Market Intelligence Report - Mercom India

Market Intelligence ReportINDIA CLEANTECH

Aug13 2019

1Go to category Industry Company Project Tenders amp Auctions Policy

Over 1 GW of Solar Tenders Floated But No Auctions in July 2019After witnessing a huge surge in tender announcements in June 2019 the tender and auction activity slowed down in July Nearly 800 MW of solar projects were tendered 300 MW retendered while no auctions were recorded during the month

When compared with June 2019 in which over 13 GW of solar capacity had been tendered and around 19 GW auctioned activity in July was sluggish Year-over-year the capacity tendered in July 2019 was about 324 MW higher than the capacity tendered in July 2018 On the other hand solar

ContentsIndustry News 2

Company News 9

Project News 11

Tender amp Auctions 11

Policy 15

Andhra Wind PPA APTEL Stalls Andhra DISCOMrsquos Move to Cancel Axis Energyrsquos Wind PPA

page 2

NTPC Solar TenderNTPC Announces Tender for 1200 MW of Solar Projects to be Set Up Across India

page 13

KERC Generic TariffKarnataka Electricity Regulatory Commission Sets New Generic Tariff for Solar Projects

page 15

(continued on page 2)

Click here for more Mercom News and Analysis

auctions of almost 6 GW were conducted in July 2018 the highest in 2018

There were around 3 GW of solar tenders supposed to be auctioned in July according to Mercomrsquos India Solar Tender Tracker However due to technical issues and lack of interest from developers the tenders were postponed to the next month

For instance the National Thermal Power Corporation (NTPC)rsquos two tenders of 1000 MW capacity each which were issued in June 2019 and the Solar Energy Corporation of India (SECI)rsquos 12 GW capacity under ISTS-V that had a bid submission deadline of July 2019 has been extended to August 2019

In March 2019 SECI had floated 2000 MW of grid-connected solar PV projects under the second phase of the Central Public Sector Undertaking (CPSU) program The tender was undersubscribed by 932 MW and bids totaling 1068 MW were submitted by various government entities in July 2019 In the past few months several SECIrsquos tenders have been undersubscribed indicating poor interest from the developers largely due to tariff caps

Go to category Industry Company Project Tenders amp Auctions Policy


Aug 13 2019

2

Here is a quick recap of the major tenders that were announced in July 2019

Major Tenders

Adani Electricity Mumbai Limited (AEML) has issued a tender for 350 MW of grid-connected wind-solar hybrid power projects to meet its renewable purchase obligation (RPO) target An additional 350 MW capacity has been tendered under the greenshoe option of the global competitive bidding process A maximum bid of 700 MW capacity can be offered by an interested bidder including the 350 MW offered under the greenshoe option The hybrid projects can be set up anywhere in India on a build own operate (BOO) basis

Oil India Limited (OIL) issued a tender to develop 100 MW of solar project capacity anywhere in India under the second phase of the central governmentrsquos CPSU program Oil major Indian Oil Corporation Limited (IOCL) also floated a tender for 1050 kW of solar PV systems at Guwahati Refinery

Bharat Heavy Electricals Limited (BHEL) issued a tender for the supply of balance of system (BoS) items for the installation and commissioning of two grid-connected solar PV projects with a combined capacity of 69 MW The two projects are a 39 MW solar project at Yellandu and a 30 MW solar project at Manuguru Both the projects are located in Bhadadri Kothagudem district of Telangana

Retendered

The Haryana Power Purchase Company (HPCC) on behalf of the Uttar Haryana Bijli Vitran Nigam (UHBVN) retendered 300 MW of solar projects to be developed in the state which it had initially floated in January 2019 The tender was set with an upper tariff ceiling of C3 (~$0043)kWh for the entire 25-year tenure of the power purchase agreement (PPA) Due to the lack of desired response from the bidders the HPCC has retendered the capacity Aug 12

INDUSTRY NEWSAPTEL Stalls Andhra DISCOMrsquos Move to Cancel Axis Energyrsquos Wind PPA

Andhra Pradeshrsquos decision to withdraw 21 wind power purchase agreements (PPAs) including that of Axis Wind Farms has been stalled by the Appellate Tribunal for Electricity (APTEL)

Andhra Pradesh South Power Distribution Company Limited (APSPDCL) had submitted to the Andhra Pradesh Electricity Regulatory Commission (APERC) that 21 wind PPAs for wind power projects worth 7769 MW should be canceled

A portion of the petition said that given the state DISCOMsrsquo consequent inability to bear the additional financial burden involved in purchasing power from 21 wind developers it has decided to withdraw the PPAs entered with various wind power projects including the clients of Suzlon and Axis Energy Ventures It argued that since the PPAs are not yet approved it is not enforceable and the APSPDCL is at liberty to withdraw the PPAs Stating this the state DISCOMs requested to withdraw the 21 PPAs entered with various wind power projects The commission is slated to hear the matter on August 17 20119

Meanwhile Axis has requested APTEL to issue an ad-interim stay on further proceedings The petitioner further stated that it has already invested huge amounts to proceed with the projects The withdrawal would cause ldquoirreparable injury and loss apart from great financial burden since bank guarantees of substantial amounts have already been given to nodal agenciesrdquo argued Axis (continued on page 3)


Aug13 2019


APTEL has asked the respondents to send back the notice issued to them with necessary clarifications by August 26 2019

In July 2019 Amaravathi High Court had issued a stay order on the implementation of the state DISCOMrsquos letter seeking a revision in the power purchase agreement for the solar and wind projects The stay will be in place until August 22 2019 However even after the stay order the state began severely curtailing wind power which was confirmed to Mercom by wind developers with assets in the state

Previously Mercom reported that the nine renewable energy project developers approached the court in the matter ReNew Power Azure Power ACME Solar Axis Wind Farms Khandke Wind Energy Vena Energy Power Ecoren Energy Vayu Urja Bharat and Waneep Solar (special purpose vehicles of Hero Future Energies)

These developments come on the heels of the statersquos new chief minister Jaganmohan Reddyrsquos newly-formed committee to deliberate and bring down the costs in all the high-priced PPAs for wind and solar power projects signed during the term of the previous government alleging corruption Aug 13

5595 Electric Buses to Soon be Deployed Across 64 Indian Cities

In order to promote clean mobility in public transportation the Department of Heavy Industry (DHI) under the Ministry of Heavy Industry and Public Enterprises has granted the approval for 5595 electric buses to be deployed in 64 cities under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II) program

In June 2019 the Department of Heavy Industry invited expressions of interest from state transport departments for the deployment of 5000 electric buses under the FAME II program

The deployment of electric buses will be on an operational cost model basis

A total of 86 proposals from 26 states and union territories for the deployment of 14988 e-buses were received

After the evaluation of these proposals the government has granted approval for 5095 electric buses in 64 cities and state transport corporations for intra-city operation 400 electric buses for intercity operation and 100 electric buses for last-mile connectivity to Delhi Metro Rail Corporation (DMRC) the official statement reads

The buses will run 4 billion kilometers during their contract period and are expected to save nearly 12 liters of fuel over the contract period which will help in reducing 26 million tons of carbon dioxide emissions

As per the statement each selected city or union territory is required to initiate the procurement process in a time-bound manner for the deployment of sanctioned electric buses on an operational cost basis

Various state governments have acknowledged the vital role of clean public transportation for a sustainable future Lately numerous states have floated EoIs for the same For instance in June 2019 Mercom reported that the Andhra Pradesh State Road Transport Corporation (APSRTC) came up with a proposal to deploy 350 electric buses in five cities in the stateRead More Aug 13



Aug 13 2019

4

India Likely to Hike Import Duty on Solar Equipment in the Coming Years

The Minister for Power R K Singh has announced that the import duty thatrsquos currently being levied on solar equipment will be raised in the coming years

According to a Press Trust of India (PTI) report ldquoIndia will increase the import duty on solar equipment to encourage domestic industry in the coming yearsrdquo Singh said He also announced that a storage policy would be unveiled soon which would provide tax incentives especially for solar equipment manufacturing in Indiardquo

ldquoRight now safeguard duty is imposed on solar equipment which will be diluted in a few years We will increase the tariff on solar equipment down the value chain in the coming yearsrdquo the PTI report quoted him as saying

Singh assured that the rise in import duty would not impact solar energy bidding process in India

ldquoThe Power Minister has stated that there will be a hike in import duty on solar power equipment to boost domestic production This will impact upcoming bids for the NTPC and SECI tenders as solar IPPs (independent power producers) are likely to factor in such an increase unless lsquoChange in Lawrsquo provisions allow a delta claimrdquo commented Dipti Lavya Swain Partner HSA Advocates

Recently the Directorate General of Trade Remedies (DGTR) issued its preliminary findings in the anti-dumping investigation on the imports of aluminum and zinc-coated flat products originating in or exported from China PR Vietnam and Korea RP It has imposed a provisional duty on the import of these products that are used in solar mounting structures

Mercom recently reported that lately aggressive bidding had taken a toll on the mounting structures as the quality is being sacrificed to cut costs which could have a negative consequence on hundreds of solar projects that are supposed to last 25 years in any weather

For the past few months an anti-dumping duty has been levied on the import of solar glass and EVA sheets Last year the DGTR had recommended a 25 safeguard duty on solar cell imports from China and Malaysia for the first year followed by a phased-down approach In the first six months of the second year a safeguard duty of 20 will be payable by exporters to India and in the latter half of the second year exporters will pay a safeguard duty of 15 The safeguard duty of 25 on solar modules and cells has been in effect since July 30 2018Read More Aug 12

Demand for Solar and Non-Solar RECs Increased in July 2019

In Julyrsquos renewable energy certificate (REC) trading session there was a rise in the number of solar and non-solar RECs that were traded A total of 129056 solar RECs were traded on the Indian Energy Exchange (IEX) and the Power Exchange India Limited (PXIL) together The RECs were traded at C2000 (~$2823)REC on both the exchanges

The number of solar RECs traded in July 2019 was 5288 more than the 123768 traded at the IEX and PXIL in June 2019 In line with June 2019 the number of solar REC buy bids exceeded the number of sale bids by over 200000 in July as well

In July 125199 non-solar RECs issued before April 1 2017 were traded on the IEX and PXIL On the IEX such non-solar RECs traded at C1500 (~$2117)REC and on the PXIL they traded at C160250 (~$2262)REC

While the price of such RECs traded on the IEX remained similar to that in June 2019 on PXIL it increased by C10250 (~$145)REC

On the IEX and PXIL combined a total of 489755 non-solar RECs issued after April 1 2017 were sold On the IEX 387679 non-solar RECs were sold at the rate of C1650 (~$2329)REC




Aug 13 2019

5

This was C50 (~$071)REC more than the rate at which it was traded on the IEX in the previous month On the PXIL102076 non-solar RECs were sold at a rate of C1705 (~$2407)REC an increase of C150 (~$212)REC when compared to June 2019

When contacted a solar executive commented ldquoThe past four months have been great for REC trading Now the time is to create a balance between supply and demand So far the demand has been high and merchants have been enjoying Therersquos a need to balance out supply and demand A pipeline of RECs needs to be created so that the balance can be achievedrdquo Aug 09

Corporate Social Responsibility Funds Can be an Effective Tool for Solar Expansion

Economic growth has pulled millions of people out of poverty around the world but has also resulted in severe pollution especially in emerging markets like India and China with harmful emissions rising meteorically across the globe over the past decade

On October 2 2016 India became the 62nd country to ratify the Paris Agreement The agreement requires every ratifying member country to come up with a national plan to curb carbon emissions and rising temperatures India has set a goal of generating 40 of its electricity from renewable energy sources as part of its plan

As the country gears up to become a leader in renewable energy access to financing is still one of the biggest challenges

The concept of Corporate Social Responsibility (CSR) which was introduced through the Companies Act 2013 puts the onus on companies to formulate policies which will help uplift the community

Per the Companies Act companies with a net worth of C5 billion (~$705 million) or more or a turnover of at least C10 billion (~$141 million) or a net profit of a minimum C50 million (~$705000) have to spend 2 of their average three-year annual net profit towards CSR activities in a given financial year

Even though the policy has been in place for years compliance has been an issue and the government is trying to enforce the CSR compliance aggressively

Why arenrsquot corporations investing in solar and wind which not only reduce pollution but also help generate energy

Dr Anuvrat Joshi India business development director at Cleantech Solar said ldquoTop corporates in India and across the world have made very substantial commitments to include renewable energy in their power mix and they are delivering on this commitment This trend has steadily picked up steam over the past five years and the results are already quite evident across our customer baserdquo

Joshi added that in many instances in addition to meeting the CSR objectives of the customer the decision is economically appealing too

their power needs with solar power through on-site and off-site solutions plus they are achieving a substantial reduction in their power costs in doing sordquo Joshi addedREAD MORE Aug 09

Central Electronics Calls for Empanelment of Solar Pump Manufacturers Under KUSUM Program

The Central Electronics Limited (CEL) a public-sector enterprise of the central government has invited an Expression of Interest (EoI) for empanelment of manufactures of solar water pumps in tenders under the KUSUM program (Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan)




Aug 13 2019

6

The last date to submit the EoI is August 31 2019 According to the CEL any company registered in the country can participate and the company must be a manufacturer of solar water pumps

CEL has specified that the company must carry out the testing of solar water pumping systems at their cost along with solar modules that will be manufactured by the CEL The modules will be provided by CEL at the Ministry of New and Renewable Energy (MNRE) designated testing centers on a returnable basis for these tests

Recently the MNRE issued detailed guidelines to implement the KUSUM program with plans for Indian farmers to solarize agriculture Mercom previously reported that in March 2019 the central government approved the launch of KUSUM program aimed at helping the farmers install solar pumps and grid-connected solar power projects which in turn would provide financial and water security to farmers

The program has been divided into three components and aims to add a solar capacity of 25750 MW by 2022 with the central governmentrsquos support of C34422 billion (~$499 billion) The MNRE has specified that it will be mandatory to use indigenously manufactured solar panels with indigenous solar cells and modules The balance of system (BoS) should also be manufactured indigenously The vendor must declare the list of imported components used in the solarization system

Under the program a maximum extension of six months will be provided to set up the pumps For a delay of more than one month 10 of the service charge will be deducted and for a delay of up to three months an additional 10 of service charge will be deducted Moreover for a delay of up to six months an additional 10 of the service charge will be deducted No extension will be granted beyond six months and only those systems which are installed and commissioned within the stipulated time will be considered for the release of central financial assistance

Solar power is one of the most versatile forms of energy with boundless potential and can be a game-changer for the agricultural sector saving precious water resources reducing dependency on the grid and even becoming an additional revenue stream for farmers Aug 09

Adanirsquos Subsidiaries Petition Tamil Nadu Commission Against Solar Power Curtailment

Three of Adani Powerrsquos subsidiaries (Ramnad Solar Power Kamuthi Renewable Energy and Adani Green Energy) have filed a petition before the Tamil Nadu Electricity Regulatory Commission (TNERC) against the curtailment of solar power

The petition was filed against the Tamil Nadu Generation and Distribution Company (TANGEDCO) Tamil Nadu State Load Despatch Center (TNSLDC) Tamil Nadu Transmission Corporation Limited (TANTRANSCO) and Ministry of New and Renewable Energy (MNRE) The petition addressed the issue of curtailment of solar power in Kamuthi the worldrsquos sixth-largest (as of 2018) solar park and Ramnad solar power project

The applicants filed petitions before the commission to direct the respondents to stop issuing curtailment instructions to their solar power projects as it was causing huge losses to the companies The petitioners have also requested the commission to issue a direction to the respondents to strictly enforce or implement lsquomust-runrsquo status of solar power projects in the state Adani has also asked for compensation for the loss of generation

The three Adani subsidiaries have requested the commission to consider deemed generation to the solar projects for the loss of generation due to outages or backing down instructions and to approve the methodology for estimating deemed generation

However the commission noted that enforcing the ldquomust-runrdquo status of solar projects in the state is essentially a regulatory aspect `and not an adjudicatory one for it to review If the nature of the petition is adjudicatory then it would be termed as a dispute resolution petition

On the other requests raised the commission stated that many questions need to be answered The duration of curtailment has to be ascertained from the records of the SLDC and if any power flowed not the grid during that period Moreover what was the grid frequency when backing down was ordered and whether backing down of solar power would have been avoided by replacing it with conventional energyREAD MORE Aug 09



Aug 13 2019

7

Power Grid to Build Transmission Network in Gujarat amp Rajasthan to Evacuate Renewables

The Power Grid Corporation of India Limited (PGCIL) has won two contracts to set up transmission infrastructure to evacuate power generated from renewable projects PGCIL emerged as the successful bidder under tariff-based competitive bidding to establish the transmission system and the letters of intent have also been issued

PGCIL will set up the transmission system for providing connectivity to renewable energy projects at Bhuj-11 (2000 MW) in Gujarat on a build own operate and maintain (BOOM) basis The transmission system comprises a 765400 kV gas-insulated substation and 765 kV of transmission lines in the state

The company will also develop transmission systems associated with LTA application from Rajasthan Solar Energy Zone (SEZ) Part ndash C on BOOM basis The transmission system comprises a 765400 kV substation and 765 kV and 400 kV transmission lines that traverse Rajasthan Haryana and Delhi

When completed this transmission network will be a substantial effort by PGCIL to address the transmission woes faced by renewable developers in India

Recently Mercom reported that Adani Transmission Ltd received two letters of intent to augment the countryrsquos transmission network in the face of surging renewable additions One letter was issued by PFC Consulting Limited for a transmission project in Rajasthan while another was issued by REC Transmission Projects Company for a transmission project in Gujarat

Lack of transmission infrastructure has been a growing concern for solar and wind companies and Mercom reported on this issue several times

In the past Mercom has written about how with the expected surge in electricity demand over the coming decade and the rapid installation of solar and wind Indiarsquos transmission and distribution system also requires significant expansion

Recently Mercom reported the Minister of Power RK Singh stating that ldquoA working group for the expeditious implementation of renewable energy generation and associated transmission system has been constituted by the governmentRead More Aug 08

After Junersquos Dip Spot Power Price Rises Slightly to C338kWh in July 2019

In July 2019 the spot power prices witnessed a surge rising to C338 (~$0048)kWh This was a 15 increase month-over-month (MoM) when compared to June 2019 in which spot power price was recorded to be C332 (~$0047)kWh

Before June 2019 spot power prices had soared high for four consecutive months in 2019

According to the national load despatch center (NLDC) data the pan India peak demand met during July 2019 touched 175 GW registering a 4 increase year-over-year (YoY) while the power demand met stood at 117 billion units (BU) an increase of 6 YoY

According to the Indian Energy Exchange (IEX) the day-ahead market (DAM) alone saw an increase of 19 YoY while the term-ahead market (TAM) clocked a 290 increase in YoY basis The Term Ahead Market is leveraged by the distribution companies (DISCOMs) to manage the demand-supply variability especially with the high renewable energy concentration in the grid

In July 2019 DAM and TAM had traded 5271 million units (MU) together an increase of 705 MU compared to the 4566 MU traded in June 2019 According to the IEX the low price coupled with greater certainty and predictability in procurement continue to make a compelling proposition for the DISCOMs as well as open access consumers to step up their procurement through the exchange (continued on page 8)



Aug 13 2019

8

lsquoOne Nation One Pricersquo was realized on all days of the month

When contacted an industry source informed that the surge in spot power price is negligent ldquoIn MoM and YoY comparison therersquos not even a 2 deviation upward or downwardrdquo he said

The source further added that the demand is shifting back to the exchange ldquoDue to the recently-concluded elections a lot of demand had been taken up by the entities for bilateral agreements for power supply as they had been asked to assure power to citizensrdquo he said

The energy expert also informed that therersquos a negligent amount of renewable energy (wind solar) in the DAM as of now and it needs to go up Aug 08

CEA to Maintain Database of Outstanding Dues by DISCOMs to Solar Wind Developers

The Central Electricity Authority (CEA) is planning to maintain the database of all outstanding dues by distribution companies (DISCOMS) to renewable energy generators

Several developers have been in a tough spot due to the non-payment of their dues by various state distribution companies Payment delays are becoming a major problem again for solar and wind project developers in India especially in Andhra Pradesh Tamil Nadu and Telangana Some instances in Madhya Pradesh and a DISCOM in Karnataka have also been blamed for long payment delays to developers

A few months ago Mercom had reported that the DISCOMs in Andhra Pradesh Telangana and Karnataka were staring at acute power shortages as the National Thermal Power Corporation (NTPC) warned that it would stop supply due to non-payment of dues

The three states together owed NTPC C5838 billion (~$81499 million) in outstanding power bills (both conventional and solar) A total amount of C1884 billion (~$2626 million) was due to be paid by these DISCOMs to the NTPC for solar power supplied under the National Solar Mission (NSM)

In its letter dated August 5 2019 the CEA has asked renewable generators to provide the details of such dues every month They have also been asked to submit their contact details so that they can have access to PRAAPTI portal

PRAAPTI stands for Payment Ratification And Analysis in Power Procurement for bringing Transparency in Invoicing of generators It is an online platform aimed at enhancing transparency and encouraging best practices in power purchase transactions

Recently the National Solar Energy Federation of India (NSEFI) wrote to the Minister for Power New and Renewable Energy R K Singh seeking the creation of a fund for providing liquidity to state DISCOMs which would help solar power producers The letter elaborated on how rampant payment delays are affecting the independent solar power producers

The non-payment of dues by DISCOMs has been a persistent issue in the renewable industry and the government has acknowledged the problem and aims to address it The Ministry of Power has issued procedural guidelines for the scheduling of power to distribution companies in case of non-maintenance of the line of credit under the paymentREAD MORE Aug 08

CERC Proposes New Regulations for Granting Electricity Trading License

The Central Electricity Regulatory Commission (CERC) has issued a notification to address the procedure terms and conditions for the grant of licenses for electricity trading

The draft notification sets the general financial and technical criteria that companies have to achieve to be granted trading licenses Further it also mentions the grounds for the cancellation of power trading licenses The notification also sets trading margins according to the type of contracts among other new norms

The regulator has proposed net-worth requirement for Category-I trading licensees to C750 million (~$1079 million) for trading between 5000 million units (MUs) and 10000 MUs For companies looking to exceed the trade of 10000 MUs per annum additional C200 million (~$288 million) net-worth would be required to be proved for every 3000 MUs

In terms of trading margins the CERC mentions that for short-term contracts and contracts through power exchanges the trading licensee should charge a minimum trading margin of C0 per kilowatt-hour (kWh) and a maximum trading margin of seven C007 ~($000099)kWh

The CERC has mentioned that it will have the power to disqualify for trading licensees in case of fraud insolvency and withholding information

The regulations also layout guidelines in terms of procedure non-compliance and penalties imposed on the applicants and approved traders

In 2009 the central body had issued the first regulations for the power trading industry which had a lower minimum net worth




Aug 13 2019

9

criteria for Category-I licensees

In July CERC granted ldquoCategory I Electricity Trading Licenserdquo to the National Thermal Power Corporation (NTPC) for electricity trading to help the NTPC in implementing renewable projects especially solar and wind across the country

In March 2019 Mercom reported on the CERCrsquos new guidelines for cross-border power trading which could be the new frontier for

solar growth In January 2019 the Ministry of Power had issued the guidelines for import and export of electricity and power trading with neighboring countries

Last year the CERC proposed granting a Category-I trading license to Refex Energy Limited The proposal came after the company requested the CERC to grant it a Category I license for inter-state trading of electricity across India Aug 07

Stop Curtailing Solar and Wind Power High Court to Andhra Pradesh

The Amaravati High Court has issued an order asking the state load despatch center (SLDC) and the statersquos transmission company (APTRANSCO) to stop the curtailment of power from solar and wind energy projects

Recently the Amaravati High Court had imposed a stay order on the implementation of the state DISCOMrsquos letter seeking a revision in the power purchase agreement for the solar PV and wind projects The stay will be in place until August 22 2019 after which the court will hear the matter However even after the stay order the state began severely curtailing wind power which was confirmed to Mercom by wind developers with assets in the state

In the latest order the Amaravati High Court has noted that the matter of revisiting of power purchase agreements is under consideration and a stay order has been issued until August 22 2019 As such the SLDC or APTRANSCO cannot curtail power generated from such projects whose developers or owners have approached high court seeking relief

The court reaffirmed the must-run status of solar and wind projects and has asked the APTRANSCO to provide a written justification for the curtailment

These developments come on the heels of the statersquos new chief

minister Jaganmohan Reddyrsquos newly-formed committee to deliberate and bring down the costs in all the high-priced PPAs for wind and solar power projects signed during the term of the previous government alleging corruption

Following the statersquos surprise move the Power Minister had written to the chief minister asking him to exercise restraint in the matter and not hurt investor interests in the state However the state went ahead with its decision making the developers seek legal support Later Singh also penned down his apprehensions about the proceedings in a letter to Home Minister Amit Shah

Moreover the National Solar Energy Foundation of India (NSEFI) wrote a letter to the Minister of Power RK Singh requesting for his immediate intervention in the curtailment of renewable energy projects in Andhra Pradesh despite the ldquomust-runrdquo status accorded to them ldquoA significant adverse action being undertaken by the state instrumentalities is rampant backing down of both wind and solar power by the Andhra Pradesh State Load Despatch Centre (APSLDC) As you are aware wind and solar power projects have been accorded a lsquomust-runrsquo status under the applicable laws Despite the must-run status accorded to such projects our member companies were being subjected to curtailment regularly through verbal instruction issued by APSLDCrdquo stated the letter Aug 07

COMPANY NEWSShell to Install Rooftop Solar at Its Lubricant Plant in Maharashtra

Shell the largest lubricants business in the world has decided to install solar photovoltaic (PV) systems on the roofs of seven lubricant plants in India China Singapore Switzerland and Italy

Altogether the solar panels are expected to generate over 7500 MW of electricity every year

According to the company the project can curtail greenhouse gas emissions worth nearly 4500 tons annually which is equivalent to taking 2600 cars off the road for a year

In India the rooftop solar systems will be installed in Taloja Maharashtra Other projects include the Nangang Zhapu and Zhuhai projects in China Cisliano project in Italy Tuas project in Singapore and Bern project in Switzerland

Shell will be working in conjunction with Cleantech Solar for the installation of approximately 1700 solar modules which is expected to generate 683 MWh of electricity annually All installations are scheduled to be completed by the end of 2019




Aug 13 2019

10

Asked why Shell took the plunge to install solar panels in these countries the company spokesperson told Mercom ldquoUsing solar energy at our facilities is one way we can participate in the energy transition Our goal is to reduce carbon intensity in our lubricants supply chain Deploying solar PV in our facilities such as lubricant plants and offices is one way we can affordably power our own operations with less carbon dioxide This is part of Shell Lubricantsrsquo commitment to run a safe efficient responsible and profitable businessrdquo

For the funding model for the Taloja solar project Shell has signed a subsidy-free purchase power agreement with Cleantech Solar As part of the deal Cleantech Solar will design build finance own operate and maintain the Taloja solar facility

When Mercom asked about the financial agreement between Shell and Cleantech the spokesperson did not comment on the capital expenditure for the individual investments

Last year Mercom had reported that Shell acquired a 49 interest in Cleantech Solar a Singapore-based renewable energy project developer ldquoUsing solar energy to help power our lubricant plants ldquoUsing solar energy to help power our lubricant plants enables us to reduce the carbon intensity in our lubricants supply chainrdquo said Richard Jory Shellrsquos vice president lubricants supply chain

Earlier Indian lead-acid battery manufacturer Exide Industries (Exide) entered into three share subscription and shareholdersrsquo agreements with renewable energy developer Cleantech Solar to install captive solar projects at its factories

Mercom had previously reported that Cleantech Solar had joined forces with responsAbility an asset manager in the field of development investments and professionally-managed investment solutions provider to increase the momentum of rooftop solar energy adoption in South-East Asia and India The company had also announced last year that it would develop rooftop solar projects aggregating 27 MW in three Asian countries Aug 12

Adani To Build Transmission Lines in Gujarat and Rajasthan To Facilitate Renewables

Adani Transmission Ltd has received two Letters of Intent (LoI) to augment the countryrsquos transmission network in the face of surging renewable additions

The first LoI has been issued by PFC Consulting Limited The transmission project would be established in Rajasthan on build own operate and maintain basis The Bikaner ndash Khetri Transmission project will have around 480 circuit kilometers of a 765 kV line combining a transmission system This project is mainly being constructed to facilitate transmission system related to long term applications from Rajasthan Solar Zone Part-D

With this project in hand Adani Transmission says its cumulative transmission network will be around 13943 circuit kilometers of transmission line with 23280 MVA transformation capacity

Of this around 11347 circuit kilometers and 18330 MVA is operational This is inclusive of the benchmark distribution network catering to consumers in Mumbai Focused on developing supporting infrastructure for renewable energy in the country the company intends to establish 20000 circuit kilometers of transmission lines by 2022

Additionally Adani Transmission has also received a LoI from REC Transmission Projects Company for a transmission project in Gujarat The project will be established on a build own operate and maintain basis for 35 years The project consists of around 272 circuit kilometers of 765 kV line and 3000 MVA transformation capacity This project is being constructed to strengthen the transmission system for relieving overloads that have been identified in the Gujarat intra-state system due to renewable energy injection in Bhuj


In the past Mercom has written about how with the expected surge in electricity demand over the coming decade and the rapid installation of solar and wind Indiarsquos transmission and distribution system requires significant expansion

Recently Mercom reported the Minister of Power RK Singh stating that ldquoA working group for the expeditious implementation of renewable energy generation and associated transmission system has been constituted by the governmentrdquo Aug 07

Global Solar EPC Company Sterling amp Wilson Floats IPO Targeting to Raise C3125 Billion

Sterling and Wilson Solar Limited (SWSL) the solar engineering and construction arm of the Shapoorji Pallonji Group has floated its initial public offering (IPO) targeting to raise C3125 billion (~$442 million) The price band for the IPO is slated at C775 (~$1110) (floor

price) to C780 ($1117) (cap price) The face value of each share is C1 (~$0014)

As reported by Mercom the company had received the approval for its IPO from the Securities and Exchange Board of India (SEBI)




Aug 13 2019

11

in July 2019 The global solar EPC solutions provider Sterling and Wilson Solar had filed its draft red herring prospectus for the IPO with SEBI on April 15 2019

The IPO closes on August 8 2019 and has an offer for sale that amounts to C2083 billion (~$294 million) by Shapoorji Pallonji and Company Private Limited Another offer for the sale of C1041 million (~$147 million) is by Khurshed Yazdi Daruvala the companyrsquos chairman

The book running lead managers to the issue are ICICI Securities Axis Capital Credit Suisse Securities (India) Deutsche Equities India IIFL Securities and SBI Capital Markets IndusInd Bank and YES Securities (India) The net offering from the proceeds will be used for complete repayment of loans that are due to the company within 90 days from the date that the equity shares are listed

A maximum of 15 of the offer is available to be allocated to non-institutional bidders and a maximum of 10 of the offer is available to be allocated to retail individual bidders These allocations must adhere to SEBI ICDR (Securities and Exchange Board of India Issue of Capital and Disclosure Requirements) The offer has been made in terms of Rule 19 (2) (b) of the Securities Contracts (Regulation) Rules 1957

According to Mercomrsquos India Solar Market Leaderboard Sterling and Wilson emerged as the top EPC company cumulatively as well as in 2018 As of March 31 2019 the company had 205 commissioned and contracted solar power projects with an aggregate capacity of 68 GW

Earlier Gensol Engineering Limited (Gensol) also filed a draft red herring prospectus for the launch of its IPO Aug 06

PROJECT NEWSKerala to Install 1 GW of Solar Projects Under Soura Program by 2022

The Kerala Government has launched a program called ldquoSourardquo to add 1000 MW of solar projects to the existing capacity of Kerala State Electricity Board Limited (KSEBL) by 2022 The projects will be implemented under the Urja State Kerala Mission and will be executed to fulfill the statersquos renewable purchase obligation (RPO)

Of the 1000 MW 500 MW will be implemented through a solar rooftop program In phase I 200 MW rooftop solar capacity has been planned the tender for which will be issued in August 2019

The Soura program involves 500 MW rooftop solar 200 MW of ground-mounted solar 100 MW of floating solar 150 MW of solar park and 50 MW of canal top solar projects to be installed by 2022

Of the 200 MW rooftop solar in phase I KSEBL will invite bids for 50 MW under engineering procurement and contracting (EPC or CAPEX) model and the remaining 150 MW under RESCO (Tariff based or OPEX) model

In the EPC model KSEBL will own the solar rooftop system and the EPC contractor will provide services such as the design supply

construction testing and commissioning of the solar systems and will hand it over to KSEBL after two years of operation and maintenance (OampM) In the EPC model the bidder quotes the project cost per kW The rooftops are leased for 25 years

Under the RESCO (renewable energy service company) model the developer will own the rooftop solar project and will sell the power to KSEBL at a rate discovered during the bidding process The scope of work for the bidder will be the design engineering manufacture quality assurance factory testing transportation handling storage and installation of the projects Commissioning and supply of power from the solar project and OampM for 25 years is also part of the bid

The bidding will be held for three categories of capacities ndash 2-10 kW 11-100 kW and above 100 kW

The project will be implemented under three business models In model one of the program KSEBL will use the rooftop of consumers to install the project for 25 years The entire cost of the project will be borne by KSEBLRead More Aug 09


TENDERS amp AUCTIONSAndhra Floats RESCO Tender for 15 MW of Rooftop Solar on Government Buildings

The New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) has tendered 15 MW of grid-connected rooftop solar photovoltaic (PV) projects to be set up atop

government buildings across the state The grid-connected rooftop solar projects will be developed under RESCO mode



Aug 13 2019

12

The bid-submission deadline is August 28 2019 NREDCAP will provide a subsidy equivalent to 20 of the benchmark cost for government institutions A bidder must quote different rates separately for the installation of rooftop solar systems with and without subsidy

NREDCAP has set C5 (~$0071)kWh as the upper tariff cap for this tender The project sizes will vary from 1 kW to 1000 kW at a single location A single bidder must bid for a minimum of 1 MW and can bid for a maximum of 5 MW The rooftop solar PV project size will range from 1-9 kW 10-49 kW 50-99 kW 100-499 kW and 500-1000 kW A bidder can choose to quote for all the categories

The scope of work includes the identification of buildings and leasing the rooftop for 25 years obtaining a no-objection certificate (NOC) from distribution company (DISCOM) for grid connectivity

design engineering manufacture supply storage civil work erection testing and commissioning of the grid-connected rooftop solar PV projects

Metering and grid connectivity of the rooftop solar PV systems will be the responsibility of the bidder The successful bidders will also be responsible for the operation and maintenance of the projects for 25 years after commissioning The project commissioning timeframe has been set at 18 months from the date of award of the contract

NREDCAP has been trying to promote rooftop solar projects to meet a portion of the increasing energy needs in Andhra Pradesh sustainably It has also issued an empanelment tender for rooftop solar installers in the state The tender covers rooftop solar projects with capacities ranging from 1 kW to 500 kWRead More Aug 13

Assam Announces Tender to Install 8 MW of Rooftop Solar for Residential Consumers

The Assam Energy Development Agency (AEDA) has issued a tender to set up 8 MW of rooftop solar photovoltaic (PV) projects with the net metering facility The rooftop solar projects will be developed under CAPEX mode All the projects will be set up for residential customers The bid-submission deadline is August 29 2019 The PV modules used in the installations have to be made in India

AEDA has reserved 7 MW of capacity for general bidders and 1 MW capacity for entrepreneurs having a registered office in Assam (open category)

The project size will range from 1 kW to 10 kW and greater than 10 kW to 100 kW For general bidders the minimum bid capacity per bidder is 500 kW and the maximum bid capacity is 1500 kW For entrepreneurs having a registered office in Assam the minimum bid capacity per bidder is 100 kW and maximum bid capacity is 250 kW

Developers under open category do not need to submit financial bids but they must match the lowest (L1) tariff quoted by any bidder for 7 MW of capacity Subsidy equivalent to 70 of the benchmark cost will be provided to the successful bidders

The scope of work includes obtaining lsquoNo Objection Certificate (NOC)rsquo from Assam Power Distribution Company Limited (APDCL) for grid connectivity entering into appropriate contract with the identified consumer (or beneficiary) design engineering manufacture supply storage civil work erection testing and commissioning of the grid-connected rooftop solar PV projects

Successful bidders will be responsible for the operation and maintenance of the grid-connected rooftop solar PV projects for five years after the commissioning of the rooftop solar PV projects

AEDA has set 45 days as the project completion timeframe for rooftop solar PV project of size 1kW to 10 kW up to a cumulative capacity of 50 kW Moreover it has set 60 days for rooftop projects of capacity 1 kW to 10 kW up to a cumulative capacity of 50-100 kW and 75 days for rooftop solar PV projects of size beyond 100 kW AEDA has fixed 60 days as project commissioning timeframe for rooftop solar PV project of capacity gt10 kW to 100 kW

AEDA has specified that the solar PV panels should have a warranty for 25 years from the date of commissioningRead More Aug 13

Andhra Pradesh Issues Empanelment Tender for CAPEX Rooftop Solar Projects

The New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) has issued an empanelment tender for rooftop solar installers in the state The tender covers rooftop solar projects with capacities ranging from 1 kW to 500 kW The empanelment will be valid up to June 31 2021

The projects will be developed at various locations in Andhra Pradesh under CAPEX mode The bid-submission deadline is August 28 2019

The rooftop solar PV projects will be developed under three categories

Category-I ndash Size ranging from 1 kW to 10 kW

Category-II ndash Size ranging from 11 kW to 100 kW

Category-III ndash Size ranging from 101 kW to 500 kW

Ten bidders will be selected under each category after matching the lowest (L1) price For projects under Category-I the project




Aug 13 2019

13

commissioning timeframe will be 45 days from date of award of contract Bidders executing rooftop solar PV projects under Category-II will get 60 days from the award of the contract to complete the project and bidders who will be awarded contracts to set up rooftop solar PV projects under Category-III will get 90 days to complete the project

The empaneled firms develop the projects on a turnkey basis and will be responsible for the supply installation commissioning maintenance and operation of rooftop solar PV systems

NREDCAP has also specified that the solar PV panel will carry a warranty of at least 25 years The rooftop solar PV systems installed and commissioned will be under warranty against any manufacturing or usage defect for a minimum period of five years from the date of commissioning

The mechanical structures electrical works including power conditioners inverters powerpoint tracker units digital meters and the overall workmanship of the rooftop solar PV systems must be warranted against any manufacturing or installation defects for a minimum of five years Previously NREDCAP had tendered 15 MW of grid-connected rooftop solar PV projects in June 2018

In the same year it also floated an empanelment tender for 35 MW of rooftop solar projects It covered rooftop solar projects with capacities ranging from 1 kW to 500 kW The empaneled developers were to develop 15 MW of rooftop solar PV projects atop government buildings and 20 MW of rooftop solar PV projects atop residential social and institutional buildings in Andhra Pradesh Aug 12

NTPC Announces Tender for 1200 MW of Solar Projects to be Set Up Across India

The National Thermal Power Corporation (NTPC) has issued a tender to set up 1200 MW of interstate transmission system (ISTS) connected solar projects anywhere in India

The tender documents will be available from August 14 2019

The bid submission deadline is September 2 2019 and the technical bids will be opened on the same date

The bids must be accompanied by an earnest money deposit (EMD) of C400000 (~$5625)MW The qualifying requirements for bidders will be specified in the RfS documents that will be uploaded later

The NTPC a Navratna company has issued numerous tenders in the recent past though some of them have not received an anticipated response from bidders

Recently the NTPC had extended the bid submission deadline for 1000 MW of solar projects under the Central Public Sector

Undertaking Program Phase II Tranche-1 The new bid submission deadline is August 16 2019 Earlier the bid submission was extended to July 25 2019 from July 15 2019

The company had to extend the bid submission deadline for its 12 GW solar tender in western India after an upper tariff cap set by the NTPC failed to attract bidders

Moreover the NTPC has retendered and invited fresh bids for a 20 MW floating solar project The project is to be established at the reservoir of NTPC Auraiya Gas Power Project at Dibiyabpur in Uttar Pradesh

A few weeks ago the NTPC also issued a tender inviting applications from eligible vendors for the enlistment of engineering procurement and construction (EPC) bidders to develop floating or ground-mounted solar PV projects between 10-50 MW capacity Aug 12

Another SECI Solar Tender Undersubscribed 12 GW Capacity Receives Bids for Only 600 MW

The Solar Energy Corporation of India (SECI)rsquos tender for setting up 12 GW of solar photovoltaic (SPV) projects under interstate transmission system V (ISTS-V) has been undersubscribed by 50 received bids for only 600 MW of solar capacity

The tender was issued on June 28 2019 with a bid submission deadline of July 31 2019 The bid submission deadline was extended on August 1 2019 to August 9 2019 The upper tariff ceiling was set at C265 (~$0038)kWh for this tender The projects were tendered under a global competitive bidding process and were slated to be developed anywhere in India

Only two entities submitted bids totaling 600 MW SoftBank Energy has bagged two projects for a total of 450 MW GRT




Aug 13 2019

14

Jewelers has bagged one project of 150 MW capacity

As the tender has been undersubscribed only 80 of the bid capacity would be awarded in line with the ministry norms Therefore a maximum capacity of 480 MW can only be awarded out of the 12 GW tender

Speaking to Mercom on the undersubscription of this tender one of the project developers commented ldquoMost large players are struggling with cash flows and the Andhra Pradesh fiasco has also hurt the developer sentiment Most importantly the developers are not happy with the tariff caps set by either the NTPC or SECIrdquo

In recent months a lot of SECI tenders have been undersubscribed indicating a lack of interest by the developers due to various factors

Recently SECIrsquos tender for setting up 2 GW grid-connected solar projects (Tranche-I) under the second phase of the Central Public Sector Undertaking program was also left undersubscribed by 932 MW A total of five government entities submitted bids totaling 1068 MW capacity

Moreover another tender floated by SECI to set up 12 GW of ISTS-connected solar-wind hybrid power projects (tranche-II) was undersubscribed by 300 MW SECI had floated the tender for setting up 12 GW of solar-wind hybrid power projects in February 2018 but the detailed request for selection (RfS) was made available for download only from March 8 2019

Before this its tender for 1200 MW of ISTS-connected wind power projects on a pan-India basis under tranche-VII was also undersubscribed by 50 due to tariff caps and land availability concerns Aug 09

Was Setting Upper Tariff Cap a Deterrent for NTPCrsquos 12 GW Solar Tender

Tariff caps are often not acceptable to developers planning on executing solar projects in India The National Thermal Power Corporation Limited (NTPC) has had to extend again the bid-submission deadline for 12 GW of the inter-state transmission system (ISTS)-connected solar projects in western India

The new bid-submission deadline is August 19 2019

These solar PV projects are to be developed near NTPCrsquos switchyards in western India When contacted an NTPC official said ldquoYes we have extended the bid-submission deadline once againrdquo The official however did not give any reason for the extension

It is the third time that this tender has been extended by NTPC which had tendered the projects in November 2018 with an initial bid submission deadline set for December 19 2018 Later the deadline was extended to January 3 2019

In June 2019 NTPC again extended the bid submission deadline to July 1 2019 Towards the end of June 2019 it introduced an upper tariff ceiling for this tender through an amendment An upper tariff ceiling of C278 (~$0039)kWh was set for this tender

When contacted a top official at one of the renewable energy conglomerates said ldquoThe upper tariff ceiling is a deterrentrdquo Before this tender NTPC seldom fixed upper tariff ceilings as is usually seen in Solar Energy Corporation of India (SECI) tenders As a result NTPC tenders managed to generate good participation from the developers who quoted competitive bids

However with the upper tariff ceiling set for this tender things appear to be changing as far as garnering interest from the developers is concerned Mercom recently reported that NTPC again extended the bid submission deadline for 1000 MW of solar projects under the Central Public Sector Undertaking (CPSU) Program Phase II Tranche-1 The new date for submission of the bid is August 16 2019

In June 2019 Mercom had reported that reverse auctions have driven down tariffs and developers are fighting for every penny to make a decent return on their investment In this harsh environment tariff caps have added a new challenge for them A tariff cap is set by the auctioning agency and acts as an upper limit when bidding for a project So a developer can only bid lower than the set tariff which becomes a challenge if the tariff cap is deemed too high for a project developer to make a healthy return on investment Aug 09

Gujarat Transmission Corporation Invites EPC Contractors for 250 MW Solar Project

The Gujarat State Electricity Corporation Limited (GSECL) has floated a tender for 250 MW of solar power projects ranging between 20 MW to 60 MW at substations of Gujarat Energy Transmission Corporation Limited (GETCO) The tender is for the design engineering supply and procurement construction

operation and maintenance of the 250 MW SPV projects

The bid submission deadline is August 31 2019 and the technical bids will be opened on the same date The date of the financial bid opening will be announced later The commissioning dateline is six




Aug 13 2019

15

months

The Earnest Money Deposit (EMD) in the form of bank guarantee is C400000 (~$5654)MW and is valid for 120 days from the date of opening the technical bids The security deposit and the performance bank guarantee will be 10 of the EPC contract value to be submitted within seven days of the acceptance of the letter of intent (LoI) For the operation and maintenance bank guarantee 5 of the EPC contract value must be submitted upon the completion and acceptance of the performance guarantee

Technical prerequisites of the bid entail that the bidder must have experience in design supply installation commissioning and operation of a cumulative installed capacity equivalent to 66 of the total bid capacity

The bidder will have to quote the net electrical energy generation guarantee (NEEGG) for ten years at the metering point

In the Gujarat statersquos budget announced for the current financial year 2019-2020 a recalibrated target of 30 GW of renewable capacity by 2022 has been announced This target includes both solar and wind and out of this targeted capacity 20 GW will be specifically for the state while 10 GW will be for projects tendered by the national implementing agencies

According to Mercomrsquos India Solar Project Tracker Gujarat has an installed solar capacity of ~21 GW with nearly ~11 GW of solar projects under various stages of development

Recently the Gujarat Urja Vikas Nigam Limited had floated two solar tenders for a total capacity of 950 MW Both the tenders were for projects to be developed in the statersquos solar parks Aug 07

POLICYKarnataka Sets New Generic Tariff for Solar Projects

The Karnataka Electricity Regulatory Commission (KERC) has issued an order setting the generic tariff for solar projects in the state for the period starting April 1 2019 and ending March 31 2020

The commission has determined C34 million (~$480500)MW as the capital cost of large-scale solar projects in Karnataka This is less than the proposed capital cost in June of C3733 million (~$527600)MW for solar PV projects to be developed in the state The capital cost for large-scale solar projects was set at C35 million (~$495000)MW in the previous year

For grid-connected MW-scale solar projects of capacity less than 5 MW the state has set a generic tariff of C308 (~$00435)kWh This is C003 (~$00004)kWh more than the generic tariff of C305 (~$00431)kWh set for solar PV projects of capacity up to 5 MW in 2018

For grid-connected rooftop solar PV projects of capacity ranging from 1 kW to 2000 kW the generic tariff with subsidy has been set at C232 (~$00328)kWh and the generic tariff without subsidy is C307 (~$00434)kWh The capital cost for such projects is determined to be C32800 (~$464)kWREAD MORE Aug 07

Disclaimer When quoting please cite ldquoMercom Capital Grouprdquo Although information in this report has been obtained from sources that we believe to be reliable Mercom Capital Group does not guarantee its accuracy and is not liable for its use Mercom reports may not be reprinted reproduced or republished whole or in part without express permission from Mercom Capital Group Copyright copy 2019 Mercom Capital Group llc All rights reserved



Aug 13 2019

16CLICK HERE TO GET YOUR COPY TODAY



Aug 13 2019

2

Here is a quick recap of the major tenders that were announced in July 2019

Major Tenders

Adani Electricity Mumbai Limited (AEML) has issued a tender for 350 MW of grid-connected wind-solar hybrid power projects to meet its renewable purchase obligation (RPO) target An additional 350 MW capacity has been tendered under the greenshoe option of the global competitive bidding process A maximum bid of 700 MW capacity can be offered by an interested bidder including the 350 MW offered under the greenshoe option The hybrid projects can be set up anywhere in India on a build own operate (BOO) basis

Oil India Limited (OIL) issued a tender to develop 100 MW of solar project capacity anywhere in India under the second phase of the central governmentrsquos CPSU program Oil major Indian Oil Corporation Limited (IOCL) also floated a tender for 1050 kW of solar PV systems at Guwahati Refinery

Bharat Heavy Electricals Limited (BHEL) issued a tender for the supply of balance of system (BoS) items for the installation and commissioning of two grid-connected solar PV projects with a combined capacity of 69 MW The two projects are a 39 MW solar project at Yellandu and a 30 MW solar project at Manuguru Both the projects are located in Bhadadri Kothagudem district of Telangana

Retendered

The Haryana Power Purchase Company (HPCC) on behalf of the Uttar Haryana Bijli Vitran Nigam (UHBVN) retendered 300 MW of solar projects to be developed in the state which it had initially floated in January 2019 The tender was set with an upper tariff ceiling of C3 (~$0043)kWh for the entire 25-year tenure of the power purchase agreement (PPA) Due to the lack of desired response from the bidders the HPCC has retendered the capacity Aug 12

INDUSTRY NEWSAPTEL Stalls Andhra DISCOMrsquos Move to Cancel Axis Energyrsquos Wind PPA

Andhra Pradeshrsquos decision to withdraw 21 wind power purchase agreements (PPAs) including that of Axis Wind Farms has been stalled by the Appellate Tribunal for Electricity (APTEL)

Andhra Pradesh South Power Distribution Company Limited (APSPDCL) had submitted to the Andhra Pradesh Electricity Regulatory Commission (APERC) that 21 wind PPAs for wind power projects worth 7769 MW should be canceled

A portion of the petition said that given the state DISCOMsrsquo consequent inability to bear the additional financial burden involved in purchasing power from 21 wind developers it has decided to withdraw the PPAs entered with various wind power projects including the clients of Suzlon and Axis Energy Ventures It argued that since the PPAs are not yet approved it is not enforceable and the APSPDCL is at liberty to withdraw the PPAs Stating this the state DISCOMs requested to withdraw the 21 PPAs entered with various wind power projects The commission is slated to hear the matter on August 17 20119

Meanwhile Axis has requested APTEL to issue an ad-interim stay on further proceedings The petitioner further stated that it has already invested huge amounts to proceed with the projects The withdrawal would cause ldquoirreparable injury and loss apart from great financial burden since bank guarantees of substantial amounts have already been given to nodal agenciesrdquo argued Axis (continued on page 3)


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Market Intelligence Report - Mercom India

Documents

Transcript of Market Intelligence Report - Mercom India