INDIA’S ELECTRICITY REQUIREMENT TO GO UP BY 37% IN THE COMING YEARS

As per the 19th electric power supply report by the Central Electricity Authority (CEA), the country will need 1,566 BUs of energy by 2022 which means that there will be an increase of 37%. An annual growth of 2.6% was recorded in the FY 2017. As per the 18th EPS report, the electricity generation for FY 2017 was supposed to be 1,355 BUs whereas it was close to 1143 BUs. The expected peak demand in the FY 2022 is supposed to be 226 GW.

 

The article reporting the same can be accessed here.

SOLAR CAPACITY SET TO CROSS 20 GW IN THE NEXT 15 MONTHS, SAYS PIYUSH GOYAL:

As per Mr Piyush Goyal, India’s installed solar capacity is going to cross the 20 GW mark from the current 19 GW capacity by 2020. The reason for this estimated increase has been attributed to the fact that Make in India is no more in its nascent stage. Now, India can support majority of its financial and technological needs for increasing its renewable energy capacity. The proof of the same is the drastic reduction in the cost of solar power to an extent that it is comparable to the cost of thermal power. India’s capacity increased four times since the past 3 years when it reached the 10 GW mark in March this year. In May 2014, the capacity was 2,650 MW. The same has been covered in our previous blog.

The Deccan Chronicle article can be accessed here.

REC Trade Results January 2017

This month’s trading saw a remarkable turnaround with respect to the overall Non solar REC clearance. The clearance ration stood at a shooting high of 10.8% for non solar. The demand for solar REC saw marginal improvement in respect to the month of December. The total transaction value stood at 244.7Crores in comparison to 74.4 Crores last month.

Analysis of Trading:

Non Solar – The clearing ratio stood at 13.5% and 5.7% in both IEX and PXIL, with a drastic increase of 260% in the no. of REC’s traded as compared to last month.

 

 

Solar – Clearing ratio stood at 1.2% and 0.7% in IEX and PXIL respectively, with a significant increase of 49% in total demand of Solar RECs as compared to December.

 

Solar Power Tariff hits new low

A recent article in the Business Standard highlighted the solar power tariff which has hit a new low.  In a Solar Energy Corporation of India’s auction of rooftop solar power projects, Gurgaon-based Amplus Energy Solutions quoted a tariff of Rs. 3 /unit defeating the previous low of Rs 4 /unit for a solar park in Rajasthan by a quarter. The rooftop projects will be installed on buildings of NGOs, educational institutes, hospitals, trusts and not for profit companies in these states.

The lowest tariff quote for these projects is same as average tariff offered by state-run generation utility NTPC for power from its coal-fired plants and nearly half of tariffs charged by some private power producers.

Till now, a solar project at Badhla in Rajasthan held the record for the lowest tariff at Rs 4 per unit in the solar park category. The lowest tariff before that was Rs 4.34 per unit, quoted by Fortum India in January.

Rajasthan Electricity Regulatory Commission determines CSS for FY 2016-17

Rajasthan Electricity Regulatory Commission (RERC) has calculated the Cross subsidy surcharge to be applicable during FY 16-17. The new CSS will be applicable only for the state of Rajasthan effective till 31st March, 2017.   The new CSS applicable will have significant impact on the open access power market.

The table below depicts the CSS charges defined for year FY 2016-17:

 

The graph below depicts the % change in the CSS over the last four years:

 

The regulation can be accessed here.

REC Trade result December 2016

This month trading saw good results with respect to the Non solar REC clearance overall. The demand for solar REC saw marginal improvement in respect to the last month. The total transaction value stood at 74.4 Crores in comparison to 53.6 Crores last month.

This month saw fall in the total issuance where the demand decreased by 4.60Lakhs in comparison to November. Though there had been significant increase in the total REC issuance due to the impact of CERC’s 4th amendment to RECs regulations.

Analysis of Trading:

Non Solar – The clearing ratio stood at 3.19% and 2.81% in both IEX and PXIL, with a significant increase of 61% in the no. of REC’s traded as compared to last month

Solar – Clearing ratio stood at 0.85% and 0.53% in IEX and PXIL respectively, with a dip of 23% in total demand of Solar RECs as compared to November.

 

 

 

REC Trade Result October 2016

Analysis of Trading:

 

Non Solar – The clearing ratio stood at 1.9% and 2.06% in both IEX and PXIL, with a significant increase of 46% in the no. of REC’s traded as compared to last month

Solar – Clearing ratio stood at 0.86 % and 1.16% in IEX and PXIL respectively, with an increase of 13% in total demand of Solar RECs as compared to last month.

This month trading saw significant improvement in the demand for both Solar and Non-Solar RECs as compared to last month. The total transaction value stood at 50.66 Crores in comparison to 37.5 Crores last month.

In contradictory to the total demand, this month saw a dip in the total REC issuance, where the demand increased by 1 lakh in comparison to September. This could be attributed due to the impact of CERC’s 4th amendment to RECs regulations.

 

India generated 33029.39 MU Wind Power & 7447.92 MU Solar Power Generated during Year 2015-16

The Minister of State for Power, Coal, New & Renewable Energy and Mines Shri Piyush Goyal informed that the generation of electricity from wind and solar sources in the country stood at 33,029.39 million units and 7,447.92 million units, respectively, during 2015-16.

Quoting the figures received from the Central Electricity Authority (CEA), the minister said during the last two years, i.e., 2014-15 and 2015-16, the country added a total of 5,735 MW of wind power capacity and 4,131 MW of solar power capacity.

It was also told that a capacity addition target of 4,000 MW and 12,000 MW has been proposed for generation of electricity from wind and solar energy, respectively, during 2016-17 and a total of 315 MW have been installed under Solar Roof top Scheme. Power generated from these projects is being used for both domestic and captive use, the minister informed.

Goyal stated that tenders for 20,766 MW solar power projects have been issued. He also said that the wind power projects are mainly developed by private sector under various modes, including PPA, REC, captive use, third party sale etc, adding that the centre has not undertaken construction of wind energy project.

  • The ministry is implementing several schemes to promote generation of solar and wind energy. These include: Development of solar parks and ultra mega solar power projects
  • Development of solar PV power plants on canal banks / canal tops
  • Setting up of 300 MW grid connected solar PV power projects by defense establishments under ministry of defense and Para military forces with viability gap funding (VGF) under Batch-IV of Phase-II/III of Jawaharlal Nehru National Solar Mission (JNNSM)
  • Setting up 1,000 MW grid-connected solar PV power projects by CPSUs with VGF under Batch-V of Phase-II of JNNSM
  • Setting up of 15,000 MW grid-connected solar PV power projects under Batch II of Phase II of National Solar Mission (by NTPC/NVVN)
  • Setting up of 2000 MW grid-connected solar power projects with VGF through Solar Energy Corporation of India (SECI) and generation based incentive scheme for promotion of wind power.

The press release can be accessed here.

 

 

 

HPERC Determines Generalized Levelised Tariff for Solar PV for FY 2016-17

HPERC recently determined its generalized levelized tariff for Solar PV for FY 2016-17. The Commission came out; vide its proposal for categorization of solar PV projects as well as for fixing the norms for technological specific parameters, other terms and conditions and determination of generic levelized tariffs for solar PV projects up to 5.00 MW capacities.

The Commission has fixed the normative capital costs inclusive of all components as well as taxes etc. for solar PV projects up to 5.00 MW capacity by increasing the CERC benchmark capital cost of Rs. 530.02 Lakhs per MW by 7.50% up to 1 MW and 6% above 1 MW and up to 5.00 MW capacity plants for 2016-17, as given below:-

 

The Commission has thereby determined the generic levelized tariffs and the associated terms and conditions for Solar PV power plant in respect of  FY 2016-17 as given under:-

 

These tariffs will be applicable for the solar PV projects where PPAs are signed on or before 31st March 2017, after approval of the Commission and the projects are commissioned on or before 31st March, 2018.

 

The regulation can be accessed  here.

MNRE scheme for Development of Solar Zones in the country commencing from 2016-17 and onwards

MNRE has recently sanctioned the scheme for setting up of 10 solar zones. Each solar zone will be having around 10,000 hectares of government owned or privately owned wasteland, uncultivable land or fallow land in one or more than one patches. An estimated amount of Rs. 4400 crore has been granted as a Central Financial Assistance for this project.

Following are some of the highlights of the scheme:

  • The objective of the scheme is to promoted developers and investors and thereby helping the country in achieving the target of 100000MW by 2022.
  • This scheme will in return help the states in meeting its mandate RPO, and also provide employment opportunities to the location.
  • All the states and Union Territories will be eligible for benefiting under this scheme.
  • The solar zones will be developed in collaboration with the State Government and their agencies. SECI will act as MNRE’s agency for handling the scheme.
  • The state government shall identify an area having daily average insulation of over 4kWh per meter square and having around 10000 hectares of government owned or privately owned wasteland.
  • The solar zones will be set up in a span of 5 years commencing from 2015-16 and the solar projects may come in as per demand and interest shown by the developers.
  • Out of the total solar potential in the solar zone, 25% area will be set apart for deployment of manufactures of ingots, water, solar cell and modules to promote make in India.
  • 25% area for small and medium enterprises, farmers and unemployed youth and 50% for solar project developers.

The scheme can be accessed here.

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