[ July 2018 ]　　　

■ IESA: Further tax cuts on Li-ion would be ‘essential boost’ for India’s energy storage industry

(July 31, 2018/pv-tech.org)

India’s Goods and Services Tax (GST), a single tax applicable across the whole of the country, will be lowered for lithium-ion batteries by 10% in a move which has been welcomed by the India Energy Storage Alliance (IESA).

All goods and services are taxable under the law, which was introduced in 2017. Along with a wide range of other changes, the GST rates on lithium-ion batteries has dropped from 28% to just 18%. In related news, fuel cell vehicles will see their GST reduced from 28% to 12%.

With electric vehicles (EVs), renewable energy integration and commercial and industrial (C&I) diesel replacement providing particularly strong drivers, there are around 20 different applications for energy storage in India today, IESA said in a statement issued yesterday. The trade advocacy group has given a bold estimate that the country’s energy storage market could reach more than 300GWh by 2025.

This rise would be at least partly contingent on India developing several Gigafactories of its own for battery production. At present, battery cells are imported and converted into battery modules by domestic producers.

The cut has been welcomed by IESA director Debi Prasad Dash, who said: “Both electric vehicle and renewable energy industry will be benefited by this step."

He added that IESA had “sent several letters” to the GST council on the matter as well as discussing it with the likes of the Ministry of Renewable and New Energy (MNRE) and other government agencies.

Meanwhile, CEO of hybrid and energy storage business at major EPC firm Sterling & Wilson, Deepak Thakur also applauded the GST reduction.

“It’s a welcome move from the government to reduce GST on lithium-ion batteries from 28% to 18% and will surely accelerate overall decarbonisation objective at the national level. It is indeed a positive development that the government has also cut GST on raw materials for batteries so as to boost domestic manufacturing," he said.

He went on to say that as one of the world’s leaders in renewable energy deployment, there is great potential to pair this with batteries in India. Adding batteries to the likes of microgrids, large-scale renewable energy generators and hybrid power projects not only improves the “dispatch ability” of such resources but also creates “improved viability” for them, Thakur said.

Need to go further - in line with solar PV equipment

IESA executive director Dr Rahul Walawalkar, himself an advisor to the Indian government MNRE said however that a further reduction in GST to bring batteries and their components in line with electric vehicles (which are taxed at 12%) or solar components (taxed at just 5%) would be “essential to boost energy storage adoption in India”. Walawalkar said this would also help foster investment in manufacturing. Also, according to Walawalkar, it is not just lithium batteries that need this boost.

“We urge finance ministry to extend the rate reduction to other forms of energy storage technologies including advanced lead acid, sodium based batteries, flow batteries, metal air batteries, ultra-capacitors, fuel cells and thermal storage technologies.”

In agreement with Walawalkar on this point was the senior director for energy storage at Delta Electronics, Hiren Shah, who is also on the leadership team at IESA. Shah said the GST cut was “a welcome move – although 5% [rate] similar to [the] solar industry would have been ideal”.

Hiren Shah added that there are still “some finer points” which need further examination, highlighting for example that “ironically if the lithium- ion battery is sold fitted inside an EV the GST would be 12%.”

This article first appeared on Energy-Storage.news, Solar Media's dedicated site for the global industry.

■ SunPower guides another year of massive losses

(July 31, 2018/pv-tech.org)

SunPower had previously guided a net GAAP loss for the second quarter to be in the range of US$125 million to US$100 million. Instead, SunPower decided to announce an impairment charge of approximately US$369.2 million related to all of its 800MW of E Series cell capacity at Fab 3 in Malaysia as it referred to it as its ‘legacy manufacturing assets'.

The company didn’t actually explain why it took the legacy manufacturing asset impairment charge in the second quarter of 2018, when a migration to the NGT cells in Malaysia was not expected to occur in 2019.

However, the Fab 3 in Malaysia will eventually be converted to its NGT (Next Generation Technology) IBC solar cell technology, which currently has a 100MW line installed and is expected to ramp sometime in the first quarter of 2019.

The company also took a gross margin hit, deciding to record US$355.1 million of the impairment charge in GAAP gross margin, resulting in a negative gross margin of 69.1%, compared to previous guidance of 2.5% to 4.5%.

SunPower said that its full-year net GAAP loss for 2018 would be in the range of US$830 million to US$860 million, compared to a US$851 million loss posted in 2017.

Revenue and deployment growth

SunPower reported better than expected revenue and deployments in the second quarter, as well as guiding further improvements in the third quarter of 2018. However, full-year revenue guidance remained unchanged at US$1.6 billion to US$2.0 billion on unchanged total deployments of 1.5GW to 1.9GW in 2018. SunPower had reported 2017 annual revenue of US$1.872 billion.

Missing from revenue and deployment guidance is the potential positive impact of its planned acquisition of SolarWorld Americas, which is not insignificant with a p-type mono PERC (Passivated Emitter Rear Cell) capacity of 400MW and 600MW of module capacity.

Also missing from guidance was any positive revenue gains from a range of assets being sold-off.

Second quarter GAAP revenue was US$449.1 million, compared to guidance range of US$360 million to US$410 million, and up from US$391.9 million reported in the previous quarter, which benefited from PV power plant project asset sales.

Deployments topped 385MW and revenue recognition was 328MW, compared to previous guidance of deployments in the range of 350MW to 380MW.

"Strong customer demand in our global DG [Distributed Generation] business, combined with our continuing cost control initiatives, enabled us to exceed our forecasts for the quarter," said Tom Werner, SunPower CEO and chairman of the board.

Global DG volume growth was reported to have been 45% higher, year-on-year and US residential growth up 15%.

In the reporting quarter, cash and cash equivalents remained relatively unchanged at US$256.7 million, compared to US$260.6 million in the previous quarter.

Guidance

Sunpower expects GAAP revenue guidance to be in the range of US$425 million to US$475 million, while GAAP gross margin rebalances after the Fab 3 impairment charges are expected to be in the range of negative 1.0 % to positive 1.0%.

Third quarter 2018 GAAP guidance includes the impact of revenue and timing deferrals due to sale leaseback transactions as well as charges related to the company’s restructuring initiatives and US Section 201 trade tariffs.

■ Uttar Pradesh annuls 1GW solar auction and retenders 500MW

(July 30, 2018/pv-tech.org)

Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) has annulled a 1GW solar auction that it held earlier this month and retendered just 500MW of PV capacity.

The bidders in the 1GW auction had opted for a sizeable “risk cushion” in their tariff bids, according to analysts, with prices ranging between INR3.48-3.55/kWh (US$0.051-0.052) – far higher than other recent India auctions with record lows of 2.44 rupees and an overall price trend of well below 3 rupees. The Uttar Pradesh state Discoms are amongst the worst rated in the country, while land is costly, with execution challenges and lower irradiation than many other key solar states.

A total of nine developers had been awarded capacity in the auction, but after the high prices were revealed various commentators had said the chances of an annulment were increased significantly.

To follow up on its auction annulment, UPNEDA has invited online e-bids for a reduced capacity of 500MW, according to a notice from the agency.

PV Tech recently visited a decentralised hybrid mini-grid project using solar, battery storage and rice husk-fuelled biomass in Uttar Pradesh.

■ Karnataka tenders for 150MW of PV at Pavagada Solar Park

(July 30, 2018/pv-tech.org)

Karnataka Renewable Energy Development Limited (KREDL) has issued a tender for 150MW(AC) of grid-connected solar projects at the Pavagada Solar Park on a build own and operate (BOO) basis.

The capacity will be split between three blocks of 50MW(AC) projects and the Bangalore Electricity Supply Company (BESCOM) will purchase the power produced for a 25-year period.

The Pavagada Solar Park is set to be 2GW(AC) in overall size and already has a significant portion commissioned. It is one of the largest solar parks in the world, although plans for a 5GW solar park were recently approved in the state of Gujarat.

The deadline for techno-commercial bid submissions is 25 August 2018. The capacity will be awarded via a reverse auction process.

Karnataka is now the leading Indian state in terms of solar deployment, overtaking the long-time leader Tamil Nadu.

■ Bangladesh tenders for nearly 1MW rooftop capacity on government buildings

(July 30, 2018/pv-tech.org)

The Bangladesh Power Development Board (BPDB) has tendered for a sponsor of a 789kW grid-connected rooftop solar portfolio across several government buildings in Jamalpur District.

The rooftop projects will be installed above several office buildings, a 250-bed hospital, a nursing institute, a district education office building and a judicial court to name a few.

The project sponsor will be selected through a competitive bidding process including technical, commercial and financial proposals as well as a tariff proposal.

BPDB has recently tendered 200MW(AC) of grid-connected solar PV projects to be developed across four locations in the country.

■ Hanwha Q CELLS touts solar module supplier leadership in Japan for 2017

(July 25, 2018/pv-tech.org)

‘Silicon Module Super League’ (SMSL) member Hanwha Q CELLS has endorsed a third party market research report that has made the company the largest supplier of solar modules in Japan in 2017.

The SMSL had claimed to have previously been the leading overseas-based module supplier to Japan since 2013. The Japanese market had previously been dominated by domestic firms such as Kyocera, Sharp and Panasonic. Kyocera and Sharp had both been the top ranked supplier in past years but have been losing market share to overseas rivals such as Hanwha Q Cells for many years due to a lack of cost competitiveness and product differentiation.

According to an independent report, published by Japanese market research company Fuji Keizai, Hanwha Q CELLS module shipments to Japan were higher any other supplier, including China-based manufacturers.

The SMSL was said to have had module shipments of 770MW in 2017. The company had previously touted that its largest market had become Europe, followed by the US, Japan, India, Turkey and China.

Before Hanwha Q CELLS stopped providing quarterly regional shipment figures in 2016, the Japanese market could account for around 12% of shipments or around 550MW of module shipments to Japan in 2016, according to PV Tech’s analysis. Revenue from Japan was US$284.0 million in 2016 and had been steadily rising since 2014.

The SMSL also cited that the Japanese residential PV sector was enjoying a renaissance, said to be due to the country’s Zero Energy House (ZEH) directive.

According to consulting firm RTS Corporation, residential installations rather than commercial and utility-scale markets are expected to push 2018 PV installations in Japan to as high as 7.5GW.
More than half of new homes in Japan being built by 2020 should have zero emissions, with solar a key part of meeting the ZEH directive and something expected to be a catalyst within the EU in a few years.

■ Tokyo Century and Kyocera connect 28MW PV plant in Miyagi, Japan

(July 24, 2018/pv-tech.org)

Partly to serve a major new industrial park, Japanese utility and grid operator Tohoku Electric Power will buy the power generation from a newly completed 28MW solar farm in Miyagi Prefecture, Japan, Kyocera Corporation has announced.

Kyocera TCL Solar, a joint venture (JV) between the Kyocera technology group headquartered in and named after Japan’s historic former capital city, Kyoto, and Tokyo Century Corporation, a “non-banking financial services” company with operations in 37 countries, has completed construction of the solar farm in Taiwa, Miyagi Prefecture. Close to Sendai City, the site is also near to an industrial park which is fuelling “urbanisation and population growth” in the area, Kyocera said.

It utilises 92,070 Kyocera 270-watt modules. and 11,880 Kyocera 280-watt PV modules - 103,950 in total - to generate around 33,000MWh of electricity annually. Tokyo Century Corporation owns 81% of the project, with Kyocera Corporation holding the remaining 19%.

Following the start of operation on 21 June, it is the 67th project undertaken by Kyocera TCL Solar since it was founded in 2012, including a 13.7MW floating solar installation inaugurated in late March and a just-completed project on the undulating terrain of an abandoned golf course.

Meanwhile, although Kyocera itself included a US$459 million impairment charge on long-term polysilicon supply contracts as part of a 2018 full-year operating loss of US$482 million while also downsizing its US solar business, the company appears to remain prolific in Japan, having recently been named among the development partners for a 480MW plant in Nagasaki.

■ Greenko bags approval for 2.75GW solar-wind-storage project in India

(July 24, 2018/pv-tech.org)

Hyderabad-headquartered firm Greenko Energies has received state government approval for a huge renewable energy project involving 1GW of solar, 550MW of wind and 1.2GW of pumped energy storage in the Indian state of Andhra Pradesh.

The news was reported by Indian outlet The Hindu, which was then posted on the Andhra Pradesh government website last Friday. The project would be located at Pinnapuram village in Panyam mandal of Kurnool district.

Tim Buckley, director of Energy Finance Studies, Australasia at Institute for Energy Economics & Financial Analysis (IEEFA), told PV Tech that India also has plans for a 500MW pumped storage facility in Tamil Nadu, while central government-run entity THDC is working on a 1GW pumped storage project in Uttarakhand on the Tehri Dam reservoir, one of the highest dams in the world.

Buckley added: “India has only got about 4,200MW of pumped hydro storage in total. When you are putting out so much renewables you are going to need some peaking and balancing capacity and pumped hydro storage is perfect for that.”

India is near to 24GW of solar deployment according to recent government figures and it has a multi-gigawatt pipeline of tenders that should continue to accelerate PV deployment in the coming years, hence the need for a focus on grid balancing. India is also working on Green Energy Corridors to transmit renewable power from resource rich states to regions with high power demand, alleviating stress on the grid.

The Greenko project would be spread across roughly 1,930 hectares and it must be complete within four years or else the land would be returned to the state government, said The Hindu article.

Kurnool, where Greenko’s project will be located, is already home to a 1GW solar park in which capacity was built by several developers: Greenko, SBG Cleantech, Adani and Azure Power.

Greenko was ranked 7th in terms of solar projects commissioned in FY2017/18, according to the latest India Solar Map by consultancy firm Bridge to India.

■ LONGi secures US$600 million module supply deal in the US

(July 20, 2018/pv-tech.org)

Leading integrated high-efficiency monocrystalline module manufacturer and ‘Silicon Module Super League’ (SMSL) member LONGi Green Energy Technology has secured a large PV module supply deal with a major PV power plant developer in the US.

LONGi said the sales contract was valued at around US$600 million and the supply of its high-efficiency P-type monocrystalline modules would start in 2019 and go through to 2022.

This is believed to be the single largest module supply contract LONGi has signed with a US project developer and the first major contract publically announced since the Section 201 trade case decision that was not from a PV manufacturer that had announced plans to assembly PV modules in the US.

LONGi Group’s PV manufacturing operations are primarily in China but also has a manufacturing facility in Malaysia and is investing in a manufacturing plant in India.

■ Meyer Burger sales up 9% in first half of 2018

(July 19, 2018/pv-tech.org)

Leading PV manufacturing equipment supplier Meyer Burger has reported preliminary first half year financial results, highlighting strong sales and a return to profitability but weak order intake, due to Chinese government solar policy changes at the beginning of June.

Meyer Burger expects to report sales of CHF 232 million (US$231.5 million) for the first half of 2018, up 9% from CHF 212.3 million in the prior year period.

Meyer Burger expects to achieve a profit in the range of CHF 7 - 8 million at the net earnings level, compared to a net loss of CHF 17.0 million in the first half of 2017. EBITDA is expected to increase to around CHF 28 million, compared with CHF 6.9 million in the first half of 2017.

The only dampener was incoming orders in the first half of the year being around CHF 138 million (US$137.7 million, compared to CHF 308.5 million in the prior year period.

According to Meyer Burger a “momentary strong reluctance regarding new investments on behalf of Meyer Burger’s PV customers” in China was to blame for the new order intake decline, due to caps placed on downstream PV project installations that have exceeded targets two years in row and were responsible for the market overheating and upstream overcapacity.

PV Tech recently highlighted that PV manufacturing capacity expansion announcements in the first quarter of 2018 had totalled 24,879MW, including module assembly capacity expansion plans of 15,570MW, the second highest on record since 2014.

China accounted for 14,240MW of new announcements in Q1 2018, or 61% of the total, while accounting for over 71,000MW in 2017, or 73% of the combined total of capacity expansion announcements.

■ Modi claims 8.6 million Indian households electrified under ‘Saubhagya’ scheme

(July 19, 2018/pv-tech.org)

More than 8.6 million households have been electrified through India’s ‘Saubhagya' scheme, which seeks to provide solar, storage, LED lighting and other amenities to every willing household across the country, according to a release from the Prime Minister’s office.

Prime Minister Narendra Modi said the programme, which was announced in September 2017, is currently in “mission mode” and seeks to connect around 40 million households. The original target was to complete this electrification by 31 December 2018.

He added: “People who have not seen darkness, don't understand the meaning of illumination. Those who have not spent their lives in the darkness don't realise the value of light.”

In a reply to Indian Parliament, Lok Sabha, today, power minister R.K. Singh also noted that under 'Saubhagya', the government of India provides budgetary support towards 60% (85% for special category states) of the project cost. An additional budgetary support of 15% (5% for special category states) is available if 100% household electrification is achieved by the 31 December target, while all remaining un-electrified households are targeted for electrification by March 2019.

The government is putting roughly INR163 billion (~US$2.37 billion) into the scheme.

Modi had recently declared that every village in India had some form of access to power under the plans to connect every village to the grid, although a village only required 10% of households to be electrified to be counted in this scheme.

In blog today, PV Tech focuses on how a decentralised mini-grid from Husk Power Systems and First Solar in the state of Uttar Pradesh is also helping to solve the issue of quality and reliability of power, since new grid connections often come with regular blackouts and unstable electricity supply.

William Brent, director of energy access coalition Power For All, also recently guest-blogged on how a group of private companies is pioneering a new approach to powering the agricultural industry in rural India that could significantly increase productivity of small-holder farmers, by combining mobile and stationary solar-powered mini-grids and linking them to a range of agricultural services, beginning with irrigation.

■ Solargiga’s revenue down less than 10% in 1H 2018

(July 17, 2018/pv-tech.org)

China-based integrated monocrystalline PV manufacturer Solargiga Energy Holdings has reported a small increase in external shipments in the first half of 2018, while revenue declined by less than 10%.

Solargiga has reported certain unaudited consolidated financial results ahead of full disclosure that included total revenue in the first half of 2018 of RMB 1,805.5 million (US$270 million), a 9.3% decline from the prior year period.

The sales decline is believed to be primarily due to ASP declines.

Total external product shipments were 1,207MW, up 3.9% from the prior year period.

Solargiga had previously reported 2017 revenue of RMB 3,999 million (US$637 million), which was an increase of 32% from RMB 3,020 million in 2016. The increase in revenue was attributed to several key factors, not least the record PV installations in China in 2017 that exceeded 53GW.

■ Indian investigator recommends 25% safeguard duty on solar imports

(July 16, 2018/pv-tech.org)

UPDATED: India’s Directorate General of Trade Remedies (DGTR) has recommended imposition of a safeguard duty on imports of solar cells from China and Malaysia over a two-year period, starting at 25% in year one.

In year two of the duty, it would be reduced to 20% for the first six months and to 15% in the final six month period. It would also apply to imported cells that are already assembled in modules or panels.

DGTR said the aim is to "prevent complete erosion" of India's solar manufacturing base.

A source from one of the petitioners told PV Tech that there are two more steps to be taken for the recommendations to become law: “The Standing Committee of Safeguards will meet, in which there are several representatives of the government, and they will then decide on this recommendation. Once their decision is taken then they will send the necessary paperwork to the Ministry of Finance who will issue the customs notification for making it law."

Vinay Rustagi, managing director at consultancy firm Bridge to India, told PV Tech that the process has been going on for a very long time and the expectation is that a final decision would be announced very soon unless someone again appeals against the decision (as happened when Shapoorji Pallonji took the recommendation of a provisional safeguard duty to the Chennai High Court earlier this year).

SEZ confusion persists

Ever since the original safeguard duty recommendation, there has been uncertainty over whether product from Indian manufacturers whose facilities are in Special Economic Zones (SEZs) will be subject to the safeguard duty.

Bridge to India's latest release stated: "There is no relief provided to SEZ-based units including Mundra, Vikram and Waaree. These ‘domestic manufacturers’ would be subject to duty when they sell modules in the domestic market unless they are given a special dispensation by the government. But the domestic manufacturing industry excluding SEZ-based players can barely meet 5% of total domestic demand."

However, Neeraj Chhabra, a research fellow at DGTR, Ministry of Commerce, told PV Tech that in this latest recommendation, SEZ units will be exempt from the safeguard duty as long as the solar cell was made in India.

Rakesh Tiwari, CFO, Mundra Solar, a unit of Indian conglomerate Adani, told PV Tech that the recommendation looks to the Customs Tariff Act for guidance. The Act guides on the movement from SEZ to parts of India that are outside SEZ’s, also known as Domestic Tariff Areas (DTA).

With this in mind, Tiwari said that as the safeguard duty is imposed on solar cells, if solar cells are imported to an SEZ and then converted to modules, and then sold into DTA, they will be subject to the safeguard duty on the cell component. Whereas if wafers are imported to the SEZ and then converted to cells and then to modules, they will not be subject to the safeguard duty.

Indian firms Helios, Websol and Mundra all import wafers and manufacture solar cells in SEZs.

However, PV Tech has received various commentaries that suggest some parties also have different understandings of the latest issuance. Another Indian firm, Vikram Solar, which assembles modules in an SEZ, said there was still ambiguity in the matter.

Gyanesh Chaudhary, MD and CEO, Vikram Solar, supplied the following statement to PV Tech: "It should be noted that if safeguard duty is imposed without exempting SEZ to DTA removal, it will affect the domestic manufacturing industry adversely as 3,825MW out of 8,898MW of installed capacity of solar modules is based in SEZ and 2,000MW out of 3,164MW of installed capacity for solar cells is based in SEZ.

"If Government wants to impose safeguard duty, it should exempt SEZ to DTA clearance of solar cells and modules from the ambit of SGD, otherwise it will lead to counterproductive results and destroy the domestic manufacturing industry which is already in bad shape.

"Or otherwise Government of India should come out with a specific exemption by restricting safeguard duties imposition to input costs (which is subject to duties of safeguard) for all SEZ to DTA clearance to accord equal protection to units in SEZ and DTA. Imposition of safeguard duties in the current manner will make SEZ units uncompetitive and will force them to shut their operations."

Meanwhile, Vinay Rustagi said that the DGTR has only said that it is not able to recommend duty protection for SEZ units because of their legal constitution and various prevailing laws. It has however left a window open for other government authorities to deal with this decision.

Reaction

Discussing the overall recommendation, Rustagi said: “It’s a very disappointing and fraught decision. The period of duty is obviously only two years which is very hard to understand because that is just too short for any new capacity to be set up. By the time any new manufacturer comes on stream, he will not be able to get any benefit under safeguard duties and I doubt any existing manufacturers will have the cash flow or the wherewithal to make any substantial benefit out of this.

“At the same time, it is going to be very, very harmful for the developers because of the whole test of negotiating a pass-through and expecting Discoms to take on the extra cost. To me it seems like a self-defeating exercise, without any meaningful outcome.”

Some solar tenders now include a pass-through option on the tariff in case of any change in the statutory laws like the imposition of an anti-dumping or safeguard duty on the solar PV modules.

Regarding the overall decision, Mundra Solar's Tiwari said: “We are delighted. That is going to save the domestic industry and we are looking forward to it. From our point of view it is a very balanced approach the government has taken to keep in view the interest of all the stakeholders, but we wanted a bit higher rate to be applicable.

“Even in the US the starting rate was 30% and here in the case of India, the injury margin is much higher than what it was there in the US.”

Adani is now hoping that the Ministry of Finance will raise the percentage to the range of 40-50% in its final notification.

The ISMA was still going through the DGTR’s recommendations at the time of writing and was unable to provide comment.

DGTR’s conclusions before reaching its recommendations were as follows:

There has been a significant increase in imports of the Product Under Consideration (PUC) in absolute terms as well as in relation to total Indian domestic production over the entire Period of Investigation (POI).
The domestic industry has suffered serious injury, considering overall performance, on the basis of listed economic parameters such as market share and profitability, which have sharply declined over the injury period 2014-2015 to 2017-2018 (Annualised) whereas market share of imports have increased during the same period. This has caused significant overall impairment to the domestic industry. The rise in imports and coinciding serious injury caused to the domestic industry during the injury period, establishes causality.
The domestic industry has been able to demonstrate that the developments in the market on surge in imports of the PUC were unforeseen in the context of Article XIX of GATT.
There will be some impact on the Solar Power Developers and also ultimate consumer as a result of safeguard duty on the PUC.
It is however concluded that imposition of safeguard duty in this case would be in public interest because it will prevent complete erosion of manufacturing base of Solar industry in the country which is upcoming and holds promise for a stronger manufacturing base in the country in future, at the same time, it is also in the public interest, to prevent undue escalation of Solar power cost, tariff to the final customer and that attainment of the target of 100 GW of Solar Power Deployment by 2022 is not derailed. The consideration of two competing interests require a balanced view.
From the analysis of post POI data, it has been observed that the position of domestic industry further deteriorated on account of continued low price of import of PUC which continued price injury to the domestic industry, thereby establishing the threat of injury as well.
A 75% safeguard duty was originally recommended by the Directorate General of Safeguards Customs and Central Excise in January, but in line with expectations, the latest recommendation has seen a rationalisation to a far lower duty.

Sunil Rathi, director, at Indian manufacturer Waaree Energies, said: "The current proposal from the DGTR comes as a relief and further strengthens our faith in the Government's support towards Indian manufacturers. Imposition of 25 per cent safeguard duty will provide the necessitated boost to solar cells and module manufacturers. We believe it will help achieve the required energy security in the country, and motivate players to become active partners, as India transitions towards becoming a renewable energy reliant country.

"Given a conducive environment, Indian manufactures are capable of innovation, product efficiency and quality. Safeguard duty is bound to ensure an even playing field for both domestic and imported products. We also foresee this initiative to help in more investments on R&D and disruptive technology.”

Article updated to include comment from Gyanesh Chaudhary, Rakesk Tiwari and Sunil Rathi of Vikram Solar, Mundra Solar and Waaree Energies, as well as a statement from Bridge to India.

■ India approaches 24GW of PV deployment, 26.5GW of solar parks approved - MNRE

(July 16, 2018/pv-tech.org)

India hit 23,866MW of solar power deployment as of 30 June this year, according to Ministry of New and Renewable Energy (MNRE) figures.

This was spread into three segments:

segment: Ground-mount
Capacity(MW): 21,803

segment: Rooftop
Capacity(MW): 1,219

segment: Off-grid/Captive power
Capacity(MW): 737

MNRE has simultaneously released a list of approved solar parks. The scheme had been increased from 20GW to 40GW but the timeline for their implementation was recently extended from 2019/20 to 2021/22. Tendering focus during 2018 has been far more focused on Interstate Transmission System (ISTS)-connected solar projects, in which developers have to secure their own land, transmission connectivity and project infrastructure, unlike with solar parks.

The list of approved parks, which can be found here, has now reached 26,449MW. Much of the recent figure would have been formed out of the approval of a 5GW solar park at Dholera in Gujarat, which is more than double the size of the next biggest solar park of 2GW at Pavagada in Karnataka.

In other news, Solar Energy Corporation of India (SECI) has also postponed the second pre-bid meeting for its 5GW manufacturing tender with 10GW of solar development until further notice while it prepares certain amendments and clarifications.

■ Daqo New Energy’s wafer shipments plummet in Q2

(July 16, 2018/pv-tech.org)

China-based polysilicon and wafer producer Daqo New Energy is feeling the significant impact from the recent change in the Chinese government’s solar deployment policies as multicrystalline wafer shipments have been slashed by as much as 50% for the second quarter of 2018.

Daqo has revised its wafer shipment guidance for the second quarter of 2018 to approximately 9.5 million to 10.0 million pieces, down from previous guidance of 15.0 million to 20.0 million pieces.

The company had reported first quarter 2018 shipments of 13.3 million pieces, compared to initial guidance of shipments being the range of 15 million to 20 million pieces.

Daqo has seen steep declines in demand since the fourth quarter of 2017, although seasonality plays a part. Quarterly wafer shipments peaked at 27 million pieces in the second quarter of 2017.

The multicrystalline wafer market is also coming under increased pressure from higher efficiency P-type monocrystalline wafers, which have become increasingly cost competitive and the de facto wafer of choice for PERC (Passivated Emitter Rear Cell) technology.

However, Daqo noted that it was the Chinese government’s recent decision to cap solar deployments in the utility-scale and Distributed Generation (DG) markets that has impacted domestic demand for its wafers.

This has had a knock-on effect on its external polysilicon sales during the second quarter of 2018, which the company said would be approximately 3,800MT to 3,900MT, compared to its previous guidance of approximately 5,300MT to 5,500MT. Daqo noted that it had sold approximately 2,600MT of polysilicon during the first two weeks of July and reduced inventory to low levels.

The company also pre-announced that it had produced 5,659MT of polysilicon during the second quarter of 2018, which was within the range of its previously announced guidance of 5,600MT to 5,800MT. Daqo also reiterated its full year 2018 polysilicon production guidance of 22,000MT to 23,000MT, which takes into account the impact of annual facility maintenance.

Longgen Zhang, Chief Executive Officer of Daqo New Energy, commented, “We remain confident in the long-term sustainable growth of polysilicon industry despite the new policies’ impact on shipments in the short-term. The new policies created significant uncertainty in the market and disrupted our downstream customer’s production plans. At the same time, polysilicon average selling prices saw increased volatility in June but have since stabilized over the past two weeks.”

Longer-term, Daqo is shifting polysilicon production and new capacity plans to higher purity polysilicon to meet the demand for monocrystalline wafers.

In April, 2018, leading fully-integrated high-efficiency monocrystalline module manufacturer and ‘Silicon Module Super League’ (SMSL) member LONGi Green Energy Technology secured an ultra-high-quality polysilicon supply agreement with Daqo, which amounted to 39,600MT over a 32-month period.

“The sudden change in policy hasn’t impacted our long-term strategic plan to strengthen our leadership position in the industry by further increasing our capacity, improving our cost structure and polysilicon purity,” added Zhang.

According to a recent investor note by ROTH Capital analyst, Philip Shen, approximately 30% of China's polysilicon capacity is currently idled, primarily through extended facility maintenance periods that could see capacity in July over 40% lower than it was in May, 2018.

Shen, also noted that Top-tier producers were able to maintain high utilization rates and were clearing inventory in contrast to smaller producers struggling with the lower demand in China.

■ Acme bags 2.44 rupee hat-trick in 3GW Indian solar auction

(July 13, 2018/pv-tech.org)

Indian firm Acme Solar has matched its record – the lowest ever solar bid in India – once again during Solar Energy Corporation of India’s (SECI) 3GW Interstate Transmission System (ISTS) solar auction.

The firm is set for 600MW of capacity at a price of INR2.44/kWh (US$0.036), a tariff with which it bagged 600MW of capacity in the recent 2GW ISTS solar auction from SECI and 200MW in Rajasthan in May 2017, the first time such a low tariff had been reached in India.

Other results in the 3GW auction were as follows.

Bidder / Tariff (INR/kWh) / Capacity (MW)
Acme / 2.44 / 600
Azure Power / 2.64 / 300
Rutherford Solarfarms (Canadian Solar) / 2.70 / 200
Mahoba Solar / 2.71 / 300
ReNew Power / 2.71 / 500
SBG Cleanteach / 2.71 / 1,100 (bid for 1,800)

Mahindra, Mytrah, Tata Power, Hero Future Energies and Sprng all lost out with bids ranging from 2.72-2.90 rupees.

Technical bids totaling 5.1GW were received against the tendered capacity of 3GW by 12 companies.

"We are excited to win this project and consistently offering most competitive tariff, this project will encourage us in our endeavour to bring green energy in the country," said Manoj Upadhyay, founder and chairman, ACME Group. His firm also won capacity in the 1GW Uttar Pradesh auction this week.

■ Siemens to equip 258MW Vietnam solar project

(July 13, 2018/pv-tech.org)

German firm Siemens has won a contract to supply inverter systems and other equipment to investment and construction corporation Trungnam Group’s 258MW solar farm in the southern Vietnamese province of Ninh Tuan.

The farm is the first solar project for Siemens in Southeast Asia, where it will supply inverters, power and distribution transformers, gas-insulated medium-voltage switchgear, circuit-breakers, and a monitoring and control system.

In a statement Siemens noted: “Solar panels will generate a combined DC voltage of 1,500V. Inverters will convert the DC to 660V AC, and transformers will first step this up to 33kV and finally to 220kV. This will then be fed into the high-voltage grid and the power distributed around the country.”

Stephan May, CEO of the Siemens Medium Voltage and Systems Business Unit, said: "The customer received our competent support in the bidding phase and will get a very competitive solution. We are proud to be able to offer the best solution that will play a vital role in supporting the energy transformation in Vietnam."

Trungnam Group will also use single-axis trackers on the project, which is expected to be complete by mid-2019 delivering up to 425GWh per year.

A joint venture between Thai energy firm B.Grimm Power and Vietnamese conglomerate Xuan Cau Group are also building a 420MW solar PV facility in Vietnam.

Article amended to remove the contract value figure.

■ Bidders go for sizable ‘risk cushion’ in 1GW Uttar Pradesh solar auction

(July 11, 2018/pv-tech.org)

Tariffs in a 1GW solar auction in the Indian state of Uttar Pradesh have hit INR3.48-3.55/kWh (US$0.051-0.052), which is significantly higher than bids in other recent Indian auctions for a number of reasons.

Vinay Rustagi, managing director of consultancy firm Bridge to India, told PV Tech that winning projects will sell power directly to Uttar Pradesh distribution companies (Dicoms), which are amongst the worst rated in the country.

He added: “There have already been multiple incidents of PPA renegotiation on older tenders in the state. So it is logical that developers will add sufficient risk cushion in their bids.”

The results of the tender from Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) for capacity to be set up across the state are shown in the table below. Developers could submit different bids for projects in separate locations.

Bidder / Capacity (MW) / Tariff (INR/kWh)
Mahoba Solar (Adani) / 250 / 3.48
Maheshwari Mining and Energy / 20 / 3.48
Acme / 150 / 3.54
Feynman Solarfarms (Canadian Solar) / 50 / 3.54
Sukhbir Agro Energy / 50 / 3.54
Rays Power Infra / 50 / 3.55
Eden Renewable Jasmin / 50 / 3.55
Acme / 150 / 3.55
Azure Power / 160 / 3.55
Hero Solar Energy / 50 / 3.55
Feynman Solarfarms (Canadian Solar) / 20 (bid for 50) / 3.55

Rustagi also noted that operational execution is more challenging in Uttar Pradesh and land is costlier, while radiation is also slightly lower as in comparison to the best sites in other states.

This week’s prices are perhaps also not surprising given that tariffs in Uttar Pradesh have been historically amongst the highest in the country.

However, Ali Imran Naqvi, vice president of advisory and engineering firm, Gensol Group, said: "While a feeling had recently dawned upon many that solar bidding is a back-of-the-envelope game, the recent results in UP’s 1,000MW solar auction has once again left many bewildered, keeping in mind the 2,000MW ISTS auction concluded by SECI some days back. The mystery still remains shrouded for some.

"However, we are still inclined to believe that tariffs have some common assumptions built in that seem to be flashing in the financial models of the bidders. For one, and the more obvious one, UP receives radiations that is some 10% lower than Rajasthan. Then again, our experience shows that radiations in UP have thrown deviations in the range of 5-9%. Finally, the construction timeline is almost half (13 months) in UP when compared with SECI’s recent ISTS tender. All these factors have a lot of commercial ramifications.

"As far as safeguard duty is concerned, the private and the government sector seems to be training diagonally opposite views. While a major private player is confident that the duty is just staring the face, a top government-run entity has snubbed the prognosis."

In total 13 companies had shown interest in the auction, submitting bids with an aggregated capacity of 1,870MW.

Recent tenders elsewhere in India saw far lower prices, with an L1 tariff of 2.44 rupees in SECI's 2GW pan-India auction and 2.70 rupees in a 750MW auction in Andhra Pradesh.

Last month, Finnish company Fortum and Indian giant Tata Power Renewable Energy Limited (TPREL) were also both awarded 250MW of capacity each at the Pavagada Solar Park in Karnataka, both with tariffs of 2.85 rupees per unit.

■ Indian government issues guidelines on lab testing of solar modules

(July 10, 2018/pv-tech.org)

India’s Ministry of new and Renewable Energy (MNRE) has issued guidelines on how to conduct testing on solar PV modules in test labs.

This comes as part of the implementation of Solar Photovoltaics Systems, Devices and Component Goods Order 2017, which imposes standards on certain PV equipment across India, and more recently energy storage products.

The guidelines cover testing crystalline and thin-film, including bifacial technology.

For a quantitative selection of samples, MNRE suggests taking a total of eight modules at random from production batches. Among a range of instructions, MNRE said that modules should contain the bypass diode wherever applicable, but in the case of the modules having a sealed junction box the client should provide one extra module with access to the diode for conducting the bypass diode test.

Modules should be clearly marked with details such as model number and nominal wattage, while module suppliers must also provide details such as maximum system voltage or the module will not be accepted by the testing house.

For module safety qualifications, a total of seven modules should be tested with the module manufacturer supplying its bill of materials and fabrication.

MNRE also outlined a procedure for retesting, in the case of a change in certain factors such as cell technology, a modification to encapsulation system, modification to the substrate, increase in module size, modification to back sheet material and so on.

For fire tests, the necessary number of fire test samples will depend on the size of the PV panel and fire safety class declared by the manufacturer. For this, another three modules are required to be submitted to the test lab.

Different brands are required to be registered separately unless the product and the manufacturing location are the same.

■ Trungnam to use trackers on 258MW solar project in Vietnam

(July 10, 2018/pv-tech.org)

Trungnam Group will use single-axis trackers for a 258MW solar project located in Ninh Thuan Province, Vietnam, which is claimed to be the first tracker-based PV project in the country and the largest with trackers in Southeast Asia.

The project is expected to start commercial operation in June 2019.

Nguyen Tam Tien, CEO of Trung nam Group, said: "This landmark project marks a milestone in Vietnam's journey to grow the clean energy industry. We were cautious to select suppliers for this key equipment. We are happy to work with Arctech Solar and believe this project will have higher economic returns compared with fixed mounting structures by adopting Arctech's innovative Skyline tracking system."

■ PowerChina bags 420MW solar EPC contract in Vietnam

(July 10, 2018/pv-tech.org)

A joint venture between Thai energy firm B.Grimm Power and Vietnamese conglomerate Xuan Cau Group has awarded Beijing-based PowerChina International Group a contract to build the largest solar PV project in Southeast Asia.

The 420MW facility, announced in June and located in Tay Ninh, southwest Vietnam, is scheduled to start operation in June next year. It will cost around US$420 million.

B.Grimm aims to boost its generating equity to 5GW by 2022.

Sunseap International, a subsidiary of Singapore-based Sunseap Group, recently started construction of its 186MW facility also in Vietnam, in Ninh Thuan province.

■ NTPC’s 2GW solar tender heavily oversubscribed

(July 9, 2018/pv-tech.org)

Softbank's joint venture, SBG Cleantech has caught the eye by submitting a technical bid for the full 2GW capacity available in an Interstate Transmission System (ISTS)-connected solar tender from Indian state-run utility NTPC.

The tender has been also oversubscribed three-fold with 6.2GW of technical bid submissions.

The final list of participants was as follows:

SBG Cleantech – 2,000MW
Acme – 600MW
ReNew – 500MW
Adani – 500MW
Shapoorji – 500MW
Avaada – 300MW
Azure – 300MW
Sprng – 300MW
Tata Power – 250MW
Alfanar – 250MW
Mahindra – 250MW
Aditya Birla – 200MW
HFE – 200MW
Orange – 50MW

Indian solar tariffs matched their lowest ever in the most recent 2GW ISTS-connected auction from Solar Energy Corporation of India (SECI), hitting INR2.44/kWh (US$0.036) for the first time since May 2017, and with much of the capacity expected to be set up in Rajasthan.

Meanwhile, a 200MW tender in Odisha, one of the first to include a pass-through option in case of change in law, was also heavily oversubscribed.

Winning bids in the latest solar auction in the Indian state of Andhra Pradesh ranged between INR 2.70-2.71/kWh (US$0.0391-0.0394/kWh).

■ Famed 750MW Rewa Solar Park comes online in Madhya Pradesh

(July 9, 2018/pv-tech.org)

The 750MW Rewa Solar Park in Madhya Pradesh, which drew what were at one time the lowest ever solar tariffs in India, has started supplying power to the grid.

Rewa Ultra Mega Solar Ltd (RUMS), a joint venture between the state Discom Madhya Pradesh Urja Vikash Nigam Limited (MPUVNL) and the Solar Energy Corporation of India (SECI), announced on social media that power had begun to flow from the park saving INR20.76 billion (US$302 million) for state distribution companies and INR12.20 billion for the Delhi Metro, which is drawing power from the solar park.

Unique financing arrangements, a newly favourable economic environment and a payment guarantee were just some of the factors that drew record low bids for this park back in February 2017, with a lowest levelized tariff of INR3.29/kWh from Acme Solar for a 250MW project over 25 years. Solenergi and Mahindra developed the other 250MW projects in the park. PPAs were signed in April.

Since then Indian tariffs have come down as low as INR2.44/kWh once again from Acme Solar on both occasions (including one project outside of a solar park), as well as several other bidders going below the Rewa milestone. China’s recent solar policy overhaul is expected to bring module prices down in a significant boon for Indian solar, which relies overwhelmingly on imports from China.

Inspired by the Delhi Metro deal with RUMS, Solar Energy Corporation of India (SECI) has also touted auctioning a solar park of 1,050MW capacity in Madhya Pradesh, from which Indian Railways plans to purchase the power generated.

■ EnerTech eyes generation licence for 50MW solar project in Balochistan, Pakistan

(July 9, 2018/pv-tech.org)

EnerTech Quetta Solar (ETQSL), a unit of Kuwait government-owned company and renewables developer EnerTech, has applied for a generation licence for a 50MW solar PV project in the Balochistan Province of Pakistan.

The project would be located at Bostan, in the Pishin District, and would require an investment of US$49.85 million (80% debt / 20% equity), according to National Electric Power Authority (NEPRA).

It would include 147,060 polycrystalline modules of 340Wp supplied by Canadian Solar and the anticipated commissioning date is 30 June 2019.

ETQSL plans to sell the power to state-run Central Power Purchasing Agency (CPPA-G).

Stakeholders and the public are now invited to submit comments on the application.

In June 2016, EnerTech signed a bilateral agreement with the government of Pakistan to set up 500MW of solar plants in the western province of Balochistan.

Back in February NEPRA issued tariff determinations for 300MW of solar in Sindh and Punjab provinces, with prices well below grid parity, but is unclear if the developers of these projects have moved ahead with these determinations.

■ Softbank, Sprng and Ayana lowest bidders in 750MW Andhra Pradesh solar auction

(July 6, 2018/pv-tech.org)

Winning bids in the latest solar auction in the Indian state of Andhra Pradesh ranged between INR 2.70-2.71/kWh (US$0.0391-0.0394/kWh).

Under the tender issued by Solar Energy Corporation of India (SECI) in January, capacity will be set up in the Kadapa Solar Park.

The lowest bids were as follows:

Bidder / Capacity (MW) / Tariff (INR/kWh)
SB Energy (Softbank) / 250 / 2.70
Sprng (Actis) / 250 / 2.70
Ayana (CDC Group) / 250 / 2.71
Acme and Fortum lost out on capacity at this stage with bids of 2.71 and 2.79 rupees respectively.

The Kadapa solar park saw what was temporarily the lowest ever solar bid in India in April 2017 of INR3.15/kWh from French firm Solairedirect.

Indian tariffs did match their lowest ever again this week with a INR2.44/kWh bid from Acme Solar for 600MW in a 2GW pan-India tender from SECI.

The state of Odisha's 200MW solar tender was massively oversubscribed this week.

■ Sonnedix closes financing for 41.6MW Japan solar project

(July 6, 2018/pv-tech.org)

Sonnedix Japan has reached financial close on a JPY16.5 billion (US$149 million) non-recourse financing with Sumitomo Mitsui Banking Corporation (SMBC) for the 41.6MW Sano solar PV plant in the Tochigi prefecture, Japan.

Sonnedix currently has more than 160MW of capacity in construction managed by Sonnedix Japan.

Andreas Mustad, CEO of Sonnedix, said: “The scale with which we are growing our global platform is exemplified by the pace of progress in Japan. Whether we build or acquire a PV plant, we are committed to optimize each investment for the long-term.”

EPC contractor juwi Shizen Energy has begun construction of the Sano solar plant, which is expected to start operation in late 2020. When completed, the solar plant will generate approximately 45,000MWh of clean electricity per annum, equivalent to the amount consumed by approximately 15,000 households.

Sonnedix Japan also recently reached financial close on a US$126 million non-recourse debt facility with MUFG Bank for the 46.6MW Tono PV project.

■ JinkoSolar to supply 86MW of mono modules to largest solar plant in Colombia

(July 5, 2018/pv-tech.org)

JinkoSolar will supply 86MW of solar modules for a PV plant located in the Colombian department of Cesar, northern Colombia.

The project will be composed of 250,000 JinkoSolar monocrystalline standard modules of 345W and 1500V and it will generate an average of 176GWh of clean energy per year.

"We are pleased to work on this remarkable project in Colombia," commented Alberto Cuter, general manager LATAM of JinkoSolar.

"Actually the Colombian market is mainly depending by hydropower, which could be an issue during dry season. PV solar will be a good solution to integrate the energy matrix of the country. While we are expecting Colombian PV market to grow rapidly, we will continue working closely with local developers to build sustainable partnerships where they will be able to maximize their return on their investment from the superior performance of JinkoSolar's products."

■ ADB promoting renewables in US$90 million loan to Cambodian agribusiness

(July 5, 2018/pv-tech.org)

The Asian Development Bank (ADB) has approved a US$90 million loan to help Cambodia strengthen climate resilience and modernize the agriculture sector, including the promotion of renewable energy.

The project will boost the climate resilience of agricultural infrastructure and help to improve the competitiveness of the value chains of rice, maize, cassava and mango production in Cambodia. This includes rehabilitation of irrigation and water management infrastructure; upgrading of agricultural cooperatives’ value chain infrastructure; improvement of farm-to-market roads; upgrading of infrastructure for safety and quality testing; and the promotion of renewable energy – solar energy in particular – to reduce greenhouse gas emissions.

The Climate-Friendly Agribusiness Value Chains Sector Project will also be funded by an additional US$10 million loan and a US$30 million grant from the Green Climate Fund (GCF).

This the first project to be implemented following the adoption of Strategy for Promoting Safe and Environment-Friendly Agro-based Value Chains in the Greater Mekong Subregion (GMS) and Siem Reap Action Plan, 2018-2022.

“Agriculture plays a significant role in Cambodia’s economy, but the sector has largely relied on subsistence farming,” said ADB principal climate change specialist for Southeast Asia, Srinivasan Ancha. “ADB and GCF’s support will help the country’s agriculture sector move toward more modern, climate-resilient practices and contribute to Cambodia’s economic growth.”

The total cost of the project is US$141.04 million, with the Government of Cambodia and beneficiaries contributing US$11.04 million. It is expected to be completed in the third quarter of 2024. The agriculture industry accounts for about 33.7% of Cambodia’s gross domestic product.

Regulations released in Cambodia earlier this year halted the market for low voltage solar systems connected to the grid, but the larger consumer and the off-grid segments continue to show promise.

■ Sri Lanka awards 10MW solar plant to Didul

(July 5, 2018/pv-tech.org)

Sri Lanka's Cabinet of Ministers has awarded a 10MW solar project contract to Colombo-based firm Didul, at a cost or LKR12.49/kWh (US$0.079).

The solar plant will be located on land near a substation in Valachchenai, Eastern Sri Lanka, and will be set up on a Build Own and Operate (BOO) basis.

The Cabinet approved the proposal presented by Ranjith Siyambalapitiya, Minister of Power and Renewable Energy to award the contract.

Back in January, the Ceylon Electricity Board (CEB) issued a request for proposal (RfP) for 90 small-scale solar projects of 1MW capacity each under the second stage of the Suryabala Sangramaya Programme – Phase II.

■ Food conglomerate contracts Gunkul for Thailand’s ‘largest’ rooftop solar project

(July 4, 2018/pv-tech.org)

Thai agro-industrial and food conglomerate Charoen Pokphand Foods (CPF) has signed an agreement with local clean energy firm Gunkul Engineering to install a 40MW rooftop solar project at CPF’s manufacturing plants for self-consumption.

Thailand does not currently allow solar plants used for self-consumption to export excess power back into the grid, but the cost of power means that commercial and industrial (C&I) solar providers can often still provide significant cost savings to such consumers in Thailand. It has been said that corporates could account for one-third of all renewable energy power purchase agreements (PPAs) in the next three-to-five years.

The ‘CPF Solar Rooftop’ project is expected to be the largest collective solar rooftop project to date in Thailand, with 34 PV systems spread across four business units including livestock, aquaculture, food processing and ready-to-eat meal plants and a total install area of 230,000 square metres.

The project value is estimated at THB1.4 billion (US$42 million). Gunkul will make 100% of the investments for the project including design, construction, and system maintenance through to the end of a 15-year PPA contract.

■ India extends implementation timeline for Solar Parks scheme

(July 4, 2018/pv-tech.org)

India’s Ministry of New and Renewable Energy (MNRE) has extended the timeline for implementation of its 40GW Solar Parks scheme from 2019-20 to 2021-22.

In a memorandum released earlier this week, MNRE said the timelines had been extended “without any additional financial implication”.

The original 20GW solar parks scheme, which had itself seen delays in infrastructure building and other issues, was extended to 40GW back in February 2017, but since then tendering and procurement action has been quiet, while the government shifted towards tendering out Interstate Transmission System (ISTS)-connected projects that can be located anywhere in India.

However, plans for a 5GW solar park in Gujarat were recently approved.

Yesterday, Indian solar tariffs matched their lowest ever in a 2GW ISTS auction from Solar Energy Corporation of India (SECI), hitting INR2.44/kWh (US$0.036) for the first time since May 2017, and with much of the capacity expected to be set up in Rajasthan.

■ Proinso and Joules Power to complete 28MW Bangladesh solar plant imminently

(July 4, 2018/pv-tech.org)

Proinso UK, providing procurement and engineering through its EPM unit (Engineering Procurement Management), and Dhaka-based independent power producer Joules Power Limited (JPL) are due to commission a 28MW solar project in Bangladesh this month, which they claim to be the first utility-scale PV project in the country.

A special purpose vehicle (SPV) Technaf Solartech Energy Limited (TSEL) is providing EPC services on the project located in Teknaf, a sub-district of Cox’s Bazar, in the division of Chittagong. This area is the southernmost point of mainland Bangladesh and has a population of over 200,000. The expected annual generation from the project for year one is 43,000MWh and at peak production the plant supply will cover up to 80% of the present electricity demand of the Teknaf region.

GuarantCo, part of the Private Infrastructure Development Group (PIDG), is working with the developers on providing an unconditional credit guarantee for over 50% of the project debt. Project funding has also been secured through debt finance by Standard Chartered Bank and One Bank.

Rayan Moyeen, operations director at JPL, said: ”TSEL has overcome various challenges and obstacles; advocating for and even affecting policy changes for the renewable energy sector, paving the way for easier implementation of future projects for all. It is truly a pleasure to be able to aid our country in contributing to the global clean energy revolution to battle the threats of global warming and climate change.”

Bangladesh is aiming for 10% renewables in its energy mix by 2020.

■ Hanwha Q CELLS cuts carbon for French market

(July 3, 2018/pv-tech.org)

Hanwha Q CELLS has recorded a manufacturing carbon footprint of 250 kg-eq/C02/kWc for its Q.PEAK DUO modules, opening up access to more of France’s robust solar market.

The country restricts access to certain tender programmes based on the carbon footprint of the modules used for projects. Last summer several manufacturers were reporting that they were sold out of panels eligible for these programmes as the French market continued to steadily rebuild.

The modules include half cut cells, the manufacturer’s proprietary Q.UANTUM technology (passivated emitter rear cell), and either 120 or 144 half cut cells (330W or 395W respectively).

“Hanwha Q CELLS has always been keenly aware of the importance of selling eco-friendly products,” said Stephan Maurel and Laurent Bodin, head of sales, France. “We are pleased that our portfolio is ideally aligned to meet the clean energy needs of an important market such as France.”

In February the country also awarded 73MW of capacity for projects with advanced technology promoting floating solar, new forecasting software, solar greenhouses and bifacial modules, as well as divvying out another 508MW under its large-scale PV programme.

A further 200MW of capacity for rooftop projects was awarded in April.

■ JinkoSolar in US$47.8 million loan agreement to expand business in Japan

(July 2, 2018/pv-tech.org)

Leading ‘Silicon Module Super League’ (SMSL) member JinkoSolar has secured a JPY5.3 billion (US$47.8 million) syndicated loan agreement for up to two years with a bank consortium led by Sumitomo Mitsui Banking Corporation (SMBC) to expand its business in Japan.

The SMSL recently reiterated its PV module shipment guidance to be in the range of 11.5GW to 12GW for 2018, after reporting record 2017 shipments of 9.8GW.

In its latest earnings call, JinkoSolar noted that Japanese FiT subsidies continued to decrease, while there was a gradual shift to a bidding system that was creating new business opportunities.

At Intersolar Europe 2018, Japanese market research firm, RTS Corporation highlighted that proposals have been put forward to the government to support PV deployments of 150GW through 2030 as part of de-carbonising the economy.

RTS also noted that the 2019 FiT system would be lowered to below the general electricity charging rates, potentially pushing higher self-consumption and energy storage in the residential market.

The market research firm had estimated Japan installed around 7GW of PV in 2017 and guided installations to be in the range of 6GW to 7.5GW in 2018.

■ India ROUND-UP: Ecoppia 580MW for SB Energy, Tata’s 100MW in AP, NTPC 1MW floating PV in Gujarat

(July 2, 2018/pv-tech.org)

Tata completes 100MW of solar projects in Andhra Pradesh

2 July: Tata Power Renewable Energy (TPREL), a subsidiary of Indian giant Tata Power, has commissioned 2x50MW solar projects in Anthapuramu Solar Park, Andhra Pradesh.

The overall operating renewable capacity of TPREL now stands at 2,215MW in India.

The sale of power from this solar plant has been tied up under a 25-year power purchase agreement with Solar Energy Corporation of India (SECI).

“We plan to add around 1,000MW renewable energy capacity to our portfolio every year, scaling it to 45-50% in the next five years, largely through organic growth,” said Praveer Sinha, CEO and managing director, Tata Power.

"The commissioning of 100MW capacity in Anthapuramu has fortified our position as a leading renewable energy company in the country with a strong presence in solar power generation. We will continue to seek potential of sustainable growth in India and selected International geographies,” said Ashish Khanna, president-renewables, Tata Power.

Ecoppia providing cleaning robots for 580MW of SB Energy PV projects in Rajasthan

2 July: Solar cleaning solutions specialist Ecoppia has agreed with SB Energy, a wholly-owned subsidiary of SoftBank Group, to deploy two thousand dry cleaning robots across its five sites in Bhadla Phase III & IV Solar Park project in the Indian state of Rajasthan.

This announcement comes on the heels of Ecoppia's recent completion of large-scale deployments with ENGIE and Ostro Power (Actis Group) in the Bhadla park.

Bhadla is a water-deficient region that suffers from frequent dust storms, resulting in panel soiling that can reduce energy output.

SB Energy's project panels will be cleaned daily by Ecoppia robots, which are remotely managed through a cloud-based control system. The water-free Ecoppia solution will save roughly more than 2 billion of litres of water during the 25 years of solar plant operations.

NTPC tenders 1MW floater in Gujarat

2 July: State-run utility NTPC has tendered for a 1MW floating solar plant at NTPC Kawas, Adityanagar, Surat, Gujarat.

The deadline for bid-subsmissions will be 30 July 2018.

■ Sharp completes 1.6MW solar project at Indonesian sports complex

(July 2, 2018/pv-tech.org)

Sharp Energy Solutions Corporation (SESJ), a subsidiary of Japan’s Sharp Corporation has completed a 1.6MW solar project inside Jakabaring Sports City, a sports complex in Palembang, South Sumatra, Indonesia.

The project was built in collaboration with local energy solutions company Perusahaan Daerah Pertambangan Dan Energi (PDPDE). It started operations on 10 April 2018 and was officially inaugurated on 30 June 2018.

It was constructed after qualifying for the Joint Credit Mechanism (JCM) Subsidy Program, run by the Japanese Ministry of the Environment (MOE), which seeks to support low-carbon technology projects in developing countries. Sharp was acquired by Taiwan's Foxconn, Apple's iPhone assembly partner, in 2016.

■ SECI tenders another 3GW of ISTS-connected solar projects

(July 2, 2018/pv-tech.org)

Solar Energy Corporation of India (SECI) has tendered another 3GW of interstate transmission system (ISTS)-connected solar PV projects across India.

The Request for Selection (RfS) document said that SECI will sign 25-year power purchase agreements (PPAs) for the PV capacity, with a maximum tariff fixed at INR2.93/kWh (~US$0.0427).

The tender includes design, supply, construction, procurement, installation, testing, and commissioning of the project. Minimum project capacity will be 50MW and one player can bid for a maximum of 1.8GW of capacity.

The bid-submission deadline is 17 August this year.

SECI’s initial 3GW ISTS solar tender was reportedly oversubscribed by 2.1GW, while its 2GW ISTS tender has also been oversubscribed by 1.8GW.

The Ministry of Power recently stipulated that for projects yet to be auctioned, solar procurers had the option of giving developers more time to secure financing, transmission connectivity and to complete projects.

SECI recently issued a Request for Selection (RfS) document for 2.5GW of hybrid wind and solar projects to be connected to the ISTS.

Indian state-run utility NTPC has also got at least 2GW of ISTS solar tenders out.

Meanwhile, the government is also in the process of major solar manaufacturing tenders to be combined with PV projects.

■ REC Silicon cuts polysilicon production at Moses Lake plant to 25% of capacity

(July 2, 2018/pv-tech.org)

REC Silicon is further reducing its workforce in Moses Lake, Washington due to the ongoing solar trade war between China and the US.

Due to a lack of official talks over anti-dumping and countervailing import duties on polysilicon made in the US, which previously supplied ingot/wafer production in China, REC Silicon is reducing its workforce at its Moses Lake plant by around 40%, or around 100 employees, leaving around 400 workers at its facilities in Moses Lake, Washington and Butte, Montana.

Before the trade war, REC Silicon employed approximately 900 workers in the US and had annual revenue of around US$1.0 billion. The company reported revenue of around US$272 Million in 2017.

Additional impairments to inventories, accounts receivable, and fixed assets were said to be expected in its second quarter earnings release on July 19, 2018.

REC Silicon also noted ahead of its second quarter 2018 earnings release that it had approximately US$42 Million in cash deposits and expected to report approximately US$58 million in revenue for the quarter.

Fluidized bed reactor (FBR) production is expected to be 2,040MT or 240MT below the guidance on April 26, 2018.

The company also highlighted that President Trump and U.S. Trade Representative Robert Lighthizer had been committed to finding a resolution to the China tariffs on polysilicon import duties, which have effectively excluded US polysilicon makers such as Hemlock Semiconductor from the largest market, yet there had not been any re-opening of the China market to REC Silicon.

PV Tech has previously highlighted that the Chinese government wanted the country to become self-sufficient in high-purity polysilicon production for both its solar and semiconductor industries, encouraging capacity expansions to meet demand growth.

China impacted by demand slowdown

However, a recent twist to policy, which has seen an installation cap placed on the utility-scale PV market and the Distributed Generation (DG) markets, resulting in PV deployments expected to be in the 30GW to 35GW range in 2018, down from over 53GW in 2017, has started to impact polysilicon demand in China.

Equity investment firm ROTH Capital reported last week that its channel checks indicated that around 150,000MT of polysilicon capacity in China out of approximately 400,000MT of capacity had recently been idled to limited overcapacity and ASP declines.

The lull in demand has enabled some firms to undertake annual maintenance of facilities but operations may be under maintenance for an extended period, according to ROTH. The firm also highlighted that some of the major capacity expansions underway could be halted, noting that un-named Chinese banks had stopped loan activity related to polysilicon capacity expansions.

PV Tech has previously highlighted that the Chinese government wanted the country to become self-sufficient in high-purity polysilicon production for both its solar and semiconductor industries, encouraging capacity expansions to meet demand growth.

REC Silicon has a JV in China to supply second-generation FBR polysilicon to the China market.