Policy & Regulation
MNRE has released the benchmark costs for Grid Connected Rooftop Solar Power Plants for the Year 2019-20. 1 kW- 10 kW system cost is INR 54/ Wp; 10-100 kW system cost is INR 48/ Wp; 100-500 kW system cost is INR 45/ Wp. These benchmark costs are inclusive of total system cost and its installation, commissioning, transportation, insurance, five year AMC/CMC, and applicable fees and taxes.
As per amendments issued:
- Micro & mini grid-connected projects are also included now in this scheme
- Project commissioning scheduled date is revised from 18-24 months to 24-30 months from the date of LoA/ LoI issue
- Projects set up under this scheme will get waivers for ISTS charges and losses
- Commercial re-sale of power by the Procurer or End Consumer is not allowed as per the RfS conditions
An upper tariff ceiling of INR 3/kWh has been set for this tender for the entire 25-year tenure of the PPA. The solar power generator will pay the penalty in case of a shortfall in the generation. The amount of such penalty will be a minimum of 25% of the cost of this shortfall in energy terms. In the case of excess generation, the solar power generator will be free to sell it to any other entity if HPPC refuses to procure the produced power. In case HPPC purchases the excess generation, the same will be made at 75% of the PPA tariff.
Oil India Limited (OIL), has invited prospective bidders to develop 100 MW of solar project capacity anywhere in India. The projects will be tendered under the second phase of the central government’s CPSU program. Interested solar power developers, manufacturers, and EPC contractors have been asked to submit their intent on or before August 13, 2019. Along with the development of these solar projects, the successful bidder will also be responsible for comprehensive operation and maintenance services for 25 years
Bids are invited to set up more than 32 MWp of ‘RESCO mode’ grid-connected projects for sale of solar power to the Mandideep industrial area in the state. Bidding closes on August 13, 2019. The total capacity is divided into multiple packages of around 4 MW each, which shall be allotted through e-bidding followed by e-reverse auction. The upper ceiling tariff is fixed at Rs5.50/unit for the first year. Bidders are required to deposit bank guarantee of Rs12 lakh per MW.
Proposals are invited from entities that intend to develop EV charging infrastructure in million-plus cities as per the 2011 census; and smart cities as notified by the Ministry of Housing and Urban Affairs. Initially, 1,000 EV charging stations are earmarked for deployment through this EOI. The last date for submission of the proposals is August 20, the ministry said in the Expression of Interest (EoI).
An additional 350 MW capacity has been tendered under the greenshoe option of the global competitive bidding process. The bid submission deadline for both the technical and financial bids is August 9, 2019. A maximum bid of 700 MW capacity can be offered by an interested bidder, including the 350 MW offered under the greenshoe option. The minimum Project size of a single Hybrid Power Project shall be 50 MW. The project will be set up based on open access regulations.
State-owned engineering firm BHEL on Sunday said it has bagged a ₹100 crore order from NTPC for setting up a 25 MW floating solar photovoltaic power plant at Simhadri in Andhra Pradesh.
The state government of Himachal Pradesh has signed a Memorandum of Understanding (MoU) with Delhi-based diversified business group Frontline for setting up a 100 MW solar power plant in the state. Recently, independent power producer Renew Power had also proposed to invest in up to 200 MW power projects in the state.
Amplus Energy Solutions has announced investment of Rs 500 crore for its second open access solar project of 100MW in district Deoria of Uttar Pradesh. Prior to this, Amplus had committed investment of Rs 250 crore for setting up a 50MW open access solar project in Mirzapur. The project is under construction and expected to be commissioned by September 2019.
Tata Power Renewable has signed definitive agreement to supply 50 MW of solar power to NTT Com-Netmagic in Solapur, Maharashtra. The power will be supplied through open access under long term power purchase agreement.
The Singapore-headquartered firm will utilise the fund to expand its capacity to 500 MW in the next couple of years from the existing 200 MW. Cleantech’s around three-fourth of the existing capacity is based in India and the rest in Southeast Asian countries.
The Asian Development Bank (ADB) would provide ₹1,540 crore for upgradation of power generation, transmission and distribution projects in Tripura. Tripura, a power surplus state, is supplying 190 MW to Bangladesh and 40 MW to Nepal.
The Asian Infrastructure Investment Bank (AIIB) has announced that it will provide a $100 million loan to L&T Infrastructure Finance Company Limited (LTIF). The loan proceeds will be used to finance mid and large-scale wind and solar projects throughout India.
Move comes in wake of CEO Inderpreet Wadhwa’s impending exit. DEG, World Bank’s IFC, and CPDQ are said to be looking to sell their stakes in Azure Power Global.
Canadian pension fund Ontario Municipal Employees’ Retirement System (OMERS) is scouting for acquisition opportunities in India, in an affirmation of the country’s position as a green energy hot-spot. With net assets of more than $100 billion under management, OMERS has been attracted by the presence of other Canadian investors in India such as Canada Pension Plan Investment Board (CPPIB), Caisse de dépôt et placement du Québec (CDPQ) and Brookfield Asset Management.
Greenko Energy Holdings announced the closure of another equity funding round. This time, the company managed to raise US$329 million through a rights issue. Singapore’s sovereign growth fund GIC and Abu Dhabi Investment Authority (ADIA) picked up an additional stake in the company. GIC would remain the majority stakeholder in the company.
Other important news
More than 12 EPC players in the rooftop solar segment have either closed or are on the verge of closing their rooftop solar divisions due to tough financial conditions. Some of the companies facing severe constraints are: Ujjas Energy, Kotak Urja and Relyon Solar, among others. Policy decisions from state to retrospectively cancel net metering, and failure to honour the 20% to 30% capital incentives have damaged the viability of many companies that aggressively bid for projects across the country
Jolted by the state government’s budget announcement to hike electricity duty by 150% (from 40 paisa to Rs 1/ unit) on captive power, representatives from energy-intensive sectors like cement, textile, mining, and fertiliser are desperately knocking the doors of various government departments, including the Chief Minister’s Office to get a relief from the punitive proposal.
The power ministry on Thursday said it has approved proposal for early regulatory nod by CERC for transmission schemes for 66.5 GW (comprising around 28 GW under Phase-I and around 38.5 GW under Phase-II) renewable energy generation in order to fast-track green projects in the country.
NTPC and Solar Energy Corp of India (SECI) have threatened Andhra Pradesh power distribution utilities of legal action and have denied renegotiation of tariffs from solar plants, saying the demand does not hold any valid ground. The two central government companies have also declined to attend the meeting for renegotiating of tariffs with the state.
More banks with exposure to the wind turbine maker likely to follow suit. Banks have to set aside 15% of their outstanding loans to a non-performing account as provisions.
Leading turbine manufacturers with more than 80 per cent market share are staring at weak order pipelines, losses, and regulatory niggles. At the same time, foreign companies and imports from China are increasing their footprint in the country, sparking worries of cost escalation among power producers.
Freak climatic conditions are damaging renewable energy projects, threatening a business which survives on wafer-thin margins. A storm in India’s Rajasthan state, known for its deserts and sunny days, tore through a solar park and blew away modules of various developers. In the adjoining state of Madhya Pradesh, a generator found sections of his project submerged in 10 feet of water due to unseasonal rains.