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					</table>The Asian Development Bank (<a href="https://www.adb.org/" target="_blank" rel="noopener">ADB</a>) has approved a $148.5 million loan to enhance, upgrade, and climate-proof the electricity distribution system in Sikkim and improve the power supply&#8217;s reliability, quality, and resilience.
The project aims to improve the livelihoods of at least 1,100 women, including self-help groups, producer groups, and individual businesses, through the installation of customized renewable energy systems and vocational skills training.
It will deploy solar energy systems and energy-efficient equipment in 24 primary healthcare sub-centers, enhancing rural healthcare facilities&#8217; capacity to provide inpatient treatments, especially during winter.
&#8220;This project fully aligns with Sikkim&#8217;s Power for All initiative, guaranteeing uninterrupted, high-quality electricity access around the clock for households, industries, businesses, and the public. Moreover, it complements the Government of India&#8217;s Revamped Distribution Sector Scheme by bolstering the distribution network, thereby enhancing operational efficiency and financial viability of the distribution sector in the state,&#8221; stated ADB Principal Energy Specialist Jaimes Kolantharaj.
ADB said the project will support the efficient transfer and integration of renewable energy into the distribution system and improve electricity access in rural areas and businesses, thereby boosting economic opportunities, ensuring productivity, and improving living standards.
The initiative is expected to modernize Sikkim&#8217;s power distribution system by installing approximately 770 kilometers of climate-resilient medium-voltage underground and/or covered conductors.
Additionally, 580 kilometers of outdated and low-capacity bare conductors will be replaced to increase network capacity.
The project also involves upgrading 26 power substations with a supervisory control and data acquisition system, installing 15,000 units of public street lighting in remote areas, and conducting electricity conservation and safety awareness programs in 28 villages.
ADB will support the development of a financial sustainability strategy and a plan to establish Sikkim&#8217;s Power Department (PDS) as an independent entity to enhance the sector&#8217;s financial stability.
It will assist PDS in creating a power distribution master plan, integrating geographic information systems and distribution system modeling, and establishing a real-time monitoring control center for improved power management.
ADB recently <a href="https://www.mercomindia.com/adb-%E2%82%B912-5-billion-currency-bond-finance-green-projects" target="_blank" rel="noopener">raised</a> ₹12.5 billion (~$150 million) through green bonds.
ADB has also financed several of India&#8217;s clean energy projects in the past. Last December, it <a href="https://www.mercomindia.com/adb-200-million-loan-enhance-power-efficiency-uttarakhand" target="_blank" rel="noopener">loaned</a> $200 million to enhance Uttarakhand&#8217;s electricity supply and enable the state&#8217;s transition to clean energy sources.
It also <a href="https://www.mercomindia.com/adb-approves-250-million-loan-indias-power-sector" target="_blank" rel="noopener">approved</a> a loan of $250 million to strengthen India&#8217;s power sector. The funds would be used to enhance the financial performance of electricity distribution companies and enable an environment conducive to private sector investment.

ADB Approves $148 Million Loan for Modernization of Sikkim’s Power Distribution

The Sikkim Renewable Energy Development Agency (<a href="https://sikkim.gov.in/departments/energy-and-power-department/sikkim-renewal-energy-development-agency-sreda" target="_blank" rel="noopener">SREDA</a>) has issued a tender to empanel vendors to develop 2 MW of grid-connected residential rooftop solar projects in Sikkim under  Phase-II of the Grid-Connected Rooftop Solar Program of the Ministry of New and Renewable Energy (<a href="https://mnre.gov.in/" target="_blank" rel="noopener">MNRE</a>).
The last date to submit online bids is December 8, 2021. Bids will be opened on December 29. The pre-bid meeting will take place on December 7.
Bidders must submit ₹1,500 (~$20)/kW for the quoted capacity as an earnest money deposit.
The bids are invited under six categories. The rooftop solar capacity under Category A is 1 kW. For categories B and C, the capacity is above 1 kW to 2 kW and above 2 kW to 3 kW, respectively. The capacity for categories D, E, and F is 3 kW to 10 kW, 10 kW to 100 kW, and 100 kW to 500 kW, in that order.
For all categories combined, the total allotted capacity is 2 MW, and bidders can apply for a minimum of 200 kW and a maximum of 500 kW under the capital expenditure (CAPEX) model.
<img loading="lazy" decoding="async" class="alignnone size-full wp-image-30753 aligncenter" src="https://mercomindia.com/wp-content/uploads/2021/11/Sikkim-Tender.png" alt="Sikkim Tender" width="560" height="223" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/11/Sikkim-Tender.png 560w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/11/Sikkim-Tender-300x119.png 300w" sizes="(max-width: 560px) 100vw, 560px" />
The scope of work includes identifying rooftops, designing, engineering, manufacturing, supply, storage, erection, testing, and commissioning of grid-connected rooftop solar systems. The successful bidders must also provide comprehensive operation and maintenance (O&amp;M) services for five years.
The successful bidders must commission the projects within six months from the allocation or 15 months from the MNRE approval, whichever is earlier.
Sikkim&#8217;s micro, small, and medium enterprises (MSMEs) are exempted from technical and financial eligibility requirements.
For Categories A and B, eligible bidders should have installed and commissioned at least 50 kW of grid-connected rooftop solar capacity. They must have a minimum average annual turnover of ₹15,000 (~$199.65)/kW for the quoted capacity in any of the last three financial years. Their net worth should be equal to or more than ₹5,000 kW (~$66.55)/kW for the quoted capacity.
For Categories C, D, E, and F, bidders must have installed and commissioned not less than 100 kW of grid-connected rooftop solar capacity. They should also have a minimum average annual turnover of ₹25,000 (~$332.56)/kW for the quoted capacity in any of the last three financial years. Their net worth should be equal to or more than ₹15,000 (~$199.65)/kW for the quoted capacity.
Rooftop solar installations up to 3 kW will qualify for a 40% subsidy. Installations from 3 kW to 10 kW will get a subsidy of 40% for the first 3 kW and 20% for the remaining capacity. Central financial assistance will be restricted to 20% for common facilities up to 500 kW for group housing societies and residential welfare associations.
Earlier this month, Jharkhand Bijli Vitran Nigam Limited <a href="https://mercomindia.com/jharkhand-empanel-agencies-residential-rooftop-solar/" target="_blank" rel="noopener">issued</a> a tender to empanel agencies to develop 25 MW of residential rooftop solar systems under the capital expenditure (CAPEX) model.
Subscribe to Mercom&#8217;s <a href="https://mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener">India Solar Tender Tracker</a> to stay on top of tender activities in real-time.

Sikkim Floats Empanelment Tender for 2 MW of Residential Rooftop Solar Projects

The Solar Energy Corporation of India Ltd. (<a href="http://seci.co.in/index.php" target="_blank" rel="noopener">SECI</a>) has said it would soon issue a tender for 1,000 MW of solar photovoltaic (PV) capacity to be developed in the states of Sikkim, Arunachal Pradesh, Meghalaya, Mizoram, Manipur, Tripura, Nagaland, and Assam. The ceiling tariff will be set at ₹3 (~$0.042)/kWh.
According to SECI, these solar PV projects will be developed under Jawaharlal Nehru National Solar Mission (JNNSM) Phase-II Batch-IV. The request for selection will be made available online on or after March 20, 2019.
When contacted, a SECI official told Mercom, “The finer details are being worked out and will be made public in the request for selection which will be issued in March 2019.
Executing these projects would be a tough ask in heavily forested areas. When asked if the implementing agency has broken down capacity to be set up in each of these states, the official said, “No, we haven’t done that. Considering the topography and the forested areas, we have left it upon the developers or bidders to decide where they want to set up what capacity.”
This tender will be governed by the viability gap funding (VGF) program guidelines, informed the SECI official. <a href="https://mercomindia.com/mnre-vgf-solar-northeastern-states/" target="_blank" rel="noopener">In January 2019</a>, the Ministry of New and Renewable Energy had received approval by the President of India for the implementation of a subset of the existing VGF program that includes developing 1,000 MW of solar projects in the northeastern states under JNNSM.
According to these guidelines, a ceiling tariff of ₹3 (~$0.042)/kWh, with a maximum VGF of ₹10 million (~$0.14 million)/ MW has been set for this tender. The minimum project capacity at a single location will be 5 MW.
Once this 1 GW of solar PV capacity is installed, it will help these states meet their renewable purchase obligation targets. <a href="https://mercomindia.com/most-states-fail-rpo-targets/" target="_blank" rel="noopener">In a report in January 2019</a>, Mercom pointed out that Mizoram, Nagaland, and Tripura were the only states in northeastern India that had achieved a minimum 60 percent RPO compliance. The RPO compliance of Sikkim was 44.2 percent, Meghalaya was 30.9 percent, Tripura was 12.2 percent, Assam was 1.9 percent, Arunachal Pradesh was 0.6 percent, and Manipur was 0.1 percent.

SECI to Tender 1 GW of Solar Capacity to be Developed Across Eight North Eastern States

According to the Central Electricity Authority (CEA) 2017 Load Generation Balance Report, a study on the anticipated power supply position for financial year (FY) 2017-18, India is expecting a power surplus of 8.8 percent and peak surplus of 6.8 percent in the country during 2017-18.
The CEA estimates that the Eastern region will meet its demand almost entirely while the other four regions will have a surplus varying from 3 percent to 13 percent with 3 percent in the North-Eastern region, 7.4 percent in the Southern region, 9.8 percent in the Northern region, and 13 percent in the Western region. In terms of peak power, the Northern, Western, Eastern, Southern, and North-Eastern regions are likely to have peak surpluses of 6.7 percent, 17.2 percent, 1 percent, 10 percent, and 2.7 percent respectively.
Himachal Pradesh, Rajasthan, Uttar Pradesh, Chhattisgarh, Gujarat, Madhya Pradesh, Maharashtra, Daman &amp; Diu, Dadra &amp; Nagar Haveli, Goa, Odisha, West Bengal, Mizoram, Meghalaya, Nagaland, Tripura, Andhra Pradesh, Tamil Nadu, and Sikkim are likely to have both a peak and energy surplus on an annual basis.
Haryana, Punjab, Karnataka, Telangana, Puducherry, and Manipur are anticipated to have surplus on an annual basis, but only in terms of energy. To meet the peak deficit, these states may arrange power from surplus states. All other states in the country are likely to have a demand-supply gap of varying degrees both in terms of energy and peak power.
The assessment of the anticipated power supply position in the country during FY2017-18 has been made taking into consideration the power availability from various projects in operation, including non-conventional energy sources, fuel availability, and anticipated water availability at hydroelectric projects. A capacity addition of 13,405 MW during the FY 2017-18 comprising 11,366 MW of thermal, 1,539 MW of hydro and 500 MW of nuclear power projects has been considered.
The CEA also stated that during the FY 2016-17, total ex-bus energy availability increased by 4.1 percent over the previous year, and the peak met increased by 5.7 percent. The energy requirement registered a growth of 2.6 percent during the year against the projected growth of 9 percent and peak demand registered a growth of 4 percent against the projected growth of 7.8 percent.
Mercom previously <a href="https://mercomindia.com/indias-power-supply-deficit-0-7-percent-fy2016-17/" target="_blank" rel="noopener noreferrer">reported</a>, India recorded a low power supply deficit of 0.7 percent in the financial year (FY) 2016-17. More than 1,134,631 million units of electricity were produced, which was 7,461 million units less than the targeted 1,142,092 million units, according to CEA. The supply deficit was 0.7 percent and the peak deficit stood at 1.6 percent. A senior official at the CEA told that the deficit in FY2016-17 was lowest since the agency started maintaining the reports in 1992.

India Expects Power Surplus of 8.8 Percent and Peak Surplus of 6.8 Percent in FY2017-18

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Benefits of ~Rs.2.07 Billion ($0.03101 Billion) to be Realized by the State
Sikkim has become the 21st Indian state to join the Ujwal DISCOM (distribution company) Assurance Yojana program. Sikkim is to derive net benefits valued at ~Rs.2.07 billion ($0.03101 billion) through the UDAY program by cheaper funding, reductions in Aggregate Technical and Commercial (AT&amp;C) and transmission losses, and through increased energy efficiency.
The Government of India and the state of Sikkim signed a Memorandum of Understanding (MoU) under the UDAY program for operational improvement of the power distribution department in Sikkim, according to a <a href="http://pib.nic.in/newsite/PrintRelease.aspx?relid=158654" target="_blank" rel="noopener noreferrer">release</a> by the Indian Government.
<a href="https://mercomindia.com/wp-content/uploads/2017/07/India_UDAY_Timeline.png"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-5018" src="https://mercomindia.com/wp-content/uploads/2017/07/India_UDAY_Timeline.png" alt="" width="517" height="443" srcset="https://cms.mercomindia.com/wp-content/uploads/2017/07/India_UDAY_Timeline.png 517w, https://cms.mercomindia.com/wp-content/uploads/2017/07/India_UDAY_Timeline-300x257.png 300w" sizes="(max-width: 517px) 100vw, 517px" /></a>
Becoming a UDAY signatory will pave way for the speedy availability of cheaper power to households in the state that are still without electricity. To date, 21 states and one union territory have joined the UDAY program.
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<div> Image Credit: www.uday.gov.in</div>

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