Monthly RE update- Jan 2020

Tenders

About 1356.5 MW of renewable tenders are issued in January 2020, including- 34 MW utility-scale solar project development tenders, 60 MW solar plant O&M tenders, 23.5 MW rooftop solar tenders and 1,239 MW of hybrid/ storage tenders.
Another 5.1 GW of solar tenders were either re-issued/ retendered
Auction is completed for about 5.1 GW of tenders.

New RFS Issued

Tender name	Technology	Ceiling Tariff (INR/ kWh)	Other details	Bid submission date
SECI, Pan India, 1200 MW, Hybrid, Tranche- III, BOO Basis Jan 2020	Hybrid		EMD: INR 5 Lakh/ MW/ Project PBG: INR 20 Lakh/ MW/ Project	25-Feb-2020
HPPC, Haryana, 279 MW, Jan 2020	Solar	3.11	EMD: INR 1 Lakh/ MW	10-Feb-2020
MPUVNL, Madhya Pradesh, 25 MW, Grid connected and off-grid connected with battery, Jan 2020	Rooftop solar+ storage		Bid security ranging between ₹500,000 and ₹1.7 million depending on the type of installation and capacity chosen	24-Feb-2020
SECI, Leh and Kargil, 14 MW Solar Power Plant with 42 MWh BESS, VGF, Jan 2020	Energy Storage		EMD: INR 1,96,00,000	16-Mar-2020
NOIDA, Uttar Pradesh, 5 MW, Solar PV Plant, RESCO Model, Jan 2020	Rooftop solar		EMD: INR 43 Lakh	21-Jan-2020
ONGC, Hazira, Gujarat, 5 MW, O&M, Jan 2020	Solar O&M		EMD: INR 35,93,000
BHEL, Ranipet, Tamil Nadu, 5 MW, Solar Power Project, O&M, Jan 2020	Solar O&M		EMD: INR 79,000	31-Jan-2020
SCMC, Tamil Nadu, 3 MW (DC), Jan 2020	Rooftop solar		EMD: INR 1.5 Million	12-Feb-2020
SECI, Diglipur, North Andaman, 4 MW Floating Solar Project with 2 MW BESS, BOO Basis Jan 2020	Floating Solar		EMD: INR 54 Lakh PBG: INR 1.08 Crores	13-Feb-2020
SBPDCL, Bihar, 5 MW, Residential Rooftop Solar, Jan 2020	Rooftop Solar		EMD: INR 2 Lakh	30-Jan-2020
NTPC, Odisha, 550 kW, Rooftop Solar, Jan 2020	Rooftop Solar		EMD: INR 5 Lakh	21-Jan-2020
JBVNL, Jharkhand, 10 MW, Residential Rooftop Solar, Jan 2020	Rooftop Solar		EMD: INR 5 Lakh/ MW	23-Jan-2020
APDCL, Assam, 30 MW, Solar PV Power Project, CPSU Phase II, Jan 2020	Solar	3.13	EMD: INR 6,55,000/ MW Each region PBG: INR 16,37,000/ MW	27-Jan-2020
NTPC, Madhya Pradesh, 50 MW, Solar Project, O&M, Jan 2020	Solar O&M		EMD: INR 5 Lakh	6-Feb-2020

Source: JMK Research

Retendered

Tender name	Technology	Ceiling Tariff (INR/ kWh)	Other details	Bid submission date
SECI, 400 MW, s “Round-the-Clock” Supply of RE Power to NDMC	Solar RE
NHPC, Pan India, 2000 MW	Solar	2.78 (earlier 2.65)	EMD: INR 4 Lakh/ MW PBG: INR 2 million/ MW	10-Jan-2020
UPDCC, Uttarakhand, 40 MW, Solar PV Plant, Jan 2020	Solar		EMD: INR 5 Lakh	11-Feb-2020
RUMSL, Neemuch, Madhya Pradesh, 500 MW, Jan 2020	Solar			18-Jun-2020
RUMSL, Shajapur, Madhya Pradesh, 450 MW, Jan 2020	Solar			28-May-2020
RUMSL, Agar, Madhya Pradesh, 550 MW, Jan 2020	Solar			7-May-2020
SECI, Wind, Pan India, Tranche IX,1200 MW	Wind		EMD: INR 0.6 million/ MW PBG: INR 2 million/ MW	7-Feb-2020

Source: JMK Research

Result announced

Tender name	Status	Capacity tendered (MW)	Capacity allocated (MW)	Bidders/ winners details
NTPC, 1000 MW, solar, Under DBDT	Project allotted	1000	560	Tata Power Solar (300 MW), Jakson Limited (110 MW) L&T (150 MW)
SECI, 1500 MW, solar, CPSU Phase II, Tranche II	Project allotted	1500	1104	The Singareni Collieries Company (81 MW) Indore Municipal Corporation (100 MW) NTPC (923 MW)
KSEB, Kerala, solar, 200 MW	Project allotted	200	46.5	Tata Power (35 MW) Waaree Energy (6.5 MW) Inkel Limited (5 MW)
SECI, 1,200 MW, ISTS connected RE with storage, Phase VII	Bids submitted	1200		Greenko (900 MW) ReNew (600 MW) HES Infrastructure (120 MW)
UPNEDA, Uttar Pradesh, solar, 500 MW	Bids submitted	500		Jakson-100 MW Talettutayi -50 MW IB vogt solar-50 MW Vijaya Printers-25 MW ATA Renewables-7 MW
AEML, Maharashtra, 350 MW, Greenshoe 350 MW	Project allotted	700	700	Adani- 700 MW

Source: JMK Research

Projects Commissioned

In December 2019, about 1,204 MW of new solar capacity and 227 MW of new wind capacity is added.

State-wise installations in solar and wind during December 2019 – 1,430 MW

Source: MNRE, JMK research

List of recently commissioned projects

Project developer name	Technology	Capacity (MW)	Tender name	State	Date of commissioning
Technique Solaire	Solar	20	MSEDCL Maharashtra 1,000 MW, Jun-2018	Maharashtra	17-Jan-2020
KPI Global	Solar	1.2	Captive	Gujarat	6-Jan-2020
Hero Future Energies	Solar	100	SECI Pan India 2,000 MW, Jul-2018	Rajasthan	10-Dec-2019
RSWML	Solar	1	Captive	Rajasthan	6-Dec-2019
Torrent	Wind	126	MSEDCL Maharashtra 500 MW, Mar-2018	Maharashtra	13-Dec-2019
Renew	Wind	76	MSEDCL Maharashtra 500 MW, Mar-2018	Maharashtra	December-2019
Kansai Nerolac Paints	Wind	2.10	Captive	Maharashtra	26-Nov-2019
Suzlon Energy	Wind	2.10	Captive	Maharashtra	27-Nov-2019

Source: JMK Research

Investments/ Deal

Date	Company name	Deal type	Sector	Acquirer/ Investor	Deal value	Stake acquired
10-Jan-2020	Mahindra Renewables Private Limited	Debt	Solar	IFC	$36 million	NA
10-Jan-2020	Sherisha Solar Private Limited	Equity	Solar	SunEdison Infrastructure Limited	NA	100%
22-Jan-2020	O2 Power	Equity	Renewable	Temasek and EQT	$500 million	100%
24 Jan 2020	Engie	Equity	Solar	Edelweiss	NA	74%
24 Jan 2020	ReNew	Dollar Bond	Renewable	NA	$450 million	NA

Source: JMK Research

Azure Power to invest $3.7 billion to set up 4 GW capacity by 2024-25

Solar power producer, Azure Power, is planning to invest about $3.7 billion by the end of financial year 2024-25, the company said in an investor briefing. According to its capex forecast, it will make investment in a range between $2.6 billion and $3.7 billion from 2020-21 to 2024-25, with the highest being $9 billion in FY21.

SoftBank in talks to sell majority stake in India renewables JV

Amid major global setbacks, Masayoshi Son’s SoftBank is exploring to bring on board a partner in its high-profile renewables joint venture in India, SBG Cleantech, by selling a majority stake, said people in the know. This is part of an ongoing review of its businesses around the world in a bid to increase liquidity.

Eden, Adani to invest Rs 2,072 crore in renewable power projects in Rajasthan

Eden Renewables and Adani group have proposed to invest Rs 2,072 crore in the renewable power sector and both the projects have been given 100% exemption from stamp duty and conversion charges under the new RIPS.

Monthly import-export statistics

*Provisional data, final data not yet released by the government

Source: Ministry of Commerce, JMK research

Global Price Trends

Source: EnergyTrend, JMK Research

Policy and Regulation

MNRE notifies list of Insurance Providers for Solar Power Plants

To insure and protect the interest of solar energy industry stakeholders, MNRE has released a list of insurers offering products covering various risks associated with the solar power plants.
The insurance providers include IFFCO Tokio GICL, HDFC Ergo GICL, The New India Assurance Co. Ltd., ICICI Lombard GICL, and Cholamandalam MS GICL offering various products for the solar plants.
The various policies offered by the insurers include photovoltaic sales policy, solar panel warranty insurance, photovoltaic buyers policy, solar panel warranty insurance, new India solar energy insurance policy, Chola solar plant protect policy and solar energy shortfall insurance policy, among others.
The products offered cover various risks associated with the life cycle of a solar energy plant such as contractual liabilities of PV module manufacturers’ arising out of the performance and product warranty offered to buyers, cover to PV module buyers’ if manufacturer becomes insolvent, underperformance of solar modules on account of performance degradation of panel insured below the performance warranty due to faulty manufacturing, material defects and material ageing beyond normal wear and tear, and degradation
The policies also cover – energy shortfall due to unintentional error in calculation of target production, defect in insured energy installation, shortfall in deemed energy production due to lack of adequate solar irradiation and others as well. The policy indemnifies the insured against costs and expenses necessary to fulfil its obligation under the warranty.

MNRE extends timelines for self-certification of inverters

To assure quality components in solar projects, the government had mandated that laboratories must conduct the tests as per Bureau of Indian Standards (BIS) and passed the order regarding the same on 5th September 2017
Due to issues like capacity, test fee and the test lab availability, the solar industry sought more time for the compliance of the above order.
The government has considered the same and has allowed self-certification for inverters till 30^th June 2020 from the earlier deadline of 31^st December 2019.
However, self-certification is allowed provided manufacturers have valid International Electrotechnical Commission (IEC) accreditation and test reports from international test labs
Prior to this, the deadline was extended from 31^st December 2018 to 30^th June 2019 than to 30^th September 2019 and further till 31^st December 2019. Hence this is the 4^th time extension government has given.

GERC, Second Amendment in Net Metering Rooftop Solar PV Grid Interactive Systems

New definition clause of Micro, Small and Medium (Manufacturing) Enterprise or MSME (Manufacturing) has been inserted.
In original regulation Discom can provide net metering to consumers only for 65% of the cumulative capacity at any distribution transformer. However now the provision of 65% has been removed and the cumulative capacity has been allowed equal to capacity of the distribution transformer.
The maximum Rooftop Solar PV System capacity to be installed at any Eligible Consumer’s premises shall be upto a maximum of 50% of consumer’s sanctioned load/contract demand.
In case of Residential and MSME Consumers the Rooftop Solar PV System capacity shall be irrespective of their sanctioned load/contract demand.
Surplus Energy generated shall be bought by Discom at Rs. 2.25 /unit for residential and government consumers. Rs. 1.75 /unit for C&I and MSME consumers not registered under REC mechanism and Rs. 1.50 /unit for C&I consumers registered under REC mechanism. Earlier this energy was bought by Discom at APPC, which is determined by Regulatory Commission from time to time.

UPERC Issues Clarification on Banked Energy from Renewable Projects

UPPCL has raised objection that the provision of withdrawal of banked power from renewable sources (except Small Hydro and Municipal Solid Waste) in two subsequent quarters which is being banked during a quarter is too flexible and will severely affect power purchase cost.
UPPCL requested that the power banked in the month should be adjusted during the same month along with TOD slots.
Commission clarifies that withdrawal of banked energy was allowed in two subsequent quarters keeping the sugar industry in mind as their crushing season overlaps 2 financial year. If banked energy is kept limited to FY, then the banked energy would not be available for sugar industry in month of April (sugar crushing season).
UPERC has said that it’s not even one year since the regulation has come into effect. Hence, in the due course, UPPCL should provide more data to substantiate its concern and if true UPERC will look into the matter again.

Azure pleads for tariff revision due to introduction of implementation of Safeguard Duty

Azure filed petition in CERC for increase in project cost due to implementation of safeguard duty under “Change in law” clause and reimburse the same.
CERC directs SECI to pay the additional amount of project cost (after providing proofs)
SECI is eligible to claim the same from the Discoms on ‘back to back’ basis.
The Claim shall be paid within sixty days of the date of this Order or from the date of submission of claims by the Petitioner whichever is later failing which it will attract late payment surcharge as provided under PPAs/PSAs.
Alternatively, Azure and SECI can mutually agree to a mechanism for payment of such compensation on annuity basis spread over the period of the PPA and as a percentage of the tariff agreed in the PPAs.
CERC has quashed the claim regarding separate ‘Interest on Working Capital/Return of Equity’/’Carrying Cost’

Extension of validity of Renewable Energy Certificates (RECs) due to expire between November, 2019 and March, 2020 till 31^st March 2020.

34,714 Solar REC and 1,91,595 Non solar RECs ( Total – 226, 309 RECs) which are expired or would be expired from November ’19 till March 2020.
CERC has passed an order that these RECs which have expired/are due to expire between 1st November, 2019 and 31st March 2020 shall remain valid up to 31st March, 2020.

Phase II of the Grid Connected Rooftop Solar (RTS) Programme_ Clarification

Phase – II of grid connected rooftop solar programme is only for the residential sector.
Central Financial Assistance (CFA) is provided @ 40 % of the benchmark cost or the cost discovered through the transparent bidding by the implementing agency, whichever is lower for rooftop systems upto 3 kW capacity.
For system capacity beyond 3 kW and upto 10 kW CFA is provided at 20 % of benchmark cost or the cost discovered through transparent bidding.
For Group Housing Societies/Residential Welfare Associations (GHS/RA W), CFA will be limited to 20% for RTS plants for supply of power to common facilities.
The capacity eligible for CFA for GHS/RAW will be limited to 10 kW per house with maximum total capacity upto 500 kWp inclusive of RTS put in individual houses in the GHS/RWA.
Discoms or its authorised agency shall invite EOI for empanelment of agencies for supply, installation, testing & commissioning of RTS system in residential premises.
To ensure quality and post installation services only manufacturers of solar panels and system integrators fulfilling pre-determined technical and financial criteria would be allowed to participate in the bidding process. The selected bidders shall follow the quality control orders and standards for all components of RTS system and its installation procedure, if any, issued by MNRE from time to time.