MNRE – Setting up 750 MW Solar PV projects – Further updates

Ministry of New and Renewable Energy (MNRE) has released a document stating that the Cabinet Committee on Economic Affairs has approved the scheme for setting up 750 MW Solar PV projects through VGF with support from the National Clean Energy Fund (NCEF). This document released by Solar Energy Corporation of India (SECI) can be downloaded here. MNRE has also once again announced revised guidelines for this scheme. The revisions/additions made to the recently revised guidelines as mentioned in this latest document are mentioned below: Tariff to be paid to the developer availing accelerated depreciation benefit is reduced to Rs. 4.75 per unit If the project fails to generate any power continuously for 1 year within 25 years or its major assets are sold/ project dismantled during this tenure, SECI will have right to refund VGF as specified below: These guidelines are also said to facilitate fulfillment of RPO of obligated entities Revised time schedule: The original document containing these revised guidelines can be downloaded here. The earlier released tentative date for issuance of RfS for …

MNRE announces Revised Draft Guidelines for selection of 750 MW Solar PV projects through VGF

After announcing a draft methodology document earlier in May for selection of 750 MW Grid connected Solar PV projects under JNNSM Phase -II, Batch-I through Viability Gap Funding (VGF), MNRE once again released a draft document with revised guidelines. Our blogpost on the draft document released in May can be accessed here. Additions/revisions made to the earlier guidelines as mentioned in the latest document are mentioned below. Domestic Content Requirement (DCR) Out of the total 750 MW, 375 MW will be kept for bidding with DCR, i.e. 50% of projects will be built with DCR Both solar cells and modules used in these power plants must be made in India Mechanism of VGF Disbursement of VGF will be done in three stages: 50% on successful commissioning (COD) of the full capacity Remaining 50% progressively over the next 5 years as follows: End of 1st Year from COD – 10% End of 2nd Year from COD – 10% End of 3rd Year from COD – 10% End of 4th Year from COD …

MNRE – Strict Enforcement of RPO for States

Ministry of New and Renewable Energy (MNRE) has made a much needed and significant move by suggesting to the Ministry of Power to make it mandatory for states to fulfill their Renewable Purchase Obligation (RPO). As per this suggestion, if the states fail to do so then they will not receive concessions from Centre under financial restructuring scheme of State Discoms. (Source: Times of India) Earlier Maharashtra Electricity Regulatory Commission (MERC) and Punjab Electricity Regulatory Commission (PSERC) had directed their obligated entities to fulfill their RPO targets. Our blogpost on this enforcement is available here. These decisions by the Central and State authorities are much needed to improve the current state of the Renewable Energy Certificate (REC) market and also increase the share of renewable energy in the total energy mix. At the same time we need to wait and watch and hope that these decisions turn into actions.

Chhattisgarh – RfP for 50 MW Grid Connected Solar PV

Chhattisgarh State Power Distribution Company Limited (CSPDCL) released a RfP document for procurement of 50 MW Solar Power for long term from grid connected Solar PV power projects through a tariff based competitive bidding process. Given below are some important points from this document. Capacity: Total capacity – 50 MW Minimum bid capacity 2 MW and maximum 50 MW  in multiples of 2 MW capacity Tariff and PPA: Bidders should quote single tariff for 20 years  PPA will be signed for 20 years with CSPDCL for power procurement After 20 years the agreement can be renewed with CSPDCL for further 5 years at the then prevailing APPC Financial Criteria: Net worth – Rs. 3.50 Crore/ MW for capacity up to 25 MW Additional net worth of Rs. 2.50 Crore/ MW for every MW beyond 25 MW Bank Guarantees: Bid bond – Rs. 20 Lacs /MW of offered capacity Contract performance guarantee – Rs. 75 Lacs / MW to be submitted within 15 days of issue of Letter of Intent Bidding …

Andhra Pradesh to host the 2nd Save Power – Renewable Energy Exhibition

After conducting the 1st Save Power – Renewable Energy Exhibition in Cochin, Kerala, Andhra Pradesh will be hosting the 2nd Exhibition this week in association with New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP). It will provide a platform for stakeholders in Renewable Energy sector to explore new business opportunity in this state. Renewable Energy and Energy Efficiency products and solutions from all over the world will be showcased here for potential buyers from Utility, Independent Power Production (IPP), Captive Power Production (CPP), Industrial, Commercial and Domestic Sector. There is also a one day seminar on Solar Captive Power Plants and Industrial/ Commercial Rooftops that is being organised along with this exhibition. Dates: 3rd – 5th October, 2013 Venue: HITEX Exhibition Centre, Hyderabad Further information regarding this Exhibition including details of registration are available here and information regarding the seminar is available here.  

Andhra Pradesh Solar Bidding and Open Offer Update

Andhra Pradesh and Tamil Nadu have been the most followed states in the recent times on the Solar front owing to their hugely popular 1000 MW Solar tenders (Andhra Pradesh and Tamil Nadu) and Net Metering Policies (Andhra Pradesh and Tamil Nadu).  As announced a couple of weeks back, Tamil Nadu is trying to expedite things resulting in close to 700 MW expected to be signed by the end of October. On the Andhra Pradesh front, while no official announcement has been made, sources indicate that close to 49 MW of PPA from 5 companies have been signed as part of the Solar bidding that was conducted in February this year. It is also learned that close to 86 MW from around 11 developers are at various stages of the process and Performance Bank Guarantees (PBG) have already been submitted for the same. In all, close to 135 MW seems to be potentially tied up in PPAs which is considerably less compared to the size of 1000 MW for which …

Smart grid – Vision and Roadmap announced for India

The Ministry of Power has released a document containing the Vision and Roadmap for Smart Grids in India.  A Smart Grid has automation, communication and IT systems and can monitor power flows from points of generation to points of consumption and control the power flow or curtail the load to match generation in real time or near real time. With the increasing share of renewable energy in the total energy mix, there is a need for smart grids in India to manage this efficiently ensuring stability and reliability. For this, the Ministry of Power had constituted India Smart Grid Task Force (ISGTF) and India Smart Grid Forum (ISGF) in 2010. This roadmap was prepared keeping in view the ministry’s objective “access, availability and affordability of power for all”. Some of the important points from this document regarding the vision, targets and outcomes are mentioned below: Distribution: Electrification of 100% households by 2017 with uninterrupted life line supply – 8 hrs/day minimum including evening peak Reduce AT&C losses to below 15% …

Rajasthan – Final RfP for 50 SPV plants (1MW each)

After releasing the draft RfP for selection of developers for setting up 50 Solar Photovoltaic projects each of 1 MW capacity earlier in June, Rajasthan Renewable Energy Corporation Limited (RREC) has recently issued the final RfP for the same. Our blogpost on the draft RfP can be accessed here. Given below are some of the changes noted in the final RfP document: Bank Guarantees – Earnest Money Deposit (EMD): Rs. 10 Lac/MW as against Rs. 20 Lac/ MW announced in the draft RfP Bid bond: The Benchmark tariff referred to here is the Generic levelised Tariff after conidering accelerated depreciation declared by Rajasthan Electricity Regulatory Commission (Order dt. 04.09.2013) – Rs. 7.31/ kWh Total Performance Bank Guarantee: Performance Guarantee – Rs. 15 Lac/MW as against Rs. 20 Lac/MW announced in the draft RfP Important dates – The time schedule for this bidding has been announced in this final RfP as given below: For further details regarding this RfP including the formats for bid submission, the original document released on the …

Bihar once again extends the last date for 150 MW Solar PV bid

Bihar State Power (Holding) Company Limited (BSPHCL) has again extended the last date for sale, submission and opening of bids for setting up 150 MW Grid connected Solar PV projects coupled with Pisci-culture. This announcement was made on their website in Corrigendum-V. With this extension, Bihar has extended the last date four times since the Tender was initially announced in May, 2013. The pre-bid meeting was held on 1st June, 2013 and original date for opening of the technical bid was 28th June. The details of the original RfP are available here. Even though there is no reason cited in these documents for the extension, it could be attributed to insufficient responses received by BSPHCL owing to the temporary slowdown of the Solar market. The new deadlines as mentioned in the latest Corrigendum document are given below: Last Date for online Sale of Tender: 7th October, 2013 up to 17:00 Hrs Late Date for online submission of Tender: 8th October, 2013 up to 13:00 Hrs Date and time of opening of Technical Bid: 8th …

REC Trading in September’13

The number of Non-Solar Buy-bids still remained low, similar to that of August. Solar REC buy-bids however increased significantly as compared to last month with the clearing price remaining at floor price – Rs. 9300. The table below summarizes the trading for September on each of the Power Exchanges – IEX and PXIL Here are a few numbers and graphs with respect to Solar and Non-Solar REC trading in September.   Non-Solar REC trading: As is the trend, all the Buy Bids (49831) were cleared this month. This resulted in a Trading Value of Rs. 7.47 Crores. Clearing Price stood at the usual Rs. 1500 owing to oversupply. The graph below shows the trends in Buy Bids, Sell Bids, Traded volume and Clearing Price for the last 3 months. Solar REC Trading: This month the supply of solar RECs was 7.3 times that of demand. The clearing price for both the exchanges remained at the floor price – Rs.9300/REC. The total number of Sell Bids was 64.5% more than that …

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