Mercom India Clean Energy Magazine (Jan 2023)

Indian solar module manufacturing

04

06 POLICY Polycrystalline Module Shortage Impacts Rooftop Solar Projects

12

16

MARKETS

India’s Solar Module Exports to US Surge

The state has seen increased interest amongst open access developers given the various concessions announced in the Uttar Pradesh Solar Energy Policy 2022 and the support from state DISCOMs

20

POLICY MARKETS

C&I Consumers Lead Open Access Solar Surge in Andhra Pradesh

Based on the growing demand for captive projects, Andhra Pradesh has moved up in the pecking order for open access solar installations

The significant shortage of polycrystalline modules in the market has impacted the progress of DCR projects in various states as manufacturers shift to mono PERC and other high-efficiency modules

Mercom spoke to industry experts to find out the impact of the increased solar module exports from India to the U.S. due to the country’s recent ban on Chinese solar module and cell imports on the domestic market

MARKETS

Corporate Funding for Solar Sector Reaches $24 Billion in 2022

The rise in demand for solar influenced by various geopolitical events has boosted investments in the sector with a record number of solar companies acquired and the second-best year on record for solar project acquisitions

26

28 POLICY POLICY

Ministry Pushes for Accelerated Rooftop Solar Adoption

In a letter to the state regulatory bodies and DISCOMs, the MNRE reiterated the importance of expediting rooftop solar adoption in the country and emphasized the state's role in enabling it

Odisha’s New Renewable Energy Policy

Odisha announced its new renewable energy policy with a marked emphasis on promoting open access model in the state and extends various provisions for the installation of other renewable energy sources

34

TECHNOLOGY

A Sodium-Sulfur Battery Four Times More Potent than Lithium-ion

Researchers at the University of Sydney developed the new, low-cost sodium-sulfur battery using a simple pyrolysis process and carbon-based electrodes

According to a recent report by Mercom India, solar module manufacturing in India is expected to grow multi-fold, given the increasing demand, evolving tech, and supporting government policies

The HERC amended the RPO policy to align it with the regulations issued by the Ministry of Power to include wind energy and energy storage obligations and add solar under the other RPO category

The state issued an amended draft to its intra-state open access regulations, outlining the charges and scheduling regulations to promote renewable open access adoption in the C&I sector

A renowned hospital group shares with Mercom India the benefits it has experienced since it transitioned to renewables for its energy needs

The renewables sector has long sought a long-term trajectory when it comes to tenders issued by the government agencies to help plan finances and resources to execute these projects better

Researchers at IIT Kanpur developed organic solar cells using organic polymers, which, when integrated with multilayered electrodes, offer higher optical transmission and act as a power source

The U.S. Department of Commerce issued a clarification, allowing the import of solar modules assembled in non-Southeast Asian countries by using solar cells manufactured in the countries under investigation

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

Foreword

Despite challenges, the solar and storage sectors received funding in record numbers globally in 2022.

The war in Ukraine has accelerated demand for solar around the world, and the Inflation Reduction Act boosted the sector in the U.S. In 2022, we saw record venture capital and private equity funding; solar companies were acquired in record numbers; and solar projects saw its second best year for acquisitions. But we are beginning to see higher interest rates bite into financing activity which resulted in lower public and debt financing in the second half of the year.

With the passing of the Inflation Reduction, there is significant interest in investing and acquiring solar companies and projects. Along with a 30% investment tax credit for installing solar, the IRA provides substantial incentives to invest the U.S. domestic manufacturing facilities and equipment, targeting 50 GW of domestic manufacturing by 2030. Currently, the solar industry is waiting for guidance from the U.S. Department of Treasury on qualification criteria for the various tax credits and adders within the IRA.

Solar companies raised $24.1 billion in corporate funding in 2022. Global venture capital and private equity funding in the solar sector in 2022 came to $7 billion, a 56% increase compared to $4.5 billion in 2021. This is the highest amount of VC funding in a single year for the solar sector since 2010, according to Mercom reports.

A total of 128 mergers and acquisition transactions were recorded in 2022— the highest since 2010, including eight deals exceeding a billion dollars each. Solar project acquisitions in terms of GW were the second largest, with 66 GW. Funding into energy storage continued to grow at record levels as well in 2022; however, some of the funding activity shifted from venture capital and private equity to public market and debt and debt financing. In addition to record funding activity, energy storage companies and projects were also acquired in record numbers, reflecting maturity in energy storage markets and assets. The global energy transition, the shift toward EVs, and the Inflation Reduction Act provided strong tailwinds for energy storage companies.

Corporate funding for energy storage companies was up by 55%, with $26.4 billion in 2022. A record 28 energy storage companies were acquired in 2022 – the most since 2014.

We expect strong fundraising activity to continue in 2023, barring a severe global recession. However, inflation and high-interest rates will make borrowing expensive and may push some of the public market and debt activity to next year.

The solar manufacturing expansion will be a strong focus in China, U.S., and India. While China wants to dominate the supplies, U.S. and India will focus on developing local alternate supply chains to reduce dependency on China.

Overall, 2023 is expected to bring a mix of growth opportunities and challenges for the market.

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)

#590, 1st main road, 3rd block, Dollars Colony, RMV 2nd stage, Bengaluru-560094 t | 91.80.41211148 e | info@mercomindia.com

Mercom India Clean Energy News And Insights

- Printed and Published by T.P. PRIYADARSHINI on behalf of Mercom India Private Limited and printed at SNEHA PRINTERS, No. 16, 1st B Cross, Sri Raghavendra Matt Road, Papareddypalaya, 11th Block, 2nd Stage Nagarbhavi, BENGALURU – 560072 and published at 10, No. 14/24, SNS Plaza, 2nd Floor, Kumarakrupa Road, Kumarapark, BENGALURU – 560001.

Editor - T.P. PRIYADARSHINI

Copyright @2023 Mercom Capital Group, LLC. Mercom India magazine is published by Mercom India Private Limited.

Contents may not be reprinted or otherwise reproduced without written permission.

Mercom India Magazine is an independent forum for the expression of opinions relevant to industry issues. The views expressed in this magazine is that of the authors and may not necessarily be that views of the publisher. Every effort is made to provide accurate information; however, the publisher assumes no responsibility for the accuracy of submitted advertorials or editorial information.

Uttar Pradesh Open Access Solar Market Attracts New Interest

The state has seen increased interest amongst open access developers given the various concessions announced in the Uttar Pradesh Solar Energy Policy 2022 and the support from state DISCOMs

By : Arjun Joshi

Uttar Pradesh has begun to witness an increased interest from solar open access developers and consumers due to the wide-ranging and attractive concessions proposed for the sector in

the solar energy policy released earlier this year.

To revamp the open access market, the state issued a slew of aggressive exemptions including a 50% waiver on wheeling and transmission charges for

captive and third-party consumers. The exemptions are applicable for open access projects above 1 MW.

Further, the state has also exempted consumers from paying electricity duty for 10 years while allowing 100% energy

banking annually. Stamp duty on land leases or purchases for such projects is also waived off.

Uttar Pradesh installed 41 MW of open access solar in Q3 2022, an increase of 7% year-on-year, according to Mercom India Solar Open Access Market Report Q3 2022.

The state has a cumulative solar open access capacity of ~600 MW as of September 2022. It is ranked fourth among states for cumulative open access installations.

“Developers and customers were hesitant when it came to setting up open access projects in Uttar Pradesh. However, with the new solar policy, the state has seen an increase in interest, and we have been receiving more and more inquiries,” said an industry source.

Another developer said solar open access installations are likely to increase significantly in the next year due to favorable policies which make it easier for consumers to adopt an alternative energy source.

“As Uttar Pradesh is a powerimporting state, the exemption on cross-subsidy surcharge and wheeling/

transmission charges for intrastate transmission systems on interstate sale of solar power will also boost open access solar,” the developer added.

Further, the state has allowed the banking of energy in every financial year, subject to verification by the power distribution company (DISCOM). The banking facility will be available to projects for the entire useful life of the project or 25 years, whichever is less.

DISCOMs Positive

As with most state-owned power distribution companies, Uttar Pradesh’s DISCOMs have also been reluctant to grant solar open access permissions in the past but industry experts said that it is changing for the better of late.

“Previously, the Noida Power Company was not in favor of granting no objection certificates (NOCs) because they claimed their system was insufficient to provide open access. However, DISCOMs are now providing NOCs in a timely manner,” another developer said.

He added that the number of open access installations could easily double

in the next year due to the favorable policies.

The industries in the state are paying exorbitant tariffs for power provided by the DISCOMs. The prevalent retail electricity tariff (FY23) in the state ranges between ₹6.1 (~$0.074)/kWh and ₹8.68 (~$0.10)/kWh for the commercial and industrial (C&I) segment.

As per the state’s new solar policy, the tariff includes open access charges ranging from ₹1.25 ($0.015)/kWh to ₹2.7 ($0.033)/kWh, which would not be applicable for consumers opting for solar open access. Under the captive and group captive mode of solar open access, the energy cost could be reduced by over 25% compared to the retail tariff.

The tariff differential, along with more responsive DISCOMs, could make the state a fertile ground for solar open access installations.

The Mercom India Solar Open Access Market Report Q3 2022 covers a detailed analysis of state policies and regulations related to solar open access and covers vital information and data on the market.

Polycrystalline Module Shortage Impacts Rooftop Solar Projects

By : Rakesh Ranjan Parashar

As module manufacturers rush to upgrade technology for supplying to captive domestic demand, a shortage of polycrystalline modules has been created in the domestic market, severely delaying government projects.

Although polycrystalline modules are based on old technology and have comparatively low efficiency because they are under 400W, many government-tendered rooftop solar projects mandate the use of these modules under the domestic content requirement (DCR) policy. The policy has seen tenders worth 40 GW floated in the past by the state and central governments.

One of the most affected projects belongs to the Gujarat government, where only a paltry 50 MW has been commissioned against a total of 1 GW.

In February this year, Madhya Gujarat Vij Company floated two empanelment tenders to install 1 GW of residential rooftop solar systems in urban and rural areas. One of the tenders was to install

700 MW of residential rooftop solar systems in urban areas. Another one was for 300 MW residential rooftop solar systems in rural areas.

“The availability of polycrystalline modules is significantly less in the market. Also, the market conditions are not conducive to manufacturing polycrystalline modules,” noted Jinto Joseph, Head-Sales and Marketing at Credence Solar Panels, a solar module manufacturer.

Joseph added that the manufacturers were moving toward higher efficiency and higher wattage modules. Polycrystalline module manufacturers are winding down their production and moving toward mono PERC, which has led to a drop in DCR module availability.

Another industry expert said that only a handful of manufacturers are producing polycrystalline modules currently, while Adani has shut down its supply for the module.

However, some module manufacturers disagree that the polycrystalline supply shortage is

The significant shortage of polycrystalline modules in the market has impacted the progress of DCR projects in various states as manufacturers shift to mono PERC and other high-efficiency modules

impacting the progress of DCR projects.

“There is no shortage of modules for DCR projects. The developers have created this whole narrative. The fact that DCR polycrystalline modules are slightly on the expensive side has led to a drop in demand,” said Parmod Sirohiya, Managing Director of Senza Solar, a solar module manufacturer and EPC service provider.

Phasing out polycrystalline

Apart from the shortage, the stranded government projects that mandate polycrystalline modules are also impacted by a steep rise in prices.

Over the last year, the price of these modules has increased by 20%.

Hitaksh Sachar, Director of Asun Solar, a rooftop solar EPC service provider, said, “The manufacturing capacity in the country has its own limitations, and this is compounding the problem.”

Sachar added that while the shortage of polycrystalline is acute, government tenders have usually faced this problem in the past, but to a lesser extent, because the tender documents are prepared nearly one to two years in advance, and by the time tender comes out, the modules are not available in the market as technology changes are rapid.

“Recently, Websol stopped making polycrystalline cells, worsening the situation. There is demand for lowwattage poly modules, but the lack of availability is impacting ongoing projects adversely,” noted Harsh Jain, Director of Citizen Solar, a solar module manufacturer and EPC service provider.

He said developers are waiting for the polycrystalline modules in the market so that they can complete the projects, but the trend is likely to continue for the next six months at least. The supply and prices will normalize only if new cell production lines come online.

Adapting to the new reality

It is time for government tenders to become technology agnostic as long as they are manufactured in India.

Recent tenders suggest that government agencies have adapted to the new reality.

For their tenders, the central government-owned implementing agencies are mandating the procurement of multicrystalline or monocrystalline modules from the Approved List of Models and Manufacturers (ALMM) list.

In December last year and June this year, Solar Energy Corporation of India invited bids to supply 1,680 MW and 1,800 MW of solar modules, respectively, which included cells manufactured in India under the DCR category. Both tenders mandated theuse of multicrystalline or monocrystalline passivated emitter and rear cell or thin-film cadmium telluride solar modules.

A Record One Million Electric Vehicles Sold in 2022

According to the Ministry of Road Transport and Highways, EV sales recorded a 300% year-overyear jump as states strive for rapid EV adoption with the help of favorable policies

By : Arjun Joshi

Electric vehicle (EV) sales in India reached a record one million units in 2022, a jump of over 300% against the 322,877 units sold in 2021.

EVs accounted for 4.7% of overall automobile sales, according to data released by the Ministry of Road Transport and Highways through its Vahan Dashboard. The numbers do not include data for Telangana and Lakshadweep.

Monthly EV sales exceeded 100,000 units in October for the first time ever with the trend following in November and December.

India has over 1.88 million registered EVs.

Electric two-wheelers

Out of the total EVs sold, nearly 62% (624,192) were electric two-wheelers. Ola Electric had the highest number of sales in this category with 109,241 units, followed by Okinawa Autotech with 101,612 units. Other significant electric two-wheeler companies in the market include Hero Electric (96,389), Ampere (79,137), and Ather (51,720).

Electric three-wheelers

Nearly a third of all EVs sold in 2022 were electric three-wheelers. YC Electric had the highest sales at 27,880 units, followed by Saera Electric with 18,456 units. Mahindra Reva Electric Vehicles (15,448), Dilli electric (13,173), and Champion Polyplast (12,695) were the other major electric three-wheeler companies in the market.

Electric four-wheelers

Electric four-wheelers (cars) represented 3% of the total sales at 32,853 units. Tata Motors was the most

preferred automobile maker with 25,760 units sold, followed by MG Motors with 3,324 units. Other significant electric four-wheeler companies in the market include Hyundai (606), BYD (354), and Mahindra (212).

India is aiming for EVs to make up 30% of its transportation needs by 2030. The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) program, along with state subsidies and a wider range of options for consumers, have contributed to the rising sales. There is also increased awareness among consumers about the benefits of using environmentally friendly modes of transport.

Several states, including Rajasthan, Chhattisgarh, Chandigarh, Assam, Maharashtra, Delhi, and Gujarat, have introduced policies that have led to the increased adoption of EVs.

The EV industry is expected to see strong growth in 2023 due to the availability of more models and increasing fuel costs.

India’s Solar Module Exports to US Surge

Mercom spoke to industry experts to find out the impact of the increased solar module exports from India to the U.S. due to the country’s recent ban on Chinese solar module and cell imports on the domestic market

By : Arjun Joshi

India recorded a massive jump in solar module exports to the United States in the last quarter, which is attributable primarily to the latter’s sanctions on Chinese imports. It has also coincided with Indian manufacturers’ push to ramp up capacity to meet domestic demand.

Solar module exports surged 642% at $157 million (~₹12.76 billion) in the July-September period year-over-year.

The data from the commerce ministry showed that the quarter-on-quarter sequential growth stood at 499%. Over 94% of the exports are to the U.S.

Like the rest of the world, Chinese solar modules have been dominating Indian solar projects over the years. But the imposition of a prohibitively high 40% basic customs duty (BCD) on imported modules earlier this year and the government-mandated Approved List of Models and Manufacturers

(ALMM) policy last year have spurred Indian manufacturers into action.

Speaking to Mercom, an industry source said, “Large quantities of Chinese solar modules have been detained in the United States as a consequence of the enforcement of the Uyghur Forced Labor Prevention Act, which prohibits the importation of goods produced by forced labor in Xinjiang. As a result, companies ensure that the modules they procure are ethically constructed and traceable. India, the biggest solar producer after China, would be the chosen supplier.”

India has seen over 9 GW of production lines commissioned in the previous two quarters.

New manufacturing lines with updated technologies have ensured that some module manufacturers

can also bag export orders.

A module manufacturer commented, “We are also setting up larger production units to cater to this new demand. Even mono PERC cells are being manufactured in India.

Markets

Dialogues with overseas developers are underway for a larger supply of Indian modules, which will lead to a further jump in exports, especially to the U.S.”

Moreover, the exporters say they currently have a better value realization in the U.S. market than the Indian buyers.

Harsh Jain, Director at Citizen Solar, a Gujarat-based solar module manufacturer, said, “U.S. consumers are favoring India because we are the second-biggest manufacturer of solar modules. The domestic module manufacturers also have a marginal markup improvement when exporting to the U.S.”

Jain added that India would soon emerge as the preferred module supplier to the World Bank and International Monetary Fund (IMF) projects as they strive to increase renewables share in African and Latin American countries. Further, India could replace Chinese module suppliers in the European market going forward, which will open another avenue for Indian modules, he said.

Rising exports: a threat to domestic supply?

The exponential export growth is mainly due to the low-base effect, which means the numbers in terms of capacity are relatively small at about 400 – 500 MW in the previous quarter.

A module manufacturer said he doesn’t see exports disrupting domestic supply in the medium or long term.

“The manufacturing capacity is being built, and it will take time for the production to assume scale. However, a substantial amount of the current capacity has been booked for the exports market because of better value proposition in the U.S.,” the manufacturer said.

Moreover, the Indian manufacturers are positioned to ramp up capacity when domestic demand picks up, negating any fear of supply disruption for the developers.

“I don’t think there will be a shortage. Manufacturers who initially wanted to set up a 1 GW manufacturing unit are now planning 1.5 -2 GW capacity. Most developers are also not running at their total production

capacity,” a manufacturer said. Additionally, many manufacturers installing new manufacturing lines with imported machinery are obligated to export a certain share of their production under the Export Promotion Capital Goods (EPCG) Program. This allows them to claim duty benefits under the plan.

domestic availability because new manufacturing capacities are coming online rapidly to offset any outgo.”

An initial probe by the U.S. Department of Commerce found that Chinese solar manufacturers are evading antidumping and countervailing duties by assembling solar cells and modules in Southeast Asia before shipping them to the U.S. If proven guilty, it could have a significant impact on Chinese exports to the U.S., which could ultimately result in better prospects for Indian exports.

“There are no capital equipment manufacturers in India currently, so we have no choice but to import. We need domestic players in the area to achieve total self-reliance,” a manufacturer said.

Speaking to Mercom, a major solar project developer, said, “Developers are facing a problem with the pricing of Indian modules because they at part with Chinese modules including the BCD. But in terms of volume, higher exports haven’t made any dent on

The Inflation Reduction Act (IRA) and President Biden’s commitment toward growing a quintessentially “made in America” clean energy industry has spurred billions in investment from private companies in solar and other renewable sectors.

In its short-term energy outlook, the U.S. Energy Information Administration forecast that the solar capacity will grow by around 21 GW in 2022 and 25 GW in 2023.

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

Solar module exports surged 642% yearover-year in the JulySeptember period

Corporate Funding for Solar Sector Reaches $24 Billion in 2022

The rise in demand for solar influenced by various geopolitical events has boosted investments in the sector with a record number of solar companies acquired and the second-best year on record for solar project acquisitions

By : Arjun Joshi

Global corporate funding for solar companies, including from venture capital, private equity, debt financing, and public markets, amounted to $24.1 billion in 2022, a decrease of 13% yearover-year (YoY).

However, the solar sector also saw a 20% YoY increase in the number of deals in 2022, according to Mercom Capital’s 2022 Solar Funding and M&A Report.

“The war in Ukraine has accelerated demand for solar around the world, and the Inflation Reduction Act has boosted the sector in the U.S. In 2022, we saw record venture capital and private equity funding. Solar companies were acquired in record numbers, and solar projects saw their second-best year for acquisitions,” commented Raj Prabhu, CEO of Mercom Capital Group. “But we are beginning to see higher interest rates bite into financing activity

which resulted in lower public and debt financing in the second half of the year.” The solar sector received $7 billion

in venture capital and private equity funding in 2022, a jump of 56% YoY. This is the highest annual funding for

Solar Top VC Funded Companies in 2022

Source: Mercom Capital Group

the solar sector since 2010. Additionally, there were 21 deals of $100 million or more in the sector this year.

Out of the $7 billion raised in 90 venture capital deals, $5.9 billion (84%) went to 62 solar downstream companies. Solar PV companies raised $864 million, the balance of system companies raised $83 million, thinfilm technology companies raised $76 million, service providers raised $44

Solar Top M&A Transactions in 2022 Company

million, and concentrated solar power companies raised $13 million.

Intersect Power topped the list with the highest venture capital funding at $750 million. The other top-funded companies were Longroad Energy, with $500 million, Yellow Door Energy, with $400 million, Palmetto, with $375 million; and Aspen Power Partners and Agilitas Energy, both with $350 million.

Public market financing for the solar

sector totaled $5.1 billion, a decline of 32% YoY. The biggest deal of 2022 was the initial public offering of JinkoSolar Holding Co’s main subsidiary, Jinko Solar, which raised $1.57 billion.

Debt financing for the solar sector amounted to $12 billion, a decrease of 24% YoY. Securitization deals significantly contributed to the debt financing activity in 2022, with 12 deals raising a total of $3.1 billion.

Source: Mercom Capital Group

The solar sector received $7 billion in venture capital and private equity funding in 2022

A total of 128 mergers and acquisition (M&A) deals were recorded in the solar sector, the highest number since 2010. Among these deals, eight exceeded $1 billion each.

The majority of M&A deals were in solar downstream companies. The most significant transaction of the year was German power company RWE’s acquisition of Con Edison Clean Energy

Businesses for an enterprise value of $6.8 billion.

There were 268 acquisitions of largescale solar projects, a decrease from the 280 transactions from last year. The acquired projects had a total capacity of 66 GW, with project developers being the most active acquirers, taking on 35.7 GW. The total capacity of the acquired projects was the second highest ever.

C&I Consumers Lead Open Access Solar Surge in Andhra Pradesh

Based on the growing demand for captive projects, Andhra Pradesh has moved up in the pecking order for open access solar installations

By : Rakesh Ranjan Parashar

Arevival of interest from the industry in Andhra Pradesh to source solar energy through open access has seen installations surge by 450% quarter-over-quarter (QoQ) to 75.3 MW in the third quarter (Q3) of the calendar year (CY) 2022.

The open access capacity addition has been boosted by faster approvals from state-owned power distribution companies (DISCOMs).

Further, the high DISCOM tariffs have pushed industries to adopt solar open access in large numbers. The C&I entities have been increasingly opting for captive and group captive projects for solar open access due to significant savings on energy costs.

“Earlier, approvals were not being granted for open access projects in

Andhra Pradesh, which was one of the reasons why the developers lost interest. However, with a change in DISCOMs’ approach combined with high retail tariff, there is a renewed interest in open access solar projects,” said a top executive of a leading open access developer.

High DISCOM tariffs have pushed industries to adopt solar open access

Textile, cement, and battery manufacturing units were the primary open access consumers in the state during the quarter.

Andhra Pradesh was fourth on the list of solar open access installations in Q3 2022.

The top five states accounted for 83% of the total installations during the quarter.

The numbers were revealed in the Mercom India Solar Open Access Market Report Q3 2022.

Energy cost matrix

The captive and group captive mode of solar open access can cut down the energy cost to as low as ₹2 (~$0.024)/ kWh, which is 26% to 37% of the retail tariff, depending on the type of consumer. The massive reduction in tariff makes the energy procurement solutions instantly attractive for C&I consumers even with the upfront investment.

“The open access charges include the cross-subsidy surcharge and the additional surcharge, but these charges are not applicable for captive projects. This is one of the main reasons for the growth of open access, especially captive projects,” a developer who has executed projects in the state said.

For FY23, the Andhra Pradesh Southern Power Distribution Company (APSPDCL) has set a cross-subsidy surcharge of ₹2.60 (~$0.032)/kWh for 33 kV commercial consumers. It is 4% higher than ₹2.50 (~$0.031)/kWh set by the Andhra Pradesh Eastern Power Distribution Company (APEPDCL) for 132 kV commercial consumers.

The prevalent retail electricity tariff (FY23) in the state ranges between ₹7 (~$0.085)/kWh and ₹7.65 (~$0.093)/kWh for the C&I segment.

When third-party open access projects are considered, the average solar open access tariff goes up to around ₹5.29 (~$0.064)/kWh. This

mode is more expensive as it includes a cross-subsidy surcharge and an additional surcharge for using DISCOM infrastructure to wheel power.

Even under the third-party model, the average tariff is nearly 25% lower than the lowest retail tariff for commercial consumers. Third-party solar open access provides an option for businesses not keen on investing in solar projects but still want to procure green energy.

“Andhra Pradesh offers banking facility, which is also playing its part in facilitating the growth of solar open access in the state,” another developer said.

Future prospects

The momentum in solar open access growth in the last quarter is likely to be sustained by Andhra Pradesh, considering the state’s large project pipeline.

In terms of cumulative installations,

Andhra Pradesh became the fifth largest state, with a share of 6.5% of the total installations in the country as of September 2022, surpassing Rajasthan.

“Things have been improving in Andhra Pradesh in terms of open access installations, but it will take a while before it catches up with states like Karnataka and Maharashtra. While the state is trying its best to position itself as one of the favored destinations of open access solar, there is still some skepticism regarding long-term open access approvals by DISCOMs,” said an executive from another developer.

The state has a good potential for the growth of open access in the near future. However, the cross-subsidy surcharge of ₹2.60 (~$0.032)/kWh and the DISCOMs’ reluctance to give quicker approvals for long-term open access might compromise future growth prospects.

India’s Cumulative Wind Installations Reach 42 GW

Wind power installations in India have been patchy owing to inherent challenges in the sector

By : Gourav Mishra

Total wind capacity installations in India increased year-over-year (YoY) by 8%, with 229 MW added in the fourth quarter (Q4) of 2022 against 212 MW installed during Q4 2021. However, installations fell by 74% quarterover-quarter (QoQ) from 878 MW in Q3 2022.

The QoQ decline is largely attributable to the commissioning of unusually high capacity in Q3 when several pending projects from Q2 rolled over to the subsequent quarter. QoQ fluctuations, both up and down, are relatively common depending on project deadlines, delays, and supply chain constraints.

The country’s cumulative wind installations by the end of Q4 stood at 42 GW compared to 40 GW during the same period last year.

Wind installations in Tamil Nadu and Gujarat followed the growth trajectory from the previous quarter by adding 23.7% and 23.5% of the country’s new capacity additions. These states were ranked the top two adding 99.3 MW and 98.6 MW of capacity in Q4, respectively.

Karnataka, Maharashtra, and Rajasthan occupied the next three spots on the list, with cumulative capacity addition of 149.5 MW in the last quarter of 2022. In absolute terms, Karnataka, Maharashtra, and Rajasthan added 52.6 MW, 50.1 MW, and 46.8 MW of new wind capacity, respectively.

Andhra Pradesh ranked sixth, accounting for 9.8% of India’s total wind capacity additions during the quarter by adding 40.9 MW of new capacity.

Madhya Pradesh accounted for almost 37% of total installations in the previous quarter. The State topped the list of states for highest capacity additions, but it ranked seventh during Q4 by adding 28.4 MW of new capacity.

The Ministry of New and Renewable Energy (MNRE) recently decided to scrap the e-reverse bidding mechanism introduced in 2017. Reverse bidding has been held as the main reason for dwindling installations by making projects unviable for developers who engage in aggressive bidding.

MNRE also said it has decided to issue 8 GW of wind capacity tenders annually beginning this year and will continue through 2030.

Ministry Pushes for Accelerated Rooftop Solar Adoption

In a letter to the state regulatory bodies and DISCOMs, the MNRE reiterated the importance of expediting rooftop solar adoption in the country and emphasized the state's role in enabling it

By : Arjun Joshi

The Ministry of New and Renewable Energy (MNRE) has written to State Electricity Regulatory Commissions (SERCs) and power

distribution companies (DISCOMs) across the country, reiterating that they must expedite the implementation of the processes laid out under the Electricity (Rights of Consumers) Rules, 2020,

which the Ministry of Power notified. The rules provide an enabling framework for making rooftop solar installations attractive to consumers by providing fast approvals and imposing

fines for violating consumer rights.

The ministry said delays discourage consumers from contributing to the national goal of achieving 500 GW of capacity from non-fossil sources by 2030 and also violate the right of consumers.

The inordinate delay by state regulators and other related agencies is part of the reason for India’s poor performance in rooftop installation.

The country has a cumulative installed rooftop solar capacity of 8.3 GW at the end of September against a target of 40 GW by 2022. Due to the inability to achieve this target, the ministry extended the grid-connected rooftop solar program until March 31, 2026.

In Parliament, Union power minister R.K. Singh said the COVID-19 pandemic significantly impacted the program’s implementation, causing DISCOMs and state implementing agencies to request extensions for project execution.

He noted that the other obstacles that led to the reduced number of installations were the revenue loss for DISCOMs, delays in approvals and installations of net/gross meters,

and lack of awareness.

In comparison, India has installed 45.6 GW of utility-scale solar capacity to date, 14.4 GW shy of meeting the target of installing 60 GW by 2022.

The ministry has also developed a national portal to facilitate the simplified process of installing rooftop solar systems in residential premises. Since its launch, the portal has registered more than 79,000 residential consumers and received more than 31,000 applications for rooftop solar installations.

The ministry issued a new subsidy program for rooftop solar systems, extending the subsidy for systems above 10 kW. The subsidies will be deposited into the bank accounts of residential consumers after the installation and inspection of the system have been completed.

However, technical feasibility approval has only been given to around 6,500 of these consumers, and some DISCOMs have not initiated the approval process, leading to delays of several months.

The rules notified two years ago require the Commissions to notify

standards of performance (SOPs) and determine the compensation to be paid to consumers by DISCOMs for violating SOPs. The regulators are also required to notify regulations for the compensation mechanism within six months.

These rules also require the DISCOMs to facilitate the process of setting up renewable energy systems by creating an online portal and mobile app with detailed information and an application tracking mechanism.

It further mandates that the metering and commissioning of the renewable energy system must be completed within 30 days from the submission of installation information by the prosumer.

If DISCOM fails to meet this timeline without a reasonable cause, it will have to pay compensation to the consumer at a rate of at least ₹500 (~$6) per day for each day of default.

India installed over 1.2 GW of rooftop solar capacity in the first nine months of the calendar year 2022, a decline of 11% year-over-year, according to the Mercom India Rooftop Solar Market Report Q3 2022.

Policy

Odisha’s New Renewable Energy Policy

Odisha announced its new renewable energy policy with a marked emphasis on promoting open access model in the state and extends various provisions for the installation of other renewable energy sources

By : Rakesh Ranjan Parashar

The Odisha government has released its renewable energy policy, which aims to provide the necessary impetus to the solar sector and accelerate its adoption in the state.

The policy has outlined the state’s intention to promote renewable energy consumption, especially through captive and open-access modes. It has announced a slew of exemptions to attract industry and businesses from across the country.

The policy intends to promote solar parks having a minimum capacity of 25 MW to reduce the cost of generation and the associated infrastructure.

It will remain in force until March 31, 2030, or until the state government announces a new policy.

Exemptions for Captive/Open Access Consumers

The state government will extend a ₹0.50 (~$0.006)/kWh concession on electricity duty to captive and open access consumers of renewable energy, along with energy storage projects.

It will be available for 15 years from the commissioning of the projects.

Further, a 50% exemption would be applicable on the cross-subsidy surcharge for 15 years from the commissioning dates of projects.

Along with this, an exemption of ₹0.20 (~$0.002)/kWh on state transmission utility (STU) charges will be available for 15 years.

If the project is commissioned before

March 31, 2026, the STU exemption will be extended for five more years, amounting to 20 years in total.

Further, the policy provides a 25% reduction in wheeling charges for consuming energy from projects commissioned in the state for 15 years.

The government has also stated that the government land earmarked for the industry under the ‘Land Bank’ program will be allotted for renewable energy projects.

Rooftop Solar

The Odisha Renewable Energy Development Agency (OREDA) will aggregate the demand from various government departments and conduct bids to facilitate rooftop solar deployments on government buildings.

All the distribution companies (DISCOMs) in the state would procure the power at the tariff determined by the Odisha Electricity Regulatory Commission (OERC).

The subsidies will be provided to rooftop consumers per the guidelines of the central or state government.

Distributed Solar

The policy would promote the solarization of existing irrigation pumps under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program.

Further, the government plans to deploy technologically advanced solutions like agri-PV to allow maximum land utilization by combining agricultural production with energy generation on the same land.

Floating Solar

The projects will be developed on a build, own, and operate basis, and the sites will be awarded for an initial period of 30 years and may be extended by five more years per the state government’s approval.

Solar-based EV Charging Stations

The nodal agency will propose appropriate mechanisms to avail solar power for electric vehicle (EV) charging under non-park solar and rooftop solar mechanisms.

Solar installations for EV charging will be eligible for a 50% concession on land lease payment for the first 50 MW of installations during the policy period.

Wind

The wind projects in the state will be awarded on a first-come, first-serve basis. No windmills will be allowed to be set up within 1 km of any habitation having ten or more households.

The nodal agency will allot identified sites to public and private sector units, with each entity getting a maximum of 50 MW capacity up to a cumulative total of 500 MW.

Such a cap of 50 MW for an entity will not apply to state and central public sector units.

OERC may determine a generic tariff for all wind projects allotted under the mechanism and commission before March 31, 2028.

Large Hydro

If the project is not awarded to any public sector units or their joint ventures, the nodal agency will conduct a competitive bidding process for selecting the developers to develop identified projects.

GRIDCO will procure the full

permitted during peak hours.

Power Transmission Corporation would be encouraged to install battery energy storage systems to mitigate the challenges posed by the intermittent nature of power from renewable sources.

deployment of mini and microgrids in remote areas with intermittent supply.

Renewable Purchase Obligation

for the renewable purchase and energy storage obligations until FY30 based on the order passed by the Ministry of Power.

SMART &

for High Power PV Modules

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

Direct Benefit Transfer of Electricity Subsidies

The Ministry of Power is considering a direct benefit transfer of subsidies into the consumers’ bank accounts to keep the cross-subsidy surcharge escalation in check

By : Sumit Jha

The Ministry of Power is considering changes in the tariff policy that will allow the state governments to provide subsidies to eligible categories

of consumers directly into their bank accounts by way of direct benefit transfer. It would enable the state regulatory commissions to determine tariffs without accounting for the subsidy component.

The ministry said that the intention behind the proposed move is to ensure that the cross-subsidy surcharge (CSS) component of the tariff does not keep escalating over time to cover the higher

subsidies provided to retail consumers.

“Any subsidy to be given to any category of consumers shall be given by way of Direct Benefit Transfer directly into the bank account of the consumer or their consumer account with the distribution licensee to be reflected in the electricity bill of the consumer,” the ministry said.

The ministry was responding to a suggestion from parliament’s standing committee on energy. The committee report was tabled during the winter session.

The CSS is usually recovered from industrial consumers and can often be as high as a third of the total tariff, making the domestic industries globally uncompetitive due to high input costs.

Further, the ministry said that the amendment in the Electricity Rules is proposed to make a provision that the surcharge should not exceed 20% of the

average cost of supply.

The Committee also recommended streamlining the consumers broadly into five major categories: domestic, agriculture, commercial, industrial, and institutional as a means of uncluttering the complex structure of tariff determination and ushering in transparency into DISCOMs finances.

“Under these broad categories, it is proposed to sub-categorize the consumers on the basis of voltage. The domestic category may have within itself three subcategories: cross-subsidizing, cross-subsidized, and cross-subsidy neutral,” it said in the report.

The ministry said in response that it was aware of the need to simplify and rationalize the tariff structure. It added that it was considering a host of measures in the revised draft Tariff Policy to achieve the objective. These include basing the price of electricity on the cost

of supply, which primarily depends on the voltage of supply, connected load, and energy consumed.

The proposed changes would do away with prescribing individual category/ sub-categories for a temporary supply. Such supply may be provided at a fixed multiple of the cost for specific categories.

The ministry is also considering progressively merging existing categories/ sub-categories. “In addition, a separate category for EV charging stations may be created, if required,” the ministry said.

The commercial and industrial (C&I) segment has been gradually moving toward procuring renewables, especially solar, through open access under captive and group captive modes. The regulations allow exemption of cross subsidy surcharge on such energy consumption besides delivering green energy to the C&I base.

A Sodium-Sulfur Battery Four Times More Potent than Lithium-ion

By : Gautamee Hazarika

Researchers at the University of Sydney claimed to have developed a new, lowcost sodium-sulfur battery with four times the energy capacity of lithium-ion batteries. The success of the technology could significantly

reduce the cost of transitioning to a decarbonized economy.

The new battery has been designed to provide a high-performing solution for large-scale renewable energy storage systems while reducing operational costs.

The research involved contributions from researchers at Chongqing University, the University of Adelaide, the University of Wollongong, the Chinese Academy of Sciences in Beijing, and the University of Science and Technology China.

Lead author Shenlong Zhao, from the School of Chemical and Biomolecular Engineering, University of Sydney, said, “This is a significant breakthrough for renewable energy development which, although it reduces costs in the long term, has had several financial barriers to entry.”

Sodium-Sulfur Battery

The battery was constructed using sodium-sulfur (Na-S), a type of molten salt that can be processed from seawater, which costs much less to produce than lithium-ion.

The widespread use of sodium sulfur has been limited because of its low energy capacity and short life cycles.

The team noted that using a simple pyrolysis process and carbon-based electrodes could improve the reactivity of sulfur and the reversibility of reactions between sulfur and sodium.

The researchers said this could, in turn, enable the battery to get rid of its formerly sluggish reputation and exhibit high capacity and long life at room temperature.

The Na-S battery is claimed to be a more energy-dense and less toxic alternative to lithium-ion batteries, which is both expensive to manufacture and recycle.

The lead author noted that storage solutions that are manufactured using plentiful resources like sodium have the potential to guarantee greater energy security and allow more countries to join the shift toward decarbonization.

The lab-scale batteries have been successfully fabricated and tested in the University of Sydney’s chemical engineering facility.

The research was funded by the Australian Research Council, the National Natural Science Foundation of China, Fundamental Research Funds for the Central Universities, and the Ministry of Science and Technology China.

Indian Solar Module Manufacturing Capacity to Reach 95 GW by 2025

According to a recent report by Mercom India, solar module manufacturing in India is expected to grow multi-fold, given the increasing demand, evolving tech, and supporting government policies

By : Arjun Joshi

Tndia’s solar photovoltaic (PV) module manufacturing capacity exceeded 39 GW at the end of September 2022 and is expected to reach ~95 GW by the end of the calendar year (CY) 2025.

The findings are a part of Mercom India Research’s newly released report, ‘State of Solar PV Manufacturing in India.’

The report provides a detailed account of the Indian solar PV module manufacturing landscape and identifies the challenges and opportunities for manufacturers and their evolving role in the global solar industry with capacity and technology development during the coming years.

“With an estimated 220 GW of solar capacity required by the end of the decade, India needs significant manufacturing capacity ramp up,” commented Priyadarshini Sanjay, Managing Director of Mercom India.

India had a solar cell manufacturing capacity of approximately 4.7 GW as of September 2022. This is expected to increase seven-fold by the end of CY 2024.

States have been promoting the development of domestic solar manufacturing by offering various fiscal and non-fiscal incentives under

industrial, electronics, and solar policies. The government’s Production Linked Incentives (PLI) program further encourages the vertical integration of new capacity.

By the end of 2024, large amounts of polysilicon, ingots, and wafers will be added to the market by the companies awarded incentives under the first round of the government’s PLI program. Additionally, the pending allocations under the second round of the PLI program would significantly enhance the domestic value chain for PV manufacturing.

Gujarat housed the majority of solar module and cell manufacturers. It is expected that the state will remain the major producer of PV products for the next 2-3 years.

“The government of India is determined to develop India as a

manufacturing hub for solar modules, establishing the complete value chain to address supply chain issues. Manufacturers planning expansion are considering the lucrative export market along with the domestic demand. However, developers and installers need short-term and long-term visibility to develop a viable sourcing strategy,” said Sanjay.

Since 2018, Indian manufacturers have consistently met the demand for solar modules in the United States, South Africa, and the United Arab Emirates.

India had a total installed solar power capacity of around 60 GW as of September 2022. China, the U.S., the EU, and India are poised to add significant solar power generation capacities over the next decade.

The leading global markets are beginning to shift away from mono PERC technologies as newer technologies like TOPCon and HJT are entering mass production and becoming more widely available.

Indian module manufacturers are starting to build large-scale facilities for producing TOPCon, thin film, and HJT modules, which are expected to be widely available in the market by 2025.

Solar cells and modules using M10

The solar cell manufacturing capacity is expected to increase sevenfold by the end of 2024

and M12/G12-sized wafers are expected to gain a significant market share over the next 2-3 years.

A comparative analysis of global and Indian PV technology evolution in the report will help companies chart their

business growth in line with the global solar industry trends.

The report analyzes the price competitiveness of Indian solar module manufacturers compared to the imports, along with detailed coverage

of policies impacting the domestic PV manufacturing industry and a complete understanding of the manufacturing expansion, vertical integration, and export scenario to plan their investments and procurement.

SUBSCRIPTION FORM

Get your monthly dose of news and analysis of Renewable Energy sector. Subscribe to “Mercom India Magazine” today and get a copy of it delivered right to your door step. Below table gives you the yearly subscription charges. If you wish to subscribe, fill out the form below.

Please provide the following details: I would like to subscribe to the Mercom India Magazine for _________ issues.

For inquiries, contact:

Contact Person: Supam Panja Phone: +91 96064 52984

Email: supam@mercomindia.com website: https://mercomindia.com/

Policy

Haryana’s Renewable Purchase Obligation Trajectory

The HERC amended the RPO policy to align it with the regulations issued by the Ministry of Power to include wind energy and energy storage obligations and add solar under the other RPO category

By : Arjun Joshi

The Haryana Electricity Regulatory Commission (HERC) has amended its renewable purchase obligation (RPO) policy to include wind energy in the RPO and move solar energy into the ‘other RPO’ category.

The changes are in line with the regulation issued by the Ministry of Power (MoP).

Since the RPO targets for the financial year (FY) 2023 are based on the current trajectory specified in the HERC’s 2021 renewable regulations, the new RPO trajectory will be effective from FY24.

According to the regulator, the RPO for wind energy will be fulfilled by energy produced from wind projects commissioned after March 31, 2022. The RPO may also be satisfied by the excess wind energy consumed beyond 7% of total energy consumption from wind projects commissioned before March 31, 2022.

Further, any shortfall in achieving other RPO in a year can be met with the excess energy consumed from wind power projects commissioned after March 31, 2022. This wind power must be beyond the wind RPO for that year.

A separate category for wind RPO is expected to boost wind installations and bring down the cost of power generated from wind projects.

The regulator said that the

hydropower purchase obligation (HPO) could only be satisfied by energy produced from large hydro projects (LHP), including pumped hydro projects (PHP), that were commissioned after March 8, 2019.

The other RPO obligation can also be met from excess energy consumed from eligible projects, including PHP, commissioned after March 8, 2019, beyond the HPO for that year or partly from both.

Any shortfall in achieving wind RPO in a year can be met with excess energy consumed from hydropower plants, which is more than the HPO for that year and vice versa.

Hydropower imported from outside India will not be considered for meeting HPO.

Energy Storage Obligation

The Commission has also notified the percentage of the total energy that

Haryana: Proposed Renewable Purchase Obligation (RPO) Trajectory up to FY 2030

Source: HERC Mercom India Research

can be consumed from solar and wind projects with storage.

The Energy Storage Obligation (ESO) will be calculated in energy terms as a percentage of the total consumption of electricity and treated as fulfilled only when at least 85% of the total energy stored in the energy storage system (ESS) is procured from renewable energy sources annually.

The ESO will be reviewed periodically, considering the commissioning of PHP. ESO has been added to accommodate commercially viable energy storage technologies and reduce the cost of battery energy storage systems.

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

Total Energy Consumption from Solar and Wind Projects with Energy Storage for Up to FY 2030

Source: HERC Mercom India Research

Punjab Promotes Green Energy Open Access

The state issued an amended draft to its intra-state open access regulations, outlining the charges and scheduling regulations to promote renewable open access adoption in the C&I sector

By : Arjun Joshi

The Punjab State Electricity Regulatory Commission (PSERC) has notified the draft PSERC (Terms and Conditions for Intra-State Open Access) (10th Amendment) Regulations, 2022.

The state’s regulations have incorporated provisions notified by the Ministry of Power and include several provisions to promote renewable open access in the state and boost renewable adoption in the commercial and industrial (C&I) sector.

Standby charges

Wherever an agreement for standby power exists between an open access customer and the distribution company (DISCOM), the consumer must pay

₹35 (~$0.43)/kVA per month towards commitment charges on the capacity (in kVA).

Green energy open access consumers can opt to avail of standby power for up to 60 days in a financial year by paying ₹50 (~$0.61)/kVA per month or up to 80 days for ₹60 (~$0.73)/kVA per month.

The green energy open access customers must exercise the option when entering a standby agreement with DISCOM.

The commitment charges will apply every month commencing from the date of applicability of the agreement, irrespective of whether the open access customer avails standby power or not.

Fixed charges and energy charges for green energy open access consumers

will be 1.25 times the relevant consumer tariff category corresponding to the demand slab of the total standby and sanctioned contract demand.

If green energy open access consumers notify the standby arrangement to DISCOM at least twentyfour hours before the time of delivery of power, standby charges will be the same as the consumer tariff.

Scheduling

Only consumers with a sanctioned contract demand of 100 kVA and above will be eligible to procure power through open access according to the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022.

There must be no demand limit for a captive user taking power through green energy open access.

The quantity of drawal of electricity by open access consumers−except green energy open access consumers− from the DISCOM during any time block of a day must not exceed the permissible drawal limit of such time block wherein the schedule for open access drawal is the maximum.

Green energy open access consumers must restrict the total drawal from open access and DISCOM up to the total sanctioned contract demand.

The maximum admissible drawal in any time block during the day must be the difference between sanctioned contract demand and scheduled entitlement.

Green open access consumers must not change the quantity of power consumed through open access for at least twelve consecutive time blocks of 15 minutes time intervals during a day.

Banking Charges

Banking of power will be allowed throughout the year as per the terms approved by the Commission from time to time and on payment of banking charges to compensate DISCOM for an additional cost on this account.

Drawal of banked energy will not be allowed during the peak seasonal period from June 1 to September 30 and during peak load hours.

The permitted quantity of banked energy by green energy open access consumers must be up to 30% of the total monthly electricity consumption from DISCOM.

The excess energy banked must be treated as dumped energy and will not be carried forward to next month.

Banked energy can be carried forward month-to-month until the end of the financial year.

The banked energy that remains unutilized at the end of the financial year will lapse, and no compensation will be paid for such lapsed banked energy.

The state load despatch center must maintain the energy account of all banking transactions.

Additional surcharge

An additional surcharge will not apply to power produced from a waste-to-energy project, which is supplied to a consumer through open access.

The charge will also not apply if green energy is used to produce green hydrogen and green ammonia.

Cross subsidy surcharge

Consumers who purchase energy from renewable projects will not have to pay more than a 50% increase in the surcharge for a period of 12 years from the date the project began operating.

Cross subsidy surcharge will not apply to power produced from a wasteto-energy project and is supplied to a consumer who has open access.

The surcharge will also not apply if green energy is used to produce green hydrogen and green ammonia.

Imbalance charges

Power supply to open access consumers can be over and above the sanctioned contract demand provided

the consumer has taken permission from DISCOM.

In such a case, a consumer will be allowed to draw the total load equivalent to the sum of scheduled entitlement− limited to actual injection− and sanctioned contract demand as a DISCOM consumer.

The total admissible drawal from the DISCOM in any time block during the day in such cases will be limited to the sanctioned contract demand.

Out of the recorded drawal, the scheduled entitlement as an open access customer will first be adjusted, and the balance will be treated towards sanctioned contract demand of the consumer.

If the recorded drawal of a consumer exceeds the admissible drawal or sanctioned contract demand, the consumer must pay a demand surcharge daily as per the applicable schedule of temporary supply for the relevant category.

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

Delhi’s Proposed Policy Targets 6 GW of Solar

By : Gautamee Hazarika

The Delhi Government has released a draft solar policy that targets 6,000 MW of installed solar capacity in the next three years and envisages a three-fold jump in solar energy share in annual electricity demand to 25% by 2025 from 9% currently.

The operative period of the policy will be three years.

Deputy Chief Minister of Delhi Manish Sisodia said that the new policy would address the issue of pollution and generate over 12,000 new green jobs.

Monetary incentives

The policy will create a unified single-window portal managed by the Delhi Solar Cell, which will provide information on the benefits of solar PV systems, process-related guidelines, and timelines.

Monthly generation-based incentives (GBI) will be provided for residential, group housing societies (GHS), and residential welfare associations (RWAs), along with the commercial and industrial (C&I) consumers for five years from the date of commissioning of the system, provided that it is commissioned within the operative period of the policy.

The GBI will be provided at the rate of ₹3 ($0.036)/kWh for residential solar systems up to 3 kW, ₹2 ($0.024)/kWh for residential solar systems above 3 kW, and up to 10kW.

For system capacity in the 10 kW500 kW range, the GBI offered by the Delhi government stands at ₹2 ($0.024)/kWh for GHS and RWAs.

An early-bird GBI of ₹1 ($0.012)/ kWh will be offered for the first time for C&I consumers for the first 200 MW of solar deployment.

Further, residential consumers will be provided a subsidy at the rate of ₹2,000 ($24.16)/kW up to a maximum of ₹10,000 ($120.82) per consumer.

Additionally, taxes and duties will not be levied on generation from rooftop solar, whether for selfconsumption or supplied to the grid.

More Options for Consumers

To increase the uptake of rooftop solar, the policy also encourages new deployment models such as Hybrid RESCO (renewable energy service company), community solar, and peerto-peer trading.

The Hybrid RESCO model enables consumers to access the net metering benefits of solar without making any upfront capital investment by simply signing an agreement with their distribution company.

Further, the Community Solar program will allow consumers who do not have a suitable roof for installing a solar system to own a part of a larger system set by a developer within an

available land parcel in Delhi.

Peer-to-Peer trading will encourage owners of solar energy systems to sell their excess generated electricity in real-time via a P2P energy trading platform. Sisodia pointed out that the deployment of solar plants on all state government properties with a rooftop area of 500 square meters or above is now mandatory. It will be carried out in a phased manner and be completed within the operative period of this policy.

The Delhi government has issued draft solar policy which will be effective for the next three years and aims to accelerate solar adoption in the residential segment

Narayana Health Goes Green, Reaps Huge Savings

arayana Health, a multispecialty hospital, heart center, and primary care facility chain with a presence across 18 cities in India, has saved over ₹40 million (~$482,946) in 2021 by adopting renewable energy to power most of its operations in India.

The commercial and Industrial (C&I) segment in India has seen a rapid increase in renewables adoption to save on energy costs as well as to deliver on sustainability targets.

According to Mercom India’s Solar Open Access Market Report Q3 2022, India installed around 1.9 GW of open access solar capacity in the first nine months of the calendar year 2022, an increase of 96% year-over-year, with a majority of projects set up for units in the C&I segment.

Mercom India spoke to Ashok Kumar, ESG Manager at Narayana Health, to understand the various benefits the hospital chain has experienced since it transitioned to renewable energy.

What benefits have you seen after adopting renewable energy?

We at Narayana Health group operate

over 39 specialty hospitals, heart centers, and clinics across India. Our overall renewable energy consumption is around 32%, which includes 21% from solar, 8% from hydropower, and 2% from wind. We have switched to renewables at four of our locations. One of them is for the specialty hospital in Jammu, where we use hydropower; the second one is in Mysore, where the energy is also supplied by a hydropower project. At our Bangalore facilities in the Health City premises, we use solar for 80% of our energy needs, and around 5 to 10% is supported by wind energy. In the absence of either, we consume energy generated from the hydropower project. So far, the group has been able to save approximately ₹35-₹40 million (~$422,580 – $482,946) annually so far. We plan to add to increase our renewable energy consumption in the coming year, which would add another 1% of savings to the total amount.

What challenges did Narayana Health face when switching to renewables?

The decision-making part was the easier one as the savings were evident,

plus we have the ESG fulfillment and climate emergency requirements set for the group. Our buildings lack the rooftop space to set up systems for consumption, so we are dependent on procuring power from solar or wind parks. Certain states in India discourage acquiring power through open access due to various reasons. Also, there is a scarcity of investors and developers in most of the states, due to which the state governments also don’t encourage renewable energy project development. Most businessmen go for higher and faster profitability, overlooking investments in renewables. If the private equity funds, along with financial institutions and private renewable project developers, work hand in hand with the state governments, it will make transitioning to clean energy much easier for a lot of C&I consumers in India.

What should consumers keep in mind when making the switch to renewables?

Renewable energy is the only option for organizations to source low-cost power, as government tariffs are

A renowned hospital group shares with Mercom India the benefits it has experienced since it transitioned to renewables for its energy needs

always increasing. Depending on the investment preference, they can choose from different models. There are CAPEX and OPEX models – CAPEX is where the organizations have enough capital to invest in one go and earn more savings in the long term. Companies who don’t wish to invest a huge amount upfront can opt for the OPEX model, where the power will be supplied at a unit rate, providing savings on monthly power bills.

The OPEX model varies from state to state, and consumers are usually charged additional open access charges. For CAPEX, consumers can opt to invest

100% equity, or the minimum required 26% depending on the capital available, which helps them save on the wheeling and cross-subsidy charges. Generally, organizations opt for the 26 to 30% minimum equity investment, and the remaining is added by the project developers. CAPEX savings can range from 20 to 40% and OPEX 20%.

What motivated Narayana Health to switch to renewables?

We are a group of hospitals with multiple specializations, which require a constant supply of electricity to operate various equipment. We had to optimize

our costs first, energy costs being the major contributor to it, so that we could continue to offer affordable healthcare. This was the biggest motivator for us to switch to renewables. With energy costs going down, overall costs for the group have also seen a decline. This has also helped to maintain our costs in the face of untimely inflation. By adopting renewable energy for our operations, we also voluntarily support the DISCOMs in the state we operate in, to meet their renewable energy compliances. Also, the encouraging regulations in the states have helped in ensuring a smooth transition.

Renewables Tender Trajectory Key to Long-Term Planning

By : Satish Shetty

Stakeholders in India’s renewables sector have called for a pre-determined calendar for tenders so that the resultant certainty can help companies plan their finances and manage supply chain constraints more efficiently.

Businesses generally thrive in a policy and regulatory environment that fosters certainty, but the renewables sector has had to contend with central and state governments and their myriad departments and agencies issuing tenders randomly.

Amit Jain, Managing Director at ENGIE India, said that as the country targets a capacity addition of 500 GW of renewable capacity by 2030, the availability of a scheduled tender trajectory is essential.

“The government, in order to facilitate further investment from foreign firms, could consider sharing a bidding trajectory that will help the foreign firms to effectively plan and contribute to accomplishing the ambitious renewable target of 500 GW target by 2030. It would be good to have a trajectory for

tendering for the next few years. That would also help us plan better and be a part of the whole growth story,” he added.

Tender announcements during the third quarter of 2022 were up 144% year-over-year compared to the same period last year, while the corresponding auctions were down by 58%.

The tendered capacity is hard to predict without an official trajectory.

Tender uncertainty leads to higher project costs

Unplanned tenders give very little room for project developers to effectively plan the required finances and secure supplies of modules and other components at competitive prices.

While the government has taken similar steps for offshore wind project tenders, with the Ministry of Power announcing that bids for such projects will be issued in blocks of 4 GW every year for three years, other renewable energy sources still lack such certainty.

Stakeholders said that the state regulators could develop a mechanism for releasing a tender schedule in

The renewables sector has long sought a long-term trajectory when it comes to tenders issued by the government agencies to help plan finances and resources to execute these projects better

advance. The renewable power purchase obligations for individual states are decided much earlier, giving them enough time to plan their procurement and corresponding tenders for them. The regulators can hold the power distribution companies accountable for not adhering to the schedule.

A senior regulatory executive at a multinational renewable energy corporation said, “The agencies come up with tenders with a concise timeline, and they keep on extending it. Eventually, a developer works with rolling and extendable bids. There is a need for a structured tendering schedule, with a bidding timeline of four to six months, giving developers sufficient time to work on the financials to avoid going back and forth.”

A visible tender list will iron out grid connectivity issues

A Mumbai-based renewable energy

developer said, “The gestation period of the projects is normally 12 to 18 months, whereas setting up substations and associated evacuation systems take much longer. States like Maharashtra and Gujarat don’t even provide a time extension for the projects in cases where the connectivity and access are not operationalized within the scheduled time.”

Further, with the policy of mandatory module procurement from the Approved List of Models and Manufacturers (ALMM), the visibility and certainty of upcoming tenders become even more crucial so that developers can tie up module supplies in time.

The success of tenders is highly dependent on the design of the tender, the number, and the nature of the participating bidders. A lack of participation can lead to expensive offers, and large-scale projects risk not receiving any offers.

India’s installed renewable energy capacity, including large hydro projects, stands at 163.7 GW as of the third quarter of 2022, a long way off the 450 GW target the country has set to achieve by 2030. Introducing a tender trajectory would provide a much-needed boost to the installation numbers in the coming years.

“Regulatory agencies should be required to release and abide by tender and auction timetables that tie in with the RPO of each state for a more streamlined, predictable procurement system. India needs to install more than 27 GW of solar per year to meet its 2030 goal, which will be hard to do with the current process of unpredictable tenders. Making this change will add long-term visibility to the markets and help attract more international capital that India sorely needs,” said Raj Prabhu, CEO of Mercom Capital Group.

Technology

Researchers at IIT Kanpur developed organic solar cells using organic polymers, which, when integrated with multi-layered electrodes, offer higher optical transmission and act as a power source

By : Gautamee Hazarika

Researchers at IIT Kanpur said they have developed organic solar cells consisting of a combination of an organic polymer and PCBM — an organic semiconductor — on steel substrates that can possibly convert a steel roof into an energy-producing device.

The researchers developed the devices using the organic polymer PTB7 as a donor and PCBM as an acceptor. The devices were fabricated on opaque steel substrates with a MoO3/Au/MoO3 top electrode.

The research carried out at the laboratory of Ashish Garg at IIT Kanpur demonstrated the integration of multilayered electrodes of configuration MoO3/Au/MoO3 with organic solar cells.

The team identified that these

electrodes offered higher optical transmission as compared to only metallic electrodes.

The devices with multilayer electrodes showed an improvement in the photovoltaic performance by 1.5 times, as compared with those obtained with single-layer top metal electrodes of gold, the researchers said.

The team said the potential of thirdgeneration solar cell technologies lies in their integration with flexible and conformal surfaces. However, this integration requires developing new top transparent conducting electrodes as alternatives to indium tin oxide.

Indium tin oxide is applied mainly as a film to create transparent conductive coatings in the optoelectronic industry. This is currently popular in use but poses

limitations because of its brittleness and variability in efficiency depending on the temperature.

The materials and device fabrication of perovskite and organic solar cells took place in the Class 10000 clean room facility at IIT Kanpur, funded by the Department of Science and Technology under the Ministry of Science and Technology.

Recently, IIT Kanpur-backed floating solution provider Acquafront Infrastructure developed ‘i-Ghat,’ a futuristic project to power boats with solar energy instead of diesel at Kada Ghat, Kaushambi, in Uttar Pradesh.

Earlier in the month, researchers at IIT Madras claimed to have developed an energy converter that can generate electricity from sea waves. Trials were completed successfully in the second week of November.

Businesses Save on Power Costs by Installing Solar

By : Sumit Jha

The benefits to businesses from adopting solar are so overwhelming that it defies logic for any entity to be in doubt about it. The saving alone can be as high as 30% of the power costs. The recovery of the investment can take a maximum of eight years but usually hovers around five years in most cases.

After the investment is recovered, the solar installations will yield benefits for nearly two decades more – free of cost.

Mercom India analyzed some of the projects executed by a prominent developer across the country for a varied clientele which includes a large textile company and a small spices company. However, the extent of savings

on a solar system makes perfect business sense for different types of businesses operating in various geographies.

A large textile company

The company had been incurring ₹37.5 million (~$452,013) per month in energy costs with a grid tariff at about ₹7.5 (~$0.09)/kWh. It decided to install 16.85 MW of solar capacity, split between rooftop and ground-mounted systems.

The company immediately started saving nearly 35% on power costs amounting to nearly ₹13 million (~$156,693) per month.

Given that the capital expenditure for a 1 MW rooftop solar installation

is roughly ₹40 million (~$482,047), the company is estimated to have spent ₹674 million (~$8 million) on the infrastructure.

The upside is that it could recover the entire investment in a little over four years based on its monthly savings.

In other details, the annual power requirement for the company is 60-70 million units (kWh), including a seasonal spike in demand.

With rooftop solar installations, the textile company started producing 56,000 units per day, which helped it substitute nearly 20 million units of grid power with solar energy annually. This accounts for nearly a third of its energy needs.

The solar adoption amongst the C&I segment consumers has been on the rise with the increased awareness on savings and faster return on investments

For the installation of the solar systems, the company made available 35,000 square feet of rooftop area and 28 acres for ground-mounted systems. This enabled the developers to install 4.45 MW rooftop solar and 12.4 MW capacity as on-site ground-mounted installation.

A small manufacturer and supplier of spices

The Pune-based company has an annual requirement of 280,000 units which costs ₹150,000 (~$1,811) per month in energy bills at a tariff of ₹6.4 (~$0.08)/kWh.

The company adopted a 65 kW onsite rooftop solar installation to generate 90,000 units per year, thus replacing about 32% of the energy demand being procured from the grid earlier.

The saving on each solar unit generated was nearly 30%.

The investment in a 65 kW plant is estimated to be around ₹2.6 million (~$31,400). The annual solar energy generation saves the company nearly ₹576,000 (~$6,956) a year, and the

investment recovery period is just 4.5 years.

Additionally, the business could also claim accelerated depreciation benefits of ₹640,000 (~$7,729) in three years. It allows the owner to declare a portion of installation costs as expenses that help save taxes.

each solar unit generated. The cost of power for a manufacturing industry is typically 30%, which means a rooftop solar system can immediately start making a positive difference in a manufacturer’s earnings.

The cost of the installation is about ₹10 million (~$120,770), and the energy savings are estimated to be about ₹1.6 million (~$19,323) annually. The recovery of investment would take just over six years.

A cotton ginning company

The Madhya Pradesh-based business has an annual power requirement of 1.08 million units with flat demand and a monthly average energy bill of over ₹400,000 (~$4,830) before deploying the solar system.

The firm installed a 250 kW onsite rooftop which started generating 360,000 units per year.

The savings were close to 30% on

The savings from the rooftop solar system easily pay for the monthly installments on loans secured for installations. This allows businesses to pay for the assets without incurring any additional expenses from before the installation.

Moreover, the solar system is effectively free for the owners after foureight years of loan payment.

Mercom India holds regular C&I Clean Energy Meets at prominent industrial centers across the country to raise awareness about the benefits of going solar for businesses, especially the MSMEs.

By going solar, savings can be as high as 30% of the power costs

US Anti-Circumvention Probe on Solar Module Imports

By : Satish Shetty

The U.S. Department of Commerce (DOC) has clarified the scope of the anticircumvention investigation, saying that it will allow the import of solar modules assembled in nonSoutheast Asian countries using solar cells manufactured in Southeast Asian countries.

The clarification comes as a relief to many international manufacturers exporting to the U.S. who assemble solar modules using cells manufactured in the Southeast Asian countries mentioned in the probe.

The department’s preliminary anticircumvention probe findings published just weeks ago found that some cells and modules exported from Cambodia, Thailand, Malaysia, and Vietnam used wafers produced in China. It was

akin to evading the anti-dumping and countervailing duties in place for Chinese imports.

The DOC has clarified that the solar cells made in any of the four Southeast Asian countries under investigation, even if made with wafers from China, that are then exported to a different country and further assembled into modules or other products will not be considered exports from these four countries.

The clarification was issued in response to queries raised by several parties seeking clarity on the coverage of the preliminary determinations.

Trade groups in the country had criticized the investigation citing the direct impact on the pipeline projects in the country, as the domestic manufacturing capacity is still ramping up to meet the increasing demand.

Due to the rising COVID-19 cases in China, solar supply chains are likely to be further strained. Most countries are either in the process of ramping up their domestic manufacturing capacities or considering alternative module procurement options for their upcoming projects.

India, where module manufacturing is still in its nascent stage, imports most of the wafers that are used in solar cells from China. For Indian manufacturers, importing wafers from China and solar cells from Southeast Asian countries, the clarification presents a window of opportunity for module exports to the U.S.

The DOC’s circumvention findings do not cover solar cells and modules produced in countries other than the four countries under investigation.

The U.S. Department of Commerce issued a clarification, allowing the import of solar modules assembled in nonSoutheast Asian countries by using solar cells manufactured in the countries under investigation

Industry News and Policy Briefs

Delhi-based Greenzo Energy India said it would invest $50 million to manufacture 250 MW of anion exchange membrane electrolyzers per year and the balance of plant in the Sanand-II Industrial Estate, a part of Gujarat Industrial Development Corporation. The company aims to provide end-to-end solutions for green hydrogen production and storage.

Adani Green Energy, through its subsidiary Adani Solar Energy AP Six, raised a project loan facility of ¥27.95 billion (~$205.31 million) to help refinance its debt. The facility includes amortizing project loans, a 16-year debt structure with a door-todoor tenor of ten years and an average tenor of more than eight years.

Neuron Energy, a Mumbai-based lithium-ion battery manufacturer, will invest ₹500 million ($6.04 million) to increase production capacity. The investment will be split into ₹350 million ($4.2 million) of working capital and ₹150 million ($1.8 million) of equity from the promoters and strategic partners.

homiHydrogen said it would invest $50 million in an electrolyzer manufacturing facility of 1.5 GW per annum capacity in Pune, catering to domestic and export markets. With this facility, homiHydrogen will become the first company to provide all four commercially available electrolyzers, which include efficient and cost-effective alkaline, anion exchange membranes, proton exchange membranes, and solid oxide electrolyzers.

Tata Power secured a ₹4.5 billion (~$54.3 million) trade finance facility from Japan-based Mitsubishi UFJ Financial Group for two solar projects. The funds will be used for a 100 MW solar project in Parthur, Maharashtra, and a 120 MW solar project in Mesanka, Gujarat. Both projects will be executed by TP Kirnali, a wholly owned subsidiary of Tata Power Renewable Energy, the clean energy arm of Tata Power.

India-based automobile conglomerate and the parent company of Royal Enfield, Eicher Motors, said it would acquire a 10.35% stake in European electric motorcycle manufacturer Stark Future with an initial equity investment of €50 million (~$53.2 million). Both Royal Enfield and Stark Future will use the investment for the electrification of motorcycles.

The Indian Renewable Energy Development Agency sanctioned a ₹44.45 billion (~$537.14 million) loan to SJVN Green Energy, a subsidiary of SJVN, to develop a 1 GW solar project in Bikaner, Rajasthan. SJVN had bagged the project tendered by the Indian Renewable Development Agency under the CPSU Phase-II (Tranche-III) program under viability gap funding to develop a grid-connected solar project.

Mahindra and Mahindra said that the Maharashtra government had approved its plan to invest ₹100 billion (~$1.2 billion) for an electric vehicle (EV) manufacturing facility in Pune. The company said the investment would be made through its subsidiary over 7-8 years. The investment will also be directed toward producing Mahindra’s upcoming Born Electric Vehicles, a few of which were exhibited in the UK earlier this year.

Adani New Industries, the manufacturing and green hydrogen platform of the Adani Group, signed a development and licensing agreement with Melbourne-based hydrogen technology company Cavendish Renewable Technology. The deal includes infrastructure costs for intellectual property development, license fees, and royalties on the successful commercialization of Cavendish Renewable Technology’s electrolyzer technologies.

Wind turbine maker Suzlon approved the sale of its remaining stake of 51.05% in the subsidiary Vayudoot Solarfarms to Ahmedabad-based Aries Renewables, the company said in a National Stock Exchange filing. Suzlon sold the balance stake for a consideration of ₹142.3 million (~$1.7 million).

Jindal Stainless signed a contract with ReNew Power to develop an approximately 300 MW utility-scale captive renewable project to power its facilities in Jajpur, Odisha. The project would use a mix of solar and wind technologies and is expected to generate 700 million units of energy annually.

Floating solution provider Acqafront Infrastructure developed ‘i-Ghat,’ a futuristic project to power boats with solar energy instead of diesel at Kada Ghat, Kaushambi, in Uttar Pradesh. Acquafront originated at the Startup Incubation and Innovation Centre, IIT Kanpur. The company develops floating solutions for large-scale infrastructure, including the world’s first floating CNG (compressed natural gas) refilling station on the River Ganga at Khidkiya Ghat in Varanasi.

Mumbai-based renewable energy company CleanMax Enviro Energy Solutions partnered with global internet giant Meta to invest in 33.8 MW of new renewable energy projects in India. The projects will comprise 21.6 MW wind and 12.2 MW solar installations.

Inox Green Energy Services, a subsidiary of Inox Wind, acquired a majority stake in an undisclosed independent wind power operations and maintenance company with above 230 MW of operating capacity, primarily in South India. Inox Green’s first acquisition is expected to help the company expand its O&M fleet through an inorganic route.

India-based independent power producer ReNew Power announced it had signed an agreement with Microsoft India to supply 150 MW of solar power from its recently commissioned project near Bikaner in Rajasthan With an aim to remove carbon in its energy purchases by 2030, Microsoft plans to contract green energy for 100% of carbon-emitting consumption by all its data centers, buildings, and campuses worldwide.

Adani Enterprises became the first company to start the construction of a polysilicon and monosilane manufacturing facility to be constructed in Mundra, Gujarat. Stateowned construction and engineering company Engineers India secured an assignment for providing owner’s engineer services for 30,000 MTPA polysilicon and 500 MTPA monosilane project from Mundra Solar Technology, a group company of Adani Enterprises.

Adani Solar introduced India’s first large monocrystalline silicon ingot at its Mundra facility. These ingots will be used to produce renewable electricity from silicon-based solar modules with efficiencies between 21% and 24%. The company completed the backward integration of the ingot line infrastructure in seven months and will produce silicon ingots exclusively for its solar wafers, cells, and modules.

Researchers at IIT Kanpur said they had developed organic solar cells consisting of a combination of an organic polymer and PCBM — an organic semiconductor — on steel substrates that can convert a steel roof into an energyproducing device. The researchers developed the devices using the organic polymer PTB7 as a donor and PCBM as an acceptor. The devices were fabricated on opaque steel substrates with a MoO3/ Au/MoO3 top electrode.

Policy Briefs States

The Haryana Electricity Regulatory Commission amended its renewable purchase obligation (RPO) policy to include wind energy in the RPO and move solar energy into the ‘other RPO’ category. The changes are in line with the regulation issued by the Ministry of Power. Since the RPO targets for FY 2023 are based on the current trajectory specified in the renewable regulations 2021, the new RPO trajectory will be effective from FY24.

Center

The Central Electricity Regulatory Commission passed a suo motu order retaining the ₹12 (~$0.14)/kWh price cap on power exchanges till further notice to ensure that prices didn’t rise disproportionately as a result of the increasing lighting and heating needs along with industrial activity in the north and northwestern India due to intense cold weather.

A parliamentary committee asked the Ministry of Power to ensure that all states set up standalone State Designated Agencies to facilitate and enforce the efficient use of energy as mandated by the Energy Conservation Act.

The Delhi Government released the draft solar policy that targets 6,000 MW of installed solar capacity in the next three years and envisages a three-fold jump in solar energy share in annual electricity demand to 25% by 2025 from 9% currently. The operative period of the policy will be three years. The new policy is expected to help address the issue of pollution and generate over 12,000 new green jobs.

The Odisha Government released its renewable energy policy, which aims to provide the necessary impetus to the solar sector and accelerate its adoption in the state. The policy intends to promote solar parks having a minimum capacity of 25 MW to reduce the cost of generation and the associated infrastructure. It will remain in force until March 31, 2030, or until the state government announces a new policy.

The Ministry of Power issued an order waiving the interstate 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 provided the same concession to the latter as is already available to the other two renewable sources.

The Central Electricity Regulatory Commission reverted to a frequencylinked deviation settlement mechanism as an interim measure to protect grid stability which has been under pressure over the last three weeks owing to a change in regulations. The grid frequency deviated dangerously away from the acceptable range of 49.90 -50.05 Hz. It oscillated from 50.5 Hz and 49.41 Hz on December 20.

The Ministry of Power is considering cutting the tenure of prospective long-term power purchase agreements (PPAs) to 12-15 years from the extant 25 years to provide more flexibility to DISCOMs and promote the power trading markets further. The ministry told the parliamentary standing committee on energy that it was considering amendments to the model PPA.

The Ministry of New and Renewable Energy granted a timeline extension until September 30, 2024, for solar power projects (Tranche I and Tranche II) under Phase II of the Central Public Sector Undertaking (CPSU) program implemented by the Solar Energy Corporation of India. The extension would be granted to projects whose scheduled commissioning date is before September 30, 2024. The MNRE also granted a timeline extension until September 30, 2024, to solar power projects (Tranche III) under Phase II of the CPSU program implemented by the Indian Renewable Energy Development Agency on the same grounds.

The Central Electricity Regulatory Commission announced massive surges in the applicable charges for various services involved in Renewable Energy Certificate trading. While the Commission allowed the fee revision to help the implementing agency fund the upgradation of the infrastructure, industry experts said the decision was a dampener for both buyers and sellers in the market, especially the small entities with cash-flow issues.

MOST INSIGHTFUL RESEARCH ON THE INDIAN SOLAR MARKET

Solar Project Tracker

Solar Tender Tracker

Solar Quarterly Market Report

Solar Import/Export Tracker

Solar Regulatory Updates and Alerts

Solar Component Price Tracker

Global Solar Funding & M&A Report

Solar Market Leaderboard Report & Tracker

Global Energy Storage, Funding & M&A Report

Custom Research Reports & Advisory

Rooftop Solar Market Report

Solar Open Access Market Report & Tracker

State of Solar PV Manufacturing in India

Major Tender and Auction

Announcements in December

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

Auctions

Greenko Energies won the NTPC Renewable Energy’s auction to set up ISTS-connected energy storage systems of 3,000 MWh capacity with a minimum of 500 MW capacity to be installed anywhere across India.

SJVN, Scatec India II BV, and O2 Power won Solar Energy Corporation of India’s (SECI) auction for 1.2 GW ISTS-connected wind power projects (Tranche-XIII).

Ayana Renewables and NTPC Renewable Energy won the MSEDCL auction to procure 250 MW of flexible and schedulable power from grid-connected renewable energy projects with an energy storage facility on a long-term basis.

Tata Power Renewable Energy (TPREL) was declared the winner in Tata Power Delhi Distribution’s (TPDDL) auction for 255 MW wind-solar hybrid power projects.

SolarArise, SJVN Green Energy, and Tata Power Renewable Energy were declared the winners of the auction conducted by the MSEDCL to procure 500 MW of power on a long-term basis from Phase IX of gridconnected intrastate solar projects.

Gensol Engineering announced that it has won the auction to develop 30 MW floating solar projects by quoting ₹2.32 billion (~$28.64 million).

Other Tenders

MSEDCL announced bids to procure 300 MW of wind power on a long-term basis from intrastate wind power projects.

Gujarat Urban Development Company (GUDC) invited bids to select a consultant for the development of 150 MW of solar power projects under captive model to cover the energy demands of the urban local bodies in the state.

The Telangana State Renewable Energy Development Corporation (TSREDCO) invited bids to procure 50 MW of monoPERC solar modules under the domestic content requirement (DCR) and non-DCR categories for utilization in grid-connected rooftop solar program (Phase-II) and other government projects.

The Punjab Department of Water Supply and Sanitation invited bids to install and commission 8.7 MW of solar projects at 970 rural piped water supply systems in the state.

Bharat Heavy Electricals (BHEL) released tender for the operations and maintenance (O&M) of a 5 MW solar power project at its heavy electrical equipment plant in

Haridwar, Uttarakhand.

West Bengal Power Development Corporation (WBPDCL) invited bids for e-tender and reverse auction to commission a 5 MW grid-connected floating solar project on a raw water pond at Sagardighi thermal power station.

Karnataka Renewable Energy Development (KREDL) invited bids for the installation and commissioning of a 2 MW of solar project with a battery energy storage system (BESS) of 4.5 MWh at Pavagada Ultra Mega Solar Park in the Tumakuru district of Karnataka.

Madhya Pradesh State Tourism Development Corporation (MPSTDC) issued a request for proposal (RfP) to set up electric vehicle (EV) charging stations at various facilities for 10 years.

BHEL invited bids for the O&M of 2.015 MW rooftop solar systems for 54 months.

Jharkhand Renewable Energy Development Agency (JREDA) invited bids for commissioning a 1.6 MW gridconnected solar carport in the parking areas of New Jharkhand High Court, Ranchi, on a turnkey basis

Rooftop Solar Tenders

NTPC Vidyut Vyapar Nigam (NVVN), released a tender to select engineering, procurement, and construction (EPC) contractors to develop rooftop solar projects below 10 MW capacity.

The Punjab Energy Development Agency (PEDA) invited bids to install and commission 10 MW of gridconnected rooftop solar systems with the net metering facility on government buildings across the state under the renewable energy service company (RESCO) model.

South Eastern Coalfields, the largest coal-producing subsidiary of Coal India, announced bids for installing and commissioning 4 MW of grid-connected rooftop solar systems at 14 different locations under its jurisdiction in Chhattisgarh and Madhya Pradesh.

Mahanadi Coalfields invited bids for the installation and commissioning of 2.5 MW of grid-connected rooftop solar systems with net metering arrangements on residential and non-residential buildings in Odisha

Ahmedabad Municipal Corporation invited bids to commission 2 MW of grid-connected rooftop solar systems with remote monitoring systems atop its buildings.

The Agency for New and Renewable Energy Research Technology (ANERT) released tender for the design, supply, installation, and commissioning of 1.232 MW of grid-connected rooftop solar systems on 71 public buildings in Thiruvananthapuram, Kerala under the solar city project.

CONTENT QUALITY INSIGHTS

MercomIndia.com is a highly trusted and trafficked cleantech news website delivering quality, informative, original reporting, and exclusive insights on India’s energy transformation.

Mercom covers solar, storage, wind, and EV news supported by a network of global journalists and backed by Mercom India’s research.

MercomIndia.com

Top Large-Scale Solar Tenders

REC Power Development and Consultancy (RECPDCL), a wholly owned subsidiary of REC Limited, invited two bids; one to set up 1,250 MW of interstate transmission system (ISTS)-connected solar power projects (Tranche I) across India and the other to set up 500 MW of ISTS-connected solar power projects across the country.

Rajasthan Rajya Vidyut Utpadan Nigam (RRVUNL) released tender to select solar project developers to set up 810 MW of state transmission utility-(STU) connected solar power projects on a build-own-operate basis in RRVUNL’s Ultra Mega Solar Park in Bikaner

GAIL (India) invited bids for the design, supply, construction, erection, testing, and commissioning of 600 MW of solar power projects at the Khavda Solar Park in the Kutch region of Gujarat.

Maharashtra State Electricity Distribution Company (MSEDCL) announced two bids; one to procure 550 MW of solar power from projects to be developed in Maharashtra. MSEDCL also invited bids to procure 450 MW of power from solar projects to be developed in Maharashtra.

MSEDCL invited bids to procure 300 MW of solar power from decentralized solar projects with the capacity range of 500 kW to 2 MW under Component A of the Pradhan Mantri-Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program.

SJVN Green Energy, a wholly owned subsidiary of SJVN, invited two bids; one to commission a 125 MW grid-connected solar power project in Jamui, Bihar. SJVN, also invited bids to commission a 100 MW grid-connected solar power project in Goliwada, Gujarat

MERCOM INDIA EVENTS IN 2023

MERCOM INDIA CLEAN ENERGY MEET & ROUND

TABLE EVENTS IN 2023

C&I CLEAN ENERGY MEET 2023

C&I CLEAN ENERGY MEET 2023

Karnataka - Bengaluru

Feb 24

Karnataka - Bangalore

Maharashtra - Mumbai

Maharashtra - Pune May 26

Maharashtra - Pune

Jun 23

Maharashtra - Mumbai

Tamil Nadu - Chennai

Tamil Nadu - Chennai Jul 21

Tamil Nadu - Coimbatore

Sep 15

Tamil Nadu - Coimbatore

C&I CLEAN ENERGY ROUND TABLE 2023

C&I CLEAN ENERGY ROUND TABLE 2023

Karnataka - Bengaluru

Aug 25

Karnataka - Bangalore

Maharashtra - Mumbai

Maharashtra - Mumbai Nov 17

Tamil Nadu - Chennai

Dec 15

Tamil Nadu - Chennai

https://mercomindia.com/