Monthly RE update – November 2022
Tenders
In November 2022, 12 new renewable energy (RE) tenders with a cumulative capacity of 3,911 MW were issued.
- SECI issued a tender for setting up of 1200 MW Wind-Solar Hybrid Projects under Tranche VI with assured Peak Power Supply in India.
- NTPC issued 1200 MW solar (BOS) tender in Gujarat in November 2022. In addition, NTPC floated 1000 MW wind (BOS) tender in Karnataka.
Details of new RE tenders issued in November 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 |
SECI, 1200 MW, Wind Solar Hybrid with ESS (Tranche VI), Pan India, Nov 2022 | Wind Solar Hybrid with ESS | Project Development | 1200 | EMD – INR 1.23 million/MW PBG – INR 1.84 million/MW | 50% | 24 months |
12th-Dec-2022
|
| Utility Scale Solar |
BOS |
1200 | PBG- 300 MW-INR 50 million 600 MW- INR 200 million 900-1200 MW- INR 200 million |
– |
– |
9th-Jan-2023 | |
|
Wind |
BOS |
1000 |
– |
– |
– |
19th-Dec-2022 | |
|
Utility Scale Solar |
Project Development |
230 | EMD – INR 0.1 million/MW PBG – INR 0.5 million/MWCeiling Tariff – INR 3.3/kWh |
19% |
12 months |
16th-Dec-2022 | |
|
Floating Solar |
Project Development |
100 | EMD- INR 1.16 million/MW PBG – INR 2.91 million/MWCeiling Tariff – INR 4.76/kWh |
19% |
18 months |
7th-Dec-2022 | |
|
Wind |
EPC |
60 |
– |
– |
– |
18th-Nov-2022
| |
| Utility Scale Solar | Project Development |
50 | EMD- INR 0.89 million/MW PBG – INR 2.24 million/MWCeiling Tariff – INR 4.40/kWh |
16.21% |
18 months |
7th-Dec-2022 | |
|
Utility Scale Solar |
O&M |
40 | EMD- INR 0.003 million |
– |
– |
29th-Nov-2022 | |
| Directorate of Supplies & Disposals, 30 MW, Solar (EPC), Haryana, Nov 2022 |
Utility Scale Solar |
EPC |
30 | EMD- INR 0.2 million PBG – INR 0.1 million/MW |
15% |
3 months |
19th-Dec-2022 |
| Small Scale Solar |
EPC |
26 | PBG – INR 0.5 million/MW |
19% |
9 months |
22nd-Nov-2022 | |
| SJVN, 15 MW, Floating Solar (EPC), Himachal Pradesh, Nov 2022 | Utility Scale Solar |
EPC |
15 | EMD- INR 11 million |
21% |
18 months |
22nd-Nov-2022
|
Utility Scale Solar | O&M |
10 | EMD – INR 1.21 million PBG – 3% of the contract value |
– |
– |
5th-Dec-2022
| |
| Utility Scale Solar |
EPC |
10 | EMD – Phase I: INR 12.5 million Phase II: INR 12.5 million PBG – 3% of the contract value |
– |
9 months |
3rd-Jan-2022 |
PBG: Performance Bank Guarantee
EMD: Earnest Money Deposit
Source: JMK Research
Other announcements during the month were:
SECI has issued a tender for selection of Solar PV Module Manufacturers (SMM) for setting up Manufacturing Capacities for High Efficiency Solar PV Modules in India under the Production Linked Incentive Scheme (Tranche-II). The last date for bid submission is 9th January 2023. The following key details of the tender are mentioned below:
| Basket | Extent of Integration | EMD Amount (INR Million/GW) | PBG Amount(INR Million/GW) | Commissioning Timeline |
|
1 | Polysilicon + Wafer + Cells + Modules |
90 |
130 |
3 years |
|
2 | Wafer + Cell + Modules |
60 |
90 |
2 years |
|
3 | Cells + Modules |
40 |
60 |
1.5 years |
The Ministry of New and Renewable Energy (MNRE) has issued a draft tender for selection of offshore wind power developers (OWPD) for leasing of sea-bed areas equivalent to 4000 MW of offshore wind power projects off the coast of Tamil Nadu, through International Competitive Bidding. Grid connectivity and Long-Term Open Access/ Access to grid under general network access (GNA) framework) to grid will be in the scope of the offshore wind power developer. The energy generated from offshore wind power projects is to be consumed in captive mode or sold to third party under open access framework. Successful bidder must submit the EMD of INR 10 million/project. The Scheduled Commissioning Date (SCD) of the full capacity of the Project is 48 months. The Central Government has extended the last date for suggestions from the public for the development of offshore wind energy in Tamil Nadu to 9th December 2022 from 28 November 2022.
PTC India Ltd has received an interest of supply of 3500 MW of RE from a total of 14 of the top RE producers against its Expression of Interest for procurement of 1000 MW for onward sale through market linked RE products. This is first of its kind development in Indian Power Market wherein a trading licensees intended to purchase renewable power for onward sale through market linked products. Most of the big domestic private players including Tata Power Renewable Energy Limited (TPREL), Torrent Power Limited, ReNew Power etc. participated in the process. Besides, many internationally renowned companies like Enel Green, Engie power etc. have also shown interest in the EOI process. The projects are mainly located in Rajasthan, Gujarat, MP and Karnataka. Developers have offered to commission the project within a period of 18-24 months.
Date Extensions
|
Tender Name |
Technology |
Tender Scope |
Capacity (MW) |
Other Details |
Minimum CUF |
Commissioning timeline from PPA signing |
Bid Submission Date |
SECI, 2250 MW, RE with storage (RTC III), Pan India, Sep 2022 |
RE with Storage |
Project Development |
2250 | EMD – INR 1.27 million/MW PBG – INR 1.84 million/MW |
– |
24 months |
9th-Dec-2022 |
|
Utility Scale Solar |
Project Development |
1548 | EMD – INR 1 million/MW PBG – INR 1.6 million/MW |
19% |
18 months |
20th-Dec-2022 | |
| Utility Scale Solar | Project Development |
1000 | EMD – INR 0.4 million/MW PBG – INR 1 million/MWCeiling Tariff – INR 2.30/kWh |
19% |
18 months |
2nd-Dec-2022 | |
|
Utility Scale Solar |
Project Development |
1000 | EMD – INR 0.4 million/MW PBG – INR 1.18 million/MW |
19% |
18 months |
9th-Dec-2022 | |
|
Utility Scale Solar |
Project Development |
700 | EMD – INR 0.4 million/MWPBG – INR 0.94 million/MW |
17% |
15 months |
30th-Jan-2023 | |
Utility Scale Solar |
Project Development |
600 | EMD – INR 0.4 million/MW PBG – INR 0.94 million/MW |
17% |
15 months |
15th-Dec-2022 | |
|
Utility Scale Solar |
Project Development |
500 | EMD – INR 0.4 million/MW PBG – INR 0.8 million/MW |
17% |
18 months |
7th-Dec-2022 | |
GUVNL, 500 MW with 1000 MWh BESS (Phase-I), Gujarat, Aug 2022 |
Energy Storage System |
Project Development |
500 MW with 1000 MWh | EMD – INR 0.74 million/MW PBG – INR 1.11 million/MW |
– |
18 months |
6th-Dec-2022 |
|
Wind |
Project Development |
300 | EMD- INR 1 million/MW PBG – INR 2 million/MW |
22% |
24 months |
30th-Dec-2022 |
Source: JMK Research
Auctions Completed
RUMSL announced the result of the remaining 300 MW floating solar tender in November 2022. TPDDL also concluded the auction of its 255 MW Wind Solar Hybrid tender this month.
Winners in the latest RE auctions
Source: JMK Research
|
Tender Name |
Capacity tendered (MW) |
Capacity allotted (MW) |
Minimum CUF |
Commissioning timeline |
Winners Details |
RUMSL, 300 MW, Floating Solar Phase II, Madhya Pradesh, Jul 2022 | 300 | 252 | – | – | • NTPC – 90 MW (INR 3.69/kWh) • SJVN – 83 MW (INR 3.70/kWh)• Hinduja Renewables – 80 MW (INR 3.70/kWh) |
|
255 |
255 |
30% |
24 months | • Tata Power Renewable Energy – 255 MW (INR 3.00/kWh) |
Source: JMK Research
Installed Capacity
From January 2022 to October 2022, India added solar capacity of 12.78 GW and wind capacity of 1.76 GW in the country. In the month of October 2022, 988 MW of solar and wind capacity was added.
RE installations in October 2022
Source: CEA, JMK Research
Note: Solar includes utility scale solar, rooftop solar and off grid/distributed solar segments
State wise RE installed capacity in October 2022
In October 2022, Rajasthan added the maximum renewable energy capacity of 383 MW in the country followed by Gujarat (214 MW) and Uttar Pradesh (128 MW).
State wise RE installed capacity in October 2022
Source: CEA, JMK Research
Note: RE capacity includes utility scale solar, rooftop solar and off grid/distributed solar, wind, small hydro and Bio power segment
Recently Commissioned RE projects
|
Developer |
Technology |
Tender Name |
Capacity |
Tariff (INR/kWh) |
State |
Green Continuum Energy |
Hybrid | Open Access |
87.5 MW |
– |
Gujarat |
| SJVN Ltd |
Solar |
UPNEDA 275 MW Solar Uttar Pradesh Feb 2021 |
75 MW |
2.68 |
Uttar Pradesh |
|
Terapanth Foods Limited |
Solar |
– |
4 MW |
– |
Gujarat |
|
Vibgyor Energy |
Solar |
– |
1.5 MW |
– |
Jammu & Kashmir |
|
TotalEnergies ENEOS |
Solar |
– |
1 MWp |
– |
Tamil Nadu |
Source: Industry news articles, JMK Research
Other key announcements that were made during the month were:
- Sterlite Power which is currently owned by Vedanta Group is setting up more than 1,000 MW of wind/solar hybrid projects across Karnataka. The company is also planning to increase the RE capacity by 10 times over the next five years and investing about INR 50,000 crore in renewable energy sector.
- ISMT Ltd, a diversified manufacturer of specialized seamless tubes, is planning to develop a 70 MW DC solar power plant for captive consumption. The solar plant will be set up in a phased manner with a total investment of up to INR 305 crore.
- Tata Power Renewable Energy Limited (TPREL), a subsidiary of Tata Power receives the ‘Letter of Award’ (LoA) from the MSEDCL to set up 150 MW solar project in Solapur, Maharashtra. The project will be commissioned within 18 months from the PPA execution date.
- Serentica Renewables has entered into an agreement with Greenko Group, to source 1500 MWhr energy storage capacity through Greenko’s pumped storage projects located in India. As part of this partnership, Serentica will leverage Greenko’s energy storage capacity from its upcoming Off Stream Closed Loop Pumped Storage Projects (OCPSP) at Pinnapuram in Andhra Pradesh and Gandhi Sagar in Madhya Pradesh.
Monthly RE Generation
Renewable energy sources generated 10710 MU in November 2022, down by 12% from October 2022. Solar and Wind generation decreased by 7% and 23% respectively on month-on-month basis in November 2022.
Source-wise Renewable Energy Generation (MU) – India
Source: CEA, JMK Research
Investments/ Deals
In November 2022, about $1134 million was invested in the RE sector.
- Sembcorp Industries has signed an agreement with India Infrastructure Fund II, a fund managed by Global Infrastructure Partners India Pvt Ltd, to acquire 100% interest in Vector Green for around INR 27.8 billion (approximately S$474 million). The deal is expected to get completed by the first quarter of 2023.
- KKR and Serentica Renewables has signed the definitive agreements under which KKR will invest $400 million in the company.
- BluPine Energy owned by Actis PE, has acquired a 404 MW operating pan-India solar portfolio from the Atha Group for INR 2000 crore (~$245 million).
|
Company Name |
Deal Type |
Sector |
Investor |
Deal Value |
Stakes Acquired |
Vector Green |
Acquisition |
Renewable |
Sembcorp |
$474 million |
– |
|
Serentica Renewables |
Equity |
Renewable |
KKR |
$400 million |
– |
|
Atha Group |
Acquisition |
Solar |
BluPine Energy |
$245 million |
– |
SolarSquare |
Equity |
Solar | Elevation Capital and LowerCarbon | $12.11 million |
– |
|
Clean Electric |
Equity |
Energy Storage |
Climate Angles and Kalaari Capital |
$2.2 million |
– |
|
Ethan Energy (Vibrant Energy) |
Equity |
Solar |
Laurus Labs |
$0.48 million |
26% |
Source: Industry news articles, JMK Research
Other key announcements that were made during the month were:
- Edelweiss Real Assets Managers, part of Edelweiss Alternatives, an India-based alternative asset advisor, has closed its maiden energy infrastructure investment trust (InvIT) – AnZen India Energy Yield Plus Trust, with an initial asset under management of over INR 23 billion (~$283.03 million). The proceeds are expected to be used towards a diversified portfolio of energy assets, including transmission lines and renewable energy projects.
- The Competition Commission of India (CCI) has approved the proposed deal of Ontario Ltd which is an affiliate of Ontario Teachers’ Pension Plan Board (OTPPB) to acquire 30% stake in Mahindra Susten. The regulator also approved that the acquirer or its affiliate shall have the right to acquire an additional stake of up to 9.99% in MSPL by May 31, 2023.
- Bank of America has extended about INR 800 crore to ReNew Power in the renewable energy sector. The credit line is linked to two dedicated solar projects in India and the cash flows from these two projects will be used to repay the loan.
- In addition, Kerala has secured an INR 817 crore loan from KfW, a German state-owned investment, and development bank, for the implementation of the Green Energy Corridor (GEC) projects of Kerala State Electricity Board (KSEB). The state government is implementing the GEC projects at an estimated cost of INR 1,457 crore. The GEC projects will have a commissioning timeline of 24 months from the award of works.
- Transition VC, India’s first energy transition-focused venture capital (VC) fund, has launched its maiden fund with a target corpus of INR 400 crore, which also includes a greenshoe option of INR 200 crore. Transition VC will make seed investments in start-ups across sectors undergoing transition such as e-mobility, green hydrogen, energy storage, net-zero in buildings and climate-tech.
- I Squared Capital, Brookfield and National Investment and Infrastructure Fund (NIIF) are in the discussions for acquiring CleanMax Enviro Energy Solutions. The proposed deal will value CleanMax at $1 billion inclusive of its debt.
- BP Plc, Statkraft and I Squared Capital are in the race to buy Continuum Green Energy (India) Pvt. Ltd at an equity value of around $600 million. The companies have also signed non-disclosure agreements (NDA) for the transaction, which may rank among the largest clean energy transactions in India.
- TPG is planning to sell its stake in Fourth Partner Energy for $300 million. TPG is working with Banks of America and Investec to manage the sale of its 52% stake in Fourth Partner Energy. Other investors, such as Norwegian sovereign fund Norfund, and founders, will continue to hold their stakes in the company. The stake sale is likely to fetch TPG around $300 million, but the overall deal size could be larger including some fresh equity investment by the incoming investor.
- ReNew Energy Global Plc is planning to sell 1 GW of its operational clean energy capacity at an enterprise value of around $1 billion. The assets on offer include solar and wind assets and have an equity value of around $300 million. ReNew Power is planning to sell existing assets and reinvest the proceeds in building new clean energy assets.
- Partners Group AG is planning to invest $300 million in Sunsure Energy for a majority stake.
GTAM Traded Volume
The IEX and PXIL together traded a total of 153 MU in GTAM in November 2022, which is 7% lesser than the volume traded in October 2022. The average trade price in IEX-GTAM for November 2022 was INR 5.31/kWh, while for PXIL it was INR 4.9/kWh. This is about 26% and 15% higher than the previous month’s prices.
GTAM traded volume and average traded price trend
Source: IEX, PXIL, JMK Research
Key Market Updates
RE Manufacturing
Manufacturing zones for solar and wind energy equipment to come up in Madhya Pradesh
In April 2022, MoP had issued expressions of interest (EOI) from the states for setting up a manufacturing zone on a pilot basis for power and renewable energy equipment. Madhya Pradesh Industrial Development Corporation (MPIDC) emerged as the successful bidder to set up manufacturing zones for solar and other renewable energy equipment. The zones will include manufacturing units with an investment of INR 10 billion. The duration of the project is until FY 2025-26.
ReNew Power setting up 2 GW solar cell and module facility in Gujarat
ReNew Power is setting up a 2 GW solar cell and module manufacturing facility in Gujarat which it expects to become operational by September 2023. It is setting up the plant over 100 acres at Dholera Industrial City Development Ltd with an investment of INR 2,000 crore. The capacity of the module plant is 2.4 GW. The cell line initially will have 2 GW capacity expandable to 4 GW in the future.
Indosolar board clears setting up 1 GW solar manufacturing facility
Indosolar Ltd board has approved setting up of 1 GW solar manufacturing facility. Further, it has given the nod for the sale of the assets of the companies which has become obsolete.
New Government Initiatives
Electricity consumers with 100 KW sanctioned load can get renewables supply via green energy portal
The government launched the green energy open access portal, which will allow electricity consumers having sanctioned load of 100 KW or above to get supply of renewables. Green energy open access is allowed to any consumer with load limit reduced from 1,000 kW to 100 kW. Open access has to be granted within 15 days. The application for open access can be made through portal. Order of processing of applications shall be First in First Out manner. Transmission system can be augmented for grant of Long-Term Open Access. Medium Term and Short-Term Open Access shall be approved, on spare capacity.
Solar import duty passthrough to lift tariff by up to 70 paise per unit
Renewable energy ministry’s move to consider basic customs duty (BCD) on import of solar cells and modules as a change-in-law event and allow for its passthrough could raise tariff by 50-70 paise per unit of electricity for eligible projects, according to CRISIL. The increased tariff will remain below the average power purchase cost for discoms in India. However, this announcement brings partial relief for up to 6 GW of solar projects already seeing elevated project costs as they are set to achieve import modules from this fiscal. The imposition of 40% BCD on import of modules and 25% on import of cells effective from April 1, 2022, has increased the project cost by about 25% depressing the already slim returns of developers.
Import duty sops for INR 1.3 lakh crore solar projects will continue
Solar projects involving investments of INR 1.3 lakh crore bid out before March 2021 will be exempted from the revenue department’s order scrapping lower customs duty under the concessional project import scheme for solar sector. The move will bring reprieve for INR 26,000 MW capacity under various stages for implementation for equipment imports worth INR 60,000 crore at 5% duty instead of the 40% basic customs duty (BCD) that came into effect from 1 April 2022. The ministry has also decided to give a 12-month extension to pre-March 2021 projects to ensure capacity addition did not suffer.
Green Hydrogen
Avaada plans to raise debt for their first green hydrogen project
Avaada is targeting to have its first project of green Ammonia plant including the green hydrogen plant operational by 2026 with a capacity of 1 MTPA which would be in the range of INR 40,000 crore to INR 45,000 crore. Avaada is already talking to the banks to raise debt for the same.
GR Promoter Group forms green hydrogen JV with Spain’s H2B2
India’s GR Promoter Group has formed a joint venture with Spain’s H2B2 Electrolysis Technologies (H2B2) to develop green hydrogen solutions. Each of the two partners will hold a 50% share in their new company, GreenH Electrolysis, which will operate in the Indian market. GreenH Electrolysis will manufacture water-based electrolyzers and develop green hydrogen production plants based on off-taker agreements.
Other Market Updates
JSW Energy postpones solar projects beyond 2024
JSW Energy Ltd. has postponed its solar projects beyond 2024. The company sees the delay due to an increase in basic custom duty on the import of solar cells and modules by 25% and 40%, respectively, from April 1, 2022. The company said that solar projects will be taken up after calendar year 2024. In the meantime, over the next 18 months, the company will commission over 2.5 GW of renewable capacity mostly in wind, hydro, and battery storage space.
Mahindra & Mahindra forms a new solar subsidiary
Mahindra & Mahindra has incorporated Emergent Solren as a wholly owned subsidiary of its arm Mahindra Holdings. Emergent Solren will be mainly engaged in the business of production and sale of solar power, generating electricity and also distributed energy including rooftop solar installation for the commercial, industrial, institutional and residential segment, solar water pumps and other related matters.
Tata Power solar and Union Bank to help MSMEs meet solar rooftop need
Tata Power Solar Systems Limited has tied up with The Union Bank of India (UBI) to help MSME (Micro, Small and Medium Enterprises) sector switch to solar solutions. The association will be implemented under UBI’s solar scheme called ‘Union Solar’. MSMEs can avail the dual services of Solar EPC by TPSSL, financed through term loan facility by UBI, wherein industries can avail up to INR 8 crore of loan amount at best possible interest rates with nil or minimum collateral. The scheme also requires a minimum down payment of only 20% of project cost thus making it very attractive for the MSME.
Standstill ends over 55 MW solar rooftop scheme in Rajasthan
MNRE has ended a stalemate involving discoms over 55 MW capacity under its subsidy scheme. The scheme first ran into rough weather in Rajasthan as to which government agency would implement the MNRE scheme. Finally, the discoms floated a tender and started the procedure after a delay. Meanwhile, MNRE floated another scheme where the subsidy is directly credited to customers under direct benefit transfer (DBT). MNRE wrote a letter to the discoms saying that the vendors can opt for any scheme and avail themselves of the benefits. In comparison to the scheme for which the discoms had issued tenders, subsidies are lower under the DBT scheme.
Tangedco sets time frame for sanctioning domestic rooftop solar system in Tamil Nadu
Those who are installing domestic rooftop system in Tamil Nadu, for them Tangedco has now set a time frame for either accepting or rejecting the applications. The entire process of issuing technical feasibility has to be completed within a time frame of 15 days from the date of payment by the applicant. The Union Ministry of New and Renewable Energy has allotted a capacity of 10 MW to Tangedco for the residential category under the central financial assistance scheme for rooftop solar programme phase II.
Module Price Trends
Comparing on m-o-m basis, price for global mono PERC modules have marginally decreased by 0.4% in November 2022.
Solar modules price trends
Source: PVInfoLink, JMK Research
Average prices for domestic modules
JMK Research carried out price survey from domestic suppliers for November 2022 and as per the responses received, the all-inclusive domestic module prices till project site (including freight charges, GST etc) for various categories are:
- The price for mono PERC 440 Wp modules was INR 29/Wp in November 2022, which is 3.3% lesser than the previous month’s price.
- The November price of mono PERC 500 Wp modules was INR 31.5/Wp which is 1.3% less than the price of modules in October.
- The price for Polycrystalline 330 Wp modules was INR 27/Wp, which is about 1.6% less than the previous month’s price.
Source: JMK Research
Note: Domestic module prices are all inclusive prices till project site including freight charges, GST, etc
Policies and Regulations
Central
|
Policy Name |
Issuing Agency |
Date of Issue |
MNRE amends guidelines for tariff based competitive bidding for wind-solar hybrid projects | MNRE |
2nd-Nov-2022 |
MNRE proposed draft amendment in Electricity Rules, 2005 related to captive generating plant | MNRE |
2nd-Nov-2022 |
| CERC determines levelized generic tariff for Small Hydro, Biomass and Biogas Projects for FY 2022-23 | CERC |
7th-Nov-2022 |
| MoP | 7th-Nov-2022 | |
| MoF issues a framework for issuance of sovereign green bonds | MoF | 1st-Nov-2022 |
| Anti-Dumping probe on Solar cell Imports from China, Thailand & Vietnam Terminated by DGTR | DGTR | 9th-Nov-2022 |
State
|
Policy Name |
Issuing Agency |
Date of Issue |
OERC issues draft Deviation Settlement Mechanism and related matters Regulations 2022 | OERC |
1st-Nov-2022 |
Adani Electricity Mumbai |
1st-Nov-2022 | |
TSERC approves procurement of 2.5 GW of solar power by Telangana DISCOMs | TSERC |
26th-Oct-2022 |
KSERC approves the short-term procurement of 10 MW solar power at tariff of INR 2.37/kWh | KSERC |
10th-Nov-2022 |
MERC approves tariff of INR 3.10/kWh for 132.75 MW of solar power under Component A of KUSUM scheme | MERC |
26th-Nov-2022 |
| Uttar Pradesh government plans to generate 22,000 MW solar power in 5 years | UPNEDA |
1st-Nov-2022 |
Uttar Pradesh Government issues draft policy for promote the Green hydrogen Policy | UP Government |
1st-Nov-2022 |
|
KERC |
15th-Nov-2022 | |
|
Uttarakhand Government releases Draft Solar Power Policy 2022 |
Uttarakhand Government |
1st-Nov-2022 |
|
HPERC |
23-Nov-2022 |