Monthly RE update – April 2021

Monthly RE update – April 2021

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Tenders

  • About 5724 MW of renewable tenders were issued in April 2021. NTPC alone has issued 2800 MW of tenders this month, including 2200 MW solar tenders and 600 MW Wind-Solar hybrid tender.
  • SECI has issued 1200 MW of Wind-Solar hybrid tender under project development in Pan India. Another significant tender was floated by MSEDCL with 1300 MW capacity under Mukhyamantri Saur Krishi Vahini Yojana in Maharashtra.

Details of new tenders issued in April 2021

Source: JMK Research

New RFS Issued

Tender Name

Technology

Tender Scope

Capacity (MW)

Other Details

Minimum CUF

Commissioning timeline from PPA signing

Bid Submission Date

MSEDCL, 1300 MW, Solar, Maharashtra, Apr 2021 (under “Mukhyamantri Saur Krishi Vahini Yojana”)

Utility Scale Solar

Project Development

1300

EMD – INR 0.1 million/MW

PBG – INR 0.5 million/MW

Ceiling tariff – INR 3.05/kWh

19%

17th-May-2021

SECI, 1200 MW, Wind- Solar Hybrid Tranche IV, Pan India, Apr 2021

Utility Scale Solar

Project Development

1200

PBG – INR 1 million/MW

30%

18 months

28th-May-2021

NTPC, 1200 MW, Solar, Rajasthan, Apr 2021

Utility Scale Solar

EPC with land package

1200

21st-May-2021

NTPC, 1000 MW, Solar, Pan India, Apr 2021

Utility Scale Solar

Project Development

1000

27th-May-2021

NTPC, 600 MW, Wind-Solar Hybrid, Pan India, Apr 2021

Utility Scale Solar

EPC

600

31st-May-2021

GSECL, 200 MW, Solar, Gujarat, Apr 2021

Utility Scale Solar

EPC

200

EMD – INR 82 million PBG – 10% of the EPC contract price

15 months

20th-Apr-2021

GSECL, 112 MW, Solar, Gujarat, Apr 2021

Utility Scale Solar

EPC

112

EMD – INR 0.4 million/MW

PBG – 10% of the EPC contract price

25%

12 months

27th-Apr-2021

MPUVNL, 41 MW, Rooftop Solar, Madhya Pradesh, Apr 2021

Rooftop Solar

RESCO

41

PBG – INR 1.9 million

17%

5th-May-2021

JBVNL, 25 MW, Rooftop Solar, Jharkhand, Apr 2021

Rooftop Solar

RESCO

25

EMD – 0.2 million/MW

Ceiling tariff – INR 4.16/kWh

15%

12th-May-2021

Coal India, 20 MW, Solar PV, Jharkhand, Apr 2021

Utility Scale Solar

EPC

20

PBG – 10% of the contract value

23%

9 months

29th-Apr-2021

ONGC, 15 MW, Solar, Gujarat, Apr 2021

Utility Scale Solar

EPC

15

8 months

17th-May-2021

REIL, 8 MW, Rooftop Solar, Rajasthan, Apr 2021

Rooftop Solar

8

PBG – 3% amount of the contract value

10th-May-2021

MEDA, 1.28 MW, Rooftop Solar, Maharashtra, Apr 2021

Rooftop Solar

1.28

EMD – INR 0.517 million

PBG – 3% of the contract value

4 months

5th-May-2021

NVVN, 1 MW, Rooftop Solar, Rajasthan, Apr 2021

Rooftop Solar

1

PBG – 3% of the contract price

26th-Apr-2021

TNEB, 1 MW, Solar with 3 MWh BESS, Tamil Nadu, Apr 2021

Small Scale Solar (Solar + BESS)

EPC

1

EMD – INR 0.1 million

20%

10 months

21st-Apr-2021

PBG: Performance Bank guarantee
EMD: Earnest Money Deposit
Source: JMK Research

Date extension

Tender Name

Technology

Tender Scope

Capacity (MW)

Other Details

Minimum CUF

Commissioning timeline

Bid Submission Date

SECI, Pan India, 2500 MW, Thermal + RE, Mar 2020

Utility Scale Solar

Project Development

2500

EMD – INR 0.5 million/MW

PBG – INR 0.1 million/MW

30 months

31st-May-2021

SECI, 1785 MW Solar, Rajasthan, Mar 2021

Utility Scale Solar

Project Development

1785

Performance Bank Guarantee – INR 0.8 million

17%

18 months

21st-May-2021

UPNEDA, 75 MW, Solar PV, Uttar Pradesh, Mar 2021

Utility Scale Solar

Project Development

75

Performance Bank Guarantee – INR 1.05 million

Ceiling tariff – INR 3/kWh

17%

15 months

27th-Apr-2021

SECI, 50 MW, Solar PV and Agro PV , Tamil Nadu, Jan 2021

Solar and Agro PV

Project Development

50

18 months

5th-May-2021

SECI, 15 MW, Floating Solar, Himachal Pradesh, July 2020

Floating Solar

Project Development

1.5

EMD – INR 13.5 million PBG – INR 27 million

21%

18 months

17th-Jun-2021

Source: JMK Research

Renewable update july 2020

Installed Capacity

In March 2021, a combined total of 1459.56 MW of solar and wind energy capacity was added, taking the cumulative RE capacity to 94.43 GW.  According to MNRE, as of March 31st, 2020, projects totalling 49.7 GW of capacity were at various stages of implementation while another 25.91 GW of projects were under various stages of bidding.

State-wise installations in Solar and Wind during March 2021 – 1459.56 MW

Source: CERC, JMK Research

Recently Commissioned Projects

Project Developer Name

Technology

Capacity (MW)

State

Date of Commissioning

NTPC

Solar

70

Uttar Pradesh

Apr 2021

NTPC

Floating Solar

5

Andhra Pradesh

Apr 2021

Rajasthan Renewable Energy Corporation Ltd

Solar (KUSUM scheme)

1

Rajasthan

Apr 2021

Renew Power

Solar

110

Rajasthan

Apr 2021

Adani

Solar

50

Uttar Pradesh

Apr 2021

Alfanar

Wind

300

Gujarat

Apr 2021

Renew Power

Solar

105

Gujarat

Apr 2021

NTPC

Solar

15

Uttar Pradesh

Apr 2021

Proctor and Gamble

Solar (Captive use)

1

Telangana

Apr 2021

Source: Industry news articles, JMK Research

Tata Power to develop 60 MW solar project for Gujarat Urja Vikas Nigam

Tata Power has announced that it is set to develop a 60 MW solar power project in Gujarat and has received a Letter of Award from Gujarat Urja Vikas Nigam Limited (GUVNL) for the same. They have won this capacity in a GUVNL bid in January this year. After this win the capacity under development in Gujarat will be 580 MW. 

Facebook announces first deal to buy renewable energy in India

Facebook has announced a deal with Mumbai-based clean energy firm CleanMax for a 32 MW wind power project in Karnataka. This partnership with CleanMax will enable new solar and wind power to be generated in the near future, contributing to the decarbonization of the Indian electrical grid. About half of the project capacity has already been commissioned and is generating power. Facebook has also announced that the company has reached its 100% renewable energy and net zero-emission goals for its global operations. 

monthly RE
Waaree_Banner-1

Investments/ Deals

Company Name

Deal Type

Sector

Asset Acquired

Investor

Deal Value

Other details

Renew Power

Green Bond

Renewable

$ 585 million

NTPC

Bond

Power

$ 535 million

The bonds will be issued at a coupon of 6.87% per annum with a maturity of 15 years 1 day on 21 April 2036.

The funds will be used in funding of capital expenditure, refinancing of existing loans.

Azure Power

Acquisition

Rooftop Solar

152.5

Radiance Renewables

$ 73.5 million

Fourth Partner Energy

Equity

Solar

CDC Group

$ 33.44 million

Renew Power 

Airtouch Solar

Freyr Energy

Equity

Rooftop Solar

Total Carbon Neutrality Ventures, Schneider Electric Energy Access Asia and C4D Partners

$ 2.3 million

Waaree Energy Storage System

Equity

Energy Storage

HNI

$ 2 million

Sterling and Wilson

Acquisition

Rooftop Solar

7.2

Amplus Solar

Source: JMK Research

Renew Power to invest $9 billion in wind and solar projects 

Renew Power plans to invest $9 billion in wind and solar projects by 2025 amid a government-backed effort to reduce emissions. The company, backed by investors such as Goldman Sachs Group Inc. and Canada Pension Plan Investment Board, aims to more than triple its renewable power capacity to 18.5 gigawatts by 2025. 

Green Climate Fund Approves USD 137 Million FMO Investment in India

Dutch development bank FMO will invest $ 137 million in India through Green Growth Equity Fund. 

The funds will be used in energy value chain, water, waste, and transport sectors that promote low carbon and climate-resilient initiatives in line with India’s climate objectives and Sustainable Development Goals. 

Tatas call off renewable power deal with Petronas

The Tatas have terminated their near $2 billion investment deal with Malaysian state owned oil and gas company Petroliam Nasional Bhd (Petronas).

NTPC Renewable Energy to raise Rs. 2,100 crore through term loan

NTPC Renewable Energy is raising a term loan of Rs 2,100 crore and will tie-up working capital facility of Rs 700 crore to finance projects. The company has already received equity of Rs 300 crore from the total committed equity of Rs 4,000 crore from the parent company NTPC. The company would make new capacity addition would take place in the renewables segment, with a majority of additions in the solar and wind arenas. 

Mahindra Solarize Private Limited is incorporated as a wholly-owned subsidiary of Mahindra Susten Private (MSPL)

Mahindra Solarize Private Limited is incorporated as a wholly-owned subsidiary of Mahindra Susten Private (MSPL), to undertake the business for distributed energy, including rooftop solar installation for the commercial, industrial, institutional and residential segment, solar water pump, and other renewable energy industry-based products, including engineering procurement & construction (EPC). 

MSPL is a wholly-owned subsidiary of Mahindra Holdings Limited, which in turn is a subsidiary of Mahindra & Mahindra. 

IFC proposes $50mn debt finance for Thar Surya solar power project

IFC plans to debt finance the construction of Thar Surya 1 Pvt Ltd.’s 300 MW solar power project in Bikaner, Rajasthan by $50 million. Apart from lending $50 million, IFC will also mobilise $100 million debt through parallel lenders. According to IFC, the total solar power project cost is estimated at $200 million.

Macquarie looks to sell 450 MW solar assets for $300 million

Macquarie Infrastructure and Real Assets (MIRA), one of the largest foreign infrastructure investors in India, plans to sell around 450 MW of solar power projects for an estimated equity value of around $300 million. Approximately 330 MW of these operational solar assets were acquired from Hindustan Power projects Pvt Ltd. 

Thermax Group has partnered with Power Roll to develop India’s solar film market.

Through the collaboration, the companies will assess the market potential to scale manufacturing and deployment of Power Roll’s solar films. The joint activity will include identifying applications for lightweight solar film and green energy solutions for the region. A successful conclusion to the agreement will see Thermax license Power Roll’s technology for commercial manufacture and sale of solar films in India. 

ReNew Power to employ Israeli bots for solar panel cleaning

Israeli firm Airtouch Solar has announced it has landed a $7.6 million deal with Indian developer Renew Power to supply and deploy its water-free cleaning robots for solar panels. AirTouch’s water-free robotic cleaning systems will be deployed for three of ReNew Power‘s new solar PV plants in Rajasthan, India, which are scheduled to be commissioned by early 2022.

Exports – Imports trend

Source: Ministry of Commerce, JMK Research

Prices of global multi crystalline modules, mono PERC modules and mono PERC module (India) have increased by 9.8%, 1.5% and 6% respectively in April 2021. Compared to previous year, on a YoY basis, prices of global multi crystalline modules have increased by 1% whereas mono PERC modules prices have declined by 2%. 

Solar modules price trends

Source: PVInfoLink, JMK Research

Monthly SECI Payments

The Solar Energy Corporation of India Limited (SECI) paid nearly INR 4.08 billion to developers for the purchase of solar and wind power in February 2021. Compared to January 2021, the payment disbursal has decreased by ~4% in February 2021.

Monthly payments by SECI to solar and wind developers

Source: SECI, JMK Research

Monthly RE Generation

The share of RE in the energy generation mix of India was 11,932.77 GWh during March 2021. Considering the generation from RES (Renewable Energy Sources) for the last month, solar constitutes the majority share of 50%, followed by wind at 26% and other RES (including Biomass) at 23%. Compared to February 2021, the RE generation has increased by ~8% in March 2021.

Source-wise Renewable Energy Generation (GWh) – India

Source: CEA, JMK Research

Policies and Regulations

Central

MNRE Clarifies No Commissioning Date Extension Beyond Six Months for Renewable Energy Projects

  • MNRE with its notification dated 30 March 2021 has clarified that the extension provided by implementing agencies on account of the Covid-19 pandemic should in no case be more than six months, including the five-month blanket extension given earlier. 
  • MNRE stated that if the implementing agencies feel the need for an extension beyond six months, they should make a reference for consideration of MNRE with due justification and supporting documents. The implementing agencies will not grant such extensions on their own. 
  • Previously, the Ministry had issued a notification asking the implementing agencies to treat the lockdown as a ‘force majeure’ event. The Ministry had received requests from developers and renewable energy associations to treat the pandemic as a force majeure event for the grant of extension in the scheduled commissioning date of projects. 

CERC furnishes regulation on Tariff determination for the RE sources for FY 2021-22

  • These regulations will be effective for FY 2021-22 and will be applicable on the determination of generation tariff for the Small Hydro Projects, Biomass Power Projects with Rankine Cycle Technology, Non-fossil Fuel-based Co-generation Projects, Biomass Gasifier based Power Projects and Biogas based Power Projects. 
  • Venika Hydro Projects had submitted comments and suggestion on the draft for reconsideration of capital cost, ROE & O&M expenses but denied by the commission. 
  • The control period for the tariff determination will be July 2020 to March 2023. Projects commissioned during the period will be valid for tariff determination as per the regulation. 
  • Generation Tariff for the RE projects are; 

Particulars

Levelized Total Tariff (FY 2021-22) (Rs/kWh)

Small Hydro Projects

Himachal Pradesh, Uttarakhand, West Bengal, North Eastern States and Union Territories of Jammu and Kashmir& Ladakh.(Below 5 MW)

5.15

Himachal Pradesh, Uttarakhand, West Bengal, North Eastern States and Union Territories of Jammu and Kashmir& Ladakh. (5 MW to 25 MW)

4.70

Others States (Below 5 MW)

5.74

Others States (5 MW to 25 MW)

5.68

Ministry of Power (MoP) proposes net metering for rooftop solar up to 500 kW

  • A draft amendment to Electricity (Rights of Consumers) Rules, 2020, has been issued by MoP which allows net metering for rooftop solar systems of loads up to 500 kW or up to the sanctioned load, whichever is lower and net-billing or net feed-in for above 500 kW. 
  • The stakeholders can send their comments to the ministry by April 30, 2021.
  • Commissions may introduce time-of-the-day (ToD) tariffs for prosumers which would provide incentives to prosumers to install energy storage for later use or can be fed into the grid during peak hours. 
  • Commissions may introduce time-of-the-day (ToD) tariffs for prosumers which would provide incentives to prosumers to install energy storage for later use or can be fed into the grid during peak hours. 
  • Commissions may permit gross metering for prosumers who would like to sell all the generated solar energy to the distribution licensee instead of availing the net-metering/ net-billing or net feed-in facility. 

CERC sets the National Average Power Purchase Cost of ₹3.85/kWh for open access solar projects

  • CERC has set the National Average Power Purchase Cost (APPC) for open access at ₹3.85 (~$0.052)/kWh. It would be applicable during the financial year (FY) 2021-22 or until further orders for deviation settlement regarding open access and captive wind and solar generators fulfilling regional entities’ requirements. 
  • In a recent order, the Commission observed that for wind or solar generators selling power under open access, which is not accounted for renewable purchase obligation (RPO) compliance of obligated entities, and for captive power projects where power purchase agreements (PPAs) do not exist, the settlement would be done at APPC. 
  • The total cost of power purchase considered for calculating the APPC excluded the cost of generation or procurement from renewable energy sources and transmission charges. The exclusion is in line with the determination of APPC to calculate the average cost of power from conventional sources. 
  • After receiving suggestions by various stakeholders, in response to PCKL’s request to consider tariff obtained through competitive bidding with respect to wind and solar power projects or a rate determined under generic tariff, the Commission said that the generic tariff was not required in the calculation of APPC. 
  • The Commission accepted a suggestion from to consider the net power purchase volume and its cost for Chhattisgarh. 
  • The Commission incorporated the data for small hydro projects from generating stations in Uttarakhand while calculating the renewables component. 

Changes approved by CERC to bidding guidelines for 1,500 MW of grid-connected solar projects.

  • CERC has approved the changes and additions proposed by Rewa Ultra Mega Solar Limited (RUMSL), Madhya Pradesh Power Management Company Limited (MPPMCL), and West Central Railway in the bidding guidelines for 1,500 MW of grid-connected solar projects.
  • RUMSL, MPPMCL, and West Central Railway had filed a petition with the Commission requesting certain deviations in the guidelines in the bid process initiated for the 500 MW grid-connected solar projects in Neemuch Solar Park; 450 MW grid- solar projects in Shajapur Solar Park, and 550 MW grid-connected solar projects in Agar Solar Park.
  • The petitioners had requested the Commission’s approval for fifteen deviations to the solar bidding guidelines, including payment security mechanism, notification of ‘force majeure’ event, offtake constraints, default and termination consequences, and the event of default on account of the developer’s failure to supply energy as per the power purchase agreement (PPA) among others.
  • They also pursued the inclusion of ‘epidemic, pandemic, quarantine, lockdown or similar action ordered by any government authority as force majeure events, termination due to a non-natural force majeure event, quantum and mechanism for ‘change in law’ relief to be included in the draft request for proposal and the PPAs.

Guidelines for Production Linked Incentive Scheme ‘National Programme on High Efficiency Solar PV Modules’

  • IREDA will be the implementing agency for the PLI program. IREDA will be eligible to get 1% of the PLI amount disbursed as administrative charges annually.
  • Manufacturing units that have imported capital goods for setting up the module manufacturing facility before the last date of bid submission will also not be eligible for participation under the PLI program.
  • Beneficiaries of the PLI scheme will be selected through a transparent bidding process. 

JERC determines tariffs for Solar Installations in Daman and Diu

  • The Electricity Department of Daman and Diu filed a petition with the Joint Electricity Regulatory Commission (JERC) for the state of Goa and Union Territories for the determination of tariffs for the solar installations in the union territory.
  • In its petition, the Electricity Department stated that the total installed solar capacity in the union territory is 14MW; 10MW from ground-mounted solar installations and the rest from roof-top installations.
  • The Commission stated that had the Electricity Department filed the petition on time, the problem of determining tariff would not arise. Since this is not the case, the tariffs were determined by calculating year wise tariff and averaging it.
  • The tariffs approved are as follows:

Type of Project

Electricity Department’s submission

(INR/kWh)

Approved by Commission

(INR/kWh)

Roof-top Solar Projects

Roof-top installations before the implementation of JERC Regulations 2019

7.86

6.15

Roof-top installations after the implementation of JERC Regulations 2019

(July 2019- March 2020)

5.93

4.73

Roof-top installation in FY 2020-2021

5.93

4.72

Ground Mounted Solar PV Project

1 MW

8.65

6.31

3 MW

8.65

6.31

6 MW

8.65

5.97

Ministry of Power Issues Draft National Electricity Policy 2021

  • Ministry of Power (MoP) with its notification dated 27 April 2021 has released the draft National Electricity Policy (NEP) 2021 and invited suggestions from all stakeholders.
  • MoP has created an expert committee that includes members from state governments, the Ministry of New and Renewable Energy (MNRE), NITI Aayog, and Central Electricity Authority (CEA). The committee is expected to submit its suggestions to the draft NEP 2021 within two months.
  • Stakeholders such as Central Public Sector Undertakings, Solar Energy Corporation of India, power transmission companies, financial institutions like Reserve Bank of India, Indian Renewable Energy Development Agency, HDFC Bank, ICICI Bank, industrial, solar, and wind associations, and state governments, have to present their suggestions to the expert committee between 11 May and 15 May 2021.
  • The draft NEP encourages electricity generation from renewable sources due to its environmental benefits that couple with energy security. The MoP also wants to encourage hybrid renewable energy like wind-solar, solar-biomass, solar mini-hydel, etc., with or without energy storage systems.
  • Draft further states that barring waste to energy generation, all future procurement of power from renewable sources must be through tariff-based competitive bidding.
  • Draft also states that the tariff of the renewable energy generators must cover the risk of curtailment of power by DISCOMs for reasons other than grid security or transmission constraints.
  • Draft further recommends swift implementation of differential tariffs between peak and off-peak hours for consumers and generating stations, to appreciate the peaking power value.
  • Draft has noted that renewable purchase obligations (RPOs) supported by renewable energy certificates (RECs) have not functioned satisfactorily. The draft suggests market-based options while removing shortcomings of the existing RPO-REC-based system.
  • Draft also encourages solar rooftop installations and states that one way to promote solar PV systems, particularly in household applications and small industries, is through net metering. Singh added, “NEP also appears to encourage rooftop solar. NEP should also suggest that there should not be any cap on net metering.”
  • It further mentions that all the existing meters should be replaced with smart meters in the next three years from the date of the issuance of the NEP 2021.

APTEL Allows Open Access, Banking Facility to Four Wind Power Generators in Maharashtra

  • The Appellate Tribunal for Electricity (APTEL), in its recent order, directed the MSEDCL to grant open access facility to four wind developers and also compensate them for the banked energy until the full quantum of open access is granted.
  • Four wind generators in Maharashtra – Roha Dyechem, Arvind Cotsyn, Jsons Foundry, and Western Precicast, had appealed to APTEL, demanding grant of open access. The generators also asked for MSEDCL to be directed to compensate for the banked energy.
  • APTEL took the case of Jsons Foundry as all the four appeals were similar.
  • Wind generator Jsons Foundry owns wind power projects of a total capacity of 6.82 MW in Maharashtra.
  • The MSEDCL granted open access for captive use from its Unit-I (3.40 MW) and Unit-II (3.42 MW).

State

Haryana

HERC Draft Regulation Notifies No Net Metering Facility for Open Access Solar Consumers

  • A discussion paper has been prepared with regards to the revision of regulations. Stakeholders have time until 15 April 2021, to submit their suggestions. A public hearing will be held on 22 April. The Commission will give final shape to the regulations based on the feedback received. 
  • As per the proposed regulations, a rooftop solar system’s maximum rated capacity, to be installed under net metering, should not exceed 10 kW. In contrast, under gross metering, the eligible consumer can install the rooftop solar system up to a maximum rated capacity of 2 MW. 
  • These regulations will apply to all the distribution licensees and consumers of electricity in Haryana. The rooftop solar system installed by an eligible consumer may be self-owned or third-party owned. 
  • Under net metering, the electricity generated from a rooftop solar system will be capped at 90% of the consumer’s electricity consumption at the end of the settlement period, which will be the relevant financial year. 
  • In case the electricity supplied by the distribution licensee during any billing period exceeds the electricity fed into the grid, the distribution licensee will raise an invoice for the net electricity consumption after taking into account any electricity credit balance remaining from the previous billing periods. 
  • The energy accounting and settlement procedure for consumers or third-party owners installing and operating rooftop solar system under the gross metering arrangement will be as per the following procedure: 
  • The licensee will show the quantum of electricity injected by the rooftop solar system installed at the eligible consumer’s premises in the billing period. 
  • The distribution licensee will reimburse the eligible consumer or the third-party owner for the quantum of injected electricity by the rooftop solar system during the billing period through ‘Solar Injection Compensation.’ 
  • There will be no deemed generation charges payable to the rooftop system’s eligible consumer or third-party owner. 
  • The distribution licensee will be responsible for billing the electricity injected by the rooftop solar system into the distribution system. 
  • The applicant should install the rooftop solar system within 180 days from the letter of award.

Maharashtra

MERC publishes RE tariff Regulation 2019 effective from April 1

  • MERC publishes RE tariff Regulation 2019 effective from April 1. Regulation will be applicable on Wind, Solar PV, Non-Fossil Fuel, Biomass & Hybrid RE Projects. 
  • These regulations will determine the APPC for DISCOM and variable price for biomass and cogeneration-based projects. 
  • Distribution Licensee wise APPC applicable for FY 2021-22 as follow; 

Distribution Licensee

APPC excluding RE & Liquid Fuel Source for FY 2021-22 (Rs/kWh)

MSEDCL

3.94

BEST Undertaking

4.5

AEML-D

4.21

TPC-D

4.29

MBPPL

3.99

KRCIPL

3.92

GEPL

4.01

  • Variable charges approved for the biomass & non fossil fuel-based co-generation projects. 

RE Technology

Variable Charge (Rs/kWh)

Biomass based RE Project

5.55

Non-fossil fuel-based Co-generation Projects

4.38

Maharashtra Sets Generic Tariff of ₹2.90/kWh for Rooftop Solar Projects

  • MERC has set the generic tariff of ₹2.90 (~$0.039)/kWh for surplus power procured at the end of the financial year from rooftop solar projects for the FY 2021-22. 
  • The tariffs notified by MERC will be applicable for the FY 2021-22, with effect from April 01, 2021. 
  • The state regulator extended the existing variable charges for biomass and non-fossil fuel-based cogeneration projects as determined under the ‘Renewable Energy Tariff Order’ dated April 30, 2019, until the variable cost for these projects was determined by The Energy and Resources Institute (TERI). The variable charges are ₹5.55 (~$0.076)/kWh for biomass-based renewable energy projects and ₹4.38 (~$0.059)/kWh for non-fossil fuel-based cogeneration projects. 
  • The charges will be applicable from April 01, 2020, until the fuel cost for biomass and non-fossil fuel-based cogeneration projects are finalized. 

MERC Defers Levying State Periphery Charges on Renewable Generators

  • MERC with its Order dated 19 April 2021 has accepted the recommendations of the deviation settlement mechanism (DSM) working group and deferred the levy of state periphery charges until further notice. 
  • MERC stated that state periphery charges already collected from renewable generators by the Maharashtra State Load Dispatch Center (MSLDC) from 6 January 2020, to 27 April 2020, should be adjusted toward the future payment of pooling substation charges of the respective renewable generators. 
  • MERC stated that the working group should analyse the DSM bills for six months after commercial implementation of the DSM Regulations for providing suggestions on the modality of determining the periphery charges. 
  • MERC rejected the appeals of all 28 petitioners seeking a trial or grace period to assess the challenges faced while complying with the provisions of the regulations. 
  • Some renewable power generators even approached the Bombay High Court, challenging the regulations on the state periphery charges. 
  • Afterwards, MERC directed the DSM working group to take up the computation of the state periphery charges. 
  • The DSM working group, in its analysis, said that the state had to pay Rs. 14.5 million to the regional pool, whereas the renewable energy generators had to pay Rs. 698.8 million as pooling substation and state periphery charges. The DSM working group concluded that for all 19,488 time-blocks of 29 weeks’ analysis period starting from 6 January to 26 July 2020, MSLDC has calculated state periphery charges in line with the Forecasting and Scheduling Regulations. 
  • MERC further noted that the renewable energy generators would gain experience with time, and the forecasting accuracy would improve further. 

TPREL seeking compensation for the increase in costs on account of Change in Law event executed with MSEDCL

  • TPREL has recently filed the Petition seeking compensation for the increase in costs on account of Change in Law event. TPREL had entered into PPA on 27 July 2018 with MSEDCL for capacity of 150 MW from Solar power project to be located in Rajasthan. 
  • The main requests of TPREL are:
  • Hold and declare that the change in rate of GST applicable to Supply and Service Contracts pursuant to the Notifications mentioned hereinabove, for setting up of TPREL’s solar power plants, amounts to Change in Law events under the PPA; 
  • Direct MSEDCL to make payment of the sum of Rs. 28.10 Crores along with the applicable carrying cost towards compensation for such Changes in Law events to TPREL.

BEST-SECI’s PPA for 400MW Wind-Solar Hybrid approved by MERC

  • Brihanmumbai Electric Supply and Transport Undertaking (BEST) received approval from MERC on its petition to procure 400MW Wind-Solar Hybrid power from SECI.
  • The PPA was approved at a tariff of INR 2.41/unit plus trading margin of INR 0.07/unit for a period of 25 years to fulfil its RPO obligations.
  • The power will be procured from SECI’s 1100MW ISTS connected wind-solar hybrid projects (Tranche-III) which was awarded to ABC Renewable Energy(380MW), Adani Renewable Energy Holding Eight Ltd.(600MW) and AMP Energy(130MW) in an auction held in December 2020.
  • BEST was initially offered 600MW from SECI at a tariff of INR 2.42/unit + INR 0.07/unit for SECI’s trading margins. However, BEST consented only 400MW.

Bihar

BERC issued tariff order for FY 21-22 with key features

Category

Rs/kWh

Transmission Charges

1,92,167/MW/Month for long and medium term open access consumers.

Transmission Charges

0.263 for short term open access consumers.

SLDC Charges

0.34

Cross Subsidy Surcharge

132 kV – 1.69 33 kV – 1.78 11 kV – 1.80

HTSS (11 kV & 33 kV)

0.52

  • Transmission losses of 3.00%
  • Reactive Energy Charges – Rs 0.06/kVAr 

Gujarat

GERC – ‘Change in Law’ Clause in PPAs Signed by Small Scale Distributed Solar Projects Approved

  • The Gujarat Electricity Regulatory Commission (GERC) has approved the incorporation of ‘change of law’ in the proposed power purchase agreements (PPAs) by the Gujarat Urja Vikas Nigam. 
  • These PPAs are to be executed by the state DISCOMs with project developers under the ‘Government of Gujarat’s Policy for Development of Small Scale Distributed Solar Projects – 2019.’ 
  • The Gujarat Government notified the ‘Policy for Development of Small Scale Distributed Solar Projects – 2019’ for procurement of power from projects of 0.5 MW to 4 MW capacity. 
  • Under the policy, any individual, company or body, corporate or association or body of individuals, co-operative society of individuals/farmers whether incorporated or not or artificial juridical person can set up small-scale solar projects. 
  • Such projects are set up exclusively for sale to obligated entities, i.e., DISCOMS, to fulfil their RPO (renewable purchase obligation). 
  • However, certain provisions in the standard PPA executed by the petitioners under competitive bidding were not incorporated in the draft PPA to be executed with small-scale solar project developers. 
  • Apart from this, introduction or changes in the rates of safeguard duty, anti-dumping duty, and customs duty, including surcharge, which directly affect the cost of solar PV modules, should also be considered a change in law. 

GERC – Tariff framework for Procurement of Power by Distribution Licensees and Others from Wind-Solar Hybrid Energy Projects

  • Gujarat Electricity Regulatory Commission (GERC) has issued tariff framework for procurement of wind solar hybrid projects. 
  • The Commission proposes to determine the tariff for all prospective Wind-Solar Hybrid power projects, based on the rates discovered through competitive bidding. 
  • However, there could be cases of Wind-Solar Hybrid power projects below the threshold limit of eligibility for participating in competitive bidding. It is proposed that the tariff for such power projects shall be considered equal to the tariff discovered through competitive bidding by state owned DISCOMs, in different time period of 6 months of the year as under: 
  • For Type – A (Existing projects): The purchase of power from additional /new capacity shall be at the weighted average tariff (for respective RE addition capacity i.e., Wind or Solar), available as on 1st April shall be applicable for the projects to be commissioned under PPAs signed during April-September. 
  • For Type-B (New Projects): The purchase of power from such projects shall be at the weighted average tariff (of Wind, Solar & Wind-Solar Hybrid), available as on 1st April shall be applicable for the projects to be commissioned under PPAs signed during April-September. 
  • Wheeling of power for third party sale from Hybrid power projects shall be allowed on payment of transmission charges applicable on sanctioned/allocated transmission capacity, transmission losses on energy feed basis, wheeling charges and losses on the energy fed into grid. 50% of the Cross Subsidy Surcharge and Additional Surcharge, as applicable to normal open access consumer, shall be applicable. 
  • Hybrid Project Developers, who desire to wheel electricity to more than one location for captive use/third-party sale, shall pay INR 5 paise per unit on energy fed in the grid as measured at receiving end sub-station of GETCO. 
  • Surplus power shall be compensated by the concerned Distribution Licensee at the rate Rs. 1.75 per unit or the lower rate, if any, specified by the Commission. Provided that the surplus energy in case of either captive use or third-party sale shall not exceed 15% of the actual generation on annual basis.

Extension of time limit for execution of PPAs for the projects covered in ‘Small Scale Distributed Solar Projects, 2019’ policy – GERC

  • The Petition was filed before the Commission under Section 86 (1) (b) & (e) of the Electricity Act, 2003 by the GUVNL and others for incorporating provision regarding ‘Change in Law’ in the Power Purchase Agreements to be executed by State DISCOMs with Project Developers under the Government of Gujarat’s Policy for Development of ‘Small Scale Distributed Solar Projects, 2019’. 
  • Due to COVID pandemic circumstances, it is not possible to execute the PPAs by the large number of solar projects owners who are required to execute the PPAs in prescribed time limit i.e., up to 30.04.2021 as per aforesaid order of the Commission. Hence, the Commission is requested to extend the aforesaid time limit for a period of 1 to 3 months. 
  • The commission order that the time limit for execution of PPAs is further extended upto 31.05.2021 instead of up to 30.04.2021 as decided in Petition No. 1954 of 2021. 

Karnataka

Average Pooled Power Purchase Cost (APPC) for the FY 2020-21 and notifying provisional APPC for the year 2021-22 by KERC

  • The KERC vide notification dated 20.03.2019, had notified the APPC under Clause 7(c) of the KERC Regulations, 2011, at Rs 4.04/unit for the FY 2020-21, subject to truing up as per the actuals. 
  • The KERC commission, hereby, notifies the APPC at Rs 4.17/unit for the FY 2021-22 with effect from 01.04.2021, which is subject to truing up, as per the actuals. 
  • In accordance with the KERC Regualtions, 2019, for FY22, the ESCOMs shall bill the RE generators selling to them under REC mechanism at lower of Rs. 4.17/unit or 75% of the generic tariff determined for FY22, for the respective RE source by the commission, which is subject to truing up of APPC for FY22. 

Rajasthan

RERC – Regulations for Grid Interactive Distributed Renewable Energy Generating Systems

  • These Regulations shall apply to the Distribution Licensee and consumers availing supply from such Distribution Licensee, in its area of supply in the State of Rajasthan. 
  • These Regulations shall apply to Net metering, Net billing and Grid Interactive Distributed Renewable Energy generating systems that are commissioned on or after 1st July 2021 
  • The quantum of electricity generated from the self-owned Renewable Energy generating system under Net Metering arrangement, if installed on Eligible Consumer premises, shall be exempted from banking charges, wheeling charges, cross subsidy surcharge, and additional surcharge. 
  • Cross subsidy surcharge and additional surcharge shall be applicable for such RESCO-owned Renewable Energy generating system under net metering arrangement, except in case of LT domestic category consumers, at the rate of 50% of cross subsidy surcharge and additional surcharge applicable for open access consumers. 
  • In case of consumer categories for which cross subsidy surcharge and additional surcharge has not been determined by the Commission, surcharge (cross subsidy plus additional surcharge), shall be applicable @ Rs 1.25/kWh for such category of consumers, till the same is revised by the Commission through a separate order. 

Tamil Nadu

TNERC – Determination of additional surcharge payable by open access consumers

  • The petition is filed by the Tamil Nadu Generation and Distribution Corporation Limited before the Commission under TNERC (Grid Connectivity and Intra-State Open Access) Regulations, 2014 for determination of Additional Surcharge payable by Open Access consumers availing power under open access. 
  • The National Tariff Policy provides the provisions that deal with the calculation of cross subsidy surcharge and applicablility of additional surcharge to be paid by open access consumers. 
  • An additional surcharge sof Rs 0.85/kWh will be levied by TNERC on the consumers buying power through IEX and open access mode w.e.f. 14th April 2021. 
  • The state is already imposing cross subsidy charges which would make the purchase of power under open access less attractive. 

TNERC Directed to Pay ₹165 Million in Wind Dues with 12% Interest

  • In 2011-12, Ratedi Wind Power approached TANGEDCO to sell 12 MW power generated from its 15 wind projects in Tamil Nadu. TANGEDCO accepted the proposal and agreed to buy the power. TANGEDCO and the Ratedi Wind Power executed 15 separate EPAs with identical provisions. 
  • The wind generator, in its submission, said that it had not been paid for the energy supplied since October 2017 despite there being no dispute concerning the invoices. 
  • A total sum of ₹158.65 million (~$2.1 million) as the principal amount was due as of 11 December 2019. 
  • TNERC in its recent order, directed the TANGEDCO to pay $164.95 million (~$2.18 million) in outstanding dues and interest at the rate of 12% per annum to a wind developer within 30 days from date of the issuance of the order. 

TNERC DISCOM Ordered to Clear Outstanding Dues to Wind Urja India

  • In 2013, Wind Urja India approached TANGEDCO to sell 12 MW of energy generated from its 15 wind generators installed in Tamil Nadu. The wind generator signed 15 energy purchase agreements (EPAs) with TANGEDCO on September 6, 2010. The agreed tariff for the supply of power was set at ₹3.39 (~$0.045)/kWh. 
  • Wind Urja India said that it had not been paid for the energy supplied under the EPAs since October 2017 despite no dispute concerning any of the invoices. A total sum of ₹135.12 million (~$1.79 million) as the principal amount was due as of 11 December 2019. 
  • TNERC has directed the TANGEDCO to pay ₹132.8 million (~$1.76 million) in dues, including interest at 12% per annum to a wind developer within 30 days from the issuance of the order. 

Kerala

Kerala DISCOM to Buy 300 MW of Solar From SECI at ₹2.44/kWh

  • SECI had offered 200 MW under Tranche-I of the 6,200 MW of ISTS-connected solar projects linked with manufacturing projects in India on a build, own, and operate basis to KSEB. 
  • The tariff quoted in Tranche-I ranged from ₹2.36 (~$0.031)/kWh to ₹2.92 (~$0.039)/kWh. The weighted average of the tariff was ₹2.66 (~$0.035)/kWh under Tranche-I. 
  • In December last year, the State Commission had directed KSEB and SECI to proceed with the procurement of 200 MW of solar power at the pooled tariff of ₹2.66 (~$0.036)/kWh. 
  • SECI mentioned that it had given a revised offer to KSEB for 500 MW of ISTS-connected solar power under Tranche-IX at a tariff of ₹2.44 (~$0.032)/kWh, including the trading margin of ₹0.07 (~$0.0009)/kWh to make it competitive. 
  • In its order dated March 23, 2021, the Commission directed KSEB to file an amendment to the original petition for procuring 300 MW of solar power at ₹2.44 (~$0.032)/kWh instead of 200 MW offered earlier under Tranche-I of the manufacturing-linked projects. 
  • KSERC, in its recent order, directed the SECI to finalize the draft power sale agreement (PSA) for 300 MW of solar and forward it to Kerala State Electricity Board Limited (KSEB) by May 4, 2021. 
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