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					</table><p><strong>Here is a recap of important headlines from October 2023:</strong></p>
<p><a href="https://www.mercomindia.com/companies-indian-solar-market-1h-2023/" target="_blank" rel="noopener"><strong>Mercom’s India Solar Market Leaderboard 1H 2023 unveiled solar market leaders in the first half of the calendar year 2023, with several Indian companies securing spots in the top ten rankings for the first time</strong>.</a> Adani Green Energy emerged as the leading utility-scale solar project developer during the first half of 2023, with the most extensive solar project portfolio as of June 2023. Tata Power Solar led rooftop installations for 1H 2023, closely followed by Havells India. During the first half of the year, LONGi Solar took the top spot as the leading module supplier to India.</p>
<p><a href="https://www.mercomindia.com/power-ministry-revises-rpo-targets/" target="_blank" rel="noopener"><strong>The Ministry of Power issued a notification amending the Energy Conservation Act of 2001 to introduce minimum renewable energy consumption targets for designated consumers until the financial year 2029-2030.</strong></a> This amendment is set to come into force on April 1, 2024. Until then, the earlier renewable purchase obligation (RPO) will remain in force. The new and old RPOs have the same total target. However, there is no energy storage obligation in the new RPO. The new RPO includes a distributed renewable energy component, which the earlier one lacked.</p>
<p><a href="https://www.mercomindia.com/slash-renewable-generation-obligation-coal-plants/" target="_blank" rel="noopener"><strong>The Ministry of Power proposed slashing the Renewable Generation Obligation (RGO) for coal or lignite-based power generating stations to a minimum of 6-10% from the previous 40%.</strong></a> The Ministry issued a draft notification on RGO to establish a minimum requirement for electricity generation from renewable sources for coal or lignite-based power generating stations. Earlier rules mandated that coal or lignite-based generating stations beginning operation on or after April 1, 2023, must either establish or procure renewable energy equal to 40% of their thermal generation capacity.</p>
<p><a href="https://www.mercomindia.com/seci-disbursements-september-2023/" target="_blank" rel="noopener"><strong>The Solar Energy Corporation of India paid solar and wind power producers ₹13.04 billion (~$156.6 million) for the energy purchased in September 2023.</strong></a> The payment reflected an increase of 7% from the August disbursements. The disbursements increased by 46% on a year-over-year basis. In September, disbursements to solar and wind developers constituted 83.3% of the total payments made. The nodal agency disbursed a total of ₹15.26 billion (~$183.3 million)  during the month.</p>
<p><strong><a href="https://www.mercomindia.com/coal-ministry-green-hydrogen-pump-storage-projects/" target="_blank" rel="noopener">The Ministry of New &amp; Renewable Energy and the Ministry of Coal announced they would work together to promote green energy initiatives.</a></strong> At a meeting between these ministries, it was decided that MNRE will provide essential technical, policy, and capacity-building support. The Coal Ministry will offer land capital and oversee the implementation of projects related to solar energy, green hydrogen, and other renewable energy programs. A notable outcome of the meeting was the offer to make surplus coal companies&#8217; land available for private investors interested in establishing green hydrogen projects.</p>
<p><a href="https://www.mercomindia.com/government-warns-hidden-charges-on-power-generation/" target="_blank" rel="noopener"><strong>The Ministry of Power warned the states against levying extra fees on producing electricity from different sources in the guise of development fees or charges.</strong></a> It clarified that such supplementary charges, including any form of taxation or duty imposed on electricity generation, covering all types of generation such as thermal, hydro, wind, solar, and nuclear, are illegal and violative of the Constitution. The Ministry had addressed this legal stance in a letter dated April 25, 2023, specifically concerning some states&#8217; imposition of water tax or cess.</p>
<p><a href="https://www.mercomindia.com/venture-capital-funding-for-energy-storage-rises-115-in-9m-of-2023/" target="_blank" rel="noopener"><strong>Global corporate funding in the energy storage sector witnessed a 31% YoY decrease during the first nine months of 2023, with a total of $15.2 billion raised across 94 deals.</strong></a> This contrasts with the $22 billion secured by the sector through 93 deals in the same period last year. The findings were revealed in Mercom Capital Group‘s recently released report titled <a href="https://mercomcapital.com/product/9m-q3-2023-funding-ma-report-storage-grid/" target="_blank" rel="noopener">9M and Q3 2023 Funding and M&amp;A Report for Storage and Grid</a>. Venture capital funding in the sector saw a substantial 115% YoY boost in 9M of 2023, with $8.6 billion across 68 deals.</p>
<p><a href="https://www.mercomindia.com/corporate-funding-solar-rises-55-9m-2023/" target="_blank" rel="noopener"><strong>The total global corporate funding in the solar sector during the nine months of 2023, including venture capital investments, public market funding, and debt financing, reached $28.9 billion, a 55% YoY increase from $18.7 billion.</strong></a> The numbers were revealed in Mercom Capital Group’s newly released 9M and Q3 2023 Solar Funding and M&amp;A Report. Despite the surge in funding amounts, there was a 5% YoY decline in the number of deals. During 9M 2023, 124 deals were announced against 131 deals during the corresponding period in 2022.</p>
<p><a href="https://www.mercomindia.com/solar-auctions-up-86-tenders-rise-5-yoy-q3-2023/" target="_blank" rel="noopener"><strong>Solar power project tenders floated by multiple implementing agencies in India rose 5% YoY to over 13 GW during the third quarter of the calendar year 2023, according to Mercom India Research.</strong></a> Tender announcements were flat QoQ from July to September. The pace of tender announcements has failed to accelerate even after the government issued the 50 GW renewable energy trajectory target for financial years 2024-28. Solar auctions during the quarter witnessed an increase of 86% YoY, with 7 GW projects auctioned. The increase was, however, a marginal 4% compared to the previous quarter.</p>
<p><strong><a href="https://www.mercomindia.com/mnre-%E2%82%B94-billion-roadmap-national-green-hydrogen-mission/" target="_blank" rel="noopener">The Ministry of New and Renewable Energy unveiled a ₹4 billion (~$48.12 million) Research and Development Roadmap for the National Green Hydrogen Mission, seeking to develop an ecosystem that can help commercialize green hydrogen.</a></strong> The roadmap aims to advance fresh materials, technologies, and infrastructure to enhance green hydrogen production, storage, and transportation efficiency, reliability, and cost-effectiveness. It also seeks to prioritize safety and tackle technical obstacles and hurdles in establishing a hydrogen-based economy.</p>


Month in a Minute: Top Headlines from the Indian Renewable Sector in October 2023


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					</table><p>The <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Ministry of Power</a> has announced that any coal or lignite-based thermal generation station coming up on or after April 1, 2023, must either install or procure renewable energy equivalent to 40% of the thermal generation capacity.</p>
<p>Also, any coal or lignite-based thermal generating station with the project&#8217;s commercial operation date between April 1, 2023, and March 31, 2025, would be required to comply with the renewable generation obligation (RGO) of 40% by April 1, 2025.</p>
<p>Any other coal or lignite-based thermal generating plant with the commercial operation date after April 1, 2025, must comply with the RGO by the project&#8217;s commercial operation date.</p>
<p>However, a captive coal or lignite-based thermal generating station will be exempt from the requirement of the RGO if it fulfills the renewable purchase obligation targets.</p>
<p>Last November, the Ministry of Power had <a href="https://mercomindia.com/25-of-generation-capacity-of-coal-plants-must-be-from-renewables/" target="_blank" rel="noopener">proposed</a> that any coal-based thermal generation station coming up after April 1, 2024, must either install or procure renewable energy equivalent to 25% of the thermal generation capacity.</p>
<p>The government is looking to operationalize a provision in the Tariff Policy, 2016, which says that the renewable energy produced by each generator could be sold after bundling it with thermal energy.</p>
<p>Earlier in August last year, the Ministry of Power had <a href="https://mercomindia.com/rules-issued-bundling-renewables-thermal-hydro/" target="_blank" rel="noopener">issued</a> guidelines for competitive procurement of renewable power by thermal and hydropower generators under the Generation Flexibility Program.</p>
<p>The guidelines aim to promote competitive procurement of renewable energy by thermal and hydropower generators to reduce emissions. They seek to standardize processes and provide a risk-sharing framework among stakeholders involved in renewable power procurement under the Flexibility Program.</p>
<p>In 2021, the Ministry of Power and the Ministry of New and Renewable Energy (MNRE) had <a href="https://mercomindia.com/ministry-allows-bundling-renewables/" target="_blank" rel="noopener">issued</a> revised guidelines for thermal power generation companies to either set up renewable energy generation capacities themselves or through developers by inviting bids and supplying power to consumers under existing power purchase agreements. The benefits of bundling renewable energy with thermal would be shared between the generator and distribution companies or other procurers on a 50:50 basis, the Ministry of Power had said.</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>


Coal-Based Thermal Plants Must have 40% of Generation Capacity from Renewables

<p>The Ministry of New and Renewable Energy (MNRE) has set a target of adding 20,450 MW of grid-connected renewable energy capacity in the financial year 2017-18. In a written reply to a question in Rajya Sabha, Piyush Goyal, the Minister for Power, <a href="http://pib.nic.in/newsite/PrintRelease.aspx?relid=153951" target="_blank" rel="noopener noreferrer">stated</a> that 14,300 MW of renewable energy has been connected to the grid in the last two and half years. The Minister also disclosed new targets set by MNRE for the coming financial years.</p>
<p><a href="https://mercomindia.com/wp-content/uploads/2017/06/23Nov2016-mNre-tagt.png"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-4443" src="https://mercomindia.com/wp-content/uploads/2017/06/23Nov2016-mNre-tagt.png" alt="" width="428" height="328" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2017/06/23Nov2016-mNre-tagt.png 428w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2017/06/23Nov2016-mNre-tagt-300x230.png 300w" sizes="(max-width: 428px) 100vw, 428px" /></a></p>
<p>The Minister further noted the various incentives and programs undertaken by the MNRE and Ministry of Power to calm developers’ fears and make growth in renewable energy sector sustainable; these include:</p>
<ul>
<li>Amendments in the National Tariff Policy for strong enforcement of Renewable Purchase Obligation (RPO) and for providing Renewable Generation Obligation (RGO).</li>
<li>Setting up exclusive solar parks.</li>
<li>Development of power transmission network through Green Energy Corridor project. The MNRE has <a href="http://mercomcapital.com/pgcil-seeks-$1-billion-loan-from-adb-to-set-up-green-energy-corridor" target="_blank" rel="noopener noreferrer">directed</a> the Power Grid Corporation of India (PGCIL) to undertake strengthening of the grid and transmission infrastructure in the country.</li>
<li>Identification of large government complexes/buildings for rooftop projects. To spur rooftop installations on government buildings, the Solar Energy Corporation of India (SECI) has laid out an incentive program in place for developers based on project completion status.</li>
<li>Provision of rooftop solar and 10 percent renewable energy as mandatory under Mission Statement and Guidelines for development of smart cities.</li>
<li>Amendments in building bye-laws for mandatory provision of rooftop solar for new construction.</li>
<li>Infrastructure status for solar projects.</li>
<li>Raising tax free solar bonds.</li>
<li>Making roof top solar a part of housing loan by banks/National Housing Bank (NHB).</li>
<li>Incorporating measures in Integrated Power Development Scheme (IPDS) for encouraging distribution companies and making net-metering compulsory.</li>
<li>Raising funds from bilateral and international donors as also from the Green Climate Fund to achieve the target.</li>
<li>Creation of Surya Mitra Skill Development Program for installation and maintenance of the solar projects.</li>
</ul>
<p>Mercom had previously reported that cumulative solar installations in India have reached 8,728 MW as of the end of October 2016 with <a href="http://mercomcapital.com/1965-mw-of-solar-projects-commissioned-in-india-in-current-financial-year" target="_blank" rel="noopener noreferrer">1,965 MW</a> commissioned in the current financial year, until October.</p>
<p>This year the achievable target looks challenging as the renewable energy sector is facing issues and inconsistencies including; insufficient transmission infrastructure, curtailment, and poor financial health of distribution companies (DISCOMs) leading to delayed payments to developers.</p>
<p>An official at MNRE said, “the target fixed for the coming years is not improbable, the MNRE will come up with incentives and once the GST comes into force, developers will find projects becoming viable. The transmission network is set for a massive upgradation.”</p>
<p>The official added that, the DISCOMs will start to recover now as the effect of Ujwal DISCOM Assurance Yojana (UDAY) program will start showing coupled with an upgraded transmission network, power losses will be curtailed.</p>
<p>According to Mercom’s <a href="http://bit.ly/MercomIndiaAug2016Form" target="_blank" rel="noopener noreferrer">India Quarterly Report</a>, banks and financial institutions have allotted about Rs.788 billion (~$11.8 billion) in funding for clean energy projects, of which Rs.335 billion (~$5 billion) have been released as of the end of March 2016. Twenty-three public sector and seven private sector banks, along with four public sector and two private sector non-banking financing companies (NBFCs) have committed to finance 76.3 GW of renewable energy projects totaling Rs.3,820 billion (~$57 billion) over five years through green commitment certificates.</p>


MNRE Targets 20 GW of Grid-Connected Renewable Energy Capacity Addition in FY 2017-18

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