Monthly RE update- June 2020

Monthly RE update- June 2020

monthly RE june 2020

Tenders

  • About 925 MW of renewable tenders are issued in June 2020, including 618 MW of utility scale solar tenders, 225 MW of wind-solar hybrid, 50 MW of floating solar tenders and 32 MW of rooftop solar tenders.
  • Auction is completed for SECI’s 2GW solar tender under ISTS Tranche-IX and 50 MW of rooftop solar tender.

New RFS Issued

Tender Name  TechnologyCapacity (MW)Other detailsBid submission date
REMCL, 400 MW, (EPC) Solar, June 2020Solar400EMD – Rs. 0.4 million / MW16-Sep-20  
Tata Power, 225 MW, Wind-Solar Hybrid, June 2020Wind Solar Hybrid225EMD – Rs. 0.5 million/MW/Project                    PBG – Rs. 1 million/MW/Project06-Jul-20  
WBSEDCL, 200 MW PV Solar, (EPC), West Bengal, June 2020Solar200
(Phase 1: 125 MW & Phase 2: 75 MW)
EMD – INR 46,00030-Jun-20  
NHPC, 50 MW, Floating solar (EPC), Kerala, June 2020Floating Solar50EMD – Rs. 30 million14-Aug-20  
HAREDA, 30 MW, Rooftop Solar, Haryana, June 2020Rooftop Solar (RESCO model)30EMD – Rs. 0.2 million/MW20-Jul-20  
SECI, 10 MW, Solar PV Project, Rajasthan, June 2020Solar10EMD – Rs. 0.45 million/MW/Project                    PBG – Rs. 1.8 million /MW/Project24-Jul-20  
MEDA, 4 MW, Solar, Maharashtra, June 2020 1. Akola 1.4 MW  2. Vasai-Virar 1 MW  3. 1.58 MW AmaravatiSolar4EMD –   1. Rs. 0.63 million         2. Rs. 0.45 million     
3. Rs. 0.711 million
29-Jun-20  
PEDA, 2 MW, Solar, Himachal Pradesh, June 2020Solar2EMD – Rs. 0.5 million/MW/Project                    PBG – Rs. 1 million/MW/Project30-Jun-20  
RSAMB, 1.6 MW, Rooftop Solar, (EPC) Rajasthan, June 2020Rooftop Solar1.6EMD – Rs. 2.06 million16-Jul-20  
MES, 1 MW, Solar projects with allied infra, Assam, June 2020Solar1EMD – Rs. 0.628 million PBG: 5% of the contract value  22-Jul-20  
NTPC, 800 kW, rooftop Solar, Bihar, June 2020Rooftop Solar0.8EMD – Rs. 0.5 million10-Jul-20

Source: JMK Research

Retendered/ Date extension

Tender NameTechnologyOther detailsBid submission date
SECI, 7500 MW, Solar, Jammu & Kashmir, December 2018SolarEMD – INR 0.6 million / MWBid submission date extended till 31 July 2020
SECI, Pan India, 5000 MW, Thermal + RE, Mar 2020 (RTC-II)Thermal + REEMD: INR 0.5 million/MW/Project             PBG: INR 1.0 million /MW/Project Bid submission date extended till 03 July 2020
SECI, 2500 MW, ISTS, Solar UMREPP, Karnataka (ISTS X), April 2020SolarEMD – INR 0.4 million /MW
PBG – INR 0.8 million /MW
Bid submission date extended from 29 June 2020 to 14 July 2020
SECI, Pan India, 2 GW, Wind, Tranche Tranche-IX, Mar 2020WindEMD: INR 0.6 million /MW/Project           PBG: INR 1.2 million /MW/ProjectBid submission date extended from 09 June 2020 to 09 July 2020
SECI, Pan India, 1200 MW, Hybrid, Tranche- III, BOO Basis, Jan 2020HybridEMD: INR 0.5 million / MW PBG: INR 1 million /MW/ProjectBid submission date extended till 06 July 2020
NTPC, 1,200 MW, Solar, Pan India, Feb 2020SolarEMD: INR 0.4 million /MW
 PBG: INR 0.8 million /MW
Bid submission date extended from 28 May 2020 to 15 July 2020
SECI, Telangana, 34 MW, SCCL Plant, Mar 2020Solar  EMD: INR 30.872 million PBG: 10% of the total Contract ValueBid submission date extended from 12 June 2020 to 26 June 2020
SECI, Telangana, 32 MW, SCCL Plant, Mar 2020SolarEMD: INR 20.956 million PBG: 10% of the total Contract ValueBid submission date extended from 15 June 2020 to 09 July 2020
CREDA, Chhattisgarh, 20 MW, Rooftop Solar, Mar 2020Rooftop solar (RESCO model) Bid submission date extended from 01 June 2020 to 01 July 2020
SECI, 15 MW, Telangana, SSCL, Floating Solar, Apr 2020Floating SolarEMD: INR 10.7 million PBG: 10% of the total Contract ValueBid submission date extended from 17 June 2020 to 10 July 2020
SECI, Leh & Cargil, 14 MW, Solar Power Plant with 42 MWH BESS, VGF, Jan 2020Solar with 42 MWH BESSEMD: INR 19.6 millionBid submission date extended from 30 June 2020 to 30 July 2020

Source: JMK Research

Result announced/ Bids submitted

Tender nameStatusCapacity tendered (MW)Capacity allotted / bid submitted (MW)Bidders/ winners details
REIL, 50 MW, Rooftop Solar, Rajasthan, October 2019Results announced5050Ashlyn (Parent company: Green Affiliates) Solar Infra Private Limited, Broil Solar Energy Limited, DD Project Services Private Limited, Suryam International Private Limited, and Synergy Engineers Group Private Limited
SECI, Pan India, 2,000 MW, SPV Project, ISTS-IX, Mar 2020Results announced20002000Solar Pack 300 MW (INR 2.36/kWh), ENEL 300 MW (INR 2.37/kWh), EDEN 300 MW (INR 2.37/kWh), IB Vogt 300 MW (INR 2.37/kWh), Amp Energy 100 MW (INR 2.37/kWh), Ayana 300 MW (INR 2.38/kWh), Renew Power 400 MW (2.38/kWh)

Source: JMK Research

Projects Commissioned

In May 2020, about 287.5 MW of new solar capacity and 62.4 MW of new wind capacity is added.
State-wise installations of Solar and wind projects during May 2020 – 349.9 MW.

Source: MNRE, JMK Research

monthly RE

Investments/ Deal

Renew Power acquires AI & ML start-up – Climate Connect

India’s largest renewable energy company, Renew Power have acquired Artificial Intelligence (AI) & Machine Learning (ML) start-up – Climate Connect knowledge solutions Pvt Ltd company by signing definitive agreement. The acquisition is expected to strengthen Renew Power’s ongoing digital and analytics initiative which aims to leverage its data to optimize decision making process across busines operations. This acquisition gives Renew Power access to energy management services. Renew Power plans to operate Climate Connect as an independent subsidiary that focus on building a global team, world class data integrity and software development processes as well as business development activities.

Renew Power looking to sell 300 MW of wind farms

Renew Power has finalized a deal to sell some of its wind farms in Karnataka. The wind farms will be sold as a single entity, which is expected to be 100% owned by Ayana Renewables for Rs. 1500 Crore. The negotiations are in final stage and would result in the transfer of around 300 MW of wind generation facilities for which supply agreements with state electricity boards are in place. This deal will help Renew Power to lower its debt and raise cash to clear its financial obligations.

Brookfield looking to acquire solar energy firm Emami Power

Canada based Alternative Investment giant Brookfield Asset Management Inc. has signed a deal to acquire Emami Power Ltd., a solar-power focused company of Emami group. As a part of divestment plan of non-core business assets, Emami Power has concluded the deal of selling solar power business with Brookfield Asset Management company. Thus, Brookfield tried to increase its presence in fast growing Indian renewable energy segment.

Hindustan Zinc looks to sell its wind energy assets

Vedanta Group company Hindustan Zinc looks to sell its wind energy assets worth Rs. 1500 Crore. The wind power plants are located in five states – Rajasthan, Gujarat, Maharashtra, Karnataka and Tamil Nadu. All the plants have power offtake agreements with state electricity boards in the respective states. The reason for selling these assets is described as selling of non-core assets which will come in handy to assist a delisting process announced by its parent company, Vedanta.

Tata Power looking to raise $500-700 million for its clean energy platform

Tata Power Renewable Energy Ltd, a wholly owned subsidiary of Tata Power has been looking to raise $500 – 700 million for its clean energy platform. Several approaches were made in this regard with several investors including KKR, Brookfield, Mubadala, Omers, German financial giant Allianz. Malaysian state oil and gas company Petronas is in active negotiations with Tata group to become key investor in Tata power’s planned renewable energy infrastructure investment trust.

Monthly import-export statistics

Monthly imports as well as exports in Q1 2020 (Jan-Mar) have fallen substantially by about 70% compared to previous quarter.

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Source: Ministry of Commerce, JMK Research

Global Price Trends

There is a 5% fall in module prices in June 2020 compared to previous month.

Source: EnergyTrend, JMK Research

Policy and Regulations

MNRE asks details from interested participants for conference related to RFP for Developing a Long-Term Vision, Implementation Plan, Road Map and Institutional Framework for implementing One Sun One World One Grid

  • MNRE with its order dated 15 June, 2020 asks details from firms interested in participating in pre-bid meeting related to proposal for Development of Long-Term Vision, Implementation Plan, Road Map and Institutional Framework for implementing ‘One Sun One World One Grid’.
  • The World Bank has extended $625 million concessional loan to SBI to debt finance grid connected roof top projects. Under this initiative technical assistant program called SUPRABHA has been started to accelerate deployment of grid connected solar rooftop projects. MNRE with its notice dated 27 May, 2020 has invited RFP from interested agencies for tender of developing a long-term vision, implementation plan, road map and institutional framework for implementing “One Sun One World One Grid” under this TA program.

MNRE created FDI cell for processing proposals of other countries

  • MNRE has created Foreign Direct Investment (FDI) cell within ministry for protecting opportunistic takeovers and acquisitions of Indian companies from neighbouring countries entities during ongoing pandemic situation.
  • Department for Promotion of Industry and Internal Trade (DPIIT) informed that as per revised policy any neighbouring country entity can invest only through government route, earlier it was allowed through automatic route.
  • This is an attempt by MNRE to curb Chinese investments which seeks strategic acquisition of stakes in key Indian companies.
  • The newly-formed FDI cell consists of Mr. Amitesh Kumar Sinha, Joint Secretary (Solar), MNRE (Nodal Officer) and Mr. Ruchin Gupta, Director, MNRE.

MNRE fast track Grievance Redressal process for Make in India renewable projects

  • MNRE assigns Nodal Officer, Mrs Sutapa Majumdar, Economic Advisor, MNRE for addressing all grievances of stakeholders with respect to its order on Preference to Make in India, 2017(PPP-MII, Order 2017) within 30 days from receipt of compliant.
  • Department of Industrial Policy and Promotion (DPIIT) in June, 2017 issued notification which mandates public procurement to promote Govt. Make in India policy. MNRE in line with this notification issued an order in Dec,2018 for promoting procurement of locally made products for all Govt. renewable energy projects.
  • Matters which are not resolved at MNRE level or by Standing Committee formed under PPP-MII Order, 2017 and are pending for more than 3 months, are given priority over others.

MNRE set up Project development cell to promote investments in Renewable sector

  • MNRE created Project development cell (PDC) as per Central government guidelines to promote investments in renewable sector in a more effective way.
  • Central government with its order has approved setting up of PDCs and an Empowered Group of Secretaries (EGoS) in Ministries/Departments of Government of India for attracting investments by developing investible projects in coordination with State Governments.
  • Department for Promotion of Industry and Internal Trade (DPIIT) will nominate representatives from Invest India to participate in PDCs.
  • PDCs are created with an objective to develop investible projects with all approvals, land availability and with complete Detailed Project Reports to attract investment by entities. EGoS are established to create robust Redressal framework for investments related issues.
  • The newly-formed PDC cell is created under supervision of Mr. Amitesh Kumar Sinha, Joint Secretary (Solar), MNRE. He will be assisted by Sh. Ruchin Gupta, Director, MNRE and other officers of the Grid Solar Power Division along with representatives of Invest India.

MNRE introduces new mode for development of Solar parks and Ultra Mega Solar power projects

  • MNRE modified scheme for development of Solar parks and Ultra Mega Solar power projects by adding new mode-8 named Ultra Mega Renewable Energy Power Parks (UMREPPs).
  • Earlier there were seven modes under aforementioned scheme. As per newly introduced model any central public sector undertaking (CPSU) unit, state PSUs, state government organizations, or their subsidiaries, can be the solar power park developer (SPPD). A joint venture between two or more entities can also act as the project developer.
  • According to new model State government will facilitate identification and acquisition of land for setting up of UMREPPs. The land will be allocated with condition that the development of project must be completed within two years.
  • Maximum return on equity allowed for UMREPPs is 16%. Through this measure MNRE intend to restrict profit making activities and will ultimately promote objective of aforementioned scheme.
  • A committee of concerned State government will be set up to facilitate setting up of UMREPP and for monitoring the progress of project implementation. The committee will fix one-time upfront charges & operation and maintenance charges to be charged from project developers.
  • Agency designated under this scheme by State government would be paid facilitation charges of Rs. 5 paise/unit of power generated from UMREPP projects.
  • SPPD will be entitled for compensation of 20 lakh/MW or 30% of UMREPPs internal infrastructure development cost whichever is less. If SPPD has trading licensee, then they may claim trading margin of Rs. 7 paise/unit for power traded from solar parks.
  • The projects under UMREPPs model will be developed either through tariff-based competitive bidding or under EPC model, or a combination of both. In case of bidding for the selection of renewable energy developers, the facilitation charge of Rs. 5 paise/unit and the trading margin of Rs. 7 paise/unit will be paid by the RE developers.

MNRE released Guidelines for installation of innovative standalone solar pumps

  • MNRE with its notice dated 22 June, 2020 has released guidelines for installation of innovative standalone solar pumps.
  • Earlier MNRE started KUSUM Scheme to promote installation of solar pumps in the country under Off-GRID and decentralized Solar PV Programme with the target to install 17.5 lakh standalone solar pumps by the year 2022.
  • As per these guidelines expression of interest may be invited from interested participants who are claiming better innovative solutions for solar pumps as compared to existing one.
  • An executive committee will be formed as per these guidelines to scrutinise various applications and upon recommendation by committee interested participants may be allowed for on field demonstration to State implementing agency.
  • On recommendation of executive committee MNRE may adopt innovative technology and update the specification after having detailed stakeholder’s consultation on the same.

MNRE issued order for benchmark costs for Off-grid Solar PV Systems for FY 2020-21

  • MNRE through its order dated 25 June, 2020 has determined benchmark costs for Solar PV systems applicable for FY 2020-21.
  • For Standalone Solar Pumps benchmark costs (Rs. per Pump) as determined are as follows: –

Pump Capacity

Pump Type

Benchmark Cost (Rs. per Pump)

General Category States/UTs

North Eastern States /Hill States & UTs / Island UTs

0.5 HP

AC/DC Surface

53,000

58,300

AC/DC Submersible

68,000

74,800

1 HP

AC/DC Surface

92,000

101,700

AC/DC Submersible

103,700

114,100

2 HP

AC/DC Surface

122,200

134,600

AC/DC Submersible

131,400

144,600

3 HP

AC/DC Surface

163,200

179,700

AC/DC Submersible

168,300

185,400

5 HP

AC/DC/Surface/ Submersible

236,500

260,500

7.5 HP

AC/DC/Surface/ Submersible

352,500

387,750

10 HP

AC/DC/Surface/ Submersible

445,000

445,000

  • For Solar lighting systems benchmark cost as determined are shown below: –

System

Benchmark Cost (Rs. per system)

General Category States/UTs

North Eastern States /Hill States & UTs / Island UTs

Solar Study Lamps*

395

437

Solar Street Lights# (with Li-ion batteries)

19,400

21,340

 

*Solar study lamp with 2.5 Wp solar panel, 1W LED luminaire and 3.2 V – 2000 mAh Li battery as per MRE specifications

#Solar street lights with 75 Wp solar panel, 12W LED luminaire and 12.8 V -30 Ah Li Battery as per MNRE specifications

  • For Standalone Solar panels plants/packs benchmark cost as determined are shown below: –

Capacity

Battery Backup (hrs)

Benchmark Cost (Rs. per Wp)

General Category States/UTs

North Eastern States /Hill States & UTs / Island UTs

Up to 10 kW

6

94

103

3

74

81

1

62

68

Above 10 Kw and up to 25 kW

6

84

92

3

66

72

1

55

60

  • MNRE further clarifies that for projects for which tender has been finalised as on date of issuance of this Order but Letter of Award (LoA) is yet to be placed, benchmark cost of FY 2019-20 will be applicable with condition that LoA will be signed by 15 July, 2020.
  • Benchmark costs as highlighted above are for projects installed as per MNRE specifications and the aforementioned cost will include total system cost, installation cost, commissioning, transportation, insurance, comprehensive maintenance charges for five years, online monitoring and application fees and taxes.

MNRE releases guidelines for bidding procedure for Solar wind hybrid projects

  • MNRE released guidelines for tariff based competitive bidding process for scheme for procurement of blended wind power from 2500 MW interstate transmission system (ISTS) connected projects.
  • Government of India sanctioned Scheme for Tariff Based Competitive Bidding Process for procurement of RE power from 2500 MW ISTS Connected Blended Wind Power Projects for procurement of power at a tariff discovered through transparent process of bidding through Solar Energy Corporation of India (SECI).
  • The main objective of aforementioned Scheme is to provide a framework for procurement of electricity from 2500 MW ISTS Grid Connected Wind Power Projects with up to 20% blending with Solar PV Power through a transparent process of bidding.
  • As per this scheme total capacity to be allotted is 2500 MW. Single bidder cannot bid for less than 50 MW under this scheme. The rated power capacity of wind power project shall be at least 80% of the total contracted capacity.
  • SECI will be the nodal agency and the selection process under this scheme will take place through e-bidding process followed by e-reverse action.
  • The power procured from these projects may be used to fulfil solar and non-Solar RPO.
  • SECI will act as intermediary procurer and shall enter into a Power Purchase Agreement (PPA) with the Blended Wind Power Generator(s) and also enter into a Power Sale Agreement (PSA) with the distribution licensee(s) or bulk consumers. The PSA shall contain the relevant provisions of the PPA on a back to back basis, except the payment obligations of the intermediary procurer under the PPA and PSA.
  • As per this scheme the duration of the PPA period should not be less than 25 years from the Scheduled Commissioning Date (SCD) or from the date of full commissioning of the projects, whichever is earlier.
  • SECI will charge a trading margin of Rs. 7 paise/kWh from the Buying entity / Procurer for purchase and sale of the blended power.
  • Nodal Agencies appointed by respective State Governments will provide necessary support to facilitate the required approvals and sanctions in a time bound manner so as to achieve commissioning of the projects within the scheduled timeline.
  • This scheme will promote large scale projects using wind and solar technologies for generation and will strengthen government objective of promoting green energy.

MNRE approves time extension for RE project considering COVID-19 aftereffects

  • MNRE with its notice dated 30 June, 2020 has approved time extension for Renewable projects considering disruptions in supply chain due to unpreceded COVID-19 aftereffects.
  • This relief of MNRE will help in curbing the difficulties faced by renewable project developers due to pandemic.
  • As per this notification MNRE has granted 95 days (Lockdown period plus 30 days) time extension for various projects designated by RE Implementing agencies and for projects which comes under various schemes of MNRE.
  • RE Developers may pass on benefits gained by such time extension down the value chain to other stakeholders like Engineering Procurement Construction (EPC) contractors, material equipment suppliers, Original Equipment Manufacturers (OEMs), etc.
  • As per Ministry of Home affairs orders dated 15th April, 17th April & 30 May, 2020 the period of lockdown is treated from 25th March, 2020 to 31st May, 2020.

CERC issues order for determination of forbearance and floor price under REC framework  

  • CERC with its order dated 17 June, 2020 determines forbearance and floor price for the Renewable Energy Certificate, REC framework.
  • Earlier with its suo-moto order dated 30 March, 2017 the Commission has determined forbearance and floor price for REC which was applicable from 1 April, 2017 onwards as shown below: –
PriceSolar REC (Rs./ MWh)Non-Solar REC (Rs./MWh)
Forbearance Price2,4003,000
Floor Price1,0001,000
  • CERC with its suo-moto order has approved REC price which will be applicable from 1 July, 2020 to 30 June, 2021 which are as shown below: –
PriceSolar REC (Rs./ MWh)Non-Solar REC (Rs./MWh)
Forbearance Price1,0001,000
Floor Price00
  • CERC has reduced REC prices vis-à-vis earlier applicable REC prices considering market conditions and demand & supply economics.

CERC issues Tariff Regulations for renewable energy sources

  • CERC with its notification dated 23 June, 2020 had issued regulations for determination of Tariff for renewable energy sources which are valid from 1 July, 2020 to 31 March, 2023.
  • CERC under this regulation will determine generic Tariff for below technologies: –
    • Small hydro projects
    • Biomass power project with Rankine cycle technology
    • Non- fossil fuel based co-generation projects
    • Biomass gasifier based power projects and
    • Biomass based power projects

And will determine Project specific Tariff for on case to case basis for following technologies:

  • Solar PV power projects, floating solar projects and solar thermal power projects.
    • Wind power projects (both on-shore and off-shore)
    • Biomass based power projects and biogas based power projects with condition, if project developer opts for project specific tariff
    • Municipal solid waste based projects and refuse derived fuel based projects
    • Renewable hybrid energy projects
    • Renewable energy with storage projects
    • Any other project based on new renewable energy sources or technologies approved by MNRE.
  • As per aforementioned regulations Tariff for renewable energy sources will consist of return on equity, Interest on loan, Depreciation, Interest on Working Capital & Operation & Maintenance expenses.
  • This regulations states that generic Tariff will be determined on levelized basis considering year of commissioning of the project for Tariff period of project. It is also stated that if renewable energy projects are having single part Tariff with two components, fixed cost component shall be determined on levelized basis considering the year of commissioning of the project while fuel cost component shall be determined on the year of operation basis in the Tariff order as issued by the Commission.
  • As per these Regulations for the purpose of levelized tariff computation, discount factor equivalent to post-tax weighted average cost of capital shall be determined.
  • In case of Non-payment of bill beyond 45 days from date of presentation of bill, beneficiary is liable to pay late payment surcharge of 1.50% per month.
  • This regulations states that minimum capacity utilisation factor considered for solar PV project is 21% and for floating solar it is considered as 19%. The Commission will approve capacity utilisation factor for project specific tariff.
  • In case of Solar thermal technology minimum capacity utilisation factor considered will be 23% as per these regulations.

SECI invited stakeholders for meeting to discuss possible options to achieve firm & flexible RE projects with high PLF

  • SECI with its notice dated 12 June, 2020 has invited concept paper and meeting with various stakeholders to understand the possible ways to achieve trinity of flexibility, firmness and high Plant Load Factor (PLF) for renewable projects.
  • Renewable sources of energy are becoming mainstream sources of electricity and they are expected to grow up to 450 GW by 2030 considering current trend of capacity addition.
  • As per SECI currently typical PLF of renewable energy (RE) projects are ranging from 20-25% for solar, 30-38% for wind and 40-45% for solar-wind hybrid projects.
  • Increasing renewable energy power will lead to impediments, high fluctuations in intra-day generation, unbalancing of GRID due to its infirm nature.
  • In today’s scenario load is very dynamic in nature and to combat the same high flexibility is required on generation side.
  • SECI pointed out that one of possible solution for three requirements of achieving high PLF, flexibility for RE generation and firmness of RE power may be promotion and development of solar-wind hybrid projects with energy storage. These projects have potential of supplying firm power for 12-13 hours in a day with PLF greater than 60% and the stored energy may be used to meet peak demand of utilities.
  • SECI invited various stakeholders to discuss possible solutions for aforementioned three issues.

Karnataka allows carry forward of banked energy considering COVID-19 aftereffects

  • KERC issued Order on 25 June, 2020 which gives relief to Renewable energy developers addressing their concerns about non-utilisation of banked energy due to pandemic effect.
  • As per this Order Mini hydel projects will be allowed to carry forward banked energy remaining unutilised as on 31 March, 2020 up to 31 July, 2020, considering their water year starts from 1 June and end on 31 May of any year which ultimately impact their two months of operation.
  • For Solar & Wind power projects roll over of banked energy is not allowed as only 7 days of their operation got impacted due to corona, considering their financial year for banked energy starts from 1 April and ends on 31st March of any year.

Andhra Pradesh Govt. issues guidelines for 10 GW solar projects for farmers

  • The government of Andhra Pradesh has issued an order with guidelines for implementing 10 GW solar power project programme for farmers in the state.
  • The programme objective is to provide nine hours of free power during the day to farmers without increasing financial burden on the state’s distribution companies (DISCOMs).
  • The Andhra Pradesh Green Energy Corporation (APGECL), a 100 percent subsidiary of the Andhra Pradesh Power Generation Company (APGENCO), will be the executing agency for setting up the 10 GW solar project in a phased manner and for connecting it to the grid. The APGECL will procure the power through competitive bidding and monitor the projects.
  • The Andhra Pradesh Electricity Regulatory Commission (APERC) has been determining agricultural subsidy on the average cost of supply model, which has three components, namely average power purchase cost, average transmission cost, and average distribution cost.
  • Andhra Government has proposed to replace the average power purchase cost with solar power and provide nine hours of free power during the day to farmers.
  • Decentralised solar power from 132 kV and 220 kV substations wherever feasible will be procured by APGECL and it will also participate in venture gap funding-based bidding up to 2.5 GW under the Central Public Sector Undertaking Program Phase-II.
  • APGECL will also be the nodal agency for developing solar parks under the Ultra Mega Solar Power Projects Program and the Ultra Mega Renewable Energy Power Park Program, as per the state’s guidelines.
  • APGECL will procure solar power under build operate transfer (BOT) mode from developers for a period of 30 years. A flat tariff discovered through competitive bidding will be applicable for the first 15 years. Also, prefixed operation and maintenance (O&M) charges will be paid from the 16th year onwards and will escalate four percent every year till the 30th year.
  • At the end of the useful life of the solar project, it will be transferred to APGECL to reduce overall tax implications.
  • The finance department will pay for charges incurred during the land acquisition process. The Andhra government will pay monthly energy charges to solar power developers through APGECL. A fixed tariff will be applicable for first 15 years, and O&M charges will start post that.
  • The land will be made available on lease to developers for setting up the solar projects in a mix of government and assigned lands. APGECL, district magistrates, and collectors are expected to survey these lands, prepare all the required records, and conduct gramsabhas.
  • The assigned and private lands will be leased to APGECL at a rate of Rs 25,000 per acre annually. APGECL can then lease these lands for Rs 31,000 per acre annually to solar power developers. In case of government-owned lands, it will transfer the entire lease rental amount to the state government or based on the state’s decision.
  • APTRANSCO will be responsible for setting up external power evacuation infrastructure, including transmission lines and substations. It has also directed the state transmission company to use its own finance for setting up and strengthening the power evacuation infrastructure and allowed to recover costs through the aggregate revenue requirement of its transmission business.
  • The state government also directed APTRANSCO to set up required infrastructure within one kilometre of the solar park.

Chhattisgarh, CREDA to empanel installers of Rooftop systems

  • The Chhattisgarh State Renewable Energy Development Agency (CREDA) has issued a tender to empanel rooftop solar installers and the deadline for the submission of bids is July 1, 2020, while the date for the opening of the financial bid has been scheduled for July 8, 2020.
  • As per aforementioned tender grid-connected rooftop solar projects ranging between 1 kW to 500 kW will be set up at various locations in the state with validity of contract for five years under the capital expenditure (CAPEX) model. This solar project development will be covered under the second phase of the Ministry of New and Renewable Energy’s (MNRE) rooftop solar program.
  • Interested bidders need to submit a sum of Rs. 200,000 as the earnest money deposit (EMD). Rs. 500,000 as performance security for this tender. All successful bidders also have to deposit service charge @ Rs. 2 /watt of the capacity allocated by CREDA.
  • Interested bidders can quote a separate rate for each capacity ranging between categories of 1 kW to 10 kW, 10 kW to 100 kW, and 100 kW to 500 kW.  The successful bidders can execute the projects for which the sites can be identified by the prosumers or on the sites allocated by CREDA.
  • Consumers will be allowed to benefit from the net metering mechanism. The solar modules will be warranted for 25 years, while the rooftop solar systems would be warranted by the empanelled vendor for 5 years from the date of commissioning of the project.
  • Apart from the supply and installation of the rooftop solar systems, the scope of work would also include operation and maintenance services for five years.
  • The declared annual CUF should not be less than 15%. Also, the successful bidder should maintain generation so as to achieve the annual CUF of at least 15% for 25 years. Tender notice further adds that the bidder will be liable to compensate for any shortfall in the generation. This will, however, be relaxed in case of non-availability of grid or load.
  • Central finance assistance (CFA) of up to 40% will be given for systems up to 3 kW, whereas, for projects above 3 kW capacity and up to 10 kW, a CFA of 40% would be applicable for the first 3 kW, and 20% for the rest.
  • No CFA will be provided for capacity beyond 10 kW.  A CFA of 20% will be given for group housing societies and residential welfare associations for the installation of a rooftop system up to 500 kW. However, it will be limited to 10 kW per house.
  • It has been specifically mentioned in the document that only indigenously manufactured solar PV panels (both cells and modules) should be used for the projects for availing the subsidies.
  • To take part in the bidding process for category 1 (for 1 kW-10 kW), the prospective bidder should have satisfactorily completed a 1 kW project in each year during the last three financial years. Or, they should have completed two projects of 10 kW in the last three years or a cumulative capacity of 100 kW in the last three FYs.
  • Similarly, for category 2 (between 10 kW to 100 kW), the bidder should have installed at least 10 kW capacity in each year during the last three financial years. Or, should have completed a project having a capacity of 50 kW in the last three years or installed at least 500 KW cumulative capacity.
  • Whereas in category 3 (100 kW to 500 kW), the interested bidder should have completed at least 50 kW of projects in each of the last three FYs, one project of 100 kW, or a cumulative capacity of 1 MW.
  • Regarding the financial criteria, for a project ranging between 1 kW to 10 kW, the minimum average annual turnover in the last three FYs should be Rs. 5 million Similarly, for projects ranging between 10 kW-100 KW, the annual turnover should be Rs. 7 million.
  • Lastly, for the highest category of up to 500 kW, the minimum average annual turnover should be Rs. 10 million.

UERC allows COD time extension for Solar PV projects considering COVID impact

  • UERC with its order dated 23 June, 2020 has considered request of Solar project developers for extension of commissioning date of projects due to pandemic impact.
  • The Commission in this Order ruled that Solar PV developers selected through the competitive bidding for setting up of solar PV plants having cumulative capacity of 200 MW and the Solar PV plant developers who have been allowed to execute PPA with UPCL with zero CFA are required to commission their projects by the end of March, 2021 to get the Tariff as determined through competitive bidding or as mentioned in their respective PPA, as the case may be.
  • UPCL also stated that in case of any delay beyond March 31, 2021 in the commissioning of the projects, lower of the tariff determined by the Commission for the year of commissioning of such plants or worked out through competitive bidding/tariff in PPA shall be applicable

UERC determines additional surcharge for open access consumers

  • UERC with its order dated 19 June, 2020 has determined additional surcharge of Rs. 1.11/Unit for open access consumers to be effective from 1 April, 2020 to 31 September, 2020.
  • As per DISCOM submission total stranded power due to open access consumers at State periphery is 143.77 Mus and at consumer end is 121.51 Mus. And total cost of stranded power due to open access consumers is Rs. 13.50 Crore.

MSERC extended applicability of MYT Regulations by 3 years

  • MSERC has earlier notified MSERC (Terms and Conditions of Multi Year Tariff) Regulations, 2014 on 15 September, 2014.
  • MSERC extended applicability of aforementioned Regulations by 3 years i.e. up to 31 March, 2024.

PSERC slashes power tariff, by giving 10% relief to households, fixed charges remain same for industrial consumers

Punjab State Electricity Regulatory Commission (PSERC) issued Tariff Orders for PSPCL & PSTCL for FY 2020-21 vide its order dated 1st June, 2020. With this Tariff Order the Commission has determined tariff/charges applicable for FY 2020-21. Salient features of Order as follows: –

  • The Commission determines consolidated revenue gap (deficit) of Rs. 224.83 Crore considering DISCOM previous years’ capital expenditure which is required to be recovered in remaining 10 months of FY 2020-21.
  • Due to ongoing pandemic effect DISCOM projected power sale on lower side in the state which resulted in this aforementioned revenue gap.
  • As per PSERC Order the new tariff will be applicable from 1 June,2020 to 31March,2021, with the previous year’s tariff being effective up to 31May,2020.
  • The per unit tariff for domestic consumers with load up to 50 kW & for consumption slabs of 0 to 100 units and 101 to 300 units have been reduced by 10% and 4% respectively.
  • For tariff for small shopkeepers of load up to 7 Kw, no increase in tariff approved by PSERC.
  • For small, medium and large industrial consumers, no increase in fixed part of the tariff approved by PSERC.
  • The Tariff for Agriculture Pump set (AP) category has been increased from Rs. 5.28/kWh to Rs. 5.57/kWh with this the cross subsidy of AP category has been reduced from (-) 17.82% to (-) 14.41%.
  • PSERC accepted PSPCL’s proposal to merge consumption slabs of 301-500 units and above 500 units for domestic supply (DS) subcategories for consumers above 2kW also.
  • PSERC continues with its policy of encouraging the industry in promoting the productive use of surplus power by offering lower energy rate @Rs. 4.83/kVAh for power consumption exceeding allowed threshold limit.
  • PSERC with this order removed disparity between consumers availing power supply at higher voltage and consumers getting power supply at lower voltage by excluding voltage rebate from the ambit of capping of energy charges.
  • PSERC with this Order promoted the consumption of power during off-peak hours by allowing special night tariff @ 50% Fixed Charges and Energy Charge of Rs. 4.83/kVAh for large supply (LS) and medium supply (MS) industrial consumers.
  • The facility of special tariff @5.37/kVAh for small power industrial consumers with load up to 20 kVA has been extended in this order by PSERC.
  • Considering industrial consumer’s suggestions PSERC allowed the facility for use of electricity during the extended 4 hours of 06:00 AM to 10:00 AM for night category consumers at normal tariff @4.83/kVAh for FY 2020-21.

As per PSERC transmission Order

  • SLDC operation charges for long term and medium-term open access customers has been reduced by 30% for remaining 10 months of FY 2020-21.
  • Composite SLDC operating charges to be paid by short term open access customers for each transaction is Rs. 2000 per day or part of day.
  • Transmission charges for long term and medium-term open access customers from April 2020 to May 2020 is Rs. 91121 /MW/Month and from June 2020 to March 2021 is Rs. 91963 /MW/Month.
  • Transmission charges for short term open access customers from April 2020 to May 2020 is Rs. 230.39/MW and from June 2020 to March 2021 is Rs. 252.16/MW.

New Tariff Schedule as per PSERC Order for FY 2020-21 is shown as below

HPERC proposes no hike in Power Tariff for Himachal Pradesh

  • HPERC with its order dated 6 June, 2020 has determined Tariff for FY 2020-21, True up of FY 2017-18 and Annual Performance Review of 4rth control period (FY 2019-20 to FY 2023-24).
  • HPERC approved no increase in Tariff for various categories of consumers considering ongoing pandemic crisis effects on society.
  • In this Order the Commission recognised that consumer staying on rent or as paying guest belong to same nature of supply.  Now residential paying guests consumers included under the Domestic Supply Tariff which was earlier in Commercial Supply Tariff.
  • The Govt. of Himachal Pradesh has made a provision of Rs. 480 Cr. in the financial budget for 2020-21, for providing rollback subsidy to electricity consumers of domestic and agriculture categories during the year.
  • As per this Order subsidized tariff for domestic consumers with consumption up to 60 units is Rs. 1/unit only. And for other domestic category consumers tariff charges ranges from Rs. 1.55/unit to Rs. 2.95/unit as per their consumption per month.
  • As per this Order for agricultural consumers under Irrigation and Drinking Water Pumping Supply (IDWPS) category, the energy charges applicable will be Rs 0.50 per kWh with contract demand up to 20 kVA. These revised energy charges on the account of Government subsidy would only be applicable to agricultural and allied activities, and which are paid for by individual’s/ user groups but shall not be applicable for government supply.
  • HPERC also stated that if in case the State Government fails to pay subsidy on time, interest on such outstanding amounts shall be recoverable by the DISCOM.
  • HPERC approved that the wheeling charges payable by the SHPs up to 25 MW shall be comparable to the wheeling charges for the Extra High Voltage (EHV) category of open access consumers for FY 2020-21 i.e. 26 paise/unit.
  • Embedded consumers availing short term open access shall have to pay wheeling charges @50% in addition to demand charges to DISCOM.
  • HPERC with this order reduced applicable additional charges from 61 paise/unit to 60 paise/unit as applicable for FY 2020-21.
  • In this Order HPERC has given relief to new industrial consumers and existing industrial consumers who have expanded in the FY 2018-19 onwards by reducing applicable energy charges by 10% for a period of three years. If such expansion undertaken during 1 July,2019 to 31 May, 2020, the applicable energy charges shall be 15% lower.
  • HPERC reduced late payment surcharge from 2% to 1.5% per month as applicable on outstanding amount excluding electricity duty/taxes.

Tariff schedule for FY 2020-21 as per HPERC Tariff order is as shown below:

HERC approved no hike in Tariff in Haryana

  • HERC issued order in the matter for determination of True- up for the FY 2018-19, annual (mid-year) performance review for the FY 2019-20, aggregate revenue requirement of Uttar Haryana Bijli Vitaran Nigam (UHBVNL) and Dakshin Haryana Bijli Vitaran Nigam (DHBVNL) for the MYT control period from FY 2020-21 to FY 2024-2025 and distribution & retail supply tariff for the FY 2020-21.
  • As per this Order the provision of concessional tariff will be continued for domestic consumers who are having consumption up to 150 units per month for FY 2020-21. This will give relief of about 55 lakhs to domestic consumers of Haryana.
  • HERC approves relief of 42 paise/unit for domestic consumers with consumption up to 500 units per month. This will result in total benefit of Rs. 465.40 Crore for this consumer categories.
  • HERC further stated that loss of revenue of DISCOM because of this relief will need to be bridged by way of Subsidy to be provided by the State Government in advance at the beginning of each quarter of the financial year in line with Section 65 of the Electricity Act, 2003.
  • HERC approved reduced Tariff of Rs. 4.75/unit for Agro Industries with load up to 20 kW which was earlier of Rs. 7.05/unit. This will result in total benefit of Rs.42.5 Crore for this consumer category.
  • Keeping in mind the uncertainties arising out of COVID-19 and its result on various categories of consumers, HERC approved no tariff hike for other consumer categories for FY 2020-21.
  • HERC in this order has waived off DISCOM solar and non-solar renewable purchase obligation (RPO) backlog of 1850 million units and 905 million units up to FY 2018-19 considering Haryana Power Purchase Center (HPPC) submissions regarding its inability to comply with the same due to various reasons.
  • If this RPO backlog would have considered, then it will result in passing of Rs. 11 billion on consumers which HERC has not approved to combat unprecedented COVID-19 crisis effects.
  • DISCOM in its submission sought for restrictions on open access facilities during off-peak hours by imposing increased additional surcharge.
  • As per DISCOM, industrial consumers are opting for open access facility which results in high variance in peak and off-peak loads. This will ultimately increase burden on end consumer due to high deviation settlement mechanism (DSM) penalties in form of additional surcharge.
  • Considering DISCOM submissions, HERC approved increase in additional surcharge on open access consumers to Rs. 1.15/unit for 2nd half of FY 2019-20 which was earlier approved as Rs. 0.44/unit. Further HERC stated that they will address this issue separately in future.
  • HERC directed DISCOM to fully solarize one city of Haryana as per Prime Minister recommendation in coordination with Haryana Renewable Energy Development Agency (HREDA).

New Tariff Schedule as per HERC Tariff order for FY 2020-21 is as follows:

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