Monthly RE update- October 2019

Monthly RE update- October 2019

Tenders

Details of new tenders issued in October 2019

Source: JMK Research

New RFS issued

Tender name Technology Ceiling tariff (INR/ kWh) Other details Last date of bid submission
SECI, 400 MW, s “Round-the-Clock” Supply of RE Power to NDMC Solar, Wind, Hybrid with storage EMD: INR 3 million/ MW PBG: INR 6 million/ MW   3 December 2019
NTPC, 90 MW, BOS package, Anta Solar Park, Rajasthan BOS package for Solar plant EMD: INR 200 million 21 November 2019
NTPC, Pan India, 1,000 MW under DBDT scheme Solar EMD: Up to 50 MW- INR 20 million, 60 MW to 110 MW- INR 50 million, 120MW to 220MW- INR 100 million, 230MW to 300 MW-INR 200 million 18 November 2019
SECI, Pan India, 7 GW, 2 GW- manufacturing (capacity increased for earlier issued tender) Solar project development+ Manufacturing 2.93 PBG 1: INR 110 million
PBG 2: 0.5 million/ MW
31 October 2019
CEL, procure multi-crystalline solar cells Solar cells Solar cell minimum efficiency: 18.8% EMD: Nil 21 October 2019
HPPC, Haryana, 300 MW, power procurement short-term open access Solar EMD: INR 30,000/ MW 15 October 2019
UHBVN, Haryana, 100 MW, renewable with storage, power procurement Wind/solar/ small hydro with storage EMD: INR 1 million/ MW PBG: INR 2 million/ MW 13 November 2019
APGCL, 25 MW solar, Namrup Thermal Station Solar EMD: INR 20 million
PBG: 10% of the EPC contract
2 December 2019
HPGCL, 20 MW, solar Solar EMD: INR 20 million
PBG: 10% of EPC contract
26 November 2019
REIL, Rajasthan, 50 MW, Rooftop solar, RESCO Rooftop solar 4.65 (general states) 5.10 (special category states) EMD: INR 0.96 million/ MW   2 November 2019
REMCL, 32.56 MW, EPC, Pan India Solar rooftop EMD: INR 1.2 million 9 December 2019
PSPCL, Punjab, 30 MW, rooftop solar, CAPEX Rooftop solar EMD: INR 50,000   14 November 2019
Bank of Baroda, 2.9 MW, Pan India, OPEX Rooftop solar EMD: INR 1 million 22 October 2019
IIT Delhi, 15 kWp, Odisha, Solar PV Hybrid system, battery storage – 180 kWh Solar PV hybrid system EMD: Nil   30 October 2019
AAI, 7.5 MW, power procurement solar, Raipur, Coimbatore, Amritsar and Aurangabad Airports Power procurement through solar EMD: INR 0.5 million   18 November 2019
TSCL, Karnataka, 1.86 MW, Rooftop solar, RESCO Rooftop solar 3.07 EMD: INR 0.8 million   13 November 2019
Assam, 940 kW, rooftop solar and off-grid floating solar Rooftop solar and off-grid floating solar EMD: INR 1.5 million   13 November 2019
Hyderabad Police Academy, 1 MW, rooftop solar, RESCO Rooftop solar 5.59 EMD: INR 60,000 8 November 2019

EMD- Earnest Money Deposit, PBG- Performance Bank Guarantee

Source: JMK Research

Results announced

Tender name Status Capacity tendered (MW) Capacity allocated (MW) Bidders/ winners details
NTPC, 1.2 GW, Solar, ISTS, Pan India   Projects allotted 1,200 300 TBEA (300 MW at INR 2.63/ unit)  
EESL, 100 MW, solar EPC, Maharashtra, Andhra Pradesh and Jharkhand Projects allotted 100 80 Hild Energy (40 MW)
TATA Power (40 MW)
SECI, 1.2 GW, Solar, ISTS-VI, Pan India Bids submitted 1,200 1,200 ReNew (300 MW)
UPC Renewables (300 MW)
Avaada Energy (300 MW)
Tata Power (300 MW)

Source: JMK Research

Projects commissioned

In September 2019, about 393 MW of new solar capacity and 180 MW of new wind capacity is added.

State-wise installations in solar and wind during September 2019 – 573 MW

Source: MNRE, JMK research

List of projects commissioned

Project developer name Technology Capacity (MW) Tender name State Date of commissioning
Carbonaire Industries Pvt Ltd Solar 2 Captive Tamil Nadu September 2019
Muthur Murugan Mills Solar 2 Captive Tamil Nadu September 2019
Mahalakshmi Dairy Private Limited Solar 2 Captive Tamil Nadu September 2019
Top Light Renewable Energy Private Limited Solar 6 Captive Tamil Nadu September 2019
Selvam Process Solar 1 Captive Tamil Nadu September 2019
AMG Clean Energy Private Limited Solar 4.125 Captive Tamil Nadu September 2019
Parvathi Angalamman Mills Private Limited Solar 1 Captive Tamil Nadu September 2019
Kasim Textile Mills Private Limited Solar 3 Captive Tamil Nadu September 2019
Selvi Spinning Mill Solar 1 Captive Tamil Nadu September 2019
Periyanayakki Cotton Mill Solar 1 Captive Tamil Nadu September 2019
SunAlpha Energy Solar 1.2 Rajasthan October 2019
Adani Green Energy Wind 50 SECI, 1,000 MW, Pan India, Wind I, Feb-2017 Gujarat October 2019
Aditya Birla Group Solar 24 No tender Odisha October 2019
ReNew Power Solar 250 MSEDCL Maharashtra 1,000 MW, Jun-2018 Rajasthan October 2019
ReNew Power Solar 3 No tender Rajasthan October 2019
ReNew PowerWind64SECI, Pan India, 1,000 MW, Tranche 2, Oct 2017GujaratOctober 2019

Source: JMK Research

Investment/ deals

Date Company name Deal type Sector Acquirer/ Investor Deal value Stake acquired
2 October 2019 Orb Energy M&A Solar Shell NA 20%
3 October 2019 Adani Green Energy Green Bonds Solar NA $362.5 million NA
15 October 2019 SunEdison M&A Solar Avyan Renewable NA 31%

Source: JMK Research

Other key announcements

Abu Dhabi’s Masdar seeks to acquire minority stake in Hero Group’s clean energy arm

Masdar Clean Energy, wholly owned by the Abu Dhabi government’s Mubadala Investment Company, is seeking to acquire a minority stake in the Munjal family-led Hero Group’s clean energy arm. Masdar, also known as Abu Dhabi Future Energy Company, plans to subscribe to equity shares in Hero Future Energies Global Ltd (HFE UK) and non-voting compulsorily convertible preference shares in Hero Future Energies Pvt. Ltd (HFE India), according to a filing made to the Competition Commission of India.

LGT Lightstone looks to fund AMP’s India unit

Attracted by India’s green energy trajectory, LGT Lightstone Aspada plans to invest up to $50 million in Canadian firm AMP Solar Group’s India unit to acquire a minority stake.

ReNew load shedding sees 300MW of solar assets  put  on  the  block

ReNew Power, which until recently was a major acquirer of renewable assets in India, has put 300 MW of solar assets on sale as the company tries to cope with rising uncertainty in the industry.

Monthly export-import 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

Chhattisgarh Grid Interactive Distributed Renewable Energy Sources Regulations, 2019

Chhattisgarh issued regulations specifying the terms and conditions for grid interactive distributed RE sources. Some of its salient features are:

  • A consumer can set up solar plant on its own location or on the premises of a third party owner under a contractual agreement.
  • Under net metering arrangement, distribution licensee shall procure excess energy generated at lowest rooftop solar tariff discovered through competitive bidding in the last financial year.
  • 100% banking of energy shall be permitted for all captive and open access consumers @2% banking charges.

MNRE Draft Guidelines for Tariff based Competitive Bidding Process for Procurement of Power from Grid Connected Wind-Solar Hybrid Project

The objective of issuing the guidelines is to provide a framework for procurement of electricity from wind solar hybrid power project through a transparent process of bidding including standardization of the process and defining of roles and responsibilities of various stakeholders. Key highlights include:

  • The applicability of the guidelines for long term power procurement is from Wind-solar hybrid project of 5 MW and above at one site with minimum bid capacity of 25 MW for intrastate projects. For inter-state projects, individual size of 50 MW and above at one site with minimum bid capacity of 50 MW.
  • To reduce the variability of output power from wind solar hybrid project, storage may be added to the hybrid project.
  • The procurer is provided payment security to the generator through letter of credit, payment security fund and state government guarantees.
  • Earnest Money Deposit to be fixed by the procurer not more than 2% and Performance Bank Guarantee (PBG) to be fixed at not more than 5% of the estimated capital cost for hybrid project.
  • Financial closure shall be attained within 7 months from the date of execution of the PPA.
  • On account of grid unavailability or in the eventuality of a back-down, Hybrid power generator should be compensated for the generation loss.
  • Change in Law shall not include any change in (a) taxes on corporate income or any change in any withholding tax on income or dividends; and (b) Custom duty on imported equipment.

First amendment to MPERC Forecasting, Scheduling, Deviation Settlement Mechanism and related matters of Wind and Solar generating stations regulations, 2018

  • Regulations applicable to all wind power generators having 10 MW and above capacity and solar power generators having 5 MW and above capacity. These are also applicable to power selling through open access outside the state having installed capacity of 1 MW and above.
  • Its mandatory to appoint a common qualified coordinating agencies (QCAs) within two months from the date of issue of notice by the State Load Despatch Center (SLDC), else the concerned licensee will be asked to disconnect the defaulting generators.
  • MPERC has asked QCA’s to submit payment security in the form of Bank Guarantee towards the settlement of Deviation settlement mechanism (DSM) charges. Payment security has to be provided for Solar at INR 10,000/MW and for Wind at INR 40,000/ MW.
  • Intra-day revisions are to be restricted to 16 revisions in a day at an interval of 1.5 hrs (in line with CERC guidelines). Earlier, there was no restriction on the number of revisions.

Amendments to the Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Solar PV Power Projects

  • Solar Power Generator may be required either to aggregate the solar power purchased from different Solar Power Generators and sell it to the distribution licensee, or to enhance the credit profile. In this, the Intermediary Procurer shall enter into a PPA with the Solar Power Generator and also enter into a Power Sale Agreement (PSA) with the End Procurer. The trading margin, of Rs. 0.07/kWh, shall be payable by the end procurer to the intermediary procurer.
  • In case of aggregation of power purchased from different Solar Power Generators, the intermediary procurer may sell the solar power to end procurer at the weighted average of tariffs discovered and finalised for different bids over a period of (1st January to 30th June) or (1st July to 31st December) of any year.
  • The Intermediary Procurer shall provide payment security to the Solar Power Generator through LC (of amount not less than 1 month’s average billing) and Payment Security Fund (not less than 3 month’s average billing).
  • Upon occurrence of a Non-Natural Force Majeure Event, the Generator have the right to terminate the PPA forthwith after the completion of the period of 180 days from the date of the Force Majeure Notice.

Draft Maharashtra Electricity Regulatory Commission (Grid Interactive Rooftop Renewable Energy Generating Systems) Regulations, 2019

Net-metering under this regulation is allowed only for residential category. The cumulative capacity of all Renewable Energy Generating Systems under Net Metering Arrangements and/or Net Billing Arrangements connected to a particular Distribution Transformer/feeder of the Licensee shall be allowed up to 40% of its rated capacity.

Draft New and Renewable Sources of Energy Policy 2019, Punjab

The objectives of the policy are:

  • To generate 21% power through renewable energy in the total energy mix by 2030.
  • Target of setting up 3,000 MW of solar projects by 2030, which will include utility-scale, canal-top, rooftop, floating, and hybrid solar projects.
  • To attain non-solar power generation capacity of 1,500 MW, the state would include biomass, biomass and bagasse co-generation, and small hydro.
  • To develop 500 MW equivalent bio-fuels (CBG, Bio-Ethanol, Bio-Coal, BioPellets) projects based on biomass as main feedstock
  • Other objectives include development of energy storage technology based Renewable energy projects, promoting development and usage of Electric Vehicles and Solar Charging Stations in the state

MNRE clarification for domestically manufactured solar PV cells

MNRE issued a notification clarifying that a solar PV cell shall be considered to be domestically manufactured only if the same has been manufactured in India, using undiffused silicon wafer (generally called ‘Black Wafer’), classifiable under Customs Tariff Head 3818. Further all steps / processes required for manufacturing solar PV cell from the undiffused silicon wafer have to be carried out in India. The same shall be used for solar PV cell manufacturing facility required to be set-up under SECI’s manufacturing linked-PPA initiative. If diffused silicon wafer (generally called ‘Blue Wafer’) is imported and the same is used as raw material for the manufacture of solar PV cells in India, such solar PV cells shall not qualify as domestically manufactured solar PV cells.

 

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