Mercom India Clean Energy Magazine (Dec 2022)

India’s

Market Leaders

Open access solar installations surge

According to the recent report by Mercom India, large-scale solar system costs continue to rise due to new regulations, supply chain constraints, and rising commodity prices

According to Mercom India Research, rooftop solar installations saw a decline due to the increase in system costs and uncertainty around the regulations implemented during the year

Mercom India’s recently released report discloses India’s market players' rankings and market share across the solar supply chain

The CERC announced the state-wise levelized tariffs, along with operation and maintenance and capital costs applicable from July 1, 2020, to March 31, 2023

The online portal aims to help farmers and landowners register and lease their barren and unutilized land for setting up solar projects in the state

According to a recent report from Mercom India, the solar open access installations in the country increased considerably as the demand from corporates and industrial consumers continues to rise

The Ministry of Power, in a recent order waived off the ISTS charges for 18 years for new hydropower projects with PPAs signed by June 2025

Vibrant Energy CEO, Srinivasan Viswanathan, talks about the company’s current operations, outlook, and the Indian renewable market dynamics

Most solar project developers are facing challenges getting compensated for costs incurred for taxation related changes that qualify under ‘Change in Law’ due to the huge delay in the Commission rulings

Swiss scientists have developed dye-sensitized solar cells with a high-power conversion in direct as well as ambient light conditions by controlling the arrangement of dye molecules

Industry experts debate on the impact of CERC’s new regulations which caused dangerous grid frequency fluctuation after being de-linked from deviation settlement mechanism

The parliament approved the new Energy Conservation Act, introducing the provisions for carbon credit trading, green hydrogen and ammonia scaling, and the residential building renewable mandate

It was one of the most eventful year for solar sector with the government pushing domestic manufacturing, green energy open access, rooftop solar and curbing imports

This is a list of major tenders and auctions from November. A comprehensive list can be found on Mercom’s Tender and Auction Tracker and Alerts

As we enter the new year, we are also entering a new era in the Indian solar industry - a move toward domestic manufacturing.

The solar industry in India experienced the most significant change in direction since the National Solar Policy was established with the imposition of BCD and the shutdown of imports. The impact of these policy changes will be transformative as the country starts setting up a domestic supply chain.

Because of ALMM and BCD, a significant amount of solar module manufacturing production capacity has been announced by Indian manufacturers. However, the new year – 2023, will be the first time we will truly see the effects of it. Higher module prices, the quality of domestically produced modules, and the demand-supply gap – will all be factors and will directly determine the pace of growth in the Indian solar market in 2023.

The great bustard issue will continue slowing down installations until a permanent solution is found.

With inflation taking hold in most countries around the world, borrowing costs have increased and could continue increasing in 2023. Tighter borrowing conditions will also mean stricter qualification processes. This could result in slower installations, especially in the residential and C&I segments of the market that depend on loans to fund solar installations. As a result, we may see the leasing model instead of loans become popular again.

On the supply side, lower demand usually means lower prices. We are seeing that trend already, with the Chinese solar modules, cells, wafers, and polysilicon ASPs all declining significantly towards the end of the year. We expect prices to continue declining in 2023, reversing a trend of higher prices caused by the supply bottleneck that started because of the Covid-19 pandemic.

The anti-circumvention policy and tariffs imposed by the U.S. on Chinese imports have opened up the U.S. markets for Indian module manufacturers. As long as the Indian suppliers maintain quality and keep up with the latest technologies, India could start to position itself as an alternate solar supply chain to China. Before we get too far ahead, Indian solar manufacturers need to understand that the investments required for this to happen will be massive. Of course, this will also depend on the U.S. maintaining the current policies. The opportunities are attractive but also fragile, as all it takes is one manufacturer from a country to file a complaint about dumping to shut down imports.

There are significant hurdles in the short term. But, India is a very attractive long-term market backed by a robust pipeline of projects and the government's strong commitment to reaching the goal of adding 500 GW of renewables by 2030.

Raj Prabhu CEO Mercom Capital Group

Editorial Team

Editorial Staff

Satish Shetty Rakesh Ranjan Parashar Utsav Sinha Arjun Joshi

Editor - Research Suriti K. Prasad Joydeep Sinha Roy

Editor – Data R Govind Sales & Marketing Mayukh Baid

Design and Graphics Lead Hariprasad M Madasamy S

Mercom India Private Limited (formerly Mercom Communications India Private Limited)

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Editor - T.P. PRIYADARSHINI

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Average Cost of LargeScale Solar Projects Keeps Rising

According to the recent report by Mercom India, large-scale solar system costs continue to rise due to new regulations, supply chain constraints, and rising commodity prices

By : Arjun Joshi

The average cost of large-scale solar projects in the third quarter (Q3) of the calendar year (CY) 2022 was ₹45.6 million (~$559,866)/MW, a year-overyear (YoY) increase of 8%, according to Mercom’s recently released Q3 2022

India Solar Market Update.

Large-scale solar system costs were up only 0.4% quarter-over-quarter (QoQ) as component costs steadied during the period.

India installed 2.7 GW of solar during the quarter. However, solar capacity

additions were down by 32% QoQ and 6.6% YoY. India’s cumulative installed solar capacity now stands at 60 GW, according to Mercom’s India Solar Project Tracker.

Large-scale solar system costs have now risen nine quarters in a row. The

ASP of Indian mono PERC modules rose 16% YoY, while it surged by 47% YoY for Chinese mono PERC modules. However, on a QoQ basis, the ASP of Indian and Chinese mono PERC modules fell by 6.7% and 2.4%, respectively.

According to a recent report from Asia Europe Clean Energy (Solar) Advisory Company, China housed 530,000 tons of polysilicon, an essential component in solar PV manufacturing, in 2021, which is expected to reach 1.1-1.2 million tons in 2022, 2.2-2.5 million tons in 2023, and 3-4 million tons in 2024. Wafer, cell, and module production capacity are predicted to reach 550-600 GW by the end of 2022.

Anti-dumping duties levied on components such as electro-galvanized steel, fluoro backsheets, textured tempered glass, and EVA encapsulant has added to domestic module manufacturing costs. Additionally, the surge in aluminum, copper, and silver prices have significantly driven module prices. Increasing commodity prices

have also impacted the project’s power evacuation infrastructure cost.

For an in-depth look at the data, analysis, and charts, subscribe to our quarterly market report – Mercom India

Solar Update. In addition, detailed solar import and export data by component types, suppliers, manufacturers, and developers are available in Mercom’s India Solar EXIM Tracker.

Rooftop Solar Capacity in India Crosses 1.2 GW in 9M 2022

According to Mercom India Research, rooftop solar installations saw a decline due to the increase in system costs and uncertainty around the regulations implemented during the year

By : Arjun Joshi

ndia installed over 1.2 GW of rooftop solar capacity in the first nine months (9M) of the calendar year (CY) 2022, a decline of 11% year-over-year (YoY), according to Mercom India Research’s newly released Mercom India Rooftop Solar Market Report Q3 2022.

The capacity additions were adversely impacted by the rise in module prices and uncertainty over the Approved List of Models and Manufacturers (ALMM) extension.

In the third quarter (Q3) of CY22, India installed over 320 MW of rooftop solar capacity, a YoY decline of approximately 29%. On a quarter-over-quarter (QoQ) basis, installed capacity fell by 18%.

Cumulative rooftop solar capacity at the end of Q3 CY22 reached 8.3 GW.

During July-September, Maharashtra added the highest rooftop solar capacity, followed by Kerala and Gujarat.

Gujarat led the cumulative rooftop solar installations with 23%, followed by Maharashtra and Rajasthan, which added 13% and 10%. The top 10 states accounted for about 73% of all rooftop solar capacity added in the quarter.

Madhya Pradesh registered the highest compounded quarterly installation growth with 10% compared to Q3 2021, followed by Punjab and

Rajasthan with 9% and 8%.

“We are seeing rooftop solar installations trending down as costs have risen. The market is struggling with supply issues because of ALMM, and installers are finding it a tough environment to operate in overall,” said Raj Prabhu, CEO of Mercom Capital Group.

During the quarter, 46% of rooftop solar capacity was installed in the industrial sector, followed by residential, commercial, and government sectors, with 32%, 21%, and 1%, respectively.

Over 311 MW of rooftop solar projects were tendered during the quarter, a 46% YoY increase and an 18% QoQ increase. Nearly 33% of the tenders were announced by the Uttar Pradesh New Energy Development Agency, 16% by the Solar Energy Corporation of India, and 51% by other state agencies.

Rooftop system costs have increased by 13% over the past nine months. The report noted that system costs had risen steadily through 2022, with a 6% rise during Q1, and a 2% rise during Q2, followed by a 5% rise during Q3 CY22.

Escalation in commodity prices, basic customs duty imposition, and ALMMapproved module shortage, among others, impacted rooftop solar system costs.

The report showcases industries in the top six industrial states with considerable potential for rooftop solar.

A comprehensive analysis of the net metering policies across all Indian states and Union Territories are also included in the report.

Key Highlights from Mercom India Research’s India Rooftop Solar Market Report Q3 2022:

• In 9M 2022, India added 1,165 MW of rooftop solar, an 11% YoY drop

• In Q3 2022, India added 320 MW of rooftop solar, a decrease of 18% compared to 389 MW in Q2 2022.

Installations declined 29% YoY

• Uncertainty over ALMM extension and module price volatility were critical challenges

• The cumulative installed rooftop solar capacity in India was about 8.3 GW at the end of Q3 2022

• In Q3 2022, the top 10 states accounted for approximately 73% of the cumulative rooftop solar installations

• Maharashtra had the most rooftop solar installations in Q3 2022, followed by Kerala and Gujarat

The Mercom India Rooftop Solar Report Q3 2022 is 54 pages and covers all facets of India’s rooftop solar market. For the complete report, visit our website.

Technology

Perovskite Tandem Solar Cell with 27.4% Efficiency

Researchers have developed an all-perovskite tandem solar cell using different layers to achieve a higher conversion efficiency

By : Gautamee Hazarika

Ateam of researchers from Northwestern University, the University of Toronto, and the University of Toledo claim to have developed an all-perovskite tandem solar cell with a conversion efficiency of 27.4%, which is comparable with traditional silicon solar cells.

Additionally, perovskite tandem solar cells are less expensive to manufacture.

The prototype shows an emerging photovoltaic technology that bypasses the need for silicon and overcomes key limits associated with siliconbased solar cells.

The cell was independently certified at the

National Renewable Energy Laboratory in Colorado, delivering an efficiency of 26.3%. The team used industry-standard methods to measure the stability of the new cell and found that it maintained 86% of its initial efficiency after 500 hours of continuous operation.

Ted Sargent of the University of Toronto said, “Further improvements in the efficiency of solar cells are crucial for the ongoing decarbonization of our economy.” He explained that while silicon solar cells have undergone impressive advances, there are inherent limitations to their efficiency and cost arising from material properties. Perovskite technology can overcome these limitations.

Silicon versus Perovskite Solar Cells

Traditional solar cells are made from high-purity silicon wafers, which are energetically costly. In contrast, perovskite solar cells are built from nano-sized crystals that can be dispersed into a liquid and spincoated onto a surface using low-cost techniques.

The team used two different layers of perovskite, each tuned to a different part of the solar spectrum, to produce a tandem solar cell.

“In our cell, the top perovskite layer has a wider band gap, which absorbs well in the

ultraviolet part of the spectrum, as well as some visible light,” says Chongwen Li, a postdoctoral researcher in Sargent’s lab.

“The bottom layer has a narrow band gap, which is tuned more toward the infrared part of the spectrum. Between the two, we cover more of the spectrum than would be possible with silicon,” Li added.

The key innovation came when the team analyzed the interface between the perovskite layer, where light is absorbed and transformed into electrons, and the adjacent layer, known as the electron transport layer.

Co-lead author Aidan Maxwell said that the ability of perovskite technology to hold its own against silicon is encouraging. “In the last ten years, perovskite technology has come almost as far as silicon has in the last 40,” he added.

Addressing Challenges

Maxwell said that the electric field across the surface of the perovskite layer was not uniform. The team coated the surface of the perovskite layer with a substance known as 1,3-propane diammonium (PDA), which resulted in improvement.

“PDA has a positive charge, and it is able to even out the surface potential,” says postdoctoral fellow Hao Chen, another of the co-lead authors.

“When we added the coating, we got much better energetic alignment of the perovskite layer with the electron transport layer, and that led to a big improvement in our overall efficiency,” Hoa Chen added.

The researchers will now focus on enhancing efficiency by increasing the current that runs through the cell and improving its stability. The aim is to enlarge the area of the cell so that it can be scaled up to commercial proportions.

India’s Solar Market Leaders

Mercom India’s recently released report discloses India’s market players' rankings and market share across the solar supply chain

By : Arjun Joshi

ercom India has released its report, India Solar Market Leaderboard 1H 2022, unveiling solar market leaders in the first half (1H) of the calendar year (CY) 2022.

The report covers market share and shipment rankings across the Indian solar supply chain.

India added approximately 7.2 GW of solar projects during 1H 2022, a 59% year-over-year increase.

Top Utility-scale Developers

In 1H 2022, Avaada Energy was the largest utility-scale developer in terms of installations, according to India Solar

Market Leaderboard 1H 2022. Avaada accounted for 15% of the total market share. It has one of the largest portfolios of solar power projects aggregating over 1 GW.

Avaada raised green bonds worth ₹14.4 billion (~$192 million) at 6.75% in the Indian capital market. It commissioned around 954 MW of utilityscale solar power projects in 1H. The company’s cumulative installed capacity as of June 2022 stood at 1.8 GW.

Tata Power Renewables was second on the list accounting for 10% of the total market share in 1H 2022.

Azure Power, with an 8% market share, was the third-largest utility-

Markets

scale developer during the period. The company has over 7.5 GW of a panIndia portfolio, including operational and pipeline projects.

NTPC Renewable Energy and Adani Green Energy rounded off the top five in the list.

In 1H 2022, the top ten developers accounted for 67% of the total utility-

solar installations. The total utility-

installations stood at 6.4 GW.

In terms of cumulative installed capacity, Adani Green Energy led the way with 5.8 GW of installations, followed by ReNew Power with 3.5 GW and Azure Power with 2.9 GW. The top three players accounted for 33% of cumulative installed capacity.

Top Rooftop Solar Companies in 1H 2022

Tata Power Solar, Amplus Solar, Fourth Partner Energy, Roofsol Energy, and Havells India were the top solar rooftop companies in India in 1H 2022.

The top three companies accounted for 40% of the market share in 1H 2022.

India installed over 845 MW of rooftop solar capacity in 1H 2022, a 2% decrease compared to the same period last year.

Top EPC Companies in 1H 2022

Tata Power Solar, Jakson Green, Voltas, Addwatt Power Solutions, and BHEL were the top utility-scale solar engineering, procurement, and construction (EPC) service providers in 1H 2022.

The top 10 utility-scale solar EPC service providers accounted for almost 77% of the total market share.

Tata Power Solar topped with a market share of 24%, followed by Jakson Solar and Voltas with 10% and 9%, respectively.

Top Module Suppliers in 1H 2022

Jinko Solar, Trina Solar, JA Solar, LONGi Solar, and Adani Solar were the leading module suppliers to the Indian solar market in 1H 2022.

The top five module suppliers accounted for 52% of the market share.

Besides Adani Solar, two other Indian module manufacturers made it to the top 10 module suppliers list.

Top Robotic Module Cleaning System Suppliers in 1H 2022

Airtouch, Solabot Technologies, SolBright Photovoltaic Technology, Aegeus Technologies, and Skilancer Solar were the top robotic solar module cleaning system suppliers in India in 1H 2022

The top three companies accounted for 62% of the market share in 1H 2022.

Top Solar Inverter Suppliers 1H 2022

Sungrow, Sineng Electric, FIMER India, Ginlong (Solis) Technologies, and SOFARSOLAR were the leading solar inverter suppliers in India in 1H 2022.

Sungrow was the top solar inverter supplier in 1H 2022 and is also the leading solar inverter company cumulatively.

Sungrow, Sineng Electric, and FIMER India accounted for 68% of the market share in 1H 2022.

String inverter

Sungrow, Solis, SOFARSOLAR, Growatt, and GoodWe were the top solar string inverter suppliers, accounting for 94% of the market share.

Central inverter

Sineng Electric, Sungrow, FIMER India, and TMEIC were the top solar central inverter suppliers. Central inverters represented the majority of solar inverters supplied during the period.

The report noted significant changes in the market share categories compared to last year. Several new companies made it to the top ten for the first time, reflecting a dynamic solar market with significant market opportunities.

India to Boost Green Energy Use in Major Ports to 60%

The government has launched an initiative to source clean energy for major ports as a move towards meeting its carbon neutrality commitment for 2070

By : Gautamee Hazarika

The newly launched National Center of Excellence for Green Port and Shipping (NCoEGPS) will help vital ports in the country source as much as 60% of their energy demand from renewable sources (solar and wind). Currently, less than 10% of the total energy demand for major ports is met by green energy.

Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, launched NCoEGPS to boost the use of green solutions to transform ports and shipping.

The launch comes in the wake of all industrial sectors moving towards carbon neutrality and implementing circular economy measures ahead of the government’s commitment for 2070.

Indian ports aim to reduce carbon emissions by 30% by 2030 for per ton of cargo handled. India is already supplying shore power to ships with a power demand of less than 150 kW at present and targeting to supply shore power to all visiting vessels.

The main objective of NCoEGPS, which will work under the “Sagarmala Program,” is to support the Ministry of Ports, Shipping, and Waterways in

developing and maintaining a policy and regulatory framework for a green alternative technologies roadmap for the shipping sector in India.

The work undertaken is also expected to provide the decisionmakers at the national and sub-national level with methodology and framework to meet obligations under the Paris Accord through electrification of processes, renewable energy, carbon capture and storage, and other emerging alternative fuel technologies, including green fuels.

It is also expected to carry out valuable education, applied for research and technology transfer in maritime transportation at the local, regional, national, and international levels. The focus areas include energy management tools, waste energy recovery systems, and emission management.

The Energy and Resources Institute (TERI) is the project’s knowledge and implementation partner. The Deendayal Port Authority Kandla, Paradip Port Authority, Paradip, V.O Chidambaranar Port Authority, Thoothukudi, and Cochin Shipyard Limited, Kochi, have all extended their support to the ministry to set up this center.

New Generic Tariffs for Small Hydro, Biomass, and Biogas Projects

The CERC announced the state-wise levelized tariffs, along with operation and maintenance and capital costs applicable from July 1, 2020, to March 31, 2023

By : Arjun Joshi

The Central Electricity Regulatory Commission (CERC) has issued levelized generic tariffs for renewables for the financial year (FY) 2022-23.

The control period of the tariff will be from July 1, 2020, to March 31, 2023.

The project-specific tariff will apply to small hydro projects, biomass power projects with rankine cycle technology;

non-fossil fuel-based cogeneration projects; biomass gasifier-based power projects; and biogas-based power projects.

The tariff structure consists of

return on equity, interest on loan capital, depreciation, interest on working capital, and operation and maintenance expenses. For renewable energy technologies having fuel cost components like biomass power projects with rankine cycle technology, nonfossil fuel-based cogeneration, biomass gasifier-based power projects, and biogas-based power projects, single part tariff with two components (fixed cost and fuel cost), have been proposed.

A useful life period of 25 years will apply to all these projects except for small hydro projects whose useful life has been set at 40 years.

The Commission approved a debtequity ratio of 70:30 and a rate of return of 16.96% for the first 20 years and 21.52% after 20 years.

The depreciation rate for the first 15 years was set at 4.67%. The rate of depreciation from the 16th year would be spread over the remaining useful life

of the renewable energy project.

For small hydro projects, the rate of depreciation from the 16th year will be 0.80%, and 2% for biomass projects, non-fossil fuel cogeneration projects, biomass gasifiers, and biogas-based projects.

Operation and Maintenance Expenses

The operation and maintenance (O&M) expenses for FY 2022-23 will be 3.84%.

The O&M expenses for biomass power projects with rankine cycle technology for the first year of the control period will be ₹4.64 million (~$56,780)/MW, and for non-fossil fuel cogeneration, it will be ₹2.45 million (~$29,981)/MW.

The O&M expenses would be ₹6.13 million (~$75,029)/MW for biomass gasifier-based power projects and biogas projects.

For hydropower projects below 5

MW in Himachal Pradesh, Uttarakhand, West Bengal, the union territory of Jammu and Kashmir, the union territory of Ladakh, and northeastern states, the O&M expenses have been determined at ₹4.5 million (~$55,081)/MW. For projects in the range of 5 MW and 25 MW, they would be ₹3.38 million (~$41,372)/MW.

For other states, the O&M cost for projects below 5 MW would be ₹3.63 million (~$44,432)/MW. For projects ranging from 5 MW to 25 MW, the O&M cost is set at ₹2.63 million (~$32,192)/MW.

Capital Cost

For hydropower projects up to 25 MW in Himachal Pradesh, Uttarakhand, West Bengal, the union territories of Jammu and Kashmir and Ladakh, and northeastern states, the net capital cost is ₹110 million (~$1.34 million)/MW.

For other states, the net capital cost for projects below 5 MW is ₹78 million (~$954,747)/MW, and for projects in the

Andhra Pradesh 2.66 0.03 5.09 0.06 7.75 0.09 0.08 0.001 7.67 0.094 Haryana 2.71 0.03 5.80 0.07 8.51 0.10 0.08 0.001 8.43 0.103 Maharashtra 2.72 0.03 5.93 0.07 8.65 0.11 0.08 0.001 8.57 0.105 Punjub 2.73 0.03 6.06 0.07 8.80 0.11 0.08 0.001 8.71 0.106 Rajasthan 6.65 0.08 5.06 0.06 7.72 0.09 0.08 0.001 7.63 0.093

Tamil Nadu 2.65 0.03 5.01 0.06 7.66 0.09 0.08 0.001 7.58 0.092

Telangana 2.66 0.03 5.09 0.06 7.75 0.09 0.08 0.001 7.67 0.094

Uttar Pradesh 2.67 0.03 5.18 0.06 7.85 0.10 0.08 0.001 7.76 0.095

Others 2.69 0.03 5.45 0.07 8.13 0.10 0.08 0.001 8.05 0.098

Biogas-based generation

Biogas 3.40 0.04 5.34 0.07 8.75 0.11 0.16 0.002 8.59 0.105

Source: CERC Mercom India Research

Andhra Pradesh 2.98 0.04 3.62 0.04 6.60 0.08 0.16 0.002 6.43 0.079

Haryana 2.69 0.03 5.15 0.06 7.84 0.10 0.14 0.002 7.70 0.094

Maharashtra 2.41 0.03 5.07 0.06 7.49 0.09 0.12 0.001 7.36 0.090

Punjab 2.64 0.03 4.53 0.06 7.17 0.09 0.14 0.002 7.03 0.086

Tamil Nadu 2.32 0.03 3.90 0.05 6.22 0.08 0.12 0.001 6.10 0.075

Telangana 2.57 0.03 3.62 0.04 6.19 0.08 0.14 0.002 6.05 0.074

Uttar Pradesh 3.01 0.04 4.04 0.05 7.05 0.09 0.16 0.002 6.88 0.084

Others 2.63 0.03 4.38 0.05 7.01 0.09 0.14 0.002 6.87 0.084

range of 5 MW to 25 MW, the net capital cost is ₹90 million (~$1.1 million)/MW.

For small hydro projects in Himachal Pradesh, Uttarakhand, West Bengal, the union territories of Jammu and Kashmir and Ladakh, and the northeastern states, the capacity utilization factor (CUF) is 45%. For other states, the CUF is 30%.

Levelized Tariff

The levelized tariff for small hydro projects below 5 MW in Himachal Pradesh, Uttarakhand, West Bengal, Northeastern States, and Union Territories of Jammu and Kashmir & Ladakh for FY23 is ₹5.23 (~$0.06)/kWh. The tariff in other states

is ₹5.84 (~$0.07)/kWh.

The levelized tariff for small hydro projects from 5 MW to 25 MW in Himachal Pradesh, Uttarakhand, West Bengal, Northeastern States, and Union Territories of Jammu and Kashmir & Ladakh for FY23 is ₹4.76 (~$0.06)/kWh. The tariff in other states is ₹5.76 (~$0.07)/ kWh.

The levelized tariff for bagasse-based cogeneration projects ranges from ₹6.05 (~$0.074)/kWh in Telangana to ₹7.70 (~$0.094)/kWh in Haryana.

The levelized tariff for biomass gasifier projects ranges from ₹7.58 (~$0.092)/kWh in Tamil Nadu to ₹8.71 (~$0.106)/kWh in Punjab. The levelized tariff for biogas-based projects is ₹8.59 (~$0.105)/kWh.

Recently, the Madhya Pradesh Electricity Regulatory Commission approved a tariff of ₹5.07 (0.063)/kWh for distribution companies (DISCOMs) to procure power generated from biomassbased projects in Madhya Pradesh.

Subscribe to Mercom’s real-time regulatory updates to ensure you don’t miss any critical updates from the renewable industry.

Source: CERC Mercom India Research

Rajasthan Digitalizes Land Lease for Solar Projects

The online portal aims to help farmers and landowners register and lease their barren and unutilized land for setting up solar projects in the state

By : Arjun Joshi

ajasthan has formulated Saur Krishi Ajivika Yojna (SKAY) under Component C of the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM) to promote decentralized solar projects development at load centers having predominantly agriculture consumption in rural areas.

SKAY intends to utilize the state’s abundant land resources by allowing farmers and landowners to lease out their barren or unutilized land on a predetermined lease basis for setting up solar projects.

The state’s distribution companies (DISCOMs) have developed a dedicated online portal where farmers can register their land to be leased out for solar projects. Project developers can also register themselves on the portal to reach out to the registered farmers.

The portal will act as a facilitator where interested farmers and developers can collaborate to arrange land for a solar power plant on a renewable energy service company (RESCO) mode, preferably within a 5 km radius of identified 33/11 kV substations.

DISCOMs have identified 33/11 kV substations having primarily agriculture consumers on their 11 kV feeders and assessed the substation-wise solar capacity to be installed in the vicinity of the substation. The list of identified substations with capacities and other important information will be available on the portal.

Interested parties can apply to register their land on the portal. The field office will verify the applications, along with a joint survey of the land and other credentials submitted with the

application. Once a broad connectivity diagram from the land to the substation is prepared, the DISCOMs will float tenders to select RESCO developers for setting up solar projects.

If selected, developers would be eligible for central financial assistance (CFA) from the Ministry of New and Renewable Energy (MNRE). DISCOMs will procure the power at the discovered levelized tariff for 25 years.

Developers must pay the agreed lease rent amount to the landowner during the project installation and commissioning phase, i.e., 9 months from the award of the contract.

DISCOMs will pay the applicable land lease rent directly to the landowner. They will recover the same from the monthly energy payables to the developer after the commissioning of the solar project.

Open Access Solar Installations Soar

According to a recent report from Mercom India, the solar open access installations in the country increased considerably as the demand from corporates and industrial consumers continues to rise

By : Arjun Joshi

ndia installed around 1.9 GW of open access solar capacity in the first nine months (9M) of the calendar year (CY) 2022, an increase of 96% year-overyear (YoY), according to Mercom India Research’s newly released Mercom India

Solar Open Access Market Report Q3 2022.

Installations in 9M surpassed the annual capacity additions over the past years.

In Q2 and Q3, open access project developers focused on the early

commissioning of contracted project capacities due to uncertainty around the mandatory use and availability of the modules enlisted in the ‘Approved List of Models and Manufacturers’ (ALMM).

The first quarter saw a significant increase in capacity addition as

developers focused on avoiding the project cost increase due to the imposition of basic customs duty (BCD) on imported solar modules and cells.

Expansion in solar projects during 9M resulted from high electricity tariffs, timely approvals by distribution companies (DISCOMs), and a favorable regulatory framework for open access in Karnataka, Maharashtra, and Tamil Nadu.

In the third quarter (Q3) of CY22, India added 596 MW of solar open access capacity, a YoY increase of 91%. However, installed capacity fell by 12.5% quarter-over-quarter.

The total installed solar capacity in the open access segment at the end of Q3 CY22 was over 7 GW. The pipeline of projects under development and preconstruction phase is over 5 GW. The top five states contributed over 83% of all open access installations in Q3 2022.

During the period, Karnataka led the installations, with an addition of 198 MW, accounting for over 33% of total capacity.

The top five states accounted for over 74% of the country’s cumulative open access solar installations. Karnataka

remained the top state even here, with a total solar open access capacity of approximately 2.7 GW, accounting

for almost 38% of the country’s installations. Maharashtra came in second with 801 MW, making up around 11% of the total capacity.

Andhra Pradesh led the Green Day Ahead Market (G-DAM) in terms of power sold through the exchange, with 359 MU accounting for nearly 33.5% of the market.

Punjab was the leading energy procurer from the G-DAM with 309 MU, followed by Maharashtra with 124 MU, representing 28.8% and 11.6% of the total power purchased.

“The demand by corporates for solar under the open access route has

been phenomenal. The growth would have been steeper if not for the supply constraints and price increase. The pipeline of projects to be commissioned is impressive and bigger than ever. While the demand has mostly been from large corporates, there is a huge untapped market of SMEs and MSMEs due to lack of awareness,” commented Priya Sanjay, Managing Director at Mercom India.

The report offers a detailed analysis of the solar open access business. Tamil Nadu, Uttar Pradesh, Rajasthan, and Kerala released tariff orders for FY23. The report comprehensively covers open access-related charges and retail

supply tariffs for these states and their market size.

The average power purchase agreement (PPA) prices, net landed costs, open access policies, and regulations released in Q3 2022 are featured in the report.

The report also highlights the views of the top open access installers across the country during the quarter.

Key Highlights from Mercom India Research’s India Solar Open Access Market Report Q3 2022:

• In 9M 2022, India added around 1.9 GW of open access solar, a YoY increase of approximately 96%

• In Q3 2022, 596 MW of open access solar were added in India, down 12.5% QoQ and 91% increase YoY

• Karnataka was the leading state, with 198 MW added in Q3 2022

• As of September 2022, the total installed solar capacity in the open access segment was over 7 GW.

• The pipeline of solar open access projects is over 5 GW.

Mercom India Solar Open Access Market Report Q3 2022 report is 72 pages and covers vital market data. For the complete report, visit our website.

15 Offshore Wind Zones Identified in India

By : Arjun Joshi

A joint study by India and Denmark has listed fifteen zones with a potential for developing offshore wind projects and outlined steps to achieve India’s offshore wind target

Danish-Indian collaborative study, which aims to support India’s 30 GW offshore wind target by 2030, has identified fifteen zones for the first offshore wind development project.

The study was released by the Centre of Excellence for Offshore Wind and Renewable Energy, a joint initiative between the Danish Energy Agency and the Indian Ministry of New and Renewable Energy (MNRE).

“The joint projects on maritime spatial planning and port infrastructure have provided significant inputs for the draft tender document that is currently under stakeholder consultation as well as the upcoming tenders for offshore wind in India. The Danish approach and experience have been very helpful to advance this and has brought great value to take us forward and reach 30 GW by 2030,” said Dinesh Jagdale, Joint Secretary, MNRE.

The projects identified in the study provide significant input to the ongoing

stakeholder consultation on the draft tender document issued by MNRE for the first offshore wind parks in India.

A dedicated port infrastructure study identifies a set of ports off the Tamil Nadu and Gujarat coasts that fulfill basic navigation and access criteria to support the installation of wind turbines and foundations. However, these ports require significant upgrades in key infrastructure, such as quaysides and yards, which are necessary to marshal wind turbine components.

Tamil Nadu

The study found that the zones identified in Tamil Nadu is amongst the best available areas in the country, having excellent wind conditions ranging from 7 m/s to slightly above 10.5 m/s at 150 m hub height. The depth to the seabed ranges from 10m to 65 m, which is suitable for deploying fixed foundation offshore wind turbines.

All the areas within the shortlisted sites in the states are far from the

identified environmental exclusion zones.

Gujarat

The wind conditions in the identified zones in Gujarat have an average wind speed of less than 7 m/s at 150m height. The water depth ranges from 11m to 50m and is considered suitable for the installation of fixed-foundation wind turbines.

A small portion of the shortlisted site in the state is close to identified environmental exclusion zones.

The entire coastline of Gujarat and the Gulf of Kutch are considered highly productive for fishing. Further studies, including stakeholder consultations, are required to fully understand the conflict, which would be further evaluated during fine screening.

Oil and gas pipelines cross the areas as they lie in the proximity of oil fields. Therefore, further liaison with relevant stakeholders is critical to confirm this assessment and understand the potential constraints.

Uttar Pradesh’s Green Hydrogen Policy

In the proposed Green Hydrogen Policy, the state outlines numerous manufacturing incentives, promotion of skill development and reducing the cost of production

By : Arjun Joshi

The Uttar Pradesh Draft Green Hydrogen Policy 2022 aims to cut hydrogen costs to $2/kg in the next five years and whittle it further to $1/kg

in the long term.

Additionally, the state aims to achieve 20% green hydrogen blending in total hydrogen consumption by 2028 for existing fertilizer and refinery units

and ramp it up further to 100% green hydrogen by 2035.

The draft policy proposes a capital expenditure subsidy of 60% of the electrolyzer cost in 2024. The minimum

capacity to avail of the subsidy must be above 50 MW. The monetary incentive from the state government will be brought down to 20% by 2027.

The cost of green hydrogen is the major constraint in its adoption. Green hydrogen costs in the state stand at $2.8/kg to $7/kg.

The policy argues the need to encourage innovation to reduce costs over time. The current hydrogen demand in the state stands at around 0.9 million tons per annum, which is primarily used in the production of nitrogenous fertilizers.

Through a focused approach to chemicals, fertilizers, and the refineries sectors, the policy aims to start the state’s journey toward becoming a green hydrogen economy.

These sectors contribute nearly 55% of the state’s industrial emissions. Promoting green hydrogen will help

address a substantial amount of states’ emissions.

The policy will be in force for five years.

A state-level committee will be formed under the chairmanship of the additional chief secretary or principal secretary of the Department of Additional Sources of Energy to carry out all the activities, including monitoring and evaluating the policy.

Incentives

An additional subsidy of ₹3500 (~$42) per ton of urea will be applicable for every ton of green urea produced in the state beyond the 10% blending share in total production.

The policy further proposes a 30% one-time grant support for technology acquisition subject to a maximum of ₹50 million (~$612,103) for research and development centers and industries.

Green hydrogen and ammonia projects will be exempted from paying land tax, land use conversion charges, stamp duty, and industrial water consumption charges if the water is consumed to produce green hydrogen.

Electricity supplied to produce green hydrogen and ammonia will only attract 50% of wheeling and intra-state transmission charges. There will be no cross-subsidy surcharge or distribution charges.

The policy supports establishing a center of excellence with different academic and research institutions and industries to facilitate the development of a sustainable green hydrogen/ ammonia ecosystem.

The center will also promote a skill development program to build the state’s capacity and train a workforce ready for the green hydrogen and ammonia transition.

Module Makers Add EPC Services to Stay Competitive

By : Rakesh Ranjan Parashar

Smaller solar module manufacturers are adding engineering, procurement, and construction (EPC) services to their offerings as it creates a market for their own products.

Unlike large utility-scale developers who also manufacture, these smaller manufacturers are usually behind the curve in module technology, as upgrades are capital-intensive. They typically manufacture modules with an output of under 440 watts.

Utility-scale developers use modules of higher efficiency and wattage, but government and residential projects still provide a market for these smaller firms.

According to Mercom India Research, about 40 such companies, each with a module manufacturing capacity of 100500 MW, have taken up EPC contracts for predominantly government projects or residential installations.

Developing smaller projects of up to 15 MW capacity provides them with a market for their modules. The profitability from executing these products by leveraging in-house modules allows these companies to survive and generate capital for

technological upgrades to their manufacturing lines.

This trend is more prominent in Gujarat, which has issued most of the nationwide residential tenders.

According to Mercom’s Q2 2022 India Solar Market Update, domestic manufacturing capacity and corresponding demand are heavily mismatched.

An industry expert explained that a manufacturer could supply modules to a developer at, say, ₹28 (~$0.34)/W and earn about ₹3 (~$0.036)/W profit. But the company can price the module slightly lower for a government tender and secure an EPC contract, which would ensure profits on modules coupled with earnings from the EPC business.

Gautam Mohanka, MD of Gautam Solar, said, “The EPC business means a guaranteed offtake of solar panels. As solar panel manufacturers are scaling their capacity, it helps to install more capacity faster and recover their capital costs quickly as a part of their capacity is booked for their own business.”

He added that the trend was a sign of Indian solar manufacturers becoming self-reliant and focusing on indigenous

To leverage use of modules made in-house, smaller module manufacturers are taking up EPC contracts for government and residential solar projects

EPC capabilities to construct a robust solar infrastructure in the country.

The vertically integrated conglomerates like Tata and Adani, apart from big manufacturers like Waaree and Vikram Solar (with a manufacturing capacity of 5 GW and 2.5 GW, respectively), have always had integrated manufacturing and EPC businesses due to apparent synergies. The smaller manufacturers have also found a sweet spot in aligning their existing plants with the EPC business.

“Solar manufacturers have been in the EPC business for a long time but on a smaller scale. If you are also in the EPC business and get an order for 10-15 MW projects, you can use your own

Manufacturing with EPC may not be sustainable

But not everyone in the industry is convinced that combining module manufacturing and EPC by smaller companies can benefit the business in the long term.

“The product players are becoming specialists, and the EPC business is also becoming an expert job. So today you must build large capacities to gain the experience, which is impossible for smaller module manufacturing companies,” Dhruv Sharma, CEO of Jupiter Solar and President of the Indian

the smaller manufacturing companies would soon realize that the domestic demand is going to surge and the manufacturing business by itself would be lucrative enough to demand complete attention.

shifts in businesses and policies, and the stakeholders are trying innovative ways to remain in business and thrive.

is a short-term fix for smaller manufacturers. Unless they upgrade their technologies, which are becoming obsolete, and scale their manufacturing capacities, these companies could face very challenging times ahead.

modules,” Avinash Hiranandani, Global CEO and MD of RenewSys said.

DhaSh-TRIO Junction Box features with cutting-edge technology for Multi-busbar (MBB) PV Modules, both mono facial as well as bifacial.

Incentive for New Hydropower Projects

By : Gourav Mishra

The Ministry of Power has issued an order waiving the Inter-State Transmission System (ISTS) charges on evacuating electricity from new hydropower projects in the country.

To bring parity among solar, wind, and hydropower generation, the ministry has provided the same concession to the latter as is already available to the other two renewable sources.

It would be available to hydropower projects for which construction work is awarded and power purchase agreements (PPAs) are signed by June 30, 2025.

The waivers will be available for 18 years from the date of commissioning

of the hydropower plants and apply to ISTS charges only, and not losses.

However, the exemption would be tapered progressively for projects that are commissioned later than the deadline.

The ministry said 25% of the ISTS charges would be applicable for the hydropower projects for which construction work is awarded and PPA is signed between July 1, 2025, and June 30, 2026.

It would be 50% for projects commissioned between July 1, 2026, and June 30, 2027, and 75% of the charges will apply to projects commissioned between July 1, 2027, and June 30, 2028.

The concession will cease for projects

commissioned from July 1, 2028.

The ministry said India had set an ambitious target of 500 GW of generation capacity from non-fossil energy-based sources by 2030. Being clean, green, and sustainable, hydropower projects will be paramount in the country’s clean energy transition.

The ministry added that hydropower projects were also essential for integrating solar and wind power, which are intermittent in nature.

The ministry, in November 2021, announced that ISTS charges would be levied on renewable energy projects, including solar, wind, and pumped hydro storage, and projects with battery energy storage systems commissioned after June 30, 2025.

Vibrant Energy Plans Green Hydrogen Foray as it Expands its C&I Footprint

Vibrant Energy CEO, Srinivasan Viswanathan, talks about the company’s current operations, outlook, and the Indian renewable market dynamics

n an exclusive interview with Mercom India, Srinivasan Viswanathan, CEO of Vibrant Energy, talks about the company’s contribution to the growing renewable energy transition in the nation’s Commercial and Industrial (C&I) segment, recent developments, key trends, and the company’s plan to pivot towards a green hydrogen ecosystem.

Vibrant Energy operates a renewable energy portfolio of 132 MW, with an active development pipeline of ~3 GW. The company has, over the years, played an active role in helping C&I consumers transition to renewable energy to save on costs and earn green attributes in the process.

Could you give us an overview of Vibrant Energy’s business?

Vibrant Energy’s business is exclusively focused on corporate renewables; our vision and mission have always been to play a key role in mitigating climate change.

One of the main areas to decarbonize is the C&I sector, with a combination

of clean energy and clean fuels as an extension of that. We work with corporates across India to support them in their decarbonization agenda.

We primarily work on three business strategies, one where we have a significant development pipeline built at the state level delivering intra-state open access strategies for our clients.

Our second business model includes an inter-state transmission system (ISTS) to deliver round-the-clock renewables through wind-solar hybrid projects to our clients with pan-India operations.

The last strategy is innovating business models around green energy attributes that we can also deliver through our large ISTS pipeline.

What is the adoption rate for renewable energy amongst C&I consumers in India?

We have to divide the answer to this question into two parts: the demand and supply sides. In terms of the demand, if we were to consider our non-fossil fuel goal of 500 GW by 2030, it translates to 45-50 GW a year of renewable energy

capacity to be brought online. We cannot expect the market to execute only government tenders for the entire 50 GW.

Some of the beneficial reforms by the government have laid down a clear roadmap to assist in setting up this capacity through the C&I segment. Every corporate, big, or small, is looking for strategies and solutions to meet their net-zero commitments in India and globally.

In terms of supply, India, a vibrant democracy, witnesses constant stakeholder consultation and pushback to the government as and when required. The industry has always come together to challenge the supply issues out there and meet the rising demands of the corporates.

Could you tell us about your recent partnership with Amazon?

Amazon has a large decarbonization agenda, and in India, they have been partnering to build new capacities to extend their renewable energy penetration. We will be one of the first

companies to work with them on a large hybrid project, as the previously announced ones are pure solar. We will focus on a complete wind-solar hybrid, and in terms of capacity, it is one of the biggest C&I hybrid PPA (power purchase agreement) in the corporate space at 300 MWac, and around 476 MWdc spread across two locations.

What could the government do to contribute in terms of a policy push?

One of the things all of us developers agree needs regulating is the Deviation Settlement Mechanism (DSM), which is currently a very narrow band. During extreme weather conditions, we can register significant losses in the project due to the very strict DSM band, which is required at the state load despatch center (SLDC).

The strategy should be to very quickly build a large ancillary market

that is yet to pick up. The whole storage system must become a mechanism for an ancillary market that is pan-India. It doesn’t matter who it is, it could be behind-the-meter for a customer or an SLDC, and that is the liberalization that we hope to achieve and help resolve the DSM issue.

Of course, this is a long-term solution, but in the short term, we, as stakeholders, must work together and let the regulators know.

What direction is Vibrant Energy headed in the upcoming years?

We will be reaching close to 5 GW of assets under management capacity in the next three years, and at some point, we are looking to pivot our business from just delivering clean energy to delivering clean fuels.

We are actively exploring opportunities to deliver green hydrogen

and green ammonia to our clients. The interesting part is that almost 75% of the cost of green hydrogen is power, which we offer, providing us the advantage of delivering green hydrogen at competitive rates.

It also works as a natural extension for many of our customers who are potentially buying massive amounts of green energy from us to simply allocate some of it to run an electrolyzer to generate green hydrogen, which becomes an input fuel for their processes.

India imports almost all its crude, and if we can pivot a lot of our industrial use of hydrogen to green hydrogen and, at some point in the future even pivot our large truck transportation mechanism to hydrogen, we can save a significant amount of foreign exchange for the economy and that will be a huge accretive scenario for the country.

The Struggle for Compensations Under Change in Law

Most solar project developers are facing challenges getting compensated for costs incurred for taxation related changes that qualify under ‘Change in Law’ due to the huge delay in the Commission rulings

By : Sumit Jha

he solar energy capacity addition in the country has grown by over 23 times since 2014, a meteoric rise that tends to cover the regulatory uncertainty prevailing in the sector. The success story is despite a system that prevents developers from availing reimbursement/compensation on time and in full for the additional cost incurred due to changes in the taxation policies.

In the last few years, several taxation-related changes have qualified under Change-in-law (CIL), including safeguard duty on modules, Goods and Services Tax (GST) rate hike, and the most recent event of Basic Customs Duty (BCD). Under the CIL provisions in power purchase agreements (PPA) s, a developer is entitled to recover the additional capital cost borne due to the government’s policy changes between the bidding and project commissioning.

The safeguard duty was imposed on modules for the first time in 2018, but industry sources say that most developers are still awaiting reimbursements in full. In many cases, the litigations are continuing.

The story has been repeated in the case of the GST hike. Developers feel they are resigned to their fate when seeking compensation for the 40% BCD imposition on modules.

While the process seems straightforward, as tax changes usually qualify as CIL events in the PPAs, the process of reimbursements from state-owned distribution companies (DISCOMs) is rarely simple.

“The PPA clause often mentions that regulators should declare all these (tax rate changes) as ‘change in law’ events. However, unless the regulatory body approves and passes an order for an increase in the determined auctioned tariff, the developers can’t expect the DISCOMs to act,” a developer said.

A quagmire for developers

A CIL petition filed with a state regulatory body (SERC), a quasi-judicial body, could easily take at least 18 months before a final order is passed. But often, the time taken is much higher.

“The merit of the petition doesn’t matter to DISCOMs. Their objective is

to ensure the order is delayed as much as possible. They achieve this by filing baseless submissions and rejoinders,” another developer said.

Even after an order is delivered, many DISCOMs go back and seek a review by the Commission. Further, they challenge it in the tribunal to buy more time.

Usually, the CIL orders give DISCOMs a few options to compensate the developers. The DISCOMs are either asked to pay a lump sum or convert the compensation into an annuity at a specific interest rate.

compensation to the developers raises the cost of capital for the company. Consequently, the developers are forced to raise more debt for operations.

“Whenever you are applying for a loan, the bankers ask for the cash flow, but due to this additional burden, the cash flow is poor, making the debt costlier,” another developer said.

Moreover, in working out compensation under CIL, the Commissions often consider only the cost of borrowed funds by the developer without factoring in the equity that goes with debt. The developers start with a disadvantage even if CIL petitions are disposed of promptly and DISCOMs cooperate.

But the ordeal for the developers doesn’t end here. At least two developers confirmed that DISCOMs falsely informed the Commissions about paying the amount in the order.

They often pay a portion and claim the compensation is settled. Many developers over the years have filed contempt cases against high-ranking officials of the DISCOMs.

But such disputes go back to litigation, and the process drags on.

“The entire process creates judicial ambiguities. It affects developers’ confidence adversely,” a third developer said.

Cost to developers

The inordinate delay in granting

“Generators resent the long-drawn regulatory process for CIL. While the CIL process has been considerably streamlined, it remains fraught with pain and long lead times,” Vinay Pabba, COO at Vibrant Energy, said.

A typical petition regarding a GST hike on modules to 12% from 5% can provide clues to understand the amount of capital tied up under such litigation. Considering the solar project cost of ₹45 million (~$553,166)/MW and the cost of the modules to be 65% of it, the compensation owed to developers works out to be nearly ₹1.8 million (~$22,127). For a 100 MW project, a developer spends an additional ₹180 million (~$2.2 million) – worth the cost of 4 MW capacity.

The capital stuck in projects due to the BCD hike will be even higher because of the size of the tax rate change on modules which went to 40% from zero earlier.

Commissions take at least 18 months to pass compensation orders

India’s Long-Term LowCarbon Development Strategy at COP27

By : Gautamee Hazarika

t the UN Climate Change Conference (COP27) in Egypt, India unveiled a multi-pronged strategy to achieve low-carbon growth, which includes expanding and stabilizing the renewable electricity grid, phasing down coal, increasing the adoption of electric vehicles, research and development into carbon removal and capture technologies, and the restoration and conservation of forests.

The Long-Term Low-Carbon Development Strategy report prepared by the Ministry of Environment, Forest and Climate Change has laid out the vision for a sustainable future.

The country’s approach is based on the four key considerations that underpin its long-term low-carbon development strategy: One, the country has contributed little to global warming despite having a 17% share of the world’s population. Two, it has significant energy needs for development purposes. Three, the nation is committed to pursuing low-carbon

strategies for development, and fourth is the need to build climate resilience.

This comes a year after Prime Minister Narendra Modi announced India’s net-zero target at the COP26.

“We are particularly happy to present our strategy at COP27, which is the COP of implementation,” Union Minister for Environment, Forest and Climate Change, Bhupender Yadav said. “The two themes of climate justice and sustainable lifestyles are emphasized in our strategy alongside the UNFCCC principles of equity and common but differentiated responsibilities,” he added.

The Plan

The strategy elaborates on the transition path from fossil fuels to more sustainable energy sources. The expansion of green hydrogen production, increasing electrolyzer manufacturing capacity in the country, and a three-fold increase in nuclear capacity by 2032 are some of the other milestones that are envisaged alongside

the overall development of the power sector.

The low-carbon development of the country’s transport sector is pegged on the increased use of biofuels – especially ethanol blending in petrol – higher electric vehicle (EV) penetration, along with the increased use of green hydrogen fuel.

Additionally, India aspires to maximize the use of EVs, enhance ethanol blending to reach 20% by 2025, and make a strong shift to public transport.

Urbanization will continue as a strong trend wherein smart city initiatives will drive sustainable and climate-resilient urban development. It will involve integrated planning of cities, enhanced energy and resource efficiency, and rapid developments in innovative solid and liquid waste management.

The industrial sector will continue the strong growth with regard to ‘Aatmanirbhar Bharat’ and ‘Make in India’ policies. The low-carbon

The strategy outlines the country’s approach towards green hydrogen adoption, EVs rollout, and renewables capacity additions, amongst other low-carbon measures planned to achieve the set target

development transitions in the industry will not impact energy security, access, and employment.

The focus will be on improving energy efficiency through the Perform, Achieve, and Trade (PAT) scheme with the assistance of programs like the National Hydrogen Mission, a high level of electrification, and enhancing material efficiency and recycling.

Syncing Climate Goals with Economic Commitments

The transition to a low-carbon development pathway will entail costs for developing new technologies, infrastructure, and other transactions.

The provision of climate finance by developed countries will play a significant role and needs to be considerably enhanced through grants

and concessional loans.

The strategy has been prepared in the framework of India’s right to an equitable and fair share of the global carbon budget. This is essential to ensure that there are no constraints on realizing India’s vision of rapid growth and economic transformation while protecting the environment.

Dye-Sensitized Solar Cells With Efficiency Up to 30.2%

By : Gautamee Hazarika

he researchers at Switzerland’s École Polytechnique fédérale de Lausanne (EPFL) claimed to have developed dye-sensitized solar cells (DSCs) with a power conversion efficiency of 15.2% in direct sunlight and up to 30.2% in ambient light conditions.

The history of dye-sensitized solar cells began in the 1990s when Brian O’Regan and Michael Grätzel invented them. Since then, they have been popularly known as “Grätzel cells.”

“Our findings pave the way for facile access to high-performance DSCs and offer promising prospects for applications as power supply and battery replacement for low-power electronic devices that use ambient light as their energy source,” the researchers said.

Dye-sensitized solar cells convert light into electricity through photosensitizers. These dye compounds absorb light and inject electrons into an array of oxide nanocrystals, which are then collected as electric current.

Improvements made to increase efficiency

Recent advancements have improved the performance of DSCs under both sunlight and ambient light conditions. The group of researchers explained that the key to enhancing the efficiency of these cells lies in understanding and controlling the arrangement of dye

molecules on the surface of titanium dioxide nanoparticle films that favor the generation of electrical charge.

One method is cosensitization, a chemical manufacturing approach that produces DSCs with two or more dyes with complementary optical absorption. The method combines dyes that can absorb light from across the entire spectrum.

Alternatively, the team identified a way of improving the packing of two newly designed photosensitizer dye molecules to enhance the DSC’s photovoltaic performance by developing a technique in which a monolayer of a hydroxamic acid derivative is pre-adsorbed onto the surface of nanocrystalline mesoporous titanium dioxide. This slows the adsorption of the two sensitizers and enables the formation of a well-ordered and densely packed sensitizer layer on the titanium dioxide surface.

The dyesensitized solar cells

are transparent and can easily be manufactured in assorted colors. Typical applications include skylights, greenhouses, or glass facades. They are also suitable for portable electronic devices because they are lightweight and flexible.

Swiss scientists have developed dye-sensitized solar cells with a high-power conversion in direct as well as ambient light conditions by controlling the arrangement of dye molecules

Why the New DSM Regulations Made the Grid Unstable

By : Arjun Joshi

Industry experts debate on the impact of CERC’s new regulations which caused dangerous grid frequency fluctuation after being de-linked from deviation settlement mechanism

ess than three weeks after the Central Electricity Regulatory Commission’s (CERC) new regulation de-linked deviation charges and frequency, grid frequency swung wildly and dangerously on December 20, which spooked the power industry and launched a debate on the impact of the regulatory change to the health of the grid.

A significant drop or rise in frequency could lead to a blackout.

Concerned about the security of the grid, the Commission has reverted to a frequency-linked deviation settlement mechanism (DSM) as an interim measure to protect grid stability.

Before the new regulation, maintaining a healthy grid frequency was monetarily productive for all stakeholders. The earlier regulation imposed penalties and incentives on power producers and consumers alike, which ensured that the grid frequency did not fluctuate dangerously.

However, the Commission revised the deviation settlement mechanism (DSM) framework, which has now linked deviation charges to time-block-wise prices discovered in the day-ahead

market (DAM), real-time market, and ancillary services market.

It also directed Grid-India to provide weekly reports on frequency fluctuation causes, primary and automatic gain control responses from generating stations, efforts to obtain and deploy secondary reserve ancillary service (SRAS) and reserves regulation ancillary services (RRAS) to control frequency, and any remedial measures taken.

“The normal rate of charges for deviations are now capped at ₹12 (~$0.15)/kWh. The frequency-linked DSM is back – albeit partially now. The broader question is – the regulatory provisions are extremely nonlinear for over and under-injections. Sellers and buyers would always strive to reduce the DSM payments. RRAS and SRAS would still be critical to watch out for and would determine how the stakeholders (buyers and sellers) respond to the grid plus ancillary market,” said Vishal Pandya, Cofounder, REConnect Energy.

The Commission’s order noted instances where the frequency has been outside the desired range of 49.90 Hz to 50.05 Hz due to both over-injection and under-drawal occurring at different time slots.

To address this issue, general sellers (except for run-of-river generating stations or generating stations based on municipal solid waste) will not be paid from the deviation and ancillary service pool account for over-injection in time blocks where the system frequency is 50.05 Hz or higher.

Further, the order said that when system frequency falls below 49.90 Hz in a certain time block, the general seller will receive 150% of the reference charge rate for excess injection deviation from the deviation and ancillary service pool account during that time block, regardless of volume limits.

General sellers will pay back to the deviation and ancillary service pool account for any shortfall in energy due to under-injection in any time block at 50% of the reference charge rate.

The deviations are attributed to entities scheduling more energy production or consumption than necessary and capacity shortages during peak times. These issues, along with under-injection by generators and over-withdrawal by distribution companies, have made it difficult to use secondary reserve ancillary services and reserve regulations to manage large

frequency fluctuations.

As a result, the system frequency and applicable DSM rates have often remained high, and the system operator has occasionally had to use gas generation based on regasified liquefied natural gas to address capacity shortages for ancillary services.

CERC has capped deviation charges at ₹12 (~$0.15)/kWh due to instances of high charges (nearly ₹40 (~$0.48)/ kWh) resulting from the use of costly ancillary services. These high charges can discourage over-drawing or underinjecting, but they can also incentivize under-drawing or over-injecting if the deviation charge is linked to the normal rate.

The clear and sharp jump and fall of all India frequencies up to 0.5 Hz can be seen in the chart below.

A top executive of an energy solution company said, “When the demand exceeds the generation, the frequency tends to go down. Basically, this can be traced back to the new DSM regulations. The impact of DSM is very high and could change how people are scheduling power.”

He added that frequency fluctuations could recur, and the Commission must

work with Grid-India to ensure grid stability.

Regulator’s rationale for new mechanism

Arguing for the new mechanism, CERC had said the old system was not a reliable indicator of whether the electricity generation was short or surplus. There is little opportunity to profit from price arbitrage using frequency, it said.

2 GW into the system, the entity would be penalized for the excess energy based on the frequency. The earlier price signals originated from frequency-linked power tariffs.

“Stakeholders won’t bother about frequency, and they’ll look at other price signals that have nothing to do with frequency. The deviation can be compounded because of the changing regulations,” another industry source said.

Further, the Commission had based its decision on the introduction of ancillary services, which made the linkage of DSM price to frequency largely redundant. While ancillary services are deployed centrally by the system operator to restore and maintain system frequency closer to 50 Hz, the frequency-linked DSM price is a decentralized tool for controlling frequency.

Speaking to Mercom, founder of a top renewable energy management company, said, “The earlier frequencylinked tariff had a barrier where both generators and buyers had to respond based on grid frequency.”

For instance, earlier, if a power producer scheduled 1 GW but injected

Another reason cited by CERC was that the discipline in the grid had discouraged power distribution companies from waiting for the highfrequency period to draw power as the prices would dip very low during the period. But with grid frequency being maintained mainly within the

De-linking the frequency without a transitionary phase has repercussions on the Indian grid

recommended band, even the DISCOMs couldn’t take advantage of the price arbitrage.

However, de-linking the frequency without a transitionary phase has repercussions on the Indian grid.

“The grid is like a flywheel where the speed will increase if more energy is added. If people are not encouraged to

consume more when the speed is high, the frequency will not return. There must be some linkage between deviation and frequency if we want to operate in a loose pool system, or we should move towards the European market design, where everyone must operate at a mandated frequency,” another source said.

A comparison of frequency trajectories

A comparison of the frequency profile is below, which juxtaposes three different periods. December 1, 2022, to December 20, 2022, vs. November 1, 2022, to November 20, 2022 (to assess the immediate effect of the implementation of the new regulation) and December 1, 2021, to December 20, 2021 (to see the impact of the season)

The chart clearly shows the impact of regulation in the December 1 to December 20 period compared with other more controlled periods during previous regulations.

CERC reported that the sudden increase in the amount of renewable energy in the power grid could reach up to 50%, which may cause problems with inertia. This would affect the drop in frequency that occurs immediately after a significant disruption (inertial response) and before the primary response takes effect.

While changing the regulations to adapt to market conditions is important, grid security must remain sacrosanct.

Contact Person: Supam Panja Phone: +91 96064 52984 Email: supam@mercomindia.com website: https://mercomindia.com/

India’s New Energy Conservation Act

By : Satish Shetty

Rajya Sabha approved the Energy Conservation (Amendment) Bill, 2022, clearing the way for setting up a Carbon Credit Trading market in India.

The Bill, which seeks to amend the Energy Conservation Act of 2001, was passed in the Lok Sabha in

August this year.

The amended legislation introduces provisions for a legal framework to administer carbon credit trading.

It also mandates the minimum share of renewable energy consumption for industrial units or any establishment.

The amendments also incentivize the use of clean energy sources through

Carbon Saving Certificates.

Additionally, the Act will enforce the purchase of an energy savings certificate for consumers whose energy consumption exceeds the prescribed norms and standards.

The Act also brings in energy consumption standards for vehicles and vessels.

The parliament approved the new Energy Conservation Act, introducing the provisions for carbon credit trading, green hydrogen and ammonia scaling, and the residential building renewable mandate

Responding to the questions in Rajya Sabha, Union Minister of Power, R K Singh, said that Central Electricity Regulatory Commission (CERC) will be the designated regulator of the carbon credits market, which will operate on a mechanism similar to power exchanges.

Further, the Ministry of Environment and Forest is the designated governing body for implementing the Act.

The minister added that the carbon credits would not be available for sale outside the country until the nation’s NDC (Nationally Determined Contributions) targets are met.

The Act mandates that residential buildings with a connected load of 100 kW and above would meet a portion of their energy requirements from renewable sources. Previously the mandate was applicable only to commercial buildings.

The minister, in his response, highlighted this as a major step towards achieving net zero, as energy consumption in the housing sector accounted for 24% of the nation’s total.

He further added that the individual

states would have the flexibility to include buildings with under 100 kW load in the coming years.

In cases where they fail to fulfill these obligations, the states can penalize them under the building bylaws.

Other significant provisions of the bill include the scaling up of green hydrogen, green ammonia, biomass, and ethanol production for energy and as feedstock for major industries in the country.

Following the passing of the Bill, a parliamentary committee asked the Ministry of Power to ensure that all states set up standalone State Designated Agencies (SDA) to facilitate and enforce the efficient use of energy as mandated by the Energy Conservation Act.

In a report, the Standing Committee on Energy had said only two states – Kerala and Andhra Pradesh – had standalone SDAs. The rest of the states had vested the responsibility in other agencies like the departments of power, distribution companies (DISCOMs), and renewable energy development agencies.

The parliamentary committee felt that these agencies generally lacked dedicated physical and fiscal resources to oversee energy conservation activities.

“This dampens the pace and direction of energy conservation in the states,” it said, pointing out that the role of the states in meeting the Nationally Determined Contribution targets was crucial.

The standing committee said the ministry and the Bureau of Energy Efficiency (BEE) did not appear to have taken any fresh initiative to convince the states of the need to set up standalone SDAs.

It expected the ministry to step up efforts to have dedicated SDAs in all states and report the outcome of the results in the committee’s future meetings.

The ministry told the committee that BEE had taken up the matter with state governments to establish standalone SDAs. The Minister of Power had also urged the states to set up BEE-like organizations in the states.

Major Events that Impacted the Solar Sector in 2022

By : Arjun Joshi

It was one of the most eventful year for solar sector with the government pushing domestic manufacturing, green energy open access, rooftop solar and curbing imports

ndia installed a record 10 GW of new solar capacity during the first nine months of 2022, an increase of 35% year-over-year, according to Mercom India Research’s Q3 2022 India Solar Market Update report.

India’s cumulative installed solar capacity now stands at 60 GW.

We’ve collated the key stories that significantly impacted the Indian solar sector in 2022.

The Great Indian Bustard issue

The Supreme Court ordered Rajasthan and Gujarat to assess the total length of overhead transmission lines in the region, noting that the installation of bird diverters in the habitat of the endangered Great Indian Bustard (GIB), as proposed by the special committee appointed by it, is not yet complete.

Nearly 4.8 GW of solar projects are affected by environmental concerns in the GIB region.

The top court had instructed both states to install diverters in the GIB habitat and underground overhead cables. It was concluded that underground transmission lines with 66 kV or higher voltage levels are not technically possible. However, underground powerlines with voltage levels of 33 kV or lower are feasible.

Gujarat has started shifting overhead transmission lines underground, and Rajasthan was yet to undertake the exercise.

PLI tranche II for solar manufacturing

The Ministry of New & Renewable Energy (MNRE) approved ₹195 billion (~$2.36 billion) to achieve gigawatt-scale manufacturing of high-efficiency solar photovoltaic modules under the second phase (Tranche II) of the Production Linked Incentive (PLI) program.

Out of the total approved amount, ₹120 billion (~$1.45 billion) has been set aside for vertical integration of manufacturing polysilicon, ingots, wafers, solar cells, and solar modules under the second phase (Tranche II) of the Production Linked Incentive (PLI) program.

A sum of ₹45 billion (~$546 million) has been approved for the vertical integration of manufacturing wafers, solar cells, and solar modules, while ₹30 billion (~$364 million) is dedicated towards integrated manufacturing of solar cells and solar modules.

Solar Energy Corporation of India will be the implementing agency for the program.

Green Energy Open Access Rules

In June this year, the Ministry of Power issued the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022. As per the new regulations, consumers will be eligible for green energy open access if they have a contracted demand or sanctioned load of 100 kW or more. For captive consumers, there will be no load limitation.

Grid Controller of India (formerly known as Power System Operation Corporation) will be the nodal agency and will approve all applications for open access within 15 days.

The permitted quantity of banked energy by the consumers is set to at least 30% of the total monthly electricity consumption from the distribution licensee.

The cross-subsidy surcharge for the open access consumer will not be increased by more than 50% of the surcharge determined for the year in which open access has been granted for twelve years from the operation of the project.

ALMM for open access & net metering projects

The widely expected relief for net metering and open access projects failed to materialize after the September 30 deadline was allowed to expire without an extension from the government.

For these projects, developers must mandatorily use domestically manufactured modules from the Approved List of Models and Manufacturers (ALMM) from October 1.

The Ministry also stated that the ALMM would not be applicable for behind-the-meter solar power projects used for captive consumption by a consumer or group of consumers.

Despite the continued costeffectiveness of open access and net metering projects to customers, the introduction of ALMM could lead to a longer payback period for projects and dent developers’ margins due to uncertainty around the supply and pricing of domestic modules.

BCD on import of cells and modules

The imposition of a 25% basic customs duty (BCD) on solar cells and a 40% on solar modules took effect from April 1, 2022. The decision forms part of the Indian government’s efforts to reduce reliance on imports

and boost domestic solar equipment manufacturing.

While domestic manufacturers have welcomed the decision, it has not found favor with solar power project developers, who are skeptical of domestic manufacturers’ ability to meet demand. Chinese suppliers dominate India’s solar energy sector because of their competitive prices. Domestic cell manufacturing capacity currently stands at around 4.6 GW.

Rooftop subsidy restructuring

MNRE issued new and simplified central financial assistance (CFA) calculations for rooftop solar systems installed by residential consumers.

The subsidy calculation will now be on the capacity of the rooftop solar system instead of the earlier method based on the benchmark cost set every year for these consumers.

Earlier, there was no subsidy for systems above 10 kW.

The central government subsidy is available only to those who register on the national portal by December 31, 2022. It will be released after clearance by the regional power distribution company.

The Ministry extended Phase II of the ‘Grid-Connected Rooftop Solar Program’ until March 31, 2026, without any addition to the originally approved outlay of ₹118.14 billion (~$1.43 billion).

Other major news

MNRE approved the implementation of the Intrastate Transmission System Green Energy Corridor (GEC) Phase-II in Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan, Tamil Nadu, and Uttar Pradesh. The program aims to add 10,753 km transmission lines and 27,546

MVA substation capacity to evacuate 20 GW of renewable power from these states. It will be implemented by state transmission utilities and is scheduled for completion by FY 2025-26, with a total estimated cost of ₹120.31 billion (~$1.45 million).

The Ministry issued an expression of interest from state governments to set up manufacturing zones for power and renewable energy equipment. It will include manufacturing units with a total financial outlay of ₹10 billion (~$121 million). The project’s duration is five years – FY 2021-22 to FY 202526. The proposed funding for the three manufacturing zones has been kept flexible to support a common infrastructure and testing facility with a ceiling of ₹4 billion (~$48 million) for one manufacturing zone.

Further, the government amended project import regulations to exclude solar power projects, effectively shutting down a legal route for developers to bypass restrictions on module procurement. The amendment nullifies applications from private solar developers who had sought approval to import components for upcoming projects. The previous regulation allowed imports at a concessional customs duty rate for “all power plants and transmission projects.”

“The solar industry in India experienced the most significant change in direction since the National Solar Policy was established with the imposition of BCD and the shutdown of imports. The impact of these policy changes will be transformative as the country starts setting up a domestic supply chain,” said Raj Prabhu, CEO of Mercom Capital Group.

Industry News and Policy Briefs

Singapore-based renewable energy company Sembcorps's whollyowned subsidiary Sembcorp Green Infra entered into an agreement with India Infrastructure Fund II, managed by Global Infrastructure Partners, to acquire 100% of Vector Green in a ₹27.8 billion ($474 million) deal. Including Vector Green, Sembcorp's gross renewables portfolio installed and under development in India will total 3 GW, comprising 1 GW of solar and 2 GW of wind assets.

Edelweiss Real Assets Managers, part of Edelweiss Alternatives, an Indiabased alternative asset advisor, closed its maiden energy infrastructure investment trust (InvIT) – AnZen India Energy Yield Plus Trust, with an initial asset under management of over ₹23 billion (~$283.03 million). The funds for the trust were raised through private placement and received an encouraging response from a diversified set of institutional and eligible investors who hold approximately 26% of the units.

Private equity firm Actis-backed BluPine Energy acquired 404 MW of solar assets from Kolkata-based mining company Atha Group. The company's operational solar portfolio is spread across India. Actis said that the acquisition would enable BluPine, which was formed earlier this year, to support India's energy transition by targeting 4 GW of portfolio capacity over the next 4-5 years.

State Bank of India (SBI) signed an agreement with Kreditanstalt für Wiederaufbau (KfW) to receive a low-interest loan of €150 million (~$150.66 million) to finance solar projects in India. The loan will primarily fund innovative technologies, such as automated dry cleaning of solar modules to reduce water consumption.

Inox Wind and its subsidiary Inox Green Energy Services repaid debts of ₹1.61 billion (~$19.73 million) and ₹2.5 billion (~$30.63 million), respectively, as part of the strategic initiative to deleverage their balance sheets. Inox's stated near-term goal is to deleverage all its operating entities, and this repayment is considered a significant step toward achieving that goal.

Clean Electric raised $2.2 million (~$26,565) in a seed round led by a Bengaluru-based early-stage venture capital firm Kalaari Capital, to produce 5,000 electric vehicles (EV) battery packs monthly from a proposed manufacturing facility in Pune. Clean Electric said it would direct the funds raised to study safety and performance issues like EV fires, long charging times, and frequent battery replacement.

The Asian Development Bank inked a $40 million (~₹3.31 billion) financing package with India-based shared electric mobility company GreenCell Express to develop 255 battery-powered electric buses (e-buses). The e-buses will serve 5 million people annually and run across 56 intercity routes. ADB said the new e-buses would enhance passenger safety, specifically for women.

Private equity firm KKR will invest $400 million (~₹33.12 billion) in Serentica Renewables to ramp up its clean energy portfolio and provide energy transition solutions to industries. Serentica Renewables recently entered into three long-term power purchase agreements and is developing 1.5 GW of solar and wind power projects across various states, including Karnataka, Rajasthan, and Maharashtra.

Policy Briefs States

The Haryana Electricity Regulatory Commission approved an additional surcharge of ₹0.78 (~$0.009)/kWh for open access consumers who avail power from any source other than the state's DISCOMs.

The Punjab State Electricity Regulatory Commission issued the draft Renewable Purchase Obligation and its Compliance Regulations, 2022, outlining the state's renewable purchase obligation (RPO) trajectory up to FY 2029-30. In line with the Ministry of Power's RPO trajectory, the Commission issued the purchase obligations for wind, hydro, energy storage, and other renewable energy sources.

The Uttar Pradesh Draft Green Hydrogen Policy 2022 aims to cut hydrogen costs to $2 (~₹166)/kg in the next five years and whittle it further to $1 (~₹82.79)/kg in the long term. Additionally, the state aims to achieve 20% green hydrogen blending in total hydrogen consumption by 2028 for existing fertilizer and refinery units and ramp it up further to 100% green hydrogen by 2035.

Rajasthan formulated Saur Krishi Ajivika Yojna under Component C of the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM) to promote decentralized solar projects development at load centers having predominantly agriculture consumption in rural areas. The program intends to utilize the state's abundant land resources by allowing farmers and landowners to lease out their barren or unutilized land for setting up solar projects.

The Uttarakhand Electricity Regulatory Commission revised the additional surcharge to ₹1.14 (~$0.013)/kWh for consumers sourcing power through open access from October 1, 2022, to March 31, 2023. This is a 6.5% increase from the additional surcharge of ₹1.07 (~$0.012)/kWh, applicable from April 1, 2022, to September 30, 2022.

Madhya Pradesh Industrial Development Corporation was declared the successful bidder to set up manufacturing zones for solar and other renewable energy equipment, including power transmission-related equipment. Eight states – Andhra Pradesh, Bihar, Gujarat, Madhya Pradesh, Maharashtra, Odisha, Tamil Nadu, and Telangana – had submitted proposals.

Center

The Central Electricity Regulatory Commission issued levelized generic tariffs for renewables for the FY 2022-23. The control period of the tariff will be from July 1, 2020, to March 31, 2023. The project-specific tariff will apply to small hydro projects, biomass power projects with rankine cycle technology; non-fossil fuel-based cogeneration projects; biomass gasifierbased power projects; and biogas-based power projects.

The Ministry of Power proposed that any coal-based thermal generation station coming up after April 1, 2024, must either install or procure renewable energy equivalent to 25% of the thermal generation capacity. The government is looking to operationalize a provision in the Tariff Policy, 2016, which says that the renewable energy produced by each generator could be sold after bundling it with thermal energy.

India plans to invest ₹2.8 trillion ($34.2 billion) by 2030 in setting up an interstate transmission network (ISTS) to evacuate renewable energy, said K Sreekant, Chairman and Managing Director of governmentowned Powergrid Corporation of India. The investment, which is a mix of grants and funds, will primarily address two issues: strengthening the infrastructure at the distribution level and implementing various cost-reduction measures.

The Ministry of New and Renewable Energy issued a draft tender to select wind power developers for leasing sea-bed areas to develop 4 GW of offshore wind power projects off the coast of Tamil Nadu. The energy generated from offshore wind power projects will be for sale through open access, captive, bilateral, third-party, or merchant sale modes.

The Ministry of New and Renewable Energy notified the National Bioenergy Program, valid from FY 2021-22 to FY 2025-26. The program has been recommended for implementation in two phases. A budget outlay of ₹8.58 billion (~$104.66 million) has been approved for Phase-I. Out of the total budget, ₹6 billion (~$73.18 million) has been approved for the waste-to-energy program, ₹1.58 billion (~$19.27 million) for the biomass program, and 1 billion (~$12.19 million) for the biogas program.

The Ministry of Finance (Department of Revenue) withdrew the 15% duty on the export of steel effective November 19, 2022. The solar power industry expects steel prices to rise without substantially impacting project costs. In May this year, the Ministry of Finance had imposed a duty on the export of flat-rolled steel products of a width of 600 mm or more, other bars and rods of stainless steel, and bars and rods hot rolled into irregularly wound coils of other alloy steel.

Union Power Minister R K Singh launched the green energy open access portal allowing consumers to access green power easily through transparent, simplified, uniform, and streamlined procedures. Any consumer with a connected load of 100 kW or above can get renewable energy through open access from any renewable energy generating project set up by themselves or by any developer.

The newly launched National Center of Excellence for Green Port and Shipping will help vital ports in the country source as much as 60% of their energy demand from renewable sources (solar and wind). Currently, less than 10% of the total energy demand for major ports is met by green energy. The launch came in the wake of all industrial sectors moving towards carbon neutrality and implementing circular economy measures ahead of the government's commitment for 2070.

The Ministry of New and Renewable Energy amended the guidelines for tariff-based competitive bidding to procure power from grid-connected wind-solar hybrid projects

According to the amendments, if there is a delay in the grant or operationalization of long-term access by the central or state transmission utilities and there is a delay in the readiness of the intrastate or interstate transmission system connected substation at the delivery point, the projects will be eligible for a time extension.

The Directorate General of Trade Remedies terminated the antidumping probe on the imports of solar cells, whether or not assembled into modules, from China, Vietnam, and Thailand. The probe was terminated after the petitioner, the Indian Solar Manufacturers Association, submitted that post-initiation, the government introduced a basic customs duty of 25% and 40% on solar cells and modules from April 1, 2022. The imposed duties covered the entire scope of the product under investigation and had alleviated the price pressure on the domestic industry.

Major Tender and Auction Announcements in November

This is a list of major tenders and auctions from November. A comprehensive list can be found on Mercom’s Tender and Auction Tracker and Alerts. Please contact info@mercomindia.com for more information.

Auctions

NTPC

500

Saatvik

PTC India’s expression of interest (EoI) to procure

supply

.

Renewable Energy, SJVN Green Energy, and Hinduja Renewables were declared winners in RUMSL auction for the 300 MW floating solar park (Phase II) at the Omkareshwar reservoir in Madhya Pradesh, according to Mercom sources.

MW of hybrid renewable energy (wind and solar) (Tranche-I), with a greenshoe option for an additional 500 MW, has received a strong response, according to Mercom sources.

Green Energy secured a 4 MW solar module

order after the reverse auction conducted by BHEL

Other Tenders

SECI invited bids for the selection of solar module manufacturers to produce higher efficiency modules in the country under tranche II of the production-linked incentive (PLI) program.

Ministry of New and Renewable Energy (MNRE) issued a draft tender to select wind power developers for leasing sea-bed areas to develop 4 GW of offshore wind power projects off the coast of Tamil Nadu.

NTPC Renewable Energy invited bids to supply battery energy storage systems (BESS) for solar power projects at the Khavda Renewable Park in the Kutch region of Gujarat. The agency also announced a tender for the balance of system (BoS) package to set up ISTS-connected wind power projects of 1,000 MW capacity in Karnataka

Bharat Heavy Electricals (BHEL) invited bids for the supply of 1.25 million 157 mm diamond wire sawn (DWS) multicrystalline silicon wafers.

NTPC Renewable Energy invited bids for land and an extra high voltage (EHV) transmission system package to develop ISTS-connected solar power projects of up to 2 GW capacity in Rajasthan.

APDCL announced two tenders – one of them to procure power from 100 MW of grid-connected floating solar projects to be developed on different water bodies across the state on a build-own-operate basis for 25 years. The second tender was inviting bids from consultants to prepare a detailed project report (DPR) for a 1 GW grid-connected solar project in the Karbi Anglong district of Assam.

Jindal Power invited bids for the manufacturing, testing, packing, supply, and transportation of monocrystalline passivated emitter and rear contact (PERC) modules for its 150 MW solar projects.

NTPC Renewable Energy invited bids for the supply of modules for 325 MW of solar projects in Shajapur Solar Park, Madhya Pradesh

BHEL invited bids for the O&M of a 40 MW solar power project of NLC India in the Cuddalore district of Tamil Nadu.

SECI invited bids for the O&M contract, including insurance for five years, for a 10 MW ground-mounted solar power project at Badi Sid in the Jodhpur district of Rajasthan

Bharat Petroleum Corporation (BPCL) issued a tender to hire consultancy services for setting up 6.9 MW of floating solar power projects in the rainwater harvesting pond and shore tank farm in Kochi, Kerala

PFC Consulting invited bids to set up ISTS projects under the Western Region Expansion Program (WRESXXVII) on a build, own, operate, and transfer basis.

Rewa Ultra Mega Solar (RUMSL) invited bids from consultants to prepare a detailed project report (DPR) to develop the Morena wind-solar hybrid project with energy storage in Madhya Pradesh.

Pune Municipal Corporation (PMC) invites proposals for the commissioning, operation, and maintenance of the electric vehicle (EV) charging stations for the public at designated locations in Pune.

Goa Energy Development Agency (GEDA) invites expressions of interest cum bids for the commissioning, operation, and maintenance of 40 EV charging stations at various locations in Goa.

State Bank of India (SBI) invited bids from public sector undertakings (PSU) to provide consultancy services for a 2 MW grid-connected solar project in Mahindra World City in Jaipur.

Tenders & Auctions

Rooftop Solar Tenders

Haryana’s Supply and Disposals Department invited bids to install and commission 30 MW of grid-connected rooftop solar power systems on government buildings in the state.

Agency for New and Renewable Energy Research and Technology (ANERT) invited bids from empaneled agencies for the rate contract to develop 15 MW of rooftop solar projects in Thiruvananthapuram

Eastern Coalfields announced a tender to design, install, and commission 816 kW of grid-connected rooftop solar systems and provide operation and maintenance (O&M) services for 599 kW of installed systems for five years across West Bengal and Jharkhand.

Jharkhand Renewable Energy Development Agency (JREDA) invited bids for a rate contract to install and commission 3 MW of grid-connected rooftop solar systems of various capacities with and without battery packs on government buildings in the state.

Eastern Railway invited bids for installing 3 MW of grid rooftop solar systems under the public-private partnership (PPP) model in Bhagalpur, Bihar, on a turnkey basis with a net metering facility.

Bridge and Roof Company invited bids to select a consultant to install and commission a 2.25 MW gridconnected rooftop solar power project at the Kidderpore Dock-II of the Syama Prasad Mookerjee port in West Bengal.

Tenders & Auctions

Top Large-Scale Solar Tenders

Solar Energy Corporation of India (SECI) invited bids for setting up 1,200 MW of interstate transmission system (ISTS)-connected wind-solar hybrid power projects (Tranche-VI) with energy storage and assured peak power supply across India.

NTPC Renewable Energy released a tender for the balance of system (BoS) package to develop 1,200 MW of solar power projects at the Khavda renewable park in the Kutch region of Gujarat.

Maharashtra State Electricity Distribution Company (MSEDCL) invited bids to procure 230 MW of solar power

from projects to be developed in the state.

Assam Power Distribution Company (APDCL) announced a tender to procure 50 MW of power from grid-connected solar power projects to be developed on a build-own-operate basis in the state. APDCL has set a ceiling tariff of ₹4.40 (~$0.054)/kWh for the tender.

Kerala State Electronics Development Corporation (KELTRON) released expressions of interest (EoI) to empanel engineering, procurement, and construction (EPC) contractors for installing solar power projects and solar streetlights on a turnkey basis in the state.