1 min read.Updated: 26 Jul 2017, 11:53 PM ISTLivemint
In other news, EVs can alleviate utilities' financial pain; wind capacity additions may fall sharply this year
Allocation to India by Asia ex-Japan funds came down to 13% in June from 13.3% in May, according to Kotak Institutional Equities’ latest foreign fund-flow tracker. The measure was at 13.6% in April. Fund allocation to India by global emerging market (GEM) funds came down to 10.8% from 11% earlier. “Allocation by Asia ex-Japan non-ETF (exchange-traded funds) funds to India came down to 13.7% from 13.9% in the previous month," said Kotak, adding that allocation to India by GEM ETF funds remained around 9.8%. Allocations to India and China constitute more than one-third of the average Asia ex-Japan fund portfolio.
Electricity demand from electric vehicles (EVs) can bring financially strapped power distribution companies additional revenue of about Rs70,000 crore a year, sufficient enough to cut their financial deficit by at least half, Lawrence Berkeley National Laboratory, a US department of energy national lab managed by the University of California, said in a report. According to the report, India’s electric car sales can reach 10 million a year in 2030, if all new sales in that year were EVs. The total EV fleet, including two-wheelers, is projected to grow to 144 million. This can add 6% of peak electricity demand in 2030. The energy load may not sound much in percentage terms. But Nikit Abhyankar, lead author of the report, says it would be a good way for financially stressed utilities to earn additional revenue.
Wind capacity additions may fall sharply this year
From about 5,400 megawatts (MW) last fiscal year, wind energy capacity additions may drop to 1,000-1,500MW this year, India Ratings and Research Pvt. Ltd said in a note. Wind power auctions early this year sent tariffs to record lows. This made state power distribution companies (discoms) wary of signing power purchase agreements at relatively expensive feed-in-tariffs, which have been the norm till then. Combine this with their unpreparedness to come out with auctions in a big way in the near term, wind power capacity additions are estimated to see a sharp slowdown in the current year. According to the ratings agency, auctions may pick up from the next fiscal year onwards. Feed-in-tariffs are bilateral contracts between discoms and wind power generators. Discoms are expected to shun these bilateral contracts in favour of auctions to acquire wind energy.
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