Latest news with #MinistryofPower
Time of India
3 days ago
- Business
- Time of India
‘Energy is next UPI': Nandan Nilekani likely to spearhead India's digital energy grid vision, aims to Cut power distribution costs by 25%
Infosys co-founder is expected to lead a new task force focused on digitising and decentralising India's power sector, according to officials familiar with the matter. If formalised, this will mark the second time the government has sought Nilekani's expertise to shape reforms in the power domain. Tired of too many ads? go ad free now The proposed task force will operate under the Ministry of Power and be funded through the Revamped Distribution Sector Scheme (RDSS). A key goal of the initiative is to bring down generation, transmission, and distribution costs by up to 25%, an official said. In March, Nilekani had hinted at the transformation ahead for the energy sector, posting on X: "Energy is the next UPI! Millions of small producers will participate in the Digital Energy Grid (DEG)". Earlier in February, the Foundation for Interoperability in Digital Economy (FIDE) and the International Energy Agency (IEA) released a whitepaper on the Digital Energy Grid. Nilekani co-authored the foreword of this report, which outlined a vision of decentralised energy production and trading, reported ET. The FIDE-IEA report proposed a future where households equipped with solar panels or EV batteries could generate, store, and trade energy, not just consume it. "In this world, millions of everyday citizens become active participants in the energy economy, transacting not just with the grid, but directly with each other over a shared digital mesh," a statement from FIDE explained. A pilot for the DEG is expected to launch soon in Lucknow, Uttar Pradesh. It will be based on the Unified Energy Interface (UEI), a digital framework similar to the Unified Payments Interface (UPI), and aims to cut manual intervention in the power sector, potentially lowering costs for end consumers.
The Print
5 days ago
- Business
- The Print
SECI's overly cautious procurement rules will deter investors from India's renewable projects
This view, however well-intentioned, fails to appreciate the reality of international finance and constrains how capital flows into infrastructure. The result is a regulatory stance that is ill-suited to the realities of infrastructure financing and project development, especially in a sector like renewable energy which is capital-intensive, fast-moving, and global. The conditions in the tenders are a reflection of the larger policy obsession in India to uncover the ultimate beneficial owner behind every investment. The obsession stems from the presumption that any layer of corporate opacity must conceal fraud or malfeasance. The Solar Energy Corporation of India has, over time, adopted a cautious approach to project ownership and control in its procurement processes. Its February 2025 Request for Selection for 500 MW of solar PV capacity continues this trend, requiring bidders to disclose the complete beneficial ownership structure at the time of bidding. Further, the guidelines prohibit any change in control once the Power Purchase Agreement is signed. These are based on guidelines issued by the Ministry of Power. Achieving the objectives Consider the rule that requires bidders to provide complete information about their promoters or the definition of control. The definitions include entities that own the company directly or indirectly, which would entail several layers of entities that may own the company through different shareholding structures. It would have helped matters if SECI had articulated why it feels the need for these conditions, and what risks it is trying to mitigate. The absence of a formal regulatory impact assessment or a detailed explanation leaves stakeholders guessing. If one were to speculate, the rationale may fall into three categories: Financial viability: SECI may want to be assured that the bidder has the financial wherewithal to see the project to completion, and transparency on beneficial ownership may help it to ensure that related entities are not blacklisted or in default of their financial obligations in other transactions. The restrictions on control may also be seen to help with financial viability and operational performance. Competition integrity: SECI may want to ensure that a single corporate group does not exceed the maximum bidding capacity by using multiple affiliated companies, and that there is no collusion between entities that might compromise the bidding process. National security: In an era of geopolitical tension, SECI may be concerned that opaque structures could mask investments from actors deemed hostile or untrustworthy. While each of these reasons has merits, a fundamental rule of public policy should be to achieve the objectives at the least possible cost. Entities bidding for such projects either bid themselves or set up a Special Purpose Vehicle (SPV). For financial scrutiny, SECI can simply demand proof of a minimum net worth and an undertaking from the bidder that no insolvency proceedings are pending or imminent. These steps focus on project viability without prying into ownership structures. Competition concerns can be resolved through both ex-ante and ex-post measures. Bidders can be mandated to sign a legally binding certificate stating their bid was developed independently and without consultation with any competitor. Reverse auctions, particularly when held in real-time, reduce the effectiveness of cartel behaviour. SECI can also set a confidential reserve price based on its own internal estimates. If the lowest bid is significantly above this price, all bids can be rejected, thwarting an attempt to fix prices at an artificially high level. Ex-post penalties, including disqualification from future bids, can act as strong deterrents against collusive behaviour. Also read: India's clean energy manufacturing strategy must move beyond 'China+1' to 'India+ Many' A more nuanced approach The question of national security is an important one. However, current regulations permit up to 100 per cent Foreign Direct Investment (FDI) for renewable energy projects, under the 'automatic route'. The Government of India, in 2020, placed restrictions on investments from countries that share land border with India in order to curb opportunistic takeovers and acquisitions of Indian companies. The SECI Request for Selection (Rfs) also acknowledges this policy framework and has integrated these restrictions in its bid document. If bidders have cleared these hurdles, then there may be little to be gained from insisting on a disclosure of all the layers of beneficial ownership, and including them in the definition of control. This brings us to the fundamental nature of renewable energy financing. Projects are typically structured through funds, and consortiums that span multiple jurisdictions. Limited partners (LPs), general partners (GPs), and various institutional investors—including pension funds and sovereign wealth funds–often pool resources through layered, regulated, and audited structures. A global fund may have hundreds of underlying investors, many of whom insist on confidentiality. Mandating full disclosure of every beneficial owner could either violate international agreements or force such investors to look elsewhere. Restrictions of the kind placed by SECI make it harder for developers to attract the kind of long-term institutional investment that is essential for scaling up. If India is serious about achieving its 500 GW non-fossil fuel capacity target by 2030, SECI's procurement design will need to accommodate the realities of how projects are developed, financed, and transferred. The Ministry of Power and SECI need to take a more nuanced view of transparency. It should not mean unfiltered visibility into every last detail. Rather, it should begin with a clear articulation of objectives—whether financial security, competition, national security or some other objective—and search for the tool that best meets the specific objective. India's renewable energy story will be shaped not just by domestic policy but by the willingness of global investors to see the country as a reliable and predictable partner. SECI's future tenders would do well to reflect this understanding. Renuka Sane is managing director at TrustBridge, which works on improving the rule of law for better economic outcomes for India. She tweets @resanering. Views are personal. (Edited by Aamaan Alam Khan)
Time of India
7 days ago
- Business
- Time of India
India's biofuel sector transitioning from promise to partial implementation: Report
India's biofuel sector is slowly moving from a stage of promise to partial implementation, supported by strong government policies, rising need for decarbonization, and the push for rural value creation, according to a report by YES Securities. The report highlighted that while government support through initiatives like SAMARTH (for biomass), E20 (for ethanol), and SATAT (for compressed biogas or CBG) remains strong, the actual progress in building the required infrastructure is uneven across different segments. It said "India's biofuel sector is transitioning from promise to partial implementation, driven by policy tailwinds". Among all segments, ethanol blending has shown significant progress, with around 18 per cent blending achieved. This has also resulted in a visible return on capital employed (RoCE) for producers. Solid biofuels are also gaining ground in industries as substitutes for coal and furnace oil. This shift is being driven by better economics and pressure to meet environmental, social, and governance (ESG) goals. However, the report noted that the CBG segment still faces several challenges. These include problems with feedstock logistics, underutilised production capacity, and the lack of infrastructure needed to monetise by-products, which are crucial for making CBG plants financially viable. The report added that investors should now focus on segments that are showing operational progress, have clear offtake guarantees linked to policy, and show a realistic path to scale. In terms of policy and mechanism support, the report explained the role of co-firing, which involves blending solid biofuels with coal in power plants. According to a Ministry of Power (MoP) order issued in 2021, all thermal power plants with a capacity of more than 200 MW are required to blend 5 per cent biomass starting from FY22. In regions prone to high stubble burning like Punjab, Haryana, and Uttar Pradesh, the limit has been increased to 7 per cent. This effort is being driven under the SAMARTH Mission, a government initiative to promote sustainable fuel use. India's coal-fired power capacity stands at about 210 GW. Even a 5 per cent blend would require around 10.5 GW of power to be generated from biofuels. This would translate to the use of 15-20 million metric tonnes (mmt) of biomass every year, creating a potential market of over Rs 500 billion. Public sector power utility NTPC has emerged as a leader in the co-firing space. As of early calendar year 2025, it has already co-fired more than 2.5 lakh tonnes of biomass across its units in Dadri, Jhajjar, and others. Some of these units have achieved 7-10 per cent biomass blending. Despite the policy push, the report pointed out several bottlenecks. These include variation in the calorific value and combustion characteristics of biomass, difficulties in logistics and storage due to the perishable nature of biomass, and the need for plant-specific burner modifications to enable efficient co-firing. The report concluded that while the biofuel sector holds significant promise, actual implementation will depend on overcoming these practical challenges and ensuring consistent progress across all segments.
India Gazette
7 days ago
- Business
- India Gazette
India's biofuel sector transitioning from promise to partial implementation: Report
New Delhi [India], June 14 (ANI): India's biofuel sector is slowly moving from a stage of promise to partial implementation, supported by strong government policies, rising need for decarbonization, and the push for rural value creation, according to a report by YES Securities. The report highlighted that while government support through initiatives like SAMARTH (for biomass), E20 (for ethanol), and SATAT (for compressed biogas or CBG) remains strong, the actual progress in building the required infrastructure is uneven across different segments. It said 'India's biofuel sector is transitioning from promise to partial implementation, driven by policy tailwinds'. Among all segments, ethanol blending has shown significant progress, with around 18 per cent blending achieved. This has also resulted in a visible return on capital employed (RoCE) for producers. Solid biofuels are also gaining ground in industries as substitutes for coal and furnace oil. This shift is being driven by better economics and pressure to meet environmental, social, and governance (ESG) goals. However, the report noted that the CBG segment still faces several challenges. These include problems with feedstock logistics, underutilised production capacity, and the lack of infrastructure needed to monetise by-products, which are crucial for making CBG plants financially viable. The report added that investors should now focus on segments that are showing operational progress, have clear offtake guarantees linked to policy, and show a realistic path to scale. In terms of policy and mechanism support, the report explained the role of co-firing, which involves blending solid biofuels with coal in power plants. According to a Ministry of Power (MoP) order issued in 2021, all thermal power plants with a capacity of more than 200 MW are required to blend 5 per cent biomass starting from FY22. In regions prone to high stubble burning like Punjab, Haryana, and Uttar Pradesh, the limit has been increased to 7 per cent. This effort is being driven under the SAMARTH Mission, a government initiative to promote sustainable fuel use. India's coal-fired power capacity stands at about 210 GW. Even a 5 per cent blend would require around 10.5 GW of power to be generated from biofuels. This would translate to the use of 15-20 million metric tonnes (mmt) of biomass every year, creating a potential market of over Rs 500 billion. Public sector power utility NTPC has emerged as a leader in the co-firing space. As of early calendar year 2025, it has already co-fired more than 2.5 lakh tonnes of biomass across its units in Dadri, Jhajjar, and others. Some of these units have achieved 7-10 per cent biomass blending. Despite the policy push, the report pointed out several bottlenecks. These include variation in the calorific value and combustion characteristics of biomass, difficulties in logistics and storage due to the perishable nature of biomass, and the need for plant-specific burner modifications to enable efficient co-firing. The report concluded that while the biofuel sector holds significant promise, actual implementation will depend on overcoming these practical challenges and ensuring consistent progress across all segments. (ANI)
Time of India
7 days ago
- Business
- Time of India
India's biofuel sector transitioning from promise to partial implementation: Report
New Delhi: India's biofuel sector is slowly moving from a stage of promise to partial implementation, supported by strong government policies, rising need for decarbonization, and the push for rural value creation, according to a report by YES Securities. The report highlighted that while government support through initiatives like SAMARTH (for biomass), E20 (for ethanol), and SATAT (for compressed biogas or CBG) remains strong, the actual progress in building the required infrastructure is uneven across different segments. It said "India's biofuel sector is transitioning from promise to partial implementation, driven by policy tailwinds". Among all segments, ethanol blending has shown significant progress, with around 18 per cent blending achieved. This has also resulted in a visible return on capital employed (RoCE) for producers. Solid biofuels are also gaining ground in industries as substitutes for coal and furnace oil. This shift is being driven by better economics and pressure to meet environmental, social, and governance (ESG) goals. However, the report noted that the CBG segment still faces several challenges. These include problems with feedstock logistics, underutilised production capacity, and the lack of infrastructure needed to monetise by-products, which are crucial for making CBG plants financially viable. The report added that investors should now focus on segments that are showing operational progress, have clear offtake guarantees linked to policy, and show a realistic path to scale. In terms of policy and mechanism support, the report explained the role of co-firing, which involves blending solid biofuels with coal in power plants. According to a Ministry of Power (MoP) order issued in 2021, all thermal power plants with a capacity of more than 200 MW are required to blend 5 per cent biomass starting from FY22. In regions prone to high stubble burning like Punjab, Haryana, and Uttar Pradesh, the limit has been increased to 7 per cent. This effort is being driven under the SAMARTH Mission, a government initiative to promote sustainable fuel use. India's coal-fired power capacity stands at about 210 GW. Even a 5 per cent blend would require around 10.5 GW of power to be generated from biofuels. This would translate to the use of 15-20 million metric tonnes (mmt) of biomass every year, creating a potential market of over Rs 500 billion. Public sector power utility NTPC has emerged as a leader in the co-firing space. As of early calendar year 2025, it has already co-fired more than 2.5 lakh tonnes of biomass across its units in Dadri, Jhajjar, and others. Some of these units have achieved 7-10 per cent biomass blending. Despite the policy push, the report pointed out several bottlenecks. These include variation in the calorific value and combustion characteristics of biomass, difficulties in logistics and storage due to the perishable nature of biomass, and the need for plant-specific burner modifications to enable efficient co-firing. The report concluded that while the biofuel sector holds significant promise, actual implementation will depend on overcoming these practical challenges and ensuring consistent progress across all segments.
