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Volume 01 | Issue 04 | June 2021 | ₹250

India’s Q1 2021 Solar


Installations Up 88%
Mercom India Research’s Q1 2021 India Solar Market Update reveals
large-scale solar projects totaling 1,749 MW were added during the
quarter along with 307 MW in rooftop solar installations
Inside
front
CONTENTS
Volume 01 | Issue 04 | June 2021

04 10 16 18
POLICY POLICY POLICY POLICY

Haryana National Production- Renewable


Releases Draft Electricity Policy Linked Incentive Projects Get
Solar Policy – Preparing India’s for Battery Time Extension
Power Sector for Storage Amid Covid-19
the Future Surge
The policy focuses on rooftop The national policy covers The government is considering MNRE has stated that
solar projects and small-scale guidelines on optimal battery storage as one of the renewable projects could claim
distributed solar systems generation mix, transmission, ten critical sectors under extension due to the resurgence
besides exploring the potential distribution, grid operation, the PLI program in a push of the Covid-19 pandemic but
of megawatt-scale solar projects power markets, regulatory for manufacturing advanced cautioned developers not to use
and parks process, and energy batteries domestically it to terminate PPAs
efficiency

21 26 32 34
POLICY POLICY MARKETS TECHNOLOGY

Union Territories Regulators Solar Imports and Molecular Glue


Revamp Tariffs Mulling Ways to Exports Surge in Boosts Efficiency
for Renewables Reduce Retail Q1 2021 of Perovskite
Power Tariffs Solar Cells

The central electricity regulator Regulators from 12 states With the pandemic waning Researchers at Brown University
has mandated the filing of tariff have suggested measures, in Q1 2021, solar imports and have identified the weak link in
petitions on time every year. The highlighting the need for a exports soared QoQ. However, the cells and increased their
union territories that have been so coordinated effort between the commercial activities have since functionality by devising a glue
far deferring tariff determination central and state governments slowed down with the second that keeps a key interface inside
have been actively submitting the to contain high retail power wave of the Covid-19 pandemic cells from degrading
petitions tariffs

June 2021 Issue 04 1


CONTENTS
Volume 01 | Issue 04 | June 2021

38 42 46 52
TECHNOLOGY MARKETS MARKETS POLICY

Rechargeable Off-Grid Solar Policy Hurdles, Regulatory


Cement-Based Product Sales Volatile Market Approval for
Batteries – New Slide Cast Shadow on Tariffs Discovered
Sustainable Rooftop Solar in Gujarat Solar
Building Materials Auction

Researchers have devised a The study by GOGLA noted that Although the pandemic has The Gujarat Electricity Regulator
rechargeable prototype of a sales of off-grid solar products in accelerated the C&I consumers’ has approved the tariffs in a
high-rise concrete structure India have been on a downward plan to go solar, developers are recent solar auction and also
mixed with short carbon fibers trend since 2018, which seems confronting slow business activity directed the DISCOM to sign
capable of storing energy to have been accelerated by the due to the policy uncertainty and PPA after adding a late payment
like a giant battery with huge Covid-19 crisis inability to close deals surcharge clause
commercial potential

54 58 60 64
MARKETS POLICY NEWS IN BRIEF TENDERS & AUCTIONS

India’s Q1 2021 National Mission Industry News Major Tender


Solar Installations for Biomass Use and Policy Briefs and Auction
Up 88% in Coal Power Announcements
Plants in May

Mercom India Research’s Q1 The mission’s purpose is to A compilation of important This is a list of major tenders
2021 India Solar Market Update address rampant air pollution news and policy updates on and auctions from May. A
reveals large-scale solar caused by the burning of farm the Indian solar and other comprehensive list can be
projects totaling 1,749 MW were stubble and reduce the carbon clean energy technologies found on Mercom’s Tender and
added during the quarter along footprint in thermal power Auction Tracker and Alerts.
with 307 MW in rooftop solar generation
installations

2 www.mercomindia.com June 2021


Foreword
espite a lot of potential, the rooftop

D segment is still struggling in India


Editorial Team
and makes up just 13% of the installed Publisher
capacity to date. Mercom Communications India Pvt. Ltd.
The energy costs for commercial and industrial
(C&I) units in India account for around 30%-40% Managing Editor
of the operational expenses. Embracing solar Priya Sanjay
seems like the most logical step towards saving the
Editorial Staff
cost, and the pandemic has only accelerated that
Srinwanti Das
decision. However, C&I consumers are enduring challenges every step of the
Rahul Nair
way when installing a solar system.
Rakesh Ranjan Parashar
Part of the problem started when the Ministry of Power announced in
Utsav Sinha
December last year that it would be mandating net metering for loads up to
10 kW and gross metering for loads exceeding 10 kW. After wide criticism Editor - Research
by stakeholders, the ministry, in April 2021, decided to allow net metering Hussain Babu
for loads up to 500 kW. This was a good four months of policy uncertainty.
This ended up being a huge snag for the industry, which was witnessing Editor – Data
significant demand. R Govind
Rooftop installers have reported that the inquiries from the C&I
Sales & Marketing
consumers have more than doubled even during the lockdown from the
Akshay Malgi
second wave of COVID in the country. During the first quarter and early
second quarter, installations came to a standstill even with growing demand Design and Graphics Lead
only because of the confusion in the net metering regulations. Now with Hariprasad M
the cap at 500 kW, most consumers are considering smaller capacity
installations to ensure they get the net metering benefit. Production
Dropping the net metering cap from 1 MW to 10 kW was a serious blow Sneha Printers
to the rooftop solar market at a time when it was on the rise, generating
economic activity and creating jobs. The most important thing the Mercom Communications India Pvt. Ltd.
government can do is to ratify and approve net metering for loads up to 500 #590, 1st main road, 3rd block, Dollars Colony,
kW and remove any ambiguity in the market so that the sector can resume RMV 2nd stage, Bengaluru-560094
activity with complete certainty. t | 91.80.23560436 e | info@mercomindia.com
Mercom India’s new open access report indicates, more open access
projects were added in Q1 2021 than all of 2020. The open access market is
providing an alternative opportunity for developers and investors who do
not participate in auctions for large projects, considering they are highly Copyright @2021 Mercom Capital Group,
competitive and limited to specific geographies. The developers can choose
LLC. Mercom India magazine is published by
Mercom Communications India Pvt. Ltd.
the customers to offtake the power they produce and earn an attractive
return on investment. For DISCOMs, this measure works as a new avenue Contents may not be reprinted or otherwise
to bring private investment into the sector and address the shortage of reproduced without written permission.
electricity and encourage green power generation. Mercom India Magazine is an independent
There is huge pent-up demand for open access despite restrictive forum for the expression of opinions relevant
policies. With the right, consistent, supportive policies, a substantial amount to industry issues. The views expressed in
of investment inflows can be unlocked. The government’s proposal to cap this magazine is that of the authors and may
net metering for rooftop solar at 500 kW is also leading many consumers not necessarily be that views of the publisher.
with larger power demand to consider open access solar as a solution. Every effort is made to provide accurate
information; however, the publisher assumes
no responsibility for the accuracy of submitted
Raj Prabhu advertorials or editorial information.
CEO
Mercom Capital Group www.mercomindia.com

June 2021 Issue 04 3


Haryana Releases Draft
Solar Policy
The policy focuses on rooftop solar projects and
small-scale distributed solar systems besides
exploring the potential of megawatt-scale solar
projects and parks
By : Rahul Nair

4 www.mercomindia.com June 2021


June 2021 Issue 04 5
Policy
he New and Renewable Only new plants and machinery net-metering, and gross metering on

T Energy Department,
Haryana, issued the draft
‘Haryana Solar Power Policy,
will be eligible for installation under
this policy. In the case of solar thermal
power projects, fossil fuel beyond the
government buildings, among others.
The regulators have to estimate the
entire cost incurred towards purchasing
2021’, and requested government ceiling allowed under the Ministry of solar power in the annual recurring
stakeholders to send their comments. New and Renewable Energy (MNRE) revenue order issued from time to time.
The new policy will supersede the will not be used. No fossil fuel will be Consumers will be allowed to set up
Haryana Solar Power Policy, 2016. allowed. projects to fulfill their RPO regardless of
The draft notification identifies their contract demand.
Haryana as an agrarian state with Renewable Purchase Obligation
several geographical constraints such The capacity installation targets for Projects for sale of power to the
as high cost and paucity of barren land the distribution companies (DISCOMs) DISCOMs below 2 MW
within its borders, with low potential will be based on the Renewable Power DISCOMs may procure power from
for wind or hydropower. It adds that the Purchase Obligation (RPO) defined distributed solar projects up to 2 MW
state must focus mainly on rooftop solar by Haryana Electricity Regulatory capacity, at pre-fixed levelized tariff as
projects and small-scale distributed Commission (HERC) from time to determined by HERC, subject to the
solar systems besides exploring the time. To achieve the solar RPO, the spare capacity available at the nearest
potential of megawatt-scale solar government plans to install large-scale substation. As per the RPO, 20% of the
projects and parks. solar projects by the Haryana Power targeted solar power purchased by
The notification adds that efforts are Generation Corporation on its land DISCOMs will be reserved for such small
being made to promote the usage of or government land, or solar parks. generators below 2 MW capacity.
solar energy with suitable incentives and Solar installations could come up on Individuals and micro, small and
policy frameworks for the agriculture canal top, canal banks, waterworks and medium enterprises with land will be
sector and the solarization of electrical reservoirs, rooftop solar systems under allowed to sell power from only one
vehicle (EV) charging stations.
The solar power systems installed
and commissioned during the operative
C&I units will be allowed
period will be eligible for the benefits
and incentives declared under this
to consume 90% of annual
policy, for 25 years from their date of
commissioning or for the life span,
consumption from captive
whichever is earlier, until otherwise
notified by the state government. solar projects

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Solar Policy

such project with a maximum of 2 MW are set up will be out of the scope of the institutes, schools, colleges, commercial
capacity to the DISCOMs. Land Ceiling Act of the government. and social institutions, charitable trust
buildings, hospitals, and residential
Large-scale solar projects for captive/ Preference to solar projects with buildings will be promoted for their
third-party sale storage captive use with or without net metering
The state will also provide Ground-mounted solar project facility as per the HERC Regulations. The
transmission and banking facilities for installation with storage will be rooftop solar systems may be installed
setting up solar projects for captive promoted and given preference in either on the capital expenditure
consumption or third-party sale within granting approvals. The preference will model or the renewable energy service
Haryana. For third-party sale outside the company model.
state, the transmission facility will be
provided under open access by the state State wants Virtual net-metering
power utilities, while the banking facility Virtual net-metering (VNM), including
may be provided by the state in which to solarize group virtual net-metering, may be
power is being consumed as per their promoted in urban areas. These would
regulations.
Any industrial or commercial unit
electrical be encouraged, and eligible consumers
would be facilitated, especially those
in the state will be allowed to consume
90% of its annual consumption from the
vehicle charging located in the urban centers of Haryana
who have constraints like access to
solar project.
stations adequate rooftop areas or inaccessible
rooftops.
Panchayat land on lease or rent With virtual net metering, consumers
The state government may facilitate also be given in the tariff if purchased can own a part of a collectively-owned
the lease or sub-lease of panchayat by the Haryana Power Purchase Centre. solar power generating system. All
land at reasonable rates through any The state will also promote solar energy produced by such a solar
government agency or directly through projects with storage systems for captive system will be fed into the grid through
the panchayat for setting up solar use and third-party sale. an energy meter, and the exported
projects for a minimum period of 30 energy, as recorded by that meter, will
years. Rooftop grid-connected solar be credited to the electricity bill of
projects each participating consumer based on
Land Ceiling Act for setting up solar Installation of rooftop solar systems beneficial ownership.
projects of capacities in the range of 1 kW to 2
The land area where solar projects MW at industries, public and private Power evacuation facility

June 2021 Issue 04 7


Policy

All expenses for power evacuation, from the date of power banked by the HERC, for drawl of additional power
transmission, distribution, and licensee, and the developer will pay the from the grid by such charging stations,
synchronizing equipment required for difference of unscheduled interchange apart from generating solar power. Per
installation will be as per the orders of charges at the time of injection and at unit charges to be levied for charging of
the HERC on renewable energy. the time of withdrawal. EVs will not be more than ₹5 (~$0.068)/
DISCOMs will bear the cost of The banking facility will be allowed kWh in addition to per unit charges of
extra-high voltage and high voltage for the grid-connected rooftop solar DISCOMs.
systems to be installed for captive use
and third-party sale on the same lines as Exemption of wheeling,
Virtual net- ground-mounted solar projects. transmission, cross-subsidy charges,
and additional surcharges
metering will Manufacturing units
A 10% tax exemption on total
Wheeling and transmission charges
will be exempted for all captive solar

be promoted in applicable tax will be provided by the


Industry & Commerce Department,
projects that have already been
approved, in March 2019, by HAREDA.

urban areas Haryana, for setting up manufacturing


units of devices and equipment related
The cross-subsidy surcharges and
additional surcharges are not applicable
to solar power, for a limited period. for captive solar projects.
transmission lines up to 10 km. If the Land for setting up such units will be In case projects are set up for third-
distance between the interconnection allotted on priority. party sale, cross-subsidy surcharge and
point and point of grid connectivity additional surcharge will be similar
is more than 10 km, then the cost of Solar energy-based EV-charging to normal open access consumers as
the transmission line for the distance stations determined by HERC from time to time.
beyond the 10 km will be borne equally New & Renewable Energy
between the project developers and Department will implement the program Solar cities
the licensee, only if the power is to be per MNRE guidelines and invite the The notice also says that the state will
supplied to DISCOMs under approved bids. The grid connection to the EV- promote the concept of solar cities and
power purchase agreements. charging stations will be provided by the solar villages. In solar cities and solar
DISCOMs. The total power produced will villages, 20% of the energy requirement
Banking be counted towards the solar RPO of the will be met from solar energy.
The banking facility will be allowed DISCOMs. HERC had earlier announced that open
for captive and third-party solar The DISCOMs and HPPC will get a access solar consumers in the state would
generation projects for six months separate tariff category approval from not have the net-metering facility.

8 www.mercomindia.com June 2021


June 2021 Issue 04 9
National Electricity
Policy – Preparing
India’s Power Sector
for the Future
The national policy covers
guidelines on optimal generation
mix, transmission, distribution, grid
operation, power markets, regulatory
process, and energy efficiency
By : Rahul Nair

10 www.mercomindia.com June 2021


June 2021 Issue 04 11
Policy
he Ministry of Power (MoP) Optimal Generation Mix-Renewable to its environmental benefits that couple

T has released the draft


National Electricity Policy
(NEP) 2021 and invited
Energy Source and Cogeneration
According to the draft, as of March
31, 2020, the total installed capacity
with energy security. The MoP also
wants to encourage hybrid renewable
energy like wind-solar, solar-biomass,
suggestions from all stakeholders. through renewable energy sources was solar mini-hydel, etc., with or without
The MoP has created an expert about 87 GW, while the government energy storage systems.
committee that includes members from has set a target of 175 GW generation According to attorney Aditya K.
state governments, the Ministry of New capacity from renewables by 2022. Singh, an Associate Partner at Link
and Renewable Energy, NITI Aayog, and The long-term requirement of Legal, “NEP is emphasizing on the
the Central Electricity Authority (CEA). balancing capacity needs to be growth of renewables as well as
Stakeholders such as Central reassessed by the CEA in consultation reliability of generation. Keeping these
Public Sector Undertakings, Solar with various stakeholders to meet objectives in mind, the policy proposes
Energy Corporation of India, power the variable generation by renewable promotional measures for hybrid
transmission companies, financial sources. renewable energy generation and
institutions like Reserve Bank of India, The draft NEP encourages electricity energy storage systems.”
Indian Renewable Energy Development generation from renewable sources due The draft further states that barring
Agency, HDFC Bank, ICICI Bank, waste to energy generation, all future
industrial, solar, and wind associations,
and state governments, have to
The draft NEP procurement of power from renewable
sources must be through tariff-based
present their suggestions to the expert
committee.
encourages competitive bidding.
The draft states that the tariff of the
The NEP 2021 covers multiple renewable energy generators must
areas, including optimal generation electricity cover the risk of curtailment of power
mix, transmission, distribution, grid by DISCOMs for reasons other than grid
operation, power markets, regulatory
process, and energy efficiency, among
generation security or transmission constraints.
Singh said, “The NEP has also
others.
Here are some areas related to clean
from renewable realized the pain of the developer that
merely giving a must-run status to
energy.
sources renewable energy generating stations is
not solving the problem and generators

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Electricity

are witnessing curtailment in generation power from states where intermittent appears to encourage rooftop solar. NEP
due to economic reasons in various renewable sources of energy are should also suggest that there should not
states.” concentrated. Power from these states be any cap on net metering.”
The draft further recommends swift is transmitted to other states, and the
implementation of differential tariffs former is left to bear the variability of Creation of Electric Vehicle Charging
between peak and off-peak hours for generation. Stations
consumers and generating stations, to Aditya said, “NEP also appears According to the draft, certain tariff-
appreciate the peaking power value. to suggest that the regulator should based measures are needed for electric
According to Singh, a two-part tariff move towards implementing light- vehicle (EV) public charging stations and
will be a game-changer, “There will touch regulation mechanism. This is a a separate consumer category based on
be certain practical challenges like welcome step, and the regulator should a specific charging load. ‘Time of the
determination of the variable cost for follow it in its letter and spirit.” Day Tariff’ can be employed to avoid
wind and solar assets. I believe, once The draft also encourages solar charging load during peak demand
DISCOMs see that even if they are rooftop installations and states that hours.
issuing curtailment instructions and are one way to promote solar PV systems, The draft suggests provisions
liable to make payment for 90%-95% of particularly in household applications for injecting power back into the
the agreed tariff (this will be estimated and small industries, is through net grid whenever an EV is parked and
fixed cost for solar and wind), then they metering. Singh added, “NEP also connected to chargers. Aggregators may
will be discouraged to issue frivolous be allowed to aggregate the demand
curtailment notices.”
The draft has noted that renewable Draft highlights of multiple public charging stations to
purchase renewable energy using open
purchase obligations (RPOs) supported access.
by renewable energy certificates (RECs) promotion
have not functioned satisfactorily. The Smart Meters
draft suggests market-based options
while removing shortcomings of the
of hybrid According to the draft, automation
and smart metering can play a pivotal
existing RPO-REC-based system.
The draft also talks about an intra-
renewables and role in bringing positive transformation
in the distribution sector. The draft
state level cost-sharing mechanism to
address issues concerning the flow of energy storage suggests that all new electricity
connections come with smart prepaid

June 2021 Issue 04 13


Policy

meters or simple prepaid meters. It discovered in the competitive bidding the regulator to ensure compliance to
further says that existing meters should process. the process, and not sit on the wisdom
be replaced with smart meters in the According to Singh, “NEP’s statement of the bid evaluation committee.”
next three years from the date of the about the limited role of the regulator
issuance of the NEP 2021. while adopting section 63 tariff is also Power Markets
In a recent notification, the CEA encouraging, and it is reiterating specific According to the draft, a new entity
said that in the case of open access provisions of the Act. This statement can called aggregators may be created to
consumers connected to a distribution be an aid for interpreting Section 63 of aggregate demand, renewable power
system, smart meters could be used as the Act in future tariff disputes to argue generation, demand response, micro-
interface meters, provided they comply that if bidding guidelines procedure has storage, and others, to help small
with the recommended regulations. been followed then, the Commission will consumers, prosumers, and producers
reach the market. This would help
Grid Operation promote open access, which is presently
According to the draft, grid reliability Solar projects allowed for consumers with loads of 1
has become an issue because of rapid MW and above.
grid expansion and the integration
of renewable sources of energy.
are urged Environment
Forecasting and scheduling renewable
sources should be mandatory, and a to consider The draft states that solar PV projects
must consider robotic dry cleaning
margin of error should be specified, instead of water cleaning, based on cost-
beyond which deviation charges would robotic, dry benefit analysis.
become applicable. While manual cleaning is one of the

Regulatory Process
cleaning, and options, several robotic technologies
have entered the market, providing
According to the draft, wherever
power or transmission service is save water a cost-effective method to clean solar
panels compared to manual cleaning.
procured based on guidelines issued by The Ministry of New and Renewable
the Central Government under section have no option except to adopt it.” Energy has also recommended efficient
63 of the Electricity Act, 2003, the He further added, “Other water utilization for cleaning utility-
role of the appropriate commission is considerations like prevailing market scale solar projects. The ministry said
primarily to ensure compliance with the price are giving weapons to regulatory that project developers should try
process. Section 63 of the Electricity Act commissions for delaying/non-adoption and minimize wastage and use robotic
refers to regulations of adopting tariffs of the tariff. NEP has a very clear role of cleaning technology.

14 www.mercomindia.com June 2021


June 2021 Issue 04 15
Policy

Production-Linked Incentive
for Battery Storage
The government is considering battery storage
as one of the ten critical sectors under the PLI
program in a push for manufacturing advanced
batteries domestically
By : Rakesh Ranjan Parashar

he Union Cabinet has the Cabinet’s notification, the program In November last year, the

T approved the ‘National


Program on Advanced
Chemistry Cell Battery
aims to achieve 50 GWh of advanced
chemistry cell, and 5 GWh of niche
advanced chemistry cell manufacturing
government had said that it would
allocate ₹1.45 trillion (~$19.61 billion)
under the PLI program to ten critical
Storage’ under the production-linked capacity with an outlay of ₹181 billion sectors over the next five years. Some
incentive (PLI) initiative. According to (~$2.46 billion). of these sectors include high-efficiency

16 www.mercomindia.com June 2021


Battery

solar modules, advanced chemistry


cell batteries, automobiles, and auto An outlay of facilitate the country’s demand creation
for battery storage. This acquires all the
components.
Advanced chemistry cell batteries are ₹181 billion more importance given the intermittent
nature of solar and wind power and the
the new-generation storage technologies need for battery storage to provide on-
that can store electric energy either as is planned demand power.
electrochemical or chemical energy and It is estimated that the measure
convert them to electric energy. It is
expected that this new technology will
for advanced would also lead to net savings of ₹2
trillion (~$27.16 billion) to ₹2.5 trillion
play a vital role in the fields of consumer
electronics, electric vehicles (EVs),
chemistry cells (~$33.95 billion) as a result of a reduction
in oil imports due to greater EV
advanced electric grids, and rooftop
solar in the coming years.
manufacturing adoption, as the advanced chemistry
cell batteries would boost EV segment.
While many companies have started The program will also provide
expanded with increased specific
investing in this new technology, it is still impetus to the research and
energy density and higher local value
very small compared to global numbers, development process to achieve higher
addition. Each selected manufacturer
and imports from other countries are specific energy density and cycles in the
would have to commit to setting up an
meeting the demands. advanced chemistry cell batteries.
advanced chemistry cell manufacturing
Under the program, the battery In April, the Union Cabinet approved
facility of a minimum 5 GWh capacity
storage manufacturers would be the Ministry of New and Renewable
and ensuring a minimum 60% domestic
selected through a competitive bidding Energy’s proposal to implement the PLI
value addition at the project level within
process, and the manufacturing facility program for the ‘National Program on
five years.
would have to be commissioned High-Efficiency Solar PV Modules’ to
The program’s implementation is
within two years. The incentive will be achieve gigawatt-scale manufacturing
expected to attract a direct investment
disbursed after that over five years. with an outlay of ₹45 billion (~$605
of ₹450 billion (~$6.11 billion) and
The amount of incentive will be million).

June 2021 Issue 04 17


Policy

Renewable Projects Get


Time Extension Amid
Covid-19 Surge
MNRE has stated that renewable projects could
claim extension due to the resurgence of the
Covid-19 pandemic but cautioned developers not
to use it to terminate PPAs
By : Rakesh Ranjan Parashar

18 www.mercomindia.com June 2021


Time Extension

iving relief to solar


Developers cannot claim upward
G developers amid the
Covid-19 crisis, the Ministry
of New and Renewable revision of tariff because of
Energy (MNRE), in its latest notification,
has stated that the renewable energy
projects with their commissioning dates
extension in project completion
on or after April 1, 2021, could claim pandemic in the coming weeks. outbreak and the subsequent lockdown,
extension owing to the second surge Also, the Ministry clarified that on the Ministry had issued a notification
of the Covid-19 pandemic. MNRE has, receipt of an application for the time stating that all under-development
however, cautioned developers that the extension, the implementing agency renewable projects would be given an
time extension should not be used as a would not initiate any coercive action extension of five months. The extension
ground for the termination of the power on the project to recover the penalty applied from March 25, 2020, to August
purchase agreement or claiming any on delayed commissioning until the 24, 2020.
increase in the project cost, including extended time frame is decided upon. MNRE had also issued a notification
interest during construction or upward Once the project is granted an denying requests for another five-
revision of the tariff. extension, the intermediate milestones month extension for commissioning
The Ministry made it clear that the of the project will also be extended renewable energy projects, stating that
actual extent of the time extension will as per the leeway granted. The these extensions would not be granted
be decided in due course developer should pass on the benefits routinely from now on.
depending on the of the extended deadline to other Again, MNRE clarified that the
developments stakeholders down the value chain, extension provided by implementing
related including engineering, procurement, agencies on account of the first wave
to the and construction contractors, material of the Covid-19 pandemic should in
Covid-19 and equipment supplier, and original no case be more than six months,
equipment manufacturers. including the five-month blanket
The Ministry took this decision extension given earlier. However, the
based on the resurgence of the Covid-19 Ministry said that if the implementing
pandemic and the lockdown measures agencies felt the need for an extension
being put in place by several state beyond six months, they should make
governments in localized fashions to a reference for consideration of MNRE
contain the pandemic. with due justification and supporting
Last year, during the Covid-19 documents.

June 2021 Issue 04 19


20 www.mercomindia.com June 2021
Tariff

Union Territories Revamp


Tariffs for Renewables
The central electricity regulator has mandated
the filing of tariff petitions on time every
year. The union territories that have been so
far deferring tariff determination have been
actively submitting the petitions
By : Rahul Nair

he Joint Electricity approved. For rooftop solar projects in the union territory is about 14 MW.

T Regulatory Commission
( JERC) for the state of Goa
and Union Territories has
installed in the financial year 2020-21,
₹4.72 ($0.06)/kWh is set. For ground-
mount solar projects of 1-3 MW, a tariff
Of the total capacity, 10 MW is ground-
mounted and the remaining is rooftop
solar installations.
determined the levelized tariff for of ₹6.31 ($0.08)/kWh is determined, The Commission is of the view that
ground-mounted and rooftop solar and the tariff of a ground-mount solar had the petitioner filed the petition in
projects in the Union Territories of project of 6 MW capacity is set as ₹5.97 time, then the problem of determining
Daman & Diu. ($0.08)/kWh. the tariff from the date of the
For rooftop solar projects installed A petition was filed by the Electricity commercial operation would not have
from July 2019 to March 2020, a Department, Daman & Diu, which stated arisen. But since they failed to do so, the
levelized tariff of ₹4.73 ($0.06)/kWh was that the total installed solar capacity Commission calculated year-wise tariff

June 2021 Issue 04 21


Policy
and averaged it. and the consumers were burdened for considered in this order from the
A similar case was with the union no fault of theirs. 'Fixed Assets Register' of the electricity
territory of Dadra and Nagar Haveli. The The tariff of these plants would be department and filing an annual
state distribution company had failed applicable from April 1, 2021, onwards. performance review of FY 2021-22 and
to file the petition to determine the The Commission reiterated that the aggregate revenue requirements
levelized tariff in time and submitted the the petitioner did not file this petition petition of FY 2022-23.
petition late. immediately after commissioning of In 2018, the Diu Smart City became
The petition further stated that as the said projects and delayed the filing the first in the country to run on 100%
per the Renewable Energy Policy, 2017, of the petition, which they failed to renewable energy during daytime hours.
all high-tension/extra-high-tension explain. Therefore, the Commission Meanwhile, in 2019, the JERC,
(HT/EHT) consumers were directed to has taken a serious view regarding the in its order, directed the Electricity
install solar rooftop units at 5% of the casual approach of the petitioner and Department, Daman & Diu, to bid
contract demand. As of now, about 20.6 sensibly and purchase renewable energy
MW of rooftop solar systems have been certificates in the remaining months of
installed by HT/EHT consumers. Total installed the financial year 2019-20 to meet its
The petition covers the basis, renewable purchase obligation targets.
assumptions, and projections of
individual elements constituting the
solar capacity The Commission made it clear that
it was unhappy with the electricity
determination of levelized tariff for
power from ground-mounted solar PV
in Daman & Diu department of Daman & Diu as it had
failed to exhibit any seriousness about
projects and rooftop solar systems.
The petitioners stated that the tariff is about 14 MW meeting the shortfall in its renewable
purchase obligation target.
for the power generated from 10,000
kW ground-mounted solar PV plants, directed them to avoid repeating the Goa, Andaman & Nicobar Islands,
4,137 kW rooftop solar systems, and an lapse in the future. Lakshadweep Islands, Puducherry,
additional 279 kW rooftop solar systems The petitioner cannot be allowed the Daman & Diu, Dadra & Nagar Haveli,
were commissioned before March 31, power purchase cost on these projects and Chandigarh
2019, was required to be determined as up to FY 2020-21 but will be entitled to The JERC also announced the
per JERC Regulation, 2015. recover the power purchase cost from generic tariffs for solar, wind, and
The Commission has observed that April 01, 2021. small hydro projects in Goa, and the
the petitioner has failed to file the The project life of each solar plant UTs of Andaman & Nicobar Islands,
petition for determining the levelized shall be considered for 25 years from the Lakshadweep Islands, Puducherry,
tariff in time and submitted the petition date of commissioning of the respective Daman & Diu, Dadra & Nagar Haveli,
for these systems at a later stage. solar plant. and Chandigarh.
Therefore, the tariff for these systems The Commission also directed the The tariff order is effective from
cannot be determined retrospectively petitioner to segregate the solar assets April 1, 2021, to March 31, 2022, or until

The following tariffs were determined by the Commission based on the merits of the petition:

22 www.mercomindia.com June 2021


Tariff

further orders of the Commission, component and fuel cost component. An interest rate of 9% and 10% is
whichever is later. It will be applicable The Commission also pronounced considered on the debt portion for
for the renewable energy projects that the generic tariff would be mainland and island areas, respectively.
commissioned during the year. determined based on the year of The working capital interest rate is 10%
According to the regulations, the commissioning of the project on a and 11% for mainland and island areas,
generic tariff determined by the levelized basis for the tariff period. The respectively.
Commission will act as a ceiling tariff. body further noted that to compute The depreciation for the solar
To procure renewable power, the levelized tariff, the discount factor projects is calculated at a rate of
distribution licensee will have to file a equivalent to a post-tax weighted 5.83% for the first 12 years and 1.54%
petition to adopt tariffs under Section 63 average cost of capital would be subsequently for the remaining useful
of the Act. considered. life of 13 years.
The operation and maintenance
Generic tariff Solar PV projects expense for the first year is set as 1.5% of
For solar (gross metering) projects, the capital cost for mainland areas and
for solar the Commission considered the useful
life as 25 years. The normative capital
2% for island areas. The escalation rate
of operation and maintenance expenses
projects in cost for solar projects in the mainland
areas without capital subsidy is
for subsequent years is considered as
3.71% for the rest of the project's useful
Lakshadweep considered as ₹50 million ($674,000)/
MW and ₹60 million ($810,000)/MW in
life.
The above parameters are considered
is ₹6.94 ($0.090)/ island areas.
Debt to equity ratio of 70:30 of
with a discount factor of 8.67% for
mainland areas and 9.76% for island
kWh the capital cost is considered for the
projects. The return on equity for the
areas. As a result, the generic tariff
for solar projects (gross metering)
For renewable energy technologies mainland areas is taken as 14% grossing commissioned between the date of the
like biomass power projects with fuel up with an Alternate Minimum Tax rate issue of this order to March 31, 2022,
cost components, the single-part tariff of 17.47%. The return on equity for the was determined as ₹4.68 ($0.063)/kWh
will carry two components: fixed cost island areas is taken as 14%. for Goa, Dadra & Nagar Haveli, Daman,

June 2021 Issue 04 23


Policy

Diu, and Puducherry. For Andaman & what is considered for solar projects. ₹4.66 ($0.06)/kWh, ₹3.40 ($0.05)/kWh,
Nicobar Island and Lakshadweep, it is The generic tariff for wind projects and ₹4.21 ($0.07)/kWh, respectively.
considered as ₹6.75 ($0.090)/kWh and (gross metering) commissioned between For Andaman & Nicobar Island and
₹4.96 ($0.067)/kWh for Chandigarh. the date of the issue of this order to Lakshadweep, it is considered as ₹6.65
For solar projects commissioned March 31, 2022, is determined as ₹4.92 ($0.09)/kWh and ₹6.70 ($0.09)/kWh,
up to March 31, 2021, the generic tariff respectively.
was ₹4.82 ($0.064)/kWh for Goa,
Dadra & Nagar Haveli, Daman, Diu, and
Diu Smart For wind projects commissioned
up to March 31, 2021, the generic tariff
Puducherry. For Andaman & Nicobar
Island and Lakshadweep, it was ₹6.94
City, first in for Goa, Dadra & Nagar Haveli, and
Chandigarh was ₹5.06 ($0.07)/kWh. For
($0.092)/kWh and ₹5.10 ($0.068)/kWh
for Chandigarh. the country to Daman, Diu, and Puducherry, it was
₹4.79 ($0.064)/kWh, ₹3.50 ($0.047)/

Wind projects run on 100% kWh, and ₹4.34 ($0.058)/kWh, in that


order.
For wind projects, the Commission
considered the useful life as 25 years. renewables For Andaman & Nicobar Island
and Lakshadweep, it was set as ₹6.83
The normative capital cost for wind ($0.091)/kWh and ₹6.88 ($0.092)/kWh,
projects in the mainland areas without during daytime respectively.
capital subsidy was considered as
₹52.5 million ($709,429)/MW and ₹62.5 hours Small hydro projects
million ($840,000)/MW in island area of For small hydro, the Commission
Andaman and Nicobar and ₹70 million ($0.07)/kWh for Goa, Dadra & Nagar considered the useful life as 35 years.
($940,000)/MW in Lakshadweep. Haveli, and Chandigarh. For Daman, The normative capital cost for small
The other parameters are the same as Diu, and Puducherry, it is considered as hydro projects in the mainland areas

24 www.mercomindia.com June 2021


Tariff

without capital subsidy was considered life of 23 years. at ₹5.91 ($0.08)/kWh.


as: The generic tariff for small hydro In comparison, for small hydro
• Below or equal to 5 MW – ₹9 million projects (gross metering) commissioned projects commissioned up to March
(~$1.05 million)/MW between the date of the issue of this 31, 2021, the generic tariff was ₹4.63
• Above 5 MW and below or equal to 25 order to March 31, 2022, is ₹4.49 ($0.062)/kWh for projects below or
MW – ₹7 million (~$956,095)/MW ($0.06)/kWh for projects below or equal equal to 5 MW on the mainland. For
Projects in island areas: to 5 MW on the mainland. For projects projects above 5 MW and lower than or
• Below or equal to 5 MW – ₹105 million above 5 MW and lower than or equal equal to 25 MW, the generic tariff is ₹4.21
(~$1.41 million)/MW to 25 MW, the generic tariff is ₹4.08 ($0.056)/kWh.
• Above 5 MW and below or equal to 25 ($0.05)/kWh. For small hydro projects in islands,
MW – ₹90 million (~$1.2 million)/MW For small hydro projects in islands, the generic tariff was ₹7.09 ($0.094)/
The depreciation for the small the generic tariff is ₹6.89 ($0.09)/kWh kWh for projects below or equal to 5
hydro projects is calculated at a rate of for projects below or equal to 5 MW. For MW. For projects above 5 MW and lower
5.83% for the first 12 years and 0.87% projects above 5 MW and lower than or than or equal to 25 MW, the generic
subsequently for the remaining useful equal to 25 MW, the generic tariff is set tariff is set at ₹6.08 ($0.081)/kWh.

June 2021 Issue 04 25


Regulators Mulling
Ways to Reduce Retail
Power Tariffs
Regulators from 12 states have suggested measures,
highlighting the need for a coordinated effort
between the central and state governments to
contain high retail power tariffs
By : Rakesh Ranjan Parashar

26 www.mercomindia.com June 2021


June 2021 Issue 04 27
Policy
n a recent meeting, the was a major contributor to the power be continued, then the proceeds from

I Forum of Regulators
discussed factors affecting
the cost of power and
purchase cost. The increase in coal
price was 28% higher than the estimated
price increase based on the weighted
this cess should be brought back to
the electricity sector to mitigate the
incremental cost of new environmental
stressed the need to analyze and evolve average of the wholesale price index norms, the panel proposed. Since 2010
measures to reduce or contain the retail and consumer price index. The group as of the financial year 2019-20, over
tariff. recommended that the coal sector be ₹1.15 trillion (~$15.6 billion) has been
The working group made certain brought under an independent regulator collected in clean energy cess.
recommendations, highlighting the need at the earliest.
for a coordinated effort by the central Also, there was a need for the Power
and the state governments to address electricity regulators to monitor and
high retail tariffs.
The Forum considered the data from
suitably regulate the station heat rate
and gross calorific value of coal-based
purchase cost
12 states – Andhra Pradesh, Assam,
Bihar, Gujarat, Haryana, Jharkhand,
power projects. Coal pricing also needed
to be regulated as in other sectors since
is the largest
Karnataka, Kerala, Madhya Pradesh,
Odisha, Uttar Pradesh, and Uttarakhand.
it is currently a monopoly.
contributor to
Cumulatively, these states account for Railway freight
50% of the total energy consumed in the The working group noted that the the average cost
country. railway freight charges increased 40%
The working group observed that
the power purchase cost was the largest
in the past four years. The members
recommended that the railways
of supply
contributor to the average cost of be brought under an independent In January 2020, the Prime Minister’s
supply, with an average of more than regulatory body. They also suggested office proposed waiving the cess on
70% share in the cost for a distribution that the central government consider coal to reduce the financial strain on
company (DISCOM). Following the subsidizing railway freight for a distance distribution companies, besides helping
power purchase cost, transmission beyond 750 km. the thermal power projects install flue
charges, and operation and maintenance gas desulphurization to curb pollution.
expenses contributed a major share. Clean energy cess
The committee questioned the The history of clean energy cess
External factors rationale of continuing with the clean In 2010, the government created the
Coal energy cess considering the increasing National Clean Energy Fund (NCEF)
The panel observed that coal cost investment in renewables. If it was to to sponsor the cost of research and

28 www.mercomindia.com June 2021


Retail Tariff

innovative projects using clean energy


technologies by public and private
sector entities. The idea was to collect
tax from the polluting coal industry to
fund clean energy. The cess, which was
₹50 (~$0.74)/ton when it was introduced
in 2010, was raised to ₹100 (~$1.5)/ton in
2014 and ₹200 (~$3)/ton in the 2015-2016
budget. It was again doubled from ₹200
(~$3)/ton to ₹400 (~$6)/ton in the 2016-17
budget.
In March 2017, the fund was
rebranded as Clean Environment Cess
from the earlier Clean Energy Cess
to include river cleaning and other
projects.
In April 2017, the government enacted
a bill that said it would utilize the Clean
Environment Cess (India’s version of
carbon tax) collected on coal to finance
the Goods and Services Tax (GST)
Compensation Fund, a non-lapsable
fund that will form part of the public
account of India.

New environmental norms


India had initially set a 2017 deadline
Internal factors a normative threshold above which
for thermal power plants to comply with
High transmission costs projects should be selected through
emissions standards installing flue gas
The group recommended that tariff-based competitive bidding, the
desulphurization (FGD) infrastructure to
transmission planning be based on members said.
cut toxic sulfur dioxide emissions. The
accurate demand forecasts by the Back in 2017, the Ministry of New
deadline was later moved to separate
DISCOMs and the state transmission and Renewable Energy had amended
timelines for different regions, ending
utilities in the future. the guidelines for the disbursal of grant
in 2022. The Ministry of Power also
for the development of intra-state
proposed a ₹835 billion ($11.70 billion)
transmission system under the green
plan to meet the cost of development of
FGD units at coal plants. Over ₹1.15 energy corridor project in the states of
Andhra Pradesh, Himachal Pradesh,
With the implementation of new
environmental norms (FGD installation), trillion has Gujarat, Karnataka, Madhya Pradesh,
Rajasthan, Maharashtra, and Tamil
the cost per unit of energy will increase
substantially. This increase in cost
should be compensated from the clean
been collected Nadu. The grant was part of the clean
energy cess.
energy cess, which has been collected
from the consumers of the electricity
in clean energy Generation assets are stranded
As in transmission assets, the fixed
sector, the panel suggested.
cess between cost of stranded generation assets
is being paid for by the consumers
Norms for disposal of fly ash
As per the draft notification issued 2010 and 2020 without getting any benefit. In addition,
the additional stranded capacity cost
by the Ministry of Environment,
estimated on account of renewable
Forest, and Climate Change, the cost
Also, the central government should energy integration is in the range of
of transportation of fly ash is to be
share the cost of the stranded assets by ₹1.02/kWh. As per the suggestions
borne by the thermal power projects,
utilizing the clean energy cess, the team proposed by the group, the government
which will substantially impact the
noted. As the cess is being collected should extend help to DISCOMs to meet
cost of power generation. The group
from the power sector, it should provide the fixed cost of the power purchase
recommended that the central and state
relief to the sector, the members opined. agreements (PPAs) associated with the
governments partially bear the cost of
All the state electricity regulatory stranded assets.
transportation of fly ash.
commissions (SERCs) should decide

June 2021 Issue 04 29


Policy

Return on equity to be made realistic The group also proposed that the Electricity Regulatory Commission
The performance of DISCOMs has 25 years’ life of PPAs for new projects (CERC) was being misused by public
a significant impact on retail tariffs for contracted through competitive bidding sector traders. The group proposed that
consumers. Therefore, there is a need is too long. They insisted that shorter the CERC should look into the matter
to link recovery of return of equity duration PPAs with exit clauses should and cap the same at ₹0.02 (~$0.0003)/
with the performance of the utilities, be promoted. kWh. Solar Energy Corporation
based on indicators such as supply of India’s trading margin of ₹0.07
availability, network availability, and
aggregate technical and commercial loss
Shorter-term (~$0.0009)/kWh is already being
disputed by generators.
reduction, the body suggested.
PPAs with Waiver of water usage charges for
Impact of depreciation on tariff hydro projects
The depreciation rate should exit clauses According to the suggestions, the
be rationalized, and the period of matter of waiver of water usage charges
depreciation should be extended. The
team suggested the tenure be extended
suggested to for hydro projects should be taken up by
the Ministry of Power.
to 15 years from 12 years. Accumulated
depreciation, over and above debt
reduce retail Distribution level efficiency in
repayment, should be used to reduce
the equity base for return on equity, power tariffs operation
The SERCs should provide a long-
they added. term trajectory for loss reduction and
Cost optimization through greater ensure that the DISCOMs follow the
The growing share of renewable use of market trajectory, the panel said, adding that
energy As per the suggestions proposed by common regulation also needed to
The group observed that although the group, the power purchase cost be brought in to curtail the losses of
green power was available at ₹2.50 could be reduced if the Merit Order DISCOMs.
(~$0.034)/kWh or less, the costs of Dispatch was followed strictly and the
transmission and balancing cost were power market and other platforms were Other suggestions
eating into the benefits it could have used for the optimization of power Apart from the suggestions
brought. The group suggested that apart procurement. mentioned above, the panel proposed
from large-scale renewable projects, the that all future generation projects,
focus in the future should also be on Trading margin be curtailed except hydropower and nuclear
the distributed generation that would The group also noted that although projects, should be set up only through
minimize transmission infrastructure the average trading margin was in competitive bidding. Also, the norms for
and help reduce the cost. the range of ₹0.03 (~$0.0004)-₹0.04 operation and maintenance expenses
(~$0.0005)/kWh, the ceiling of ₹0.07 should be made more stringent, the
The case for short-term PPAs (~$0.0009)/kWh set by the Central members added.

30 www.mercomindia.com June 2021


June 2021 Issue 04 31
Markets

Solar Imports and Exports


Surge in Q1 2021
With the pandemic waning in Q1 2021, solar imports
and exports soared QoQ. However, commercial
activities have since slowed down with the second
wave of the Covid-19 pandemic
By : Rakesh Ranjan Parashar

32 www.mercomindia.com June 2021


Import Export

n the first quarter (Q1) of

I the calendar year (CY) 2021,


India imported solar cells
and modules amounting to
$259 million (~₹18.93 billion), a 132%
increase compared to Q4 CY 2020. The
numbers are 72% higher than $150.57
million (~₹10.83 billion) during the same
period last year.
The increase in imports was a result
of improved demand due to the waning
impact of the Covid-19 pandemic in Q1
2021. However, commercial activities
have again slowed down because of the
second wave of the pandemic that is
ravaging the country right now.
Solar exports also registered a
significant growth of 293% and stood at
$28.5 million (~₹2.08 billion) compared
to $7.25 million (~₹528.4 million) in Q4 India, followed by Nigeria, South Africa, from Malaysia. The countervailing
2020. The figures showed a marginal Congo, and Saudi Arabia. duty imposed under the notification
decline of 19% compared to $35.09 In CY 2020, India imported solar would be applicable for five years. In
million (~₹2.51 billion) during the same cells and modules worth $475.78 million December last year, the Directorate
period last year. (~₹34.7 billion), a 78% drop from CY General of Trade Remedies (DGTR)
2019. Exports had also declined by 67% had announced that it would levy
Solar Imports in Q1 2021 for a total value of $84.16 million (~₹6.14 countervailing duty on tempered glass
China was the largest exporter of billion) in CY 2020 compared to $253.01 from Malaysia to mitigate the benefits
solar modules and cells to India in Q1 CY million (~₹18.45 billion) in 2019. enjoyed by producers of the glass in
2021, followed by Thailand, Vietnam, In March this year, the Ministry Malaysia.
Malaysia, and Taiwan. of Finance notified the levy of a Also, in March, the Ministry of
countervailing duty on the cost, New and Renewable Energy (MNRE)
Solar Exports in Q1 2021 insurance, and freight value on the announced the basic customs duty
The United States continued to be the imports of textured and tempered on imported solar cells and modules
largest market for solar exports from (whether coated or uncoated) glass starting April 1, 2022.

June 2021 Issue 04 33


Molecular Glue Boosts
Efficiency of Perovskite
Solar Cells
Researchers at Brown University have identified
the weak link in the cells and increased their
functionality by devising a glue that keeps a key
interface inside cells from degrading
By : Srinwanti Das

34 www.mercomindia.com June 2021


June 2021 Issue 04 35
Technology
n a step toward improving The weakest of those interfaces is

I the long-term reliability


of perovskite solar cells,
a research team at Brown
Perovskite between the perovskite film used to
absorb light and the electron transport
layer, which continues to carry current
University has devised a molecular glue
that keeps a key interface inside cells
cells could cost through the cell.
“A chain is only as strong as its
from degrading.
In a study published in the journal
a fraction of weakest link, and we identified this
interface as the weakest part of the
Science, the researchers explained that
the treatment dramatically increases
what silicon whole stack, where failure is most likely
to take place,” said Padture, adding,
“If we can strengthen that, then we
cells’ stability and reliability over time
while also improving the efficiency cells cost can start making real improvements in
with which they convert sunlight into reliability.”
While the efficiency improvements
electricity. To achieve that, Padture and his
in perovskites have been remarkable,
Commenting on the emerging clean colleagues began experimenting with
Padture said that making the cells
energy technology, Nitin Padture, a compounds known as self-assembled
more stable and reliable has remained
professor of engineering at Brown monolayers (SAMs).
challenging. Part of the problem has to
University and senior author of the “This is a large class of compounds,”
do with the layering required to make a
new research, said, “There have been Padture said, elaborating further that
functioning cell. Each cell contains five
great strides in increasing the power- when these are deposited on a surface,
or more distinct layers, each performing
conversion efficiency of perovskite solar the molecules assemble themselves in
a different function in the electricity-
cells. But the final hurdle to be cleared a single layer and stand
generation process. Since these layers
before the technology can be widely up like short hairs. By
are made from different materials,
available is reliability – making cells that using the right
they respond differently to external
maintain their performance over time.
forces, he added. Also, temperature
That’s one of the things my research
changes that occur during
group has been working on, and we’re
the manufacturing
happy to report some important
process and
progress.”
Padture’s research group won
a $1.5 million grant from the U.S.
Department of Energy to expand
its work.
Perovskites are a class of
materials with a specific
crystalline atomic
structure. When a
little over a decade ago,
researchers showed that
perovskites are very good at
absorbing light, the findings led to
a flurry of research into perovskite
solar cells. The efficiency of those
cells has rapidly increased and is now
comparable to traditional silicon cells,
the researchers said. The difference
service
is that perovskite light absorbers can
can cause
be made at near-room temperature,
some layers
whereas silicon needs to be grown from
to expand or
a melt at a temperature approaching
contract more than
2,700 degrees Fahrenheit. Perovskite
others. That creates
films are also about 400 times thinner
mechanical stresses
than silicon wafers. The comparatively
at the layer interfaces
easier manufacturing processes and the
that can cause the layers to
use of less material make perovskite
dissociate. If the interfaces are
cells cheaper. These cells can be
compromised, the performance of
potentially made at a fraction of the cost
the cell drops.
of silicon cells, the experts said.

36 www.mercomindia.com June 2021


Perovskite Cells

formulation, strong bonds between the study retained 80% of their peak SAMs would potentially add little to the
these compounds and all kinds of efficiency for around 700 hours of lab production cost, Padture said.
different surfaces could be formed, the testing. Meanwhile, the SAM cells were The researchers plan to build on
researcher explained. still going strong after 1,300 hours of this success. Having strengthened the
Padture and his team found that a testing. Based on those experiments, the weakest link in the perovskite solar
formulation of SAM with silicon atom researchers project the 80% efficiency cell stack, they’d like to move onto the
on one side, and iodine atom on the life of the SAM cells to be about 4,000
other, could form strong bonds with
both the electron transport layer (which
hours.
“One of the other things we did, Perovskite films
is usually made of tin oxide) and the which people don’t normally do, is
perovskite light-absorbing layer. The breaking open the cells after testing,” are about 400
team hoped that the bonds formed by said Zhenghong Dai, a Brown doctoral
these molecules would strengthen the
layer interface. The researchers seemed
student and lead author of the research.
In the control cells without the SAMs,
times thinner
to be heading in the right direction.
“When we introduced the SAMs to
the researchers saw damages such as
voids and cracks. But with the SAMs, the
than silicon
the interface, we found that it increases
the fracture toughness of the interface
toughened interfaces looked unaffected,
they revealed. The improvement wafers
by about 50%, indicating that any cracks reportedly surprised the researchers.
that form at the Padture said the improvement in next weakest link until they’ve fortified
toughness did not come at the the entire stack, they said. That work
cost of will involve strengthening not only
the interfaces but also the material
layers.
“This is the
kind of research
that’s required to
make cells that are
inexpensive, efficient,
and perform well for
decades,” Padture said.
In a long list of research
announced on perovskite
solar cells, research teams
from Helmholtz-Zentrum Berlin, Oxford
PV, and Gwangju Institute of Science
and Technology, among others, have
worked to increase the efficiency of
power-conversion these cells.
efficiency. The SAMs Experts from Helmholtz-Zentrum had
improved the cell’s attained a conversion efficiency record
efficiency by a small of 29.15% in a tandem solar cell made of
amount, he added. That perovskite and silicon.
seemingly occurred
because the SAMs eliminated tiny Oxford PV researchers, on their
interface molecular defects that form when the part, coated ordinary silicon solar cells
tend two layers bond in the absence of SAMs. with a thin film of perovskite material
not to “The first rule in improving the to better use photons across the solar
propagate mechanical integrity of functional spectrum. The method resulted in
very far,” devices is ‘do no harm’,” Padture 29.52% efficiency.
Padture said. “Therefore, said. “The fact that we could improve Scientists from South Korea-based
in effect, the SAMs become a reliability without losing efficiency – and Gwangju Institute used L-alanine as
kind of molecular glue that holds the even improving efficiency – was a nice an additive to perovskite materials to
two layers together,” he elaborated. surprise,” he said. passivate defects and increase grains
Testing solar cell function showed The SAMs themselves are made from in perovskite solar cells to overcome
that the SAMs increased the functional readily available compounds and easily the problem. They confirmed that solar
life of the perovskite cells to a large applied with a dip-coating process at cell efficiency increased to 20.3% from
extent. Non-SAM cells prepared for room temperature. So, the addition of 18.3%.

June 2021 Issue 04 37


Technology

Rechargeable Cement-
Based Batteries – New
Sustainable Building
Materials
Researchers have devised a rechargeable prototype
of a high-rise concrete structure mixed with short
carbon fibers capable of storing energy like a giant
battery with huge commercial potential
By : Srinwanti Das

esearchers from Chalmers such concept for a rechargeable cement- up with another way to produce the

R University of Technology,
Sweden, have published
a paper outlining a new
based battery.
The concept involves a cement-
based mixture mixed with small
electrode. “This particular idea that
we have developed – which is also
rechargeable – has never been explored
concept for rechargeable batteries made amounts of short carbon fibers. This, before. Now we have proof of concept-
of cement. Developed by scientists the researchers said, increases the at-lab scale,” Zhang explained.
attached to the varsity’s Department of conductivity and flexural toughness. Tang and Zhang’s research has
Architecture and Civil Engineering, the Then, embedded within the mixture is produced a rechargeable cement-based
concept involves a high-rise concrete a metal-coated carbon-fiber mesh – iron battery with an average energy density
structure capable of storing energy like a for the anode and nickel for the cathode. of 7 Wh per square meter (or 0.8 Wh per
giant battery. The team said that they have settled for liter). Energy density is used to express
The ever-growing need for the particular prototype after a lot of the capacity of the battery, and a modest
sustainable building materials for the testing. estimate is that the performance of the
future prompted Emma Zhang, a former Zhang said that very low-performance new Chalmers battery could be more
associate at the university, to join results from earlier studies investigating than ten times that of earlier attempts at
Professor Luping Tang’s research group. concrete battery technology forced concrete batteries. The energy density
The team has now developed the first them to think out of the box and come is still low in comparison to commercial

38 www.mercomindia.com June 2021


Cement Batteries

June 2021 Issue 04 39


Technology

batteries, said the researchers. They, Concrete, which is formed by “Since concrete infrastructure is
however, added that the limitation mixing cement with other ingredients, usually built to last fifty or even a
could be overcome owing to the huge is the world’s most commonly used hundred years, the batteries would
volume at which the battery could be building material. The researchers need to be refined to match this or to
constructed when used in buildings. feel that although from a sustainability be easier to exchange and recycle when
The fact that the battery is perspective, concrete is far from ideal, their service life is over. For now, this
rechargeable is its most important the potential to add functionality to it offers a major challenge from a technical
quality, and the possibilities for could offer a new dimension. point of view,” Zhang elaborated.
utilization if the concept is further “We have a vision that in the future, While technologies such as these
developed and commercialized are this technology could allow for whole are breaking ground, a new joint study
almost staggering, feel the researchers. sections of multi-story buildings made published by the European Patent Office
The researchers see applications that
could range from powering LEDs,
providing 4G connections in remote
areas, or cathodic protection against
The concept involves a cement-
corrosion in concrete infrastructure.
“It could also be coupled with solar
based mixture mixed with small
cell panels, for example, to provide
electricity and become the energy
amounts of short carbon fibers
source for monitoring systems in
highways or bridges, where sensors of functional concrete. Considering and the International Energy Agency
operated by a concrete battery could that any concrete surface could have a has highlighted the need to accelerate
detect cracking or corrosion,” suggests layer of this electrode embedded, we innovation in clean energy technologies
Zhang. are talking about enormous volumes of to meet climate goals. The report stated
The concept of using structures functional concrete,” Zhang added in an that clean energy innovations slowed
and buildings in this way could be optimistic note. between 2017-19 and grew only by an
revolutionary because it would offer an The idea is still at a very early stage, average rate of 3.3%. This progress is
alternative solution to the energy crisis said the researchers. The technical only a quarter of the average annual
by providing a large volume of energy concerns need to be addressed before growth rate recorded a decade ago
storage, the experts said. the commercialization of the technique. (+12.5% for 2000-13), the study noted.

40 www.mercomindia.com June 2021


Markets

Off-Grid Solar Product


Sales Slide
The study by GOGLA noted that sales of off-grid
solar products in India have been on a downward
trend since 2018, which seems to have been
accelerated by the Covid-19 crisis
By : Srinwanti Das

he Global Off-Grid Lighting After reaching the lowest volumes on solar products, were more affected

T Association (GOGLA) has


published its latest off-grid
solar market semi-annual
record, volumes increased slightly
by 3% compared to the first half of
2020. However, this is a 48% decrease
by the crisis than banks, given that
the Reserve Bank of India allowed
a three-month loan moratorium at
sales and impact report. The data used compared to the second half of 2019, the the beginning of the pandemic for
has been collated from July to December study pointed out. bank borrowers, but not MFIs. This
2020. The Indian economy contracted by aggravated the situation for the MFI
The report has been generated by 9.6% in 2020 due to the pandemic, with borrowers, already suffering from jobs
including data on products sold by 100 poorer households particularly affected. and income losses.
of the 237 affiliate companies, which are In response, the Indian government While India emerged as the largest
connected to the partner organizations announced several stimulus packages cash market for off-grid solar products,
involved in the reporting process. with a total worth of $15 billion (15% with 1.2 million units sold with a value
The report noted that sales of off-grid of GDP), including credit guarantees of $58 million for the second half of
solar products in India totaled 405,000 for small and medium enterprises 2018, sales of off-grid solar products
units between July and December 2020. and $200 million business loans for in India fell by 50% in the first half of
According to the report, sales in rural companies through the rural 2020 compared to the second half of
India have been on a downward trend development fund. 2019. The sales were also down 59%
since 2018, which seems to have been Microfinance institutions (MFIs), the compared to the first half of 2019 due
accelerated by the Covid-19 crisis. main distribution channel for off-grid to the adverse economic effect of the

42 www.mercomindia.com June 2021


June 2021 Issue 04 43
Markets

Covid-19 outbreak, noted another report as components such as DC light bulbs Only a third of solar lighting
by GOGLA. and inverters. companies reported stable or increased
Other factors that influenced sales In an earlier report, GOGLA had sales compared to the second half of
in India over the last few rounds are highlighted that the Indian private 2019, with more than half reporting
the 99.99% electrification rate reached player-driven market for solar lanterns sales decreases of over 25% and a third
through the grid extension under and solar home systems is expected to reporting sales reductions of more than
the ‘Saubhagya‘ initiative in 2019 and reach ₹26,178 million (~$327 million) by 50%. These reduced sales volumes and
2023. the wider impacts of the pandemic

Sales of off- South Asia


continued to add pressure on off-grid
companies, with some previously
In South Asia, sales of off-grid buoyant enterprises reporting zero, or
grid solar solar products totaled 479,000 units low, sales in the second half of 2020.
between July and December 2020, the The research noted that more robust
products in lowest volumes recorded since regional
reporting began in 2015. The downward
sales levels were seen where the sector
received dedicated support to respond
India dipped trend continued since the second half
of 2018 and was accelerated by the
to the crisis, such as relief funding or
government incentives. Sales have also
48% in the Covid-19 crisis in 2020. However, sales
volume remained fairly stable for the
spiked where innovations have helped
the industry to adapt to the changing

second half of first time, with a 3% drop compared to


the first half of 2020. This is 43% lower
market environment.
Globally, the price of hardware and

2020 compared to the second half of 2019. components increased due to raw
material volatility and supply shortages,
Global which also had a significant impact on
the duty on import of solar products In the second half of 2020, global the off-grid sector. Affiliates reported
to stimulate local manufacturing. off-grid solar lighting sales grew by that prices for some materials rose
Moreover, companies have anecdotally 19% compared to the first half of the by over 50%. Similarly, companies
shared that off-grid customer demand is year, totaling 3.6 million products. The experienced price increases for freight
shifting towards larger systems, which report, however, notes that sales growth and transport and delays in processing
can offer more energy services, as well is at the lowest level since 2015. exports from manufacturing centers.

44 www.mercomindia.com June 2021


Off-Grid Solar

Mercom had earlier reported Solar water pumps experienced the participation of solar water pump
that solar companies in India had largest relative increase amongst all companies in the sales data collection
complained of shipping/freight charges appliance types, with a 134% increase for the research period.
shooting up substantially in the range of sales volumes compared to the first Estimated impact
of 500%-800% in the fourth quarter of half of 2020 and 8,038 units sold, Despite off-grid solar solutions
2020. providing the fastest and most
In addition, the pandemic continued
to put pressure on off-grid solar
Microfinance affordable way to electrify hundreds
of millions of people, across 2020, the
companies, with some previously
buoyant companies reporting zero, or institutions reversal in the growth of the off-grid
solar market led to an estimated 10-15
low, sales in the second half of 2020.
Yet, despite the setbacks created by were more million people missing out on improved
energy access.
the pandemic, interest in off-grid solar Five million people are undertaking
and efficient appliances at the consumer severely more economic activity as a direct result
level has not dimmed and, while equity of owning an off-grid solar system.
funding into the sector has dropped by a
worrying 46% compared to 2019, overall
affected by These systems are estimated to have
unlocked an additional $6.3 billion in
investment in 2020 remained stable
($316 million), the report further noted.
the pandemic income over the last ten years. Coupled
with the savings that smaller off-grid
Solar home systems recorded sales
of 620,000 units in the second half of
compared to products, such as lanterns and multi-
light kits, have created for households,
2020. This is a 10% increase compared
to the first half of 2020, but a 25% dip banks the sector’s benefit to the finances of
millions of low-income households is
compared to the second half of 2019 over $18 billion.
when a new sales record of 830,000 predominately in sub-Saharan Africa. In January this year, the World Bank
units was reached. Compared to the volumes recorded had issued a notification expressing
Solar water pumps and refrigeration in the second half of 2019, sales of interest to fund an ‘Off-Grid Solar
units represented a mere 2% and 1% solar water pumps have decreased Energy Access Report’ to chart out an
of off-grid appliance global sales, with by 71% globally. However, the report investment roadmap for sub-Saharan
8,000 and 4,100 units, respectively. partially attributes the drop to lower African countries.

June 2021 Issue 04 45


Markets

Policy Hurdles, Volatile


Market Cast Shadow on
Rooftop Solar
Although the pandemic has accelerated the
C&I consumers’ plan to go solar, developers are
confronting slow business activity due to the policy
uncertainty and inability to close deals
By : Srinwanti Das

46 www.mercomindia.com June 2021


Rooftop Solar

June 2021 Issue 04 47


Markets
he energy costs for sources.” realized the benefits of saving power

T commercial and industrial


(C&I) units in India account
for around 30%-40% of the
The cost factor
The cost benefits are the primary
and cost, he decided to install the
systems at his factories. “I have 50 such
installations of varying scale across my
operational expenses. Embracing solar reason behind the adoption of rooftop factories,” he informed.
seems like the most logical step towards solar by C&I customers over the years. Basava Textiles, in their search for
saving the cost, and the pandemic has “Rooftop solar appeals to C&I alternate energy to mitigate surge in
only accelerated that decision. However, customers since it helps them make electricity charges, installed rooftop
C&I consumers are enduring challenges considerable savings on their electricity solar at their factory, generating 1.4-1.5
every step of the way when installing a bills while meeting their sustainability million units per year. They expect to
solar system. targets,” added Rai. realize the returns on their investments
In many states, rooftop solar tariffs within three years.
are about 50% lower than the retail Power-intensive industries such
tariffs, making them the cheapest source 5.4 GW of as automobiles, railways, airports,
of power with the flexibility of design to heavy engineering and cement,
suit the needs of the consumers. rooftop solar pharmaceuticals, data centers, leather,
and textiles with the electricity cost
However, as of March 2021, out of
India’s cumulative solar installations of
41 GW, only 5.4 GW came from rooftop
has been added making up a significant portion of their
operating costs are most likely to adopt
solar. In Q1 2021, India added 2,056 MW
of solar installations, of which 307 MW
in the country rooftop solar.
The high premium placed on land
was from rooftop solar, and the C&I
segment contributed to 78% of these
as of Q1 2021 also makes rooftop solar viable for
several C&I customers who are faced
installations. with a land crunch or wish to do away
Shedding more light on the C&I Sharing his rooftop solar experience with the hassle of scouting and acquiring
engagement in the segment, Shriprakash with Mercom, Achal Jain, owner of land for a solar project to meet their
Rai, Senior Director, and Head, C&I Naulakha Group, recalled that since power demands.
Business at Amp Energy, said, “About SunSon Energy installed a rooftop Speaking for C&I consumers that
70% of the installed solar rooftop or solar system for him three years ago, operate in rental or leased spaces,
distributed generation capacity in India he has seen his power bills dip by Anurag Johri, Principal Director and
is accounted for by C&I consumers. The 50% at his soap and other essential Utilities Lead for Accenture’s India
C&I sector consumes around 49% of the products factories in Delhi and Alwar in operations, said, “Although we have
electricity generated in India, but only Rajasthan. several measures in place to meet our
3.5% of the power procured by India’s Jain said that he had first installed sustainability targets, since Accenture
C&I segment is from renewable energy rooftop solar at his residence. Once he doesn’t own any of the office spaces

48 www.mercomindia.com June 2021


Rooftop Solar

in India, it becomes difficult to set up Financing projects


rooftop solar installations. In such cases,
the property owners should undertake In many states, The Reserve Bank of India (RBI) has
introduced several policy measures to
the responsibilities to procure power enhance liquidity and ease the financial
through a cost-effective and space- rooftop solar stress caused by the Covid-19 pandemic.
sensitive green energy mode like rooftop With the higher availability of funds,
solar systems.” tariffs are financing is no more an issue in the
rooftop solar segment.
Net metering and gross metering
tussle
around 50% “Tata Capital and State Bank of India
are actively financing rooftop solar at
Why is a segment with such immense
market potential and alluring price
lower than lower interest rates. Even for utility-
scale projects, the interest rates are as
benefits still lagging in capturing the C&I
market?
retail tariffs low as 8.5%-9.5%. The Indian Renewable
Energy Development Agency is lending
Part of the problem started when This crucial last quarter of the financial at 10%-11%,” said a representative from a
the Ministry of Power (MoP) announced year is when the businesses make solar developer.
in December last year that it would be investments to save on taxes and costs. “The issue, however, is that the loans
mandating net metering for loads up Speaking to Mercom, an executive take a long time to be processed,” he
to 10 kW and gross metering for loads attached with a solar developer said, complained.
exceeding 10 kW. The directive sent “Demand spiked especially in the first “Access to low-cost funding or
tremors in the industry, which believed few months since the lockdown eased. channelizing funding into the sector
the move by the Ministry would make In the past six months, we have not is the need of the hour. The Indian
rooftop investments unattractive. installed any rooftop project above 1 MW Renewable Energy Development
After wide criticism by stakeholders, as we were unsure how the policy would Agency, for example, must have a
the Ministry, in April 2021, decided to turn out. We made sure these existing separate line of funds dedicated to
allow net metering for loads up to 500 projects had minimal energy banking rooftop solar,” he added.
kW. This was a good four months of conditions. The strategy was to make
policy uncertainty. This ended up being sure the plants consumed everything Price volatility
a huge snag for the industry, which that the system generated.” A prime challenge in the post-
was witnessing a massive demand. pandemic climate is market volatility.

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June 2021 Scan 04 49
to Subscribe
Markets

While there are huge business we could finalize, we realized that “Behind the meter project should be
opportunities, developers are unable commodity prices shot up, including allowed to be set up without permits
to close deals amid fluctuating project iron, copper, and aluminum. Iron or approvals, other than the statutory
costs. prices have gone up by 30%, which is safety permits. As they do not inject
“Module prices are rising within unprecedented,” shared an executive on energy into the grid, therefore no
weeks even before developers get behalf of a developer. metering, net billing, or gross metering
approval on a module quote from the “The situation is very uncertain, and is needed,” suggested Rai.
clients, making it difficult to give quotes we are neither able to give quotes or The consensus among stakeholders
or submit project reports for loans,” said submit project reports for loans. The is that net metering should be allowed
financial models are going for a toss. I for all customers without restrictions on
am proposing an open book model now the capacity limit to maximize capacity
High premium without quoting a price for modules. utilization, and regulations should be
The business opportunity is huge, but uniformly applied across the country.
on land also we are unable to close deals,” he said. Elaborating on the role of the
DISCOMs, a C&I consumer said,
makes rooftop Approval woes
Despite the multiple benefits of
“Public DISCOMs are using regulatory
frameworks to hinder rooftop
solar viable for rooftop solar, many from the C&I
segment voiced their concerns about the
solar installations and resisting the
transition.” He also added that if rooftop

several C&I government approval challenges that are


overshadowing other advantages.
solar has to grow, gross metering needs
to be entirely done away with.

customers While Jain, on his part, brought


up the year-long struggle of getting
The buzz around rooftop solar
among C&I consumers has only become
approval for a 5 kW net metering system stronger after the prolonged Covid-19-
a project developer. in Rajasthan, another C&I consumer related economic uncertainties in the
While more C&I consumers blamed the distribution companies country. The industry has to deal with
recognize the benefits of rooftop solar, (DISCOMs) for not granting net metering the market fluctuations and surprises,
developers are not pushing for projects approvals out of fear of losing out on but the government must ensure
as raw material, module prices, and income. conducive and uniform policies and do
procurement have turned out to be “I am not able to put in place uniform away with the procedural and approval
challenging. practices across my factories in Alwar delays if they are serious about the
“Just two weeks back, we submitted and Delhi since the energy regulations targets set for the rooftop solar sector in
a quote for installation. Even before are not similar,” said Jain. the country.

50 www.mercomindia.com June 2021


June 2021 Issue 04 51
Policy

Regulatory Approval
for Tariffs Discovered in
Gujarat Solar Auction
The Gujarat Electricity Regulator has approved the
tariffs in a recent solar auction and also directed the
DISCOM to sign PPA after adding a late payment
surcharge clause
By : Rahul Nair

he Gujarat Electricity Gujarat. MW of grid-connected solar PV projects

T Regulatory Commission
(GERC) has allowed Gujarat
Urja Vikas Nigam (GUVNL)
The Commission directed GUVNL to
sign and execute the power purchase
agreement (PPA) within 30 days after
to be set up in the state under Phase
XII. Successful bidders were to set up
the projects, including the transmission
to adopt the tariff discovered through adding the late payment surcharge network up to the delivery point. In
a competitive bidding process for clause. addition, bidders were to secure all
procuring power from grid-connected Earlier this year, GUVNL had floated necessary permits and clearances
solar photovoltaic (PV) projects in a tender to purchase power from 500 required to set up the project, including

52 www.mercomindia.com June 2021


Regulatory Approval

connectivity and land registration.


The tender had received a good
It is proposed reasons the GUVNL auctions have found
robust participation and aggressive
response and was oversubscribed. The
bidders’ list included Ayana Renewable that auction tariffs.

Power, ReNew Power, Aljomaih Energy Tariff adoption delays


& Water Company, NTPC, Coal India, tariffs need to Tariff adoption was earlier mostly
Tata Power, Torrent Power, Juniper a formality and complied on time
Green Energy, Sprng Energy, Vector be approved so that developers could start the
Green, and SJVN. construction of power projects. But
Eventually, Sprng Ujjvala Energy,
NTPC Renewable Energy, Coal India,
within 60 days, that has not been the case anymore.
Several state regulatory commissions
and TP Saurya – a Tata Power subsidiary
– were declared winners in the auction.
failing which it have been delaying the procedure of
tariff adoption due to many reasons,
Sprng Ujjvala Energy won a capacity
of 120 MW, quoting ₹2.20 (~$0.030)/
is deemed to be and this procedure has become a major
pain point for developers. Responding
kWh. Meanwhile, NTPC Renewable
Energy, Coal India, and TP Saurya adopted to developers’ request to address this,
the Ministry of New and Renewable
won 150 MW, 100 MW, and 60 MW, GUVNL to publicly disclose the names Energy (MNRE) amended its competitive
respectively, quoting ₹2.20 (~$0.030)/ of the successful bidders and the tariff bidding guidelines, saying, in case
kWh. SJVN had quoted 100 MW at ₹2.21 quoted by them on its website for 30 the distribution licensee approaches
(~$0.030)/kWh and won 70 MW capacity days to ensure transparency. the appropriate Commission for the
under the bucket filling method. Mercom had spoken to the adoption of tariff and the Commission
In the second week of May, the stakeholders after this auction was does not decide on the tariff within
Commission passed the order to concluded, intrigued by the low tariff, 60 days of submission, the tariffs will
adopt the tariff discovered through especially since the implications of basic be deemed to have been adopted by
a transparent, competitive bidding customs duty was to be factored. One the appropriate Commission. Also,
process, as mentioned in the table of the winning bidders had commented if the tariff adoption is delayed by
below. that the biggest challenge with Solar over 60 days, the time provided for
The Commission has directed Energy Corporation of India auctions financial closure and the scheduled
GUVNL to sign the PPA with the is that the tariff approval is delayed commissioning date will be extended.
successful bidders, in compliance by Central Electricity Regulatory Even the draft plan for amending the
with the stipulations of the Electricity Commission and so is the PPA. The Electricity Act, 2003, proposed for a 60-
(Late Payment Surcharge) Rules, 2021. delay doesn’t occur in the GUVNL day window for commissions to adopt a
The copies are to be submitted to the auction and for the lenders, these tariff discovered through a transparent
Commission after the late payment regulatory approvals are important. bidding process, failing which the tariff
surcharge clause is added before signing This auction by GUVNL concluded will be deemed to have been adopted.
the PPA. on March 22, 2021, and in less than Despite all the efforts of the
After executing the PPAs, the two months, the state commission has ministries, the delays in tariff adoption
Commission has also directed the approved the tariff. This is one of the persist.

June 2021 Issue 04 53


India’s Q1 2021 Solar
Installations Up 88%
Mercom India Research’s Q1 2021 India Solar
Market Update reveals large-scale solar projects
totaling 1,749 MW were added during the quarter
along with 307 MW in rooftop solar installations
By : Rahul Nair

54 www.mercomindia.com June 2021


June 2021 Issue 04 55
Markets
ndia added 2,056 MW of other component price rise and volatility. along with labor issues and supply

I solar in the first quarter


(Q1) of 2021, a 37% increase
quarter-over-quarter (QoQ),
Even more concerning is the uncertainty
in procurement as the market is fluid.
Policy restrictions and duties have added
disruption affecting construction
activity.
The average selling prices of solar
compared to 1,505 MW installed in to the price rise and unpredictability,” modules have risen sharply along with
the fourth quarter of 2020. These said Raj Prabhu, Chief Executive Officer other components, including iron,
findings were revealed in Mercom India at Mercom Capital Group. copper, aluminum, and steel. Freight
Research’s latest Q1 2021 India Solar charges are high all over the world, and
Market Update.
Solar installations in Q1 2021 were up
The report the dearth of shipping containers is also
widespread. The shortage of solar glass
by 88% year-over-year (YoY) compared
to 1,090 MW added during the same
forecasts solar and backsheets continue to be issues
of concern, according to the report’s
period last year. Solar capacity additions
in India in Q1 2021 were the highest in a
installations of findings.
“Due to the targeted lockdowns, this
quarter since Q3 2019. time around, disruptions and labor
According to the report, solar roughly 7 GW in issues are not as widespread as last year.
installations improved considerably in However, most of the lockdowns are in
Q1 2021, with developers completing
their delayed projects from last year.
2021 important solar states like Rajasthan,
Maharashtra, and Uttar Pradesh, which
Commercial and industrial businesses The report forecasts solar will significantly impact installation
were rapidly installing rooftop solar, installations of approximately 7 GW in totals this year,” added Prabhu.
taking advantage of cost savings during 2021 as project timelines are extended According to the report, at the end of
challenging market conditions. due to the second wave of Covid-19. Q1 2021, cumulative solar installations
In Q1 2021, large-scale solar projects The report goes into a detailed analysis reached 41 GW. Of this, 35.5 GW was
totaled 1,749 MW, up by 43% QoQ, and of three different forecast scenarios from large-scale projects, while 5.4 GW
307 MW were added in rooftop solar based on Best, Medium, and Worst-case was from rooftop solar installations.
installations, an 8% growth from the last scenarios. The large-scale solar project
quarter. The report details the effect of the development pipeline stands at 53.6
“With the second wave of the lockdown imposed on major states due GW, along with 24.1 GW of projects
pandemic hitting the country, the to the second wave of the coronavirus tendered and pending auction at the
industry is battling solar modules and pandemic since the end of April 2021, end of Q1 2021.

56 www.mercomindia.com June 2021


Installations

In Q1 2021, Rajasthan, Uttar Pradesh, “The solar industry is grappling with all power capacity added in Q1 2021.
Gujarat, and Andhra Pradesh were the how to move forward amid so much Renewables as a whole, including wind
top states. The top five states accounted uncertainty. Bidding for auctions in the and hydro, made up close to 50% of
for 81% of the installations in the future will be extremely challenging, capacity additions in the quarter.
quarter. and developers must give themselves Key Highlights from Mercom India
The report has identified a surge in a lot of room to factor in the risks and Research’s Q1 2021 India Solar Market
demand for rooftop solar, especially price volatility. This is the first time Update
from the industries that see solar as the we have seen module prices rise four • In Q1 2021, India added 2,056 MW of
best choice for reducing their operating quarters in a row in the last five to six solar installations, an increase of 37%
expenses. The pandemic has prompted years. Bidding low in anticipation that compared to 1,505 MW installed in Q4
several industries to go solar. Although module prices will perpetually fall is 2020. YoY installations rose by 88%
opportunities are flooding, installers an extremely risky strategy in today’s compared to 1,091 MW in Q1 2020
face a dilemma as module procurement market,” Prabhu noted. • In Q1 2021, 1,749 MW was added from
has been a difficult affair with soaring According to the report, solar large-scale solar installations and 307
prices. installations accounted for 33% of MW from rooftop solar
• Rooftop solar installations increased
8% compared to 285 MW added in Q4
2020. YoY the installations were by
58%, compared to 194 MW installed
in Q1 2020
• The cumulative installed solar
capacity in India was about 41 GW at
the end of Q1 2021
• The large-scale solar project pipeline
in India stands at 53.6 GW, with 24.1
GW tendered and pending auctions at
the end of Q1 2021
• Mercom forecasts installations of
approximately 7.1 GW for CY 2021
• Solar now represents 10.7% of the
total installed power capacity in India
as of Q1 2021

June 2021 Issue 04 57


Policy

National Mission for


Biomass Use in Coal
Power Plants
The mission’s purpose is to address rampant air
pollution caused by the burning of farm stubble
and reduce the carbon footprint in thermal power
generation
By : Rahul Nair

he Ministry of Power (MoP) to the National Clean Air Program. Tribunal and the Haryana government’s

T has decided to set up a


national mission to use
biomass in coal-powered
The Haryana Electricity Regulatory
Commission, while determining the
levelized tariffs for biomass power
social objectives and concerns.
The mission would further support
the country’s energy transition targets
thermal power plants. projects last year, addressed the serious and move towards cleaner energy
The main purpose of the mission is to environmental issues arising from the sources. The program will be applicable
address rampant air pollution caused by burning of paddy stubble in the state for at least five years.
the burning of farm stubble and reduce and the National Capital Region. The The initiative has been undertaken
the carbon footprint in thermal power Commission said that such power with multiple objectives.
generation. The proposed national projects using paddy straw as a fuel One of the objectives is to increase
mission on biomass will also contribute could help meet the National Green co-firing from 5% to higher levels. This

58 www.mercomindia.com June 2021


Biomass

is aimed at having a larger share of by farmers burning crop residue in the for a higher amount of co-firing of
carbon-neutral power generation from open. biomass with coal in pulverized coal-
the thermal power plants. The mission would have full-time fired boilers. The third sub-group
The program will also support officers from the Central Electricity would have the task of resolving issues
research and development activity Authority, NTPC, Damodar Valley concerning the supply chain during
in boiler design to handle the higher Corporation, Neyveli Lignite the mission period and sensitization
amount of silica and alkalis in the Corporation, or other participating program. The fourth one would be in
biomass pellets. It will also address organizations. charge of selecting designated labs and
constraints in the supply chain of Five sub-groups have also been certification bodies to test agro-based
biomass pellets, agro-residue, and proposed under the mission. Sub-group biomass pellets and municipal solid
transport to the power plants. 1 would be responsible for researching waste pellets, while the fifth sub-group
Another objective of the mission the properties and characteristics of would be formed on the regulatory
includes looking into regulatory issues biomass. The second would carry out framework and economics of biomass
in biomass co-firing. the technical specification and safety co-firing in coal-powered thermal power
The modalities of operation and aspects, including research in boiler plants.
the structure of the mission are in the design, etc., to handle the pilot project In 2019, MNRE had issued a notice
finalizing stage. clarifying the eligibility of power
The Mission would have a steering generated from the co-firing of biomass
committee headed by the secretary The mission in thermal power plants as renewable
(MoP). It would include all stakeholders energy. The government had stated
such as the Ministry of Petroleum
& Natural Gas, Ministry of New &
aims to address that the power generated from the
co-firing of biomass in thermal power
Renewable Energy (MNRE), etc. The
executive committee would be headed
rampant air plants is renewable energy and eligible
for meeting the non-solar renewable
by the member (thermal) from the
Central Electricity Authority. pollution purchase obligations.
Last year, the MNRE had extended
NTPC will also play a larger role in the validity of its biomass-based
providing logistic and infrastructure caused by the cogeneration program. The program
support in the proposed national was extended until March 31, 2021, or
mission. Last year, NTPC invited bids for
biomass pellets to use as fuel alongside
burning of until the recommendations of the 15th
Finance Commission come into effect,
coal at its thermal power stations to
help mitigate the air pollution caused
farm stubble whichever comes first. The program was
set to end in March 2020.

June 2021 Issue 04 59


News in Brief

Industry News
and Policy Briefs
Adani Green Energy signed a share
purchase agreement to acquire a
100% stake in SB Energy India
from Soft Bank Group (80%) and
Bharti Group (20%). The transaction
marked the largest acquisition in the
renewable energy sector in India. The
transaction valued SB Energy India at
an enterprise valuation of about $3.5
billion (~₹260 billion). The transaction
is expected to be completed by
August 2021.

Torrent Power announced the results Adani Renewable Energy Holding Tata Power declared its financial results
for Q4 of FY 2020-2021. As per the Four, a wholly-owned subsidiary of for FY 2021 and recorded a 14% growth
financial statement released by the Adani Green Energy, transferred 74% in consolidated revenues at ₹330.79
company, the company reported a total shareholding of Mundra Solar Energy billion (~$4.49 billion) compared to ₹289
comprehensive income of ₹13 billion to Adani Tradecom LLP. In all, 7,400 billion (~$3.9 billion) in FY2020.
(~$177.61 million) in FY 2021, up by equity shares were transferred to Adani
13% compared to ₹11.5 billion (~$157.11 Tradecom at face value of ₹10 (~$0.14)
million) during the same period last each aggregating to ₹74,000 (~$1,015). Adani Green Energy released its
year. audited financial results for FY ended
March 31, 2021. The company’s total
income for FY21 went up by 34% YoY
The Solar Energy Corporation of with ₹35.2 billion (~$476.48 million) from
India paid nearly ₹4.33 billion (~$58.99 the sale of energy for FY21, up by 25% at
million) to solar and wind developers for 5,482 million units.
the power it purchased in March 2021.
These disbursements accounted for
70.5% of the total amount disbursed by According to data released by the
the agency during the month. Ministry of Power, distribution
companies owed ₹120.25 billion
(~$1.62 billion) to renewable energy
The figures reportedly rose mainly generators (excluding disputed
due to the acquisition of all four amounts) in overdue payments across
Odisha distribution companies and 283 pending invoices at the end of
higher execution of solar engineering March 2021.
procurement and construction projects. Virescent Renewable Energy Trust,
a platform created by global investment
company KKR to acquire renewable The Central Electricity Regulatory
energy assets in India, announced that Commission granted Pranurja
it had acquired 76 MW of solar projects Solution Limited the registration
from Singapore-based Sindicatum right to establish and operate a power
Renewable Energy. Backed by KKR, exchange. This would be the third power
Virescent will acquire Sindicatum’s exchange in India after India Energy
assets spread across Gujarat, Rajasthan, Exchange and Power Exchange India.
and Uttar Pradesh. In Gujarat, Pranurja is a consortium of PTC India,
Sindicatum operates two solar projects. BSE Investments, and ICICI Bank.

60 www.mercomindia.com June 2021


Idrish Khan Ranjeet Santre Honey Raza
Chief Technical Officer Service Manager Business Director

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News in Brief
Policy Briefs
States

The Maharashtra Electricity


The Punjab State Electricity Regulatory Commission allowed
Regulatory Commission invited for revisions in contract demand up
comments, suggestions, and objections to two occasions for high-tension
to the staff paper for revising the commercial and industrial (C&I)
renewable purchase obligation (RPO) consumers and up to one occasion for
regulations to factor in hydropower low-tension C&I consumers in a billing
purchase obligation. The roadmap is cycle up to March 31, 2022.
being created in line with the Ministry
of Power’s letter issued on January 29,
2021 asking distribution companies The Punjab State Electricity
to include large hydropower projects Regulatory Commission set
commissioned after March 8, 2019, in additional surcharge payable by
their RPO targets. consumers availing power through
open access sources in the state. For
open access consumers (partial
The New and Renewable Energy The Haryana Electricity Regulatory and full) availing power beyond the
Department, Haryana, issued the draft Commission issued regulations for contract demand maintained with the
‘Haryana Solar Power Policy, 2021’ establishing tariffs from renewables, distribution licensee, the additional
and requested government stakeholders RPO, and renewable energy certificates surcharge determined is ₹1.16
to send their comments within 15 days for FY 2021-22 to FY 2024-25. These (~$0.016)/kWh. Partial open access
from the date of the notification on regulations will apply to grid- consumers availing power up to the
April 22, 2021. The new policy will connected renewable projects of up to contract demand need to pay ₹0.83
supersede the Haryana Solar Power 2 MW capacity where the Commission (~$0.011)/kWh as the additional
Policy, 2016. determines the tariff. surcharge.

Center
The Forum of Regulators discussed The Union Cabinet approved the
factors affecting the cost of power and ‘National Program on Advanced
stressed the need to analyze and evolve Chemistry Cell Battery Storage’
measures to reduce or contain the retail under the production-linked
tariff. The working group made certain incentive initiative. According
recommendations, highlighting the need to the Cabinet’s notification, the
for a coordinated effort by the central program aims to achieve 50 GWh
and the state governments to address of advanced chemistry cell,
high retail tariffs. and 5 GWh of niche advanced The Ministry of Power decided to
chemistry cell manufacturing set up a national mission on the use
capacity with an outlay of ₹181 of biomass in coal-powered thermal
Giving relief to solar developers amid
billion (~$2.46 billion). power plants. The main purpose of
the Covid-19 crisis, MNRE, in its
the mission is to address rampant air
notification, stated that the renewable
pollution caused by the burning of farm
energy projects having their
stubble and reduce the carbon footprint
commissioning dates on or after April The Ministry of Power issued
in thermal power generation.
1, 2021, can claim extension owing a notification directing the state
to the second surge of the Covid-19 electricity regulatory commissions
pandemic. (SERCs) to issue tariff orders for FY In the wake of the disruptive second
2020-21 at the earliest. Furthermore, wave of Covid-19 across the country,
the Ministry asked the SERCs to the Ministry of New and Renewable
strictly comply with the directions of Energy (MNRE) announced that for
the Appellate Tribunal for Electricity renewable energy projects that are
and issue tariff orders, adhering to implemented after April 1, 2021, the
the provisions of the Electricity Act, submission of physical copies would be
2003. waived off.

62 www.mercomindia.com June 2021


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Tenders & Auctions

Major Tender
This is a list of major
tenders and auctions from
May. A comprehensive list
and Auction can be found on Mercom’s
Tender and Auction

Announcements Tracker and Alerts.


Please contact

in May info@mercomindia.com
for more information.

Top Large-Scale Solar Tenders


The Indian Renewable Energy Development Agency procure 500 MW of wind-solar hybrid power on a long-
(IREDA) invited bids to set up manufacturing capacities term basis from grid-connected interstate and intrastate
for vertically integrated high-efficiency solar modules projects.
under the production-linked incentive (PLI) program. SJVN Limited floated tender for end-to-end services,
Manufacturers setting up any solar production facilities including design, engineering, supply, erection, testing,
will be eligible to apply for the incentive under the and commissioning of a 75 MW solar project at Parasan
program. Solar Park in Uttar Pradesh.
The Maharashtra State Electricity Distribution Company The Railway Energy Management Company Limited
Limited (MSEDCL) launched a tender to develop 500 MW (REMCL) issued a tender to develop a 15 MW solar project
of interstate or intrastate grid-connected solar projects with a 7 MW/14 MWh battery energy storage system
on a long-term basis. The company also invited bids to (BESS) on railway land at Butibori in Nagpur.

64 www.mercomindia.com June 2021


June 2021 Issue 04 65
Tenders & Auctions

Rooftop Solar Tenders


The Punjab Energy Development Agency released a 2 MW rooftop solar project for three years at the Netaji
tender for the design, manufacture, supply, erection, and Subhash Chandra Bose International Airport in Kolkata.
commissioning of 5 MW of grid-connected rooftop solar The Company has also invited bids for facility management
projects on government buildings in the state. and comprehensive operation and maintenance (O&M) of
The Airports Authority of India invited bids for the 1.5 MW grid-connected rooftop solar project at the
comprehensive operation and maintenance (O&M) of a integrated cargo complex, Chennai Airport.

Other Tenders
The Odisha Renewable Energy Development Agency 315 W) for solar applications in the state.
initiated a tender to select solar power generators to set The Gujarat State Electricity Corporation issued a
up 500 MW of solar projects under Component A of tender for the supply and replacement of degraded
the Pradhan Mantri Kisan Urja Suraksha evam Utthan polycrystalline solar modules installed at the 1 MW ash
Mahabhiyan (KUSUM) program on a build, own, and dyke solar project in Gandhinagar.
operate basis. Bharat Heavy Electricals Limited released a tender for
The Madhya Pradesh Urja Vikas Nigam published a the supply of 2,250 MT of module mounting structure
tender to set up 270 MW of grid-connected solar power (3mm and above) for the 500 MW solar project at
projects of capacity 500 kW to 2 MW under Component Neemuch Solar Park in Madhya Pradesh. The park is
A of the KUSUM program. being developed by Rewa Ultra Mega Solar.
Uttar Pradesh New and Renewable Energy Development The Solar Energy Corporation of India (SECI) published
Agency issued a tender for setting up 106 MW of grid- a tender to select land banks and parcels to set up a 100
connected solar projects of 0.5 MW, 1 MW, and 2 MW MW solar project in Chhattisgarh.
capacity under Component A of the KUSUM program. The Agricultural Marketing Department,
Central Electronics floated tenders for 1.75 million Government of Andhra Pradesh, invited bids to install 112
multicrystalline solar cells. The company also released a grid-connected solar cold storage rooms across the
tender to procure 500,000 multicrystalline solar cells state.
with a wattage capacity of 4.68 W and higher. The Paschim Gujarat Vij Company, on behalf of other
Rajasthan Electronics and Instruments invited bids distribution companies (DISCOMs) of Gujarat, launched
to procure 40,000 solar cells of the monocrystalline a tender to procure 68,245 bi-directional solar
passivated emitter and rear cell (PERC) category of 5.64 W static meters (single-phase, 2-wire, 5-30 Ampere) for
capacity. downloading data from rooftop solar systems.
The Chhattisgarh State Renewable Energy Development The Department of Atomic Energy issued a tender
Agency announced a tender to standardize the rates for for the O&M of a 12 MW solar project at a heavy water
the supply of solar modules of different capacities (75 W - plant in Manuguru, Telangana.

66 www.mercomindia.com June 2021


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Tenders & Auctions

Reissued and Amended Tender


The IREDA extended the deadline for the 5 GW grid- and manufacturers included in the ‘approved list of models
connected solar projects (Tranche-III) under the central and manufacturers (ALMM),’ as published by the Ministry
public sector undertaking (CPSU) program (Phase-II). of New and Renewable Energy (MNRE). Bidders have
IREDA has also issued amendments to the request for also been asked to take note of the memorandum issued
selection issued for the projects, and the ceiling tariff for by MNRE on March 9, 2021, regarding the basic customs
the projects has been increased to ₹2.45 (~$0.033)/kWh duty on solar cells and modules while responding to the
from the earlier ₹2.20 (~$0.030)/kWh. RfS.
SECI revised the bid submission deadline for the 1,785 Rising Sun Energy extended the bid submission
MW solar tender (Tranche IV) floated for Rajasthan. One deadline for engineering, procurement, and construction
of the modifications states that the cells and modules used (EPC) of 190 MW grid-connected solar projects at Nokh
in the project will have to be sourced only from the models Solar Park in Rajasthan.

Auctions
TP Saurya, a Tata Power subsidiary, was declared set up at the Raghanesda Solar Park in Gujarat (Phase-X).
the winner in the Maharashtra State Power Generation SJVN quoted a tariff of ₹2.64 (~$0.036)/kWh for the 100
Company’s auction for setting up 250 MW of grid- MW capacity.
connected solar photovoltaic projects at the Dondaicha NHPC awarded the EPC contract to Tata Power Solar
Solar Park in Dhule, Maharashtra. Systems to develop a 40 MW solar project in the Ganjam
SJVN Limited won a 100 MW solar project in the district of Odisha. The total estimated value of the contract
Gujarat Urja Vikas Nigam’s auction. The projects are to be is ₹1.88 billion (~$25.76 million)

68 www.mercomindia.com June 2021

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