Monthly Update March 2021

monthly update March 2021

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Contents

2. Installed Capacity | 10

3. Investments/ Partnerships | 13

4. Monthly Import-Export Statistics | 16

5. Module Price Trends | 17

6. Monthly SECI Payments | 18

7. Policies and Regulations | 19

4 1. Tenders

New RFS • About 2232 MW of renewable tenders were issued in March 2021. SECI Issued alone has issued a project development tender of 1785 MW in Rajasthan. • Auctions were completed for 1800 MW of solar projects.

Fig 1.1: Details of new tenders issued in March 2021 SECI, 1785 MW Solar, Rajasthan

BHEL, 100 MW, BOS, Gujarat

Coal India, 100 MW, Solar PV, Gujarat

NHPC, 100 MW, Solar PV, Uttar Pradesh

UPNEDA, 75 MW, Solar PV, Uttar Pradesh

UPNEDA, 18 MW, Rooftop Solar, Government Buildings

NCRTC, 11 MW, Rooftop Solar, Delhi-Meerut Corridor

GESCOM, 10 MW, Rooftop Solar, Karnataka

UPNEDA, 10 MW, oﬀ-grid solar, Uttar Pradesh

NVVN, 10 MW, Floating/ Ground Mounted Solar

BHEL, 10 MW, Solar, WBSEDCL, West Bengal

ITI, 1.2 MW, Rooftop or Ground Mounted, Kerala

ITI, 1.2 MW, Rooftop or Ground Mounted Solar, Karnataka

SPMCIL, 1 MW, Solar

0 400 800 1200 1600 2000 Capacity (MW)

Source: JMK Research

5 Table 1.1: New RFS issued

Commis- sioning Bid Sub- Tender Capaci- Minimum Tender Name Technology Other Details timeline mission Scope ty (MW) CUF from PPA Date signing SECI, 1785 MW PBG – INR 0.8 Utility Scale Project Devel- 20th- Solar, Rajasthan, 1785 million 17% 18 months Solar opment Apr-2021 Mar 2021 NHPC, 100 MW, Solar PV, Uttar Utility Scale 5th- EPC 100 12 months Pradesh, Mar Solar May-2021 2021 Coal India, 100 PBG - equivalent to MW, Solar PV, Utility Scale 15th- EPC 100 3% of the contract 28.9% Gujarat, Mar Solar Apr-2021 amount 2021 PBG – 10% of the BHEL, 100 MW, Utility Scale purchase order’s 10th- BOS, Gujarat, BOS 100 Solar basic value Mar-2021 Mar 2021

PBG – INR 1.05 UPNEDA, 75 million MW, Solar PV, Utility Scale Project Devel- 7th- 75 Ceiling tariff – INR 17% 15 months Uttar Pradesh, Solar opment Apr-2021 3/kWh Mar 2021

UPNEDA, 18 MW, Rooftop 26th- Solar, Govern- Rooftop Solar 18 Mar-2021 ment Buildings, Mar 2021 NCRTC, 11 MW, Rooftop Solar, 8th- Delhi-Meerut Rooftop Solar RESCO 11 48 months Apr-2021 Corridor, March 2021 BHEL, 10 MW, Solar, WBSED- Utility Scale EMD - INR 0.51 31st- O&M 10 CL, West Ben- Solar million Mar-2021 gal, Mar 2021 NVVN, 10 Floating/ MW, Floating/ Ground 6th- Ground Mount- EPC 10 Mounted Apr-2021 ed Solar, Mar Solar 2021

6 Commis- sioning Bid Sub- Tender Capaci- Minimum Tender Name Technology Other Details timeline mission Scope ty (MW) CUF from PPA Date signing UPNEDA, 10 MW, off-grid Security amount – Small Scale 31st- solar, Uttar 10 3% of the contract’s 9 months Solar Mar-2021 Pradesh, Mar total value 2021 Indigenously GESCOM, 10 manufactured MW, Rooftop solar panels (both 12th- Rooftop Solar 10 Solar, Karnata- cells and modules) Apr-2021 ka, Mar 2021 should be used for this project

EMD – INR 0.5 ITI, 1.2 MW, million Rooftop or Small Scale Performance Secu- 13th- Ground Mount- 1.2 15% 8 months Solar rity Deposit – 5 % of Mar-2021 ed, Kerala, Mar the total contract 2021 value EMD – INR 0.34 ITI, 1.2 MW, million Rooftop or Small Scale Performance Secu- 21st- Ground Mount- 1.2 15% 8 months Solar rity Deposit – 5 % of Mar-2021 ed Solar, Karna- the total contract taka, Mar 2021 value

SPMCIL, 1 MW, Small Scale 23rd- 1 Solar, Mar 2021 Solar Apr-2021

PBG: Performance Bank guarantee EMD: Earnest Money Deposit

Source: JMK Research

7 Re-Tendered

Table 1.2: Re-tendered

Commis- Bid sioning Minimum Sub- Tender Name Technology Tender Scope Other Details timeline CUF mission from PPA Date signing

GUVNL, 700 MW, Utility Scale Project EMD – INR 0.4 million/MW 12th- Solar, (Phase IX-R), 17% 15 months Solar Development PBG – INR 0.94 million/MW Apr-2021 Mar 2021

GUVNL, 100 MW, Utility Scale Project EMD – INR 0.4 million/MW 12th- Solar, (Phase X-R), Mar 15 months Solar Development PBG – INR 0.94 million/MW Apr-2021 2021

Source: JMK Research

Date Extension

Table 1.3: Date Extension

Commis- Tender Tender Capacity Other De- Minimum Bid Submis- Technology sioning Name Scope (MW) tails CUF sion Date timeline

SECI, Pan In- EMD – INR 0.5 dia, 2500 MW, Utility Scale Project Devel- million/MW 2500 30 months 8th-Apr-2021 Thermal + RE, Solar opment PBG – INR 0.1 Mar 2020 million/MW

SECI, 50 MW, Solar PV and Solar and Agro Project Devel- Agro PV , Ta- 50 18 months 5th-Apr-2021 PV opment mil Nadu, Jan 2021

8 Commis- Tender Tender Capacity Other De- Minimum Bid Submis- Technology sioning Name Scope (MW) tails CUF sion Date timeline

SECI, 25 MW, Solar PV, West Utility scale EMD: INR 0.4 EPC 25 9 months 9th-Apr-2021 Bengal, Jan solar million 2021

SECI, 15 MW, EMD – INR 13.5 Floating Solar, Project Devel- million Bilaspur, Him- Floating Solar 15 21% 18 months 4th-May-2021 opment PBG – INR 27 achal Pradesh, million Jul 2020

Source: JMK Research

Auctions Completed

Table 1.4: Auctions completed

Capac- Capacity Mini- Commissioning Tender ity ten- Status allotted mum timeline from PPA Winners Details Name dered (MW) CUF signing (MW) • Adani – 300 MW (INR 2.77/kWh) SECI, 1200 • Ayana Renewables – 300 MW (INR 2.78/ MW, Wind kWh) Auction (Tranche • Evergreen Power Mauritius – 150 MW (INR Complet- 1200 1200 22% 18 months X), Pan 2.78/kWh) ed India, Dec • JSW Future Energy – 450 MW (INR 2.78/ 2020 kWh)

• Sprng Energy – 120 MW (INR 2.2/kWh) GUVNL, • NTPC– 150 MW (INR 2.2/kWh) 500 MW, Auction • Coal India– 100 MW (INR 2.2/kWh) Solar PV Complet- 500 500 17% 18 months • TP Saurya (Tata Power) – 60 MW (INR 2.2/ Phase XII, ed kWh) Gujarat, • SJVN – 70 MW (INR 2.21/kWh) Jan 2021

Source: JMK Research

9 2. Installed Capacity

In February 2021, a total of 395.14 MW of solar and wind energy capacity was added, taking the cumulative RE capacity to 92.97 GW as on February 28th, 2020.

Fig 2.1: State-wise installations in Solar and Wind during February 2021 - 395.14 MW

Cumulative Installations Capacity installed in February 2021

all Hydro Sm

er 5% ow 300 P % io 11 B 250

Source: MNRE, JMK Research

S o 4 l 2 a 200 % r

100%= 92.97 GW 150

100 Capacity (MW) Capacity

2 50 4

n i

0 Solar Wind

Tamil Nadu added the maximum solar capacity whereas Gujarat added maximum wind capacity in Feb 2021 of about 87.7 MW and 61.9 MW respectively.

Fig 2.2: State wise Utility scale Solar Wind installed capacity in Feb 2021 100

80 Source: MNRE, JMK Research

60 (MW)

20 Capacity

0 Tamil Nadu Rajasthan Gujarat Karnataka Madhya Others Pradesh

10 Recently Commissioned Projects

Table 2.1: List of recently commissioned projects

Capaci- Date of Project Developer Name Technology State ty (MW) Commissioning

Renew Power Wind 300 Gujarat Mar-2021

Adani Green Energy Wind 100 Gujarat Mar-2021

THDC India Limited (NTPC arm) Solar 50 Kerala Mar-2021

Solar (Captive AMP Energy Open Access 28 Uttar Pradesh Mar-2021 Project)

Adani Solar 25 Uttar Pradesh Mar-2021

Waaree Energies Limited Solar 16 Maharashtra Mar-2021

Purushotam Solar 3 Rajasthan Mar-2021

Source: Industry news articles, JMK Research

Cleanmax Solar moves into the wind-solar hybrid space

• Cleanmax Solar has entered into the wind-solar hybrid projects space for the first time, commissioning 110 MW of projects. The new policies of the Gujarat and Andhra Pradesh state governments has inspired Cleanmax Solar for taking this step.

NTPC to commission India’s largest floating solar power plant at Ramagundam by May

• NTPC Southern Region, which is in the process of implementing about 450 MW of solar capacity, is all set to commission about 217 MW floating solar capacity, including one of the largest floating solar power plant of 100 MW at Ramagundam by May this year.

• These floating solar projects are coming up at Ramagundam power project (100 MW), which will be single location largest floating solar plant in the country as of now, 92 MW floating unit at Kayamkulam gas plant in Kerala and a 25 MW unit at Simhadri power plant.

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Table 3.1: Investment and Deals in March, 2021

Stakes Asset Deal Company Name Deal Type Sector Investor Ac- acquired Value quired Around 873 MW of wind capacity will be $ 961 Greenko Energy Holdings Acquisition Wind 21.8% added into Greenko’s Orix Corporation million portfolio.

Power Trading Corpora- $ 275 Acquisition Wind 288 SJVN tion India (PTC Ltd) million

Standard Chartered Bank, Intesa Sanpaolo, MUFG Bank, Sumito- mo Mitsui Banking Corporation, Cooperative Rabobank U.A., Adani Green Energy Lim- Renew- $ 1.35 Debt DBS Bank Ltd., Mizuho Bank, ited (AGEL) able billion Ltd., BNP Paribas, Barclays Bank PLC, Deutsche Bank AG, Siemens Bank GmbH and ING Bank N.V

Solar Avaada Energy Acquisition (group 21.32 Bharti Airtel 8.53% captive)

$ 61.45 Shapoorji Pallonji Acquisition Solar 75 Adani Green Ltd 100% million

The deal will give Edelweiss Infrastruc- ture Yield Plus access Edelweiss Infrastructure Yield Engie (India) Acquisition Solar 74% to 2 GW of solar Plus assets that Engie is developing Japan International Cooperation Tata Cleantech Capital Renew- Agency (JICA) $ 91.38 Debt Ltd able co-financed with Sumitomo million Mitsui Banking Corporation.

13 Stakes Asset Deal Company Name Deal Type Sector Investor Ac- acquired Value quired

This will help AGEL to Spinel Energy and Infra- Acquisition Solar build 25 GW capacity Adani Green Energy 100% structure by 2025

Source: JMK Research

PGCIL acquires Ramgarh new transmission to facilitate 8.1 GW of solar power

• Power Grid Corporation of India Limited (PGCIL), a state-owned power transmission company, has acquired the Ramgarh New Transmission Limited (RNTL) under Phase II, Part-A of the ‘transmission strengthening program’. It will help to evacuate 8.1 GW of power from solar energy zones in Rajasthan. The entity was acquired for about Rs 56.1 million (~$767,703), including 50,000 equity shares at par at Rs 10 (~$0.136) each.

Hero Future Energies garners huge response for its first dollar bond offering

• Hero Future Energies has issued their first USD bond in global markets. The green bond was issued through Clean Renewable Power (Mauritius), a wholly owned subsidiary of Hero Future Energies Asia. HEF’s green bond received over $ 3 billion orders and was successfully priced at a coupon rate of 4.25% for a 6-year maturity period. The issuance was oversubscribed by more than 8.5 times.

14 Adani arm AGEL to acquire 50 MW solar asset from SkyPower Global

• Adani Green Energy has announced that it has signed a share purchase agreement for acquisition of 100% stake in an SPV holding 50 MW operating solar project of the SkyPower Global.

• The project location is in Telangana and was commissioned in October 2017 and has a long-term Power Purchase Agreement (PPA) with the Southern Power Distribution Company of Telangana.

• With this acquisition, AGEL will increase its operating renewable capacity of 3,395 MW with a total portfolio of 14,865 MW.

Husk Power to raise $110 mn in 2021; Aims to become first profitable minigrid company

• Husk Power Systems has announced its plan to raise $50 million in equity and $60 million in debt in 2021 in order to continue growth at a Com- pounded Annual growth Rate (CAGR) of 100%.

• Husk Power ended 2020 with more than 5,000 small business customers, a 300 per cent growth over 2019, and expects that number to surpass 12,500 over the next year.

15 4. Monthly Import/ Export Trends

Compared to January 2021, solar imports and exports have fallen by nearly 6.72% and 43.65% respectively in February 2021. Compared to previous year, on a YoY basis, solar imports have increased by 38% and exports have declined by 54%.

Fig 4.1: Exports - Imports trend

Exports Imports Feb-21 Jan-21 Dec-20 Nov-20 Oct-20 Sep-20 Aug-20 Jul-20 Jun-20 May-20 Apr-20 Mar-20 Feb-20 Jan-20 Dec-19 Nov-19 Oct-19 Sep-19

5000 0 5000 10000 15000 20000 Amount (INR million)

Source: Ministry of Commerce, JMK Research

16 5. Module Price Trends

Prices of global multi crystalline modules, mono PERC modules and mono PERC module (India) have not increased in March 2021. Compared to previous year, on a YoY basis, prices of global multi crystalline modules and mono PERC modules have declined by 10% and 7% respectively.

Fig 5.1: Solar Multi Cells and Modules Price trends

0.25

0.24

0.23 Mono PERC India

0.22

0.21 Mono PERC modules Global

0.20

0.19 Prices (USD/Wp) Multi crystalline module Global

0.18

0.17

0.16

0.15

Jul-20 Jan-21 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Feb-21 Mar-21

Source: PVInfoLink, JMK Research

17 6. Monthly SECI Payments

The Solar Energy Corporation of India Limited (SECI) paid nearly INR 4.25 billion and INR 3.96 billion to developers for the purchase of solar and wind power in January 2021 and December 2020 respectively. Compared to December 2020, the payment disbursal has increased by ~7% in January 2021.

Fig 6.1: Monthly payments by SECI to solar and wind developers

6.0

5.2 4.9 4.6 4.5 4.4 4.5 4.2 4.1 4.0 3.9 3.8 3.7 3.6 3.7

3.0 Amount (INR Billion)

1.5

0.0

Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21

Source: SECI, JMK Research

18 7. Policies and Regulations

Central High Court of Bombay Put Stay on DISCOM Privatization Auction Won by Torrent Power

• Bombay High Court suspended the auction after a public interest litigation was filed against the privatization of the DISCOM. Bombay High Court has suspended the auction for a 51% equity stake in the power distribution company (DISCOM) for the Union Territory of Dadra and Nagar Haveli and Daman and Diu.

• Last year in May 2020, the central government came up with a proposal to privatize DISCOMs in the union territories. DISCOMs in the union territories come under the administration of the central government while the respective state governments govern those in the states. Only two of the six union territories have called for bids to privatize the DISCOMs so far.

• Earlier Torrent Power had emerged as the highest bidder for acquiring a 51% stake in the DISCOM in Dadra and Nagar Haveli and Daman and Diu. The acquisition process was part of the government’s initiative to privatize DISCOMs to make them more efficient.

• DISCOM privatization initiative has drawn huge opposition from the DIS- COMs. Recently, the Supreme Court of India vacated a stay order given by the High Court of Punjab and Haryana on the privatization of Chandigarh’s DISCOM. The High Court had given the stay order after a petition was filed by the UT Powermen Union of Chandigarh.

MNRE Discontinues Benefit of Concessional Customs Duty for Import- ed Items for Solar Plant

• MNRE has stopped processing all applications seeking concessional customs duty certificates for setting up solar power projects from 2 February 2021.

• This move complies with the Ministry of Finance’s withdrawal of the concessional customs duty on items imported for setting up solar power projects.

• MNRE asked solar power developers to upload the reconciliation reports relating to the concessional customs duty certificates issued before Feb- ruary 2nd on the government portal within the prescribed time limit after

19 commissioning the projects.

• MNRE also requested solar manufacturers and associations to provide a list of high-value machinery and capital goods used in manufacturing solar modules from cells, solar cells from wafers, and thin-film solar modules.

• Earlier in the budget 2021, Union Finance Minister Nirmala Sitharaman had announced that the exemption of customs duty to all items of machinery, instruments, appliances, components, or auxiliary equipment for setting up solar power generating projects would be revoked.

• The government also proposed raising the customs duty on solar inverters from 5% to 20% and on solar lanterns from 5% to 15% to encourage domestic production.

MNRE Announces Basic Customs Duty of 25% on Solar Cells and 40% on Modules, Effective from April 2022

• Ministry of New and Renewable Energy (MNRE) with its notification dated 9 March 2021 has announced the basic customs duty (BCD) on imported solar cells and modules starting 1 April 2022.

• As per this notification, BCD on solar modules will be 40%, and solar cells will be 25%.

• The announcement to impose BCD on solar cells and modules does not allow grandfathering of projects already auctioned. The directive has also received the consent of the Ministry of Finance.

• MNRE has also directed all implementing agencies and stakeholders to make a note of the announcement and include it in the tender documents. Bidders are cautioned to take the BCD into account while quoting tariffs in all future bids where the last date of bid submission falls after this notification. In all such cases the imposition of BCD will not be considered as ‘change in law.’

Ministry Issues First Batch of ALMM Applicable to Solar Bids After 10 April, 2021

• Ministry of New and Renewable Energy (MNRE) has issued the list of models and module manufacturers under the Approved List of Models and Manufacturers (ALMM) order. Only 23 manufacturers having a total installed capacity of 6682 MW will be eligible for use in government and government-assisted projects, schemes, and programmes.

• According to this notification, the enlistment is valid for two years and can be renewed on the submission of the necessary documents. The Ministry

20 can carry out production and sale audits, random quality tests, and inspect the facility to ensure compliance. In case of any non-compliance, the enlisted manufacturer will be removed from the list.

• The manufacturers whose modules have been enlisted under the ALMM order include Mundra Solar, Vikram Solar, Bharat Electronics, Emmvee Photovoltaic Power, and ORB energy.

• Aforementioned notification adds that only the models and manufacturers included in the list will be eligible for government or government-assisted projects in the country, including the projects for the sale of electricity to the government under the guidelines laid down by the central government.

• As per this notification the ALMM concerning the List-I (modules) and List- II (cells) will be applicable only for projects for which the bids will be con- cluded after 30 days of the list’s publication. Accordingly, the ALMM order concerning List-I modules will apply to projects that have the last date of bid submission on or after 10 April 2021.

MNRE issues revised list of Wind Turbine Models & Manufacturers

• Ministry of New & Renewable Energy (MNRE) has come up with a revised list of 14 wind turbine manufacturers with the model details and their expiry date.

Ministry of Finance Notifies Countervailing Duty Imposition on Solar Glass Imported from Malaysia

• Ministry of Finance has notified the levy of a countervailing duty on the cost, insurance, and freight (CIF) value on the imports of textured and tempered (whether coated or uncoated) glass from Malaysia.

• As per this notification the countervailing duty imposed would be applicable for five years (unless revoked) from the date of publication in the Official Gazette and would be payable in Indian currency.

• Earlier in December 2020, the Directorate General of Trade Remedies (DGTR) had announced that it would levy countervailing duty on tempered glass from Malaysia to mitigate the benefits enjoyed by producers of the glass in Malaysia.

• Indian solar glass manufacturer Gujarat Borosil Limited had petitioned the DGTR to impose a countervailing duty on imports of textured toughened (tempered) glass from Malaysia.

21 • Borosil in its petition had submitted that the producers of tempered glass in Malaysia had benefitted from subsidies provided at various levels by the government of Malaysia and other public bodies.

• According to this notification the duty is applicable if the tempered glass has been exported to India from Malaysia at subsidized prices or the domestic industry has suffered material injury due to the subsidization of tempered glass or in case where the material injury has been caused by the subsidized imports of the tempered glass originating in or exported from Malaysia.

CERC Adopts Tariff for 3 GW of Thermal-Bundled Solar Projects Ten- dered in 2015

• Central Electricity Regulatory Commission (CERC) has passed an order ap- proving tariffs ranging between Rs. 3.15 /kWh and Rs. 5.19 /kWh for 3 GW of solar projects bundled with thermal power under NTPC Limited tender issued in 2015.

• NTPC had filed a petition seeking CERC approval for the discovered tariffs in May 2020 even though the projects were awarded in 2017. The projects, spread across Andhra Pradesh, Karnataka, Rajasthan, Telangana, and Uttar Pradesh, were awarded to 29 companies, including Azure Power, ACME Solar, ReNew, Tata Power, SBG Cleantech, and Prayatna Developers (Adani).

• NTPC submitted that it had made arrangements to sell the 3 GW of power to the respective distribution companies (DISCOM) for the same tariff and the trading margin set as Rs. 0.07 /kWh on this tariff.

• NTPC said that the delay in approaching the CERC for tariff approval was due to ambiguity regarding the jurisdiction of the central and state electricity regulatory commissions (SERC) in the approval and procurement processes.

• CERC subsequently adopted the tariffs discovered through the competitive bidding process with effect from 26 May 2020. The tariffs will be valid for the entire duration of the power purchase agreements signed with the successful bidders.

CERC approves GTAM Contracts at PXIL

• CERC approved the introduction of GTAM Contracts on its platform for exclusive trading of renewable energy.

• PXIL highlighted that the proposed contracts will provide a market-based mechanism where RE surplus and RE deficit states can trade RE and bal-

22 ance their RPO targets.

• Commission approved PXIL to have GTAM contracts under the categories of Green Intra Day Contract, Green Day Ahead Contingency Contract, Green Any Day Contract and Green Weekly Contract. Under Green Any Day Contracts and Green Weekly Contracts, the RE generator will be given flexibility to intimate its final schedule on a D-1 basis at 7:00 hrs which will help in addressing the forecasting error.

• PXIL suggested that in case of low demand, RE power plants can sell their surplus power in GTAM subject to obtaining NOC from respective Load Despatch Center and consent from the Discoms (if RE power Plant is having Power Purchase Agreement with the Discoms).

• CERC mentioned that the ISTS charges and losses will be waived of, as per the fulfilling of the conditions specified under Sharing Regulations.

JERC Allowed Levelized Tariff of Rs. 7.12/kWh for a Rooftop Solar Sys- tem in Dadra & Nagar Haveli

• Joint Electricity Regulatory Commission (JERC) has set a tariff of Rs. 7.12 / KWh for 485 kW rooftop solar power projects and 900 kW ground-mounted projects at Kala in the Union Territory of Dadra and Nagar Haveli.

• JERC also approved tariffs of Rs. 6.82 /kWh and Rs. 4.98 /kWh for a 3.2 MW and a 200-kW ground-mounted solar power project at Velugam and Athal, respectively.

• JERC further stated that these projects tariffs could only be allowed pro- spectively from 1 April 2021. .

• DNHPDCL filed a petition to determine the levelized tariff for power from ground-mounted solar projects and rooftop solar projects.

• JERC considered Rs. 60,440/kW for calculating the capital cost of ground-mounted solar power project at Velugam and Athal, which led to the total project cost of Rs. 193.41 million after adjusting Rs. 15 million subsidy from the capital of the project cost.

• JERC considered the debt-equity ratio of 70:30 as proposed by the petitioner. The normative interest rate was considered 12.76% and 12.30% for all projects commissioned during FY 2016-17 and FY 2017-18. The return on equity was taken as 20% per annum for the first ten years and 24% per annum from the 11th year onwards. The operation and maintenance (O&M) charges were put at Rs. 13 lakh /MW, and the depreciation rate at 5.83% for the first 12 years and 1.54% from the 13th year onwards.

23 • Considering all above-mentioned factors, JERC arrived at the tariff of Rs.7.12 /kWh for 485 kW of rooftop projects and ground-mounted projects at Kala.

• Since the petitioner had not filed the petition in time, it would not be entitled to any tariff recovery for the years (2016-17, 2017-18, and 2018-19). JERC further said that the solar tariff could not be allowed retrospectively, and the consumer cannot be burdened due to DISCOM’s failure to submit the petition on time.

Supreme Court Confirms NCLT Stay of Termination of GUVNL’s PPA with Solar Developer

• In recent Order Supreme Court has said that National Company Law Tribu- nal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) had stayed the termination of the power purchase agreement (PPA) between a solar power developer and the Gujarat Urja Vikas Nigam Limited (GUVNL).

• Gujarat government allocated 25 MW capacity to Astonfield Solar Gujarat to set up a solar project on 1 August 2009. The developer expressed its intent to set up a 10 MW grid-connected solar power project and sell the entire energy to GUVNL.

• GUVNL entered into a PPA with the solar developer on 30 April 2010, to purchase solar power.

• Aggrieved by the judgment of NCLT, GUVNL approached the Supreme Court on two grounds i.e., NCLT and NCLAT do not have the jurisdiction to adjudicate a contractual dispute and the termination of the PPA was valid under the provisions of the PPA

• The Supreme Court noted that NCLT had the sole power of addressing cases arising solely from or those relating to the corporate debtor’s insolvency. It said that there was no other ground to terminate the PPA signed between the parties.

• Supreme Court observed that NCLT was empowered to restrain GUVNL from terminating the PPA and clarified that the decision was based on the fact that PPA was central in the present case for the success of the corporate insolvency resolution process (CIRP) since it was the sole contract for the sale of electricity which was entered into by the generator.

Gujarat GUVNL Directed by APTEL to Maintain Status Quo in the 700 MW Scrapped Solar Auction

• Appellate Tribunal for Electricity (APTEL) has asked the Gujarat Urja Vikas Nigam Limited (GUVNL) to maintain the status quo in the scrapped 700

24 MW solar auction until further orders. It said that the distribution company (DISCOM) cannot proceed with the request for selection (RfS) as of now, nor can it open the technical and financial bids.

• APTEL directed the state DISCOM to file its reply by 31 March, 2021, and the appellants to file the rejoinder by 3 April. The case has been posted for further hearing on 14 and 19 April 2021.

• In March 2020, GUVNL had invited bids for 700 MW of projects to be developed at the Dholera Solar Park. In the auction for the reissued tender in August 2020, Vena Energy Renewables and Tata Power quoted a tariff of Rs. 2.78/kWh for 100 MW of projects each, ReNew Solar quoted Rs.2.79 / kWh for 200 MW, and SJVN quoted Rs. 2.80 /kWh for 100 MW.TEQ quoted Rs. 2.81/kWh for 500 MW of projects but was awarded only 200 MW under the bucket filling method.

• Afterwards, in another auction by GUVNL (Phase XI) for 500 MW of projects, a record low tariff of Rs.1.99 /kWh was discovered in December 2020. After this low bid, GUVNL decided to cancel its earlier auction for 700 MW of solar projects and retender it (Phase IX), hoping to discover a lower tariff.

• After GUVNL decided to cancel the letter of award, the developers filed a petition with APTEL which directed GUVNL to extend the validity of bids in its scrapped 700 MW solar auction by two weeks. The order was issued on 19 Feb, 2021. Now APTEL has asked GUVNL to maintain the status quo.

GERC Approved ‘Change in Law’ Clause in Draft PPA for Setting Up Distributed Solar Projects

• Gujarat Electricity Regulatory Commission (GERC) has approved the Guja- rat Urja Vikas Nigam Limited’s (GUVNL) request seeking incorporation of the ‘Change in Law’ clause in the draft power purchase agreement (PPA) for setting up of small-scale solar projects.

• GERC also allowed the Gujarat Energy Transmission Corporation Limited (GETCO) to be considered the co-petitioner as the projects’ grid connectivity granted by the distribution company (DISCOM) is to be certified by GETCO.

• Earlier GUVNL had filed a petition with GERC for incorporating the ‘Change in Law’ clause in the draft PPAs executed by the state DISCOMs and project developers under the government of Gujarat’s policy for “Develop- ment of Small-Scale Distributed Solar Projects.”

• GUVNL submitted that the proposed draft PPA required GERC approval,

25 and the same had to be signed by the project developers and the distribution licensee.

• Previously GUVNL invited applications for setting up small-scale solar projects ranging between 0.5 MW and 4 MW. Developers would be eligible for an additional Rs. 0.20 /kWh above the average tariff discovered by GUVNL during competitive bidding for large-scale solar projects, which is Rs. 2.63 /kWh. The applicable tariff for the PPAs signed from October 2020 to March 2021 would be Rs. 2.83 /kWh.

GERC Approved Torrent Power’s Plea for Changes to ‘Force Majeure’ and ‘Change in Law’ Clauses

• Gujarat Electricity Regulatory Commission (GERC) has approved the changes sought by Torrent Power to the ‘force majeure’ and the ‘change in law’ clauses in the draft power purchase agreement (PPA).

• GERC stated that as per the draft PPA, no party would be in breach to the extent that the performance of its obligations is delayed due to a force majeure event and that there will be no adjustment in the tariff.

• GERC also stated that Torrent Power had requested for modification of Clause 9.1.1 (b) with “Introduction/modification/changes in the rates of any taxes/duties/cess/surcharge on import of solar power equipment.

• The developer had also requested the Commission to add in relief Clause 9.2.2, “This increase or decrease in tariff due to this change in the cost of PV modules will be limited to actual DC capacity or 150% of contracted AC capacity whichever is lower.”

• GERC noted that the petitioner had provided separate relief clauses for ‘change in law’ whereby as per clause 9.1.1 (a), which results in a decrease or increase by 1% in the estimated revenue for the contract year for which such adjustment becomes applicable, the tariff paid to the power producer will be appropriately increased or decreased with GERC’s approval.

• Similarly, in case of the ‘change in law’ resulting on account of clause 9.1.1 (b), the petitioner had proposed that the power producer will be allowed an increase or decrease in the tariff of Rs.0.01 /kWh for every increase or decrease of Rs. 200,000 /MW in the project cost.

• GERC approved the changes proposed by Torrent Power to the ‘change in law’ clause. GERC however, refused to allow changes sought to the commissioning schedule.

26 Tamil Tamil Nadu Issues New Tariff Order On Solar Procurement and Relat- Nadu ed Issues

• TNERC has proposed to levy 50% of the charges applicable for conventional power for transmission, wheeling, scheduling, and system operation charges for solar power procurement by distribution licensees in the new tariff order.

• TNERC has also proposed to levy 70% of the cross-subsidy surcharge applicable for conventional power for solar power procurement. In this Order a control period of one year from April 1, 2021 has been considered.

• As per this Order open access charges and other terms and conditions specified will apply to all the solar power generators, irrespective of their commissioning date.

• For any deviation from the bidding guidelines, the licensee will have to obtain approval from the Commission.

• As per this Order 100% of the charges specified in the relevant orders would apply for projects availing the renewable energy certificates (RECs). Solar generators would have to bear the actual line losses in kind as specified in the Commission’s respective orders.

• In this Order regarding the grid-availability charges, the state regulator said that any power drawn during the solar generating period of 7 AM to 6 PM will be charged at HT industrial tariff.

• According to this Order wheeling of energy for solar power for all prospec- tive open access consumers will be permitted only during the generation of electricity and would be adjusted from block to block for the billing period. Excess consumption will be charged at the tariff applicable to the consumer, subject to the terms and conditions of the supply.

• As per this Order after the billing period, the excess energy generated but not consumed may be sold at the rate of 75% of the respective solar tariff determined by TNERC in the generators’ respective orders. When no tariff has been set, the energy may be sold at 75% of the latest tariff discovered.

• TNERC in previous tariff orders for solar power had limited the purchase by the distribution licensee from solar power projects of 1 MW capacity and above. The same limitation will continue.

Maharashtra MERC Denies Solar Developer’s Plea to Return Bank Guarantee

• Maharashtra Electricity Regulatory Commission (MERC) with its Order dated 8 March 2021 has dismissed ACME Solar’s plea for the return of perfor-

27 mance bank guarantee (PBG).

• MERC stated that the power purchase agreement (PPA) specifies conditions for the return of PBG. The Commission noted that it could not go beyond the PPA provisions, nor was there any provision to replace PBG with any other instrument.

• Earlier , ACME Heergarh Powertech and ACME Solar Holdings had filed a petition requesting MERC to direct the Maharashtra State Electricity Distri- bution Company Limited (MSEDCL) to replace the PBG of Rs. 420 million with an equally effective mechanism it has proposed. The petitioners had asked MERC to direct MSEDCL to return the PBG.

• The company submitted two alternatives to MSEDCL for the return of PBG. The PBG should be released and replaced with either a corporate guarantee of the parent company or with bonds equivalent to Rs.420 million.

• MSEDCL stated that it could only return PBG as per the terms and conditions of the PPA after achieving the commercial operation date.

• MERC stated that ACME had previously filed a petition seeking a direction to declare its PPA with MSEDCL as void on account of ‘force majeure’ and discharge the parties from their respective responsibilities and direct MSEDCL to return its PBG. In its order dated 20 June 2020, MERC had rejected the request.

• MERC ruled that there was no provision in the PPA to replace PBG with any other instrument as proposed by the petitioners.

MERC Accepted Safeguard Duty Extension as Change in Law for Tata Solar Project

• Maharashtra Electricity Regulatory Commission (MERC) has accepted Tata Power Renewable Energy’s (TPREL) petition seeking to declare levy of safeguard duty (SGD) on the import of solar cells as a ‘Change in Law’ event in the power purchase agreement (PPA).

• MERC said that additional expenditure and other consequential impacts shall be considered on an actual basis for reimbursement under ‘Change in Law’.

• TPCD initiated a competitive bidding process (followed by reverse auction) to procure up to 150 MW of solar power for 25 years. The Letter of Award (LoA) was issued in favor of TPREL on 31 October 2019, to develop a solar photovoltaic project in Jaisalmer, Rajasthan. As per the LoA, TPREL was required to execute a PPA with TPCD.

28 • TPREL submitted performance bank guarantees amounting to Rs. 300 million in favor of TPCD on 1 January 2020. TPREL then entered into a PPA with TPCD to supply 150 MW solar power at a tariff of Rs.2.83/kWh generated from the solar PV plant.

• MERC approved the PPA on 4 December 2019 and the scheduled commercial operation date as per the PPA was 3 July 2021.

• TPREL had procured solar PV modules from Lianyungangshenzhou New Energy Company, China. Since the old SGD Notification mandated that the last date for the imposition of SGD was 29 July 2020, TREPL had planned the procurement of solar PV modules after July 2020, by which date the effective SGD would not have been applicable.

• However, the Ministry of Finance, on 29 July 2020, extended the applicability of the SGD from 30 July 2020, to 29 July 2021. TPREL, on 5 August 2020, had informed TPCD about the new notification and stated that the same should qualify as a ‘change in law’ event as per the PPA.

• TPCD submitted to MERC that the impact of SGD on the project cost and tariff should only be determined at the time of commercial operation date of the project only after considering actual payment made against SGD presented with documentary evidence.

MERC Approves Green Power Tariff of Rs. 0.66/kWh for Consumers Opting for 100% Renewables

• Maharashtra Electricity Regulatory Commission (MERC) has, in a recent order, allowed a ‘Green Power Tariff’ of Rs. 0.66/kWh to be levied on consumers opting for 100% green energy.

• MERC noted that all consumers, including extra high voltage, high voltage, and low voltage categories, will be eligible to opt for 100% renewable power on the payment of the Green Power Tariff.

• Tata Power Company-Distribution (TPC-D) had filed a petition seeking approval for the ‘Green Power Tariff’ for consumers meeting their require- ments through 100% renewable energy.

• In line with the methodology adopted by the Karnataka Electricity Regu- latory Commission (KERC), TPC-D computed the Green Power Tariff to be paid by the consumers as Rs.0.56 /kWh.

• In its submission, TPC-D said that the methodology adopted by it was sim- ilar to the one approved by KERC. It insisted that there should be a standard methodology for calculating the Green Power Tariff and the standard procedure should be followed by all the DISCOMs.

29 • MERC observed that computing the cost of Green Power Tariff based on the average cost of renewable energy sources was the correct approach.

• Considering difficulties in stipulating DISCOM-wise Green Power Tariff, the Commission ruled that the tariff would be uniform for all DISCOMs in the state.

• MERC arrived at a figure of Rs. 1.33 /kWh to be considered as the Green Power Tariff. MERC decided to levy only 50% of the tariff determined, which is Rs. 0.66 /kWh.

• The regulator noted that TPC-D’s contention that it had to maintain separate cost allocation for the consumers could not be termed as the primary function of DISCOM, which is to supply energy. Therefore, the revenue from the green tariff will be part of the regular annual recurring revenue.

• MERC also added that it had set out an increasing trajectory to fulfil RPO compliance by the obligated entities. Complying with the same neces- sitates DISCOMs to tie up with various renewable sources. The DISCOMs would require an additional purchase of renewable power corresponding to the increasing trajectory.

• “Given this, if the consumer is not an obligated entity under RPO Regula- tions, it would be appropriate to count that energy towards RPO fulfilment of the DISCOM which will reduce the additional cost of the utility for pur- chasing the same and ultimately benefit its consumers,” the Commission said.

Karnataka KERC Slashed Tariff for a Delayed, Partially Synchronized Rooftop Solar System by 46%

• Karnataka Electricity Regulatory Commission (KERC) has issued directions for a new power purchase agreement (PPA) to be signed for a 1 MW rooftop solar power system at a revised tariff of Rs. 5.2/kWh in the case of an incomplete and delayed project by a rooftop solar developer.

• Srishyla Educational Trust had filed a petition with KERC asking to direct the Bangalore Electricity Supply Company (BESCOM) to pay a tariff of Rs. 9.56/kWh for the power generated from the 1 MW rooftop solar system at its premises with net metering. BESCOM had rejected this tariff citing multiple violations to the terms of the PPA in the petitioner’s execution of the project.

• BESCOM said that Srishyla had injected more than 100% of the energy that the project could generate without authorization and had installed four solar meters instead of one as per the terms and conditions of the PPA. The petitioner was only eligible for a tariff of Rs. 3.57 /kWh given these

30 violations. However, it was discovered that the petitioner had only installed a 418-kW system instead of its claimed capacity of 487 kW

• KERC ruled that the petitioner had violated the terms and conditions of the PPA and the rooftop solar guidelines. Also, the partial implementation of the rooftop solar system was a violation of the PPA terms, and the guidelines issued.

• It directed that solar generation must be installed alongside the existing bi-directional meter and that the gross energy generation must be record- ed and then, within two months from the date of the order, sign a fresh PPA for 985 kW of power at a tariff of Rs. 5.2 for a reduced duration of 20 years. KERC rejected all other reliefs claimed by Srishyla.

KERC Rejected BESCOM Plea to Cut Tariff for Solar Power Purchased Over Contracted Capacity

• Karnataka Electricity Regulatory Commission (KERC) with its Order dated 5 March 2021 has dismissed the petition filed by Bangalore Electricity Supply Company Limited (BESCOM) for the redetermination of tariff for purchase of additional power or to relieve it from the obligation to purchase additional energy beyond the contracted capacity specified in the power purchase agreement (PPA).

• BESCOM filed a petition with KERC for redetermination of tariff for the purchase of additional power at rate of Rs. 2.36 /kWh or relieve it from the obligation of purchase of additional power beyond the contracted capacity.

• Walwhan Renewable Energy (formerly Welspun Solar Kannada Private Limited) entered into a PPA with BESCOM on 14 January 2015, for the sale of power from its two solar power projects of 50 MW each in the Kop-pal district of Karnataka. The company filed a petition with KERC in 2016, requesting KERC to direct the state DISCOM to purchase additional energy at Rs. 6.51/kWh. KERC partly allowed the petition and directed BESCOM to purchase the energy injected at the tariff of Rs. 4.11 /kWh

• Walwhan Renewable Energy KERC in its order dated 29 May 2020 directed BESCOM to make payments at the rate of Rs. 4.11/kWh to purchase additional electricity.

• State DISCOM stated that during the intervening period, it had entered into long-term contracts with other power generators to purchase solar power at the rate of Rs. 2.85/kWh and Rs.2.90 /kWh. Therefore, the signing of SPPA at Rs. 4.11/kWh for additional energy injected was not viable.

• KERC after scrutiny stated that the earlier orders passed by it remained un- challenged. Instead of complying with KERC directions, BESCOM filed the

31 petition for redetermination of the tariff at Rs. 2.36 /kWh for the additional energy injected by the generator.

KERC – Determination of Generation Tariff for Wind power projects for FY 2021-22

• Karnataka electricity regulatory commission (KERC) has invited comments and suggestions on the Generation Tariff for the Wind Power Projects for FY 2021-22 by 8th April 2021.

• During FY 20, the tariff was determined at Rs 3.26 per unit applicable to the reverse auction and any energy purchased towards banking by DIS- COM.

• Recently, tariff for the wind power projects had gone below Rs 3.00 per unit and TNERC in a tariff order approved procurement of wind energy at a tariff of Rs 2.91 per unit with a trading margin of 7 paise per unit.

• Hence, the commission has proposed a tariff of Rs. 2.91 per unit which will come into effect from 1st April 2021 till 31st March 2022.

KREDL issued Draft Renewable Energy Policy for 2021-2026 Aims at Adding 2 GW of Rooftop Solar

• KREDL has issued the ‘Draft Karnataka Renewable Energy Policy 2021- 2026” aimed at developing 20 GW of renewable energy projects with and without energy storage and 2 GW will be rooftop solar projects

• Policy which will be valid for five years or until a new policy is announced.

• In terms of policy measures and incentives, the draft policy aims to make the project development process easier. The incentives aim to aid developers with the sale of energy, land acquisition, obtaining grid connectivity, project allotment, clearances, energy storage, and metering and connectivity.

• Karnataka will also promote renewable energy parks under the PPP model or through private development by investing up to 50% of the equity as required. Solar power projects above 1 MW will be considered as MW-scale grid-connected solar projects. Projects will be allowed to be developed under the open access route to sell energy within the state.

• The state will also promote rooftop solar projects under net metering and gross metering as per the Karnataka Electricity Regulatory Commission’s (KERC) rooftop regulations. Karnataka will also promote the peer-to-peer

32 model of rooftop solar energy trading under the state’s regulations. Sep- arately, off-grid, distributed agricultural solar generation, floating solar, battery swapping, and charging projects will also be promoted.

• The revised policy also aims to promote new wind energy projects and the repowering of existing wind energy projects. Project developers will be allowed to develop projects under the open access route to sell wind energy in the state.

• Solar-wind hybrid energy projects, energy storage projects, biomass, waste-to-energy, mini and small hydro projects, and new projects will be given additional support.

• KREDL also prescribed the procedure for applying for projects and land allotment for all renewable energy-based projects. It also specified the maximum extent of land that can be allotted to individual project types. Solar projects can be allowed a maximum of 3 acres per MW, solar projects with trackers are allowed 3.5 acres/MW, wind projects are allowed 2.5 acres of land per wind turbine generator, while rooftop solar projects are allowed 100 square feet/kW.

Chhattisgarh Chhattisgarh Invites Comments on Draft Renewable Purchase Obliga- tions Regulations for 2021-2026

• CSERC with its notification dated 26 February 2021 has issued a draft notification for the state’s RPO and REC framework regulations for 2021-2026. CSERC invited comments and suggestions on the draft regulations on or before 8 April 2021.

• The regulations are set to come into effect from 1 April 2021.

• Above regulations also apply to open access (OA) consumers with a capacity of 1 MW and above who procure non-renewable power will be subject to a minimum RPO. This applies only to consumers who do not have a supply agreement with their respective area’s DISCOM.

• Obligated entities who consume power to the extent of the total RPO specified from fossil fuel-based co-generation power projects will be exempted from the minimum RPO requirement. Obligated entities that do not meet their targets during any financial year will be directed to maintain a separate fund for an amount that will be specified by CSERC.

• CSERC will determine the amount based on the shortfall in units and the forbearance price as determined by the Central Electricity Regulatory Commission (CERC). This fund will be utilized as per the state Commis- sion’s directives.

33 • As per the Draft Regulations, all renewable projects commissioned during the control period will be given the option to follow either the tariff structure and other conditions per the CSERC’s tariff regulations or the REC mechanism for power pricing from the project.

• Renewable projects with long-term PPAs for the sale of power at a prefer- ential tariff that has prematurely terminated their agreements will not be eligible for participating in the REC program for three years from the date of termination of their agreement.

• OA renewable power consumers will be required to pay cross-subsidy surcharges as specified by CSERC OA regulations. No banking facilities will be provided for third-party sales from renewable sources through open access.

Andhra Andhra High Court Allowed DISCOMs to Buy Power from Spot Market Pradesh Ignoring Letter of Credit Order • In a recent order Andhra Pradesh High Court has allowed the distribution companies (DISCOMs) of the state to operate through power exchanges and to secure power through open access.

• Southern Power Distribution Company of Andhra Pradesh (APSPDCL) and Eastern Power Distribution Company of Andhra Pradesh (APEPDCL) had filed a petition against the centre direction to comply with the require- ments of opening letters of credit with wind and solar power developers with a consequence of disallowing the DISCOMs access of power from power exchanges and short-term open access in case of non-compliance.

• In this case the respondents included the Ministry of Power, the Ministry of New and Renewable Energy (MNRE), the Power System Operation Corpo- ration Limited (POSOCO), and project developers.

• DISCOMs further contended that they had the right to participate in trading power on exchanges and sell the power through open access.

• The Court said that the Ministry of Power and MNRE were not empowered to enforce PPAs signed between the DISCOMs and the power genera-tors. The court also added that the power of the national load despatch center and regional load despatch centers was only to ensure the systems’ smooth and efficient performance.

• Considering all the factors, the Court said that the DISCOMs were allowed to operate through power exchanges and secure power through open access. However, the court granted no relief to clear the dues owed by the DISCOMs to the power generators.

34 • As per Ministry of Power new regulations regarding the late payment surcharge announced in February, a DISCOM which has a late payment surcharge outstanding against a bill after the expiry of seven months from the due date will be debarred from procuring power from a power exchange or grant of short-term open access until such bill is paid. The High Court has completely ignored this order by the center.

Telangana TSERC approved Commissioning Date Extension for Enrich 7 MW Pro- ject

• Telangana State Electricity Regulatory Commission (TSERC) approved the extension of a 7 MW solar project commissioning date due to force majeure events.

• TSERC directed the state distribution company (DISCOM) to refund the amount sum of Rs. 2.42 million adjusted towards the penalty for the delay in commissioning the project.

• Southern Power Distribution Company of Telangana (TSSPDCL) floated a tender on 1 April 2015 for 2,000 MW of solar under the competitive bidding route.

• Enrich Energy was declared the successful bidder for setting up a 7 MW solar project at Thattepally village in the Rangareddy district of Telangana with a quoted tariff of Rs. 5.72 /kWh. The company submitted an amount of Rs. 4.9 million as the performance bank guarantee (PBG) and signed the power purchase agreement (PPA) on 26 February 2016.

• Enrich Energy could not complete the project on time, and the project was completed on 31 March 2017. As cited by the developer, the reasons for the delay were ‘force majeure’ events affecting execution.

• In a letter issued on 21 April 2017, Telangana government directed the state DISCOMs to extend the SCOD of all solar projects up to 30 June 2017, without any penalties. The date of commissioning of the project as per PPA was 25 February 2017, and whereas the actual commissioning was achieved on 31 March 2017.

Rajasthan Rajasthan Extends Net Metering for Rooftop Solar Until 30 June 2021

• Rajasthan Electricity Regulatory Commission (RERC) on 24 March 2021 has clarified that the net metering facilities for rooftop and small grid-connected solar systems will be valid up to 30 June 2021.

• RERC has amended the Clause of ‘Draft Grid-Connected Distributed Re- newable Energy Generating Systems Regulations, 2020’ as per which net metering for rooftop solar and small grid-connected solar projects was to

35 expire on 31 March 2021.

• RERC proposes to issue finalised Regulations in due course of time. Meanwhile, to bring regulatory certainty it is clarified that Rooftop and Small Solar Grid Interactive Systems commissioned under Net Metering agreements up to 30 June 2021, shall continue to operate under the Net Metering arrangement till the period of Connection Agreement, as per the provisions of the Rajasthan Electricity Regulatory Commission (Connectiv- ity and Net Metering for Rooftop and Small Solar Grid Interactive Systems) Regulations, 2015 and subsequent amendments thereof.

Uttar UPERC allows Ceiling Tariff of Rs.3.10/kWh for Small Solar Projects Pradesh Under PM-KUSUM Program

• Uttar Pradesh Electricity Regulatory Commission (UPERC) with its order dated 23 March 2021 has approved several deviations in the request for selection (RfS) and power purchase agreement (PPA) for procurement of power from the small capacity (0.5 MW to 2 MW) grid-connected solar photovoltaic power projects under ‘Component-A’ of Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program.

• UPERC heard a petition filed by Uttar Pradesh New & Renewable Energy Development Agency (UPNEDA) and Uttar Pradesh Power Corporation (UPPCL) in which they had sought approval of deviations from the guidelines issued by the Ministry of New and Renewable Energy (MNRE) along with the approval of bid documents (RfS and PPA).

• Some of the deviations approved include the approval of ceiling tariff of Rs. 3.10 /kWh to allow maximum participation for the discovery of competitive bid price; disallowing bidders with solar projects less than 0.5 MW and approval of the submission of bid security declaration instead of earnest money deposit for tenders under the PM-KUSUM scheme.

• After considering the deviations suggested, UPERC approved the ceiling tariff of Rs. 3.10 /kWh to allow maximum participation to discover competitive bids.

• The petitioners had proposed that the land lease should be a bipartite agreement between farmers and the developers, and the distribution company (DISCOM) should not be held responsible for failing to get the land leased.

• The petitioners also sought to disallow bidders with solar projects less than 500 kW capacity since it was difficult for DISCOMs to manage smaller projects. The Commission approved the request.

36 • UPERC stated that since the MNRE had already approved the submission of bid security declaration instead of EMD for tenders held under PM-KUS- UM, the question of deviation did not arise.

• UPERC also approved the mentioning of details about grid connectivity which, according to the petitioners, were not mentioned earlier.

• UPERC approved the petitioner’s plea for an increase in late payment surcharge’s applicability from 30 days to 60 days and an extension of time to claim a rebate by DISCOMs on payments from seven days to ten days.

West WBERC Allows Net Metering for Rooftop Solar Systems Installed Be- Bengal fore 30 June 2021 • West Bengal Electricity Regulatory Commission (WBERC) has ruled that consumers who install solar photovoltaic systems before 30 June 2021, will be eligible for net metering facilities.

• WBERC had issued its ‘Cogeneration and Generation of Electricity from Renewable Sources of Energy (First Amendment)’ Regulations, 2020 in December 2020, revising renewable purchase obligation (RPO) targets and increasing the number of obligated entities. The regulations were aimed at promoting rooftop solar adoption through net metering and net billing facilities.

• In January, the WBERC had issued amendments to the Cogeneration and Electricity Generation from Renewable Sources Regulations 2013. A signif- icant amendment was the mandate of a gross metering facility for rooftop solar systems above 5 kW in capacity.

• The amended regulations allowed net metering for agricultural consumers and all other consumers with a sanctioned load of up to 5 kW and net billing facilities for consumers with a higher than 5 kW load. Existing net metering consumers were allowed to continue with their arrangements.

• Subsequently, after scrutinizing comments received from various stakeholders WBERC ruled that consumers who install their solar systems before 30 June 2021, would be eligible for net metering.

• Eligible Consumers must notify their respective distribution licensees about their installed systems before this date.

• Distribution licensees, in turn, must verify and confirm the date of installation of these solar photovoltaic systems before allowing net metering facilities for them.

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