Monthly RE update – November 2020

Monthly RE update – November 2020

Renewable update july 2020

Tenders

  • About 191 MW of renewable tenders were issued in November 2020. Meghalaya alone issued 80 MW of solar tenders this month.
  • Auctions were completed for 1274 MW of solar projects. India saw historic low of Rs 2/ kWh in 1070 MW solar tender by SECI in Rajasthan.

New RFS Issued

Tender Name

Technology

Tender Scope

Capacity (MW)

Other Details (EMD)

Bid Submission date

MCGM, 80 MW, Floating Solar, Maharashtra, Nov 2020

Floating Solar

Project Development

80

INR 47 million

10-Dec-2020

MePDCL, 50 MW, Off-Grid Solar, Meghalaya, Nov 2020

Off-grid Solar power plants

Project Development

50

INR 400,000

30-Nov-2020

MePGCL, 20 MW, Solar, Thamar &Suchen, Meghalaya, Nov 2020

Solar

Project Development

20

INR 400,000

17-Dec-2020

BHEL, 20 MW, Solar plant, NTPC Gandhar, Gujarat, Nov 2020

Solar

BOS and I&C

20

10-Nov-2020

MePDCL, 10 MW, residential grid-connected solar rooftop, Meghalaya, Nov 2020

Grid-connected solar rooftop

CAPEX

10

INR 100,000

30-Nov-2020

Tirunelveli Smart City Limited (TSCL), 3 MW, Solar, Eastern side of Tirunelveli, Nov 2020

Small scale solar

 

3

INR 1.5 million

2-Dec-2020

Tirunelveli Smart City Limited (TSCL), 2 MW, Solar, Western side of Tirunelveli, Nov 2020

Small scale solar

 

2

INR 1 million

9-Dec-2020

ITI Limited, 1.5 MW, Solar, Raebareli, Uttar Pradesh, Nov 2020

Small scale solar

 

1.5

INR 500,000

25-Nov-2020

TSREDCO, 1.2 MW, Ground mounted solar, Vijay Diary Plants, Nov 2020

Ground mounted solar

RESCO

1.2

INR 900,000

26-Nov-2020

Bharat coking coal, 1.2 MW, Grid-connected solar rooftop, BCCL, Nov 2020

Grid-connected solar rooftop

 

1.2

 

14-Dec-2020

MES, 1 MW, Solar, Alwar, Rajasthan, Nov 2020

Small scale solar

 

1

INR 665,000

8-Dec-2020

TSREDCO, 1 MW, Ground mounted solar, Hyderabad TSDDCFL, Nov 2020

Ground mounted solar

RESCO

1

INR 900,000

26-Nov-2020

Source: JMK Research

Apart from above tenders, there was an Expression of Interest (EoI) issued by Coal India Limited (CIL), to develop 14 solar projects of 3 GW in order to help its mining operations. In order to achieve this target a major funding of nearly two-third of the total capacity of 3 GW of rooftop and ground-mounted solar projects will be provided by the state-owned company. In addition to this the company would also enter into a joint venture with the NLC India Limited and fund the rest of its solar expansion plans. CIL plans to invest INR 56.50 billion by March 2024 for the same.

Retendered

Tender NameTechnologyOther DetailsBid submission date
NTPC, Gujarat, 500 MW, Solar EPC package with land, May 2020Solar EPC with landAmount of Bid security: INR 20 Mn – 50 MW INR 50 Mn – 60 – 110 MW INR 100 Mn – 120 – 220 MW INR 200 Mn – 230-300 MW24-Nov-2020
Nalanda University, Bihar, 5 MW, Rooftop Solar, Mar 2020Rooftop SolarINR 3.4 million27-Nov-2020

Date extension

Tender NameTechnologyOther DetailsBid Submission Date
SECI, 7500 MW, Solar, Jammu & Kashmir, December 2018SolarEMD – INR 0.6 million / MW31-Jan-2021
SECI, Pan India, 5,000 MW, Thermal + RE, Mar 2020Thermal + REEMD: INR 0.5 million/MW/Project PBG: INR 1.0 million/MW/Project2-Dec-2020
SECI, 2500 MW, ISTS, Solar UMREPP, Karnataka (ISTS X), April 2020SolarEMD – INR 0.4 million /MW
PBG – INR 0.8 million /MW
28-Dec-2020
SECI, 1200 MW, WSH Power Tranche III, Jan 2020WSH PowerEMD: INR 5 Lakh/ MW/ Project PBG: INR 20 Lakh/ MW/ Project2-Dec-2020
RITES, 1 GW, Ground mounted solar PV, Zonal Railways across India, April 2020SolarEMD: INR 1 million25-Nov-2020
SECI, 100 MW, Solar, Chhattisgarh, 50 MW/150 MWh BESS, Sept 20  Solar +Battery StorageEMD- INR 70 million15-Dec-2020  
BHEL, SCCL 10 MW, O&M of Solar projects, Telangana, July 2020Solar (O&M)EMD- INR 0.834 million4-Dec-2020

Results Announced

Tender NameStatusCapacity Tendered (MW)Capacity Allotted (MW)Winners details
SECI, 1070 MW, Solar PV Tranche III, Rajasthan, July 2020Results announced10701070Aljomalh Energy and Water Co.- 200 MW (INR 2.00/kWh) Sembcorp – 400 MW (INR 2.00/kWh) NTPC Ltd. – 470 MW (INR 2.01/kWh)
KSEB, 200 MW, Solar, Kerala, Sep 2020Results announced200200Tata Power – 110 MW (INR 2.97/kWh) NTPC – 90 MW (INR 2.97/kWh)
SECI, 4 MW, Floating solar plant, Diglipur, North Andaman & Nicobar, Jan 2020Results announced44SunSource Energy
monthly RE

Installed Capacity

In October 2020, a total of 406.22 MW of renewable energy capacity was added, taking the cumulative RE capacity to 89.63 GW as on October 31, 2020. According to MNRE, projects of 49.59 GW are at various stages of implementation while another 27.41 GW of projects are under various stages of bidding.

Source: MNRE, JMK Research

Investments/ Deal

Company NameDeal TypeSectorAsset capacityInvestorStake acquiredDeal Value
ReNew PowerAcquisitionWind300 MWAyana Renewable100%$ 205 million
Avaada MHBuldhana Private LimitedEquitySolar Bharti Airtel5.2%$606,990  
Vibrant Energy HoldingsAcquisitionSolar Blueleaf EnergyMajority stakeValue not disclosed

Source: JMK Research

Compared to October 2020 prices, multi crystalline modules prices have remained the same in November 2020, while the prices of cells and mono PERC modules have increased marginally by 1% and 1.3% respectively.

Source: PVinfoLink, JMK Research

Compared to September 2020, solar imports have increased by 61% while exports have seen a surge of 25% in October 2020.

Exports – Imports trend

Source: Ministry of Commerce, JMK Research

Policies and Regulations

Central

MNRE releases Concept Note for Development of Wind and Wind-Solar Hybrid Parks

  • Ministry of New and Renewable Energy (MNRE) with its notification dated 13 November, 2020 has issued a detailed proposal for developing wind parks and wind-solar hybrid parks. Interested stakeholders can submit their suggestions and comments by 28 November, 2020.
  • As per MNRE aforementioned proposal, the probable sites for wind and wind-solar hybrid projects have been identified with the help of the National Institute of Wind Energy (NIWE). The locations have been identified in Tamil Nadu, Andhra Pradesh, Karnataka, Gujarat, Rajasthan, Madhya Pradesh, and Telangana.
  • According to MNRE document, wind potential areas with more than 30% capacity utilization factor (CUF) will be considered. Each park capacity should be 500 MW or more. However, parks of lower capacity may also be developed depending on land and resource availability.
  • The state government will play its role in selecting park for developers and helping them to acquire the identified sites. In case the power generated from the park is exported to other states, the state government will be entitled to a facilitation charge of Rs.0.05 /kWh of electricity exported to other states by the project developer.
  • MNRE will provide central financial assistance at the rate of Rs.2.5 million/park to the developer for DPR preparation and CFA at the rate of Rs.2 million /MW or 30% of the park development cost, whichever is lower.
  • MNRE issued tariff-based competitive bidding guidelines for power procurement from grid-connected solar-wind hybrid projects. The aim is to provide a framework for procuring electricity from the interstate transmission system connected wind-solar hybrid power projects through the competitive bidding route.

MNRE issued Clarifications for the KUSUM Solar Program

  • Ministry of New and Renewable Energy (MNRE) with its notification dated 13 November 2020 has increased the aggregate target to 30.8 GW from 25.7 GW by FY2023.
  • Clarifications issued for three components of the Pradhan Mantri Kisan Urja Suraksha evem Utthan Mahabhiyan (PM-KUSUM) program.
  • Component A-objectives have remained unchanged, component B- now aims to install two million standalone solar-power agricultural pumps from its previous target of 1.75 million. Component C was also revised to install 1.5 million grid-connected agricultural pumps from one million earlier.
  • As per MNRE clarifications in Component A, solar power projects can also be installed on farmers’ pasture lands and marshlands. To support small farmers, solar projects smaller than 500 kW can be allowed by states based on their techno-commercial feasibility. The solar generator will have to complete the project within 12 months from the date of the issuance of the letter of award (LoA). Also, there will be no penalty for the generators for the shortfall in power generation from the minimum prescribed capacity utilization factor (CUF).
  • Earlier, individual farmers, cooperatives, panchayats, farmer producer organizations (FPO) were permitted to install renewable power projects of 500 kW to 2 MW on their barren or cultivable lands. Also, the time for the completion of the project was set as nine months.
  • For Component B of the program, MNRE will retain 33% of eligible service charges for nationwide information, education, and communication activities. The MNRE has further clarified that solar pumps to be set up and used by water user associations, farmer producer organizations, primary agriculture credit societies, or for cluster-based irrigation system, the central financial assistance (CFA) will be provided for capacity up to 5 HP for solar pumps that are above the 7.5 HP capacity.
  • Also, a manufacturer of solar modules, solar pumps, or solar pump controllers can participate in the bidding process. A joint venture of manufacturers and system integrators can also take part in the tender.
  • MNRE noted that the quantity equivalent to 10% of the total under the particular category would be allocated to the L1 bidder. Further, the option to match the lowest (L1) bidder will be provided to all bidders falling under L1+15%. In case the number of bidders is less than five, the same will be further extended to all bidders in ascending order of the price quoted by them until all bidders agree on the L1 price.
  • The test certificate for a particular model of solar pumping system can be used by other installers, given the fact that they have obtained permission from the owner of the test certificate.
  • There will be a separate bid price for the solar water pumping system with a universal solar pump controller (USPC). The subsidy will be granted for these pumps according to the benchmark price for solar pumps without USPC.
  • For Component C as per MNREnotification, MNRE will release 50% of the service charges for the sanctioned quantity to state implementation agencies after the placement of the LoA for preparatory activities. For grid-connected solar pumps to be set up and used by water user associations, farmer producer organizations, primary agriculture credit societies, or for cluster-based irrigation systems, the central financial assistance will be provided for capacity up to 5 HP for Solarization of pumps above the 7.5 HP capacity.

MoP amended Bidding Process for RTC power procurement from RE plus thermal Projects

  • Ministry of Power (MoP) with its notification dated 3 November, 2020 has amended guidelines for Tariff based Competitive Bidding Process for procurement of Round-the-clock power from Grid connected Renewable Energy Projects complemented with Power from Coal Based Thermal Power Projects.
  • As per this amendment, Round-the-clock power can now be bundled with any non-renewable power sources instead of just thermal power.
  • As per aforementioned amendments, to tackle the issues like intermittency in power generation from renewable energy projects, limited power supply hours, and the low capacity utilization of transmission infrastructure, renewable energy projects can be bundled with “firm power” from any other source or storage to provide round-the-clock power to distribution companies (DISCOMs).
  • As per revised guidelines, generators can complement or balance their renewable power supply using power from any other non-renewable power source. There can only be one non-renewable fuel source. The source and the committed supply capacity from these sources cannot be changed for the PPA duration. Power generators are not allowed to tie up with more than one bidder for the same spare capacity.
  • Generators supplying renewable RTC power bundled with any other power source must commit and maintain at least 85% of the capacity available annually and during peak hours.
  • The peak hours will be declared by the regional load despatch center (RLDC) as per the relevant Central Electricity Regulatory Commission (CERC). Previously, the peak hours were to be specified by the procurer in the bidding documents beforehand.
  • In case of a shortfall from the specified 85% minimum capacity, generators are liable to pay the procurer a penalty of 400% of the cost of power they fell short of. This will be computed based on the applicable tariff during the year. Earlier, the amount of penalty was 25% of the cost of the shortfall. This was to be calculated at the maximum indexed composite tariff payable during the year.
  • Penalty of 400% also applies to the shortfall in renewable energy if it is lower than what was quoted at the time of bidding. Earlier, a penalty of 25% was applicable if the shortfall was below 51% of the total power quoted in a contract year.
  • Earlier, bidders were allowed to quote a single composite tariff for RTC renewable energy bundled with thermal energy. As per the revised guidelines, the quoted tariff must now comprise four components – a fixed component for the renewable power and non-renewable power, and a variable component for the non-renewable component (scalable for fuel) and non-renewable power (scalable for transportation).
  • Fixed components must be quoted every year for the tenure of the PPA. The variable components must be quoted on the scheduled date of commissioning. Following this, the levelized tariff will be computed as per CERC escalation indices depending on the type of fuel being used and the discount factor, which will be specified in the bidding document.
  • Minimum capacity a bidder can quote remained at 250 MW to enable economies of scale, but since bidders are not allowed to tie up with more than one non-renewable source of power, the guidelines removed the provision allowing bidders to place quotes for less than 250 MW of projects.
  • MoP also revised the timeline for attaining financial closure of RTC projects by generators. Projects that are 1 GW and below must be closed within 18 months from the date of execution of the PPA. For projects larger than 1 GW, this limit was set at 24 months. Previously, projects that are 500 MW and below were to be closed within one year, projects between 500 MW and 1 GW were to be closed in 18 months, while projects over 1 GW were given two years to achieve financial closure.
  • In terms of project commissioning and the commencement of power supply, projects smaller than 1 GW are now allowed two years, while projects over 1 GW must be commissioned and start supplying power within 30 months. Previously, projects that are 500 MW and below were allowed 18 months, projects between 500 MW and 1 GW were allowed two years, while projects over 1 GW were allowed 30 months.

CEA annual report estimates Green Energy Corridor expense for Evacuating Renewables

  • The Central Electricity Authority (CEA), in its annual report for 2019-20, issued updates on the Green Energy Corridor program for the transmission and integration of renewable energy.
  • The current estimated cost of intrastate and interstate transmission systems required to evacuate renewable power is Rs. 126.9 billion and Rs.154.5 billion, respectively.
  • To boost the country energy and transmission efficiency, the MNRE and PGCIL started the Green Energy Corridor program to evacuate renewable energy from power surplus states to supply to power deficit states.
  • The lack of transmission infrastructure to support new renewable energy capacity additions has been a growing concern for solar and wind companies in the country. India’s transmission and distribution system require significant expansion, considering the expected surge in power demand over the coming decade and the rapid installation of solar and wind projects.
  • The program is being implemented in the renewable energy-rich states of Tamil Nadu, Rajasthan, Karnataka, Andhra Pradesh, Maharashtra, Gujarat, Himachal Pradesh, and Madhya Pradesh.
  • Intrastate transmission programs are being funded through 20% equity from the state government, 40% grant from National Clean Energy Fund (NCEF), and 40% as a soft loan.
  • Meanwhile, the interstate transmission programs are funded as 30% equity by the Power Grid Corporation of India Limited (PGCIL) and 70% as a soft loan. For the funding of green energy corridors for intrastate and interstate transmission projects, KfW Germany has provided a soft loan amounting to €1 billion. For interstate transmission projects under Part A, B and C of the Green Energy Corridor program, a loan agreement for financial assistance of €500 million from KfW, Germany has been signed by PGCIL.
  • According to the report, to facilitate grid integration of solar power parks in 21 states under the Green Energy Corridor-II program, a comprehensive transmission plan was created to evacuate about 20 GW through intrastate and interstate systems.
  • In 2015, MoP assigned works for the transmission programs for solar parks in Kunta (1500 MW), Pavagada (2000 MW), Rewa (750 MW), Bhadla-III (500 MW), Bhadla-IV (250 MW), Essel (750 MW), and Banaskantha (700MW). The transmission works for these solar parks have been completed, according to the latest report.
  • The annual report further noted that the country’s total energy requirement during the year 2019-20 was 1,291,010 MUs against 1,274,595 MUs during the previous year 2018-19, an increase of 1.3%. The total energy supplied in the country during the year 2019-20 was 1,284,444 MUs as against 1,267,526 MUs during the previous year 2018-19.
  • 63 sites for the development of pumped hydro storage with 96.5 GW installation capacity have been identified across the country. At present, nine pumped hydro storage projects (above 25 MW) having a total installed capacity of 4.7 GW have been constructed, and three projects (1.5 GW) are under construction.

Ministry of Finance Reduces Performance Security Deposits for Solar Tenders to 3%

  • Ministry of Finance (MoF) has issued a notification revising the performance security deposits for tenders to 3% of the contract value from the previous range of 5%-10%. This move is expected to help entities execute contracts and projects on time amid the COVID-19 induced economic slowdown.
  • For Contracts, where the performance security has been reduced to 3%, are allowed to continue enjoying these benefits for the contract’s entire duration. The performance security for these contracts will not be increased even after 31 December, 2021. In cases where there are compelling enough reasons for a higher performance security rate, a higher authority’s approval is required.
  • This benefit would not apply to contracts under dispute whose proceedings are already underway in court. All tenders and contracts that have been issued or concluded until 31 December, 2021, will also be eligible for the reduced performance security benefits.

Uttar Pradesh

UPERC issued Tariff Order for Power Distribution Companies, No Tariff Hike

  • UPERC with its order dated 11 November, 2020 has issued Tariff order for state owned distribution companies Dakshinanchal Vidyut Vitran Nigam Ltd., Agra (DVVNL), Madhyanchal Vidyut Vitran Nigam Ltd., Lucknow (MVVNL), Pashchimanchal Vidyut Vitran Nigam Ltd., Meerut (PVVNL), Purvanchal Vidyut Vitran Nigam Ltd., Varanasi (PuVVNL), Kanpur Electricity Supply Company Ltd., Kanpur (KESCO) and for Noida Power Company Ltd. (NPCL).
  • UPERC in its Tariff Order stated that there would be no hike in power tariffs and rejected the proposal of power distribution companies for a marginal hike in tariffs.
  • UPERC decided not to change the slab category and fixed charge, which was kept at Rs. 110/kW/month.
  • For urban domestic consumers the charges are at the rate of Rs. 5.50 per unit for first 150 units, followed by Rs. 6 per unit on consumption of 150-300 units.
  • For the slabs between 301-500 units, a consumer would be required to pay at the rate of Rs.6.50/ unit.Consuming electricity above 500 units will require the consumer to shell out of Rs.7 per unit.

Tamil Nadu

TANGEDCO asked to Pay Late Payment Surcharge to Wind Generator

  • SRB Consultancy Private Limited, a wind power generator, filed a petition with the Commission to order TANGEDCO to release the total late payment surcharge (interest on delayed payment) of Rs. 3.6 million calculated at the rate of 1% per month from April 2012 onwards as agreed in the power purchase agreement (PPA).
  • SRB Consultancy had also requested the Commission to direct TANGEDCO to release all future payments on time.  Its wind project in the Tirupur district of Tamil Nadu was commissioned on 6 March, 2012.
  • Tamil Nadu Electricity Regulatory Commission (TNERC) directed the Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) to rework the late payment surcharge at 12% per year for the delayed payments. The regulator heard two separate petitions filed by a wind power generator.
  • The wind power generator had offered to reduce the interest rate to 6% per year if TANGEDCO paid the due amount within 60 days. Since TANGEDCO failed to clear the dues, the Commission has now asked TANGEDCO to pay interest at 12% per year for dues beyond 30 days of receipt of the bill.

Tamil Nadu Sets Benchmark Tariff of Rs. 2.28/kWh for 20,000 Solar Pumps

  • Tamil Nadu Electricity Regulatory Commission (TNERC) has passed an order setting a benchmark tariff of Rs. 2.28 /kWh to set up 20,000 agricultural solar pumps under Component-C of the KUSUM program.
  • TNERC also set a Rs. 1 /kWh incentive for farmers for exporting surplus energy back into the grid.
  • The Commission factored in capital costs, capacity utilization factor (CUF), grid availability factor, the life of the project (25 years), interest on loan, depreciation, interest on working capital, among other factors, and then arrived at a levelized cost of electricity (LCOE) of Rs. 2.28 /kWh.
AssumptionsValue
Solar PV System Capacity11kW
MNRE Benchmark costRs. 48000/kW
Capital CostRs. 48000/kW
MNRE Subsidy30%
Government of Tamil Nadu Subsidy30%
Equity (% of net capital cost after subsidies)30%
Return on Equity16.96%
Interest on Loan9%
Loan tenure (including moratorium)11 years
Loan principle payment moratorium1 year
Solar PV system CUF19%
Daytime grid availability (rural feeder)90%
O&M (percentage of gross capital cost)1.40%
O&M annual increase5.72%
Annual depreciation rate on net capital cost3.60%
Working Capital –O&M1 month
Working Capital – receivables2 months
Interest on Working Capital10.50%
Discount factor8.67%
Economic life of system25 years
LCOERs. 2.28 /kWh
  • The Commission noted that the minimum incentive should be subject to the condition that the solar project is functional. A project will be considered functional if at least 50% of the project’s generation capacity has been achieved during the period for which the minimum incentive is proposed to be paid.
  • The generation potential will be calculated based on the capacity utilization factor and grid availability parameters the Commission used in its LCOE calculation. The minimum incentive was set at Rs. 3,000 per year for a 7.5 HP pump and an 11-kW solar system. The maximum was set at Rs. 15,000 per year.
  • An energy meter to record gross solar power generation and a service connection energy meter with programmable time-of-day (TOD) feature must be installed at each farm, the Commission said. The solar power generation meter must be sealed jointly by TANGEDCO and the RESCO (TEDA), while the service connection meter is to be sealed by TANGEDCO.

Karnataka

KERC issued Tariff Order for Power Distribution Companies for FY 2020-21

  • Karnataka Electricity Regulatory Commission (KERC) has issued the retail tariff order for various distribution companies (DISCOMS) for FY 2020-21 on 4 November, 2020.  The new tariffs will come into force from 1 November, 2020.
  • Bangalore Electricity Supply Company (BESCOM) had proposed an increase in electricity tariff of Rs.1.96 /kWh for all categories of consumers resulting in an average increase in retail supply tariff by 25.24%.
  • KERC has approved an increase of Rs.0.40 /kWh, accounting for just a 5.17% average increase. The tariff increase allowed by the Commission is Rs.0.40 /kWh for all the DISCOMs in the state though they had requested for a higher hike in tariff.
  • KERC has allowed the recovery of additional revenue partly by increasing the energy charges in the range of Rs. 0.20 to Rs. 0.25 /kWh for all categories.
  • KERC has continued with the tariff schedule for concessional power supply to the electric vehicle charging stations by including the EV battery swapping stations, without increasing the energy charges of Rs.5 /kWh. It has been maintained in the orders for all the DISCOMs in the state.
  • The green tariff of an additional Rs. 0.50 /kWh over the standard tariff, which was introduced a few years ago for HT industries and HT commercial consumers, to promote the purchase of renewable energy from ESCOMs has been maintained. It will be the same for all the DISCOMs.
  • KERC determined a wheeling charge of Rs. 0.23 /kWh for the HT network and Rs. 0.54 /kWh for the low tension (LT) network.
  • KERC also noted that the wheeling charges would apply to all open access consumers using the BESCOM network only, except for energy transmitted from renewable sources. For wheeling of energy from renewable energy sources, separate orders issued by the Commission from time to time will be applicable.
  • KERC has extended the validity of the existing tariff structure determined by the Commission in August 2019. The earlier regulation had expired in April 2020. The extension has been provided for one year from 1 April, 2020, to 31 March, 2021. The extension will facilitate the seamless development of solar projects, including rooftop solar installations in the state.

Rajasthan

Rajasthan issued RE Tariff regulations, Banking restricted to 25% of Injected Energy

  • Rajasthan Electricity Regulatory Commission (RERC) has issued regulations for determining tariffs for renewable energy-based power sources for 2020.
  • Renewable energy with storage projects installed after the date of notification of these regulations and before 31 March, 2023, are given a 75% exemption in intra-state transmission and wheeling charges. These projects could be set up as a captive project or supplying power to a third party under open access. This exemption is applicable for the first seven years of operation from the project’s date of commissioning.
  • Existing wind projects that have been in operation for at least ten years would be considered for repowering. Wind, solar, small hydro, solar-wind hybrid, and MSW projects will be treated as “must-run” projects.
  • Surcharges for bill payments delayed over 45 days from the date of invoice will be charged at a rate equivalent to the base rate on April 1 of the corresponding year along with a 400 basis-point-per year for each day the payment is delayed.
  • The regulations stated that the maximum permitted capacity of eligible new renewable-based captive projects, including projects installed behind the meter, will be limited to 100% of the contracted demand. This energy can be consumed and banked from new renewable captive generating projects and will be limited to 5% over the minimum capacity utilization factor (CUF) or plant load factor (PLF).
  • There is a 100% exemption in intra-state transmission and wheeling charges for solar power project set up after the notification of these regulations and before 31 March, 2023, for supplying power to electric vehicle charging stations either under captive route or through open access. This exemption is applicable for the first ten years from setting up electric vehicle charging stations. This exemption applies to projects with an individual plant capacity of a maximum of 25 MW and for the total capacity of 500 MW.
  • RERC said that banking of energy subject to a maximum of 25% of energy injected by captive renewable projects during 15-minute time blocks at the consumption end would be allowed only for captive consumption within the state.
  • Banking charges of 10% of the banked energy must be paid and adjusted against the energy banked before it was drawn.
  • The regulations stated that renewable energy projects must pay grid connectivity charges of Rs. 250,000 /MW to transmission or distribution licensees. They also said that energy would be accounted for by metering when power is sold to distribution licensees.
  • The regulation will be in effect from 1 April, 2020. The control period for these regulations will be four years starting 1 April, 2020, to 31 March, 2024. The regulations will apply to new and existing renewable energy-based sources of power in Rajasthan that generate and sell electricity to distribution licensees in the state.
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