Competitive Bidding in Renewable Energy Projects · 2019-01-25 · Power Projects from 20 GW to 100 GW by FY 2021-22 under NSM. • ~25.21 GW is the total Installed Capacity as on

Three Day Programme on “Renewable Energy Regulation” – Organised by ASCI

Competitive Bidding in Renewable Energy Projects

21 January 2019

By Ajit Pandit, Director Idam Infrastructure Advisory Pvt. Ltd.

May.2018Idam Infrastructure Advisory Pvt. Ltd. 2

Contents

❑ Background

❑ Experience in Solar Competitive Bidding

❑ Experience in Wind Competitive Bidding

❑ Recent Regulatory & Policy Developments

❑ Challenges & Keys Issues

❑ Way Forward

>20%

3

RE Capacity Addition Targets

NAPCC RE Invest 2015

• NAPCC target of 5% for RE Procurement in 2010

• Target to increase by 1% each year to reach 15% by 2020

• Targets 175 GW by 2022

• Includes 60 GW from Wind, 100 GW from Solar and 15

GW from other RE

• 90% of the targeted RE capacity addition planned from Wind

and Solar source which are inherently variable in nature

2015 2022 2032

Wind Solar Biomass SHP

38

GW

175

GW

440

GW

CEA perspective plan for FY 2032

• CEA has projected RE capacity additions till 2032

• RE penetration level to increase by 8%, 18% up to 20% by 2032

8%

18%

COP -21, Paris

• Reducing carbon emission intensity levels by 35% by 2030

compared to 2005 levels.

• INDCs Commitment- 40% of the total installed power

generation capacity would be from non-fossil fuel sources by

2030.

NTP Amendments

• 8% of electricity consumption shall be from solar energy by

Mar’22 .

• RGO (Renewable Generation Obligation): New coal based

plants to establish RE capacity

• Promotion of micro grids and ancillary services for RE

• Waiver of interstate charges for wind and solar

Idam Infrastructure Advisory Pvt. Ltd. 4

RE Capacity Addition Target – National and State perspective

Technology Potential(MW)

Targets (MW)

Solar 749,000 100,000

Wind 103,000 60,000

Bio-energy 25,000 10,000

Small hydro power

20,000 5,000

Total 897,000 175,000

- 5 10 15 20 25

Maharashtra

UttarPradesh

Andhra Pradesh

Tamil Nadu

Gujarat

Rajasthan

Karnataka

Madhya Pradesh

West Bengal

Punjab

Haryana

Delhi

Bihar

Orissa

Jharkhand

Kerala

Chhattisgarh

North Eastern Region

Jammu & Kashmir

Others

Uttrakhand

Himachal Pradesh

Goa

Telangana

Capacity allocation in GW

Solar

Wind

Biomass

SHP

57%

34%

6% 3%


RE Potential (Wind & Solar) – National and State perspective

44229 MW

2869 MW

33880 MW

55857 MW

10484 MW

84431 MW

18870 MW

1700 MW

Wind Power Potential• Potential of over 302 GW (at 100 meter above ground level)

38 GW25

GW

18 GW

64 GW

62 GW

36 GW

142 GW

6 GW18

GW

5 GW

3 GW

23 GW

11 GW

18 GW

26 GW20

GW

17 GW

9 GW

6 GW

2 GW

111 GW

14 GW

34 GW

11 GW

9 GW

Solar PotentialIndia has potential for 748 GW(considering deployment on 3% of wastelands)


Solar & Wind Sector development at a Glance (1/2)

Wind.Expected capacity addition~4-5 GW/Year to meet

25

35

14

7

23

2

38

16

0 20 40 60 80 100 120

Solar

Wind

GW

Status of Target Achievement of Wind & Solar

Installed Capacity as on 31/12/2018 Under Implementation

Tendered Balance 4 Target

SolarExpected capacity addition~12-15 GW/Year to meet


Solar & Wind Sector development at a Glance (2/2)

Solar PV • Govt. has revised target for Grid Connected Solar

Power Projects from 20 GW to 100 GW by FY2021-22 under NSM.

• ~25.21 GW is the total Installed Capacity as onDecember, 2018, with a historic lowest tariff ofRs. 2.44/kWh in July, 2018.

• Remaining capacity addition is planned to bid outin FY 19 & FY 20 & remaining 2 years for itsexecution.

• 47 Solar Parks of ~27 GW has been approved for21 States upto Nov, 2018. As on date 4.2 GW havebeen installed inside various Solar Parks.

Wind• ~35 GW is the total Installed Capacity as against

60 GW Target as on December, 2018, with ahistoric lowest tariff of Rs. 2.43/kWh.

• FiT regime shifted to CB from 2017, postnotification of Wind CB Guidelines in Dec, 2017.

• W-S Hybrid Policy issued in May, 2018 & 1st 1.2GW Greenfield tender was floated by SECI with aTariff discovery of Rs.2.67/kWh.

• Off-Shore Wind Potential identified off the coastsof Gujarat & Tamil Nadu by NIWE.

• 1st LiDAR was commissioned at Gulf of Khambhat,Gujarat.

• EoI for offshore was floated by NIWE for 1 GWoffshore wind farm at Gulf of Khambhat, Guj.

8

Brief overview of NSM Guidelines notified by MoP

Batch-I and Batch-II Batch-I Batch-II Tranche-I

Batch-III Batch-IV

Target (Utility Scale Solar)

1000 MW to 2000 MW 750 MW 3000 MW 2000 MW 5000 MW FY 16- 1250 MWFY 17- 1250 MWFY 18- 1250 MWFY 19- 1250 MW

Scheme Bundling of power VGF Bundling of power

- -

Others 84 MW (under Migration scheme) & DCR (30% under Solar Thermal)

375 MW (DCR)

500 MW (DCR) 250 MW (DCR)

❑ Capacity Addition of at least 8 to 10 GW per annum is necessary if target of Utility Scale 60 GW by 2022 is to be achieved.

❑ Shortfall in RTPV/Decentralised Solar target of 40 GW may translate to higher target for Utility scale solar.

Phase 1 (2010-13) Phase 2 (2013-17)


Competitive Bidding Experience - Solar


Competitive Bidding framework (Solar) – 1/2

Driver for RE Capacity AdditionJNNSM

Overview

Central Govt.

initiativeExperience summary

Wind Bidding guidelines

Overview

Ove

rarc

hin

g fr

amew

ork

fo

r b

idd

ing

in s

ola

r

Preparatory Activities

•Identification of 100% land at bidding stage-procession within 7 months from PPA

•Clearances (Environmental/Forest)

•Grid Connectivity

Bidding Parameters & Process

•Bid Size 50 MW

•Tariff (single part) based

•Fixed / Escalating

•VGF based

•Single stage two envelope process followed by e-Reverse Auction

Qualification & Bidding conditions

•Past track record; timely execution etc

•Financial criteria - (at least 20% of est. cap cost)

•EMD, PBG

Location

•Solar Park

•Non-Solar Park

•Taluka wise (e.g. Karnataka)

•District/ Substation wise (e.g. Telangana)

Timelines and milestones

•Issue of RFP to PPA – 150 days

•Financial Closure – 7mths from PPA

•CoD – 13 mths from PPA

PPA Terms & conditions

•25 years

•No unilateral termination allowed

•No PPA amendment allowed

Curtailment compensation

Back down- compensation @min 50% of PPA tariff

Grid Unavailability- compensation through excess power procurement

Payment Security

•LC (equiv. of 1 mth billing)

•PSF (equiv. of 3 mths billing)

•SGG (to cover energy charges plus termination compensation) (optional)

Model

•Ground Mounted

•Roof Top

•Capex (Turn-key Basis)

•Developer (or RESCO)

11

JNNSM Phase 1 Bidding

JNNSM Phase I Batch I JNNSM Phase I Batch II

Managed by NVVN NVVN

Capacity AllocationPV: 150 MW (PPA signed only for 140MW) CSP: 470

MWPV: 350 MW (PPA signed for 340 MW)1 CSP: Nil

Allocation methodReverse bidding on benchmark tariff (per kWh): PV:

INR 17.91/kWh, CSP: INR 15.31/kWh

Reverse bidding on benchmark tariff (per kWh):

INR 15.39/kWh

Commissioning time

period PV: 12 months, CSP: 28 months 13 Months

Project allocation Dec-10 Dec-11

No. of bids submitted PV: 343, CSP: 55 PV: 183

Total capacity of the bids

submitted PV:1715 PV:1890

No. of projects selected PV: 30, CSP: 8 PV:26

Maximum capacity by a

bidder PV: 5 MW, CSP: 100 MW 50 MW

Range of the winning

bids

PV: INR 10.95/kWh - 12.76/kWh, CSP: INR 10.49/kWh

- 12.24/kWhPV: INR 7.49/kWh - 9.44/kWh

Weighted average of the

winning bidsPV: INR 12.16/kWh , CSP: 11.48/kWh PV: INR 8.77 / KWh

Projects commissioned PV: 140 MW, CSP: 50 MW PV:330 MW

Prominent project

Developers

PV: All project developers allocated 5 MW, CSP: Rajasthan sun

technique energy pvt. ltd, KVK energy ventures private limited

- each 100 MW

PV: Welspun Solar - 50MW, Azure Power - 35MW,

Green Infra Solar: 35MW

JNNSM Phase 1

Guidelines

Competitive Bidding Experience- JNNSM (Ph-I)

12

❖ Reverse Bidding process is strictly notconformity with S63 provisions.

❖ In Batch-1 (SPV), many bidders (571 MWof 2911 MW) opted for ‘zero discount’

❖ In Batch-2 (SPV), 75 of 184 bidders (960MW of 2185 MW) opted for ‘zerodiscount’

❖ Key success factors and Supportframework for NVVNL framework▪ Assured long term off-take through

trading co. (NVVNL) with bundledpower

▪ Payment security mechanism backed byMNRE

▪ Appropriate Risk allocation andmitigation mechanism

Discount Ps/unit

Discount Ps/unit

13

JNNSM Phase 2 Bidding (Batch-I, II, III)

JNNSM Phase 2 Batch 1 JNNSM Phase 2 Batch 2 JNNSM Phase 2 Batch 3

Managed by SECI NVVN SECI

Capacity Allocation PV: 750 MW CSP-NIL PV:3000 MW CSP-NIL PV: 2000 MW CSP: NIL

Minimum and Maximum

Project Capacity Min: 10 MW, Max: 50 MW Min:10MW Max: 50 MW

Min: 10 MW

Max: Fixed by SECI

Allocation method

Reverse bidding for viability gap

funding demand. Maximum VGF:

INR 25 million/MW

Reverse Bidding on CERC

Benchmark Tariff(through e-

reverse auction)

Reverse Bidding on viability gap

funding (through e-reverse

auction)

Commissioning time

period

13 Months 13 Months of the date of

signing of PPA.

13 Months of the date of

signing of PPA.

Maximum capacity by a

bidder

100 MW 500 MW 250 MW

Range of the winning bids DCR: INR 13.5 million/MW - INR

24.56 million/MW.

Open: INR 1.7 million/MW - INR

13.5 million/MW

DCR- Rs 5.19/ unit- 5.06/unit

Open- Rs 4.80/ unit- 4.34/unit

DCR- INR 13 million/MW – INR

6.5 million/MW

Open-INR 9.99 million/MW -

INR 4.45 million/MW

Prominent project

developers

PV: Azure power - 100 MW, Acme -

60 MW, Waaree energies Pvt. Ltd -

50 MW, Today homes -50 MW

SunEdison- 500 MW, SBG

Cleantech- 350 MW

ACME- 250 MW, Mahindra- 250

MW, Solanergy-250 MW

JNNSM Phase 2

Guidelines

14

Capacity of Solar Power Projects Commissioned or in Pipeline (As on September,2018)

Source: Bridge to India

Q3 2018 saw commissioning of 1,188 MW of utility scale solar capacity, up 65% over Q2 2018

In MW

In M

W

15

Trend of price discovery through Competitive Bidding framework (Solar)

12.20

8.40

3.17

2.84

3.02

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

0

500

1000

1500

2000

2500

Rs/

kWh

MW

Capacity (in MW) Weighted Average Tariff (in Rs/kWh)

16

Competitive Bidding Regime –

Analysis & Key Learnings from the Wind Auction Process

❑ Central v/s State Auctions

17

Overview of Competitive Bidding Framework – Wind Projects

Bid Size

• Inter-State bid capacity 25 MW

• Inter-State bid capacity 50 MW

Preparatory Activities

• Identification of 100% land at bidding stage-procession within 7 months from PPA

• Clearances (Environmental/Forest)

• Grid Connectivity

Bidding Parameters & Process

• Tariff (single part) based

• Single stage two envelope process

• Single stage two envelope process followed by e-Reverse Auction

Qualification & Bidding conditions

• Past track record, timely execution etc.

• Financial criteria - (at least 20% of est. cap cost)

• EMD, PBG

Timelines and milestones

• Issue of RFP to PPA – 105 days

• Financial Closure – 7mths from PPA

• CoD – 18 months from PPA

PPA Terms & conditions

• 25 years

• To declare CUF upfront and allowed one time revision in first year of CoD

• Allowed to repower plant

Curtailment compensation

• Offtake constraints due to Grid Unavailability-

• Offtake constraints due to Back down

Payment Security

• LC (equiv. of 1 Month billing)

• PSF (equiv. of 3 Months billing)

• SGG (to cover energy charges plus termination compensation)(optional)

18

Competitive Bidding – An Experience till now

Competitive Bidding for the Wind Projects was introduced in November, 2016, making the Wind Energy Sectorentirely Market Driven.

Resulted in withdrawal of regulated tariffs & financial aids available to WPDs in form of AD & GBIs.

Positive Outlook – Wind Tariffs fell to an all time low, resulting in greater wind power offtake.

Increased focus on technological innovation by the manufacturers for further bringing down the LevelisedCost & increasing the PLF.

Biggest Challenge pertains to Grid Connectivity allocation and access.

Leads to significant cost overruns during project development & possibly idle capacity post commissioning ofthe project, due to lack of Transmission Connectivity.

Challenges further amplified by Short-Term milestones created by the Competitive Bidding that questions theviability of Wind Projects.


Trend of price discovery through Competitive Bidding framework (Wind)

❑ In the past three years, around ~ 7500 MW of Wind capacity projects has been awarded thru CBG framework.

❑ Price discovery has hit low end ~ Rs 2.5 pu and ticket size of project has varied from 50 MW to 250 MW.

Central Govt. initiative Experience summary

1000

450

1000

500

2000

500

2000

1200 1200

87

1050

₹3.46 ₹3.42

₹2.64₹2.43 ₹2.44

₹2.85

₹2.51

₹2.77 ₹2.76

₹2.51₹2.67

₹0.00

₹0.50

₹1.00

₹1.50

₹2.00

₹2.50

₹3.00

₹3.50

₹4.00

0

500

1000

1500

2000

2500

Tari

ff In

Rs.

pu

Cap

acit

y in

MW

Capacity (MW) Lowest Tariff (in Rs/ kWh)FY 2016-17 FY 2017-18 FY 2018-19

20

Statistics of Developer-wise capacity award (Central Bid and State Bids)

1415

950

850799.9

742.6 739.2

600 575497.5

450375.6

300 300 285 280.1 250 250200 200 200 175

100 75 50 50 30

0

200

400

600

800

1000

1200

1400

1600Developer Capacity (MW) for all 10 Bids

SECI 1 SECI 2 SECI 3 SECI 4 SECI 5 SECI 6 (Hybrid) NTPC Maharashtra Gujarat Tamil Nadu Total

• From the above graph it is seen that Adani Green has the maximum capacity of 1415 MW • The lowest Capacity is with K.P Energy of 30 MW

21

Range of Bid wise awarded tariff

3.46 3.422.85 2.77 2.76 2.67 2.64 2.51 2.44 2.43

3.46 3.42

2.86 2.8 2.76 2.68 2.642.51 2.44 2.43

3.46 3.43

2.87 2.83 2.77 2.69 2.652.52 2.45 2.45

SECI 1 SECI 2 SECI 3 SECI 4 SECI 5 SECI 6(Hybrid)

NTPC Maharashtra Gujarat Tamil Nadu

Bid Wise Tariff (Rs./kWh)

Average

• Average Bid wise quoted tariff range from Rs.3.46/kWh for SECI 1 to Rs.2.43/kWh for Tamil Nadu

• The range of Maximum quoted tariff for State level Bids (vix. Maharashtra, Gujarat and Tamil Nadu) varies from Rs.2.52/kWh (MH) to Rs.2.45/kWh (Gujarat & Tamil Nadu)

22

Wind Projects under Bidding & Planning Calendar

Bid Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Capacity

(MW)1000 2450 2950 4950 6950 7450 11050

2016-17

SECI-1

(1000)

Bid -

Feb-17

LOA-

Mar-17

PPA-

Sept-17

Commiss

ion-

Sept-18

Bid-Oct-

17

LOA-

Nov-17

Bid-Apr-

18

LOA-

May-18

SECI-5

(1200)

Bid-

Sept-18

LOA-

Oct-18

PPA-

Jan-19

Commiss

ion-Jul-

20

NTPC

(1200)

Bid-Aug-

18LOA-

Oct-18

PPA-

Jan-19

Commiss

ion-Jul-

20

Maharas

htra

(500)

Bid-

Sept-18

LOA-

Oct-18

PPA-

Nov-18

Commiss

ion-

May-20

Tamil

Nadu

(450)

Bid-Aug-

17

LOA-

Sept-17

PPA-

Oct-17

Commiss

ion-Apr-

19

2019-20 2020-21

PPA-

May-18

2017-18 2018-19

SECI-2

(1000)

SECI-3

(2000)

PPA-

May-18

Commiss

ion-

May-19

SECI-4

(2000)

Commiss

ion-

Nov-19

PPA-

Aug-18

Bid-Dec-

18

LOA-

Jan-19

PPA-

Mar-19

Commisi

on-Feb-

20

SECI-6

(Hybrid)

(1200)

Commiss

on- Jul-

20

Gujarat

(500)

Bid-Dec-

17

Bid,LOA-

Feb-18

Commiss

ion-Aug-

19

LOA-

Jan-18

PPA-

Feb-18

23

Upcoming Wind Tenders

Date of Announcement

Agency Capacity (MW) RFS Status

24 December 2018

Maharashtra 500 Not Issued

28 November 2018

Tamil Nadu TANGEDCO 500 Not Issued

31 December 2018

SECI-Tranche -6 1200 Issued

Announcements• India finalizes bids for setting up over 8,000 MW wind power projects through SECI & NTPC: RK Singh• Beside above projects, bids of 500 MW each have been finalized by the states of Tamil Nadu, Gujarat,

and Maharashtra

24

Factors affecting Solar and Wind tariff through Bidding Process

❑ Bankability of PPA: Tri-patriate Agreement between, Sate Govts, RBI and SECI.

❑ FDIs: Number of foreign investors are investing aggressively.

❑ Solar Parks: Development of solar parks reduced number of issues.

Project Structuring

• Stakeholder’s Risk

Assessment

• Ring fencing of risks

• Creditworthiness of

the off-takers

Contract Structuring

• EPC Vs Package- Wise

Contracting

• Managing

commercial risks

• Mitigation of

Technical Risks

External Conditions

• Policy Visibility

• Change in Law

• Economic conditions

of the Host Country

(inflation, growth)

• Geo-political

conditions

25

Transparent Tendering process

❑ Industry standard open, transparent

bidding process

❑e-bidding platform

❑Reverse Auction platform.

❑Project specific elaborated technical

specifications.

❑Continuously updating the technical

specs along with market trends and

best practices.

26

Ongoing Challenges faced by Solar & Wind Power

Developers

27

Some other developments related to Bidding

❑ Postponing of solar bids on several occasions, poor response to bids

□ 1 GW solar PV tender by MSEDCL (postponed 4 times)

□ Karnataka (once), allowed 550 MW out of the 1200 MW bid for which prices received were below ceiling rate. But no reverse bidding.

❑ ‘Change in Law’ uncertainty; pass through of safeguard duty of imported panels

□ MNRE later issued a clarification (2/4/18) to the solar bidding guidelines stating, "As per Clause 5.7.2 of said Guidelines, the term 'Change in Law' includes any change in the rates of any Taxes which have a direct effect on the Project. To remove uncertainty, it is hereby clarified that the term 'change in the rates of any taxes' as mentioned in clause 5.7.2 of solar bidding guidelines includes "change in rates of taxes, duties and cess."

❑ Cancellation of solar bids by GUVNL

□ Sep, 2017, 500 MW, price Rs 2.65-2.67/kWh

□ March, 2018, 500 MW, price Rs 2.98-3.06/kWh

□ Eventually GUVNL board resolved to cancel the bid, as “discovered were on the higher side” as per clause 3.22 of the RFS which allows the procurer the right to annul the bidding process “at any stage without assigning any reasons”

28

Delay in meeting Conditions Subsequent

❑MPPMCL□ Procurer cancelled the PPA due “delay in achieving conditions subsequent” and invoked bank

guarantee for the same delay. Essentially a 16 day delay in procuring 100% in the developers name even after a 9 month extension beyond the 210 day timeline.

❑High Court: ReNew Clean Energy Private Ltd Vs MPPMCL & Ors □ Renew Power filed a Writ Petition (12432 of 2017) at the MP HC against the respondent’s stand

regarding cancellation of PPA due to “delay in achieving conditions subsequent” of project and invocation of bank guarantee for the same delay.

□ The Court maintained that MPPMCL‘s invocation of bank guarantee was valid as per clause 2.1 in the PPA, and while the reasons for delay did not come under force majeure, the petitioner had no alternate remedy for the same.

□ Hence, while the prayer of quashing the order of termination was allowed, the HC upheld the invocation of bank guarantee by MPPMCL for the delay.

❑Supreme Court: MPPMCL Vs ReNew Clean Energy Private Ltd & ANR□ In response to this, MPPMCL filed a Civil Appeal at the SC to rescind the PPA. The Court upheld the HC’s

verdict and ordered the respondent to pay the fine of Rs. 119 million in the form of invoked bank guarantee while still setting aside the order on termination of contract.

29

Land Acquisition

Wind Developers who have won projects in Gujarat through SECI Tranche IV 2000 MW are in bind, since they have been asked to achieve Financial Closure by 3 January , 2019 (The same has been extended by 2 Months –News Article)

• Developers after the award of Contract, approached Govt. of Gujarat for leasing of Land.

• With a scarcity of sites that have adequate wind speed in Gujarat, the State Govt. decided that the it will leaseland solely to its own utility , GUVNL and not for Centrally allocated projects, whose power can be suppliedanywhere in the country through ISTS.

“We are keen to have an amicable solution to the issue, but SECI should have first consulted the state as towhether we can give land or not,” said a senior Gujarat government functionary dealing with the issue. “Wewant the entire sector to develop. It is in the overall benefit of the state and the country, so we will allot the land.”

• SECI’s 2,000 MW wind auction in April left its developers to decide where they wanted to locate theirprojects. Since the best wind energy sites are available mostly in Gujarat and Tamil Nadu, most of thewinners sought to set up projects in Gujarat.

• SECI has since conducted another 2,000 MW wind auction in June, followed by a 1,200 MW auction inSeptember, many of whose winners too are keen on Gujarat-based sites.

• Of the total of 7,000 MW of wind projects auctioned by SECI this year, around 3,500 MW are expected to bein Gujarat.

*Source : Economics Times

30

Forecasting & Scheduling Regulations & Status (1/2)

IEGC CERC RRF

Framework

CERC Order deferment of

RRF

CERC postpones commercial

implementation of RRF

CERC Notifies: IEGC & DSM

Reg. with revised

framework

FOR Model F&S

Regulations (State)

SAMAST Report

CERC Procedure for

implementation of F&S

April, 2010

March, 2012

Jan, 2014

August, 2015

Nov. 2015

July. 2016

March. 2017

Salient Features of CERC F&S RegulationsParameter Description

Definition of

Forecasting Error

Error (%) = (Actual Generation – Scheduled Generation) / (Available Capacity) x100

Where Available Capacity is the cumulative capacity rating

of the Wind turbines/Solar inverters that are capable of

generating power in a given time block.

Tolerance limits Within +/-15% band.

Data telemetry Required at the Wind turbine/Solar inverter level.

Parameters such as turbine availability, power output and

real-time weather measurements (Wind speed,

temperature, pressure etc.) must be provided by the

Generator.

Parameter Description

Objective To maintain grid discipline and grid security as

envisaged under Grid Code through commercial

mechanism for deviation settlement through drawl and

injection of electricity by users of the grid.Applicability Applicable to Solar and Wind Generators which are

Regional entities

Forecasting Multiple forecasting by both the RLDC/REMC and Solar

and Wind Generators/ (QCAs on behalf of Gen) for betterconfidence level/lower Forecast Errors.

Frequency of

revision of

schedule per day

1 revision for each time slot of 1.5 Hrs. starting from

00:00 hours of a particular day maximum of 16

revisions during the day.

31

Final Regulations notified by following States…• Andhra Pradesh• Chhattisgarh• Jharkhand• Karnataka• Rajasthan• Tripura• Uttarakhand• Uttar Pradesh• Madhya Pradesh• Maharashtra• Telangana• Assam, Mizoram• Sikkim, Manipur, Meghalaya

• Around 4 states have notified procedures• Implementation of F&S at State level underway

Notified: 17 States; Draft: 5 States

Forecasting & Scheduling Regulations & Status (2/2)


Co-existence of FITs, RECs, CBG framework

Preferential Tariff regime

APPC + REC regime

Competitive Bidding ??

Captive/Third Party RE Wheeling

Renewable Attributes

Electricity Component

Regulated Market determined

Regulated

Market determined

RPO target setting and Enforcement is crucial

RE resource specific RPO target setting and stringent enforcement is crucial

33

Conclusion

❑ Highly competitive price discovery under bidding process, both for solar and wind.

❑ Transmission connectivity and LTA could soon become a bottleneck and major risk factor.

□ New framework to minimise risk, better risk allocation

□ Lesser risk for solar since resource not very site-specific, existence of solar parks.

□ CTU/STU must proactively plan and build transmission corridors for renewable energy, considering

long term targets and likely resource locations.

❑Will soon need newer bidding frameworks for offshore wind, wind-solar hybrids,

wind/solar + storage etc.

❑ Further, will need to prepare for competition across renewables (wind vs solar etc.) and

further still competition across all generation sources (renewables vs coal, gas etc.)

❑ Long term targets and frequent bids necessary until DISCOMs internalize least cost planning

incl. renewables.

Thank You

Mumbai Delhi Kolkata Hyderabad

801, Crystal Plaza,158, CST Road,Kalina, Santacruz (E),Mumbai — 400 098Phone: +91 22 4057 0200

A-31, Second Floor,Lajpat Nagar II, Near Lajpat Metro Station,New Delhi — 110 024Phone: +91 11 4943 4000

1st floor, Globsyn Crystal - Tower IXI - 11 & 12, Block EP, Salt Lake Electronics Complex, Sector-5, Salt Lake, Kolkata - 700091

House No. 3-51, Flat No. 201,Abhishek Towers,(Opp. HAL Gate), Balanagar,Hyderabad — 500 042Phone: +91 40 6999 8062

Contact:

Balawant Joshi +91 98214 21630

Ajit Pandit +91 98211 08222

Email: [email protected]

Documents

Competitive Bidding in Renewable Energy Projects · 2019-01-25 · Power Projects from 20 GW to 100 GW by FY 2021-22 under NSM. • ~25.21 GW is the total Installed Capacity as on