Monthly RE update- September 2019

Monthly RE update- September 2019

Tenders

New RFS issued in September 2019

Tender name Technology Ceiling tariff (INR/ kWh) Other details Last date of bid submission
MSEDCL, Hybrid, Maharashtra, 80 MW Wind-solar hybrid 2.80 Earnest Money Deposit: INR 1 million/ MW Performance bank guarantee: INR 2 million/ MW 30 Sep 2019
NHPC, Pan India, 2,000 MWSolar2.95Earnest Money Deposit: INR 1 million/ MW. Performance Bank Guarantee: INR 2.5 million/ MW 27 Sep 2019
RRECL, Rajasthan, 113.5 MW Small scale solarNAEarnest Money Deposit: INR 0.5 million/ MW. Performance Bank Guarantee: INR 1 million/ MW 11 Oct 2019
SECI, Lakshadweep, 1.95 MW + 2.15MWh battery energy storage Solar + BESS NA Entire project shall be allocated to single bidder based on the price bid Earnest Money Deposit: INR 4 million 8 Nov 2019
SECI, Wind, Pan India, Tranche IX, 1200 MW Wind 2.85 Earnest Money Deposit: INR 0.7 million Performance bank guarantee: INR 2 million/ MW 5 Nov 2019
UPNEDA, Solar, 500 MW Solar 3.25 Earnest Money Deposit: INR 0.6 million/ MW Performance bank guarantee: INR 2 million/ MW 22 Oct 2019 
ITI, Karnataka, Power procurement, open access, 600,000 kWh Open access solar NA   10 Oct 2019
Bharat Petroleum, Maharashtra, 6 MW – solar, 9 MW – non-solar Open access Solar + Non-solar NA Earnest Money Deposit: INR 1 million/ MW   3 Oct 2019
UPNEDA, Uttar Pradesh, 16 MW, CAPEX Solar rooftop NA Earnest Money Deposit: INR 60,000 for project capacity not less than 5 kW, INR 4.8 million for 50 kW project, INR 2.1 million for 100 kW project 23 Sep 2019
UPNEDA, Uttar Pradesh, 60 MW Solar rooftop Earnest Money Deposit (EMD) will be based on the bid capacity proposed by the bidder 10 Oct 2019
JREDA, Jharkhand, 15 MW Solar rooftop Earnest Money Deposit: INR 0.2 million/ 100 kW   10 Oct 2019
RSRTC, Rajasthan, 4 MW, RESCO Solar rooftop Earnest Money Deposit: INR 3.6 million 10 Oct 2019

Result Announced

Tender nameTendered capacity (MW)Allotted capacity (MW)Winners
SECI, CPSU, I, 2,000 MW2,000922.4NTPC- 769.4 MW
Singereni Colleries Company- 90 MW
Assam Power Distribution- 30 MW
NHDC Ltd.- 25 MW
DMRC- 5 MW
Nalanda University- 3 MW
NTPC, Kerala, Floating solar, 70 MW7070Tata Power Solar

Source: JMK Research

Projects

In August 2019, about 637 MW of new solar capacity and 64 MW of new wind capacity is added.

State-wise installations in solar and wind during August 2019 – 701 MW

Source: MNRE, JMK Research

List of projects commissioned

Project developer name Technology Capacity (MW) State Date of commissioning
NLC Solar utility 100 Tamil Nadu August 2019
Adani Solar utility 100 Maharashtra August 2019
Bharathi Cement Solar utility 10 Andhra Pradesh September 2019
NLC Solar utility 95 Tamil Nadu September 2019
Tata Power Solar utility 150 Rajasthan September 2019
Gujarat Alkalies Solar utility 20 Gujarat September 2019
SolarArise India Solar utility 27 Karnataka September 2019

Source: JMK Research

Investments/ Deals

Date of announcement Company name Deal type Sector Acquirer/ Investor Deal value Stake acquired
4 Sep 2019 Bajaj Energy IPO NA NA INR 54,500 Million NA
6 Sep 2019 ReNew Bonds Renewables HSBC, JP Morgan and Barclays $300 Million NA
13 Sep 2019 Vestas PE Wind IKEA (Ingka Group) $151 Million 80%
30 Sep 2019 Gensol IPO Solar NA INR 170 Million NA

Source: JMK Research

Other key announcements

GIP and Edelweiss in final lap to buy Engie’s India Solar Portfolio

Global Infrastructure Partners (GIP) and Edelweiss Infrastructure Yield Plus fund are competing to acquire the solar energy portfolio of French major Engie in India for around $400 million, said two people aware of the development.  Engie has a renewable energy capacity of 1.5 GW in India. It has an installed capacity of 810 MW in solar and a capacity of 280 MW in wind. Rothschild & co is running a sale mandate for Engie.

Essel Group in talks with Adani to sell solar energy assets

The Essel Group, which needs to sell a host of assets to stave off loan defaults, is in talks with the Adani group to sell its remaining solar energy portfolio, said two people close to the development. Essel is rushing to complete its unfinished solar power projects of 480 megawatts (MW) to sell them to Adani Green Energy Ltd, the group’s renewable energy arm.

Statkraft front-runner in race for 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.

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

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 fulfilment 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)

  • Deviation Settlement Mechanism (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 up to 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

Tamil Nadu’s electric vehicle policy elicits praise from industrialists

EV related and charging infrastructure manufacturing units get 100% exemption on electricity tax till December 2025. Units that obtain land by sale or lease shall be entitled to 100% exemption on stamp duty for transactions till Dec 2022. Units that obtain land from SIPCOT, SIDCO or other government agencies will be provided a 15% subsidy on the cost, and will be provided 50% subsidy if the investments are in the southern districts.

Chhattisgarh State Electricity Regulatory Commission finalizes regulation for its grid interactive distributed RE sources

These regulations would apply to PDRES (Prosumer Distributed Renewable Energy Systems) owned by prosumer or third-party owned and IDRES (Independent Distributed Renewable Energy System) installed in the area of supply of the distribution licensee. In the third-party-owned solar project, a rooftop or landowner may lease out or rent the premise to a solar developer on a mutual commercial arrangement. The Commercial arrangement between the project developer and the premise owner will be submitted to the Distribution Licensee for records. The consumer availing open access may establish renewable energy systems in its premises only if it is under the IDRES.

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