Policy & regulation
MNRE has extended the deadline for the Bureau of Indian Standards (BIS) certification of solar inverters. Considering that the series guidelines for inverters are in the process being finalized for approval, the self-certification deadline for inverters of those manufacturers who have valid quality test reports has been extended from June 30, 2019, to September 30, 2019.
Under the modification guidelines issued by MNRE, private solar parks developed by private entrepreneurs will be given status of solar park after examination of Detailed Project Report (DPR) and 100% land in possession documents. Status of solar park will entitle them to get in the connectivity and LTA from CTU. However if financial closure and issue of tenders for developing internal infrastructure of the solar park is not issued within 12 months then the solar park status will be withdrawn and connectivity given will also be cancelled.
In a written reply to Andhra Pradesh new Chief Minister Mr. Reddy, Union Power Minister, Mr. RK Singh has given complete details of all solar and wind tariff details across states over the years and has said that tariffs are dependent on solar insolation/ wind speeds across different regions and this gives clear picture whether PPA signed in Andhra Pradesh are reasonable or not. Where a concrete evidence of malpractice/ corrupt practice in any particular case is found then only action can be taken for cancelling PPA and not otherwise.
Tamil Nadu’s Tiruppur City Municipal Corporation (TCMC) has floated a tender for a 2 MW ground-mounted solar project in Iduvai village.
Bharat Heavy Electricals Limited (BHEL), a government of India undertaking, has issued tender inviting quotations for the manufacturing and supply of 4,500,000 DWS multi silicon solar wafers with a specification of 157-millimeters. The bid submission deadline is July 29, 2019. The price bid opening date will be set later for vendors accepted in the technical process. The last date for the delivery of 4,500,000 units of the solar silicon wafers is September 24, 2019.
CEL has issued a tender for the development of 50 MW grid-tied solar PV plants ranging from 500 kW to 10 MW at various locations in Maharashtra.
The National Thermal Power Corporation (NTPC) has issued tender inviting applications from eligible vendors for the enlistment of engineering, procurement, and construction (EPC) bidders to develop floating or ground-mounted solar PV projects between 10-50 MW capacity. Deadline for the submission of applications is July 24, 2019
Gujarat has told all winners of its latest auction of wind power projects to match the tariff of Rs 2.80 per unit quoted by lowest bidder Enerfra to stand a chance to win the contracts. There were nine winners who quoted tariffs in the range of Rs 2.80-2.95 per unit in the 1000-mw auction conducted by Gujarat Urja Vikas Nigam (GUVNL) in May 2019.
As of June 30, 2019, about 80.5 GW of cumulative grid connected RE power has been installed in India. In last 1 month about, 420 MW of new RE power is added. Out of this 420 MW, nearly 273 MW is commissioned in Gujarat in wind sector under GUVNL, 500 MW wind tender allocated in Dec-2017.
As of June 30, 2019, split between various technologies is given below. Solar now accounts for 37% of the total RE installations in the country.
Source: MNRE, JMK Research
The 50 megawatt (Mw) independent power plant (IPP), spread over 300 acres, is projected to be operational in 18-24 months, company managing director Sameer Gupta told Business Standard in Lucknow. He said the focus of the central and state governments on green and renewable energy, including electric vehicles, had provided the much needed boost to the sector, which is projected to grow substantially owing to proactive policies and consumer demand.
As of May 31, 2019, there are 42 solar parks across 17 states with a total planned capacity of 23.4 GW. Top five states account for about 83% of the total solar park planned capacity. To get complete details about all the state wise parks along with land details please click here.
State wise solar park capacity as of May 31, 2019, MW
Source: MNRE, JMK Research
A month after securing a $495-million equity commitment from existing investors GIC of Singapore and Abu Dhabi Investment Authority (ADIA), Greenko Energy Holdings has received another $329 million of funding at a $6.5-billion enterprise valuation through a rights issue. With this round, the two principal investors would have cumulatively deployed $2.3 billion in equity till date. The funds will be predominantly used to facilitate Greenko’s ongoing 2.4GW storage projects.
SunEdison Infrastructure Limited (formerly YKM Industries Limited) has informed of the acquisition of Megamic Electronics Private Limited and Enrecover Energy Solutions Private Limited, according to a recent corporate filing by the company at the Bombay Stock Exchange (BSE). The acquisition is at ₹10 million ($ 0.14 million) along with 0.3% equity shares of SunEdison in exchange for a 51% stake in Megamic Electronics.
ABB will pay up to $470 million to hand over its loss-making solar inverter business to Italy’s FIMER SpA, the first big move by interim CEO Peter Voser and a reflection of the tough conditions in the solar industry. ABB bought the inverter business in 2013 for $620 million when it acquired U.S. solar energy company Power-One Inc, betting that growth in emerging markets would revive the sector. However, sales collapsed from $743 million in 2012 to $290 million in 2018.
As part of the proposed deal, the Canadian company is in discussions with Suzlon’s creditors to restructure the outstanding bank loans of more than ₹11,000 crore ($1.6 billion), under a so-called one-time settlement plan. Brookfield is demanding that the lenders led by State Bank of India (SBI) take a haircut of as much as 50% on the loans.
Sembcorp Industries Wednesday announced infusion of equity worth Rs 516.9 crore into its India arm Sembcorp Energy India (SEIL) to support its renewable energy business in the country. The equity injection is funded through a mix of internal funds and borrowings
India invested $5.9 billion in setting up renewable energy projects in the first half of the current calendar year, a 10 per cent jump compared to the investments in the same period of 2018, as the Modi government continued its drive toward its ambitious target for 175 Gigawatt of renewable energy by 2022, according to research firm Bloomberg New Energy Finance (BNEF).
The renewable energy sector received $1.5 billion of foreign direct investment (FDI) in FY19, 20.1% higher than the previous fiscal, power minister RK Singh informed Parliament.
Other important news
Notwithstanding the outcome of the committee’s decision, reopening PPAs will dent investor sentiment. Additionally, banks will be forced to recognise these assets as non-performing if payments are stopped, thereby, creating further stress for the lending sector.
Coal-based capacity addition in the Indian power sector, which fell to a low of 3,600 Megawatt last financial year (2018-19), is likely to remain subdued in a range between 5,000 Mw and 6,000 Mw in the current fiscal year and the next (2020-21), according to India Ratings and Research
Rooftop solar power installations in India grew at a robust pace in 2018-19 (FY19), with the country adding a record 1,836 MW. At the end of FY19, the installed rooftop solar power generation capacity stood at 4,375 Mw, soaring 72 per cent over FY18. Maharashtra (618 MW), Rajasthan (393 MW), Tamil Nadu (365 MW), Gujarat (314 MW) and Karnataka (298 MW) are the top rooftop solar power generating states.
The Central Electricity Regulatory Commission (CERN) has allowed 5.4 GW of solar project by Bhadla Solar Power to get its safeguard duty back. This move will add to the gains to the tune of 1.9-2.2% of the equity returns- basically the promoters and shareholders will make more profits. After safeguard duty was imposed, returns from solar power projects shrunk by 12-15%.
The revised 2019-2020 budget for Rajasthan has introduced various grants for the renewable energy sector. The exemption in electricity duty will be extended from April 1, 2018, to March 31, 2020. The exemption will be made available to solar projects set up for own use and those set up under the state’s net metering regulations. The state government has also reduced the payable tax by 50% for vehicles that run purely on solar power.
The government has invoked special powers under the Electricity Act of 2003, directing the Central Electricity Regulatory Commission (CERC) to clear a clutch of inter-state transmission lines under the public sector route to save solar and wind power projects worth Rs 40,000 crore from getting stranded.