Policies & Regulations
Ministry of Power has added a clause in its earlier released order on “Opening and maintaining of adequate Letter of Credit (LC) as Payment Security Mechanism under PPA by Distribution Licensee”. In the new clause, it is mentioned that in the event power is not dispatched for any reason, DISCOM shall continue to pay fixed charge to RE generator as well. For RE generators this fixed charge is calculated basis energy generated during non-dispatch period on the basis of CUF declared by generator in their PPA. For projects having more than 1 year of operation, the power not dispatched shall be calculated on the basis of pro rata actual energy generated in last 1 year.
New tenders announced
|Tender name||Tendering Authority||Technology||Capacity, MW||Location||Status||Bid submission date|
|NTPC, Auraiya, UP, 20 MW, Aug 2019||NTPC||Floating Solar||20||Uttar Pradesh||NIT Issued||Sep 5, 2019|
|SECI 1,200 MW ISTS,RE Projects (ISTS-VII), Aug 2019||SECI||Wind/ Solar/ Wind-Solar hybrid with Storage||1,200||ISTS||RFS Issued||Sep 17, 2019|
|SECI, 1,500 MW Grid Connected Solar PV under CPSU Phase-II||SECI||Solar PV (including Mini and Micro Grid)||1,500||Pan India||RFS Issued||Sep 5, 2019|
|Torrent Power, 300 MW, Gujarat||Torrent Power||Solar PV||300||Gujarat||RFS Issued||Sep 4, 2019|
|MAHAGENCO, 137 MW, Solar, Aug 2019||MAHAGENCO||Solar PV||137||Maharashtra||RFS Issued||Sep 9, 2019|
Source: JMK Research
Tata Power Renewable Energy Limited (TPREL), wholly owned subsidiary of Tata Power, has received a Letter of Award from state-owned utility Gujarat Urja Vikas Nigam Limited (GUVNL) to develop a 250 MW solar project in Dholera Solar Park of Gujarat. This capacity is in addition to 100 MW won by Tata Power at Raghanesda Solar Park in May this year, which was part of a 700 MW tender with ceiling tariff set at Rs2.70/kWh.
Uttarakhand chief minister Trivendra Singh Rawat has allotted solar energy projects worth Rs 600 crore to local entrepreneurs. The projects—to be developed in capacities ranging from 100 KW to 5000 KW—will generate an estimated 148.85 MW of solar power. These are to be completed by June 2020. Another 52 MW of solar power projects worth Rs 200 crore will also be distributed soon among local developers, the minister announced. This capacity has been retendered with August 22 as the deadline for bid submission
Azure Power has received the letter of award for a 300 MW solar power ISTS project in a 1.2 GW auction conducted by Solar Energy Corporation of India (SECI). With this win, the New Delhi-headquartered developer has 1.5 GW of ISTS projects with sovereign counterparties, which is the largest such portfolio in India. The company expects to sign a 25-year power purchase agreement with SECI to supply power at a tariff of Rs2.54 (US 3.7 cents) per kWh.
Distributed solar power company SunSource Energy today announced it will start work on constructing a 70 Megawatt (Mw) solar power project in Uttar Pradesh at an estimated investment of around Rs 300 crore. The project was awarded under the open access project allocation in the state and its power will be sold through long-term Power Purchase Agreements (PPAs) to commercial and industrial customers.
Mahindra Susten, the renewable business arm of Mahindra group, which is in the process of selling 160 megawatts (MW) of solar assets, has received interest from two potential buyers, CLP India and the Piramal group, said two people aware of the development, requesting anonymity.
The latest bidding for power transmission projects to connect renewable energy with the national grid saw leading private companies bring down project costs by about 40-50 per cent. Adani Transmission, Sterlite Power, L&T, and Tata Power were in the race for Rs 1,500 crore worth of projects. This is estimated to bring down the cost of renewable power by 25 paise a unit (kilowatt hour). State-owned Power Grid Corporation also participated in these tenders and won two projects. A new entrant, India’s leading clean energy company, ReNew Power, also bid for the transmission projects. However, it didn’t win any.
In May, Sterlite roped in global private equity firm KKR as a co-sponsor in IndiGrid, raising around ₹2,560 crore. The company is part of Sterlite Group, which has interests in power transmission assets, equipment and engineering procurement construction.
Shapoorji Pallonji Group’s solar engineering, procurement and construction (EPC) business, Sterling and Wilson Solar, has announced its initial public offering (IPO) worth Rs 3,125 crore on Thursday, fixed at a price band of Rs 775 to Rs 780 per equity share of Re 1 face value.
Other important news
The Appellate Tribunal for Electricity (APTEL), has asked the electricity distribution companies (discoms) owned by the Andhra Pradesh government and its electricity regulatory commission not to initiate any precipitative or coercive action against a group of firms including Ayana Kadapa Renewable Power, Sprng Soura Kiran Vidyut, Sprng Agnitra, SB Energy Seven and SB Energy Solar.
The global installed capacity will grow from a modest 9 GW/17 GWh as of 2018 to 1,095 GW/2,850 GWh in the next two decades. Just 10 countries will account for almost 75% of the overall gigawatt market, with China, USA, India and Germany leading the pack
If any SLDC curtails wind or solar power for any reason other than grid safety or security or as prescribed in respective grid code/ regulation, they shall be liable for making good the loss incurred by the wind or solar power generators towards deemed generation.
Power utilities in the State issued Letters of Credit (LC) to power generators from August 1 as mandated by the Ministry of Power and Renewable Energy as a payment security mechanism under the Power Purchase Agreements (PPAs). The Discoms, which have outstanding liabilities of about Rs 19,000 crore, however, sought the support of the State government in maintaining adequate flow of cash so that LCs can be opened and honoured.
The existing fragmented growth of solar rooftop is largely attributable to institutional and commercial consumers. Discoms’ and consumers’ reluctance to adopt rooftop solar may be attributable to the legal framework of the distribution business.