Daily News Wrap-Up: PFC’s Tender to Evacuate 1.5 GW of Renewable Power

New electricity rules propose to remove the transmission license mandate for large consumers

July 3, 2023


PFC Consulting invited bids to develop an interstate transmission system to evacuate 1,500 MW of power from renewable energy projects in Maharashtra’s Solapur special economic zone. The project will be developed on a build, own, operate, and transfer basis. The last date to submit the bid online is August 28, 2023. Bids will be opened on the same day. Within ten days from the date of the issuance of the letter of intent, the selected bidder, on behalf of the transmission service provider, must furnish a contract performance guarantee of ₹150 million (~$1.83 million).

The Ministry of Power issued the Draft Electricity (Amendment) Rules, 2023, to introduce changes to the requirement of transmission licenses for captive and bulk power consumers and capping the additional surcharge for open access consumers at 50% of the wheeling charges. The amendments are expected to enhance the efficiency and transparency of the electricity sector. The draft proposal will be open for stakeholder comments till July 28, 2023.

Telecommunications Consultants India invited bids for the empanelment of charging point operators to commission electric vehicle charging stations at various locations in the national capital region on a revenue-sharing model. The select operator should oversee the charging stations’ operation and maintenance for one year. The work has been divided into two lots consisting of 50 and 100 charging stations, respectively. The last date to submit the bids is July 18, 2023. The bids will be opened the next day.

The World Bank Group’s Board of Executive Directors approved $1.5 billion in financing to accelerate the development of low-carbon energy in India by scaling-up green hydrogen projects and promoting climate finance for clean energy investments. The funding operation titled First Low-Carbon Energy Programmatic Development Policy Operation is the first in the series of investments by the World Bank to support India’s energy transition through 2070.

Energix Renewables, a U.S.-headquartered independent power producer, closed two project financing transactions totaling $520 million with Santander Corporate & Investment Banking (Santander CIB) and Morgan Stanley Renewables to develop six utility-scale solar projects in the U.S. The financing deals involve a consortium led by Santander CIB, providing a construction and term loan facility of $260 million, while Morgan Stanley acts as a tax equity investor with a commitment of $260 million.

The International Renewable Energy Agency, in a recent report, revealed a method used to calculate the cost of capital for clean technologies to help understand the drivers of renewable costs. The cost of capital is the minimum rate of return or profit a company must earn before generating value. It is a significant determinant of the total price to purchasers of electricity from renewable power generation technologies. The report notes that if assumptions used for the cost of capital are not accurate – over time, between countries or technologies – then the cost of electricity might be significantly misrepresented and result in poor policy making.