Monthly RE update – October 2022

Monthly RE update – October 2022

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Tenders

In October 2022, 13 new renewable energy (RE) tenders with a cumulative capacity of 1895 MW were issued.

  • MSEDCL issued a wind-solar hybrid tender of 500 MW in Maharashtra.
  • GUVNL floated a tender of 500 MW solar power projects under Phase XVIII to be set up anywhere in India with greenshoe option of additional up to 500 MW.
  • In addition, GUVNL issued a tender of 300 MW wind power projects under Phase IV with greenshoe option of additional up to 300 MW.

Details of new RE tenders issued in October 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

MSEDCL, 500 MW, Wind-Solar Hybrid (Phase II), Maharashtra, Oct 2022

Wind Solar Hybrid

Project Development

500

EMD- INR 0.5 million/MW per project

PBG- INR 1 million/MW

30%

24 months

10th-Nov-2022

GUVNL, 500 MW, Solar Phase (XVIII), Pan India, Oct 2022

Utility Scale Solar

Project Development

500

EMD – INR 0.4 million/MW

PBG – INR 0.8 million/MW

17%

18 months

28th-Nov-2022

NLC, 300 MW, Solar (EPC), Rajasthan, Oct 2022

Utility Scale Solar

EPC

300

EMD- INR 328.6 million

PBG – 4% of the contract value

28%

15 months

11th-Nov-2022

GUVNL, 300 MW, Wind (Phase IV), Gujarat, Oct 2022

Wind

Project Development

300

EMD- INR 1 million/MW

PBG- INR 2 million/MW

22%

24 months

30th-Nov-2022

SJVN, 100 MW, Solar (EPC), Punjab, Oct 2022

Utility Scale Solar

EPC

100

EMD – INR 26 million

15 months

14th-Nov-2022

SJVN, 70 MW, Solar (EPC), Himachal Pradesh, Oct 2022

Utility Scale Solar

EPC

70

EMD – 20 MW – INR 12.9 million, 30 MW – INR 18.8 million, 40 MW – INR 25.8 million, 50 MW – INR 31.7 million

1st-Nov-2022

RRECL, 50 MW, Rooftop Solar, Rajasthan, Oct 2022

Rooftop Solar

RESCO

50

EMD – INR 2.6 million for 3 MWp (at INR 0.87 million/MWp of quoted capacity)

PBG – INR 1.3 million/MW

15%

12 months

28th-Nov-2022

NVVN, 21 MW, Solar (EPC), Madhya Pradesh, Oct 2022

Utility Scale Solar

EPC

21

EMD – INR 20 million

PBG – 3% of the contract price

23%

12 months

15th-Nov-2022

MPUVNL, 15 MW, Rooftop Solar, Madhya Pradesh, Oct 2022

Rooftop Solar

RESCO

15

EMD – Group A – INR 1 millionGroup B – INR 0.5 million  

PBG – INR 100/kW for the total capacity of the project group

15%

12 months

12th-Nov-2022

SJVN, 15 MW, Floating Solar (EPC), Himachal Pradesh, Haryana, Nov 2022

Floating Solar

EPC

15

EMD- INR 11 million

21%

18 months

22nd-Nov-2022

UPPCL, 10 MW with 40 MWh BESS, Uttar Pradesh, Oct 2022

Hybrid

Project Development

10 MW with 40 MWh BESS

EMD- INR 0.74 million/MW

PBG – INR 1.11 million/MW

18 months

24th-Dec-2022

OREDA, 9.71 MW, Rooftop Solar, Odisha, Oct 2022

Rooftop Solar

RESCO

9.71

PBG- INR 0.5 million/ MW

15%

9 months

21st-Nov-2022

PEDA, 4.5 MW, Rooftop Solar, Punjab, Oct 2022

Rooftop Solar

RESCO

4.5

EMD – INR 0.9 million/MW

PBG – INR 1 million/MW

15%

6 months

31st-Oct-2022

PBG: Performance Bank Guarantee

EMD: Earnest Money Deposit

Source: JMK Research

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

18th-Nov-2022

REMCL, 1548 MW, Solar, Pan India, Jul 2022

Utility Scale Solar

Project Development

1548

EMD – INR 1 million/MW

PBG – INR 1.6 million/MW

19%

18 months

29th-Nov-2022

REMCL, 1000 MW, RE with or without Storage, Pan India, Jul 2022

RE with or without Storage

Project Development

1000

EMD – INR 0.98 million/MW

PBG – INR 2 million/MW

24 months

9th-Nov-2022

PSPCL, 1000 MW, Solar, Pan India, Apr 2022

Utility Scale Solar

Project Development

1000

EMD – INR 0.4 million/MWPBG – INR 1 million/MW Ceiling Tarff – INR 2.30/kWh

19%

18 months

11th-Nov-2022

GUVNL, 700 MW, Solar Phase IX, Gujarat, Mar 2021

Utility Scale Solar

Project Development

700

EMD – INR 0.4 million/MW

PBG – INR 0.94 million/MW

17%

15 months

30th-Nov-2022

GUVNL, 500 MW, RE with 250 MWh ESS Phase (XV), Gujarat, Jun 2022

RE with ESS

Project Development

500 with 250 MWh ESS

EMD – INR 1 million/MW

PBG – INR 2.5 million/MW

Wind – 22% Solar – 17% Hybrid – 30%

18 months

5th-Dec-2022

Source: JMK Research

Installed Capacity

From January 2022 to September 2022, India added a cumulative RE capacity of 13,202 MW in the country. In the month of September 2022, 1,972 MW of solar and wind capacity was added.

RE installations in September 2022

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 September 2022

In September 2022, Rajasthan added the maximum solar capacity of 457 MW in India followed by Maharashtra (456 MW) and Tamil Nadu (381 MW). While Madhya Pradesh installed the highest wind capacity of 324 MW in the country in September 2022 followed by Gujarat with 87 MW.

State wise solar and wind installed capacity in September 2022

Source: MNRE, JMK Research
Note: Solar includes utility scale solar, rooftop solar and off grid/distributed solar segments

Recently Commissioned RE projects

Developer

Technology

Tender Name

Capacity

Tariff (INR/kWh)

State

Adani

Wind Solar

Hybrid

SECI, 1200 MW, Wind Solar Hybrid, ISTS-Tranche I, December 2018

450 MW

2.67

Rajasthan

Cleantech Solar

Solar (Open access)

74 MWp

Tamil Nadu

Trident

Solar

8.87 MWp

Madhya Pradesh

Friends Salt Works

Solar

4 MW

Gujarat

Source: Industry news articles, JMK Research

Other key announcements that were made during the month were:

  • SJVN announced that the company has started commissioning of its 75 MW solar power project in Parasan Solar Park which is located at Tehsil Kalpi, District Jalaun near Kanpur, Uttar Pradesh. The process of commissioning will be completed by October 2022. SJVN bagged 75 MW Parasan Solar Power Project at a tariff of INR 2.68/kWh on Build Own and Operate basis by Uttar Pradesh New & Renewable Development Agency (UPNEDA).
  • Jindal Steel and Power (JSP) has signed an agreement with Greenko for the supply of 1,000 MW green power for its steel making operations. Greenko Group will offer energy storage capacity from its Off Stream Closed Loop Pumped Storage Project (OCPSP) which is under development state in Madhya Pradesh and Rajasthan.
  • Tata Motors Limited and Tata Power have entered into a Power Purchase Agreement (PPA) for a 7 MW captive solar power project at its Pantnagar plant in Uttarakhand. To date, Tata Power has cumulatively installed 45 MW of solar rooftop across Tata Motors’ PV and CV plants in Pune, Pantnagar, Jamshedpur and Dharwar.
  • Hartek Solar to build 2 MW floating solar plant in Chandigarh. The rooftop solar division of Hartek group has bagged an order for a 2000 KW floating solar plant from Chandigarh Renewal Energy and Science & Technology Promotion Society (CREST). The 2 MW floating solar plant is claimed to be the largest floating solar power plant to set up in North India.
  • Sterling and Wilson Renewable Energy (SWRE) has secured the contract to install, commission, and provide three-year operation and maintenance support for a 1,255 MW AC (1,568 MW DC) solar PV project in Gujarat. It is the largest domestic EPC order till date by securing an INR 2,212 crore ($268.75 million) solar contract from NTPC Renewable Energy.
  • Suzlon Group has bagged an order for the development of 144.9 MW of wind power projects for Aditya Birla Group. The project is located in Gujarat and Madhya Pradesh and is expected to be commissioned in 2023. Green power from the project will go for captive use for manufacturing facilities and other needs.
  • Suzlon has also bagged an order to supply 23 wind turbines totalling 48.3 MW from Adani Green Energy. The project is located in Mandvi, Kutch Gujarat and is expected to be commissioned in 2023. Suzlon wind turbines typically have 70-80% domestic content and are manufactured in India.
  • Pennar Industries Limited has won an order from NTPC Renewable Energy Limited (NTPC REL) for its proposed 500 MW Solar PV project at Bhadla, Rajasthan. The scope of the project include design, engineering, supply construction, erection, testing and commissioning along with 3-year O&M contract. The completion time of the project is 12.5 months.

Monthly RE Generation

In October 2022, renewable energy sources generated 12,198 MU, which is 22% lesser than the previous month’s RE generation data mainly because of the end of peak wind season.

Source-wise Renewable Energy Generation (MU) – India

Source: CEA, JMK Research

Investments/ Deals

In October 2022, more than $169 million was invested in the RE sector. The Key investments during the month were:

  • Waaree Energies has raised around $122.4 million from various private investors. The company will use the proceeds to expand its solar module manufacturing capacity in India to 9 GW per year. It currently has 5 GW of operational PV module capacity and expects to commission the remaining 4 GW by January 2023. It also plans backward integration into the manufacturing of solar cells, with a capacity of 5.4 GW.
  • Hygenco has received a $25 million investment from Neev Fund and aims to deploy over $300 million in green hydrogen projects across India in the next three years.

Company Name

Deal Type

Sector

Investor

Deal Value

Waaree Energies

Equity

Solar Manufacturing

$122.4 million

Hygenco

Equity

Green Hydrogen

Neev Fund

$25 million

Orb Energy

Debt

Solar

Development Finance Corporation (DFC)

$20 million

Refex Energy

Equity

Solar

Sunedison

$1.75 million

Source: Industry news articles, JMK Research

Other key announcements that were made during the month were:

  • Inox Green Energy Services Ltd (IGESL) has sold the entire equity shareholding in Wind One Renergy Ltd, Wind Three Renergy Ltd and Wind Five Renergy Ltd to Adani Green Energy Ltd. These special purpose vehicles (SPVs) have commissioned 50 MW each, out of the total 250 MW which it had successfully won under the Tranche 1 of SECI’s bids for wind power projects at Dayapar, Gujarat. Inox Wind had won 250 MW in SECI Tranche 1 auction at a fixed tariff of INR 3.46/kWh for 25 years for sale to PTC India.
  • Suzlon Energy Limited announced, the successful closure of the issue of 240 crore partly paid-up Equity Shares aggregating up to INR 1,200 crore on a rights basis to the eligible equity shareholders (the “Rights Issue”) which was launched on October 11, 2022. The issue resulted into subscription of 435.46 crore shares resulting into oversubscription by 1.8x times.
  • Jakson Green has inked a pact with the government of Rajasthan to invest INR 22,400 crore to set up a green hydrogen and green ammonia project in phases in Rajasthan. Jakson Green will set up a 3,65,000 tons per annum green hydrogen & green ammonia plant along with an integrated hybrid renewable power complex in a phase wise manner.
  • SJVN Green Energy and Assam’s power distribution company APDCL have inked a pact to form a joint venture to set up 1,000 MW floating solar projects worth INR 6,000 crore in Assam. SJVN will hold a 51% stake in the JV with APDCL owning the remaining 49%.
  • CleanMax Enviro Energy Solutions is in discussions with traders and pension funds to raise around $200-250 million. The existing investor Augment Infrastructure, which has a majority stake in CleanMax, may be willing to sell some part of its stake in this current round, which could take up the deal size to $300 million.
  • Adani group will invest over $150 billion across businesses ranging from green energy to data centres to airports and healthcare to join the global club of companies with $1 trillion valuations. The group plans to invest $50-70 billion in green hydrogen business and another $23 billion in green energy over the next 5-10 years.
  • Adani also announced INR 65,000 crore investment in Rajasthan over the next 5 to 7 years in setting up a 10,000 MW solar power capacity. The company is looking to build solar capacities to produce green hydrogen.
  • India is planning to issue INR 160 billion ($2 billion) of sovereign green bonds in the fiscal year ending March, as it seeks cheaper funding to meet renewable energy targets. The government will provide details of the planned green debt issuance for the year later.
  • ReNew Power is planning to invest INR 30,000 crore over the next two years to scale up its solar and wind energy capacities. The company currently has an aggregate capacity of 13.2 GW, including capacity already won in competitive bids.
  • Greenko Group is planning to raise up to $4.5 billion in a mix of equity and debt from local banks. The group will invest the amount in various projects over the next three years. Greenko Group had 7.5 GW of installed capacity across solar, wind and hydropower generation assets in 15 states in India.

GTAM Traded Volume

The IEX and PXIL together traded a total of 143 MU in GTAM in October 2022, which is 5.71% lower than the volume traded in September 2022. The average trade price in IEX-GTAM for October 2022 was INR 4.26/kWh, while for PXIL it was INR 4.21/kWh. This is about 26.4% and 15.8% lower than the previous month’s prices.

GTAM traded volume and average traded price trend

Source: IEX, PXIL, JMK Research

Key Market Updates

PV Manufacturing

Mondragon Assembly will develop an automated PV manufacturing line for the Indian customer BVG India Ltd

Mondragon Assembly has received a multi-GW order from BVG India Ltd. This new project, developed by Mondragon Assembly team, consists of a 500 MW automated and highly advanced technology State of Art Solar PV Module Manufacturing Line. The line that will be operational by the second quarter of 2023, is designed to produce more than 2,000 modules each day. It will be one of the largest automated lines in North India.

Solar PLI of INR 19500 crore under tranche II puts focus on product efficiency levels

The selection criteria under the INR 19,500 crore second tranche of production linked incentives (PLI) for solar manufacturing puts a premium on efficiency levels of the modules unlike in first tranche. The selection criteria under the first tranche had separate marks for capacity and integration levels, where value-addition and capacity were being used as a secondary criteria to address situation of ties among competing firms.

Green Hydrogen

Green hydrogen and electrolyzer projects may get INR 12,000 crore sops

The government is expected to allocate around INR 6,000 crore each for production-linked incentive (PLI) schemes for electrolyzers and green hydrogen from the INR 20,000 crore green hydrogen mission. The initiative includes major enabling provisions for developing the green hydrogen industry and adoption in India.

New Scheme Proposed

Rajasthan government leases barren land to power solar energy plants

The Rajasthan government has launched the Saur Krishi Aajeevika Yojana (SKAY) scheme to help farmers to set up solar energy plants on their unusable or barren land. An online portal has been set up and, its farmers/landowners can register their land to give on lease. The land developer with SKAY can easily get a central subsidy under the PM Kusum Yojana (30% of the cost).

MSKVY

30% agricultural feeders to be solarized in Maharashtra, provide day-time power supply to farmers

The wait of farmers in Maharashtra for assured day-time power supply to help irrigate their farms, instead of the present supply at night, is likely to end soon. Under the Mukhyamantri Saur Krishi Vahini Yojana (MSKVY), the Maharashtra State Electricity Distribution Company Limited (MSEDCL) has targeted solarization of 30% of the 8,498 agricultural feeders across the state on priority before March to offer day-time supply. MSEDCL stated that only around 185 agricultural feeders in the state were offering continuous daytime power supply to agricultural pumps. The project needs a total 47,036 acres of land for solarizing all feeders in Maharashtra, the farming community has also been asked to lease their land in lieu of which they will get a fixed rental income.

Other Market Updates

Discoms’ aggregate loss rises 66% to INR 50,281 crore in 2020-21

Aggregate losses of power distribution utilities or DISCOMs increased by 66% to INR 50,281 crore in 2020-21 from INR 30,203 crore in 2019-20. The overall AT&C (aggregate technical & commercial) losses of DISCOMs deteriorated from 20.73% in 2019-20 to 22.32% in 2020-21.

No takers for green power worth 5 GW

About 5 GW of electricity from renewable energy projects remains unsold because government-run nodal agency has been unable to find distribution companies willing to buy the power from these projects. SECI signs PPAs with winning power developers in auctions, and subsequently signs power sale agreements (PSAs) with discoms for the sale of this power.

Government weighs cancelling reverse auction for renewable power offers

The Central government is planning to end the reverse auction method of project bidding for wind and solar energy projects. The wind energy industry has requested the government to return to closed bidding since reverse auctions hurt businesses because of the low prices revealed through the process.

India may start leasing out sea floor for offshore wind projects

In a bid to achieve India’s net zero emissions by 2070, the central government is leasing out the ocean floor around Tamil Nadu to offshore wind farms. The base rate has been fixed at INR 1,00,000 per square km. The plan involves inviting bids for two wind power projects in Tamil Nadu and Gujarat, with a capacity of 2 GW each.

India to have over 65% power generation capacity from non-fossil fuels by 2030

India is aiming for 65% of power generation capacity from non-fossil fuels by 2030. India will have 90 GW of solar equipment manufacturing capacity by 2030, up from 20 GW at present. The government also informed that around 15-20 GW of solar equipment manufacturing capacity is under construction and India will have 40 GW of such facilities under Production-Linked Incentive Scheme-II. The country has already installed 170 GW of renewable energy (including large hydro), while another 80 GW is under construction.

Comparing on m-o-m basis, price for global mono PERC modules have decreased by 3.84% in October 2022.

Solar modules price trends

Source: PVInfoLink, JMK Research

Average prices for domestic modules

JMK Research carried out a price survey from domestic suppliers for October 2022 and as per the responses received, the all-inclusive domestic module prices till the project site (including freight charges, GST etc) for various categories are: 

  • The price for mono PERC 440 Wp modules continues to remain same in October 2022.
  • The October price of mono PERC 500 Wp modules was INR 31.92/Wp which is 0.4% less than the price of modules in September.
  • The price for Polycrystalline 330 Wp modules was INR 27.44/Wp, which is about 2% 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 issues amendment in provisions for tender for empanelment of vendors under Component-B of the PM-KUSUM Scheme

MNRE

27th-Oct-2022

The Central Board of Indirect Taxes and Customs issues Project Imports (Amendment) Regulations, 2022

MoF

19th-Oct-2022

MNRE Issues Draft Repowering Policy for Wind Power Projects

MNRE

17th-Oct-2022

CERC – General Network Access Regulations will come into effect from 15th October 2022

CERC

9th-Oct-2022

MNRE clarifies ALMM order exceptions for open access and net-metering projects

MNRE

7th-Oct-2022

MNRE issues the guidelines for implementation of the PLI Scheme (Tranche II) under National Programme on High Efficiency Solar PV Modules

MNRE

6th-Oct-2022

MNRE extended the timeline for the rooftop solar programme Phase-II till 31st March 2026

MNRE

6th-Oct-2022

MNRE provides clarification on applicability of CFA available under Rooftop Solar Programme Phase-II for solar systems installed under Virtual Net Metering arrangement

MNRE

3rd-Oct-2022

CERC issues a discussion paper to evaluate pricing methodology in Power Exchanges Market

CERC

1st-Oct-2022

MNRE updated the ALMM list with an enlisted capacity 20,156 MW in September 2022

MNRE

27th-Sep-2022

MNRE notifies imposition of Basic Customs Duty on import of solar PV cells and modules and hike in rates of GST, under ‘Change-in-Law’

MNRE

27th-Sep-2022

MoP issues modification on Renewable Purchase Obligation (RPO) and Energy Storage Obligation Trajectory till 2029-30

MOP

19th-Sep-2022

State

Policy Name

Issuing Agency

Date of Issue

HERC determine the additional surcharge of INR 0.78/kWh for the Open Access consumers in the state

HERC

20th-Oct-2022

UERC determines Additional Surcharge as INR 1.14/kWh for open access consumers for the period from 1st October 2022 to 31st March 2023

UERC

19th-Oct-2022

RERC rejected the Captive Solar generators request to reconsider banking regulations

RERC

10th-Oct-2022

KSERC reduced tariff to INR 4.70/kWh from INR 5.34/kWh for a 8.4 MW wind power project

KSERC

10th-Oct-2022

HERC issues a discussion paper on (Terms and Conditions for determination of Tariff from Renewable Energy Sources, Renewable Purchase Obligation and Renewable Energy Certificate) Regulation, 2021 (2nd Amendment) Regulations, 2022

HERC

1st-Oct-2022

PSERC issues draft Renewable Purchase Obligation and its compliance Regulations, 2022

PSERC

1st-Oct-2022

UPERC issues draft Verification of Generating Plants and Captive Consumers Regulations 2022

UPERC

1st-Oct-2022

PSERC decides to continue additional surcharge for the open access consumers availing power from the sources for the period 01.10.2022 to 31.03.2023

PSERC

30th-Sep-2022

Andhra Pradesh sets new Renewable Power Purchase Obligation (RPPO) targets until 2026-27

APERC

29th-Sep-2022

TSERC determined INR 1.38/kWh additional surcharge for open access transactions for H2 of FY 2022-23

TSERC

27th-Sep-2022

GERC released the order on additional surcharge payable by Open access consumers for the period of 01st October 2022 to 31st March,2023

GERC

22nd-Sep-2022

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