private equity investing in growth markets.

Qatar Electricity and Water Co. has a 60% stake in Nebras Power, with Qatar Holding LLC and Qatar Petroleum International Ltd holding 20% each in the company, which invests “in international greenfield and brownfield development or through acquisition”.

Nebras Power recently signed an agreement with Qatar Development Fund to invest in energy projects in other countries.

West Asian companies are seeking opportunities in India at a time when crude oil prices have fallen, impacting the investments made in conventional energy projects. This is expected to worsen with the likely lifting of trade restrictions on Iran and indications of a slowdown in the Chinese economy.

Crude oil prices in the Indian energy basket averaged at $56.30 per barrel in July, as against $84.16, $105.52, $107.97 and $111.89 in 2014-15, 2013-14, 2012-13 and 2011-12, respectively.

While an external spokesperson for Abraaj Group declined to comment, Nebras Power couldn’t be immediately reached for comments.

Of the 189.43 million tonnes per annum (mtpa) of crude oil sourced by India last year, 109.76 mt came from West Asia.

The National Democratic Alliance government has been trying to tap West Asian countries for investing in Indian infrastructure projects without much success.

The initial focus was to attract investments from Saudi Arabia, Qatar, the UAE and Kuwait. The plan didn’t succeed.

Investments from the UAE so far have amounted to $10 billion. According to government data, India-UAE trade, valued at $180 million per annum in the 1970s, is currently at around $60 billion, making the UAE India’s third largest trading partner in 2014-15 after China and the US. The UAE was the second largest export destination for India ($33 billion for 2014-15). For the UAE, India was the largest trading partner for the year 2013 (over $36 billion in non-oil trade).

The government has pushed renewable energy to the top of its energy security agenda and is looking to provide green power at less than Rs.4.50 a unit. India needs as much as $200 billion to meet its target of installing 100 gigawatts (GW) of solar power and 60,000 megawatts (MW) of wind power by 2022.

“Ind-Ra (India Ratings) expects a strong pick-up in solar power installations over the next four-five years, driven both by the government impetus of 100GW of solar power by FY22 (60GW through grid-connected solar projects) and a decline in solar power generation costs,” India Ratings and Research, the domestic arm of Fitch Ratings, said in a 22 July report.

There has been growing interest from overseas investors in the Indian renewable energy space.

Russia’s OAO Rosneft, the world’s largest publicly traded oil company, among others are exploring investments in India’s solar energy sector.

In June, SoftBank Corp., along with Bharti Enterprises Ltdand Taiwan’s Foxconn Technology, proposed to invest at least $20 billion in solar energy projects in India through a joint venture, SBG Cleantech Ltd. US-based First Solar Inc.and China’s Trina Solar are among those considering plans to set up manufacturing facilities in India.

US-based SunEdison Inc. had also said it plans to establish a joint venture with Adani Enterprises Ltd to build a solar photovoltaic manufacturing facility with an investment of $4 billion.

Adani, SunEdison maydrop joint venture plans

Adani Enterprises may partner with another manufacturer, says a person familiar with the development

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Original Post: Utpal Bhaskar, Live Mint

Photo: Bloomberg

New Delhi: Adani Enterprises Ltd’s plans to set up a $4 billion solar photovoltaic manufacturing facility in partnership with US-based SunEdison Inc. may come unstuck.

“It is not working out. Adani Enterprises may partner with another manufacturer,” said a person familiar with the development who spoke on condition of anonymity.

A second person aware of the development confirmed it, but asked not to be identified.

Spokespersons for Adani Enterprises and SunEdison didn’t respond to an email sent on 7 August and subsequent reminders seeking comment.

On 20 August, Reuters reported that the Adani Group was in talks with Japan’s SoftBank Corp. and Foxconn Technology Co. Ltd to secure investment in a $3 billion project to make solar cells and panels in the country. It added, citing an unnamed source, that Adani and SunEdison had ended their proposed partnership in June.

Meanwhile, SunEdison has been firming up its India strategy. It recently agreed to acquire Continuum Wind Energy Ltd, a Singapore-based company which owns and operates 242 megawatts (MW) of wind power plants in Maharashtra and Gujarat, besides a 170MW wind power unit under construction in Madhya Pradesh.

Also, it signed a long-term power purchase agreement with Tata Power Delhi Distribution Ltd to provide 180MW of electricity.

The National Democratic Alliance government has pushed renewable energy to the top of its energy security agenda and is looking to provide green power at less than Rs.4.50 per unit. India needs as much as $200 billion to meet its target of installing 100 gigawatts (GW) of solar power and 60,000MW of wind power by 2022.

The Adani-SunEdison facility was to be constructed in Mundra, Gujarat. A memorandum of understanding to the effect was signed in the backdrop of the seventh Vibrant Gujarat summit in January, inaugurated by Prime Minister Narendra Modi in Gandhinagar.

“The facility will create enough solar panels to fuel substantial solar growth in India, furthering India’s goals for clean, renewable energy independence, and will add up to 20,000 jobs to the local economy,” Adani Enterprises and SunEdison said in a joint statement on 11 January.

“During the first half of 2015, SunEdison and Adani will complete a comprehensive analysis of the joint venture opportunity and business plan. Pending successful outcome of the study, construction of the facility will begin shortly thereafter,” the statement said, adding, ‘The new $4 billion facility will be constructed in Mundra, Gujarat, India, over a three to four year period. This facility will vertically integrate all aspects of solar panel production on site, including Polysilicon refining, ingots, wafers, cells and panels production with a broader ecosystem involving extended supply chain for raw materials and consumables,” the statement added.

There has been growing interest from overseas investors in the Indian renewable energy space. Russia’s OAO Rosneft, the world’s largest publicly traded oil company, US-based First Solar and China’s Trina Solar are among the firms looking for opportunities in India’s solar energy sector. In June, SoftBank, along with Bharti Enterprises Ltd and Taiwan’s Foxconn Technology, proposed to invest at least $20 billion in solar energy projects in India through a joint venture, SBG Cleantech Ltd.

According to the government, the Indian clean energy market is largely driven by asset-based finance to the extent of 94% of the total investment in the sector.

In India, the world’s biggest greenhouse gas emitter after the US and China, renewable energy currently accounts for only 13%, or 35,777MW, of the total installed power capacity of 2,74,818MW.

Analysts believe that local manufacturing of solar power generation and transmission equipment will play an important role as the country builds up its solar energy capacity.

“The associated industry of solar cell manufacturing, power storage and transmission equipment technology cycles are contracting, and finance needs to evolve accordingly to provide a definitive boost. A short-term financing approach focuses only on current technologies which have shorter shelf life and expects higher returns. Alternatively, investors now need to finance businesses not products, adopting a long-term approach, as it is the adaptability of business to environment and technologies’ that form the pillars of success,” Yes Bank Ltd said in a 19 August report.

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