Monthly RE update- December 2019
Tenders
- About 1,768 MW of renewable tenders are issued in December 2019 including- 1,500 MW utility-scale solar project development tenders, 500 MW EPC solar tenders, 6.4 MW rooftop solar tenders, 200 MW of wind tenders and 55 MW EPC hybrid tenders.
- About 2.5 GW of solar tenders were either re-issued/ retendered
- Auction is completed for about 2.6 GW of solar tenders.
New RFS Issued
| Tender name | Technology | Ceiling tariff (INR/ kWh) | Other Details | Last date of bid submission |
| MSEDCL, Maharashtra, 200 MW, Intra State, Wind, Dec 2019 | Wind | 2.52 | EMD: INR 0.5 million/MW | 22-Jan-2020 |
| Power & Electricity Department, Mizoram, 20 MW, Vankal Solar Park, Dec 2019 | Utility-scale solar | 4.50 | EMD: INR 0.4 million/MW PBG: INR 7.50 Lakh/MW | 23-Jan-2020 |
| NTPC, CPSU Scheme Phase II Tranche II, DCR, 923 MW, Solar, Dec 2019 | Utility-scale solar | 03-Dec-2019 | ||
| NTPC, 500 MW, Maharashtra, Solar, EPC, Dec 19 | Utility-scale solar | 02-Jan-2020 | ||
| OIL, Gujarat , 55 MW, Hybrid, EPC, Dec 2019 | Hybrid | EMD: INR 2.75 crores | 24 Dec 2019 | |
| CEL, Maharashtra, 44 MW, Solar, Dec 2019 | Utility-scale solar | EMD: INR 10 lakh | 30-Dec-2019 | |
| CCL, Jharkhand, 20 MW, Solar, Dec 2019 | Utility-scale solar | EMD: INR 5 million | 15-Jan-2020 | |
| MSEDCL, Maharashtra, 500 MW, Intra State Solar, Phase V, Dec 2019 | Utility-scale solar | 2.90 | EMD: 0.5 million/ MW PBG: 1.4 million/ MW | 28-Jan-2020 |
| NLCIL, 10 MW, Tamil Nadu, Solar, O&M, Dec 2019 | Utility-scale solar | EMD: INR 9,17,000 | 28-Dec-2019 | |
| SKDCL, 1.3 MW, Solar, Dec 2019 | Rooftop Solar | EMD: INR 1 million | 3-Jan-2020 | |
| MEDA, Pune, 175 kW, Solar, Dec 2019 | Rooftop Solar | EMD: INR 87,600 | 30-Dec-2019 | |
| MEDA, Pune, Municipal Council Ballarpur, 140 kW, Solar, Dec 2019 | Rooftop Solar | EMD: INR 70,200 | 17-Dec-2019 | |
| BELAGAVI, Karnataka, 467 kW, Solar, Dec 2019 | Rooftop Solar | 3.07 | EMD: INR 2,35,000 | |
| UREDA,90 kW, Rooftop Solar, Dec 2019 | Rooftop Solar | EMD: INR 0.014 million | 24-Dec-2019 | |
| NTPC, Uttar Pradesh, 870 kW, Solar, Dec 2019 | Rooftop Solar | EMD: INR 0.5 million | 27-Dec-2019 | |
| MEDA, Nagpur, 75 kW, Solar, Dec 2019 | Rooftop Solar | EMD: INR 37,800 | 26-Dec-2019 | |
| KSEBL, Kerala, 385 kW, Solar, Dec 2019 | Rooftop Solar | EMD: INR 50,000 | 2-Jan-2020 | |
| MES, Tamil Nadu, 500 kW, Solar, Dec 2019 | Rooftop Solar | EMD: INR 3,49,000 | 30-Dec-2019 | |
| CPWD, Bungalows of Supreme Court Judges, New Delhi, Solar, Dec 2019 | Rooftop Solar | EMD: INR 7,34,006 | 6-Jan-2020 | |
| CEL, Tamil Nadu, 1.6 MW, Solar, O&M, Dec 2019 | Rooftop Solar | EMD: INR 7,50,000 | 4-Jan-2020 |
*EMD- Earnest money deposit, PBG- Performance bank Guarantee
Source: JMK Research
Retendered/ Reissued
| Tender name | Technology | Ceiling tariff (INR/kWh) | Other details | Last date of bid submission |
| HPGCL, Old Dye, Haryana, 20 MW, Solar, Dec 2019 | Utility-scale solar | EMD: 20 million | 15-Jan-2020 (earlier 25 Nov 2019) | |
| MSEDCL, Maharashtra 1,350 MW, Solar, Dec 2019 | Utility-scale solar | 3.30 (earlier 3.14) | EMD: 0.1 million/ MW | 29-Jan-2020 |
| SECI, 1,200 MW, ISTS connected RE with storage, Phase VII | Renewable+storage | EMD: 0.75 million/ MW (earlier 0.6 million/ MW) | 19-Dec-2019 (earlier 29 Nov 2019) |
Source: JMK Research
Projects allotted/ Bids submitted
| Tender name | Status | Capacity tendered (MW) | Capacity allocated (MW) | Bidders/ winners details |
| SECI, 2 GW manufacturing with 6 GW of project development | Projects allotted | 2 GW- Manufacturing 6 GW- Project development | 0.5 GW manufacturing with 2 GW project development | Azure |
| RRECL, Rajasthan, 113.5 MW | Bid submitted | 113.5 MW | EESL-113.5 MW, Sukhbir Agro-16 MW, Hero Future Energy-15.5 MW, ATA Renewable-6.5 MW | |
| MSEDCL, 500 MW, ISTS Phase IV, Solar | Bid submitted | 500 | 500 | Juniper Green Energy Pvt Ltd-150 MW(2.89), Maharashtra State Power Generation Co. Ltd.-350 MW(2.90) |
| MSEDCL, Maharashtra, 1,350 MW | Bid submitted | 1,350 | Kiran Renewables-5 MW |
Source: JMK research
Projects Commissioned
In November 2019, about 824 MW of new solar capacity and 189 MW of new wind capacity is added.
State-wise installations in solar and wind during November 2019 – 1013 MW
Source: MNRE, JMK research
List of recently commissioned projects
| Project developer name | Technology | Capacity (MW) | Tender name | Location |
| ENGIE | Wind | 30 | GUVNL, Gujarat, 500 MW, Dec 2017 | Gujarat |
| AAI | Rooftop solar | 1.1 | – | Assam, Bihar, Maharashtra |
| AMP Energy (for SKODA Volkswagen) | Rooftop solar (OPEX) | 8.5 | – | Maharashtra |
| SB Energy | Utility scale solar | 200 | SECI Karnataka 200 MW, May-2018 | Karnataka |
| Acme | Utility scale solar | 85 | KREDL Karnataka 860 MW, Feb-2018 | Karnataka |
| ReNew | Utility scale solar | 105 | KREDL Karnataka 860 MW, Feb-2018 | Karnataka |
| Asian Fabtech | Utility scale solar | 95 | KREDL Karnataka 860 MW, Feb-2018 | Karnataka |
| Solarpack | Utility scale solar | 40 | KREDL Karnataka 860 MW, Feb-2018 | Karnataka |
| Rays Power Infra | Utility scale solar | 35 | KREDL Karnataka 860 MW, Feb-2018 | Karnataka |
| Shapoorji Pallonji | Utility scale solar | 20 | KREDL Karnataka 860 MW, Feb-2018 | Karnataka |
| Sree Godavari Kraft Papers Pvt Ltd | Captive | 3 | NA | Andhra Pradesh |
Source: JMK research
Investments/ Deals
| Announcement date | Acquirer/ Investor | Company name | Sector | Deal type | Deal value | Stake acquired |
| 17 December 2019 | Bank of America | Fourth Partner Energy | Solar | Debt | $50 million | NA |
| 5 December 2019 | Sembcorp | Gayatri Energy | Renewable | Equity | INR 406 crore | 6% |
| 23 December 2019 | AIIB | Hero Future Energies | Solar | Debt | $65 million | NA |
| 18 December 2019 | Sathguru Catalyser’s IFA Fund | Ecozen | Solar cold storage & solar pumps | Debt | $6 million | NA |
| 16 December 2019 | Vector Green | RattanIndia | Solar | M&A | 275 MW | 100% |
Source: JMK Research
Other key announcements
Adani Green may buy rest of Essel’s 480-MW solar assets
After selling 205 MW of its operational solar energy portfolio to the Adani Group, the Essel Group has reached an agreement to sell the remaining 480 MW — currently under construction — to Adani Green Energy, two people with direct knowledge of the development said. The Adani Group has agreed in principle to buy out the remaining portfolio, one of the people said.
FMO to invest more in Shell-backed solar power firm Orb Energy
Dutch development bank FMO has proposed an additional equity investment of €1 million ($1.11 million or Rs 7.91 crore) in Orb Energy Pte. Ltd, a solar photovoltaic and solar thermal solutions provider.
NTPC to invest Rs 50,000 crore to add 10GW solar energy capacity by 2022
State-owned power giant NTPC is planning to add 10GW of solar energy generation capacity by 2022, which entails an investment of around Rs 50,000 crore, to be funded mainly by green bonds, a source has said. At present, NTPC has installed renewable energy capacity of 920 MW, which includes mainly solar energy. It has formulated a long term plan to become a 130 GW company by 2032 with 30 per cent non-fossil fuel or renewable energy capacity.
Monthly import-export statistics
*Provisional data, final data not yet released by the government
Source: Ministry of Commerce, JMK research
Global Price Trends
Source: EnergyTrend, JMK Research
Policy and Regulation
Amendments to Dispute Resolution Mechanism
MNRE has constituted a Dispute Resolution Mechanism Committee in June 2019 to consider disputes between solar/ wind power developers and SECl/ NTPC. Further amendments are notified in December 2019, to clarify on existing clauses related to extension of time due to force majeure events such as flood, earthquake, and other natural calamities.
Guidelines for Development of Decentralised Solar Power Plants
- Objective of these Guidelines is to provide a facilitative framework for development of Decentralised Solar Power Plants near distribution sub-stations in the country and fulfilment of Solar RPO.
- Guidelines are applicable for procurement of solar power by DISCOMs from Decentralised Solar Power Plants of capacity more than 2 MW; or plants connected to distribution sub-stations of rating 66/11 KV and higher; or plants up to 2 MW capacity and connected to any DISCOM of rating 33/11 KV and below (where the sanctions given to DISCOM under PM-KUSUM are exhausted).
- DISCOMs will notify substation wise solar power capacity available on the basis of average energy/load requirement during day time, technical feasibility, etc. The DISCOM may decide the capacity of individual solar plant permitted to be set up and the radius within which the plant should be situated.
- The solar power generated will be purchased by DISCOMs at a tariff determined by respective SERC or discovered through competitive bidding process.
- The DISCOM shall provide connectivity at the sub-station/11 kV/LT feeder, and shall ensure “must-run” status to the solar plants.
- Solar Power Generator shall provide Earnest Money Deposit (EMD) of Rs. 1 Lakh/MW in the form of Bank Guarantee along with Performance Bank Guarantee (PBG) of Rs. 5 Lakh/MW.
- In case land and connectivity is being provided by the DISCOM, commissioning timeline is within nine months from date of issuance of LoA. In other cases, the commissioning shall be done within 12 months of issuance of LoA
- The regulations apply to the Renewable Energy projects, achieving commercial date of operation (COD) from April 1, 2019, to March 31, 2022, and are supplying entire power to state DISCOM on a long term basis.
- For solar projects, a normative capital cost of Rs 4.5 crore/MW (5 MW to 2 MW) and Rs 4 crore/MW (2 MW to 5 MW) is set. The O&M expenses have been set at Rs 7 lakh/MW for the first year of the project. Additionally, the commission has set the capacity utilisation factor (CUF) at 19 percent for solar PV projects.
- For wind energy projects, the regulations specify a capital cost of Rs 5.25 crore/MW for the financial year 2019-20
Rajasthan Solar Energy Policy 2019
- Target to setup 30,000 MW Solar Power Projects up to 2024-25. Following targets are defined:
- Utility/Grid Scale Solar Parks-24,000 MW
- Distributed Generation 4,000 MW
- Solar Rooftop 1,000 MW
- Solar Pumps 1,000 MW
- Government announced to develop 33 district headquarters as ‘Green Energy Cities’ -district headquarters in next 5 years by installing 300 MW of Solar Rooftop Systems.
- Solar rooftop systems up to 1 MW capacity will be allowed under gross metering scheme as well
- Transmission and wheeling charges are exempted for solar projects of maximum 25 MW capacity, setup between Dec 2019 and March 2023, as per following criteria:
- For solar projects setup for captive consumption outside the premises of consumer, there is 50% exemption in transmission and wheeling charges for 7 years
- For third party sale open access projects, there is 50% exemption in transmission and wheeling charges for 7 years
- For solar projects with storage, for captive/ third party sale, there is exemption of 75% of transmission and wheeling charges for 7 years.
- Banking of energy at the drawl end within the State shall be permitted for captive consumption and third party sale on yearly basis. Banking charges shall be adjusted in kind @ 10% of the energy delivered at the point of drawl.
- For solar equipment manufacturers, there is 100% exemption in stamp duty. Land allotment will be at 50% concessional rate, full exemption in electricity duty for 10 years. There is Investment subsidy on SGST to solar energy equipment manufacturers- 90% of SGST due and deposited for 7 years.
Rajasthan Wind and Hybrid Energy Policy, 2019
Wind
- Target to achieve 2 GW of wind power capacity by 2024-25 to fulfill renewable RPO of state DISCOMs. Another 2 GW of wind power projects are also planned for captive consumption/ third party sale within or outside Rajasthan.
- For wind equipment manufacturers, there is 100% exemption in stamp duty. Land allotment will be at 50% concessional rate, full exemption in electricity duty for 10 years. There is Investment subsidy on SGST to solar energy equipment manufacturers- 90% of SGST due and deposited for 7 years.
Hybrid
- Target to install 3.5 GW of hybrid projects by the financial year 2024-25, out of which hybridization of existing wind or solar projects will account for 200 MW, new wind-solar hybrid projects will account for 2 GW, wind-solar hybrid with storage systems will account for 500 MW, and hybridization of existing conventional projects will account for 800 MW.
- The DISCOMs plans to procure power up to 5% of their RPO target from hybrid projects with storage systems at a tariff discovered through competitive bidding in addition to the RPO target.
- All category of consumers are eligible for net metering arrangement under the new regulations.
- Net metering arrangement shall be permitted by the Distribution Licensee on a non-discriminatory and Distribution Transformer-wise or feeder wise on ‘first come, first serve’ basis.
- The cumulative capacity of all Renewable Energy Generating Systems under Net metering arrangements and/or Net billing arrangements connected to a particular Distribution Transformer/feeder of the Licensee shall not exceed 70% of its rated capacity.
- Minimum size for net metering is 1 kW and maximum capacity shall not exceed the Sanctioned load (in kW) or the Contract Demand (in kVA) of the consumer.
- The net credited units of electricity as at the end of each financial year shall be purchased by the DISCOM at the Generic Tariff approved by the Commission for that year.
- Open access will be permissible to the consumers seeking open access for a contracted demand of 1 MW and above and connected at 11 kV and above
- Consumer category defined- Long-term open access customers (>5 years), medium-term open access customers (3 months-5 years) and short-term open access customers (less than 3 months)
- A consumer partially surrendering the Open Access capacity will have to pay transmission and wheeling charges at applicable rates for the remaining period of their contract at pro-rata basis along with 25% of estimated transmission and wheeling charges on the surrendered capacity.
- The consumers availing Open access facilities will have to pay the transmission & wheeling charges, cross-subsidy surcharge, Additional Surcharge, Standby charges (to the distribution companies), imbalance charges (if applicable) as described in the regulation and amended from time to time.
- Payment Security deposit to be paid to the SLDC as per following criteria:
- For transactions involving transmission facility only- INR 0.5 Lakh/MW/Month
- For transactions involving both Transmission and Distribution facilities- INR 1.5 Lakh/MW/Month
- For transactions involving only distribution facilities- INR 1.0 Lakh/MW/Month