Monthly update March 2021 - 3DRD@QBG "M@KXSHBR - JMK Research
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monthly update March 2021 Lead Sponsors
Contents
1. Tenders | 5
New RFS Issued | 5
Re-Tendered | 8
Date extension | 8
Auctions Completed | 9
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
alone has issued a project development tender of 1785 MW in Rajasthan.
Issued
• 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
7Re-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
8Commis-
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
92. 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
ll Hydro
Sma
r 5%
owe 300
P %
11
o
Bi
250
Source: MNRE, JMK Research
Sola
200
42%
Capacity (MW)
r
100%= 92.97 GW 150
100
50
%
2
d
4
in
W
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
Capacity (MW)
Source: MNRE, JMK Research
60
40
20
0
Tamil Nadu Rajasthan Gujarat Karnataka Madhya Others
Pradesh
10Recently 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 pro-
ject (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.
11www.renesola.com
Bringing Solar Power to the World
2.5+ GW Solar PV Modules Supplied in India
Features:
• Globally reputed & recognised International brand
• Well equipped Sales & Technical support staff in India Contact us:
• TIER-1 Solar PV Module manufacturer Office : 1711-1713, Spaces, 17th Floor,
• High conversion efficiencies modules Max Towers, Sector- 16B, Noida
(UP)-201301, INDIA
• Eas y installation & handling
• Cost competitive Hand Phone: +91-9654537744
• Certified by TUV, UL, BIS and other International labs
• ISO9001, OHSAS18001, ISO 14001 Certified Email: alka.chauhan@renesola.co.in3. Investments/ Partnerships
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 Orix Corporation 21.8%
added into Greenko’s 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.
13Stakes
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.
14Adani 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 operat-
ing 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 equi-
ty 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.
154. Monthly Import/ Export Trends
Compared to January 2021, solar imports and exports have fallen by near-
ly 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
165. Module Price Trends
Prices of global multi crystalline modules, mono PERC modules and
mono PERC module (India) increased marginally 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 Module Price trends
0.25
0.24
0.23
Mono PERC (India)
0.22
0.21 Mono PERC modules (Global)
Prices (USD/Wp)
0.20
0.19
Multi crystalline module (Global)
0.18
0.17
0.16
0.15
20
20
0
20
0
20
0
20
20
0
0
20
21
21
1
-2
-2
-2
l-2
-2
-2
n-
b-
n-
b-
r-
n-
g-
p-
c-
ar
ar
ay
ct
ov
Ju
Ap
Ja
Fe
De
Ja
Ju
Fe
Au
Se
M
O
M
M
N
Source: PVInfoLink, JMK Research
176. 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
3.8 3.9
3.7 3.7
3.6
Amount (INR Billion)
3.0
1.5
0.0
0
0
20
0
20
20
0
20
20
0
20
21
20
-2
-2
-2
-2
-2
g-
p-
n-
b-
n-
r-
n-
l-
ay
ov
ec
ar
ct
Ap
Ju
Au
Ja
Se
Fe
Ju
Ja
M
O
M
N
D
Source: SECI, JMK Research
187. Policies and Regulations
High Court of Bombay Put Stay on DISCOM Privatization Auction Won
Central
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 terri-
tories 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 cus-
toms 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
19commissioning 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 domes-
tic 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 notifi-
cation. 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
20can carry out production and sale audits, random quality tests, and inspect
the facility to ensure compliance. In case of any non-compliance, the en-
listed 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 govern-
ment.
• 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 expi-
ry 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 tem-
pered (whether coated or uncoated) glass from Malaysia.
• As per this notification the countervailing duty imposed would be appli-
cable 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 elec-
tricity regulatory commissions (SERC) in the approval and procurement
processes.
• CERC subsequently adopted the tariffs discovered through the competi-
tive 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-
22ance their RPO targets.
• Commission approved PXIL to have GTAM contracts under the catego-
ries 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 hav-
ing 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-mount-
ed 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 sub-
sidy from the capital of the project cost.
• JERC considered the debt-equity ratio of 70:30 as proposed by the peti-
tioner. 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 insol-
vency. 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 corpo-
rate 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
24MW 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 de-
veloped 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 pro-
jects, 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 connec-
tivity 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,
25and the same had to be signed by the project developers and the distribu-
tion 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 produc-
er 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 com-
missioning schedule.
26Tamil 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 conven-
tional 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 ap-
plicable 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 speci-
fied 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 dat-
ed 8 March 2021 has dismissed ACME Solar’s plea for the return of perfor-
27mance bank guarantee (PBG).
• MERC stated that the power purchase agreement (PPA) specifies con-
ditions 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 guaran-
tee 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 condi-
tions of the PPA after achieving the commercial operation date.
• MERC stated that ACME had previously filed a petition seeking a direc-
tion 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 re-
jected 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 gener-
ated from the solar PV plant.
• MERC approved the PPA on 4 December 2019 and the scheduled com-
mercial 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 applicabil-
ity 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 con-
sumers opting for 100% green energy.
• MERC noted that all consumers, including extra high voltage, high volt-
age, 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 stand-
ard 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 sepa-
rate 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 roof-
top 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
30violations. 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 guide-
lines 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 ad-
ditional 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 addi-
tional 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
31petition 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 devel-
opers with the sale of energy, land acquisition, obtaining grid connectivity,
project allotment, clearances, energy storage, and metering and connec-
tivity.
• Karnataka will also promote renewable energy parks under the PPP model
or through private development by investing up to 50% of the equity as re-
quired. 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
32model 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 al-
lotment for all renewable energy-based projects. It also specified the max-
imum 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 Invites Comments on Draft Renewable Purchase Obliga-
Chhattisgarh
tions Regulations for 2021-2026
• CSERC with its notification dated 26 February 2021 has issued a draft noti-
fication 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 ca-
pacity of 1 MW and above who procure non-renewable power will be sub-
ject 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 struc-
ture 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 sur-
charge announced in February, a DISCOM which has a late payment sur-
charge 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 bid-
ding 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-connect-
ed 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
35expire 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 guide-
lines 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 com-
petitive 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 compet-
itive 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 sur-
charge’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-
fore 30 June 2021
Bengal
• 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 consum-
ers 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 stake-
holders 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 instal-
lation of these solar photovoltaic systems before allowing net metering
facilities for them.
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