Monthly update August 2021 - 3DRD@QBG "M@KXSHBR - JMK Research
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monthly
update
August 2021
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4
Contents
1. Tenders | 5
New RFS Issued | 6
Date extension | 7
Auctions Completed | 9
2. Installed Capacity | 11
3. Monthly RE Generation | 15
4. Investments and Partnerships | 17
5. Module Price Trends | 19
6. Monthly SECI Payments | 20
7. Policies and Regulations | 21
5
1. Tenders
New RFS In August 2021, 15 new renewable energy (RE) tenders with a total
capacity of 2534.5 MW were issued. MSEDCL has issued wind tenders
Issued
for 800 MW and a 487 MW solar tender under KUSUM scheme in
Maharashtra. NHPC has also issued 700 MW of solar (EPC) tenders in
Tamil Nadu (600 MW) and Odisha (100 MW).
NHPC has also issued 700 MW of solar (EPC) tenders in Tamil Nadu (600
MW) and Odisha (100 MW).
Fig 1.1: New tenders issued in August 2021
NHPC, 500 MW, Solar (EPC), Tamil Nadu Solar
MSEDCL, 500 MW, Wind, Maharashtra Wind
MSEDCL, 487 MW, Solar (under KUSUM), Maharashtra
MSEDCL, 300 MW, Wind, Pan India
GSECL, 224 MW, Solar (EPC), Gujarat
REMCL, 210 MW, Solar (vacant Railway Lands)
NHPC, 100 MW, Solar (EPC), Tamil Nadu
NHPC, 100 MW, Floating Solar (EPC), Odisha
JBVNL, 50 MW, Solar (Under KUSUM), Jharkhand
Mahanadi Coalfields, 50 MW, Solar (EPC), Odisha
JREDA, 6 MW, Rooftop Solar, Jharkhand
GSECL, 4.5 MW, Solar (EPC), Gujarat
Jai Narain Vyas University (JNVU),
1 MW, Rooftop Solar, Rajasthan
TSECL, 1 MW, Rooftop Solar, Tripura
BREDA, 1 MW, Hybrid Rooftop Solar, Bihar
0 100 200 300 400 500 600 700 800
Source: JMK Research Capacity (MW)
6
Table 1.1: New RFS issued
Commis-
sioning
Bid
Tech- Tender Capacity Min timeline
Tender Name Other Details Submis-
nology Scope (MW) CUF from
sion Date
PPA
signing
NHPC, 500 MW, Solar Utility
• PBG – 3% of the contract 5th-
(EPC), Tamil Nadu, Aug Scale EPC 500 12 months
value Oct-2021
2021 Solar
MSEDCL, 500 MW, Wind, Project De- • EMD - INR 0.5 million/MW 13th-
Wind 500 22% 18 months
Maharashtra, Aug 2021 velopment • Ceiling tariff - INR 2.65/kWh Sep-2021
MSEDCL, 487 MW, Solar Small • EMD – INR 0.1 million/MW
Project De- 17th-
(under KUSUM), Maharash- Scale 487 • PBG– INR 0.5 million/MW 15% 12 months
velopment Sep-2021
tra, Aug 2021 Solar • Ceiling tariff – INR 3.10/kWh
MSEDCL, 300 MW, Wind, Project De- • EMD - INR 0.6 million/MW 20th-
Wind 300 22% 18 months
Pan India, Aug 2021 velopment • PBG - INR 1.2 million/MW Sep-2021
Utility • EMD – INR 0.4 million/MW
GSECL, 224 MW, Solar 8th-
Scale EPC 224 • PBG – 10% of the contract 25% 18 months
(EPC), Gujarat, Aug 2021 Sep-2021
Solar price
REMCL, 210 MW, Solar Utility
21st-
(vacant Railway Lands), Scale EPC 210 17% 16 months
Oct-2021
Aug 2021 Solar
Utility
NHPC, 100 MW, Solar (EPC), • PBG – 3% of the contract 6th-
Scale EPC 100 12 months
Tamil Nadu, Aug 2021 value Oct-2021
Solar
NHPC, 100 MW, Floating
Floating • PBG – 3% of the contract 7th-
Solar (EPC), Odisha, Aug EPC 100 12 months
Solar value Oct-2021
2021
JBVNL, 50 MW, Solar (Un- Utility
Project De- • EMD – INR 0.1 million/MW 3rd-
der KUSUM), Jharkhand, Scale 50 15% 9 months
velopment • PBG– INR 0.5 million/MW Sep-2021
Aug 2021 Solar
Mahanadi Coalfields, 50 Utility
• PBG – 5% of the contract 1st-
MW, Solar (EPC), Odisha, Scale EPC 50 25.3% 10 months
amount Sep-2021
Aug 2021 Solar
• EMD – For General Bidders
- INR 0.21 million
JREDA, 6 MW, Rooftop So- Rooftop 20th-
6 • For MSME - Nil 15% 4 months
lar, Jharkhand, Aug 2021 Solar Sep-2021
• PBG - 5% of the work order
value
7
Commis-
sioning
Bid
Tech- Tender Capacity Min timeline
Tender Name Other Details Submis-
nology Scope (MW) CUF from
sion Date
PPA
signing
Small • EMD - INR 1.8 million
GSECL, 4.5 MW, Solar (EPC), 13th-
Scale EPC 4.5 • PBG - 10% of the EPC Con- 25% 9 months
Gujarat, Aug 2021 Sep-2021
Solar tract Price
Jai Narain Vyas University
Rooftop 15th-
(JNVU), 1 MW, Rooftop So- RESCO 1 • Bid security – INR 0.1 million 6 months
Solar Sep-2021
lar, Rajasthan, Aug 2021
• EMD - For General Bidders:
TSECL, 1 MW, Rooftop So- Rooftop Based on the Bid capacity 27th-
CAPEX 1 13.5% 12 months
lar, Tripura, Aug 2021 Solar proposed by the bidder Sep-2021
• For MSME: Nil.
Rooftop • EMD – INR 0.2 million
BREDA, 1 MW, Hybrid Roof- 31st-
Solar + CAPEX 1 • PBG – 10% of the contract 3 months
top Solar, Bihar, Aug 2021 Aug-2021
BESS price
PBG: Performance Bank guarantee
EMD: Earnest Money Deposit
Source: Industry news articles, JMK Research
Date Extension
Table 1.2: Date Extension
Commis- Bid Sub-
Technol- Tender Capacity Min
Tender Name Other Details sioning mission
ogy Scope (MW) CUF
timeline Date
SECI, Pan India, 2500 MW, Utility Project De- • EMD – INR 0.5 million/MW 3rd-
2500 30 months
Thermal + RE, Mar 2020 Scale Solar velopment • PBG – INR 0.1 million/MW Sep-2021
SECI, 1200 MW, Solar UM-
Utility Project De- • EMD - INR 0.4 million/MW 3rd-
REPP ISTS X, Karnataka Jul 1200 17% 18 months
Scale Solar velopment • PBG - INR 0.8 million/MW Sep-2021
2021
REMCL, 740 MW, Solar, Pan
Utility Project De- • EMD – INR 0.4 million/MW 16th-
India (Railway Land), Jun 740 17% 18 months
Scale Solar velopment • PBG – INR 0.8 million/MW Sep-2021
2021
8
Commis- Bid Sub-
Technol- Tender Capacity Min
Tender Name Other Details sioning mission
ogy Scope (MW) CUF
timeline Date
NHPC, 600 MW, Solar (EPC), Utility • PBG – 5% of the contract 7th-
EPC 600 18 months
Rajasthan, July 2021 Scale Solar value Sep-2021
PSPCL, 250 MW, Solar, Pan Utility Project De- 16th-
250
India, May 2021 Scale Solar velopment Sep-2021
PSPCL, 250 MW, Solar, Pun- Utility Project De- 15th-
250
jab, May 2021 Scale Solar velopment Sep-2021
MPUVNL, 225 MW, Solar
Small Project De- 16th-
(under KUSUM), Madhya 225 • PBG - INR 0.5 million/MW 15% 9 months
Scale Solar velopment Sep-2021
Pradesh, Jul 2021
SECI, 100 MW, Solar (EPC), Utility • PBG – 3% of the contract 9th-
EPC 100 18 months
Chhattisgarh, Jul 2021 Scale Solar value Sep-2021
SECI, 50 MW, Solar PV and
Solar and • PBG – 3% of the contract 22nd-
Agro PV, Tamil Nadu, Jan EPC 50 24.1% 12 months
Agro PV value Sep-2021
2021
SECI, 15 MW, Floating Solar,
Floating Project De- • EMD – INR 13.5 million 21st-
Bilaspur, Himachal Pradesh, 15 21% 18 months
Solar velopment • PBG – INR 27 million Sep-2021
Jul 2020
Source: Industry news articles, JMK Research
9
Auction Completed
1970 MW of RE tenders were auctioned in August 2021, out of which 1920
MW were allotted. Of the total auctioned capacity, 1200 MW has been
allocated for Wind Solar Hybrid tender, 700 MW for utility scale solar
tenders while 20 MW for a solar plus battery energy storage system
(BESS) tender.
Fig 1.2: Winners in the latest RE auctions
500 3.5
400 2.8
Tariff (INR/kWh)
Capacity (MW)
300 2.1
200 1.4
100 0.7
0 0.0
VN
LC
le
er
er
er
pa nd
er
C
TP
ab
w
w
w
w
ny
m ya
N
SJ
Po
Po
Po
Po
N
w
Co rg
ne
ta
e
ta
ta
er e
ur
Re
at En
Ta
Ta
Ta
Az
a
W aih
an
m
Ay
jo
Al
SECI, 1200 MW, Wind-Solar Hybrid Tranche IV, RUMSL, 500 MW, Neemuch Madhya
Pan India, Apr 2021 Pradesh, Jan 2020
SECI, 20 MW, Solar with 20 MW/ 50 MWh BREDA, 250 MW, Solar, Bihar, Dec Tariff (INR/kWh)
BESS Storage, Leh, Dec 2020 2020
Source: JMK Research
10
Table 1.3: Auction Completed
Capacity Capacity Commissioning
Minimum
Tender Name tendered allotted timeline from Winner Details
CUF
(MW) (MW) PPA Signing
• NTPC - 450 MW (INR 2.34/kWh)
• NLC - 150MW (INR 2.34/kWh)
SECI, 1200 MW, Wind-Solar
• Project Ten Renewable (Ayana Re-
Hybrid Tranche IV, Pan India, 1200 1200 30% 18 months
newable) - 450 MW (INR 2.34/kWh)
Apr 2021
• Azure Power - 150 MW (INR 2.35/
kWh)
• Tata Power – 170 MW (INR 2.14/kWh)
RUMSL, 500 MW, Neemuch • Tata Power – 160 MW (INR 2.15/kWh)
500 500 24 months
Madhya Pradesh, Jan 2020 • Aljomaih Energy and Water Company
– 170 MW (INR 2.15/kWh)
BREDA, 250 MW, Solar, Bihar,
250 200 18 months • SJVN – 200 MW (INR 3.11/kWh)
Dec 2020
SECI, 20 MW, Solar with 20
MW/ 50 MWh BESS Storage, 20 20 42.5% 12 months • Tata Power – 20 MW
Leh, Dec 2020
Source: JMK Research
11
2. Installed Capacity
In August 2021, a combined total of 1060 MW of solar and wind energy
capacity was added, taking the cumulative RE capacity to 100 GW.
Fig 2.1: RE installations in August 2021
Cumulative Installations as of August 31st, 2021 Capacity installed in August 2021
ll Hydro
Sma
r 5%
owe 1200
P %
10
o
Bi
1000
Sola
800
45%
Capacity (MW)
r
100%= 100 GW 600
400
200
%
0
d
4
in
W
0
Solar Wind
Source: CEA, JMK Research
State wise RE Installed capacity in August 2021
Rajasthan added the most renewable energy capacity of 615 MW in August 2021,
followed by Gujarat (350 MW).
12
800
700
600
Installed Capacity (MW)
500
400
300
200
100
0
n
t
ra
h
ra
ha
es
ht
ja
ad
st
as
Gu
ja
Pr
ar
Ra
ah
ra
M
dh
An
Source: CEA, JMK Research
Note: This chart includes solar, wind and other RE capacities
13
Projects 10 new projects with a cumulative solar capacity of 1010 MW got
commissioned by various renewable energy players this month. The list of
recently commissioned projects is mentioned below:
Table 2.1: List of key commissioned solar projects in August 2021
AC Capacity Tariff (INR/
Developer Technology Tender Name State
(MW) kWh)
SECI 1200 MW
Eden Renewa-
Solar Solar ISTS Tranche 300 2.60 Rajasthan
bles
III Feb 2019
GUVNL 700 MW
Engie Solar Solar Phase III Gu- 200 2.65 Gujarat
jarat May 2019
TPC-D Mumbai
Tata Power Re-
Solar Solar, 150 MW, 75 Rajasthan
newable Energy
Oct-2019
SECI 750 MW Solar
UPC-AC Energy Solar Tranche I Rajast- 100 2.48 Rajasthan
han Mar 2019
GUVNL 700 MW
Tata Power Re-
Solar Solar Phase III Gu- 100 2.70 Gujarat
newable Energy
jarat May 2019
GUVNL 500 MW
UPC-AC Energy Solar Solar Phase IV 50 2.55 Gujarat
Gujarat Feb 2019
SECI 2000 MW
Mahindra Susten Solar Solar ISTS Tranche 40 2.53 Rajasthan
I Jul 2018
Solar (open Maharash-
Cleantech Solar 30
access) tra
NTPC 25 MW
Floating Solar Andhra
NTPC Floating Solar 15
Andhra Pradesh Pradesh
Jul 2019
SECI 1200 MW Hy-
Adani Hybrid brid ISTS-Tranche I 100 2.69 Rajasthan
December 2018
Source: Industry news articles, JMK Research
14
Apart from this, in terms of PPA activity:
• ReNew Power has announced that it has signed India’s first round-the-
clock (RTC) renewable energy Power Purchase Agreement (PPA) with SECI
for its 400 MW project. Wherein ReNew Power will supply electricity at
INR 2.90/kWh in the first year. Later, the tariff will increase by 3% annually
for the first 15 years.
• In addition, the government of Puducherry has signed a power purchase
agreement with NTPC to buy 100 MW of solar power project in Nokh,
Rajasthan. Along with this, the government had already signed a PPA for
140.64 MW of wind power project from Solar Energy Corporation of India
Limited (SECI).
15
3. Monthly RE Generation
Renewable Energy sources generated 15,032.68 MU in August 2021,
a significant decrease of 21% from July 2021. Taking into account the
last month’s RES (Renewable Energy Sources) generation, wind energy
continues to contribute the majority share of 58%, followed by solar at 35%,
and other renewable energy sources (including biomass) at 7%.
Table 3.1: Source-wise Renewable Energy Generation (MU) - India
12000 10,647
9,646
10000 9,725
Wind
7,896 8,751
8000
6,754 7,084
Million Unit (MU)
6,238 6,967
6,006
5,607
6000 5,607 6,122 5,995 5,220
4,852 4,876 4,865 5,436
5,339 4,650 4,592 4,749 Solar
5,170
4,703 4,551 3,816
4,266 3,990 3,562 3,532
4000 3,399 3,734
3,305 2,873
3,449
3,176 3,083 2,377
2,760 2,742
2,483
2000 2,295 1,970 1,921
1,854 1,792 Other RES
1,846 1,729
1,426 1,625 1,437 1,359
1061
0
0
20
0
0
0
20
20
0
0
20
21
21
1
21
1
21
1
21
-2
-2
l-2
-2
-2
-2
l-2
-2
-2
n-
b-
r-
n-
g-
r-
g-
p-
c-
ar
ay
ar
ay
ne
ct
ov
Ju
Ap
Ju
Ap
Ja
Ju
Fe
Au
De
Au
Se
M
O
M
M
M
N
Ju
Source: CEA, JMK Research
1617 17
4. Investments and Partnerships
In August 2021, about $ 1792.23 million was invested in the RE sector.
The Key investments during the month were:
• ReNew Power got listed on NASDAQ by completing its business combi-
nation with RMG Acquisition Corporation II wherein ReNew has received
$610 million in net proceeds as part of this transaction. In addition, ReNew
Power has acquired two renewable energy assets including a 99 MW hy-
dro power project in Uttarakhand and 260 MW solar project in Telangana.
• Azure Power has announced the issuance of a dollar green bond of $414
million.
Table 4.1: Investment and deals in August 2021
Company Asset
Deal Type Sector Investor Deal Value Other Details
Name Acquired
RMG Acquisition
Corporation II Merger Renewable ReNew Power $610 million
(RMG II)
The Bond will mature
in 2026, and would be
Azure Power Bond Solar $414 million issued at a coupon of
3.575% with a tenure
period of 5 years
ReNew has acquired a
L&T (Hydro asset) 99 MW of hydro power
Name not project (from L&T) in
Acquisition Renewable 359 MW ReNew Power $384 million
disclosed (Solar Uttarakhand and 260
asset) MW of solar project in
Telangana
Augment Infra-
CleanMax Equity Solar $222.23 million
structure
The coupon rate
discovered at 7.39% for
a tenure period of 10
THDC India
Bond Renewable $162 million years. CARE and India
Limited
ratings assigned these
bonds an AA “Stable”
credit rating.
Source: Industry news articles, JMK Research
18
Other key announcements that were made during the month were:
• British firm Actis is planning to acquire Global Infrastructure Partner’s
(GIP) Vector Green Energy, with an expected equity investment of around
$300 million. In addition, the company has also begun the sale process
for Sprng Energy (its renewable energy platform in India), and will soon
appoint a banker for the proposed sale.
• ACME Solar is planning to invest INR 20,000 crore to increase its solar
capacity to 10 GW, in next five years. IndiGrid is also planning to invest up
to INR 5,000 crore in operational solar assets as part of its diversification
strategy. ArcelorMittal also intends to invest INR 1 lakh crore in Gujarat to
expand its existing steel plant and enter the renewable energy market.
• Kajaria Ceramics Ltd. has announced to invest INR 264 lakhs in an SPV for
solar power captive consumption. The SPV will be formed by a solar pow-
er plant company, CleanMax Enviro Energy Solutions Private Ltd.
• NTPC has issued a Request for Proposal (RFP) for raising term loans worth
up to INR 5,000 crore. The last date for bid submission is 2nd September
2021.
• Sterlite Power has filed a draft red herring prospectus (DRHP) with SEBI to
raise an IPO of INR 1,250 crore. Waaree is also planning to raise around
INR 1,300-1,500 crore through the IPO in order to increase its module man-
ufacturing capacity by another 3 GW.
• REC Group, Europe’s largest solar panel manufacturer, is close to being
acquired by Reliance Industries. China National Chemical Corp (ChemChi-
na) is expected to sell the company to Reliance for $1-1.2 billion. RIL is also
in discussions with international lenders about raising $500-600 million in
acquisition financing for the deal. The rest will be funded through equity.
19
5. Module Price Trends
Comparing on m-o-m basis, prices of global multi-crystalline modules
and mono PERC modules have slightly increased by 1.4% and 0.4%
respectively in August 2021. Whereas the price for mono PERC (India)
module has dropped by 3.8%.
Fig 5.1: Solar Modules Price trends
0.26
0.25
Mono PERC module (India)
0.24
0.23
Mono PERC modules (Global)
Prices (USD/Wp)
0.22
0.21
0.20
Multi crystalline module (Global)
0.19
0.18
0.17
0.16
20
20
0
0
0
Ju 0
A 20
Se 0
O 0
N 20
D 20
Ja 0
Fe 1
M 21
A 1
M 21
Ju 1
Ju 1
A 21
1
2
-2
-2
2
-2
-2
-2
-2
2
-2
2
-2
n-
b-
-
n-
l-
n-
b-
n-
l-
p-
-
-
ar
pr
ay
ug
ar
pr
ay
ug
ct
ov
ec
Ja
Ju
Fe
M
A
M
Source: PVInfoLink, JMK Research
Note: India prices are FOB prices.
20
6. Monthly SECI Payments
The Solar Energy Corporation of India Limited (SECI) paid nearly INR 6.61
billion to developers for the purchase of solar and wind power in July
2021.
Figure 6.1: Monthly payments by SECI to solar and wind developers
7.00 6.61 6.61
5.2
5.25 4.9 4.9 4.9
4.6 4.5
4.4 4.3
4.25
4.1 4.0 4.1
Amount (INR Billion)
3.8 3.9
3.6 3.7 3.7
3.50
1.75
0.00
20
20
Ap 0
M 0
Ju 0
20
Au 0
Se 0
O 0
N 0
0
0
Fe 1
M 1
Ap 1
M 1
Ju 1
21
21
2
2
-2
2
-2
-2
2
-2
2
2
2
-2
-2
-2
n-
b-
r-
n-
l-
n-
b-
r-
n-
l-
g-
p-
ar
ay
ar
ay
ct
ov
ec
Ju
Ju
Ja
Ja
Fe
M
D
Source: SECI, JMK Research
21
7. Policies and Regulations
Central CERC Rejected Developer’s Plea for Extending Commissioning Dates
for 140 MW of Solar Projects
• Central Electricity Regulatory Commission (CERC) in its order dated 4
August 2021 has rejected the request of Solaire Solar Urja for extension of
the scheduled commissioning dates of two solar projects of 70 MW each
at the Bhadla Solar Park in Rajasthan.
• The developer also demanded a refund of $70.6 million in liquidated dam-
ages received by NTPC for the delay in commencement of the supply of
power from the projects
CERC instructed SECI to Compensate Solar Developer for GST Claims
• The Central Electricity Regulatory Commission (CERC) has ordered SECI
to compensate a solar developer on an annuity basis for the higher costs
incurred due to the imposition of GST.
• Talettutayi Solar Projects One (SolarArise) had submitted a petition seeking
approval of the implementation of GST rules as a ‘Change in Law’ event
and consequential relief to compensate for the increase in capital expens-
es due to the introduction of GST regulations.
• The Commission noted that, according to the terms of the power purchase
agreement (PPA), the adoption of the GST laws was a ‘Change in Law’
event.
• Due to the implementation of GST, invoices issued until the Commercial
Operation Date (COD) on the supply of goods can be claimed as a ‘Change
in law’ event.
• The petitioner’s request for “carrying cost” was denied by the Commission.
Draft Electricity (Promoting Renewable Energy through Green Energy
Open Access) Rules, 2021
• Ministry of Power has released its draft electricity (Promoting Renew-
able Energy through Green Energy Open Access) Rules, 2021. The
following highlights from the draft are as follows:
• Consumers having contracted demand of 100 kW and above will be
eligible for green open access.
22
• There should be uniform RPO applicable on all the obligated entities
i.e., DISCOM, Open access (OA) and Captive Consumers.
• There will be no restrictions on the capacity on behind the meter pro-
jects.
• Banking Charges will be permitted on a monthly basis.
• Cross subsidy surcharge (CSS) will not be increased during 12 years of
COD of plant by more than 50% of CSS fixed for the year in which OA is
granted.
• No additional surcharge will be applicable on green open access.
• Central nodal agency to be notified which will operate a single window
green energy open access systems for RE.
• Industries and other obligated entities can also meet their RPO by pur-
chasing green hydrogen as per the CERC norms.
• All applications for OA of green energy shall be granted within a maxi-
mum of 15 days.
Updated List – I Under ALMM Order for Solar PV Modules
• MNRE has updated List-I (Manufactures and Modes of Solar PV Mod-
ules) of ALMM Order, 2019. The updated list has 26 manufacturers now
with a total enlisted capacity of 8,367 MW, while the previous list had
23 manufacturers.
• CEL, Patanjali, and Jakson are the new entrants in the list.
• MNRE had issued this order to ensure that the products are made in
the units in which the products are claimed.
Ministry of Power released Draft Electricity (Late Payment Surcharge)
Amendment Rules, 2021
• Ministry of Power (MoP) has released Draft Electricity (Late Payment
Surcharge) Amendment Rules, 2021 on 19th August 2021. The impor-
tant highlights from the draft are mentioned below:
• Payments would be adjusted first against the late payment surcharge,
with the most overdue bills being adjusted first.
• If DISCOMs delay payments by more than 7 months, the generating
company may sell power to any consumer or licensee or power ex-
changes.
23
Benchmark Costs for Grid-Connected Rooftop Solar PV Systems for
the FY 2021-22
• Ministry of New and Renewable Energy (MNRE) with its notification
dated 18 August 2021 has issued benchmark costs for grid-connected
rooftop solar PV systems for the FY 2021-22.
• The benchmark costs for different system capacity range are men-
tioned below:
System Capacity 10 - 100 100 - 500
< 1 kW 1-2 kW 2 - 3 kW 3 - 10 kW
Range kW kW
For Gener-
al category 51,100 46,980 45,760 44,640 41,640 39,080
Bench- states/UTs
mark cost
(INR/kW) For Special
category 56,210 51,670 50,330 49,100 45,800 42,980
states/UTs
• The above benchmark cost includes cost of Solar PV panels (with
domestic cell and modules), inverter (single/3 phase wherever ap-
plicable) and BOS. The above benchmark costs are excluding of net
metering cost and battery back-up costs.
Benchmark Costs for Off-Grid and Decentralized Solar PV Systems for
the year 2021-22
• Ministry of New and Renewable Energy (MNRE) has issued the bench-
mark costs for off- Grid and centralized Rooftop Solar PV systems for
the year 2021-22.
• The following are the system-level benchmark costs:
24
Solarization of Grid-connected Individual Agricultural Pumps
Above 6 kW
Above 1 kW and Above 3 kW Above 10 kW
Capacity and up to 10
up to 3 kW and up to 6 kW and up to 15 kW
kW
Benchmark Cost
48,300 47,100 44,300 41,000
(INR/kW)
Standalone Solar Power Plants/Packs
Benchmark Costs (INR/Wp)
Capacity General Category States/ North-Eastern States/Hill
UTs States & UTs/ Island UTs
94 103
Up to 10 kW 74 81
62 68
84 92
Above 10 kW and up to 25 kW 66 72
55 60
• The benchmark cost for standalone solar pumps for the pump ca-
pacity between 1-10 HP is in the range of INR 1,05,500/pump - INR
5,56,700/pump.
CERC - Clarification and Modification of the GST/ Safeguard Duty
Orders
• CERC in its recent order dated 20.08.2021 provided clarity on issues
relating to annuity payments, annuity period and cut off dates.
• The important points from the order is as follows:
• The discount rate for annuity payments for expenditure incurred by
Solar Power Developers (SPDs) due to a change in law will be 10.41%.
(GST Laws or Safeguard Duty).
• The liability of SECI/ DISCOMs for ‘Monthly Annuity Payments’ starts
from 60th day from the date of orders or from the date of submission
of claims by SPDs, whichever is later.
25
• The tenure of annuity payments should be for 13 years.
• Actual cash outflow (due to levy of safeguard duty) for which bonds
have been executed will be payable and claims for Change in Law
towards Safeguard Duty will be governed by orders in the petitions
where the matter has been adjudicated.
• Only those equipment as per rated project capacity that have been
installed until COD and through which energy has flowed into the grid
until COD are eligible for reimbursement of Safeguard duty and GST.
• In case of supply of services related to goods procured up to COD, the
invoices are to be raised within 30 days of supply of such services.
• The SPDs shall have to pay all statutory taxes, duties, levies, and cess
etc. on Monthly Annuity Payments that may be required to be paid as
per the terms of PPAs.
Chhattisgarh CSERC Allows Net Metering for Distributed Renewable Energy
Systems up to 500 kW
• Chhattisgarh State Electricity Regulatory Commission (CSERC) has
amended the Grid-Interactive Distributed Renewable Energy Sources
Regulations, 2019 on 27 July 2021.
• As per the amendment, the capacity of the distributed renewable en-
ergy system must not exceed the approved load or contract demand
of the prosumer.
• Under the net metering arrangement, the minimum and maximum size
of renewable energy system that can be installed ranges between 1
kW to 500 kW.
• CSERC states that banking of 100% energy after netting will be per-
mitted for all captive and open access consumers. Charges at the rate
of 5% of banked energy will be payable by the prosumer. The banking
year will be from April to March.
• For the first 300 MW of open access renewable energy systems, the
cross-subsidy surcharge and transmission and wheeling charges in
cash are exempted for the entire useful life of the solar project.
• The transmission and wheeling charges in kind at 8% will be applicable
for the entire useful life of the solar project.
26
Delhi DERC (Renewable Purchase Obligation and Renewable Energy
Certificate Framework Implementation) Regulations,2021
• Delhi Electricity Regulatory Commission (DERC) has recently an-
nounced the ‘Renewable Purchase Obligation and Renewable Energy
Certificate Framework Implementation Regulations, 2021 which will be
effective from 13 April 2021.
• The Renewable Purchase Obligation (RPO) targets specified for Obli-
gated Entities shall be fulfilled in the following manner:
ParticularS FY 2020-21 FY 2021-22 FY 2022-23
Other Non-Solar RPO 10.25% 10.25% 10.50%
Non-Solar
HPO (applicable only for
- 0.18% 0.35%
Distribution Licensees)
Solar 7.25% 8.75% 10.50%
Total 17.50% 19.18% 21.35%
• The Obligated Entity shall comply with its RPO targets separately for
Solar & Non-Solar.
• On achievement of Solar RPO compliance to the extent of 85% and
above, can be met by excess Non-Solar energy/Non-Solar REC pur-
chased beyond Non-Solar RPO for that particular year.
• On achievement of Other Non-Solar RPO compliance to the extent of
85% and above, can be met by excess Solar energy/Solar REC/eligible
Hydro Energy purchased beyond Solar RPO or HPO for that particular
year.
27
Goa and Exemptions for solar projects denied by the JERC under the Open
Union Terri- Access Regulations
tories • In a recent order, the Joint Electricity Regulatory Commission (JERC)
for the state of Goa and union territories has rejected the petition filed
by AMP Energy Distributed Generation Two and AMP Energy Green
seeking directions on how to resolve difficulties in establishing captive
power projects in Goa, as well as exemptions for power drawl beyond
the permissible limit.
• According to the petitioners, if an open access consumer with a con-
tract demand of 10 MW is granted a maximum open access capacity of
6 MW, the maximum amount of electricity that can be drawn from the
distribution company (DISCOM) during any time block is only 4 MW.
• According to the DISCOM, an open access consumer can only request
maximum open access for capacity up to its contract demand.
• The DISCOM also stated that any deviation in the schedule will result in
the Electricity Department of Goa levying Deviation Settlement Mech-
anism (DSM) charges, which will raise the cost of power procurement.
• Thus, considering all the facts, the Commission concluded that the pe-
titioners did not require an exemption from any provision of the Open
Access Regulations, 2017.
Karnataka KERC Determines Generic Tariff of ₹3.26/kWh for Wind Projects in FY
2021-22
• The Karnataka Electricity Regulatory Commission (KERC), in a recent
order, has instructed that the generic tariff for wind power projects will
continue to be INR 3.26/kWh as determined in the earlier order dated
February 27, 2019.
• The validity period of the order is from April 1, 2021, to March 31, 2022.
• The Commission had mandated wind power procurement by distribu-
tion companies only through a competitive bidding process through its
order dated June 5, 2018.
28
APTEL Allows Recovery of Liquidated Damages and Denies Tariff Cut
for a Delayed Solar Project
• Appellate Tribunal for Electricity (APTEL) with its order dated 12 August
2021 has directed a solar developer to pay liquidated damages to the
Gulbarga Electricity Supply Company (GESCOM) for the delay of 31
days in the commissioning of a 40 MW solar power project in Karnata-
ka.
• According to APTEL, Azure Photovoltaic, the solar developer, was en-
titled to a tariff of INR 6.96/kWh to supply power to GESCOM from the
project’s commercial operation date (COD).
• APTEL also directed the DISCOM to pay the solar developer the
differential tariff between INR 6.96 /kWh and INR 6.51/kWh from the
commercial operation date until it starts paying INR 6.96 /kWh.
KERC Determines Tariff In Respect of Solar Power Projects (Including
Rooftop Solar) For FY 2022 to FY 2023
• Karnataka Electricity Regulatory Commission (KERC) has issued order
dated 18 August 2021 for setting the generic tariff for solar power pro-
jects (including rooftop solar projects) for FY 2022 and FY 2023.
• The commission hereby decides to adopt the following capital cost:
Rooftop solar INR/kW
Domestic consumers up to 10 kW 46,500
Other consumers (1 kW - 2 MW) 35,046
Ground mounted solar INR 350.46 lakhs/MW
29
• The commission hereby determines the generic tariff as follows: •
Rooftop solar INR/kW
4.02 (without capital subsidy) and 2.67 (with capital
Domestic consumers up to 10 kW
subsidy)
Other consumers (1 kW - 2 MW) 3.19
Ground mounted solar of less than 5 MW capacity 3.10
• The above tariff will apply to all new solar projects for which PPAs are
signed between April 1, 2021 – March 31, 2023.
Maharashtra MERC allowed Captive Power Producers to complete their Renewable
Purchase Obligation backlog.
• Maharashtra Electricity Regulatory Commission (MERC) in its order
dated 6 August 2021 allowed captive power producers to fulfil their
renewable purchase obligation (RPO) backlog for the financial years
starting 2015 to 2020, by 31 March 2022.
• For the operational duration of the regulations, MERC has set a 9% RPO
target for captive power plants commissioned before April 1, 2016. The
overall aim for projects starting after this date would be the target for
the year in which the project was commissioned.
• In this Order the tariff of the agricultural pump set category has been
increased by INR 0.09 /kWh, and the cross-subsidy surcharge for the
category has been reduced from 14.41% to 12.05%.
Maharashtra DISCOM Directed to Clear Dues of Four Wind Energy
Generators
• The Maharashtra Electricity Regulatory Commission (MERC) has or-
dered MSEDCL to pay for energy injected into the grid by four wind
energy projects- Enel Wind Project (Amberi), IOTA MTech Power, Par-
marth Wind Energy, and Sidhidata Power
• MERC has ordered the state DISCOM to clear payments to wind ener-
gy generators within one month and to specify the date of payment. It
also stated that if it fails to meet its obligations, penal interest of 1.25%
per month will be charged on the outstanding late payment surcharge.
30
Tamil Nadu APTEL directs DISCOM and Load Despatch Centre to Compensate for
Curtailment of Solar Power
• Appellate Tribunal for Electricity (APTEL) in its order dated 2 Au-
gust 2021, has directed Tamil Nadu State Load Despatch Centre
(TNSLDC) and The Tamil Nadu Generation and Distribution Corporation
(TANGEDCO) to pay compensation to developers on solar power cur-
tailment in Tamil Nadu during March 1 to June 30, 2017.
• APTEL directed the TNSLDC and TANGEDCO to pay the compensation
jointly within 60 days from the date of the order.
• The order states that TNSLDC and TANGEDCO have to pay compensa-
tion for 1,080 blocks at the rate of 75% of PPA tariff per unit along with
the 9% interest between March 2017 to October 2020
• The National Solar Energy Federation of India (NSEFI) had filed a pe-
tition before APTEL, challenging the validity of TNERC Order dated 25
March, 2019, regarding the curtailment of power by the DISCOMs in
Tamil Nadu.
• In this order, TNERC had rejected developers’ request for payment of
deemed generation charges for the loss of power generation units due
to backing down instructions.
Consultative Paper on Generic Tariff Order for Grid Interactive Solar
Energy generation System (GISS)
• Tamil Nadu Electricity Regulatory Commission (TNERC) has issued a
Consultative Paper on Generic Tariff order for Grid Interactive Solar
Energy generation System.
31
• The commission proposed capital cost for solar PV system are as fol-
lows:
Capacity Range INR/kWh
1- 10 kW 41,000
11- 100 kW 38,000
101 - 500 kW 36,000
501 – 999kW 32,000
• The commission proposed Levelized cost of energy for solar PV sys-
tems are as follows:
Capacity Range INR/kWh
1- 10 kW 3.99
11- 100 kW 3.70
101 - 500 kW 3.51
501 – 999kW 3.12
Draft Regulation on TNERC (Grid Interactive Solar PV Energy
Generating Systems) Regulations, 2021
• Tamil Nadu Electricity Regulatory Commission (TNERC) has issued a
draft regulation on Grid Interactive Solar PV Energy Generating Sys-
tems, Regulations 2021.
• The following important highlights from the draft are mentioned be-
low:
Net billing or net
Category Net-metering Gross Metering
feed- in
Only for domestic con-
Eligible consumers All consumers All consumers
sumers
Project capacity limit Up to 100% of the sanc- Up to 100% of the sanc- 1 kW to 999 KW capac-
MW tioned load tioned load ity.
Percentage of DTR grid
100% 100% 50%
penetration
32
• Banking is permitted until the end of the fiscal year. Also, there will be
no compensation for power that has been banked but has not been
used.
• Behind-the-meter systems and systems with storage are also allowed.
Telangana TSERC Approves PSAs for Solar and Solar Bundled with Thermal
Power
• Telangana State Electricity Regulatory Commission (TSERC) with its
order dated 25 August 2021 has approved six power sale agreements
(PSAs) dated 18 June 2016, between state distribution companies
(DISCOMs) and NTPC for 400 MW of solar power bundled with thermal
under Phase-II, Tranche-I of the National Solar Mission for 25 years.
• TSERC had approved the tariff of INR 5.19/kWh for 50 MW under the
domestic content requirement (DCR) category and 350 MW under
open category at INR 4.66/kWh (for 100 MW) and at INR 4.67/kWh (for
250 MW) for 25 years.
• TSERC also approved another PSA signed between the DISCOMs and
the Solar Energy Corporation of India (SECI) for 400 MW solar power
under ISTS program Tranche-VI at INR 2.78 /kWh for 25 years.
• The reason for the delay in seeking final consent for the NTPC PSAs
for bundled power is that the CERC took a long time to adopt the re-
spective tariffs that NTPC discovered through the competitive bidding
process.
Uttarakhand UERC proposed a draft on Generic Tariff of Solar PV Projects
• Uttarakhand Electricity Regulatory Commission (UERC) has issued a
draft proposal to review the benchmark capital cost and generic tariff
for solar photovoltaic (PV), solar thermal, and grid-interactive rooftop
solar and small solar PV projects. Which is applicable for the FY 2021-
22 and onwards until reviewed by UERC.
• Existing and proposed generic tariffs for solar PV plants and solar ther-
mal plants are:
33
Particulars Solar PV Plant (INR /kWh) Solar Thermal Plant (INR/kWh)
FY 2019-20 FY 2021-22 FY 2019-20 FY 2019-20
Gross Tariff 4.49 4.04 14.24 13.69
Less : Accelerat-
ed Depreciation 0.24 0.16 0.80 0.76
Benefit
Net Tariff 4.25 3.88 13.44 12.93
• UERC has proposed to adopt the benchmark capital cost as Rs 120
million/MW for solar thermal projects to be commissioned on or after
1 April 2021.
• UERC also proposed the Gross tariff (without subsidy) for rooftop and
small solar PV projects as given below:
Category Gross tariff (without subsidy in INR/kWh)
up to 10 kW 5.04
above 10 kW up to 100 kW 4.58
above 100 kW to 500 kW 4.26
above 500 kW to 1 MW 4.07
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