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Prozeal Green Energy Files Draft Papers for ₹7 Billion IPO

Lower Home Solution Segment Sales Reduce SMA Solar’s Revenue by 20%


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					</table><p>A ₹0.07 (~$0.0008)/kWh trading margin and the discovered tariff have <a href="https://www.mercomindia.com/reias-justify-charging-trading-margin-want-issue-settled-with-discoms" target="_blank" rel="noopener">become</a> a bone of contention between renewable energy implementing agencies (REIAs) and buying entities. As intermediary procurers, REIAs charge a trading margin from state distribution companies and other buying entities. This trading margin is intended to cover the costs for releasing solar, wind, hybrid, energy storage, and firm dispatchable renewable energy tenders, conducting competitive bidding processes and entering into power purchase agreements and power sale agreements with purchasing entities.</p>
<p>Indian solar module and cell exports <a href="https://www.mercomindia.com/indias-solar-exports-decline-16-yoy-in-2024-imports-down-10" target="_blank" rel="noopener">decreased</a> 16% year-over-year (YoY) to $1.5 billion (~₹129.4 billion) in 2024 from $1.8 billion (~₹152 billion), according to recent data published by the Department of Commerce. Indian solar exports in 2024 were dominated by photovoltaic modules, comprising 97.7% of total shipments, while solar cells made up the remaining 2.3%. The U.S. emerged as the primary destination for the export of Indian solar cells and modules, accounting for 97.5% of the exports in 2024.</p>
<p>NHPC <a href="https://www.mercomindia.com/nhpc-tenders-1-2-gw-solar-projects-with-energy-storage-systems" target="_blank" rel="noopener">issued</a> a request for selection to set up 1,200 MW interstate transmission system-connected solar projects with a 600 MW/ 2,400 MWh energy storage system anywhere in India. The tender has a greenshoe option of up to 1,200 MW. Bids must be submitted by April 24, 2025. Bids will open on April 29. NHPC will enter into a power purchase agreement with the selected bidders for 25 years. Bidders must use commercially established and operational technologies to minimize risk and achieve timely project commissioning. They must only use cells and modules from the Approved List of Models and Manufacturers.</p>
<p>In the river-locked villages of Assam, accessible only by boats, people <a href="https://www.mercomindia.com/solar-powered-clinics-on-boats-a-boon-for-people-in-remote-assam-villages" target="_blank" rel="noopener">faced</a> a lack of primary health services for generations. To access basic healthcare, villagers would travel for hours by ferry to reach the nearest hospital, often resulting in delayed care. While reaching the remote villages by boats was possible, storing medicines and vaccines and electricity for the crew quarters, kitchen, and toilets was a problem. That’s when the Centre for North East Studies and Policy Research hit upon the idea of using solar panels. The solar panels power the OPD, laboratory, and refrigerator, as well as the living quarters, toilets, and kitchen.</p>
<p>ONGC <a href="https://www.mercomindia.com/ongc-approves-%E2%82%B933-billion-investment-for-ayana-acquisition" target="_blank" rel="noopener">approved</a> an investment of ₹33 billion (~$384.84 million) in ONGC Green to part-fund the acquisition of a 100% stake in Ayana Renewable Power. The company will subscribe to the rights offer of equity shares issued by ONGC Green. In February 2025, ONGC NTPC Green, a joint venture between ONGC Green and NTPC Green Energy, signed a share purchase agreement to acquire a 100% equity stake in Ayana, a utility-scale renewable energy platform, for ₹195 billion (~$2.3 billion).</p>
<p>China-based solar cell and module manufacturer JinkoSolar’s revenue <a href="https://www.mercomindia.com/jinkosolar-q4-revenue-drops" target="_blank" rel="noopener">dipped</a> 37.1% YoY to RMB20.65 billion (~$2.83 billion) in the fourth quarter (Q4) of 2024, primarily due to a decline in the average selling price of solar modules caused by an industry-wide supply-demand imbalance. Adjusted net loss for the quarter was RMB381.3 million (~$52.2 million), compared with net income of RMB462.7 million (~$63.4 million) in Q4 2023.</p>
<p>Non-banking financial services company Shriram Finance <a href="https://www.mercomindia.com/shriram-finance-secures-150-million-from-adb-for-ev-financing" target="_blank" rel="noopener">secured</a> a $150 million loan from the Asian Development Bank to enhance access to finance for electric vehicles and low-emission commercial vehicles in India. The funding is part of a larger $306 million financing package, which includes an additional $150 million from the Japan International Cooperation Agency and ₹500 million (~$5.83 million) from the Export-Import Bank in India.</p>
<p>Solar module manufacturer Canadian Solar <a href="https://www.mercomindia.com/canadian-solar-misses-expectations-in-q4" target="_blank" rel="noopener">generated</a> $1.52 billion in revenue in Q4 2024, reflecting an 11% YoY decline due to lower solar module average selling prices. Revenue fell short of analysts’ expectations by $45.8 million. The adjusted net loss for the quarter stood at $98.5 million, a sharp increase compared to the $1.3 million net loss recorded in the same period of 2023. Adjusted loss per share was $1.47, missing analysts’ estimates by $1.23.</p>
<p>Germany’s Federal Network Agency (Bundesnetzagentur) <a href="https://www.mercomindia.com/germany-awards-317-mw-rooftop-solar-auction" target="_blank" rel="noopener">awarded</a> a total rooftop solar capacity of 316,964 kW in 143 bids for the latest auction. The lowest awarded bid was €0.079 (~$0.085)/kWh, while the highest successful bid was €0.0969 (~$0.10)/kWh. The weighted average value was €0.0910 (~$0.098)/kWh. Bundesnetzagentur had set the maximum bid value for this auction at €0.104 (~$0.11)/kWh, down from the €0.1125 (~$0.12)/kWh set for tenders held in 2024.</p>


Daily News Wrap-Up: REIAs Defend Trading Margins, Seek Resolution with DISCOMs


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					</table><p>A ₹0.07 (~$0.0008)/kWh trading margin and the discovered tariff have become a bone of contention between renewable energy implementing agencies (REIAs) and buying entities.</p>
<p>As intermediary procurers, REIAs charge a trading margin from state distribution companies (DISCOMs) and other buying entities. This trading margin is intended to cover the costs for releasing solar, wind, hybrid, energy storage, and firm dispatchable renewable energy tenders, conducting competitive bidding processes and entering into power purchase agreements and power sale agreements with purchasing entities.</p>
<p>The four REIAs &#8211; Solar Energy Corporation of India (<a href="https://www.seci.co.in/" target="_blank" rel="noopener">SECI</a>), <a href="https://ntpc.co.in/" target="_blank" rel="noopener">NTPC</a>, <a href="https://www.nhpcindia.com/" target="_blank" rel="noopener">NHPC</a>, and <a href="https://sjvn.nic.in/" target="_blank" rel="noopener">SJVN</a> – have played a key role in India’s renewable energy journey so far. They are expected to contribute significantly to India meeting its non-fossil fuel-based energy installed capacity target of 500 GW by 2030.</p>
<p>The REIAs are <a href="https://www.mercomindia.com/mnre-renewable-energy-bidding-trajectory" target="_blank" rel="noopener">mandated</a> by the Ministry of New and Renewable Energy to issue 50 GW of tenders annually until the end of the financial year (FY) 2028. In the first year after setting renewable energy bidding targets, the REIAs <a href="https://www.mercomindia.com/ntpc-seci-overachieve-renewable-tender-targets-fy24" target="_blank" rel="noopener">exceeded</a> their goal of bidding out 50 GW of solar, hybrid, wind, and round-the-clock projects in FY 2024.</p>
<p>Even though the trading margin is a settled issue, DISCOMs and other buying entities often raise disputes before state electricity regulators. The state utilities say paying the trading margin exacerbates their already strained finances. They also cite the burden of penalties under the Deviation Settlement Mechanism for under- or overdrawal of power.</p>
<p>In a few instances, the state regulators have ruled in favor of the buying entities and reduced the trading margin to ₹0.02 (~$0.00023)/kWh.</p>
<p>REIAs have been arguing that state regulators lack jurisdiction to determine trading margins for interstate transactions. The jurisdiction to deal with the applicable trading margin of the REIAs is exclusively vested in the Central Electricity Regulatory Commission under Section 79(1)(j) of the Electricity Act.</p>
<p><strong>Buffer Against Payment Defaults</strong></p>
<p>According to a senior official of one of the REIAs, it is illogical for buying entities to oppose the trading margin when they are being handheld through the entire process of procuring power for 25 years.</p>
<p>“It is a fee for the services we render. We also take the risk of ‘change in law’ events, payment defaults, late payments, breach of contracts, and inflation. How do we mitigate our risks without this trading margin, which is a revenue stream for us?”</p>
<p>“The ₹0.07 (~$0.0008)/kWh trading margin barely covers our costs, including establishment and litigation expenses. The pressure is building up on us. We must be charging more, actually,” the official said.</p>
<p>They added, “Any payment defaults and delayed payments can impact our credit rating and our ability to raise debt. We need to have the financial muscle to assure our lenders when we seek loans.”</p>
<p>REIA officials argue that the ₹0.07 (~$0.0008)/kWh trading margin constitutes less than 3% of the discovered tariff at a time when solar tariffs are about ₹2.50 (~$0.029)/kWh. “In the states’ own tenders, the discovered tariffs are higher at ₹2.70 (~$0.031)/kWh, and this doesn’t include any trading margin. If this is the reality, it doesn’t make sense for the DISCOMs to make a fuss about having to pay us the trading margin,” one of them said.</p>
<p>The REIAs say trading margins are the norm across trading activity in all sectors. They want the government and all the other stakeholders to discuss the issue to ensure the growth of the renewable energy sector.</p>


REIAs Justify Charging Trading Margin, Want Issue Settled with DISCOMs


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					</table><p>The Ministry of Power (<a href="https://powermin.gov.in/" target="_blank" rel="noopener">MoP</a>) has released draft guidelines for designating a company as a Renewable Energy Implementing Agency (REIA).</p>
<p>Stakeholders can submit their comments and suggestions within 15 days.</p>
<p>REIAs, as market makers, are responsible for carrying out the renewable energy project bidding process, signing power sale agreements with developers and power purchase agreements with the distribution licensees or consumers, and ensuring payment security to developers.</p>
<p>Solar Energy Corporation of India, NTPC, NHPC and SJVN will continue as REIAs.</p>
<p><strong>Eligibility Criteria</strong></p>
<p>The applicant company should have a valid Category-l electricity trading license issued by the Central Electricity Regulatory Commission (CERC).</p>
<p>It must demonstrate a net worth comprising subscribed capital and reserves exceeding ₹5 billion (~$57.6 million). The company should also possess a long-term credit rating of A or higher and receive approval from its board of directors for designation as REIA.</p>
<p><strong>Period and Termination </strong></p>
<p>The company will be designated as a REIA for five years at a time, subject to termination by the government if it does not perform its duties as per the relevant rules and guidelines.</p>
<p>If any company’s designation as REIA is terminated, it must continue to meet its obligations to the developers and procurers as outlined in the bidding documents and agreements until they are concluded.</p>
<p>The MoP may modify these guidelines in consultation with the Ministry of New and Renewable Energy.</p>
<p>The designated REIA must adhere to the procurement process according to the guidelines established under the Electricity Act of 2003. The procurement process should be conducted solely through the e-bidding platforms designated by the CERC.</p>
<p>The Ministry of New and Renewable Energy has <a href="https://www.mercomindia.com/government-bid-solar-wind-fy24" target="_blank" rel="noopener">set</a> a target of project bids of a cumulative 50 GW annually for the financial years 2024-28, which includes at least 10 GW of wind tenders, for the four REIAs.</p>
<p>In the financial year 2024, the REIAs collectively <a href="https://www.mercomindia.com/ntpc-seci-overachieve-renewable-tender-targets-fy24" target="_blank" rel="noopener">issued</a> 53.32 GW of renewable energy tenders, or 6.6% more than the target of 50 GW. Of the 10 GW tenders reserved for wind projects,11.6 GW were issued.</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>


Power Ministry Issues Draft Guidelines to Designate REIAs  


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					</table><p>The designated Renewable Energy Implementing Agencies (REIA) by the Ministry of New and Renewable Energy (<a href="https://mnre.gov.in/" target="_blank" rel="noopener">MNRE</a>) issued 35.51 GW of project tenders until December 2023, against the 50 GW target for the financial year (FY) 2023-24.</p>
<p>The MNRE shared the information in its year-end review published recently.</p>
<p>In April 2023, MNRE <a href="https://www.mercomindia.com/government-bid-solar-wind-fy24" target="_blank" rel="noopener">issued</a> an agency-wise bidding calendar for the REIAs – the Solar Energy Corporation of India (<a href="https://www.seci.co.in/" target="_blank" rel="noopener">SECI</a>), <a href="https://www.ntpc.co.in/" target="_blank" rel="noopener">NTPC</a>, <a href="https://www.nhpcindia.com/" target="_blank" rel="noopener">NHPC</a>, and <a href="https://sjvn.nic.in/" target="_blank" rel="noopener">SJVN</a> &#8211; to deploy 50 GW of renewable energy projects every financial year till FY 2027-28.</p>
<p>The calendar entails a schedule of 30 GW of renewable energy capacity for the first two quarters and 20 GW in the last two quarters.</p>
<p>According to Mercom’s <a href="https://www.mercomindia.com/product/india-solar-tender-tracker" target="_blank" rel="noopener">India Solar Tender Tracker</a>, NTPC accounted for ~42% of the total capacity tendered during the period, SECI accounted for ~34%, SJVN ~13%, and NHPC the remaining 11%.</p>
<p>A total of 4.96 GW of wind project tenders were issued during the period by SECI and NTPC.</p>
<p>Out of the total projects tendered by these REIAs during the implementation period, 7 GW capacity was auctioned between April and December.</p>
<p>According to MNRE, India stood fourth globally in renewable energy installed capacity and fifth in solar power capacity.</p>
<p>During the year, the Ministry also <a href="https://www.mercomindia.com/cabinet-green-energy-corridor-in-ladakh" target="_blank" rel="noopener">approved</a> Interstate Transmission System projects to evacuate 13 GW of renewable energy in Ladakh. POWERGRID is carrying out the front-end engineering design study, which is expected to conclude in December 2024. The agency will then invite bids for the construction of the project in the region.</p>
<p>The Ministry also provided an update on the solar module manufacturing setup under the production-linked incentive program.</p>
<p>It said that FS India Solar Ventures (First Solar) has begun production of thin film solar photovoltaic modules at its facility in Sriperumbudur, Kanchipuram District, Tamil Nadu. Other manufacturers have also started productions at their respective facilities &#8211; ReNew Photovoltaics (ReNew) at Mahindra World City, Jaipur, Rajasthan; Grew Energy at Dudu, Jaipur, Rajasthan; and Tata Power Solar at Gangaikondan, Tirunelveli, Tamil Nadu.</p>
<p>Mercom recently listed the major developments in 2023 that impacted the <a href="https://www.mercomindia.com/major-events-solar-sector-2023" target="_blank" rel="noopener">solar</a> and <a href="https://www.mercomindia.com/top-developments-wind-hybrid-market-2023" target="_blank" rel="noopener">wind-solar hybrid</a> sector in India.</p>


Agencies Tender 35.51 GW Renewable Projects in FY24 Under Bidding Trajectory


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					</table><p>The Ministry of New &amp; Renewable Energy (<a href="https://mnre.gov.in/" target="_blank" rel="noopener">MNRE</a>) has established a dispute resolution mechanism to handle unforeseen disputes between renewable energy power developers/EPC (engineering, procurement, and construction) contractors and implementing agencies.</p>
<p>The revised mechanism prioritizes transparency, impartiality, and independence by forming a three-member Dispute Resolution Committee (DRC) comprising individuals with impeccable integrity.</p>
<p>It will specifically consider cases related to time extensions due to recognized &#8216;force majeure&#8217; events, unforeseen circumstances not covered by contractual agreements, and disputes unrelated to time extensions.</p>
<p>In case of all disputes, whether or not covered by agreements or contracts, the application must be made first to the renewable energy implementing agency (REIA). REIA would pass speaking orders on such requests to ensure the renewable projects are set up. If the applicant party is not satisfied with the orders of REIA, it can appeal to the DRC.</p>
<p>To initiate an appeal against a decision made by the REIA, developers/EPC contractors must submit an application along with a prescribed fee. The fee structure varies depending on the type of dispute and the presence of a performance bank guarantee. In cases where the appeal is successful, the collected fee will be refunded if recommended by the DRC and approved by the government.</p>
<p>The DRC can convene meetings with a minimum of two members.</p>
<p>The DRC will review referred cases and provide recommendations to the MNRE within 21 days. The MNRE, in consultation with the Integrated Finance Division, will review the recommendations and make a final decision within 21 days of receiving them.</p>
<p>The dispute resolution mechanism will also extend to power purchase agreements between state/union territory governments/entities and developers, provided they agree to bear the DRC&#8217;s sitting fees and associated expenses.</p>
<p>The procedural guidelines for the Dispute Resolution Mechanism are as follows:</p>
<ul>
<li>The DRC will convene at least once every week, provided there are pending cases/applications to be resolved. The Secretary (DRC) of the REIA will ensure that DRC meetings are scheduled in a manner and frequency that adheres to the 21-day decision period.</li>
<li>In cases where the DRC cannot decide within the 21-day timeframe, the Secretary (DRC) appointed by the REIA will inform MNRE and may request an additional 14 days for the DRC to decide.</li>
<li>The DRC will be free to interact with relevant parties involved in the case and record their views. The presentation of the case before the DRC will not include lawyers. The REIA can present their views and arguments on the applicant&#8217;s pleas. If necessary, the DRC may interact with MNRE, with the MNRE&#8217;s Division handling the Dispute Resolution Mechanism acting as the ministry&#8217;s nodal point.</li>
<li>As per the ORM/DRC Order issued by MNRE, if the developers/EPC contractors wish to appeal the REIA&#8217;s Order, they must do so within 21 days of the REIA&#8217;s Order. Any adverse financial impact resulting from the REIA&#8217;s Order should be put on hold for 21 days after its issuance. If an appeal is not filed within 21 days or is rejected due to insufficient fee payment, the REIA may take appropriate action. No coercive action should be taken on cases brought before the DRC until the final disposal of the appeal by the DRC and MNRE, where applicable.</li>
<li>In cases falling under the DRM/DRC Order issued by MNRE, which pertains to disputes between entities under States and Union Territories and renewable developers, the role of the nodal agency will be assumed by the Secretary (DRC), SECI.</li>
</ul>
<p>Last March, the Ministry of Power <a href="https://www.mercomindia.com/power-project-conciliation-committees" target="_blank" rel="noopener">introduced</a> a conciliation mechanism for settling contractual disputes regarding power projects implemented by central public sector undertakings and developers under the administrative control of the ministry.</p>
<p>Subscribe to Mercom&#8217;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&#8217;t miss any critical updates from the renewable industry.</p>


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