Mercom Capital: India has connected 14.300 GW of renewable energy to the grid in the last two and half years

 

India’s Ministry of New and Renewable Energy (MNRE) has set a target of adding 20,450 MW of grid-connected renewable energy capacity in the financial year 2017–18.

In a written reply to a question, Piyush Goyal, the Minister for Power, stated that 14,300 MW of renewable energy has been connected to the grid in the last two and half years, Mercom Capital Group (Austin, TX, U.S.) reports.

Solar installations in India have reached 8.7 GW as of the end of October 2016

Mercom had previously reported that cumulative solar installations in India have reached 8,728 MW as of the end of October 2016 with 1,965 MW commissioned in the current financial year, until October.

The Minister also disclosed new targets set by MNRE for the coming financial years, and further noted the various incentives and programs undertaken by the MNRE and Ministry of Power to calm developers’ fears and make growth in renewable energy sector sustainable.

The incentives and programs include:

• Amendments in the National Tariff Policy for strong enforcement of Renewable Purchase Obligation (RPO) and for providing Renewable Generation Obligation (RGO).
  
  
• Setting up exclusive solar parks.
  
  
• Identification of large government complexes/buildings for rooftop solar photovoltaic (PV) projects.
  
  
• Provision of rooftop solar and 10 percent renewable energy as mandatory under Mission Statement and Guidelines for development of smart cities.
  
  
• Amendments in building bye-laws for mandatory provision of rooftop solar for new construction.

        source:http://www.solarserver.com

New report expects cut-throat competition in the polysilicon market; slowing demand from the photovoltaic industry

 

The polysilicon industry is likely to experience severe cut-throat competition in 2018. According to the “Polysilicon Market Outlook 2020,” a new report from Bernreuter Research (Wuerzburg, Germany), half a dozen polysilicon manufacturers could be pushed out of business by the end of 2018.

Polysilicon spot price to slump to below 12 USD/kg

“Slowing demand from the photovoltaic industry on the one hand and increasing production capacities on the other will cause turmoil on the polysilicon market,” says Johannes Bernreuter, head of Bernreuter Research and author of the report. He forecasts that the polysilicon spot price will slump from currently more than 14 USD/kg to below 12 USD/kg in 2018.

Already in 2014 and 2015, supply of polysilicon grew more rapidly than demand from the photovoltaic industry, which consumes approx. 90% of polysilicon produced worldwide. The global output of 313,000 and 363,000 metric tons (MT), respectively, led to swelling inventories, which drove the spot price down to a record low of 12.93 USD/kg in January 2016. “Only the massive Chinese PV installation rally in the first half of 2016 saved the polysilicon industry from even more serious oversupply,” says Bernreuter.

Disparity between polysilicon supply and demand

Between 2017 and 2019, however, new capacities of up to 141,000 MT – 70% of which in China – are planned to come on stream while the annual growth rate of new PV installations is expected to sink below 10%. This disparity between supply and demand will result in strong cut-throat competition, Bernreuter notes. “We expect that some projects will be deferred, others will end up as stranded investments, and several existing manufacturers will disappear from the market.”

Chinese polysilicon producers are not only expanding the capacity for solar-grade polysilicon, but a few are also trying to break the oligopoly that six incumbent manufacturers hold in the production of electronic-grade polysilicon for the semiconductor industry. 

 source:http://www.solarserver.com

Solar PV in Iran: Intersolar enters one of the most promising, but challenging markets

 

On November 15^th, 2016 the Iranian Deputy Minister for Energy, Dr. Sattar Mahmoudi, and the Managing Director of the Renewable Energy Organization of Iran (SUNA), Dr. Seyed Mohammad Sadeghzadeh, welcomed more than 400 attendees, twice as many as expected, at the first Intersolar Summit Iran in Tehran.

Main discussions were about grid-integration solutions, financing and foreign investments.

The development of the solar photovoltaic (PV) markets in Iran was seen mostly positive by all speakers and attendees of the first Intersolar Summit Iran, taking place in Tehran.

PV can contribute to the growing energy demand in general and especially to the higher peak load profiles which utilities are continuously facing. There is also the advantage that PV power plants can be built in very short time frames compared to conventional power plants. But major challenges and concerns remain.

Finding suitable land remains difficult for foreign investors, followed by getting the land license to build and operate a PV system.

Challenges for PV in the desert

The Intersolar Summit also focused on environmental impacts on PV module and system performance. Due to Iran's location the climate is influenced by the subtropical aridity of the Arabian desert areas and the subtropical humidity of the eastern Mediterranean area. These climate conditions influences the output and durability of PV Systems.

The challenges for PV grid-connections were presented by Mr. Saed Raei, Manager of Grid Connection Sector from the Iran Power Generation and Transmission Company (TAVANIR) and regional electricity companies and Distribution System Operators (DSO’s) such as Mr. Bahman Ghazi Zadeh, Manager of the Regional Electricity Company of Zanjan Province and Mr. Homayoun Berahmandpour, Head of Bulk Power Transmission.

Grid challenges

Up to today, grid connection of PV power plants might be challenging due to different procedures in each province. Therefore it is recommended that international and local investors of renewable energy work closely together with the Renewable Energy Organization of Iran (SUNA).

To reach more understanding for the new grid challenges, it was also recommended to offer training for DSO’s and Transmission System Operators (TSO’s) from the Government.

Standardized approval processes recommended

So far, SUNA has set up a good framework with the local Feed-in Tariffs, but it needs to move on with standardization and automatized processes with DSO’s which are reliable and valid everywhere in Iran.

Joerg Mayer, managing director from the German Solar Association (BSW) recommends to standardize approval processes instead of negotiating each project approval individually and personally with several authorities and governments. This sounds reasonable for Iranian authorities, but is contrary to cultural business behavior.

“SUNA does a great job, but it will take at least 5–10 more years to find standardized solutions. In the near future small scale PV will be much more successful. Iranian people need to change their minds to make clean air and energy possible,” says Aki Tamiz Abkhtiari from Canada, attending the Tehran-Summit.

Focus on financing

Networking and getting first-hand answers was the major interest of international EPC contractors, as for example IBC Solar at the Intersolar Summit.

Even if all preparations are made, and payment guarantees were given, missing physical documents make it difficult to keep the trust of foreign banks and financiers.

Many project developers recommended to use 100 percent equity finance because the high interest rates within Iran reduce the Internal Rate of Return (IRR) of the projects significantly, although Jafar Mohammadnejad, Deputy of Planning at SUNA advises project developers not only to fund projects from abroad.

According to Volker Kuntz, Managing Director at Trepte Corporate Advisors GmbH, financing stays challenging since there is uncertainty with international banks and the question how to deal with ‘U.S.-secondary sanctions’.

Only a few international banks finance Iranian PV projects, and if, only with max 2 years, but renewable energy is a priority sector in Iran and benefits from governmental support. Foreign investors may benefit from the comfort of Iran’s Foreign Investment Promotion and Protection Act FIPPA and guarantees to be issued by the Organization for Investment, Economic and Technical Assistance of Iran (OIETAI).

Iranian banks demand very high interest rates of up to 20%, but 20–30% IRR is possible through equity financing in certain projects. 

source: http://www.solarserver.com

Sterling and Wilson wins EPC contract for 170 MW solar PV project in Morocco

 

Sterling and Wilson Pvt. Ltd. (Mumbai, Maharashtra, India), one of India's leading solar photovoltaic (PV) EPC companies, have signed an agreement to construct a 170 MW PV facility, with a consortium led by ACWA Power (Dubai, United Arab Emirates) in the Kingdom of Morocco.

The agreement was signed during a ceremony at COP22 in Marrakech. Construction on NOOR PV I will begin shortly and is estimated to take 12 months to complete.

The NOOR PV I Program will consist of three projects: NOOR Ouarzazate IV, with a capacity of around 70 MW, NOOR Laayoune, 80 MW and NOOR Boujdour, 20 MW. This is the first solar PV phase of the NOOR Solar Plan, which has already seen three major Concentrated Solar Power (CSP) projects in Ouarzazate.

Sterling and Wilson has been selected as the EPC contractor for what will be one of the largest Solar PV plants in North Africa. Once completed, the plant is expected to be operational for 20 years.

“These projects have been won after an intense competitive bidding process,” said Bikesh Ogra, President – Renewable and Electrical. 

source: http://www.solarserver.com