Monthly RE update – September 2021

Monthly RE update – September 2021

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Tenders

  • In September 2021, 13 new renewable energy (RE) tenders with a total capacity of 1669.13 MW were issued. NHPC has issued Solar (EPC) tender of 1000 MW in Pan India. NTPC has also issued wind tender for 300 MW under EPC category across India. 
  • UPNEDA has issued project development solar tender of 200 MW in Uttar Pradesh.

Details of new tenders issued in September 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

NHPC, 1000 MW, Solar (EPC), Pan India, Sep 2021

Utility Scale Solar EPC 1000 15 months 9th-Nov-2021

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

Wind

EPC

300

19th-Oct-2021

UPNEDA, 200 MW, Solar, Uttar Pradesh, Sep 2021

Utility Scale Solar

Project Development

200

PBG – INR 1.05 million/MW

Ceiling Tariff – INR 3/kWh

17%

15 months

4th-Oct-2021

NHPC, 45 MW, Solar (EPC), Uttar Pradesh, Sep 2021

Utility Scale Solar

EPC

45

PBG – 3% of the contract value

12 months

22nd-Oct-2021

Coal Lignite Urja Vikas, 40 MW, Solar (EPC), Chattisgarh, Sep 2021

Utility Scale Solar

EPC

40

9 months

15th-Oct-2021

GSECL, 35 MW with
57 MWh BESS, Solar(EPC), Gujarat, Sep 2021

Solar + BESS

EPC

35

EMD – INR 25 million

PBG – 10% of the EPC contract price

22%

18 months

12th-Oct-2021

Shivamogga Smart City Limited, 25 MW, Solar (EPC), Karnataka, Sep 2021

Utility Scale Solar

EPC

25

EMD – INR 14 million

PBG – INR 25 million

9 months

18th-Oct-2021

GESCOM, 10 MW, Rooftop Solar, Karnataka, Sep 2021

Rooftop Solar

10

5 months

24th-Sep-2021

PEDA, 5 MW, Rooftop Solar, Punjab, Sep 2021

Rooftop Solar

RESCO

5

EMD – INR 0.2 million

PBG – INR 1 million

15%

6 months

13th-Oct-2021

Indian Synthetic Rubber Private Limited, 2.9 MW, Rooftop Solar, Haryana, Sep 2021

Rooftop Solar

CAPEX

2.9

EMD – INR 0.5 million


PBG – 10% of the total contract value

20.7% or above

4 months

9th-Oct-2021

Autokast Ltd, 2 MW, Solar, Kerala, Sep 2021Small Scale Solar

EPC

2

EMD – INR 0.2 million


PBG – 10% of the total contract value

19%

9 months

8th-Oct-2021

Department of Atomic Energy, 1.73 MW, Solar (EPC), Tamil Nadu, Sep 2021





Small Scale Solar

 

EPC

1.73

8 months

20th-Oct-2021

HPCL, 1.3 MW, Solar, Karnataka, Sep 2021

Small Scale Solar

EPC

1.3

19.5%

5 months

13th-Oct-2021

PEDA, 1.2 MW, Rooftop Solar, Punjab, Sep 2021

Rooftop Solar

1.2

EMD – INR 1.2 million

PBG – 10% of the work order value

16%

3 months

20th-Sep-2021

PBG: Performance Bank guarantee
EMD: Earnest Money Deposit
Source: JMK Research

Besides this, SECI has issued an Expression of Interest (EOI) seeking land from potential landowners for lease or sale to solar power developers for setting up of solar PV projects for solarization of Agri-Feeders in Uttar Pradesh. The last date for the submission of EOI is 1st November 2021. Also, GAIL has issued a notice for EPC contractors for the development of solar power projects. The last date for the submission is 5 October 2021. No earnest money deposit is required. Under the empanelment tender, solar plants with a capacity of 100 to 200 MW (AC) are classified as category A, while those with a capacity of more than 200 MW and up to 300 MW are classified as category B.

In addition, Coal India Limited (CIL) has invited bids for shortlisting equity partners for the construction of a solar PV Ingot Wafer Cell module manufacturing plant with a capacity of 4 GW.

Date extension

Tender Name

Technology

Tender Scope

Capacity (MW)

Other Details

Minimum CUF

Commissioning timeline from PPA signing

Bid Submission Date

SECI, 1200 MW, Solar UMREPP ISTS X, Karnataka Jul 2021

Utility Scale Solar

Project Development

1200

EMD – INR 0.4 million/MW

PBG – INR 0.8 million/MW

17%

18 months

4th-Oct-2021

NTPC, 1000 MW, Solar, Pan India, Apr 2021

Utility Scale Solar

Project Development

1000

19th-Oct-2021

REMCL, 740 MW, Solar, Pan India (Railway Land), Jun 2021

Utility Scale Solar

Project Development

740

EMD – INR 0.4 million/MW

PBG – INR 0.8 million/MW

17%

18 months

7th-Oct-2021

NHPC, 600 MW, Solar (EPC), Rajasthan, July 2021

Utility Scale Solar

EPC

600

PBG – 5% of the contract value

18 months

5th-Oct-2021

MSEDCL, 500 MW, Wind, Maharashtra, Aug 2021

Wind

Project Development

500

EMD – INR 0.5 million/MW

Ceiling tariff – INR 2.65/kWh

22%

18 months

7th-Oct-2021

NHPC, 500 MW, Solar (EPC), Tamil Nadu, Aug 2021

Utility Scale Solar

EPC

500

PBG – 3% of the contract value

12 months

5th-Oct-2021




MSEDCL, 487 MW, Solar (under KUSUM), Maharashtra, Aug 2021

Small Scale Solar

Project Development

487

EMD – INR 0.1 million/MW PBG– INR 0.5 million/MW

Ceiling tariff – INR 3.10/kW

15%

12 months

5th-Oct-2021

MSEDCL, 300 MW, Wind, Pan India, Aug 2021

Wind

Project Development

300

EMD – INR 0.6 million/MW

PBG – INR 1.2 million/MW

22%

18 months

5th-Oct-2021

REMCL, 210 MW, Solar (vacant Railway Lands), Aug 2021

Utility Scale Solar

EPC

210

17%

16 months

21st-Oct-2021

SECI, 100 MW, Solar (EPC), Chhattisgarh, Jul 2021

Utility Scale Solar

EPC

100

PBG – 3% of the contract value

18 months

12th-Oct-2021

NHPC, 100 MW, Floating Solar (EPC), Odisha, Aug 2021

Floating Solar

EPC

100

PBG – 3% of the contract value

12 months

7th-Oct-2021

NHPC, 100 MW, Solar (EPC), Tamil Nadu, Aug 2021

Utility Scale Solar

EPC

100

PBG – 3% of the contract value

12 months

6th-Oct-2021

SECI, 50 MW, Solar PV and Agro PV, Tamil Nadu, Jan 2021





Solar and Agro PV

 

EPC

50

PBG – 3% of the contract value

24.1%

12 months

22nd-Sep-2021

NHPC, 50 MW, Floating Solar (EPC), Kerala, Jun 2021

Floating Solar

EPC

50

PBG – 5% of the contract value

12 months

22nd-Oct-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

6200 MW of RE tenders were auctioned and allotted in September 2021. Of the total auctioned capacity, 1200 MW has been allocated for Wind tender and 5000 MW for utility scale solar tender under CPSU scheme.

Winners in the latest RE auctions

Source: JMK Research

Tender Name

Capacity tendered (MW)

Capacity allotted (MW)

Minimum CUF

Commissioning timeline from PPA signing

Winners Details

IREDA, 5 GW, Solar PV Tranche III Phase II, CPSU Program, Pan India, Jan 2021

5000

5000

30 months

• NTPC – 1990 MW

• SJVN – 1000 MW

• NHPC – 1000 MW

• NLC – 510MW

• IRCON – 500 MW

SECI, 1200 MW, Wind (Tranche XI), Madhya Pradesh, May 2021

1200

1200

30%

18 months

• Adani – 450 MW (INR 2.70/kWh)

• ReNew Power – 300 MW (INR 2.69/kWh)

• Sembcorp (Green Infra) – 180 MW (INR 2.69/kWh)

• Evergreen Power (Anupavan Renewables) – 150 MW (INR 2.69/kWh)

• Azure Power – 120 MW (INR 2.70/kWh)

Source: JMK Research

Bid Submission

Tender Name

Capacity tendered (MW)

Capacity Bidded (MW)

Commissioning timeline from PPA signing

Tentative Bidders Details

SECI, Pan India, 2500 MW, Thermal + RE RTC II, Mar 2020

2500

6400

30 months

• Adani – 2500 MW

• Greenko – 1000 MW

• Apar Industries – 850 MW

• JSW – 600 MW

• ReNew Power – 600 MW

• Sembcorp – 300 MW

• Avaada – 300 MW

• Hindustan Power – 250 MW

In addition, 54.8 GW of bids has been submitted for IREDA’s tender for setting up manufacturing capacities for high efficiency solar PV modules under the PLI scheme. However, the government can allocate a maximum of 10 GW under the same. The following bidders have submitted the bids:

Bidders Name

Capacity (MW)

Marks Obtained

Integration Stage

Reliance New Energy

4000

50

Stage 1 to 4

Adani Infrastructure

4000

50

Jindal India Solar

4000

50

Shirdi Sai Electricals

4000

50

First Solar India

3000

50

Coal India

4000

35

Stage 2 to 4

Larsen and Turbo

4000

35

ReNew Power

4000

35

CubicPV

1000

35

Tata Power Solar

4000

20

Stage 3 to 4

Waaree Energies

4000

20

Vikram Solar

3600

20

Avaada Energy

3000

20

Acme Solar

2000

20

Premier Energies

2000

20

Megha Engineering

2000

20

Jupiter Solar

1200

20

Emmvee PV

1000

20

Source: IREDA, JMK Research

Note: Total Marks – The sum of marks assigned under the two parameters – Extent of Integration and Manufacturing Capacity. The maximum marks that can be assigned under each parameter is 50. Thus, the maximum total marks is 100.

Installed Capacity

In August 2021, a combined total of 1060 MW of solar and wind energy capacity was added, taking the cumulative RE capacity to 100 GW.

RE Installations in August 2021

Source: CEA, JMK Research

Recently Commissioned solar projects in September 2021

6 new projects with a total renewable energy capacity of 335.6 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

ReNew Power

Solar

SECI, 1200 MW, Solar, ISTS Tranche III, Feb 2019

250

2.55

Rajasthan

SB Energy

Solar

SECI, 1200 MW, Solar, ISTS Tranche III, Feb 2019

50

2.61

Rajasthan

Sprng Energy

Wind

SECI, 2000 MW, Wind, ISTS Tranche IV, Pan India, Apr 2018

27

2.51

Tamil Nadu

SSNN

Floating Solar

5

Gujarat

AMP Energy

Rooftop Solar

2.4

Puducherry

S G Renew Energy

Rooftop Solar

1.2

West Bengal

Source: Industry news articles, JMK Research

Other announcements during the month were:

  • BSES has commissioned Delhi’s first urban microgrid (Solar + Battery) system under the Indo-German Solar Partnership Project (IGSEP). The microgrid system consists of 100 KW solar and 466 kWh Lithium Ion Battery Energy Storage System (BESS) with a total cost of around INR 5.5 crore.
  • The Maharashtra government and JWS Energy, have signed two memorandums of understanding (MoUs) to set up two green projects worth INR 35,500 crore in Maharashtra. This  includes a 1500 MW hydropower project in Nashik and a 5000 MW wind power project in Satara and Osmanabad, to be set up within 18 months.
  • Tamil Nadu Generation and Distribution Corporation Ltd (TANGEDCO)is planning to set up 4,000 MW solar parks with 2,000 MW of battery storage projects in Tamil Nadu. Shree Cement is also planning to build 106 MW of solar power projects to meet the captive power needs of its cement manufacturing plants across the country.
  • Northern Coalfields Ltd (NCL), a subsidiary of Coal India has announced that they have partnered with NTPC to develop a 50 MW solar power project in Madhya Pradesh. CIL is planning to produce 3,000 MW of solar power and become a net-zero company by 2023-24. 

Apart from this, in terms of PPA activity:

  • SECI has signed PPA with Evergreen Power Mauritius, Ayana Renewable, JSW Energy and Adani for 150 MW, 300 MW, 450 MW and 300 MW respectively under SECI’s 1 200 MW Tranche X wind tender. The tender was floated in December 2020 by SECI.
  • TP Saurya, a subsidiary of Tata Power has received the Letter of Intent (LoI) from Maharashtra State Power Generation Co. Ltd (MAHAGENCO) to build a 250 MW grid-connected solar power plant in Maharashtra. It is expected to be operational within 15 months from the date of PPA execution.

Monthly RE Generation

Renewable Energy sources generated 12,491 MU in September 2021, a significant decrease of 16.9% from August 2021. Taking into account the last month’s RES (Renewable Energy Sources) generation, wind energy continues to contribute the majority share of 51%, followed by solar at 41%, and other renewable energy sources (including biomass) at 8%.

Source-wise Renewable Energy Generation (MU) – India

Source: CEA, JMK Research

monthly RE

Investments/ Deals

In September 2021, about US$ 1366.61 million was invested in the RE sector.

The Key investments during the month were:

  • Adani Green Energy has raised $750 million through a three-year green bond issuance with a fixed coupon rate of 4.37%. In addition, Power Finance Corporation (PFC) has issued India’s first Euro-denominated green bond worth Euro 300 million ($353 million).
  • Surya Vidyut, a subsidiary of CESC Ltd has acquired 156 MW wind projects of Torrent Power for $107.5 million.
  • KKR backed Virescent Renewable Energy Trust (VRET) is the first renewable energy infrastructure investment trust (InvIT), which has raised $62 million from Alberta Investment Management Corporation (AIMCo).

Company Name

Deal Type

Sector

Asset Acquired

Investor

Deal Value

Other Details

Adani Green Energy

Green Bond

Renewable

$750 million

The coupon rate was discovered at 4.375% with a maturity period of three years. Moody’s assigned the notes a Ba3 (Stable) rating.

Power Finance Corporation (PFC)

Green Bond

Renewable

$353 million

The pricing of the bond is at 1.84% rate with a period of seven years

Surya Vidyut (a subsidiary of CESC Ltd)

Acquisition

Wind

156 MW

Torrent Power

$107.5 million

Surya Vidyut operates 156 MW of wind power plants in Gujarat, Rajasthan and Madhya Pradesh

Premier Energies

Equity

Solar

GEF Capital Partners

$27.11 million

The equity capital will be used to add 2 GW of cell and 2 GW of module manufacturing capacity

NTPC REL

Debt (Green Term Loan)

Solar

 

Bank of India

$67 million

The agreement has been signed with a tenure of 15 years for its 470 MW solar projects in Rajasthan and 200 MW solar projects in Gujarat

Virescent Renewable Energy Trust (VRET)

Equity

Renewable

Alberta Investment Management Corporation (AIMCo)

$62 million

VRET is India’s first renewable energy focused InvIT to get a ‘AAA/Stable” rating by CRISIL and India Ratings

Source: Industry news articles, JMK Research

Other key announcements that were made during the month were:

  • AGEL has signed definitive agreements with Essel Green for 100% acquisition of a 40 MW operating solar project in Odisha for INR 219 crore. With this acquisition, AGEL’s operational portfolio will increase to 5.4 GW and its overall portfolio will reach 19.8 GW. The project has a long-term Power Purchase Agreement (PPA) with SECI for INR 4.235/kWh
  • Waaree Energies has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India for an Initial Public Offering (IPO).The offer includes issue of equity shares worth INR 1,350 crore as well as an offer for sale (OFS) component. Wherein INR 978.36 crore and INR 184.23 crore will be used in the development of a 2 GW per annum solar cell manufacturing facility and a 1 GW per annum solar module manufacturing facility in Gujarat.
  • Larsen and Toubro (L&T) has concluded the divestment of its 100% stake in the 99 MW hydro power project in Uttarakhand for INR 1,001 crore. Whereas Jindal Steel and Power Ltd (JSPL) has proposed to sell 96.42% stake in Jindal Power to promoter owned company Worldone for INR 7,401 crore. It is expected that JSPL will conclude the deal by December 2021.
  •  SJVN Ltd is facing a roadblock in acquiring PTC India’s 288 MW wind power assets for INR 2,000 crore. The deal has a deferred payout structure, given that PTC has significant exposure to Andhra Pradesh, where the tariff was reduced from INR 4.84/kWh to INR 2.43/kWh. The wind assets are spread across Madhya Pradesh, Karnataka and Andhra Pradesh.
  • NTPC has decided to raise INR 3,000 crore through a private placement bond. The bond will be issued at a coupon rate of 6.69% per annum with a maturity of 10 years. 
  • In addition, REC Limited is planning to raise INR 850 million through bonds and debentures. 
  • Adani has also announced that it will invest $20 billion in renewable energy generation and component manufacturing over the next ten years, as well as produce the world’s cheapest green electron. It also intends to invest over 75% of capital expenditure in green technologies until 2025.
  • Tata Power is planning to raise $500-$750 million for Tata Power Renewables Energy Ltd (TPREL). In addition, the company aims to increase the green share to at least 40% by 2025.

Comparing on m-o-m basis, global mono PERC modules prices has slightly increased by 0.4% whereas there has been no change in the price for mono PERC India modules in September 2021. 

Solar modules price trends

Source: PVInfoLink, JMK Research

Note: India Prices are FOB prices

Policies and Regulations

Central

Deadline for Completing Solar Projects under KUSUM’s Component-A program has been extended

  • Ministry of New and Renewable Energy (MNRE) with its notification dated 27 August 2021 has extended the time given to complete grid-connected solar projects under component-A of PM KUSUM program until 31 March 2022.
  • According to the PM KUSUM component A guidelines, the deadline for completing grid-connected solar power projects is 12 months from the date of issuing the letter of award (LoA).
  • Due to the second wave of the Covid-19 pandemic, MNRE has granted an extension of 7.5 months for all RE projects.

MoP Notifies the Timelines for the Replacement of Existing Meters with Smart Meters

  • In accordance with the Central Electricity Authority (Installation and Operation of Meters) (Amendment) Regulations, 2019, Ministry of Power hereby notifies the following timelines for the replacement of existing meters with smart meters with prepayment feature in:

Category

Date

(i) All union territories, electrical division with more than 50% consumers in urban areas with AT&C losses greater than 15% in FY 2019-20

(ii) Other electrical division with AT&C losses greater than 25% in FY 2019-20

(iii) All Government offices, industrial and commercial consumers

December 2023

All other areas (that do not have communication network, installation of prepayment meters etc)

March 2025

All Feeders

December 2022

MNRE – Amendment Regarding Implementation Guidelines of Rooftop Solar Programme Ph-II

  • MNRE has issued an amendment regarding the Rooftop Solar Program Ph-II Implementation Guidelines.
  • According to the amendment, now all bidders within the price bracket of (L1 + 25% of L1) shall be empanelled. Earlier the price bracket was of (L1 + X% of L1) where “X” can be decided by the agency and should be clearly indicated while inviting Expression of Interest.

CERC Approved Tariff of INR 2.63/kWh under NTPC 1200 MW Solar tender

  • Central Electricity Regulatory Commission (CERC) in its order dated 8 September 2021 has adopted the tariff of INR 2.63 /kWh and a trading margin of INR 0.07 /kWh for a 300 MW solar project as requested by NTPC.
  • CERC stated that the tariff would remain valid for the entire period of the power purchase agreement (PPA) and the power sale agreement (PSA). CERC further noted that if NTPC failed to provide a revolving letter of credit to the solar developer, the trading margin would be limited to INR 0.02/kWh.
  • TBEA Solar India Private Limited was declared as the successful bidder for allocated capacity of 300 MW at the tariff of INR 2.63/kWh under NTPC 1200 MW ISTS grid-connected solar project.

Updated List – I under ALMM order for Solar PV Modules

  • MNRE has further updated List-I (Manufactures and Modes of Solar PV Modules) of ALMM Order, 2019. The updated list has 34 manufacturers now with a total enlisted capacity of 8,874 MW, while the previous list had 26 manufacturers.
  • Himalayan Solar, Sun N Sand Exim, Insolation Energy, Pennar Industries, Green Brilliance Renewable Energy, Sanelite Solar, Gautam Solar and Solarium Green Energy are the new entrants in the list.
  • MNRE has issued this order to ensure that the products are made in the units in which the products are claimed.

MoP issued Draft Amendment (Rights of Consumers) Amendment Rules, 2021

  • The Ministry of Power (MoP) has released the Draft Amendment to Electricity (Right of Consumers) Rules, 2021. The key highlights from the draft are:
  • DISCOMs should ensure to provide 24×7 uninterrupted power supply to all the consumers in metros and large cities in order to avoid the use of DG sets. The commission should Penalize the Discom for non-compliance.
  • Consumers have to mandatorily shift from use of DGs to cleaner technology (such as RE power with battery) in the next 5 years.
  • The process of providing temporary connections through a prepayment meter to the consumers for construction activities or temporary usage shall be given within 48 hours.
  • Organizations can submit their comments or suggestions by 21.10.2021.

Ministry of Power approves amendments in Renewable Energy Certificate (REC) mechanism

  • The Ministry of Power (MoP) has given his approval to the amendments in the existing Renewable Energy Certificate (REC) mechanism. 
  • The changes proposed in the revamped REC mechanism will be implemented by CERC through regulatory process.
  • The Salient features of the changes proposed in the revamped REC mechanism are:
  • Validity of REC is till it is sold. Earlier it was valid for 1095 days.
  • Floor and forbearance prices are not required to be specified. 
  • CERC will have a monitoring and surveillance mechanism to ensure that there is no hoarding of RECs.
  • A technology multiplier can be introduced for promotion of new and high priced RE technologies, which can be allocated in various baskets specific to technologies depending on maturity.
  • RECs can be issued to obligated entities including DISCOMs and open access consumers, which purchase RE power beyond their RPO compliance notified by the Central Government.
  • No REC will be issued to the beneficiary of subsidies/concessions or waiver of any other charges. The Forum of Regulators (FOR) will define concessional charges uniformly for denying the RECs.
  • Allowing traders and bilateral transactions in the REC mechanism.

State

Andhra Pradesh

DISCOM Ordered to Pay INR 705 million in Generation Based Incentive to a Wind Project

  • The Andhra Pradesh Electricity Regulatory Commission (APERC) has given APSPDCL six weeks to pay Vayu Urja Bharat an amount of INR 705 million for Generation Based Incentive (GBI) and Capacity Utilization Factor (CUF) components.
  • The petitioner owns and operates a 120 MW wind power project in the Anantapuram district. It also signed a 25-year power purchase agreement (PPA) with the Andhra Pradesh Southern Power Distribution Company (APSPDCL) to sell the project’s generated power.
  • The tariff was set at INR 4.84 /kWh without accelerated depreciation, as per the Commission’s order in 2018. In 2017, the petitioner commissioned the project in three stages.
  • According to the petitioner, it was increasing monthly bills. After deducting GBI and high tension (HT) services, however, APSPDCL was only making part payments.

Chhattisgarh

CSERC Proposed Generic Tariff of Rs. 3.51/kWh Proposed for Small Solar Projects Under KUSUM Program

  • Chhattisgarh State Electricity Regulatory Commission (CSERC) has proposed draft order on Feed-in-Tariff for sale of power from decentralized solar plants under Component-A of PM KUSUM Scheme and rate for purchase of excess power from solarised agriculture pumps under Component-C PM KUSUM Scheme.
  • The generic levelized tariffs for solar PV projects ranging from 0.5 MW to 2 MW, achieving COD during FY 2021-22 have been determined as INR 3.51/kWh under Component-A of PM KUSUM scheme.

Delhi

Determination of Open Access Charges and related matters – DERC

  • Delhi Electricity Regulatory Commission (DERC) issues Open Access Charges and related matters (Fourth Amendment) Order, 2021 and the key points are mentioned below:
  • Open Access consumers shall fulfil its RPO as per DERC (Renewable Purchase Obligation and Renewable Energy Certificate Framework Implementation) Regulations, 2021.
  • Wheeling Charges, Transmission Charges, Cross Subsidy Surcharge, and Additional Surcharge will not apply to Open Access consumers who receive electricity from renewable energy sources within or outside Delhi.
  • Banking is not be applicable for the supply of electricity from renewable energy sources through Open Access.

DERC issued third amendment (Group Net Metering and Virtual Net Metering for Renewable Energy) Guidelines, 2021

  • Delhi Electricity Regulatory Commission (DERC) has issued a third amendment to its (Group Net Metering and Virtual Net Metering for Renewable Energy) Guidelines, 2021. 
  • The commission stated that Distribution Licensees should facilitate and bear the capital expenditure on account of Service Line cum Development (SLD) and network augmentation towards Renewable Energy projects and the same shall be passed through in Aggregate Revenue Requirement (ARR).
  • Earlier, the distribution licensee was required to facilitate and bear capital expenditures for Service Line Cum Development (SLD) and network augmentation projects registered under Mukhya Mantri Kisaan Aay Badhotari Yojna.
  • The SLD waiver will be effective until the additional capacity for projects under Virtual Net Metering and Group Net Metering in each Distribution Licensee does not exceed 75 MW, 50 MW, 30 MW, and 10 MW for BRPL, TPDDL, BYPL, and NDMC respectively.

Delhi Issued Retail Tariff Order for FY 2021-22

  • DERC has issued retail tariff order for FY 2021-22. The Tariff Schedule for FY 2021-22, which shall be applicable w.e.f. 1st October, 2021.
  • There is no change in the tariff order of FY 2021-22. The fixed and energy charges for domestic consumers remains same as earlier order, which ranges between INR 20/kW/month to INR 150/kW/month and INR 3/kWh to INR 8/kWh respectively.
  • The Industrial fixed and energy charge for FY 2021-22 is INR 250/kW/month and INR 7.75/kWh which is same as FY 2020-21.
  • Renewable energy projects using virtual and group net metering are exempt from network augmentation charges.

Gujarat

GERC increased additional surcharge for open access consumers to INR 0.69/kWh from INR 0.51/kWh in Gujarat

  • The Gujarat Electricity Regulatory Commission (GERC), in its recent order has increased the additional surcharge to INR 0.69/kWh from INR 0.51/kWh payable by Madhya Gujarat Vij Company Limited (MGVCL), Uttar Gujarat Vij Company Limited (UGVCL), Paschim Gujarat Vij Company Limited (PGVCL), and Dakshin Gujarat Vij Company Limited (DGVCL) from October 2021 to March 2022.
  • According to GUVNL, while calculating the additional surcharge, the transmission charge was considered as INR 19.7257 billion instead of INR 28.77 billion. As a result, the additional surcharge was calculated as INR 0.51/kWh. However, the additional surcharge was calculated at INR 0.69/kWh after reviewing the calculations.

Haryana

Determination of Project Specific Tariff of 20 MW Solar Power Plant in Haryana by HERC

  • Haryana Electricity Regulatory Commission (HERC) has determined the tariff for 20 MW solar power plant in Haryana as INR 2.58/kWh, in line with the relevant provisions of the HERC RE Regulations 2021.
  • Other information of the project are mentioned below:

Category

Details

CUF

22.14% (AC Capacity) with annual degradation of 0.5%

Capital Cost

INR 714.81 million

O&M

INR 0.303 million/MW, and shall be escalated at 2.93% per annum

APTEL dismissed Greenyana Solar’s plea against Haryana Electricity Regulatory Commission’s (HERC) order

  • The Appellate Tribunal for Electricity (APTEL) has dismissed Greenyana Solar’s request against Haryana Electricity Regulatory Commission’s (HERC) order, which denied the solar developer’s 20 MW plant connectivity at Kurangawali substation to the state’s grid because the plant did not fulfil all the requisite captive conditions.
  • Greenyana applied for connectivity of its solar plant and 132 kV substation at Kurangawali at 33 kV voltage level to Haryana Vidyut Prasaran Nigam (HVPN) in 2018 for captive supply of electricity from its 20 MW solar project.

Himachal Pradesh

Himachal Pradesh State Electricity Board has Issued an Order Regarding a Shortfall in RPO Fulfilment till FY 2019

  • Until the end of FY 2019, the RPO shortfall in the solar category was 120.5 MUs, while the non-solar category had an RPO shortfall of 83.5 MUs.
  • HPSEB has been given permission to defer the shortfall until FY 2022.

HPERC directed the HPSEBL to offset Solar RPO deficit by March 2022

  • Himachal Pradesh Electricity Regulatory Commission (HPERC) has ordered the Himachal Pradesh State Electricity Board Limited (HPSEBL) to offset a net deficit of 103.97 MUs under its solar renewable purchase obligation (RPO) by March 2022.
  • Regarding the RPO compliance, the Commission decided to balance the total deficit of 120.53 MUs up to FY 2018-19 with a surplus of 16.56 MUs of solar procured by the HPSEBL in FY 2019-20.
  • Similarly, the Commission also decided to offset the cumulative deficit of non-solar RPOs of 83.52 MUs up to FY 2018-19 with a surplus of non-solar renewable energy of 1389.63 MUs in FY 2019-20. The DISCOM had a net surplus of 1306.11 MUs of non-solar energy for FY 2019-20.

Karnataka

KERC Directed KPTCL to Compensate Solar Project Developer for Generation Losses

  • Karnataka Electricity Regulatory Commission (KERC) in its recent order has directed Karnataka Power Transmission Corporation (KPTCL) to compensate a solar project developer for generation losses.
  • Solitaire Powertech was a Special Purpose Vehicle (SPV) incorporated by Hindustan Clean energy to set up solar projects in Karnataka. The project was commissioned on March 8, 2018, and the capacity on demand was declared on April 7, 2018.
  • The dispute was that KPTCL was not providing Solitaire adequate and requisite transmission system to evacuate power from the 30 MW solar project.
  • KERC directed KPTCL to pay compensation at INR 4.43 /kWh for generation losses suffered by Solitaire Powertech’s solar project. The losses are to be calculated from 1 August, 2020, until the transmission constraint remained.
  • KPTCL has to compensate the amount in a lump sum within eight weeks from the date of the verification. If delayed, KPTCL has to pay interest at 6% per annum on the amount due from the date of default.

KERC Accords Captive Status to a Wind Project and Asks DISCOM to Refund Charges

  • Karnataka Electricity Regulatory Commission (KERC) in its recent order dated 7 September 2021 has ruled that the Green Infra Wind Power Generation owned Harapanahalli Wind Power Plant is a captive power project.
  • KERC in its order directed the Bangalore Electricity Supply Company (BESCOM) to refund the amount received towards cross-subsidy surcharge, additional surcharge, and differential electricity tax, if any, within three months from the date of the order.
  • Previously, In May 2018, the Ministry of Power had proposed amendments to the guidelines related to captive power projects in India. As per the amended guidelines, for a project to be considered captive, a minimum of 26% of the project ownership should be of the captive user. Also, at least 51% of the power generated must be utilized for captive use.
  • Green Infra Power Generation has a 36 MW wind power plant at Harapanahalli, Karnataka. The generator operates four wind power plants, of which the Harpanahalli power project has been identified as a captive power project.
  • Wind generator stated that captive users drawing power from the Harapanahalli project were holding 35.6% of the shares and were consuming nearly 99% of the power generated from the project.

Maharashtra

MERC ordered MSEDCL to pay Delay Payment Charges to Zaveri and Company

  • The Maharashtra Electricity Regulatory Commission (MERC) has directed MSEDCL to pay delay payment charges (DPC) to Zaveri and Company (Gujarat) LLP, a wind energy generator.
  • ZCGLLP, who owns 7.5 MW Wind Electric Generator, has filed the petition seeking payments of its dues from MSEDCL. They both entered into the Energy Purchase Agreement (EPA) on 23 June 2009. The Energy Purchase Agreement (EPA) term was for 13 years.
  • The commission has also stated that for any future delayed payment of DPC beyond the communicated date, MSEDCL shall pay interest on outstanding amount of DPC at the rate of 1.25% per month.

Odisha

OERC Approved GRIDCO to Procure at Rs. 2.75/kWh from a 40 MW Solar Project

  • Odisha Energy Regulatory Commission (OERC) in its order dated 16 September 2021 has approved the power purchase agreement (PPA) signed between Grid Corporation of Odisha (GRIDCO) and NHPC Limited for procuring 40 MW of solar power at INR 2.75/kWh.
  • To procure power from the solar project, NHPC proposed a levelized tariff of INR 3.07/kWh for a period of 25 years. GRIDCO, on the other hand, discovered that the tariff was higher. After that, NHPC offered a revised levelized tariff of INR 2.75/kWh.

Punjab

PSERC declared Curtailment and Tariff Deduction Illegal and Directed DISCOM to make payment along with late payment surcharge

  • Punjab State Electricity Regulatory Commission (PSERC) has declared PSPCL’s unilateral action of curtailing solar power during the period April 2020 to June 2020 and tariff deductions of 5% of the invoice amount for the months of April, May and June 2020 as illegal.
  • In addition, where the deductions from the monthly invoices have been made without the consent of the generators, PSPCL is required to release the same, along with the late payment surcharge.
  • Solar Power Developer Association (SPDA) has filed a petition against PSPCL and have stated that the curtailment notice had been issued in complete ignorance of the terms of the PPA’s, provisions of the PSERC (Punjab State Grid Code) Regulations 2013.
  • Whereas PSPCL has mentioned in its submission that they have asked for curtailment because of the occurrence of Covid-19 which led to a crash in PSPCL’s system to the extent that 100 % power from RE generators had to be curtailed.

PSERC ruled Power Generated from Co-firing of Biomass Qualifies Non-Solar RPO Compliance

  • Punjab State Electricity Regulatory Commission (PSERC) in its order dated 24 September, 2021 has ruled that power generated from co-firing of biomass will be considered as renewable energy and eligible for meeting the non-solar renewable purchase obligation (RPO) of obligated entities.
  • Earlier, Ambuja Cements in its Petition stated that its 30 MW plant has been in operation since 2005. The company was co-firing biomass and coal to generate electricity, averaging about 50% by heat basis.
  • It is to be noted that Ministry of New & Renewable Energy (MNRE) in 2019 stated that the power generated from co-firing of biomass in thermal power plants would be considered renewable energy and eligible to meet non-solar RPO. It had requested the Central Electricity Regulatory Commission (CERC) to issue a methodology for quantifying the energy produced from biomass in biomass co-fired thermal power plants. 

Rajasthan

RERC issues order on Grid Interactive Distributed Renewable Energy Generating Systems Regulations, 2021

  • Rajasthan Electricity Regulatory commission (RERC) has released a Suo moto order wherein they have allowed net metering for all consumers for loads up to 500 kW or up to the sanctioned load, whichever is lower.
  • However, the Commission might take further view on other issues raised by the DISCOMs in their response at a later stage.
  • DISCOMs have requested the following arrangement for Net-Metering, Net Billing and Gross Metering as below:

Category

Net Metering

Net Billing

Gross Metering

Domestic Consumers

Up to 10 kW

10 kW to 25 kW

Above 25 kW

Other Consumers

Up to 25 kW

Above 25 kW

  • DISCOMs have also requested to allow them compensation for loss of the fixed charges in the form of ‘Banking’ or ‘Grid Support Charges’ or any other charges in case of net-metering and net-billing consumers (except domestic category).

Tamil Nadu

  • Tamil Nadu Electricity Regulatory Commission (TNERC) in its order dated 7 September, 2021 has approved the tariff of INR 2.61/kWh, including the trading margin of INR 0.07/kWh, for procuring 1,000 MW of solar power under manufacturing-linked interstate transmission system(ISTS) program from Solar Energy Corporation of India (SECI).
  • TNERC observed that the solar power purchase obligation of TANGEDCO was 10.5% of the total consumption for the FY 2021-22. By the end of FY 2022, approximately 2,856 MW of solar power would be required to meet the RPO target. There was still a shortage of contracted capacity to the extent of 1,850 MW to meet the solar RPO target.
  • Out of the 1,500 MW, TANGEDCO had agreed to purchase 500 MW from SECI at INR 2.78/kWh. For the balance of 1000 MW, TANGEDCO sought approval for a tariff of INR 2.61/kWh.
  • TNERC directed the petitioner to negotiate with SECI to reduce the trading margin and report the outcome. It said that TANGEDCO could sign the PSA according to the negotiation outcome and furnish a copy to the Commission.

TNERC asked to Pay Interest Dues to Three Wind Energy Generators

  • The Tamil Nadu Electricity Regulatory Commission (TNERC) has ordered the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) to pay 1% interest per month for delayed payment to three wind energy generators for the energy supplied.
  • Wherein, Natesan Synchrocones, Tamil Nadu Gears and Shaft Corporation, and Natesan Precision Components have requested the Commission to order TANGEDCO to pay INR 4.036 million, INR 0.570 million and INR 0.158 million respectively as interest against delayed payments.
  • TANGEDCO had entered into wind energy purchase agreements with the petitioners. However, TANGEDCO has been delaying payments to them since December 2017. In addition, they had not been paid interest on late payments.

Uttar Pradesh

Net Metering for 2.4 MW Rooftop Solar Project Approved by UPERC

  • Net metering for a 2.4 MW grid-connected rooftop solar project at the Hindustan Aeronautics Limited (HAL) facilities in Lucknow has been approved by the Uttar Pradesh Electricity Regulatory Commission (UPERC).
  • The company has filed a petition with the commission, requesting a net metering facility for its 2.4 MW rooftop solar project. However, the project capacity for a grid-connected rooftop solar project in Uttar Pradesh cannot exceed 1 MW, according to net-metering regulations.
  • According to the Commission’s order dated August 1, 2019, consumers who have applied for net metering before the notification of the ‘Rooftop Solar PV Grid Interactive Systems Gross/Net Metering) Regulations, 2019′ are eligible for the facility.

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