Monthly RE update – March 2022

Monthly RE update – March 2022

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Tenders

  • In March 2022, 21 new renewable energy (RE) tenders with a total capacity of 1218 MW were issued.
  • About 691.5 MW solar tenders were issued under Component A of KUSUM scheme by MPUVNL, PEDA and KSEBL.

Details of new tenders issued in March 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

MPUVNL, 440 MW, Solar (Under KUSUM Scheme Component A),Madhya Pradesh, Feb 2022

Small Scale Solar

Project Development

440

PBG – INR 0.5 million

Ceiling tariff – INR 3.07/kWh

15%

9 months

4th-Apr-2022

PEDA, 217 MW, Solar (Under KUSUM Scheme Component A), Punjab, Mar 2022

Small Scale Solar

Project Development

217

EMD – INR 0.1 million/MW

PBG – INR 0.5 million/MW

Ceiling Tariff – INR 2.748/kWh

15%

12 months

5th-April-2022

NMMC, 100 MW, Floating Solar, Maharashtra, Mar 2022

Floating Solar

Project development

100

EMD – INR 25 million

PBG – INR 250 million

19%

17 months

24th-April-2022

NLC, 100 MW, Solar (EPC), Pan India, Mar 2022

Utility Scale Solar

EPC

100

EMD – INR 98.51 million

PBG – 5% of the contract value

15 months

8th-Apr-2022

CESL, 86 MW, Solar (EPC),Punjab, Mar 2022

Decentralized Solar

EPC

86

PBG – 10% of the contract price

6 months

1st-Apr-2022

SECI, 44 MW, Solar (EPC), Telangana, Mar 2022 

 

Utility Scale Solar

EPC

44

EMD – INR 51.2 million 

PBG – 4% of the contract value

12 months

17th-May-2022

GSECL, 40 MW, Solar (EPC), Gujarat, Mar 2022

Utility Scale Solar

EPC

40

EMD – INR 16 million

PBG – 5% of the EPC contract price

23%

12 months

6th-Apr-2022

KSEBL, 34.5 MW, Solar (Under KUSUM Scheme Component A), Kerala, Mar 2022

Small Scale Solar

Project Development

34.5

EMD – INR 0.1 million/MW

PBG – INR 0.5 million/MW

15%

12 months

3rd-May-2022

GSECL, 30 MW, Solar (EPC), Gujarat, Mar 2022

Utility Scale Solar

EPC

30

EMD – INR 12 million

PBG – 5% of the EPC contract price

23%

12 months

6th-Apr-2022

GSECL, 27 MW, Solar (EPC), Gujarat, Mar 2022

Utility Scale Solar

EPC

27

EMD – INR 10.8 million

PBG – 5% of the EPC contract price

23%

12 months

6th-Apr-2022

Coal India, 25 MW, Solar (EPC), West Bengal, Mar 2022

Utility Scale Solar

EPC

25

EMD – INR 5 million

PBG – 5% of the contract value

12 months

23rd-Mar-2022

GSECL, 16 MW, Solar (EPC), Gujarat, Mar 2022

Utility Scale Solar

EPC

16

EMD – INR 6.4 million

PBG – 5% of the EPC contract price

23%

12 months

6th-Apr-2022

Coal India Limited, 15 MW, Solar (EPC), MadhyaPradesh, Mar 2022

Utility Scale Solar

EPC

15

EMD – INR 5 million

PBG – 5% of the contract value

23.34%

9 months

30th-Mar-2022

REMCL, 14 MW, Rooftop Solar, Uttar Pradesh, Mar 2022

Rooftop Solar

14

PBG – INR 1.07 million

17th-May-2022

HIMURJA, 10 MW, Rooftop Solar, Himachal Pradesh, Mar 2022

Rooftop Solar

CAPEX

10

EMD – INR 0.5 million

PBG – INR Lakhs x 3% x installed Capacity in MWp

6 months

24th-Mar-2022

JREDA, 5 MW, Rooftop Solar, Jharkhand, Mar 2022

Rooftop Solar

CAPEX

5

EMD – INR 0.1 million for the lot size of 100 kWp

PBG – 5% of the order value

12 months

30th-Mar-2022

SECI, 5 MW, Solar (EPC), J&K, Mar 2022

Utility Scale Solar

EPC

5

EMD – INR 4.7 million

PBG – 4% of the contract value

12 months

19th-Apr-2022

Department of Power, Nagaland, 3.8 MW, Rooftop Solar, Nagaland, Feb 2022

Rooftop Solar

CAPEX

3.8

PBG = INR Lakhs x

3% x Allocated Capacity

12 months

23rd-Mar-2022

HSVP, 2.7 MW, Solar, Haryana, Mar 2022 

Small Scale Solar

EPC

2.7

EMD – INR 1.89 million 

PBG – 5% of the total contract value 

3 months

11th-April-2022

MES, 1.68 MW, Rooftop Solar, Punjab, Mar 2022

Rooftop Solar

1.68

EMD – INR 0.79 million

PBG – 3% of the contract amount

15 months

26thApr-2022

NALCO, 1.095 MW, Rooftop Solar, Andhra Pradesh, Mar 2022

Rooftop Solar

1.095

EMD – INR 0.35 million

PBG – 3% of the contract value

9 months

5th-April-2022

PBG: Performance Bank Guarantee

EMD: Earnest Money Deposit

Source: JMK Research

Other announcement during the month was:

NTPC Renewables invites an expression of interest (EOI) for setting up of Renewable Energy Projects (Wind) in states of Rajasthan, Maharashtra, Gujarat, Tamil Nadu, Karnataka, Andhra Pradesh & Madhya Pradesh. The proposed capacity in a single/multiple location (in MW) connected to a single pooling station/future proposed ISTS network should be more than 100 MW.

Date Extensions

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

4th-May-2022

NTPC, 500 MW with 3000 MWh ESS, Pan India, Jan 2022

Energy Storage System (ESS)

Project Development

500 MW with 3000 MWh ESS

PBG – INR 1.2 million/MW

22nd-Apr-2022

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


Small Scale Solar



Project Development




445

EMD – INR 0.1 million/ MW

PBG – INR 0.5 million/ MW

Ceiling Tariff – INR 3.10/ kWh

15%

12 months

11th-Apr-2022

Source: JMK Research

Auctions Completed

Winners in the latest solar tenders

Source: JMK Research

In March 2022, Auction were concluded for a total capacity of 750 MW solar tenders by GUVNL and PSPCL.

Tender Name

Capacity tendered (MW)

Capacity allotted (MW)

Minimum CUF

Commissioning Timeline

Winners Details

GUVNL, 500 MW, Solar, Phase XIII, Gujarat, Jan 2022

500

500

17%

18 months

• Fortum – 200 MW (INR 2.29/kWh)• Hinduja Renewables –120 MW (INR 2.29/kWh) • SJVN – 100 MW (INR 2.29/kWh) • UPC Renewables –80 MW (INR 2.29/kWh)

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

250

250

19%

18 months

• Adani -150 MW (INR 2.34/kWh)• ReNew – 100 MW (INR 2.33/kWh)

Source: JMK Research

Installed Capacity

In February 2022, a combined total of 503.04 MW of solar and wind capacity was added, taking the cumulative RE capacity to 106.37 GW.

RE installations in February 2022

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

State wise solar and wind installed capacity in February 2022

In February 2022, Rajasthan added the maximum utility scale solar capacity of 174.8 MW followed by Telangana (114.88 MW) and Assam (44.35 MW) while Gujarat installed the maximum wind capacity of 28.1 MW.

In the rooftop solar segment, Gujarat added the maximum capacity of 57.75 MW followed by Karnataka (3.15 MW). Rajasthan added the maximum off grid/distributed solar capacity of 5.83 MW in February 2022.

State wise solar and wind installed capacity in February 2022

Source: MNRE, JMK Research

Recently Commissioned RE projects

Developer

Technology

Tender Name

AC Capacity (MW)

Tariff (INR/kWh)

State

Azure Power

Solar

SECI 1200 MW Solar ISTS Tranche III Feb 2019

300

2.58

Rajasthan

SunSource Energy

Solar

Open access

45

Uttar Pradesh

NTPC

Floating Solar

NTPC 100 MW Floating Solar (EPC) Telangana Dec 2018

42.5

Telangana

Southern Petrochemicals Industries Corporation

Floating Solar

22

Tamil Nadu

Hinduja Renewables

Solar

Open access

16.45

Karnataka

Swelect Energy

Solar

11

Tamil Nadu

Milky Mist

Solar

7

Tamil Nadu

Panasonic

Rooftop Solar

6

Maharashtra

KPI Global

Solar

1.72 (DC)

Gujarat

VST Industries

Rooftop Solar

1

Telangana

Source: Industry news articles, JMK Research

Other key announcements that were made during the month were:

  • Vedanta Limited announced that its board of directors has approved a proposal to source 580 MW of green energy for its operations in India. The company has signed a power delivery agreement with Sterlite Technologies Private Ltd, a special purpose vehicle for the supply of solar and wind-based energy. The project will be funded with a debt-to-equity ratio of 70:30, where Vedanta Ltd and its subsidiaries will own 26% equity in the respective SPVs for a total investment of up to INR 850 crore.
  • Rajasthan Vidyut Utpadan Nigam Ltd and Rajasthan Renewable Energy Corporation will develop two solar parks with capacities of 800 MW and 1000 MW in Jaisalmer and Bikaner respectively in the first phase.
  • International Finance Corporation (IFC) is planning to finance 600 MW solar power park, in India. The solar power project will be established in Uttar Pradesh and will be developed by TUSCO which is a joint venture between THDC India and Uttar Pradesh New & Renewable Energy Development Agency.
  • The Centre grants an approval for three solar parks with a total capacity of 340 MW in Odisha under the solar park scheme. The Centre also stated that there will be one 40 MW solar park that has been planned in Landeihill village in Ganjam district. The other two will be floating parks. One of them with 200 MW capacity has been planned in Rengali reservoir, while details about the other one with 100 MW capacity are yet to be known.
  • Larsen & Toubro has secured orders to build a 35 MW(AC) PV capacity with 57 MWh battery energy storage system in Gujarat and a 245 MW solar power project in Rajasthan.
  • Vestas has also secured a 51 MW order from O2 Power Private Limited for a renewable energy project located in Karnataka. It forms part of the company’s 200 MW hybrid C&I project under development in Karnataka. The deliveries of the turbines are expected to begin in the third quarter of 2022, while commissioning is expected in the last quarter of 2022.
  • Arcelor Mittal has announced its partnership with Greenko group wherein Arcelor Mittal Will invest $600 million in Andhra Pradesh to own and fund a round-the-clock (RTC) 975 MW renewable energy project while Greenko will design, construct and operate the renewable energy facilities. The Project commissioning is expected by mid-2024.
  • The Nagaland government signed a power purchase agreement (PPA) with a private company for the construction of the state’s first greenfield solar power facility in Dimapur district. The Nagaland government will lease the property, and Halo Energie Pvt Ltd will execute the 20 MW power plant, which is expected to cost around INR 120 crore. The project’s execution is set to begin in mid-2022, and it will take around eight months to complete the project.

Monthly RE Generation

Renewable energy sources generated 12742.63 MU in March 2022, up by significantly 44.1% from February 2022. Solar energy accounts for 60% of RES (Renewable Energy Sources) generation in March 2022, followed by wind at 31% 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 March 2022, about $919.52 million was invested in the RE sector. The key investments during the month were:

  • Greenko raised $750 million through offshore bond offering for funding an energy storage project in India.
  • Torrent Power has acquired 100% stake in Lightsource Renewable Energy (India) Limited for INR 300 crore. Lightsource Renewable operates a 50 MW solar power plant in Maharashtra. In addition, Torrent power has also completed the acquisition of 156 MW of wind assets which are spread across Gujarat, Rajasthan and Madhya Pradesh from Surya Vidyut company.
  • Jupiter International has raised $22.19 million from funds managed by wealth management firm Edelweiss Alternative Asset Advisors (EAAA).
  • Virescent Renewable Energy Trust (VRET) has completed the acquisition of a 50 MW operating solar asset from Godawari Green Energy Limited (GGEL). GGEL operates the 50 MW concentrated solar power (CSP) plant in Rajasthan. With this acquisition, VRET now manages 500 MW of operating solar assets across India.

Company Name

Deal Type

Sector

Asset Acquired

Investor

Deal Value

Stakes Acquired

Other Details

Greenko

Bond

Energy Storage

$750 million

The company secured pricing of 5.50% for its $750 million green bond and were assigned a rating of ‘BB’ by Fitch Ratings.

Surya Vidyut (a subsidiary of CESC Ltd)

Acquisition

Wind

156 MW

Torrent Power

$107 million

100%

Wind power plants acquired were spread across Gujarat, Rajasthan and Madhya Pradesh

Lightsource Renewable Energy (India)

Acquisition

Solar

50 MW

Torrent Power

$39.3 million

100%

Jupiter International

Equity

Solar

Edelweiss Alternative Asset Advisors (EAAA)

$22.19 million

The company is planning to set up a New greenfield capacity of 2,000 MW integrated cell plus module line

Avaada  

Equity

Solar

Bharti Airtel

$1.03 million

9%

Amp Energy

Equity

Solar

Bharat Serums

26%

Bharat Serums has acquired a 26% stake in AMP Energy C&I One for its manufacturing facility at Ambernath in Maharashtra

Virescent Renewable Energy Trust (VRET)

Acquisition

Solar

50 MW

Godawari Green Energy Limited

100%

Avi Solar

Acquisition

Solar

Skyfri Group

With this acquisition, Skyfri Group targets to bring to over 500 MW of new solar power projects to investors on its platform

Source: Industry news articles, JMK Research

Other key announcements that were made during the month were:

  • BlackRock and Mubadala Investment Co., the UAE’s sovereign wealth fund, are in discussions to invest $500 million and $200 million, respectively, in a proposed new energy business being floated by Tata Power Co. Ltd. The new vehicle would include Tata Power’s renewable energy assets, like hydropower, as well as its transmission and distribution businesses and is likely to be valued at around $5 billion. 
  • The UK’s development financing institution (DFI) and impact investor, British International Investment, formerly CDC Group, announced a total investment of $89 million to scale renewable energy capacity in India. The DFI’s investment is split between a follow-on commitment of $47 million to Fourth Partner Energy and a project finance debt investment of $42 million to Thar Surya 1 Private Limited, an Indian subsidiary of Enel S.p.A, Italy (Enel). 
  • Indian government gave approval to UK-based global investor ThomasLloyd to acquire a 43% stake in Delhi-based SolarArise India Projects for $34.6 million. SolarArise India Projects owns 7 solar power projects with a cumulative capacity of 434 MW in the country. About $34.6 million for the acquisition will be settled through ordinary shares in the company and acquisition is expected to get complete in the second quarter of 2022.
  • Brookfield Asset Management Inc is planning to buy a significant stake in Mahindra Susten.  The sales process for the potential deal with an enterprise and equity value of around INR 7,000 crore and INR 1,700 crore, respectively, is being handled by Avendus Capital.
  • GPS Renewables announced that it has closed its Series B fundraising round from Neev Fund II, managed by SBICap Ventures. In total, GPS has raised about $20 million in the form of equity.
  • Adani Green Energy (AGEL) has extended its construction financing framework to $1.64 billion by raising a $288 million facility for its under-construction renewable asset portfolio through definitive agreements signed with a group of leading international lenders. The facility will initially finance the 450 MW hybrid portfolio of solar and wind renewable projects that AGEL is setting up in Rajasthan.
  • Vikram Solar has filed draft papers to the Securities and Exchange Board of India (SEBI) in order to generate funds through an initial public offering (IPO). The IPO consists of a fresh issue of up to INR 1,500 crore and an Offer-for-Sale (OFS) by the selling shareholders of up to 5,000,000 equity shares.
  • Shell has emerged as the top contender to buy Sprng Energy, the Indian renewable platform of Actis. Shell’s offer, which valued the portfolio at $1.75-1.8 billion inclusive of debt, is said to be higher than Sembcorp’s Industries offer.

SECI Payments

In February 2022, the Solar Energy Corporation of India Limited (SECI) paid nearly INR 5.56 billion to developers for the purchase of solar and wind power. The payment disbursal in February has increased by ~2.4% compared to January 2022.

Monthly payments by SECI to solar and wind developers

Source: Ministry of Commerce and Industry, JMK Research

GTAM Traded Volume

During March 2022, the IEX green term-ahead market traded 187 MU volume, with 48.5 MU in the solar segment and 138.8 MU in the non-solar segment. This is about 28.6% less than the previous month. The average trade price in IEX GTAM for the same month was INR 7.8/kWh. 

The PXIL green term-ahead Market reported 325 MU volume in March 2022 with a decrease of 17% on MoM basis. The average traded price was INR 7.15/kWh during March 2022. 

GTAM traded volume and average traded price trend

Source: IEX, PXIL, JMK Research

Comparing on m-o-m basis, prices for global mono PERC modules have decreased by 1.85% while mono PERC India modules prices have increased marginally by 0.74% in March 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 updated latest ALMM list with a total enlisted capacity of 11,502 MW for Solar PV

MNRE

4th- Mar-2022

CERC provides regulatory mechanism for ancillary services in the interest of reliability, safety and security of the grid

CERC

31st-Jan-2022

MNRE reduced the Performance Security from 5-10% to 3% for the RE tenders till March 2023

MNRE

7th-Mar-2022

MOP notifies guidelines for Procurement and Utilization of Battery Energy Storage Systems as part of Generation, Transmission and Distribution assets, along with Ancillary Services

MOP

11th-Mar-2022

MNRE issued amendment in the “Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Wind Solar Hybrid Projects”

MNRE

9th-Mar-2022

CERC adopts the tariff of INR 2.37/kWh for a 300 MW solar power project under SECI’s 2000 MW solar tender

CERC

8th-Mar-2022

Additional 3-month extension granted by MNRE in scheduled commissioning date of wind projects

MNRE

17th-Mar-2022

CERC – Deviation Settlement Mechanism and Related Matters Regulations, 2022

CERC

14thMar-2022

MNRE extended timeline for compulsory use of solar pv modules listed under ALMM from 01.04.2022 to 01.10.2022

MNRE

28th-Mar-2022

State

Policy Name

Issuing Agency

State

Date of Issue

In Tamil Nadu, net feed-in methodology approved for Solar projects of 1 MW and above

TNERC

Tamil Nadu

1st-Mar-2022

The Andhra Pradesh high court Order held that executed power contracts cannot be renegotiated and asked the state to clear dues

Andhra Pradesh High Court

Andhra Pradesh

15th-Mar-2022

APERC Proposed Draft Renewable Power Purchase Obligation Regulation, 2022

APERC

Andhra Pradesh

1st-Mar-2022

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

JERC

Goa and the Union territories

 

1st-Feb-2022

GERC announced Additional Surcharge payable by Open Access consumers for the period of 1st April, 2022 to 30th September, 2022

GERC

Gujarat

12th-Mar-2022

HPERC determines Generic Levellised Tariff for Solar PV Projects for FY 2022- 23

HPERC

Himachal Pradesh

28th-Mar-2022

 

MERC approves tariff adoption for MSEDCL’S 500 MW Solar Auction

MERC

Maharashtra

11th-Mar-2022

 

PSERC approves the tariff for 250 MW solar power, as well as the power procurement from the respective tender

PSERC

Punjab

24th-Jan-2022

PSERC approves power procurement from a delayed 50 MW of wind project

PSERC

Punjab

15th-Mar-2022

RERC approves the levelized tariff of INR 2.89/kWh for the 4.24 MW pilot solar power project under Component C

RERC

Rajasthan

10th-Feb-2022

TSERC Issued Draft Renewable Power Purchase Obligation Regulation, 2022

TSERC

Tamil Nadu

9th-Mar-2022

TNERC approves procurement of RTC power of 500 MW for March 2022, 1000 MW for April 2022 and 1000 MW for May 2022

TNREC

Tamil Nadu

15th-Mar-2022

TSERC determined Additional Surcharge for H1 FY 2022-23 for Open Access Consumers

TSERC

Tamil Nadu

23rd-Mar-2022

TNERC amends the Commission’s Grid Interactive Solar PV Energy Generating System (GISS) Regulations,2021

TNERC

Tamil Nadu

1st-Mar-2022

UERC issues a draft on review of the benchmark capital cost and generic tariff for Solar PV, Solar Thermal and Grid Interactive Rooftop & Small Solar PV Plants for FY 2022-23 and onwards

UERC

Uttarakhand

21st-Mar-2022

UERC reduces additional surcharge to INR 1.07/kWh from INR 1.94/kWh for open access consumers

UERC

Uttarakhand

22nd-Mar-2022

A procurement of 200 MW of solar power from SECI approved by Uttarakhand regulator

UERC

Uttarakhand

23rd-Feb- 2022

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