Monthly RE Update – December 2022

Monthly RE update – December 2022

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Tenders

In December 2022, 17 new renewable energy (RE) tenders with a cumulative capacity of 6,587 MW were issued.

  • Adani Energy issued a tender of 1500 MW (750 MW + additional 750 MW under Green Shoe Option) of Round-the-Clock (RTC) power from RE projects, complemented with firm power from any other source in India.
  • REC Power Development Corporation Limited (RECPDCL) issued a tender for setting up of 1250 MW solar power projects in India. In addition, RECPDCL floated a 500 MW solar tender in India.
  • Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RRVUNL) issued a solar tender of 810 MW in Rajasthan.
  • MSEDCL issued a total of 1600 MW RE tenders in Maharashtra this month.

Details of new RE tenders issued in December 2022

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

Adani, 1500 MW, RTC Power from RE Projects, Pan India, Dec 2022

Hybrid

Project Development

1500

EMD – INR 0.5 million/MW/project

PBG – INR 1 million/MW/project


24 months

1st-Feb-2023

RECPDCL, 1250 MW, Solar, Pan India, Dec 2022

Utility Scale Solar

Project Development

1250

EMD – INR 0.4 million/MW

PBG – INR 0.8 million/MW

22%

18 months

26th-Dec-2022

RRVUNL, 810 MW, Solar, Rajasthan, Dec 2022

Utility Scale Solar

Project Development

810

EMD – INR 720 million

PBG – INR 1440 million

19%

15 months

22nd-Feb-2023

GAIL, 600 MW, Solar (EPC), Gujarat, Dec 2022

Utility Scale Solar

EPC 600

EMD – INR 2.5 million

15 months

7th-Dec-2022

MSEDCL, 550 MW, Solar, Maharashtra, Dec 2022

Utility Scale Solar

Project development

550

EMD – INR 0.1 million/MW

PBG – INR 0.5 million/MW

Ceiling Tariff – INR 3.20/kWh

19%

12 months

16th-Jan-2023

RECPDCL, 500 MW, Solar, Pan India, Dec 2022

Utility Scale Solar

Project Development

500

EMD – INR 0.4 million/MW

PBG – INR 0.8 million/MW

22%

18 months

23rd-Dec-2022

MSEDCL, 450 MW, Solar, Maharashtra, Dec 2022

Utility Scale Solar

Project Development

450

EMD – INR 0.1 million/MW

PBG – INR 0.5 million/MW

Ceiling Tariff – INR 3.20/kWh

19%

12 months

30th-Jan-2023

MSEDCL, 300 MW, Wind, Maharashtra, Dec 2022

Wind

Project Development

300

EMD – INR 0.12 million/MW/project

Ceiling Tariff – INR 2.65/kWh

6 months

6th-Jan-2023

MSEDCL, 300 MW, Solar (Under KUSUM scheme Component A), Maharashtra, Dec 2022

Small Scale Solar

Project Development

300

EMD – INR 0.1 million/MW

PBG – INR 0.5 million/MW

Ceiling Tariff – INR 3.30/kWh

15%

12 months

9th-Jan-2023

SJVN, 125 MW, Solar (EPC), Bihar, Dec 2022

Utility Scale Solar

EPC

125

EMD – INR 24.4 million

15.5 months

17th-Jan-2023

SJVN, 100 MW, Solar (O&M), Gujarat, Dec 2022

Utility Scale Solar

O&M

100

EMD – INR 18.3 million

24th-Jan-2023

IMC, 60 MW, Solar (EPC), Madhya Pradesh, Dec 2022

Utility Scale Solar

EPC

60

EMD – INR 15 million

15 months

16th-Dec-2022

PEDA, 10 MW, Rooftop Solar, Punjab, Dec 2022

Rooftop Solar

RESCO

10

EMD- INR 0.9 million/MW

PBG – INR 1 million/MW

15%

6 months

30th-Jan-2023

DWSS 8.7 MW, Solar (EPC), Punjab, Dec 2022

Utility Scale Solar

EPC

8.7

EMD- INR 3 million

PBG – 5% of the contract price

15%

2 months

12th-Jan-2023

AAI, 8 MWp, Solar (EPC), Karnataka, Dec 2022

Utility Scale Solar

EPC

8

EMD – INR 0.08 million

4th-Jan-2023

WBSEDCL ,5 MW, Floating solar (EPC), West Bengal, Dec 2022

Floating Solar

EPC

5

EMD – INR 69 million

PBG – 3% of the project cost + GST

12 months

12th-Feb-2023

BHEL, 5 MWp, Solar (O&M), Uttarakhand, Dec 2022

Small scale Solar

O&M

5

EMD- INR 0.04 million

PBG – 5% of the contract value

6th-Jan-2023

PBG: Performance Bank Guarantee

EMD: Earnest Money Deposit

Source: JMK Research

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 with ESS (Tranche VI), Pan India, Nov 2022

Wind Solar Hybrid with ESS

Project Development

1200

EMD – INR 1.23 million/MW

PBG – INR 1.84 million/MW

50%

24 months

12th-Jan-2023

GUVNL, 600 MW, Solar (Phase XVII), Gujarat, Sep 2022

Utility Scale Solar

Project Development

600

EMD – INR 0.4 million/MW

PBG – INR 0.94 million/MW

17%

15 months

23rd-Jan-2023

GUVNL, 500 MW, Solar Phase (XVIII), Pan India, Oct 2022

Utility Scale Solar

Project Development

500

EMD – INR 0.4 million/MW

PBG – INR 0.8 million

17%

18 months

7th-Jan-2023

GUVNL, 300 MW, Wind (Phase IV), Gujarat, Oct 2022

Wind

Project Development

300

EMD- INR 1 million/MW

PBG – INR 2 million/MW

22%

24 months

9thJan-2023

GUVNL, 500 MW with 1000 MWh BESS (Phase-I), Gujarat, Aug 2022

Energy Storage System

Project Development

500 MW with 1000 MWh

EMD – INR 0.74 million/MW

PBG – INR 1.11 million/MW

18 months

6th-Feb-2023

GUVNL, 500 MW, RE with 250 MWh ESS Phase (XV), Gujarat, Jun 2022

RE with Energy Storage System

Project Development

500 with 250 MWh ESS

EMD – INR 1 million/MW

PBG – INR 2.5 million/MW

Wind – 22% Solar – 17% Hybrid – 30%

18 months

6th-Feb-2023

Source: JMK Research

Auctions Completed

In December 2022, auction was completed for 2.74 GW of tenders’, out of which about 2.12 GW capacity was allocated to various RE developers.

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 Tranche XIII, Pan India, Jan 2022

1200

600

22%

24 months

• SJVN- 100 MW (INR 2.90/kWh)• Sactec India- 300 MW (INR 2.95/kWh)• O2 Power- 200 MW (INR 2.95/kWh)

MSEDCL, 500 MW, Wind-Solar Hybrid (Phase II), Maharashtra, Oct 2022

500

500

30%

24 months

• SolarArise-100 MW (INR 2.90/kWh)• SJVN Green Energy- 200 MW (INR 2.95/kWh)• Tata Power Renewable Energy- 200 MW (INR 2.97/kWh)

NTPC, 500 MW with 3000 MWh ESS Storage, Pan India, Jan 2022

500

500

24 months

• Greenko – 500 MW (INR 2.79 million/MWh/year)

TPDDL, 255 MW, Wind Solar Hybrid, Pan India, Aug 2022

255

255

30%

24 months

• Tata Power Renewable Energy- 255 MW (INR 3.00/kWh)

MSEDCL, 250 MW, RE with storage, Maharashtra, Aug 2022

250

250

19%

30 months

• Ayana Renewables- 150 MW (INR 9.0/kWh)• NTPC Renewables– 100 MW (INR 9.0/kWh)

SECI, 30 MW, Floating Solar (EPC), West Bengal and Jharkhand, Jun 2022

30

30

12 months

• Gensol Engineering- 30 MW

Source: JMK Research

Installed Capacity

From January 2022 to November 2022, India added 12.6 GW of solar capacity and 1.81 GW of wind capacity. In the month of November 2022, 342 MW of solar and 51 MW of wind capacity was added.

RE installations in November 2022

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

State wise RE installed capacity in November 2022

Gujarat added the maximum renewable capacity of 172 MW in India followed by Uttar Pradesh (75 MW) in November 2022.

State wise RE installed capacity in November 2022

Source: CEA, JMK Research
Note: RE capacity includes utility scale solar, rooftop solar and off grid/distributed solar, wind, small hydro and Bio power segment

Recently Commissioned RE projects

Developer

Technology

Tender Name

AC Capacity

Tariff (INR/kWh)

State

NTPC

Solar

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

240 MW

Rajasthan

NTPC Limited

Solar

SECI 2000 MW Solar CPSU Tranche I Mar 2019

162.27 MW

Tamil Nadu

NTPC

Solar

SECI 2000 MW Solar CPSU Tranche I Mar 2019

100 MW

Rajasthan

Avaada

Solar

NHPC 2000 MW Solar Pan India Aug 2019

54.4 MW

2.56

Rajasthan

NTPC

Solar

SECI 2000 MW Solar CPSU Tranche I Mar 2019

50 MW

Rajasthan

Cleantech Solar

Solar (Open Access)

42 MW

 

Maharashtra

JSW ReNew Energy

Wind

27 MW

Tamil Nadu

NTPC

Solar

10 MW

Maharashtra

Source: Industry news articles, JMK Research

Other key announcements that were made during the month were:

  • Amazon announced its first wind-solar hybrid projects of 300 MW capacity with Vibrant Energy in India. These projects will be located in Madhya Pradesh and Karnataka.
  • KPI Green Energy is developing solar power projects aggregating 24.9 MWp capacity from various captive customers under the ‘Captive Power Producer (CPP)’ segment. The execution of the said project is being executed through its two arms KPIG Energia and Sundrops Energia. The offtakers include Creative Technologies, General Polytex, General Petrochemicals, Savalia Texturisers, Rushabh Wire Industries, Rajputana Stainless, and VD Global. The project execution has commenced at the site and the entire capacity is scheduled to be completed by March 31, 2023, in various tranches.
  • Jindal Stainless signed a contract with ReNew Power, to develop a 300 MW utility-scale captive renewable energy project for the supply of power to its facility in Jajpur, Odisha. The project is expected to be commissioned by May 2024.
  • ReNew Power has signed a renewable energy agreement of 150 MW with Microsoft India, under which it will produce power from a recently commissioned solar site near Bikaner, Rajasthan.
  • Jakson Green announced that it will deliver a 121 MWp solar power plant on a turnkey EPC basis for Amplus Solar at Bikaner in Rajasthan within 8.5 months of initiation.
  • Tata Power Renewable Energy has received the Letter of Award (LOA) from Tata Power Delhi Distribution (TPDDL), for setting up a 255 MW wind solar hybrid power project in Karnataka. The power generated from the project will be supplied to TPDDL, a joint venture of Tata Power and the Govt. of NCT of Delhi. The letter indicates the current capacity bifurcation as 85 MW solar and 170 MW wind power with the green-shoe option of additional capacity of 85 MW solar and 170 MW wind. The project will be commissioned within 24 months from the PPA execution date.
  • L&T has received an EPC order to establish a 90 MW floating solar power plant at the Omkareshwar dam reservoir, in Madhya Pradesh. This water body is emerging as one of the largest floating solar parks in the world.
  • CleanMax Enviro Energy Solutions has partnered with Meta to invest in 33.8 MW of renewable energy projects in India. CleanMax will own and operate the projects while Meta will purchase 100% of the environmental attributes from the projects. The 33.8 MW of renewable energy project capacity is made up of 21.6 MW of wind and 12.2 MW of solar which is in addition to 32 MW of wind energy jointly announced last year.
  • ACME Group has signed a power purchase agreement (PPA) with GUVNL for 50 MW wind power project in Gujarat. The company was awarded the project under GUVNL’s 500 MW Phase III wind tender.

Monthly RE Generation

Renewable energy sources generated 12,480 MU in December 2022, up by 16.53% from November 2022. Solar and wind generation increased by 2.48% and 67.5% respectively on month-on-month basis in December 2022.

Source-wise Renewable Energy Generation (MU) – India

Source: CEA, JMK Research

Investments/ Deals

In December 2022, more than $877 million was invested in the RE sector. The key investments during the month were:

  • SJVN informed that the financial closure for India’s largest 1000 MW solar power project at Bikaner, Rajasthan has been successfully achieved. Government of India will be funding the viability gap of INR 447 crore. The entire debt of INR 4444 crore ($537million) has been tied up with IREDA. The Project is scheduled to be commissioned in January 2024.
  • Adani Green Energy has raised JPY denominated facility to refinance its existing indebtedness. The facility comprises JPY 27,954 million ($200 million) amortising project loan facility, assessing the 16 years debt structure with door-to-door tenor of 10 years and average tenor of more than 8 years.

Company Name

Deal Type

Sector

Investor

Deal Value

Stakes Acquired

SJVN

Debt

Solar

 IREDA

$537 million

Adani Green Energy

Debt

Solar

MUFG Bank and Sumitomo Mitsui Banking Corporation

$200 million

Tata Power

Equity

Renewable

$120 million

Inox GFL Group

Equity

Renewable

$18.16 million

Vayudoot Solarfarms

Acquisition

Solar

Aries Renewables

$1.73 million

51%

StrongsunSolar

Equity

Renewable

Mahindra CIA Automotive

$0.29 million

27.35%

Name not disclosed

Acquisition

Wind

Inox Wind

Majority Stake

Source: Industry news articles, JMK Research

Other key announcements that were made during the month were:

  • NTPC is likely to get a strategic investor for its arm NTPC Green Energy by March 2023 which will help the company to raise up to INR 3,000 crore for implementing renewable projects in the country.
  • SAEL along with its group companies Canal Solar Energy Private Limited and Universal Biomass Energy Private Limited has raised INR 740 crore through an issue of non-convertible debentures to unidentified investors. This is the first phase of a fund raise in which it will raise a total of INR 1350 crore. The funds will be utilized to refinance existing debt from lenders who have funded the renewable energy assets of the company which comprise solar and biomass plants. The company has a plan to set up 1 GW of such waste to energy and solar projects across multiple states. The company currently has 25 projects with a mix of waste to energy and ground-mounted solar projects.
  • The Competition Commission of India (CCI) has cleared the proposed acquisition of 100% shareholding of Sembcorp Energy India by Tanweer Infrastructure.
  • Fourth Partner Energy is in discussions with major investment funds to raise about $500 million this financial year. The company plans to raise fresh capital in its next funding round. The company has over 1 GW installed renewable capacity and is looking at taking its installed capacity to 4-5 GW in the next five years.
  • NTPC is planning to sell a 20% stake in its green energy business this fiscal year, expecting to raise up to INR 30 billion. The deal marks the first green transaction by an Indian state company which has drawn interest from investors such as Canada Pension Plan Investment Board (CPPIB), Malaysia’s Petronas and Brookfield.
  • NTPC is also planning to raise INR 500 crore through the issuance of non-convertible debentures (NCDs) on a private placement at a coupon of 7.44% per annum with a maturity period of 10 years 3 months 30 days on April 15, 2033.
  • The World Bank has announced that it has signed agreements with the Government of India (GoI) and SECI for a $150 million IBRD loan, a $28 million Clean Technology Fund (CTF) loan and a $22 million CTF grant. The $150 million loan from the International Bank for Reconstruction and Development (IBRD), has a 5-year grace period, as well as a maturity of 25 years. The $28 million loan from the Clean Technology Fund (CTF) has a 10-year grace period, and also a maturation of 40 years. The $22 million is an interest-free CTF grant.
  • Tata Power has received a INR 450 crore “sustainable trade finance facility” from MUFG Bank of Japan to fund its solar projects in India. MUFG extended this financing to fund the procurement of TPKL’s two solar power projects – a 100 MW project in Parthur, Maharashtra and a 120MW project in Mesanka, Gujarat. It is the first sustainable trade finance facility offered by MUFG in India and TPKL will utilise the funds towards generating renewable energy capacity.
  • Petronas, Sembcorp Industries and JSW Neo Energy are considering joining the race to acquire Continuum Green Energy (India) at an enterprise value of $1.5 billion. The companies may submit non-binding bids next month for the deal, which is expected to have an equity value of around $600 million. Others in the fray are BP Plc, Statkraft and I Squared Capital.
  • Inox Wind promoters have infused an amount of INR 623 crore in the company and the fund was used for repaying advances received from Gujarat Fluorochemicals Ltd (GFL). The board had approved raising up to INR 800 crore by way of issuance of 0.01% non-convertible non-cumulative participating redeemable preference shares on private placement basis to the promoter/ promoter group entities. The fund infusion of INR 623 crores by promoters along with INR 740 crores recently raised through the IPO (initial public offer) of Inox Green Energy Services Limited will help the company reduce its consolidated interest-bearing liabilities sustainability.
  • Inox wind announced that its arm Inox Green Energy Services have paid debts of INR 411 crore. The corporate guarantees given by Gujarat Fluorochemicals Ltd have also got reduced to that extent. Inox Green Energy Services Ltd (IGESL) is one of India’s leading wind power operations and maintenance (O&M) service providers. Inox Wind’s manufacturing capacity stands at 1,600 MW per annum.

GTAM Traded Volume

The IEX and PXIL together traded a total of 206 MU in GTAM in December 2022, which is 34.6% higher than the volume traded in November 2022. The average trade price in IEX-GTAM for December 2022 was INR 5.74/kWh, while for PXIL it was INR 5.54/kWh. This is about 8% and 13% higher than the previous month’s prices.

GTAM traded volume and average traded price trend

Source: IEX, PXIL, JMK Research

Key Market Updates

Solar Manufacturing

Chiripal Group launches solar manufacturing company Grew Energy

Chiripal Group has launched Grew Energy Pvt Ltd, a solar component manufacturing company under Chiripal Renewables. Over the next four years, the company is planning to build a manufacturing capacity of 4 GW solar modules, 3 GW solar cells, and 300 tonnes/day of Tempered Glass. The manufacturing will be equipped with its first 2 GW of fully automated unit in Rajasthan while the other manufacturing facilities will be set up across India in a phased manner.

BVG to set up 2 GW solar module manufacturing facility

Bharat Vikas Group (BVG) is planning to set up 2 GW of module manufacturing capacity in North India, the first phase of which will be a 500 MW fully automated module line with equipment sourced from Spain’s Mondragon Assembly. The company expects the 500 MW module line to become operational by September 2023.  

Waaree Energies expands its solar module manufacturing capacity to 12 GW 

Waaree Energies has reached a cumulative solar module manufacturing capacity of 12 GW at its plants in Surat and Umbergaon in Gujarat.

Adani Solar introduces large-sized monocrystalline silicon ingot for solar cells

Adani Solar has introduced India’s first large-sized monocrystalline silicon ingot capable of producing M10 & G12 wafers. The monocrystalline ingots will drive indigenization to produce renewable electricity from Silicon-based PV modules with efficiencies ranging from 21% to 24%. Adani Solar is the first company in India to complete the backward integration of ingot line infrastructure in a record time of about 7 months. The new manufacturing line will produce silicon ingots exclusively for its solar wafers, cells and modules production. The company’s initial production has already begun, and it intends to add 2 GW of ingot and wafer capacity by the end of 2023 and will be scaled up to 10 GW by 2025.

PLI Scheme

ReNew Power may apply for PLI scheme for solar modules

ReNew Energy Global Plc is planning to apply for the second tranche of the production linked incentive (PLI) scheme for solar modules. The company is building a 6 GW capacity of solar modules. In September 2022, the union cabinet approved the second tranche of PLI scheme worth INR 19,500 crore for domestic manufacture of solar modules that could lead to savings of INR 1.37 trillion in imports. SECI recently invited bids for the PLI. The last date for submitting bids is 11 January 2023.

Government has approved 717 applications under PLI schemes to boost manufacturing

The government has notified Production Linked Incentive (PLI) schemes for 14 sectors through the concerned ministries and while these schemes are in various stages of implementation approvals to 717 applications have been accorded under all the 14 PLI Schemes so far. The outlay of schemes is INR 1.97 lakh crore to enhance India’s manufacturing capabilities and exports. The key sectors covered under the schemes include Electronic or Technology Products, White Goods (ACs and LEDs), Food Products, Textile Products, MMF segment and technical textiles, High efficiency solar PV modules, Advanced Chemistry Cell Battery, and Drones and components etc.

Module manufacturing capacity of 8.7 GW to be commissioned by 2024 under solar PLI scheme

The government has issued letter of awards to three successful bidders in Nov – Dec 2021 for setting up 8.7 GW of fully integrated solar module manufacturing units under tranche I of the PLI scheme for High efficiency Solar PV modules. The manufacturing capacity is scheduled to be commissioned by 2024.

Green Hydrogen

Cummins collaborates with Maire Tecnimont to build electrolyzer for GAIL to produce green hydrogen

Cummins will provide technology in collaboration with the EPC player Tecnimont Private Limited (TCMPL), the Indian subsidiary of Maire Tecnimont Group, to build the proton exchange membrane (PEM) electrolyzer, for GAIL to produce green hydrogen at Vijaipur, in Madhya Pradesh. This project is predicted to produce 4.3 tonnes of green hydrogen per day which is equivalent to ~10 MW of power input. Cummins has supplied and commissioned more than 600 electrolyzers worldwide with PEM and alkaline technologies.

Australia’s Cavendish Renewable signs hydrogen electrolyzer agreement with Adani arm

Cavendish Renewable Technology (CRT) has signed a technology development and licensing agreement with Adani New Industries Ltd (ANIL). The agreement includes infrastructure costs for further development of the intellectual property, license fees, and royalties on the successful commercialization of CRT’s state-of-the-art electrolyzer technologies. ANIL is setting up a state-of-the-art vertically integrated 5 GW electrolyzer manufacturing plant in India. With CRT as a technology partner, ANIL will develop green hydrogen electrolyzer technologies to meet the increasing demand in India and the Middle East North Africa region.

NTPC to allot 5 GW for green hydrogen and ammonia out of 60 GW RE target by 2032

NTPC plans to use about 5 GW capacity in green hydrogen and ammonia business out of its 60 GW green portfolio target by 2032. NTPC has already started three pilots on the hydrogen business out of which one is in Leh in which they are setting up a green hydrogen filling station along with solar plants and running hydrogen-based fuel cell buses. This project is expected to start by July or August 2023. The other pilot project is blending green hydrogen and natural gas at its Kawas plant in Gujarat. The third pilot project is located in Madhya Pradesh and is a combination of hydrogen and carbon capture.

India plans $2 billion incentive for green hydrogen industry

India is planning a $2 billion incentive programme for the green hydrogen industry. The INR 180 billion ($2.2 billion) incentive aims to reduce the production cost of green hydrogen by a fifth over the next five years. The current cost in India is INR 300 rupees to INR 400 per kg. Indian companies such as Reliance Industries, Indian Oil, NTPC, Adani Enterprises, JSW Energy and Acme Solar have big plans on green hydrogen.

Adar Poonawalla-backed homiHydrogen to set up 1.5-GW electrolyser manufacturing 

homiHydrogen – a joint venture between h2e Power, BlueBasic AMA Engineering, and Greenstat Hydrogen India will set up an electrolyser manufacturing facility having 1.5 GW per annum capacity in India for domestic and export markets. The project is budgeted at $50 million. The venture will manufacture all four types of electrolysers – alkaline, AEM, PEM and SOE – in India. homiHydrogen will start production in 2023 and will deliver a 100% ‘Made in India’ product.

Greenzo Energy India invests $50 million for green hydrogen technology in Gujarat

Greenzo Energy India Limited will be setting up a state-of-the-art plant for manufacturing electrolysers and the balance of plant (BOP) for generating green hydrogen with an investment of $50 million in Gujarat. The company has received an investment commitment of $1 million from Real Time Accelerator Fund.

Other Market Updates

Power discoms’ aggregate technical & commercial losses down to 17% in FY22

The Aggregate technical and commercial (AT&C) losses of power distribution utilities declined to 17% in 2021-22 from 22% in the previous year. The reduction in AT&C losses has resulted in a reduction in the gap between the average cost of supply (ACS) and average realisable revenue (ARR). The ACS-ARR Gap (on a subsidy received basis, excluding regulatory income & UDAY grant) has declined from INR 0.69/kWh in FY2021 to INR 0.22/kWh in FY2022. The decline of 5% in AT&C losses and 47 paise in the ACS-ARR Gap in one year is the result of a number of initiatives taken by the Ministry of Power.

Only one-fourth of sanctioned solar power projects took off

The Union government has sanctioned the development of solar projects with a capacity of nearly 39,000 MW but only a fourth have actually been commissioned so far. Under the ‘Scheme for Development of Solar Parks and Ultra Mega Solar Power Projects’, a total of 57 solar parks of aggregate capacity of 39,285 MW were sanctioned until November 2022 but only solar power projects of 10,027 MW have been commissioned in these parks. Some solar parks had been cancelled due to their “slow progress” due to hurdles in acquisition of land with clear title.

SEBI approves stronger framework for green bonds

SEBI decided to strengthen the framework for green bonds by introducing the concept of blue bonds and yellow bonds as new modes of sustainable finance. The concept of blue bonds is related to water management and marine sector while yellow bonds pertain to solar energy and transition bonds as sub-categories of green debt securities.

Hindustan Power Exchange crosses 1 billion units of power trading-mark

Hindustan Power Exchange (HPX), promoted by PTC India, Bombay Stock Exchange, and ICICI Bank, announced that it has crossed 1 billion units (BUs) mark of traded power. The newly formed power trading exchange achieved the milestone in six months of its operations. HPX is now the number two exchange in the country in the segment it launched (Contingency), with total settlement registered on its platform at INR 1250 crore.

Comparing on m-o-m basis, price for global mono PERC modules have decreased by 4% in December 2022.

Solar modules price trends

Source: PVInfoLink, JMK Research

Average prices for domestic modules

JMK Research carried out price survey from domestic suppliers for December 2022 and as per the responses received, the all-inclusive domestic module prices till project site (including freight charges, GST etc) for various categories are: 

  • The price for mono PERC 440 Wp modules was INR 28.25/Wp in December 2022, which is 2.6% lesser than the previous month’s price.
  • The December price of mono PERC 500 Wp modules was INR 31.5/Wp, which is same as the price of modules in November.
  • The price for Polycrystalline 330 Wp modules was INR 27.3/Wp, which is about 1.1% higher than the previous month’s price.

Source: JMK Research

Note: Domestic module prices are all inclusive prices till project site including freight charges, GST, etc

Policies and Regulations

Central

Policy Name

Issuing Agency

Date of Issue

MNRE grants time-extension to solar PV and solar-wind hybrid power projects till March 2024

MNRE

29th-Dec-2022

MNRE grants time extension to solar power projects under Tranche-I, Tranche-II and Tranche-III of CPSU scheme Phase II till September 2024

MNRE

27th-Dec-2022

CERC declares the normal rates of charges for grid deviations at INR 12/kWh

CERC

26th-Dec-2022

CERC grants interstate electricity trading license to Vibrant Energy

CERC

26th-Dec-2022

Ministry of Law & Justice issues the energy conservation (amendment) act, 2022

Ministry of Law and Justice

19th-Dec-2022

Net Zero emission Bill 2022 passed in Rajya Sabha

MoP

12th-Dec-2022

CERC increased costs related to REC Certificates

CERC

9th-Dec-2022

Government to invest around $30 billion to upgrade grid infrastructure for evacuation of 500 GW green energy by 2030

CEA

7th-Dec-2022

CERC orders MPPMCL & DMRC to compensate ACME Solar under the “Change in Law” event

CERC

30th-Nov-2022

State

Policy Name

Issuing Agency

Date of Issue

HERC notifies wind, hydro & energy storage obligation until FY 2030

HERC

26th-Dec-2022

Delhi High Court suspends renewable energy certificate trading for six weeks

Delhi High Court

20th-Dec-2022

GERC approves lowest tariff of INR 2.84/kWh for GUVNL’s 500 MW (Phase III) Wind tender

GERC

16th-Dec-2022

PSERC issues Renewable Purchase Obligation and its compliance Regulations, 2022

PSERC

12th-Dec-2022

WBERC directed the SLDC to follow CERC Deviation Settlement Mechanism Regulations 2022

WBERC

6th-Dec-2022

APTEL directed TANGEDCO to pay solar developers for excess power consumed at CUF above 19%

APTEL

28th-Nov-2022

Punjab State Electricity Regulatory Commission issued the 10th Amendments draft in Open Access Regulations,2011

PSERC

1st-Dec-2022

BERC approves for the procurement of 600 MW solar power from SECI at a tariff of INR 2.50/kWhBERC1st-Dec-2022

Maharashtra Commission allows BEST to procure 234 MW of Solar Power from SECI at a tariff of INR 2.54/unit

MERC

30th-Nov-2022

Odisha issued its Renewable energy Policy, 2022

Odisha Energy Department

30th-Nov-2022

MERC allows procurement of 500 MW of round-the-clock power

MERC

28th-Nov-2022

MERC grants approval to Tata Power for long term procurement of 225 MW from wind solar hybrid projects

MERC

28th-Nov-2022

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

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

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JMK Research & Analytics

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

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