Monthly RE update – July 2021

Monthly RE update – July 2021

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Tenders

  • About 1551.2 MW of solar tenders were issued in July 2021. 600 MW of solar tender was floated by NHPC for grid connected solar PV project under Ultra Mega Renewable Energy Power Parks (UMREPP) Scheme of MNRE in Rajasthan.
  • SECI and NTPC issued 100 MW and 500 MW solar tender under EPC with land category. 
  • In addition, MPUVNL has floated a 225 MW of solar tender under component-A of KUSUM scheme in Madhya Pradesh.

Details of new tenders issued in July 2021

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

NHPC, 600 MW, Solar (EPC), Rajasthan, Jul 2021

Utility Scale Solar

EPC

600

PBG – 5% of the contract value

 

18 months

31st-Aug-2021

NTPC, 500 MW, Solar (EPC), Pan India, Jul 2021

Utility Scale Solar

EPC with land

500

     

10th-Aug-2021

MPUVNL, 225 MW, Solar (under KUSUM), Madhya Pradesh, Jul 2021

Small Scale Solar

Project Development

225

PBG – INR 0.5 million/MW

15%

9 months

31st-Aug-2021

REC Power Distribution Company, 125 MW, Solar (EPC), Uttar Pradesh, Jul 2021

Utility Scale Solar

EPC

125

     

12th-Aug-2021

SECI, 100 MW, Solar (EPC), Chhattisgarh, Jul 2021

Utility Scale Solar

EPC with land

100

PBG – 3% of the contract value

 

18 months

9th-Sep-2021

ITI, 1.2 MW, Solar (EPC), Uttar Pradesh, Jul 2021

Small Scale Solar

EPC

1.2

EMD – INR 0.4 million

 

12 months

3th-Aug-2021

PBG: Performance Bank guarantee
EMD: Earnest Money Deposit
Source: JMK Research

SECI has reduced its 2500 MW UREMPP tender capacity to 1200 MW

SECI has reduced its 2500 MW Solar ISTS-X Ultra Mega Renewable Energy Power Parks (UMREPP) in Karnataka tender to nearly half of its capacity i.e. 1200 MW. The scheduled commissioning date for commissioning of the full capacity of the project is 18 months from the effective date of the PPA. Earlier, the commissioning timeline was 15 months from the effective date of PPA. Developers can submit a single bid for any quantity from 50 MW to 1200 MW, in multiples of 10 MW only. Also, the PV modules included in the first list under the Approved Models and Manufacturers of Solar Photovoltaic Modules, order are allowed for the projects. Already commissioned projects will not be considered. However, projects under construction or projects that are not yet commissioned will be considered in case these projects are not already accepted under any other central or state schemes. The last date for bid submission is 3rd September 2021.

NIT for procurement of power from 2000 MWh Standalone Energy Storage Systems

SECI has issued a notice inviting tender for the procurement of power from a cumulative capacity of 2000 MWh of Standalone Energy Storage Systems. The projects will be set up on Build Own Operate (BOO) basis. SECI will sign a Power Purchase Agreement with the successful bidders for a period of 25 years. The tender document is expected to be made available by 31st August 2021. 

PEDA announced a tender for 12,935 Residential Hybrid Solar PV Projects in Punjab

Punjab Energy Development Agency (PEDA) has announced a tender for 12,935 residential hybrid solar PV projects (0.5 kW, 1 kW, and 1.5 kW capacity each) across Bathinda, Punjab. The scope of the tender includes design, manufacturing, supply, erection, testing, and commissioning. The last date for bid submission is August 17, 2021. Interested bidders needs to pay an earnest money deposit of Rs 10 million. 

Date extension

Tender Name

Technology

Tender Scope

Capacity (MW)

Other Details

Minimum CUF

Commissioning timeline

Bid Submission Date

SECI, Pan India, 2500 MW, Thermal + RE, Mar 2020

Utility Scale Solar

Project Development

2500

EMD – INR 0.5 million/MW

PBG – INR 0.1 million/MW

 

30 months

12th-Aug-2021

REMCL, 740 MW, Solar, Pan India (Railway Land), Jun 2021

Utility Scale Solar

Project Development

740

EMD – INR 0.4 million/MW

PBG – INR 0.8 million/MW

17%

18 months

26th-Aug-2021

PSPCL, 250 MW, Solar, Pan India, May 2021

Utility Scale Solar

Project Development

250

     

3rd-Aug-2021

PSPCL, 250 MW, Solar, Punjab, May 2021

Utility Scale Solar

Project Development

250

     

31st-Jul-2021

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

Solar and Agro PV

EPC

50

PBG – 3% of the contract value

24.1%

12 months

20th-Aug-2021

NHPC, 50 MW, Floating Solar (EPC), Kerala, Jun 2021

Floating Solar

EPC

50

PBG – 5% of the contract value

 

12 months

5th-Aug-2021

REMCL, 15 MW, Solar with 7 MW/ 14 MWh BESS, Maharashtra (Railway Land), Jun 2021

Solar + BESS

Project Development

15

PBG – INR 0.4 million/MW

   

9th-Aug-2021

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

Floating Solar

Project Development

15

EMD – INR 13.5 million

PBG – INR 27 million

21%

18 months

17th-Aug-2021

Source: JMK Research

Auction Completed

Winners in the latest RE auctions in Utility Scale Projects

Source: JMK Research

Tender Name

Capacity tendered (MW)

Capacity allotted (MW)

Minimum CUF

Commissioning timeline

Winners Details

RUMSL, 550 MW, Solar, Agar Madhya Pradesh, Jan 2020

550

550

 

24 months

O2 Power- 350 MW (Rs 2.44/ kWh)

Avaada – 200 MW (Rs 2.46/kWh)

MSEDCL, 500 MW, Solar, Pan India, May 2021

500

500

19%

15 months

Acme Solar – 300 MW (Rs 2.42/kWh)

Renew Power – 200 MW (Rs 2.43/kWh)

MSEDCL, 500 MW, Wind-Solar Hybrid, Pan India, May 2021

500

500

30%

18 months

Tata Power – 300 MW (Rs 2.62/kWh)

Azure Power – 200 (Rs 2.62/kWh)

RUMSL, 450 MW, Solar, Shajapur, Madhya Pradesh, Jan 2020

450

450

 

24 months

NTPC – 220 MW (Rs 2.33/kWh)

SolarArise – 125 MW (Rs 2.34/kWh)

NTPC – 105 MW (Rs 2.35/kWh)

KSEB, 200 MW, Rooftop Solar, Kerala, Feb 2021

200

118.5

 

Up to 30 kW – 3 months

30 kW and Above – 6 months

Tata Power Solar – 84 MW

Power One Micro Systems – 0.5 MW

Drudic Energy – 1 MW

Ishaan Solar Power – 1 MW

Bingas Electrical – 5.5 MW

Kondaas Automation – 26 MW

BSS Solar – 0.5 MW

Source: JMK Research

Bid Submission

Tender NameCapacity tendered (MW)Capacity Bidded (MW)Minimum CUFCommissioning timelineBidders Details
SECI, 1785 MW Solar, Rajasthan, Mar 202117851098517%18 monthsAcme – 1785 MW
Adani – 600 MW
O2 Power – 600 MW
NTPC – 600 MW
Azure Power – 300 MW
SJVN – 300 MW
Ayana Renewable – 300 MW
Renew Power – 300 MW
Tata Power – 500 MW
Avaada – 400 MW
Coal India – 200 MW
Torrent Power – 450 MW
Sprng Energy – 400 MW
Aljomaih – 150 MW
SolarArise – 100 MW
Evergreen – 300 MW
Brightnight – 400 MW
UPC-300 MW
IB Vogt- 300 MW
SolarPack – 400 MW
HES & SSICPL – 600 MW
Shirdi Sai – 400 MW
Sekura – 300 MW
KS Infra – 300 MW
ITPN Industries – 400 MW
Tepsol Saur Urja – 300 MW
RUMSL, 500 MW, Neemuch Madhya Pradesh, Jan 20205007500 24 monthsAvaada – 500 MW
NHDC Ltd – 500 MW
Azure Power – 500 MW
Acme Solar – 500 MW
Renew Power – 500 MW
GAIL India – 500 MW
Torrent Power – 500 MW
SJVN Limited – 500 MW
Aljomaih- 500 MW
Tata Power – 500 MW
Ayana Renewable – 500 MW
NTPC – 500 MW
Sprng Energy – 500 MW
O2 Power- 500 MW
Aditya Birla – 500 MW

Source: JMK Research

Installed Capacity

In June 2021, a combined total of 1292.26 MW of solar and wind energy capacity was added, taking the cumulative RE capacity to 96.95 GW.

RE Installations

Source: CEA, JMK Research

State wise RE Installed capacity in June 2021

Rajasthan added the maximum renewable energy capacity in June 2021 with 508.12 MW followed by Gujarat (320.69 MW) and Haryana (117.04 MW).

Source: CEA, JMK Research

Note: This chart includes solar, wind, and other RE capacities

Recently Commissioned Projects

Developer

Technology

AC Capacity (MW)

State

Date of Commissioning

Jakson Limited

Solar

50

Uttar Pradesh

Jul 2021

Amplus Solar

Solar (Open access)

48

Chhattisgarh

Jul 2021

Sprng Energy

Wind

39

Tamil Nadu

Jul 2021

Sprng Energy

Solar

21.5

Andhra Pradesh

Jul 2021

NTPC

Floating Solar

10

Andhra Pradesh

Jul 2021

Gro Solar Energy

Solar

7

Maharashtra

Jul 2021

KPI Global Infrastructure

Solar

7.76 (DC)

Gujarat

Jul 2021

GMR Hyderabad International Airport Ltd.

Solar

5

Telangana

Jul 2021

GUVNL

Rooftop Solar

1

Gujarat

Jul 2021

Source: Industry news articles, JMK Research

NTPC to launch its 100 MW solar project in Ramagundam

NTPC-Ramagundam has decided to commission the country’s largest floating solar power plant with 100 MW capacity at its thermal power project in a phased manner, with the launch of 15 MW segment by the month end. NTPC have plans to commission at least 10 to 15 MW segments each, every month from now on. Around Rs 423 crore has been invested on the largest floating solar project.

NTPC to build India’s largest solar energy project in Gujarat

On receiving an approval from MNRE, NTPC’s renewable energy company is ready to set up a solar energy project with a capacity of 4,750 MW in Gujarat. This solar project will be India’s largest solar park to be developed by NTPC. The company has received an approval under Mode 8 Ultra Mega Renewable Energy Power Park of Solar Park Scheme. The NTPC project will be almost twice the capacity of the Bhadla solar park in Rajasthan, currently the largest single-location solar power project in the country. Recently NTPC has revealed its plans for building 60 GW renewable energy by 2032. 

South Eastern Coalfields (SECL), subsidiary of Coal India, is foraying into solar energy with a 40 MW solar project

South Eastern Coalfields (SECL), subsidiary of Coal India, is entering into solar energy sector with a 40 MW solar projects. The projects location will be in Bhatgaon and Bishrampur areas and will be executed by Coal Lignite Urja Vikas Private Limited. The project has a total cost of Rs 1.486 billion. The company also has plans to install solar projects up to 142 MW in the next three years. 

Monthly RE Generation

In June 2021, RE sources generated 17,090.30 GWh, an increase of 17.7% from May 2021 generation. Taking into account energy generation from renewable energy sources, wind energy constitutes for major share of 60% due to the peak wind season in India, followed by solar at 35% and other RES (including biomass) at 7%.

Source-wise Renewable Energy Generation (GWh) – India

Source: CEA, JMK Research

monthly RE

PV Manufacturing – Capacity addition in July 2021

The Indian solar PV manufacturers are upgrading their capabilities to meet the evolving needs of the domestic and foreign demand for higher-efficiency modules. Four leading players have increased their module and cell manufacturing capacity this month.

Key PV Manufacturers – Existing Vs Newly added capacity (in GW)

Source: Company Websites, Industry News Articles, JMK Research

Note: Values mentioned in the table represent nameplate production capacities

  • Vikram Solar has added 1.3 GW of solar PV module manufacturing capacity in Tamil Nadu. With this addition, Vikram Solar’s cumulative PV module manufacturing capacity has reached 2.5 GW, which is currently the largest in India.
  • Premier Energies has added 750 MW Solar Cell and 750 MW Solar Module manufacturing facility in Hyderabad, taking the cumulative solar PV module manufacturing capacity to 2 GW. 
  • RenewSys has set up a solar PV module manufacturing facility in Maharashtra with a capacity of up to 2 GW.
  • Apart from above three domestic manufacturers, First Solar has also announced its plan to build its first module manufacturing facility of 3.3 GW capacity in Tamil Nadu. The facility is expected to be operational in the second half of 2023.

Investments/ Deals

Company Name

Deal Type

Sector

Asset Acquired

Investor

Deal Value

Stake Acquired

Other Details

Avaada

Equity

Solar

 

Global Power Synergy Public Company (GPSC)

$453.29 million

41.6%

With this deal GPSC renewable energy capacity reached to 2,145 MW or 32% of the total capacity of GPSC

Acme Solar

Bond

Solar

   

$334 million

 

The amount has been raised for their 12 solar projects through the issuance of offshore green bonds with a tenure of five years and a coupon rate of 4.7%

Azure Power

Equity

Solar

 

OMERS Infrastructure

$219 million

19.4%

 

AMP Energy

Equity

Renewables

 

Copenhagen Infrastructure New Markets Fund

$100 million

 

Amp Energy and CI NMF have targeted an initial 1.7 GW portfolio of renewable energy projects. Also, this deal is CI NMF’s first investment in the Indian renewable energy market

Azure Power

Debt

Solar

 

Mitsubishi UFJ Financial Group (MUFG)

$163 million

 

The funding will be provided for Azure Power‘s 300 MW solar project in Rajasthan

Fotowatio Renewable Ventures

Acquisition

Solar

100 MW

IndiGrid

$90 million

100%

This is the first renewable energy acquisition by any InvIT in the country.

Asian Infrastructure Investment Bank (AIIB)

Debt

Solar

 

Enel Green

$50 million

 

The solar plant of 300 MW is located in Rajasthan with a total project cost of $200 million.

Lightsource Renewable Energy (India)

Acquisition

Solar

50 MW

Torrent Power

$42.6 million

   

Sangam Renewables (Waaree)

Acquisition

Solar

 

Aditya Birla Renewables

$5.6 million

100%

 

Renew Sunlight Energy (Renew Power)

Equity

Solar

 

Mahindra & Mahindra

$2.15 million

31.2%

ReNew Sunlight Energy will build, own and operate the 58 MWp captive solar power plant from which Mahindra & Mahindra’s manufacturing plants will consume power under open access route

MYSUN

Debt

Rooftop Solar

 

Tata Cleantech Capital Limited

$2 million

   

Statkraft India

Acquisition

Rooftop Solar

8.9 MW

Fourth Partner Energy

     

Senvion India

Acquisition

Wind Turbine OEM

 

Alfanar

 

100%

 

Federal Bank

Equity

Green Energy Financing

 

IFC

$126 million

4.99%

 

Source: JMK Research

NTPC Renewable Energy IPO to hit markets in 2022-23

NTPC is planning to list its subsidiary company NTPC Renewable Energy in 2022-23. This step will help the company to achieve its huge target of 60 GW energy generation by renewable sources by 2032. The company is also planning to invest Rs 2 to 2.5 lakh crore for this goal and they are aiming to install 7-8 GW of renewable energy every year. The company’s equity component would be around Rs 50,000 crore and the remaining will be met through long-term loans, debentures, bonds etc. Currently NTPC has approximately 1365 MW of renewable energy capacity and has plans to elevate it to 60 GW of clean energy. 

CCI approves Adani Green’s acquisition of entire stake in SB Energy

CCI has approved the Adani Green’s acquisition of the entire renewable energy portfolio of 4,954 MW capacity of SB Energy, that is spread all over the country. This deal makes it the largest renewable energy investment in the country till date. The deal value for the particular acquisition was $3.5 billion.

Reliance Industries looks to buy Norwegian solar module manufacturing company REC Group

Reliance Industries Ltd is planning to buy REC Group a Norwegian solar manufacturer company in order to upscale its growth in the renewable energy sector. Last month the company has revealed its plans to invest around Rs 75,000 crore in the renewable energy business in the next three years. REC Group has an installed capacity of 10 GW capacity around the globe while they have an annual solar panel production capacity of 1.8 GW. 

Omers, Norfund in talks to pick up 20% stake in Avaada Energy for $200 million

Omers a Canada-based pension fund and Norfund, Norway government’s private equity arm are planning to invest $ 200 million in Avaada Energy for a 20% stake, pegging the value of the four-year old company at $1 billion. Talks with the two funding organisation are in an advanced stage which further requires site visits that has been delayed due to coronavirus pandemic which led to travel restrictions between March and May. 

Race for Mytrah’s renewable energy assets: Adani Group, Renew Power, KKR, CPPIB, Ayana among early suitors

Mytrah Energy has approached a group of strategic and private equity investors as it plans to sell its solar and wind portfolio and address its debt issues. The company is planning to cheque size of $2.1 billion to $2.3 billion for the combined portfolio. The transaction has been launched recently by investment bank Barclays and teasers have been sent to various players  in the industry. Adani Group, KKR, CPPIB, CDC-backed Ayana Renewable Energy and Renew Power are the few names who have expressed their interest in this deal. 

Hamsa Asset Management Pvt Ltd launching India’s first Renewable Energy Alternative Investment Fund

Hamsa an asset management firm is launching India’s first renewable energy alternative investment fund. Hamsa Solar Fund I is India’s first offering of its kind for investment in renewable energy. This asset class has been limited to institutional investors until now.

The first close of the offering will be within 18 months from launch with a minimum size of Rs 20 crores. The final close will be within 36 months from launch with a target size of Rs 50 crores. There is a green-shoe option of an additional Rs 20 crores. In order to participate, the minimum investment of Rs 1 crore needs to be invested by investors. 

GAIL floats offer to buy stake in operating solar projects

GAIL India Ltd has invited an expressions of interest from owners of solar projects to acquire the operational assets. According to the tender document, GAIL will be acquiring at least 50% stake in solar projects of at least 50 MW capacity which are owned and operated by a Special Purpose Vehicle. The project must be located in a solar park and must have a long-term PPA with a central government agency such as SECI, NTPC etc. The project must have been in continuous operation for at least one year. The interested party offering the SPV for acquisition should have at least 50% equity stake in it. 

Comparing on m-o-m basis, global as well as India module prices have remained almost the same in July 2021.

Solar modules price trends

Source: PVInfoLink, JMK Research

Note: India Prices are FOB prices

Monthly SECI Payments

The Solar Energy Corporation of India Limited (SECI) paid nearly Rs 6.61 billion to developers for the purchase of solar and wind power in June 2021. Compared to May 2021, the payment disbursal has significantly increased by ~34.6% in June 2021.

Monthly payments by SECI to solar and wind developers

Source: SECI, JMK Research

Policies and Regulations

Central

MNRE Grants Time Extension for RE Projects Commissioning considering Pandemic Effects

  • MNRE with its notification dated 29 June 2021 has granted time extension in Scheduled Commissioning date of renewable projects considering ongoing pandemic effects.
  • MNRE stated that second surge of Covid-19 begins from 1st April 2021 to 15th June 2021, and the same period can be allowed as time extension to RE projects being implemented by MNRE designated agencies. 

Ministry of Power Allows DISCOMs to Exit PPAs After Completing Tenure

  • Ministry of Power (MoP) with its notification dated 5 July 2021 has approved an option for distribution licensees (DISCOMs) to continue or exit from power purchase agreements (PPAs) for projects that have completed 25 years of operation, or the tenure specified in the PPA with the central generating stations. 
  • MoP has issued draft proposals in December 2020, enabling DISCOMs to either continue or exit from PPAs after the term is completed. 
  • As per aforementioned notification DISCOMs must give a notice of six months ahead of relinquishing power, to exit from PPAs. The request to give up the power will be considered only after DISCOMs have cleared all their past dues. 
  • Once relinquished by DISCOMs, any share for central power generating stations would not be taken back by DISCOMs under the same PPA conditions. 
  • This notification also states that Central power generating stations would be allowed to sell such relinquished energy in the open market through power exchanges, including real-time markets and term-ahead markets. 

APTEL Dismiss State Commission’s Order, Reducing Trading Margin to Rs 0.02/kWh for SECI

  • APTEL in its Order dated 2 July 2021 has refused to reduce the margin from Rs. 0.07/kWh to Rs.0.02/kWh as approved by the Delhi Electricity Regulatory Commission (DERC) and the Punjab State Electricity Regulatory Commission (PSERC) in their earlier orders. 
  • DERC in its order dated 31 December 2020 had approved the procurement of 200 MW of solar power by the Tata Power Delhi Distribution Limited (TPDDL) under the power sale agreement (PSA) signed with SECI and had lowered the trading margin to Rs. 0.02 /kWh. 
  • PSERC (Punjab Electricity Regulatory Commission) had approved the procurement of 500 MW of wind-solar hybrid power by the Punjab State Power Corporation Limited (PSPCL) and reduced the trading margin to Rs. 0.02 /kWh. 
  • APTEL noted that the nature of the transactions being interstate operations and not intrastate and the State Commissions had no jurisdiction to deal with the trading margin of the interstate trading licensee (SECI). 

MNRE issues Amendments to Competitive Bidding Guidelines for Wind-Solar Hybrid Projects

  • Ministry of New and Renewable Energy (MNRE) with its notification dated 23 July 2021 has introduced amendments to the competitive bidding process guidelines for grid-connected wind-solar hybrid projects. 
  • As per these guidelines the Solar Energy Corporation of India (SECI) will be treated as a procurer and not a nodal agency. 
  • As per the guidelines, the hybrid power generator will be allowed to fully or partly commission the project even before the scheduled commissioning date. However, a hybrid power generator must have long-term access from the scheduled commissioning date. 
  • These amendments also state that interstate transmission system and intrastate transmission systems substations at the delivery point and the transmission infrastructure for which the generator applies for connectivity must be completed before the project’s scheduled commissioning date so that the two timelines match. 
  • As compared to earlier the guidelines that allowed for an extension of not more than 60 days, these amended guidelines says that after the grant of connectivity, if the generator has complied with all the application formalities and procedures outlined, such projects will be eligible for suitable time extension in their scheduled commissioning date. 
  • According to the new amendments, DISCOMs can directly procure power from hybrid power generators. 
  • Aforementioned amendments also state that DISCOMs must have a payment security fund to support payment for at least three month’s billing of all projects tied up with the fund. 

State

Gujarat

GERC Amends Net Metering Regulations, 2016 in its draft notification

  • According to the draft amendment net metering will be permitted for loads up to 10 kW, and gross metering will be provided for loads above 10 kW. The installed capacity has to be in the range of 1 kW to 1 MW. 
  • Ministry of Power (MoP) has recently amended the Electricity (Rights of Consumers), 2020, Rules permitting net metering to prosumers for loads up to 500 kW or up to the approved load, whichever is lower. 
  • Below are the highlights of the GERC net metering rooftop solar PV Grid interactive systems and regulations, 2021. 

Category

Residential Consumers

Captive Consumers

Third Party Sale

Capacity Restriction

No restriction on installed capacity

No restriction on installed capacity

No restriction on installed capacity

Transmission and Wheeling Charges

None

As decided by the Commission from time to time

As decided by the Commission from time to time

Cross Subsidy and Additional Surcharges

Not applicable for self-consumption. Applicable in case of third-party sale.

Exempted

As decided by the Commission from time to time

Energy Accounting

As per billing cycle

For HT/EHV consumers:
Energy set-off between 07.00 to 18.00 hours of same day

For LT demand-based consumers: Energy set-off between 07.00 to 18.00 hours in the billing cycle

For LT other than demand-based consumers:
Energy set-off shall be on billing cycle basis.

For HT/EHV consumers:
Energy set-off between 07.00 to 18.00 hours of same day

For LT demand-based consumers: Energy set-off between 07.00 hours to 18.00 hours in the billing cycle

For LT other than demand-based consumers:
Energy setoff shall be on billing cycle basis.

Surplus Injection Compensation

For self-consumption:

Rs. 2.25/Unit for first 5 years, thereafter 75% of average tariff discovered in state auctions

For third party sale:

75% of average tariff discovered in state auctions

For MSME:

Rs. 2.25/Unit for first 5 years, thereafter 75% of average tariff discovered in state auctions

For others:

75% of average tariff discovered in state auctions

75% of average tariff discovered in state auctions

Banking Charges

None

MSME units and other than demand based consumers:
Rs. 1.10/kWh on energy consumed

For demand-based consumers:
Rs. 1.50/kWh on energy consumed

For Government Buildings: Exempted

MSME units and other than demand based consumers:
Rs. 1.10/kWh on energy consumed

For demand-based consumers:
Rs. 1.50/kWh on energy consumed

For Government Buildings: Exempted

GERC Approves Tariff of Rs. 2.22/kWh Discovered in Torrent’s 300 MW Solar Auction

  • Gujarat Electricity Regulatory Commission (GERC) in its order dated 12 July 2021 has approved Torrent Power to adopt the tariff discovered through a competitive bidding process for procuring power up to 300 MW grid-connected solar photovoltaic (PV) projects in Gujarat. 
  • GERC directed Torrent Power to sign and execute supplemental power purchase agreements (PPAs) for 150 MW capacity under the green shoe option after adding the late payment surcharge clause. 
  • Previously, Torrent Power has floated the tender in Jan 2019, however, the solar developer reissued the tender to meet its renewable purchase obligation (RPO) in August 2019.
  • Adani Green Energy and Torrent Power Generation were the declared winners and both had quoted a tariff of Rs. 2.22 /kWh and secured 150 MW capacity each.
  • Torrent Power would be required to sign the supplemental PPAs with the successful bidders accordingly. 

GUVNL withdraws subsidy to 4000 solar projects

  • GUVNL has withdrawn subsidy from small-scale distributed solar projects, affecting about 4,000 projects with a total capacity of around 2,500 MW signed power. 
  • The purchase price of power produced was fixed at Rs 2.83/kWh. 
  • In March 2019, the government has issued ‘Policy for Development of Small Scale Distributed Solar Power Projects’ to encourage the distributed generation of solar energy.
  •  According to the policy, any eligible entity can set up a solar plant with capacity ranging from 0.5 MW to 4.0 MW and supply the solar power produced to the nearest GETCO substation. 

Himachal Pradesh

HPERC Reduces Levelized Tariffs for Solar Projects Up to 5 MW

  • Himachal Pradesh Electricity Regulatory Commission (HPERC) with its order dated 22 July 2021 has issued a generic levelized tariff for solar projects (up to 5 MW) for FY 2021-22. 
  • The following Levelized tariff has been mentioned below: 

Levelized tariff (Rs/kWh)

Project Location

Up to 1 MW

1-5 MW

Non-industrial, non-urban areas

3.38

3.34

Industrial, urban areas

3.45

3.41

  • Last year, the Commission has set the tariff at Rs. 3.41/kWh for up to 1 MW in areas other than urban localities and industrial hubs and Rs 3.48/kWh for Industrial and urban areas. 

Karnataka

KERC Proposes Net Metering for Rooftop Solar Systems Up to 500 kW

  • Karnataka Electricity Regulatory Commission (KERC) has come with a discussion paper on determination of tariffs for solar projects in FY 22 to FY 24. Under this discussion paper it is mentioned, that any consumer opting for net metering shall install rooftop solar up to 500 kW. 
  • Previously, KERC had proposed net metering for rooftop solar projects between 1 kW and 10 kW and gross metering for capacity over 10 kW. 
  • KERC in its proposal had suggested generic tariffs of Rs. 3.82/kWh for residential rooftop solar systems between 1 kW and 10 kW, and Rs. 2.84/kWh for projects between 1 kW and 2 MW (large-scale). 
  • As per KERC, the proposed tariffs were applicable for the control period between FY 2022 and FY 2024. 
  • KERC has scheduled a public hearing on ‘Determination of tariffs in respect of solar power projects (including solar rooftop photovoltaic projects) for FY 2022 and FY 2024 on 4 August 2021. 

APTEL Directs KERC to Reconsider Decision to Slash Tariff of Rooftop Solar Project by 46%

  • Appellate Tribunal for Electricity (APTEL) in its order dated 14 July, 2021 has directed Karnataka Electricity Regulatory Commission (KERC) to review its earlier order regarding the tariff reduction for the delayed rooftop solar projects and pass the order within three months from the date of the judgment. 
  • This is in relation to petition filled by Jyothi Enterprises and Jyothi Bio Fuels engaged in the business of storage of dry husk and briquette manufacturing to supply to various industries. The petition was against the earlier order passed by KERC to reduce the tariff of the rooftop solar projects from Rs 9.56 /kWh to Rs 5.20 /kWh for the life of the power purchase agreement (PPA). 
  • Petitioner had also requested APTEL to direct the Bangalore Electricity Supply Company (BESCOM) to pay the amount outstanding against electricity charges at the agreed rate of Rs. 9.56/kWh from the date of supply along with the agreed-upon interest.
  • APTEL asked the Commission to pass the consequential order within three months from the date of pronouncement of the judgment. 

Odisha

OERC Approved DISCOM to Buy 500 MW Solar from SECI at Rs. 2.61/kWh

  • Odisha Electricity Regulatory Commission (OERC) has approved the procurement of 500 MW solar power by GRIDCO from SECI. This project is being developed under the interstate transmission system (ISTS)-connected solar projects linked with manufacturing program (Tranche-I). GRIDCO will be buying the power to fulfil its renewable purchase obligation (RPO) targets. 
  • OERC has directed the tariff to be capped at Rs. 2.61/kWh, including the trading margin of Rs. 0.07 /kWh as proposed by GRIDCO. 
  • GRIDCO submitted that with a total solar tied-up capacity of 1,014 MW and a non-solar capacity of 479.15 MW, it would be able to meet the RPO target for FY 2021- 22. 
  • Also, as the 500 MW solar power will be commissioned before March 31, 2022, the BCD will not be applicable for procuring such power by GRIDCO. 

OERC Directs Odisha DISCOMs and GRIDCO to Auction Surplus Power to Industries

  • Odisha Electricity Regulatory Commission (OERC) in its order dated 20 July, 2021 has directed Grid Corporation of Odisha (GRIDCO) to find a reasonable tariff to sell surplus power to industries in the state by following a transparent bidding process. 
  • GRIDCO and Odisha distribution companies have filed a petition to OERC to approve the sale of surplus power on a medium and long-term basis to industries with captive generating facilities in the state. 
  • GRIDCO and Odisha DISCOMs submitted that over 70 industries in Odisha have captive power generating facilities with total of 6.5 GW capacity, which are connected through grids by Odisha Power Transmission Corporation Limited (OPTCL) or DISCOM’s network. 
  • Petitioners requested that the special concessional price of Rs.3.50/kWh for additional electricity beyond 80% of contract demand be treated as the minimum floor price. 
  • After scrutiny of petitioner submissions OERC acknowledged that there might be some consumers who are willing to pay the price above the special concessional price of Rs. 3.50 /kWh according to the current market condition.
  • OERC directed GRIDCO to follow a transparent bidding process to find a reasonable tariff, which should be higher than the minimum floor price, for trading surplus power to industries in Odisha. 

Punjab

PSERC Issues Draft Regulations for Grid-Connected Rooftop Solar and Net Metering for Comments

  • Punjab State Electricity Regulatory Commission (PSERC) has issued the draft Grid-Interactive Rooftop Solar Regulations, 2021 and invited comments from interested stakeholders by 20 July 2021. 
  • According to the proposed regulation, all consumers falling under the jurisdiction of supply of the DISCOM could install a rooftop solar system under net metering, net billing, or gross metering arrangements. 
  • The DISCOM would provide the net metering facility to the consumers with an approved load of up to 500 kW
  • As per this draft regulation the minimum capacity of the rooftop system under the net metering arrangement has been set at 1 kW. The minimum capacity under the gross metering arrangement would be 50 kW for a single consumer. 
  • PSERC has directed that the maximum capacity of a rooftop solar system, except for domestic category consumers, should not exceed 50% of the approved load or the contract demand of the consumer. 
  • This regulation also states that the cumulative capacity of all rooftop systems to be interconnected with the distribution network should not exceed 80% of the rated capacity of the distribution transformer. 
  • The consumer shall set up the plant within 180 days of receiving the LoA.
  • The approval granted would lapse automatically if the project is not set up even in the extended two months. If the consumer fails to install the system within 180 days or gets the period extended, the application will be cancelled. 
  • As per this draft the rooftop system installed under these regulations will be exempted from all wheeling, cross-subsidy, transmission and distribution, and banking charges.
  • If the DISCOM fails to meet the deadline without a valid cause, the licensee should be liable to pay compensation to the consumer at Rs. 500 /day for each day of delay for systems not exceeding 10 kW. 
  • For systems exceeding 10 kW, the compensation will be Rs. 50 /kW for the daily delay, subject to a maximum of Rs. 2,000 for each day of delay. 

Punjab Commission Allows Deviations in Competitive Bidding Process for Solar Projects

  • Punjab State Electricity Regulatory Commission (PSERC) has permitted deviations in the guidelines for tariff-based competitive bidding process for grid-connected solar PV projects in two separate petitions filed by the Punjab State Power Corporation (PSPCL). 
  • According to the petitions filed, PSPCL will procure power from 250 MW of grid-connected solar projects (located anywhere in India) and 250 MW of grid-connected solar projects of 10 MW and above in Punjab. 
  • For 250 MW grid-connected solar power projects in Punjab of 10 MW and above, PSPCL has proposed a ceiling tariff of Rs 2.70/kWh followed by an e-reverse auction. 
  • PSPCL suggests the minimum project and bid capacity would be 5 MW and with a total capacity offered not exceeding 250 MW. A bidder can offer projects at multiple locations. 
  • For 250 MW of grid-connected solar projects (located anywhere in India), PSPCL had proposed a ceiling tariff of Rs 2.50/kWh in the bidding document that would be followed by an e-reverse auction. 
  • The Commission observed that since it follows the CERC Renewable Energy Tariff Regulations, the procurer may specify the ceiling tariff after adequate due diligence. The Commission would examine the competitiveness of the final discovered tariff at the time of tariff adoption. 
  • The Commission observes that, PSPCL being an independent commercial organization cannot cast any obligation on the State government. As such, the Commission allows the said deviation proposed by PSPCL.

Rajasthan

RERC Extends Net Metering Facility for Rooftop Projects Until September 15, 2021 Considering Pandemic Effects

  • Rajasthan Electricity Regulatory Commission (RERC) has issued a notification dated 30 June 2021 stating that rooftop and small solar grid-connected systems with net metering arrangement which are commissioned up to 15 September 2021, will continue to have the net metering arrangement until the period of connection agreement. 
  • Previously, RERC had stated that the net metering facility for rooftop, and small grid-connected solar systems would be valid for projects commissioned up to 30 June 2021. 
  • RERC had received suggestions from stakeholders to extend the earlier 30 June deadline by three months in view of the Covid-19 crisis and work disruption. 
  • RREC had requested RERC to extend the timeline for the commissioning of rooftop projects with net metering facility by six months up to 31 December 2021 citing the example of 75-day extension granted by the MNRE for renewable energy projects with commissioning dates between 1 April 1 and 15 June 2021 due to the Covid-19 pandemic.
  • RERC also stated that for implementing the Electricity Amendment Rules (Rights of Consumers), 2021, finalized by the Ministry of Power, it would issue the necessary directions as and when required. 

Rajasthan High Court Cancels Public Utility Land Allotment to Adani for Solar Park

  • Rajasthan High Court has cancelled the allotment of public utility land measuring 1,452 bighas (581.56 acres) near Pokhran in Jaisalmer to the Adani Renewable Energy Park Rajasthan (AREPRL).
  • Rajasthan High Court’s division bench has also directed the Rajasthan government to survey the land parcels allotted to Adani and Essel Surya Urja Company of Rajasthan Limited in three villages — Naden, Ugras, and Nagnechinagar.
  • Earlier, Rajasthan government had allocated the land to Adani in 2018. The parcel in question was a stretch of land in Nedan village of Pokhran village and sold to the Adani group company at around Rs. 135 million. Farmers at the Nedan village challenged this land allocation.
  • The parcel was earlier marked as agricultural land which was listed as barren land through an executive order on 30 May 2017, allowing the state to hand it over to Adani for the solar park.
  • The farmers objected to the allocation because lands reserved for cultivation cannot be allotted for any other purposes. They insisted that the entire 3,821 acres were neither wasteland nor barren. Farmers have been cultivating the land for several years.
  • Farmers in their petition also objected to the allocation as it may have a fatal impact on the conservation of the Great Indian Bustard in the region. The land in question is adjacent to Rasla village which is known as Rasla Park, reserved for conserving endangered species. 

Rajasthan Levies Rs. 0.60/kWh Electricity Duty on Captive Solar Projects

  • Rajasthan distribution companies (DISCOMs) and Rajasthan Urja Vikas Nigam Limited have recently issued an order, levying electricity duty of Rs. 0.60 /kWh on the consumption of power from captive solar projects, rooftop solar, and grid-connected small solar projects with the net metering facility. 
  • On 10 July, 2019, the Rajasthan Government’s Finance Department had offered electricity duty exemption on the consumption of power from captive solar projects. The notification was in effect until 31 March, 2020. 
  • Mentioned exemption covered captive solar projects and those set up under the Rajasthan Electricity Regulatory Commission (RERC) Connectivity and Net-Metering for Rooftop and Small Grid-Interactive System Regulation, 2015.
  • This order also states that the amount outstanding for the period from April 1, 2021, to June 30, 2021 (billing month of May 2021 to July 2021), if any, can be recovered in three monthly instalments from the billing month of August 2021 onwards. 
  • Renewable Energy Association of Rajasthan (REAR) has written to the Rajasthan Chief Minister, requesting the state government to implement the incentives available to solar projects under clause 16 of the Rajasthan Solar Policy, 2019. 
  • The REAR has claimed that the stakeholders are deprived of the incentives available to solar projects under the policy, particularly clause 16 of the policy, which covers various facilities, incentives, and relaxations related to banking, transmission, and wheeling charges, and electricity duty, among others. 
  • In their letter to the Chief Minister, the association highlighted the letter issued by the Energy Department of Rajasthan, levying an electricity duty of Rs. 0.6//kWh. 

RERC Adopts SECI’s 1,070 MW Tariff for Solar Projects

  • Rajasthan Electricity Regulatory Commission (RERC) with its Order dated 23 July 2021 has accepted the petition filed by Rajasthan Urja Vikas Nigam Limited (RUVNL) for the adoption of tariff discovered through a transparent bidding process for 1,070 MW of solar photovoltaic (PV) projects. 
  • In November 2020, SECI auctioned for 1,070 MW of solar projects in Rajasthan, set a record breaking (L1) tariff of Rs 2/kWh (Tranche-III). 
  • Aljomaiah Energy and Water Company and Green Infra Wind Energy Limited, a subsidiary of Sembcorp were the winning players in mentioned auction for 200 MW and 400 MW of solar projects, respectively. NTPC Limited quoted the second-lowest bid at Rs. 2.01 /kWh for 600 MW of projects but were only awarded 470 MW under the bucket-filling method. 
  • RUVNL filed a petition for tariff adoption for the power to be purchased from the 1,070 MW of solar projects by three distribution companies on 24 March 2021, for which SECI had conducted the bidding. 
  • RERC stated that the role of the Commission in case of tariff discovery through a competitive bidding process is confined to tariff adoption, on being satisfied that the bidding process was transparent. 
  • RERC adopted the 1,070 MW solar project tariff as mentioned in the power sale agreement between SECI and RUVNL. 

Union Territories

JERC Found 4 UTs and Goa Fail to Comply with Renewable Purchase Obligations

  • Joint Electricity Regulatory Commission (JERC) with its Order dated 5 July 2021 has reviewed renewable purchase obligation (RPO) targets for 2020-21. According to the JERC analysis, except Chandigarh and Andaman & Nicobar Islands, all other union territories and Goa have failed to achieve their solar RPO targets. 
  • JERC stated that it had received RPO compliance data for the FY 2020-21 from six union territories and their plans to meet their targets for FY 2021-22. 

Region

RPO Obligation

Power sale for FY 2020-21 (in MU)

(Actual Sales)

RPO Target to be Met for FY 2020-21 (in %)

Cumulative RPO Target for FY 2020- 21 Including Backlog (Unit End of March 2021)

RPO Excess/Shortfall (in MU)

Goa, Electricity Department

Solar

3575.65

6.1

151.18

-66.94

Puducherry, Electricity Department

Solar

2806.29

6.1

11.53

-472.15

Daman & Diu, Electricity Department

Solar

2084.46

6.1

36.64

-275.21

Dadra & Nagar Haveli and Daman ,Electricity Department

Solar

5142.88

6.1

54.9

-522.54

Chandigarh, Electricity Department

Solar

278.96

6.1

50.72

33.7

Andaman and Nicobar Islands ,Electricity Department

Solar

232.54

6.1

21.025

3.25

Lakshadweep, Electricity Department

Solar

50.86

6

0.45

4.45

Note: Power sale for FY 2020-21 in Mus include solar and non-solar obligation.

  • JERC expressed its displeasure due to the underachievement of RPO targets and directed the department to submit its action plan within a week from the issue of this order.

Supreme Court Lifts Stay Order on Privatization of Dadra & Nagar Haveli, Daman & Diu DISCOM

  • Supreme Court of India has lifted the suspension order imposed by the Bombay High Court on the distribution company (DISCOM) privatisation process.
  • This tendering process was for a 51% equity share in the power DISCOMs for the union territories of Dadra & Nagar Haveli and Daman and Diu, and was earlier halted due to the court order.
  • Earlier, the High Court had suspended the auction after public interest litigation was filed against the privatization of the DISCOM.
  • Torrent Power had emerged as the highest bidder in the auction held in March this year, to acquire the DISCOM in the union territory of Dadra & Nagar Haveli and Daman and Diu.
  • This acquisition was part of the Government of India’s initiative to privatize DISCOMs to make them more efficient.

Uttar Pradesh

UPERC Rejects Part Commissioning of AMP Solar’s Open Access Solar Project

  • Uttar Pradesh Electricity Regulatory Commission (UPERC) has issued an order dated 20 July, 2021 in which the Commission has ruled that AMP Solar Evolution would not be allowed the part commissioning of its two new projects at Tilhar and Begumpur. 
  • The power generated by AMP Solar’s 10 MW Tilhar Solar Project in Uttar Pradesh is for captive use through the interstate transmission system and the distribution network of the Uttar Pradesh Power Transmission Corporation Limited. 
  • This order is in response to AMP Solar submitted petition, requesting the Commission to direct Uttar Pradesh DISCOMs for approving the commercial operation date for part capacity of an open access project developed in Uttar Pradesh. 

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