Important Headlines from the Indian Solar Market in April 2019

April recorded significant financial activity in the sector along with some important orders by state authorities


April 2019 was a busy month for the domestic solar industry with state electricity regulatory commissions issuing orders aimed at providing relief to solar project developers. During the month, a few solar EPC firms also announced their plans for initial public offering. State regulatory agencies continued to penalize DISCOMs for noncompliance of renewable purchase obligations (RPO), and REC inventories remained low in the month

Here is a recap of major news highlights from the last month:

The Maharashtra Electricity Regulatory Commission approved a 16 MW solar project at Gavankund in Amaravati district to be set up as a pilot under the Mukhyamantri Saur Krishi Vahini Yojana.

Clean Solar Power, a step-down subsidiary of Hero Future Energies Global Ltd., will receive a debt financing of up to $43.3 million from International Financial Corporation for a 250 MW greenfield solar project located in Rajasthan’s Bhadla.

In Bihar, distribution companies have been penalized by the state electricity regulatory commission for being unable to fulfill the RPO target.

The trading in renewable energy certificates slumped in April 2019 due to low inventory but the RECs, both solar and non-solar, traded at high prices due to demand-supply reversal.

In Rajasthan, the state electricity regulatory commission set ₹3.93 (~$0.056)/kWh (without AD benefit) as the tariff for a 5 MW solar PV project.

Tata Power, one of India’s largest power producer, said it would not build any new coal-fired power projects and the majority of its power capacity expansion will happen through renewable energy.

In a comprehensive analysis, Mercom explored how the cancellation of completed solar PV auctions by central and state government agencies is affecting the sentiment in the sector.

The Maharashtra Electricity Regulatory Commission has asked Maharashtra State Electricity Distribution Co. Ltd. to reduce ₹0.18 (0.0025/kWh) from the discovered tariff for solar projects if the bidders have not paid safeguard duty.

CleanMax Solar raised ₹2.75 billion (~$39 million) in investment from the United Kingdom Climate Investments LLP for business expansion and development of a nationwide network of solar farms for corporates.

After paying GST of 12% on renewable energy certificates, renewable energy project developers who are part of the REC mechanism have approached the Delhi High Court to provide relief in the matter and stop the levy of GST on RECs.

Sterling and Wilson has filed for a ₹45 billion (~$646 million) IPO. In India, Sterling and Wilson has an EPC portfolio of 3,634.34 MW, consisting of 158 solar power projects, out of which, 152 solar power projects with an aggregate capacity of 3,164.34 MW are commissioned.

Gensol Engineering Limited, a company that provides engineering, procurement, and construction and advisory services for solar projects in India is targeting to raise over ₹130 million ($1.88 million) from its IPO.

India’s power supply deficit stood at 0.6% during the financial year 2018-19, just 0.1% down from the figures reported during FY 2017-18.

In Tamil Nadu, providing relief to solar project developers, Tamil Nadu Electricity Regulatory Commission has warned the state load dispatch center that it cannot curtail solar generation.

Image credit: Adani