PFCL Floats Empanelment Tender for Metering Infrastructure Service Providers

Solarium Green Energy Receives BSE Nod for Initial Public Offering

Power Transmission Company Kalpataru Projects Raises ₹10 Billion in QIP

Himachal Regulator Approves Tariff for 900 MW Hybrid Power Projects

Daily News Wrap-Up: HPERC Allows DISCOM To Procure 550 MW Solar Power

MES Invites Bids for Maintenance of 1.7 MW Solar Project

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Karnataka Floats EPC Tender for 1.2 MW Solar Project

Himachal Regulator Allows DISCOM to Procure 550 MW Solar Power from SECI

Agri-Solar Solutions Provider GK Energy Files Papers for ₹5.01 Billion IPO

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					</table><a href="https://www.mercomindia.com/cbic-revokes-warehousing-imported-solar-goods" target="_blank" rel="noopener">The Central Board of Indirect Taxes and Customs (CBIC) has revoked the permission granted to solar developers to warehouse imported solar modules effective from December 17, 2024.</a> CBIC ruled that goods imported for solar power generation will not be allowed to undergo any manufacturing processes or operations in a warehouse. Any value addition, assembly, or process within bonded warehouses under Section 65 of the Customs Act that ultimately produces electricity is now prohibited.
<a href="https://www.mercomindia.com/green-steel-taxonomy-and-ratings-decarbonize-faster" target="_blank" rel="noopener">The Indian government has developed a framework for defining green steel to help decarbonize the hard-to-abate steel industry and make it globally competitive.</a> The Taxonomy of Green Steel, unveiled by the Ministry of Steel and touted as a global first, has set the emissions intensity at 2.2 tons of CO2 equivalent per ton of finished steel. Only steel conforming to this standard will be given a green rating. The threshold limit for defining the star rating of green steel will be reviewed every three years, and the scope of emissions will include Scope 1, Scope 2, and a limited Scope 3 up to finished steel production.
<a href="https://www.mercomindia.com/sjvn-invites-bids-to-enlist-channel-partners-for-1-46-mw-rooftop-solar-systems" target="_blank" rel="noopener">SJVN has issued two tenders to select channel partners for installing a cumulative 1.46 MW capacity of grid-connected rooftop solar systems on residential buildings under the PM Surya Ghar: Muft Bijli Yojana in Himachal Pradesh, Punjab, and Arunachal Pradesh</a>. The last date to submit bids is January 7, 2025. Bids will be opened on the same day. The bid document costs ₹5,900 (~$69.50). Besides supply, installation, and maintenance of the project for five years, the scope of work for both tenders includes identifying potential beneficiaries under the PM Surya Ghar program and making them aware of the program’s benefits. The channel partners will also act as aggregators of the requests received on the program’s national portal.
<a href="https://www.mercomindia.com/sterlite-power-raises-gef-capital-enam" target="_blank" rel="noopener">Sterlite Power, a Mumbai-based power transmission company, has raised ₹7.25 billion (~$87 million) from GEF Capital Partners and ENAM Holdings for its Global Products and Solutions (GPS) business in a primary fundraising round</a>. This round marks the first significant fundraising for Sterlite’s GPS business since its demerger as an independent entity in October 2024. The company aims to use the funds raised to drive its ongoing capital expenditure, grow production capabilities, and accelerate new product development aligned with its renewable energy integration and decarbonization goals. Additionally, the company aims to expand its GPS business beyond the 70 countries it already serves.
<a href="https://www.mercomindia.com/insolation-energy-7-gw-solar-manufacturing-madhya-pradesh" target="_blank" rel="noopener">Jaipur-based solar module manufacturer Insolation Energy has been allotted 45 acres of land by the Madhya Pradesh government to establish a solar manufacturing facility</a>. The proposed facility will have 3 GW solar cell manufacturing, 4 GW solar module manufacturing, and 24,000 metric tons aluminum frame manufacturing capacity. This project will be executed by INA’s subsidiary, Insolation Green Energy, in the Power and Renewable Energy Equipment Zone in Narmadapuram, Madhya Pradesh. The project will be implemented in two phases and require a total investment of ₹18 billion (~$211.98 million). The new manufacturing unit marks INA’s first facility outside Rajasthan and its fourth overall.
<a href="https://www.mercomindia.com/imfa-announces-joint-venture-with-jsw-to-source-70-mw-renewable-energy" target="_blank" rel="noopener">Ferroalloy producer Indian Metals &amp; Ferro Alloys (IMFA) has announced a joint venture with JSW Green Energy to source 70 MW of renewable energy for its smelting operations.</a> IMFA has signed a binding term sheet with JSW Green Energy One and JSW Green Energy Seven, investing ₹832.6 million (~$9.8 million) in a wind-solar hybrid project that combines 50 MW solar and 100 MW wind. The company will also sign a power purchase agreement as a captive consumer valid for 25 years.
<a href="https://www.mercomindia.com/dcm-shriram-to-procure-68-mw-of-renewable-energy-from-jsws-hybrid-project" target="_blank" rel="noopener">Diversified business group DCM Shriram will procure 68 MW of renewable energy from JSW Renew Energy Thirty-Two’s (a special-purpose vehicle of JSW Energy) wind-solar hybrid power project in Kota, Rajasthan</a>. The project will supply power to DCM Shriram’s factories in Kota and is expected to be completed by March 2026. Power procured from the hybrid project will replace 40 MW of coal-based thermal power. DCM Shriram will invest ₹600 million (~$7.06 million) in one or more special purpose vehicles of JSW to set up the wind-solar project for a 26% equity stake. DCM is already sourcing up to 43.8 MW of power from ReNew Power’s wind-solar hybrid project.

Daily News Wrap-Up: CBIC Says No to Warehousing of Imported Solar Modules

<a href="https://sunedisoninfra.com/" target="_blank" rel="noopener noreferrer">SunEdison Infrastructure Limited</a>, a Chennai-based renewable energy company, has entered into a framework agreement to restructure and transfer under-construction commercial and industrial (C&amp;I) and other businesses of the company to SunEdison Energy Solutions Private Limited, a newly formed joint venture.
SunEdison Energy Solutions is a joint venture company of Sherisha Infrastructure Private Limited, Fenice Investment, South Lake One LLC, and a company proposed to be set up in the United Kingdom by Pashupathy Capital Private Limited.
SunEdison Infrastructure Limited has entered into the agreement with the following entities:
i. South Lake One LLC
ii. Fenice Investment Group LLC
iii. Pashupathy Shankar Gopalan
iv. Anil Jain
v. SILRES Energy Solutions Private Limited
vi. Pashupathy Capital Private Limited
vii. Sherisha Infrastructure Private Limited
viii. Sherisha Technologies Private Limited
ix. Avyan Pashupathy Capital Advisors Private Limited
Under the proposed restructuring plan, completed projects and under-development projects will be separated, and the ones under development will be transferred to the joint venture.
SunEdison’s engineering, procurement, and construction (EPC) business, and the trademark “SunEdison” will also be transferred to SunEdison Energy Solutions through a slump sale. It will include:
i. The EPC business of the SunEdison Infrastructure Limited and the Trademark “SunEdison” as a going concern
ii. 100% of the equity shares held by SunEdison Infrastructure Limited in Ishaan Solar Power Private Limited and SILRES Energy Solutions Private Limited
iii. 36% of the partnership interest (constituting 99.99% of the economic interest) of Sherisha Solar LLP
iv. 51% of equity shares of each of Enrecover Energy Recovery Solutions Private Limited and Megamic Electronics Private Limited
A slump sale is when an undertaking is sold without considering the individual values of the assets or liabilities contained within the undertaking.
Additionally, under the terms of the agreement, South Lake One LLC will invest $10 million (~₹752.9 million) in SILRES, a subsidiary of SunEdison Infrastructure Limited, to fund urgent working capital requirements.
SunEdison Infrastructure Limited is a solar energy solutions provider and works as an installer of solar water pumps and rooftop solar, among other service offerings. The company has been in the news on various occasions in the past over several acquisition developments. The subsidiary SILRES Energy is focused mainly on residential and small commercial rooftop segment. The company is focusing mainly on homeowners and micro, small, and medium enterprises (MSMEs), which form a sizeable chunk of the rooftop segment.
Recently, SunEdison <a href="https://mercomindia.com/us-fenice-nvest-sunedisons-solar-subsidiary/" target="_blank" rel="noopener noreferrer">announced</a> that it has entered into a share subscription and shareholders’ agreement with U.S.-based Fenice Investment Group LLC. Under this deal, SILRES Energy Solutions Private Limited was set to sell its shares to the Fenice Investment Group. SILRES Energy was incorporated in October 2019.
In January, Mercom <a href="https://mercomindia.com/sunedison-acquires-sherisha-solar/" target="_blank" rel="noopener noreferrer">reported</a> that SunEdison Infrastructure Limited (formerly YKM Industries Limited) announced that its subsidiary SIL Rooftop Solar Power Private Limited, acquired 100% fully paid-up equity share capital along with voting rights of Sherisha Solar Private Limited.

SunEdison Restructures Its Rooftop Solar Business

The India Energy Storage Alliance (<a href="https://indiaesa.info/" target="_blank" rel="noopener noreferrer">IESA</a>) has submitted comments and recommendations to the Ministry of Power (<a href="https://powermin.nic.in/" target="_blank" rel="noopener noreferrer">MoP</a>) on the proposed draft for Electricity (Amendment) Bill, 2020. It has proposed a policy framework for energy storage in the Electricity Act.
After consulting over 100 energy storage players, IESA submitted a letter to the Ministry in response to the notification it had issued in April 2020. The Ministry had issued a draft proposal for the amendment of the Electricity Act 2003, to address issues such as contract enforcement, national renewable energy policy, renewable and hydropower purchase obligation, open access, adoption tariff, and payment security mechanism, among others as previously <a href="https://mercomindia.com/electricity-act-amendment-draft/" target="_blank" rel="noopener noreferrer">reported</a> by Mercom.
IESA added that the proposed amendment has tried to address a series of challenges faced by the sector and provided measures to improve regulatory discipline, private sector participation, next-generation reforms, and financial health of the distribution companies (DISCOMs).
Debi Prasad Dash, the executive director, IESA, said, “We have proposed the Ministry to have a clear policy framework regarding energy storage in the Act. India has emerged as one of the fastest-growing markets for renewable energy and energy storage technologies could be the key enabler for renewable energy integration and grid stability.”
He added that defining energy storage under the Electricity Act could be helpful to start ancillary services and frequency regulation through energy storage as a flexible asset.
“It will also help to enable electric vehicles (EVs) charging infrastructure, V2G (vehicle to grid) concepts, and microgrid integration with expanded grid connectivity in the long run,” Dash said.
IESA also pointed out that several current issues and technological developments in recent years were missing from the amendment.
Recommendations
IESA has suggested that the Electricity Act should define terms that are used widely but currently remain undefined, such as renewable energy, net metering, cogeneration, storage, energy banking, must-run status, renewable energy certificate (REC), reliability, flexibility, grid balancing.
It has also requested the Ministry to define energy storage appropriately in the Electricity Act.
“With the Ministry of New and Renewable Energy (MNRE) releasing multiple tenders that include storage and with the National Mission on Transformative Mobility and Battery Storage looking to set up 50 GW advanced energy storage manufacturing, it is highly recommended to
include direction from the Electricity Act to frame policy framework required for adopting storage technologies in suitable areas,” IESA suggested.
Further, it has recommended that instead of a hydro purchase obligation, storage purchase obligation (SPO) should be included. It added that SPO could comprise various existing and emerging, cost-effective solutions that provide appropriate flexibility.
“DISCOMs should be free to choose a specific form of procurement, either hybrid renewable energy and storage or renewable energy and storage, independently,” stated the letter.
On the quality of power, IESA has suggested that it should be the duty of every supply licensee to ensure power quality as per the norms laid out by the relevant authority.
IESA recommended the creation of new services and markets, such as ancillary services, which need to be enabled by the relevant authorities within two years.
Referring to the National Smart Grid, IESA has suggested that all states should produce roadmaps to enable consumer production participation, renewable energy integration, future grid connectivity with microgrids, guaranteed supply, power quality, and dynamic load management.
However, IESA has demanded that Section 42 of the Electricity Act, which provides a minimum threshold on contract demand, should be removed, especially for EV charging when the aggregated contract demand is more than 1 MW.
“Currently, the policy allows for open access to avail renewable energy within the state only after paying the cost component to DISCOMs as fixed by the state electricity regulatory commission (SERC). This clause should be relaxed as market forces would then ensure competition and drive in systemic efficiency,” it added.
A previous report <a href="https://mercomindia.com/energy-storage-emerging-markets-irena/" target="_blank" rel="noopener noreferrer">published</a> by the International Renewable Energy Agency (IRENA), showed how electricity storage technologies could be used for several applications in the power sector ranging from e-mobility and behind-the-meter applications to utility-scale
In January 2020, the <a href="https://mercomcapital.com/product/2019-q4-annual-funding-ma-report-storage-grid-efficiency/" target="_blank" rel="noopener noreferrer">M&amp;A report</a> by Mercom Capital revealed that in the year 2019, global venture capital funding for battery storage, smart grid, and efficiency companies totaled to totaled $2.3 billion compared to $2.8 billion raised in 2018.
Image credit: Kevin Fok / CC0

IESA Rallies for Inclusion of Energy Storage Policy Framework in Electricity Act

Bolivia has signed the framework agreement of the International Solar Alliance (<a href="https://isolaralliance.org/Index.aspx" target="_blank" rel="noopener noreferrer">ISA</a>), joining hands with India towards a common goal of sustainability.
The ISA is an <a href="https://mercomindia.com/isa-international-intergovernmental-organization/" target="_blank" rel="noopener noreferrer">Indian initiative</a> that was jointly launched by Prime Minister Modi and former French President Hollande on November 30, 2015, in Paris, on the sidelines of COP21, the UN Climate Conference. On <a href="https://mercomindia.com/isa-international-intergovernmental-organization/" target="_blank" rel="noopener noreferrer">December 6, 2017</a>, ISA became a treaty-based international intergovernmental organization after Guinea ratified the organization’s framework agreement.
With the joining of Bolivia, a total of 74 countries have signed the framework agreement of the ISA. The agreement between Bolivia and ISA was signed during President Ram Nath Kovind’s visit to Bolivia. Bolivia is the second South American country after Argentina to sign the ISA framework agreement. According to a government official, another South American country Paraguay will be soon joining the ISA.
<a href="https://mercomindia.com/argentina-saudi-arabia-agreement-isa/" target="_blank" rel="noopener noreferrer">In February 2019</a>, Argentina and Saudi Arabia signed the framework agreement of the ISA.
<a href="https://mercomindia.com/isa-eu-join-hands-solar/" target="_blank" rel="noopener noreferrer">Recently,</a> <a href="https://isolaralliance.org/Index.aspx">ISA</a> and the European Union signed a joint declaration for cooperation on solar energy. The declaration was inked at the 24th conference of United Nations Framework Convention on Climate Change held in Katowice, Poland.
<a href="https://mercomindia.com/isa-opens-membership-un-member-countries/" target="_blank" rel="noopener noreferrer">In November 2018</a>, the Indian government submitted a resolution to the first assembly of the <a href="http://isolaralliance.org/" target="_blank" rel="noopener noreferrer">ISA</a> for the amendments in the framework agreement to open ISA membership to all the countries that are members of the United Nations.
Before the resolution, the ISA mandate addressed overcoming the obstacles to deploying solar energy at scale through the improved harmonization and aggregation of demand from solar-rich countries located fully or partially between the Tropic of Cancer and the Tropic of Capricorn.
<a href="https://mercomindia.com/isa-conference-india-pledges-1-4-billion-solar-projects-developing-countries/" target="_blank" rel="noopener noreferrer">Earlier</a>, at the <a href="https://mercomindia.com/isa-international-intergovernmental-organization/" target="_blank" rel="noopener noreferrer">inaugural</a> conference of the ISA held in New Delhi, the Government of India pledged $1.4 billion to fund the development of solar projects in 15 African and South Asian countries that are part of the ISA consortium.
Image credit: Adani Solar

International Solar Alliance Gets a New Member: Bolivia

The Rajasthan Electricity Regulatory Commission (<a href="http://rerc.rajasthan.gov.in/main.aspx" target="_blank" rel="noopener">RERC</a>) has issued new amendments to its regulations on renewable energy certificate and renewable purchase obligation compliance framework passed in 2010.
The new regulations will come into effect from April 1, 2019.
Key Highlights 
<ul>
<li>For distribution licensees (DISCOMs), the effective electricity component price applicable to the projects commissioned up to March 31, 2019 and covered under REC mechanism will be equal to the pooled cost of power purchase which has been capped at average of pooled cost of power purchase for Jodhpur Vidyut Vitran Nigam Limited (<a href="http://energy.rajasthan.gov.in/content/raj/energy-department/jodhpur-vidyut-vitran-nigam-limited/en/home.html" target="_blank" rel="noopener">JdVVNL</a>) for the period from FY 2011-12 to FY 2016-17, at ₹3.14 (~$0.045)/kWh.</li>
<li>This rate will remain applicable for its remaining useful life for which power purchase agreement (PPA) will be executed.</li>
<li>Such projects can also use such electricity for self-consumption or sell it at a mutually agreed price to other entities.</li>
<li>Purchase of electricity from the renewable energy generator under REC mechanism will not be counted towards the fulfillment of RPO.</li>
<li>In case the REC mechanism is repealed, the renewable energy generator can sell power to DISCOMs or sell renewable energy at a mutually agreed price to other obligated entities or may use it for self-consumption.</li>
</ul>
In <a href="https://mercomindia.com/rajasthan-energy-price-rec-mechanism/" target="_blank" rel="noopener">February 2019</a>, the RERC had issued a notice inviting suggestions from interested parties before finalizing the REC RPO Compliance Framework Regulations 2019. RERC received comments and suggestions from 83 stakeholders. The commission observed that during the last seven to eight years, the pooled cost has been fluctuating on higher or lower sides as compared to previous years and same had been applicable to all projects covered under the REC mechanism. This has been accepted by all the renewable energy generators covered under the program.
Considering the latest trends in the pricing of renewable energy, submission of the DISCOMs, renewable energy generators and the provision regarding the exercise of powers for the review of pricing methodology, the RERC decided to cap the price of electricity component prospectively.
According to the RERC, as the pooled cost rate is being capped, the DISCOM will monitor the same and file petition for determination of pooled cost when the need arises.
<a href="https://mercomindia.com/rajasthan-solar-rpo-for-fy-2019-20-6-percent/" target="_blank" rel="noopener">Recently</a>, the state commission also issued the fifth amendment to its regulations for RPO. In the newly amended regulations, the commission has revised the renewable purchase obligation for the financial year 2018-19 to 4.75 percent from the earlier rate of 6.75 percent. According to the RERC, revised RPO for FY 2018-19 will be applied retroactively from April 1, 2018.

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