Monthly RE update – January 2022
Tenders
- In January 2022, 24 new renewable energy (RE) tenders with a total capacity of 3884.52 MW were issued. SECI issued a 1200 MW wind project development tender under Tranche XIII across Pan India. In addition, MSEDCL floated a tender for procurement of 865 MW power from solar projects in Maharashtra.
- NTPC Renewable Energy Limited has invited bids for selection of developers for ISTS connected energy storage solutions of 3000 MWh with 500 MW (min) capacity (Anywhere in India).
Details of new tenders issued in January 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 |
|
Wind |
Project Development |
1200 | EMD – INR 1.326 million/MW PBG – 3.315 million/MW |
22% |
24 months |
18th-Feb-2022 | |
|
Utility Scale Solar |
Project Development |
865 | EMD – INR 0.1 million/MW PBG – INR 0.5 million/MWCeiling Tariff – INR 3.10/kWh |
19% |
12 months |
28th-Feb-2022 | |
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 |
– |
– |
11th-Mar-2022 |
| Utility Scale Solar |
Project Development |
500 | EMD – INR 0.4 million/MW PBG – INR 0.94 million/MW |
17% |
18 months |
3rd-Feb-2022 | |
|
Utility Scale Solar |
EPC with Land |
220 | EMD – INR 0.4 million/MW PBG – INR 0.4 million/MW |
– |
– |
1st-Feb-2022 | |
|
Wind |
EPC |
150 | EMD – INR 100 million |
– |
– |
24th-Feb-2022 | |
|
Utility Scale Solar |
EPC |
131 | EMD – INR 52.4 million PBG – 5% of the EPC contract price |
– |
12 months |
25th-Feb-2022 | |
| Utility Scale Solar | EPC | 75 | EMD – INR 30 million PBG – 10% of the EPC cost | – | – | 11th-Feb-2022 | |
|
Rooftop Solar |
CAPEX |
50 | EMD amount = (INR 554) x Bid Capacity in kWp PBG – INR [(cost discovered/kW)] x 5% of the allocated capacity in KWp |
– |
6 months |
16-Feb-2022 | |
|
Utility Scale Solar |
EPC |
35 | EMD – INR 14 million PBG – 5% of the EPC contract price |
– |
12 months |
25th-Feb-2022 | |
| Decentralized Solar | EPC | 25 |
– |
– | 6 months | 29th-Jan-2022 | |
| Utility Scale Solar | EPC | 20 | EMD – INR 10 million |
– | 9 months | 22nd-Jan-2022 | |
| BMC, 20 MW, Solar (EPC), Madhya Pradesh, Jan 2022 |
Utility Scale Solar |
EPC |
20 | EMD – INR 5 million PBG – INR 10.5 million(For each of the 10 MW solar projects) |
– |
15 months |
18th-Feb-2022 |
| Utility Scale Solar |
EPC |
16 | EMD – INR 16 million PBG – 10% of the contract value |
– |
10 months |
18th-Jan-2022 | |
|
Rooftop Solar |
– |
15 | EMD for 1 to 3 kW – INR 3.75 million Above 3 to 10 kW – INR 1.5 millionAbove 10 to 100 kW – INR 1.15 million Above 100 to 500 kW – INR 0.54 million |
– |
– |
29th-Jan-2022 | |
|
Utility Scale Solar |
EPC |
12 | EMD – INR 5.83 million |
– |
– |
28th-Feb-2022 | |
|
Utility Scale Solar |
EPC |
10 | EMD – INR 0.5 million PBG – 10% of the EPC contract value |
25% |
9 months |
31st-Jan-2022 | |
|
Rooftop Solar |
CAPEX |
10 | EMD – INR 0.45 million |
– |
6 months |
24th-Feb-2022 | |
JDVVNL, 8.57 MW, Solar (EPC) (Under PM KUSUM Component C), Rajasthan, Jan 2022 |
Small Scale Solar |
EPC |
8.57 | PBG – INR 4.285 million |
– |
9 months |
25th-Jan-2022 |
| Utility Scale Solar |
EPC |
5 | EMD – INR 5.07 million PBG – 10% of the project cost plus GST |
18.2% |
12 months |
5th-Feb-2022 | |
|
Utility Scale Solar |
EPC |
5 | EMD – INR 0.2 million |
– |
9 months |
10th-Feb-2022 | |
|
Floating Solar |
EPC |
5 | EMD – INR 6.9 million PBG – 3% of the project cost plus GST |
– |
12 months |
21st-Feb-2022 | |
JDVVNL, 3.45 MW, Solar (EPC)(Under PM KUSUM Component C), Rajasthan, Jan2022 |
Small Scale Solar | EPC |
3.45 | PBG – INR 1.725 million |
– |
– |
25th-Jan-2022 |
|
Rooftop Solar |
– |
3.5 | PBG – 3% of the contract value |
15% |
6 months |
8th-Feb-2022 |
PBG: Performance Bank Guarantee
EMD: Earnest Money Deposit
Source: JMK Research
Other announcements during the month were:
- Maharashtra State Road Development Corporation (MSRDC) issued an expression of interest (EOI) for development of cumulative 120 MW of solar projects in Maharashtra. The last date for bid submission is 17th February 2022.
- NTPC Renewable Energy Limited (NTPC REL) invites bids from eligible bidders for:
- Balance of system package with land for ISTS connected solar projects (Up to 1000 MW) anywhere in India. The last date for bid submission is 3rd February 2022.
- Development package (BOS with land) of ISTS connected wind energy projects up to capacity of 720 MW Anywhere in India.
- Balance of system package with land for 300 MW ISTS connected solar projects Anywhere in India
Date Extensions
|
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/MWCeiling Tariff – INR 2.30/kWh |
19% |
9 months |
31st-Jan-2022 |
| Solar and Agro PV |
EPC |
50 | PBG – 3% of the contract value |
24.1% |
12 months |
7th-Feb-2022 |
Source: JMK Research
Auction Completed
|
Tender Name |
Capacity tendered (MW) |
Capacity allotted (MW) |
Minimum CUF |
Commissioning Timeline |
Winners Details |
|
REC Power Distribution Company 125 MW Solar (EPC) Uttar Pradesh Jul 2021 |
125 |
125 |
– |
10 months | • SJVN Limited – 125 MW (INR 2.98/kWh) |
|
735 |
735 |
– |
– | • L&T – 245 MW • Jakson Group – 245 MW • Amara Raja – 245 MW |
Source: JMK Research
Bid Submission
A total of 10 companies submitted their bids under the Advanced Chemistry Cell (ACC) Battery Storage Scheme in India for 130 GWh capacity. The manufacturing facility would have to be set up within a period of 2 years. The Government approved the Production Linked Incentive (PLI) Scheme ‘National on Advanced Chemistry Cell (ACC) Battery Storage’ for achieving manufacturing capacity of 50 GWh of ACC for enhancing India’s Manufacturing Capabilities with an outlay of INR 18,100 crore.
Following is the list of companies applied for ACC PLI scheme:
- Reliance New Energy Solar Limited
- Hyundai Global Motors Company Limited
- Ola Electric Mobility Private Limited
- Lucas-TVS Limited
- Mahindra & Mahindra Limited
- Amara Raja Batteries Limited
- Exide Industries Limited
- Rajesh Exports Limited
- Larsen & Toubro Limited
- India Power Corporation Limited
Installed Capacity
In December 2021, a combined total of 839.17 MW of solar and wind capacity was added, taking the cumulative RE capacity to 104.88 GW.
RE installations in December 2021
Source: MNRE, JMK Research
Note: Solar includes utility scale solar, rooftop solar and off grid/distributed solar segments
Recently Commissioned Solar projects
|
Developer |
Technology |
Tender Name |
AC Capacity (MW) |
Tariff (Rs/kWh) |
State |
| Azure Power | Solar | SECI 2000 MW Solar ISTS Tranche I Jul 2018 | 100 | 2.53 | Rajasthan |
| Tata Power | Solar | UPNEDA 550 MW Solar Uttar Pradesh Dec 2018 | 50 | 3.07 | Uttar Pradesh |
| Tata Power | Solar | UPNEDA 550 MW Solar Uttar Pradesh Dec 2018 | 50 | 3.08 | Uttar Pradesh |
| Amp Energy | Solar (Open access) | – | 30 | – | Karnataka |
| Avaada | Solar (Captive) | – | 21 | – | Maharashtra |
| Bhageria Industries | Solar | – | 9.5 | – | Maharashtra |
| HFM Solar | Rooftop Solar | – | 1.5 | – | Delhi |
Source: Industry news articles, JMK Research
Other key announcements that were made during the month were:
- Tamil Nadu government is planning to set up 20,000 MW of solar energy power stations and 10,000 MW battery storage systems over the next 10 years. The government is planning to build solar energy power stations with a capacity of 4,000 MW and a battery storage system with a capacity of 2,000 MW in the first phase. The existing solar power generation capacity in Tamil Nadu is 4,561 MW.
- NHPC has signed an agreement with Green Energy Development Corporation of Odisha Ltd (GEDCOL) to form a joint venture for setting up a 500 MW floating solar power projects in Odisha. NHPC will hold a 74% equity stake, while GEDCOL will have 26%.
- AC Energy (ACEN) and UPC Solar have started construction on their 300 MW Masaya solar project in Madhya Pradesh. The Masaya Solar farm will supply electricity at a set price of INR 2.71/kWh under a 25-year power supply agreement with SECI.
- Clean Solar Power Private Limited has inked a 250 MW PV module supply agreement with Talesun Solar. The 250 MW modules will be deployed in Clean Solar Power’s ground-mounted solar power project in Rajasthan.
- Anuapm Rasavan has given KPI Global Infrastructure an order for solar power projects with a capacity of 12.50 MWdc under the captive power producer segment.
- A Power Purchase Agreement (PPA) for solar power procurement has been signed by Bosch Limited and Amp Energy India for a period of 25 years. The solar project would have a capacity of 30 MW and will be supplied by Amp Energy India’s open access facility in Karnataka.
- Phoenix Mills has partnered with ReNew Power to install 5 MW solar power plants for Phoenix Market city Pune and Phoenix Market city Mumbai, respectively, through its subsidiaries Vamona Developers and Offbeat Developers. The deal with Renew Power is expected to start in March 2022 and would last for 25 years.
- GE Renewable Energy has announced that it will supply, install, and commission 37 wind turbines for Continuum Green Energy’s 99.90 MW wind power project in Gujarat. Currently, the total capacity of Continuum Green Energy is 1,300 MW.
Apart from this, in terms of MoU activity:
- The Brihanmumbai Municipal Corporation (BMC) has signed a Memorandum of Understanding (MoU) on power generation and purchase from the proposed hybrid solar power plant in Mumbai. The project will generate 100 MW of power. The floating solar photovoltaic power plant can generate up to 80 MW, while the hydroelectric power plant will have a capacity of 20 MW. It will take 31 months to finish the project. The civic body will procure the electricity at the rate of INR 5.3/kWh for the next 25 years.
- Rays Power Experts has signed a memorandum of understanding (MoU) with the Rajasthan government to invest INR 500 crore in the state. The company will develop a 120 MW solar park in Bikaner. The solar park will supply captive solar projects with plug-and-play infrastructure. The first phase of 50 MW capacity will be ready by March 2022, and the remaining capacity will be operational by December 2022.
Monthly RE Generation
In January 2022, renewable energy sources generated 10271.36 MU, up 10.38% from December 2021. Solar energy accounts for 59% of RES (Renewable Energy Sources) generation in January 2022, followed by wind at 32% and other renewable energy sources (including biomass) at 9%.
Source-wise Renewable Energy Generation (MU) – India
Source: CEA, JMK Research
Investments/ Deals
In January 2022, about $1089.25 million was invested in the RE sector. The Key investment during the month were:
- The Indian Railway Finance Corporation (IRFC) has raised $500 million by issuing green offshore bonds. With this, IRFC became the first Central Public Sector Enterprise (CPSE) to exclusively offer its offshore bonds on Indian stock exchanges.
- In addition, ReNew has raised $400 million by issuing Green Bonds.
- Shapoorji Pallonji has received a loan of $101 million from Reliance Industries Limited.
- ReNew Power’s onsite distributed solar generating portfolio has been purchased by Fourth Partner Energy for $87million. The assets, which total 140 MW, are distributed over 100 projects across India. The majority of these projects are operational.
|
Company Name |
Deal Type |
Sector |
Asset Acquired |
Investor |
Deal Value |
Stakes Acquired |
Other Details |
| Indian Railway Finance Corporation (IRFC) |
Bonds |
Renewable |
– |
– |
$500 million |
– | The loan has been raised under its $7 billion global medium-term note program. The green notes will have a tenor of ten years and a coupon rate of 3.57% and rated Baa3 by Moody’s Investor Services |
| ReNew Power | Bond | Solar and Wind | – | Global Investors | $400 million |
– | It offered a coupon rate of 4.5% to the $400 million. These green bonds have a tenor of 5.25 years |
|
Shapoorji Pallonji |
Debt |
Solar |
– | Reliance Industries Limited | $101 million (INR 750 crore) |
– | The loan facility is structured in two tranches. The first tranche is a INR 410 loan and the second is a INR 340 crore loan. The two year loan has been granted at an interest rate of 10.5% per annum |
ReNew Power | Acquisition | Distributed Solar | 140 MW | Fourth Energy Partner | $87 million (INR 650 crore) | – | The majority of these projects are operational |
CSE Deccan Solar Ltd | Acquisition | Solar | – | Apollo Tyres | $1.25 million | 27.2% | – |
Source: Industry news articles, JMK Research
Other key announcements that were made during the month were:
- Bharat Petroleum Corp. Ltd (BPCL) is planning to invest around INR 25,000 crore to build a renewable energy (RE) portfolio of 10 GW comprising a mix of solar (800 MW), wind (100 MW), small hydro (60 MW) and biomass (40MW). The company is planning to achieve 1 GW of RE capacity by 2025 while 10 GW portfolio by 2040.
- The government has approved an INR 1,500 crore investment in Indian Renewable Energy Development Agency Ltd (IREDA). The additional equity investment will help IREDA to lend around INR 12,000 crore to the renewable energy sector, helping in meeting the sector’s debt requirement for additional capacity of 3,500 to 4,000 MW.
- Reliance Industries Ltd (RIL) has announced that it will invest around $80 billion in Gujarat’s clean energy sectors over the next 10 to 15 years. RIL has also announced that it will invest another INR 60,000 crore in setting up manufacturing unit for solar PV modules (manufacture of polysilicon, wafer, cell and module), electrolyzer, energy-storage battery, and fuel cells.
- EverSource Capital announced the financial closure of India’s largest climate impact fund, the Green Growth Equity Fund (GGEF), at $741 million. The funds are invested in combating climate change with an emphasis on energy decarbonization and resource efficiency. Its investments include Ayana Renewable Power, Radiance Renewables, GreenCell Mobility and EverEnviro Resource Management.
- NTPC has issued a request for proposal (RFP) to raise up to $750 million through the ECB to support its power projects, which includes renewable energy. The loan proceeds will be used to fund capital expenditures for ongoing/new capacity expansion projects, such as renewable energy projects, coal mining and washeries etc. The last date for bid submission is 31st January 2022.
- Reliance Industries Limited (RIL) has announced that it has concluded the acquisition of 29.63% of Sterling and Wilson Renewable Energy Ltd’s (SWREL) total paid-up equity share capital. With this deal, RNESL and other group entities held a combined ownership in SWREL of over 40%. Earlier in this month, Shapoorji Pallonji and Company has announced that it has sold 1.84 crore shares of Sterling and Wilson Renewable Energy (SWREL) to Reliance New Energy Solar, reducing its holding in the company to 33.06%. Shapoorji had previously held a 42.76% stake in SWREL
- SECI receives a $134.11 million equity infusion from the government. The fund will help SECI to add 3.3 GW of renewable energy projects.
- Inox Wind Energy has received shareholders’ approval for a capital raise of up to INR 90 crore through the issuing of 10.62 lakh convertible warrants. The convertible warrants will be issued at the rate of INR 847 per unit. The funds will be raised in one or more tranches over a period of 18 months from the date of allotment of the warrants.
- The NTPC Vidyut Vyapar Nigam Ltd (NVVN) has purchased a 5% share in the Power Exchange of India (PXIL).
- Sebi has given approval to Waaree Energies and non-banking financial company Five Star Business Finance to raise funds through initial share sales. The IPO involves a new issue of equity shares for INR 1,350 crore as well as a 4 million-share offer for sale by existing shareholders and promoters. Currently, Waaree Energies has a solar module manufacturing capacity of 2 GW at its Gujarat factories.
- Shell has emerged as a surprise bidder to acquire Indian RE company Sprng Energy. Australian infrastructure fund Macquarie and Canadian pension fund CPP Investment Board (CPPIB) are the other potential bidders.
Export – Import Trends
As compared to previous month figures, the solar cells and modules export activities have increased by 19% and 68% respectively while solar cells and modules import activities has decreased by 11% and 33% respectively in December 2021.
Import-export data of solar cells and modules
Source: Ministry of Commerce and Industry, JMK Research
GTAM Traded Volume
During January 2022, the green term-ahead market traded 137 MU volume, with 20.89 MU in the solar segment and 116.17 MU in the non-solar segment. This is 34% less than the previous month. The average trade price in IEX GTAM for the same month was INR 3.8/kWh.
The PXIL Green Term-Ahead Market reported 6.97 MU volume in January 2022 with a significant decrease of 97% on MoM basis. The average traded price was INR 4.32/kWh during January 2022.
GTAM traded volume and average traded price trend
Source: IEX, PXIL, JMK Research
Module Price Trends
Comparing on m-o-m basis, price for global mono PERC modules and mono PERC India modules both have declined by 0.74% in January 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 |
|
MNRE |
29th-Jan-2022 | |
|
MoP |
29th-Jan-2022 | |
|
CERC approves degradation of an applicant from Category IV to Category V trading licensee |
CERC |
23rd-Jan-2022 |
|
CERC Eases Rules, Compliances For Generators, REC Certificates
|
CERC |
22nd-Jan-2022 |
|
CERC ruled to amend billing mechanism of PPA’s signed in 2012
|
CERC |
21st-Jan-2022 |
|
Amendment on Approved Models and Manufacturers of Solar Photovoltaic Modules, Order, 2019 by MNRE |
MNRE |
13th-Jan-2022 |
|
APTEL sets aside BERC order which denied compensation claims |
APTEL |
13th-Jan-2022 |
|
CERC |
10th-Jan-2022 | |
|
APTEL ruled in favour of developer, grants extension in 50 MW wind project |
APTEL |
11th-Jan-2022 |
|
CERC |
8th-Jan-2022 | |
|
CERC directs CTUIL to grant ISTS connectivity to Jamnagar refinery of RIL |
CERC |
5th-Jan-2022 |
|
CERC |
3rd-Jan-2022 | |
|
MoP |
29th-Dec-2021 | |
|
CERC approves tariff for 190 MW ISTS connected Wind Power Project at Nokh Solar Park |
CERC |
21st-Dec-2021 |
|
MoP |
20th-Dec-2021 |
State
|
Policy Name |
Issuing Agency |
State |
Date of Issue |
|
BERC |
Bihar |
21st-Jan-2022 | |
HPERC Sets INR 2.49/kWh as Average Power Purchase Costs for Himachal DISCOMs | HPERC | Himachal Pradesh | 3rd-Jan-2022 |
|
KERC directed the state DISCOM to compensate the solar developer over “Change in Law” Claim |
KERC |
Karnataka |
3rd-Jan-2022 |
| RERC identifies BCD increase on solar inverters as a Change in Law event | RERC | Rajasthan | 30th-Dec-2021 |
| RERC ruled to allow DISCOM time until FY2024 to clear RPO backlog | RERC | Rajasthan | 23rd-Dec-2021 |