Daily News Wrap-Up: Landed Costs of Solar Open Access Projects Jump in Q2

Servotech has won the auction to install 1.2 MW rooftop solar projects

September 18, 2025

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The landed costs for third-party solar open access projects increased in 11 of 15 states for high-tension industrial consumers, primarily driven by higher power purchase agreement tariffs, according to Mercom India’s Q2 2025 Solar Open Access Market Report. In the second quarter of calendar year 2025, India added approximately 2.7 GW of solar open access capacity. This represented a quarter-over-quarter increase of more than 143% and a year-over-year rise of over 60%.

Servotech Renewable Power Systems secured an order from the Moradabad Division of Northern Railway to install a 1.229 MW rooftop solar project at residential and service buildings, as well as level crossing gates. The project’s estimated contract value is ₹57.54 million (~$655,577). The tender was floated in February this year. The scope of work for both projects involves designing, supplying, testing, and commissioning the solar systems. The project must use Mono PERC half-cut type modules, string inverters equipped with maximum power point tracking and remote data logging capabilities, and aluminum mounting structures.

The Ministry of New and Renewable Energy issued the National Policy on Geothermal Energy to advance research, exploration, drilling techniques, reservoir management, and cost-effective power generation, along with wider adoption of direct-use technologies. Geothermal projects will receive the same support mechanisms as other renewable energy sources under the policy, including interstate grid access, interstate transmission system, and open access charge waivers, as well as must-run status, renewable purchase obligation eligibility, and participation in the Indian Carbon Credit Trading Program. The policy seeks to establish geothermal energy as one of the pillars of India’s renewable energy landscape, contributing significantly to national climate commitments and the 2070 Net Zero Goal.

The Central Electricity Regulatory Commission proposed tightening the deviation settlement mechanism rules for wind, solar, and hybrid projects, effective from 2026. In a bid to enhance grid stability, it has proposed changing the calculation of deviation settlement to use the project’s scheduled generation instead of available capacity. The DSM for wind and solar projects from April 1, 2026, will be calculated as follows: Dws% = 100 x [(Actual Injection in MWh) – (Scheduled generation in MWh)] / [(X% of Available Capacity) + (100-X) % of Scheduled Generation) The Commission suggested a phased reduction in the ‘x’ value used in the formula to calculate the deviation in a time block for wind and solar projects.

The Ministry of New and Renewable Energy (MNRE) approved a supplementary budget of ₹1.4 billion (~$15.94 million) for the National Bioenergy Program (Phase I), to strengthen the promotion of renewable energy through waste-to-energy, biomass, and biogas projects. Under the additional budgetary sanction, ₹375 million (~$4.26 million) has been earmarked for the waste-to-energy program, ₹525 million (~$5.97 million) for the biomass program, and ₹500 million (~$5.69 million) for the biogas program. With this sanction, the total outlay for Phase I has increased to ₹9.98 billion (~$113.61 million), covering the implementation period from April 1, 2021, to March 31, 2026.

Electricity grid authorities in India have called for a series of actions to prevent an Iberian Peninsula-type blackout disrupting power supply for hours on April 28, 2025. In August, officials from the Ministry of Power, the Grid Controller of India, the Central Electricity Authority, and representatives of state bodies convened to analyze the reasons behind the total voltage collapse in the Spanish and Portuguese electricity systems, which triggered a disconnection from the European electricity grid. The meeting noted that the conditions preceding the Spanish blackout were characterized by low demand, high variable renewable energy penetration, and high voltage. Inadequate reactive support, poorly damped forced and natural oscillations, overvoltage miscoordination, weak interconnections, and non-compliance with standards were identified as the root causes of the blackout.

Rajasthan Electronics and Instruments invited rate contract bids to set up a 5 MW grid-connected rooftop solar project on government buildings in the Union Territory of Jammu and Kashmir. The project’s estimated cost is ₹98 million (~$1.12 million). Bids must be submitted by October 7, 2025. Bids will be opened on October 8. The scope of work includes survey, design, erection, testing, commissioning, and comprehensive operation and maintenance for a period of five years. It also includes civil works wherever required, supply and installation of bidirectional or smart meters, and the supply of the balance of systems.

NTPC Vidyut Vyapar Nigam issued a tender to develop a 1,000 kW grid-connected rooftop solar project at the Defence Research and Development Organisation premises in Jodhpur, Rajasthan. Bids must be submitted by October 7, 2025. Bids will be opened on October 8. The scope of work entails the design, engineering, supply, civil construction, erection, testing, and commissioning of the solar project. It also involves providing operation and maintenance services for 10 years. The scope of work also includes providing a remote monitoring system and the internet connection, including operational charges and other accessories for the O&M of the system throughout the contract period.

The Electricity Generating Authority of Thailand (EGAT) invited bids to develop a 280 MW floating solar project at the Srinagarind Dam, Si Sawat district, in Thailand. EGAT’s fund will finance the project. Bids must be submitted by December 16, 2025. Bids will be opened on the same day. The scope of work covers the design, procurement, manufacture, fabrication, shop tests, construction, installation, testing, and commissioning of the floating solar project. It also includes providing insurance, project management, project guarantee, and equipment. The project must utilize double-glass crystalline silicon modules supplied by solar module manufacturers with a production capacity of at least 5,000 MW/year. The manufacturers must also have been included in the latest revision of BloombergNEF’s Tier 1 Manufacturer List.

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