Daily News Wrap-Up: APTEL Rejects Plea for Interim Relief in Tariff Dispute

Tamil Nadu issues wind repowering and refurbishment policy

September 16, 2024

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The Appellate Tribunal for Electricity (APTEL) has rejected ReNew Naveen Urja’s petition for interim relief against the Central Electricity Regulatory Commission’s (CERC) order adopting the tariff for its wind project. ReNew Naveen Urja had requested a stay on the CERC order, citing procedural irregularities in Solar Energy Corporation of India’s (SECI) bidding process. However, APTEL dismissed the petition because ReNew Naveen Urja failed to demonstrate irreparable injury, and the balance of convenience did not favor halting SECI’s actions, including the potential invocation of bank guarantees. ReNew Naveen Urja participated in a competitive bidding process initiated by SECI to procure 1,200 MW of wind power. The appellant was awarded a contract to develop a 297.5 MW wind power project (later increased to 300 MW).

The Tamil Nadu government has announced wind power projects repowering regulations aimed to replace old wind turbines and optimize wind energy potential. The Tamil Nadu Repowering, Refurbishment & Life Extension Policy for Wind Power Projects, 2024, seeks to increase the state’s overall installed wind power capacity and generation and provide a supportive framework for Wind Energy Generators (WEG). The policy will be valid until March 31, 2030, or until a new repowering policy is announced. These are projects where WEGs replace old wind turbines with newer ones or undertake intercropping in their wind park/cluster area. A repowering project is classified as a Standalone Project and an Aggregation Project.

Solar Energy Corporation of India (SECI) has invited bids to select solar power developers to set up 30 MW grid-connected rooftop solar power systems in Andaman and Nicobar Islands under the renewable energy service company (RESCO) mode. The last date for the submission of bids is October 21, 2024. Bids will be opened on October 24. The scope of work includes but is not limited to, obtaining a No Objection Certificate from the distribution company for grid connectivity and the design, engineering, supply, storage, civil work, installation, testing, and commissioning of the rooftop solar systems. The operation and maintenance of the solar systems during the duration of the Power Purchase Agreement will be the responsibility of the successful bidders. Bidders must pay ₹6,000 (~$71.5) as a bid processing fee and ₹990,000 (~$11797)/MW as earnest money deposit.

Punjab Energy Development Authority has invited applications for the installation of 20,000 surface and submersible solar pumps under the PM-KUSUM program in 37 blocks. The last date to submit applications is September 30, 2024. Of the 20,000 solar pumps, 2,000 are reserved for farmers in the Scheduled Caste category, and 3,000 pumps are for common land of gram panchayats. The general category will get a 60% subsidy, and Scheduled Caste farmers will get an 80% subsidy. Farmers of other blocks (dark zones) must install micro (drip/sprinkler) irrigation systems on existing borewells. Panchayats/ farmers who lift water from village ponds, farm ponds, or canal water diggies with diesel pumps in the dark zones are also eligible.

Power Grid Corporation of India has been chosen by PFC Consulting to develop an interstate transmission system to expand the transformation capacity of the Jam Khambhaliya Power Station in Gujarat. This enhanced transmission infrastructure facilitates the evacuation of up to 3 GW of renewable energy, doubling the station’s capacity of 1.5 GW and allowing Gujarat Energy Transmission Corporation to draw power from the power station. This project will be executed on a build, own, operate, and transfer basis. The transmission project includes several critical components. Chief among them are the creation of new 220 kV Bus Sections II and III at the Jam Khambhaliya Power Station and the installation of three additional 500 MVA, 400/220 kV transformers (5th, 6th, and 7th) dedicated to renewable energy injection.

Bharat Petroleum Corporation (BPCL) has announced joint ventures (JV) with Sembcorp Green Hydrogen India and Bengaluru-based GPS Renewables to develop green hydrogen and compressed biogas (CBG) projects, respectively. With Sembcorp, BPCL plans to develop, construct, and operate renewable energy projects and green hydrogen and its derivatives projects across India. It also plans to sell renewable energy and green hydrogen. As part of the JV with GPS Renewables, BPCL plans to construct, operate, and maintain CBG plants across India, including selling CBG and its derivatives. BPCL plans to meet its CBG blending obligation mandate through this venture. BPCL will hold 50% shareholding in both the JVs. Sembcorp Green Hydrogen and GPS Renewables will hold the remaining 50% in their respective JVs.

Ahmedabad-based solar turnkey solutions provider Solarium Green Energy has submitted its Draft Red Herring Prospectus with BSE SME (Bombay Stock Exchange Small and Medium Enterprises) in preparation for an Initial Public Offering (IPO), which will involve issuing up to 5.5 million equity shares. The company plans to use the IPO proceeds to fulfill working capital needs and address general corporate expenses. In addition to its turnkey solutions covering design, engineering, procurement, testing, installation, commissioning, and transmission systems, Solarium Green Energy also provides operation and maintenance services.

Japan-headquartered Sumitomo Corporation has entered India’s corporate Power Purchase Agreement market through a joint venture with AMPIN Energy Transition. The partnership has led to the establishment of AMPIN C&I Power, a new entity aimed at developing renewable energy projects and supplying power generated from renewable sources such as solar and wind to corporate clients in India. The company aims to supply 1 GW of renewable energy to the industrial sector in the coming years. Sumitomo will hold 49% in the venture and AMPIN 51%. With a total project cost of approximately ¥100 billion (~$710.8 million), this marks Sumitomo’s first venture into India’s corporate PPA sector, with significant plans for expansion.

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