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Lead Sponsors

April 2021

monthlyupdate

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Delivering true value 丨 Higher power, lower LCOE

Shaping the future.Once again.

www.longi-solar.com

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4

Contents

1. Tenders | 5New RFS Issued | 5Date extension | 8

2. Installed Capacity | 9

3. Investments/ Partnerships | 12

4. Monthly Import-Export Statistics | 15

5. Module Price Trends | 16

6. Monthly SECI Payments | 17

7. Monthly RE Generation | 18

8. Policies and Regulations | 19

Capacity (MW)

0 200 400 600 800 1000 1200 1400

TNEB, 1 MW, Solar with 3 MWh BESS, Tamil Nadu

NVVN, 1 MW, Rooftop Solar, Rajasthan

MEDA, 1.28 MW, Rooftop Solar, Maharashtra

REIL, 8 MW, Rooftop Solar, Rajasthan

ONGC, 15 MW, Solar, Gujarat

Coal India, 20 MW, Solar PV, Jharkhand

JBVNL, 25 MW, Rooftop Solar, Jharkhand

MPUVNL, 41 MW, Rooftop Solar, Madhya Pradesh

GSECL, 112 MW, Solar, Gujarat

GSECL, 200 MW, Solar, Gujarat

NTPC, 600 MW, Wind-Solar Hybrid, Pan India

NTPC, 1000 MW, Solar, Pan India

NTPC, 1200 MW, Solar, Rajasthan

SECI, 1200 MW, Wind- Solar Hybrid Tranche IV,Pan India

MSEDCL, 1300 MW, Solar, Maharashtra,(under “Mukhyamantri Saur Krishi Vahini Yojana”)

Solar

Wind-Solar Hybrid

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Tenders

• About 5724 MW of renewable tenders were issued in April 2021. NTPCalone has issued 2800 MW of tenders this month, including 2200 MWsolar tenders and 600 MW Wind-Solar hybrid tender.

• SECI has issued 1200 MW of Wind-Solar hybrid tender under project de-velopment in Pan India. Another significant tender was floated by MSEDCLwith 1300 MW capacity under Mukhyamantri Saur Krishi Vahini Yojana inMaharashtra.

New RFS Issued

1.

Fig 1.1: Details of new tenders issued in April 2021

Capacity (MW)

0 200 400 600 800 1000 1200 1400

TNEB, 1 MW, Solar with 3 MWh BESS, Tamil Nadu

NVVN, 1 MW, Rooftop Solar, Rajasthan

MEDA, 1.28 MW, Rooftop Solar, Maharashtra

REIL, 8 MW, Rooftop Solar, Rajasthan

ONGC, 15 MW, Solar, Gujarat

Coal India, 20 MW, Solar PV, Jharkhand

JBVNL, 25 MW, Rooftop Solar, Jharkhand

MPUVNL, 41 MW, Rooftop Solar, Madhya Pradesh

GSECL, 112 MW, Solar, Gujarat

GSECL, 200 MW, Solar, Gujarat

NTPC, 600 MW, Wind-Solar Hybrid, Pan India

NTPC, 1000 MW, Solar, Pan India

NTPC, 1200 MW, Solar, Rajasthan

SECI, 1200 MW, Wind- Solar Hybrid Tranche IV,Pan India

MSEDCL, 1300 MW, Solar, Maharashtra,(under “Mukhyamantri Saur Krishi Vahini Yojana”)

Solar

Wind-Solar Hybrid

Source: JMK Research

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Table 1.1: New RFS issued

Tender Name Technology Tender Scope

Capaci-ty (MW) Other Details Minimum

CUF

Commis-sioning timeline

from PPA signing

Bid Sub-mission

Date

MSEDCL, 1300 MW, Solar, Maharashtra, Apr 2021 (under “Mukhyamantri Saur Krishi Vahi-ni Yojana”)

Utility Scale Solar

Project Devel-opment

1300

EMD - INR 0.1 mil-lion/MWPBG - INR 0.5 mil-lion/MWCeiling tariff - INR 3.05/kWh

19%17th-

May-2021

SECI, 1200 MW, Wind- Solar Hybrid Tranche IV, Pan India, Apr 2021

Utility Scale Solar

Project Devel-opment

1200PBG - INR 1 mil-lion/MW

30% 18 months28th-

May-2021

NTPC, 1200 MW, Solar, Rajasthan, Apr 2021

Utility Scale Solar

EPC with land package

120021st-

May-2021

NTPC, 1000 MW, Solar, Pan India, Apr 2021

Utility Scale Solar

Project Devel-opment

100027th-

May-2021

NTPC, 600 MW, Wind-Solar Hy-brid, Pan India, Apr 2021

Utility Scale Solar

EPC 60031st-

May-2021

GSECL, 200 MW, Solar, Gu-jarat, Apr 2021

Utility Scale Solar

EPC 200

EMD – INR 82 million PBG – 10% of the EPC contract price

15 months20th-

Apr-2021

GSECL, 112 MW, Solar, Gujarat, Apr 2021

Utility Scale Solar

EPC 112

EMD – INR 0.4 million/MW

PBG – 10% of the EPC contract price

25% 12 months27th-

Apr-2021

MPUVNL, 41 MW, Rooftop Solar, Madhya Pradesh, Apr 2021

Rooftop Solar RESCO 41PBG – INR 1.9 million

17%5th-

May-2021

JBVNL, 25 MW, Rooftop Solar, Jharkhand, Apr 2021

Rooftop Solar RESCO 25

EMD - 0.2 million/MWCeiling tariff - INR 4.16/kWh

15%12th-

May-2021

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Tender Name Technology Tender Scope

Capaci-ty (MW) Other Details Minimum

CUF

Commis-sioning timeline

from PPA signing

Bid Sub-mission

Date

Coal India, 20 MW, Solar PV, Jharkhand, Apr 2021

Utility Scale Solar

EPC 20PBG - 10% of the contract value

23% 9 months29th-

Apr-2021

ONGC, 15 MW, Solar, Gujarat, Apr 2021

Utility Scale Solar

EPC 15 8 months17th-

May-2021

REIL, 8 MW, Rooftop Solar, Rajasthan, Apr 2021

Rooftop Solar 8PBG - 3% amount of the contract value

10th-May-2021

MEDA, 1.28 MW, Rooftop Solar, Maharashtra, Apr 2021

Rooftop Solar 1.28

EMD – INR 0.517 million

PBG – 3% of the contract value

4 months5th-

May-2021

NVVN, 1 MW, Rooftop Solar, Rajasthan, Apr 2021

Rooftop Solar 1PBG – 3% of the contract price

26th-Apr-2021

TNEB, 1 MW, Solar with 3 MWh BESS, Tamil Nadu, Apr 2021

Small Scale Solar (Solar +

BESS)EPC 1

EMD - INR 0.1 million

20% 10 months21st-

Apr-2021

PBG: Performance Bank guaranteeEMD: Earnest Money Deposit

Source: JMK Research

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Date Extension

Tender Name

TechnologyTender Scope

Capacity (MW)

Other De-tails

Minimum CUF

Commis-sioning timeline

Bid Submis-sion Date

SECI, Pan In-dia, 2500 MW, Thermal + RE, Mar 2020

Utility Scale Solar

Project Devel-opment

2500

EMD – INR 0.5 million/MW

PBG – INR 0.1 million/MW

30 months 31st-May-2021

SECI, 1785 MW Solar, Rajasthan, Mar 2021

Utility Scale Solar

Project Devel-opment

1785

Performance Bank Guaran-tee – INR 0.8

million

17% 18 months 21st-May-2021

UPNEDA, 75 MW, Solar PV, Uttar Pradesh, Mar 2021

Utility Scale Solar

Project Devel-opment

75

Performance Bank Guaran-tee – INR 1.05

million Ceiling tariff –

INR 3/kWh

17% 15 months 27th-Apr-2021

SECI, 50 MW, Solar PV and Agro PV , Ta-mil Nadu, Jan 2021

Solar and Agro PV

Project Devel-opment

50 18 months 5th-May-2021

SECI, 15 MW, Floating Solar, Himachal Pradesh, July 2020

Floating SolarProject Devel-

opment1.5

EMD – INR 13.5 million PBG – INR 27 million

21% 18 months 17th-Jun-2021

Table 1.2: Date Extension

Source: JMK Research

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9

Fig 2.1: State-wise installations in Solar and Wind during March 2021 - 1459.6 MW

Installed Capacity2.

Source: CERC, JMK Research

In March 2021, a combined total of 1459.6 MW of solar and wind energy capacity was added, taking the cumulative RE capacity to 94.43 GW. According to MNRE, as of March 31st, 2020, projects totalling 49.7 GW of capacity were at various stages of implementation while another 25.91 GW of projects were under various stages of bidding.

Bio Power Small Hydro Solar

W

ind

42%

42 %

11%

5%

100%= 94.43 GW

0

200

400

600

800

1000

1200

WindSolar

Capa

city

(MW

)

Cumulative Installations Capacity Installed in March 2021

Table 2.1: List of recently Commissioned Projects

Project Developer Name

Technology Capacity (MW) StateDate of

Commissioning

NTPC Solar 70 Uttar Pradesh Apr 2021

NTPC Floating Solar 5 Andhra Pradesh Apr 2021

Rajasthan Renewa-ble Energy Corpora-

tion Ltd

Solar (KUSUM scheme)

1 Rajasthan Apr 2021

Recently Commissioned Projects

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Source: Industry news articles, JMK Research

Tata Power to develop 60 MW solar project for Gujarat Urja Vikas

Nigam

Tata Power has announced that it is set to develop a 60 MW solar power project in Gujarat and has received a Letter of Award from Gujarat Urja Vikas Nigam Limited (GUVNL) for the same. They have won this capacity in a GU-VNL bid in January this year. After this win the capacity under development in Gujarat will be 580 MW.

Facebook announces first deal to buy renewable energy in India

Facebook has announced a deal with Mumbai-based clean energy firm CleanMax for a 32 MW wind power project in Karnataka. This partnership with CleanMax will enable new solar and wind power to be generated in the near future, contributing to the decarbonization of the Indian electrical grid. About half of the project capacity has already been commissioned and is generating power. Facebook has also announced that the company has reached its 100% renewable energy and net zero-emission goals for its global operations.

Project Developer Name

Technology Capacity (MW) StateDate of

Commissioning

Renew Power Solar 110 Rajasthan Apr 2021

Adani Solar 50 Uttar Pradesh Apr 2021

Alfanar Wind 300 Gujarat Apr 2021

Renew Power Solar 105 Gujarat Apr 2021

NTPC Solar 15 Uttar Pradesh Apr 2021

Proctor and Gamble Solar (Captive use) 1 Telangana Apr 2021

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Table 3.1: Investment and Deals in April, 2021

Company Name

Deal Type SectorAsset

acquiredInvestor Deal Value Other details

ReNew Power Green Bond Renewable $ 585 million

NTPC Bond Power $ 535 million

The bonds will be issued at a coupon of 6.87% per annum

with a maturity of 15 years 1 day on 21 April 2036.

The funds will be used in funding of capital expenditure,

refinancing of existing loans.

Azure Power Acquisition Rooftop Solar 152.5 MWRadiance Renewables

$ 73.5 million

Fourth Partner Energy

Equity Solar CDC Group $ 33.44 million

Freyr Energy Equity Rooftop Solar

Total Carbon Neutrality

Ventures, Sch-neider Electric Energy Access Asia and C4D

Partners

$ 2.3 million

Waaree En-ergy Storage System

EquityEnergy Storage

HNI $ 2 million

Sterling and Wilson

AcquisitionRooftop

Solar7.2 MW Amplus Solar

Investments/ Partnerships3.

Source: JMK Research

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Renew Power to invest $9 billion in wind and solar projects

Renew Power plans to invest $9 billion in wind and solar projects by 2025 amid a government-backed effort to reduce emissions. The company, backed by investors such as Goldman Sachs Group Inc. and Canada Pension Plan Invest-ment Board, aims to more than triple its renewable power capacity to 18.5 gigawatts by 2025.

Green Climate Fund Approves USD 137 Million FMO Investment in

India

Dutch development bank FMO will invest $ 137 million in India through Green Growth Equity Fund.

The funds will be used in energy value chain, water, waste, and transport sec-tors that promote low carbon and climate-resilient initiatives in line with India’s climate objectives and Sustainable Development Goals.

Tatas call off renewable power deal with Petronas

The Tatas have terminated their near $2 billion investment deal with Malaysian state owned oil and gas company Petroliam Nasional Bhd (Petronas).

NTPC Renewable Energy to raise Rs. 2,100 crore through term loan

NTPC Renewable Energy is raising a term loan of Rs 2,100 crore and will tie-up working capital facility of Rs 700 crore to finance projects. The company has already received equity of Rs 300 crore from the total committed equity of Rs 4,000 crore from the parent company NTPC. The company would make new capacity addition would take place in the renewables segment, with a majority of additions in the solar and wind arenas.

Mahindra Solarize Private Limited is incorporated as a wholly-owned

subsidiary of Mahindra Susten Private (MSPL)

Mahindra Solarize Private Limited is incorporated as a wholly-owned subsid-iary of Mahindra Susten Private (MSPL), to undertake the business for distrib-uted energy, including rooftop solar installation for the commercial, industrial, institutional and residential segment, solar water pump, and other renewable energy industry-based products, including engineering procurement & con-struction (EPC).

MSPL is a wholly-owned subsidiary of Mahindra Holdings Limited, which in turn is a subsidiary of Mahindra & Mahindra.

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14

IFC proposes $50mn debt finance for Thar Surya solar power project

IFC plans to debt finance the construction of Thar Surya 1 Pvt Ltd.’s 300 MW solar power project in Bikaner, Rajasthan by $50 million. Apart from lending $50 million, IFC will also mobilise $100 million debt through parallel lenders. According to IFC, the total solar power project cost is estimated at $200 million.

Macquarie looks to sell 450 MW solar assets for $300 million

Macquarie Infrastructure and Real Assets (MIRA), one of the largest foreign infrastructure investors in India, plans to sell around 450 MW of solar power projects for an estimated equity value of around $300 million. Approximately 330 MW of these operational solar assets were acquired from Hindustan Power projects Pvt Ltd.

Thermax Group has partnered with Power Roll to develop India’s solar

film market.

Through the collaboration, the companies will assess the market potential to scale manufacturing and deployment of Power Roll’s solar films. The joint activity will include identifying applications for lightweight solar film and green energy solutions for the region. A successful conclusion to the agreement will see Thermax license Power Roll’s technology for commercial manufacture and sale of solar films in India.

ReNew Power to employ Israeli bots for solar panel cleaning

Israeli firm Airtouch Solar has announced it has landed a $7.6 million deal with Indian developer Renew Power to supply and deploy its water-free cleaning robots for solar panels. AirTouch’s water-free robotic cleaning systems will be deployed for three of ReNew Power‘s new solar PV plants in Rajasthan, India, which are scheduled to be commissioned by early 2022.

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15

Monthly Import/ Export Trends4.Compared to January 2021, solar imports and exports have fallen by near-ly 6.72% and 43.65% respectively in February 2021. Compared to previous year, on a YoY basis, solar imports have increased by 38% and exports have declined by 54%.

Fig 4.1: Exports - Imports trend

Source: Ministry of Commerce, JMK Research

-5000 0 5000 10000 15000 20000

Sep-19

Oct-19

Nov-19

Dec-19

Jan-20

Feb-20

Mar-20

Apr-20

May-20

Jun-20

Jul-20

Aug-20

Sep-20

Oct-20

Nov-20

Dec-20

Jan-21

Feb-21

Amount (INR million)

Exports Imports

Amount (INR million)

Exports Imports

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Module Price Trends5.Prices of global multi crystalline modules, mono PERC modules and mono PERC module (India) have increased by 9.8%, 1.5% and 6% respec-tively in April 2021. Compared to previous year, on a YoY basis, prices of global multi crystalline modules have increased by 1% whereas mono PERC modules prices have declined by 2%.

Fig 5.1: Solar Module Price trends

Source: PVInfoLink, JMK Research

0.15

0.16

0.17

0.18

0.19

0.20

0.21

0.22

0.23

0.24

0.25

Mono PERC (India)

Mono PERC modules (Global)

Multi crystalline module (Global)

Apr-21

Mar-21

Feb-21

Jan-21

Dec-20

Nov-20

Oct-20

Sep-20

Aug-20Ju

l-20

Jun-20

May-20

Apr-20

Mar-20

Feb-20

Jan-20

Pric

es (U

SD/W

p)

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17

Monthly SECI Payments6.The Solar Energy Corporation of India Limited (SECI) paid nearly INR 4.08 billion to developers for the purchase of solar and wind power in February 2021. Compared to January 2021, the payment disbursal has decreased by ~4% in February 2021.

0.0

1.5

3.0

4.5

6.0

Feb-21

Jan-21

Dec-20

Nov-20

Oct-20

Sep-20

Aug-20

Jul-2

0

Jun-20

May-20

Apr-20

Mar-20

Feb-20

Jan-20

3.6 3.7

4.9

4.14.4

5.2

4.6 4.5

3.7 3.9 4.04.3

4.13.8

INR

Billi

on

Fig 6.1: Monthly payments by SECI to solar and wind developers

Source: SECI, JMK Research

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Fig 7.1: Source-wise Renewable Energy Generation (GWh) - India

Source: CEA, JMK Research

Monthly RE Generation7.The share of RE in the energy generation mix of India was 11,932.77 GWh during March 2021. Considering the generation from RES (Renewable Energy Sources) for the last month, solar constitutes the majority share of 50%, fol-lowed by wind at 26% and other RES (including Biomass) at 23%. Compared to February 2021, the RE generation has increased by ~8% in March 2021.

0

2000

4000

6000

8000

10000

Mar-21

Feb-21

Jan-21

Dec-20

Nov-20

Oct-20

Sep-20

Aug-20Ju

l-20

Jun-20

May-20

Apr-20

Mar-20

Feb-20

Jan-20

Solar

Wind

Other RES

4,613

3,320

2,766 2,6372,295

1,846 1,7291,426

1,625 1,854 1,970 1,921

2,7603,176 3,083

2,7422,742

3,519 3,3993,449

6,238

7,896

6,967

9,646

4,852

3,990 3,3053,816

3,562

2,873 3,206

5,0895,607

5,339 5,607

4,703

4,6504,266

4,5514,876

4,592 4,749 4,865

5,436 5,985

Gig

aWat

t - H

our

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Policies and Regulations8.MNRE Clarifies No Commissioning Date Extension Beyond Six Months

for Renewable Energy Projects

• MNRE with its notification dated 30 March 2021 has clarified that theextension provided by implementing agencies on account of the Covid-19pandemic should in no case be more than six months, including the five-month blanket extension given earlier.

• MNRE stated that if the implementing agencies feel the need foran extension beyond six months, they should make a reference forconsideration of MNRE with due justification and supporting documents.The implementing agencies will not grant such extensions on their own.

• Previously, the Ministry had issued a notification asking the implementingagencies to treat the lockdown as a ‘force majeure’ event. The Ministry hadreceived requests from developers and renewable energy associations totreat the pandemic as a force majeure event for the grant of extension inthe scheduled commissioning date of projects.

CERC furnishes regulation on Tariff determination for the RE sources

for FY 2021-22

• These regulations will be effective for FY 2021-22 and will be applicableon the determination of generation tariff for the Small Hydro Projects,Biomass Power Projects with Rankine Cycle Technology, Non-fossil Fuel-based Co-generation Projects, Biomass Gasifier based Power Projects andBiogas based Power Projects.

• Venika Hydro Projects had submitted comments and suggestion on thedraft for reconsideration of capital cost, ROE & O&M expenses but deniedby the commission.

• The control period for the tariff determination will be July 2020 to March2023. Projects commissioned during the period will be valid for tariffdetermination as per the regulation.

• Generation Tariff for the RE projects are;

Central

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Ministry of Power (MoP) proposes net metering for rooftop solar up to

500 kW

• A draft amendment to Electricity (Rights of Consumers) Rules, 2020, hasbeen issued by MoP which allows net metering for rooftop solar systemsof loads up to 500 kW or up to the sanctioned load, whichever is lower andnet-billing or net feed-in for above 500 kW.

• The stakeholders can send their comments to the ministry by April 30,2021.

• Commissions may introduce time-of-the-day (ToD) tariffs for prosumerswhich would provide incentives to prosumers to install energy storage forlater use or can be fed into the grid during peak hours.

• Commissions may introduce time-of-the-day (ToD) tariffs for prosumerswhich would provide incentives to prosumers to install energy storage forlater use or can be fed into the grid during peak hours.

• Commissions may permit gross metering for prosumers who would like tosell all the generated solar energy to the distribution licensee instead ofavailing the net-metering/ net-billing or net feed-in facility.

CERC sets the National Average Power Purchase Cost of ₹3.85/kWh

for open access solar projects

• CERC has set the National Average Power Purchase Cost (APPC) for openaccess at ₹3.85 (~$0.052)/kWh. It would be applicable during the financialyear (FY) 2021-22 or until further orders for deviation settlement regarding

Particulars Levelized Total Tariff (FY 2021-

22) (Rs/kWh)

Small Hydro Projects

Himachal Pradesh, Uttarakhand, West Bengal, North Eastern States and Union Territo-ries of Jammu and Kashmir& Ladakh.(Below 5 MW)

5.15

Himachal Pradesh, Uttarakhand, West Bengal, North Eastern States and Union Territo-ries of Jammu and Kashmir& Ladakh. (5 MW to 25 MW)

4.70

Others States (Below 5 MW) 5.74

Others States (5 MW to 25 MW) 5.68

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21

open access and captive wind and solar generators fulfilling regional entities’ requirements.

• In a recent order, the Commission observed that for wind or solargenerators selling power under open access, which is not accounted forrenewable purchase obligation (RPO) compliance of obligated entities, andfor captive power projects where power purchase agreements (PPAs) donot exist, the settlement would be done at APPC.

• The total cost of power purchase considered for calculating the APPCexcluded the cost of generation or procurement from renewable energysources and transmission charges. The exclusion is in line with thedetermination of APPC to calculate the average cost of power fromconventional sources.

• After receiving suggestions by various stakeholders, in response toPCKL’s request to consider tariff obtained through competitive biddingwith respect to wind and solar power projects or a rate determined undergeneric tariff, the Commission said that the generic tariff was not requiredin the calculation of APPC.

• The Commission accepted a suggestion from to consider the net powerpurchase volume and its cost for Chhattisgarh.

• The Commission incorporated the data for small hydro projects fromgenerating stations in Uttarakhand while calculating the renewablescomponent.

Changes approved by CERC to bidding guidelines for 1,500 MW of

grid-connected solar projects.

• CERC has approved the changes and additions proposed by Rewa UltraMega Solar Limited (RUMSL), Madhya Pradesh Power ManagementCompany Limited (MPPMCL), and West Central Railway in the biddingguidelines for 1,500 MW of grid-connected solar projects.

• RUMSL, MPPMCL, and West Central Railway had filed a petition withthe Commission requesting certain deviations in the guidelines in thebid process initiated for the 500 MW grid-connected solar projects inNeemuch Solar Park; 450 MW grid- solar projects in Shajapur Solar Park,and 550 MW grid-connected solar projects in Agar Solar Park.

• The petitioners had requested the Commission’s approval for fifteendeviations to the solar bidding guidelines, including payment securitymechanism, notification of ‘force majeure’ event, offtake constraints,default and termination consequences, and the event of default onaccount of the developer’s failure to supply energy as per the power

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22

purchase agreement (PPA) among others.

• They also pursued the inclusion of ‘epidemic, pandemic, quarantine,lockdown or similar action ordered by any government authority as forcemajeure events, termination due to a non-natural force majeure event,quantum and mechanism for ‘change in law’ relief to be included in thedraft request for proposal and the PPAs.

Guidelines for Production Linked Incentive Scheme ‘National

Programme on High Efficiency Solar PV Modules’

• IREDA will be the implementing agency for the PLI program. IREDA will beeligible to get 1% of the PLI amount disbursed as administrative chargesannually.

• Manufacturing units that have imported capital goods for setting up themodule manufacturing facility before the last date of bid submission willalso not be eligible for participation under the PLI program.

• Beneficiaries of the PLI scheme will be selected through a transparentbidding process.

JERC determines tariffs for Solar Installations in Daman and Diu

• The Electricity Department of Daman and Diu filed a petition with the JointElectricity Regulatory Commission (JERC) for the state of Goa and UnionTerritories for the determination of tariffs for the solar installations in theunion territory.

• In its petition, the Electricity Department stated that the total installedsolar capacity in the union territory is 14MW; 10MW from ground-mountedsolar installations and the rest from roof-top installations.

• The Commission stated that had the Electricity Department filed thepetition on time, the problem of determining tariff would not arise. Sincethis is not the case, the tariffs were determined by calculating year wisetariff and averaging it.

• The tariffs approved are as follows:

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23

Ministry of Power Issues Draft National Electricity Policy 2021

• Ministry of Power (MoP) with its notification dated 27 April 2021 hasreleased the draft National Electricity Policy (NEP) 2021 and invitedsuggestions from all stakeholders.

• MoP has created an expert committee that includes members from stategovernments, the Ministry of New and Renewable Energy (MNRE), NITIAayog, and Central Electricity Authority (CEA). The committee is expectedto submit its suggestions to the draft NEP 2021 within two months.

• Stakeholders such as Central Public Sector Undertakings, Solar EnergyCorporation of India, power transmission companies, financial institutionslike Reserve Bank of India, Indian Renewable Energy DevelopmentAgency, HDFC Bank, ICICI Bank, industrial, solar, and wind associations,and state governments, have to present their suggestions to the expertcommittee between 11 May and 15 May 2021.

• The draft NEP encourages electricity generation from renewable sourcesdue to its environmental benefits that couple with energy security. TheMoP also wants to encourage hybrid renewable energy like wind-solar,solar-biomass, solar mini-hydel, etc., with or without energy storagesystems.

• The draft further states that barring waste to energy generation, all futureprocurement of power from renewable sources must be through tariff-based c ompetitive bidding.

• The tariff of the renewable energy generators must cover the risk ofcurtailment of power by DISCOMs for reasons other than grid security or

Type of Project

Electricity Department’s

submission(INR/kWh)

Approved by Commission(INR/kWh)

Roof-top Solar Projects

Non-fossil fuel-based Co-

generation Projects

Roof-top installations before the implementation of JERC Regula-tions 2019

7.86 6.15

Roof-top installations after the implementation of JERC Regula-tions 2019 (July 2019- March 2020)

5.93 4.73

Roof-top installation in FY 2020-2021 5.93 4.72

Ground Mounted Solar PV Project

1 MW 8.65 6.31

3 MW 8.65 6.31

6 MW 8.65 5.97

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24

transmission constraints.

• It also recommends swift implementation of differential tariffs betweenpeak and off-peak hours for consumers and generating stations, toappreciate the peaking power value.

• As it has been noted that renewable purchase obligations (RPOs)supported by renewable energy certificates (RECs) have not functionedsatisfactorily, the draft has suggested market-based options whileremoving shortcomings of the existing RPO-REC-based system.

• The draft also encourages solar rooftop installations and states that oneway to promote solar PV systems, particularly in household applicationsand small industries, is through net metering.

APTEL Allows Open Access, Banking Facility to Four Wind Power

Generators in Maharashtra

• The Appellate Tribunal for Electricity (APTEL), in its recent order, directedthe MSEDCL to grant open access facility to four wind developers and alsocompensate them for the banked energy until the full quantum of openaccess is granted.

• Four wind generators in Maharashtra – Roha Dyechem, Arvind Cotsyn,Jsons Foundry, and Western Precicast, had appealed to APTEL,demanding grant of open access. The generators also asked for MSEDCLto be directed to compensate for the banked energy.

• APTEL took the case of Jsons Foundry as all the four appeals were similar.

• Wind generator Jsons Foundry owns wind power projects of a totalcapacity of 6.82 MW in Maharashtra.

• The MSEDCL granted open access for captive use from its Unit-I (3.40MW) and Unit-II (3.42 MW).

HERC Draft Regulation Notifies No Net Metering Facility for Open

Access Solar Consumers

• A discussion paper has been prepared with regards to the revision ofregulations. Stakeholders have time until 15 April 2021, to submit theirsuggestions. A public hearing will be held on 22 April. The Commission willgive final shape to the regulations based on the feedback received.

• As per the proposed regulations, a rooftop solar system’s maximum ratedcapacity, to be installed under net metering, should not exceed 10 kW.

Haryana

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In contrast, under gross metering, the eligible consumer can install the rooftop solar system up to a maximum rated capacity of 2 MW.

• These regulations will apply to all the distribution licensees andconsumers of electricity in Haryana. The rooftop solar system installed byan eligible consumer may be self-owned or third-party owned.

• Under net metering, the electricity generated from a rooftop solar systemwill be capped at 90% of the consumer’s electricity consumption at theend of the settlement period, which will be the relevant financial year.

• In case the electricity supplied by the distribution licensee during anybilling period exceeds the electricity fed into the grid, the distributionlicensee will raise an invoice for the net electricity consumption aftertaking into account any electricity credit balance remaining from theprevious billing periods.

• The energy accounting and settlement procedure for consumers or third-party owners installing and operating rooftop solar system under the grossmetering arrangement will be as per the following procedure:

– The licensee will show the quantum of electricity injected by therooftop solar system installed at the eligible consumer’s premises in thebilling period.

– The distribution licensee will reimburse the eligible consumer orthe third-party owner for the quantum of injected electricity by therooftop solar system during the billing period through ‘Solar InjectionCompensation.’

– There will be no deemed generation charges payable to the rooftopsystem’s eligible consumer or third-party owner.

– The distribution licensee will be responsible for billing the electricityinjected by the rooftop solar system into the distribution system.

• The applicant should install the rooftop solar system within 180 days fromthe letter of award.

MERC publishes RE tariff Regulation 2019 effective from April 1

• MERC publishes RE tariff Regulation 2019 effective from April 1. Regulationwill be applicable on Wind, Solar PV, Non-Fossil Fuel, Biomass & HybridRE Projects.

• These regulations will determine the APPC for DISCOM and variable pricefor biomass and cogeneration-based projects.

Maharashtra

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• Distribution Licensee wise APPC applicable for FY 2021-22 as follow;

RE Technology Variable Charge (Rs/kWh)

Biomass based RE Project 5.55

Non-fossil fuel-based Co-generation Projects 4.38

– Variable charges approved for the biomass & non fossil fuel-based co-generation projects.

Distribution Licensee APPC excluding RE & Liquid Fuel Source for FY

2021-22 (Rs/kWh)

MSEDCL 3.94

BEST Undertaking 4.5

AEML-D 4.21

TPC-D 4.29

MBPPL 3.99

KRCIPL 3.92

GEPL 4.01

Maharashtra Sets Generic Tariff of ₹2.90/kWh for Rooftop Solar

Projects

• MERC has set the generic tariff of ₹2.90 (~$0.039)/kWh for surplus powerprocured at the end of the financial year from rooftop solar projects for theFY 2021-22.

• The tariffs notified by MERC will be applicable for the FY 2021-22, witheffect from April 01, 2021.

• The state regulator extended the existing variable charges for biomassand non-fossil fuel-based cogeneration projects as determined under the‘Renewable Energy Tariff Order’ dated April 30, 2019, until the variable costfor these projects was determined by The Energy and Resources Institute(TERI). The variable charges are ₹5.55 (~$0.076)/kWh for biomass-basedrenewable energy projects and ₹4.38 (~$0.059)/kWh for non-fossil fuel-based cogeneration projects.

• The charges will be applicable from April 01, 2020, until the fuel cost forbiomass and non-fossil fuel-based cogeneration projects are finalized.

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MERC Defers Levying State Periphery Charges on Renewable

Generators

• MERC with its Order dated 19 April 2021 has accepted therecommendations of the deviation settlement mechanism (DSM) workinggroup and deferred the levy of state periphery charges until further notice.

• MERC stated that state periphery charges already collected fromrenewable generators by the Maharashtra State Load Dispatch Center(MSLDC) from 6 January 2020, to 27 April 2020, should be adjusted towardthe future payment of pooling substation charges of the respectiverenewable generators.

• MERC stated that the working group should analyse the DSM bills forsix months after commercial implementation of the DSM Regulationsfor providing suggestions on the modality of determining the peripherycharges.

• MERC rejected the appeals of all 28 petitioners seeking a trial or graceperiod to assess the challenges faced while complying with the provisionsof the regulations.

• Some renewable power generators even approached the Bombay HighCourt, challenging the regulations on the state periphery charges.

• Afterwards, MERC directed the DSM working group to take up thecomputation of the state periphery charges.

• The DSM working group, in its analysis, said that the state had to payRs. 14.5 million to the regional pool, whereas the renewable energygenerators had to pay Rs. 698.8 million as pooling substation and stateperiphery charges. The DSM working group concluded that for all 19,488time-blocks of 29 weeks’ analysis period starting from 6 January to 26July 2020, MSLDC has calculated state periphery charges in line with theForecasting and Scheduling Regulations.

• MERC further noted that the renewable energy generators would gainexperience with time, and the forecasting accuracy would improve further.

TPREL seeking compensation for the increase in costs on account of

Change in Law event executed with MSEDCL

• TPREL has recently filed the Petition seeking compensation for theincrease in costs on account of Change in Law event. TPREL had enteredinto PPA on 27 July 2018 with MSEDCL for capacity of 150 MW from Solarpower project to be located in Rajasthan.

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• The main requests of TPREL are:

– Hold and declare that the change in rate of GST applicable to Supply and Service Contracts pursuant to the Notifications mentioned hereinabove, for setting up of TPREL’s solar power plants, amounts to Change in Law events under the PPA;

– Direct MSEDCL to make payment of the sum of Rs. 28.10 Crores along with the applicable carrying cost towards compensation for such Changes in Law events to TPREL.

BEST-SECI’s PPA for 400MW Wind-Solar Hybrid approved by MERC

• Brihanmumbai Electric Supply and Transport Undertaking (BEST) received approval from MERC on its petition to procure 400MW Wind-Solar Hybrid power from SECI.

• The PPA was approved at a tariff of INR 2.41/unit plus trading margin of INR 0.07/unit for a period of 25 years to fulfil its RPO obligations.

• The power will be procured from SECI’s 1100MW ISTS connected wind-solar hybrid projects (Tranche-III) which was awarded to ABC Renewable Energy(380MW), Adani Renewable Energy Holding Eight Ltd.(600MW) and AMP Energy(130MW) in an auction held in December 2020.

• BEST was initially offered 600MW from SECI at a tariff of INR 2.42/unit + INR 0.07/unit for SECI’s trading margins. However, BEST consented only 400MW.

BERC issued tariff order for FY 21-22 with key features

• Transmission losses of 3.00%

• Reactive Energy Charges – Rs 0.06/kVAr

Category Rs/kWh

Transmission Charges 1,92,167/MW/Month for long and medium term open access

consumers.

Transmission Charges 0.263 for short term open access consumers.

SLDC Charges 0.34

Cross Subsidy Surcharge 132 kV - 1.69 33 kV - 1.78 11 kV - 1.80

HTSS (11 kV & 33 kV) 0.52

Bihar

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29

GERC - ‘Change in Law’ Clause in PPAs Signed by Small Scale

Distributed Solar Projects Approved

• The Gujarat Electricity Regulatory Commission (GERC) has approvedthe incorporation of ‘change of law’ in the proposed power purchaseagreements (PPAs) by the Gujarat Urja Vikas Nigam.

• These PPAs are to be executed by the state DISCOMs with projectdevelopers under the ‘Government of Gujarat’s Policy for Development ofSmall Scale Distributed Solar Projects – 2019.’

• The Gujarat Government notified the ‘Policy for Development of SmallScale Distributed Solar Projects – 2019’ for procurement of power fromprojects of 0.5 MW to 4 MW capacity.

• Under the policy, any individual, company or body, corporate orassociation or body of individuals, co-operative society of individuals/farmers whether incorporated or not or artificial juridical person can set upsmall-scale solar projects.

• Such projects are set up exclusively for sale to obligated entities, i.e.,DISCOMS, to fulfil their RPO (renewable purchase obligation).

• However, certain provisions in the standard PPA executed by thepetitioners under competitive bidding were not incorporated in the draftPPA to be executed with small-scale solar project developers.

• Apart from this, introduction or changes in the rates of safeguard duty,anti-dumping duty, and customs duty, including surcharge, which directlyaffect the cost of solar PV modules, should also be considered a change inlaw.

GERC - Tariff framework for Procurement of Power by Distribution

Licensees and Others from Wind-Solar Hybrid Energy Projects

• Gujarat Electricity Regulatory Commission (GERC) has issued tariffframework for procurement of wind solar hybrid projects.

• The Commission proposes to determine the tariff for all prospectiveWind-Solar Hybrid power projects, based on the rates discovered throughcompetitive bidding.

• However, there could be cases of Wind-Solar Hybrid power projects belowthe threshold limit of eligibility for participating in competitive bidding.It is proposed that the tariff for such power projects shall be consideredequal to the tariff discovered through competitive bidding by state ownedDISCOMs, in different time period of 6 months of the year as under:

Gujarat

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• For Type – A (Existing projects): The purchase of power from additional /new capacity shall be at the weighted average tariff (for respective REaddition capacity i.e., Wind or Solar), available as on 1st April shall beapplicable for the projects to be commissioned under PPAs signed duringApril-September.

• For Type-B (New Projects): The purchase of power from such projectsshall be at the weighted average tariff (of Wind, Solar & Wind-SolarHybrid), available as on 1st April shall be applicable for the projects to becommissioned under PPAs signed during April-September.

• Wheeling of power for third party sale from Hybrid power projects shall beallowed on payment of transmission charges applicable on sanctioned/allocated transmission capacity, transmission losses on energy feed basis,wheeling charges and losses on the energy fed into grid. 50% of the CrossSubsidy Surcharge and Additional Surcharge, as applicable to normalopen access consumer, shall be applicable.

• Hybrid Project Developers, who desire to wheel electricity to more thanone location for captive use/third-party sale, shall pay INR 5 paise perunit on energy fed in the grid as measured at receiving end sub-station ofGETCO.

• Surplus power shall be compensated by the concerned DistributionLicensee at the rate Rs. 1.75 per unit or the lower rate, if any, specified bythe Commission. Provided that the surplus energy in case of either captiveuse or third-party sale shall not exceed 15% of the actual generation onannual basis.

Extension of time limit for execution of PPAs for the projects covered

in ‘Small Scale Distributed Solar Projects, 2019’ policy - GERC

• The Petition was filed before the Commission under Section 86 (1) (b) &(e) of the Electricity Act, 2003 by the GUVNL and others for incorporatingprovision regarding ‘Change in Law’ in the Power Purchase Agreementsto be executed by State DISCOMs with Project Developers underthe Government of Gujarat’s Policy for Development of ‘Small ScaleDistributed Solar Projects, 2019’.

• Due to COVID pandemic circumstances, it is not possible to execute thePPAs by the large number of solar projects owners who are requiredto execute the PPAs in prescribed time limit i.e., up to 30.04.2021 as peraforesaid order of the Commission. Hence, the Commission is requestedto extend the aforesaid time limit for a period of 1 to 3 months.

• The commission order that the time limit for execution of PPAs is furtherextended upto 31.05.2021 instead of up to 30.04.2021 as decided in Petition

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No. 1954 of 2021.

Average Pooled Power Purchase Cost (APPC) for the FY 2020-21 and

notifying provisional APPC for the year 2021-22 by KERC

• The KERC vide notification dated 20.03.2019, had notified the APPC underClause 7(c) of the KERC Regulations, 2011, at Rs 4.04/unit for the FY 2020-21, subject to truing up as per the actuals.

• The KERC commission, hereby, notifies the APPC at Rs 4.17/unit for the FY2021-22 with effect from 01.04.2021, which is subject to truing up, as per theactuals.

• In accordance with the KERC Regualtions, 2019, for FY22, the ESCOMs shallbill the RE generators selling to them under REC mechanism at lower of Rs.4.17/unit or 75% of the generic tariff determined for FY22, for the respectiveRE source by the commission, which is subject to truing up of APPC forFY22.

RERC - Regulations for Grid Interactive Distributed Renewable Energy

Generating Systems

• These Regulations shall apply to the Distribution Licensee and consumersavailing supply from such Distribution Licensee, in its area of supply in theState of Rajasthan.

• These Regulations shall apply to Net metering, Net billing and GridInteractive Distributed Renewable Energy generating systems that arecommissioned on or after 1st July 2021

• The quantum of electricity generated from the self-owned RenewableEnergy generating system under Net Metering arrangement, if installedon Eligible Consumer premises, shall be exempted from banking charges,wheeling charges, cross subsidy surcharge, and additional surcharge.

• Cross subsidy surcharge and additional surcharge shall be applicablefor such RESCO-owned Renewable Energy generating system undernet metering arrangement, except in case of LT domestic categoryconsumers, at the rate of 50% of cross subsidy surcharge and additionalsurcharge applicable for open access consumers.

• In case of consumer categories for which cross subsidy surcharge andadditional surcharge has not been determined by the Commission,surcharge (cross subsidy plus additional surcharge), shall be applicable @Rs 1.25/kWh for such category of consumers, till the same is revised bythe Commission through a separate order.

Karnataka

Rajasthan

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32

TNERC – Determination of additional surcharge payable by open

access consumers

• The petition is filed by the Tamil Nadu Generation and DistributionCorporation Limited before the Commission under TNERC (GridConnectivity and Intra-State Open Access) Regulations, 2014 fordetermination of Additional Surcharge payable by Open Accessconsumers availing power under open access.

• The National Tariff Policy provides the provisions that deal with thecalculation of cross subsidy surcharge and applicablility of additionalsurcharge to be paid by open access consumers.

• An additional surcharge sof Rs 0.85/kWh will be levied by TNERC on theconsumers buying power through IEX and open access mode w.e.f. 14thApril 2021.

• The state is already imposing cross subsidy charges which would makethe purchase of power under open access less attractive.

TNERC Directed to Pay ₹165 Million in Wind Dues with 12% Interest

• In 2011-12, Ratedi Wind Power approached TANGEDCO to sell 12 MWpower generated from its 15 wind projects in Tamil Nadu. TANGEDCOaccepted the proposal and agreed to buy the power. TANGEDCO and theRatedi Wind Power executed 15 separate EPAs with identical provisions.

• The wind generator, in its submission, said that it had not been paid forthe energy supplied since October 2017 despite there being no disputeconcerning the invoices.

• A total sum of ₹158.65 million (~$2.1 million) as the principal amount wasdue as of 11 December 2019.

• TNERC in its recent order, directed the TANGEDCO to pay $164.95 million(~$2.18 million) in outstanding dues and interest at the rate of 12% perannum to a wind developer within 30 days from date of the issuance of theorder.

TNERC DISCOM Ordered to Clear Outstanding Dues to Wind Urja India

• In 2013, Wind Urja India approached TANGEDCO to sell 12 MW of energygenerated from its 15 wind generators installed in Tamil Nadu. The windgenerator signed 15 energy purchase agreements (EPAs) with TANGEDCOon September 6, 2010. The agreed tariff for the supply of power was set at₹3.39 (~$0.045)/kWh.

Tamil Nadu

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33

• Wind Urja India said that it had not been paid for the energy suppliedunder the EPAs since October 2017 despite no dispute concerning any ofthe invoices. A total sum of ₹135.12 million (~$1.79 million) as the principalamount was due as of 11 December 2019.

• TNERC has directed the TANGEDCO to pay ₹132.8 million (~$1.76 million)in dues, including interest at 12% per annum to a wind developer within 30days from the issuance of the order.

Kerala DISCOM to Buy 300 MW of Solar From SECI at ₹2.44/kWh

• SECI had offered 200 MW under Tranche-I of the 6,200 MW of ISTS-connected solar projects linked with manufacturing projects in India on abuild, own, and operate basis to KSEB.

• The tariff quoted in Tranche-I ranged from ₹2.36 (~$0.031)/kWh to ₹2.92(~$0.039)/kWh. The weighted average of the tariff was ₹2.66 (~$0.035)/kWh under Tranche-I.

• In December last year, the State Commission had directed KSEB and SECIto proceed with the procurement of 200 MW of solar power at the pooledtariff of ₹2.66 (~$0.036)/kWh.

• SECI mentioned that it had given a revised offer to KSEB for 500 MW ofISTS-connected solar power under Tranche-IX at a tariff of ₹2.44 (~$0.032)/kWh, including the trading margin of ₹0.07 (~$0.0009)/kWh to make itcompetitive.

• In its order dated March 23, 2021, the Commission directed KSEB to file anamendment to the original petition for procuring 300 MW of solar power at₹2.44 (~$0.032)/kWh instead of 200 MW offered earlier under Tranche-I ofthe manufacturing-linked projects.

• KSERC, in its recent order, directed the SECI to finalize the draft powersale agreement (PSA) for 300 MW of solar and forward it to Kerala StateElectricity Board Limited (KSEB) by May 4, 2021.

Kerala

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34

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