Monthly RE update – August 2021

Monthly RE update – August 2021

This image has an empty alt attribute; its file name is Longi-banner-newvg.png
This image has an empty alt attribute; its file name is goodwe_610X75_gif.gif

Tenders

  • In August 2021, In August 2021, 15 new renewable energy (RE) tenders with a total capacity of 2534.5 MW were issued. MSEDCL has issued wind tenders for 800 MW and a 487 MW solar tender under KUSUM scheme in Maharashtra. 
  • NHPC has also issued 700 MW of solar (EPC) tenders in Tamil Nadu (600 MW) and Odisha (100 MW).

Details of new tenders issued in August 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

NHPC, 500 MW, Solar (EPC), Tamil Nadu, Aug 2021

Utility Scale Solar

EPC

500

PBG – 3% of the contract value

 

12 months

5th-Oct-2021

MSEDCL, 500 MW, Wind, Maharashtra, Aug 2021

Wind

Project Development

500

EMD – INR 0.5 million/MW

Ceiling tariff – INR 2.65/kWh

22%

18 months

13th-Sep-2021

MSEDCL, 487 MW, Solar (under KUSUM), Maharashtra, Aug 2021

Small Scale Solar

Project Development

487

EMD – INR 0.1 million/MW

PBG– INR 0.5 million/MW

Ceiling tariff – INR 3.10/kWh

15%

12 months

17th-Sep-2021

MSEDCL, 300 MW, Wind, Pan India, Aug 2021

Wind

Project Development

300

EMD – INR 0.6 million/MW

PBG – INR 1.2 million/MW

22%

18 months

20th-Sep-2021

GSECL, 224 MW, Solar (EPC), Gujarat, Aug 2021

Utility Scale Solar

EPC

224

EMD – INR 0.4 million/MW

PBG – 10% of the contract price

25%

18 months

8th-Sep-2021

REMCL, 210 MW, Solar (vacant Railway Lands), Aug 2021

Utility Scale Solar

EPC210 

17%

16 months

21st-Oct-2021

NHPC, 100 MW, Solar (EPC), Tamil Nadu, Aug 2021

Utility Scale Solar

EPC

100

PBG – 3% of the contract value

12 months

6th-Oct-2021

NHPC, 100 MW, Floating Solar (EPC), Odisha, Aug 2021

Floating Solar

EPC

100

PBG – 3% of the contract value

 

12 months

7th-Oct-2021

JBVNL, 50 MW, Solar (Under KUSUM), Jharkhand, Aug 2021

Utility Scale Solar

Project Development

50

EMD – INR 0.1 million/MW

PBG– INR 0.5 million/MW

15%

9 months

3rd-Sep-2021

Mahanadi Coalfields, 50 MW, Solar (EPC), Odisha, Aug 2021

Utility Scale Solar

EPC

50

PBG – 5% of the contract amount

25.3%

10 months

1st-Sep-2021

JREDA, 6 MW, Rooftop Solar, Jharkhand, Aug 2021

Rooftop Solar

 

6

EMD – For General Bidders – INR 0.21 million

For MSME – Nil

PBG – 5% of the work order value

15%

4 months

20th-Sep-2021

GSECL, 4.5 MW, Solar (EPC), Gujarat, Aug 2021

Small Scale Solar

EPC

4.5

EMD – INR 1.8 million

PBG – 10% of the EPC Contract Price

25%

9 months

13th-Sep-2021

Jai Narain Vyas University (JNVU), 1 MW, Rooftop Solar, Rajasthan, Aug 2021

Rooftop Solar

RESCO

1

Bid security – INR 0.1 million

 

6 months

15th-Sep-2021

TSECL, 1 MW, Rooftop Solar, Tripura, Aug 2021

Rooftop Solar

CAPEX

1

EMD – For General Bidders: Based on the Bid capacity proposed by the bidder

13.5%

12 months

27th-Sep-2021

BREDA, 1 MW, Hybrid Rooftop Solar, Bihar, Aug 2021

Rooftop Solar + BESS

 

CAPEX

1

EMD – INR 0.2 million PBG – 10% of the contract price

 

3 months

31st-Aug-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

3rd-Sep-2021

SECI, 1200 MW, Solar UMREPP ISTS X, Karnataka Jul 2021

Utility Scale Solar

Project Development

1200

EMD – INR 0.4 million/MW

PBG – INR 0.8 million/MW

17%

18 months

3rd-Sep-2021

REMCL, 740 MW, Solar, Pan India (Railway Land), Jun 2021

Utility Scale Solar

Project Development

740

EMD – INR 0.4 million/MW

PBG – INR 0.8 million/MW

17%

18 months

16th-Sep-2021

NHPC, 600 MW, Solar (EPC), Rajasthan, July 2021

Utility Scale Solar

EPC

600

PBG – 5% of the contract value

 

18 months

7th-Sep-2021

PSPCL, 250 MW, Solar, Pan India, May 2021

Utility Scale Solar

Project Development

250

  

16th-Sep-2021

PSPCL, 250 MW, Solar, Punjab, May 2021

Utility Scale Solar

Project Development

250

   

15th-Sep-2021

MPUVNL, 225 MW, Solar (under KUSUM), Madhya Pradesh, Jul 2021

Small Scale Solar

Project Development

225

PBG – INR 0.5 million/MW

15%

9 months

16th-Sep-2021

SECI, 100 MW, Solar (EPC), Chhattisgarh, Jul 2021

Utility Scale Solar

EPC


100

PBG – 3% of the contract value

18 months

9th-Sep-2021

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

Solar and Agro PV 

EPC

50

PBG – 3% of the contract value

24.1%

12 months

22nd-Sep-2021

SECI, 15 MW, Floating Solar, Bilaspur, Himachal Pradesh, Jul 2020

Floating Solar

Project Development

15

EMD – INR 13.5 million

PBG – INR 27 million

21%

18 months

21st-Sep-2021

Source: Industry news articles, JMK Research

Auction Completed

Winners in the latest RE auctions

Source: JMK Research

Tender Name

Capacity tendered (MW)

Capacity allotted (MW)

Minimum CUF

Commissioning timeline

Winners Details

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

1200

1200

30%

18 months

• NTPC – 450 MW (INR 2.34/kWh)


• NLC – 150MW (INR 2.34/kWh)


• Project Ten Renewable (Ayana Renewable) – 450 MW (INR 2.34/kWh)

• Azure Power – 150 MW (INR 2.35/kWh)

RUMSL, 500 MW, Neemuch Madhya Pradesh, Jan 2020

500

500

 

24 months

• Tata Power – 170 MW (INR 2.14/kWh)


• Tata Power – 160 MW (INR 2.15/kWh)


• Aljomaih Energy and Water Company – 170 MW (INR 2.15/kWh)

BREDA, 250 MW, Solar, Bihar, Dec 2020

250

200

 

18 months

• SJVN – 200 MW (INR 3.11/kWh)

SECI, 20 MW, Solar with 20 MW/ 50 MWh BESS Storage, Leh, Dec 2020

20

20

42.5%

12 months

• Tata Power – 20 MW

Source: JMK Research

Installed Capacity

In August 2021, a combined total of 1060 MW of solar and wind energy capacity was added, taking the cumulative RE capacity to 100 GW.

RE Installations in August 2021

Source: CEA, JMK Research

State wise RE Installed capacity in August 2021

Rajasthan added the most renewable energy capacity of 615 MW in August 2021, followed by Gujarat (350 MW).

Source: CEA, JMK Research

Recently Commissioned solar projects in August 2021

10 new projects with a cumulative solar capacity of 1010 MW got commissioned by various renewable energy players this month. The list of recently commissioned projects is mentioned below:

Developer

Technology

Tender Name

AC Capacity (MW)

Tariff (Rs/kWh)

State

Eden Renewables

Solar

SECI 1200 MW Solar ISTS Tranche III Feb 2019

300

2.60

Rajasthan

Engie

Solar

GUVNL 700 MW Solar Phase III Gujarat May 2019

200

2.65

Gujarat

Tata Power Renewable Energy

Solar

TPC-D Mumbai Solar, 150 MW, Oct-2019

75

 

Rajasthan

UPC-AC Energy

Solar

SECI 750 MW Solar Tranche I Rajasthan Mar 2019

100

2.48

Rajasthan

Tata Power Renewable Energy

Solar

GUVNL 700 MW Solar Phase III Gujarat May 2019

100

2.70

Gujarat

UPC-AC Energy

Solar

GUVNL 500 MW Solar Phase IV Gujarat Feb 2019

50

2.55

Gujarat

Mahindra Susten

Solar

SECI 2000 MW Solar ISTS Tranche I Jul 2018

40

2.53

Rajasthan

Cleantech Solar

Solar (open access)

 

30

 

Maharashtra

NTPC

Floating Solar

NTPC 25 MW Floating Solar Andhra Pradesh Jul 2019

15

 

Andhra Pradesh

Adani

Hybrid

SECI 1200 MW Hybrid ISTS-Tranche I December 2018

100

2.69

Rajasthan

Source: Industry news articles, JMK Research

Apart from this, in terms of PPA activity:

  • ReNew Power has announced that it has signed India’s first round-the-clock (RTC) renewable energy Power Purchase Agreement (PPA) with SECI for its 400 MW project. Wherein ReNew Power will supply electricity at INR 2.90/kWh in the first year. Later, the tariff will increase by 3% annually for the first 15 years.
  • In addition, the government of Puducherry has signed a power purchase agreement with NTPC to buy 100 MW of solar power project in Nokh, Rajasthan. Along with this, the government had already signed a PPA for 140.64 MW of wind power project from Solar Energy Corporation of India Limited (SECI).

Monthly RE Generation

Renewable Energy sources generated 15,032.68 MU in August 2021, a significant decrease of 21% from July 2021. Taking into account the last month’s RES (Renewable Energy Sources) generation, wind energy continues to contribute the majority share of 58%, followed by solar at 35%, and other renewable energy sources (including biomass) at 7%.

Source-wise Renewable Energy Generation (MU) – India

Source: CEA, JMK Research

monthly RE

Investments/ Deals

In August 2021, about $ 1792.23 million was invested in the RE sector.

The Key investments during the month were:

  • ReNew Power got listed on NASDAQ by completing its business combination with RMG Acquisition Corporation II wherein ReNew has received $610 million in net proceeds as part of this transaction. In addition, ReNew Power has acquired two renewable energy assets including a 99 MW hydro power project in Uttarakhand and 260 MW solar project in Telangana.
  • Azure Power has announced the issuance of a dollar green bond of $414 million.

Company Name

Deal Type

Sector

Asset Acquired

Investor

Deal Value

Other Details

RMG Acquisition Corporation II (RMG II)

Merger

Renewable

 

ReNew Power

$610 million

 

Azure Power

Bond

Solar

 

$414 million

The Bond will mature in 2026, and would be issued at a coupon of 3.575% with a tenure period of 5 years

L&T (Hydro asset)

Name not disclosed (Solar asset)

Acquisition

Renewable

359 MW

ReNew Power

$384 million


ReNew has acquired a 99 MW of hydro power project (from L&T) in Uttarakhand and 260 MW of solar project in Telangana

CleanMax

Equity

Solar

 

Augment Infrastructure

$222.23 million

 
THDC India Limited

Bond

Renewable

  

$162 million

The coupon rate discovered at 7.39% for a tenure period of 10 years. CARE and India ratings assigned these bonds an AA “Stable” credit rating.

Source: Industry news articles, JMK Research

Other key announcements that were made during the month were:

  • British firm Actis is planning to acquire Global Infrastructure Partner’s (GIP) Vector Green Energy, with an expected equity investment of around $300 million. In addition, the company has also begun the sale process for Sprng Energy (its renewable energy platform in India), and will soon appoint a banker for the proposed sale.
  • ACME Solar is planning to invest INR 20,000 crore to increase its solar capacity to 10 GW, in next five years. IndiGrid is also planning to invest up to INR 5,000 crore in operational solar assets as part of its diversification strategy. ArcelorMittal also intends to invest INR 1 lakh crore in Gujarat to expand its existing steel plant and enter the renewable energy market.
  • Kajaria Ceramics Ltd. has announced to invest INR 264 lakhs in an SPV for solar power captive consumption. The SPV will be formed by a solar power plant company, CleanMax Enviro Energy Solutions Private Ltd. 
  • NTPC has issued a Request for Proposal (RFP) for raising term loans worth up to INR 5,000 crore. The last date for bid submission is 2nd September 2021. 
  • Sterlite Power has filed a draft red herring prospectus (DRHP) with SEBI to raise an IPO of INR 1,250 crore. Waaree is also planning to raise around INR 1,300-1,500 crore through the IPO in order to increase its module manufacturing capacity by another 3 GW.
  • REC Group, Europe’s largest solar panel manufacturer, is close to being acquired by Reliance Industries. China National Chemical Corp (ChemChina) is expected to sell the company to Reliance for $1-1.2 billion. RIL is also in discussions with international lenders about raising $500-600 million in acquisition financing for the deal. The rest will be funded through equity.

Comparing on m-o-m basis, prices of global multi-crystalline modules and mono PERC modules have slightly increased by 1.4% and 0.4% respectively in August 2021. Whereas the price for mono PERC (India) module has dropped by 3.8%.

Solar modules price trends

Source: PVInfoLink, JMK Research

Note: India Prices are FOB prices

Monthly SECI Payments

The Solar Energy Corporation of India Limited (SECI) paid nearly INR 6.61 billion to developers for the purchase of solar and wind power in July 2021. 

Monthly payments by SECI to solar and wind developers

Source: SECI, JMK Research

Policies and Regulations

Central

CERC Rejected Developer’s Plea for Extending Commissioning Dates for 140 MW of Solar Projects

  • Central Electricity Regulatory Commission (CERC) in its order dated 4 August 2021 has rejected the request of Solaire Solar Urja for extension of the scheduled commissioning dates of two solar projects of 70 MW each at the Bhadla Solar Park in Rajasthan.
  • The developer also demanded a refund of $70.6 million in liquidated dam- ages received by NTPC for the delay in commencement of the supply of power from the projects.

CERC instructed SECI to Compensate Solar Developer for GST Claims

  • The Central Electricity Regulatory Commission (CERC) has ordered SECI to compensate a solar developer on an annuity basis for the higher costs incurred due to the imposition of GST.
  • Talettutayi Solar Projects One (SolarArise) had submitted a petition seeking approval of the implementation of GST rules as a ‘Change in Law’ event and consequential relief to compensate for the increase in capital expens- es due to the introduction of GST regulations.
  • The Commission noted that, according to the terms of the power purchase agreement (PPA), the adoption of the GST laws was a ‘Change in Law’ event.
  • Due to the implementation of GST, invoices issued until the Commercial Operation Date (COD) on the supply of goods can be claimed as a ‘Change in law’ event.
  • The petitioner’s request for “carrying cost” was denied by the Commission.

Draft Electricity (Promoting Renewable Energy through Green Energy Open Access) Rules, 2021

  • Ministry of Power has released its draft electricity (Promoting Renewable Energy through Green Energy Open Access) Rules, 2021. The following highlights from the draft are as follows:
  • Consumers having contracted demand of 100 kW and above will be eligible for green open access.
  • There should be uniform RPO applicable on all the obligated entities i.e., DISCOM, Open access (OA) and Captive Consumers.
  • There will be no restrictions on the capacity on behind the meter projects.
  • Banking Charges will be permitted on a monthly basis.
  • Cross subsidy surcharge (CSS) will not be increased during 12 years of COD of plant by more than 50% of CSS fixed for the year in which OA is granted.
  • No additional surcharge will be applicable on green open access.
  • Central nodal agency to be notified which will operate a single window green energy open access systems for RE.
  • Industries and other obligated entities can also meet their RPO by pur- chasing green hydrogen as per the CERC norms.
  • All applications for OA of green energy shall be granted within a maximum of 15 days.

Updated List – I Under ALMM Order for Solar PV Modules

  • MNRE has updated List-I (Manufactures and Modes of Solar PV Modules) of ALMM Order, 2019. The updated list has 26 manufacturers now with a total enlisted capacity of 8,367 MW, while the previous list had 23 manufacturers.
  • CEL, Patanjali, and Jakson are the new entrants in the list.
  • MNRE had issued this order to ensure that the products are made in the units in which the products are claimed.

Ministry of Power released Draft Electricity (Late Payment Surcharge) Amendment Rules, 2021

  • Ministry of Power (MoP) has released Draft Electricity (Late Payment Surcharge) Amendment Rules, 2021 on 19th August 2021. The important highlights from the draft are mentioned below:
  • Payments would be adjusted first against the late payment surcharge, with the most overdue bills being adjusted first.
  • If DISCOMs delay payments by more than 7 months, the generating company may sell power to any consumer or licensee or power exchanges.

Benchmark Costs for Grid-Connected Rooftop Solar PV Systems for the FY 2021-22

  • Ministry of New and Renewable Energy (MNRE) with its notification dated 18 August 2021 has issued benchmark costs for grid-connected rooftop solar PV systems for the FY 2021-22.
  • The benchmark costs for different system capacity range are mentioned below:

System Capacity Rang

< 1 kW

1-2 kW

2 – 3 kW

3 – 10 kW

10 – 100 kW

100 – 500 kW

Benchmark cost (INR/kW)

For General category states/UTs

51,100

46,980

45,760

44,640

41,640

39,080

For Special category states/UTs

56,210

51,670

50,330

49,100

45,800

42,980

  • The above benchmark cost includes cost of Solar PV panels (with domestic cell and modules), inverter (single/3 phase wherever applicable) and BOS. The above benchmark costs are excluding of net metering cost and battery back-up costs.

Benchmark Costs for Off-Grid and Decentralized Solar PV Systems for the year 2021-22

  • Ministry of New and Renewable Energy (MNRE) has issued the benchmark costs for off- Grid and centralized Rooftop Solar PV systems forthe year 2021-22.
  • The following are the system-level benchmark costs:

Solarization of Grid-connected Individual Agricultural Pumps

Capacity

Above 1 kW and up to 3 kW

Above 3 kW and up to 6 kW

Above 6 kW and up to 10 kW

Above 10 kW and up to 15 kW

Benchmark Cost (INR/kW)

48,300

47,100

44,300

41,000

Standalone Solar Power Plants/Packs

Capacity

Benchmark Costs (INR/Wp)

General Category States/ UTs

North-Eastern States/Hill States & UTs/ Island UTs

Up to 10 kW

94

103

74

81

62

68

Above 10 kW and up to 25 kW

84

92

66

72

55

60

  • The benchmark cost for standalone solar pumps for the pump capacity between 1-10 HP is in the range of INR 1,05,500/pump – INR 5,56,700/pump.

CERC – Clarification and Modification of the GST/ Safeguard Duty Orders

  • CERC in its recent order dated 20.08.2021 provided clarity on issues relating to annuity payments, annuity period and cut off dates.
  • The important points from the order is as follows:
  • The discount rate for annuity payments for expenditure incurred by Solar Power Developers (SPDs) due to a change in law will be 10.41%. (GST Laws or Safeguard Duty).
  • The liability of SECI/ DISCOMs for ‘Monthly Annuity Payments’ starts from 60th day from the date of orders or from the date of submission of claims by SPDs, whichever is later.
  • The tenure of annuity payments should be for 13 years.
  • Actual cash outflow (due to levy of safeguard duty) for which bonds have been executed will be payable and claims for Change in Law towards Safeguard Duty will be governed by orders in the petitions where the matter has been adjudicated.
  • Only those equipment as per rated project capacity that have been installed until COD and through which energy has flowed into the grid until COD are eligible for reimbursement of Safeguard duty and GST.
  • In case of supply of services related to goods procured up to COD, the invoices are to be raised within 30 days of supply of such services.
  • The SPDs shall have to pay all statutory taxes, duties, levies, and cess etc. on Monthly Annuity Payments that may be required to be paid as per the terms of PPAs.

State

Chhattisgarh

CSERC Allows Net Metering for Distributed Renewable Energy Systems up to 500 kW

  • Chhattisgarh State Electricity Regulatory Commission (CSERC) has amended the Grid-Interactive Distributed Renewable Energy Sources Regulations, 2019 on 27 July 2021.
  • As per the amendment, the capacity of the distributed renewable energy system must not exceed the approved load or contract demand of the prosumer.
  • Under the net metering arrangement, the minimum and maximum size of renewable energy system that can be installed ranges between 1 kW to 500 kW.
  • CSERC states that banking of 100% energy after netting will be per- mitted for all captive and open access consumers. Charges at the rate of 5% of banked energy will be payable by the prosumer. The banking year will be from April to March.
  • For the first 300 MW of open access renewable energy systems, the cross-subsidy surcharge and transmission and wheeling charges in cash are exempted for the entire useful life of the solar project.
  • The transmission and wheeling charges in kind at 8% will be applicable for the entire useful life of the solar project.

Delhi

DERC (Renewable Purchase Obligation and Renewable Energy Certificate Framework Implementation) Regulations,2021

  • Delhi Electricity Regulatory Commission (DERC) has recently announced the ‘Renewable Purchase Obligation and Renewable Energy Certificate Framework Implementation Regulations, 2021 which will be effective from 13 April 2021.
  • The Renewable Purchase Obligation (RPO) targets specified for Obligated Entities shall be fulfilled in the following manner:

Particulars

FY 2020-21

FY 2021-22

FY 2022-23

Non-Solar

Other Non-Solar RPO

10.25%

10.25%

10.50%

HPO (applicable only for Distribution Licensees)

0.18%

0.35%

Solar

7.25%

8.75%

10.50%

Total

17.50%

19.18%

21.35%

  • The Obligated Entity shall comply with its RPO targets separately for Solar & Non-Solar.
  • On achievement of Solar RPO compliance to the extent of 85% and above, can be met by excess Non-Solar energy/Non-Solar REC purchased beyond Non-Solar RPO for that particular year.
  • On achievement of Other Non-Solar RPO compliance to the extent of 85% and above, can be met by excess Solar energy/Solar REC/eligible Hydro Energy purchased beyond Solar RPO or HPO for that particular year.

Goa and Union Territories

Exemptions for solar projects denied by the JERC under the Open Access Regulations

  • In a recent order, the Joint Electricity Regulatory Commission (JERC) for the state of Goa and union territories has rejected the petition filedby AMP Energy Distributed Generation Two and AMP Energy Green seeking directions on how to resolve difficulties in establishing captivepower projects in Goa, as well as exemptions for power drawl beyond the permissible limit.
  • According to the petitioners, if an open access consumer with a con- tract demand of 10 MW is granted a maximum open access capacity of 6 MW, the maximum amount of electricity that can be drawn from the distribution company (DISCOM) during any time block is only 4 MW.
  • According to the DISCOM, an open access consumer can only request maximum open access for capacity up to its contract demand.
  • The DISCOM also stated that any deviation in the schedule will result in the Electricity Department of Goa levying Deviation Settlement Mechanism (DSM) charges, which will raise the cost of power procurement.
  • Thus, considering all the facts, the Commission concluded that the petitioners did not require an exemption from any provision of the Open Access Regulations, 2017.

Karnataka

KERC Determines Generic Tariff of ₹3.26/kWh for Wind Projects in FY 2021-22

  • The Karnataka Electricity Regulatory Commission (KERC), in a recent order, has instructed that the generic tariff for wind power projects will continue to be INR 3.26/kWh as determined in the earlier order dated February 27, 2019.
  • The validity period of the order is from April 1, 2021, to March 31, 2022.
  • The Commission had mandated wind power procurement by distribution companies only through a competitive bidding process through its order dated June 5, 2018.

APTEL Allows Recovery of Liquidated Damages and Denies Tariff Cut for a Delayed Solar Project

  • Appellate Tribunal for Electricity (APTEL) with its order dated 12 August 2021 has directed a solar developer to pay liquidated damages to the Gulbarga Electricity Supply Company (GESCOM) for the delay of 31 days in the commissioning of a 40 MW solar power project in Karnataka.
  • According to APTEL, Azure Photovoltaic, the solar developer, was entitled to a tariff of INR 6.96/kWh to supply power to GESCOM from the project’s commercial operation date (COD).
  • APTEL also directed the DISCOM to pay the solar developer the differential tariff between INR 6.96 /kWh and INR 6.51/kWh from the commercial operation date until it starts paying INR 6.96 /kWh.

KERC Determines Tariff In Respect of Solar Power Projects (Including Rooftop Solar) For FY 2022 to FY 2023

  • Karnataka Electricity Regulatory Commission (KERC) has issued order dated 18 August 2021 for setting the generic tariff for solar power pro- jects (including rooftop solar projects) for FY 2022 and FY 2023.
  • The commission hereby decides to adopt the following capital cost:

Rooftop solar

INR/kW

Domestic consumers up to 10 kW

46,500

Other consumers (1 kW – 2 MW)

35,046

Ground mounted solar

INR 350.46 lakhs/MW

  • The commission hereby determines the generic tariff as follows:

Rooftop solar

INR/kW

Domestic consumers up to 10 kW

4.02 (without capital subsidy) and 2.67 (with capital subsidy)

Other consumers (1 kW – 2 MW)

3.19

Ground mounted solar of less than 5 MW capacity

3.10

  • The above tariff will apply to all new solar projects for which PPAs are signed between April 1, 2021 – March 31, 2023.

Maharashtra

MERC allowed Captive Power Producers to complete their Renewable Purchase Obligation backlog.

  • Maharashtra Electricity Regulatory Commission (MERC) in its order dated 6 August 2021 allowed captive power producers to fulfil their renewable purchase obligation (RPO) backlog for the financial years starting 2015 to 2020, by 31 March 2022.
  • For the operational duration of the regulations, MERC has set a 9% RPO target for captive power plants commissioned before April 1, 2016. The overall aim for projects starting after this date would be the target for the year in which the project was commissioned.
  • In this order the tariff of the agricultural pump set category has been increased by INR 0.09 /kWh, and the cross-subsidy surcharge for the category has been reduced from 14.41% to 12.05%.

Maharashtra DISCOM Directed to Clear Dues of Four Wind Energy Generators

  • The Maharashtra Electricity Regulatory Commission (MERC) has ordered MSEDCL to pay for energy injected into the grid by four wind energy projects- Enel Wind Project (Amberi), IOTA MTech Power, Parmarth Wind Energy, and Sidhidata Power.
  • MERC has ordered the state DISCOM to clear payments to wind ener- gy generators within one month and to specify the date of payment. It also stated that if it fails to meet its obligations, penal interest of 1.25% per month will be charged on the outstanding late payment surcharge.

Tamil Nadu

APTEL directs DISCOM and Load Despatch Centre to Compensate for Curtailment of Solar Power

  • Appellate Tribunal for Electricity (APTEL) in its order dated 2 August 2021, has directed Tamil Nadu State Load Despatch Centre (TNSLDC) and The Tamil Nadu Generation and Distribution Corporation (TANGEDCO) to pay compensation to developers on solar power curtailment in Tamil Nadu during March 1 to June 30, 2017.
  • APTEL directed the TNSLDC and TANGEDCO to pay the compensation jointly within 60 days from the date of the order.
  • The order states that TNSLDC and TANGEDCO have to pay compensation for 1,080 blocks at the rate of 75% of PPA tariff per unit along with the 9% interest between March 2017 to October 2020.
  • The National Solar Energy Federation of India (NSEFI) had filed a petition before APTEL, challenging the validity of TNERC Order dated 25 March, 2019, regarding the curtailment of power by the DISCOMs in Tamil Nadu.
  • In this order, TNERC had rejected developers’ request for payment of deemed generation charges for the loss of power generation units due to backing down instructions.

Consultative Paper on Generic Tariff Order for Grid Interactive Solar Energy generation System (GISS)

  • Tamil Nadu Electricity Regulatory Commission (TNERC) has issued a Consultative Paper on Generic Tariff order for Grid Interactive Solar Energy generation System.
  • The commission proposed capital cost for solar PV system are as follows:

Capacity Range

INR/kWh

1- 10 kW

41,000

11- 100 kW

38,000

101 – 500 kW

36,000

501 – 999kW

32,000

  • The commission proposed Levelized cost of energy for solar PV systems are as follows:

Capacity Range

INR/kWh

1- 10 kW

3.99

11- 100 kW

3.70

101 – 500 kW

3.51

501 – 999kW

3.12

Draft Regulation on TNERC (Grid Interactive Solar PV Energy Generating Systems) Regulations, 2021

  • Tamil Nadu Electricity Regulatory Commission (TNERC) has issued a draft regulation on Grid Interactive Solar PV Energy Generating Systems, Regulations 2021.
  • The following important highlights from the draft are mentioned below:

Category

Net-metering

Net billing or net feed-in

Gross Metering

Eligible consumers

Only for domestic consumers

All consumers

All consumers

Project capacity limit MW

Up to 100% of the sanctioned load

Up to 100% of the sanctioned load

1 kW to 999 KW capacity.

Percentage of DTR grid penetration

100%

100%

50%

  • Banking is permitted until the end of the fiscal year. Also, there will be no compensation for power that has been banked but has not been used.
  • Behind-the-meter systems and systems with storage are also allowed.

Telangana

TSERC Approves PSAs for Solar and Solar Bundled with Thermal Power

  • Telangana State Electricity Regulatory Commission (TSERC) with its order dated 25 August 2021 has approved six power sale agreements (PSAs) dated 18 June 2016, between state distribution companies (DISCOMs) and NTPC for 400 MW of solar power bundled with thermal under Phase-II, Tranche-I of the National Solar Mission for 25 years.
  • TSERC had approved the tariff of INR 5.19/kWh for 50 MW under the domestic content requirement (DCR) category and 350 MW underopen category at INR 4.66/kWh (for 100 MW) and at INR 4.67/kWh (for 250 MW) for 25 years.
  • TSERC also approved another PSA signed between the DISCOMs and the Solar Energy Corporation of India (SECI) for 400 MW solar powerunder ISTS program Tranche-VI at INR 2.78 /kWh for 25 years.
  • The reason for the delay in seeking final consent for the NTPC PSAs for bundled power is that the CERC took a long time to adopt the re-spective tariffs that NTPC discovered through the competitive bidding process.

Uttarakhand

UERC proposed a draft on Generic Tariff of Solar PV Projects

  • Uttarakhand Electricity Regulatory Commission (UERC) has issued a draft proposal to review the benchmark capital cost and generic tarifffor solar photovoltaic (PV), solar thermal, and grid-interactive rooftop solar and small solar PV projects. Which is applicable for the FY 2021- 22 and onwards until reviewed by UERC.
  • Existing and proposed generic tariffs for solar PV plants and solar thermal plants are:

Particulars

Solar PV Plant (INR /kWh)

Solar Thermal Plant (INR/kWh)

FY 2019-20

FY 2021-22

FY 2019-20

FY 2021-22

Gross Tariff

4.49

4.04

14.24

13.69

Less : Accelerated Depreciation Benefit

0.24

0.16

0.80

0.76

Net Tariff

4.25

3.88

13.44

12.93

  • UERC has proposed to adopt the benchmark capital cost as INR 120 million/MW for solar thermal projects to be commissioned on or after 1 April 2021.
  • UERC also proposed the Gross tariff (without subsidy) for rooftop and small solar PV projects as given below:

Category

Gross tariff (without subsidy in INR/kWh)

up to 10 kW

5.04

above 10 kW up to 100 kW

4.58

above 100 kW to 500 kW

4.26

above 500 kW to 1 MW

4.07

About Us

JMK Research & Analytics is a boutique consultancy firm providing research and advisory services to Indian and International clients across solar, wind and e-mobility segment.

Based on our in-depth sector experience, strong industry network, we  provide key insights and detailed industry information which helps our clients develop successful business models and market strategies.

Contact Us

JMK Research & Analytics

27/ 2C, Palam Vihar, Gurugram, Haryana- 122017

Phone: +91-7428306655
Email: contact@jmkresearch.com

Subscription

Our newsletter covers-

  1. Policy and regulatory updates
  2. Project and tender updates
  3. Financing updates
  4. Price trends

For subscription please fill in the form here

Follow Us