Embed Size (px)
Citation preview
��� ��������������������
Lead Sponsors
January 2021
monthlyupdate
3
HIGH PERFORMANCE
RANGE
Upto
Life cycle
OUR LITHIUM ION BATTERIES ARE MANUFACTURED WITH UTMOST CARE & PASSES THROUGH
BEFORE REACHING YOU30+ QUALITY TESTS
1800-2121-321 • [email protected] • www.waaree.com
Combustion test Acupuncture test Drop test Temperature cycling testThermal shock test
High EnergyDensity
Lightweight &Compact Size
Fast & EfcientCharging
High TemperaturePerformance
EXCLUSIVEFEATURES
��� ��������������������
4
Contents
1. Tenders | 5
New RFS Issued | 5
Re-Tendered | 7
Date extension | 8
Auctions Completed | 8
2. Installed Capacity | 9
3. Investments/ Deals | 11
4. Monthly Import-Export Statistics | 12
5. Module Price Trends | 13
6. Monthly SECI Payments | 14
7. Policy and Regulation | 15
8. Budget Highlights 2021-22 | 28
��� ��������������������
5
Tenders
• About 6963 MW of renewable tenders were issued in January 2021,including 5 GW of solar tender by IREDA under CPSU scheme.TANGECO also issued 500 MW solar tender under KUSUM scheme.
• SECI reduced the capacity of 5000 MW RE+Thermal RTC II tender to
half of its original capacity.
New RFS Issued
1.
Source: JMK Research
Fig 1.1: Details of new tenders issued in January 2021
0 1000 2000 3000 4000 5000
Others
MPUVNL, Rooftop, Madhya Pradesh
SECI, Solar PV and Agro PV, Tamil Nadu
NHPC, ISTS, Solar, Karnataka
NTPC, Solar, Rajasthan
MAHAGENCO, Solar, Maharashtra
NTPC, ISTS, Wind
GUVNL, Solar, Phase XII, Gujarat
TANGEDCO, Solar, KUSUM scheme
IREDA, Solar Tranche III Phase II, CPSU
Capacity (MW)
5000
500
500
300
250
190
100
50
40
33.4
Solar
Wind
��� ��������������������
6
Table 1.1: New RFS issued
Tender Name TechnologyTender Scope
Capacity (MW)
Other Details
Min CUF
Commis-sioning timeline from PPA signing
Bid Submission
Date
IREDA, 5 GW, Solar PV Tranche III Phase II, CPSU Program, Pan India, Jan 2021
Utility Scale Solar
Build Own Operate
5000EMD- INR 400,000PBG- 50% of VGF bid
24 months 4-Mar-2021
GUVNL 500 MW, Solar PV Phase XII, Gujarat, Jan 2021
Utility Scale Solar
Project Development
500 EMD- INR 400,000 17% 18 months23-Feb-
2021
TANGEDCO, 500 MW, Solar under PM KUSUM scheme, Jan 2021
Small Scale Solar
500 EMD- INR 1,00,00018-Feb-
2021
NTPC, 300 MW, ISTS Wind Power Project, Pan India, Jan 2021
Wind EPC 300
Bid Security Amount • INR 100 million
(upto 160 MW)• INR 200 million
(over 160 MW)
9-Feb-2021
MAHAGENCO, 250 MW, Solar PV, Maharashtra, Jan 2021
Utility Scale Solar
Project De-velopment
250 PBG- INR 1.05 million 19% 15 months15-Feb-
2021
NTPC, 190 MW, Grid-connected Solar PV, Rajasthan, Jan 2021
Utility Scale Solar
Project De-velopment
190 PBG– INR 800,000 21% 10 months10-Feb-
2021
NHPC, 100 MW, ISTS connected Solar PV, Karnataka, Jan 2021
Utility Scale Solar
EPC 100 12 months16-Feb-
2021
SECI, 50 MW, Solar PV and Agro PV, Tamil Nadu, Jan 2021
Solar and Agro PV
Project De-velopment
"Solar PV – 40
Agro PV - 10"
12 months 1-Mar-2021
MPUVNL, 40 MW, Rooftop Solar, Madhya Pradesh, Jan 2021
Rooftop Solar
RESCO 40 PBG- INR 1.9 million 9 months17-Feb-
2021
SECI, 25 MW, Solar PV, West Bengal, Jan 2021
Utility Scale Solar
EPC 25 9 months10-Mar-
2021
TSCL, 3 MW, Solar Power Project, Tamil Nadu, Jan 2021
Small Scale Solar
3 EMD– INR 1.5 million18-Feb-
2021
��� ��������������������
7
Tender Name TechnologyTender Scope
Capacity (MW)
Other Details
Min CUF
Commis-sioning timeline from PPA signing
Bid Submission
Date
CREST, 2 MW, Rooftop Solar, Chandigarh, Jan 2021
Rooftop Solar
2"INR 200,000 PBG- 3% of the pro-ject capital cost"
4 months 27-Jan-2021
DMRC, 2 MW, Rooftop Solar, Delhi, Jan 2021
Rooftop Solar
RESCO 2
"Performance Securi-ty Amount – INR 2.16 million Ceiling tariff – INR 4/kWh"
12 months23-Feb
2021
MEDA, 1.44 MW, Rooftop Solar, Maharashtra, Jan 2021
Rooftop Solar
1.44 EMD- INR 671,357 12-Feb-21
Tender Name TechnologyTender
ScopeOther Details
Minimum
CUF
Commis-
sioning
timeline
Bid Submission
Date
SECI, Pan India, 2500 MW, Thermal + RE, Mar 2020
Thermal + RE
Project Development
EMD– INR 0.5 millionPBG– INR 0.1 million
30 months 1-Mar-2021
Re-Tendered
Table 1.2: Re-tendered
PBG: Performance Bank guaranteeEMD: Earnest Money Deposit
Source: Industry news articles, JMK Research
��� ��������������������
8
Date Extension
Tender Name Technology Other DetailsBid
Submission date
SECI, 2500 MW, ISTS, Solar UMREPP, Karnataka (ISTS X), April 2020 Solar
EMD- INR 0.4 million PBG- INR 0.8 million
26-Feb-21
SECI, 15 MW, Floating Solar, Bilaspur Himachal Pradesh Floating SolarEMD- INR 13.5 million
17-Feb-21
RITES, 1 GW, Ground mounted solar PV, Zonal Railways across India, Sep 2020
Utility scale solar
EMD- INR 0.4 million 4-Mar-21
RITES, 400 MW, Ground mounted solar PV, Zonal Railways across India, June 2020
Utility scale solar
EMD- INR 0.4 million 11-Feb-21
Table 1.3: Date Extension
Source: Industry news articles, JMK Research
Table 1.4: Auctions completed
Auctions Completed
Source: Industry news articles, JMK Research
Tender Name StatusCapacity tendered
(MW)
Capacity allotted
(MW)Bidder Details
GUVNL, 500 MW, Solar, Gujarat, Phase IX, Sept 2020
Auction Com-pleted
200 200L&T (won from NTPC Limited one of
the winners of this tender)
GSECL, 210 MW, Solar, Gujarat, Sept 2020
Auction Com-pleted
210 210 L&T
NTPC, 90 MW, BOS package, Anta Solar Park, Rajasthan
Auction Com-pleted
90 90 Amara Raja Power Systems
��� ��������������������
9
Fig 2.1: Solar and Wind installations. Cumulative and December 2020 - 744.71 MW
Fig 2.2: State wise Installed capacity in Dec 2020
Installed Capacity2.
Source: MNRE, JMK Research
In December 2020, a total of 744.71 MW of solar and wind energy capacity was added, taking the cumulative RE capacity to 91.15 GW as on December 31st , 2020.
Gujarat added maximum solar as well as wind capacity in Dec 2020 with a total addition of about 384 MW.
Bio P
ower Small Hydro
Wind
S
olar
43%
4
1 %
11%
5%
100%= 91.15 GW
0
100
200
300
400
500
600
WindSolar
Cap
acity
(MW
)
Cumulative Installations Capacity installed in December 2020
554.11
190.6
0
50
100
150
200
250
300
350
400
450
Tam
il Nadu
Karnata
ka
Uttar P
radesh
Andhra P
radesh
Gujarat
Inst
alle
d C
apac
ity (M
W)
Utility scale SolarWind
��� ��������������������
10
Table 2.1: List of recently commissioned projects
Project Developer Name TechnologyCapacity
(MW)State
Month of Commissioning
Adani Solar 150 Gujarat Jan-2021
NTPC Solar 140 Uttar Pradesh Jan-2021
SolarArise Solar 75 Uttar Pradesh Jan-2021
THDC India Limited (NTPC arm) Solar 50 Kerala Jan-2021
Cipla in partnership with AMP Energy Solar 30 Maharashtra Jan-2021
Adani Solar 25 Uttar Pradesh Jan-2021
Source: Industry news articles, JMK Research
Recently Commissioned Projects
��� ��������������������
11
Table 3.1: Investment and deals in November, 2020
Company Name Deal Type SectorAsset
acquiredInvestor
Deal Value
Stakes Acquired
Spinel Energy and Infrastructure (SEIL)
Acquisition Solar 20 MW Adan Green Energy$18.22 million
100%
Investments/ Partnerships3.
Source: Industry news articles, JMK Research
Tata Capital’s green lending arm gets $ 30 million from CDC
CDC has approved a sum of $ 30 million merit to the Tata Cleantech anarm of Tata Capital under its green lending facility. This amount will helpTata Cleantech to loan businesses across the globe that focuses mainlyon e-mobility, water and energy sector. This has been the first green loanfacility provided by the British impact investor.
Jinchen, Waaree signed 3 GW - high efficiency PV module line
Jinchen has signed a 3 GW of high efficiency PV modules automaticproduction deal with India’s largest module manufacturer Waaree EnergiesLtd. The agreement will be delivered in April 2021 and it will be formallyput in operation by Jun 2021. This will help Waaree to reach its modulemanufacturing capacity by 5 GW, making them the largest modulemanufacturer in the overseas market. It will also help to boost the India’sNational Solar Target of 175 GW by 2022.
��� ��������������������
12
Monthly Import/ Export Trends4.Compared to November 2020, solar imports have increased by nearly 10% while exports have fallen by 67% in December 2020. Compared to previ-ous year, on a YoY basis, both solar imports and exports have declined by 69% and 97% respectively in 2020.
Fig 4.1: Exports - Imports trend
Source: Ministry of Commerce, JMK Research
5000 0 5000 10000 15000 20000
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Amount (INR million)
Exports Imports
��� ��������������������
13
Module Price Trends5.Solar cells and modules - Price trends
Compared to December 2020, prices of global multi crystalline modules and mono PERC modules did not change in January 2021. Compared to previous year, on a YoY basis, prices of global multi crystalline modules and mono PERC modules have declined by 13% and 11% respectively.
Fig 5.1: Solar Cells and Module price trends
Source: PVInfoLink, JMK Research
0.15
0.16
0.17
0.18
0.19
0.20
0.21
0.22
0.23
0.24
0.25
Multi-crystalline modules (Global)
Mono PERC modules (Global)
Mono PERC modules (India)
Jan
-21
De
c-20
No
v-20
Oct
-20
Se
p-2
0
Au
g-2
0
Jul-
20
Jun
-20
May
-20
Ap
r-20
Mar
-20
Fe
b-2
0
Jan
-20
Pri
ces
(US
D/
Wp
)
��� ��������������������
14
Monthly SECI Payments6.The Solar Energy Corporation of India Limited (SECI) paid nearly INR 3.85 billion to developers for the purchase of solar and wind power in November 2020. Compared to October 2020, the payment disbursal has increased by ~4%.
Fig 6.1: Monthly payments by SECI to solar and wind developers
Source: SECI, JMK Research
0.0
1.5
3.0
4.5
6.0
Nov-20Oct-20Sep-20Aug-20Jul-20Jun-20May-20Apr-20Mar-20Feb-20Jan-20
Am
ou
nt
(INR
Bill
ion
)
3.83.7 3.7
3.9
4.9
4.14.4
5.2
4.54.6
3.6
��� ��������������������
15
Policies and Regulations7.MoP sets RPO and HPO trajectory for Solar and Non-Solar projects
• In light of Tariff Policy, 2016 and with an objective of creating renewa-ble power capacity of 175 GW by March, 2022 Ministry of Power (MoP) had notified long term trajectory of Renewable Purchase Obligation for Solar and Non-Solar power vid its order dated 29 January, 2021.
• On 8th March, 2019 Government issued Order detailing various policy measures to promote hydro power and also specifying Hydro Power Obligation (HPO). In line of this Order MoP has revised trajectory of RPO including HPO targets considering the Large hydro projects (LHP) which are commissioned after 8th March, 2019.
• As per MoP notification HPO benefits may be met from the power pro-cured from eligible LHPs commissioned on and after 8 March,2019 and upto 31 March, 2030 in respect of 70% of the total generated capacity
Central
Year Solar RPO
Non Solar RPO
Total RPOHPO
Other Non-Solar RPO
Total Non-Solar RPO
2019-20 7.25% - 10.25% 10.25% 17.50%
2020-21 8.75% - 10.25% 10.25% 19%
2021-22 10.50% 0.18% 10.50% 10.68% 21.18%
2022-23
To be specified later
0.35%
To be specified later
To be specified later
To be specified later
2023-24 0.66%
2024-25 1.08%
2025-26 1.48%
2026-27 1.80%
2027-28 2.15%
2028-29 2.51%
2029-30 2.82%
��� ��������������������
16
for a period of 12 years from the date of commissioning.
• Free power is to be provided as per agreement with the State Govern-ment and that provided for Local Area Development Fund(LADF), shallnot be included within this limit of 70% of the total generated capacity.
• Free power (not that contributed for Local Area Development) only toextent of HPO liability of the State/Discom, shall be eligible for HPObenefit.
• In case the free power, as above, is insufficient to meet the HPO obli-gations, then the State would have to buy the additional hydro powerto meet its HPO obligations or by Hydro Energy Certificate to meet thenon-solar HPO.
• The Hydro Energy Certificate mechanism under Regulation to bedeveloped by CERC to facilitate compliance of HPO Obligation, wouldhave a capping price of Rs.5.50/Unit of electrical energy w.e.f 8thMarch 2019 to 31st March, 2021 and with annual escalation @5% there-after for purposes of ensuring HPO compliance.
• MoP clarifies that the above HPO Trajectory shall be trued up on anannual basis depending on the revised commissioning schedule of Hy-dro projects. The HPO Trajectory for the period between 2030-31 and2039-40 shall be notified subsequently. Hydro power imported fromoutside India shall not be considered for meeting HPO
• In case of on achievement of Solar RPO compliance to the extentof 85% and above, remaining shortfall, if any, can be met by excessnon-solar energy consumed beyond specified Non-Solar RPO for thatparticular year. Similarly, on achievement of Other Non-Solar RPOcompliance to the extent of 85% and above, remaining shortfall if any,can be met by excess solar or eligible hydro energy consumed beyondspecified Solar RPO or HPO for that particular year.
• Further, on achievement of HPO compliance to the extent of 85% andabove, remaining shortfall, if any, can be met by excess solar or othernon—solar energy consumed beyond specified Solar RPO or OtherNon-Solar RPO for that particular year.
• Moreover, CERC may consider to devise suitable mechanism similar toRenewable Energy Certificate (REC) mechanism to facilitate fulfilmentof HPO
��� ��������������������
17
MoP Considered ISTS Charges Waiver for Solar, Wind Projects
Beyond Deadline
• Ministry of Power with its Order dated 15 January, 2021 clarifies that it will not deprive renewable power projects of a waiver on inter-state transmission system (ISTS) charges and losses if they are commis-sioned after 30 June, 2023, due to delays caused by the transmission provider or the government agency or due to force majeure.
• These projects include- solar and wind power projects and solar-wind hybrid projects (with or without storage).
• The waiver would apply to solar projects commissioned under the second phase of the Ministry of New and Renewable Energy’s Central Public Sector Undertaking Program and for solar projects commis-sioned SECI’s manufacturing-linked solar tender.
• If the renewable power project is eligible for ISTS waiver and is granted an extension in commercial operation date, the commencement of the long-term access period would also accordingly get an extension.
• The Ministry of Power, with its Order dated 5 August, 2020, had waived ISTS charges and losses on all solar and wind projects commissioned before 30 June, 2023. The ISTS charges would be waived for 25 years from their commissioning date for the transmission and sale to entities with renewable purchase obligations (RPO).
Jharkhand sets Levelized Tariff of Rs. 3.09/kWh for Solar Projects
Under PM-KUSUM
• Jharkhand State Electricity Regulatory Commission (JSERC) with order dated 8 January, 2021 has set a pre-fixed levelized tariff of Rs. 3.09 /kWh for power from decentralized solar and other renewable energy projects between 500 kW and 2 MW in size under Component-A of the Pradhan Mantri Kisan Urja Suraksha evem Utthan Mahabhiyan (PM KUSUM) program.
• The tariff applies to distribution companies (DISCOMs) looking to pur-chase power from farmers, farmer groups, cooperatives, panchayats, farmer producer organizations, or water user associations in the vicini-ty of rural grid substations.
• Pre-fixed Levellised Tariffs Issued by JSERC for Decentralised Solar
Jharkhand
��� ��������������������
18
Projects Under Component-A of KUSUM Scheme.
• JSERC allowed the tariff of Rs.3.09/kWh, stating that this was a morerealistic and competitive tariff given the current market climate. JSERCnoted that this tariff was only a ceiling tariff for carrying out competitivebidding. The final tariff must be discovered through competitive bid-ding. This tariff would remain in force until the Commission reviews it.
Details UnitJharkhand (Proposed)
Haryana Rajasthan Karnataka Punjab Telangana
Tariff Approved Rs./kWh 3.09 3.11 3.14 3.08 2.75 3.13
JSERC approves Net Metering Facility for 2 MW Rooftop Shree
Cement Solar Project
• Jharkhand State Electricity Regulatory Commission (JSERC) with its or-der dated 9 January, 2021 has approved the net metering connectivity requested by Shree Cement for a captive rooftop solar power project of 1.99 MW at 132 kV voltage supply.
• Shree Cement had filed a petition requesting the Commission to allow for the net metering facility, regardless of the voltage level, be it 33 kV or 132 kV or even higher.
• Shree Cement had commissioned a cement grinding unit, for which JBVNL had released a high tension (HT) connection with a contract demand of 14 MVA at a voltage level of 132 kV. The company intends to establish a captive solar power project of 1.99 MW under the net metering regulations of JSERC.
• It applied for net metering connectivity, to which JBVNL replied that there was no clarity regarding the net metering facility at a connectivi-ty level of 132 kV.
• JBVNL said that the regulations provide connectivity for net metering at different voltage levels. Still, there was no clarity regarding the roof-top solar system’s connectivity above 1 MW and up to 2 MW at 132 kV level. Given the ambiguity for connectivity at 132 kV voltage level, the petitioner filed the petition to get approval for the solar power project under the net metering facility.
• Shree Cement said that the proposed 1.99 MW solar captive power project would generate a voltage level of 480 V that would be further
��� ��������������������
19
stepped up to 11 kV. The generation at 11 kV would then be connected to the cement plant’s 11 kV bus, and the 11 kV bus will be connected with a 132 kV JBVNL system through the existing 11/132 kV, 25 MVA step-up power transformer.
• The company stated that it had installed two bi-directional metersavailable at the 132 kV grid interconnection point for the metering sys-tem and energy accounting. The meters were capable of recording theimport of energy from the grid and export of solar energy to the grid.
• Jharkhand: Connectivity Levels at which the Rooftop Solar System is tobe Connected with the Distribution System
Connected Load/ Contract Demand of Eligible Consumer
Connectivity Level
Up to 5 kW Single Phase at 230V
5 kW and above up to 50 kW/63 kVA 3 Phase, 4 wire at 415 V
Above 50 Kw and upto 1 MW 3 Phase at 6.6 kV, 3 Phase at 11 kV
Above 1 MW and upto 2 MW 3 Phase at 22 Kv, 3 Phase at 33 kV
• JSERC said that connectivity would be provided subject to the fulfill-ment of requirements concerning system protection, data communi-cation, and metering of the Jharkhand Urja Sancharan Nigam Limited(JUSNL), State Load Despatch Center (SLDC), and the Jharkhand BijliVitran Nigam Limited (JBVNL) respectively.
• JSERC said that the regulations provide connectivity of net meteringat different voltage levels but do not provide connectivity of a rooftopsolar PV system above 1 MW and up to 2 MW at 132 kV voltage level.
• Considering the submissions, expert report, and no objection by boththe distribution companies, the Commission said it was inclined torelax the regulations and grant net metering connectivity irrespective
of the voltage level.
Maharashtra Announces Unconventional Energy Generation Poli-
cy, Plans for 13 GW of Solar Projects
The Maharashtra State Cabinet has issued its ‘Unconventional Energy Generation Policy’ to promote non-conventional source-based energy generation in Dec, 2020.
Maharashtra
��� ��������������������
20
• Aforementioned policy is divided into two parts. In the first part ofthe policy, the state aims to implement 17,360 MW of transmissionsystem-connected renewable power projects by 2025. This includes12,930 MW of solar power projects, 2,500 MW of wind energy projects,1,350 MW of co-generation projects, 380 MW of small hydro projects,and 200 MW of urban solid waste-based projects.
Energy SourcesCapacity
(MW)Authority
Solar Projects 12,930
Private Equity, Central Govt. Agencies Relevant Departments
Wind Projects 2,500
Co-Generation Projects based on Sugarcane Plantations/Agriculture residues 1,350
Small Hydropower Projects 380
Urban solid waste-based projects 200
Total 17,360
PlanCapacity
(MW)Authority
To develop Solar Power Generation Projects 10,000 Private Equity
GRID connected Rooftop Solar Projects 2,000 Central Govt.
Urban & Rural Water using Solar Energy 500 Private Equity
Supply of tap water using Solar pumps 30 Central Govt.
Create a farmer Co-operative Society/Company/Group and Provide Private Investment and Transmission system for Solar Energy Generation Projects
250
Private Equity or Agencies
For Solar/Wind Energy based projects with energy storage projects 50
Construction of Solar powered E-vehicle Charging Station 50
Establishment of Solar/Wind Hybrid Projects for Transmission 50
Total 12,930
The 12,930 MW of solar projects include 10 GW of standalone solar power projects, 2 GW of grid-connected rooftop solar projects, 500 MW of so-lar-based water supply projects, 250 MW of solar generation projects for farmers, among others. The details are furnished below:
Maharashtra Renewable Energy Policy: Transmission – Connected Renewable Energy Projects (Part-1)
Maharashtra Solar Policy: Breakdown of Solar-Energy Generation Component Under Part-1
��� ��������������������
21
As per the second part of the policy, the state plans to implement over Rs.780 million /annum worth of transmission-free projects. A transmis-sion-free project refers to power projects that are not connected to the grid.
These include 100,000 agricultural solar pumps, 52,000 kV of rooftop solar systems, 2,000 solar water supply stations, the electrification of 10,000 rural homes, micro grid projects for 20 homes, 55,000 square feet of solar water/solar cooking systems, and 800 solar cold-storage projects. The details are furnished below:
TripuraProjects Details Authorities
Annual Expenditure
Million (Rs.)
Million $
Rooftop or Ground –mounted Hybrid/Off-GRID Solar Projects 52,000 kV Private Equity, Central Govt, Agencies Relevant Departments Solar pumping station for water supply 2000 pumps
Solar Agriculture Pumps 1,00,000 pumps
Rural- Electrification Program 10,000 homes 380 5.19
Micro –GRID Project 20 homes 400 5.46
Solar Water Plants and Solar Cooking Systems 55,000 sq.ft.
Cold Storage Based on Solar Energy 800 systems
Total 780 10.65
Maharashtra Renewable Energy Policy 2020: Integrated Strategy for Transmission – Free Renewable Projects (Part-2)
Andhra High Court Interim stay on finalisation of tenders for solar
power projects
• A single-judge Bench of the Andhra Pradesh High Court, comprising Justice M. Ganga Rao, has stayed the finalisation of tenders pertaining to the solar power projects proposed to be developed by the State government for supplying free power to the farm sector till the next hearing on 15 February, 2021.
• The High Court of Andhra Pradesh has directed the Andhra Pradesh Green Energy Corporation (APGECL) to not enter into any agreements for its tender for 6.4 GW of solar power projects until further notice.
Andhra Pradesh
��� ��������������������
22
• The stay order follows an appeal filed by Tata Power Renewable Ener-gy on January 6 for stopping further process on APGECL’s request forselection (RfS) and draft power purchase agreements (PPAs).
• Tata Power argued that the dispute resolution mechanism providedfor in the Requests for Selection (RfS) and the draft Power PurchaseAgreements (PPAs) had an effect of defeating the jurisdiction of the APElectricity Regulatory Commission (APERC) under Section 63 of theElectricity Act.
• APGECL had floated the tender in early December to set up 6.4 GWof solar projects at ten locations in the state to supply power to agri-cultural consumers in the state. The state government had planned toinstall 10 GW to ensure nine hours of daytime free power supply to theagriculture sector on a sustainable basis. The program was proposedin February and approved in June.
• Selected bidders were expected to install 1,200 MW of solar pro-jects at Kambadur, 600 MW of solar projects each at Chakrayapet,Kambaldinne, Pendlimarri, Rudrasamudram, CS Puram, Uruchintala,Mudigubba and Kolimigundala, and 400 MW at Thondur.
• Earlier, the National Solar Energy Federation of India asked APGECLto extend the bid submission deadline for its tender for the project bythree months.
Safeguard Duty Reimbursement Only for Minimum Contracted
Solar Capacity in PPA: KERC
• Karnataka Electricity Regulatory Commission (KERC) with its Order dat-ed 31 Dec, 2020 has ruled that the imposition of Safeguard Duty (SDG) on imported solar cells and modules constituted a ‘change in law’ event. It said Fortum Solar India was eligible for claiming compensa-tion for the consequent increase in expenditure in implementing their solar projects following safeguard duty imposition.
• KERC has declined to compensate the company for carrying costs and the cost of additional solar modules procured to optimize the perfor-mance of the project.
• Fortum Solar India had filed petitions with the KERC seeking reim-bursement for the additional expenses from the Bangalore Electricity Supply Company, Hubli Electricity Supply Company, Chamundeshwari Electricity Supply Company, and the Mangalore Electricity Supply
Karnataka
��� ��������������������
23
Company.
• Fortum Solar India had signed power purchase agreements (PPAs)with all of these distribution companies (DISCOMs) for setting up 250MW of grid-connected ground-mounted solar projects. It had won theprojects in the Karnataka Renewable Energy Development Limited’stender for 650 MW at the Pavagada Solar Park in Karnataka. The tariffdiscovered for these projects was Rs. 2.85 /kWh.
• Shortly after the letter of approval (LoA) was issued, and PPAs weresigned, the Ministry of Finance imposed SGD on the import of solarcells and modules from China, Thailand, and Vietnam.
• Fortum Solar had petitioned KERC for a declaration that the impositionof SGD was a ‘change in law’ event.
• DISCOMs also countered that Fortum’s claims for reimbursement ofthe additional expenses could have been avoided if they had importedtheir modules from countries that do not attract SGD instead of sourc-ing them from China.
• After analyzing the submissions, KERC rejected the respondent’sargument that Fortum cannot seek relief under the ‘change in law’clause because they imported their components from China after theSGD was imposed. It reiterated that the imposition of SGD was indeeda ‘change in law’ event and that the developer could claim relief underthis clause of the PPA. It, however, ruled that carrying costs cannot beclaimed under the clause.
• However, KERC agreed with the contention of the DISCOMs that thedeveloper had imported more modules than was necessary for thegeneration capacity.
• The petitioners cannot opt to achieve higher Capacity Utilization Factor(CUF) merely by increasing solar modules, and the same is not a pru-dent practice. Instead, the petitioners should have opted for a sophis-ticated module that generates higher energy with lower degradation.Hence, while executing PPA, respondents herein obliged to purchasethe energy of minimum capacity from contracted capacity and notobliged to reimburse the safeguard duty on excess modules installedin their solar power project,
• KERC declared that it could not allow an SGD reimbursement on theadditional quantity of solar modules. The regulator directed the partiesto verify the amount payable to Fortum after examining the relevant
��� ��������������������
24
documents within two months. It directed the DISCOMs to pay this amount to the developer, spread evenly over the remaining period of the PPA and through an appropriate increase in the tariff. It also direct-ed the petitioner and the respondents to submit a supplementary PPA for approval.
West Bengal allows net metering for individual households and
Mandates Gross Metering for Rooftop Solar Systems Above 5 kW
• West Bengal Electricity Regulatory Commission (WBERC) has issued amendments to the Cogeneration and Electricity Generation from Re-newable Sources Regulations, 2013 on 21 December, 2020.
• In September last year, WBERC had published draft amendments to the regulations and invited feedback from stakeholders.
• According to an amendment, an eligible consumer means a consumer who has installed or proposes to install a rooftop system or any other mounting structure of 1 kW capacity or above to meet his require-ments or supply to the DISCOM on a net metering basis.
• Eligible consumers with sanctioned load demand up to 5 kW are al-lowed to set up rooftop solar systems with a net metering facility. Con-sumers (except agriculture consumers) with contract demand above 5 kW are to set up the system under the net billing (gross metering) arrangement.
• Further, the solar generating systems, which are already connected under the net-metering arrangement, should continue with the ex-isting accounting and settlement mechanism. There was no mention of consumers below the sanctioned demand of less than 5 kW in the earlier regulations. The clause was valid for a total installed capacity greater than 5 kW.
• All existing rooftop solar systems under the net metering arrangement will continue with the existing accounting. But in case an additional capacity is installed by the same consumer, their eligibility for net metering or gross metering will be considered afresh. Net metering is allowed for all agriculture consumers.
• Any excess energy injected from the rooftop solar system being more than 90% of the consumer’s energy consumption in each billing period should be carried over the next billing period within that year. Also, slab tariffs will be applicable for the net energy supplied by the licen-
West Bengal
��� ��������������������
25
see in a billing period if the power provided is more than the injected energy by the rooftop solar system.
• At the end of the year, if the total energy supplied by the licensee tothe consumer for that year is less than the energy injected by the roof-top solar system of that consumer, the licensee will not pay any chargeto the consumer for that net energy above 90% of the consumption.The same will be treated as an unwanted injection of electricity.
• According to the amendments, the solar RPO compliance should be85%. It can be met through non-solar sources beyond the specifiedsolar RPO. Similarly, non-solar RPO compliance should be 85%, withthe shortfall made up by excess solar energy.
• In this amendment, the renewable purchase obligation (RPO) target forthe years 2020-21 to 2022-23 has been mentioned below:
Financial Year
Renewable Purchase Obligation of Tata Power Consumption
Solar Non-Solar Total
2020-21 3% 9% 12%
2021-22 4.5% 10% 14.5%
2022-23 6% 11% 17%
Himachal Pradesh Sets Levelized Tariffs for Solar Projects Up to
5 MW for FY2020-21
• Himachal Pradesh Electricity Regulatory Commission (HPERC) hasissued generic levelized tariffs for solar projects (not exceeding 5 MW)for the financial year (FY) 2020-21 on 15 January, 2021.
• For determination of Tariff, HPERC considered the normative capacityutilization factor (CUF) as 21% in line with the Central Electricity Regu-latory Commission’s (CERC) norms. The auxiliary consumption of 0.75%was considered a separate component under the CERC norms, whichwas not the case in previous solar tariff orders.
• HPERC retained the useful life of solar projects at 25 years as per therenewable energy tariff regulations 2017. HPERC said that the genericlevelized tariffs were being determined in its latest order only for pro-curement of power by the distribution company (DISCOM) from solar
Himachal Pradesh
��� ��������������������
26
projects with capacities not exceeding 5 MW.
• HPERC stated that CERC had neither specified any benchmark fordetermining the normative capital cost for the solar PV projects nordetermined generic levelized tariffs in their tariff regulations, 2020. Ac-cordingly, the Commission decided to evolve its technology-specificparameters after taking into account the available inputs.
• Earlier last year, HPERC set the capital cost of the solar projects ofcapacity above 1 MW and up to 5 MW at Rs.38.63 million /MW for thelast six months of the financial year FY 2019-20. The capital cost con-sidered for the FY 2021-21 is Rs.37.905 million /MW.
• The operation and maintenance (O&M) charges for the FY 2020-21 wasset at Rs. 874,000 /MW, and these would be escalated at the rate of3.84% per annum over the tariff period. In FY 2019-20, it was taken asRs. 827,000 /MW escalated at the rate of 5.72% per year over the tariffperiod.
• HPERC approved the debt-equity ratio of 70:30 and the return on equi-ty at 14%.
• The depreciation rate for the first 15 years was considered 4.67%, andthe rate of depreciation from the 16th year onwards would be spreadover the balance of the useful life.
• For solar projects set up in areas other than industrial and urban areas,HPERC has set the tariff at Rs.3.41 /kWh which is 14% lower than theprevious year’s Rs. 3.98 /kWh for solar projects of capacity up to 1MW.
• For solar projects of capacity up to 1 MW set up in areas other thanindustrial and urban areas, the tariff is Rs.3.48 /kWh as compared toRs.4.06 /kWh last year. The generic levellised tariffs for Solar PV pow-er projects for FY 2020-21 shall be as under: -
Sr. No. Capacity Generic levelised tariff (Rs. Per kWh)
1 Projects to be set up in other than industrial areas and urban areas
(a) Upto 1.00 MW capacity 3.41
(b) Above 1.00 MW to 5.00 MW capacity 3.37
2 Projects to be set up in industrial areas and urban areas
(a) Upto 1.00 MW capacity 3.48
(b) Above 1.00 MW to 5.00 MW capacity 3.44
��� ��������������������
27
These tariffs will be governed by the following provisions:
• In cases where the joint petition for approval of power purchase agree-ment (PPA) has been submitted to the Commission on or after 01 April,2020, but no later than 31 March, 2021, the tariffs will be applicable forthe capacity commissioned on or before 31 March, 2022.
• In cases where the joint petition for PPA approval was submitted to theCommission on or before 31 March, 2019, the tariffs will be applicablefor the capacity commissioned during the FY 2020-21.
• These tariffs will not be applicable when the distribution licenseeprocures power through the Solar Energy Corporation of India (SECI)or competitive bidding. They will also not be applicable if the con-sumers install the solar projects within their premises (rooftop orground-mounted) under the net metering program.
��� ��������������������
28
1. The Union Budget for 2021-22 provided INR2,606 Crore for solar powersector, a 66.4% increase over previous year allocation.
2. Budget also provided Central Financial Assistance (CFA) for capacityaddition of 7,500 MW of solar power in 2021-22.
3. In view of ameliorating the viability of distribution companies (discoms),a revamped power distribution sector scheme would be launched witha financial outlay of more than Rs. 3 trillion crores over a 5-year period.The scheme would be targeted at infrastructure creation including pre-paid smart metering and feeder separation, upgradation of systems,etc.
4. To induce greater market competition, it was announced that a frame-work would be put in place which would enable electricity consumerswith the power to select an alternative out of >=2 discoms.
5. In succession to PM Narendra Modi’s announcement in November2020 related to launch of comprehensive National Hydrogen EnergyMission, it is now proposed to launch a Hydrogen Energy Mission in2021-22 for generating hydrogen from green power sources.
6. An additional capital infusion of Rs. 1,000 crores to Solar Energy Corpo-ration of India (SECI) and Rs. 1,500 crores to Indian Renewable EnergyDevelopment Agency (IREDA) was also announced.
7. In a bid to boost the indigenous solar manufacturing capacity, aphased manufacturing plan (PMP) for solar cells & modules will be no-tified. Additionally, as an immediate incentive (w.e.f 2nd February 2021),customs duty on solar inverters is raised from 5% to 20% and that forsolar lanterns or lamps from 5% to 15%.
8. Because of increase in duties for solar inverters, project costs will in-crease for rooftop/ small scale solar market. Utility scale solar projectswhere auctions are already completed will get a pass through under‘change in law’ condition.
9. Customs duty at 2.5% would be applicable for inputs, parts and sub-parts (other than Printed Circuit Board Assembly and Li-ion cell) forproduction of Li-ion battery and battery pack w.e.f. 1st April 2021.
Budget Highlights 2021-228.
��� ��������������������
Copyright (c) JMK Research & Analytics 2019
JMK Research & AnalyticsE: [email protected]
M: +91-7428306655
A: 27/2C, Palam Vihar, Gurgaon, Haryana-India W: www.jmkresearch.com
