Market Intelligence Report INDIA CLEANTECH
Sep 10, 2019
BIS Certification for Solar Modules: Increasing Cost and Contents Restricting New Technologies Industry News 2 Over the past five years, India has become a thriving market for solar component suppliers. Between Company News 8 2014 and 2019, the installed capacity of solar energy projects has grown at a compounded annual Project News 9 growth rate (CAGR) of over 60%. The demand for solar modules has been strong and is expected to remain so over the next few years. The Indian solar market has mostly been dominated by international Tenders & Auctions 10 module suppliers, while Indian module suppliers are gaining market share after safeguard duty was Policy 13 imposed. Some international module suppliers have raised concerns with respect to these regulations. According to international module suppliers, the Indian government’s implementation of these quality control measures is slowing down new product launches due to various technicalities, and this is preventing Indian developers from accessing the latest in solar equipment technology. It all started when the government issued regulations for the standardization and quality control measures for cell and module technology last year to maintain the quality products being deployed. However, the quality control measures introduced by the government has suffered from rocky implementation. In October 2018, Mercom reported that the guidelines concerning testing of PV modules had not produced the desired results. Contrary to what was expected, manufacturers were not yet queuing up to get their modules certified. Moreover, only a handful of domestic and international players had received the certification from the Bureau of Indian Standards (BIS). Around the same time, the Ministry of New and Renewable Energy (MNRE) also launched measures that mandated suppliers to enlist models and manufacturers of solar modules to be published on the ‘Approved List of Models and Manufacturers (ALMM)’. Further, in December 2018, the MNRE asked lenders to insist on BIS certification of solar modules rather than a tier-1 list. While these steps have been taken to protect the industry at large, they have posed a hurdle for manufacturers trying to introduce new products in the Indian market. The regulations have put pressure on international suppliers to comply with Indian standards. However, some module suppliers have been facing challenges which have manifested into increased costs and time to adhere to the guidelines. Module suppliers have voiced their concerns about both the issues – getting BIS certification and enlisting on the ALMM. Suppliers told Mercom that there are several issues concerning the BIS standards not being updated to the latest edition and technical requirements that limit module suppliers from offering new technologies to the Indian market. Commenting on the BIS certification norms, Ponesekar. P, vice president at Risen Energy, told Mercom, “It is unfortunate that BIS came up with a standard (IS 14286:2010), which is a reference of IEC 61215/61730:2005 edition). This standard is globally outdated; the current global IEC standard is the one from the 2016 edition. Every module manufacturer is wasting around six months and about C4 million (continued on page 2)
MEET THE MERCOM INDIA TEAM AT RENEWABLE ENERGY INDIA EXPO IN GREATER NOIDA! The Mercom India will be at Renewable Energy India Expo being held at the India Expo Centre in Greater Noida on September, 18, 19 & 20, 2019. Come visit us at Booth No. 10.402 in Hall 10 to meet our team and get to know more about the most trusted source for accurate, up-to-date information on India’s clean energy sector. We are a knowledge partner to the REI conference and will be presenting a white paper on the Indian Solar Market. To set up a meeting with our team, email: [email protected]
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Sep 10, 2019
($57,000) for each module they register for this BIS registration purpose. Benefits of the move remain unknown.” According to Ponesekar, technology upgrades are happening at a very fast pace in the Chinese solar industry, and because of the BIS registration process, the Indian market was only able to procure outdated module technology. “The biggest drawback of BIS is that it doesn’t allow the latest technology and new upgraded products to be supplied to India since the modules registered under BIS has to adhere to the Balance of Materials (BoM) which was approved. This restriction makes the Indian buyer lose out on getting the best product. Nobody will spend time and money to keep updating technology to the latest specifications.” A concern of Ponesekar was in line with the views of Manish Narula, senior director of business development, Jinko Solar, that the cost of registering for the ALMM ...READ MORE Sep 04
INDUSTRY NEWS Renewable Developers May Approach National Company Law Tribunal: RK Singh Warns Andhra The Union Minister of Power R.K. Singh has written a letter to Y.S. Jagan Mohan Reddy, the chief minister of Andhra Pradesh, regarding the non-payment of dues from state electricity distribution companies to renewable energy developers. Singh has pointed out that state DISCOMs owe more than C20 billion (~$280 million) to renewable energy developers. According to Singh, the non-payment of dues to developers may cause them to default on their borrowings from government institutions like Indian Renewable Energy Development Association (IREDA), adding to non-performing assets in the sector and the developers could further drag DISCOMs to the National Company Law Tribunal. Singh also mentioned that DISCOMs in Andhra Pradesh owed Solar Energy Corporation of India (SECI) over C2.43 billion (~$34 million). The letter also stated that developers have asked for enforcement of the tripartite agreement to recover their dues. Considering the risks, the power minister has requested the chief minister of Andhra Pradesh to instruct the state DISCOMs to start paying the renewable energy generators as well as SECI. The Central Electricity Authority’s (CEA) recent report states that the total payment due for 513 renewable projects now amounts to C97.356 billion (~$1.356 billion) as of July 31, 2019, thus showing an increase of nearly ~ C15 billion (~$0.21 billion) compared to the previous figure ofC 82.3 billion (~$1.14 billion) for the same period. Previously the payment dues were for 472 projects spread across the states of Andhra Pradesh, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Punjab, Odisha, Tamil Nadu, Rajasthan, Telangana, and Uttar Pradesh. At the beginning of August 2019, Mercom reported that the CEA is planning to maintain a database of all outstanding dues by DISCOMs to renewable energy generators. In May 2019, Mercom reported that payment delays were becoming a problem again for solar and wind project developers in India, especially in Andhra Pradesh, Tamil Nadu, and Telangana. Sep 10
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MNRE Alerts Stakeholders to Comply with the ALMM Order for Government Solar Projects The Ministry of New and Renewable Energy (MNRE) has issued a notification shedding light on its earlier order regarding the compulsory registration under the Approved Models and Manufacturers of Solar Photovoltaic Modules. The MNRE has stated that the list would consist of List-1 which specifies the models and manufacturers of solar PV modules while List-II will specify the models and manufacturers of solar PV cells. Both the lists will come into effect from March 31, 2020. The MNRE states that after March 31, 2020, only those models and manufacturers that are included in ALMM lists of solar PV cells and modules will be eligible to use in government or government-assisted projects or projects under government programs. Further, the order will also apply to projects which are set up for the sale of electricity to the government. However, all those projects for which bids have been finalized before the issuance of the ALMM order dated January 2, 2019, will be exempted from the mandatory requirement of procurement of cells and modules enlisted in the ALMM order. To be included in List-1, the MNRE, in its letter dated January 2, 2019, had stated that manufacturers should first be certified by the Bureau of Indian Standards (BIS). The enlistment into List 1 will be valid for two years, which can be renewed on the submission of documents which proves that the manufacturer’s performance has been satisfactory. MNRE has issued the letter to secretaries of power/energy/renewable energy of states and the chairman and managing director of SECI and NTPC to ensure they follow the order and comply with it. The letters have also been sent to all associations of solar developers and manufacturers, financial institutions, banks to ensure compliance. The letter gives a heads up to all stakeholders to comply and follow the order as the deadline is just a few months away ...READ MORE Sep 09
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Sep 10, 2019
Payment Dues of State DISCOMs to Renewable Power Developers Escalate to C97 Billion The Central Electricity Authority’s (CEA) recent report states that the total payment due for 513 renewable projects now amounts to C97.356 billion (~$1.356 billion) as of July 31, 2019, thus showing an increase of nearly ~ C15 billion (~$0.21 billion) compared to the previous figure ofC 82.3 billion (~$1.14 billion) for the same period. Interestingly, the report also states that one of the renewable developers withdrew its information submitted on August 12, 2019, regarding the payment dues of C17,225 million (~$240 million). Including that, the amount would come to C114.6 billion (~$1.56 billion). In total, these 513 projects have renewable energy projects generating capacity of over 26 GW. When Mercom contacted CEA for more information, a senior official said, “The developer was not interested in disclosing the names in the public domain.” In August 2019, Mercom had reported that the payment dues were for 472 projects spread across the states of Andhra Pradesh, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Punjab, Odisha, Tamil Nadu, Rajasthan, Telangana, and Uttar Pradesh. Meanwhile, three renewable energy generators, amended the details of their dues, thus giving relief to the Solar Energy Corporation of India (SECI). “Now, there is no amounts pending to developers from SECI. Instead, SECI has receivables of C6,090 million (~$85 million) from DISCOMs,” states the report. As reported earlier by Mercom, the payment dues of SECI had reached C357 million (~$4.96 million). The three states which top the list of defaulters include Andhra Pradesh, Tamil Nadu, and Telangana. Andhra Pradesh has dues totaling C25,092 million (~$349 million) followed by Tamil Nadu which needs to pay a total sum of C24,134 million (~$336 million). Compared to the previous report, the amount to be paid has increased by C3.91 billion (~$54.5 million). In case of Andhra Pradesh and Tamil Nadu, the payment of dues has increased by C5.94 billion (~$82.8 million). At the beginning of August 2019, Mercom reported that the CEA is planning to maintain a database of all outstanding dues by DISCOMs to renewable energy generators. In May 2019, Mercom had reported about the persistent problems being faced by renewable energy project developers due to the ongoing delays in payments. Sep 09
Rooftop Solar Subsidies Should be Transferred to Beneficiaries, Not System Integrators The Uttar Pradesh Solar Energy Developer Association (UPSEDA) has written a letter to the Ministry of New and Renewable Energy (MNRE) and the additional secretary of the cabinet secretariat highlighting its concerns regarding the second phase of the rooftop solar program. According to UPSEDA, the guidelines for the latest rooftop solar program only allow the transfer of subsidies granted under this program to empanelled vendors and system integrators instead of directly to the beneficiary account, which was the case in all previous programs of the MNRE (including the first phase of the rooftop solar program). The association has argued that the guidelines which allow the transfer funds to only empanelled vendors violate the direct benefit transfer (DBT). The DBT was launched by the Government of India to reform its delivery system by re-engineering the existing process in welfare programs for the efficient flow of funds and to ensure accurate targeting of the beneficiaries, de-duplication, and reduction of fraud. (continued on page 5) 4 Go to category: Industry Company Project Tenders & Auctions Policy Market Intelligence Report INDIA CLEANTECH
Sep 10, 2019
Further, UPSEDA has reiterated that the DBT mission is to be followed by all ministries or departments and their attached institutions, and applies to all central government-sponsored programs where a component of cash is transferred to individual beneficiaries. Stating this, the association has requested the cabinet secretariat to step in and call for the amendment of guidelines issued by the MNRE. In March 2019, the President of India approved the launch of the second phase of grid-connected rooftop solar photovoltaic (PV) program in India. The program aims to help achieve the target of 40 GW of rooftop solar PV capacity by 2022. Under phase-II, 38 GW of grid- connected rooftop solar PV capacity is expected to be installed. The central government is expected to provide C118.14 billion (~$1.66 billion) as central financial assistance (CFA) for capacity building, service charges, and incentives to distribution companies. Sep 09
Maharashtra DISCOM to Procure 300 MW of Solar Power from EESL to Meet its RPO Last month, the Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) had filed a petition with the Maharashtra Electricity Regulatory Commission (MERC) seeking the approval to procure an additional 300 MW capacity of solar power from the Energy Efficiency Services Limited (EESL). The commission, in turn, has approved MSEDCL’s submission and allowed the procurement of 300 MW of solar power from the EESL at a tariff of C3/kWh ($0.042) for its RPO fulfillment. The power would be procured on a long-term basis from ground-mounted solar projects proposed to be set up at the premises of MSEDCL/Maharashtra State Electricity Transmission Company Limited (MSETCL), gram panchayats, and other government-owned lands. MSEDCL had also requested that this procurement of 300 MW of solar power should be counted towards the fulfillment of its renewable purchase obligation (RPO). The DISCOM had, in its petition, requested the MERC to allow the procurement of solar power generated under this project at a tariff of C3/ kWh ($0.042). It had also suggested that the individual projects that would be developed under this program will be between 0.3 MW to 10 MW capacity. According to the petition, until now, MSEDCL has floated tenders for nearly 3,800 MW capacity for the procurement of solar power. The MERC has been reluctant to approve tariffs above C3 ($0.040)/kWh. Earlier, the commission had dismissed a petition filed by MSEDCL seeking the approval of tariff in the range of C3.16 (~$0.045)/kWh to C3.30 (~$0.046)/kWh for 1,170 MW of solar projects to be set up under the Mukhyamantri Saur Krishi Vahini Yojana. According to Mercom Solar Project Tracker, Maharashtra has 1.4 GW of cumulative large-scale solar installed capacity as of Q2 2019. A total of 1,087 MW of solar projects are under development in the state. However, the state has been struggling to meet its solar and non-solar RPO, and recently, MSEDCL filed a petition before the MERC seeking its approval for the procurement of 500 MW of flexible and schedulable power to fulfill its RPO for 25 years. Before this, Maharashtra had floated a tender for the long-term procurement of 1 GW of solar power to meet its RPO in June 2019. The ceiling tariff for that tender was set at C2.80 ($0.038)/kWh. Sep 06
Kerala Set to Develop 200 MW of Rooftop Solar Projects under Soura Program In June 2019, the Kerala State Electricity Board (KSEB) had filed a petition with the Kerala Electricity Commission (KERC) to implement projects comprising a total capacity of 200 MW of solar rooftop systems during 2019-20 to meet its renewable purchase obligations (RPO). After examining the petition, the KERC has allowed KSEB to proceed with the tendering process for 200 MW of rooftop solar projects under the Soura Phase-1 program. According to the petition, the KSEB had requested the commission to allow tendering of projects under three models: Under Model 1, the rooftop and land of willing consumers will be utilized for installing solar projects by KSEB. The energy generated must be fed into the grid for 25 years, and a fixed percentage (10%) of the generation will be given as the incentive or lease rent to the premise owner for his use. (continued on page 6) 5 Go to category: Industry Company Project Tenders & Auctions Policy Market Intelligence Report INDIA CLEANTECH
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Under Model 2, KSEB will install rooftop or ground-mounted project in consumer premises and the energy generated will be sold to the consumer for 25 years through PPA at a fixed tariff. Under Model 3, the consumer will be the investor, and KSEB will set up the solar project for the consumer, and excess energy will be fed into KSEB’s grid and settled as per net-metering regulations. The first two models would be implemented by the KSEB through engineering, procurement, and construction (EPC) model or renewable energy service company (RESCO mode) and the third model will be implemented by the developer under EPC mode. Nearly 150 MW of projects would be developed under the tariff-based (RESCO) model, and 50 MW will be developed under EPC mode. According to KSEB, the total investment required for the 50 MW under EPC mode is C2.5 billion (~$34.83 million), and the KSEB is coordinating with Punjab National Bank to arrange the finance. Below are the upper ceiling rates for EPC bids and the upper ceiling tariffs for the RESCO model that have been set by KSEB in the petition submitted. The KERC has advised KSEB to use an electronic portal for the tender process and adopt the upper ceiling tariffs and benchmark costs set by the CERC. Further, the commission has also recommended that the tender documents must be prepared with the technical assistance of the Asian Development Bank (ADB), engaged by the MNRE for assisting with the implementation of rooftop solar projects in the state of Kerala. KSEB had started online registration of the program in July 2018 and closed it on January 31, 2019. A total, 2,78,257 consumers, registered under the program. Out of the total registration, around 70,000 applications have the best roof for installation of Solar PV systems, with total capacity about 400 MW, according to KSEB. Last month, the Kerala government launched the Soura program to add 1,000 MW of solar projects to the existing capacity of KSEB by 2022. The projects will be implemented under the Urja State Kerala Mission and will be executed to fulfill the state’s renewable purchase obligation. Recently, the KSEB had invited interested local bidders for the selection of an EPC contractor for the development of grid- connected rooftop solar projects on buildings owned by the district panchayath of Thiruvananthapuram. Sep 06
Release Bank Guarantees within 45 Days of Solar and Wind Project Completion: MNRE The Ministry of New and Renewable Energy (MNRE), through a letter, Typically, a PBG is released immediately after the successful has directed NTPC and Solar Energy Corporation of India (SECI) to commissioning of a renewable energy project after taking into release performance bank guarantee (PBGs) for the solar and wind account any liquidated damages or penalties due to delays in power projects that have been commissioned. commissioning as per provisions stipulated mentioned in a power According to the letter PBGs may be released within 45 days purchase agreement. from COD (Commercial Operation Date), subject to fulfillment of However, it seems like developers have been facing issues requirements of submission of all the requisite documents. concerning the timely release of bank guarantees. The delay in the Further, MNRE also mentioned that in case any developer finds release of PBGs can result in financial losses for developers as their delays in release of PBGs, it should be brought to the notice of the funds get blocked. MNRE and the managing director of the concerned intermediary In a recent case, the Central Electricity Regulatory Commission procurer. (CERC) had ruled in favor of three independent power producers The letter was approved by the secretary of the MNRE. (IPPs) regarding the payment of their performance bank guarantee (PBG) to the tune of C255 million ($3.7 million). A PBG is an irrevocable unconditional bank guarantee deposited by wind or solar power developers to SECI/NTPC after 30 days from The three IPPs had petitioned the CERC seeking the release of the the date of issuance of the letter of intent, which is issued when they performance bank guarantees retained by the NTPC. In its order, the successfully bid for projects. commission has ruled that the retention of the performance bank guarantees by NTPC is illegal and arbitrary. Sep 05
Maharashtra Commission Asks DISCOM to Settle Dues of Wind Power Generators Mrs. Aishwarya Rai Bachchan along with Relishah Export (RM) and (MERC) against the Maharashtra State Electricity Distribution Classic marble Company Private Limited (CMCPL), have jointly filed Company Limited (MSEDCL) for the delay in payments towards the a case with the Maharashtra Electricity Regulatory Commission power generated from wind energy projects. (continued on page 7) 6 Go to category: Industry Company Project Tenders & Auctions Policy Market Intelligence Report INDIA CLEANTECH
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Similarly, Vostok (Fareast) Securities Private Limited (VFSPL), It also stated that MSEDCL has started paying some amount Silverline Investment Company Private Limited (SICPL), and Bengal including late payment charges which were due to be paid to the Cardboard Industries & Printers Private Limited (BCIPPL), have also wind generators after the original petition, but, there is still some filed petitions against MSEDCL for the same reason. amount pending for payment. All six petitioners are wind power generators. The Commission has now ordered the MSEDCL to note that if the The commission has directed MSEDCL, the respondent, in this payment is further delayed, penal interest of 1.25% per month on case, to reconcile the statement of accounts with the petitioners the late payment charges will have to be paid. within two weeks and intimate the date by which the payment would In May 2019, Mercom had reported that MERC reprimanded be made. MSEDCL for the continued delay in meeting payment obligations to independent power producers, including delayed payment charge, The MSEDCL owes a total sum of C30.24 million (~$0.423 million) to the six wind generators. and for disregarding the previous orders of the commission.The state has been struggling to meet its solar and non-solar renewable The commission noted that MSEDCL made the payments of the purchase obligations (RPOs) and has been issuing tenders to outstanding principal amount and delayed payment charges as procure solar and wind energy to meet the obligations. The tariff claimed by the petitioners in their original petitions. caps and the questionable creditworthiness of the DISCOM have earlier seen a tepid response for the tenders issued. Sep 05
MNRE Clarifies Residential Rooftop Solar Subsidy Applicability The Ministry of New and Renewable Energy (MNRE) has issued a clarification regarding the subsidy applicable for rooftop solar installations by individual residential households under phase-II of grid-connected rooftop solar program. In its official memorandum, the MNRE states that subsidy under Phase-II of the grid-connected rooftop solar program will be available to all eligible households for installation of rooftop solar as per regulations of respective State Electricity Regulatory Commission (SERC) and provisions of program implementation guidelines. According to the MNRE statement, rooftop solar installations up to 3 kW will qualify for a subsidy of 40%. For rooftop solar installations above 3 kW, and up to 10kW will get a subsidy of 40% for the first 3 kW and 20% for the remaining capacity, and for installations above 10 kW, it is 40% for the first 3kW and 20% for the remaining 7 kW. However, there’s no subsidy beyond 10 kW capacity. According to the MNRE benchmark cost for the rooftop solar system, up to 10 kW is C54 (~$0.75)/W for 2019-20. Considering the cost calculated through tenders is C50 (~$70)/W, the subsidy would be calculated on C50 (~$70)/W being lower than the benchmark cost. In July 2019, MNRE notified new benchmark costs for grid- connected rooftop solar power projects for the financial year (FY) 2019-20. For projects with a capacity of above 1 kW and up to 10 kW, the benchmark cost was set at C54 (~$0.79)/W. The applicable subsidy for various capacities of rooftop solar systems installed at individual residential households under phase-II of grid- connected rooftop solar program would be: For a capacity of 1 kW, the applicable subsidy is at the rate of 40% which amounts to C20,000 (~$277) ...READ MORE Sep 05
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CERC Proposes New Regulations for Power System Development Fund The Central Electricity Regulatory Commission (CERC) has issued regulations for Power System Development Fund (PSDF), which will come into effect from the date of their publication in the Official Gazette. According to the CERC notification, the fund would be created by credits received from a variety of charges collected which include congestion charges that are in surplus after the amounts are paid to the eligible regional entities along with interest if any, according to the Congestion Relief Regulations. Congestion amount realized from the difference in the market prices of different regions because of market splitting in power exchanges as per power market regulations will also be credited to the PSDF. Surplus deviation settlement charges after payments made to the Regional Deviation Pool Account Fund against final settlement of claims according to the Deviation Settlement Mechanism Regulations will also be credited to the PSDF. Other charges like reactive energy charges and additional transmission charges arising out of the explicit auction process in short-term open access advance bilateral transactions according to the CERC (Open Access in inter-State Transmission) Regulations, 2008 will be pooled into the power system development fund. The notification further states that the PSDF will be maintained and operated through the Public Account of India. Regarding the utilization of the PSDF, the funding for projects from PSDF to the entities should be in the form of grant, and the grant amount would be reduced from the capital cost of the project. The CERC has further proposed that the PSDF be utilized for funding transmission infrastructure projects in response to feedback by the Load Despatch Centers to relieve congestion in interstate and intrastate transmission systems affecting the inter-state transmission systems (ISTS). The fund will also be utilized for the installation of shunt capacitors, series compensators and other reactive energy generators for improvement of voltage profile in the grid.It also proposes renovation and modernization of transmission and distribution systems for relieving congestion...READ MORE Sep 04
COMPANY NEWS Indian Oil and NTPC Launch Electric Vehicle Charging Stations in Noida The Indian Oil Corporation (IOC) has come together with the The state and central government have been vehemently trying National Thermal Power Corporation (NTPC) to establish electric to reduce air pollution in these regions by improving the public vehicle charging stations in Greater Noida. transport system and other measures in this regard. This electric vehicle (EV) charging station can charge four vehicles at The government has also come up with an EV adoption roadmap a time. This is part of an ongoing effort by the government to curb while allocating subsidies in manufacturing and loans for EVs. pollution and promote the uptake of EVs in the country. Earlier, the government cut the rate of Goods and Services Tax (GST) To encourage vehicle owners to utilize the station, the entities are on electric vehicles (EVs) in a move to increase electric mobility in providing free charging in the interim. the country. Greater Noida, Noida, Gurugram, Faridabad and Delhi are under the The 36th GST Council meeting was chaired by finance minister grip of toxic levels of air pollution. The air quality is poor in these Nirmala Sitharaman, wherein the GST on EVs was reduced from cities throughout the year. 12% to 5%. The union cabinet had recently approved a proposal for the Faster Adoption and Manufacturing of Electric Vehicles The National Green Tribunal (NGT) in 2015 had discontinued the use (FAME India) in India Phase II program. The program’s objective is to of petrol vehicles older than fifteen years and diesel vehicles older promote the adoption of clean mobility in the country. than ten years in the National Capital Region (NCR) to curtail air pollution and its resulting hazards. Private and public entities alike are setting up EV charging
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Sep 10, 2019 infrastructure in cities; Amara Raja, launched EV charging and would establish charging infrastructure units for EVs across India. battery swapping stations in collaboration with Tirupati Municipal Government agencies and utilities have also been issuing tenders Corporation (TMC). Tata Motors and Tata Power joined forces to for empanelment and development of EV charging infrastructure, set up around 300 EV charging stations by the end of FY 2020. adding to the activity in the sector. Sep 10 Vakrangee, a technology-oriented company, also announced that it
Tata Chemicals Sets Up Lithium-Ion Recycling Plant in India Tata Chemicals, a company with interests in chemicals, crop located near Mumbai, India. nutrition, and consumer products, has entered the battery recycling According to the company, this venture is expected to strengthen industry. The company has started commercial operations to the energy sciences business undertaken by Tata Chemicals. The recover active cathode materials from spent lithium-ion (Li-ion) cells recycling operations is a pilot project. or batteries. The project has been productive until now, and a goal to scale up Li-ion battery recycling is a process where metals like lithium, cobalt, operations to recycle 500 tons of spent Li-ion batteries is in the nickel, and manganese are recovered. The recovery maintains pipeline. 99% purity in the levels of yield. The process directly impacts environmental pollution levels. In the recently concluded Union Budget for the financial year (FY) 2019-20, the finance minister, Nirmala Seetharaman has lent support Energy and natural resources are saved as fewer raw materials to the electric vehicle industry by announcing tax incentives to need to be harnessed from the earth since recycling makes these accelerate the adoption of clean mobility in India. materials reusable. In lieu with the guidelines of Make In India policy, the government The minerals recovered in the recycling process are delivered intends to pioneer a program to attract global companies to set up to battery manufacturers to be reused in the production of new large-scale manufacturing projects in areas such as Li-ion storage batteries. The Li-ion battery recycling process will occur at a unit batteries to name a few. Sep 06
PROJECT NEWS Himachal Pradesh to Develop 250 MW of Solar Projects The Government of Himachal Pradesh has signed two agreements first large scale project in Himachal where we already have an for setting up 250 MW of solar power projects in the state. The operational solar rooftop project. estimated cost of the projects is C10 billion (~$139.7 million). It is envisaged to be commissioned in 2021, and we are in The two companies that signed the deal with the Himachal Pradesh discussion with the state government for all the requisite government are ReNew Power and CSE Development (India), clearances.” Private Ltd. As reported previously by Mercom, the state’s solar renewable According to news agency IANS, one pact was signed with ReNew purchase obligation (RPO) has been set at 7.25% and non-solar Power for setting up a 150 MW solar project which is proposed to RPO at 10.25% for the financial year (FY) 2019-20. be commissioned by 2021, while the second was signed with CSE According to Mercom’s India Solar Project Tracker, the state only Development (India) Private Ltd for setting up a 100 MW project. has ~10 MW of large-scale solar projects in operation. The solar projects will be set up in Una and Kangra districts, Recently, the Himachal Pradesh Energy Development Agency respectively. (HIMURJA) invited bids for the installation of solar projects at 312 Confirming the deal, Prabhat Mishra, vice president, distributed middle schools located in 11 districts of Himachal Pradesh. The solar business, ReNew Power told Mercom, “ReNew Power has project installations will be executed under the state’s “Samagra signed an MoU with Himachal Pradesh government for setting up Shiksha Abhiyan” program. Sep 09 a 150 MW solar project in the state. The project is the company’s
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Sep 10, 2019 TENDERS & AUCTIONS Maharashtra Invites Bids for 12.2 MW of Solar Projects for 9 Municipal Councils The Maharashtra Energy Development Agency (MEDA) has floated nine tenders for solar projects in nine municipal councils totaling 12.2 MW. The projects have been tendered under the Atal Mission for Rejuvenation and Urban Transformation (Amrut) Abhiyan in the state. These nine tenders issued are for areas under the municipal council or corporation of Yavatmal, Akola, Jalgaon, Latur, Amravati, Udgir, Vasai-Virar, Shirdi, and Parbhani. The last date for the submission of bids is September 25, 2019, with the technical bid opening scheduled for September 30, 2019. For the Yavatmal council, the total capacity for the solar power project is 3.72 MW, and the tender value is C167.58 million (~$2.34 million). For the Akola council, the capacity of the project is 1.40 MW. The total value of this tender is C63 million (~$877,310). For Jalgaon, Shirdi, and Udgir, a project of 0.50 MW will be installed at a cost of C22.5 million (~$313,325) each. A project capacity of 0.90 MW has been allotted for Latur council. The tender value for this project is C40.5 million (~$563,985). For Amravati municipal council, the tender value for the 1.58 MW solar project is C71.1 million (~$990,107). Similarly, Vasai Virar council will get a 1 MW project valued at C45 million (~$626,650). Lastly, for the Parbhani municipal council, the total capacity for the solar power project is 2.10 MW, and the tender value is C94.5 million (~$1.3 million). ...READ MORE Sep 10
SECI Extends Bid Submission Deadline for Two Solar Tenders Totaling 2.7 GW The Solar Energy Corporation of India (SECI) has extended the 16, 2019. The original bid submission deadline for this tender was bid submission dates for two tenders. The first extension is for the August 9, 2019. This is the second extension for the tender. The 1,500 MW of solar projects under the second phase of the Central bid was first extended from August 9, 2019, to September 9, 2019. Public Sector Undertaking (CPSU) program Tranche-II. Earlier, the tender was issued for the state of Madhya Pradesh only. The new date for the submission of bids is September 13, 2019. “Initially, the tender was only for bidders in Madhya Pradesh, but Previously, SECI had announced August 23, 2019, as the deadline now, it’s on a pan-India basis,” an official told Mercom. for bid submission. During the first week of August, Mercom had Previously, Mercom had reported that the tariff ceiling for the reported that the power generated from these projects might be tender was set at C2.65 (~$0.038)/kWh. Now the tariff cap has been procured by the government for self-use either directly or through amended to C2.68 (~$0.037). distribution companies on the payment of mutually agreed usage charges of not more than C3.50 (~$0.050)/kWh. One of the developers commented, “the tariff cap regime is posing a barrier for renewable energy additions in the country. The tariff The projects can be developed anywhere in the country, and the cap of C2.65/kWh has no bidders. It has forced the developers to cells and modules used in the projects should be manufactured bid only in two states (Rajasthan and Gujarat), putting pressure locally. on the local grids and curbing other states from using wastelands Similarly, SECI has also extended the bid submission date for its for construction of solar projects, denying them the benefits of tender for 1,200 MW of solar projects connected with the interstate employment, investment, and development. It has also shrunk the transmission system (ISTS) network under tariff-based competitive profit margins restricting new investments. Needless to mention, the bidding (ISTS-VI). The new date for bid submission is September quality of the projects is a huge concern.”...READ MORE Sep 10
10 Go to category: Industry Company Project Tenders & Auctions Policy Market Intelligence Report INDIA CLEANTECH
Sep 10, 2019
Maharashtra DISCOM Issues Tender for 80 MW of Wind-Solar Hybrid Power Projects The Maharashtra State Electricity Distribution Company Limited The earnest money deposit for the bids has been set at C1 million (MSEDCL) has issued a tender for the procurement of hybrid ($13,970)/MW. The pre-bid meeting will be held on September 16, renewable power to meet its renewable purchase obligation (RPO). 2019. The last date for the submission of bids is September 30, The tender also aims to promote hybrid projects for the efficient 2019. utilization of land and transmission infrastructure. Earlier this year, the state DISCOM issued a one of a kind wind- MSEDCL plans to procure wind-solar hybrid power from projects solar hybrid tender which gives the developers freedom in project that will be developed on identified land parcels that belong to development. Maharashtra Energy Development Agency (MEDA) through a The state distribution company had set C2.75 (~$0.039)/kWh as the competitive bidding process. upper tariff ceiling for this tender, calling interested parties to submit MSEDCL is expected to enter into power purchase agreements with their bids and the capacity they want to develop. selected developers for 25 years. In May 2018, the MNRE announced new wind-solar hybrid policy The following are the locations and project capacities of the which aims at providing a framework for the expansion of grid- identified land for which tenders have been issued: Girye-Vijaydurg, connected wind-solar hybrid systems in the country. Sindhudurg District-20 MW, Sautada, Beed District-20 MW, The main objective of the policy is to provide a framework for Gudhepanchgani, Sangli District-5 MW, Motha, Amravati District-15 promotion of large grid-connected wind-solar PV hybrid system for MW, and Jagmin, Satara District-20 MW. optimal and efficient utilization of transmission infrastructure and land, reducing the variability in renewable power generation and MSEDCL has set a ceiling tariff of C2.80 ($0.039)/kWh for these projects. According to the tender documents, these hybrid projects achieving better grid stability. are to be commissioned within 15 months from the date of signing The policy also aims at encouraging new technologies, methods, of the power purchase agreements (PPA). and way-outs involving combined operation of wind and solar PV projects. Sep 09
IIT Kharagpur to Install 1,100 kW of Solar Systems at its Campus The Indian Institute of Technology, Kharagpur (IITKGP) is looking to According to the tender documents, IITKGP has already installed a install grid-connected solar energy projects totaling 1,100 kW at its 1,200 kW solar project which was developed on the rooftop of the campus. university. The institution has issued a tender for the design, manufacture, IITs have been one of the few educational institutes in the country, testing, inspection, forwarding, commissioning, operation, and leading the change towards sustainability. maintenance of the solar projects for five years. After the fifth year, For instance, in August 2019, the Indian Institute of Technology, the project would be handed over the institute. Kanpur floated an expression of interest (EoI) for three smart grid These projects are expected to be installed on car and bike field pilots combining renewable sources (solar and biomass) and parking areas and the boundaries of parks. Once commissioned, storage (Lithium-ion and flow batteries). the projects would be connected to a low voltage grid supply. The This is part of a project called U.S.-India Collaborative for Smart system design for the projects has to be approved by IITKGP before Distribution System with Storage. In December 2018, IIT Indore its implementation. joined the league of green campuses in the country by installing 422 The estimated cost of construction for the solar project is around kW solar rooftop power system on its premises. C69.8 million ($970,000) as per the tender document. The project was commissioned by BVG India Ltd, an integrated The projects should be completed within 270 days. The earnest services company. money deposit for bidders has been set at C1.4 million ($200,000). In May 2018, IIT KGP issued an EoI inviting bids from project The pre-bid meeting for the tender will take place on September 17, developers and contractors to set up a 5.5 MW solar photovoltaic 2019, and the closing date of the bid is October 16, 2019. project at its premises. Sep 09
11 Go to category: Industry Company Project Tenders & Auctions Policy Market Intelligence Report INDIA CLEANTECH
Sep 10, 2019
Assam Retenders 70 MW of Solar Projects Due to Low Tariff Cap The Assam Power Generation Corporation Limited (APGCL) has comes to the expansion of renewable energy sources. According retendered 70 MW of grid-connected solar projects to be developed to Mercom’s India Solar Project Tracker, the state currently has at Amguri Solar Park in Sivasagar district of the state. negligible solar capacity currently with nearly 100 MW under The tender was initially floated in January 2019, as reported development. previously by Mercom. However, the state has started its journey towards sustainability with “The response from the developers was poor due to the upper tariff recent tenders for rooftop installations as well. Recently, the Assam Energy Development Agency (AEDA) has issued a tender to set up cap of C3.50 (0.0049)/kWh. We have now revised the ceiling to C4 (~$0.16)/kWh,” an APGCL official told Mercom. 8 MW of rooftop solar projects with the net metering facility. The rooftop solar projects will be developed under CAPEX model. All the The last date for the submission of techno-commercial bids is projects will be set up for residential customers. October 10, 2019. The date for the techno-commercial bid opening has been scheduled for October 4, 2019. The projects will be A few months ago, the state had issued a tender for 7 MW of developed on a build-own-operate basis for the procurement grid-connected solar rooftop projects for social and institutional of solar power by the Assam Power Distribution Company Ltd. buildings. Mercom recently reported that the state government of (APDCL) for 25 years. According to the APGCL, the earnest money Assam aims to install 590 MW of solar energy projects which are to be developed across solar parks, rooftop, and off-grid segments by deposit (EMD) applicable for the bidders is C600,000 (~$8,317). 2020. Sep 06 Assam is one of the least developed states in the country when it
Tender Floated For 50 MW of Rooftop Solar on Government Buildings in Rajasthan The Rajasthan Renewable Energy Corporation Limited (RRECL) commence four months after the issuance of the letter of award. has issued a tender for 50 MW of rooftop solar projects under the Rooftop project developers will be responsible for the RESCO model. The scope of work under this tender would include synchronization of the project with licensee’s network under the the design, supply, erection, testing, commissioning, operation, and state’s regulations for net metering for rooftop and small solar maintenance for 25 years of the grid-connected solar photovoltaic systems issued by the RERC. power projects on state government buildings. Bidders are expected to quote a levelized fixed tariff for the entire term of the power Bid security for this tender is set at C900,000 ($12,519)/MW. purchase agreement. The pre-bid meeting for this tender will take place on September According to the tender documents, bidders would have to bid 13, 2019, and the last date for the submission of bids is October 3, for a capacity of 8 MW only. Successful bidders would enter into 2019. power purchase agreements for 25 years with the respective entities Since there is no subsidy provided for these projects, the developers or building owners. Further, the tender allows for the allocation of are allowed to choose modules made in India or imported. The projects to only eight successful bidders. The lowest (L1) bidder modules need to meet the certifications as prescribed by MNRE. would be allocated 8 MW, and the remaining seven would be Rajasthan has installed solar capacity of 3.5 GW as of Q2 2019, allocated 6 MW each. according to Mercom India Solar Project Tracker. A total of 442 MW The scheduled commercial operation date of these projects would of solar projects are under development ...READ MORE Sep 06
NHPC Issues Tender for 2,000 MW of Solar Projects with a Tariff Ceiling of C2.95/kWh NHPC Limited, a government-owned hydropower generator has Bidders can bid for a minimum project size of 50 MW, and in issued a tender inviting bids for the procuring of 2,000 MW of solar multiples of 10 MW thereafter. The projects can be set up anywhere photovoltaic (PV) power. NHPC will enter into power purchase across India. There is no maximum limit of projects a developer agreements for 25 years with successful developers. The projects can bid for. Projects commissioned, under construction or projects are expected to be connected to the Inter-State Transmission which are not yet commissioned cannot be considered under this System (ISTS). Modules for projects under this tender can be tender. Further, enhancement and augmentation of commissioned imported (open category). projects, irrespective of their capacities, would not be allowed under this project. (continued on page 13) 12 Go to category: Industry Company Project Tenders & Auctions Policy Market Intelligence Report INDIA CLEANTECH
Sep 10, 2019 expected to quote a fixed levelized tariff for 25 years. Successful MW. The bid submission deadline for this tender is September 27, developers are mandated to meet a capacity utilization factor (CUF) 2019. of at least 19%. The projects are to be set up on a build-own- In April 2019, as part of its green energy commitment, NHPC issued operate (BOO) basis on land that is identified and arranged by the an engineering procurement and construction (EPC) contract for solar power developers. developing 40 MW of grid-connected solar power project at Ladeihil NHPC has allowed a commissioning timeline of 18 months from the village in Ganjam district of Odisha. date of signing the power purchase agreement. The earnest money According to Mercom India Solar Project Tracker, NHPC has 50 MW deposit (EMD) for this tender has been set at C1 million ($13,890)/ solar projects in-operation in Tamil Nadu. Sep 04
POLICY Rajasthan to Not Accept New Applications for Registration of Wind Projects under REC The Rajasthan Renewable Energy Corporation (RREC) has issued also be eligible for renewable energy (non-solar) certificates (REC). a draft version of its policy on wind and wind-solar hybrid projects. The state commission will not entertain new applications for the The policy aims to establish Rajasthan as a leader for wind energy, registration of wind power projects under the REC program for the including the wind-solar hybrid in a phased manner. sale of power to DISCOMs at average power purchase price (APPC) Key policy highlights – rate. The energy consumed by the wind power producers for captive Rajasthan aims to deploy 2,000 MW of wind power capacity to use will be exempt from the payment of the electricity duty from the fulfill Renewable Purchase Obligation (RPO) of state distribution date of commencement of this policy within the state. companies. The policy aims to promote wind power projects with The allotment of land to the developer will be as per the provisions storage systems, repowering of wind power projects, strengthening of Rajasthan’s land revenue rules. For the development of wind of transmission and distribution network for renewable energy, wind power projects, the maximum allottable land to the developers will resource assessment program, and manufacturing industries of wind be 3 hectares per MW. energy equipment. The RREC would recommend the case of land allotment to According to the policy, Rajasthan will allow setting up of wind respective district collector only on the submission of cash security power projects that have been approved before March 31, 2016 by deposit of C300,000 ($4,198). the state-level empowered committee under Wind Policy 2012 for The policy is open for comments from stakeholders until September the sale of power to DISCOMs of Rajasthan at the weighted average 20, 2019. tariff determined through competitive bidding from the first lot of wind power project for meeting RPO. The revised 2019-2020 budget for Rajasthan has introduced various grants for the renewable energy sector. The budget targets setting The state will also promote setting up wind projects for captive use up of 1,426 MW of wind and 4,885 MW of solar energy projects and third-party sale for consumers within and outside the state. in the next five years. The revised budget for Rajasthan also The maximum permissible capacity of the individual project will be focuses on strengthening the power evacuation and transmission limited to the average annual demand. These power producers will infrastructure. Sep 04
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Sep 10, 2019
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