Monthly RE update- November 2019

Monthly RE update- November 2019

Tenders

Details of new tenders issued in November 2019

Source: JMK Research

New RFS issued

Tender name Technology Ceiling tariff (INR/ kWh) Other details Last date of bid submission
MSEDCL, 500 MW, Maharashtra, Solar, Phase IV Utility scale solar 2.90 EMD: INR 0.5 million/ MW 12-Dec-2019
CIAL, Kerala, 12 MW, Solar Utility-scale solar   EMD: INR 4.5 million 4-Dec-2019
CIL, 100 MW, Chhattisgarh, Solar Utility-scale solar   Project should be in capex mode. 25-Nov-2019
CMRL, 54 MW, Tamil Nadu, Group Captive solar, Chennai Utility-scale solar      
Damodar Valley Corporation, 50 MW, solar, Jharkhand Utility-scale solar   EMD: INR 18.5 million 27 December 2019
ONGC, 15 MW, Gujarat, solar Utility-scale solar   EMD: INR 6.277 million 30 December 2019
GAIL, 1.8 MW, Solar, Madhya Pradesh Utility-scale solar   EMD: INR 2 million 18 December 2019
UPCL, 1-500 kWp rooftop solar projects, Uttarakhand Rooftop solar   EMD: INR 0.4 million 11 December 2019
PEDA, 10 MW, Punjab, rooftop solar Rooftop solar   EMD: INR 0.2 million  
GAIL, 3.2 MW, Pan India, rooftop solar Rooftop solar   EMD: INR 2.28 million 29-Nov-2019
MEDA, 3.65 MW, rooftop solar, RESCO, Maharashtra Rooftop solar   EMD: INR 0.1 million 4 December 2019
Irrigation Department, Uttarakhand, 40 MW, solar, Uttarakhand Utility-scale solar   EMD: INR 32.2 million 3 December 2019
HAL, 2 MW, rooftop solar RESCO, Telangana Rooftop solar   EMD: INR 0.2 million 9 December 2019
Hindustan Insecticides, 2.15 MW, RESCO rooftop solar with battery storage Rooftop solar   Estimated cost of project: INR 96.89 million 28 November 2019
ANERT, 10 MW, Off-grid solar, Kerala Off-grid solar   EMD: INR 0.2 million 29 November 2019

EMD- Earnest Money Deposit

Source: JMK Research

Results announced/ Bids submitted

Tender name Status Capacity tendered (MW) Capacity allocated (MW) Bidders/ winners details
SECI, 1.2 GW, Solar, ISTS-VI, Pan India Projects allotted 1,200 960 ReNew (300 MW at INR 2.71/unit)
UPC Renewables (300 MW at INR 2.71/ unit)
Avaada Energy (300 MW at INR 2.71/unit)
Tata Power (300 MW)
SECI, 2 GW manufacturing with 6 GW of project development Bids submitted 2 GW- Manufacturing 6 GW- Project development   Adani– 1 GW manufacturing with 4 GW project development
Azure– 0.5 GW manufacturing with 2 GW project development
Navyug Power– 0.5 GW manufacturing with 2 GW project development

Source: JMK Research

Projects commissioned

In October 2019, about 566 MW of new solar capacity and 160 MW of new wind capacity is added.

State-wise installations in solar and wind during October 2019 – 726 MW

Source: MNRE, JMK research

List of recently commissioned projects

Project developer name Technology Capacity (MW) Tender name State Date of commissioning
Acme Solar 250 MSEDCL Maharashtra 1,000 MW, Jun-2018 Rajasthan October 2019
ReNew Solar 250 MSEDCL Maharashtra 1,000 MW, Jun-2018 Rajasthan October 2019
Adani Green Energy Wind 50 SECI, 1,000 MW, Pan India, Wind I, Feb-2017 Gujarat October 2019
ReNew Wind 64 SECI, Pan India, 1,000 MW, Tranche-2, Oct 2017 Gujarat October 2019
Sree Godavari Kraft Papers Pvt Ltd Solar 3 Captive Andhra Pradesh November 2019
KREDL Solar 50 EPC Karnataka November 2019
Super Tasty Bakery Foods Solar 1.8 Captive Karnataka November 2019
BTS Roller Flour Mill Solar 1.8 Captive Karnataka November 2019

Source: JMK Research

Investment/ deals

Date Company name Deal type Sector Acquirer/ Investor Deal value Stake acquired
11 November 2019 Hero Future Energies Equity Solar Masdar $150 million 20%
15 November 2019 Tata Cleantech Debt RE AIIB $75 million NA
20 November 2019 Avaada Energy Equity Solar PROPARCO $15 million NA

Source: JMK Research

Other key announcements

Azure power to raise US $75 million equity from Canadian investor CDPQ

Azure power is expected to raise $75 million through private placement of shares to CPDQ. CPDQ already had 41.4% stake in Azure Power and this financial deal will increase CPDQ’s equity stake to 49.4%. The deal is expected to complete by December 2019.

Mahindra in final lap to sell solar portfolio

Mahindra Susten, the renewable business arm of Mahindra group, has got binding offers from CLP India and the Piramal Group for its 160 MW solar assets. Both parties have completed due diligence of the assets and submitted binding offers for Susten’s solar portfolio. As per industry sources, the sale is part of the company’s plans to sell completed projects and recycle the capital to develop its project pipeline.

Brookfield in talks to invest $800 million in ReNew Power

Canadian asset management firm Brookfield is in talks to invest $800 million in India’s largest green energy company ReNew Power, said two people familiar with the development. Brookfield, which is currently conducting due diligence, would be providing partial exit to Goldman Sachs. The US investor owns over 48% in ReNew Power.

Monthly import-export statistics

*Provisional data, final data not yet released by the government

Source: Ministry of Commerce, JMK research

Global Price Trends

Source: EnergyTrend, JMK Research

Policy and Regulations

MNRE invited EOI/ bid for evaluation of scheme for setting up 5000 MW grid connected solar PV projects with VGF under Batch -IV of phase-II of JNNSM

MNRE has invited bid for technical and financial proposal for assessment of the scheme effectiveness, impact, lessons to be drawn and need to continue with the programme of at least 5 GW of grid connected solar PV projects with VGF. The last date of bid submission is 27 November 2019 as per the amended notification by MNRE. Earnest money deposit is INR 0.2 million.

MNRE clarifies the installation of additional DC capacity in Solar PV plants

MNRE has clarified that solar energy developers can install additional DC capacity to meet the contracted AC capacity. As per the amended regulation, the procurer is obligated to buy the energy generated beyond the contracted AC capacity. Also, excess generation is not the violation of PPA or PSA. Developer shall be penalised only if the supply falls short of the contracted capacity. Since, setting up power generation is an unlicensed activity, so any person is entitled to set up any capacity which he desires to set up, and sell power to any entity which may want to buy it.

Guidelines on implementation of Component-C of PM-KUSUM scheme on Solarization of grid-connected agricultural pumps

MNRE has issued guidelines for implementation of grid-connected agricultural pumps for farmers under KUSUM scheme. It supports installation of solar PV capacity up to twice the pump capacity which will provide reliable day time power supply for irrigation. Farmers can sell excess generation to DISCOMs which can be a source of additional income to them. The target is to solarize 1 million grid-connected agricultural pumps of capacity up to 7.5 HP by 2022. Initially 0.1 million pumps shall be solarized on pilot basis and can be scaled up further by evaluating the pilot mode. CFA up to 30% of cost of solarization of the pump up to 7.5 HP shall be provided by central government. Implementing agency shall create remote monitoring system to monitor performance of the system post-installation. State may choose to install watchdog transformer and devices to regulate power supply and monitor non-participating connections on the feeder concerned. Central monitoring portal shall be developed by MNRE which will extract data from state portals for data monitoring.

KSERC directs KSEB to modify PSA for 200 MW wind power on long term basis signed with SECI

KSEB has filed petition seeking approval for the 200 MW wind Power supply agreement (PSA) with SECI in order to meet its RPO. At that time, buying entity was liable to bear all the transmission losses as determined by the commission. But as per CERC regulations, the charges and losses for the use of ISTS for the period of 25 years are to be exempted. Hence, the modification has been made by KSERC that KSEB is not liable to pay interstate transmission charges and shall also not be liable to bear any transmission losses for entire term of the PSA. PSA shall be finally approved after the incorporation of this clause.

MNRE clarification on RPO contribution of Solar-wind hybrid projects

MNRE’s National Solar-Wind hybrid policy was issued in May 2018 which stated both solar and wind power procured shall be used for the fulfilment of solar and non-solar RPO respectively. Recently, a clarification has been made by MNRE regarding RPO contribution of each source. As per the notification, calculation will be based on the declared capacity of each source during the PPA. However, during implementation the obligated entities shall be allowed to choose proportion which could be different from what was stated in PPA.

Ministry of power regulation on inter-state transmission of solar and wind power

Ministry of power issued an order for the waiver of inter-state transmission charges and losses while using ISTS network for transmission of power generated from solar and wind power plants. This order is applicable to the projects commissioned till December 2022.

Andhra Pradesh government made key amendments to Solar, Wind and hybrid policies 2018

AP government after observing the deteriorated financial position of DISCOMs made key amendments in its policies for solar, wind and hybrid projects.

  • All the exemptions related to transmission and distribution charges in the existing policies shall be no more applicable.
  • The charges for inter-state and intra-state wheeling of power to the nearest CTU via STU network shall be determined by APERC.
  • The facility of energy banking has been withdrawn from the solar and wind generators. No cost shall be paid for energy injected between synchronisation and COD declaration.
  • The tariff for solar, wind and hybrid projects shall not exceed the difference between pooled variable cost and balancing cost. Both the cost shall be determined by APERC every year.
  • Land allotment for the development of projects is mandated to be done on lease hold basis.

Ministry of power proposed rebate in the cost of power due to pre-payment made by the procurer

After the LC got mandated as payment security mechanism under PPA by distribution licensee, it has been observed that timely payment to the generators reduces the requirement of working capital. Hence, it has been advised that appropriate rebate mechanism should be developed by the commission in case of advance payment by DISCOMs to the generators.

APTEL proposed TNERC to review solar tariff

Welspun renewable energy and NSEFI has filed petition in 2016 challenging the state’s solar tariff. It was stated that the tariff order has been passed irrationally without analysing the cost of components in detail. Various components such as depreciation, spares, degradation of modules, auxiliary consumption and Return on Equity were determined in an ad hoc manner. The capital cost determined by TNERC was lower and unjustifiable as compared to CERC and other SERCs. In the absence of any reasoning behind the setting up of solar tariff by TNERC, APTEL observed that there is a need to redetermine the tariff and ensure recovery of revenue to the developers. TNERC is directed to pass a consequential order addressing the issues mentioned within three months from the date of the order.

Amendment to the Off-grid solar regulation 2014 by KSERC

KSERC has earlier stated that all licensees shall provide generation-based incentive (GBI) at the rate of Rs 1.00/unit for a period of five years from 30 September 2014 or till KSEB Ltd meet its solar RPO for any year by purchasing solar energy whichever is earlier. KSEB to meet its solar RPO has extended the validity of the regulation by another two years.

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