Monthly RE update – October 2021
Tenders
- In October 2021, 12 new renewable energy (RE) tenders with a total capacity of 4579 MW were issued. MSEDCL has floated 1250 MW solar tender (Under Mukhyamantri Saur Krishi Vahini Yojna) and 444 MW solar tender (Under KUSUM) scheme in Maharashtra. In addition, Punjab Electricity Development Agency (PEDA) has also issued 220 MW of solar tender under component A of KUSUM scheme in Punjab.
- SECI has issued two tenders including a 1200 MW of wind solar hybrid Tranche V tender and another 1200 MW wind Tranche XII tender across Pan India this month.
Details of new tenders issued in October 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 |
Utility Scale Solar |
Project Development | 1250 | EMD – INR 0.1 million/MW PBG – INR 0.5 million/MWCeiling Tariff – INR 3.10/kWh |
19% |
12 months |
25th-Nov-2021 | |
SECI, 1200 MW, Wind Solar Hybrid (Tranche V), Pan India, Oct 2021 | Hybrid
| Project Development |
1200 | PBG – INR 1.146 million |
30% |
18 months |
6th-Dec-2021 |
| Wind | Project Development | 1200 | PBG – INR 1.326 million |
22% |
18 months |
2nd-Dec-2021 | |
|
Small Scale Solar |
Project Development |
444 | EMD – INR 0.1 million/MW PBG – INR 0.5 million/MW |
15% |
12 months |
23rd-Nov-2021 | |
|
Small Scale Solar |
Project Development |
220 | EMD – 1 MW –INR 0.1 million 1.5 MW – INR 0.15 million2 MW – INR 2 million PBG – INR 0.5 million/MW |
15% |
12 months |
9th-Nov-2021 | |
Distributed Solar |
EPC |
147 | PBG – 10% of the total project cost |
– |
– |
18th-Oct-2021 | |
| Utility Scale Solar |
EPC |
60 | EMD – INR 24 million PBG – 10% of contract value |
– |
12 months |
30th-Nov-2021 | |
| Utility Scale Solar | EPC | 25 | EMD – INR 8.5 million | – | – | 10th-Nov-2021 | |
| Utility Scale Solar | EPC | 20 | EMD – INR 21.25 million PBG – 3% of the project cost +GST | – | 12 months | 22-Nov-2021 | |
|
Surat Municipal Corporation (SMC), 10 MW, Solar (EPC), Gujarat, Oct 2021 | Utility Scale Solar |
EPC |
10 | EMD – INR 6.45 million PBG – 2.5% of the order value |
23% |
– |
20th-Nov-2021 |
|
Rooftop Solar |
RESCO |
2 |
– |
– |
12 months |
12-Nov-2021 | |
|
Small Scale Solar |
EPC |
1.1 |
– |
– |
– |
24th-Nov-2021 |
PBG: Performance Bank Guarantee
EMD: Earnest Money Deposit
Source: JMK Research
- SECI has invited an Expression of Interest (EOI) from bidders for setting up of 500 MW/1000 MWh Standalone Battery Energy Storage Systems (BESS) in India under Global Competitive Bidding (ESS-I). It is expected that the final RFS document will be released in the first week of November 2021. SECI has also issued EOI for extending a Term Loan of INR 400 Crore for 100 MW (AC) solar PV project (160MW DC capacity) in Chhattisgarh and 100 MW (AC) floating solar project in Jharkhand for a tenure period of up to 15 years.
- NTPC Renewable Energy Limited (NTPC REL) has also issued an EOI for exploring strategic sourcing tie-ups of solar PV modules for approximately 15 GW up to a cumulative period of minimum 5 years. This Expression of Interest is open for any India Company/their Consortium/affiliates/ Representatives who has already established their manufacturing base in India or is planning to set up their facilities in the next six months under the PLI Scheme. The last date for EOI submission is 8th November 2021.
- Singareni Collieries (SCCL) has issued a consultancy tender for a 250 MW (DC) floating solar project at Lower Manair Dam, Karimnagar, Telangana. Interested bidders need to submit a bank guarantee at 3% of the contract value, including GST. The duration of the consultancy contract is 24 months. The last date for bid submission is 8th November 2021. In addition, MSEDCL has invited a revised tender for empanelment of vendors for Grid- Connected Rooftop Solar Plant of various capacities for residential consumers aggregating to 50 MW in Maharashtra under the Phase-II of MNRE’s Rooftop Solar program. The tender capacity has been revised to 50 MW from 200 MW. The last date for bid submission is 15th November 2021.
- Under the performance-linked incentive (PLI) program, Bharat Heavy Electricals (BHEL) has invited EOI for selection of Partners for setting up GWh Scale Advanced Chemistry Cell Manufacturing facility through SPV route under GoI’s PLI Scheme. The last date for bid submission is 2nd November 2021. BHEL is planning to bid for a minimum capacity of 5 GWh. A maximum of three parties may be involved in the proposed SPV company (including BHEL).
- Bharat Heavy Electricals Limited (BHEL) has also invited bids to enter into a memorandum of understanding (MoU) with vendors for the procurement of silicon wafers for solar cell manufacturing in order to meet the company’s annual module manufacturing capacity of 200 MW. Interested bidders need to submit a bank guarantee at 10% of the contract value. The last date for bid submission is 8th November 2021.
- The Ministry of Heavy Industries (MHI) has also invited bids to select manufacturers for setting up production capacities for at least 5 GWh of Advanced Chemistry Cells (ACC) for energy storage. The successful bidder should provide a bid security amount of INR 10 billion in the form of a bank guarantee. The last date for bid submission is 31st December 2021.
- Besides this, under SURYA-Gujarat programme, the Gujarat Urja Vikas Nigam Limited (GUVNL) has decided to allow registration of residential rooftop solar applications with a capacity of up to 750 MW from the previous capacity of 600 MW from empanelled vendors for the FY2020-21.
Date extension
|
Tender Name |
Technology |
Tender Scope |
Capacity (MW) |
Other Details |
Minimum CUF |
Commissioning timeline from PPA signing |
Bid Submission Date |
|
Utility Scale Solar |
Project Development |
1200 | EMD – INR 0.4 million/MW PBG – INR 0.8 million/MW |
17% |
18 months |
12th-Nov-2021 | |
| Utility Scale Solar |
EPC |
100 |
PBG – 3% of the contract value |
– |
18 months |
22nd-Nov-2021 | |
|
Floating Solar |
EPC |
100 |
PBG – 3% of the contract value |
– |
12 months |
2nd-Nov-2021 | |
| Solar and Agro PV
|
EPC |
50 |
PBG – 3% of the contract value |
24.1% |
12 months |
8th-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 |
8th-Nov-2021 |
Source: Industry news articles, JMK Research
Auction Completed
2800 MW of RE tenders were auctioned in October 2021.
Winners in the latest RE auctions
Source: JMK Research
Note: Under the bucket-filling method, JSW Energy would be allocated the remaining capacity of the total tendered
2,500 MW capacity. The allotment of capacities bid by the remaining (L2 to L5) winners is yet to be finalized.
|
Tender Name |
Capacity tendered (MW) |
Capacity allotted (MW) |
Minimum CUF |
Commissioning timeline from PPA signing |
Winners Details |
|
2500 |
2500 |
– |
30 months | •Greenko – 1001 MW (INR 3.18/kWh) •ReNew Power – 600 MW (INR 3.19/kWh) •Power Mech Projects – 550 MW (INR 3.30/kWh) •Hindustan Thermal Projects – 250 MW (INR 3.01/kWh) •JSW Energy – 99 MW (INR 3.45/kWh) | |
|
300 |
300 |
22% |
18 months | •Azure Power – 180 MW (INR 3.43/kWh) •Adani – 120 MW (INR 3.44/kWh) |
Source: JMK Research
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 Name |
Capacity (MW) |
Integration Stage |
PLI Quoted (in INR crores) |
|
Jindal India |
4000 |
Stage 1 to 4 |
1390 |
|
Shirdi Sai |
4000 |
Stage 1 to 4 |
1875 |
|
Reliance New Solar Energy |
4000 |
Stage 1 to 4 |
1917 |
|
Adani |
4000 |
Stage 1 to 4 |
3600 |
Source: IREDA, JMK Research
The Punjab State Power Corporation Limited (PSPCL) had issued two solar tenders for 250 MW each in Punjab and across India, where ReNew Dinkar Jyoti has offered 250 MW solar power at the rate of INR 2.33/kWh under the tender for procurement of 250 MW solar power from projects across India. However, SJVN Limited has offered 100 MW solar power for INR 2.69/kWh and SAEL Limited has offered 50 MW solar power at INR 2.69/kWh for 250 MW solar power from projects located in Punjab.
Installed Capacity
In September 2021, a combined total of 842.53 MW of solar and wind capacity was added, taking the cumulative RE capacity to 101.53 GW.
RE Installations in September 2021
Source: CEA, JMK Research
State wise Solar and Wind Installed capacity in September 2021
Rajasthan added the maximum utility scale solar capacity of 338.75 MW in September 2021 followed by Gujarat (192.16 MW) and Haryana (30.95 MW) whereas Gujarat installed the maximum wind capacity of 65.70 MW followed by Karnataka (63 MW) and Tamil Nadu (50.6 MW).
Source: MNRE, JMK Research
Recently Commissioned RE projects in October 2021
7 new projects with a total renewable energy capacity of 160.7 MW got commissioned by various renewable energy players this month. The list of recently commissioned projects is mentioned below:
|
Developer |
Technology |
Tender Name |
AC Capacity (MW) |
Tariff (Rs/kWh) |
State |
Azure Power |
Solar | SECI, 1200 MW, Solar ISTS Tranche III, Feb 2019
|
100 | 2.58 |
Rajasthan |
|
Sprng Energy |
Wind | SECI, 2000 MW, Wind, ISTS Tranche IV, Pan India, Apr 2018 |
27 |
2.51 |
Tamil Nadu |
| NTPC | Floating Solar | NTPC, 100 MW, Floating Solar, Telangana, Dec 2018 | 17.5 | – | Telangana |
|
Radiance Renewables |
Solar (Open access) |
– |
4.2 |
– |
Maharashtra |
|
Mangalore Refinery and Petrochemicals Limited (MRPL) |
Rooftop Solar |
– |
6 |
– |
Karnataka |
|
Aditya Green Energy |
Solar |
– |
5 |
– |
Maharashtra |
|
Kolkata Port Trust (KoPT) |
Solar (Captive) |
– |
1 |
– |
West Bengal |
Source: Industry news articles, JMK Research
Other announcements during the month were:
- Grasim Industries has signed a supplemental share subscription agreement with ReNew Green Energy Solutions and ReNew Surya Uday. The company will invest INR 145.1 million in ReNew Green Energy Solutions to procure an additional 16.68 MW of power from its wind-solar hybrid open access project in Gujarat. Whereas ReNew Green Energy Solutions will invest INR 413 million to develop this additional 16.68 MW capacity for its wind-solar hybrid open access project.
- MYSUN has secured 140 MW open access solar power projects from the Uttar Pradesh Power Transmission Corp Ltd (UPPTCL) under UPPTCL’s open access scheme.
- In Jharkhand and Odisha, Tata Power and Tata Steel have collaborated to develop 41 MW of solar projects (including rooftop, floating, and ground-mounted). Tata Power will build 21.97 MW of solar capacity in Jharkhand, and 19.22 MW in Odisha, for Tata Steel.
- SWELECT Sun Energy has signed a 15-year Power Purchase Agreement (PPA) with Hatsun Agro Product and SICGILSOL Gas agency to sell power from its 16 MW (10 MW and 6 MW) solar power plants under the Group Captive model in Tamil Nadu. The company has started its commercial solar power generation on 1st October 2021.
- Tata Power Solar has received a Letter of Award from Energy Efficiency Services (EESL) to build 100 MW distributed ground-mounted solar projects in Maharashtra. The project has a total order value of INR 538 crores and is scheduled to be completed within 12 months.
- Adani Renewable Energy Holding Fifteen, Sembcorp renewables and Azure Power has announced that they have received a letter of award (LOA) for setting up 450 MW, 180 MW and 120 MW of wind energy project under SECI’s 1200 MW ISTS-connected Wind (Tranche-XI) tender. The tender was floated in May 2021.
Monthly RE Generation
In October 2021, renewable energy sources (RES) generated 9,779.85 MU, a significant decrease of 22% from September 2021. Solar energy accounts for 62% of RES generation, followed by wind at 29% and other renewable
energy sources (including biomass) at 9% during October 2021.
Source-wise Renewable Energy Generation (MU) – India
Source: CEA, JMK Research
Investments/ Deals
In October 2021, about US$ 4484 million was invested in the RE sector. The Key investments during the month were:
- Adani Green Energy Ltd (AGEL) has successfully completed the acquisition of SB Energy India’s 4954 MW RE assets in an all-cash deal for which definitive agreements were signed in May 2021. With this deal, SB Energy India is now a 100% subsidiary of AGEL.
- Reliance New Energy Solar Ltd (RNESL), a wholly owned subsidiary of Reliance Industries Ltd (RIL), has announced acquisition of 100% shareholding of REC Solar Holdings for $771 million.
- Reliance New Energy Solar Ltd (RNESL) has also agreed to purchase around 40% stake in Sterling & Wilson Solar (SWSL) for about INR 2,845 crore. SWSL has also announced that it had agreed to issue new shares in order to sell a 15.46% stake in the company to RNESL for INR 1,000 crore. In addition, the Reliance group has offered INR 375 per share to acquire 25.9% equity stake of SWSL for over INR 1,840 crore.
- Besides this, RNESL will be the strategic lead investor in NexWafe GmbH’s 39-million-euro Series C financing round, with a 25-million-euro investment in phase one. The company will be using NexWafe’s technology to build giga-scale wafer manufacturing plants in India.
- Vector Green Energy has announced that it has secured a loan of $184 million from the Indian Renewable Energy Development Agency (IREDA) to fund its operating solar projects. Out of which, the loan disbursement of approximately $147.43 million was already done by IREDA for six solar energy operating projects of Vector Green.
|
Company Name |
Deal Type |
Sector |
Asset Acquired |
Investor |
Deal Value |
Stakes Acquired |
Other Details |
|
SB Energy |
Acquisition |
Renewable |
4954 | Adani Green Energy |
$3500 million |
100% | Adani Green Energy has completed the acquisition of SB Energy’s 4954 MW RE assets assets |
|
REC Solar Holdings |
Acquisition |
Solar |
– |
Reliance New Solar Energy |
$771 million |
100% |
REC Solar Holdings is one of the world’s leading solar cells and modules and polysilicon company |
|
Vector Green |
Debt |
Solar |
– |
IREDA |
$184 million |
– | Out of the total sanctioned loan of $184 million, IREDA has already disbursed $147.43 million to Vector Green. The debt has been rated in the AA category. |
|
Cleantech Solar |
Debt |
Solar |
– | NIIF Infrastructure |
$26.72 million |
– | The company will use the funds for its open access solar projects in India |
|
Oorja |
Equity |
Off-Grid Solar |
– |
Schneider Electric Energy Access Asia (SEEAA) and Water & Energy for Food Grand Challenge (WE4F) |
$1 million |
– |
Seed funding was provided by SEEAA whereas grant funding was given by WE4F |
|
AMP Energy Green Fifteen Private Limited |
Equity |
Solar |
– |
Jubilant Ingrevia |
$0.69 million |
26.6% |
With this deal Jubilant Ingrevia will install a 15.5 MW solar power plant under Captive scheme in Maharashtra |
| Sunsole Renewables (SPV of Cleantech Solar) |
Equity |
Solar |
– |
Siemens |
$0.21 million |
26% | The acquisition of equity stake is proposed to be completed by September 2022 in one or more tranches |
|
Cleanwin |
Equity |
Wind |
– |
CEAT Ltd |
– |
26% |
– |
|
Jakson Group |
Acquisition |
Solar |
34 MW |
Technique Solaire |
– |
– |
With this acquisition, Technique Solaire now has 68 MW of operational solar power plants in India |
Source: Industry news articles, JMK Research
Other key announcements that were made during the month were:
- Minda Industries has announced that their investment committee has approved the purchase of 3,07,850 equity shares of Strongsun Renewables for INR 24.6 million. The company now owns 28.10% of the SPV’s total paid-up share capital and it is expected that the deal is will be completed by 6th November 2021.
- In addition, Grasim Industries has purchased a 26% equity stake in ABReL Solar Power (ABRSPL), a subsidiary company of Aditya Birla Renewables Limited for INR 1.3 lakh under captive project guidelines.
- NTPC is also planning to acquire around 5% to 10% stakes in Power Exchange India Ltd (PXIL). Given the electricity shortage and increased volume on power exchanges, NTPC’s entry into the market is expected to bring more competition as volume increases due to renewables and as well as policy changes in the long-term power purchase agreement.
- Oakridge Energy has secured an undisclosed amount for its urban solar projects in New Delhi, India, through a German crowdfunding platform. This is the first time an Indian rooftop solar company has tapped into the large European crowd financing market.
- Actis is planning to invest $850 million in India’s RE projects over the next five years.
- NTPC is also planning to raise $2 billion through initial public offerings (IPOs) in three units including its renewable energy business. NTPC also intends to sell its shares in NTPC Renewable Energy Ltd. within the next year. In addition, the company is also looking to sell its stake in NTPC-SAIL Power Company Limited (NSPCL).
- Adani Group also intends to invest around $50 billion to $70 billion across its green energy value chain by 2030.
- Larsen & Toubro (L&T) is planning to invest up to INR 5,000 crore in green energy implementation and adoption at its manufacturing and construction sites by 2035-2040. The company is working on a sustainability roadmap for FY22 to FY26 that is in line with its ‘Lakshya 2026’ goals. In addition, the company has set a goal to increase the use of renewable energy in its operations by 50% by FY26 and 100% by 2035.
- Global Infrastructure Partners (GIP) is planning to sell its Indian clean energy platform, Vector Green Energy, in a deal worth up to INR 5,000 crore. GIP is also in discussions with a number of investment banks, including Rothschild, Standard Chartered, and JP Morgan, and will sign a contract soon.
- Furthermore, Power Global is planning to invest around $25 million to set up a lithium-ion battery manufacturing unit and battery swapping infrastructure in India over the next two to three years. The company is setting up a battery factory in Greater Noida with a capacity of 1 GWh. It is expected that the mass manufacturing will start from CY Q3 2022.
- Royal Dutch Shell Plc is in discussions with Convergence Energy Services Ltd (CESL) to invest $500 million in the company’s decentralized solar energy business. Under the decentralised solar programme, CESL has set a target of 9.4 GW portfolio over the next five years.
- Also, Tata Power is in discussions with Canada Pension Plan Invest Board (CPPIB) and Government of Singapore Investment Corp. (GIC), to raise at least $500 million through initial public offering (IPO) for its renewable energy unit. In addition, the company is planning to increase its green energy capacity to 80% by FY 2030.
- Emmvee and the Government of Karnataka have signed a Memorandum of Understanding (MoU) to set up a 3 GW solar cell and module manufacturing plant in Karnataka with an investment of INR 825 crore.
- The Green Growth Equity Fund (GGEF), India’s climate change fund, has received a $70 million investment from the CDC Group. The fund is managed by Eversource Capital.
Module Price Trends
Comparing on m-o-m basis, price for global mono PERC modules and mono PERC India modules have increased by 10% and 6% respectively in October 2021.
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 6.13 billion to developers for the purchase of solar and wind power in September 2021. Compared to August 2021, the payment disbursal has decreased by ~6% in September 2021.
Monthly payments by SECI to solar and wind developers
Source: SECI, JMK Research
Policies and Regulations
Central
|
Policy Name |
Issuing Agency |
Date of Issue |
|
MoP |
1st-Oct-2021 | |
|
Supreme Court has Resolved Jurisdictional Issue Related to Power Market Between CERC and SEBI |
Supreme Court |
7th-Oct-2021 |
|
MoP |
8th-Oct-2021 | |
|
MoP |
8th-Oct-2021 | |
|
Power Ministry Mandates Energy Accounting of DISCOMs to Reduce Electricity Losses |
MoP |
11th-Oct-2021 |
|
MoP |
22nd-Oct-2021 | |
|
Central Government Announces Electricity (Timely Recovery of Costs due to Change in Law) Rules, 2021 |
MoP |
22nd-Oct-2021 |
|
CERC |
17th-Oct-2021 | |
|
Amendment in Benchmark Costs For Off-Grid and Decentralized Solar PV Systems For The Year 2021-22 |
MNRE |
26th-Oct-2021 |
|
Amendment in Benchmark Costs For GRID Connected Rooftop Solar PV System For The Year 2021-22 |
MNRE |
27th-Oct-2021 |
|
|
MoP |
28th-Oct-2021 |
State