India X Cleantech — August 2021
Originally published on Future Trends.
Welcome to another issue of our new India x Cleantech series! On a monthly basis, we are pulling news from across clean technology sectors in India into a single, concise summary article about the country.
Cleantech Investments
First Solar Plans $684 Million Module Fab In India
US-based thin-film module manufacturer First Solar has announced plans to set up a facility in India. The company plans to invest $684 million to set up a production capacity in the state of Tamil Nadu with an annual production capacity of 3 gigawatts. The facility is likely to be operational by mid-2023 and will increase First Solar’s global production capacity to 16 gigawatts. First Solar hopes to take advantage of a recently announced incentive scheme for cell and module manufacturers by the Indian government.
IndiGrid Acquires 100 Megawatts Solar Projects From Fotowatio
Infrastructure Investment Trust IndiGrid acquired two solar power projects from Fotowatio Renewable Ventures. The projects have a total capacity of 100 megawatts and are located in a solar power park in Andhra Pradesh. This is the first solar power acquisition by IndiGrid, which holds the power transmission projects of Sterlite Transmission.
Rayzon Solar Plans To Expand Module Production Capacity To 1.2 Gigawatts
Indian solar module manufacturer Rayzon Solar has announced plans to expand its production capacity from 300 megawatts to 1,500 megawatts per year. The company will expand its Gujarat-based manufacturing unit and has placed orders with Chinese companies for the supply of manufacturing equipment.
Reliance Industries May Acquire REC Group
One of India’s leading industrial conglomerates, Reliance Industries, is reportedly looking to acquire Norwegian solar module manufacturer REC Group. The reports come weeks after Reliance Industries announced plans to set up solar cell and module manufacturing units in the state of Gujarat.
Enel Green Secures $50 Million Debt For 300 Megawatt Solar Project
Enel Green Power India has secured debt funding worth $50 million for its 300 megawatt solar power project in the state of Rajasthan. The funding has been provided by the Asian Infrastructure Investment Bank. The project was awarded to Enel as part of a 2 gigawatt solar power auction conducted by the Solar Energy Corporation of India.
Azure Power Lands $163 Million Debt Funding From Japanese Group
Nasdaq-listed Azure Power has secured debt funding worth $163 million from multiple lenders led by Japan’s Mitsubishi UFJ Financial Group. Five-year debt will be used for the construction of a 300-megawatt solar power project located in the state of Rajasthan.
Thailand’s PTT Group Acquires Stake In Avaada Energy
Global Power Synergy, a subsidiary of Thailand’s PTT Group, has acquired a 41.16% stake in solar IPP Avaada Energy for $453 million. Avaada Energy has a portfolio of 3.7 gigawatts, including 2.3 gigawatts of capacity under construction. PTT currently has a renewable energy portfolio of 2.1 gigawatts and plans to increase it to 8 gigawatts by 2030.
KKR-based Renewable Energy Infrastructure Investment Trust Files For IPO
Virescent Infrastructure is looking to raise Rs 4.25 billion through an infrastructure investment trust IPO. The company owns 394 megawatts of renewable energy assets spread across Maharashtra, Gujarat, Rajasthan, Uttar Pradesh, and Tamil Nadu. The company is owned by KKR and Co.
Acme Raises $344 Million Through Green Bonds
One of India’s leading solar power generation companies, Acme Solar Holdings, has successfully raised $344 million through a green bonds issue. The bonds have a tenure of five years and were priced at 4.7%. Proceeds from this green bond issue will be used by the company to complete 12 under-construction projects. The company has 2.2 gigawatts of operational assets and 2.4 gigawatts of capacity under construction.
Senvion’s India Business Sold To Alfanar
The Saudi Arabia-based manufacturer of power equipment Alfanar has completed the acquisition of Senvion’s India business. Alfanar completed the transaction through Global Renewable Energy Development Holding Company Limited, which acquired Senvion India in December 2020. Senvion Group was acquired by Suzlon Energy, once India’s largest wind energy solutions provider, in 2007. The group was known as REpower Systems at that time. Suzlon was forced to sell Senvion in 2016 to a private equity investor after the former entered a financial tailspin.
Electric Mobility
Ola Electric Receives 100,000+ Bookings In A Day For Upcoming Electric Scooter
Ola Electric, a subsidiary of cab-hailing service Ola, has received a tremendous response for its soon-to-be-launched electric scooter. Ola Electric reported that more than 100,000 potential buyers registered to buy the scooter. The company set a booking price of just Rs 500 ($6.70) for anyone looking to reserve a scooter. The company will manufacture the scooter at its Futurefactory. According to the company, the facility will be the largest electric scooter manufacturing facility in the world with 10 production lines spread across 2 square kilometers.
Renewable Energy & Batteries
NTPC Wins Approval For 4.7 Gigawatt Solar Park, India’s Largest
India’s largest power generation company, NTPC Limited, was given a go-ahead by the Ministry of New and Renewable Energy to set up the country’s largest solar power park. The park, first announced by the company in 2019, will have 4.7 gigawatts of solar power projects and will be located in the western state of Gujarat. NTPC currently has a generation fleet of 66 gigawatts, 92% of it based on thermal power technology. It plans to increase the share of renewable power in its fleet to 28.5% by 2032.
NTPC & ONGC Plan To Partner For Offshore Wind Energy Projects
Power generation company NTPC Limited and oil and gas exploration company ONGC Limited have announced a partnership to set up offshore wind energy projects. The latest announcement of partnership between the two public sector companies is unlikely to bear any fruit in terms of actual project development, at least in the near future. Offshore wind projects, while much more efficient compared to onshore projects, are very expensive. At present, the subsidized offshore projects will not be able to compete with record-low solar power tariffs.
Tata Power To Focus On Renewable Energy, Add 15 Gigawatts Of Capacity
The Chairman of Tata Power has announced that his company will add 15 gigawatts of renewable energy capacity over the next few years. The company currently has 1.8 gigawatts of solar and wind energy capacity operational and another 373 megawatts under development. Its subsidiaries offer EPC services and manufacture solar cells and modules. Currently, 69% of Tata Power’s generation capacity is based on coal. The company has announced plans to increase the share of clean and renewable energy technology to 80% by 2030. The company also plans to achieve carbon neutrality by 2050.
Siemens Gamesa Bags 322 Megawatt Order From ReNew Power
One of India’s leading renewable energy generators, ReNew Power, has placed an order for 322 megawatts of wind turbines with Siemens Gamesa. The turbines will be installed in the state of Karnataka. This latest order follows another similar order where ReNew ordered turbines worth 301 megawatts.
450 Megawatt Solar Projects Auctioned At ¢3.1/kWh
NTPC and Solar Arise were awarded rights to develop 325 megawatts and 125 megawatts of solar power projects. The projects will be developed in the state of Madhya Pradesh. Part of the power generated from these projects will be procured by Indian Railways.
According to a Tesla Semi customer, the electric truck program is suffering more delays and a price increase that is described as “dramatic.”
Tesla Semi has seen many delays, more than any other vehicle program at Tesla.
It was initially unveiled in 2017, and CEO Elon Musk claimed that it would go into production in 2019.
In late 2022, Tesla held an event where it unveiled the “production version” of the Tesla Semi and delivered the first few units to a “customer-partner”: PepsiCo.
More than 3 years later, the vehicle never went into volume production. Instead, Tesla only ran a very low volume pilot production at a factory in Nevada and only delivered a few dozen trucks to customers as part of test programs.
But Tesla promised that things would finally happen for the Tesla Semi this year.
Tesla has been building a new high-volume production factory specifically for the Tesla Semi program in a new building next to Gigafactory Nevada.
The goal was to start production in 2025, start customer deliveries, and ramp up to 50,000 trucks yearly.
Now, Ryder, a large transportation company and early customer-partner in Tesla’s semi truck program, is talking about further delays. The company also refers to a significant price increase.
California’s Mobile Source Air Pollution Reduction Review Committee (MSRC) awarded Ryder funding for a project to deploy Tesla Semi trucks and Megachargers at two of its facilities in the state.
Ryder had previously asked for extensions amid the delays in the Tesla Semi program.
In a new letter sent to MSRC last week and obtained by Electrek, Ryder asked the agency for another 28-month delay. The letter references delays in “Tesla product design, vehicle production” and it mentions “dramatic changes to the Tesla product economics”:
This extension is needed due to delays in Tesla product design, vehicle production and dramatic changes to the Tesla product economics. These delays have caused us to reevaluate the current Ryder fleet in the area.
The logistics company now says it plans to “deploy 18 Tesla Semi vehicles by June 2026.”
The reference to “dramatic changes to the Tesla product economics” points to a significant price increase for the Tesla Semi, which further communication with MSRC confirms.
In the agenda of a meeting to discuss the extension and changes to the project yesterday, MSRC confirms that the project went from 42 to 18 Tesla Semi trucks while the project commitment is not changing:
Ryder has indicated that their electric tractor manufacturer partner, Tesla, has experienced continued delays in product design and production. There have also been dramatic changes to the product economics. Ryder requests to reduce the number of vehicles from 42 to 18, stating that this would maintain their $7.5 million private match commitment.
In addition to the electric trucks, the project originally involved installing two integrated power centers and four Tesla Megachargers, split between two locations. Ryder is also looking to now install 3 Megachargers per location for a total of 6 instead of 4.
The project changes also mention that “Ryder states that Tesla now requires 600kW chargers rather than the 750kW units originally engineered.”
Tesla Semi Price
When originally unveiling the Tesla Semi in 2017, the automaker mentioned prices of $150,000 for a 300-mile range truck and $180,000 for the 500-mile version. Tesla also took orders for a “Founder’s Series Semi” at $200,000.
However, Tesla didn’t update the prices when launching the “production version” of the truck in late 2023. Price increases have been speculated, but the company has never confirmed them.
New diesel-powered Class 8 semi trucks in the US today often range between $150,000 and $220,000.
The combination of a reasonable purchase price and low operation costs, thanks to cheaper electric rates than diesel, made the Tesla Semi a potentially revolutionary product to reduce the overall costs of operation in trucking while reducing emissions.
However, Ryder now points to a “dramatic” price increase for the Tesla Semi.
What is the cost of a Tesla Semi electric truck now?
Electrek’s Take
As I have often stated, Tesla Semi is the vehicle program I am most excited about at Tesla right now.
If Tesla can produce class 8 trucks capable of moving cargo of similar weight as diesel trucks over 500 miles on a single charge in high volume at a reasonable price point, they have a revolutionary product on their hands.
But the reasonable price part is now being questioned.
After reading the communications between Ryder and MSRC, while not clear, it looks like the program could be interpreted as MSRC covering the costs of installing the charging stations while Ryder committed $7.5 million to buying the trucks.
The math makes sense for the original funding request since $7.5 million divided by 42 trucks results in around $180,000 per truck — what Tesla first quoted for the 500-mile Tesla Semi truck.
Now, with just 18 trucks, it would point to a price of $415,000 per Tesla Semi truck. It’s possible that some of Ryder’s commitment could also go to an increase in Megacharger prices – either per charger or due to the two additional chargers. MSRC said that they don’t give more money when prices go up after an extension.
I wouldn’t be surprised if the 500-mile Tesla Semi ends up costing $350,000 to $400,000.
If that’s the case, Tesla Semi is impressive, but it won’t be the revolutionary product that will change the trucking industry.
It will need to be closer to $250,000-$300,000 to have a significant impact, which is not impossible with higher-volume production but would be difficult.
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