INDIA: STATE & CENTRAL MONTHLY HIGHLIGHT
SOLAR
POLICY DEBRIEF INDIA: STATE & CENTRAL MONTHLY HIGHLIGHT OCTOBER 2020
CENTRAL: POLICY UPDATES
MNRE ISSUES AMENDMENT TO GUIDELINES FOR TARIFF BASED COMPETITIVE BIDDING PROCESS OF SOLAR PV POWER PROJECTS The Ministry of New & Renewable Energy (MNRE) recently issued an order on Amendment to the Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Solar PV Power Projects. Some of the amendments are: successful bidder, if being a single company, shall ensure that its shareholding in the SPV/project company executing the PPA shall not fall below 51% at any time prior to 3 years from the COD, except with the prior approval of the Procurer. In the event the successful bidder is a consortium, then the combined shareholding of the consortium members in the SPV/project company executing the PPA, shall not fall below 51% at any time prior to 3 years from the COD, except with the prior approval of the Procurer. Further, the successful bidder shall ensure that its promoters shall not cede control of the bidding company/consortium till 3 (three) years from the COD, except with the prior approval of the Procurer. In this case it shall also be essential that the successful bidder shall provide the information about its promoters and their shareholding to the Procurer before signing of the PPA with Procurer.
MNRE ISSUES GUIDELINES FOR TARIFF BASED BIDDING FOR WINDSOLAR HYBRID PROJECTS Ministry of New and Renewable Energy (MNRE) issued Guidelines for Tariff Based Competitive Bidding Process for procurement of power from Grid Connected Wind Solar Hybrid Projects. Some of the guidelines are: Individual minimum size of the project allowed is 50 MW at one site and a single bidder cannot bid for less than 50 MW. Further, the rated power capacity of one resource (wind or solar) will be at least 33% of the total contracted capacity. For procurement of wind solar hybrid power, the tariff quoted by the bidder will be the bidding parameter. The Procurer may select either of the following kinds of tariff based bidding: (a) fixed tariff in Rs./kWh for 25 years or more or (b) escalating tariff in Rs./kWh with pre-defined quantum of annual escalations fixed in Rs./kWh and number of years from which such fixed escalation will be provided. The procurer can also opt for an ereverse auction for final selection of bidders, in such a case, this will be specifically mentioned in the notice inviting bids and bid documents. The procurer may disclose in the RfS, the prevailing incentives available to the HPGs.
MNRE ISSUES DETAILS OF EOI SUBMISSION FOR INSTALLATION OF INNOVATIVE SOLAR PUMPS The Ministry of New and Renewable Energy (MNRE) has passed an order inviting Expression of Interest (EOI) for installation of innovative solar pumps. Earlier, the ministry submitted proposals for innovative solar pumps. Ministry later received requests from interested parties to allow submission of EOIs in soft copy through email. In this regard, the ministry decided that EOIs can be submitted through email. EMD was sent through a demand draft and a scanned copy of which may also be submitted through email. Agencies who earlier submitted EOI in physical documents must also submit soft copy on the above mentioned email address.The Ministry highlighted that all other terms and conditions mentioned in the Call for EOIs remain unchanged.
MNRE DRAFTS POLICY FRAMEWORK TO PROMOTE DRE LIVELIHOOD IN RURAL AREAS Ministry of New & Renewable Energy (MNRE) recently drafted a Policy Framework for developing and promoting Decentralized Renewable Energy (DRE) Livelihood Applications in Rural Areas – for comments of stakeholders. To promote DRE livelihood applications in rural areas of the country a policy framework is proposed to be brought by the Ministry to provide a conducive environment for development and large-scale adoption of these applications. The Ministry invites comments/ suggestions from all the stakeholders by 02.11.2020 .
SOLAR POLICY DEBRIEF-INDIA: STATE & CENTRAL MONTHLY HIGHLIGHT
OCTOBER 2020
SOLAR POLICY DEBRIEF : CENTRAL
MNRE ISSUES AMENDMENT FOR DISPUTE MECHANISM The Ministry of New & Renewable Energy (MNRE) recently issued an order on Amendment regarding dispute Resolution Mechanism to consider the unforeseen disputes between solar and wind power developers and SECl/ NTPC/ NHPC, beyond contractual agreements. Some of the important amendments are The DRC will consider all kinds of cases of appeal against decisions given by SECl/NTPC/NHPC on disputes, SEC/NTPC/NHPC from the date of application. No separate extension of time shall be granted for overlapping periods of effect as a result of two or more causes, In case of Extension of Time dispute, the fee payable shall be 1% (one percent) of the impact of SECl/NTPC/NHPC’s decision being challenged, with the impact being limited to the Performance Bank Guarantee (P80) submitted for the project concerned, and which in no case be less than Rs. 1,00,000/- and not more than Rs. 50,00,000/- .
MNRE GRANTS BCD EXEMPTION FOR IMPORTED SOLAR CAPITAL GOODS The Ministry of New & Renewable Energy (MNRE) has recently accepted a request to provide a list of capital goods and machinery required for inclusion in list 19 for exemption from payment of BCD. The Ministry of New & Renewable Energy consulted with the Ministry of Finance and Department of Heavy Industry regarding the same. The Ministry has decided that In order to expedite such updation, priority will be given to high-value capital goods. For further necessary action the ministry ordered Solar PV Manufacturers and Solar PV Manufacturer Associations to provide a list of high-value machinery/capital goods required for the manufacturing of Solar PV Modules from Cells, Solar PV Cells from Wafers and Thin Film PV Modules.
POWERGRID SIGNS MOU WITH MINISTRY OF POWER DETAILING TARGETS FOR YEAR 2020-21 Power Grid Corporation of India Ltd. (POWERGRID) has signed a Memorandum of Understanding (MoU) with the Ministry of Power, Govt. of India on September 29, 2020. The MoU has been signed by Sanjiv Nandan Sahai , Secretary (Power), Government of India and K.Sreekant, Chairman & Managing Director, POWERGRID in the presence of senior officials from MOP and POWERGRID.The MoU includes targets related to various parameters such as Financial, Physical, Project execution, etc. to be achieved by POWERGRID during the FY 2020-21.
MNRE DISCUSSED ISSUES RELATED TO INDIA’S SOLAR MANUFACTURING SECTOR ON INDIA PV EDGE 2020 To catalyze cutting-edge PV manufacturing in India, NITI Aayog, Ministry of New and Renewable Energy, and Invest India organized a global symposium virtually, ‘India PV EDGE 2020’. There was a plenary session and subsequent sessions on ‘Wafers and Cells’, ‘Modules and Production Equipment’ and ‘Supply Chain’. It also included an ‘Investors Conclave’ on PV Manufacturing. Tamil Nadu, Maharashtra and Andhra Pradesh states have participated in the conclave. This was followed by a ‘Investors Roundtable’, which discussed issues related to India’s solar manufacturing sector viz. affordable financing, role of developers in building the ecosystem of cutting edge solar manufacturing etc.
MNRE ALLOWS EXEMPTION OF BIS CERTIFICATION All India Solar Industries Association (AISIA), New Delhi has conveyed that COVID 19 disruption has posed serious challenges for the survival of domestic solar industry, and sought extension of the BIS certification exemption till the validity of IEC certificates for their products (SPV Modules). Regarding the same, the ministry allowed exemption for BIS registration to such module manufacturers till the validity of IEC certificates corresponding to the Indian Standards specified in the said order provided the IEC certificates for SPV Modules which had been obtained before 16.04.2018. These manufacturers will be required to go compulsorily for BIS registration after the validity of IEC Certificates is over.
CBDT EXEMPTS POWER TRADING FROM NEW TDS & TCS The Central Board of Direct Taxes (CBDT) recently issued new guidelines for the applicability of Tax deducted at Source (TDS) and Tax collected at source (TCS). According to the new guidelines, ecommerce operations which include transactions in electricity and trading of clean energy certificates (REC and ESCerts) are not subjected to TCS or TDS.
SOLAR POLICY DEBRIEF-INDIA: STATE & CENTRAL MONTHLY HIGHLIGHT
OCTOBER 2020
STATE : REGULATORY UPDATES
UPERC ACCEPTS 6 MONTHS DELAY BY SLDC IN IMPLEMENTING FORECASTING RULES DUE TO CORONAVIRUS
RPO TARGET FOR AUGMENTED CAPACITY MUST BE EQUAL TO RPO TARGET APPLICABLE SAYS MERC The Central Board of Direct Taxes (CBDT) recently issued new guidelines for the applicability of Tax deducted at Source (TDS) and Tax collected at source (TCS). According to the new guidelines, e-commerce operations which include transactions in electricity and trading of clean energy certificates (REC and ESCerts) are not subjected to TCS or TDS. The Central Board also added that the updated guidelines are applicable from 1st October, 2020. CBDT clarified that the TCS is to be collected and paid to the government on all payments received on or after 1st October, 2020 which includes the amount of GST and on sales made prior to 1st October. The Finance Act 2020 had imposed a levy of 1% and O.1 % on all e-commerce transactions above Rs 50 lakhs under TDS and TCS respectively.
Uttar Pradesh Electricity Regulatory Commission (UPERC) has recently issued an order accepting delay by the state load dispatch center (SLDC) for 6 months in implementing its procedures for forecasting, scheduling, and deviation settlement due to the barriers caused by the COVID 19. UPSLDC has filed a petition seeking 6 months relaxation for implementation of the procedure of Forecasting Scheduling Deviation Settlement & Related Matter Solar & Wind Generating Sources Regulation 2018 under UPERC. SLDC also informed that in order to carry out the necessary changes in the portal, the work was assigned to a service provider but on account of the Countrywide Lockdown w.e.f. 22-03-2020 due to Covid2019 Pandemic, the service provider could not do necessary modifications / changes in EASS / Scheduling Portal and in absence of which the above procedure could not be implemented in time.
HPPC TO PURCHASE 10 MW OF SOLAR POWER ON SHORT-TERM BASIS AT ₹2.70/KWH
GERC RECEIVES PETITION FOR RPO COMPLIANCE EXEMPTION Gujarat Electricity Regulatory Commission (GERC) recently passed an order on RPO compliance exemption for FY 2017-18 under the GERC (Procurement of Energy from Renewable Sources) Regulations, 2010 and its (First Amendment) Regulations, 2014 FY 2017-18. The RPO has earlier been fixed at 10% which consists of 7.75% for Wind, 1.75% for Solar and 0.5% from other Renewable Sources (Biomass, Bagasse, MSW and Hydro) for the obligated entities of the State.
The Haryana Electricity Regulatory Commission (HERC) approved a draft power purchase agreement by Haryana Power Purchase Center’s (HPPC). The draft PPA stated that Haryana wanted to be executed with LR Energy for 10 MW of solar power on a short-term basis for a period of 3 months.The commission allowed HPPC to issue the letter of intent and sign the PPA. It also granted both parties to extend the contract up to 31-03-2021 at ₹ 2.70 /kWh.
TAMIL NADU PASSES NEW TARIFF ORDER FOR SOLAR PROCUREMENT The Tamil Nadu Electricity Regulatory Commission (TNERC) has issued a tariff order for solar power procurement by distribution licensees and The effective date of the order is 16th October 2020.The Commission passed its order after reviewing the feedback from the industry. The Commission permitted the procurement of solar power by distribution licensees to meet their renewable purchase obligations (RPO) through the competitive bidding route.Licensees are now allowed to bid again without a tariff cap if a competitive bidding process is unsuccessful. The Commission decided that the rates of open access charges will be at 50% of that applicable for conventional power for transmission, wheeling charges, scheduling, and system operation charges. However, it noted that 100% of the respective charges would be applicable for projects availing renewable energy certificates (REC).The Commission also declared that wheeling solar power would only be allowed when power is being generated.
SOLAR POLICY DEBRIEF-INDIA: STATE & CENTRAL MONTHLY HIGHLIGHT
OCTOBER 2020
STATE : REGULATORY UPDATES KERALA TO RESUME GENERATIONBASED INCENTIVES FOR OFF-GRID CAPTIVE SOLAR PROJECTS
VALIDITY OF LEVELIZED TARIFF FOR SOLAR PROJECTS IN UTTARAKHAND EXTENDED
The Kerala State Electricity Regulation Commission has again issued an order extending the applicability of the GenerationBased Incentive (GBI) program for off-grid captive solar power projects in Kerala. The incentives would apply at the rate of ₹ 1 /kWh until 30th September 2021.The program is introduced by the Ministry of New and Renewable Energy (MNRE) which aims to promote off-grid solar power projects. KSEB Ltd raised the issue that KSEB argued that the extension was ‘bad in law.’ The Commission then re-examined the provision of the GBI program and stated that until a decision on the subject was not arrived at, the implementation of the order extending the GBI’s validity for two years would stand deferred.
The Uttarakhand Electricity Regulatory Commission (UERC) has recently extended the validity of benchmark capital cost and levelized generic tariffs for solar projects.UERC Cited that state renewable energy regulations 2018 allows it to review and revise the benchmark capital costs and tariffs for solar and other renewable source-based projects annually and also noted that given the Government’s focus on its “Make in India” campaign, the prices of goods and products could be volatile in the initial period.The Commission ordered that the validity of benchmark capital cost and levelized generic tariffs for solar projects is extended till 31-March-2021. It highlighted that the other terms and conditions under the state’s renewable energy regulations, 2018, would be applicable without any changes.
NOT TO BLAME DISCOMS FOR FAILURE TO MEET RPO TARGETS SAYS RERC The Rajasthan Electricity Regulatory Commission (RERC) supported the state distribution companies (DISCOMs) in a petition demanding action against them for not achieving their renewable purchase obligation (RPO) targets.The Commission stated that there was no case to initiate action against the DISCOMs or impose a penalty. The Commission also directed the DISCOMs to assess the energy requirements in advance and sign the power purchase agreements (PPAs) accordingly in the future. It directed DISCOMs to make up for the RPO shortfall in the next 3 years.
TELANGANA PROPOSES PRE-FIXED LEVELIZED TARIFF FOR KUSUM SOLAR PROJECTS OF ₹3.13/KWH ; INVITES SUGGESTIONS BY 11TH NOVEMBER The Telangana State Electricity Regulatory Commission (TSERC) has proposed a pre-fixed levelized tariff of ₹ 3.13 /kWh for solar projects between 500 kW- 2 MW under Component-A of the PM-KUSUM program.The TSERC has invited suggestions and comments from stakeholders which are to be made before 11 November 2020.Renewable-based projects are to be installed by farmers, cooperatives, panchayats, farmer-producer organizations, or water use associations within a five-kilometer radius of the closest substations. If these parties are unable to afford these projects, they can develop them through developers or a local distribution company.
TSERC ASKS DISCOM TO PAY FOR USING BANKED ENERGY The Telangana Electricity Regulatory Commission (TSERC) directed Transmission Corporation of Telangana Limited (TSTRANSCO) and the Telangana State Southern Power Distribution Company Limited (TSSPDCL) to provide long-term intrastate open access (LTOA) to Ener Sol Infra Private Limited . The Commission also added that they should take immediate steps to make payments for the energy drawn from its 2 MW solar project.The order added that the agency beforehand should intimate about the feasibility of open access facility within 30 days from the date of the application.TSERC also stated that the DISCOM and the nodal agency have not allowed open access for two years and are liable to pay the charges for the energy drawn by it.
UTTARAKHAND PLANS 1,000 SOLAR SCHEME OF 25 KW FOR UNEMPLOYED YOUTH AND SMALL FARMERS The Uttarakhand Electricity Regulatory Commission (UERC) recently issued an order extending the control period for benchmark capital costs and generic tariffs as a one-time exception for upcoming 25 kW grid-connected solar projects totaling 250 MW in the state to create income opportunities for youth who had to migrate back home due to the COVID-19 lockdown.UREDA also added that the competitive bidding process for these projects may defeat the purpose of the program .These projects may take up to 31-03-2022 to be completed.The Commission directed UPCL to procure power from these projects at the rates previously set by the Commission. It also suggested that UPCL and UREDA support eligible applicants in developing these projects so they can fulfill their aim before 22-March-2022.
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