Monthly RE update – January 2022

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

SECI, 1200 MW, Wind Tranche XIII, Pan India Jan 2022

Wind

Project Development

1200

EMD – INR 1.326 million/MW

PBG – 3.315 million/MW

22%

24 months

18th-Feb-2022

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

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

GUVNL, 500 MW, Solar Phase XIII, Gujarat, Jan 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

GSECL, 220 MW, Solar (EPC),Gujarat, Jan 2022

Utility Scale Solar

EPC with Land

220

EMD – INR 0.4 million/MW

PBG – INR 0.4 million/MW

1st-Feb-2022

NTPC REL, 150 MW, Wind (EPC), Pan India, Jan 2022

Wind

EPC

150

EMD – INR 100 million

24th-Feb-2022

GSECL, 131 MW, Solar (EPC), Gujarat, Jan 2022

Utility Scale Solar

EPC

131

EMD – INR 52.4 million

PBG – 5% of the EPC contract price

12 months

25th-Feb-2022

GIPCL, 75 MW, Solar (EPC), Gujarat, Jan 2022

Utility Scale Solar

EPC75

EMD – INR 30 million

PBG – 10% of the EPC cost

11th-Feb-2022

BESCOM, 50 MW, Rooftop Solar, Karnataka, Jan 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

GSECL, 35 MW, Solar (EPC), Gujarat, Jan 2022

Utility Scale Solar

EPC

35

EMD – INR 14 million

PBG – 5% of the EPC contract price

12 months

25th-Feb-2022

CEL, 25 MW, Solar (EPC),Maharashtra, Jan 2022

Decentralized Solar

EPC

25

6 months

29th-Jan-2022

CCL, 20 MW, Solar (EPC),Jharkhand, 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


PEDA, 16 MW, Solar (EPC),Punjab, Jan 2022

Utility Scale Solar

EPC

16

EMD – INR 16 million

PBG – 10% of the contract value

10 months

18th-Jan-2022

CESC, 15 MW, Rooftop Solar,Karnataka, Jan 2022

Rooftop Solar

15

EMD for 1 to 3 kW – INR 3.75 million

Above 3 to 10 kW – INR 1.5 million

Above 10 to 100 kW – INR 1.15 million

Above 100 to 500 kW – INR 0.54 million

29th-Jan-2022

DVC, 12 MW, Solar (EPC), Jharkhand, Jan 2022

Utility Scale Solar

EPC

12

EMD – INR 5.83 million

28th-Feb-2022

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

Utility Scale Solar

EPC

10

EMD – INR 0.5 million

PBG – 10% of the EPC contract value

25%

9 months

31st-Jan-2022

HESCOM, 10 MW, Rooftop Solar, Karnataka, 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

DPL, 5 MW, Solar Phase II(EPC), West Bengal, Dec 2021

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

MREL, 5 MW, Solar(EPC),Maharashtra, Jan 2022

Utility Scale Solar

EPC

5

EMD – INR 0.2 million

9 months

10th-Feb-2022

WBPDCL, 5 MW, Floating Solar (EPC),West Bengal, Jan 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

NVVN, 3.5 MW, Rooftop Solar,Pan India, 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.

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/MW

Ceiling Tariff – INR 2.30/kWh

19%

9 months

31st-Jan-2022

SECI, 50 MW, Solar PVand Agro PV, Tamil Nadu, Jan 2021

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)

NTPC, Rajasthan, 735 (3*245) MW, BOS, Oct 2021

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

monthly RE

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.

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

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

Domestic consumers are free to install rooftop solar by themselves or any vendor of their choice under government scheme

MNRE

29th-Jan-2022

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

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

SJVN Limited (SJVNL) is issued a Category ‘I’ licence for inter-State trading in electricity in whole of India

CERC

10th-Jan-2022

APTEL ruled in favour of developer, grants extension in 50 MW wind project

APTEL

11th-Jan-2022

CERC proposes to grant Category ‘V’ Inter-state trading license to power trading firm “Instant Ventures Limited”

CERC

8th-Jan-2022

CERC directs CTUIL to grant ISTS connectivity to Jamnagar refinery of RIL

CERC

5th-Jan-2022

CERC recently ruled that power generators and procurers should mutually settle claims under the ‘Change in Law’ provisions

CERC

3rd-Jan-2022

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

MoP

29th-Dec-2021

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

CERC

21st-Dec-2021

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

MoP

20th-Dec-2021

State

Policy Name

Issuing Agency

State

Date of Issue

Bihar State Commission approves tariff for 200 MW grid connected ground mounted solar power plant to be setup in the State

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

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