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Hazoor Multi Projects Secures EPC Contract for 200 MW Solar Project at Khavda

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Serentica Floats EoI for Land for 5 GW Solar Projects in Rajasthan

GCF Approves $200 Million for ADB’s India Clean Energy Program

IEX Green Energy Market Jumps 30% YoY in June  

Daily News Wrap-Up: Delhi Metro Invites Bids for 5 MW Rooftop Solar Projects

Bajel Projects Wins Renewable Energy Transmission EPC Order

$1.2 Trillion Needed for Battery Storage to Support Renewables by 2034: Report

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					</table><a href="https://www.mercomindia.com/rajasthan-invites-bids-solar-projects" target="_blank" rel="noopener">Rajasthan Urja Vikas and IT Services has invited bids from developers to set up 8,000 MW solar power projects in the state</a>. The last date for the submission of bids is June 24, 2024. Bids will open the same day. Bidders must submit ₹29,500 (~$353.75) as the cost of the document fee and ₹500,000 (~$5,996) + 18% GST as the bid processing fee.
<a href="https://www.mercomindia.com/discom-dues-april-drop" target="_blank" rel="noopener">State distribution companies owed power generators ₹652.16 billion (~$7.81 billion) in total dues for the monthly billing cycle in April 2024</a>, according to the Ministry of Power’s payment ratification and analysis portal PRAAPTI. The dues for the March billing cycle amounted to ₹778.57 billion (~$9.32 billion). The current outstanding dues, excluding the latest monthly dues, are ₹239.93 billion (~$2.87 billion).
<a href="https://www.mercomindia.com/green-energy-trade-iex-april" target="_blank" rel="noopener">The Indian Energy Exchange traded 402 million units (MU) of green energy in April 2024, a 44% year-over-year (YoY) increase from 280 MU</a>. The Exchange, in total, traded 9,044 MU of power in the month, marking a 14% YoY increase. During April, the Market Clearing Price in the Day Ahead Market decreased by approximately 6% compared to the previous year, reaching ₹5.1 (~$0.061)/kWh. Sell bids on the Exchange, including both the Day Ahead Market and Real-Time Market, saw a notable 21% YoY increase for the month.
<a href="https://www.mercomindia.com/indian-oil-subsidiary-1-gw-renewable" target="_blank" rel="noopener">Indian Oil Corporation (IOCL) has decided to form a wholly-owned subsidiary to undertake low-carbon, clean, and green energy businesses</a> with an equity investment of ₹13.04 billion (~$15.63 million). IOCL has committed itself to installing 1 GW of renewable energy projects, including standalone ground-mounted solar, standalone onshore wind, or wind-solar hybrid projects, at a cost of ₹52.15 billion (~$625.38 million).
<a href="https://www.mercomindia.com/adani-green-secures-400-million-in-rajasthan-and-gujarat" target="_blank" rel="noopener">Adani Green Energy has secured a $400 million green loan for its under-construction 750 MW solar power projects in Rajasthan and Gujarat</a> from a consortium of five international banks. The consortium will provide financing for projects that will come online by November this year. The 500 MW project being developed in Rajasthan has a long-term power purchase agreement with the Solar Energy Corporation of India. The second project, with a capacity of 250 MW, is a standalone merchant power project implemented at Gujarat’s Khavada renewable energy cluster.
<a href="https://www.mercomindia.com/adani-greens-from-new-projects-surge" target="_blank" rel="noopener">Renewable energy company Adani Green Energy generated revenue of ₹28.06 billion (~$336.29 million) in the fourth quarter of the financial year 2023-24</a>, an increase of 4.89% year-over-year (YoY) from ₹26.75 (~$320.5 million). The company recorded a net profit of ₹3.1 billion (~$37.2 million), an increase of 21% YoY, compared to ₹2.56 billion (~$30.7 million).
<a href="https://www.mercomindia.com/fortum-exits-indian-solar-market" target="_blank" rel="noopener">Finland-based energy company Fortum said it is exiting the Indian solar power market after signing an agreement to sell its remaining 43.75% stake in a 185 MW solar portfolio to Gentari Renewables India</a>, a subsidiary of Malaysia-based clean energy firm Gentari. The portfolio consists of four solar projects with a total capacity of 185 MW – a 5 MW Amrit project and 70 MW Bhadla project in Rajasthan, a 10 MW Kapeli project in Madhya Pradesh, and a 100 MW Pavagada plant in Karnataka.
<a href="https://www.mercomindia.com/fire-jinkosolar-cell-facility-china" target="_blank" rel="noopener">A fire broke out at one of JinkoSolar’s silicon wafer slicing and solar cell manufacturing facilities in Shanxi Province, China</a>, on April 26. While no casualties were reported, JinkoSolar stated that the incident could impact its operations and 2024 financial results. The solar manufacturer is shifting production across their other manufacturing sites to minimize disruptions to its supply chain. The Chinese solar manufacturer operates 14 production facilities globally, along with 26 overseas subsidiaries spanning North America, Europe, Asia, Africa, and South America as of the end of 2023.
<a href="https://www.mercomindia.com/eu-772-million-to-green-hydrogen" target="_blank" rel="noopener">The European Commission has awarded approximately €720 million (~$772 million) to seven green hydrogen projects across Europe</a> through the first competitive auction under the European Hydrogen Bank initiative. The winning projects were selected from 132 bids submitted from 17 European countries, totaling over €15 billion (~$16 billion) in requested 800 million budget funds – far exceeding the €800 million budget for this initial auction round. The tender for the projects was floated last November.

Daily News Wrap-Up: Rajasthan’s 8 GW Solar Tender

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					</table>India saw a surge in solar open access installations with the addition of 907 MW in the third quarter (Q3) of 2023, a 36.1% increase over 666 MW in the previous quarter, according to the recently published <a href="http://www.mercomindia.com/product/q3-2023-mercom-india-solar-open-access-market-report" target="_blank" rel="noopener">Q3 2023 Mercom India Solar Open Access Market Report</a>.
The installations showed a growth of 20.6% from the 752 MW installed in the same quarter in 2022.
Maharashtra added the most capacity (26.5%), followed by Karnataka (20.3%) and Tamil Nadu (19.5%). The top five states collectively accounted for 88.5% of the installations during the quarter.
As of September 2023, the country&#8217;s total open-access solar capacity reached 11 GW.
Karnataka maintained its lead, accounting for 33.3% of the cumulative capacity by the end of Q3 2023. Maharashtra and Tamil Nadu followed with 14.1% and 10.3% of the total installed open-access solar capacity, respectively.
The top five states accounted for 72.8% of cumulative open-access solar installations.
Managing Director of Mercom India, Priya Sanjay, commented, &#8220;Developers deploying open access solar projects for commercial and industrial (C&amp;I) consumers have the advantage of faster execution. C&amp;I consumers, eager to seize the opportunity presented by lower prices, promptly initiated and completed projects during the quarter.&#8221;
<img decoding="async" class="aligncenter wp-image-61082 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/Picture1-1.png" alt="" width="100%" height="100%" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/Picture1-1.png 940w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/Picture1-1-300x145.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/Picture1-1-768x371.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/Picture1-1-650x314.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/Picture1-1-624x301.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/Picture1-1-600x290.png 600w" sizes="(max-width: 940px) 100vw, 940px" />
Cost is not the only consideration for consumers to opt for open access solar. The recent push from domestic and international companies to address carbon emissions in business operations across the value chain encouraged them to go for green energy.
&#8220;Many consumers are driven by a commitment to green their supply chains. Some companies, motivated by obligations like the EU&#8217;s Carbon Border Adjustment Mechanism (CBAM), are compelled to report carbon emissions for exporting to Europe. Non-compliance could negatively impact their businesses,&#8221; Priya Sanjay said.
The end of the ALMM mandate relaxation in March 2024 has added to the urgency. The return of the Approved List of Models and Manufacturers in a few months will mean higher project costs.
&#8220;C&amp;I consumers would want to make quick decisions to secure better deals. With the financial year ending for Indian companies in Q1 of the next year, many projects aim for commissioning to claim depreciation and tax benefits,&#8221; she said.
<img decoding="async" class="aligncenter wp-image-61083 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/Picture2.png" alt="" width="100%" height="100%" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/Picture2.png 940w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/Picture2-300x172.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/Picture2-768x440.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/Picture2-650x373.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/Picture2-624x358.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/Picture2-600x344.png 600w" sizes="(max-width: 940px) 100vw, 940px" />
However, some states have significantly lagged in adding more open access solar installations. DISCOMs with progressive thinking recognize the impending increase in power demand and aim to delicately balance demand and power procurement at favorable rates.
Priya Sanjay explained, &#8220;States that successfully navigate this balance actively promote the open access model. In states where DISCOMs are hesitant to lose consumers, they impose excessive charges, rendering the open access model unviable.&#8221;
Also, states with already low retail tariffs offer minimal savings, which dissuades consumers from opting for open access solar.
Karnataka led sales in the Green Day Ahead Market (G-DAM) with a 16.3% share. Maharashtra topped energy procurement from G-DAM, with Damodar Valley Corporation following closely, accounting for 28.4% and 13.8% of total power purchased, respectively.
Renewable Energy Certificates trading on the Indian Energy Exchange (IEX) saw a 59% increase compared to the previous quarter. The volume traded in the Green Term Ahead Market experienced a 55% quarter-over-quarter growth.
As of the end of Q3 2023, there were 12.5 GW of open access solar projects in different stages of development.
Sanjay opined, &#8220;In Rajasthan, a substantial pipeline of solar projects exists, yet uncertainty looms over their execution. The primary obstacle lies in the ambiguous regulations surrounding captive ownership stakes. Despite the availability of land at lower cost and high solar irradiation in Rajasthan, developers are hesitant to proceed due to regulatory challenges and a lack of clarity.&#8221;
Envisioning greater growth, Sanjay noted that, aside from the common land acquisition issue, insufficient sub-stations and poor evacuation infrastructure are impeding many projects, hindering growth.
The report covers a detailed analysis of the solar open access business, retail electricity tariffs, open access charges, and costs for seventeen states.
The &#8220;Q3 2023 Mercom India Solar Open Access Market Report&#8221; report is 73 pages long and covers vital information and data on the market. For the complete report, visit: <a href="https://www.mercomindia.com/product/q3-2023-mercom-india-solar-open-access-market-report" target="_blank" rel="noopener">https://www.mercomindia.com/product/q3-2023-mercom-india-solar-open-access-market-report</a>

Solar Open Access Installations Surge With 907 MW Added in Q3 2023

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					</table>Here are some noteworthy cleantech announcements of the day from around the world:
The Ministry of New and Renewable Energy (<a href="https://mnre.gov.in/" target="_blank" rel="noopener">MNRE</a>) has granted a timeline extension until September 30, 2024, for solar power projects (Tranche I and Tranche II) under Phase II of the Central Public Sector Undertaking (CPSU) program implemented by the Solar Energy Corporation of India (<a href="https://www.seci.co.in/" target="_blank" rel="noopener">SECI</a>). The extension would be granted to projects whose scheduled commissioning date is before September 30, 2024. The extension has been given on account of the supply chain disruptions in the solar sector. The auction for Tranche I was <a href="https://mercomindia.com/seci-auction-cpsu-solar-tender-ntpc-winner/" target="_blank" rel="noopener">held</a> in September 2019, and the auction for Tranche II was <a href="https://mercomindia.com/singareni-collieries-vgf-seci-solar-auction/" target="_blank" rel="noopener">held</a> in January 2020. The MNRE also granted a timeline extension until September 30, 2024, to solar power projects (Tranche III) under Phase II of the CPSU program implemented by the Indian Renewable Energy Development Agency (<a href="https://www.ireda.in/home" target="_blank" rel="noopener">IREDA</a>) on the same grounds. IREDA <a href="https://mercomindia.com/ntpc-sjvn-nhpc-nlc-ircon-win-iredas-5-gw-cpsu-auction/" target="_blank" rel="noopener">conducted</a> the auction for Tranche III in September last year.
Jakson Green, an energy transition platform backed by the <a href="https://www.jakson.com/" target="_blank" rel="noopener">Jakson Group</a>, bagged the engineering, procurement, and construction order for a 121 MW solar power project from <a href="https://amplussolar.com/" target="_blank" rel="noopener">Amplus Solar</a>. Jakson Green will construct the project in Bikaner, Rajasthan, in nearly eight months using about 3,000 single-axis trackers and over 224,448 monocrystalline bifacial solar modules rated 540W. The completed facility will be as large as 386 football fields and is expected to offset over 3.1 million tons of CO2 annually, equivalent to removing 558,100 fuel-engine cars off the road. The project will provide power to commercial and industrial customers on a long-term basis, encouraging the adoption of green energy in India.
The Indian Energy Exchange (IEX) has <a href="https://www.iexindia.com/Uploads/NewsUpdate/14_12_2022IEX%20carbon%20neutral%20certification_Press%20Release.docx_final.pdf" target="_blank" rel="noopener">established</a> a subsidiary called the International Carbon Exchange to facilitate its trading in the voluntary carbon market. The goal of this subsidiary is to reduce global greenhouse gas emissions by 45% by 2030 and help achieve the target of limiting global warming to 1.5 degrees. The exchange platform is expected to provide a strong market signal for investing in sustainable projects and help companies efficiently allocate their capital expenditures towards energy transition.
Larsen &amp; Toubro (L&amp;T), through its power transmission and distribution business, <a href="https://www.bseindia.com/xml-data/corpfiling/AttachLive/00ea0d6f-de28-4f44-a531-4ff31e7cb935.pdf" target="_blank" rel="noopener">bagged</a> multiple engineering, procurement, and construction (EPC) orders in India and overseas. The renewables arm of L&amp;T received an EPC order to develop a 90 MW floating solar project at the Omkareshwar dam reservoir in the Khandwa district of Madhya Pradesh. The company has also been hired to develop distribution infrastructure in western Uttar Pradesh as part of the revamped reforms-linked distribution program. L&amp;T also received an order to establish 400 kV and 225 kV transmission lines in North Africa and to build a 132 kV substation in the coastal town of Bintulu in Sarawak, Malaysia.
NTPC <a href="https://www.pib.gov.in/PressReleasePage.aspx?PRID=1886729" target="_blank" rel="noopener">signed</a> a memorandum of understanding with Tecnimont, the Indian subsidiary of Maire Tecnimont Group, Italy,  to evaluate the feasibility of developing commercial-scale green methanol production facilities at NTPC projects in India. The green methanol project involves capturing carbon from NTPC power plants and converting it into a green fuel with numerous applications, including serving as a base material for the chemical industry, storing renewable electricity, and even being used as a transportation fuel. It is also considered a substitute fuel for maritime fuel applications.

Daily News Wrap-Up: MNRE Extends Timeline for Solar Projects Under CPSU Program

The Indian Energy Exchange (<a href="https://www.iexindia.com/" target="_blank" rel="noopener">IEX</a>), in its recently announced financial results for the fiscal year (FY) 2021-22 and fourth quarter (Q4) FY-22, reported a 50% year-on-year (YoY) increase in profit after tax from ₹2.054 billion (~$26.88 million) to ₹3.09 billion (~$40.43 million).
For Q4 FY22, the exchange reported a profit after tax of ₹884 million (~$11.57 million), a 45% YoY increase from ₹608 million (~$7.96 million) reported in Q4 FY-21.
The revenue for Q4 FY22 stood at ₹1.28 billion (~$16.75 million), a 28% increase from ₹1.003 billion (~$13.12 million) during the same period last fiscal year.
The total traded volume across all market segments during the quarter was 27 billion units (BU), recording YoY growth of about 21%.
The electricity market comprising of Day-Ahead Market (DAM), Real-Time Market (RTM), Term-Ahead Market (TAM), Green Day Ahead Market (GDAM), and Green Term Ahead Market (GTAM) segments contributed 24.8 BU volume during Q4 FY22, recording a 10.5% increase from 22.4 BU during the same period in the previous financial year. The renewable energy and energy-saving certificate segment contributed 2.2 BU during the quarter.
Financial Year 2021-22
The revenue reported for FY22 stood at ₹4.844 billion (~$63.49 million), a 36% increase from ₹3.562 billion (~$46.69 million) reported in FY-21.
The exchange saw a 37% YoY growth in trading during the FY-22 accomplishing 102 BU volume across all market segments. The electricity market contributed 95.6 BU volume and achieved a 29% YoY growth.
The certificate segment comprising Renewable Energy Certificates (REC) and Energy Saving Certificates (ESCerts) contributed 6.4 BU and achieved 813% YoY growth during FY-22.
The volume growth was primarily driven by increasing demand for electricity, flexible and efficient procurement at the exchange&#8217;s competitive prices, and significant traction by the new market segments.
In FY-22, the peak demand met reached 201 GW, a 6% YoY growth, while electricity consumption at 1,370 BU saw about 7.8% YoY growth.
During FY 2021-2022, the IEX <a href="https://mercomindia.com/renewable-energy-trading-grew-517-in-fy-2021-22/" target="_blank" rel="noopener">traded</a> 4,854 million units (MU) of renewable energy, a 517% year-over-year (YoY) growth.
Earlier this month, Central Electricity Regulatory Commission (CERC) <a href="https://mercomindia.com/cerc-orders-power-exchanges/" target="_blank" rel="noopener">directed</a> the power exchanges to re-design their bidding software so that members can submit their buy bids at the maximum price of ₹12 (~$0.16)/kWh for DAM and RTM.
The CERC had recently <a href="https://mercomindia.com/cerc-hydropower-contracts-green-term-ahead-market/" target="_blank" rel="noopener">approved</a> the introduction of hydropower in GTAM following a petition by IEX.

IEX Reports 50% YoY Increase in Profits for FY 2022, Trades 102 BU of Power During the Year

Indian Energy Exchange (<a href="https://www.iexindia.com/Aboutus.aspx?id=Gy9kTd80D98%3D&amp;mid=Gy9kTd80D98%3D" target="_blank" rel="noopener">IEX</a>) traded a record 78 MU (million units) of solar power in April, a 272% surge from the 21 MU traded in March 2021.
The exchange’s real-time power market registered a trading volume of 7,707 MU in April 2021, achieving a 90.2% year-over-year (YoY) growth.
According to the power demand data published by the National Load Dispatch Center, the national peak power demand was at 183 GW, while the peak demand and power consumption registered close to 40% YoY growth.
Green Term-Ahead Market
The green term-ahead market traded a volume of 186 MU during April 2021, including 78 MU in the solar segment and 108 MU in the non-solar segment, achieving a significant 262% month-over-month (MoM) growth.
A total of 34 members participated in the trading process, with distribution utilities from Haryana, Bihar, Uttar Pradesh, West Bengal, Maharashtra, Karnataka, and Telangana, among others, as the key participants. In March, the number of participants was 24.
The market has been facilitating distribution utilities, industrial consumers, and green generators, to trade in renewable energy, IEX said.
The green term-ahead energy marketplace had traded a volume of 51 MU during <a href="https://mercomindia.com/iexs-green-market-trades-21-mu-solar/" target="_blank" rel="noopener">March</a>, with 21 MU in the solar segment and 30 MU in the non-solar sector.
IEX <a href="https://mercomindia.com/iex-launches-daily-weekly-contracts/" target="_blank" rel="noopener">launched</a> daily and weekly green contracts on its green market trading platform in December 2020.
Day-Ahead, Term-Ahead, and Real-Time Electricity Market
The day-ahead market traded 5,699 MU volume in April 2021, witnessing a significant 54% YoY growth. The average monthly price at ₹3.70 (~$0.050)/kWh witnessed a 53% increase over ₹2.42 (~$0.033)/kWh in the corresponding period in 2020.
The term-ahead market comprising intra-day, contingency, daily, and weekly contracts traded 349 MU during the month.
According to IEX, the real-time market saw the highest ever monthly volume of 1,473 MU in April 2021, achieving a 4.2% MoM growth. It also recorded the highest single-day volume of 68.36 MU on April 3, 2021. With sell-side bids at 1.8X of cleared volume, the market continued to have ample availability of power, IEX said.
Cross-Border Electricity Trade
During the month, IEX <a href="https://mercomindia.com/iex-cross-border-trade-strengthen-south-asian-market/" target="_blank" rel="noopener">introduced</a> cross-border electricity trade (CBET) on its platform. The initiative is a step towards building an integrated South Asian regional power market and support the growth of the energy ecosystem in the region. Nepal was the first country to have commenced electricity trade in IEX day-ahead market.
Renewable Energy Certificates
The renewable energy certificate (REC) trading session, which was scheduled for April 29, 2021, did not take place due to the <a href="https://mercomindia.com/trading-renewable-energy-certificates-postponed/" target="_blank" rel="noopener">stay order</a> from the Appellate Tribunal for Electricity (APTEL) in response to the petitions <a href="https://mercomindia.com/cerc-removes-floor-prices-solar-non-solar/">filed</a> by a few renewable energy associations regarding revision in the floor and forbearance prices of RECs.
The next hearing on the APTEL matter is scheduled for July 14, 2021.

Trade Volume of Solar in IEX’s Green Term-Ahead Market Soars in April 2021

Solar power is trading at premiums ranging between ₹0.40 (~$ 0.0054)/kWh and ₹0.60 (~$0.0082)/kWh on the Indian Energy Exchange’s (<a href="https://www.iexindia.com/" target="_blank" rel="noopener noreferrer">IEX</a>) recently launched renewable energy <a href="https://mercomindia.com/cerc-approves-introduction-green-term/" target="_blank" rel="noopener noreferrer">platform</a>, an executive told Mercom.
“IEX launched its green energy power trading platform a little over three weeks ago, and prices are following a pattern similar to conventional power traded at the day-ahead-market – the platform for trading coal-fired and other forms of conventional power,” said Rohit Bajaj, head- business development at IEX.
Last week, prices at the day-ahead-market selling conventional power inched up by almost ₹0.40 (~$0.0054)/kWh. In tandem, green prices also jumped from ₹3.40 (~$0.046)/kWh to ₹3.81 (~$0.052) /kWh.
“We are witnessing robust demand for green power, and the entire quantity on offer is allocated daily.” Said Bajaj.
Over the last three weeks, IEX traded close to 6.5 million units of green power. Amplus power <a href="https://mercomindia.com/?s=amplus" target="_blank" rel="noopener noreferrer">was the first</a> seller to join the platform. Its entire offer from a 150 MW solar power project has been sold since the first day of trading. Amplus’s generation facilities are expected to produce a total of 1,1890 million units of electricity over their 25 years lifeline.
It was followed by Karnataka state utility, entering the market with 100-150 MW of sale offers in a few time slots between 12 noon and 2 pm.
States generating surplus renewable power, including Karnataka, Tamil Nadu, Andhra Pradesh and Telangana, are in the process of joining the platform for selling their excess energy. IEX executives believe they would initiate selling in the next few weeks.
“IEX is also receiving inquiries from small and mini hydel plants, the power from which can be bought to fulfill non-solar Renewable Power Purchase Obligations (<a href="https://mnre.gov.in/solar/rpo/" target="_blank" rel="noopener noreferrer">RPO</a>),” said Bajaj.
On the buy-side, IEX is heavily betting on state utilities requiring green power to fulfill their RPO. It has also received buy orders from consumers in the cement and steel sectors.
Recently Mercom <a href="https://mercomindia.com/government-shifts-focus-solar-manufacturing-rpo/" target="_blank" rel="noopener noreferrer">reported</a> on the RPO status of states. Karnataka, Rajasthan, Telangana, and Andhra Pradesh have exceeded their RPO targets. On the other hand, about 15 states/union territories have an RPO deficit of 75-100%.
“A few corporates are wanting to buy 100% green power while users with seasonal power demand or increased demand during certain times of the day will find the platform useful. The green platform allows a minimum buy and sale of 220 kW power over 50 minutes slot. For the conventional platform, it is 1 MW.
If buyers purchase from the conventional platform, they need to procure Renewable Energy Certificates (REC) to fulfill their RPO. These certificates are ruling at ₹1 (~$0.014)/kWh. A buyer’s power purchase cost then increases by the same amount. In a recent Central Electricity Regulatory Commission (CERC) <a href="https://mercomindia.com/cerc-removes-floor-prices-solar-non-solar/" target="_blank" rel="noopener noreferrer">order</a>, the forbearance (maximum) price for 2020 was reduced to ₹1,000 (~$13.16) for solar and non-solar RECs, down from 2017’s prices of ₹2,400 (~$31.59)/MWh and ₹3,000 (~$39.48) respectively. The floor price is now zero for both solar and non-solar RECs, compared to ₹1,000 (~$13.16) each previously.
The average green power price discovered on the platform was ₹3.32 (~$0.045)/kWh, and it varied between ₹3 (~$ 0.041)/kWh and ₹3.81 (~$0.052)/kWh over the last three weeks.
“These prices are extremely competitive, much below utilities’ power procurement cost, which is around ₹3.60 (~$0.049)/kWh on an average for the country as a whole,” a power sector executive told Mercom.
During the initial days, solar power was trading at around ₹3 (~$0.041)/kWh, a premium of almost ₹0.40 (~$ 0.0054)/kWh over conventional power prices. Initially, not every seller and buyer was aware of the green platform; however, as awareness grew, so did demand. Its premiums over conventional power prices inched up to ₹0.60 (~$0.0082)/kWh.
“Buyers are likely to be ready to pay premiums over conventional prices as long as the difference is less than ₹1 ( ~$0.014)/kWh – the ruling market price for Renewable Energy Certificates,” said an IEX executive.
“There is no dearth of buyers. They are waiting for a good quantum of power to be offered,” Bajaj said.
IEX is expecting sale participation to rise during the year-end because power producers with long term power sale agreements are allowed to sell excess power during this time. Producers with short terms or monthly power sale agreements are likely to find the platform an attractive sale opportunity too.
Traditionally, there was no differentiation between thermal and renewable power sales on the conventional platform. Buyers interested only in renewable energy could not source green power. With the introduction of this green market, these buyers can now fulfill their green energy requirements.
A different market for conventional and green power paves the way for transparent price discovery of electricity based on generation source. Until now, renewable energy (solar or wind) and thermal were being sold at the same price, while they are produced at different costs.
The new trade, along with the <a href="https://mercomindia.com/no-ists-charges-solar-wind-projects/" target="_blank" rel="noopener noreferrer">waiver</a> of inter-state transmission fees announced by the power ministry, is also likely to help the growth of the renewable market.

Buyers Lap Up Solar and Green Power from Indian Energy Exchange’s New Trading Platform

Here are some noteworthy cleantech news and announcements of the day from around the world:
Amplus Solar said that it became the first solar generator to trade solar electricity on India’s Green Term-Ahead Market (GTAM) under the new Central Electricity Regulatory Commission’s norm. The Indian Energy Exchange (IEX) has recently launched the GTAM on its power trading platform. The platform provides channels to renewable energy generators for the sale of renewable energy through which buyers can meet their Renewable Purchase Obligations (RPOs). Companies can also purchase green power from IEX without any geographical limitations to be part of RE100.
Fiji Development Bank (FDB) <a href="https://www.fdb.com.fj/fdbsfirstgcfproject/" target="_blank" rel="noopener noreferrer">announced</a> that the Green Climate Fund (GCF) had approved the bank’s proposal to provide $5 million (~₹370.72 million) for the 4 MW Fiji Agrophotovoltaic project in Ovalau. According to the press release, the project will be equipped with a battery energy storage system. The estimated value of the project is around $10 million (~₹741.36 million). The FDB, GCF, Korean International Co-operation Agency, and Envelops Company Limited would jointly finance the 4 MW project.
San Francisco-based Motive Power System, a sustainable technology firm, <a href="https://www.motivps.com/news/motiv-power-systems-secures-15-million-in-funding-from-gmag-holdings-corp/" target="_blank" rel="noopener noreferrer">said</a> that it secured $15 million funding from GMAG Holdings Corporation. The funding will be made by means of convertible notes that are expected to be converted into a Series C funding round, which Motiv is in the process of raising. With this new financing, Motiv aims to further scale its manufacturing operations, as well as fund technology and geographic expansion. The company delivers all-electric chassis with a software platform for the electrification of medium-duty trucks and buses.
The Green Climate Fund (GCF) <a href="https://www.greenclimate.fund/news/green-climate-fund-board-maintains-climate-momentum-midst-covid-19-approving-usd-8788-million" target="_blank" rel="noopener noreferrer">allocated</a> $878.8 million for its new round of financing. At its board meeting, the members approved 15 sustainable projects, including solar and building resilience in various countries. This would raise GCF’s total portfolio of climate finance to $6.2 billion. It added Afghanistan and Sudan to the list of over 100 countries receiving GCF support to reduce greenhouse gas emissions and enhance climate resilience.
Here is our <a href="https://mercomindia.com/daily-news-wrap-trina-solar-expand-capacity/" target="_blank" rel="noopener noreferrer">previous</a> daily news wrap-up.

Daily News Wrap-Up: Amplus First to Trade on Green Term-Ahead Market

There was a significant increase in the trade volume of both solar and non-solar renewable energy certificates (RECs) in February.
A cumulative sum of 1,299,737 solar RECs was traded on the Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL). Out of the total, 984,157 and 315,580 solar RECs were traded on the IEX and PXIL, respectively.
Compared to January 2020’s REC trading session, there was a huge upsurge in the solar RECs on both the platforms. The momentum has sustained itself from January, which also saw a rise in trade volume.
In January 2020, a cumulative sum of 76,220 solar RECs was traded on the Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL). Out of the total, 39,413 and 36,807 solar RECs were traded on the IEX and PXIL, respectively, according to <a href="https://mercomindia.com/solar-rec-trading-january-2020/" target="_blank" rel="noopener noreferrer">Mercom</a>’s January update.
<a href="https://mercomindia.com/wp-content/uploads/2020/03/Solar-REC-Market-Trading.png"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-18053" src="https://mercomindia.com/wp-content/uploads/2020/03/Solar-REC-Market-Trading.png" alt="Solar REC Market Trading" width="400" height="148" srcset="https://cms.mercomindia.com/wp-content/uploads/2020/03/Solar-REC-Market-Trading.png 400w, https://cms.mercomindia.com/wp-content/uploads/2020/03/Solar-REC-Market-Trading-300x111.png 300w" sizes="(max-width: 400px) 100vw, 400px" /></a>
On the IEX, the sale bid in February 2020, was at 1,014,459 and the buy bid was at 1,094,700. Whereas on PXIL, the sale bid went up to 332,042, and the buy bid was at 365,463, totaling to 315,580.
February 2020 witnessed some reduction in the price of the non-solar RECs when compared with the previous month.
On the IEX, the price of non-solar RECs dropped by ₹400 (~$5.59) from ₹2,200 (~$30.68) to ₹1,800 (~$25.10), a drop of 18.2% compared to January 2020.
<a href="https://mercomindia.com/wp-content/uploads/2020/03/Non-Solar-REC-Market-Trading.png"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-18054" src="https://mercomindia.com/wp-content/uploads/2020/03/Non-Solar-REC-Market-Trading.png" alt="Non-Solar REC Market Trading" width="391" height="190" srcset="https://cms.mercomindia.com/wp-content/uploads/2020/03/Non-Solar-REC-Market-Trading.png 391w, https://cms.mercomindia.com/wp-content/uploads/2020/03/Non-Solar-REC-Market-Trading-300x146.png 300w" sizes="(max-width: 391px) 100vw, 391px" /></a>
However, on the PXIL, the drop in the price of non-solar RECs was ₹50 (~$0.70). In January 2020, the price stood at ₹2,100 (~$29.28). There was a slight dip in February, with the price coming down to ₹2,050 (~$28.59).
A spokesperson of PXIL told Mercom that the price dropped primarily due to the increase in the number of sellers in February 2020.  “There were a few distribution companies who had a big sale, leading to a drop in price,” he added. Also, the deadline for the yearly compliance (March 31) and the price in the last volume are the other reasons,” he added.
On the IEX, a total of 507,153 non-solar RECs were traded with 2,779,466 sale bids and 661,976 buy bids. The month witnessed an increase of 57% on the IEX platform.
On the PXIL platform, the trade volume was 335,520, with 843,886 sale bids and 498,335 buy bids for all RECs issued after April 01, 2017, showing a rise of almost 96.4% in February 2020.
In January 2020, it was reported that the Central Electricity Regulatory Commission <a href="https://mercomindia.com/expiring-solar-non-solar-rec-valid-march-31-2020/" target="_blank" rel="noopener noreferrer">extended</a> the validity of RECs up to March 31, 2020. The Commission stated that the validity of the 9,514 RECs (4,960 solar RECs and 4,960 non-solar RECs) issued before April 1, 2017, which expired in November 2019, needs to be extended.
Image credit: Adani Solar

Solar REC Trading Soars in February 2020

The Supreme Court of India has issued an order allowing the trade in Wind Renewable Energy Certificates (RECs). The highest court in India has removed the stay placed on the Appellate Tribunal’s order.
According to a release, “The Court felt that there should be no problem if Wind RECs were to be traded at the figures given previously.”
Mercom <a href="https://mercomindia.com/cerc-reduces-forbearance-price-solar-recs-rs-2400-36-91mwh/" target="_blank" rel="noopener noreferrer">previously reported</a> that the Central Electricity Regulatory Commission (CERC) issued new forbearance and floor prices for REC (solar, Non-solar).
After the issuance of new forbearance and floor prices for REC trading, many REC generators filed petitions citing losses due to exclusion of vintage multiplier in the new prices. The petitioners first approached the Appellate Tribunal of Electricity (APTEL) to suggest a way to clear the existing REC stock.
While the APTEL agreed to introduce a vintage multiplier, it refused to put a stay on the trading, which led the petitioners to approach the Supreme Court. Upon hearing the petition, the Supreme Court put a stay on REC trading and the new prices introduced by the CERC.
On <a href="https://www.iexindia.com/Uploads/CircularUpdate/26_05_2017Circular%20for%20Suspension%20in%20REC%20trading.pdf" target="_blank" rel="noopener noreferrer">May 26, 2017</a>, the Indian Energy Exchange issued a letter announcing  the official suspension of REC trading. After much deliberation, the Supreme Court has asked the respondents to ensure that any obligated entity purchasing RECs at the new floor price determined by CERC must deposit the difference between the earlier floor price and the present floor price.
It is a welcome news for all stakeholders involved. However, the stay on solar REC trading remains in place, and the hearing on that matter will be held in due course.
Image Credit: Legaleagle86 at en.wikipedia, <a href="http://creativecommons.org/licenses/by-sa/3.0" target="_blank" rel="noopener noreferrer">CC BY-SA 3.0</a> or <a href="http://www.gnu.org/copyleft/fdl.html" target="_blank" rel="noopener noreferrer">GFDL</a>, via Wikimedia Commons

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