Monthly RE update – November 2021

Monthly RE update – November 2021

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Tenders

  • In November 2021, 17 new renewable energy (RE) tenders with a total capacity of 2981 MW were issued. NTPC issued a solar (EPC) tender of 1200 MW in Karnataka and RUMSL floated 600 MW floating solar tender in Madhya Pradesh.
  • In addition, MSEDCL issued two wind tenders of 342 MW and 300 MW capacity in Maharashtra this month.
  • REMCL issued a hybrid tender for supply of 150 MW of Round-the-Clock (RTC) Power from grid-connected RE power projects, complemented with power from any other source or storage.

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

NTPC, 1200 MW, Solar (EPC), Karnataka, Nov 2021

Utility Scale Solar

EPC

1200

24th-Dec-2021

RUMSL, 600 MW, Floating Solar, Madhya Pradesh, Nov 2021

Floating Solar

Project Development

600

EMD – INR 0.65 million/MW

31st-Jan-2022

MSEDCL, 342 MW, Wind, Maharashtra, Nov 2021

Wind

Project Development

342

EMD – INR 0.1 million/MW

16th-Dec-2021

MSEDCL, 300 MW, Wind, Maharashtra, Nov 2021

Wind

Project Development

300

EMD – INR 0.6 million/MW PBG – INR 1.2 million/MW

22%

18 months

20th-Dec-2021

REMCL, 150 MW, Hybrid, Nov 2021

Hybrid

Project Development

150

EMD – INR 117.6 million

PBG – INR 235.4 million

18 months

27th-Dec-2021

KSEB, 100 MW, Floating Solar, Kerala, Nov 2021

Floating Solar

Project Development

100

29th-Dec-2021

CEL, 95 MW, Solar (EPC), Maharashtra, Nov 2021

Decentralized Solar

EPC

95

PBG – 10% of the O&M cost payable at the time of commissioning

19%

6 months

17th-Dec-2021

REMCL, 50 MW, Wind, Maharashtra, Nov 2021

Wind

Project Development

50

PBG – INR 1.2 million/MW

22%

18 months

10th-Jan-2022

KSEBL, 40 MW, Solar (Under KUSUM), Kerala, Nov 2021

Small Scale Solar

Project Development

40

EMD – INR 0.1 million/MW

PBG – INR 0.5 million/MW

Ceiling Tariff – INR 3.66/kWh

15%

12 months

8th-Dec-2021

UPNEDA, 38 MW, Rooftop Solar, Uttar Pradesh, Nov 2021

Rooftop Solar

CAPEX

38

EMD = (INR 1000) x offered Bid Capacity in

kW

6 months

13th-Dec-2021

JBVNL, 25 MW, Rooftop Solar, Jharkhand, Nov 2021

Rooftop Solar

CAPEX

25

EMD – INR 0.1 million/MW

12 months

24th-Dec-2021

MPUVNL, 18 MW, Rooftop Solar, Madhya Pradesh, Nov 2021

Rooftop Solar

RESCO

18

PBG – INR 1.2 million/MW

Ceiling Tariff – INR 4.50/kWh

15%

9 months

16th-Dec-2021

JAKEDA, 12 MW, Rooftop Solar, Jammu & Kashmir, Nov 2021

Rooftop Solar

12

EMD – INR 10 million

6th-Dec-2021

DPL, 7 MW, Solar (EPC), West Bengal, Nov 2021

Utility Scale Solar

EPC

7

EMD – INR 7.1 million

PBG – 3% of the contract value

12 months

27th-Dec-2021

SREDA, 2 MW, Rooftop Solar, Sikkim, Nov 2021

Rooftop Solar

CAPEX

2

EMD – INR 1500/kWh of the quoted capacity

8th-Dec-2021

PSCDL, 1.1 MW, Solar (EPC), Puducherry, Nov 2021

Small Scale Solar

EPC

1.1

PBG – INR 2.25 million/MW

12 months

16th-Dec-2021

Anandpur Sahib Foundation, 1 MW, Solar (EPC), Chandigarh, Nov 2021

Small Scale Solar

EPC

1

EMD – INR 0.81 million

6 months

1st-Dec-2021

PBG: Performance Bank Guarantee

EMD: Earnest Money Deposit

Source: JMK Research

Other announcements

  • Sambhar Salts Limited (SSL), a subsidiary of Hindustan Salts Limited has invited expression of Interest (EOI) from the interested parties for the development of Ultra Mega Solar Power project of Up to 4000 MW at Sambhar, Rajasthan. The company has also invited an EOI for the development of a 1000 MW solar power project at Kharaghoda, Gujarat. For both the EOI submissions, the last date is 13th December 2021.
  • The SECI is planning to establish a 300 MW solar park at Ramagiri in Anantapur district for which 70% of the land has been acquired. Under the Solar Energy Export Policy, the power generated here would be sold to Tamil Nadu and Karnataka. In addition, a 500 MW Pumped Storage Power Generation project will be developed at the Chitravathi balancing reservoir.
  • The construction for a 600 MW solar project has started in Jhansi, Uttar Pradesh under the MNRE’s ultra-mega renewable energy park scheme. THDC and Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) will develop a solar park through a joint venture with an equity investment ratio of 74:26. The park is being constructed at a cost of over INR 3,013 crore.
  • The Board of Directors has approved the proposal regarding formation of a joint venture company between NHPC Limited and Green Energy Development Corporation of Odisha (GEDCOL) for implementation of 500 MW floating solar power project in various water reservoirs in Odisha. The Board has also given its approval for NHPC Limited to invest INR 7.4 crore in the JV company, which would be promoted jointly by NHPC (74%) and GEDCOL (26%).

Date Extensions

Tender Name

Technology

Tender Scope

Capacity (MW)

Other Details

Minimum CUF

Commissioning timeline from PPA signing

Bid Submission Date

MSEDCL, 1250 MW, Solar (Under MSKVY), Maharashtra, Oct 2021

Utility Scale Solar

Project Development

1250

EMD – INR 0.1 million/MW

PBG – INR 0.5 million/MW

Ceiling Tariff – INR 3.10/kWh

19%

12 months

8th-Dec-2021

MSEDCL, 444 MW, Solar (Under KUSUM), Maharashtra, Oct 2021

Small Scale Solar

Project Development

444

EMD – INR 0.1 million/MW

PBG – INR 0.5 million/MW

15%

12 months

6th-Dec-2021

NTPC, 300 MW, Wind (EPC), Pan India, Sep 2021

Wind

EPC

300

10th-Dec-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

7th-Dec-2021

Source: JMK Research

Auction Completed

Tender NameCapacity tendered (MW)Capacity allotted (MW)Winners Details
PSPCL, 250 MW, Solar, Punjab, May 2021250100SJVN – 100 MW (INR 2.69/kWh)

Source: JMK Research

The Kerala State Electricity Board Limited (KSEB) has released a list of empanelled installers for EPC of 200 MW of rooftop solar systems in Kerala. Only 138.25 MW of the total capacity of 200 MW has been allocated by the state DISCOM. In the 3 kW to 10 kW category, Tata Power Solar won the most capacity. Bingas Electrical, BSS Solar, Ishaan Solar, and Kondaas Automation were among the other empanelled installers.

PLI- Scheme Winners

In addition, the auction has been also concluded for IREDA’s tender for setting up manufacturing capacities for high efficiency solar PV modules under the PLI scheme. The winners under the scheme are:

Winner NameCapacity (MW)Integration StagePLI Quoted (in INR crores)
Jindal India4000Stage 1 to 41390
Shirdi Sai4000Stage 1 to 41875
Reliance New Solar Energy4000Stage 1 to 41917

Source: IREDA, JMK Research

Installed Capacity

In October 2021, a combined total of 1510.40 MW of solar and wind capacity was added, taking the cumulative RE capacity to 103.06 GW. According to MNRE, as of October 31st, 2020, projects totalling 50.98 GW of capacity were at various stages of implementation while another 32.06 GW of projects were under various stages of bidding.

RE installations in October 2021

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 October 2021

Rajasthan added the highest utility scale solar capacity of 758.4 MW in October 2021 followed by Tamil Nadu (63 MW) and Telangana (38.05 MW).

In the rooftop solar segment, Maharashtra installed 98.99 MW capacity followed by Gujarat (83.38 MW) and Rajasthan (69.02 MW) whereas Haryana added the maximum off grid/distributed solar capacity of 47.41 MW followed by Punjab (5.48 MW) in October 2021.

Tamil Nadu installed the maximum wind capacity of 46.55 MW followed by Karnataka (37.8 MW) and Gujarat (35.3 MW).

State wise solar and wind installed capacity in Oct 2021

Source: MNRE, JMK Research

Investments and Partnerships

In November 2021, about US$ 317 million was invested in the India RE sector. The Key investment during the month were:

  • KKR’s Virescent Renewable Energy Trust (VRET), India’s first renewable energy infrastructure investment trust (InvIT) raised INR 2,150 crore ($289 million) of debt from listed non-convertible debentures (NCDs).

Investment and deals in November 2021

Company Name

Deal Type

Sector

Investor

Deal Value

Stakes Acquired

Other Details

Virescent Renewable Energy Trust (VRET)

Debt

Renewable

L&T Finance and Tata Capital

$289 million (INR 2,150 crore)

VRET’s first issuance raised INR 1,000 crore in three, five, and seven-year tranches.

INR 1,000 crore has been raised by L&T Finance and INR 150 crore by Tata Capital

Central Electronics Limited (CEL)

Acquisition

Solar Cell and Module Manufacturer

Nandal Finance and Leasing Private Limited

$28.02 million

100%

CEL is a leader in the field of solar photovoltaic technology in the country.

Source: Industry news articles, JMK Research

Other key announcements that were made during the month were:

  • Fourth Partner Energy, O2 Power, Eversource Capital and Keppel Corp are in discussions to acquire a majority stake in Cleantech Solar. The proposed transaction is expected to value Cleantech Solar assets at $400 million. The company is planning to sell its 51% stake while Shell will retain its 49% in the company. Standard Chartered Bank is advising promoters to find a buyer.
  • BlackRock is making an investment of about $500-750 million in Tata Power Renewable Energy Ltd (TPREL). The company is looking to close negotiations by the end of December 2021. The company is planning to increase its capital-raising to $1 billion, including multiple small co-investors.
  • Azure Power, Macquarie, KKR, and ReNew Power are planning to bid for private equity firm Actis-owned renewable energy company, Sprng Energy. To buy Actis’s share in Sprng Energy, a successful bidder would have to pay $1 billion or more. The company also owes $1 billion of debt, bringing the total transaction value to almost $2 billion. The potential bidders list might also include Canadian pension funds. Final bids for Sprng Energy must be submitted by March 2022. Actis’s financial advisor on the sale of the company is Bank of America Merrill Lynch.

Module Price Trends

Comparing on m-o-m basis, prices for global mono PERC modules and mono PERC India modules have increased by 3.38% and 4.89% respectively in November 2021.

Solar Modules Price trends

Source: PVInfoLink, JMK Research
Note: India prices are FOB prices

On 16th November 2021, the U.S. reduced the section 201 tariff rate to 15% and exempted bifacial modules from the tariff. Therefore now U.S. prices will be presented with FOB price quotes (with tax and ocean freight rates excluded).

Policies and Regulation

Central Level Regulatory Updates

Policy Name

Issuing Agency

Date of Issue

CERC Grants an inter-State Trading Licence in Electricity to ReNew Energy Markets Private Limited

CERC

28th-Nov-2021

CERC Grants Regulatory Approval for Execution of the Proposed Transmission of 8 GW Solar and Wind Energy in the Southern Region

CERC

26th-Nov-2021

MoP Announced Waiver of ISTS Transmission Charges on RE Projects in India

MoP

23rd-Nov-2021

Public procurement (preference to make in India)to provide for purchase preference (linked with local content) in respect to power sector

MoP

16th-Nov-2021

APTEL Directed DISCOM to Consider Carrying Cost with Solar Safeguard Duty Refund

APTEL

16th-Nov-2021

Ministry of Power allows

bundling of renewable to

replace thermal power

under existing PPAs

MoP

15th-Nov-2021

CERC Allowed Solar Developer for GST Compensation on ‘Change in Law’ Grounds

CERC

12th-Nov 2021

Updated List – I under ALMM order for Solar PV Modules

MNRE

10th-Nov-2021

APTEL Quashed CERC’s Order Removing Floor Prices of Solar and Non-Solar RECs

APTEL

9th-Nov-2021

MNRE: Temporary disruptions in supply of imported solar PV modules-Special

Dispensation under Dispute Resolution Mechanism

MNRE

3rd-Nov-2021

MNRE Issues Revised RLMM List For Wind Turbines

MNRE

1st-Nov-2021

SB Energy’s Solar Project is Stuck in the Middle Due to Delay in Tariff Adoption

CERC

31st-Oct-2021

MoF: General Instructions on Procurement and Project Management

MoF

29th-Oct-2021

Ministry of Power Re-Constituted National Committee on Transmission

MoP

28th-Oct-2021

State Level Regulatory Updates

Policy Name

Issuing Agency

State

Date of Issue

Andhra DISCOMs Get Regulatory Approval to Procure 7 GW of Solar Power from SECI

APERC

Andhra Pradesh

11th-Nov-2021

CSERC determined tariff for procurement of power from agricultural solar systems under Component-A and Component-C of PM KUSUM Scheme

CSERC

Chhattisgarh

30th-Oct-2021

GERC Approves Tariff of INR 1.75/kWh for Purchase of Surplus Solar Energy from Captive/Third Party Sale

GERC

Gujarat

16th-Nov-2021

HERC Determined Levelized Tariff of INR 2.86/kWh for 50 MW solar power project in Haryana

HERC

Haryana

11th-Nov-2021

HP moves towards new hydro power policy after 15 years

Directorate of Energy, HP

Himachal Pradesh

7th-Nov-2021

KERC Approved Commissioning Deadline Extension for ReNew Projects Citing Force Majeure

KERC

Karnataka

9th-Nov-2021

KSERC Approves the Procurement of 300 MW solar power under Tranche-IX at tariff of INR 2.44/kWh

KSERC

Kerala

15th-Nov-2021

OERC Considers West Bengal 5 MW Solar Project for Odisha Captive Project RPO

OERC

Odisha

27th-Oct-2021

OERC accepts PSA between SECI and GRIDCO for 270 MW solar project

OERC

Odisha

27th-Oct-2021

PSERC Allowed PACL to fulfil its RPO shortfall by procuring RECs by 31st March 2021

PSERC

Punjab

22nd-Nov-2021

RERC Issued Retail Tariff Order for FY 2021 and FY 2022

RERC

Rajasthan

24th-Nov-2021

RERC Directed state Discoms to pay LPS to Maharaja Shree Umaid Mills

RERC

Rajasthan

22nd-Nov-2021

TNERC Rejects Benchmark Tariff of INR 2.97/kWh for implementation of Component-C of KUSUM Agricultural Solar Pump Scheme

TNERC

Tamil Nadu

16th-Nov-2021

TNERC Approves Purchase of 1000 MW RTC Power Under MoP’s Pilot Scheme II

TNERC

Tamil Nadu

16th-Nov-2021

TNERC Approves Short Term Power Purchase of 180 MW from 06-09-2021 to 30-09-2021 at the rate of INR 4.50/kWh

TNERC

Tamil Nadu

9th-Nov-2021

TNERC Determined Generic Tariffs for solar power projects in Tamil Nadu

TNERC

Tamil Nadu

22nd-Oct-2021

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