EQ iSearch Intelligence Report on India's Solar Industry June-2021 by EQ Int'l Solar Media Group

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CONTENT Introduction to Indian Solar Industry ……………………………………………………………………………………………. 10 Solar Installations in India by Year ………………………………………………………………………………………………...10 Utility-Scale Solar Installations ………………………………………………………………………………………………………11 Solar Rooftop Installation ……………………………………………………………………………………………………………….12 Installed Power Capacity from Different Sources ………………………………………………………………………….13 Discom Dues to Power Generator ………………………………………………………………………………………………......15 RE Generation in India …………………………………………………………………………………………………………………....16 Solar Power Generation by State …………………………………………………………………………………………………....16 Annual Growth in Power Generation ………………………………………………………………………………………….....17 State Wise Solar PV Installation …………………………………………………………………………………………………...18 Funds Allocation by Government in Solar and Wind Power in India …………………………………………..19 Potential Vs Actual Installed Renewable Energy …………………………………………………………………………19 Transmission and Distribution Losses ………………………………………………………………………………………….20 Electricity Consumptions in India …………………………………………………………………………………………………20 Market Share ………………………………………………………………………………………………………………………………..21 Pv Module …………………………………………………………………………………………………………………………………21 Solar Pv Module Procurer in Q1 2021 ………………............………………………………………………………23 Pv Inverter …………………………………………………………………………………………………………………………………24 Electricity Market …………………………………………………………………………………………………………………………26 Imported Solar PV Module Average Selling Price ……………………………………………………………………….26 Recent Solar Auction ……………………………………………………………………………………………………………………29 Recent Solar Tender…………………………………………………………………………………………………………………….30 Quarterly Results …………………………………………………………………………………………………………………………32 Funding and

M&A Updates………………………………………………………………………………………………….33

SNEC Launches ………………………………………………………………………………………………………………………………35 OTHER LAUNCHES................................................................................................................................37 Policy & Regulatory Updates ………………………………………………………………………………………………………37 Renewable Purchase Obligation Trajectory by Ministry of Power.................................................37 RPO Compliance 2019-20.......................................................................................................................40 Renewable Energy Certificate Trading.................................................................................................40 Solar Pump Installed Under PM-KUSUM...........................................................................................41 Off-Grid Solar Installed Capacity..........................................................................................................41 Investment in Solar Sector..................................................................................................................43 Rating for State Power Distribution Utilities..................................................................................44

Expert Opinion ..............…………………………………………………………………………………………………………………47 Conclusion and Suggestions ……………………………………………………………………………………………………….47

Abbreviations

ALMM Approved List of Models and Manufacturers ASP Average Selling Price BCD Basic Custom Duty CAPEX Capital Expenditure CEA Centra Electricity Authority CERC Central Electricity Regulatory Commission CPSU Centra Public Sector Undertaking CY Calendar Year Discom Distribution Company FY Financial Year GW Gegawatt JNNSM Jawaharlal Nehru National Solar Mission kWh Kilowatt Hour MNRE Ministry of New and Renewable Energy MT Metric Tonne MU Million Unit MW Megawatt NHPC National Hydro Electric Power Corporation OPEX Operational Expenditure PFC Power Finance Corporation PV Photovoltaic RE Renewable Energy REC Renewable Energy Certificate RPO Renewable Purchase Obligation SECI Solar Energy Corporation of India T&D Transmission and Distribution UT Union territiry Wp Watt Peak

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TRENDS & ANALYSIS

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GRAPHICS & LAYOUT :

RATNESH JOSHI

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INTRODUCTION TO INDIAN SOLAR INDUSTRY ndia’s JNNSM target aims to install 100 GW of Solar Pv in the Indian Sub-Continent, of which 60 GW comes from utility-scale projects. The rest 40 GW will be installed through distributed solar, a gridconnected rooftop solar system. At the initial stage of JNNSM, capacity addition has been driven mainly from utility-scale/large-scale installations. In contrast, the installation in rooftop solar started in early 2015 or the end of 2014. Indian solar installation slowed down due to the current COVID-19 lockdown and restrictions. However, India installed solar capacity has crossed the 40 GW mark in Q1 CY 2021. Of the total solar installed capacity, most of the installation comes from utility-scale projects of more than 36 GW, while the rest comes from distributed solar. In Q1 2021, the pace of solar rooftop installations has increased by over 400%, and the country installed 934 MW compared with 182 MW in Q1 of 2020 as per MNRE monthly physical progress page. Whereas, the installations in utility-scale were increased by 136% compared with 715 MW in the first quarter of 2020, installations in Q1 2021 were 1,686 MW. The share of utility-scale in the total installations as of March, 2021 were around 89%, but in Q1 2021, it was reduced to 64%. While the share of rooftop solar as of 31st March 2021 was having around 11% of the country's total solar installations, it has gained more share in the first quarter of 2021 having 36% of the total solar installations. The share of the rooftop will increase as there are lots of potentials in the distributed solar, but due to policy uncertainty, installers are facing a hard time planning. The share of rooftop installation will be less in Q2 2021 due to uncertainty over the 10kW net-metering policy. Even the utility-scale installations will be less due to the sudden surge in the raw materi-

als price, which force the developers to postpone their commissioning due date. Also, the extension from the government side will push the commissioning date of the utility-scale project to next quarter, which will again reduce the solar installations in the country.

SOLAR INSTALLATIONS IN INDIA BY YEAR There is an exponential growth in the Indian solar installations from 2016 to 2019, but due to COVID-19, the installations have slowed down. The installations in CY 2020 were reduced to 3.7 GW from 8.5 GW in CY 2019. Even in CY 2021, the installations might be low due to an increase in the raw materials price, increased freight charges, and extension for project commissioning due to pandemics. India has the target of 100 GW to be achieved by Dec 2022; as of Mar 2021, only 40 GW has been installed; it means to achieve 100 GW target, India has to install 30 GW in CY 2021 & CY 2022 each. Again, the target for solar rooftop installations is 40 GW out of 100 GW, but only 4.4 GW has been installed. Since 2015, there is a positive growth in the solar installations in India, which stood India one of the top three solar installations globally after China & the USA. But since the Covid-19 pandemic started, developers could not commission the project due to restrictions across the country in 2020; the installations have fallen and have shown a negative growth rate of 56% in CY 2020 compared with CY 2019 installations in the calendar year. Again, due to a blanket extension of five months, all the project developers get the time to postpone their project commissioning due date, resulting in negative installation in the calendar year 2021.

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in MWs

SOLAR INSTALLATION BY YEAR

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Source: MNRE, CEA

Installations in Indian Solar Industry has been put at a halt due to travel restriction, approval issue, and also from the past few quarters due to a surge in the raw materials price, developers are not able to import the solar PV modules, and government in support providing an extension to the commissioning due date. India’s renewable capacity has reached 95.65 GW, of which Wind and Solar Power contribute most of the installation with the market share of 40.7% and 43.7% as per June, 2021 CEA updates.

UTILITY-SCALE SOLAR INSTALLATIONS In CY 2020, just 2.5 GW of solar PV has been installed in the country due to COVID-19 restrictions where developers were not able to transport their equipment to the project location. In Q1 2021, utility-scale projects accounted for 64% of the total solar installed, which was up by 50% from the Q4 2020, where the installations were around 1.12 GW has been installed due to Covid-19 lockdown, approval delay, increase in the raw materials. The installations in CY 2020 were down by 66% compared to CY 2019 installations.

in MWs

ANNUAL SOLAR UTILITY SCALE INSTALLATIONS IN INDIA 2010-2020

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Source: MNRE, CEA

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in MWs

QUARTERLY UTILITY SCALE SOLAR INSTALLATIONS IN INDIA 2017-2021

Source: MNRE, CEA

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SOLAR ROOFTOP INSTALLATION Rooftop installations increased slightly in Q1 2021 reaching 934 MW. In CY 2020 rooftop installations totaled 1,172 MW a strong 20 percent year-over-year growth. The growth was primarily led by commercial and industrial installations followed by government and residential segments. Even though the year-over-year growth rate is impressive, rooftop installations starts from a lower base and moves with higher growth from 2017, and in the coming year the installations in rooftop segments will touch with the yearly installation of utility-scale as the potential for rooftop solar is abundance especially in the residential segment. Cumulative rooftop solar installations have reached 4,440 MW and still make up just 11 percent of the total solar installations in the country. After a significant increase of over 220 percent quarter-overquarter growth from Q4 2020 to Q1 2021, installation growth remained almost flat for the rest of the year due to second wave of Covid. We expect rooftop installations will grow exponentially in 2021 as the demand in commercial and industrial are increasing every year. Following the safeguard duty going to end in July 2021, we expect rooftop installations to grow as rooftop developers are waiting for the duty to get over so that they can procure the panels and go for their installations. Even uncertainty over policy is giving hard time for the installers to sign a new contract, also consumers are not showing that many interests due to policy uncertainty such as ALMM, BCD, Safeguard duty extension, also net-metering policy. In Q1 2021, the installation under the rooftop segment was an all-time high, as the projects which were not able to get commissioned at the end of 2020 end were get executed in the first quarter of 2021.

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in MWs

QUARTERLY ROOFTOP SOLAR INSTALLATIONS IN INDIA 2017-2021

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Source: MNRE, CEA

INSTALLED POWER CAPACITY FROM DIFFERENT SOURCES Renewable capacity additions continue to increase at a rapid pace in India, accounting for approximately 25 percent of India’s power capacity mix at the end of June 2021. India’s total installed power capacity stood at over 384 GW at the end of June 2021, with renewables accounting for 96.96 GW making up 25 percent, compared to cumulative renewable energy installations of 92.5 GW at the end of Jan 2021, which represented a 4.8 percent increase.

INDIA INSTALLED POWER MIX AS OF JUNE-2021

Source: CEA

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Solar power accounted for approximately 42.3 GW of installations, which is 11 percent of the total installed power capacity. The share of solar in the installation mix grew from 10.28 percent in Jan 2021 to 11 percent in June 2021. Among the renewables, solar accounted for approximately 44% percent of the installed capacity. Wind accounted for 39.5 GW of the total installed power capacity and nearly 10.3 percent of the overall power capacity mix as of June 2021. Due to a lockdown in Q1 2021, this implies a slight rise from the 39.5 GW of installed capacity overall power capacity mix by June 2021. Hydro power’s cumulative installations stood at 46.3 GW, making up 12.1 percent of India’s total installed capacity, a decline compared to its share in 2020.

INDIA INSTALLED POWER MIX BY REGION

Source: CEA (June2021)

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Small hydro had installed over 4.79 GW, and representing 1.2% of the overall power mix capacity at the end of June 2021. The share of nuclear was remaining stable during the first quarter of 2021 which represents 1.8% of the total power mix installed capacity by June 2021, with no capacity added during first six months of 2021. Thermal power (which includes coal, lignite, gas, and diesel) is still the significant source of energy in the country - with its cumulative installations reaching 234 GW, representing 60.9 percent of the total installed power capacity. Coal accounted for a dominant share of the mix, with 52.6 percent of the total installed power capacity, followed by natural gas at 6.5 percent, lignite at 1.7 percent, and diesel with a 0.13 percent share. However, thermal power’s share in the overall power mix is gradually declining as the government is shutting down old thermal plants especially coal, and moving towards the non-conventional source of energy.

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INSTALLED CAPACITY

in MWs

RESOURCE WISE INSTALLED CAPACITY OF ALL INDIA

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Source: CEA

DISCOM DUES TO POWER GENERATOR There was an overdue amount that needs to be paid by discoms at the start of May 2021 were ₹63,565 crores, which was ₹23,896 crores lower than Jan 2021. In May, the total amount billed to discoms was ₹16,131 crores. Discom paid around ₹33,884 crores in March, which was the highest payment done through discoms side in recent months. Discom dues are reducing slowly, which was quite high in the past years due to a reduction in theft, fewer transmission & distribution losses.

MONTHLY DISCOM DUES (IN CRORE)

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Source: PRAAPTI

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RE GENERATION IN INDIA Total Renewable energy generations in April 2021 increases to 11,648.93 million units. Solar Power generation is having the largest percentage in terms of generation with 6,122.18 million units and contributes 52.6% of the total renewable generation share followed by Wind Power with 32.1% market by generating 3,734.38 million units in April 2021. Other sources such as Bagasse, small Hydro, and Biomass contribute 7.6%, 3.8%, and 2.5% respectively. Solar and Wind Power together contributed 84.6% of the total renewable energy generation in April 2021. There is a growth of around 8.7% in the total Renewable generation from April 2020 to April 2021. While there is an exponential growth of 14.4% in solar power generation from April 2020, while Wind Power has increased by 7.5% in the generation in the same period.

in millions units

MONTHLY RE GENERATION IN INDIA

Source: CEA

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SOLAR POWER GENERATION BY STATE Karnataka shows the largest solar power generation among the top solar generating states in April 2020, while Uttar Pradesh shows a tremendous growth rate of 73% as the state has installed a huge amount of solar power projects during that period. Only, Karnataka and Rajasthan have crossed over 1,000 million units of solar power generation as the states have installed 7.3 GW and 5.7 GW of Solar PV installation as of March 2021 as per MNRE updates. Even though Tamil Nadu and Gujarat have installed more than Andhra Pradesh and Telangana but in terms of generation, these two states have more generations in terms of million units which shows the quality of generations and the irradiation level in these States.

Source: CEA

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in millions units

SOLAR OVER RENEWABLE ENERGY

Source: MNRE, CEA

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ANNUAL GROWTH IN POWER GENERATION The Overall generation (Including generation from grid-connected renewable sources) in the country has been increased from 1110.458 BU (billion units) during 2014-15 to 1173.603 BU during the year 2015-16, 1241.689 BU during 2016-17, 1308.146 BU during 2017-18, 1376.095 BU during 2018-19, 1389.121 BU during 2019-20 and 1381.855 BU during 2020-21 as per Ministry of Power updates. The performance of Category wise generation during the year 2020-21 was as follows: Thermal Reduced by 0.98 % Hydro Increased by 3.51 % Nuclear Increased by 7.41 % Bhutan Import Increased by 51.27 % Renewables Increased by 6.44 % Overall Growth rate recorded by 0.52 %

Source: Ministry of Power [*Provisional (upto April 2021)]

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SOLAR PV INSTALLATION BY STATE India installed over 40 GW of Solar PV installations as of March 2021 as per MNRE physical achievement page. Karnataka, Rajasthan, Tamil Nadu, Andhra Pradesh were the top state who have installed grid-connected utility-scale projects of above 4 GW. The top six states under the utility scale cover 78% of the total installed capacity of 35.6 GW. The top ten states installed a cumulative capacity of 37.5 GW (both utilityscale & rooftop) and cover a market share of more than 93.7% by the end of 31st Mar 2021.

By the end of Q1 2021, India installed around 4.4 GW of grid-connected solar rooftop installations, and having a market share of 11%, while the rest 89% coming from the utility-scale project. Top Solar Rooftop installations states were Gujarat and Maharashtra who have installed 1 GW and 648 MW of grid-connected rooftop and covers a market share of 37% among the total grid-connected rooftop installations in the country. Top ten states under grid connected rooftop having a market share of 77% of the total rooftop installations by end of march 2021. Due to Covid lockdown across different parts of the country, many of the utility-scale projects which were supposed to be installed in the first quarter of 2021, has moved to the next few quarters, as the lockdown was continued in the second quarter of 2021. Even for rooftop installation, many big corporate and business units were closed due to lockdown restriction, which was impacted the installations, again installers who have done OPEX projects were not able to get the payment during the lockdown, which is again affecting their daily operations or working capital shortage. This reason forces the installers to raise short-term loans from the market for the smoothly functioning of their offices and to maintain their administrative expenses. As this Covid lockdown restriction is creating lots of uncertainty in the market, many rooftop installers were not doing any projects for the past one and half years since the first lockdown started. For the utility-scale developers, many of their workers who were doing the constructions work at the site has moved to their hometown in the first wave of Covid lockdown, and due to which the installations in the 2020 calendar year were impacted, again the developers who were able to take care of their workers were able to continue with their construction work and has commissioned the project on time. Even though the government has given five months of blanket extensions last year, and again another extension that has been given this year is impacting the financial position of the developers. The developers have to pay interest during construction (IDC) to their investors, also if they would have commissioned their projects on time, without using government extension, their projects would have been generating money. So, the developers are facing millions of dollars due to their project delays, again the developers who have taken last year extension are facing a rise in the raw materials such as modules price which has increased by 10-15% compared with last year, other balances of system prices have also increased. Now, developers were again asking for an extension either due to the second wave of Covid lockdown or due to an increase in the raw materials price. The government has given extension but only on a case-to-case basis.

in MWs

GRID CONNECTED SOLAR PV INSTALLATIONS AS OF MARCH 2021

Source: MNRE

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FUNDS ALLOCATION FOR SOLAR AND WIND POWER IN INDIA The government of India has allocated ₹1,776.24 crore for Solar Power and ₹1,059.35 crore for Wind Power installations in the country in FY 2020-21 till February. Out of the total funds allocated for solar power in the last four calendar year starting from 2017-18 to 2020-21, around 82% of the total fund released for utilization, while Wind Power got 99% of the total fund allocated at the end of Feb 2021. The government is always supportive of Solar Power, as the fund's allocation in Solar comparison with Wind is more than ₹5,343.75 crore in the past four calendar year. Initially, for rooftops and vacant areas of buildings in residential/social/ institutional sectors, capital subsidy at the rate of up to 30% of the project cost or benchmark cost whichever is lower were provided for the General Category States and up to 70% of project cost or benchmark cost whichever is lower for Special Category States/Islands, that scheme was there to attract the rooftop market as the target for 2022 are 40 GW. As the rooftop solar installations are growing exponentially over the past few years, the government has reduced the subsidies, now up to 3 kW there is a subsidy of 40%, and above 3 kW to 10 kW, subsidies are 20% of the total project cost or benchmark cost whichever is lower.

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Source: Lok Sabha

POTENTIAL VS ACTUAL INSTALLED RENEWABLE ENERGY Of all the Renewable Energy, Solar Power has the potential of around 750 GW across the country. JNNSM target of Solar power by 2022 are 100 GW of this 41 GW has already been achieved by March 2021. Of the total potential for solar around 5.5% has been installed/achieved. After the signing of the Paris Agreement, the pace of solar has been increased tremendously, the installed capacity which was around 5 GW by 2015, now India has installed over 41 GW. The potential for Wind Power is also huge in the Indian sub-continent but limited to few states due to favourable wind speed. The government's focus is more on Solar than other renewable energy, which results in exponential growth in the installed capacity in Solar.

in GWs

POTENTIAL Vs INSTALLED RENEWABLE ENERGY

Source: MNRE, Niti Ayog Dashboard

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TRANSMISSION AND DISTRIBUTION LOSSES There is a huge improvement in the T&D losses in the country since 2006, where the average country T&D losses were 32% due to technical losses, due to energy dissipated in the conductors, transformers, and other equipment used for transmission, transformation, sub-transmission, and distribution of power to out of dated transmission line. The losses were also due to pilferage by hooking, bypassing meters, defective meters, errors in meter reading, and in estimating an un-metered supply of energy are the main sources of the commercial losses. There is another component of commercial losses, which is attributable to the non-recovery of the billed amount, which is reflected in collection efficiency.

AVERAGE T&D LOSSES OVER THE YEARS ACROSS THE COUNTRY

Source: MNRE, Niti Ayog Dashboard

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ELECTRICITY CONSUMPTIONS IN INDIA Electricity consumptions per capita in India have increased significantly by 32% from 914 kWh in 2012-13 to 1,208 kWh in 2019-20. There is a year-over-year growth of 2.3% in electricity consumption from 2018-2019 to 2019-20. If we talk about the electricity per capita consumption in China by 2020 it was somewhere around 5,312 kWh, while the United States has more than 12,000 kWh.

As per the CEA monthly report, the installed power capacity from all sources in India has increase from 333.5 GW by end of 2017 to 349.3 GW by 2018 to 375.32 GW by 2020. So, since 2017 the installed power capacity has increased by 12.5% till 2020, but if you talk about the per capita consumption growth from 2017-18 to 2019-20, there is a growth of just ~5%, the result for this imbalance growth between the installed power capacity to consumption, as India move towards the climate change which forcing the country to go for the non-conventional source of energy especially solar and wind power and due to low capacity utilization factor (CUF) comparing with the non-conventional source of energy such as Coal.

kwh

PER CAPITA CONSUMPTION (kWh)

Source: CEA

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MARKET SHARE PV MODULE Solar Panels Imports into India in 1H of CY 2021 was around $1.2348 billion. The top two suppliers of Solar Panels to India are giving tough competition to the other suppliers and captured maximum market share. LONGi Solar with a market share of 28%, followed by Jinko Solar at second position with 19%. The third major supplier was Risen Energy with a market share of 13%.

SOLAR MODULES IMPORT IN TO INDIA IN Q1 OF CY 2020-21 (JAN TO MAR)

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SOLAR MODULES IMPORT IN TO INDIA IN Q2 OF CY 2020-21 (APR TO JUN)

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SOLAR MODULES IMPORT IN TO INDIA IN Q2 OF CY 2020-21 (APR TO JUN)

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in USD

SOLAR MODULES IMPORT IN TO INDIA IN 1H OF CY 2020-21 (JAN TO JUN)

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SOLAR MODULES SUPPLIER TO INDIA IN 1H OF CY 2020-21 (JAN TO JUN)

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SOLAR PV MODULE PROCURER IN 1H 2021 (JAN TO JUN) In the first half of CY 2021, Tata Power Solar, ReNew Solar Energy, Avaada Energy, Adani Green Renewable were the top procurer of Solar PV modules in India, which show that they have a projects pipeline which are going to be commissioned in the first few months of Q1 & Q2 of 2021. As per the availability inputs, Solar project developers have imported huge quantity of Solar PV modules in the first half of 2021. The reason for this aggressiveness in the shipments shows that there are huge under-development projects which had not been commissioned due to lockdown in 2020, and will come online in the first half of 2021, also projects whose commissioning due date is before the start of quarter-second of 2021, will get commissioned. If the trends in the imports for solar panels will continue in the same then India will install more than 10 GW of solar PV in the full year of CY 2021. Maybe in the second half of CY 2021, the import activity in the solar PV will increase if the safeguard duty extension will not be there which will end in July 2021 end. There will be a rush in the import activity in Q4 2021 and Q1 2022, because if the extension will not be there. The developers will give order in August, and it will take few months for the modules to reach to the Indian market as due to price uncertainty and shortage of raw materials which result in the surge in the solar PV cells and modules, Chinese suppliers are not taking order in advance as there is too much ups and downs happening every months and if they suppliers will take the order in advance and at the time of delivery if the inputs raw materials price will increase, developers will not be able to accept the order. Even though India is having more than 10-15 GW of Solar PV module manufacturing capacity, domestic manufacturers are totally dependent on Chinese cell suppliers.

SOLAR MODULES PROCURER IN INDIA IN Q2 OF CY 2020-21 (APR TO JUN)

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SOLAR MODULES PROCURER IN INDIA IN Q2 OF CY 2020-21 (APR TO JUN)

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SOLAR MODULES PROCURER IN INDIA IN 1H OF CY 2020-21 (JAN TO JUN)

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in USD

SOLAR MODULES PROCURER IN INDIA IN 1H OF CY 2020-21 (JAN TO JUN)

Source: Export & Import Trackers

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INDIAN DEVELOPER

PV INVERTER Out of the total inverter imports in India, String Inverter import value is around $21.66 million. Sofar Solar was the top supplier with a market share of 26.9 % followed by Sungrow and Growatt with 19.9% and 11% respectively. GoodWe and Foxess have a market share of 8.7% and 7.7%.

STRING INVERTER IMPORT IN TO INDIA IN Q1 OF CY 2020-21 (JAN TO MAR)

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Out of the total solar inverter imports in India, the central inverter imports into India excluding “Made in India” products were worth around $24.9 million in Q1 2021. Kehua Tech has a 44.3% market share followed by Sungrow and TBEA. Sungrow has a market share of 43.5% and TEBA has a 12.1% market share.

CENTRAL INVERTER IMPORT IN TO INDIA IN Q1 OF CY 2020-21 (JAN TO MAR)

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The total value of combined String and Central Inverter imports into India excluding “Make in India” products in Q1 2021 were around $46.5 Million (₹344 crore). The top supplier in this category was Sungrow with a market share of 32.6%. Kehua Tech was the second top supplier in this category with 23.7% followed by Sofarsolar with a 12.5% market share.

STRING + CENTRAL INVERTER IMPORT IN TO INDIA Q1 OF CY 2020-21 (JAN TO MAR)

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STRING + CENTRAL INVERTER IMPORT IN TO INDIA Q1 OF CY 2020-21

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ELECTRICITY MARKET The entities showing aggressiveness in buying Renewable Energy Certificates (REC) to meet their renewable purchase obligation (RPO). In March 2021, Power Market trades the highest ever monthly volume of 8,249 MU and achieving 92% year over year growth since March’20 on increased consumption of electricity. In the last financial year 2020-21, Exchange culminates with the highest ever yearly electricity volume of 73,941 million units (MU) achieving 37% YoY growth.

in millions units

POWER MARKET TRADE VOLUME

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Source: IEX

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The green term-ahead market traded the highest ever volume of 412 MU during June’21, the market saw 15% growth over the previous month led by the ongoing wind season. For the first quarter, the market has registered a cumulative trade volume of 955 MU, already surpassing the total green volumes achieved in FY 2021. The market is witnessing a growing increase in participation and has become a key facilitator of green power trade among distribution utilities, industrial consumers, and green generators offering the most competitive and viable avenue. While the lowest in March of 2021 as Green Term Ahead Market traded a volume of 51 MU during the month comprising 21 MU in the solar segment and 30 MU in the non-solar segment. The market has cumulatively traded 1,329 MU volume since its launch on 21 August 2020.

IMPORTED SOLAR PV MODULE AVERAGE SELLING PRICE The price of solar PV modules was quite unpredictable and the reason for fluctuation in the average selling price (ASP) of solar modules is due to uncertainty in the lockdown, raw materials such as polysilicon, glass increasing prices in China, rise in the freight charges, also currency fluctuations. As per the available data from the import and export tracker, India imported more than 90% of the solar PV modules from China in the first quarter of 2021. There is an increment of around 7.5% in the module ASP from Jan 2021 to June 2021 in Poly and around 1.9% in Mono Perc. The price of the modules will remain stable in the coming few months, but may again increase due to demand in the Chinese and global market, also lockdown is slowly uplifting in many parts of the country so the projects which were on hold due to restriction will start commissioning, which surges the demand of the imported panels. The price of the modules might fluctuate due to the low-utilisation of wafer and cell. Even the upcoming BCD and safeguard duty due date will bring lots of hinges in the Solar PV modules prices.

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$/watt

IMPORT ASP OF SOLAR PV MODULE 2021

Source: Export & Import Trackers

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RECENT SOLAR AUCTION Winner

Capacity (MW)

Tariff (₹/kWh)

Solar PV Auctions in 2021

Sprng Energy

120

2.2

NTPC

150

2.2

Coal India

100

2.2

TP Saurya (Tata Power)

2.2

SJVN

2.21

Adani Green Energy

150

2.22

Torrent Power Generation

150

2.22

TP Saurya (Tata Power)

250

2.51

SJVN

100

2.64

ACME Solar

300

2.42

ReNew Power

200

2.43

Tata Power

300

2.62

Azure Power

200

2.62

O2 Power

350

2.44

Avaada Energy

200

2.459

GUVNL 500 MW (Phase XII) GUVNL 500 MW (Phase XII) GUVNL 500 MW (Phase XII) GUVNL 500 MW (Phase XII) GUVNL 500 MW (Phase XII) Torrent Power’s 300 MW in Gujarat Torrent Power’s 300 MW in Gujarat MAHAGENCO 250 MW at the Dondaicha Solar Park GUVNL 100 MW at the Raghanesda Solar Park (Phase-X) MSEDCL 500 MW (Phase VI) MSEDCL 500 MW (Phase VI) MSEDCL 500 MW Wind-Solar Hybrid MSEDCL 500 MW Wind-Solar Hybrid RUMSL Agar 550 MW Solar Park RUMSL Agar 550 MW Solar Park EQ iSearch

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RECENT SOLAR TENDER Issuer

Capacity (MW)

Project Type

Solar PV Tenders in 2021

REMC (Railway)

740

Utility-scale

MSEDCL, Maharashtra

500

Distributed

MSEDCL, Maharashtra

500

Utility-scale

MSEDCL, Maharashtra

500

Wind-Solar Hybrid

MPUVNL, Madhya Pradesh UPNEDA, Uttar Pradesh

270

PM KUSUM Scheme Rooftop

Selection for Setting up of 740 MW Land Based Solar PV Power plant on Railway Land under Tariff Based Competitive Bidding The ceiling tariff for the project has been set as ₹3.05 (~$0.042)/ kWh For Purchase Of Power through Competitive Bidding Process (Followed By Reverse E-Auction) From 500 MW Grid Connected Solar Projects RfS document for procurement of 500 MW Wind-Solar Hybrid Power from grid connected inter-state and intra-state projects Feed in Tariff (FIT) for KUSUM – A is ₹3.07 per Unit by MPERC

MREDA, Manipur

100

NHPC, Karnataka

100

SECI

100

MREDA, Manipur

REMC (Railway)

SECI

100

NTPC

500

NHPC

600

SECI

1200

106

Leased by Farmer for setting up of Decentralized Ground Mounted Grid Connected Solar Power Plants of 0.5 MW /1 MW/ 1.5 MW / 2 MW (AC) under (PM KUSUM) Scheme Utility-scale Selection of Solar Power Developer for Setting up of 100MW at Jiribam, Manipur Utility-scale EPC Contract for 100 MW ISTS Connected Ground Mounted Solar PV Project at Ultra Mega Renewable Energy Power Park in Koppal District Utility-scale (BESS) Selection FOR SECI’S 100 MW project with 40MW/120 Mwh BESS Utility-scale Selection for Setting up of 50MW Grid-Connected Solar PV Power Project in Jiribam Utility-scale (BESS) Power from the plant shall be used by IR anywhere in the state as it deems necessary. Utility-scale For 100 MW Solar PV project at Chhattisgarh with land having 15 years Plant O&M Utility-scale EPC Package with land for development of ISTS Solar PV Project any anywhere in India Utility-scale For 600 MW Solar PV Power Project and associated Transmission line for Power Evacuation to ISTS Sub-station and Solar Park under UMREPP Scheme Utility-scale 1200 MW ISTS-connected Solar PV Projects in Karnataka under Tariff-Based Competitive Bidding (ISTS-X) EQ iSearch

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QUARTERLY RESULTS LONGI SOLAR In Q1 2021, LONGi reported operating revenue of $2.413 billion, up 84.36% from $1.309 billion in the same period last year. Net profit was $0.381 billion, up 34.24% compared with $0.284 billion in the equivalent period in 2020. Net profit, excluding non-recurring gains and losses (referred to as non-net profit deduction), was $0.368 billion, up 37.46% year on year. In 2020, LONGi achieved wafer shipments of 58.15 GW, with external sales of 31.84GW and 26.31 GW for internal use, a year-on-year growth of 25.65%. According to the China Photovoltaic Industry Development Roadmap (2020 Edition) published by the Chinese Photovoltaic Industry Association (CPIA), the share of mono-crystalline in 2020 has risen to 90.2%, up more than 20% points from 2019. LONGi achieved shipments of 24.53 GW for its monocrystalline modules, of which external sales accounted for 23.96 GW, up 223.98% year on year. Internal use was 0.57 GW. In 2020, LONGi invested around 4.75% of revenue in R&D and has secured a cumulative total of 1,001 authorized patents. The annual report highlighted that, by the end of 2020, the company’s mono-crystalline wafer, cell, and module production capacities had reached 85 GW, 30 GW, and 50 GW respectively.

DAQO NEW ENERGY In Q1 2021, Daqo produced 20,185 metric tons (MT) of polysilicon compared to 21,008 MT in Q4 2020, Polysilicon production volume was 20,185 MT in Q1 2021, compared to 21,008 MT in Q4 2020. The production cost was up by 4% in the quarter as compared to Q4 2020, primarily due to the rise in the cost of silicon raw material and the impact of lower production volumes. Polysilicon sales volume was 21,471 MT in Q1 2021, compared to 23,186 MT in Q4 2020, while Polysilicon average total production cost was $6.29/kg in Q1 2021, compared to $5.92/kg in Q4 2020 Revenue was $256.1 million in Q1 2021, compared to $247.7 million in Q4 2020, Net income attributable to Daqo New Energy Corp. shareholders was $83.2 million in Q1 2021, compared to $72.8 million in Q4 2020. Average Selling Price in the first quarter of 2021 was $11.90/kg, approximately 10% higher than Q4 2020. Due to delays in contract signing, product shipment, to revenue recognition upon products’ arrival at customers’ sites, it takes time for market prices to be fully reflected in our ASPs during periods of rapid price change. In mid-March, Daqo began construction for its new Phase 4B project, which will add 35,000 metric ton capacity for high-purity polysilicon, expect to complete the project by the end of 2021 and ramp up to full capacity by the end of Q1 2022. The Phase 4B project and the potential IPO on China’s STAR Market will bring a new phase of development and enable us to quickly expand capacity to address the fast-growing demand from the global solar PV market for ultra-high purity polysilicon.

JINKO SOLAR In the first quarter of 2021, shipments were 5,354 MW (4,562 MW for solar modules, 792 MW for cells and wafers), solar module shipments up 33.7% year over year. Total revenues were $1.21 billion, down 6.4% (or up 9.0% excluding the impact from the disposal of solar power plants in Mexico in the first quarter of 2020) year over year. Goss profit was US$207.3 million, down 18.0% year over year. While net income was $33.7 million, down by 21.7% year over year. In the first quarter, there was a sharp rise in the price of polysilicon has driven up the price of modules, which has affected the downstream demand in the short term. The lower demand has kept the materials' prices from rising further; as the prices of polysilicon stabilize, downstream demand is expected to resume in the second half of the year. The company provides system integration and technical services to energy storage clients in connection with their residential, industrial, and commercial projects. Jinko is technologically advanced in the development of N-type cells and has become the industry benchmark in terms of lab efficiency, mass production efficiency, and cost control. The company has entered into a strategic investment agreement with Inner Mongolia Xinte Silicon Materials Co., Ltd. recently to secure the polysilicon material supply. Also, entered into a strategic cooperation agreement with China COSCO Shipping Corporation, which will provide customers with long-term, high-quality transportation solutions. During the first quarter, the imbalance between polysilicon supply and strong downstream demand as well as many other factors continued to increase module prices on top of many factors, but the impact on downstream customers is temporary. The lower demand has kept the prices from rising; as the prices of polysilicon stabilize, downstream demand is expected to resume in the second half of the year, with the present polysilicon supply chain sufficient to support 160 GW of installations this year and 210 GW of installations in 2022.

JA SOLAR JA Solar’s Q1 2021 revenue was $1.06 billion, a year-on-year growth of 51.52%, net profit was $29.89 million, a year-on-year reduction of 45.11%. The reason for reduction of net profit was not mentioned by JA Solar in their quarterly result. But it might be due to the price increase of raw materials such as silicon. During the quarter, the operating costs was increase by 69.2% year-on-year to $943.74 million, which increased the revenue. The organization did straightforwardly correspond this to the extension of deals and rising costs of crude and helper materials. As of the end of 2020, JA Solar's module production limit arrived at 23 GW. As per the organization's advancement report on projects under development, the recently fabricated high-productivity Qujing silicon wafer, Ningjin solar cell, and Yiwu Yangzhou and

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Vietnam solar PV panel production facilities have all been progressively placed into creation. It is normal that the organization's module manufacturing limit will surpass 40 GW by 2021, and its silicon wafer and cell production limit will keep on being kept up at about 80% of its module manufacturing capacity.

FUNDING AND M&A UPDATES Avaada Energy sells 41.6% with $453 million to Thailand’s PPT Group. Global Power Synergy (GPSC), the listed power subsidiary of Thailand’s state-owned PTT Group, has acquired a major stake in Indian renewable energy provider Avaada Energy for $453 million. Avaada Energy has a Solar portfolio of above 3.74 GW. This deal helps the company (GPSC) to expand its renewable energy portfolio. INDIGRID completed the acquisition of FRV I and FRV II – Operating solar projects. India Grid Trust and FRV Solar Holdings (FRV) had entered into a Securities Purchase Agreement for the acquisition of 100% shareholding and management control, in one or more tranches, in FRV Andhra Pradesh Solar Farm-I Private Limited (FRV I) & FRV India Solar Park II – Private Limited (FRV II) and according to Regulation 23(6)(a) of SEBI (Infrastructure Investment Trusts) Regulations, 2014 and other applicable laws and regulations, the India Grid Trust has completed the acquisition of 100% paid-up capital and management control of FRV I & FRV II from FRV on July 13, 2021. Sangam Renewables Divests Its Entire Stake in Its Subsidiary WAACOX Energy to Aditya Birla Renewables. Sangam Renewables had announced the completion of its entire stake sale (51%) in its subsidiary, WAACOX Energy (WEPL) to Aditya Birla Renewables (ABRel), earlier held 49% stake in WEPL, and now shall own 100% stake. The company shall use these proceeds to reduce its short-term debt on a standalone basis. The PPA of these projects in WEPL is held by Mahagenco and Mahadiscom. Azure Power closes $163 million for 300 MW projects in Rajasthan Mitsubishi UFJ Financial Group (MUFG) has closed syndicated financing for a 300 MW project with Azure Power. The solar Pv projects are being developed in Rajasthan. Colin Chen, Head of ESG. Finance for Asia-Pacific, MUFG, said, having played leadership roles in a string of renewable project financings in India, we are even more convinced of the exciting prospects in the country’s renewables sector. We look forward to further harnessing our project financing and ESG expertise to support India’s sustainability aspirations. ACME Signs Another Landmark Investment Deal with UNOPS S3i and IFU for a 250 MW Solar Park in Rajasthan, India. The total value of the project is the equivalent of just under $200 million, of which about a quarter are financed through equity contributions by the three co-investors. The assets are well diversified with a presence across 13 states in India and a Central: State mix of 65:35. The company has an asset base of $2 billion. ACME has brought several innovations and introduced the latest technologies for the best solar plant operations. IFU– the Investment Fund for Developing Countries is a Danish impact investor contributing to green, just and inclusive societies as well as supporting the Sustainable Development Goals. IFU provides risk capital to companies operating in developing countries across Africa, Asia, Latin America, and parts of Europe. Investments are made on commercial terms in the form of equity, loans, and guarantees. This partnership is a key milestone towards ACME’s vision for developing a portfolio of 25 GW of Renewable Energy projects which comes in line with India’s plans to achieve 450 GW of RE Power by 2030.” said Manoj Upadhyay, Founder, and Chairman, ACME Group. AGEL Arm Transfers 74 % Stake of MSEL to Adani Tradecom LLP Adani Renewable Energy Holding Four Ltd, a wholly-owned subsidiary of Adani Green Energy Ltd (AGEL), has transferred 74% shareholding of Mundra Solar Energy Ltd (MSEL) to Adani Tradecom LLP (ATLLP) on May 21, 2021. The MSEL is a step-down subsidiary of the company and the same has been transferred to ATLLP, which is a wholly-owned LLP of Adani Enterprises Limited, an entity falling under a joint control (Adani Group). The MSEL is incorporated to manufacture crystalline silicon solar PV cells, modules, and ancillary operations, which is in a similar line of business undertaken by Adani Enterprise Limited through its subsidiary namely, Mundra Solar PV Limited.

Adani Green to Buy SB Energy’s 5 GW Renewable Portfolio for $3.5 Billion. Adani Green Energy Limited (AGEL), signed definitive agreements for the acquisition of 100% interest in SB Energy India on May 19, 2021. the transaction is for a fully completed enterprise valuation of approximately $3.5 billion (Rs. 26,000 Cr). This transaction marks the largest acquisition in the RE sector in India. The total renewable portfolio of SB Energy India is about 4,954 MW spread across four states of the country. The target portfolio comprises large-scale utility assets with 84% solar capacity (4,180 MW), 9% wind-solar hybrid capacity (450 MW), and 7% wind capacity (324 MW). The portfolio contains a total of 1,400 MW operational solar power capacity. Further, 3,554 MW of solar power capacity is under construction. These projects have a 25-year power purchase agreement (PPA) with sovereign-rated counterparties such as Solar Energy Corporation of India, NTPC Limited, and NHPC Limited. Solar Park-based projects form a primary part of the operating assets of the portfolio.

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KKR-Backed Renewables Platform Buys 76 MW of Solar Portfolio from Singapore Firm Sindicatum. Virescent Infrastructure, a renewable energy platform backed by global asset manager KKR & Co, has acquired the 76 MW India solar asset portfolio of Singapore-based Sindicatum Renewable Energy Company Pte Ltd. The assets have a mix of central government and Tier-I state government off-takers. The acquisition is in line with Virescent’s strategy to acquire operational renewable energy assets that have stable long-term cashflows with government counterparties across India. The Singaporean company has made several acquisitions in the country in the past. In 2019, it bought solar energy assets of Delhi-based Sukhbir Agro Energy having a total capacity of 50-60 MW.

SHV Energy Acquires Majority Stake in SunSource Energy. SHV Energy’s acquired majority stake is part of the companies’ renewable solutions strategy and ensures a further expansion of SunSource’s solar portfolio to 550 MWp plus by 2023. This new partnership will directly benefit SunSource’s ability to expand its portfolio of projects for C&I customers, with an overall ambition to grow to over a 1 GW solar portfolio. As part of this transaction, the original investor Neev fund, which is promoted by India’s largest commercial lender State Bank of India (SBI) and the UK Government, has obtained a successful exit. With this investment, SHV Energy enters India’s fast-growing renewable energy market focussing on solutions for C&I customers, capitalizing on the experience of SunSource Energy in decentralized energy projects. SHV Energy already operates in India through its SUPERGAS brand, a leading local LPG player founded in 1996.

Azure Power Sells Solar Rooftop Portfolio to Radiance Renewables. Azure Power has signed a binding agreement to sell its non-core solar rooftop portfolio to Radiance Renewables Pvt. Ltd. (Radiance), one of India’s leading providers of competitive renewable energy solutions for commercial, industrial, and residential customers and a 100% subsidiary of the Green Growth Equity Fund (GGEF), India’s leading Climate fund, managed by EverSource Capital, for a total consideration of ₹5,365 million ($73.5 million) subject to purchase price adjustments. The rooftop portfolio generated ₹331 million ($4.5 million) in EBITDA for the 12 months ending December 30, 2020. After excluding rooftop revenues, our new FY’22 revenue guidance is ₹17,200 – 18,200 million ($236–$249 million). This transaction allows Radiance to bring its high-quality asset management skills to improve asset performance given its focus on enhancing and delivering value to its stakeholders. We plan to introduce cutting-edge asset management tools such as real-time monitoring with analytics and aim to make Radiance a leading Renewable Energy as a Service player in India.

Edelweiss Infrastructure Fund Snaps up 74% stake in Engie Group’s India Solar Assets for $550 million. The Engie Group has 813 MW of operational solar assets in the country, and it plans to add up to 2 GW more over the next couple of years, which once commissioned will be acquired by the Edelweiss. Infrastructure Yield Plus (EIYP). The investment has been carried out through Sekura Energy, which is the renewables-focused platform of EIYP that invests, acquires, and operates assets in the domestic energy sector.

AGEL Acquires Spinel Energy & Infrastructure. Adani Green Energy has acquired a 100% equity stake in Spinel Energy and Infrastructure from Hindustan Clean energy and Peridot Power Ventures. “Adani Green Energy Ltd (AGEL) has completed the acquisition of 100% of the share capital and all the securities of Spinel Energy & Infrastructure Ltd from Hindustan Clean energy Limited and Peridot Power Ventures Ltd. This particular acquisition will help it add 20 MW additionally in its existing capacity and help in expanding its network and meet the targeted decarbonization plan for a greener environment. AGEL’s present capacity includes power plants worth 15,240 MW in 86 locations, spread over 11 states in the country. The company also recently announced the acquisition of a 75 MW solar power project from Sterling & Wilson at the cost of ₹446 crore in Telangana.

Amplus Solar Buys Rooftop Solar Assets of Sterling & Wilson Totaling 7.2 MW. Amplus Solar, a member of the Petronas group of Malaysia, has acquired 17 solar rooftop assets of Sterling & Wilson totaling 7.2 MW. Amplus Solar already has projects in the distributed solar segment and this deal will increase their portfolio in several states including Haryana, Punjab, Madhya Pradesh, Rajasthan, Maharashtra, Telangana, and Karnataka. Sterling & Wilson has been offloading its assets to repay loans. They have sold a 75 MW solar power project in Telangana to Adani Green Energy for ₹446 crore.

Leading Telecom Giant Bharti Airtel Acquires 8.53% Stake in Avaada MHBhuldhana. Bharti Airtel joined hands with Avaada Energy and acquired 8.53% stake in Avaada MHbuldhana to source 21.32 MWp of Solar Power from Avaada MH Buldhana under the group-captive arrangement and thereby reduce its carbon footprints. Avaada is targeting to have an operational capacity of more than 5 GW capacity by the end of 2021. With a portfolio of over 500 MW of signed contracts under open access arrangement, Avaada is helping eminent corporates and leading data centres optimize their operating costs and meet their green energy needs. Bharti Enterprises, one of India’s leading corporates, is pioneering in its commitment towards sustainable development and playing the role of torchbearers in the combat against climate change. Bharti’s initiative to increase the share of renewable energy in their power sourcing mix is commendable and must inspire other corporates to emulate.

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Solar Analytics Startup Prescinto Raises $3.5 Million in Seed Round Led by Venture Catalysts. Prescinto, a leading tech start-up reinventing the renewable energy industry through its AI-powered platform has raised $3.5 million in a Seed round, participated by Inflection Point Ventures (IPV). The round has been led by Venture Catalysts and saw participation from Mumbai Angels and Lets Venture. It is the 7th deal announcement by IPV since Jan 2021. IPV is likely to invest ₹155 crore ($20.91 million) this year across 60 plus startups. Prescinto is an IoT and AI-powered clean energy SaaS platform that increases solar power plant generation by 5%. The platform increases solar power plant generation by ~7% at a cost of 0.1% of revenue resulting in 20X-50X return on investment. Supported by a proven founding team, Prescinto has already demonstrated itself with customers like Macquarie (Stride Climate Investments), Essel Infrastructure, GMR, etc, to achieve traction of 3X annual growth reaching ~9 GW Solar Plants across 14 countries.

Adani Green raises $1.35 billion Debt from 12 Banks. Adani Green Energy Ltd (AGEL) has raised $1.35 billion in debt for its under-construction renewable energy projects via definitive agreements signed with a group of 12 international lenders. The revolving project finance facility would initially finance the 1.69 GW hybrid portfolio of solar and wind renewable projects to be set up in four SPVs (special purpose vehicles) in Rajasthan. The company claimed this will be the first certified green hybrid project loan in India. The 12 international banks that will provide loans are Standard Chartered Bank, Intesa Sanpaolo S.p.A, MUFG Bank, Sumitomo Mitsui Banking Corporation, Co-operative Rabobank U.A., DBS Bank, Mizuho Bank, BNP Paribas, Barclays Bank PLC, Deutsche Bank AG, Siemens Bank GmbH and ING Bank N.V. AGEL raised a $1.35 billion debt package for its under-construction renewable asset portfolio through definitive agreements signed with a group of leading international lenders.

Fourth Partner Energy Ties Up with Indonesia’s Indika Energy to Expand its International Footprint. Fourth Partner Energy, India’s leading solar solutions firm today announced a partnership with Indonesia’s energy major, Indika Energy. The joint venture company Empat Mitra Indika Tenaga Surya (EMITS) is aimed at accelerating Indonesia’s renewable energy transition. Like Fourth Partner Energy’s India portfolio, EMITS will offer integrated solar, storage, and EV charging solutions to Indonesia’s businesses. Indika Energy will hold 51% and Fourth Partner Energy's 49% stake in EMITS. The Joint Venture Company EMITS will provide on-site & off-site solar, battery storage, and EV charging infrastructure solutions to Indonesia’s corporate sector.

Scatec Enters the Indian Market by Signing Agreement for a 900 MW Solar Power Plant. Scatec has entered into a partnership with ACME, a leading solar developer in India, to realize a 900 MW solar power plant in the state of Rajasthan, India. The project holds a 25-year PPA with Solar Energy Corporation of India secured in a tender in 2018. The project has an estimated total Capex of USD 400 million, with 75% debt financing from an Indian state-owned lender. Scatec will hold a 50% economic interest in the project, while ACME will retain 50%. ACME will be the turn-key EPC (Engineering, Procurement, and Construction) provider for the project. Scatec will ensure delivery according to international standards, HSSE and E&S, as well as optimization of engineering, procurement, and operations of the plants. The annual production from the plant is expected to be 1,600 GWh. “Scatec targets 15 GW capacity by the end of 2025 and expects India to be a key market in the years to come. This transaction is an important milestone to position Scatec for future growth in the Indian market.

SNEC 2021 LAUNCHES LONGi Solar unveiled its Hi-MO N – the first bifacial module with N-type TOPCon cells – and once again leads the PV industry with high-efficiency technology. Hi-MO N maintains the optimal 182mm cell and 72c module size and adopts LONGi’s proprietary HPC technique based on N-type TOPCon (High-Performance Cell with Hybrid Passivated Contact). The conversion efficiency is up to 22.3% and power reaches 570W in mass production. Designed to deliver ultra-high value and lower LCOE to utility-scale PV power plants, Hi-MO N is expected to be the flagship product leading an industrial breakthrough in module efficiency and energy yield. From its commitment to monocrystalline silicon technology to broad applications of monocrystalline silicon-based PERC technology spanning P-type bifacial technology to M6 and M10 wafer standards, each of LONGi’s breakthroughs is based on the maximization of industry value and reduction of LCOE. LONGi’s technologies have accelerated the PV industry. The 182mm-size module can minimize costs associated with racking, cable, inverter, and labor. Its high conversion efficiency of 22.3% can enhance installed capacity by over 3.5% in areas of limited space and reduce balance of system BOS costs as well as costs of AC equipment and operations and maintenance throughout the life cycle of the power plants.

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Jinko Solar has unveiled several new products standing out for attention. Tiger Pro 415W is its first 400+ watt solar panel designed for the residential market. At the utility-scale level, Jinko Solar’s showcased N-type TOPCon solar panel based on 182” cell achieves a power output of up to 625 Wp, with 22.86% module efficiency, setting a new world record in the class of its size. TOPCon refers to a PERC cell architecture, which passivates the cell contacts – Tunnel-Oxide Passivated Contacts. Jinko Solar’s PERC capacity could reach 37 GW by the end of this year, plus or minus 1 GW depending on TOPCon which is an upgrade of this existing capacity to the next efficiency level of up to 24.5%. Jinko Solar’s SWAN high efficiency, half-cut, monocrystalline bifacial module at SNEC has a 555 Watt power rating, a 30-year lifespan, and is available in transparent backsheet or dual-glass bifacial options.

Huawei Fusion Solar All-scenario PV & Storage Solution, which was unveiled at SNEC. It covers “4+1” scenarios: Smart PV Generator Fusion Solar 8.0, Green Residential Power 2.0, Green C&I Power 1.0, and Off-grid (fuel removal) Power Supply Solutions + Energy Cloud, aiming to accelerate the shift to zero-carbon generation and bridge the energy divide. Fusion 8.0 offers customers two benefits: First, the smart PV generator promises improved grid stability; second, the world’s first “Gemini” ±1500V design can help to support larger subarrays, higher voltages, thus could reduce LCOE by 7%. Specifically, with the ±1500V bipolar string + smart string energy storage solution, the Smart PV Generator features the industry-leading DC-coupled architecture and adopts Grid Forming 1.0, an intelligent PV + storage collaborative control algorithm, to enable the PV power generation to be grid-connected synchronously and to allow solar power to be stored and controllable. The upgraded Green Residential Power 2.0 solution highlights the innovative “1+3+X” structure. With the Smart Energy Controller at the core, it is equipped with three key components— the optimizer, the smart string ESS, and the Green Power Cloud to build the intelligent power ecosystem. Huawei launched its new C&I solution this year, which fits for different application scenarios: solar only, storage only, solar + storage + charging, and off-grid. With the application of optimizers and the smart string energy storage system, the solution can improve the energy yield by 30% and energy storage power by up to 15%. Huawei inverters support intelligent AFCI arc protection and automatically shut down within 0.5s, ensuring the active safety of systems. The full series of off-grid (fuel removal) comprehensive power supply solutions, called iPowerCube, include a full series of M\S\P and can be applied to industrial production and livelihood scenarios. Energy Cloud, customers will have access to all-scenario PV and storage power plants. Adhering to the concept of all-scenario refined management, Huawei enables module-level monitoring on the PV side while allowing the pack-level 3D visual management on the storage side. zero-carbon power generation, Huawei also displays the digital power zero-carbon all-scenario solution for the first time at SNEC. In the era of carbon neutrality, Huawei Digital Power business unit gives full play to its strengths in digital technology and power electronics and integrates the watt, thermal, energy storage, cloud, and AI technology, to accelerate the digitization of the energy industry and contribute to a zero-carbon smart society. Zero-carbon Data Centre: Simplified DC allows reshaping architecture through fully prefabricated and modular construction, shortening TTM from 20 months to 6 months. Zero-carbon Sites: Huawei provides simplified sites and server rooms and uses all-scenario PV stacking to help 5G operators avoid the increased energy-related OPEX, resulting in zero-carbon sites.

Sungrow has the latest flagship products on display including the world’s most powerful string inverter SG320HX and a brand-new modular solution. Both solutions have been available so far in China and soon to be released in overseas markets in 2H 2021. SG320HX enables lower LCOE and is compatible with the growing preference for high wattage bifacial modules. The newly-launched “1+X” modular inverter is designed with a minimum unit of 1.1 MW and features a flexible capacity ranging from 1.1 MW to 8.8 MW. The modular design featuring “individual” units, ensures rest units in normal operation without any impact from one failing unit. Moreover, the failed device can be easily replaced with the new one in a plug-and-play manner, streamlining the O&M. Sungrow presented the zero-carbon industrial park and zerocarbon household concepts depicting commercial and residential applications – with power generated by PV plants, and stored in the energy storage system, then charging the EV. The commercial PV inverters are loaded with cutting-edge technologies such as Arc Fault Circuit Interrupter (AFCI) which substantially reduces the risk of electrical fires. In addition, the three-phase hybrid residential inverter works with the SBR high-voltage battery, thus, maximizing self-consumption.

ReneSola unveiled TWIN 3.0 Series of modules in SNEC, 2021. The unveiled series TWIN 3.0 having a power rating up to 550 Wp with an efficiency of 21.5% was a centre of attraction between the visitors. The series is being offered with 12 years of product warranty and 30 years of linear power warranty. Twin 3.0 has been highly recognized by the market since its launch. The module power can reach 555 Wp, and the efficiency of 21.5%. ReneSola also offers a 12-year material warranty and a 30-year linear power warranty. Twin 3.0 was certified by DEKRA, a famous authoritative organization, marking that ReneSola 182 cell module meet IEC 61215 and IEC 61730 standards in design, materials, and production process.

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Risen Energy launches World Beater N-type 700 Wp Ultra-High-Performance Solar PV Module, which it claims combines the advantages of both TOPCon and Hetero Junction (HJT) cell technologies. The dual technology is integrated into the product, bringing more stable performance and higher power generation. Risen Energy calls its NewT@N PV panel, based on 66x210mm size cells as the industry’s ‘1st mass-produced’ module with a power rating of up to 700 Wp and an overall module efficiency of 22.5%. It claims to have heralded the PV industry to the 7.0 era with this module. “NewT@N, therefore, has the advantages of N-type cells such as ultra-low temperature coefficient, excellent low-light performance, and bifaciality greater than 80%, and N-type silicon wafers do not have the LID (light-induced degradation) phenomenon caused by the formation of B-O complexity.” it has used advanced technologies as non-destructive slicing of cells for half-cell layout, multi-busbar (MBB) and high-density packaging.

JA Solar launches new product DeepBlue 3.0 Pro, the product is a new member of the company’s DeepBlue 3.0 product line following the release of DeepBlue 3.0 Light in March 2021. DeepBlue 3.0 Pro is an upgrade to DeepBlue 3.0. The module size is the same as that of DeepBlue 3.0 and has outstanding advantages such as higher conversion efficiency, excellent power generation capacity, and high reliability. The conversion efficiency of DeepBlue 3.0 Pro is as high as 21.7%. The power of the 72-cell type reaches 560 Wp and 78-cell type 605 Wp. DeepBlue 3.0 Pro perfectly balances quality, efficiency, and cost, providing customers with the best LCOE. It incorporates JA Solar’s product design concept of “reasonable size, reasonable electrical parameters, customer-oriented to achieve optimal LCOE”.

Powin Energy launches its first high voltage battery storage Stack product, its new 1500Vdc Stack360E is compatible with battery cells from various suppliers and is set to begin mass production in the third quarter of this year, with deliveries scheduled to begin also within Q3. moving to higher voltage reduces overall balance-of-plant costs for battery storage projects, increasing the general power rating of inverters used while the unit’s module design makes improvements on previously available products from the company, allowing for faster installation, smaller footprint, and reduced temperature variance.

OTHER LAUNCHES Jakson announces the launch of 590 Wp Modules, The Ultra-Modern, power-packed Helia Series, with an efficiency of over 21%. The Helia Series is a range of indigenously developed Ultra-Modern, high output PV modules using A+ category half-cut MonoPERC solar cells. The Helia series will be available in both Monofacial and Bifacial categories, with variants ranging from 120, 132, 144, and 156 half-cut cells configuration. The bifacial range of Helia modules offers an additional power gain of up to 15% from the rear side of the modules due to the use of a transparent back sheet. The Helia series of PV modules are equipped with multi-busbar technology (MBB) and high-density interconnections enabling it to provide significantly better output at higher temperatures and under low-light/shading conditions, the PV modules have excellent PID characteristics and are covered by 25 years of performance warranty and 12 years of product workmanship warranty, available in Power Rating from 440 Wp up to 590 Wp (Monofacial & Bifacial).

POLICY & REGULATORY UPDATES Petition Seeking Payment of Change in Law Compensation from SECI as a Consequence of Imposition of Safeguard Duty. The Commission notes that as per the definition of Commercial Operation Date (COD) provided in Article 1 of the PPA, COD will be the date on which the commissioning certificate is issued upon successful commissioning (as per provisions of the Agreement including but not limited to the witnessing of commission by the Committee Constituted by MNRE/SECI) of the full capacity of the Project or the last part capacity of the Project as the case may be (if Applicable). Accordingly, the Commission holds that the liability of payment on account of imposition of Safeguard duty on procurement of Solar PV panels and associated equipment by the Petitioners shall lie with the respondents till the commercial operation date only.

Solar Developers Urge Karnataka to Fast Track Safeguard Duty Reimbursements. The National Solar Energy Federation of India (NSEFI) has written a letter to the Chief Minister of Karnataka, asking him to direct the Karnataka Electricity Regulatory Commission (KERC) to disburse the additional costs incurred by the developers due to safeguarding duty imposition during the development of 860 MW of solar projects across 43 talukas.

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The letter mentions that the tender for the development of these projects was floated by the Karnataka Renewable Energy Development Limited (KREDL) in 2017, and the safeguard duty came into effect on July 30, 2018. Further, the solar project developers had moved to the KERC for relief under Change in Law. We wish to apprise you that it has been more than eight months since the solar developers have filed their petitions, and no relief has been provided to the developers by KERC yet. Such additional costs were never funded by lenders, and developers had to burn out their equity to fulfil their entire costs obligation under such costs. It has been approximately 1.5 years since the solar developers had invested their loans for this additional cost. As a result of which the developers are on the verge of becoming non-performing assets (NPAs) due to the non-payment of this additional cost incurred by them on account of safeguard duty, states the letter.

Andhra Pradesh High Court Quashes State’s 6.4-GW Solar Project Tender. The Andhra Pradesh High Court (HC) held that the state had awarded solar power tenders in contravention of the Electricity Act, 2003, and quashed the request for selection (RfS) and power purchase agreement (PPA) for procuring 6.4 GW of solar power projects. Tata Power Renewable Energy had moved the HC challenging the RfS and PPA issued by the Andhra Pradesh Green Energy Corporation (APGECL) in January 2021. Adani Green Energy (AGEL) in February 2021 won five mega solar power projects of 600 MW each under the tender. State-owned NTPC won 600 MW in the auction, quoting the lowest tariff of ₹2.48 per kWh. The lowest tariff discovered in the whole auction process was ₹2.47/kWh by Torrent Power for a 300 MW solar project. The award of the tender was put on hold. The High Court has now advised the government of Andhra Pradesh that in case it wishes to procure power, the bidding documents must be following the Act as well as the guidelines framed there under and in case of any deviation, such deviations must be approved by APERC,” said a senior lawyer. Shri Venkatesh, SKV Law Offices representing Tata Power said, “Electricity Act, 2003 is a complete code and issues such as competitive bidding must be in terms of Act and the Regulator has an intrinsic role to play in such transactions. In this case, however, AP had carved out a method outside the Act and also outside the scope and powers of the regulator, which in our view is not permissible. This is what has been held by the Honourable High Court as well.

MNRE increases the timeline of CPSU projects to 30 Months . MNRE modified the Scheme Guidelines for CPSU Scheme Phase-Il to increase the project timelines. The commissioning period has been enhanced from the present 24 months to 30 months from the date of the letter of award (LoA). Further, the timeline for the intermediate milestone of "Award of EPC Contract', which was 6 months from LoA, in Tranche-l & Tranche-Il, has also been increased to 12 months from the date of LoA, primarily on account of a temporary shortage of equipment for solar PV power projects, particularly domestically manufactured solar PV cells. The interactions of the Ministry with industry stakeholders have also indicated that the addition of the new domestic manufacturing capacity of solar cells has been delayed due to COVID-19 related travel restrictions.

Petition for Adoption of Tariff for 2000 MW of ISTS Solar Projects. The petition under Section 63 of the Electricity Act, 2003 for the adoption of tariff for the ISTS Grid-connected Solar PV Projects of 2 GW MW selected through Competitive Bidding Process as per the Guidelines issued by Ministry of Power, Govt. of India on 03 August 2017 and its amendments thereof. The CERC has adopted tariff of ₹2.55/kWh (~$0.034) and ₹2.53/kWh ((~$0.035) through competitive bidding by NHPC Limited. The Commission requested that NHPC eliminate the deviation condition in regards to the 'Adjustment of Law' pay in the PPAs executed with the engineers so it adjusted with the 'Adjustment of Law' rules given by the Ministry of Power (MoP).

HAREDA Issues Guidelines for Development of Solar Parks by Private Entrepreneurs. The New and Renewable Energy (NRE) department of Haryana issues guidelines for the development of the solar park in the state of Haryana without CFA. The solar power project developer may submit a proposal for the development of the solar park to NRE/HAREDA along with a detailed project report, along with 100% land documents. The minimum capacity of such a park will be 50 MW. The land requirement shall be a minimum 4 acre per MW. However, any Solar Power Park Developer (SPDD) who intends to develop a solar park in less than 4 acres/MW, then the SPDD has to provide technical details which may be evaluated by HAREDA. The cost of development of a solar park of 50 MW shall be taken as ₹10 crore, again it depends upon the location, condition of the land, soil, water availability, etc. so if any developer claims the development with less than ₹10 crore, then MNRE/BEE verification shall be considered.

Amendment to Scheme Guidelines for CPSU Scheme Phase-II. The MNRE has issued guideline for implementation of Central Public Sector Undertaking (CPSU) Scheme Phase-II (Government Producer Scheme) for setting up 12,000 MW grid-connected Solar Photovoltaic (PV) Power Projects by the Government Producers with Viability Gap Funding (VGF) support for self-use or use by Government/ Government entities, either directly or through Distribution Companies (DISCOMS). The total project cost under this scheme is estimated to be around ₹480 billion.

CERC Approves Most of the Changes in Bidding Guidelines for 1500 MW of Solar Projects. Petition under Clause 18 of the Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Solar PV Power Projects (Resolution number 23/27/2017-R&R.) issued by the Ministry of Power, Government of India under section 63 of the Electricity Act, 2003, seeking certain

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deviations from the Guidelines such as Payment Security Mechanism, Notification of force majeure event, Off-take Constraints & Grid Unavailability, Events of default and termination consequences, Event of default on account of SPD’s failure to supply energy as per PPA, Applicability of bid responsiveness conditions to affiliates of the bidder, Time period for holding minimum paid-up share capital, Controlling shareholding of a listed company, Extension of commissioning timelines, Inclusion of “Epidemic, Pandemic, Quarantine, Lockdown or similar action ordered by any government authority” as Force Majeure Events, Termination due to a Non-Natural Force Majeure Event, Quantum and Mechanism for Change in Law Relief.

Electricity Regulatory Commission May Allow Net Metering up to 500 kW or up to Sanction Load. Electricity Regulatory Commission may allow Net Metering up to 500 kW or up to sanction load whichever is lower – says Draft Electricity (Rights of Consumers) (Amendment) Rules, 2021 for comments put up by Ministry of Power. In the Case of net-metering/net billing, the distribution licensee may install a solar energy meter to measure the gross solar energy generated from the Grid interactive rooftop solar PV system for renewable energy purchase obligation (RPO) credit. In case of prosumers availing net-billing or net feed-in, commission may introduce a time of the day tariff whereby prosumers are incentivized to install energy storage so that store solar energy can be utilized by them or fed into the grid during peak hour thus helping the grid by participating in demand response of the discoms. Where ever the regulations do not provide net-metering/ net billing or net feed-in, the commission may allow net metering to the prosumer for loads up to 500 kW or up to the sanctioned load, whichever is lower, and net-billing or net feed-in for other loads.

RENEWABLE PURCHASE OBLIGATION TRAJECTORY BY MINISTRY OF POWER The central government has notified the revised Tariff Policy, which was published in Gazette of India. The appropriate commission shall fix a minimum percentage of the total consumption of electricity in the area of a distribution licensee for the purchase of energy from renewable energy sources, taking into account availability of such resources and its impact of retail tariff. Cost of purchase of renewable energy shall be taken into account while determining tariff by State Electricity Regulatory Commission SERC’s. Long term growth trajectory of renewable purchase obligation (RPO) will be prescribed by Ministry of Power in consultation with MNRE Provided the cogeneration from sources other than renewable sources shall not be excluded from the applicability of RPO’s. With the objective of creating renewable power capacity of 175 GW by 2022, the Ministry of Power, after consultant with the MNRE, had notify the long-term trajectory of RPOs for solar and non-solar power. On 8th March 2019, the Government has issued an order detailing various policy measures to promote hydropower sector in India inter-alia declare large hydropower projects including pumped storage projects having capacity of more than 25 MW LHPs (Large Hydro Projects) which come into commercial operation after 8th March 2019 as renewable energy source and to specify Hydropower Purchase Obligation (HPO) with Non-solar RPO. In compliance of the above decision and with the objective to add 30,000 MW of hydropower capacity by the year 2029-2030, Ministry of Power has prepared a revised trajectory of RPO including long term trajectory for HPO considering the LHP commissioned after 8th March 2019. On achievement of Solar RPO compliance to the extent of 85% and above, remaining shortfall, if any can be met by excess non-solar energy consumed beyond specified Non-Solar RPO for that particular year. Similarly, on achievement of other Non-solar RPO compliance to the extent of 85% and above, remaining shortfall if any, can be met by excess solar or eligible hydro energy consumed beyond specified Solar RPO or HPO for that particular year. Further on achievement of HPO compliance to the extent of 85% and above, remaining shortfall, if any, can be met by excess solar or other non-solar energy consumed beyond specified Solar RPO or Other Non-Solar RPO for that particular year.

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RPO COMPLIANCE 2019-20

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RENEWABLE ENERGY CERTIFICATE TRADING

Source: REC

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SOLAR PUMP INSTALLED UNDER PM-KUSUM Under Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PMKUSUM) till 28.02.2021, a total of 24,688 standalone solar pumps have been installed and 64 grid-connected agriculture pumps have been solarised under Component-B and Component-C of the scheme respectively. Generation of revenue from sale of surplus solar power is available for solarisation of grid connected pumps under Component-C of the Scheme. The solarisation of pumps under this component is either under progress or recently completed and surplus solar generated and amount received by farmers can be exactly assessed only on completion of one year of operation. Under PM-KUSUM Scheme, Central Government has not put any bar on land size for farmers installing solar pumps. Central Ground Water Board from timeto-time notifies the areas for control and regulation of ground water. These areas are considered as ‘dark zones’ under PM-KUSUM Scheme. Only existing pumps can be solarised in the ‘dark zones’. So far no existing grid connected pumps are reported solarised under the Scheme in ‘dark zones’.

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Source: Lok Sabha Update (As on 28.02.2021)

OFF-GRID SOLAR INSTALLED CAPACITY Among the top solar lightening state, Tamil Nadu has installed over 2.98 lakh solar home light in the states, followed by Uttar Pradesh with 2.35 lakh, while Delhi and Telangana has not install a single home lightening system in their state. In terms of Solar lamp and solar street light installations, Uttar Pradesh is at the top by installing 23.5 lakh of Solar lamp and 2.9 lakh of street light. Chhattisgarh overtake Rajasthan by installing 31.37 MW of Solar pump in the state, while Rajasthan install 30.449 MW of solar pump, there are multiple solar pumps of different HP and different sizes in kilowatts are installed across the country. Under the Components B of PM KUSUM Scheme, individual farmers will be supported to install 17.5 Lakh standalone solar Agriculture pumps of capacity up to 7.5 HP for replacement of existing diesel Agriculture pumps / irrigation systems in off-grid areas, where grid supply is not available. Pumps of capacity higher than 7.5 HP can also be installed, however, the financial support will be limited to 7.5 HP capacity. Under Component C, individual farmers having 10 Lakh grid connected agriculture pump will be supported to solarise pumps. The farmer will be able to use the generated solar power to meet the irrigation needs and the excess solar power will be sold to discoms at pre-fixed tariff

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Source: Lok Sabha Update (As on 28.02.2021)

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INVESTMENT IN THE SOLAR SECTOR Most solar power projects come in the country with private sector investment. All the nationalized banks and NBFCs, including IREDA, provide funding to solar power projects. The major policy initiatives taken by the Government to mobilize long term financing for renewable energy projects, inter alia, include financing of renewable energy projects through National Clean Energy Fund (NCEF) as per its norms, increasing the authorized capital of Indian Renewable Energy Development Agency and extending new lines of credit to enable it to enhance its concessional loan to RE projects, mobilizing project based concessional loans through multi-lateral and bi-lateral agencies i.e. World Bank, Asian Development Bank, KfW-Germany; inclusion of Renewable Energy Projects in Priority Sector Lending of Banks; and approval for issuance of tax free infrastructure bonds for funding renewable energy projects. Government is promoting development of solar energy in the country by providing various fiscal and promotional incentives such as capital subsidy, accelerated depreciation, waiver of Inter State Transmission System (ISTS) charges and losses, Viability.

Source: MNRE, CEA

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Source: MNRE (Standing Committee on Energy)

INSTALLED CAPACITY TRENDS

Source: IRENA

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The share of Wind Power has remained constant, as it has a market of 30% in 20211 of the total installed capacity of Hydro (excluding pumped storage), Wind and Solar, now also in 2020 the percentage having 31%, but the share of Hydro and Wind has changed a lot. In 2021, Solar Power installed capacity constitute 32% among the total installed capacity of Hydro, Wind, and Solar Power, on the other hand, the share of Hydro Power (excluding pumped storage) were in the decreasing Trends. In 20211, the share was 69%, while in the years 2019 and 2020, the share was just 30% and 37%. The Ministry of Power is also putting RPO compliance for Hydro Power to give a boost to the segment.

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RATING FOR STATE POWER DISTRIBUTION UTILITIES Ministry of Power had launched an Integrated Rating Methodology in July 2012 for evaluating the performance of State Power Distribution utilities (Discoms) on a range of parameters covering operational, financial, regulatory, and reform parameters. The rating exercise presently covers 41 state distribution utilities (Discoms) spreading across 22 Indian states. State Power/ Energy Departments and private sector distribution utilities are not covered under this rating exercise. ICRA and CARE are the designated credit rating agencies and have been assigned 21 and 20 utilities respectively, Power Finance Corporation is the co-ordinator for this exercise assigned by the Ministry of Power (MoP). As of now, eight integrated rating exercises have been completed for FY 2012, FY 2013, FY 2014, FY 2015, FY 2016, FY 2017, FY 2018, and FY 2019. The first integrated ratings were released/declared by MoP in March 2013, and the last i.e., eighth integrated ratings were declared by MoP on 9th December 2020. The Ninth Integrated Ratings, covering the rating year FY 2020, have been carried out under the revised integrated rating methodology. The Integrated Rating Methodology is reviewed by MoP from time to time, based on the review, certain modifications providing for the revised benchmark for power purchase cost and incorporation of corporate governance, Interest Coverage Ratio, Total Debt to Net Worth and Extent of Subsidy realization parameters were approved by MOP in May 2021 and July 2021.

GRADING SCALE AND GRADES Score Distribution

Grade

No. of Utilities

Grading Definition

Between 80 and 100

A+

Between 65 and 80

A+

Between 50 and 65

B+

Between 35 and 50

Between 20 and 35

C+

Very High Operational and Financial Performance Capability High Operational and Financial Performance Capability Moderate Operational and Financial Performance Capability Below Average Operational and Financial Performance Capability Low Operational and Financial Performance Capability

Source: PFC India

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The grading scale of ‘A+ to C’ adopted under MOP Integrated Rating Methodology is different from the normal rating scale adopted by Credit Rating Agencies (AAA to D) for credit rating purposes as the credit rating measures the degree of safety regarding timely servicing of financial obligations based on “probability of default”; however, the integrated rating reflects the operational and financial health of the distribution entities based on the rating framework approved by Ministry of Power. Further, normal credit rating assigned by CRAs for distribution utilities entails comparison with other corporates, as compared to the integrated rating exercise wherein comparison of the entity is done with other distribution utilities only stated in the report.

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Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41

UTILITY - WISE RANK & GRADE Name of Utility State Uttar Gujarat Vij Company Limited Gujarat Madhya Gujarat Vij Company Limited Gujarat Dakshin Gujarat Vij Company Limited Gujarat Paschim Gujarat Vij Company Limited Gujarat Dakshin Haryana Bijli Vitran Nigam Limited Haryana Uttar Haryana Bijli Vitran Nigam Limited Haryana Punjab State Power Corporation Limited Punjab Maharashtra State Electricity Distribution Company Ltd Maharashtra Mangalore Electricity Supply Company Limited Karnataka Madhya Pradesh Pash. Kshetra Vidyut Vitaran Co Ltd. Madhya Pradesh Hubli Electricity Supply Company Limited Karnataka Himachal Pradesh State Electricity Board Limited Himachal Pradesh Uttarakhand Power Corporation Limited Uttarakhand Kerala State Electricity Board Limited Kerala Bangalore Electricity Supply Company Limited Karnataka Gulbarga Electricity Supply Company Limited Karnataka West Bengal State Electricity Distribution Company Ltd West Bengal Paschimanchal Vidyut Vitaran Nigam Limited Uttar Pradesh Southern Power Distribution Company of AP Limited Andhra Pradesh Chamundeshwari Electricity Supply Corporation Ltd. Karnataka North Bihar Power Distribution Co. Ltd. Bihar Kanpur Electricity Supply Company Limited Uttar Pradesh Southern Power Distribution Company of Telangana Limited Telangana Madhyanchal Vidyut Vitran Nigam Limited Uttar Pradesh South Bihar Power Distribution Co. Ltd. Bihar Ajmer Vidyut Vitran Nigam Limited Rajasthan Purvanchal Vidyut Vitaran Nigam Limited Uttar Pradesh Madhya Pradesh PoorvKshetra Vidyut Vitaran Co Ltd Madhya Pradesh Dakshinanchal Vidyut Vitran Nigam Limited Uttar Pradesh Chhattisgarh State Power Distribution Company Ltd. Chhattisgarh Madhya Pradesh Madhya Kshetra Vidyut Vitran Co Ltd Madhya Pradesh Assam Power Distribution Company Limited Assam Northern Power Distribution Company of Telangana Limited Telangana Eastern Power Distribution Company of AP Limited Andhra Pradesh Jaipur Vidyut Vitran Nigam Limited Rajasthan Meghalaya Power Distribution Corporation Limited Meghalaya Jharkhand Bijli Vitran Nigam Limited Jharkhand Manipur State Power Distribution Company Limited Manipur Tripura State Electricity Corporation Limited Tripura Tamil Nadu Generation and Distribution Corporation TamilNadu Jodhpur Vidyut Vitran Nigam Limited Rajasthan

Rating Agency ICRA ICRA ICRA ICRA CARE CARE ICRA ICRA ICRA CARE ICRA CARE CARE CARE ICRA ICRA ICRA ICRA CARE ICRA ICRA ICRA CARE ICRA ICRA CARE ICRA CARE ICRA CARE CARE ICRA CARE CARE CARE CARE CARE CARE CARE ICRA CARE

9th IR Grade (FY 2020) A+ A+ A+ A+ A+ A A A B+ B+ B+ B+ B+ B+ B+ B+ B+ B+ B B B B B B C+ C+ C+ C+ C+ C+ C+ C+ C+ C C C C C C C C EQ iSearch

Source: PFC India

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KEY FINDINGS FOR RATING REPORT The average Cost Coverage has improved to 0.87x during the ninth rating exercise as compared to 0.86x in the eighth rating exercise. Nine discoms were the strong performers on cost coverages (>=1.0x), which include Hubli Electricity Supply Company Limited (HESCOM), two Haryana discoms, three Gujarat discoms (UGVCL, MGVCL, and PGVCL), and one discom each of Chhattisgarh, Himachal Pradesh, and Assam. Overall, 16 power distribution entities (out of a total of 41) have shown improvement in their cost coverage ratios. Out of these, 6 discoms have shown improvement of more than 10% in their cost coverage ratio. Cost coverage ratio for 20 discoms remained low due to higher expenses and non-cost reflective tariffs (PY: 23 out of 41 discoms rated). Out of the 22 discoms reporting decline in cost coverage ratio, 4 have shown a decline of more than 10%. Average Aggregate Technical & Commercial (AT&C) loss level of rated discoms has improved to 21.16% in FY 2020 as compared to 21.85% in FY 2019. 20 of the rated power distribution entities have shown an improvement in their AT&C loss levels during FY 2020 (19 in the previous year). Nine utilities have reported AT&C loss levels within 15% as compared to eight utilities in FY 2019. Fifteen utilities have been able to achieve more than 10% reduction in AT&C loss parameters which are Eastern Power Distribution Company of AP Limited (APEPDCL), Uttar Gujarat Vij Company Limited (UGVCL), Southern Power Distribution Company of AP Limited (APSPDCL), Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), Hubli Electricity Supply Company Limited (HESCOM), Mangalore Electricity Company Limited (MESCOM), Gulbarga Electric Supply Company Limited (GESCOM), Paschimanchal Vidyut Vitran Nigam Limited (PaVVNL), West Bengal State Electricity Distribution Company Limited (WBSEDCL), Manipur State Power Distribution Company Limited (MSPDCL), MP Pashchim Kshetra Vidyut Vitaran Company Limited (MPPaKVVCL), MP Poorv Kshetra Vidyut Vitaran Company Limited (MPPoKVVCL), Madhyanchal Vidyut Vitran Nigam Limited (MVVNL), Purvanchal Vidyut Vitran Nigam Limited (PuVVNL), and MP Madhya Kshetra Vidyut Vitran Company Limited (MPMaKVVCL) Eleven discoms including Madhya Gujarat Vij Company Limited (MGVCL), Kerala State Electricity Board Ltd (KSEBL), Punjab State Power Corporation Limited (PSPCL), Telangana State Southern Power Distribution Company (TSSPDCL), Bangalore Electricity Supply Company Limited (BESCOM), Maharashtra State Electricity Distribution Company Limited (MSEDCL), Uttarakhand Power Corporation Limited (UPCL), Assam Power Distribution Company Limited (APDCL), Northern Power Distribution Company of Telangana Ltd (TSNPDCL), Jharkhand Bijli Vitran Nigam Ltd (JBVNL), South Bihar Power Distribution Company Limited (SBPDCL) have shown deterioration of more than 10% in AT&C loss parameter. In terms of Interest Coverage Ratio (ICR), there are twenty-nine utilities that have exhibited positive ICR in FY 2020. All the Gujarat discoms have exhibited ICR of over 5.0x, while there are seven discoms whose ICR is over 2.0x, including Assam Power Distribution Company Limited (APDCL), MP Pashchim Kshetra Vidyut Vitaran Company Limited (MPPaKVVCL), Mangalore Electricity Company Limited (MESCOM), West Bengal State Electricity Distribution Company Limited (WBSEDCL), Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL), Jaipur Vidyut Vitran Nigam Limited (JVVNL), and Bangalore Electricity Supply Company Limited (BESCOM). Sixteen discoms have positive Debt to Net Worth ratio (Debt:Equity), out of which ten have Debt:Equity of less than 2.0x indicating sound support from the state governments. Out of those ten discoms, Gujarat discoms have the minimum Debt:Equity ratio and the other discoms include Bihar discoms, Punjab State Power Corporation Limited (PSPCL), Mangalore Electricity Company Limited (MESCOM), Maharashtra State Electricity Distribution Company Limited (MSEDCL), and Tripura State Electricity Corporation Limited (TSECL). In terms of the regulatory environment, a tariff order for FY 2021 has been issued for thirty-six discoms, while the same has not been issued for five discoms including Rajasthan discoms, WBSEDCL, and TANGEDCO. Tariff petition for FY 2022 has been filed by twentyseven discoms, while fourteen discoms are yet to file the petition including discoms of Telangana, Rajasthan, Uttar Pradesh, MSPDCL, KSEBL, TSECL, and TANGEDCO. In terms of the availability of audited accounts, 35 discoms have submitted audited annual accounts, while six discoms have submitted provisional accounts. Regulatory clarity gradually appearing in the state power sector with SERCs in place across all 22 states covered. Finally, most of the utilities have shown greater cooperation in terms of submission of information and facilitating meetings and discussions.

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EXPERT OPINIONS The price of the domestic manufactured Solar Pv Modules has gone up to ₹20/Wp for Poly and ₹23/Wp for Mono Perc. The domestic manufacturers are deferring their delivery time. The installers are managing with the higher cost of panels. There is no price to quote for the solar Pv modules in the market due to high price volatility. There is a huge pressure from the developers, installers on the domestic module manufacturer. The tariff at which developers quoted a price in the past, their contracts do not support this increase in the panel cost. With the announcement of BCD, many domestic module & Cell manufacturers are expanding or setting up new unit. String inverters business developed more than 55% of India’s total inverter market share in last couple of years. Hybrid inverter is creating more demand due to surge in hybrid projects. In the coming years, the energy storage market is expected to witness an explosive growth. 20% custom duty on Solar inverter forced the suppliers to reduce their margin without reducing the quality.

CONCLUSION AND SUGGESTIONS India has been ranked 3rd in terms of renewable energy potential – with the government setting huge targets for solar and wind power, as well as being a member of the Paris Agreement who committed to reducing greenhouse gas emissions. However, for it to achieve ‘Aatma Nirbhar Bharta’ in terms of solar generation, scaling up its domestic manufacturing capabilities is needed. However, building such a huge capacity is not an overnight journey. China has taken few decades to reach the leader in Solar raw materials supply, and now they are the market driver and mover globally. It is significant to also realize that to maintain its position as the world's top solar power generator, we cannot rely on domestic manufacturing capacity. As per the Ministry of New & Renewable Energy (MNRE) – India’s current manufacturing capacity stands around ~15 GW for solar modules and ~3 GW for solar cells. India currently has an installed solar capacity of over 40 GW and is targeting nearly 300 GW cumulative capacity by 2030. So, relying on domestic manufacturing alone will not be sufficient to meet the huge targets. In CY20, India’s import of solar components worth $850 million. Even in Q1 2021, 80% of India’s solar imports is met by China and any reduction in import is going to impact the yearly target. Currently, the Safeguard Duty on solar cells and modules from China, Vietnam, and Thailand is at 14.50% until July 29, 2021. Beginning of this year, Finance Minister Nirmala Sitharaman’s budget additionally made it clear that BCD of 25% on solar cells and 40% on solar modules will come into effect from 1st April 2022; imposed on imports from across all countries. However, there is still uncertainty looming in the sector such as what will happen to the duty structure from the period between August 2021 and March 2022. The developers and foreign suppliers are expecting a 9-month duty-free window for procurement of modules –before BCD starts. This will help the sector to stabilize again which has been hit by increasing module prices, an increase in freight charges, and a catastrophic pandemic. This will be significant for the developers to finalize PPAs with clients, plan module procurement. Again, there is a push from different stakeholders such as domestic manufacturers for the government to consider protectionist policies– such as the extension of the SGD or imposition of an anti-dumping duty. EQ urges policymakers to consider investment subsidies, interest subventions, PLIs, GST, concessional access to land and electricity, flexible labour policies, etc. as measures to boost domestic manufacturing of solar equipment. Any further extension of SGD on solar imports is a short-term approach that will only result in uncertainty to solar developers. This move will stall the growth in the solar energy sector. The ambitious target of 100 GW of solar power by 2022, will remain as it is. Scaling up domestic manufacturing will have to be a long process and cannot happen within a 2 or 3-year time period. The government should come out with a more supportive policy to make India self-depended on the Solar supply chain and we should focus on building the complete ecosystem as we have a huge target of 100 GW by 2022 and around 300 GW by 2030. With battery storage technology along with hydrogen becoming more efficient, the country also needs to begin thinking long-term about becoming a global hub for the manufacturing of LithiumIon batteries.

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EQ iSearch Intelligence Report on India's Solar Industry June-2021

Articles inside

Investment in Solar Sector

State Wise Solar PV Installation

Annual Growth in Power Generation

Discom Dues to Power Generator

Transmission and Distribution Losses

Funds Allocation by Government in Solar and Wind Power in India

Installed Power Capacity from Different Sources

Solar Rooftop Installation

Imported Solar PV Module Average Selling Price Recent Solar Auction ……………………………………………………………………………………………………………………29