Monthly RE update – May 2021

Monthly RE update – May 2021

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Tenders

  • About 3156 MW of renewable tenders were issued in May 2021. 876 MW of solar tenders were issued under PM KUSUM scheme (component A) by OREDA, MPUVNL and UPNEDA.
  • SECI has issued 1200 MW of Wind tender under project development in Madhya Pradesh. Another significant Wind Solar Hybrid tender was floated by MSEDCL of 500 MW capacity.

Details of new tenders issued in May 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

SECI, 1200 MW, Wind (Tranche XI), Madhya Pradesh, May 2021

Wind

Project Development

1200

PBG – INR 1.2 million/MW

22%

18 months

6th-Jul-2021

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

Utility Scale Solar

Project Development

500

EMD – INR 0.4 million/MW

PBG – INR 0.8 million/MW

19%

15 months

4th-Jun-2021

OREDA, 500 MW, Solar (under KUSUM), Odisha, May 2021

Small Scale Solar

Project Development

500

PBG – INR 0.5 million/MW

18.7%

9 months

22nd-Jun-2021

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

Hybrid

Project Development

500

EMD – INR 0.5 million/MW

PBG – INR 1 million/MW

30%

18 months

8th-Jun-2021

MPUVNL, 270 MW, Solar (under KUSUM), Madhya Pradesh, May 2021

Small Scale Solar

Project Development

270

PBG – INR 0.5 million/MW for 12 months

Ceiling tariff – INR 3.07/kWh

15%

9 months

21st-Jun-2021

UPNEDA, 106 MW, Solar (under KUSUM), Uttar Pradesh, May 2021

Small Scale Solar

Project Development

106

PBG – INR 0.5 million/MW

 

12 months

15th-Jun-2021

SJVN, 75 MW, Solar, Uttar Pradesh, May 2021

Utility Scale Solar

EPC

75

   

15 months

11th-Jun-2021

PEDA, 5 MW, Rooftop Solar, Punjab, May 2021

Rooftop Solar

 

5

EMD – 0.2 million

PBG – 0.5 million

 

1-10 kW – 2 months

10-50 kW – 3 months

50-100 kW – 4 months

100-1000 kW – 5 months

23rd-Jun-2021

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

IREDA invites applicants to set up manufacturing capacities for high efficiency solar PV modules

  • IREDA has invited applications for setting up manufacturing capacities for high efficiency solar PV modules under the PLI scheme.
  • The response to clarification or preproposal meet will release on June 18, 2021. The last date for application submission is June 30, 2021.
  • The Declaration of successful applicants and the waiting list will be released on July 26, 2021.
  • The Letter of Award (LoA) will be issued on July 30, 2021.
  • Selected bidders will have to furnish a performance bank guarantee of ₹45,000/ MW for cell and module manufacturing capacity, ₹70,000/ MW for ingot-wafer, cell, and module manufacturing capacity, and ₹110,000/ MW for polysilicon, ingot-wafer, cell, and module manufacturing capacity.

Date extension

Tender Name

Technology

Tender Scope

Capacity (MW)

Other Details

Minimum CUF

Commissioning timeline

Bid Submission Date

IREDA, 5 GW,  Solar PV Tranche III Phase II, CPSU Program,  Pan India, Jan 2021

 

Utility Scale Solar

Project Development

5000

EMD – INR 400,000/ MW

PBG- 50% of VGF bid

 

30 months

31st-May-2021

 

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

30th-Jun-2021

 

SECI, 1785 MW Solar, Rajasthan, Mar 2021

 

Utility Scale Solar

Project Development

1785

PBG – INR 0.8 million

 

17%

18 months

 

4th-June-2021

 

SECI, 1200 MW, Wind- Solar Hybrid Tranche IV, Pan India, Apr 2021

 

 

Hybrid

 

Project Development

1200

 

PBG – INR 1 million/MW

 

30%

18 months

 

18th-Jun-2021

 

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

 

 

Solar and Agro PV

 

EPC

50

   

18 months

 

7th-Jun-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-Jun-2021

 

Source: JMK Research

Auction Completed

Tender Name

Status

Capacity tendered (MW)

Capacity allotted (MW)

Minimum CUF

Commissioning timeline

Winners Details

MAHAGENCO, 250 MW, Solar PV, Maharashtra, Jan 2021

Auction Completed

250

250

19%

15 months

Tata Power – 250 MW (INR INR 2.51/kWh

GUVNL, 100 MW, Solar, (Phase X-R), Mar 2021

Auction Completed

100

100

15 months

SJVN – 100 MW (INR 2.64/kWh)

UPNEDA, 75 MW, Solar PV, Uttar Pradesh, Mar 2021

Auction Completed

75

75

17%

15 months

SJVN – 75 MW (INR 2.68/kWh)

Source: JMK Research

Renewable update july 2020

Installed Capacity

In April 2021, a combined total of 578.8 MW of solar and wind energy capacity was added, taking the cumulative RE capacity to 95.01 GW.

Cumulative Installations (as of Apr 30, 2021)

Source: CEA, JMK Research

Recently Commissioned Projects

Developer

Technology

State

 AC capacity (MW)

Fortum

Solar

Rajasthan

250

Sprng Energy

Solar

Andhra Pradesh

98

Source: Industry news articles, JMK Research

NHPC awards Rs 188 crore contract to Tata Power Solar Systems

NHPC has awarded an EPC contract of worth Rs 188.19 crore with Tata Power Solar Systems to set up a 40 MW solar power project at Ganjam, in Odisha. The power generated from the project will be procured by Grid Corporation of Odisha (GRIDCO) for the entire project life of 25 years. The project has been sanctioned by MNRE under the Solar Park Scheme and is scheduled to be commissioned within a period of 12 months.

Godawari Power & Ispat to set up a 250 MW captive solar plant in Chhattisgarh

Godawari Power & Ispat Ltd, will set up a solar power plant of 250 MW ca- pacity in the Raigarh district of Chhattisgarh. The cost to set up the plant will be approximately Rs 750 crore. The plant is expected to be commissioned by December 2022 and will generate 370 million units of electricity per annum.

Actis-backed Sprng Energy wants to cancel 100 MW wind power purchase agreement with SECI

Sprng Energy wants to terminate the power purchase agreement (PPA) signed with SECI for its upcoming 100 MW wind project. The company wanted to cancel the PPA because of the delay in the identification of a final buying entity and the restrictions on account of the on-going Covid-19 pandemic. The company has not specified the project for which it wants to cancel the PPA, in- dustry sources said the matter pertained to the 100 MW wind farm Sprng was to build in Dhar district of Madhya Pradesh. The company was issued the letter of award for the project in June 2019 by SECI.

NTPC inks energy acquire pact with GUVNL for 150 MW solar power

NTPC subsidiary NTPC Renewable Energy has signed an energy acquire agreement with state-run energy utility Gujarat Urja Vikas Nigam (GUVNL) to sell energy from its upcoming 150 MW solar project in the state at Rs 2.20/unit. With this successful bid, the company’s total capacity under TBCB (tariff-based competitive bidding) tenders has reached 1.4 GW. The company has also been allocated land in Rann of Kutch by the Gujarat government for developing a solar park with a capacity of 4,750 MW.

KPI Global secures 12.5 MW captive solar project

Gujarat-based KPI Global has announced that it had secured an order to execute a 12.5 MW solar project under the captive power producer category. The developer received a letter of intent for the project from Anupam Rasayan India, a company engaged in the custom synthesis and manufacturing of spe- cialty chemicals in India. Anupam Rasayan’s will be funding the entire capital expenditure of INR 43 crore.

JSW Energy arm inks PPA for supply of 540 MW wind energy

JSW Renew Energy has inked a power purchase agreement for supply of
540 MW from a total blended wind capacity of 810 MW, which was bagged through a competitive bidding process. This is the single largest PPA for wind/ blended wind category in the industry into the wind/blended wind energy generation segment.

Ciel & Terre completes India’s largest floating solar plant

Ciel & Terre’s India arm has completed the work on a 14.7 MWp floating solar plant in the Indian State of Tamil Nadu. It is India’s largest installed floating so- lar plant as of date. Ciel & Terre India’s work scope included plant engineering, float supply, and supervision.

monthly RE

Investments/ Deals

Company Name

Deal Type

Sector

Asset Acquired

Investor

Deal Value

Other details

Sindicatum Group

Acquisition

Solar

76 MW

 Virescent Infrastructure

 

These PV assets are spread across three states of India – Gujarat, Rajasthan and Uttar Pradesh, and benefit from long-term power purchase agreements with government off-takers.

SunSource Energy

Acquisition

Distributed Solar Energy and Energy Efficiency

SHV Energy

 The company is expected to invest nearly Rs 1,800 crore in the next two years to ramp up solar energy generation capacity of SunSource Energy to 550-MW from the present 65-MW

Fourth Partner Energy

Equity

Solar

CDC Group

$ 33.44 million

Fourth Partner Energy

Equity

Solar

DFM Foods 

INR 9.6 million

SB Energy

Acquisition

Solar and Wind

Solar – 4180 MW

Wind – 324 MW

Wind Solar Hybrid – 450 MW

Adani Green Energy

$ 3.5 Billion

Stake acquired – 100%

CSE Dakshina Solar Pvt Ltd (SPV of Cleantech Solar)

Equity

Solar

Minda Industries

INR 2.7 million

Stake acquired – 27.55%

Strongsun Renewables (SPV of Cleantech Solar)

Equity

Solar

Minda Industries

INR 2.7 million

Stake acquired – 27.55%

Source: JMK Research

AGEL arm transfers 74 per cent stake of MSEL to Adani Tradecom LLP

Adani Green Energy Ltd has announced that its arm Adani Renewable Energy Holding Four Ltd has transferred 74 per cent shareholding of Mundra Solar Energy Ltd to Adani Tradecom LLP (ATLLP).

Around 7,400 equity shares are transferred to ATLLP at face value i.e., Rs 10 each. This acquisition will bring synergy in its current manufacturing operations and enhance the market share by its brand value.

Keppel eyes Warburg Pincus’ stake in CleanMax

Keppel Corp. is among suitors for Warburg Pincus LLC’s majority stake in rooftop solar power producer CleanMax Enviro Energy Solutions Pvt. Ltd. The proposed transaction is valued at around $ 200 million, with Rothschild han- dling the sale process. The potential transaction could rank among the largest so far in India’s solar rooftop space, underscoring growing consolidation in the commercial and industrial (C&I) segment.

Actis eyes majority stake in Fortum’s solar projects

Actis Llp is close to buying a majority stake in 500 MW of solar projects in India owned by Finland’s state-controlled power utility Fortum Oyj. Fortum and Actis are negotiating the share purchase agreement for the deal having an equity value upwards of €100 million.

IFC to Invest $15 Million in a Fund For Clean Energy Projects in India and Bangladesh

IFC has proposed an equity investment of up to $15 million in South Asia Growth Fund II (SAGF II), L.P. The fund’s offshore sponsor is GEF Capital Part- ners, a Delaware limited liability company. The fund is targeting $200 million in aggregate capital commitments to invest in eight to ten companies focused on energy efficiency, clean energy value chain, water recycling and efficient delivery, and environmental products and services in India and Bangladesh.

Exports – Imports trend

Compared to February 2021, solar imports and exports have significantly increased by 36% and 175% respectively in March 2021. Compared to previous year, on a YoY basis, solar imports and exports have increased by 186% and 413%.

Source: Ministry of Commerce, JMK Research

Prices of global multi crystalline modules, mono PERC modules and mono PERC module (India) have increased by 4%, 2.4% and 6.5% respectively in May 2021 (m-o-m basis).

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 INR 4.91 billion to developers for the purchase of solar and wind power in April2021. Compared to March 2021, the payment disbursal has significantly increased by ~13% in April 2021.

Monthly payments by SECI to solar and wind developers

Source: SECI, JMK Research

Monthly RE Generation

The share of RE in the energy generation mix of India was 11,648.93 GWh dur- ing April 2021. Considering the generation from RES (Renewable Energy Sourc- es) for the last month, solar constitutes the majority share of 53%, followed by wind at 32% and other RES (including Biomass) at 15%. Compared to March 2021, the RE generation has decreased by ~9% in April 2021.

Source-wise Renewable Energy Generation (GWh) – India

Source: CEA, JMK Research

Policies and Regulations

Central

MoP directs regulatory commissions to ensure timely issue of tariff orders

  • Ministry of Power (MoP) with its notification dated 3 May 2021 has issued a notification directing the state electricity regulatory commissions (SERCs) to issue tariff orders for the financial year (FY) 2020-21 at the earliest. The Ministry has asked the SERCs to strictly comply with the directions of the Appellate Tribunal for Electricity (APTEL) and issue tariff orders, adhering to the provisions of the Electricity Act, 2003. 
  • MoP stated that this step was necessary to ensure the financial health of the distribution companies (DISCOMs) in the states. Ministry further asked the states to update the status of the tariff orders. 
  • Further, the latest notification stated that power distribution was a crucial element of the entire electricity value chain and the sustainability of the entire power sector was critically dependent on the stability and growth of the power distribution companies. 
  • According to this notification, some states that have issued the tariff orders for the FY 2020-21 included Andhra Pradesh, Assam, Bihar, Gujarat, Haryana, Odisha, Mizoram, and Sikkim, among others. Manipur and Puducherry issued the tariff orders in April this year. 
  • Electricity Act 2003 proposed amendment by the MoP also points that the tariff determined by the state distribution companies is not reflective of the actual cost, which is the leading cause of their weak financial health. The amendment also emphasizes that the tariff has to reflect the cost of the supply of electricity, and cross- subsidies and reduce the surcharges levied on industrial consumers. 

Supreme Court upholds APTEL’s order on delay in commissioning of solar projects

  • The Supreme Court of India upheld the judgment of the Appellate Tribunal for Electricity (APTEL), in which it had set aside the orders passed by the Karnataka Electricity Regulatory Commission (KERC) regarding the reduction in tariff based on the commissioning date of solar projects in Karnataka. 
  • Karnataka Renewable Energy Development Limited (KREDL) had issued a request on 20 November 2015, to develop 1,200 MW of solar projects in 60 taluks through private-sector participation. Emmvee Photovoltaic Power incorporated two special purpose vehicles (SPVs) for this task. 
  • The developers originally filed the Petition who were hit by the tariff slash from Rs. 6.10 /kWh to Rs.4.36 /kWh and imposition of damages to the tune of Rs. 2 million for the delay in commissioning of the projects by one day. 
  • The developers approached APTEL and requested the Tribunal to consider the projects delayed by one day and whether the Commission was justified in imposing liquidated damages on them. 
  • APTEL, in its order stated that the commissioning date of both the projects according to the Karnataka Power Transmission Corporation Limited (KPTCL), was 16 October 2017. APTEL set aside the KERC order on the topic, and as a result, BESCOM filed this appeal challenging APTEL’s order. 
  • The state DISCOM said that it was clear that no injection of power to the grid had taken place until 17 October 2017, and the developers were not entitled to a tariff of Rs. 6.10 /kWh. 
  • The Supreme Court observed that as the commissioning date for the projects was 17 October 2017, it was not necessary to adjudicate on the matter of injection of power into the grid for determining the commissioning date. Considering all the above facts, the Court upheld the order issued by APTEL and dismissed the appeal filed by BESCOM. 

CERC determines fees and charges for registration and issuance of REC certificate for renewable energy generation for FY 2020-2021 and FY 2021-2022

  • CERC recently passed an order to determine fee and charges payable by eligible entities for recognition and issuance of renewable energy certificates for renewable energy generation for FY 2020-2021 and FY 2021-2022.
  • The fees and charges for registration and issuance of certificates shall continue to be as follows until further orders: 
  • Fees and charges for registration

Particulars

Amount in Rs.

Processing Fees (One Time)

1,000

Registration Charges (One Time upon Registration)

5,000

Annual Charges

1,000

Revalidation Charges at the end of 5 years

5,000

  • Fees for issuance of REC to the eligible entity  

Particulars

Amount in Rs.

Fees per Certificate

2

MNRE Extends Commissioning Date for Renewable Projects, Considering Pandemic Effects

  • Ministry of New and Renewable Energy (MNRE) with its notification dated 12 May,2021 has stated that the renewable energy projects having their commissioning dates on or after 1 April, 2021, can claim extension owing to the second surge of the Covid-19 pandemic. 
  • MNRE has notified developers that this time extension should not be used as a ground for the termination of the power purchase agreement (PPA) or claiming any increase in the project cost, including interest during construction or upward revision of tariff. 
  • MNRE made it clear that the actual quantum of the time extension will be decided in due course depending on the developments related to the Covid-19 pandemic in the coming weeks. 
  • MNRE also mentioned that on receipt of an application for the time extension, the implementing agency would not initiate any coercive action on the project to recover penalty on delayed commissioning until the extended time frame is decided upon. 
  • The intermediate milestones of the project will also be extended as per granted extension for project. The developer should pass on the benefits of the extended deadline to other stakeholders down the value chain, including engineering, procurement, and construction contractors, material and equipment supplier, and original equipment manufacturers. 
  • MNRE also clarified that the extension provided by implementing agencies on account of the first wave of the Covid-19 pandemic should in no case be more than six months, including the five-month blanket extension given earlier. The Ministry said that if the implementing agencies felt the need for an extension beyond six months, they should make a reference for consideration of MNRE with due justification and supporting documents. 

MNRE Notifies Amendment to CPSU Program for 12 GW of Solar, VGF Capped at Rs. 5.5 Million

  • Ministry of New and Renewable Energy (MNRE) with its notice dated 10 May, 2021 has issued amendments for setting up 12 GW of solar projects with viability gap funding (VGF) by central public sector undertakings (CPSUs) for self-use or use by government entities. The estimated total cost of the projects under this program is Rs. 480 billion. 
  • As per the new amendment, the maximum permissible VGF has been kept at Rs. 5.5 million/ MW, which was INR 7.0 million/ MW earlier. 
  • According to latest amendment, the power produced by the government entities can be used for self-use or use by government entities either directly or through distribution companies at the mutually agreed rate of Rs.2.45/kWh. The rate would include all the charges, including wheeling and transmission charges, point of connection charges and losses, and cross-subsidy charges. A per the existing clauses, the rate was fixed at Rs. 2.80 /kWh. 
  • Aforementioned amendment further states that solar projects under this program will be commissioned within 30 months from the letter of award (LoA). Previously this time frame was 24 months from the date of LoA for projects up to 500 MW. 
  • MNRE also clarified that for projects over 500 MW, capacity up to 500 MW must be commissioned within 24 months from the date of LoA, and the remaining capacity must be commissioned within the next six months. 

CERC Directs SECI to Compensate Solar Developer for GST and Safeguard Duty Impact

  • CERC with its latest order directed the SECI to compensate solar developer for the increase in cost incurred due to the imposition of goods and services tax (GST) and safeguard duty. 
  • CERC noted that the enactment of GST laws and the imposition of safeguard duty qualified to be processed under the ‘Change in Law’ clause. 
  • CERC directed SECI to make the first instalment of payments within 60 days from the date of this order or the date of submission of claims, whichever was later. CERC has further warned SECI that failing to stick to the deadline would attract a late payment surcharge. 
  • SB Energy One had filed a petition for the approval of ‘Change in Law’, seeking compensation relief for the increase in capital cost due to the introduction of GST and the imposition of safeguard duty on the import of solar cells. 
  • CERC also added that the compensation was not conditional upon the payment to be made by Rajasthan Urja Vikas Nigam Limited (RUVNL) to SECI. However, SECI could claim the same from RUVNL on a back-to-back basis. 
  • CERC stated that SB Energy One will have to bear any such costs. CERC also rejected the claims on account of ‘Carrying Cost,’ ‘Interest on Working Capital,’ and ‘Return of Equity.’ 
  • The developer noted that SECI was obligated to release the safeguard duty payments without linking the back-to-back payment to be made by the distribution companies. 
  • CERC noted that the PPA and power sale agreement were interconnected and inextricably linked to each other. The petitioner was, therefore, justified in raising the audited claims. In light of the facts, CERC said that the amount so determined has to be paid by SECI to the developer, while RUVNL is supposed to pay the same to SECI. 

APTEL directs regulators must decide incremental tariff for solar safeguard duty compensation

  • Appellate Tribunal for Electricity (APTEL) in its Order dated 21 May 2021 has directed the Karnataka Electricity Regulatory Commission (KERC) to decide the incremental tariff payable as compensation to Fortum Solar. The developer had to be compensated for the additional expenses incurred due to the imposition of safeguard duty which was a ‘Change in Law’ event. 
  • Earlier Fortum Solar had petitioned KERC for a declaration that the imposition of safeguard duty was a ‘change in law’ event. Fortum Solar had asked KERC to direct the DISCOMs to reimburse the additional expenses incurred by way of a proportionate hike in the agreed-upon tariffs. I 
  • APTEL has observed that KERC had agreed with the developer and accepted that the claims were related to ‘Change in Law.’ However, the amount of compensation arrived at by KERC was much lower than what was claimed by the developer. KERC had also rejected the claims of the ‘carrying cost’ made by Fortum Solar. 
  • APTEL has directed KERC to decide on the incremental tariff consequent to the already determined sum of compensation due to the ‘Change in Law’ within two months. 
  • APTEL further added that if the developer was not satisfied with the quantum of compensation or the denial of ‘carrying cost’, it could take up the matter at an appropriate forum after the completion of the proceedings by KERC. 
  • APTEL has also asked the regulator to consider the developer’s claim for carrying cost and additional expenses. 

CERC issues Draft Ancillary Services Regulations 2021

  • CERC has issued Draft Central Electricity Regulatory Commission (Ancillary Services) Regulations, 2021
  • These regulations will be applicable to regional entities, including entities having energy storage resources and demand side resources qualified to provide Ancillary Services. Energy Storage is included in secondary and tertiary ancillary services in this regulation. 
  • There shall be the following types of Ancillary Services: 

(a) Primary Reserve Ancillary Service (PRAS)

(b) Secondary Reserve Ancillary Service (SRAS)

(c) Tertiary Reserve Ancillary Service (TRAS) and 

(d) Other Ancillary Services as specified in the Grid Code 

  • The Nodal Agency shall, in coordination with RLDCs and SLDCs, estimate the quantum of requirement of SRAS and TRAS for such period and based on such methodology as specified in the Grid Code. 
  • The Nodal Agency shall re-assess the quantum of requirement of SRAS and TRAS on day- ahead basis and incremental requirement, if any, on real time basis. 
  • The requirement of SRAS shall be estimated on regional basis. 

Actual performance vis-à-vis secondary control signal for an SRAS Provider

Incentive Rate (paise/kWh)

Above 95%

(+) 40

70%-95%

(+) 30

45-70%

+ (20)

20-45%

+ (10)

Below 20%

0

  • The commission is inviting comments/ suggestions from the stakeholders on the draft regulations on or before 30 June 2021.

State

Goa

JERC announce New Generic Tariff for Solar for Goa and Union Territories

  • JERC in its recent Order for the state of Goa and Union Territories (UTs) has announced the generic tariffs for solar photovoltaic (PV), wind and small hydro projects in Goa, and the UTs of Andaman & Nicobar Islands, Lakshadweep Islands, Puducherry, Daman & Diu, Dadra & Nagar Haveli, and Chandigarh. 
  • This tariff order is applicable from 1 April 2021, to 31 March 2022, or until further orders of JERC, whichever is later. It will be applicable for the renewable energy projects commissioned during the year. 
  • To procure renewable power, the distribution licensee will have to file a petition for the adoption of tariffs under Section 63 of the Act. 
  • JERC considers debt to equity ratio of 70:30 of the capital cost is considered for the projects. 

Gujarat

GERC Approves Tariff Adoption for GUVNL’s 500 MW Solar Auction

  • GERC with its latest order has allowed GUVNL to adopt the tariff discovered through a competitive bidding process for procuring power from grid-connected solar photovoltaic (PV) projects in Gujarat. 
  • GERC in this order directed GUVNL to sign and execute the power purchase agreement (PPA) within 30 days after adding the late payment surcharge clause. 
  • Previously GUVNL had floated a tender to purchase power from 500 MW of grid-connected solar PV projects to be set up in the state under Phase XII. 
  • Sprng Energy, NTPC Renewable Energy, Coal India, and TP Saurya – a Tata Power subsidiary – were declared winners in the auction. 
  • GERC has directed GUVNL to sign the PPA with the successful bidders, in compliance with the stipulations of the Electricity (Late Payment Surcharge) Rules, 2021. The copies are to be submitted to GERC after the late payment surcharge clause is added and before signing the PPA. 
  • Aforementioned auction by GUVNL concluded on 22 March 2021, and in less than two months, the state commission has approved the tariff. This is one of the reasons the GUVNL auctions have found robust participation and aggressive tariffs. 

States/Union Territories

Tariff Period (Period)

Levelized Tariff

Benefit of Accelerated Depreciation

Net Levelised Tariff (upon adjusting for accelerated depreciation benefit, if availed)

Goa

25

4.68

0.34

4.34

Chandigarh

25

4.68

0.36

4.60

Dadra & Nagar Haveli

25

4.68

0.34

4.34

Daman

25

4.68

0.34

4.34

Diu

25

4.68

0.34

4.34

Puducherry

25

4.68

0.34

4.34

Andaman & Nicobar Island

25

6.75

0.49

6.27

Lakshadweep

25

6.75

0.49

6.27

Haryana

Haryana New and Renewable Energy Department Issues Guidelines for Solar Parks Development by Private Developers

  • The New and Renewable Energy Department, Haryana, with its notification of May 2021 has issued guidelines for developing solar parks in the state by private entrepreneurs without central financial assistance.
  • The minimum capacity of such solar park should be 50 MW. The solar park developer should also submit the agreement to lease or the sale of a minimum of 100% of the required land along with the application.
  • As per aforementioned notification the minimum land required for the solar parks has been set as 4 acres/MW, and the cost of development of a 50 MW solar park will be considered as Rs.100 million. The development of the solar park should be completed within 24 months from the issuance of the no-objection certificate for the solar park’s development.
  • The timeline for the solar parks is given below:

Milestones

Timelines

Date of issue of no objection certificate for development of solar park by HAREDA

Zero date

Grant of in-principle approval by HVPNL

2 months from date of principle approval by HVPNL

100% land acquisition to establish the possession (Registered agreement to lease or registered to sale or lease deed or sale deed of the land required). Financial closure, bank guarantee documents as required by HVPNL

Within 5 months from date of in-principle approval by HVPNL

Grant of final connectivity approval by HVPNL

Within one month from date of submitting the documents required for final connectivity approval

Completion of the construction of pooling station and all other developments such as road connectivity, water availability, boundary switchyard/office buildings etc.

Within 16 months from final connectivity approval

  • For the development of solar parks, the financial closure may be defined as the arrangement of 90% of the total project cost either by internal resources or through tie-ups with banks or lending institutions.
  • The developer should issue a tender for the internal infrastructure of the solar park within four months of the issuance of final connectivity by HVPNL, or else the approval for the solar park will be cancelled. 
  • The state distribution companies has clarified that the developers will not receive any central financial assistance for setting up the park.
  • The solar park will not be transferred up to one year from the commissioning date, with a minimum of 75% of the total capacity of the solar park being commissioned. 
  • For the development of solar parks, the financial closure may be defined as the arrangement of 90% of the total project cost either by internal resources or through tie-ups with banks or lending institutions.
  • The developer should issue a tender for the internal infrastructure of the solar park within four months of the issuance of final connectivity by HVPNL, or else the approval for the solar park will be cancelled. 
  • The state distribution companies has clarified that the developers will not receive any central financial assistance for setting up the park.
  • The solar park will not be transferred up to one year from the commissioning date, with a minimum of 75% of the total capacity of the solar park being commissioned. 

Haryana Issued Draft Solar Power Policy 2021

  • Haryana, New and Renewable Energy Department has issued the draft ‘Haryana Solar Power Policy, 2021 and requested government stakeholders to send their comments within 15 days from the date of the notification. The new policy will supersede the Haryana Solar Power Policy, 2016. 
  • As per this Draft the solar power systems installed and commissioned during the operative period will be eligible for the benefits and incentives declared under this policy, for 25 years from their date of commissioning. 
  • Only new plants and machinery will be eligible for installation under this policy. 
  • The capacity installation targets for the DISCOMs will be based on the Renewable Power Purchase Obligation (RPO) defined by Haryana Electricity Regulatory Commission (HERC) from time to time. 
  • According to this Draft DISCOMs may procure power from distributed solar projects up to 2 MW capacity, at pre-fixed levelized tariff as determined by HERC, subject to the spare capacity available at the nearest substation. As per the RPO, 20% of the targeted solar power purchased by DISCOMs will be reserved for such small generators below 2 MW capacity. 
  • Individuals and micro, small & medium enterprises (MSME) with land will be allowed to sell power from only one such project with a maximum of 2 MW capacity to the DISCOMs. 
  • For third-party sale outside the state, the transmission facility will be provided under open access by the state power utilities, while banking facility may be provided by the state in which power is being consumed as per their regulations. 
  • Any industrial or commercial unit in the state will be allowed to consume 90% of its annual consumption from the solar project.
  • As per this Draft the state government may facilitate the lease or sub-lease of panchayat land at reasonable rates through any government agency or directly through the panchayat for setting up solar projects for a minimum period of 30 years. 
  • Installation of rooftop solar systems of capacities in the range of 1 kW to 2 MW at industries, public and private institutes will be promoted for their captive use with or without net metering facility as per the HERC Regulations. The rooftop solar systems may be installed either on CAPEX mode or the RESCO model. 

Haryana imposes charges and caps on renewable energy banking

  • The Haryana Electricity Regulatory Commission (HERC) has issued regulations for establishing tariffs from renewables, renewable purchase obligation (RPO), and renewable energy certificate (REC) for the financial year (FY) 2021-22 to FY 2024-25. 
  • These regulations will apply to grid-connected renewable projects of up to 2 MW capacity where the tariff is determined by the Commission. 
  • The Commission will determine the indicative tariff for these projects based on petitions at least six months in advance at the beginning of each year of the control period. 
  • RPO for the FY 2021-22 has been kept as per the earlier 2017 – 8% regulations for solar and 3% for non-solar. The same has been increased to 9% and 10% for FY 2022-23 and FY 2023-24, respectively, for solar, while the cap is 5% and 6% for FY 2022-23 and FY 2023-24, respectively for non-solar. 
  • Banking is allowed for captive power projects, owned and operated by a single consumer with 100% equity holding in the project. 
  • DISCOMs will allow the banking of renewable power up to a cumulative capacity of 100 MW. Banking charges of ₹1.50 (~$0.020)/kWh will be levied. 
  • The withdrawal of banked power will not be allowed during the peak hours of the day and peak months (May to September). 
  • All renewable energy projects should be treated as ‘must run’ projects, except for biomass projects of 10 MW and above. 

Karnataka

KSERC Directed Kerala DISCOM to Process Net Metering Request for a 1 MW Solar Projec

  • In recent order Kerala State Electricity Regulatory Commission (KSERC) directed the Kerala State Electricity Board (KSEB) to process Kerala Health Care’s request for the connectivity of 1 MW solar project, with net metering being installed in their premises and provide the feasibility report within two weeks.
  • The petitioner submitted an application dated 23 August 2017, to KSEB to obtain the feasibility certificate for installing a 1 MW of grid-connected solar project in their premises with a net metering facility. After processing the application, the deputy chief engineer, the electrical circle of Palakkad, issued the feasibility report on 3 October 2017, to connect 500 kW capacity solar project only and directed the consumer to remit Rs. 500,000 as registration fee. The petitioner submitted the required amount to register the 500-kW solar project on 11 April 2018.
  • Later, the Commission’s Net Metering Regulations, 2020, was notified on 7 February 2020, repealing all the existing regulations on net metering. As per the regulation, voltage restriction is not stipulated for the consumers for availing net metering facility up to 1 MW.
  • After considering all these facts, KSERC asked KSEB to process the application and issue the feasibility report for the 1 MW solar project within two weeks.

Maharashtra

Maharashtra Allows Twice a Month Revisions in Contract Demand for C&l Customers

  • The Maharashtra Electricity Regulatory Commission (MERC), in a recent order has allowed for revisions in contract demand up to two occasions for high-tension (HT) commercial and industrial (C&I) consumers and up to one occasion for low-tension (LT) C&I consumers in a billing cycle up to March 31, 2022. 
  • Kalika Steel Alloys and 27 others had filed a petition with the Commission, demanding the contract be revised. They have asked an extension of the earlier order passed by the Commission, allowing for multiple revisions of the contract demand in light of the disruption caused due to the Covid-19 pandemic. 
  • The Commission, in its earlier order, had granted relaxation concerning revisions in contract demand per month, which was further extended up to March 31, 2021. 
  • The petitioners, in their submissions, added that they feel because of the magnitude of the Covid-19 crisis, the economic situation is unlikely to improve for some time. They noted that they were facing an acute financial crunch, as the cost of electricity accounted for about 60% of their total cost of production. 
  • MERC also stated that in case of short-term open access consumers, revision in the contract demand would not be allowed during the open access period. Whereas in case of the medium-term and long-term open access consumers, they can apply for the revision in open access permissions commensurate with its intended revised contract demand. 
  • MERC noted that MSEDCL had raised the provision of net-metering regulations, which linked maximum allowable net metering rooftop capacity to contract demand of consumer subject to the higher limit of 1 MW. With the revision in contract demand, the allowable capacity of net metering needed to be lowered accordingly. 

Punjab

PSERC reduces additional surcharge payable by open access consumers to Rs. 1.16/kWh

  • Punjab State Electricity Regulatory Commission (PSERC) has set additional surcharge payable by consumers availing power through open access sources in the state. 
  • For open access consumers (partial and full) availing power beyond the contract demand maintained with the distribution licensee, the additional surcharge determined is Rs.1.16 /kWh. Partial open access consumers availing power up to the contract demand need to pay Rs. 0.83 /kWh as the additional surcharge. The charges will be applicable from 1 April 2021, to 30 September,2021. 
  • PSPCL had filed a petition with PSERC, appealing it to determine the additional surcharge for open access consumers availing power from sources other than PSPCL for 1 April 2021 to 30 September 2021. 
  • PSPCL in its Petition claimed that it was burdened by the fixed cost component, which was harming its financial interests. 
  • After considering all the points elaborated by PSPCL, PSERC noted that as per the state regulations, open access consumers had to pay an additional surcharge for receiving electricity supply from an entity other than the distribution licensee of his area. 

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