Monthly RE update – December 2021

Monthly RE update – December 2021

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Tenders

In December 2021, 16 new renewable energy (RE) tenders with a total capacity of 705.39 MW were issued. MSEDCL issued a 500 MW solar tender under PM KUSUM Component C in Maharashtra.

Details of new tenders issued in December 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, 500 MW, Solar (Under PM KUSUM Component-C), Maharashtra, Dec 2021

Small Scale Solar

Project Development

500

EMD – INR 0.1 million/MW; PBG – INR 0.5 million/MW

Ceiling Tariff – INR 2.30/kWh  

19%

9 months

24th-Jan-2022

NVVN, 100 MW, Solar (EPC), Maharashtra, Nov 2021

Utility Scale Solar

EPC with Land

100

PBG – 3% of the contract value

20th-Dec-2021

WBPDCL, 22.5 MW, Floating Solar (EPC), West Bengal, Dec 2021

Floating Solar

EPC

22.5

EMD – INR 30.47 million

PBG – 3% of the project cost plus GST

12 months

24th-Jan-2022

JAKEDA, 20 MW, Rooftop Solar, Jammu & Kashmir, Dec 2021


Rooftop Solar

20


EMD – INR 2 million


3rd-Jan-2022

PEDA, 18 MW, Solar, Punjab and Himachal Pradesh, Dec 2021

Utility Scale Solar

Project Development

18

EMD – INR 0.5 million/MW

PBG – INR 1 million/MW

21%

13 months

30th-Dec-2021

DPL, 8 MW, Solar (EPC) Phase II, West Bengal, Dec 2021

Utility Scale Solar

EPC

8

EMD – INR 7.89 million

PBG – 10% of the project cost pus GST

18.2%

12 months

21st-Jan-2022

GDUC, 7.7 MW, Solar, Gujarat, Dec 2021

Utility Scale Solar

EPC

7.7

EMD – INR 0.05 million

PBG – 5% of the contract charges

18th-Jan-2022

DPL, 7 MW, Solar (EPC) Phase II, West Bengal, Dec 2021

Utility Scale Solar

EPC

7

EMD – INR 6.78 million

PBG – 10% of the project cost plus GST

18.2%

12 months

29th-Dec-2021

KSEB, 5.99 MW, Solar (Under PM KUSUM) (EPC), Kerala, Nov 2021


Small Scale Solar

EPC

5.99

EMD – INR 0.5 million

PBG – 3% of the contract price

8 months

27th-Dec-2021

SECI, 5 MW, Solar (EPC), Tamil Nadu, Dec 2021


Small Scale Solar

EPC

5

EMD – INR 5 million

PBG – 4% of the contract value

9 months

11th-Feb-2022

SAIL, 4 MW, Floating Solar (EPC), West Bengal, Dec 2021

Floating Solar

EPC

4

PBG – 3% of the contract value

12 months

30th-Dec-2021

TSCL, 2 MW, Solar, Tamil Nadu, Dec 2021


Small Scale Solar

EPC

2

EMD – INR 1.43 million

PBG – 2% of the contract value

6 months

29th-Dec-2021

MMRDA, 2 MW, Rooftop Solar, Maharashtra, Dec 2021

Rooftop Solar

RESCO

2

EMD – INR 2.34 million or 3% of the contract value

19th-Jan-2022

MAWS, 1.2 MW, Solar, Tamil Nadu, Dec 2021


Small Scale Solar

EPC

1.2

EMD – INR 0.6 million

12 months


24th-Jan-2022

OREDA, 1 MW, Rooftop Solar, Odisha, Dec 2021

Rooftop Solar

CAPEX

1

EMD – 10% of the ordered value

19th-Jan-2022

Tata Memorial Center, 1 MW, Solar, Punjab, Dec 2021


Small Scale Solar

EPC

1

EMD – INR 0.84 million

PBG – 5% of the contract value

5 months

28th-Jan-2022

PBG: Performance Bank Guarantee

EMD: Earnest Money Deposit

Source: JMK Research

Other announcements during the month were:

  • Avaada Group has issued an expression of Interest (EOI) for manufacturing solar cells and modules for a 5 GW capacity. The company is seeking partners who are willing suppliers for Aluminium frames, Ribbions, EVA Backsheet and Glass for their proposed plant.
  • In addition, SECI has issued EOI for the supply of 1,800 MW (DC) of solar modules (including cells manufactured in India), under the domestic content requirement (DCR) category. Recently SECI was awarded with a capacity of 1200 MW under CPSU Scheme II (Tranche III) for which SECI is in the process of executing the projects. SECI is planning to procure the modules for the projects directly from the manufacturers. The last date for bid submission is 21st January 2022. The modules are expected to be delivered in the FY 2023-24.
  • The government has announced that the Indian Railways is planning to invite tenders for about 40 GW of renewable energy in the next 2 to 3 years. The government also stated that in the previous budget, an investment of $80 billion was announced. Even within the Railway Ministry, a capex of $15 billion is being undertaken that will be completed by March 2022. Around 60% of the goal has already been met.

Date Extensions

Tender Name

Technology

Tender Scope

Capacity (MW)

Other Details

Minimum CUF

Commissioning timeline from PPA signing

Bid Submission Date

SECI, 1200 MW, Wind Solar Hybrid (Tranche V), Pan India, Oct 2021

Wind Solar Hybrid

Project Development

1200

PBG – 1.146 million

30%

18 months

4th-Jan-2022

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

14th-Jan-2022

Source: JMK Research

Auction Completed

1885 MW of RE tenders were auctioned and allotted in December 2021.

Winners in the latest RE auctions

Source: JMK Research

Tender Name

Capacity tendered (MW)

Capacity allotted (MW)

Minimum CUF

Commissioning Timeline

Winners Details

SECI, 1785 MW Solar, Rajasthan, Mar 2021

1785

1785

17%

18 months

NTPC – 500 MW (INR 2.17/kWh); ReNew Solar Power – 600 MW (INR 2.18/kWh); ACME Solar – 375 MW (INR 2.18/kWh); Sprng Energy – 200 MW (INR 2.17/kWh); UPC Renewables – 90 MW (INR 2.17/kWh); Metka EGN – 20 MW (INR 2.17/kWh)

SECI, 100 MW, Solar with 50MW/120 MWh BESS Storage, Chhattisgarh, Sep 2020

100

100

18 months

• Tata Power – 100 MW

Source: JMK Research

Installed Capacity

In November 2021, a combined total of 934.25 MW of solar and wind capacity was added, taking the cumulative RE capacity to 104.03 GW.

RE installations in November 2021

Source: MNRE, JMK Research
Note: Solar includes utility scale solar, rooftop solar and off grid/distributed solar segments

State wise Solar and Wind Installed capacity in November 2021

Rajasthan added the maximum utility scale solar capacity of 585.68 MW in November 2021 followed by Uttar Pradesh (90 MW) and Tamil Nadu (72 MW) while Karnataka installed the maximum wind capacity of 27.3 MW followed by Gujarat (16.2 MW).

In the rooftop solar segment, Haryana installed the most capacity of 48.83 MW followed by Gujarat (45.59 MW) whereas Rajasthan added the maximum off grid/distributed solar capacity of 15.65 MW followed by Karnataka (1.31 MW) in November 2021.

State wise solar and wind installed capacity in November 2021

Source: MNRE, JMK Research

Recently Commissioned RE projects

4 new projects with a total renewable energy capacity of 664.82 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

Ayana Renewable

Solar

SECI 1200 MW Solar ISTS Tranche IV Jun 2019

300

2.54

Rajasthan

ReNew Power Solar

SECI 1200 MW Solar ISTS Tranche VI Pan India June 2019

300

2.71

Rajasthan

NTPC

Solar

SECI 1500 MW Solar CPSU II Tranche II Pan India Aug 2019

49.92

Rajasthan

ITC

Solar

14.9

Tamil Nadu

Source: Industry news articles, JMK Research

Apart from this, in terms of PPA activity:

  • Azure Power has announced that it has signed its largest ever power purchase agreements (PPAs) with SECI for a capacity of 2,333 MW of ISTS connected solar power projects under the 4 GW manufacturing linked projects. Projects developed under this PPA will supply power for 25 years at a fixed tariff of INR 2.42/kWh and will be constructed in Rajasthan. Connectivity approval for these projects is already in place and land is fully identified and under acquisition. The commissioning of these projects is scheduled in a phased manner with 1,000 MW by November 2024, another 1,000 MW by November 2025 and the remaining 333 MW by November 2026.
  • In addition, Azure Power has received the Letter of Award (LOA) for its second wind solar hybrid power project of 200 MW from MSEDCL to supply power for 25 years at a fixed tariff of INR 2.62/kWh. This hybrid project includes the development of 133 MW solar and 67 MW wind capacity within a period of 18 months from the signing of PPA. Solar capacity for the project will be set up in Rajasthan, while the wind capacity will be in Maharashtra.
  • Tata Power has also received a Letter of Award (LoA) from Maharashtra State Electricity Distribution Company Limited (MSEDCL) to build a 300 MW wind-solar hybrid power generation capacity under MSEDCL’s 500 MW wind-solar hybrid tender. The project is expected to be completed in 18 months from the signing date of the power purchase agreement (PPA). In addition, Waaree Renewable Technologies has received a letter of award (LoA) for an EPC contract to build a 140 MW DC solar power plant in Gujarat from an India-focused renewable energy company.
  • West Central Railways has signed a Power Purchase Agreement (PPA) with Rewa Ultra Mega Solar Limited (RUMSL) for 400 MW of solar power for traction utility. The solar power plants, which will be developed in Madhya Pradesh’s Agar, Shajapur, and Neemuch, will have a capacity of 1500 MW and are expected to be commissioned by 2023. Solar energy tariffs per unit have also been set at INR 2.14 to INR 2.259/kWh.
  • The Ladakh Power Development Department (PDD) has signed a power purchase agreement (PPA) with the Solar Energy Corporation of India (SECI) for the purchase of 50 MW DC solar power in Leh, with battery storage under the Prime Minister’s Development Package (PMDP)-2015. PDD would purchase the power generated by this project at INR 2.22/kWh.
  • NHPC is planning to build new hydro and solar projects of more than 27,000 MW capacity in nine states and Nepal. The new capacities would come up in Uttar Pradesh, Bihar, Odisha, Rajasthan, Tamil Nadu, Kerala, Maharashtra, Andhra Pradesh and Odisha.

Monthly RE Generation

Renewable Energy sources generated 9696.33 MU in December 2021, an increase of 10.35% from November 2021. Taking into account the last month’s RES (Renewable Energy Sources) generation, Solar energy accounts for 55% of RES generation, followed by wind at 36% and other renewable energy sources (including biomass) at 9% during December 2021.

Source-wise Renewable Energy Generation (MU) – India

Source: CEA, JMK Research

monthly RE

Investments/ Deals

In December 2021, about $1852.79 million was invested in the RE sector. The Key investment during the month were:

  • Reliance New Energy Solar Ltd (RNESL), a wholly-owned subsidiary of Reliance Industries Ltd (RIL), has completed the acquisition of 100% shareholding of REC Group for an enterprise value of $771 million.
  • In addition, RIL has signed a $736 million green loan to fund its acquisition of REC Solar Holdings. The debt funding was extended by Australia and New Zealand Banking Group (ANZ), Credit Agricole, DBS Bank, HSBC and Mitsubishi UFJ Financial Group (MUFG).
  • REC Ltd has signed an agreement with KfW Development Bank to avail $169.5 million to the power finance sector and renewable energy projects.

Company Name

Deal Type

Sector

Asset Acquired

Investor

Deal Value

Stakes Acquired

Other Details

REC Solar Holdings

Acquisition

Solar

Reliance New Solar Energy

$771 million

100%

Reliance Industries (RIL)

Debt

Solar

ANZ, Credit Agricole, DBS Bank, HSBC, and MUFG

$736 million

This green loan has been raised by RIL to fund the acquisition of solar panel maker, REC Solar Holdings

REC Limited

Debt

Solar

KfW Development Bank

$169.5 million

Faradion Limited

Acquisition

Sodium-ion battery

Reliance New Energy Solar Limited (RNESL)

$127.42 million

100%

RNESL will acquire 88.92% of Faradion’s shares for ~$113.32 million in early January 2022. The remaining 11.08% shares will be acquired within three years for around ~$14.10 million

Focal Energy

Acquisition

Solar

55 MW

Virescent Infrastructure

$46.73 million

The solar assets are located in Madhya Pradesh, Punjab, and Rajasthan

Acme

Acquisition

Solar

250 MW

Ayana Renewables

100%

The 250 MW solar plant is located in Rajasthan

Clean Max Auriga Power LLP

Equity

Renewables

 

Cipla

33%

The investment is in line with the company’s commitment to comply with regulatory requirements for being a captive user under electricity laws

Renew Sunlight Energy (Renew Power)

Equity

Solar

Mahindra & Mahindra

$2.14 million

31.2%

Source: Industry news articles, JMK Research

Other key announcements that were made during the month were:

  • The Rajasthan government has received INR 1.94 lakh crore investment from multiple investors for renewable energy, mining, and pharma sectors. The state signed memoranda of understanding (MoUs) worth INR 1,27,459 crore and letters of intent (LoI) to the tune of INR 67,379 crore. JSW Future Energy is planning to invest INR 40,000 crore in Jaisalmer to build a 10,000 MW renewable energy project. Similarly, Greenko Energies is planning to invest INR 30,000 crore in integrated renewable energy storage project, and Adani Green Energy has also proposed an INR 20,000 crore renewable energy project of 4,000 MW in Jaisalmer, Barmer, Jalore and Jodhpur.
  • Inox Wind has announced that the board member of its subsidiary company Inox Green Energy Services Ltd (IGESL) has approved fund raising of INR 500 crore through an initial public offering (IPO) of its equity shares.
  • The US International Development Finance Corporation (DFC) has approved debt financing for thin-film module manufacturer First Solar for up to $500 million. The DFC funding will help First Solar build a 3.3 GW/year vertically integrated solar module manufacturing facility in Tamil Nadu, India. The company expects to achieve a global manufacturing capacity of 16 GW of in 2024.
  • Dalmia Cement Ltd has decided to invest INR 250 crore in a solar power project in order to supply power in Jharkhand. The plant’s capacity is expected to range between 40-50 MW. Dalmia Cement has set a goal of increasing its renewable energy consumption by 4 times by 2030 as compared to 2015. The company has a current renewable energy share of around 7%.
  • The Competition Commission of India (CCI) has approved the acquisition of shareholding in Sterling and Wilson Renewable Energy Ltd by Reliance New Energy Solar Ltd. Wherein Reliance New Energy is planning to acquire 40% of the total voting equity share Capital. However, the acquisition might go up to 51.07% of Sterling and Wilson Renewable Energy’s equity share capital.
  • Linde India’s Board of Directors has approved a total capital expenditure investment of INR 287 million to procure renewable energy (solar and wind) for self-consumption. To qualify as a captive consumer of the power, the company will enter into joint venture agreements with the identified solar power generating companies and form special-purpose vehicles (SPVs).
  • Sterling & Wilson has announced that its board of directors has approved the allotment of INR 29.3 million equity shares to Reliance New Energy Solar Limited (RNESL) at a price of INR 375 per share, aggregating to INR 10.99 billion. RNESL will hold 15.46% of the firm’s total paid-up equity share capital
  • Bharat Petroleum Corporation (BPCL) has announced that it has signed a Memorandum of Understanding (MoU) with SECI to develop a 10 GW of renewable energy capacity including solar, wind, electric mobility, hydrogen and waste-to-energy segments by 2040. The company will begin by setting up a 1 GW of renewable energy portfolio by 2025.

Comparing on m-o-m basis, price for global mono PERC modules and mono PERC India modules have decreased by 1.09% and 2.51% respectively in December 2021.

Solar modules price trends

Source: PVInfoLink, JMK Research

Note: India Prices are FOB prices

Policies and Regulations

Central

Policy Name

Issuing Agency

Date of Issue

CERC States that Service Tax Laws and GST Covered Under ‘Change in Law’ Clause

CERC

30th-Nov-2021

CERC has ruled that Change in Law Rules cannot supersede the provisions of the PPA

CERC

6th-Dec-2021

CERC proposes to grant Category I trading licence to SJVNL

CERC

6th-Dec-2021

Supreme court has made application of additional surcharge as illegal in captive/group captive scheme

Supreme Court

10th-Dec-2021

MNRE issues clarification regarding change in GST rates on installation of Rooftop Solar under RTS Ph-II

MNRE

13th-Dec-2021

MNRE revised/simplified guidelines for implementation of PM-KUSUM

MNRE

14th-Dec-2021

MNRE released notification fixing PBG and EMD amount of all RE tenders

MNRE

16th-Dec-2021

CERC has issued “Connectivity and General Network Access to the inter-State Transmission System Regulations”, 2021 for comments from stakeholders

CERC

16th-Dec-2021

Eden renewables approach CERC for declaring Safeguard duty imposition as a change in law event

CERC

16th-Dec-2021

Ministry of Power (MoP) issued draft “Electricity (Late Payment Surcharge and related matters) rules, 2021”

MoP

20th-Dec-2021

APTEL ruled that Solar Power Park Developer (SPPD) Can Stop Generators from Injecting Excess Energy into the Grid

APTEL

21st-Dec-2021

CERC Adopts Tariff for the 1110 MW Wind-Solar Hybrid Power Projects

CERC

21st-Dec-2021

CERC approves tariff for 190 MW ISTS connected Wind Power Project at  Nokh Solar Park

CERC

21st-Dec-2021

CERC approves tariff for SECI 970 MW ISTS connected Wind Power Projects

CERC

22nd-Dec-2021

Ministry of Power (MoP) issued draft amendments in the guidelines for short-term procurement of Power by Distribution Licensees

MoP

22nd-Dec-2021

MoP have decided to constitute CCIE committee for timely settlement of disputes between CPSU Power Project developers and Contractors

MoP

29th-Dec-2021

Updated List – I under ALMM order for Solar PV Modules

MNRE

30th-Dec-2021

CERC directed Tata Power and NTPC to settle change in law claims themselves

CERC

31st-Dec-2021

State

Policy Name

Issuing Agency

State

Date of Issue

DERC has issued the order to increase additional surcharge cost for open access consumers in Delhi

DERC

Delhi

22nd-Dec-2021

KERC granted commissioning deadline extension to three solar projects on the ground of ‘force majeure’ events

KERC

Karnataka

30th-Dec-2021

MERC rules in favour of MSEDCL and provides approval for signing of PPA between MSEDCL and successful bidders of 111 MW tender

MERC

Maharashtra

3rd-Dec-2021

MERC approves tariff for procurement of power from 250 MW Dondaicha Solar Power Park

MERC

Maharashtra

17th-Dec-2021

PSERC determines the additional surcharge in tariff for open access consumers in the state

PSERC

Punjab

13th-Dec-2021

RERC identifies imposition of BCD for inverters and modules as “Change in Law” events for 1070 MW SECI linked tender

RERC

Rajasthan

13th-Dec-2021

RERC finalized the amendments in State Renewable Energy Obligations, 2021

RERC

Rajasthan

14th-Dec-2021

TNERC fixed the order of adjustment priority of different sources of energy for an open access consumer

TNERC

Tamil Nadu

1st-Dec-2021

TNERC has approved TANGEDCO’s proposal to procure 500 MW of solar power from projects with capacity in the range of 1 MW to 2 MW under Component A of the PM-KUSUM

TNERC

Tamil Nadu

28th-Dec-2021

TSERC ruled that Open Access consumers to pay an additional surcharge of INR 0.96/kWh

TSERC

Telangana

24-Dec-2021

UPERC Defined the Peak Hours for Banking and Withdrawal of Energy by Captive/Open Access IPP in the State

UPERC

Uttar Pradesh

1st-Dec-2021

WBERC Does Not Agree to Annual Capping of RE Capacity Addition under Net Metering

WBERC

West Bengal

1st-Dec-2021

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