Green energy | Business Upturn

IEX achieves 9,689 MU electricity trade volume in November 2024, marking 16% growth YoY

Matrika Shukla — Tue, 03 Dec 2024 10:57:19 +0000

Indian Energy Exchange Limited (BSE: 540750, NSE: IEX), India’s leading electricity trading platform, announced a substantial achievement for November 2024. The platform recorded a total electricity trade volume of 9,689 million units (MU), reflecting a robust 16% year-on-year (YoY) growth.

The Day-Ahead Market (DAM) contributed 5,651 MU to the total volume, showcasing a 9.8% YoY increase. Meanwhile, the Real-Time Market (RTM) saw significant growth, with 3,019 MU traded, marking a 28% YoY rise. The term-ahead market, which includes contingency and daily contracts, recorded a smaller share of 202 MU.

The Green Market, comprising the Green Day-Ahead Market (G-DAM) and Green Term-Ahead Market (G-TAM), achieved a remarkable 332% YoY growth, with 818 MU traded. The G-DAM segment accounted for 793 MU, while G-TAM traded 25 MU, emphasizing the growing adoption of renewable energy solutions.

Despite the increased electricity demand, market clearing prices remained favorable. The Day-Ahead Market’s clearing price stood at ₹3.30/unit, down 17% YoY, and the RTM clearing price was ₹3.46/unit, reflecting a 13% decline. These low prices present cost-effective opportunities for Discoms and Open Access consumers to optimize their power purchases.

The Renewable Energy Certificate (REC) Market saw the trading of 5.46 lakh RECs across two sessions in November 2024. Clearing prices for these sessions were ₹140/REC and ₹190/REC, respectively, underscoring the sustained interest in green certificates.

Reliance Power and Reliance Infrastructure reconstitute boards, appoint 4 new directors

Matrika Shukla — Mon, 18 Nov 2024 11:32:04 +0000

Reliance Group companies, Reliance Power Ltd. and Reliance Infrastructure Ltd., have reconstituted their boards, elevating four senior executives to the board of directors, as part of their Vision 2030 growth strategy.

The newly appointed directors at Reliance Power include Ashok Pal, Chief Financial Officer (CFO) of Reliance Power, who has been promoted to Executive Director. Sachin Mohapatra, CEO of Sasan Power Ltd., and Harmanjit Singh Nagi, President of Corporate Development at Reliance Power, have been appointed as Additional Directors. At Reliance Infrastructure, Partha Sarma, President of Group Corporate Development, has been appointed as an Additional Director.

The restructuring aims to position the boards with leadership aligned with the group’s Vision 2030 strategy, focusing on growth and innovation. This move emphasizes the group’s commitment to rewarding internal talent, recognizing proven leadership, and fostering a culture of sustained growth. The newly appointed directors bring hands-on experience, with expertise in key sectors such as finance, power, energy, and environmental sustainability.

Ashok Pal, a Chartered Accountant with over 25 years of experience in finance, taxation, and compliance, has been with Reliance Power for over seven years. As CFO, he has contributed significantly to the company’s financial strategies. Sachin Mohapatra, who has been with the group for eight years, has led the 4000 MW Sasan Power UMPP, one of the world’s largest integrated coal-based power plants. His leadership has helped position Sasan as one of India’s top sustainable plants.

Harmanjit Singh Nagi brings more than three decades of expertise in strategic leadership and business development, particularly in green energy initiatives, including large-scale solar and hydroelectric projects. Partha Sarma, associated with Reliance Group for more than six years, has significant experience in global business leadership, particularly in financial services, defense, and infrastructure.

The restructuring aligns with the companies’ plans to target significant investments in renewable energy and new technologies, ensuring the group remains competitive and future-ready. The newly established Reliance Group Corporate Centre (RGCC) will provide strategic guidance to these newly appointed directors, ensuring a smooth integration into their leadership roles.

Empowering Green Future: Anticipating key boosts in renewable energy in Union Budget 2024

Finance Desk — Wed, 31 Jan 2024 12:08:40 +0000

As India strives to achieve 50% cumulative installed power generation capacity from non-fossil fuel sources by 2030, the renewable energy sector eagerly awaits impactful measures in the upcoming interim Union Budget, set to be presented on February 1.

India aspires to add 50 GW of renewable energy capacity over the next five years, starting from 2024. However, the country has been able to achieve only about 15 GW annually, emphasizing the need for accelerated efforts. Anticipations suggest that the interim Budget may allocate a significant sum of at least Rs 20,000 crore to bolster renewable energy initiatives. Prime Minister Narendra Modi’s announcement of the Pradhan Mantri Suryoday Yojna for one crore houses reflects the government’s commitment to expanding renewable energy access.

Focus areas for growth:

Distributed renewable energy capacities:

Emphasis on decentralized renewable energy capacities will likely be a focal point.

Approved list of models and manufacturers (ALMM):

The reintroduction of ALMM is expected to spur competitiveness and innovation in the solar industry.

Critical industry demands:

Green Hydrogen-Blending Mandate: Industry experts emphasize the need for implementing a green hydrogen-blending mandate for key industries, coupled with a reduction in the GST rate for electrolyser manufacturing from the current 18 percent.

Viability gap funding (VGF) for offshore wind projects:

The budget may propose VGF for offshore wind projects, aligning with the government’s plan to promote this sector.

Battery energy storage systems (BESS):

The industry urges a revision of taxes and duties on BESS, seeking further incentives for large grid-scale energy storage systems and support for utilizing green ammonia or green hydrogen in energy storage.

Coal gasification program:

The industry anticipates the inclusion of the government’s plan to offer Rs 8,500 crore in viability gap funding to the public and private sectors for coal gasification. The ambitious program aims for 100 MT of coal gasification by 2030, with investments exceeding Rs 4 lakh crore.

Funding requirements:

As per the draft National Electricity Policy, the estimated funding requirement for solar and wind projects from 2022-2032 stands at Rs 20.67 lakh crore.

With the renewable energy sector playing a pivotal role in India’s sustainable future, industry stakeholders hope for an overall increase in capital expenditure in the budget, particularly in areas like setting transmission lines for efficient evacuation of upcoming renewable energy capacities. The industry eagerly awaits the budget’s unveiling, expecting it to pave the way for a greener and more sustainable energy landscape in the country.

RBI releases framework for banks and NBFCs to accept Green Deposits

News Desk — Tue, 11 Apr 2023 18:16:02 +0000

On Tuesday, the Reserve Bank of India (RBI) announced complete rules for the acceptance of “green deposits” by banks and NBFCs. These deposits would allow the money to be utilized for financing activities such as renewable energy, green transportation, and green construction.

The issue of climate change has been recognized on a worldwide scale, and several initiatives have been launched to both cut emissions and advance sustainable practices.

When it comes to supporting initiatives and activities that are centered on the development of more environmentally friendly methods of energy production, the financial sector will play a significant role. The Reserve Bank of India (RBI) claimed that it has provided a framework for the acceptance of green deposits by regulated businesses since the process of the mobilization of resources and distribution of those resources to environmentally friendly initiatives is gaining pace in India.

Several of the organizations have already begun giving these deposits as a means of providing financial support for environmentally conscious activities and initiatives.

The implementation date for this structure is the 1st of June 2023.

According to the central bank, the goal of this framework is to “provide green deposits to customers, defend the interest of the depositors, assist customers to fulfill their sustainability agenda, resolve concerns about greenwashing, and help augment the flow of credit to green activities/projects.”

According to another statement made by the bank, “the distribution of revenues obtained from green deposits should be based on the official Indian green taxonomy.”

The boards of directors of banks and non-bank financial companies would be required to establish a complete policy on green deposits.

RIL keen on buying shares of EV tech firm Altigreen

Mymun Malik — Thu, 10 Feb 2022 05:10:02 +0000

Reliance New Energy Limited (RNEL), a sister concern of Reliance Industries Limited today has announced it is signing a contract with Altigreen Propulsion Labs Private Limited. RNEL has taken the subscription of 34000 series A Convertible Preference Shares of order value ₹ 50 crores.

Mr. Mukesh Ambani had committed to invest $ 76 billion in renewable energy and the like over the next 3 years (2022 to 2025), so this is the RNEL’s strategic business intent of joining hands with the innovative companies in Electric Vehicles, New Mobility and New Energy ecosystems.

Interestingly for the RNEL and Altigreen’s negotiation, a regulatory of governments approval is not required and the settlement is expected to be completed before March 2022; RIL mentioned.

Altigreen is based out of the capital city of Karnataka, Bengaluru. It is into electric vehicle (EV) technology and provides solutions for the same. It helps in the commercial last-mile logistics with its two, three and four-wheeled vehicles.

Union Power Ministry announces new rules for the electricity sector, Check details here

Cheryll Jain — Sat, 23 Oct 2021 11:19:19 +0000

The Union Ministry of Power announced new rules to maintain the economic feasibility of the power sector, ease the financial distress that burden various stakeholders and ensure punctual recovery of costs incurred on electricity generation on Saturday, October 23.

The rules announced by the power ministry will regulate the sustainability of the electricity sector and promote the transition to renewable energy to meet India’s target to curb climate change and the concerns arising from it.

A statement issued by the ministry assured that the rules notified by the union ministry under the Electricity Act 2003 are in the interest of the electricity consumers and investors and will put to rest the concern of stakeholders in the sector regarding timely recovery of costs due to change in law and curtailment of renewable energy, among others.

The new regulations introduced by the ministry under the Electricity Act 2003 include the Electricity (Timely recovery of costs due to Change in Law) Rules, 2021 and Electricity (Promotion of generation from renewable sources of energy by addressing Must Run and other matters) Rules, 2021.

The ministry stated that timely recovery of costs due to change in the law is an important factor as the investment in the power sector depends majorly on punctual returns.

The delay in cost recovery affects the viability of the sector and puts financial stress on the developers, said the ministry, adding that the rules will now assist in fostering “investment-friendly” conditions in the country. As part of the rules, a formula has been revealed to calculate adjustments in monthly tariffs due to the impact of a change in the law.

Meanwhile, the transition to clean energy is being given a priority through the new regulations. The Indian government has disclosed its target to set up 175 GW of renewable energy capacity by 2022 and 450 GW by 2030 as it endeavours to battle the ongoing climate crisis.

The new regulations are expected to help India achieve its set target of renewable energy generation, the ministry stated. The transition to green energy will ensure healthier environmental conditions for future generations.

UK joins hands with India on green hydrogen deal

Sneha Sengupta — Tue, 17 Aug 2021 15:25:14 +0000

UN Climate Change Conference President Alok Sharma met Union Minister of Power and Renewable Energy RK Singh on Tuesday and conferred UK’s readiness for partnering with India on green hydrogen.

Mr Sharma, MP for Reading West, proposed the issue of eroding out of coal-fired power plants in the official meeting also attended by senior officials and High Commissioner of the United Kingdom in India.

Mr Singh said India has already retired 16,369 MW of inefficient thermal units till March 2021.

An official statement said: both sides expressed their willingness to explore the possibility of establishing a World bank for Green Energy which could materialise the proposal for $100 billion climate finance pledged by the developed countries under the Paris Agreement.

The UK authorities requested India’s endorsement for assembling a successful COP26 (UN Climate Change Conference of the Parties) which is to be conducted in Glasgow from October 31 to November 12.

The union minister showed India’s interest in the collaboration with the UK authorities. He further stressed the requirement of the developed and developing countries to work in unison and bring forth the cost-cutting measured along with the storage cost.

The minister notified the UK delegation that India is the first G20 country whose actions are in accord with the nationally determined contributions (NDCs) ascertained by them under the Paris Agreement.

During the official meet, discussions went on catering to the need of growing storage capacity as per India’s determined target of having 450 MW of installed Renewable Capacity by the year 2030. The UK side was invited to contribute to future bids for green hydrogen and lithium-ion.

Prime Minister Narendra Modi had proclaimed National Hydrogen Mission during his 75th Independence Day address to reshape India into a global focal point of green hydrogen production and export.

Japan’s ORIX Corp invests $980 Million in Greenko Energy Holdings

Apurva Khairnar — Fri, 11 Sep 2020 05:46:12 +0000

Japan’s financial services firm ORIX Corp will be investing $980 million in Greenko Energy Holdings. This comes as a single largest foreign investment in India’s clean energy space.

ORIX is a major company working company in Japan which includes wind, solar, biomass, power trading and retailing and is the largest corporate in Japanese solar power generation market.

This deal comes at a time when India’s clean energy space is going through a power procurement curtailment and tariff shopping by dicoms. Hyderabad based Greenko is now building power storage projects with total capacity of 7.2 GW across six states in India as part of a plan to provide on-demand power from wind and solar projects.

The deal will now add 873 mega watt of Orix operating wind assets to Greenko and will add approximately $100 million to Greenko’s EBITDA in the first year. The deal will also bring Greenko’s enterprise value at $10.2 billion

Greenko group also wants to be present in the electricity distribution scapeand has submitted a non-binding offer to buy Reliance Infrastructure Ltd’s Delhi electricity distribution businesses.