Monthly RE update- December 2019

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Monthly RE update- December 2019

Tenders

  • About 1,768 MW of renewable tenders are issued in December 2019 including- 1,500 MW utility-scale solar project development tenders, 500 MW EPC solar tenders, 6.4 MW rooftop solar tenders, 200 MW of wind tenders and 55 MW EPC hybrid tenders.
  • About 2.5 GW of solar tenders were either re-issued/ retendered
  • Auction is completed for about 2.6 GW of solar tenders.

New RFS Issued

Tender name Technology Ceiling tariff (INR/ kWh) Other Details Last date of bid submission
MSEDCL, Maharashtra, 200 MW, Intra State, Wind, Dec 2019 Wind 2.52 EMD: INR 0.5 million/MW 22-Jan-2020
Power & Electricity Department, Mizoram, 20 MW, Vankal Solar Park, Dec 2019 Utility-scale solar 4.50 EMD: INR 0.4 million/MW PBG: INR 7.50 Lakh/MW 23-Jan-2020
NTPC, CPSU Scheme Phase II    Tranche II, DCR, 923 MW, Solar, Dec 2019   Utility-scale solar     03-Dec-2019  
NTPC, 500 MW, Maharashtra, Solar, EPC, Dec 19   Utility-scale solar     02-Jan-2020  
OIL, Gujarat , 55 MW, Hybrid, EPC, Dec 2019 Hybrid   EMD: INR 2.75 crores 24 Dec 2019
CEL, Maharashtra, 44 MW, Solar, Dec 2019 Utility-scale solar   EMD: INR 10 lakh 30-Dec-2019
CCL, Jharkhand, 20 MW, Solar, Dec 2019 Utility-scale solar   EMD: INR 5 million 15-Jan-2020
MSEDCL, Maharashtra, 500 MW, Intra State Solar, Phase V, Dec 2019 Utility-scale solar2.90EMD: 0.5 million/ MW
PBG: 1.4 million/ MW
28-Jan-2020
NLCIL, 10 MW, Tamil Nadu, Solar, O&M, Dec 2019 Utility-scale solar   EMD: INR 9,17,000 28-Dec-2019  
SKDCL, 1.3 MW, Solar, Dec 2019 Rooftop Solar   EMD: INR 1 million 3-Jan-2020
MEDA, Pune, 175 kW, Solar, Dec 2019 Rooftop Solar     EMD: INR 87,600 30-Dec-2019
MEDA, Pune, Municipal Council Ballarpur, 140 kW, Solar, Dec 2019   Rooftop Solar     EMD: INR 70,200   17-Dec-2019  
BELAGAVI, Karnataka, 467 kW, Solar, Dec 2019 Rooftop Solar   3.07 EMD: INR 2,35,000  
UREDA,90 kW, Rooftop Solar, Dec 2019 Rooftop Solar   EMD: INR 0.014 million 24-Dec-2019  
NTPC, Uttar Pradesh, 870 kW, Solar, Dec 2019 Rooftop Solar   EMD: INR 0.5 million   27-Dec-2019
MEDA, Nagpur, 75 kW, Solar, Dec 2019 Rooftop Solar     EMD: INR 37,800 26-Dec-2019  
KSEBL, Kerala, 385 kW, Solar, Dec 2019 Rooftop Solar   EMD: INR 50,000 2-Jan-2020  
MES, Tamil Nadu, 500 kW, Solar, Dec 2019 Rooftop Solar   EMD: INR 3,49,000 30-Dec-2019    
CPWD, Bungalows of Supreme Court Judges, New Delhi, Solar, Dec 2019 Rooftop Solar   EMD: INR 7,34,006 6-Jan-2020  
CEL, Tamil Nadu, 1.6 MW, Solar, O&M, Dec 2019 Rooftop Solar   EMD: INR 7,50,000 4-Jan-2020  

*EMD- Earnest money deposit, PBG- Performance bank Guarantee

Source: JMK Research

Retendered/ Reissued

Tender name Technology Ceiling tariff (INR/kWh) Other details Last date of bid submission
HPGCL, Old Dye, Haryana, 20 MW, Solar, Dec 2019 Utility-scale solar   EMD:  20 million
15-Jan-2020 (earlier 25 Nov 2019)
MSEDCL, Maharashtra 1,350 MW, Solar, Dec 2019 Utility-scale solar 3.30 (earlier 3.14) EMD: 0.1 million/ MW 29-Jan-2020
SECI, 1,200 MW, ISTS connected RE with storage, Phase VII Renewable+storage   EMD: 0.75 million/ MW (earlier 0.6 million/ MW) 19-Dec-2019 (earlier 29 Nov 2019)

Source: JMK Research

Projects allotted/ Bids submitted

Tender name Status Capacity tendered (MW) Capacity allocated (MW) Bidders/ winners details
SECI, 2 GW manufacturing with 6 GW of project development Projects allotted 2 GW- Manufacturing 6 GW- Project development 0.5 GW manufacturing with 2 GW project development Azure
RRECL, Rajasthan, 113.5 MW Bid submitted 113.5 MW   EESL-113.5 MW, Sukhbir Agro-16 MW,  Hero Future Energy-15.5 MW, ATA Renewable-6.5 MW
MSEDCL, 500 MW, ISTS Phase IV, Solar Bid submitted 500 500 Juniper Green Energy Pvt Ltd-150 MW(2.89), Maharashtra State Power Generation Co. Ltd.-350 MW(2.90)
MSEDCL, Maharashtra, 1,350 MW Bid submitted 1,350   Kiran Renewables-5 MW

Source: JMK research

Projects Commissioned

In November 2019, about 824 MW of new solar capacity and 189 MW of new wind capacity is added.

State-wise installations in solar and wind during November 2019 – 1013 MW

Source: MNRE, JMK research

List of recently commissioned projects

Project developer name Technology Capacity (MW) Tender name Location
ENGIE Wind 30 GUVNL, Gujarat, 500 MW, Dec 2017 Gujarat
AAI Rooftop solar 1.1 Assam, Bihar, Maharashtra
AMP Energy (for SKODA Volkswagen) Rooftop solar (OPEX) 8.5 Maharashtra
SB Energy Utility scale solar 200 SECI Karnataka 200 MW, May-2018 Karnataka
Acme Utility scale solar 85 KREDL Karnataka 860 MW, Feb-2018 Karnataka
ReNew Utility scale solar 105 KREDL Karnataka 860 MW, Feb-2018 Karnataka
Asian Fabtech Utility scale solar 95 KREDL Karnataka 860 MW, Feb-2018 Karnataka
Solarpack Utility scale solar 40 KREDL Karnataka 860 MW, Feb-2018 Karnataka
Rays Power Infra Utility scale solar 35 KREDL Karnataka 860 MW, Feb-2018 Karnataka
Shapoorji Pallonji Utility scale solar 20 KREDL Karnataka 860 MW, Feb-2018 Karnataka
Sree Godavari Kraft Papers Pvt Ltd Captive 3 NA Andhra Pradesh

Source: JMK research

Investments/ Deals

Announcement date Acquirer/ Investor Company name Sector Deal type Deal value Stake acquired
17 December 2019 Bank of America Fourth Partner Energy Solar Debt $50 million NA                       
5 December 2019 Sembcorp Gayatri Energy Renewable Equity INR 406 crore 6%
23 December 2019 AIIB Hero Future Energies Solar Debt $65 million NA
18 December 2019 Sathguru Catalyser’s IFA Fund Ecozen Solar cold storage & solar pumps Debt $6 million NA
16 December 2019 Vector Green RattanIndia Solar M&A 275 MW 100%

Source: JMK Research

Other key announcements

Adani Green may buy rest of Essel’s 480-MW solar assets

After selling 205 MW of its operational solar energy portfolio to the Adani Group, the Essel Group has reached an agreement to sell the remaining 480 MW — currently under construction — to Adani Green Energy, two people with direct knowledge of the development said. The Adani Group has agreed in principle to buy out the remaining portfolio, one of the people said.

FMO to invest more in Shell-backed solar power firm Orb Energy

Dutch development bank FMO has proposed an additional equity investment of €1 million ($1.11 million or Rs 7.91 crore) in Orb Energy Pte. Ltd, a solar photovoltaic and solar thermal solutions provider.

NTPC to invest Rs 50,000 crore to add 10GW solar energy capacity by 2022

State-owned power giant NTPC is planning to add 10GW of solar energy generation capacity by 2022, which entails an investment of around Rs 50,000 crore, to be funded mainly by green bonds, a source has said. At present, NTPC has installed renewable energy capacity of 920 MW, which includes mainly solar energy. It has formulated a long term plan to become a 130 GW company by 2032 with 30 per cent non-fossil fuel or renewable energy capacity.

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 Regulation

Amendments to Dispute Resolution Mechanism

MNRE has constituted a Dispute Resolution Mechanism Committee in June 2019 to consider disputes between solar/ wind power developers and SECl/ NTPC. Further amendments are notified in December 2019, to clarify on existing clauses related to extension of time due to force majeure events such as flood, earthquake, and other natural calamities.

Guidelines for Development of Decentralised Solar Power Plants

  • Objective of  these  Guidelines  is  to  provide  a  facilitative  framework  for  development  of Decentralised Solar Power Plants near distribution sub-stations in the country and fulfilment of Solar RPO.
  • Guidelines are   applicable  for  procurement  of  solar  power   by  DISCOMs   from Decentralised Solar Power Plants of capacity more than 2 MW; or plants connected to distribution sub-stations of rating 66/11 KV and higher; or plants up to 2 MW capacity and connected to any DISCOM of rating 33/11  KV  and  below (where  the  sanctions  given  to  DISCOM  under  PM-KUSUM are exhausted).
  • DISCOMs will  notify  substation  wise  solar  power  capacity available on the basis of average energy/load requirement during day time, technical feasibility, etc. The DISCOM may decide the capacity of individual solar plant permitted to be set up and the radius within which the plant should be situated.
  • The solar power generated will be purchased by DISCOMs at a tariff determined by respective SERC or discovered through competitive bidding process.
  • The DISCOM shall provide connectivity at the sub-station/11 kV/LT feeder, and shall ensure “must-run” status to the solar plants.
  • Solar Power Generator shall provide Earnest Money Deposit (EMD) of Rs. 1 Lakh/MW in the form of Bank Guarantee along with Performance Bank Guarantee (PBG) of Rs. 5 Lakh/MW.
  • In case land and connectivity is being provided by the  DISCOM,  commissioning timeline is within nine months from date of issuance of LoA. In other cases, the commissioning shall be done within 12 months of issuance of LoA

Chhattisgarh State Electricity Regulatory Commission (Terms and conditions for determination of generation tariff by plants based on renewable energy sources) Regulations, 2019

  • The regulations apply to the Renewable Energy projects, achieving commercial date of operation (COD) from April 1, 2019, to March 31, 2022, and are supplying entire power to state DISCOM on a long term basis.
  • For solar projects, a normative capital cost of Rs 4.5 crore/MW (5 MW to 2 MW) and Rs 4 crore/MW (2 MW to 5 MW) is set. The O&M expenses have been set at Rs 7 lakh/MW for the first year of the project. Additionally, the commission has set the capacity utilisation factor (CUF) at 19 percent for solar PV projects.
  • For wind energy projects, the regulations specify a capital cost of Rs 5.25 crore/MW for the financial year 2019-20

Rajasthan Solar Energy Policy 2019

  • Target to setup 30,000 MW Solar Power Projects up to 2024-25. Following targets are defined:
    • Utility/Grid Scale Solar Parks-24,000 MW
    • Distributed Generation 4,000 MW
    • Solar Rooftop 1,000 MW
    • Solar Pumps 1,000 MW
  • Government announced to develop 33 district headquarters as ‘Green Energy Cities’ -district headquarters in next 5 years by installing 300 MW of Solar Rooftop Systems.
  • Solar rooftop systems up to 1 MW capacity will be allowed under gross metering scheme as well
  • Transmission and wheeling charges are exempted for solar projects of maximum 25 MW capacity, setup between Dec 2019 and March 2023, as per following criteria:
    • For solar projects setup for captive consumption outside the premises of consumer, there is 50% exemption in transmission and wheeling charges for 7 years
    • For third party sale open access projects, there is 50% exemption in transmission and wheeling charges for 7 years
    • For solar projects with storage, for captive/ third party sale, there is exemption of 75% of transmission and wheeling charges for 7 years.
  • Banking of energy at the drawl end within the State shall be permitted for captive consumption and third party sale on yearly basis. Banking charges shall be adjusted in kind @ 10% of the energy delivered at the point of drawl.
  • For solar equipment manufacturers, there is 100% exemption in stamp duty. Land allotment will be at 50% concessional rate, full exemption in electricity duty for 10 years. There is Investment subsidy on SGST to solar energy equipment manufacturers- 90% of SGST due and deposited for 7 years.

Rajasthan Wind and Hybrid Energy Policy, 2019

Wind

  • Target to achieve 2 GW of wind power capacity by 2024-25 to fulfill renewable RPO of state DISCOMs. Another 2 GW of wind power projects are also planned for captive consumption/ third party sale within or outside Rajasthan.
  • For wind equipment manufacturers, there is 100% exemption in stamp duty. Land allotment will be at 50% concessional rate, full exemption in electricity duty for 10 years. There is Investment subsidy on SGST to solar energy equipment manufacturers- 90% of SGST due and deposited for 7 years.

Hybrid

  • Target to install 3.5 GW of hybrid projects by the financial year 2024-25, out of which hybridization of existing wind or solar projects will account for 200 MW, new wind-solar hybrid projects will account for 2 GW, wind-solar hybrid with storage systems will account for 500 MW, and hybridization of existing conventional projects will account for 800 MW.
  • The DISCOMs plans to procure power up to 5% of their RPO target from hybrid projects with storage systems at a tariff discovered through competitive bidding in addition to the RPO target.

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

  • All category of consumers are eligible for net metering arrangement under the new regulations.
  • Net metering arrangement shall be permitted by the Distribution Licensee on a non-discriminatory and Distribution Transformer-wise or feeder wise on ‘first come, first serve’ basis.
  • 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 not exceed 70% of its rated capacity.
  • Minimum size for net metering is 1 kW and maximum capacity shall not exceed the Sanctioned load (in kW) or the Contract Demand (in kVA) of the consumer.
  • The net credited units of electricity as at the end of each financial year shall be purchased by the DISCOM at the Generic Tariff approved by the Commission for that year.

Uttar Pradesh Electricity Regulatory Commission (terms and conditions for open access) Regulations, 2019

  • Open access will be permissible to the consumers seeking open access for a contracted demand of 1 MW and above and connected at 11 kV and above
  • Consumer category defined- Long-term open access customers (>5 years), medium-term open access customers (3 months-5 years) and short-term open access customers (less than 3 months)
  • A consumer partially surrendering the Open Access capacity will have to pay transmission and wheeling charges at applicable rates for the remaining period of their contract at pro-rata basis along with 25% of estimated transmission and wheeling charges on the surrendered capacity.
  • The consumers availing Open access facilities will have to pay the transmission & wheeling charges, cross-subsidy surcharge, Additional Surcharge, Standby charges (to the distribution companies), imbalance charges (if applicable) as described in the regulation and amended from time to time.
  • Payment Security deposit to be paid to the SLDC as per following criteria:
    • For transactions involving transmission facility only- INR 0.5 Lakh/MW/Month
    • For transactions involving both Transmission and Distribution facilities- INR 1.5 Lakh/MW/Month
    • For transactions involving only distribution facilities- INR 1.0 Lakh/MW/Month

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