Renewable Energy

Market
Sustainable Clean ‘Energy
Transition’

De-carbonisation for ‘Net

Zero’

India
Feb Mar 2022
Prashant Deshmane
Table of Content
1. Open Access , Third Party Sales & Decarbonation

2. Regulatory Orders Impact … Examples

3. Major Players & Projects …Post 2019 Stimuli

4. Bids/Projects in Jan- Feb 2022

5. Industry Trends (GTAM)…Additional Revenue Sources

Proprietary & Confidential

Open Access, Third party Sales & Decarbonisation
• Open Access Changes & Drivers..
 Landed Cost -Increasing Market Size – C&I
 Cross-Subsidy Surcharge -More States benefiting OA tariffs
 State-wise player-wise corporate -More Players
PPA Market
Market Potential & Economics
• Third Party Sales /Captive
-Expected new installations 0.8-1.2 GW of
 Standalone or Hybird Solar & new onsite installations across the C&I per
Wind Farms year
 Distributed/Off-Grid Solar
 GTAM Sale -Cleaner & cheaper, 25 years cost
certainty
 Decarbonation
-Opex project Tariff -3.5-4 Rs/kWh against
 Crabon Credits, REC1s … 2400 - Grid > 6.5 Rs/kWh
3000 Rs/ MWhr
 Discom RPO2s…Increasing -Most MSMEs (BBB+ and below) Change
Targets > 21% in preferred business model from Capex to
Opex
Sources:
1.https://www.recregistryindia.nic.in/index.php/publics/faqs
Source: JMK Research, IEEFA
2.https://rpo.gov.in/
Regulatory Orders Impacts…Examples
Haryana
-Wheeling, T & D, CSS, reactive
power charges, electricity duty,
tax and cess are waived for 25
years
 OA reduced by 0.81
Rs/unit  - Captive Generating Plant
-Banking energy cap - 10%
-For intra state no exemptions are
applicable
SECI- MNRE, CERC– June
2020- 2.5 GW ISTS , 0.07
Rs/kWhr as trading Margin by
Discoms on PSA, PPAs
Maharashtra
-LTOA period changed from ‘exceeding 12
years’ to ‘exceeding 7 years’
-Priority OA consumer order sources
- Renewable Energy Generators
- Banked Energy
- Long term Bilateral purchase
- Medium term open access
- Short term inter-State open access
including power exchange transactions,
- Short term intra – State Open access,
Distribution Licensee
-Banking period reduced from 1 year to 1
month, Banking Energy Cap – 10% on monthly
Gen
Source: MNRE, CERC, SERCs, JMK Research
Major Players & Projects …Post 2019 Stimuli
Earlier Players: Ujaas, Enrich, and Rays
Experts , Tata Power Solar
New Captive model
-Min 26% of the equity by captive
-Exempted from Cross Subsidy
Surcharge (CSS) charges
New Entrants:
Solar Rooftop Only
Increasing Projects Pipeline:
-Avaada - 100 MW , Haryana
- Plans 2 GW of OA projects across
Maharashtra, Tamil Nadu, Haryana,
Karnataka, and Odisha
-Amplus - 150 MW Haryana & another 100 MW in
Uttar Pradesh
-CleanMax - 150 MW Haryana
-Rays Experts - 100 MW in Haryana
Captive & Rooftop
Source: JMK Research
Bids/Projects in Jan- Feb 2022

Source: JMK Research

Industry Trends…Additional Revenue Sources (Jan 22)

Green Term-Ahead Market – (GTAM)

•IEX 116.17 MU @ 3.80 Rs/kWh
•PXIL 6.97 MU @ 4.32 Rs/kWh

…Developers Getting better tariff for RE

excess generation over PPA CUF

… Dis-coms to fill-in short fall of targets

of RPO by MNRE which likely to go up
to Purchase more RE Gen
https://rpo.gov.in/Home/About

Source : IEX, PXIL, JMK Research