Delhi resco model

Delhi’s Residential Solar Program Offers Guaranteed Payment Security to Installers
The program aims at rooftop solar installations under the RESCO model.

The Delhi government recently approved the Mukhyamantri Solar Power Program to give the necessary and required impetus to solar power and its adoption in Delhi. This program will apply to domestic (residential) sector consumers in Delhi.

The government recognizes the fact that the solar installations on government buildings and educational institutions are about 105 MW compared to the 5 MW installations so far in the residential segment. To bridge this gap and realize the concept of “Solarize Delhi” under the Delhi Solar Policy 2016, the government realizes this huge untapped potential has to be utilized.

According to the government, a good part of solar power potential in the residential segment is on the rooftops of approximately 1,990 registered co-operative group housing societies in Delhi that have shown interest in installation under the RESCO model. But due to lack of payment security mechanism, rooftop installers were reluctant to offer their services resulting in power rates in societies remaining higher in comparison to rates for government buildings.

The Ministry of New and Renewable Energy (MNRE) has approved 40 MW of grid-connected rooftop solar projects for the domestic/institutional/social segment for Delhi under its subsidy  schemes, allowing award of work order within six months and project completion time of 15 months from the date of approval.

To attract more installers under the RESCO model and for better financing to developers, the government recognized the need for a bankable PPA and guaranteed payment security mechanism for installers. In tenders for government buildings it was observed that more installers’ participation with better financing options lead to competitive rates. In a good tender, the government noticed that the levelized rates for 50 kW or more capacity would come down. Considering a three percent annual escalation in solar tariff, with a Generation Based Incentive (GBI) of ₹2.00 ($0.029)/kWh, the solar tariff could be in the range of ₹1.00-1.50 ($0.014-0.021)/kWh in initial years. In tenders for government buildings, levelized tariff discovered in Indraprastha Power Generation Co. Ltd. (IPGCL) tenders were ₹3.30-3.64 ($0.047-0.052)/kWh for solar capacity above 50 kW. With this background and research, the Delhi government has launched the program.

Key Highlights of the Program:

This program will target group housing societies (GHS).
There will be emphasis on RESCO model of solar installation for larger installations.
GBI is extended for a period of five years starting from 2019-20. It will also cover solar installations in residential sector including GHS; both for existing solar installation and new installations for which MNRE approval has been obtained.
For a typical solar power project, this will amount to GBI payment of ₹13,000 (~$186)/kW in five years. This payment will amount to 22-25 percent of benchmark costs.
GBI disbursement will be made on half-yearly basis so that consumers have government support in form of GBI in the first year of solar installation without affecting the matter of quality.
The instrument of GBI will also be used as the payment security mechanism. In case a consumer fails to make payment to the installer, GBI may be passed on to the installer.
This payment security mechanism for five years will be applicable to RESCO model.
The new GBI will also cover already installed solar plants till new tenders are finalized. Such installation will be allowed GBI benefits for five years period from the date of installation.
IPGCL will be the bid coordinator on behalf of power department.
The new policy has drawn its elements from some of the best practices of Madhya Pradesh Urja Vikas Nigam Limited (MPUVNL)’s auction to develop 35 MW of grid-connected rooftop solar under RESCO model.

Payment security guarantee by Delhi government will make a strong case for better financing to intallers which in turn can benefit consumers. As an effect of the existence of payment security mechanism, the rates can fall below Average Power Purchase Cost (APPC) and in such cases the customers will be further incentivized to install solar systems beyond the sanctioned load.

The Delhi government has been making various strides for the expansion of renewable energy in meeting its energy requirements and to combat the deteriorating air quality. Recently, the Delhi government also approved Mukhyamantri Agriculture-cum Solar Farm Program to increase farmer’s income and achieve the state’s solar target as per the Delhi Solar Policy 2016.

Kerala under ipp mode

200 MW of Solar Projects to be Developed in Kerala under IPP Mode
Kerala State Electricity Board had filed a petition seeking approval for the projects to meet its RPO.

The Kerala State Electricity Regulatory Commission (KSERC) has approved the petition filed by the Kerala State Electricity Board (KSEB) seeking its nod for 200 MW of solar photovoltaic (PV) projects to be developed in Kerala on Independent Power Producer (IPP) mode.

KSEB had sought the approval as it wants to procure solar to meet its Renewable Purchase Obligation (RPO).

KSEB had proposed the following deviations from the bidding guidelines issued by the Ministry of Power:

To set the minimum capacity as 1 MW instead of 5 MW.
Regarding land acquisition, KSEB wanted the 12-month period to begin after the issuance of Letter of Award (LoA) instead of the date of Power Purchase Agreement (PPA).
Ceiling tariff for the projects to be ₹3.50 (~0.04952)/kWh.
To introduce a review option: After a period of 15 years from the commercial operating date (COD) of the project, the minimum capacity utilization factor (CUF) to be reviewed based on past performance and be brought down up to 14 percent to take care of panel degradation.
No payment security mechanism.
The solar power generator has to attain the financial closure within 12 months from the date of issuance of Letter of Acceptance instead of the date of execution of the PPA.
The project to be commissioned within a period of 21 months from the date of Letter of Acceptance instead of the date of execution of the PPA.
While examining the petition and submissions made by KSEB, the KSERC opined, “It is a fact that KSEB is far short of achieving the fixed solar RPO targets. As an obligated entity, KSEB has to meet the RPO targets either by its own generation or by procuring solar power from the sources within or outside the state. Hence, KSEB can take steps to procure power from solar projects within the state or outside.”

Keeping in mind the scarcity of land in Kerala, the commission approved the minimum capacity for 1 MW for the solar project at a single location. KSERC also approved setting ₹3.50 (~0.04952)/kWh as the tariff ceiling for solar tender by KSEB. The commission also approved a panel degradation rate of 0.5 percent/annum over the contracted CUF specified in the bid documents, limiting the range of CUF after 15 years between 14.8 percent to 17.58 percent.

KSERC declined KSEB’s proposal to revise period of land acquisition, financial closure, and the commissioning schedule. Instead, it ordered KSEB to follow the Ministry of Power guidelines in these matters. The commission ordered the KSEB to provide at least one mode of payment security mechanism prescribed in the standard bidding guidelines for procurement of 200 MW solar PV.

In February 2018, KSERC approved ₹3.90 (~$0.062)/kWh as the interim tariff for the electricity supplied from the 50 MW Kasargod Solar Park set up in Ambalathara village of Kasargod district.

After a long gap, states have now been securing approval from their respective regulatory commissions to issue tenders for procuring solar. Recently, the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) tendered 500 MW of grid-connected solar photovoltaic (PV) projects. The bid-submission deadline is December 27, 2018.

Hartek power for 400 kv power grid

Hartek Power bags 400-KV power grid order
The project would spread over three states encompassing Uttar Pradesh, Haryana, and Rajasthan.

New Delhi: Hartek Power, the engineering procurement construction (EPC) arm of the Chandigarh-based Hartek Group, has bagged a 400-kilovolt (KV) substation project from Power Grid Corporation of India Ltd (PGCIL).

The project would spread over three states encompassing Uttar Pradesh, Haryana, and Rajasthan. It will cater to a population of about seven crore and is scheduled for completion by February 2020, the company said.

The scope of work of the project entails complete execution of the substation package involving the conversion of fixed-line reactors into switchable line reactors with the purpose of curtailing outages.

PGCIL is heavily investing in upgrading low- and high-voltage substations to extra-high-voltage substations to ease pressure on transmission lines caused by rapid surges in electricity flow.

Merc ppa for solar project

MERC Approves PPAs for Solar Projects Totaling 235 MW in Maharashtra
Projects are being developed under Mukhyamantri Saur Krishi Vahini Yojana.

The Maharashtra Electricity Regulatory Commission (MERC) has approved power purchase agreements (PPAs) for grid-connected solar photovoltaic (PV) projects totaling 235 MW.

MERC reviewed a petition filed by Maharashtra State Electricity Distribution Company Limited (MSEDCL) regarding approval for the long-term procurement of 235 MW of solar power under Mukhyamantri Saur Krishi Vahini Yojana with a set of 2 to 10 MW capacity projects connected in order to meet MSEDCL’s solar Renewable Purchase Obligation (RPO).

In April 2018, MSEDCL tendered 1 GW of solar PV projects to be developed under the Mukhyamantri Saur Krishi Vahini Yojana. During financial bid, MSEDCL received bids for 285 MW of cumulative solar capacity and rates ranged from ₹3.09 (~$0.044)/kWh to ₹3.30 ($0.047)/kWh.

MSEDCL later negotiated with the bidders to reduce their tariff rates. As a result, bidders submitted a revised tariff rate of ₹3.15/kWh. MSEDCL found the rates quoted by the bidders up to ₹3.15/kWh at 11 kV level to be financially viable and economical along with the benefits of distributed generation, and approved the submission. The weighted average of the tariff is now ₹3.13 (~$0.044)/kWh.

Upon  query  about  increase  in the tariff  rate  as  against  approved  by  MERC of ₹2.72 (~$0.038)/kWh, MSEDCL stated  that  the  reason  for  increase  in  tariff  from  ₹2.72 (~$0.038)/kWh  to  ₹3.13 (~$0.044)/kWh  is because  of  the   geographic  spread   and  smaller  size  of  the projects.  Secondly,   the  earlier  rates  were  at  the  distribution  periphery  and  exclude  the transmission and distribution  losses  up to  11 kV  level.  Lastly, all the solar projects would be located within the state with social benefits although with minimal additional cost.

While examining the submission made by MSEDCL, MERC noted that the due process for the procurement of solar power had been followed by the DISCOM, and that the submitted tariff rates are within the range of the previously approved tariff rates by MERC, considering the transmission and distribution losses, project size and the geographic spread.

MERC opined that the submitted rates were competitively obtained and were twice negotiated, and also stated that the solar power procured from these projects will count towards the fulfilment of MSEDCL’s solar RPO.

Recently, MERC approved the initiation of a district (circle) wise competitive bidding process for the procurement of solar power under Mukhyamantri Saur Krishi Vahini Yojana. MERC approved the ceiling rate of ₹3.10 (~$0.044)/kWh, an increase in the maximum capacity limit from 50 MW to 100 MW for each district.

Shapoorji pallonji seci 50 MW floating solar

Shapoorji Pallonji Wins SECI’s 50 MW Floating Solar Auction Quoting ₹3.29/kWh
The floating solar project will be developed at the Rihand Dam in Uttar Pradesh.

Shapoorji Pallonji, one of India’s leading renewable energy project developers, has won the bid to develop 50 MW of floating solar project in Uttar Pradesh.

This 50 MW project is part of the tender that was floated by the Solar Energy Corporation of India (SECI) for 150 MW (50 MW x 3) of grid connected floating solar power projects at Rihand Dam (also known as Govind Ballabh Pant Sagar Reservoir), located in Sonbhadra district of Uttar Pradesh. The projects were tendered by SECI in March 2018.

Talking to Mercom, a SECI official said, “Renew Power and Shapoorji Pallonji have bid for the 50 MW capacity for package B.”

He added, “The price discovered in the auction is ₹3.29 (~$0.046)/kWh. The auction for the remaining 100 MW capacity for package A and package C will be intimated separately.”

SECI had fixed ₹3.32 (~$0.047)/kWh as the upper tariff ceiling for this tender. The successful developers will enter 25-year power sale agreements with Uttar Pradesh Power Corporation Limited (UPPCL). In the tender, SECI had also specified that a single bidder can bid for a minimum 50 MW and a maximum 150 MW.

Recently, answering some of the questions raised by bidders during the pre-bid meeting, SECI had said that solar power developers will have to get the required transmission line constructed by Uttar Pradesh Power Transmission Corporation Limited (UPPTCL) on a depository work basis and will have to procure the final cost from the UPPTCL directly.

This floating solar project has seen multiple bid submission deadline extensions.

Talking to Mercom, a SECI official said, “We made some amendments in the main tender document. The earlier RfS has been revised due to high tariffs. The developers quoted higher tariff as UPPCL did not have a good credit rating. Now, to address this, SECI will be the intermediary procurer and UPPCL will sign a Power Sale Agreement (PPA) with SECI.

Meanwhile, recently, Mercom reported that SECI’s the 1.2 GW ISTS-connected wind-solar hybrid power projects (tranche-I) tender was undersubscribed by 150 MW.

SECI 1,000 MW tender proposal

The government has asked Solar Energy Corporation of India (SECI) to bring tenders of 1,000 MW every month, beginning from November 2018 till February 2019
SECI is the only Central Public Sector Undertaking (PSU) involved in the solar energy sector. It works under the Union Ministry of New & Renewable Energy (MNRE).
This directive is intended to help the country bridge the gap between current share of renewable energy in its energy mix and the targets under Paris agreement
The Solar Energy Corporation of India (SECI) has also started tendering, and allocation under the Inter-State Transmission System (ISTS) scheme, wherein projects are planned for connections with the ISTS grid directly,” a CRISIL research report stated. Further, it said that SECI has allocated 5 GW to the grid and another 3 GW is in the tendering phase.
The report also mentioned that the government has announced a 2.5 GW solar-wind hybrid scheme to facilitate higher utilisation of resources

Oman 500 MW solar projects

Oman’s 500 MW Solar Project Attracts Bids from Three International Consortia
Projects likely to be awarded in early 2019.

The Oman Power and Water Procurement company (OPWP) has announced that it has received bids from three international consortia for the development of 500 MW large utility scale solar PV Independent Power Project (IPP) located at Ibri.

The Request for Proposals (RFP) for the development of Ibri II Solar IPP was issued on June 4, 2018.  Mercom had reported earlier about OPWP’s Request for Qualification (RfQ) for a 500 MW utility-scale solar project in the country. The plant is expected to generate enough power to supply 33,000 homes and offset 340,000 tons of carbon dioxide emissions each year.

The project was announced last year in December by OPWP, a member of the Nama group. It will be developed under Build, Own and Operate model by the private sector.

Abu Dhabi Future Energy Company PJSC (Masdar), Total Solar, and Jinko Power (HK) Company Limited have formed a consortium to bid for the project.

Another alliance consists of Saudi Arabia-based International Company for Water and Power Projects (ACWA Power), Gulf Investment Corporation (GIC), and Alternative Energy Projects Company (AEPC).

The third group is formed of Japanese conglomerate Marubeni Corporation, Oman Gas Company (OGC), Qatar-based Nebras Power, and Bahwan Renewable Energy Company.

“The evaluation of the received bids is currently underway and OPWP expects to finalise the award by early next year,” said OPWP in a statement.

It added that the project is planned to achieve commercial operation by June 2021.

Recently, Merom reported that OPWP has initiated the process for the second utility scale solar PV project to be connected to the main interconnected system in Oman. The project, with a capacity between 500 MW to 1,000 MW, will be known as Solar 2022 IPP. OPWP had sought proposals from interested bidders to provide technical consultancy services for the development of the project and to advice on the competitive tendering of the project.

Renewable power electricity output

Renewable power has a 10% share in India’s electricity output: Report.

Moneycontrol News

India has achieved a milestone in its journey to realise its ambitious targets in clean energy production and usage. Renewable power units, including solar and wind energy, had a 10 percent share in India's electricity output in April-October 2018, reported The Financial Express.

Total installed power capacity of renewable energy has also grown from 14 percent in FY15 to over 20 percent in the current fiscal.

The United Nations Framework Convention on Climate Change signed in Paris in 2015 dictates that India has to up its share of non-fossil power in installed capacity to 40 percent by 2030.

The Centre aims to achieve 175 gigawatts (GW) of renewable energy capacity by 2022. This would include 100 GW from solar energy, 60 GS from wind, 10 GW from biomass and 5 GW from small hydroelectric projects.

Electricity generated by green resources registered a compound annual growth (CAGR) of 18.2 percent between FY15 and FY18 in India. Conventional power production only saw a 4.8 percent CAGR in the same period.

Solar power capacity addition this year was twice the net addition in the coal-based power sector. Solar capacity shot up by 95 percent in 2017, whereas high-emission energy capacities added that year were 75 percent less than the previous year.

The reason renewable energy is going strong is India's commitment to cut its carbon footprint, reduced prices of solar power tariffs and active power schemes in the country, according to experts.

As the solar module prices tanked and technology improved, solar power tariffs fell from Rs 17 per unit in 2009 to just Rs 2.44 per unit in July 2018. The sector has also become very competitive.

There is an underlying worry about the viability of such low rates, as overall project costs will increase after import duties on solar modules.

On the other hand, states may not be as willing to implement solar energy resources in their infrastructure if it is not cheaper than the conventional resources.

The government has put a 25 percent safeguard duty on import of solar cells to help domestic manufacturers for a year till July 19, 2019.

Solar solutions simpa energy

Engie Acquires 90 Percent Stake in Solar Solutions Provider Simpa Energy
Simpa sells solar power systems on financing to households and shops in rural India.

ENGIE, a global independent power producer (IPP), has acquired a 90 percent stake in Simpa Energy, from its parent company Simpa Networks, a distributed energy solutions provider with pay-as-you-go pricing model to households and businesses.

Through the ENGIE Rassembleurs d’Énergies investment fund, the group supports community initiatives in India. The aim is to help local population have sustainable access to clean energy. ENGIE has invested in the social enterprise Simpa Networks, which provides individual photovoltaic panels for the poorest homes in the Delhi region. ENGIE Rassembleurs de Energies was an early investor in Simpa but the current transaction is with the main commercial business.

Per a Press Trust of India (PTI) report, ENGIE is investing to fund geographic expansion and accelerate growth. The move reinforces ENGIE’s commitment to decentralized renewable energy solutions globally and supports India’s rapid transition to clean power.

Simpa sells solar power systems on financing to households and shops in rural India. Customers make a small initial payment to have the solar PV system installed, then it’s simply pay-as-you-go for the electricity. Simpa mimics the compelling pricing model of pre-paid mobile phones. But there’s an important twist: These small payments for energy service also add up towards the total purchase price and, once fully paid, the customer owns the system, enjoying clean, reliable, electricity for free.

This acquisition fits perfectly into our strategy to be close to the customer in distributed energy and to be present in the ‘Access to Energy space. Simpa has an innovative business model with sound products in a huge untapped market so offering real growth potential.

In India Engie currently has some 800 MW of utility scale solar projects (around 330 MW under construction) and 280 MW of utility scale wind (all committed in final development or construction). Engie can trace its presence in India back more than 20 years and we are open to other inorganic opportunities where they make sound business sense.

“This acquisition fits perfectly into our strategy to be close to the customer in distributed energy and to be present in the ‘Access to Energy space. Simpa has an innovative business model with sound products in a huge untapped market so offering real growth potential,” Malcolm Wrigley, the country manager of Engie India said.

In India, Engie currently has some 800 MW of utility scale solar projects (around 330 MW under construction) and 280 MW of utility scale wind (all committed in final development or construction).

The acquisition of Simpa also resonates ENGIE’s commitment to provide clean energy to people in economically weak and under developed areas. In April 2018, ENGIE completed 100 percent acquisition of Fenix International, a next generation energy company that offers solar home systems (SHS) in Africa.

ENGIE has been gradually increasing its investments in India’s renewable energy sector. In September 2018, ENGIE and STOA, a French infrastructure and investment firm, announced a joint-venture (JV) to build a wind platform in India. The platform, with 50-50 partnership, has set a goal of establishing over 2 GW of wind energy capacity in the next five years.

According to a report by the Global Off-Grid Lighting Association (GOGLA), India has emerged as the world’s largest cash market for off-grid solar products, with 1.3 million products sold in H1 2018 alone.  This accounts for an impressive 44 percent of global sales.  Over 3.7 million off-grid solar products were sold globally during the first half (H1) of 2018, an increase of four percent in comparison to the same time last year.

Uttar Pradesh net metering rooftop solar project

Uttar Pradesh Releases New Draft Regulations for Net Metering of Rooftop Solar Projects
Consumers can set up rooftop solar projects of up to 2 MW.

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has issued new regulations for net metering provisions for rooftop solar projects in the state.

The regulations, called RSPV Regulations 2019, will come into force from the date of their notification in the official gazette.

These regulations will apply to the distribution licensees (DISCOMs), eligible consumers of the DISCOMs, and third-party owners of gross-metering arrangement of rooftop solar PV systems in Uttar Pradesh.

Key Highlights

Eligible consumer can install the rooftop solar PV system under either gross-metering arrangement or net-metering arrangement.
Third-party owners who have entered into a commercial agreement for the rooftop in the premises of the consumers will be entitled to install rooftop solar projects under gross-metering arrangement with the DISCOM for a capacity equal to the cumulative capacity of the prescribed limits of rooftop solar PV capacity for each eligible consumer.
Third-party owners who have entered into a lease or commercial agreement for the rooftop in the premises of a group of consumer, will also be entitled to install rooftop solar PV system under net-metering arrangement with the DISCOM.
Eligible consumer or third-party owner availing gross-metering arrangement will not be allowed to apply for net-metering arrangement within the same premises. The same will hold true for net-metering consumers.
If the consumer or third-party owner installs solar rooftop under gross-metering, the entire power generated will be injected to the distribution system of the DISCOM at the interconnection point.
If the eligible consumer installs solar rooftop system under net-metering, eligible consumer will be entitled to use the power generated from the project at their premises. The surplus power can be injected to the distribution system of DISCOM at the interconnection point.
To provide flexibility to rooftop solar power prosumer, a provision of mutual sale and purchase of electricity through peer-to-peer transaction with proper accounting and billing mechanism (implemented with the help of blockchain technology) has now been provided.
The capacity of the rooftop project to be installed will not be less than 1 kW and will not exceed 2 MW.
State authorities can undertake rooftop solar projects above 2 MW capacity through alternative mechanisms.
Any consumer claiming accelerated depreciation benefits on the rooftop solar projects will only be eligible to avail net-metering arrangement.
Both net-metering and gross-metering of the electricity generation by a consumer, which is not an obligated entity, will qualify towards compliance of renewable purchase obligation (RPO) for the DISCOM.
Talking to Mercom, a UPERC official said, “This was long due as the regulations of 2015 have already expired and new amendments have now been made to accommodate new developments in the country’s rooftop solar PV sector.

Recently, in a landmark order, UPERC allowed net metering for a 3.34 MW rooftop solar photovoltaic (PV) project in Greater NOIDA, Uttar Pradesh. The UPERC was responding to a petition filed by Gautam Buddha University, Greater NOIDA.

Mercom had reported in recently that net metering policy continues to be a drag on India’s rooftop solar sector. One of the larger hurdles is system size as most states have an upper limit (usually 1 MW) on the size of a rooftop solar project. Although a 1 MW rooftop project is relatively large, the size limit sidelines a large number of commercial and industrial consumers from installing rooftop solar to meet their power needs.

Sukhbir agro solar auction

Sukhbir Agro Quotes ₹3.25/kWh to Win 10 MW Solar Auction for Noida Metro
Hero Future Energies, Sterling & Wilson and AMP Solar were the other bidders who could not win at the auction.

Lowest tariff of ₹3.25 (~$0.04471)/kWh emerged as the winning bid in the auction conducted by the Delhi Metro Rail Corporation (DMRC) for 10 MW of grid-connected solar photovoltaic (PV) projects on behalf of the Noida Metro Rail Corporation (NMRC).

Sukhbir Agro emerged as the winner by quoting the lowest tariff to develop the entire 10 MW capacity. When contacted, a DMRC official told Mercom, “Yes, the capacity has been awarded to Sukhbir Agro which quoted ₹3.25 (~$0.04471)/kWh. Overall, there were four participants including the winning bidder.”

Sukhbir Agro’s deputy general manager Sumit Sood further informed, “Hero Future Energies, Sterling & Wilson and AMP Solar were the other bidders.”

Sood also said that the firm has entered into a 25-year power purchase agreement (PPA) with NMRC at a tariff of ₹3.25 (~$0.04471)/kWh.

While 4 MW of the total capacity will be developed atop NMRC depots and metro stations, adjacent buildings and foot over-bridge (FOBs), another 3 MW will be developed on internal roads of depots and boundary walls. Moreover, a capacity of 3 MW will be installed over parking and viaducts.

The estimated cost of the project is approximately ₹600 million (~$9.33 million). DMRC had tendered the capacity in February 2018.

Of late, DMRC has been working towards reducing its carbon footprint by shifting its focus on renewable energy. The tactical shift to green forms of power are a sigh of relief for the national capital, which is reeling under the menace of choking air pollution.

Other recent efforts to raise DMRC’s solar capacity include a December 2017 tender issued by the organization for the development of 8 MW of grid-connected rooftop and ground-mounted solar PV projects at various DMRC sites in the national capital. In July 2017, DMRC also tendered a 2.2 MW rooftop solar project to be developed at its premises.

According to Mercom’s India Solar Project Tracker, DMRC has a total installed solar capacity of 17.45 MW to date.

As reported previously by Mercom, Azure Power is already developing a 14 MW rooftop solar project for DMRC and, in April 2017, Rays Power Experts commissioned a 5.5 MW solar rooftop project for the organization.

Solar auction result NMRC

Sukhbir Agro Quotes ₹3.25/kWh to Win 10 MW Solar Auction for Noida Metro
Hero Future Energies, Sterling & Wilson and AMP Solar were the other bidders who could not win at the auction.

Lowest tariff of ₹3.25 (~$0.04471)/kWh emerged as the winning bid in the auction conducted by the Delhi Metro Rail Corporation (DMRC) for 10 MW of grid-connected solar photovoltaic (PV) projects on behalf of the Noida Metro Rail Corporation (NMRC).

Sukhbir Agro emerged as the winner by quoting the lowest tariff to develop the entire 10 MW capacity. When contacted, a DMRC official told Mercom, “Yes, the capacity has been awarded to Sukhbir Agro which quoted ₹3.25 (~$0.04471)/kWh. Overall, there were four participants including the winning bidder.”

Sukhbir Agro’s deputy general manager Sumit Sood further informed, “Hero Future Energies, Sterling & Wilson and AMP Solar were the other bidders.”

Sood also said that the firm has entered into a 25-year power purchase agreement (PPA) with NMRC at a tariff of ₹3.25 (~$0.04471)/kWh.

While 4 MW of the total capacity will be developed atop NMRC depots and metro stations, adjacent buildings and foot over-bridge (FOBs), another 3 MW will be developed on internal roads of depots and boundary walls. Moreover, a capacity of 3 MW will be installed over parking and viaducts.

The estimated cost of the project is approximately ₹600 million (~$9.33 million). DMRC had tendered the capacity in February 2018.

Of late, DMRC has been working towards reducing its carbon footprint by shifting its focus on renewable energy. The tactical shift to green forms of power are a sigh of relief for the national capital, which is reeling under the menace of choking air pollution.

Other recent efforts to raise DMRC’s solar capacity include a December 2017 tender issued by the organization for the development of 8 MW of grid-connected rooftop and ground-mounted solar PV projects at various DMRC sites in the national capital. In July 2017, DMRC also tendered a 2.2 MW rooftop solar project to be developed at its premises.

According to Mercom’s India Solar Project Tracker, DMRC has a total installed solar capacity of 17.45 MW to date.

As reported previously by Mercom, Azure Power is already developing a 14 MW rooftop solar project for DMRC and, in April 2017, Rays Power Experts commissioned a 5.5 MW solar rooftop project for the organization.

SITC grid connected roof top 100 kw

SITC of Design based Grid connected Roof Top Mounted 100 KWp Flexible Solar Photo Voltaic Power Plant on Terminal Building under CAPEX Model at Pune Airport Pune

Tender Value in Rs.: 1 Crores 23 Lakhs 48 Thousand

BHEL 120 mw hydro power

Bharat Heavy Electricals Limited (BHEL), the country's largest power equipment manufacturer, today announced it has commissioned a 120 Megawatt (Mw) hydro power in Telangana with the completion of its fourth and final 30 Mw generating unit.

Located in Suryapet district of Telangana, the Pulichintala greenfield project has been set up for Telangana State Power Generation Corporation Limited (TSGENCO) on the river Krishna. 

Power generation from Pulichintala HEP will contribute significantly to the reduction of greenhouse gas emissions towards achieving a low carbon development path for the nation, the company said in a statement. 

The scope of the order included the execution of Electro-Mechanical (E&M) package for the project comprising supply and supervision of erection and commissioning of four sets of Vertical Kaplan Turbines and Generators of 30 MW capacity each and the associated auxiliary equipment. 

The equipment for the project was manufactured and supplied by BHEL’s units at Bhopal, Jhansi, Rudrapur, and Bengaluru, while the erection and commissioning on site was supervised by the company’s Power Sector Southern Region construction division. 

BHEL has commissioned hydro power projects of 1,073 Mw capacity in Telangana so far. The company is also executing 40 Pump-Motor sets of 5,356 Mw, including Palamuru Rangareddy LIS Stage - 2 and 3 of 2,610 Mw, in the state. 

The engineering giant is currently executing hydro projects of over 2,700 MW capacity across the country apart from 3,904 Mw projects being executed overseas. This includes 2,940 Mw in Bhutan and 900 Mw in Nepal which are under implementation.

MSEDCL 32 MW solar power plant

MSEDCL proposes to set up 32 Mw solar power plants in 6 villages.

Nashik superintendent officer PM Daroli has proposed to launch the scheme in six villages where 31.7 Mw of power is expected to be produced and sold to the farmers.

New Delhi: The Nashik urban division of Maharashtra State Electricity Distribution Corporation Limited (MSEDCL) has proposed setting up of solar power plants generating 31.67MW electricity in rural areas under the Chief Minister Solar Agriculture Feeder Scheme in which farmers will get power during the day for their agriculture needs.

Nashik superintendent officer PM Daroli has proposed to launch the scheme in six villages where 31.7 Mw of power is expected to be produced and sold to the farmers. “We have entered into an agreement with these six villages where they have agreed to give us the land. The power plants will be raised on the land and the power generated would be sold to the farmers,” Daroli said.

Since power will be produced, transmitted and utilised in the vicinity, there will be very few losses in distribution, no power thefts as the system will be monitored and best of all is that the power with full strength would be available across the day time when the farmers need it the most.

Currently, first two of the projects providing solar power needs have been raised in MSEDCL’s space and they are generating and supplying power. The number of such solar-powered agriculture feeders is set to go up multi-fold.

While the space with the MSEDCL is limited, the company decided to take the land from the gram panchayats so that the power such generated would be utilised by the farmers in the area.

“The villagers have offered their grazing grounds for the project. The MSEDCL and the villagers have entered into an agreement for the use of land for the purpose. The agreement copies have now been sent to the district collector’s office which will take note of the same and grant permission for the change in use purpose,” another senior official said.

After this ‘change in use’ purpose is granted the construction of the solar power plants will begin, the officer said.

The projects are likely to get the permission from the collector by the middle of November after which the solar project is likely to take off.

The highest numbers of power plants are in Dindori taluka – the hilly areas where the water is too deep for the people to lift it.

“Currently, in tribal areas there is very little rabi crop apart from the kharif crop because of lack of water. Now, the solar agriculture pumps will help people opt for multiple produces in a year,” he added.

DEWA 250 MW project

DEWA adds 250 MW of PV to 700-MW CSP project in Dubai.

Dubai Electricity and Water Authority (DEWA) announced last week it will expand its 700-MW concentrated solar power (CSP) project in Dubai with an additional 250-MW solar photovoltaic (PV) component.

The project represents the fourth phase of the 5-GW Mohammed Bin Rashid Al Maktoum Solar Park that combines CSP and PV technologies. DEWA said in a press release on Friday it has signed an amendment to the power purchase agreement (PPA) with the tie-up led by ACWA Power, which in September 2017 won the tender to build the 700-MW CSP park with a bid of USD 0.073 (EUR 0.064) per kWh.

Power from the 250-MW solar plant will be supplied at just USD 0.024 per kWh, which DEWA says is the lowest in the world.

In addition to the newly-added 250 MW of solar power capacity, phase IV of the Mohammed bin Rashid Al Maktoum complex will consist of a 100-MW central tower CSP technology and three 200-MW facilities of parabolic trough CSP technology, and will also have molten salt energy storage. The total capacity of the complex will reach 950 MW, calling for an investment of AED 16 billion (USD 4.36bn/EUR 3.82bn). The consortium behind the scheme includes DEWA, ACWA and China’s Silk Road Fund.

The development of the Mohammed bin Rashid Al Maktoum project will involve a total investment of AED 50 billion. The first phase, of 13 MW, was switched on in 2013. Phase II, with capacity of 200 MW, was brought online in March 2017, while the 800-MW phase III will be commissioned by 2020.

(USD 1.0 = EUR 0.878)

(AED 1.0 = USD 0.272/EUR 0.239)

HERC procurement 300 MW solar power

HERC Approves Procurement of 300 MW of Solar Power Through Competitive Bidding
The procurement is meant to relieve the backlog of RPO compliance.

The Haryana Electricity Regulatory Commission (HERC) has issued an order approving the deviations to the terms of competitive bidding, the conditions of request for proposal (RfP) and the draft power purchase agreement (PPA) for 300 MW of solar projects by the Haryana Power Purchase Centre (HPPC).

In its petition, the HPPC stated that the procurement of solar power through competitive bidding has been proposed to relieve the backlog of renewable purchase obligations (RPO) compliance. HPPC had submitted a revised RfP along with a draft PPA, prepared in line with the guidelines for the tariff-based competitive bidding process.

HPPC had proposed the inclusion of a line of credit for a term of 12 months, renewed annually. The renewal amount will be equal to the estimated average monthly billing for the first contract year. For subsequent years, the amount will be equal to the average of the monthly billing of the previous contract year.

HPPC had suggested 210 days for the financial closure of the project after entering into a PPA with the solar project developers.

HPPC’s proposal had mandated that the procurement be composed of two categories. Under Category I, 240 MW of cumulative capacity will be procured, with project minimum capacity of 3 MW and a project maximum capacity of 240 MW. Under Category II, 60 MW of cumulative capacity will be procured and will have projects with a minimum capacity of 1 MW and a maximum capacity of 2 MW.

HPPC had also asked that the solar project developers bear the entire cost of transmission.

In reviewing the petition, HERC observed that the power will be procured by HPPC through competitive bidding and therefore it can impose procurement conditions based on deviations from previous regulations.

Recently, HERC approved deviations in the terms of PPA for the procurement of power by HPPC from a 10 MW solar PV project developed by the Haryana Power Generation Corporation (HPGCL).

In July 2018,  HERC issued an order amending the terms and conditions for tariff determinations from renewable energy sources, renewable purchase obligations, and renewable energy certificates.

NTPC floats tender for 1.2 GW

NTPC Floats Tender for 1.2 GW of ISTS-Connected Solar Projects in Maharashtra
Minimum bid capacity fixed at 50 MW and maximum at 600 MW.

The National Thermal Power Corporation (NTPC) has tendered 1,200 MW of interstate transmission system (ISTS)-connected solar photovoltaic (PV) projects to be developed in Maharashtra. The bid-submission deadline is December 19, 2018. The technical bids will open on December 20, 2018.

When contacted, an NTPC official informed Mercom, “The minimum bid capacity is 50 MW and the maximum a single bidder can bid for is 600 MW. There is no upper tariff ceiling for this tender.”

The grid-connected solar PV projects will be developed on build own operate (BOO) basis. The NTPC has stated that the projects will be developed near NTPC switchyards in the western region of Maharashtra. The scope of work includes the design, engineering, manufacturing, supply, packing and forwarding, transportation, unloading, storage, installation, and commissioning of grid-connected ISTS-connected solar PV projects.

NTPC tenders do not come with any fixed upper tariff cap in contrast to SECI’s prevalent policy of imposing tariff caps on tenders and yet have been able to generate huge participation from the developers leading to competitive bids that SECI has been aiming to achieve.

Mercom reported earlier that SECI has decided to raise the upper tariff ceilings for two of its mega tenders which had failed to garner adequate response from bidders in the past.

Even the Solar Projects Developers Association (SPDA) had recently written to the government cautioning against upper tariff caps for solar tenders. In a letter addressed to the Union Power Minister R.K. Singh, the SPDA raised its concern saying that the decision to cap tariffs needs to be reversed because it is likely to make solar projects unviable. Elaborating further, the letter explained that bids are determined keeping in consideration a range of issues like the changes in module prices, currency risks and varied solar radiation across states.

Solar project developers hope that the government allows the price mechanism to be determined by market dynamics rather than government intervention. The NTPC is allowing project developers the option they have been waiting for.

To keep things in perspective, a lowest (L1) tariff of ₹2.59 (~$0.0372)/kWh was quoted in the auction held by NTPC to develop 2 GW of ISTS-connected solar PV projects. This tender too did not have any upper tariff cap, yet developers chose to bid low.

10 GW solar pv power plant SECI

EXTENSION OF BID SUBMISSION DEADLINE-VI : SELECTION OF SOLAR POWER DEVELOPERS FOR SETTING UP OF 10GW ISTS CONNECTED SOLAR PV POWER PLANT LINKED WITH 3GW (PER ANNUM) SOLAR MANUFACTURING PLANT UNDER GLOBAL COMPETITIVE BIDDING (PHASE-I)

This has reference to the RfS No. SECI/C&P/RfS/5GW MANUFACTURING/P-1/052018 dated 25.05.2018 regarding Selection of Solar Power Developers for Setting up of 10GW ISTS Connected Solar PV Power Plant linked with 3GW (Per Annum) Solar Manufacturing Plant under Global Competitive Bidding (Phase-I).

The last date of bid submission is hereby extended till 19.11.2018 (18:00 HRS). The techno-commercial bid opening shall be carried out w.e.f. 11:00 HRS on 20.11.2018.

Prospective bidders are requested to remain updated for any notices/ amendments/ clarifications etc. to the RfS documents through the websites www.seci.co.in and https://www.tcil-india-electronictender.com as no separate notification will be issued.

Tender Search Code (TSC) for the RfS in TCIL : SECI-2018-TN000018

Tender ID for the RfS in CPPP : 2018_SECI_324874_1

Tender Core HQ 25 kv single phase Tss ,Scada

Division CORE HQ
Department Electrical
Tender Reference Number ELCORE-TPMC-Gr239-240-241
Tender Title Project Management Consultancy Services for Railway Electrification work (in EPC Mod)in Birla Nagar - Etawah section (Gr.-239) of Jhansi division, Bhandai - Udi section (Gr.-240) of Agra division and Shikohabad - Farrukhabad section (Gr.-241) of Allahabad division of North Central Railway Under Railway Eectrification Project, Lucknow.
Location Allahabad
Tender Submission End Date 20-11-2018    
Work Details:
Work Description Project Management Consultancy Services for Railway Electrification work (in EPC Mod) of Design, supply, erection, testing and commissioning of 25kV, 50 Hz, single phase electrification works (OHE, TSS, SCADA & Electric General, S&T and Civil Engineering works) in Birla Nagar - Etawah section (Gr.-239) of Jhansi division, Bhandai - Udi section (Gr.-240) of Agra division and Shikohabad - Farrukhabad section (Gr.-241) of Allahabad division of North Central Railway Under Railway Eectrification Project, Lucknow (386 TKM / 418 RKM)
Tender Inviting Authority Details:
Name CAO/CORE/Allahabad
Address Office of The General Manager, Central Orgnisation for Railway Electrification, 01, Nawab Yusuf Road, Civil Lines, Allahabad-211001

3 GW solar projects auctioned 750 MW

3 GW of Solar Projects Tendered in October
About 750 MW of solar projects were auctioned last month.

More than 3 GW of solar projects were tendered in the month of October, which is more than double compared to September, according to Mercom’s India Solar Tender Tracker. This is the highest capacity tendered in the last three months.

Solar project auction activity saw an uptick with approximately 750 MWs auctioned in October, compared to around 550 MW auctioned in September.

The overall improvement in the tender and auction activities may be attributed to the clarity on the safeguard duty after the Supreme Court allowed the government to levy 25 percent safeguard duty on solar imports from China and Malaysia.

Earlier, the Ministry of Finance had announced the levy of a 25 percent safeguard duty based on the final recommendations proposed by the DGTR. The duty came into effect on July 30, 2018.

According to the tender trajectory issued by the Ministry of New and Renewable Energy (MNRE), approximately 30 GW is expected to be tendered in FY 2018-19. So far, 25 GW have already been tendered. This leaves only 5 GW to be tendered in the coming months.

Major Tenders in October

The Gujarat Urja Vikas Nigam Limited (GUVNL) tendered 700 MW of grid-connected solar photovoltaic (PV) power projects to be set up under Phase III of Raghanesda Solar Park located in the state. The projects will be developed under build own operate basis. The projects will be developed on three plots. The bid-submission deadline is November 15, 2018.

Rewa Ultra Mega Solar Limited (RUMS) issued a tender for a total of 1,500 MW of grid-connected solar PV projects which will be developed across three solar parks in the state of Madhya Pradesh. The bid-submission deadline is December 10, 2018.

The Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) invited bids for 550 MW of grid connected solar PV power projects through a tariff based competitive bidding process. The last date for bid submission is November 14, 2018.

Major Auctions in October

Maheshwari Mining and NTPC Limited (RE) quoted the lowest tariff of ₹3.17 (~$0.043)/kWh in the solar auction held by the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) for 500 MW of grid-connected solar projects.

Giriraj Renewables won the auction to develop 150 MW of grid-connected solar PV projects in the Pavagada Solar Park in Tumkur district of Karnataka. Karnataka Renewable Energy Development Limited (KREDL) had tendered the capacity in July 2018.

Asian Fab Tec won the bid to develop 20 MW of solar projects in five districts of Karnataka by quoting a tariff of ₹2.89 (~$0.039)/kWh for each taluk. The capacity awarded was part of the 200 MW solar tender for 10 talukas issued by KREDL.

The lowest tariff dropped to ₹1.38/kWh (~$0.0186)/kWh in Madhya Pradesh Urja Vikas Nigam Limited’s (MPUVNL) 8.6 MW auction of grid-connected rooftop solar under RESCO II model. The projects will be developed at more than 13 locations across the state. The first-year tariffs quoted in the auction are set to escalate by three percent per year over a period of 25 years.

Haryana electricity PPA for 10 MW solar project

Haryana Electricity Regulator Approves PPA with Deviations for a 10 MW Solar Project
HERC Directed HPPC to Refrain from Deviations from the Approved PPA’s Terms.

The Haryana Electricity Regulatory Commission (HERC) has issued an order approving the deviations in the terms of power purchase agreement (PPA) for procurement of power by Haryana Power Purchase Centre (HPPC) from a 10 MW solar photovoltaic (PV) project developed by Haryana Power Generation Corporation (HPGCL).

The HPPC had amended one of the clauses in the PPA. Per the amendment, “Rebate and surcharge mechanism shall be applicable as per the HERC (Terms & Conditions for determination of tariff for generation, Transmission, Wheeling, Distribution & Retail Supply under MYT Framework) MYT Regulation, 2012.”

The HPPC had made another amendment too. Per the second amendment, “HPGCL will maintain generation to achieve a minimum capacity utilization factor (CUF) of 16 percent per year subject to Force Majeure conditions. Failing which the HPGCL will pay the forbearance price of renewable energy certificates (RECs) procured by HPPC due to shortfall of minimum CUF of HPGCL for solar energy. Alternatively, HPGCL may supply RECs to HPPC for balance quantum of energy from market by the end of financial year. Provided for any non-generation because of non-availability of evacuation lines/system, HPGCL will not be penalized because of minimum CUF. For calculating annual CUF, generation based on irradiance level will also be worked out for the period of non-availability of evacuation line.”

The HERC has approved these amendments as they are not prejudicial to the interest of the consumers of the state. HERC has also asked HPPC to refrain from deviations from the terms of the approved PPA, in future, without prior approval of HERC.

HPGCL had commissioned this 10 MW solar PV project at the premises of Panipat Thermal Power Station (PTPS) in Panipat, in November 2016.

We are observing a series of petitions heard by the Regulatory Commissions lately. The Telangana State Electricity Regulatory Commission (TSERC) recently provided respite to the solar power developers in three cases accepting the reasons for project commissioning delay and also extended a partial relief to the developer in the fourth case.

Earlier, the TSERC provided relief to the developers of four grid-connected solar projects in the state, totaling 55 MW. In all the four cases, TSERC accepted the reasons given by the project developers for the delay in the scheduled commissioning dates, scoring a win for developers.

The TSERC orders in these cases are in contrast to a recent order passed by the Karnataka Electricity Regulatory Commission (KERC), which dismissed the petition filed by Marakka Solar Power Project LL.P.  KERC responded that force majeure events did not entitle any relief to the petitioner.

Uttar pradesh rooftop solar project

Uttar Pradesh Allows Net Metering for a 3.34 MW University Rooftop Solar Project
The project is being developed on the premises of Gautam Buddha University, NOIDA.

In a landmark order, the Uttar Pradesh Electricity Regulatory Commission (UPERC) has allowed net metering for a 3.34 MW rooftop solar photovoltaic (PV) project in Greater NOIDA, Uttar Pradesh. The UPERC was responding to a petition filed by Gautam Buddha University, Greater NOIDA.

Gautam Buddha University has a sanctioned load of 4,000 KVA and wanted to augment its existing rooftop solar PV facility from capacity of 0.5 MW to 3.34 MW. The university had sought relaxation of UPERC (Rooftop Solar Grid-Interactive System Gross/Net Metering) Regulations 2015.

The rooftop solar PV project is being developed in RESCO mode and the power will be utilized for captive consumption.

When summoned by the UPERC, NOIDA Power Company Limited (NPCL) submitted that it had no technical constraint in providing grid-connectivity for the project and the new proposed capacity. NPCL submitted that UPERC regulations concerning net metering provide for connectivity voltage level, application and registration fees for rooftop solar PV project of up to 1 MW capacity. For project of capacity more than 1 MW there are no provisions.

After considering all the submissions made, UPERC allowed for net metering of the 3.34 MW rooftop solar PV project. In order to do so, the Gautam Buddha University must fulfil formalities per UPERC (Rooftop Solar Grid-Interactive System Gross/Net Metering) Regulations 2015, take approval from Directorate of Electrical Safety and adhere to provisions of Central Electricity Authority (CEA) (Measures relating to Safety and Electrical Supply) Regulations 2010, CEA (Technical Standard for Connectivity of Distributed Generation Resources) Regulations 2013 and UPERC (Grant of Connectivity to interstate transmission system) Regulations 2010.

Regarding applicable fees, the UPERC ruled that since fee specified is for up to 1 MW projects, the same will be charged for entire 3.34 MW.

Mercom had reported in recently that net metering policy continues to be a drag on India’s rooftop solar sector. One of the larger hurdles is system size as most states have an upper limit (usually 1 MW) on the size of a rooftop solar project. Although a 1 MW rooftop project is relatively large, the size limit sidelines a large number of commercial and industrial consumers from installing rooftop solar to meet their power needs.

This order could be encouraging to a lot of rooftop solar projects that generally have an upper cap of 1 MW.  The Maharashtra Electricity Regulatory Commission (MERC) also had passed a ruling stating that the benefits of net metering are limited to rooftop solar installations of up to 1 MW.

Earlier in 2018, Odisha Electricity Regulatory Commission (OERC) had removed the upper cap of 1 MW for rooftop solar projects in the state. The removal of the upper ceiling was part of the order passed by OERC on net metering, bi-directional metering, and their connectivity to solar photovoltaic (PV) projects in Odisha.

SECI relaxes norms for solar auction

After tepid response, SECI relaxes norms to lure bidders for 10 GW solar auctions.

Through the scheme, as much as 3 GW of cumulative annual solar manufacturing units are seen to be set up over three years, resulting in 10 GW of new generation capacities.

In the wake of cold response received from the industry towards the 10 gigawatt (GW) manufacturing-linked solar scheme, the Solar Energy Corporation of India (SECI) has amended the terms for bidders, allowing developers more time and flexibility to set up projects.

This is the fourth set of revision since its launch in June.

Through the scheme, as much as 3 GW of cumulative annual solar manufacturing units are seen to be set up over three years, resulting in 10 GW of new generation capacities. However, tepid industry response has been deferred the last date for receiving bids four times since the initial deadline of August 20.
As per the fresh amendments, inter-state transmission system (ISTS) charges would be waived for solar generation units commissioned within FY24, effectively extending the window to avail the benefit by two years from the original deadline of FY22.
SECI had earlier said ISTS charges would be waived under force majeure if delays were caused due to unavailability of adequate transmission charges. However, the new amendment does not specify if solar projects would have to pay ISTS charges if projects are commissioned after FY24 due to shortage of transmission systems.
Solar companies would now get 36 months, a year more than the timeline mandated earlier, for commencing commercial operations from their manufacturing units. They ‘should produce at least 80% of the installed capacity within first year and 90% of the installed capacity within second year’, the amendment document said.

SECI has also tweaked the minimum shareholding criteria for the bidders in the special purpose vehicles (SPVs) incorporated for executing projects under the tender. The new amendment says that if successful bidders enter into a manufacturing contract with any other entity, they cannot reduce their shareholding in the SPV below 26% till one year after the solar plants and manufacturing units are commissioned. SECI maintains that if no other entity is involved in the SPV, bidders need to keep a minimum 51% stake till the aforementioned period.
Earlier, SECI had cut the requisite bank guarantee amount by almost 25% to Rs 466 crore. The ceiling tariff for auctions had been cut to Rs 2.75/unit, from Rs 2.93/unit set earlier.

The scheme was launched to boost the domestic solar manufacturing industry, which was growing tepidly in spite of huge surge in solar generation capacity in the country. Solar developers sourced 88% of the products though cheaper imported component in FY18. To aid domestic manufacturing, the government has levied a 25% safeguard duty on import of solar cells — the basic ingredient needed to manufacture solar panels — for a year ending July 19, 2019.
The duty would be 20% for the next six months till January 29, 2020, and 15% in the subsequent six months.

Agreement signed under procurement scheme

Agreements signed for 1900 MW capacity under Aggregated Power Procurement Scheme on Medium Term basis; tariff discovered as Rs. 4.24 per unit .

The PPAs expected to lessen the burden and lead to efficient utilization of capacities of some of the coal based stressed power plants
A major milestone in the evolution of the medium term market for power was achieved on 29th October, 2018 with the signing of agreements for 1900 MW capacity under Aggregated Power Procurement Scheme on Medium Term basis with PFC Consulting Limited as Nodal Agency and PTC India Ltd. as Aggregator.
The PPAs are expected to lessen the burden and would lead to efficient utilization of capacities of some of the coal based stressed power plants. This scheme endeavors to achieve a balance in allocation of risk-reward to the transacting parties.

Ministry of Power in April 2018 had issued Guidelines for a pilot schemeto facilitate aggregation of procurement of power (2500 MW for 03 years) from commissioned coal based power plants through competitive bidding.PFC Consulting Limited conducted theBid Process for selection of capacity on DEEP e-bidding Portal from different projects. Subsequent to the bidding process tariff was discovered as Rs. 4.24 per unit and projects with aggregate capacity of 1900 MW were declared as the successful bidders.

The agreements under the scheme were signed with the successful bidders and procuring DISCOMson 29th Oct 2018.

The seven successful bidders are –

RKM Powergen (550 MW),

Jhabua Power Ltd. (100 MW),

MB Power Ltd. (175 MW),

SKS Power (300 MW),

Jindal India Thermal Power Ltd. (125 MW),

IL&FS Energy (550 MW),

JP Nigrie (100 MW)

The procuring DISCOMs are – Telangana and Tamil Nadu for 550 MW each, West Bengal and Bihar for 200 MW eachwhile Haryana has consented to sign for 400 MW.

Azure Power solar power plant

Azure Power signs agreement with NTPC for 300 Mw solar power project
Azure will provide power from the project at a tariff of Rs 2.59 per unit for 25 years and is expected to be commissioned in 2021.

New Delhi: Solar power producer Azure Power today announced it has signed a Letter of Award (LoA) with NTPC Ltd for a 300 Megawatt solar power project. Azure had won the project in an auction conducted by NTPC.

Azure will provide power from the project at a tariff of Rs 2.59 per unit for 25 years and is expected to be commissioned in 2021. The company is yet to decide on a location for the project.

The company has a portfolio of solar projects with 3,000 Mw capacity across India. This includes both commissioned and under-construction projects.

Softbank essel group

Softbank likely to invest in Essel Group’s 500 MW solar plant.
MUMBAI: SoftBank’s arm SB Energy is close to signing a pact to invest in a 500 megawatt solar power plant being developed by the Essel Group in Rajasthan, according to sources directly involved with the deal.
Essel Group is in early stages of developing a solar power park in Rajasthan with a total capacity of 750 MW. “This investment will help SoftBank fast forward its plan as it will have all the necessary infrastructure. This will reduce the time to build a plant from 12-15 months to less than six months,” an executive involved with the deal said.
Essel Group’s spokesperson confirmed deal, but declined to give details, while a SoftBank spokesperson said, “We don’t comment on market speculations.”
SoftBank is bullish on the Indian solar energy space and has plans to invest $1 trillion in the sector. It has a presence here through SB Energy, its joint venture with Bharti Enterprises and Taiwan's Foxconn Technologies.
In October, SoftBank chief Masayoshi Son offered to supply free electricity to India once the 25-year power purchase agreements of SB Energy came to an end. The company has urged the government in the past to offer bulk tenders for solar power plants so that it can expedite its plan to invest $1 trillion here.
The Subhash Chandra-led Essel Group has plans to expand its solar power portfolio by developing its own parks.

Ministry of Power of India amendment

PROPOSED AMENDMENTS OF ELECTRICITY ACT, 2018 :

The Ministry of Power of India has recently announced the draft proposed amendments to the Electricity Act, 2003. The proposed amendments aim to be in line with the country’s changing electricity markets and systems, with their large renewable capacities and the emergence of a smart grid network.

The Amendment proposes important changes in renewable energy, cross-subsidy, open access, operations & responsibility of ERCs, and many other changes. Some of these are discussed in brief below:

Renewable Energy

The EA Amendment 2018 proposes several amendments that are favorable to the RE sector. Some of these are:

Definition of Renewable Purchase Obligation and Renewable Generation Obligation introduced.
RPO has been separately defined. Related to this, the definition of “Obligated Entity” has also been introduced.
RGO means the Renewable Energy Generation capacity required to be established to be procured from Renewable Energy Sources, and sale of such energy along with the electricity generated from the coal or lignite based thermal generating station, by a generating company establishing a coal or lignite based thermal generating station.
Introduction of renewable energy service company which provides renewable energy to consumers in the form of electricity.
Introducing policies in order to support RE sector like National Renewable Energy Policy to promote smart grid, ancillary support, and decentralized distributed generation in accordance with the provisions of the Act;
A penalty of maximum Rs. Fifty lakh for non-compliance of RGO. (Reduced from 1 Cr. to 50 Lakh, the earlier penalty was on 1 lakh.)
For non-compliance of RPO, an additional penalty is proposed, which shall be minimum of Rs 1 per unit with a maximum of Rs 5 per unit depending on the extent of the shortfall.
Generation and supply of renewable energy will not require any license for such generation and supply.
Cross-subsidy

The draft EA Amendment proposes (a) time-bound reduction in cross-subsidies (CSS), and (b) CSS to be not more than 20% of the wheeling charge. These provisions are nothing new. The EA 2003 also included provisions for reduction of CSS. But these were watered down later.

The proposal that CSS be 20% of wheeling charges is significant, as if implemented, it will reduce CSS significantly. Also, the provision for charging “additional surcharge” is proposed to be deleted – this will also have a significant impact as in recent years states have used high additional surcharge as a tool to discourage open access.

Open Access

The draft EA Amendment states the following with respect to open access:

“With effect from the commencement of the Electricity (Amendment ) Act, 2018, all consumers having a connected load of 1 Mega Watt and above with the power system, may procure at their option electricity through open access under contractual agreement from any generating company, trading licensee, or from any other source.”

This implies automatic open access, without the need for permission from the Discom. If implemented, this will be a radical change and can potentially transform the electricity market in the country.

Separation of Carriage and Content

One of the key provisions in the previous EA amendment (proposed in 2014) was the separation of carriage and content – i.e. further breakup of the Discom into supplier and network operator, and also allowing multiple suppliers in the area of the Discom. This proposal was met with significant resistance from the state when the Standing Committee of the Parliament viewed the amendment. As a result, the current amendment, while retaining the provisions, has significantly diluted the scope of carriage and content separation by leaving it entirely to the decision of the state government.

In our opinion, this is a pragmatic approach, as it may allow the passage of the EA Amendment act without significant resistance from the states. However, the flip side of this approach is that such a reform will take a long time to be realized on the ground, and there will be significant differences between states. The EA2003 has heralded the break-up of Electricity Boards into Genco, Transco and Discom’s. Fifteen years on, the separation is still only partially effective in most states.

Gujarat government amendment

Power plants: Supreme Court to hear Gujarat government plea on PPA amendment on October 29.

The Gujarat government had approached the SC following a high-powered committee’s recommendations allowing higher tariffs and a 100% pass-through of tariffs to consumers, which would require an amendment to the existing PPAs with the discoms of the five procurer states.

The Supreme Court will hear the Gujarat government’s petition seeking the apex court’s opinion regarding amendment of power purchase agreements (PPAs) in the three imported coal-based power plants of Adani Power, Tata Power and Essar Power in Gujarat, on October 29, a senior Gujarat government official told FE. The Gujarat government had approached the SC following a high-powered committee’s recommendations allowing higher tariffs and a 100% pass-through of tariffs to consumers, which would require an amendment to the existing PPAs with the discoms of the five procurer states.

A senior Gujarat Urja Vikas Nigam (GUVNL) official said: “We have approached the Supreme Court to understand if the recommendations would mean an approval to amendment of PPAs that is against the order passed by the SC in April last year. The Supreme Court will hear the case on October 29.” “We will decide on the further course of action after the SC order,” the official added.

On July 3, the Gujarat government had set up a high-powered committee headed by former Supreme Court judge RK Agarwal, former RBI deputy governor SS Mundra and former CERC chairperson Pramod Deo to look into the issue of imported coal-based power plants reeling under severe financial pressure due to change in law in Indonesia’s coal export policy.

In its report submitted last month, the committee said it is important to salvage these plants keeping consumer interest in mind. Also, it is critical to keep these plants operational to meet the growing demand from the five procurer states. The report further adds that if these plants are not salvaged, it would result in liquidation of these assets and a higher capital cost to set up new plants. It will also lead to load shedding and wastage of 4-5 years in setting up new plants. Procurement of power from old and inefficient plants would have reliability issues as well.

SECI power plant Himachal pradesh

India’s 2MW Solar + Storage Tender Date Extended.
Earlier in July, SECI had issued a tender for setting up of 2 MW Solar PV power plant with 01 MW BESS at KAA, Himachal Pradesh.

The last date of bid submission is now extended till 12.11.2018 (14:00 Hrs). The tender said that any containerised battery technology can be used as long it is suitable for the location’s climatic conditions.

The tender said that the battery will be located at Rangreek, Kaza near Rong Tong Hydro Power Station, 12,000 feet in altitude. The annual temperature of the location ranges of -40°C to 30°C and area sees snow of up to six feet in winter months. The tender also mentioned that the battery must be designed for maximum flexibility with regard to site-specific voltages, frequency, phase imbalance, and protection requirements.

The scope of work includes the design, engineering, supply, construction, installation, testing, and commissioning of the projects. Apart from these, the successful bidder will also be responsible for 5 years of operations and maintenance (O&M) services. This would include the supply and storage of all mandatory spare parts, consumables, repairs and replacements of any defective equipment during the O&M period.

SECI released the NIT on behalf of Himachal Renewable Limited, a JV between SECI and Himachal Pradesh State Electricity Board (HPSEBL).

Renewable wins Auction

Giriraj Renewables Wins Auction for 150 MW of Solar at Pavagada Quoting ₹2.92/kWh
KREDL had tendered the capacity in July 2018.

Giriraj Renewables has won the auction to develop 150 MW of grid-connected solar photovoltaic (PV) projects in the Pavagada Solar Park in Tumkur district of Karnataka. Karnataka Renewable Energy Development Limited (KREDL) had tendered the capacity in July 2018.

Giriraj Renewables quoted a tariff of ₹2.92 (~$0.0397)/kWh to develop three projects of 50 MW each.

When contacted, a Karnataka Solar Power Development Corporation Limited (KSPDCL) official confirmed the completion of auction and issue of letter of award to Giriraj Renewables. Talking about Pavagada Solar Park, the official said, “Now, only SECI’s 200 MW needs to be auctioned out. Other than that, there are plans to expand the capacity of Pavagada by another 50 MW or so, and if it is done, then the projects will be developed in pockets of 5 MW each.”

The development of Karnataka’s Pavagada Solar Park is no small feat. The park covers 13,000 acres and is expected to have total capacity of 2 GW when it is complete. To facilitate development, the park has been divided into eight blocks of 250 MW each that will have dedicated high voltage supply lines, pooling stations, and a pooling substation for evacuation. The Pavagada Solar Park was conceptualized in February 2015 and park development began in January 2016.

In January 2018, KREDL had tendered 1,200 MW of grid-connected solar PV projects to be developed at Pavagada. However, KREDL was able to auction merely  550 MW of the tendered capacity due to poor response from bidders amid various ongoing uncertainties in the solar sector.

In April 2018, KREDL retendered 650 MW of grid-connected solar projects to be developed at the Pavagada Solar Park. KREDL then  awarded 250 MW of solar projects each to Fortum Corporation and Tata Power Renewable Energy Ltd (TPREL).

Now, the remaining capacity has been awarded. It is heartening to see that in Karnataka, the state agencies are going ahead with tariff as high as ₹2.92 (~$0.0397)/kWh while at the same time central agencies like SECI are cancelling auctions citing high tariffs even when the tariffs have been much lower than what has been discovered in this auction.