Monthly RE update – February 2022

Monthly RE update – February 2022

Tenders

  • In February 2022, 9 new renewable energy (RE) tenders with a total capacity of 1634 MW were issued. MGVCL issued 1000 MW rooftop solar tenders in Gujarat under Phase-II of grid connected rooftop solar scheme.
  • SECI Issued an EPC Tender for 100 MW Floating Solar Project in Jharkhand.

Details of new tenders issued in February 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

MGVCL, 700 MW, Rooftop Solar, Gujrat, Feb 2022

Rooftop Solar  

CAPEX

700

EMD –INR 22.6 millionPBG – 3% of the total system cost

16%

12 months after the date of issuance of letter of award (LoA) or 24 months from date of Sanction

2nd-Mar

MSEDCL, 445 MW, Solar (Under KUSUM component A), Maharashtra, Feb 2022

Small Scale Solar  

Project Development

445

EMD – INR 0.1 million/ MW

PBG – INR 0.5 million/ MW

Ceiling Tariff – INR 3.10/ kWh

15%

12 months

 17th-Mar

MGVCL, 300 MW, Rooftop Solar, Gujrat, Feb 2022

Rooftop Solar 

CAPEX

300

EMD –INR 15.2 million PBG – 3% of the total system cost

16%

12 months

7th-Mar

SECI, 100 MW, Solar (EPC), Jharkhand, Feb 2022

Utility Scale Solar 

EPC

100

EMD – INR 70 million PBG – 10% of the contract value

21.6%

18 months

31st-Mar

TSREDCO, 50 MW, Rooftop Solar, Telangana, Feb 2022

Rooftop Solar   

CAPEX

50

PBG – INR 0.5 million/ MW

16%

6 months

28th-Mar

TPCODL, 20 MW, Rooftop Solar, Odisha, Feb 2022

Rooftop Solar

CAPEX

20

EMD – INR 0.2 million

PBG – 5% of the cost discovered

6 months

11th-Mar

CEL, 10 MW, Solar (EPC), Gujarat, Feb 2022

Utility Scale Solar

EPC

10

EMD- INR 0.5 million

25%

9 months

11th-Feb

DPL, 7 MW, Solar (EPC), Phase 1, West Bengal, Feb 2022

Utility Scale Solar

EPC

7

EMD – INR 7.1 million

PBG – 3% of the contract value

12 months

22nd-Feb

CREST, 2 MW, Floating Solar (EPC), Chandigarh, Feb 2022

Floating Solar 

EPC

2

EMD – INR 2.4 million

PBG – 3% of the contract value

5 months

26th-Feb

PBG: Performance Bank Guarantee

EMD: Earnest Money Deposit

Source: JMK Research

Other announcements during the month were:

  • SECI is likely to retender the round-the-clock (RTC) tender of 2.5 GW RE capacity combined with thermal because bidders failed to match the lowest tariff. In October 2021, Hindustan Thermal Projects was declared the winner and was allocated a capacity of 250 MW at a rate of INR 3.01/kWh. Other bidders were Greenko, with a tariff of INR 3.18/kWh for a capacity of 1001 MW, ReNew with a tariff of INR 3.19/kWh for 600 MW, Power Mech with a tariff of INR 3.30/kWh for 550 MW, and JSW Neo and Techno Electric with tariffs of INR 3.45/kWh for 600 MW and 500 MW respectively.
  • SECI has released a notice regarding cancellation of the 50 MW solar project with land at Tamil Nadu, India.
  • PFC Consulting Limited has invited proposals for setting up of transmission projects on Build, Own, Operate and Transfer (BOOT) to evacuate 40 GW of power from renewable energy zone (REZ) in Rajasthan
  • REC Power Development and Consulting Limited has also invited proposals for setting up of transmission projects through tariff based competitive bidding (TBCB) on Build, Own, Operate and Transfer (BOOT) to evacuate 20 GW of power from renewable energy zone (REZ) in Rajasthan and transmission scheme for solar energy zone in Gadag (1500 MW) in Karnataka.
  • Kerala State Electricity Board (KSEB) will soon invite bids for 100 MW each wind and floating solar projects in 10 dams. Adani Power, Tata power and NTPC have participated in the tender. The power tariff is capped at INR 4.10/kWh for KSEB buyback.

Date Extensions

Tender Name

Technology

Tender Scope

Capacity (MW)

Other Details

Minimum CUF

Commissioning timeline from PPA signing

Bid Submission Date

MSEDCL, 865 MW, Solar, Maharashtra, Jan 2022

Utility Scale Solar

Project Development

865

EMD – INR 0.1 million/MW

PBG – INR 0.5 million/MW

Ceiling Tariff – INR 3.10/kWh

19%

12 months

11th-Mar

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

4th-Mar

NTPC, 500 MW Wind/Solar with 3000 MWh BESS, Pan India, Jan 2022



Wind/Solar

 



Project Development

 

500 MW with 3000 MWh BESS

 

EMD – INR 1.2 million/MW

24 months

25th-Mar

Source: JMK Research

Auctions Completed

Winners in the latest solar tenders

Source: JMK Research

Auctions were concluded for 1215 MW solar tenders by SECI in Karnataka and Himachal Pradesh.

Tender Name

 

Capacity tendered (MW)

Capacity allotted (MW)

Minimum CUF

Commissioning Timeline

Winners Details

SECI 1200 MW Solar UMREPP ISTS X Karnataka Jul 2021

 

1200

1200

17%

18 months

• Ayana Renewable – 300 MW (INR 2.36/kWh)• Fortum – 300 MW (INR 2.37/kWh) • Ayana Renewable –300 MW (INR 2.35/kWh)• Fortum – 300 MW (INR 2.36/kWh)

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

 

15

15

21%

18 months

• SJVN – 15 MW (INR 3.26/kWh)

Source: JMK Research

In addition, IREDA issued a revised PLI list for setting up manufacturing capacities for high efficiency solar PV modules. The successful winners under the PLI scheme are:

Winner Name

Bidder’s Manufacturing Capacity in MW

Eligible Capacity (for PLI) in MW

Integration Stage

PLI Quoted (in crores)

Reliance New Solar Energy

4000

2000

Stage 1 to 4

1917

Shirdi Sai

4000

2000

Stage 1 to 4

1875

Adani

4000

2000

Stage 1 to 4

3600

Source: IREDA, JMK Research

Installed Capacity

In January 2022, a combined total of 743.95 MW of solar and wind capacity was added, taking the cumulative RE capacity to 105.85 GW.

RE installations in January 2022

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

Recently Commissioned RE projects

Developer

Technology

Tender Name

AC Capacity (MW)

State

NTPC

Solar

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

74.8

Rajasthan

ReNew Power

Wind Solar Hybrid (Captive)

17.6

Gujarat

Sunsure

Solar (Captive)

 

17.5

Odisha

Cochin International Airport Limited (CIAL)

Solar

12

Kerala

BHEL

Solar

1.7

Madhya Pradesh

Source: Industry news articles, JMK Research

Other key announcements that were made during the month were:

  • Scatec Solar and Acme Solar have put their 900 MW solar project in Rajasthan on hold due to lack of supply of domestic solar panels and imposition of 40% import duty on solar modules which is set to take effect from April 2022. The project was scheduled to be completed in 2022.
  • Singareni Collieries Company Limited (SCCL) is planning to build additional solar power facilities in Telangana with a capacity of 1,000 MW. The solar power plants will be built on unused and vacant government lands. The government has given the deadline of May 2022 to complete the installation of a 15 MW solar floating plant on the Singareni Thermal Power Plant (STPP) reservoir. The government also instructed to complete the tendering process for the third phase of 66 MW solar power plants by April 2022. The SCCL had so far installed 219 MW solar power plants in the coal belt region.
  • Chandrapur Super Thermal Power Station (CSTPS) is also planning to build three solar power projects with total generation capacity of 300 MW in Maharashtra. The company has already started the construction of two solar parks in its plant area having generation capacity of 145 MW in Kachrala and 105 MW floating solar power project in the backwaters of Irai dam. CSTPS has also proposed another 50 MW solar project on 200 acres of unused land. This project is in the pipeline and the company is yet to receive a feasibility report.
  • Solarworld Energy Solutions Private Limited has inked a deal with Sungrow for a 75 MW inverter system. They will work together on SJVN Limited’s 75 MW solar power project in Uttar Pradesh. This project is expected to be completed by June 2022.
  • KPI Global has announced that it has won the largest single order for a solar power plant with a capacity of 25 MW DC.
  • Oriano has won an order in Chhattisgarh for one of the largest captive solar projects under the C&I segment. The project’s total capacity is 168 MWp, with the first phase of 70 MWp expected to be operational by mid-April 2022. The remaining capacity construction has already started and is expected to be completed by October 2022.
  • Under the Invest Rajasthan Campaign, the Rajasthan government will sign MOUs with major players in the renewable energy sector, attracting INR 3.05 lakh crore. It includes renewable energy projects with a capacity of 92.1 GW and solar module manufacturing with a capacity of 4 GW. Five PSUs, including NTPC, NHPC, SJVN Limited, THDC India Ltd., SECI, and private entities like Reliance, Axis, and SAEL, will sign MOUs or letters of intent.
  • MNRE has approved the development of 400 MW solar park by SJVN at Kinnaur in Himachal Pradesh. With this latest addition, the renewable energy portfolio of SJVN is now 3054.5 MW, which already has a portfolio of more than 16,400 MW.
  • Gujarat State Electricity Corporation Limited (GSECL) has started construction on a pilot 35 MW solar PV project with a 57 MWh Battery Energy Storage System (BESS) in Gujarat. The project will cost around INR 334.54 crore and will be carried out with the help of Gujarat Urja Vikas Nigam Limited (GUVNL) and the Gujarat Energy and Petrochemicals Department.
  • IFC will extend its support in the development of 600 MW solar parks in Uttar Pradesh on PPP basis. The parks will be developed through a joint venture between THDC and Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA). For the development of internal infrastructure, central financial assistance at INR 20 Lakh per MW or 30% of the project cost, whichever is lower will be given to TUSCO.
  • Ecoppia has secured a 400 MW solar project from Azure Power that combines fixed-tilt and single-axis trackers. Ecoppia will use its whole product line (the E4, T4, and the most recent H4) to clean the panels.
  • SECI has signed Power Sale Agreement (PSA) of 1785 MW Solar Power with RUVNL under State Specific Tranche IV tender. The tender was issued by SECI in March 2021. The successful bidders were NTPC, ReNew Solar Power, ACME Solar, Sprng Energy, UPC Renewables, Metka EGN.
  • Sify data centers and Vibrant Energy signed a power purchase agreement (PPAs) for a total 231 MW of solar and wind energy capacity to power its latest hyperscale data centers.  Investment of about Rs 1,250 crore for the 231 MW project will be done by both companies through a special purpose vehicle, which would be commissioned over the next few years.
  • Waaree Renewable Technologies Limited has received a letter of award (LOA) to build a 180 MW DC solar power project in Tamil Nadu.

Monthly RE Generation

Renewable energy sources generated 10543.4 MU in February 2022, up by nearly 2.65% from January 2022. Solar energy accounts for 63% of RES (Renewable Energy Sources) generation in February 2022, followed by wind and other renewable energy sources (including biomass) at 28% and 9% respectively.

Source-wise Renewable Energy Generation (MU) – India

Source: CEA, JMK Research

monthly RE

Investments/ Deals

In February 2022, about $571.86 million was invested in the RE sector. The Key investment during the month were:

  • Reliance Industries Ltd has completed the purchase of a 40% share in Sterling & Wilson Renewable Energy Ltd (SWREL) for $377 million.
  • Virescent Renewable Energy Trust (VRET) raised $87 million at a rate of 7.93% via bond issue. Adani Green Energy also issued bond valued at $81.96 million with a tenure of up to around 12 years.
  • Torrent power acquired 100% stake from Visual Percept Solar Projects which includes 25 MW solar power plant in Gujarat.
  • Husk has received a loan of $4.2 million from IREDA to fund 140 micro grids in Uttar Pradesh.

Company Name

Deal Type

Sector

Asset Acquired

Investor

Deal Value

Stakes Acquired

Other Details

Sterling & Wilson

Equity

Renewable

Reliance Industries

$377 million

40%

Virescent Renewable Energy Trust (VRET)

Bonds

Solar

$87 million

The bonds will be issued in two tenors – 7.33- year ($20 million) and 10-year ($67 million). The average quarterly coupon of the bonds is 7.93%, and it is totally set for the whole term. Crisil and India Ratings have assigned the highest rating of AAA (Stable) to the issue.

Adani Green Energy

Bonds

Renewable

$81.96 million

The Bonds were issued at a coupon rate of 7.83% per year and have a tenure of up to around 12 years. CRISIL Limited has assigned the NCDs an AA/Stable rating, while India Ratings assigned an AA(CE)/Stable rating

Visual Percept Solar Projects 

Acquisition

Solar

25 MW

Torrent Power

$21.7 million

100%

Torrent power concluded the deal to acquire 25 MW solar power plant in Gujarat

Husk Power

Debt

Solar

IREDA

$4.2 million

The funds will be used to finance 140 microgrids in Uttar Pradesh and Bihar

Amp Energy

Equity

Solar

Cipla

32.49%

Cipla has signed a pact to set up a captive solar power project in Maharashtra

Source: Industry news articles, JMK Research

Other key announcements that were made during the month were:

  • Tata Power is in discussion with investors such as the Canadian Pension Plan Investment Board (CPPIB), Singaporean sovereign fund Temasek Holdings, and private equity firm General Atlantic to raise $600-700 million for its renewable energy business, valued at around $6-7 billion.
  • ArcelorMittal has joined the race to buy Sprng Energy, alongside Royal Dutch Shell, Adani Group, Singapore’s Sembcorp Energy, and Canadian pension fund CPPIB in a $2 billion deal.  While Shell Plc and Adani Group are the two leading contenders to buy Actis Llp’s Indian renewable energy platform Sprng Energy for around $1 billion in equity.
  • Azure Power announced that its existing term loan of US$ 313 million for the development of a 600 MW solar project in Rajasthan has been refinanced at a fixed rate of 7.2% per annum for a period of 42 months. This is the lowest rate of interest for any project finance facility for the company’s existing portfolio in terms of rupee financing.
  • The US is providing $500 million to help American companies manufacture solar modules in India. In November 2017, the US, Australia, India, and Japan formed the Quad to promote a free, open, rules-based order in the Indo-Pacific region.
  • Godawari Power and Ispat have agreed to sell Virescent Infrastructure a 50 MW solar thermal power plant for INR 665 crore. The money released will be also used to set up a steel manufacturing unit and a solar PV capacity of 155 MW.

SECI Payments

In January, the Solar Energy Corporation of India Limited (SECI) paid nearly INR 5.43 billion to developers for the purchase of solar and wind power in January 2022. Compared to December 2021, the payment disbursal in January has increased by ~10%.

Monthly payments by SECI to solar and wind developers

Source: Ministry of Commerce and Industry, JMK Research

GTAM Traded Volume

During February 2022, the green term-ahead market traded 262 MU volume, with 39.79 MU in the solar segment and 222.22 MU in the non-solar segment. This is about 91% higher than the previous month. The average trade price in IEX GTAM for the same month was INR 4.4/kWh. 

The PXIL Green Term-Ahead Market reported 392 MU volume in February 2022 with a significant of 5,524% on MoM basis. The average traded price was INR 4.6/kWh during February 2022. 

GTAM traded volume and average traded price trend

Source: IEX, PXIL, JMK Research

Comparing on m-o-m basis, prices for global mono PERC modules remained unchanged while mono PERC India modules prices have increased marginally by 0.74% in February 2022.

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 issues approval for introduction of the Hydropower Contracts in Green Term-Ahead Market (GTAM) at Indian Energy Exchange Ltd. to facilitate Hydropower Purchase Obligation (HPO) compliance of obligated entities

CERC

24th-Feb

Ministry of Power have issued amendments to short term Power Procurement guidelines

MoP

23rd-Feb

Ministry of Power issues clarification about application of new “Change in Law” rules

MoP

21st-Feb

NTPC asked to settle its “Change in Law” claim mutually with UP DISCOM

CERC

18th-Feb

Ministry of Power notifies Green Hydrogen/ Green Ammonia Policy

MoP

17th-Feb

Solar Developer claims Connectivity Bank Guarantee from Power Grid for defunct Solar PPAs

CERC

15th-Feb

CERC drafts the regulations for the development of market in power from renewable energy sources through renewable energy certificates

CERC

15th-Feb

Ministry of Power amended guidelines for bidding process of procurement of RTC power

MoP

3rd-Feb

MNRE extended timeline for self-certification of solar PV inverters under BIS from Dec 21 to Jun 22

MNRE

2nd-Feb

MNRE develops framework for promotion of DRE livelihood applications

MNRE

14th-Feb

CERC ruled for Mutual Settlement of Disputes in Land Tax ‘Change of law’ Petitions in Rajasthan

CERC

9th-Feb

MNRE issues simplified procedure to install rooftop solar plant for the residential consumers

MNRE

2nd-Feb

Budget 2022: Focus on PV Manufacturing, Battery Swapping & Energy Storage, Electric Vehicles and Green Hydrogen Sector

MoF

1st-Feb

Ministry Of Power clarified to various stakeholders regarding the usage of ESS in various applications

MoP

29th-Jan

APTEL rules in favor of Three solar developers dismissing Tariff reduction by the DISCOMs

APTEL

27th-Jan

Renewable Energy Projects in The Great Indian Bustard Habitat get 30 days Extension

MNRE

13th-Jan

State

Policy Name

Issuing Agency

State

Date of Issue

Andhra Pradesh state commission announces regulations for short term Power Procurement

APERC

Andhra Pradesh

10th-Feb

For FY-2021, the solar energy from rooftop solar to be compensated at a ceiling tariff of INR 4/kWh

GERC

Gujarat

29th-Jan

HPERC proposes generic levelized tariff for solar PV projects for FY 2022-23

HPERC

Himachal Pradesh

14th-Jan

HERC determine the additional surcharge for H2 FY2022 for the Open Access consumers in the state

HERC

Haryana

2nd-Feb

JERC – (Connectivity and Open Access in Intra-State transmission and distribution) Regulations, 2017

JERC

Goa & Union Territories

1st-Feb

KERC postpones amendment of “Wheeling & Banking Facility Regulations” for RE projects in Karnataka

KERC

Karnataka

8th-Feb

KERC determines the generic tariff for wind power projects at INR 3.26/kWh for FY 2023

KERC

Karnataka

10th-Feb

Kerala state commission approves reduction in PPA tariff for 110 MW solar project

KSERC

Kerala

28th-Jan

KERC: Extension of time complying with RPO for FY20 and FY21

KERC

Karnataka

15th-Feb

MERC approves for adoption of tariff discovered for long term procurement of 157.9 MW wind power

MERC

Maharashtra

16th-Feb

MERC approves for adoption of tariff discovered for long term procurement of 12.5 MW solar power under Component A of (PM-KUSUM)

MERC

Maharashtra

16th-Feb

TNERC imposes additional surcharges for actual open access energy drawn

TNERC

Tamil Nadu

1st-Feb

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