Weekly Update- 4th – 10th Sep 2019

Policy & Regulation

Release Bank Guarantees within 45 Days of Solar and Wind Project Completion: MNRE

The Ministry of New and Renewable Energy (MNRE), through a letter, has directed NTPC and Solar Energy Corporation of India (SECI) to release performance bank guarantee (PBGs) for the solar and wind power projects that have been commissioned. According to the letter PBGs may be released within 45 days from COD (Commercial Operation Date), subject to fulfillment of requirements of submission of all the requisite documents.

Approved Models and Manufacturers of Solar Photovoltaic Modules (Requirements for Compulsory Registration), Order 2019

As per the order, after Mar 31, 2020, only the models and manufacturers included in ALMM Lists (of solar PV Cells and Modules) will be eligible for use in Government/ Government assisted Projects/ Projects under Government Schemes & Programmes. All projects for which bids have been finalised before the issuance of order dated Feb1, 2019 shall stand exempted from the mandatory requirement of procurement of cells and modules enlisted in the ALMM order.

UPERC (Captive and Renewable Energy Generating Plants) Regulations, 2019 (CRE Regulations, 2019)

  • DSM shall be implemented for all RE except Municipal Solid Waste (MSW) and Small Hydro Power (SHP). For solar DSM will be as per UPERC (Forecasting, Scheduling and Settlement) Regulations 2018
  • Waivers for third party sale projects: 50% exemption of wheeling and transmission Charges for Captive and Third Party use. 100% waiver on transmission for Interstate sale. 100% exemption of state CSS for Interstate sale of power for Captive/Third Party use.
  • Banking: 100% Banking of Energy for RE except for SHP and MSW and shall be as per technical feasibility specified by DISCOM. Withdrawal of banked energy as per TOD system only. No interchange of peak-off peak banked energy. Banking as well withdrawal of banked energy shall be subject to day ahead Scheduling. Banked energy utilisation allowed upto next two quarters from the quarter in which energy is banked. Unutilised banked energy to be treated as sale of electricity to discom @2 Rs/unit. Banking charges @6% of banked energy

Tenders

New tender announced

Tender Name Tendering Authority Technology Capacity (MW) State Bid submission Ceiling tariff (INR/ unit)
NHPC, SOLAR, 2,000 MW, SEP 19 NHPC Solar 2,000 PAN INDIA 27 Sep 2019 2.95  
MSEDCL,WIND-SOLAR HYBRID, 80MW, SEP 19 MSEDCL Wind-Solar Hybrid Sangli- 5MW
Satara- 20MW
Beed- 20MW Amravati- 15MW Sindhudurg- 20MW
Maharashtra 30 Sep 2019 2.80  

Uttar Pradesh tenders 16 MW of ‘Capex mode’ rooftop solar

Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) has invited bids for the setting up of about 16 MW of ‘Capex mode’ grid-connected rooftop solar power plants on government buildings in the state. Bidding closes on September 23.

Tender Floated For 50 MW of Rooftop Solar on Government Buildings in Rajasthan

The Rajasthan Renewable Energy Corporation Limited (RRECL) has issued a tender for 50 MW of rooftop solar projects under the RESCO model The scope of work under this tender would include the design, supply, erection, testing, commissioning, operation, and maintenance for 25 years of the grid-connected solar photovoltaic power projects on state government buildings. Bidders are expected to quote a levelized fixed tariff for the entire term of the power purchase agreement.

Assam Retenders 70 MW of Solar Projects Due to Low Tariff Cap

The Assam Power Generation Corporation Limited (APGCL) has retendered 70 MW of grid-connected solar projects to be developed at Amguri Solar Park in Sivasagar district of the state. The tender was initially floated in January 2019, as reported previously by Mercom.

Projects

Himachal Pradesh signs MoUs worth Rs1000 crore to set up solar plants

Projects with a total capacity of 250 MW—by Renew Energy and CSE Development—will be set up over land identified in Una and Kangra districts of the state. Two  Memorandum of Understandings (MoUs) worth Rs1000 crore were signed between the state government and two companies for setting up of Solar Power Plants in the State in the presence of Chief Minister Jai Ram Thakur.

Financing

ReNew Power raises $300 mn via offshore bond sales

Clean energy firm ReNew Power raised $300 million by selling bonds overseas, seeking to use the proceeds for capacity expansion.The sale of these bonds, with three-year maturity, opened for subscription Thursday. The dollar-denominated securities were priced at 6.45%, the initial target rate. It is said to have obtained subscriptions upto $600 million.

India 6th-Largest Investor in Renewable Energy: Study

With investments of $90 billion in renewable energy over the last decade, India is placed sixth in the list of countries that have made the most investments in clean energy, says a new study. China, the United States, Japan, Germany, and the United Kingdom are the top five countries. While China invested $758 billion, the US came in a distant second with $356 billion in the decade between 2010 and the first half of 2019.

Suzlon scraps $1.2 billion debt repayments; stock slides

Suzlon Energy withdrew an offer to repay about `8,500 crore ($1.2 billion) to lenders after Vestas Wind Systems A/C, which was backing the proposal, pulled out of the debt-resolution plan, according to people familiar with the matter.

Norwegian utility Statkraft leads race for India-focused Continuum Wind Energy

Norway’s state utility Statkraft has emerged on top in the race for Continuum Wind Energy, a wind energy platform owned by Morgan Stanley Infrastructure Partners, said two people aware of the development. In 2012, Morgan Stanley Infrastructure Partners, which manages more than $4 billion in assets globally, had invested $212 million in India-focused Continuum Wind, founded by Arvind Bansal and Vikash Saraf in 2009. Morgan Stanley currently has a majority stake in Continuum Wind.

Other important news

Telangana targets 5 GW of renewables next year

Decentralized model of solar project development has avoided the need to spend huge amounts on grid upgrades in India’s newest state. With EV charging plans advancing Telangana now intends to change policy to reflect falling solar costs.

GWEC Predicts 330 GW of new Wind Capacity by 2023

The Global Wind Energy Council’s (GWEC) recently released updated market outlook has predicted an additional 330 GW of new wind energy capacity will be added to the global energy market from 2019 to 2023, bringing total capacity to over 900 GW. The outlook has been increased by an additional 9 GW from the outlook published in Q1 2019 in GWEC’s annual Global Wind Report.

Solar energy: India needs a globally competitive solar panel industry

Following its success, the targets of India’s solar energy programme have been rising. To fulfil these, it is essential that policy instruments evolve suitably. Getting solar power capacity to cross 25,000 MW in less than ten years through private investment, and to get tariffs to come down, from over Rs 10 to less than Rs 3 per unit, has been the result of the initial program design of inviting repeated tariff-based bids for supply of solar power through the grid to the distribution companies.

China solar installations to slow as subsidy cuts bite

China’s new installations of solar power are expected to slow considerably this year and over the next five years as the industry comes to terms with a new subsidy-free era, the chief executive of a leading domestic solar manufacturer told Reuters.

Solar leads decade of investment in renewable energy:Report

Global investment in new renewable energy capacity this decade — 2010 to 2019 inclusive — is on course to hit $2.6 trillion, with more gigawatts of solar power capacity installed than any other generation technology. According to the Global Trends in Renewable Energy Investment 2019 report, released ahead of the UN Global Climate Action Summit on September 23, this investment is set to have roughly quadrupled renewable energy capacity (excluding large hydro of more than 50MW) from 414 GW at the end of 2009 to 1,650 GW when the decade closes at the end of this year.

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