CERC Rejects Plea to Approve Tariff for 300 MW Wind-Solar Projects

MHI Announces Demand Incentives for Electric Trucks Under PM E-Drive

RECPDCL Signs Agreements for Installing 3.32 Million Smart Meters in Gujarat

Rajasthan Commission Approves Tariffs for 82 MW Solar Projects Under KUSUM

Karnataka Sets Benchmark Tariff of ₹3.07/kWh for MW-Scale Solar Projects

Daily News Wrap-Up: MNRE Clarifies ALMM Norms for Behind-the-Meter Projects

REMCL Floats Tender for 3 MW Solar Project in Noida

JK Tyre to Source 5 MW of Renewable Energy from STTY RE

MNRE Issues Clarifications on ALMM Mandate for Behind-the-Meter Projects

Himachal Electricity Regulator Finalizes Resource Adequacy Framework Regulations


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2025/07/amazon_polly_81527.mp3?version=1751866380">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>The Delhi Metro Rail Corporation <a href="https://www.mercomindia.com/delhi-metro-floats-tender-for-5-mw-rooftop-solar-projects" target="_blank" rel="noopener">invited</a> bids to set up rooftop solar power projects with a capacity of 5 MW over its Phase-IV metro rail network. Bids must be submitted by July 31, 2025. Bids will be opened on August 1. The scope of work involves the design, engineering, supply, erection, installation, testing, and commissioning of the solar projects. It also entails providing operation and maintenance services for 25 years.</p>
<p>Mercom India is back with the fifth edition of its Renewables Summit 2025, <a href="https://www.mercomindia.com/mercom-india-summit-2025-session-grid-stability-renewable-energy-integration" target="_blank" rel="noopener">scheduled</a> to take place on July 24-25, 2025, at the Hyatt Regency in New Delhi. India’s electricity grid plays a critical role in the country’s energy transition. As renewable capacity grows, integrating variable energy sources and meeting the demand for round-the-clock clean power has created significant challenges for grid operators. The panel discussion, “<strong>Hybrid Power: Strengthening Grid Stability and Scaling Renewable Integration</strong>,” on July 24, will delve into the challenges of enhancing renewable integration and maintaining grid stability.</p>
<p>NTPC Vidyut Vyapar Nigam <a href="https://www.mercomindia.com/ntpc-issues-tender-to-empanel-epc-service-providers-for-solar-projects" target="_blank" rel="noopener">issued</a> a tender to empanel engineering, procurement, and construction contractors for developing rooftop and ground-mounted solar projects of up to 20 MW per vendor. Bids must be submitted by July 23, 2025. Bids will be opened on July 24. The empanelment will be valid for one year. The scope of work entails the design, engineering, supply, transportation, unloading, storage, installation, testing, and commissioning of the solar projects. It also involves undertaking all the associated electrical and civil works.</p>
<p>Mumbai-based CleanMax and Toyota Tsusho India <a href="https://www.mercomindia.com/cleanmax-toyota-tsusho-to-develop-300-mw-of-renewable-energy-projects" target="_blank" rel="noopener">formed</a> a new entity to develop 300 MW of renewable energy projects by March 2028, to address the clean energy needs of Japanese corporations in India. The joint venture aims to accelerate renewable energy development and facilitate a nationwide sustainable transition to green energy. It will facilitate clean energy adoption through long-term corporate power purchase agreements tailored for Japanese corporations.</p>
<p>The International Finance Corporation (IFC) and Mumbai-based power transmission and renewable energy company IndiGrid <a href="https://www.mercomindia.com/ifc-indigrid-to-develop-180-mw-360-mwh-standalone-bess-project-in-gujarat" target="_blank" rel="noopener">announced</a> a partnership to develop a 180 MW/360 MWh standalone battery energy storage system project in Gujarat. The partnership aims to strengthen Gujarat’s clean energy infrastructure by enhancing grid stability and ensuring a reliable power supply during periods of peak demand. IFC has committed ₹46 billion (~$534.88 million) in long-term financing to IndiGrid through a subscription to listed non-convertible debentures.</p>
<p>Offshore wind energy capacity additions <a href="https://www.mercomindia.com/global-offshore-wind-capacity-additions-fell-26-in-2024-to-8-gw-gwec" target="_blank" rel="noopener">reached</a> 8 GW at the end of 2024, a 26% decrease from the previous year, according to a report by the Global Wind Energy Council. By the end of 2024, a total of 83 GW of offshore wind power projects had been installed worldwide. The decline in installations in 2024 has been attributed to adverse conditions, including a negative policy environment in the U.S., auction failures in the UK and Denmark, as well as grid transmission delays in Europe, which also contributed to the downward trend in offshore wind capacity additions.</p>


Daily News Wrap-Up: Delhi Metro Invites Bids for 5 MW Rooftop Solar Projects


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2023/05/amazon_polly_53698.mp3?version=1684159109">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>Stricter regulations around financing, severe penalties for non-payment of dues, mandatory energy accounting, and auditing are the driving factors behind the considerable improvement in the otherwise sluggish performance of state distribution companies (DISCOM) over the past year.</p>
<p>The Ministry of Power recently <a href="https://www.mercomindia.com/discoms-atc-losses-decline-17-fy22-tough-reforms" target="_blank" rel="noopener">published</a> data notifying a considerable decline in Aggregate Technical and Commercial (AT&amp;C) losses and the gap between the Average Cost of Supply (ACS) and Average Realizable Revenue (ARR), the key indicators of DISCOMs’ performance.</p>
<p>The AT&amp;C losses of DISCOMs declined significantly to ~17% in the financial year (FY) 2021-22 from 22.32% in FY 2020-21. The gap between ACS and ARR declined 68% to ₹0.22 (~$0.002)/kWh in FY22 from ₹0.69 (~$0.008)/kWh in FY21.</p>
<p>A smaller AT&amp;C losses figure suggests that a DISCOM efficiently supplies electricity with minimal leakages. A lower ACS-ARR gap shows that a DISCOM is recouping most of the operational costs.</p>
<p>The improvement comes after the Ministry of Power recently revised norms of lending agencies like the Power Finance Corporation (PFC) and REC, restricting them from financing loss-making DISCOMs without any action plan to improve within a specific timeframe.</p>
<p>On average, India’s DISCOMs face a loss of ₹0.93 (~$0.011)/kWh of input energy, as <a href="https://www.mercomindia.com/state-owned-discoms-continue-to-impede-renewables-growth" target="_blank" rel="noopener">reported</a> by Mercom previously, which means most DISCOMs are perennially dependent on loans for day-to-day operations and are unable to modernize systems and bring in new technology.</p>
<p>In the absence of such loans for clearing the dues they owe to generating companies, DISCOMs are left with no option but to improve the collection, reflected in the narrowing ACS-ARR gap.</p>
<p>The government has identified PFC to be one of the nodal agencies to work on the financial conditions of DISCOMs, with dedicated members placed on the boards of these DISCOMs.</p>
<p>At the recent <a href="https://www.mercomindia.com/event/renewables-summit-2023" target="_blank" rel="noopener">Mercom Renewables Summit 2023</a>, P K Sinha, ED (Projects) at <a href="https://www.pfcindia.com/" target="_blank" rel="noopener">PFC</a>, spoke about the various steps the government has taken under the Revamped Distribution Sector Scheme (RDSS) to make DISCOMs more efficient.</p>
<p>Sinha said, “Under RDSS, grants worth ₹3.3 trillion (~$40.35 billion) are to be disbursed to state DISCOMs for energy efficiency. But the government has now placed a clause for the DISCOMs to reduce their AT&amp;C losses to 12% from 15% if they were to be eligible for these funds. If the efficiency parameters aren’t achieved, the grants are converted into loans, which has made the utilities more vigilant.”</p>
<p>The criterion for grants also mandates DISCOMs to clear all the due subsidies by the end of every financial year and the accounts to be prepaid.</p>
<p>Endorsing Sinha’s view, Hitesh Paliwal, Senior VP &amp; Zonal Head, North Zone Corporate Banking Group at <a href="https://bank.sbi/" target="_blank" rel="noopener">SBI</a>, said, “All the banks under the ministry have been notified to implement these criteria before approving loans for the state DISCOMs, as they approach the banks after state lending institutions turn them away.”</p>
<p>The Ministry of Power has also <a href="https://www.mercomindia.com/discoms-allowed-clear-dues-generators-48-installments" target="_blank" rel="noopener">issued</a> Late Payment Surcharge Rules, which provide that unless the DISCOMs promptly pay for the power drawn from the interstate transmission system, their access to the power exchange will be blocked.</p>
<p>The RDSS program states that funding under the program will be available only if the DISCOM commits to an agreed loss reduction trajectory.</p>
<p>Sinha said, “The DISCOMs have to sign a trajectory agreement promising a definite reduction in AT&amp;C and ARR-ACS gap. This is then monitored and evaluated every quarter by the Ministry in a review meeting that lasts for two days. The minister and senior officers interact with the utility heads to identify challenges and things that can be done to improve their performance.”</p>
<p>With heavy penalties coming into the picture, DISCOMs have improved their payment mechanism over time, thus benefiting the power generators in the process.</p>
<p>Last year, the Ministry of Power made a series of presentations before the 15th Finance Commission. The Commission provided an additional borrowing window to states considering the steps they took to reduce their DISCOMs losses. Union Power Minister R.K. Singh had <a href="https://www.mercomindia.com/power-minister-steps-improve-health-discoms" target="_blank" rel="noopener">outlined</a> the steps the government took to help improve the financial health of the DISCOMs in the country.</p>
<p>The Ministry has also recently <a href="https://www.mercomindia.com/ministry-of-power-subsidy-accounting-framework-discoms" target="_blank" rel="noopener">proposed</a> draft provisions in the Electricity (Amendment) Rules, 2023, for subsidy accounting and payment and a framework to ensure the financial sustainability of DISCOMs.</p>
<p>The inefficiency of DISCOMs threatens the viability of many renewable energy projects due to delayed payments and renegotiations on power purchase agreements.</p>
<p>While the push to privatize state-owned DISCOMs continues to grow, the government is seen implementing various measures to ensure they stay viable long-term.</p>


Strict Financing Rules & Penalties for Non-Payment Help Improve DISCOMs’ Performance

mercom-india-renewables-summit

Get the most relevant India solar and clean energy news.

RECENT POSTS