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Inox Wind to Raise ₹12.5 Billion Through Rights Issues of Shares

Germany Awards 255 MW Solar Projects on Buildings and Noise Barriers


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					</table><p>The U.S. Department of the Interior (<a href="https://www.doi.gov/" target="_blank" rel="noopener">DOI</a>) has announced it is ending the preferential treatment of ‘unreliable’ and subsidy-reliant wind and solar energy.</p>
<p>All DOI-related decisions and actions regarding wind and solar energy facilities will be subjected to a new review process by the Office of the Executive Secretariat and Regulatory Affairs. Subsidies for such facilities will also be stopped.</p>
<p>The activities to be reviewed will include leases, rights-of-way, construction and operation plans, grants, consultations, and biological opinions.</p>
<p>The announcement follows President Donald Trump signing Executive Order 14315, titled ‘Ending Market Distorting Subsidies for Unreliable, Foreign-Controlled Energy Sources,’ and the <a href="https://www.mercomindia.com/house-passes-senates-version-of-budget-bill-without-changes" target="_blank" rel="noopener">passage</a> of the One Big Beautiful Bill Act (Budget Reconciliation Bill, 2025).</p>
<p>The DOI will address the provisions in the Budget Reconciliation Bill to eliminate longstanding right-of-way and capacity fee discounts for existing and future wind and solar projects.</p>
<p>It stated that this move aims to help ‘level the playing field’ for dispatchable, cost-effective, and secure energy sources, such as clean coal and domestic natural gas.</p>
<p>The American Clean Power Association responded to the announcement, stating that the directive adds three new layers of unnecessary process and unprecedented political review to the construction of domestic energy projects. “The recently released memo from the Interior Department is a bewildering departure from the Administration’s promise to bring down energy prices and make America competitive in the race against China for AI and data centers,” it said.</p>
<p>Trump recently <a href="https://www.mercomindia.com/trump-orders-treasury-to-restrict-wind-and-solar-energy-tax-credits" target="_blank" rel="noopener">signed</a> the executive order directing the Secretary of the Treasury to terminate the clean electricity production and investment tax credits for wind and solar facilities and implement the enhanced foreign entity of concern restrictions identified in the Budget Reconciliation Bill.</p>
<p>In another executive order, Trump allowed regulatory relief for two years from July 2027 for coal-fired power plants from compliance with ‘unattainable’ emissions controls.</p>



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					</table><p>Germany’s Federal Network Agency (<a href="https://www.bundesnetzagentur.de/DE/Home/home_node.html" target="_blank" rel="noopener">Bundesnetzagentur</a>) has awarded 255 MW of solar projects on buildings and noise barriers in its latest tender round.</p>
<p>Out of the 127 bids received for a total capacity of 274 MW in response to the tendered capacity of 283 MW, the agency awarded contracts to 118 bids with a combined capacity of 255 MW.</p>
<p>The awarded tariffs ranged from €0.069 (~$0.0745)/kWh to €0.1038 (~$0.1121)/kWh. The volume-weighted average award value came in at €0.0922 (~$0.0996)/kWh, which is marginally higher than the average of €0.091 (~$0.0983)/kWh in the previous tender round. The ceiling price for this round was €0.104 (~$0.1123)/kWh, marking a notable increase compared to previous limits.</p>
<p>Klaus Müller, President at Bundesnetzagentur, stated that despite declining bid volumes, the legally required amount was almost reached. “The regional distribution of surcharges has been balanced, which reflects an encouraging nationwide participation. This outcome signifies a steady and welcome expansion of renewable energy development across Germany.&#8221;</p>
<p>The regional distribution of awarded projects was broadly balanced across Germany. North Rhine-Westphalia secured the highest number of awards, with 25 winning bids totaling 51 MW in capacity. Brandenburg followed with 15 awards for 47 MW, while Lower Saxony received 16 awards totaling 33 MW. Hesse was also among the leading regions, with 13 awards totaling 32 MW.</p>
<p>The auction permitted bids for capacities ranging from 1 MW to 20 MW. In total, 79 of the awards went to projects with a capacity of up to 2 MW. This trend is consistent with patterns observed in earlier tender rounds, indicating continued interest from small- to mid-sized project developers. The largest single project awarded in this round had a capacity of 20 MW.</p>
<p>Bundesnetzagentur stated that the results reflected stable market participation, with price levels indicating moderate upward pressure on project costs.</p>
<p>In an auction held in February this year, the agency <a href="https://www.mercomindia.com/germany-awards-2-15-gw-of-projects-in-solar-auction" target="_blank" rel="noopener">allocated</a> 2.15 GW of solar projects on structures other than buildings or noise barriers, categorized as “first-segment solar installations.”</p>
<p>Germany <a href="https://www.mercomindia.com/germany-adds-16-2-gw-of-solar-capacity-in-2024" target="_blank" rel="noopener">added</a> a record 16,179 MW of solar capacity in 2024, a 7% year-over-year growth.</p>



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					</table><p>The Ministry of Power (<a href="https://powermin.gov.in/" target="_blank" rel="noopener">MoP</a>) has launched a new program, Assistance in Deploying Energy-Efficient Technologies in Industries &amp; Establishments (ADEETIE), aimed at enhancing energy efficiency in micro, small, and medium enterprises (MSMEs).</p>
<p>The Bureau of Energy Efficiency (<a href="https://beeindia.gov.in/en" target="_blank" rel="noopener">BEE</a>) is the implementing agency for this program, which has an outlay of ₹10 billion (~$116.28 million). It will be implemented over a three-year period from the financial years 2025-26 to 2027-28.</p>
<p>Under ADEETIE, financial support will be extended in the form of interest subvention, with 5% for micro and small enterprises and 3% for medium enterprises.</p>
<p>Out of the total budget, ₹8.75 billion (~$101.74 million) has been earmarked for interest subvention, ₹500 million (~$5.81 million) for conducting Investment Grade Energy Audits (IGEA), and ₹750 million (~$8.72 million) for implementation and handholding support.</p>
<p>The government expects to mobilize investments worth ₹90 billion (~$1.046 billion) through the program, including ₹67.5 billion (~$784.88 million) in prospective lending to MSMEs.</p>
<p>The program will provide end-to-end technical support, including investment-grade energy audits, preparation of detailed project reports, technology identification, and post-implementation monitoring and verification.</p>
<p>It will be implemented in two phases, starting with 60 industrial clusters in the first phase and extending to 100 more in the second. Fourteen energy-intensive sectors &#8212; brass, bricks, ceramics, chemicals, fisheries, food processing, forging, foundries, glass, leather, paper, pharmaceuticals, steel re-rolling, and textiles – are included under the program.</p>
<p>In 2023, the Ministry of Power <a href="https://www.mercomindia.com/government-launches-efficiency-technology-demonstration" target="_blank" rel="noopener">established</a> a new platform called Advanced Industrial Technology Demonstration Center for industry stakeholders to demonstrate and exchange knowledge on new energy-efficient technologies in the country.</p>
<p>While India has made significant strides in renewable energy, Indian businesses have been slow in adopting energy efficiency solutions in their operations. In an interview, Manya Ranjan, Co-Founder, Two Point O Capital, <a href="https://www.mercomindia.com/awareness-of-energy-efficiency-benefits-among-ci-businesses-lacking-interview">attributed</a> this to a lack of awareness, fragmented ecosystem, and absence of flexible financing options.</p>


Power Ministry Launches Program to Boost Energy Efficiency in MSME Sector


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					</table><p>The Chhattisgarh State Electricity Regulatory Commission (<a href="https://cserc.gov.in/" target="_blank" rel="noopener">CSERC</a>) has issued its final tariff order for the financial year (FY) 2026, introducing an average hike of 1.89% across consumer categories. The revised rates are effective until March 31, 2026, or until the next order is issued.</p>
<p>The decision was primarily driven by the need to address a cumulative revenue gap faced by the state&#8217;s power utilities, particularly the Chhattisgarh State Power Distribution Company (CSPDCL).</p>
<p>The Commission approved a cumulative revenue gap of ₹5.23 billion (~$63.05 million), resulting in an average tariff increase of ₹0.14 (~$0.0017)/kWh, or approximately 1.89%, without any change in fixed or demand charges. The revised average cost of supply stands at ₹7.02 (~$0.085)/kWh.</p>
<p><strong>Consumer Tariffs</strong></p>
<p>For low-voltage (LV) domestic consumers (LV-1), energy charges range from ₹4.1 (~$0.049)/kWh to ₹8.3 (~$0.10)/kWh across consumption slabs, with fixed charges ranging from ₹20 (~$0.24) to ₹4 (~$0.48)/kW per month.</p>
<p>Non-domestic LV-2 consumers will be charged between ₹6.3 (~$0.076)/kWh and ₹8.7 (~$0.105)/kWh, based on load and phase.</p>
<p>For electric vehicle (EV) charging stations, a new category, LV-2.3, has been introduced with a flat tariff of ₹7.02 (~$0.085)/kWh and no fixed charges. LV agriculture users (LV-3) will be charged ₹5.8 (~$0.070)/kWh and ₹100 (~$1.20)/HP/month, with a 30% rebate for non-subsidized consumers.</p>
<p>Industrial tariffs (LV-5) range from ₹4.55 (~$0.055) to ₹6.80 (~$0.082)/kWh, depending on the load and region.</p>
<p>Public utilities (LV-6) will be charged ₹7.35 (~$0.089)/kWh, with fixed charges ranging from ₹142 (~$1.71) to ₹190 (~$2.29)/kW.</p>
<p><strong>Time-of-Day Tariffs </strong></p>
<p>The Time-of-Day tariffs will take effect on September 1, 2025, with a 5% premium during peak hours (5 PM to 11 PM) and a 5% discount during off-peak hours (9 AM to 5 PM).</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/CSERC-tariff-article.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-82055 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/CSERC-tariff-article.png" alt="CSERC Tariff" width="847" height="291" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/CSERC-tariff-article.png 847w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/CSERC-tariff-article-300x103.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/CSERC-tariff-article-768x264.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/CSERC-tariff-article-650x223.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/CSERC-tariff-article-844x291.png 844w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/CSERC-tariff-article-624x214.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/CSERC-tariff-article-600x206.png 600w" sizes="(max-width: 847px) 100vw, 847px" /></a></p>
<p><strong>High Voltage Consumer Tariff</strong></p>
<p>For high-voltage (HV) categories, railway (HV-1) consumers will be charged ₹5.55 (~$0.067)/kVAh with a demand charge of ₹375 (~$4.52)/kVA/month. Mining (HV-2) consumers must pay energy charges ranging from ₹6.95 (~$0.084) to ₹7.80 (~$0.094)/kVAh, depending on the voltage level.</p>
<p>Tariffs for general industries (HV-3) vary from ₹6.65 (~$0.08) to ₹7.90 (~$0.095)/kVAh, while steel (HV-4) tariffs range between ₹6.1 (~$0.073) and ₹7.55 (~$0.091)/kVAh, including load factor rebates up to 25%.</p>
<p>Agriculture/public water works (HV-5) will be charged ₹6.6 (~$0.08)/kVAh, and residential bulk (HV-6) at ₹6.80 (~$0.082)/kVAh.</p>
<p>Startup power under HV-7 will be charged at ₹9.10 (~$0.11)/kVAh with a demand charge of ₹200 (~$2.41)/kVA/month.</p>
<p>A new category, HV-11, has been introduced for EV charging with a single-part tariff of ₹6.32 (~$0.076)/kVAh.</p>
<p><strong>Wheeling and Open Access Charges</strong></p>
<p>CSERC has introduced wheeling charges of ₹0.29 (~$0.0036)/kWh for consumers on the 33 kV level and ₹0.85 (~$0.010)/kWh for those below the 33 kV level.</p>
<p>Distribution losses are set at 6% for 33/11 kV voltage levels and 10% for levels below 33 kV. Short-term open access users must pay ₹2,000 (~$24.10)/day to CSLDC.</p>
<p>The Commission set a cross-subsidy surcharge of ₹1.33 (~$0.016)/kWh for 220 kV, ₹0.94 (~$0.011)/kWh for 132 kV, ₹1.40 (~$0.017)/kWh for 33 kV and 11 kV, and ₹1.27 (~$0.015)/kWh for LT consumers.</p>
<p>Standby charges for open access users are ₹10.53 (~$0.12)/kWh up to the contract demand and ₹14.04 (~$0.16)/kWh beyond this level. Parallel operation charges for captive generators have increased to ₹0.15 (~$0.0018)/kWh from ₹0.13 (~$0.0016).</p>
<p><strong>Revenue Approvals</strong></p>
<p>Alongside consumer tariff changes, the Commission has finalized the aggregate revenue requirements (ARR) for all the state’s power utilities &#8212; Chhattisgarh State Power Generation Company (CSPGCL), Chhattisgarh State Power Transmission Company (CSPTCL), Chhattisgarh State Load Despatch Centre (CSLDC), and CSPDCL.</p>
<p>CSPDCL’s standalone ARR has been approved at ₹224.9 billion (~$2.71 billion), while the net ARR, including the revenue deficit, amounts to ₹256.3 billion (~$3.09 billion).</p>
<p>For transmission utility CSPTCL, the approved ARR is ₹13.46 billion (~$162.30 million), with monthly transmission charges of ₹1.49 billion (~$18.02 million). The short-term open access transmission charge has been fixed at ₹0.3445 (~$0.0041)/kWh, and transmission losses are pegged at 3%.</p>
<p>CSLDC’s net ARR is ₹242.3 million (~$2.92 million), after adjusting for a surplus of ₹9.8 million (~$118,000). System operation charges are ₹193.9 million (~$2.34 million), and intra-state market operation charges stand at ₹48.5 million (~$584,000).</p>
<p><strong>Other Financial Adjustments</strong></p>
<p>Consumers must pay ₹0.5 (~$0.006)/kWh for carbon reduction certification. Additional charges for availing green power range from ₹0.24 (~$0.0029)/kWh for wind to ₹4.43 (~$0.053)/kWh for hydro.</p>
<p>The fuel and power purchase adjustment surcharge will continue to be billed on a bi-monthly basis, starting with the new base rates for July 2025 consumption. Tax and duty charges are excluded from the tariff and remain payable in accordance with the state laws.</p>
<p>In April this year, CSERC <a href="https://www.mercomindia.com/chhattisgarh-regulator-approves-%E2%82%B93-50-kwh-as-tariff-for-310-mw-solar-project" target="_blank" rel="noopener">approved</a> a tariff of ₹3.50 (~$0.0409)/kWh for procuring 310 MW of solar power under the Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM KUSUM) Component C.</p>
<p>Subscribe to Mercom’s real-time <a href="https://www.mercomindia.com/product/mercoms-renewable-energy-regulatory-updates" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.</p>


Chhattisgarh Hikes FY 2026 Electricity Tariffs by 1.89% Across Categories


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					</table><p>The cement industry is one of the most hard-to-abate sectors, but Indian cement manufacturers have been aggressively reducing their carbon footprint by using renewable energy to power their operations.</p>
<p>Credit ratings agency ICRA had <a href="https://www.mercomindia.com/green-power-cement-companies-power-mix" target="_blank" rel="noopener">forecasted</a> last year that green power would account for approximately 40-42% of the total power mix of major cement companies in India by March 2025, a significant increase from around 35% as of March 2023. It had said key cement industry players in India had set ambitious goals to reduce their emissions by 15-17% over the next 8-10 years by boosting the use of solar and wind energy, and waste heat recovery system capacities.</p>
<p>With an installed capacity of 46.9 million tons a year, <a title="https://www.shreecement.com/" href="https://www.shreecement.com/" target="_blank" rel="noreferrer noopener">Shree Cement</a> is among the leading cement manufacturers in India. In line with sustainability commitments, the company has recently commissioned a 6 MW solar project at its Roorkee facility in Uttarakhand. This project was developed with a capital investment of approximately ₹160 million (~$1.86 million).</p>
<p>The solar project, adjacent to Shree Cement’s manufacturing facility, will help the company reduce its dependence on grid power and raise the Roorke plant’s solar capacity to 7 MW.</p>
<p>Shree Cement’s annual report 2024-25 states that its total solar capacity now stands at 293.5 MW and renewable energy capacity at 582 MW, a 21% rise from the previous year. This capacity includes wind energy and waste heat recovery systems.</p>
<p>Green electricity now accounts for 56.09% of the company’s total power consumption, up slightly from 55.89% in the financial year (FY) 2024.</p>
<p>Shree Cement has committed to the global RE100 initiative, pledging to source 100% of its electricity from renewable sources by 2050. The company has decided to halt the development of new thermal projects and instead focus on expanding its renewable energy capacity.</p>
<p>To further scale its share of green energy, the company has initiated renewable energy projects at various locations, which are currently under implementation or in the pre-project phase.</p>
<p>Driven by rising awareness, volatile energy prices, and a growing emphasis on energy independence, the adoption of clean energy is <a href="https://www.mercomindia.com/energy-intensive-industries-drive-open-access-solar-growth-amid-challenges" target="_blank" rel="noopener">gaining</a> strong momentum. Industries with high emissions and significant power consumption are increasingly turning to clean energy.</p>
<p>Mercom India has been hosting a series of C&amp;I Clean Energy Meets designed to equip C&amp;I energy buyers with the knowledge and tools necessary to adopt clean energy solutions and reduce their power expenses. The next event is <a href="https://www.mercomindia.com/event/c-and-i-clean-energy-meet-2025-hyderabad" target="_blank" rel="noopener">scheduled</a> to be held in Hyderabad on August 22, 2025.</p>


Shree Cement Aims to Cut Reliance on Grid Energy with 6 MW Solar Project


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					</table><p>Military Engineer Services (<a href="https://mes.gov.in/" target="_blank" rel="noopener">MES</a>), under the Chief Engineer, Bathinda Zone, has issued a tender for the comprehensive operation and maintenance (O&amp;M) of a 5 MW solar project located across Suratgarh (2 MW), Sri Ganganagar (2 MW), and Kanasar (1 MW) in Rajasthan.</p>
<p>Bids must be submitted by August 11, 2025. Bids will be opened on August 13.</p>
<p>Bidders must furnish an earnest money deposit of ₹511,750 (~$5,959.41) and a tender fee of ₹2,000 (~$23.31).</p>
<p>Successful bidders must submit a performance bank guarantee of 5% of the contract value, which must remain valid for the full duration of the defect liability period (DLP) plus 60 days. The DLP is set at 12 months after the handover of the works.</p>
<p>The scope of work entails routine and corrective maintenance, testing, record-keeping, and all related operational tasks across the three project sites.</p>
<p>The contract will be for a period of 10 years. Regular performance evaluations will be conducted every six months during the contract period.</p>
<p>Selected bidders must maintain the project’s minimum annual average capacity utilization factor at 13%. The project’s estimated cost is ₹43.6 million (~$507,441).</p>
<p>Any power generation deficit will attract liquidated damages of ₹8 (~$0.093)/kWh.</p>
<p>If the project remains non-functional for more than two days, it will attract the following penalties:</p>
<ul>
<li>A penalty of ₹2,500 (~$29.14)/day for three to five days</li>
<li>A penalty of ₹3,500 (~$40.79)/day for six to 10 days</li>
<li>A penalty of ₹7,500 (~$87.40)/day for more than 10 days</li>
</ul>
<p>Bidders enlisted under MES must have a class ‘A’ enlistment with a track record of satisfactory performance. Those not enlisted must fulfill the Class ‘A’ MES eligibility.</p>
<p>Bidders must have completed and commissioned either one project of at least 80% capacity, two projects of 50% capacity, or three projects of 40% capacity within the last seven years.</p>
<p>In April this year, MES Eastern Command, Shillong Zone, <a href="https://www.mercomindia.com/military-engineer-services-invites-bids-for-1-1-mw-rooftop-solar-systems" target="_blank" rel="noopener">invited</a> bids to install rooftop solar systems with a total capacity of 1,100 kW at Rangapahar Military Station in Nagaland.</p>
<p>Subscribe to Mercom’s <a href="https://mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener">India Solar Tender Tracker</a> to stay on top of the tender activity in real-time.</p>


MES Floats Operation and Maintenance Tender for 5 MW Solar Project


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					</table><p>The recent <a href="https://www.mercomindia.com/mcx-to-start-electricity-futures-trading-from-july-10-2025" target="_blank" rel="noopener">launch</a> of electricity derivatives by the Multi Commodity Exchange of India (MCX) and the National Stock Exchange (<a href="https://www.nseindia.com/" target="_blank" rel="noopener">NSE</a>) is a long-awaited reform, with a history spanning over 15 years.</p>
<p>In 2010, an attempt to launch electricity derivatives led to a significant legal dispute between key regulatory bodies, the Central Electricity Regulatory Commission (CERC) and the Securities and Exchange Board of India (SEBI). Consequently, the CERC&#8217;s Power Market Regulations 2010 completely prohibited the use of financial derivatives. The primary reason for this was that power sector reforms were in their early stages, and with electricity being an essential commodity, policymakers were cautious about potential misadventures in such a market.</p>
<p>However, times have significantly changed. Both regulators reached a consensus in 2020, and further approval from the Supreme Court in 2021 paved the way for the introduction of electricity derivatives.</p>
<p>The current outcome is that any contracts involving the physical delivery of electricity will be regulated by CERC, while all other contracts will be regulated by SEBI.</p>
<p>The launch of electricity derivatives is an important initiative for power sector stakeholders, including independent power producers, distribution companies, and bulk electricity offtakers.</p>
<p>Before we delve into use cases, let&#8217;s understand two very important parameters of electricity markets:</p>
<ul>
<li>Electricity is simply the movement of electrons. It cannot be stored (unless very expensive storage is involved), hoarded, or stockpiled. Hence, electricity prices are purely a function of demand and supply on a 15-minute block basis. This is the only commodity where speculation or price manipulation is extraordinarily difficult.</li>
</ul>
<ul>
<li>Electricity prices in India are subject to unprecedented volatility. While electricity prices in markets are highly subdued during solar hours (generally in the range of ₹2 (~$0.023)/kWh-₹3 (~$0.035)/kWh, prices can touch peaks (even as high as ₹8 (~$0.093)/kWh-₹10 (~$0.12)/kWh on the same day during peak timings or even at night nowadays. Such volatility in an essential commodity is highly undesirable.</li>
</ul>
<p>Electricity derivatives provide a very important instrument to counter this volatility. For example, when financial investors are able to square off their position at a higher rate based on the 24-hour cycle, they will be willing to pay a high price for electricity derivatives during solar hours, effectively lifting the price of physical power during those hours.</p>
<p>Similarly, during peak times, when they are squaring off their positions for a profit, they will be willing to sell the contract at a lower rate than physical power, which will bring down the price during peak hours.</p>
<p>Accordingly, when derivative markets are deep enough, it will significantly impact physical power prices, ultimately benefiting the sector.</p>
<p>With this understanding, let&#8217;s look at broad use cases for various stakeholders in the electricity markets:<strong> </strong></p>
<p><strong>Independent Power Producers (IPPs)</strong></p>
<p>For many years, IPPs have been exploring ways to finance merchant projects. However, financing for such projects is difficult as lenders are concerned about long-term revenue visibility (given price volatility). Many bulk electricity offtakers with net-zero targets have similar concerns.</p>
<p>Recently, CERC <a href="https://www.mercomindia.com/cerc-releases-draft-virtual-power-purchase-agreement-guidelines">issued</a> draft guidelines for the Virtual Power Purchase Framework. These contracts essentially shift (partially or fully) the market risk for sustainability offtakers. Electricity derivatives provide them with a much-needed instrument to hedge their market positions.</p>
<p>For example, say a sustainability offtaker executes a VPPA for 100 MW at a strike price of ₹3 (~$0.035)/kWh. With electricity derivatives, the offtaker can essentially hedge the entire market risk by taking a short position for 100 MW in derivatives at ₹3 (~$0.035)/kWh.</p>
<p>The following table illustrates the broad framework for such a transaction: <a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/electricity-deriv-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81992 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/electricity-deriv-1.png" alt="" width="751" height="244" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/electricity-deriv-1.png 751w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/electricity-deriv-1-300x97.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/electricity-deriv-1-650x211.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/electricity-deriv-1-624x203.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/electricity-deriv-1-600x195.png 600w" sizes="(max-width: 751px) 100vw, 751px" /></a></p>
<p>By taking the opposite position in the derivative market, an IPP or offtaker is essentially able to nullify any market risks in the contract.<strong> </strong></p>
<p><strong>Distribution Companies (DISCOMs)</strong></p>
<p>DISCOMs act as both sellers and buyers in physical power markets; however, they are price takers without any ability to influence the price. Especially during solar hours, most DISCOMs offload electricity at whatever prices the market is willing to pay, and then become net buyers during peak and nighttime hours.</p>
<p>This results in significant losses to the public as the cost is passed through to ordinary electricity users.</p>
<p>However, with electricity derivatives, DISCOMs may enter into block deals with a financial investor to mitigate price risks. For instance, a DISCOM  has a surplus of 100 MW during the daytime, which it intends to sell at ₹3 (~$0.035)/kWh, and becomes a net purchaser of 100 MW during peak time, which it intends to purchase at ₹6 (~$0.070/kWh. Simultaneously, a financial investor believes that daytime power should be ₹3.50 (~$0.041)/kWh and peak time power should be ₹5.50 (~$0.064)/kWh. This DISCOM may enter into a block deal for an equivalent amount of derivatives, for instance, at a rate of ₹3.25 (~$0.038)/kWh during the daytime and ₹5.75 (~$0.067)/kWh during peak time. This will enable both parties to gain ₹0.25 (~$0.0029/kWh.</p>
<p><strong>Bulk Electricity Offtakers</strong></p>
<p>Currently, most bulk electricity offtakers face a significant challenge in obtaining visibility into electricity volume clearance when purchasing electricity from exchanges. While bid or breakeven prices are known, volume clearances are subject to demand and supply during each 15-minute block. When the price discovered is higher than the bid price, volumes are not cleared, and the offtaker purchases the shortfall quantity from the DISCOM. If the price discovered is lower than the bid price, the difference is the net profit for the offtaker.</p>
<p>Using financial derivatives, bulk electricity offtakers may largely target monthly savings. They can take a buy position based on uncleared volume from the start of the month, with the premise that notional losses for uncleared volume are made good through profits made in the derivative market. The above provides a broad overview of the potential uses of derivatives. As the derivatives market deepens, a new wave of innovations is likely to drive the development of many new products. These innovations ultimately reduce price volatility and provide a stable market framework for all stakeholders in the sector.</p>
<p><strong>The views and analysis presented in this article are solely those of the author.</strong></p>
<p>(<em>The author </em><em>Aditya Malpani is Senior Director &amp; Regional Head &#8211; West, AMPIN Energy Transition</em>)</p>


Electricity Derivatives: A Gamechanger for Indian Power Market Stakeholders


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					</table><p><a href="http://www.rinfra.com/" target="_blank" rel="noopener">Reliance Infrastructure</a>, <a href="https://www.jbmgroup.com/renewables/" target="_blank" rel="noopener">JBM Renewables</a>, <a href="https://www.pncinfratech.com/" target="_blank" rel="noopener">PNC Infratech</a>, <a href="https://www.sael.co/" target="_blank" rel="noopener">SAEL Industries</a>, and <a href="https://www.necltd.com/" target="_blank" rel="noopener">Navayuga Engineering Company</a> have won <a href="https://www.nhpcindia.com/" target="_blank" rel="noopener">NHPC</a>’s 1.2 GW auction (Tranche-XI) to set up interstate transmission system (ISTS)-connected solar power projects with 600 MW/2,400 MWh energy storage systems (ESS).</p>
<p>Reliance Infrastructure won 390 MW, JBM Renewables won 150 MW, PNC Infratech won 300 MW, and SAEL Industries won 300 MW at a tariff of ₹3.13 (~$0.0365)/kWh.</p>
<p>Navayuga Engineering Company won 60 MW of the 200 MW quoted capacity under the bucket filling method at a tariff of ₹3.13 (~$0.0365)/kWh.<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/NHPC-auction.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81977 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/NHPC-auction.png" alt="" width="704" height="307" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/NHPC-auction.png 704w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/NHPC-auction-300x131.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/NHPC-auction-650x283.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/NHPC-auction-624x272.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/NHPC-auction-600x262.png 600w" sizes="(max-width: 704px) 100vw, 704px" /></a></p>
<p>The tender was <a href="https://www.mercomindia.com/nhpc-tenders-1-2-gw-solar-projects-with-energy-storage-systems" target="_blank" rel="noopener">floated</a> in March 2025.</p>
<p>It has a provision to award the winners an additional 1.2 GW under the greenshoe option.</p>
<p>The projects will be developed on a build, own, and operate basis.</p>
<p>Winners must utilize an ESS with a capacity of at least 0.5 MW/2 MWh for a contracted capacity of 1 MW.</p>
<p>They must charge the ESS with solar power. The ESS must be charged at a rate of up to 5% annually using renewable power from the green market or bilateral agreements.</p>
<p>The projects must use commercially established and operational technologies to minimize risk and achieve timely project commissioning.</p>
<p>Only cells and modules from the Approved List of Models and Manufacturers must be used for the projects.</p>
<p>The tender specified that winners can set up projects at multiple locations, provided each project has a minimum capacity of 50 MW, with a minimum ESS component of 25 MW/100 MWh.</p>
<p>The cumulative capacity set up by a single bidder must not exceed 600 MW (with a minimum ESS component of 300 MW/1,200 MWh) without a greenshoe option.</p>
<p>In May 2025, SAEL Industries, Jindal India Renewable Energy, Sembcorp Green, JBM Renewables, Fastnote Biofuels (Hindustan Power), and Reliance NU Energies <a href="https://www.mercomindia.com/reliance-jindal-among-winners-of-sjvns-1-2-gw-solar-plus-storage-auction">won</a> SJVN’s auction to develop 1,200 MW ISTS-connected solar projects with 600 MW/2,400 MWh ESS.</p>
<p>In January 2025, Onix Renewable, Jindal India Renewable Energy, NTPC Renewable Energy, Kolar Solar Power (Rays Power Infra), ReNew Solar Power, and Adani Renewable Energy Holding Nine (Adani Green) <a href="https://mercomindia.com/nhpc-1-2-gw-solar-plus-storage-auction">won</a> NHPC’s auction to set up 1,200 MW ISTS-connected solar projects with 600 MW/1,200 MWh ESS.</p>
<p>Subscribe to Mercom’s India <a href="https://www.mercomindia.com/product/india-solar-tender-tracker" target="_blank" rel="noopener">Solar Tender Tracker</a> to stay on top of real-time tender activity.</p>


Reliance, SAEL, JBM, PNC, Navayuga Win NHPC’s 1.2 GW Solar Plus Storage Auction


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					</table><p>The fifth edition of Mercom India’s two-day flagship event, the <a href="https://www.mercomindia.com/event/renewables-summit-2025/register" target="_blank" rel="noopener">Mercom India Renewables Summit</a>, will feature engaging conversations about the growth and future of renewable energy in the country.</p>
<p>The Summit will be held on July 24-25, 2025, at the Hyatt Regency in New Delhi.</p>
<p>The unprecedented growth of renewable energy is built on the foundation of evolving technology. There have been significant developments in innovation and adoption of solar module and cell technologies, solar trackers, and floating solar projects. The use of the Internet of Things and Artificial Intelligence is also finding traction in the renewable energy industry</p>
<p>At the Summit, the session ‘<strong>Technology Innovations Driving Efficiency, Profitability, and Competitiveness in Renewables’</strong> on July 24 will cover how multiple solar technologies are driving enhanced efficiency, durability, and profitability in the renewable energy sector.</p>
<p><a href="https://www.mercomindia.com/event/renewables-summit-2025/register"><img loading="lazy" decoding="async" class="aligncenter wp-image-81945 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/technology-1-1-scaled.jpg" alt="" width="2560" height="1578" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/technology-1-1-scaled.jpg 2560w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/technology-1-1-300x185.jpg 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/technology-1-1-2000x1233.jpg 2000w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/technology-1-1-768x474.jpg 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/technology-1-1-1536x947.jpg 1536w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/technology-1-1-2048x1263.jpg 2048w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/technology-1-1-650x401.jpg 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/technology-1-1-624x385.jpg 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/technology-1-1-600x370.jpg 600w" sizes="(max-width: 2560px) 100vw, 2560px" /></a></p>
<p>The session will be held between 3:35 pm and 4:35 pm.</p>
<p>A panel of industry experts—Vikram Kenjale, Vice President (India) at <a href="https://www.gamechangesolar.com/" target="_blank" rel="noopener">GameChange Solar</a>; Sishir Garemella, Head of International Business Development at <a href="https://scorecard.pvel.com/" target="_blank" rel="noopener">Kiwa PVEL</a>; Chetan Amrutkar, AVP of Sales and Marketing at GenX PV; and Sumit Kumar, Vice President of Operations (Manufacturing) and Technology at <a href="https://www.vikramsolar.com/" target="_blank" rel="noopener">Vikram Solar</a>– will share their insights on the topic.</p>
<p>This session will explore the growing role of innovation in optimizing energy generation and usage, and how these advancements are setting new benchmarks for performance, cost savings, and sustainability.</p>
<p>The Mercom India Renewables Summit will host the inaugural <a href="https://www.mercomindia.com/event/renewables-summit-2025/exhibitor" target="_blank" rel="noopener">Mercom India Renewables Energy Expo</a> for the first time. It will serve as a platform to connect with industry veterans, unlock new business opportunities, and enhance brand recognition.</p>
<p>The event will include the <a href="https://www.mercomindia.com/awards" target="_blank" rel="noopener">Mercom India Awards,</a> which will recognize outstanding achievements and the latest technological innovations driving the transformation of the Indian energy markets.</p>
<p>Another side event, the <a href="https://www.mercomindia.com/event/startup" target="_blank" rel="noopener">Mercom India Startup Pitch Competition for Cleantech Companies</a>, will provide budding startups with an opportunity to showcase their innovative technology solutions to potential investors.</p>
<p><a href="https://www.mercomindia.com/event/renewables-summit-2025/register" target="_blank" rel="noopener">Register now </a>to attend the event and contribute to shaping the future of India’s vibrant renewable energy landscape.</p>


Driving Renewable Energy Growth Through Technology Innovation


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					</table><p>Global solar inverter shipments increased by 10% in 2024, reaching a total capacity of 589 GW, according to the 2025 edition of <a href="https://www.woodmac.com/" target="_blank" rel="noopener">Wood Mackenzie’s</a> Global Solar Inverter Market Share report.</p>
<p>The Asia Pacific (APAC) region, including China, India, and Southeast Asia, accounted for 69% of all global shipments. China alone received 330 GW, more than half of the global demand and a 14% increase over 2023. This regional demand largely drove the global market growth.</p>
<p>In contrast, the U.S. and Europe witnessed a contraction in inverter shipments.</p>
<p>Nine of the top ten inverter vendors worldwide are headquartered in China.</p>
<p>Huawei and Sungrow Power Supply remained the top two global solar inverter suppliers for the tenth consecutive year, with a combined market share of 55% in 2024. Huawei delivered 176 GW of inverters, extending its global lead through strong performances across China, Europe, Latin America, and Africa.</p>
<p>Sungrow shipped 148 GW, ranking behind Huawei in China and Europe but leading in the U.S., India, and the Middle East markets.</p>
<p>According to Mercom’s India Solar Market Leaderboard 2025, Sungrow <a href="https://www.mercomindia.com/leading-solar-inverter-supplies-2024" target="_blank" rel="noopener">emerged</a> as one of the leading inverter suppliers in India for the calendar year 2024.</p>
<p>Joseph Shangraw, Research Associate at Wood Mackenzie, said both companies consolidated the global inverter market and achieved their highest-ever individual market shares during the year.</p>
<p>According to the report, for the first time in the history of Wood Mackenzie’s rankings, no vendor outside the top two held more than 5% of the global market. <a href="https://www.solisinverters.com/global" target="_blank" rel="noopener">Ginlong Solis</a> retained third place in the rankings, while <a href="https://en.growatt.com/" target="_blank" rel="noopener">Growatt</a> came in fourth.</p>
<p><strong>Europe and the U.S.</strong></p>
<p>Europe and the U.S. witnessed a decline in inverter shipments. Europe experienced a double-digit percentage drop, particularly in the residential and commercial segments. This decline was caused by excess inventory in key markets such as Germany and the Netherlands.</p>
<p>The U.S. market declined by a single-digit percentage, primarily due to weakening residential demand and slow shipments of central inverters. Shangraw noted that the U.S. residential inverter segment posted its second consecutive annual decline, citing high loan interest rates and reduced demand in California following the implementation of the less favorable NEM 3.0 net metering policy.</p>
<p>In May this year, the European Solar Manufacturing Council <a href="https://www.mercomindia.com/europe-calls-for-curbing-remote-access-to-china-made-solar-inverters" target="_blank" rel="noopener">called</a> for restrictions on the unregulated and remote-control capabilities of solar inverters from “high-risk non-European manufacturers,” primarily from China.</p>


Global Solar Inverter Shipments Reach 589 GW in 2024


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					</table><p>The <strong>Oman Investment Authority</strong> <a href="https://www.al-monitor.com/originals/2025/07/oman-launches-200m-clean-energy-fund-chinas-templewater" target="_blank" rel="noopener">partnered</a> with <strong>Hong Kong</strong>-based <strong>Templewater</strong> to launch a $200 million <strong>Energy Transition Fund</strong>. The fund aims to finance projects in renewable energy, energy storage, clean fuels, green data centers, and low-carbon transportation, such as electric vehicles. The fund includes $100 million commitments from both the <strong>Future Fund Oman</strong> (FFO) and Templewater. FFO, established in January 2024 with assets of OMR 2 billion ($5.2 billion), focuses on stimulating local investment and economic diversification.</p>
<p><strong>Morocco</strong> <a href="https://en.sputniknews.africa/20250710/1075381225.html" target="_blank" rel="noopener">announced</a> its plans to construct a <strong>500 MW </strong>data center in<strong> Dakhla</strong>, which will be powered entirely by renewable energy. This construction is part of a broader 11 billion dirham (~$1.22 billion) digital transformation strategy, which also includes investments in artificial intelligence and the expansion of fiber optic networks. The announcement follows the launch of Morocco’s first sovereign data center in January this year.</p>
<p>The <strong>Abu Dhabi Islamic Bank (ADIB) </strong><a href="https://solarquarter.com/2025/07/08/adib-reports-aed17-billion-in-sustainable-finance-sets-sectoral-emissions-targets-and-advances-toward-net-zero-goals/" target="_blank" rel="noopener"><strong>mobilized</strong></a> AED17 billion (~$4.62 billion) in sustainable finance, progressing toward its AED60 billion (~$16.33 billion) target by 2030. The bank also released its inaugural Green Sukuk Allocation and Impact Report for its $500 million green bond issued earlier, with 90% of $500 million proceeds allocated to clean energy projects as of December 2024. ADIB reported an 87% reduction in Scope 1 emissions.</p>
<p><strong>Petroleum Development Oman</strong> <strong>(PDO)</strong> is <a href="https://www.omanobserver.om/article/1173194/oman/pdo-leads-omans-energy-push-with-1-bn-gas-project" target="_blank" rel="noopener">partnering</a> with <strong>OQ</strong> and <strong>TotalEnergies</strong> on three clean energy projects: a 100 MW solar facility and two wind farms (totaling 200 MW), which are expected to come online in 2026.</p>
<p><strong>Tamimi Markets</strong> <a href="https://www.zawya.com/en/business/energy/tamimi-markets-seals-solar-lease-deal-with-yellow-door-energy-hgp9c3p1" target="_blank" rel="noopener">signed</a> a solar lease agreement with <strong>Yellow Door Energy</strong> to install 900 kW of rooftop solar systems at distribution centers in Jeddah and Dammam. As part of this project, over 1,500 bifacial solar panels will generate approximately 1.5 million kWh of energy annually. The project is expected to be completed by the end of the year. Yellow Door Energy will finance, install, and operate the systems.</p>
<p><strong>GameChange</strong> Solar will <a href="https://www.prnewswire.com/in/news-releases/gamechange-solar-secures-landmark-1-25-gw-tracker-deal-for-abydos-ii-in-egypt-302498548.html" target="_blank" rel="noopener">supply</a> its Genius Tracker system for the 1.25 GW Phase II of the Abydos Solar power project in <strong>Egypt</strong>, which is being developed by <strong>AMEA Power</strong> and built by <strong>CEEC-ZTPC</strong>. The project features a 600 MWh battery energy storage system and follows the solar project’s 560 MW Phase I. Scheduled for commissioning in May 2026, the project is expected to generate approximately 3,000 GWh of energy annually.</p>


MENA Weekly Roundup: Oman Launches $200 Million Clean Energy Fund


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					</table><p>Driven by the need to reduce power costs and meet sustainability targets, an increasing number of companies in the commercial and industrial (C&amp;I) sector are adopting rooftop solar solutions.</p>
<p>With clean energy usage becoming increasingly imperative for many businesses due to the savings on power bills and meeting their sustainability objectives, rooftop solar is a preferred choice for going green.</p>
<p>Mumbai-based <a href="https://www.hpadhesives.com/" target="_blank" rel="noopener">HP Adhesives</a>, a company specializing in adhesives and sealants, has recently installed a 392.7 kW rooftop solar system at its manufacturing facility in Narangi Village in Maharashtra’s Raigad district.</p>
<p>Energy from the rooftop solar installation accounts for 65-70% of the company’s total electricity consumption. The system generates 540,750 kWh of power annually.</p>
<p>The installation comprises 714 high-efficiency bifacial modules supplied by RenewSys and three 100 kW inverters from Growatt New Energy.</p>
<p>HP Adhesives’ decision to adopt solar energy was driven by high electricity costs and its commitment to sustainability.</p>
<p>Mihir Shah, Chief Financial Officer at HP Adhesives, stated, “We have been able to reduce almost 60% to 65% of the electricity bills monthly by installing rooftop solar. We are also planning to expand our installations at the premises in the future.”</p>
<p>In its annual report 2023-24, the company had said that it was in the process of installing solar panels at its manufacturing plant.  “We recognize the importance of environmentally responsible practices and strive to minimize our carbon footprint through sustainable manufacturing processes,” it said in the report.</p>
<p>Pune-based <a href="https://kalpapower.com/" target="_blank" rel="noopener">Kalpa Power</a>, which executed and commissioned the project for HP Adhesives, said scheduling the reinforced cement concrete work while monitoring weather conditions during the monsoon was the primary challenge; however, the installation was completed without delay.</p>
<p>Shrikant Soni, Deputy General Manager at Kalpa Power, said, “We offer five-year operations and maintenance services for the project, which include periodic cleaning, plant monitoring through a supervisory control and data acquisition system, and monthly generation reports. These services are renewable after the initial five-year period.” The company also offers performance guarantees with a guaranteed performance ratio and component warranties.</p>
<p>At a recent C&amp;I Clean Energy Meet hosted by Mercom India in Mumbai, industry experts <a id="menur4g6" class="fui-Link ___1q1shib f2hkw1w f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1s184ao f1mk8lai fnbmjn9 f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh fhgqx19 f1olyrje f1p93eir f1nev41a f1h8hb77 f1lqvz6u f10aw75t fsle3fq f17ae5zn" title="https://www.mercomindia.com/savings-in-power-bills-key-motivator-for-ci-clean-energy-transition" href="https://www.mercomindia.com/savings-in-power-bills-key-motivator-for-ci-clean-energy-transition" target="_blank" rel="noreferrer noopener" aria-label="Link shared">shared</a> insights on how C&amp;I businesses can save on power bills by switching to solar and choosing between open-access and rooftop solar solutions.</p>
<p>Mercom India has been organizing a series of C&amp;I Clean Energy Meets which are designed to provide C&amp;I energy buyers with the knowledge and tools they need to adopt clean energy solutions and lower their power costs.</p>
<p>The next event in the series is <a id="menur4g8" class="fui-Link ___1q1shib f2hkw1w f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1s184ao f1mk8lai fnbmjn9 f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh fhgqx19 f1olyrje f1p93eir f1nev41a f1h8hb77 f1lqvz6u f10aw75t fsle3fq f17ae5zn" title="https://www.mercomindia.com/event/c-and-i-clean-energy-meet-2025-hyderabad" href="https://www.mercomindia.com/event/c-and-i-clean-energy-meet-2025-hyderabad" target="_blank" rel="noreferrer noopener" aria-label="Link scheduled">scheduled</a> to be held in Hyderabad on August 22, 2025.</p>


Rooftop Solar Helps HP Adhesives Cut Electricity Bill by 65%


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					</table><p>The Karnataka Electricity Regulatory Commission (<a href="https://kerc.karnataka.gov.in/en" target="_blank" rel="noopener">KERC</a>) has issued its generic tariff order for solar power projects. The order is applicable from July 1, 2025, to June 30, 2026. The tariffs apply to MW-scale ground-mounted, distributed solar photovoltaic (DSPV), and rooftop solar projects.</p>
<p><strong>Tariffs Approved for 2025-26</strong></p>
<p>The final approved tariff for MW-scale ground-mounted solar power projects is ₹3.07 (~$0.035)/kWh. For non-domestic DSPV consumers, the tariff is ₹3.08 (~$0.035)/kWh. For domestic consumers installing systems with a capacity of 1 kW to 10 kW, the tariff is ₹3.86 (~$0.044)/kWh, excluding subsidy.</p>
<p>Consumers eligible under the PM Surya Ghar: Muft Bijli Yojana will receive subsidized tariffs based on system size: ₹2.30 (~$0.026)/kWh for 1 kW to 2 kW systems, ₹2.48 (~$0.028)/kWh for systems between 2 kW to 3 kW, and ₹2.93 (~$0.034)/kWh for systems above 3 kW.</p>
<p>The benchmark capital cost for tariff determination is ₹40,000 (~$465.12)/kWh for domestic DSPV, ₹30,000 (~$348.84)/kWh for other DSPV projects, and ₹32.15 million (~$373,837)/MW for MW-scale projects.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Screenshot-2025-07-11-121740.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81851 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Screenshot-2025-07-11-121740.png" alt="KERC Levelized Tariff" width="835" height="365" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Screenshot-2025-07-11-121740.png 835w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Screenshot-2025-07-11-121740-300x131.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Screenshot-2025-07-11-121740-768x336.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Screenshot-2025-07-11-121740-650x284.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Screenshot-2025-07-11-121740-624x273.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/Screenshot-2025-07-11-121740-600x262.png 600w" sizes="(max-width: 835px) 100vw, 835px" /></a></p>
<p>The Commission had <a href="https://www.mercomindia.com/kerc-proposes-tariff-of-%E2%82%B92-93-kwh-for-pm-surya-ghar-projects-above-3-kw" target="_blank" rel="noopener">proposed</a> the tariffs in March this year.</p>
<p><strong>Terminology Change </strong></p>
<p>The Commission has replaced the term &#8220;Solar Rooftop Photovoltaic&#8221; with &#8220;Distributed Solar Photovoltaic&#8221; (DSPV) projects. This category now includes rooftop systems, ground-mounted systems using elevated structures with a minimum ground clearance of eight feet, facade-mounted installations, and systems covered under virtual net metering (VNM) and group net metering (GNM).</p>
<p>These systems can be installed on residential, institutional, or commercial buildings, provided compliance with local building bylaws and safety regulations is ensured.</p>
<p><strong>Metering Mechanisms and Open Access Benefits</strong></p>
<p>Under the VNM model, consumers of the same category, such as those in residential apartments or government buildings, can use a single solar system to offset consumption across multiple electricity connections. The energy injected into the grid will be compensated for at 75% of the applicable generic tariff.</p>
<p>Smart meters will be mandatory at both the generation and consumption ends. Consumers will be exempt from open access charges if the consumption is confined within the same distribution transformer or 11 kV feeder.</p>
<p>In the GNM model, an individual with multiple connections under the same name can link them under a single solar installation. This facility will be subject to the condition that these individuals have a minimum project size of 5 kW, and that at least 20% of the generated energy is consumed at the source connection. Unutilized units are forfeited. Smart meters will also be mandatory under this model.</p>
<p><strong>Application and PPA Process</strong></p>
<p>The Commission simplified the process for domestic low-tension (LT) consumers installing DSPV systems up to 150 kW by exempting them from signing a power purchase agreement (PPA). For systems exceeding 150 kW, KERC prescribed a standardized process with fixed timelines for site verification, PPA execution, inspection, and final commissioning.</p>
<p>Distribution licensees will face penalties for failing to complete their tasks within five days of consumer work completion. In cases where delays impact commissioning, the benefit of deemed generation will be extended to the consumers.</p>
<p><strong>Connectivity Guidelines</strong></p>
<p>Consumers can use either static or digital meters with communication modules, or opt for smart meters for solar generation metering, effective July 1, 2025. Battery energy storage systems (BESS) are not mandated due to high capital costs and low adoption rates of rooftop solar energy systems.</p>
<p>Installations are permitted up to 100% of the sanctioned load with a tolerance limit of 10% for systems under 10 kW. Procurement from empanelled vendors is not compulsory. Connectivity is permitted at the LT level for capacities up to 150 kW and at the 11 kV high tension level for projects with capacities between 150 kW and 2 MW.</p>
<p><strong>Tariff Computation Parameters and Capital Cost </strong></p>
<p>The financial standards adopted by KERC include a useful life of 25 years, a debt-to-equity ratio of 70:30, an interest rate on debt of 11.1% over a 13-year tenure, a return on equity of 14%, and a working capital interest rate of 11.5%.</p>
<p>Operations and maintenance costs will be ₹791.31 (~$9.20)/kW for DSPV and ₹594,000 (~$6,906)/MW for ground-mounted systems, with an annual escalation rate of 5.72%. Depreciation is fixed at 5.38% annually for DSPV and 6.064% for megawatt-scale projects for the first 13 years.</p>
<p>The capacity utilization factor is fixed at 19% for all project categories, with an auxiliary consumption allowance of 0.25% for MW-scale systems only. No degradation factor is applied.</p>
<p><strong>Relocation and Flexibility</strong></p>
<p>The Commission has allowed consumers to relocate their solar installations within the same distribution companies’ area without requiring any amendment to the PPA, provided the sanctioned load remains unchanged. It also allowed open access consumers to opt for net or gross metering. Electricity supply companies will not compensate any excess energy injected under net metering in a billing month, and it will be treated as free power.</p>
<p>Subscribe to Mercom’s real-time <a href="https://www.mercomindia.com/product/mercoms-renewable-energy-regulatory-updates" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.</p>


Karnataka Sets Benchmark Tariff of ₹3.07/kWh for MW-Scale Solar Projects


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					</table><p><a href="https://www.remcltd.com/" target="_blank" rel="noopener">REMCL</a>, a joint venture between the <a href="https://indianrailways.gov.in/" target="_blank" rel="noopener">Ministry of Railways</a> and <a href="https://www.rites.com/" target="_blank" rel="noopener">Rail India Technical and Economic Service</a>, has issued a tender to implement a 3 MW solar project at the Dedicated Freight Corridor Corporation of India (<a href="https://dfccil.com/" target="_blank" rel="noopener">DFCCIL</a>) complex in Noida, Uttar Pradesh.</p>
<p>The project will consist of both ground-mounted and rooftop solar installations.</p>
<p>Bids must be submitted by August 5, 2025. Bids will be opened on August 7.</p>
<p>Bidders must furnish an earnest money deposit of ₹1.20 million (~$13,953) and a tender processing fee of ₹25,000 (~$290.70) plus 18% GST.</p>
<p>The scope of work entails the design, engineering, supply, construction, erection, testing, and commissioning of the solar project. It also involves providing operation and maintenance for ten years.</p>
<p>Only modules from the Approved List of Modules and Manufacturers must be used.</p>
<p>Both solar cells and modules must be manufactured in India, with all manufacturing steps, from wafer production to module assembly, completed domestically.</p>
<p>Bidders must be Class-I local suppliers with a minimum of 50% local content.</p>
<p>They must have completed the following works:</p>
<ul>
<li>Three similar projects, each costing at least 30% of the tender value</li>
<li>Two similar projects, each costing at least 40% of the tender value</li>
<li>One similar project costing at least 60% of the tender value</li>
</ul>
<p>Bidders must have a minimum average annual contractual turnover of V/N or V, whichever is lower, where V is the tender value in crores and N is the number of years prescribed for completion.</p>
<p>Recently, REMCL <a href="https://www.mercomindia.com/remcl-floats-tender-for-1-25-mw-rooftop-solar-projects-in-maharashtra" target="_blank" rel="noopener">invited</a> bids to set up a cumulative 1.25 MW of rooftop solar projects at four railway stations in Maharashtra.</p>
<p>In January this year, the Varanasi division (electrical) of the Northeastern Railway <a title="https://www.mercomindia.com/northeastern-railway-tender-10-mw-rooftop-solar-projects-in-uttar-pradesh" href="https://www.mercomindia.com/northeastern-railway-tender-10-mw-rooftop-solar-projects-in-uttar-pradesh" target="_blank" rel="noreferrer noopener">floated</a> four tenders for a cumulative 10.4 MW on-grid rooftop solar systems at multiple buildings in Gorakhpur, Uttar Pradesh.</p>
<p>Subscribe to Mercom’s <a href="https://mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener">India Solar Tender Tracker</a> to stay on top of tender activity in real-time.</p>


REMCL Floats Tender for 3 MW Solar Project in Noida


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					</table><p>The Himachal Pradesh Electricity Regulatory Commission (<a href="https://hperc.org/" target="_blank" rel="noopener">HPERC</a>) has finalized its Resource Adequacy Framework Regulations, 2025. These regulations aim to ensure that the state’s generating companies, distribution licensees, distribution companies (DISCOMs), and load dispatch centers contract sufficient electricity generation capacity to meet peak demand reliably, cost-effectively, and sustainably.</p>
<p>The draft regulation was <a href="https://www.mercomindia.com/hperc-issues-draft-frameworl-resource-adequacy-electricity-demand" target="_blank" rel="noopener">released</a> in February this year.</p>
<p>The regulations provide a legal mandate for demand forecasting, capacity planning, and power procurement.</p>
<p>Under the finalized framework, DISCOMs must demonstrate a 100% capacity tie-up in the first compliance year and a 90% tie-up in the second. The Commission retained its earlier position that short-term power purchases, including those from the day-ahead market and real-time market, will not be counted toward meeting resource adequacy requirements (RAR).</p>
<p>It also reiterated that over 85% of the DISCOMs’ capacity must be sourced through long-term power purchase agreements, with only limited procurement allowed from short-term contracts.</p>
<p><strong>Demand Forecasting</strong></p>
<p>One of the key changes in the final order is the approval of periodic validation and refinement of demand forecasting models. A provision was added to the regulations to permit DISCOMs to refine and improve their forecasting techniques using real-time data and emerging consumption trends.</p>
<p>This flexibility enables the use of hybrid forecasting methodologies, including artificial intelligence such as machine learning, autoregressive integrated moving average models, trend analysis, and econometric models.</p>
<p><strong>Capacity Credit Method Retained</strong></p>
<p>Despite stakeholder requests to alter the capacity credit factor for renewable energy, HPERC retained the methodology based on the top 250 peak demand hours using the ‘net load base’ approach. Suggestions to revise the hours or use actual generation instead of availability were rejected.</p>
<p><strong>OTC Platforms Rejected</strong></p>
<p>The Commission firmly rejected proposals to recognize over-the-counter (OTC) platforms for electricity procurement or coordination. HPERC stated that OTC platforms are not recognized under the Ministry of Power’s bidding guidelines, cannot facilitate price discovery, and do not ensure the formation of legally binding contracts. Only the discovery of efficient electricity prices and the use of power utilities&#8217; short-term procurement platforms will be permitted for procurement under these regulations.</p>
<p>The request to allow electricity banking through OTC platforms was similarly denied, with the Commission mandating that such transactions must be conducted through open bidding. The Commission also declined to mandate competitive bidding for emergency procurement, allowing DISCOMs flexibility during unforeseen demand surges or outages.</p>
<p><strong>Compliance Definitions Unchanged</strong></p>
<p>Regulation 17, which deals with compliance and evaluation, was retained without modification despite suggestions to clarify definitions for surplus tie-ups, demand projection errors, and shortfalls. The Commission held that existing provisions under the resource adequacy plan already account for these scenarios.</p>
<p><strong>Digital Platforms and Demand Response</strong></p>
<p>While stakeholders pushed for a unified digital platform and the inclusion of demand response mechanisms in RAR calculations, the Commission noted that these are already factored into operational procedures. It declined to include them within the regulations, considering them procedural rather than regulatory matters.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.</p>


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