INDIA: STATE & CENTRAL MONTHLY HIGHLIGHT
SOLAR
POLICY DEBRIEF INDIA: STATE & CENTRAL MONTHLY HIGHLIGHT NOVEMBER 2020
CENTRAL: POLICY UPDATES
TARGET TO INCREASE INSTALLED RENEWABLE ENERGY CAPACITY HAS BEEN EXTENDED TO 450 GW BY 2030: PM Prime Minister Narendra Modi delivered inaugural address at 4th India Energy Forum CERAWeek through a video conference. The theme of this edition is “India’s Energy Future in a world of Change”. Speaking on the occasion, the Prime Minister said India is full of energy and its energy future is bright and secure. He elaborated that in spite of various challenges like fall in energy demand by almost one third, prevailing price instability, impacted investment decisions, projected contraction in global energy demand over the next few years, India was projected to emerge as a leading energy consumer and is projected to nearly double its energy consumption over the long term. The Prime Minister pointed that India is the third largest and the fastest growing aviation market in terms of domestic aviation and Indian carriers are projected to increase their fleet size from 600 to 1200 by 2024.
IREDA SIGNS MOU WITH MNRE, SETS KEY TARGETS FOR 2020-21 Indian Renewable Energy Development Agency Ltd. (IREDA) signed a Memorandum of Understanding (MoU) with the Ministry of New and Renewable Energy (MNRE), Government of India setting key targets for the year 2020-21. The MOU was signed by Indu Shekhar Chaturvedi, Secretary, MNRE and Pradip Kumar Das, Chairman & Managing Director, IREDA in the presence of senior officials from MNRE & IREDA. Government of India has set a revenue target of Rs. 2,406 crore under ‘Excellent’ rating along with various performance-related parameters such as Operating Profit as percentage of Revenue from Operation, PAT as a percentage of Average Net worth, Loan disbursement, Overdue loan etc. IREDA as on 2nd November 2020, has financed more than 2700 renewable energy projects in India with cumulative loan disbursements to the tune of Rs. 57,000 crore, and has supported green power capacity addition of 17,259 MW in the country.
MNRE INCREASES SOLAR CAPACITY BY 30.8 GW UNDER KUSUM SCHEME The Ministry of New and Renewable Energy, (MNRE) recently passed an order regarding administrative approval of Pradhan Mantri Urja Suraksha evam Utthaan Mahabhiyaan (PM-KUSUM) Scheme for scaling-up and expansion of PM-KUSUM Scheme to achieve enhanced solar capacity of 30.8 GW by 2022 with revised central financial support of Rs. 34,035 Cr. The revised targets under the three components of the Scheme are as follows: (i) Component-A: 10,000 MW of decentralized ground mounted grid-connected solar power plants of individual plant size up to 2 MW (ii) Component-B: Installation of 20 lakh standalone solar powered agricultural pumps of individual capacity up to 7.5 HP (iii) ComponentC: Solarization of 15 lakh grid-connected agricultural pumps of individual pump capacity up to 7.5 HP including through feeder level solarisation.
MNRE TO CONDUCT SKILL DEVELOPMENT PROGRAMME ON DESIGN OF SOLAR PV SYSTEMS MNRE has recently issued information on Skill development programme on design of Solar pv systems (online mode). National Institute of Solar Energy (NISE) is responsible for conducting this programme. It is an autonomous institute under the Ministry of New and Renewable Energy, Government of India established to facilitate the Research & Development, Testing, Certification, and Skill Development activities in the field of solar energy technologies.No. of Seats available is 50. The Programme will be held from 15th to 17th December, 2020. Learning Objectives 1. To understand the design aspects in various types of Solar PV System. 2. To learn about the important checks, optimizations in the design of PV systems. 3. To get sensitized to financial design (Costing of a Solar PV Power plant). 4. To get an overview of use of simulation software for the PV system design, and guide to preparation of technocommercial proposal. Vision & Mission 1. The vision of this programme enables participants to “Be a smart designer of Solar PV System”. 2. The mission of this programme is to impart the knowledge and proper training and enable participants to become a solar professional and support the Solar Industry in the country.
POWER MINISTRY MANDATES ALL DISCOMS TO COMPLY ENERGY CONSERVATION ACT The Ministry of Power, Government of India issued notification S.O. 3445 (E) dated 28th September, 2020 to cover all the Electricity Distribution Companies (DISCOMs) under the preview of the EC Act. As per the notification, which was formulated in consultation with Bureau of Energy Efficiency (BEE) “All entities having issued distribution license by State/Joint Electricity Regulatory Commission under the Electricity Act, 2003 (36 of 2003)” are notified as Designated Consumers (DCs).The amendment is expected to help DISCOMs to monitor their performance parameters and bring in transparency in the Distribution sector through professional inputs. It will also assist in developing projects for reducing the electricity losses by DISCOMs and implementing effective solutions. The amendment is expected to improve the financial state of the DISCOMs. The quarterly data of these DISCOMs will be collected and monitored by the government to suggest measures for increasing the efficiency and reducing the energy loss. This move is expected to gradually become more effective if extended upto the level of end consumers.
SOLAR POLICY DEBRIEF-INDIA: STATE & CENTRAL MONTHLY HIGHLIGHT
NOVEMBER 2020
CENTRAL: POLICY UPDATES
MNRE ISSUES SUMMARY OF OCTOBER 2020 The Ministry of New and Renewable Energy (MNRE) has recently issued a monthly summary for the Cabinet for the month of October 2020. Some important events and developments that took place during the month are as follows: A total of 406.22 MW of Renewable Energy (RE) capacity was added during the month, taking the cumulative installed RE capacity to 89.63 GW as on October 31, 2020. This includes 38.26 GW of Wind capacity, 36.32 GW of Solar capacity, 10.31 GW of Bio-power and 4.74 GW of Small Hydro capacity. Further, projects of 49.59 GW capacity are at various stages of implementation. Projects of 27.41 GW capacity are under various stages of bidding. An expenditure of Rs. 1997.85 crore has been incurred up to October 31, 2020 which is around 35 percent of the Budget Estimate (BE) for the Ministry for the year 2020-21. The Ministry issued Guidelines for Tariff Based Competitive Bidding for procurement of power from Grid Connected Wind Solar Hybrid Projects on October 14, 2020. This has the objective of promoting large grid connected wind-solar PV hybrid systems for optimal & efficient utilisation of transmission infrastructure and land.
UNION CABINET APPROVES NATIONAL PROGRAM ON ACC BATTERY STORAGE ; INVITES COMMENTS BY 14TH DECEMBER Union cabinet has recently accorded its in-principle approval for the “National Programme on Advanced Chemistry Cell Battery Storage” ACCProgramme).Regarding the same NITI Aayog has published (NITI Website) the first draft of the Model Bid Documents to initiate Stakeholders Consultation.All stakeholders are instructed to provide their written comments by or before 14 th December, 2020. The comments are to be sent in the enclosed format, in electronic and editable form. Stakeholder’s meet is scheduled at NITI Aayog, New Delhi on 18th December, 2020 at 11:00am through virtual mode and details will be shared separately. All those interested in attending the meet should send a line of confirmation latest by 16 th December 2020 by email.
NTPC PLANS TO ACHIEVE 1 LAKH MW BY 2025 “NTPC is shaping up well for the future with its diversification plans and as a responsible corporate, NTPC is committed towards environment and the fast growing capacity addition in the renewable portfolio is testimony to the commitment”, said R K Singh, Minister of State (Independent Charge) for Power, New and Renewable Energy and Minister of State for Skill Development and Entrepreneurship, Government.
AHEAD OF 45TH YEARS OF COMPLETION, NTPC SAYS FULLY GEARED TO STEER TRANSFORMATION IN INDIA’S POWER SECTOR Solar, being set up under non-PPA mode, is the largest in the countrNTPC Ltd, the PSU under Ministry of Power, has reiterated its commitment to nation building and energizing India ahead of its Raising Day. India’s largest power producer, which commenced its purposeful journey on November 7, 1975 and has made a stellar contribution in lighting every nook and corner of the country, is fully geared to steer the next phase of growth and transformation in India’s power sector that offers immense opportunities. From its current power producing capacity of 62 GW, NTPC plans to become a 130 GW company by the year 2032. In line with the global trend towards renewables, which is a cleaner source of energy, NTPC plans to achieve 32,000 MW of capacity through renewables or 25% of its overall power portfolio at the beginning of the next decade. Currently, NTPC has 2,404 MW of RE projects under implementation, out of which 237 MW comes from floating solar projects located in reservoirs at NTPC’s existing stations. In fact, Ramagundam 100 MW Floatingy. The gradual shift towards renewables is one part of NTPC’s commitment towards sustainable power generation and safeguarding the environment.
MNRE ISSUES CONCEPT NOTE TO DEVELOP WIND AND WIND-SOLAR HYBRID PARKS The Ministry of New and Renewable Energy recently issued Concept Note on Development of Wind Parks/ Wind-Solar Hybrid Park.Ministry has also invited suggestions and comments by stakeholders by 28-11-2020. To speed up the installation of wind power projects, the scheme for “Development of Wind Parks/ Wind-Solar Hybrid Park” is proposed. The Park will be a concentrated zone of development of Wind/ Wind-Solar Hybrid power projects and will provide an area that is well characterized, with proper infrastructure including evacuation facilities in place and where the risk of the projects can be minimized. Wind Energy Park will provide a plug and play solution (availability of land, transmission, necessary infrastructure and necessary approvals) to the investors for installing wind/ wind-solar power projects.
SOLAR POLICY DEBRIEF-INDIA: STATE & CENTRAL MONTHLY HIGHLIGHT
NOVEMBER 2020
STATE : POLICY UPDATES
ANDHRA SETS 30 YEAR PPA FOR 10 GW OF SOLAR PROJECTS SUPPLYING POWER TO FARMERS
RERC PASSES FINAL ORDER ON REGULATIONS OF TARIFF DETERMINATION FROM RE SOURCES
The Government of Andhra Pradesh has approved proposals suggested by the Andhra Pradesh Green Energy Corporation Limited (APGECL) to develop 10 GW of solar power capacity in the state to supply 9 hours of daytime free power to the agriculture sector. APGECL also proposed that Under the ‘change in law’ clause, the actual basic customs duty (BCD) and safeguard duty should be passed through tariff adjustment at ₹ 0.0055/kWh for every ₹ 100000 /MW. Also the tenure of the power purchase agreement (PPA) will be 30 years instead of 25 years, as the increase of the PPA tenure is expected to lower tariffs in the bidding process.
Rajasthan Electricity Regulatory Commission (RERC) recently In the matter of Memo on Statement of objects & reasons and consideration of Comments/ Suggestions, received from various stakeholder for Tariff Determination from Renewable Energy Sources Regulations, 2020. The Commission accepts the suggestions from the stakeholders that clarity is required about the method applicable for determination of Average Annual Demand. RIL requested to dissociate the relation between Average Annual Demand and ‘Maximum Permissible renewable energy capacity’ specified for captive generating plants.Therefore, the Commission has decided to revisit the proposed definition of Average Annual Demand from these Regulations.
SECI AND OREDA COME TOGETHER TO DEVELOP AGRO-PHOTOVOLTAIC PROJECTS IN ODISHA The Solar Energy Corporation of India (SECI) has announced that it has signed a Memorandum of Understanding (MoU) with the Government of Odisha to develop Agro-Photovoltaic projects in the state. The signing of the MoU was announced on Twitter by SECI. SECI will develop the grid-tied agrophotovoltaic projects in the coastal state in collaboration with the Odisha Renewable Energy Development Agency (OREDA), According to the MoU, SECI stated that the agricultural land would be taken up under the ‘Annual Lease Model’ from interested farmers. The government will directly execute the lease deed for a period of 25 years with the farmers without involving any brokers, SECI added. This will directly benefit farmers as they can carry on farming activities on the leased agricultural land while earning a determined lease amount of Rs 20,000/acre annually from the government SECI informed.
REGULATORY UPDATES RERC RECEIVES PETITION BY DISCOMS FOR WAIVER OF FIXED CHARGES Rajasthan Electricity Regulatory Commission (RERC) recently issued order on non compliance of the provisions of the tariff order and general condition of supply issued by Discoms for waiver of fixed charges. As regards non compliance of the provisions of TCOS, Commission directs that provisions of TCOS should be strictly followed by the Discoms. If any particular consumer has specific grievance regarding non compliance of TCOS then appropriate grievance redressal mechanism should be invoked by him and the procedure for grievance redressal should be followed. The Discoms should ensure strict compliance of Regulations/ TCOS at sub division level. Twelve Discoms filed a petition against Jaipur Vidyut Vitran Nigam Ltd. Ajmer Vidyut Vitran Nigam Ltd. and Jodhpur Vidyut Vitran Nigam Ltd. Commission concluded that the Petitions along with other connected applications are disposed of with no order as to cost.
TAMILNADU ISSUES APPC RATE FOR FY 2020-21 Tamilnadu Electricity regulatory commission (TNERC) recently passed a notification that the average power purchase cost (APPC) for the financial year 2020-21 as INR 4.37/unit. TNERC has also passed an order that the power purchase cost payable by TANGEDCO to NCES generators is INR 4.37/unit or 75% of the preferential tariff fixed by the Commission to that category / sub category of NCES generators. TNERC has increased the APPC cost by INR 0.3/unit for FY 2020-21 as compared to INR 4.097/kWh in FY 2019-20
MERC APPROVES COMPENSATION OF SAFEGUARD DUTY UNDER CHANGE IN LAW Maharashtra Electricity Regulatory Commission (MERC) recently passed an order on approval of “Change in Law” and mechanism for grant of an appropriate adjustment/ compensation to offset financial/ commercial impact of change in law events on account of imposition of safeguard duty on solar cells/modules. The Commission after analysing passed an order stating that the Petitioners are eligible for claiming compensation on account of imposition of Safeguard Duty (including additional GST) under Change in Law provisions of PPA for their individual total capacity of 13.68 MW of Solar module/panel post commissioning of the project. It further added that they must provide undertaking that all modules installed at all project sites for supplying power to MSEDCL have been imported from the Country/ies which are subjected to Safeguard Duty. Commission also directed Maharashtra State Electricity Distribution Co. Ltd. to act upon such undertaking given by the Petitioners and ascertain the compensation amount under Change in Law. It highlighted that such ascertainment of compensation amount will be at risk and cost of the Petitioners.
SOLAR POLICY DEBRIEF-INDIA: STATE & CENTRAL MONTHLY HIGHLIGHT
NOVEMBER 2020
REGULATORY UPDATES CERC INVITES PROPOSAL FROM CONSULTANTS FOR DETAILED STUDY OF SOLAR PV PROJECTS
TELANGANA FINALIZES DEMAND-SIDE MANAGEMENT REGULATIONS FOR DISTRIBUTION LICENSEES
The Central Electricity Regulatory Commission (CERC) has decided to engage a consulting agency to conduct a detailed study on Solar thermal and Solar PV projects. Objective of the Study is to analyze the useful life and capacity utilization factor (CUF) of Solar Thermal and Solar PV technologies.The last day for submission of the proposal and seeking any clarification is15 December, 2020 upto 17.00 hrs. Scope of work includes Study, analyse and suggest the useful life for solar thermal power projects based on international and national experience for life cycle analysis. The study must cover the type of technologies such as ‘Parabolic trough’, ‘Power Tower’, Linear Fresnel or any other technology adopted by solar thermal developers in India and globally.
The Telangana State Electricity Regulatory Commission (TSERC) has recently released the final regulations for the demand-side management (DSM) initiatives of distribution licensees (DISCOMS).It is designed to encourage consumers to change their electricity consumption patterns and level of electricity demand which aims to help consumers use electricity more efficiently. DISCOMs can also plan their costs and ways of recovering it through tariffs or any other method. TSERC would establish DSM targets for each DISCOM in the state based on the percentage reductions in load growth, savings in kW, kWh, and savings as a percent of total resources to meet the load, according to the framework.DSM is anticipated to help grid operators improve the power grid’s efficiency and stability by flattening the electricity load curve.
UTTAR PRADESH REGULATOR ACCEPTS DELAY IN IMPLEMENTING FORECASTING RULES DUE TO COVID-19 The Uttar Pradesh Electricity Regulatory Commission (UPERC) has issued an order accepting delays by the state load dispatch center (SLDC) in implementing its procedures for forecasting, scheduling, and deviation settlement due to the difficulties caused by the Covid 19. The Commission has asked the SLDC State Load Despatch Centre to enforce the regulations from 14-10-2020. In case of errors are regulated through deviation settlement mechanisms the forecasting and scheduling of RE power and compensation to be paid to electricity grid infrastructure providers.
For upcoming event details visit: https://events.firstviewgroup.com/events or contact: sangeeta@firstviewgroup.com