RE
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November 2020

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Contents

1. Tenders | 5
New RFS Issued | 5 Re-
Tendered | 6
Date extension | 7
Auctions Completed | 7

2. Installed Capacity | 8

3. Investments/ Deals | 9

4. Monthly Import-Export Statistics | 10

5. Module Price Trends | 11

6. Policy and Regulation | 12

4
  

1.Tenders
New • About 191 MW of renewable tenders were issued in November 2020.
Tenders Meghalaya alone issued 80 MW of solar tenders this month.

• Auctions were completed for 1274 MW of solar projects. India saw

historic low of Rs 2/ kWh in 1070 MW solar tender by SECI in Rajasthan.

New RFS
Issued

Table 1.1: New RFS issued

Other Bid
Tender Capacity
Tender Name Technology Details Submission
Scope (MW)
(EMD) date

MCGM, 80 MW, Floating Solar, Project

Floating Solar 80 INR 47 million 10-Dec-20
Maharash-tra, Nov 2020 Development

MePDCL, 50 MW, Off-Grid Solar, Off-grid Solar Project

50 INR 400,000 30-Nov-20
Megha-laya, Nov 2020 power plants Development

MePGCL, 20 MW, Solar, Thamar Project

Solar 20 INR 400,000 17-Dec-20
&Suchen, Meghalaya, Nov 2020 Development

BHEL, 20 MW, Solar plant, NTPC

Solar BOS and I&C 20 - 10-Nov-20
Gandhar, Gujarat, Nov 2020

MePDCL, 10 MW, residential grid-

Grid-connected
con-nected solar rooftop, Meghalaya, CAPEX 10 INR 100,000 30-Nov-20
solar rooftop
Nov 2020

Tirunelveli Smart City Limited (TSCL), 3

MW, Solar, Eastern side of Tirunelveli, Small scale solar 3 INR 1.5 million 2-Dec-20
Nov 2020

Tirunelveli Smart City Limited (TSCL),

2 MW, Solar, Western side of Small scale solar 2 INR 1 million 9-Dec-20
Tirunelveli, Nov 2020

ITI Limited, 1.5 MW, Solar, Raebareli,

Small scale solar 1.5 INR 500,000 25-Nov-20
Uttar Pradesh, Nov 2020

5
  

Other Bid
Tender Capacity
Tender Name Technology Details Submission
Scope (MW)
(EMD) date

TSREDCO, 1.2 MW, Ground mounted Ground

RESCO 1.2 INR 900,000 26-Nov-20
solar, Vijay Diary Plants, Nov 2020 mounted solar

Bharat coking coal, 1.2 MW, Grid- Grid-connected

1.2 14-Dec-20
connect-ed solar rooftop, BCCL, Nov solar rooftop
2020

MES, 1 MW, Solar, Alwar, Rajasthan,

Small scale solar 1 INR 665,000 8-Dec-20
Nov 2020

TSREDCO, 1 MW, Ground mounted Ground mounted

RESCO 1 INR 900,000 26-Nov-20
solar, Hyderabad TSDDCFL, Nov 2020 solar

Apart from above tenders, there was an Expression of Interest (EoI)

issued by Coal India Limited (CIL), to develop 14 solar projects of 3 GW
in order to help its mining operations. In order to achieve this target a major
funding of nearly two-third of the total capacity of 3 GW of rooftop and
ground-mounted solar projects will be provided by the state-owned com-
pany. In addition to this the company would also enter into a joint venture
with the NLC India Limited and fund the rest of its solar expansion plans.
CIL plans to invest INR 56.50 billion by March 2024 for the same.

Re-Tendered

Table 1.2: Re-tendered

Bid
Tender Name Technology Other Details
Submission date
"Amount of Bid security:
• INR 20 Mn – 50 MW
NTPC, Gujarat, 500 MW, Solar EPC
• INR 50 Mn – 60 – 110 MW 24-Nov-20
Solar EPC package with land, May 2020 with land
• INR 100 Mn – 120 – 220 MW
• INR 200 Mn – 230-300 MW"

Nalanda University, Bihar, 5

Rooftop Solar INR 3.4 million 27-Nov-20
MW, Rooftop Solar, Mar 2020

6
  

Date Extension

Table 1.3: Date Extension

Bid
Tender Name Technology Other Details
Submission date

SECI, 7500 MW, Solar, Jammu & Kashmir,

Solar EMD - INR 0.6 million / MW 31-Jan-21
De-cember 2018

SECI, Pan India, 5,000 MW, Thermal + RE, EMD - INR 0.5 million/MW/Project
Thermal + RE 2-Dec-20
Mar 2020 PBG - INR 1.0 million/MW/Project

SECI, 2500 MW, ISTS, Solar UMREPP, EMD - INR 0.4 million /MW
Solar 28-Dec-20
Karnataka (ISTS X), April 2020 PBG - INR 0.8 million /MW

EMD - INR 5 Lakh/ MW/ Project

SECI, 1200 MW, WSH Power Tranche III, Jan 2020 WSH Power 2-Dec-20
PBG - INR 20 Lakh/ MW/ Project

RITES, 1 GW, Ground mounted solar PV,

Solar EMD - INR 1 million 25-Nov-20
Zonal Railways across India, April 2020

SECI, 100 MW, Solar, Chhattisgarh, 50 Solar +Battery

EMD - INR 70 million 15-Dec-20
MW/150 MWh BESS, Sept 20   Storage

BHEL, SCCL 10 MW, O&M of Solar projects,

Solar (O&M) EMD - INR 0.834 million 4-Dec-20
Tel-angana, July 2020

Auctions Completed

Table 1.4: Auctions completed

Capacity Capacity
Tender name Status tendered allotted Bidder details
(MW) (MW)
• Aljomalh Energy and Water Co.- 200
SECI, 1070 MW, Solar PV Results MW (INR 2.00/kWh)
1070 1070
Tranche III, Rajasthan, July announced • Sembcorp – 400 MW (INR 2.00/kWh)
2020 • NTPC Ltd. – 470 MW (INR 2.01/kWh)

KSEB, 200 MW, Solar, Results • Tata Power – 110 MW (INR 2.97/kWh)
200 200
Kerala, Sep 2020 announced • NTPC – 90 MW (INR 2.97/kWh)

SECI, 4 MW, Floating solar plant,

Results
Diglipur, North Andaman & 4 4 SunSource Energy
announced
Nico-bar, Jan 2020

7
 

2. Installed Capacity
In October 2020, a total of 406.22 MW of renewable energy capacity was
added, taking the cumulative RE capacity to 89.63 GW as on October
31, 2020. According to MNRE, projects of 49.59 GW are at various stages
of implementation while another 27.41 GW of projects are under various
stages of bidding.

Fig 2.1: State-wise installations in Solar and Wind during October 2020 – 406.22 MW

Cumulative Installations Capacity installed in October 2020

ll Hydro
Sma 300
r 14%
we
Po
% 250
11
o
Bi

200
Capacity (MW)
Win
43%
d

150
100%= 89.6 GW
100

50
1%
ar

4
0
ol

S Solar Wind

Source: MNRE, JMK Research

8
  

3. Investments/ Deals
Table 3.1: Investment and deals in November, 2020

Deal
Company Name Deal Type Sector Asset Investor
Value

ReNew Power Acquisition Wind 300 MW Ayana Renewable $ 205 million

(100% stake)

Avaada MHBuldhana Private Limited Equity Solar Bharti Airtel $606,990

(5.2% stake)

Vibrant Energy Holdings Acquisition Solar Blueleaf Energy Value not disclosed

Source: JMK Research

9
 

4. Monthly Import/ Export Trends

Compared to September 2020, solar imports have increased by 61% while
exports saw a surge of 25% in October 2020.

Fig 4.1: Exports - Imports trend

Exports Imports
Jun-19

Jul-19

Aug-19

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

-5,000 0 5,000 10,000 15,000 20,000

Exports-Import (INR million)

Source: Ministry of Commerce, JMK Research

10
  

5. Module Price Trends

Solar cells and modules - Global price trends

Compared to October 2020 prices, multi crystalline modules prices have

remained the same in November 2020, while the prices of cells and mono
PERC modules increased marginally by 1% and 1.3% respectively.

Fig 5.1: Solar Cells and Module price trends

0.25

0.23

0.21
Mono PERC modules

0.19
Prices (USD/wp)

0.17
Multi crystalline module

0.15

0.13

0.11

0.09

Cell
0.07

0.05
Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20

Source: PVInfoLink, JMK Research

11
 

7. Policies and Regulations

Central MNRE releases Concept Note for Development of Wind and Wind-
Solar Hybrid Parks

• Ministry of New and Renewable Energy (MNRE) with its notification

dated 13 November, 2020 has issued a detailed proposal for develop-
ing wind parks and wind-solar hybrid parks. Interested stakeholders
can submit their suggestions and comments by 28 November, 2020.

• As per MNRE aforementioned proposal, the probable sites for wind

and wind-solar hybrid projects have been identified with the help of
the National Institute of Wind Energy (NIWE). The locations have been
identified in Tamil Nadu, Andhra Pradesh, Karnataka, Gujarat, Rajast-
han, Madhya Pradesh, and Telangana.

• According to MNRE document, wind potential areas with more than

30% capacity utilization factor (CUF) will be considered. Each park
capacity should be 500 MW or more. However, parks of lower capacity
may also be developed depending on land and resource availability.

• The state government will play its role in selecting park for develop-ers
and helping them to acquire the identified sites. In case the power
generated from the park is exported to other states, the state govern-
ment will be entitled to a facilitation charge of Rs.0.05 /kWh of elec-
tricity exported to other states by the project developer.

• MNRE will provide central financial assistance at the rate of Rs.2.5

million/park to the developer for DPR preparation and CFA at the rate
of Rs.2 million /MW or 30% of the park development cost, whichever is
lower.

• MNRE issued tariff-based competitive bidding guidelines for power

procurement from grid-connected solar-wind hybrid projects. The aim
is to provide a framework for procuring electricity from the interstate
transmission system connected wind-solar hybrid power projects
through the competitive bidding route.

MNRE issued Clarifications for the KUSUM Solar Program

Ministry of New and Renewable Energy (MNRE) with its notification dated
13 November 2020 has increased the aggregate target to 30.8 GW from
25.7 GW by FY2023.

12
  

• Clarifications issued for three components of the Pradhan Mantri Kisan

Urja Suraksha evem Utthan Mahabhiyan (PM-KUSUM) program.

• Component A-objectives have remained unchanged, component B-

now aims to install two million standalone solar-power agricultural
pumps from its previous target of 1.75 million. Component C was also
revised to install 1.5 million grid-connected agricultural pumps from
one million earlier.

• As per MNRE clarifications in Component A, solar power projects can

also be installed on farmers’ pasture lands and marshlands. To support
small farmers, solar projects smaller than 500 kW can be allowed by
states based on their techno-commercial feasibility. The solar genera-
tor will have to complete the project within 12 months from the date of
the issuance of the letter of award (LoA). Also, there will be no penalty
for the generators for the shortfall in power generation from the mini-
mum prescribed capacity utilization factor (CUF).

• Earlier, individual farmers, cooperatives, panchayats, farmer producer

organizations (FPO) were permitted to install renewable power projects
of 500 kW to 2 MW on their barren or cultivable lands. Also, the time
for the completion of the project was set as nine months.

• For Component B of the program, MNRE will retain 33% of eligible

service charges for nationwide information, education, and communi-
cation activities. The MNRE has further clarified that solar pumps to be
set up and used by water user associations, farmer producer organiza-
tions, primary agriculture credit societies, or for cluster-based irriga-
tion system, the central financial assistance (CFA) will be provided for
capacity up to 5 HP for solar pumps that are above the 7.5 HP capacity.

• Also, a manufacturer of solar modules, solar pumps, or solar pump

controllers can participate in the bidding process. A joint venture of
manufacturers and system integrators can also take part in the tender.

• MNRE noted that the quantity equivalent to 10% of the total under the
particular category would be allocated to the L1 bidder. Further, the
option to match the lowest (L1) bidder will be provided to all bidders
falling under L1+15%. In case the number of bidders is less than five, the
same will be further extended to all bidders in ascending order of the
price quoted by them until all bidders agree on the L1 price.

• The test certificate for a particular model of solar pumping system

can be used by other installers, given the fact that they have obtained
permission from the owner of the test certificate.

13
 

• There will be a separate bid price for the solar water pumping system
with a universal solar pump controller (USPC). The subsidy will be
granted for these pumps according to the benchmark price for solar
pumps without USPC.

• For Component C as per MNREnotification, MNRE will release 50% of

the service charges for the sanctioned quantity to state implementa-
tion agencies after the placement of the LoA for preparatory activities.
For grid-connected solar pumps to be set up and used by water user
associations, farmer producer organizations, primary agriculture credit
societies, or for cluster-based irrigation systems, the central financial
assistance will be provided for capacity up to 5 HP for Solarization of
pumps above the 7.5 HP capacity.

MoP amended Bidding Process for RTC power procurement from

RE plus thermal Projects

• Ministry of Power (MoP) with its notification dated 3 November, 2020

has amended guidelines for Tariff based Competitive Bidding Process
for procurement of Round-the-clock power from Grid connected Re-
newable Energy Projects complemented with Power from Coal Based
Thermal Power Projects.

• As per this amendment, Round-the-clock power can now be bundled

with any non-renewable power sources instead of just thermal power.

• As per aforementioned amendments, to tackle the issues like inter-

mittency in power generation from renewable energy projects, limited
power supply hours, and the low capacity utilization of transmission
infrastructure, renewable energy projects can be bundled with “firm
power” from any other source or storage to provide round-the-clock
power to distribution companies (DISCOMs).

• As per revised guidelines, generators can complement or balance

their renewable power supply using power from any other non-
renew-able power source. There can only be one non-renewable fuel
source. The source and the committed supply capacity from these
sources cannot be changed for the PPA duration. Power generators
are not al-lowed to tie up with more than one bidder for the same
spare capacity.

• Generators supplying renewable RTC power bundled with any other

power source must commit and maintain at least 85% of the capacity
available annually and during peak hours.

• The peak hours will be declared by the regional load despatch center
14
  

(RLDC) as per the relevant Central Electricity Regulatory Commission

(CERC). Previously, the peak hours were to be specified by the procurer
in the bidding documents beforehand.

• In case of a shortfall from the specified 85% minimum capacity, gen-

erators are liable to pay the procurer a penalty of 400% of the cost of
power they fell short of. This will be computed based on the appli-
cable tariff during the year. Earlier, the amount of penalty was 25% of
the cost of the shortfall. This was to be calculated at the maximum
indexed composite tariff payable during the year.

• Penalty of 400% also applies to the shortfall in renewable energy if it

is lower than what was quoted at the time of bidding. Earlier, a penalty
of 25% was applicable if the shortfall was below 51% of the total power
quoted in a contract year.

• Earlier, bidders were allowed to quote a single composite tariff for RTC
renewable energy bundled with thermal energy. As per the revised
guidelines, the quoted tariff must now comprise four components – a
fixed component for the renewable power and non-renewable power,
and a variable component for the non-renewable component (scalable
for fuel) and non-renewable power (scalable for transportation).

• Fixed components must be quoted every year for the tenure of the
PPA. The variable components must be quoted on the scheduled date
of commissioning. Following this, the levelized tariff will be computed
as per CERC escalation indices depending on the type of fuel being
used and the discount factor, which will be specified in the bidding
document.

• Minimum capacity a bidder can quote remained at 250 MW to enable

economies of scale, but since bidders are not allowed to tie up with
more than one non-renewable source of power, the guidelines re-
moved the provision allowing bidders to place quotes for less than 250
MW of projects.

• MoP also revised the timeline for attaining financial closure of RTC pro-
jects by generators. Projects that are 1 GW and below must be closed
within 18 months from the date of execution of the PPA. For projects
larger than 1 GW, this limit was set at 24 months. Previously, projects
that are 500 MW and below were to be closed within one year, pro-
jects between 500 MW and 1 GW were to be closed in 18 months,
while projects over 1 GW were given two years to achieve financial
closure.

15
 

• In terms of project commissioning and the commencement of power

supply, projects smaller than 1 GW are now allowed two years, while
projects over 1 GW must be commissioned and start supplying pow-
er within 30 months. Previously, projects that are 500 MW and below
were allowed 18 months, projects between 500 MW and 1 GW were
allowed two years, while projects over 1 GW were allowed 30 months.

CEA annual report estimates Green Energy Corridor expense for

Evacuating Renewables

• The Central Electricity Authority (CEA), in its annual report for 2019-20,
issued updates on the Green Energy Corridor program for the trans-
mission and integration of renewable energy.

• The current estimated cost of intrastate and interstate transmission

systems required to evacuate renewable power is Rs. 126.9 billion and
Rs.154.5 billion, respectively.

• To boost the country energy and transmission efficiency, the MNRE

and PGCIL started the Green Energy Corridor program to evacuate
renewable energy from power surplus states to supply to power deficit
states.

• The lack of transmission infrastructure to support new renewable en-

ergy capacity additions has been a growing concern for solar and wind
companies in the country. India’s transmission and distribution system
require significant expansion, considering the expected surge in power
demand over the coming decade and the rapid installation of solar
and wind projects.

• The program is being implemented in the renewable energy-rich

states of Tamil Nadu, Rajasthan, Karnataka, Andhra Pradesh, Mahar-
ashtra, Gujarat, Himachal Pradesh, and Madhya Pradesh.

• Intrastate transmission programs are being funded through 20% equity

from the state government, 40% grant from National Clean Energy
Fund (NCEF), and 40% as a soft loan.

• Meanwhile, the interstate transmission programs are funded as 30%

equity by the Power Grid Corporation of India Limited (PGCIL) and 70%
as a soft loan. For the funding of green energy corridors for intrastate
and interstate transmission projects, KfW Germany has provided a soft
loan amounting to €1 billion. For interstate transmission projects under
Part A, B and C of the Green Energy Corridor program, a loan agree-

16
  

ment for financial assistance of €500 million from KfW, Germany has
been signed by PGCIL.

• According to the report, to facilitate grid integration of solar power

parks in 21 states under the Green Energy Corridor-II program, a com-
prehensive transmission plan was created to evacuate about 20 GW
through intrastate and interstate systems.

• In 2015, MoP assigned works for the transmission programs for so-
lar parks in Kunta (1500 MW), Pavagada (2000 MW), Rewa (750 MW),
Bhadla-III (500 MW), Bhadla-IV (250 MW), Essel (750 MW), and Ba-
naskantha (700MW). The transmission works for these solar parks have
been completed, according to the latest report.

• The annual report further noted that the country’s total energy require-
ment during the year 2019-20 was 1,291,010 MUs against 1,274,595 MUs
during the previous year 2018-19, an increase of 1.3%. The total energy
supplied in the country during the year 2019-20 was 1,284,444 MUs as
against 1,267,526 MUs during the previous year 2018-19.

• 63 sites for the development of pumped hydro storage with 96.5 GW

installation capacity have been identified across the country. At pres-
ent, nine pumped hydro storage projects (above 25 MW) having a total
installed capacity of 4.7 GW have been constructed, and three projects
(1.5 GW) are under construction.

Ministry of Finance Reduces Performance Security Deposits for

Solar Tenders to 3%

• Ministry of Finance (MoF) has issued a notification revising the perfor-

mance security deposits for tenders to 3% of the contract value from
the previous range of 5%-10%. This move is expected to help entities
execute contracts and projects on time amid the COVID-19 induced
economic slowdown.

• For Contracts, where the performance security has been reduced to

3%, are allowed to continue enjoying these benefits for the contract’s
entire duration. The performance security for these contracts will not
be increased even after 31 December, 2021. In cases where there are
compelling enough reasons for a higher performance security rate, a
higher authority’s approval is required.

• This benefit would not apply to contracts under dispute whose pro-
ceedings are already underway in court. All tenders and contracts that

17
 

have been issued or concluded until 31 December, 2021, will also be

eligible for the reduced performance security benefits.

Uttar UPERC issued Tariff Order for Power Distribution Companies, No

Pradesh Tariff Hike

• UPERC with its order dated 11 November, 2020 has issued Tariff order
for state owned distribution companies Dakshinanchal Vidyut Vitran
Nigam Ltd., Agra (DVVNL), Madhyanchal Vidyut Vitran Nigam Ltd.,
Lucknow (MVVNL), Pashchimanchal Vidyut Vitran Nigam Ltd., Meerut
(PVVNL), Purvanchal Vidyut Vitran Nigam Ltd., Varanasi (PuVVNL),
Kanpur Electricity Supply Company Ltd., Kanpur (KESCO) and for Noida
Power Company Ltd. (NPCL).

• UPERC in its Tariff Order stated that there would be no hike in power
tariffs and rejected the proposal of power distribution companies for a
marginal hike in tariffs.

• UPERC decided not to change the slab category and fixed charge,
which was kept at Rs. 110/kW/month.

• For urban domestic consumers the charges are at the rate of Rs. 5.50
per unit for first 150 units, followed by Rs. 6 per unit on consumption of
150-300 units.

• For the slabs between 301-500 units, a consumer would be required to

pay at the rate of Rs.6.50/ unit.Consuming electricity above 500 units
will require the consumer to shell out of Rs.7 per unit.

TANGEDCO asked to Pay Late Payment Surcharge to Wind Gener-

Tamil Nadu
ator

• SRB Consultancy Private Limited, a wind power generator, filed a

petition with the Commission to order TANGEDCO to release the total
late payment surcharge (interest on delayed payment) of Rs. 3.6 million
calculated at the rate of 1% per month from April 2012 onwards as
agreed in the power purchase agreement (PPA).

• SRB Consultancy had also requested the Commission to direct

TANGEDCO to release all future payments on time. Its wind project in
the Tirupur district of Tamil Nadu was commissioned on 6 March, 2012.

• Tamil Nadu Electricity Regulatory Commission (TNERC) directed the

18
  

Tamil Nadu Generation and Distribution Corporation Limited (TANGED-

CO) to rework the late payment surcharge at 12% per year for the
delayed payments. The regulator heard two separate petitions filed by
a wind power generator.

• The wind power generator had offered to reduce the interest rate to
6% per year if TANGEDCO paid the due amount within 60 days. Since
TANGEDCO failed to clear the dues, the Commission has now asked
TANGEDCO to pay interest at 12% per year for dues beyond 30 days of
receipt of the bill.

Tamil Nadu Sets Benchmark Tariff of Rs. 2.28/kWh for 20,000 Solar
Pumps

• Tamil Nadu Electricity Regulatory Commission (TNERC) has passed an

order setting a benchmark tariff of Rs. 2.28 /kWh to set up 20,000 agri-
cultural solar pumps under Component-C of the KUSUM program.

• TNERC also set a Rs. 1 /kWh incentive for farmers for exporting sur-
plus energy back into the grid.

• The Commission noted that the minimum incentive should be subject

to the condition that the solar project is functional. A project will be
considered functional if at least 50% of the project’s generation capac-
ity has been achieved during the period for which the minimum incen-
tive is proposed to be paid.

• The generation potential will be calculated based on the capacity

utilization factor and grid availability parameters the Commission used
in its LCOE calculation. The minimum incentive was set at Rs. 3,000 per
year for a 7.5 HP pump and an 11-kW solar system. The maximum was
set at Rs. 15,000 per year.

• An energy meter to record gross solar power generation and a ser-vice

connection energy meter with programmable time-of-day (TOD)
feature must be installed at each farm, the Commission said. The solar
power generation meter must be sealed jointly by TANGEDCO and the
RESCO (TEDA), while the service connection meter is to be sealed by
TANGEDCO.

• The Commission factored in capital costs, capacity utilization factor

(CUF), grid availability factor, the life of the project (25 years), interest on
loan, depreciation, interest on working capital, among other factors,
and then arrived at a LCOE of Rs. 2.28 / kWh.

19
 

Assumptions Value

Solar PV System Capacity 11kW

MNRE Benchmark cost Rs. 48000/kW

Capital Cost Rs. 48000/kW

MNRE Subsidy 30%

Government of Tamil Nadu Subsidy 30%

Equity (% of net capital cost after subsidies) 30%

Return on Equity 16.96%

Interest on Loan 9%

Loan tenure (including moratorium) 11 years

Loan principle payment moratorium 1 year

Solar PV system CUF 19%

Daytime grid availability (rural feeder) 90%

O&M (percentage of gross capital cost) 1.40%

O&M annual increase 5.72%

Annual depreciation rate on net capital cost 3.60%

Working Capital –O&M 1 month

Working Capital - receivables 2 months

Interest on Working Capital 10.50%

Discount factor 8.67%

Economic life of system 25 years

LCOE Rs. 2.28 /kWh

Karnataka KERC issued Tariff Order for Power Distribution Companies for FY
2020-21

Karnataka Electricity Regulatory Commission (KERC) has issued the retail

tariff order for various distribution companies (DISCOMS) for FY 2020-21
on 4 November, 2020. The new tariffs will come into force

20
  

from 1 November, 2020.

• Bangalore Electricity Supply Company (BESCOM) had proposed an in-

crease in electricity tariff of Rs.1.96 /kWh for all categories of consum-
ers resulting in an average increase in retail supply tariff by 25.24%.

• KERC has approved an increase of Rs.0.40 /kWh, accounting for just

a 5.17% average increase. The tariff increase allowed by the Commis-
sion is Rs.0.40 /kWh for all the DISCOMs in the state though they had
requested for a higher hike in tariff.

• KERC has allowed the recovery of additional revenue partly by increas-

ing the energy charges in the range of Rs. 0.20 to Rs. 0.25 /kWh for all
categories.

• KERC has continued with the tariff schedule for concessional power
supply to the electric vehicle charging stations by including the EV
battery swapping stations, without increasing the energy charges of
Rs.5 /kWh. It has been maintained in the orders for all the DISCOMs in
the state.

• The green tariff of an additional Rs. 0.50 /kWh over the standard
tariff, which was introduced a few years ago for HT industries and HT
commercial consumers, to promote the purchase of renewable ener-
gy from ESCOMs has been maintained. It will be the same for all the
DISCOMs.

• KERC determined a wheeling charge of Rs. 0.23 /kWh for the HT net-
work and Rs. 0.54 /kWh for the low tension (LT) network.

• KERC also noted that the wheeling charges would apply to all open
access consumers using the BESCOM network only, except for ener-
gy transmitted from renewable sources. For wheeling of energy from
renewable energy sources, separate orders issued by the Commission
from time to time will be applicable.

• KERC has extended the validity of the existing tariff structure deter-
mined by the Commission in August 2019. The earlier regulation had
expired in April 2020. The extension has been provided for one year
from 1 April, 2020, to 31 March, 2021. The extension will facilitate the
seamless development of solar projects, including rooftop solar instal-
lations in the state.

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Rajasthan Rajasthan issued RE Tariff regulations, Banking restricted to 25% of

Injected Energy

• Rajasthan Electricity Regulatory Commission (RERC) has issued reg-

ulations for determining tariffs for renewable energy-based power
sources for 2020.

• Renewable energy with storage projects installed after the date of

notification of these regulations and before 31 March, 2023, are given a
75% exemption in intra-state transmission and wheeling charges. These
projects could be set up as a captive project or supplying power to a
third party under open access. This exemption is applicable for the first
seven years of operation from the project’s date of commissioning.

• Existing wind projects that have been in operation for at least ten years
would be considered for repowering. Wind, solar, small hydro, so-
lar-wind hybrid, and MSW projects will be treated as “must-run” pro-
jects.

• Surcharges for bill payments delayed over 45 days from the date of in-
voice will be charged at a rate equivalent to the base rate on April 1 of
the corresponding year along with a 400 basis-point-per year for each
day the payment is delayed.

• The regulations stated that the maximum permitted capacity of eligi-

ble new renewable-based captive projects, including projects installed
behind the meter, will be limited to 100% of the contracted demand.
This energy can be consumed and banked from new renewable cap-
tive generating projects and will be limited to 5% over the minimum
capacity utilization factor (CUF) or plant load factor (PLF).

• There is a 100% exemption in intra-state transmission and wheeling

charges for solar power project set up after the notification of these
regulations and before 31 March, 2023, for supplying power to electric
vehicle charging stations either under captive route or through open
access. This exemption is applicable for the first ten years from setting
up electric vehicle charging stations. This exemption applies to pro-
jects with an individual plant capacity of a maximum of 25 MW and for
the total capacity of 500 MW.

• RERC said that banking of energy subject to a maximum of 25% of

energy injected by captive renewable projects during 15-minute time
blocks at the consumption end would be allowed only for captive con-
sumption within the state.

22
  

• Banking charges of 10% of the banked energy must be paid and ad-
justed against the energy banked before it was drawn.

• The regulations stated that renewable energy projects must pay grid
connectivity charges of Rs. 250,000 /MW to transmission or distribu-
tion licensees. They also said that energy would be accounted for by
metering when power is sold to distribution licensees.

• The regulation will be in effect from 1 April, 2020. The control peri-
od for these regulations will be four years starting 1 April, 2020, to 31
March, 2024. The regulations will apply to new and existing renewable
energy-based sources of power in Rajasthan that generate and sell
electricity to distribution licensees in the state.

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