Market Intelligence Report

INDIA CLEANTECH
April 03, 2018

Solar Manufacturers Ramp Up Expansion Plans by 4 GW in Contents

Anticipation of Import Tariffs in India Industry News 2
The ongoing solar anti-dumping case and the 70 percent preliminary safeguard duty proposal are Company News 6
prompting various domestic and international players to announce plans to expand their solar Project News 7
manufacturing capacity in India.
Tenders & Auctions 7
These companies are betting that the government will carry on with its plans to support the domestic
solar manufacturing sector by imposing tariffs that would benefit local manufacturers. The sentiment
M&A 9
is evident in the 4 GW of collective capacity expansions that solar manufacturers have proposed for Policy 10
India in 2018.
“Even with all these announcements, there is no guarantee that most of this proposed capacity will actually get built unless a substantial
tariff is imposed on imported components and banks are willing to lend money to build solar manufacturing units,” said Raj Prabhu, CEO of
Mercom Capital Group.
The anti-dumping case has given new wind to the sails of many beleaguered as well as established Indian solar component manufacturers.
Since the filing of the anti-dumping petition last year, Indian manufacturers have been gradually announcing plans to expand their module
and cell manufacturing capabilities. According to Mercom’s India Solar Manufacturing Tracker, so far 28 Indian firms have announced
expansion plans since the initiation of the anti-dumping investigation.
It is also a well-known fact within the industry that the average selling
price (ASP) of Indian cells and modules is not low enough to compete
with the ASPs of their Chinese counterparts, as there is a 10 to 15
percent price difference.
It all began in June 2017 when the Indian Solar Manufacturers
Association (ISMA) filed an anti-dumping petition against solar imports
from China, Taiwan, and Malaysia with the Directorate General of Anti-
Dumping (DGAD) requesting the levy of an interim duty on imports.
Since then, there has been an upsurge in announcements to expand
manufacturing capacity by both Indian and international firms in India.
Then, in December 2017, ISMA filed a petition with the Directorate
General of Safeguards Customs and Central Excise that sought the
imposition of a separate safeguard duty on imported solar cells from

(continued on page 2)

Tariff Order 200 MW Solar Tender Wind Acquisition Deal

The state of Tamil Nadu Sets the Odisha Tenders 200 MW of Solar ReNew Buys Ostro in One of the
New Solar Generic Tariff at C3.11/ Projects with Pass Through Option Largest Renewable Acquisition
kWh for Duties Deals in India
page 3 page 7 page 9

Click here for more Mercom News and Analysis 1
Go to category: Industry Company Project Tenders&Auctions M&A Policy
 Market Intelligence Report
INDIA CLEANTECH
April 03, 2018

China, Malaysia, Singapore, and Taiwan. In a preliminary finding issued in January 2018, the Directorate General of Safeguards Customs
and Central Excise recommended that a 70 percent safeguard duty be imposed on solar cells imported from China and Malaysia for 200
days.
The case is currently under deliberation at the Madras High Court. All of these developments are prompting companies to announce
expansion plans in India as they see the government moving towards an import tariff at the behest of the country’s solar manufacturing
sector.
The planned capacity comes at a time when the ASPs of Chinese modules remain high in India. According to Mercom’s 2017 Q4 and
Annual India Solar Market Update, the ASP of Chinese modules rose to $0.36 (~C23.45)/W in Q4 2017 from $0.35 (~C22.80)/W in Q3 2017,
an increase of four percent quarter-over-quarter.
The increase was less steep than the 14 percent rise in ASP logged from Q2 to Q3, however, module prices increased for a second quarter
in a row.
ISMA recently withdrew its anti-dumping petition but plans to refile it again in April. This means that the possibility of an anti-dumping tariff
will continue to loom over the industry for months. More importantly, manufacturers are betting that a safeguard duty will come to their
rescue in the short-term.
Though these are just announcements, manufacturers want to send a signal to policy makers that they are willing to expand if the right
amount of tariff is imposed to make them competitive. Mar 29

INDUSTRY NEWS
MNRE Entitles Solar Project Developers to Compensation in Case of Change in Law
The Ministry of New and Renewable Energy (MNRE) has amended the guidelines for the tariff-based
competitive bidding process for the procurement of power from grid-connected solar photovoltaic
(PV) projects.
To remove any ambiguity, the MNRE has stated, “Change in the rates of any taxes as mentioned in
clause 5.7.2 of Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power,
from Grid Connected Solar PV Power Projects, includes change in rates of taxes, duties and cess.”
Further, in case a change in law results in any adverse financial loss or gain to the solar power
generator then, under the new amendment, the MNRE has entitled them to compensation by the
other party to ensure that the power generator is not adversely affected.
The amount to be paid and mechanism for the compensation payment will be determined and
effective from the date decided by the appropriate commission.
The MNRE in its order also stated that the term ‘Change in Law’ will refer to the enactment of any
new law or an amendment, modification or repeal of an existing law or the requirement to obtain
a new consent, permit or license. The MNRE has also clarified that the Change in Law will not
include any change in taxes on corporate income or any change in any withholding tax on income or
dividends.
When contacted, an MNRE official told Mercom, “This was required in the current scenario,
stakeholders had been making it known to us (MNRE) that they are unable to account for
uncertainties due to proposed duties or cases that are ongoing. This clause now allays their fears
(continued on page 3)
2
Go to category: Industry Company Project Tenders&Auctions M&A Policy
 Market Intelligence Report
INDIA CLEANTECH
April 03, 2018

and the business can continue as usual. Even our Power Minister, a few days ago, had announced that the bidding rules will be amended
to provide for the new changes in Indian solar ecosystem.”
The amendment comes on the heels of Power Minister R.K. Singh’s recent statement in which he asserted that the government will
ensure that the rules are not implemented retrospectively. “The government will amend the bidding rules to allow the pass through of any
safeguard duty hike,” Singh had said.
Meanwhile in Odisha, the Grid Corporation of Odisha (GRIDCO) has tendered 200 MW of grid-connected solar photovoltaic (PV) projects
with a pass through option for bidders in case there is any change in the statutory laws like anti-dumping or safeguard duty on the solar PV
modules. Apr 03

Karnataka Smart Cities Issue Rooftop Solar Tenders for Government Buildings
Karnataka’s Mangaluru Smart City Limited (MSCL) has issued a tender that calls for the installation of 1,288 kW of grid-connected rooftop
solar photovoltaic (PV) projects on the city’s government buildings. The bid-submission deadline is April 30, 2018.
The successful bidder will be responsible for the design, finance, manufacture, supply, installation, testing, commissioning, as well as the
operation and maintenance of the rooftop solar systems.
Mangaluru Smart City Limited will enter a 25-year Power Purchase Agreement (PPA) with the successful bidder.
The developer will also be responsible for the evacuation of power from the rooftop solar system to the grid in line with the net metering
program.
Another smart city in the state of Karnataka, Shivamogga Smart City, has also issued a tender for 430 kW of grid-connected rooftop solar
PV projects to be established on the city’s government buildings.
The bid-submission deadline is April 21, 2018.
The scope of work includes the design, finance, manufacture, supply, installation, testing, commissioning, as well as the operation and
maintenance of the rooftop solar systems. The projects will be developed under the Renewable Energy Service Company (RESCO) mode.
Last month, Karnataka’s Tumakuru Smart City Limited also tendered 2.7 MW of grid-connected rooftop solar PV projects to be established
on the city’s government buildings. The bid-submission deadline is May 3, 2018.
Although India has so far installed nearly 1.6 GW of rooftop solar capacity, it needs to add 38.4 GW more if it is going to achieve its
targeted goal of 40 GW of rooftop solar capacity by 2022. Of late, designated Smart Cities have begun stepping up their efforts to install
the required efficient infrastructure, including rooftop solar.
That trend was also evident last year, when the municipal corporation of Raipur Smart City Limited tendered 2,155 kW of solar rooftop
systems for development on government buildings in Raipur. Apr 03

Tamil Nadu Sets New Solar Generic Tariff at C3.11/kWh

The Tamil Nadu Electricity Regulatory Commission (TNERC) has issued a new
levelized generic tariff for the procurement of solar power in the state for the financial
year (FY) 2018-19.
TNERC has fixed C3.11 (~$0.0478)/kWh without accelerated depreciation (AD) as the
levelized tariff for solar.
The AD component of the tariff is C0.06 (~$0.00092)/kWh. According to TNERC, the
levelized tariff with AD is C3.05 (~$0.0468)/kWh. The proposed tariff with AD is C1.36
(~$0.0209)/kWh lower than the previous generic tariff of C4.41 (~$0.0677)/kWh with AD.
In 2017, TNERC had set C4.50 (~$0.066)/kWh as the benchmark tariff for solar PV projects and C10.19 (~$0.157)/kWh for solar thermal
projects without AD. TNERC has fixed 25 years as the useful life of a solar project. TNERC has also fixed C35 million (~$537,857)/MW as
the project cost and capacity utilization factor (CUF) at 19 percent for the calculation of the levelized tariff.
(continued on page 4)
3
Go to category: Industry Company Project Tenders&Auctions M&A Policy
 Market Intelligence Report
INDIA CLEANTECH
April 03, 2018

For this tariff order, the TNERC fixed operation and maintenance (O&M) expense of 1.4 percent of capital cost of solar projects with an
escalation of 5.72 percent from the second year.
The current tariff order doesn’t mention solar thermal projects. Mercom had previously reported that with the widespread adoption of solar
PV and no investment or activity in solar thermal (CSP), even after issuing three tariff orders, this year the TNERC proposed to do away
with the exercise of coming up with a generic tariff for solar thermal power projects.
Recently, Mercom reported that TNERC proposed a benchmark tariff of C3.11 (~$0.047)/kWh without accelerated depreciation (AD) for
solar power and C2.86 (~$0.043)/kWh without AD for wind.
Tamil Nadu is already one of the top solar states in India with over 1.7 GW of installed solar capacity, according to Mercom’s India Solar
Project Tracker. Apr 02

Non-Solar REC Trading Continued to Gain Momentum in March 2018

The final month of the renewable energy certificate (REC) trading year witnessed
a spike in non-solar REC trading. However, REC trading witnessed a reversal in
trends during March 2018 when the number of buy bids surpassed the number of
sell bids.
In all, 2,999,978 buy bids and 2,785,204 sale bids were registered in March 2018.
The recorded figures indicate that the demand for RECs is gradually increasing in
India.
Since January 2018, there has been a marked increase in the number of RECs
being traded as entities jump at the chance to purchase the RECs needed to
satisfy their Renewable Purchase Obligations (RPOs) before the end of financial year (FY) 2017-18.
In the March 2018 trading session, the Power Exchange India Limited (PXIL) reported that nearly 690,000 RECs were cleared on PXIL,
giving it a market share of 24 percent and a clearing ratio of 98 percent. According to PXIL, during the year, nearly 1.62 crore RECs were
traded, of which nearly 6,855,000 were traded on the PXIL platform, giving it a market share of 42 percent in the REC segment.
All PXIL bids cleared at a floor price of C1,500 (~$23.4) per REC, the same floor price reported on the Indian Energy Exchange (IEX).
IEX reported that during the March 2018 trading session, a total of 2,256,422 buy bids were received against 2,079,799 sale bids. A total of
1,062 participants traded RECs on the IEX during March 2018, reflecting a marked increase in the total number of participants.
In February 2018, 711 participants participated in REC trading on IEX.
The spike in REC trading followed an October proposal by the Ministry of Power that sought to penalize DISCOMs that fail to secure
enough Power Purchase Agreements (PPAs) to cover 100 percent of their RPO requirements.
RPO compliance is crucial in order for India to meet its aggressive goal of installing 100 GW of solar by 2022. Apr 02

MNRE Revises the Enforcement Date of Quality Control Order 2017

The Ministry of New and Renewable Energy (MNRE) has revised the schedule and the enforcement date for the Solar Photovoltaics,
Systems, Devices, and Component Goods (Requirement for Compulsory Registration under BIS Act) Order 2017, which was issued in
September of last year.
The order will now come into effect in September of 2018.
The MNRE has issued a new order stating, “MNRE had notified the Quality Control (Requirement for Compulsory Registration under
Bureau of Indian Standards Act) Order 2017 vide Government of India Gazette Notification No. 2561 dated September 5, 2017. As per this
notification, the specified standards will come into force upon the expiry of one year from the date of its publication in the Official Gazette.”
Initially the order was scheduled to come into force on September 5, 2018. However, the order was later scheduled to become effective on
January 1, 2018, after the MNRE shortened the waiting period to speed up the process of order enforcement.
(continued on page 5)
4
Go to category: Industry Company Project Tenders&Auctions M&A Policy
 Market Intelligence Report
INDIA CLEANTECH
April 03, 2018

Back in November, when asked why the order was being enforced nine months ahead of its
original commencement date of September 5, 2018, an MNRE official had told Mercom, “Not
much tendering has been done in the past few months, in the new financial year all developers and
tendering agencies will plan their market strategies, it’s better that the policy is in place before a
flurry of activity begins.”
The MNRE official went on to say that implementing the order before the start of the next fiscal year
would give all stakeholders ample time to understand its implications and adjust accordingly.
But it was felt that the date for the enforcement of the Quality Control Order 2017 for quality
assurance must be brought forward to ensure quality control benefits for the entire industry as a
whole, as soon as possible. The enforcement has now been shifted back to the original date of
September 2018.
Mercom recently reported on the dearth of test centers in the country. The announced National
Lab Policy and Quality Control Order are adding a new wrinkle that could slow down project
commissioning, according to solar project developers and manufacturers in the country.
MNRE has also announced that the order pertaining to solar photovoltaic (PV) modules will come
into force on April 1, 2018, except for the fire test which will be effective from July 1, 2018. All of the
test labs will be required to set up fire test facility by July 1, 2018 in line with the specified standards
after BIS approval.
For supplies from April 1, 2018 to June 30, 2018, the representatives of the manufactures will be
required to submit samples to an authorized lab for testing and give a self-certification stating that
the module adheres to the prescribed standards.
In case the sample fails to conform to the Indian standards, the project developer will be penalized
under the provision contained in the Quality Control Order and guidelines of the MNRE.
The MNRE order has also specified that it will bring out a list of test labs approved by BIS by the
end of March, 2018.
For inverter testing, test labs have requested approval of the BIS by March 31, 2018, for the testing
of inverters with capacities up to 100 kW and by September 1, 2018, for capacities more than 100
kW. Mar 27

Bureau of Energy Efficiency Issues Empanelment Tender for ESCOs

The Bureau of Energy Efficiency (BEE) has issued a tender for the empanelment or re-empanelment
of eligible entities as Energy Service Companies (ESCO).
The application submission deadline is April 15, 2018.
BEE is promoting energy efficiency initiatives in the country under the Energy Conservation Act,
2001, including the promotion of energy conservation measures in existing facilities through the
ESCO model.
BEE intends to prepare and maintain a list of empaneled ESCOs with a validity of two years. For
empanelment with BEE, all ESCOs, irrespective of their previous grading validities, will have to
undergo a fresh assessment this year as the criteria for the assessment of ESCOs has now been
revised.
India is moving towards a more efficient energy distribution system. Energy efficiency is as
important as shifting from fossil fuels to renewables. Energy efficient systems lead to reduced costs
and carbon emission. ESCOs generally engage in performance-based contracts with a client firm to
(continued on page 6)
5
Go to category: Industry Company Project Tenders&Auctions M&A Policy
 Market Intelligence Report
INDIA CLEANTECH
April 03, 2018

implement measures which reduce energy consumption and costs in a technically viable manner.
In June 2017, BEE also developed the Energy Conservation Building Code (ECBC) 2017 with technical support from United States
Agency for International Development (USAID) under the U.S.-India bilateral Partnership to Advance Clean Energy – Deployment Technical
Assistance (PACE-D TA) Program.
The ECBC 2017 prescribes the energy performance standards for new commercial buildings to be constructed across India. It provides
current as well as futuristic advancements in building technology to further reduce energy consumption in buildings and promote low-
carbon growth by setting parameters for builders, designers, and architects to integrate renewable energy sources in the building designs
with the inclusion of passive design strategies.
Apart from BEE, Energy Efficiency Services Limited (EESL) is also involved in the enhancement of the energy efficiency sector.
Mercom previously reported that EESL and the Global Environment Facility (GEF) entered into a partnership to launch a $454 million
(~C29.46 billion) project called the “Creating and Sustaining Markets for Energy Efficiency” with a target of mitigating 60 million tons of CO2
equivalent and enabling total direct energy savings of 38.3 million GJ (1 GJ = 277.778 kWh) by 2022 and 137.5 million GJ by 2032. Mar 28

COMPANY NEWS
GCL and SoftBank Form a $930 Million JVC to Enter Indian Solar Manufacturing Sector
GCL-Poly Energy Holdings Limited and SoftBank have entered a Memorandum of Understanding (MoU) to establish a joint venture
company (JVC) for setting up an integrated solar photovoltaic (PV) manufacturing facility in Andhra Pradesh.
The manufacturing facility will be set up for the production and sale of ingots, wafers, cells and modules.
According to the MoU, SoftBank will hold 60 percent outstanding shares of the JVC while GCL-Poly will hold 40 percent. The total
investment for the JVC will be approximately $930 million.
The parties are yet to agree on how the investment amount will be funded, and whether such amount will be funded by debt, equity,
or a combination of both. In the future, shareholdings in the JVC can change if the parties introduce a third joint venture partner to the
transaction.
It is intended that the JVC’s business will involve the establishment of manufacturing facilities for the production and sale of the products
with a cumulative capacity of 4 GW to be implemented in two phases of 2 GW each.
The parties have also agreed to participate in the solar power development business in India and invest in the same shareholding
proportions as in the JVC.
Since December 2017, the solar manufacturing landscape in India has been undergoing an overhaul. Back then, the Ministry of New and
Renewable Energy (MNRE) proposed a slew of subsidies and incentives including direct financial support of more than C110 billion (~$1.7
billion) for manufacturers to expand and upgrade, a 12 GW Central Public Sector Undertaking (CPSU) domestic content requirement
(DCR) program to create robust domestic demand, an increasing DCR requirement from modules to polysilicon by year, 30 percent central
financial assistance, cheaper loans, a custom duty exemption, and cheaper power.
Soon after, Solar Energy Corporation of India (SECI) invited an Expression of Interest (EoI) from prospective manufacturers to set up 20 GW
of integrated solar manufacturing facility in India within a three-year period.
The formation of JVC by GCL-Poly and Softbank is in line with the current trend of expansion in the Indian solar manufacturing sector.
Mercom recently reported that solar manufacturers have ramped up manufacturing and expansion plans by approximately 4 GW. Apr 03

6
Go to category: Industry Company Project Tenders&Auctions M&A Policy
 Market Intelligence Report
INDIA CLEANTECH
April 03, 2018

PROJECT NEWS
Equis Energy Commissions 135 MW of Grid-Connected Solar Project in Karnataka
Renewable energy Independent Power Producer (IPP), Equis Energy, has commissioned a 135 MW (peak) grid-connected solar
photovoltaic (PV) project in the state of Karnataka.
The project, poised to be the company’s largest so far, was developed under the National Solar Mission (NSM) Phase-II Batch-III
Tranche-V. The project has been developed in Karnataka’s Bagalkot district.
According to Mercom’s India Solar Tender Tracker, the capacity was part of the 1 GW tendered by Solar Energy Corporation of India (SECI)
in February 2016. Out of the tendered capacity, 410 MW have been commissioned so far.
The Power Purchase Agreement (PPA) for this project was signed in August 2016 at a fixed tariff of C4.43 (~$0.068 )/kWh with a Viability
Gap Funding (VGF) of C7.35 million (~$0.11 million)/MW.
The project has a generation output of approximately 224,000 MWh/year, collectively supplying power equivalent to the annual needs of
approximately 200,000 homes, as well as saving 220,000 tons of CO2.
Nitin Apte, the CEO of Equis Energy, commented on the development saying, “Equis Energy has nearly 1 GW of renewable energy in
operation and under development in India and we are excited about the prospects for continued growth, delivering low-cost, clean energy
to Indian consumers and businesses.”
In January 2018, Mercom reported that investment fund Global Infrastructure Partners (GIP) closed on a deal to acquire a 100 percent
stake in Equis Energy. The total transaction was valued at $5 billion and included the assumption of $1.3 billion in Equis Energy debt and
ranks as the largest renewable energy generation acquisition in history, according to the company.
According to Mercom’s India Solar Project Tracker, Equis Energy has an installed solar portfolio of 200 MW in India. This includes a 100
MW project in Telangana and the recently commissioned project in Karnataka. Mar 29

TENDERS & AUCTIONS

Odisha Tenders 200 MW of Solar Projects with Pass Through Option for Duties
The Grid Corporation of Odisha (GRIDCO) has tendered 200 MW of grid-connected solar photovoltaic (PV) projects to be developed in
Odisha.
The bid-submission deadline is April 29, 2018. For the development of these projects, GRIDCO will enter Power Purchase Agreements
(PPAs) with the developers for a period of 25 years.
In the quoted tariff, GRIDCO has provided the bidders with a pass through option in case there is any change in the statutory laws that
would add an anti-dumping or safeguard duty to the solar PV modules.
However, this pass through in tariff will be applicable for any imposition of an anti-dumping or safeguard duty between the time-period of
the date of submission of the bid and the invoice date of PV modules procured for the project.
In March 2018, Mercom had reported the Power Minister as saying that the bidding guidelines for grid-connected solar PV projects in the
country may soon be amended to give bidders a way to nullify the effects of a potential safeguard duty.
In the GRIDCO tender, the scope of work includes the engineering, procurement, design, supply, construction, and commissioning of the
solar PV project along with the transmission network up to the delivery point. The bidders must also identify land for the development of
solar PV project.
A single bidder can bid for a minimum of 10 MW and a maximum of 100 MW. The project will be developed in blocks of 5 MW each. The
solar PV projects will be developed under Build Own Operate (BOO) basis.

7
Go to category: Industry Company Project Tenders&Auctions M&A Policy
 Market Intelligence Report
INDIA CLEANTECH
April 03, 2018

All approvals, permits and clearances required for setting up of the solar PV project (including connectivity) and those required from the
state government and the local bodies will be the responsibility of the bidders.
GRIDCO has mandated that the successful bidders must submit documentary evidence for securing connectivity with grid from State
Transmission Utility (STU) within nine months from the date of issuance of the Letter of Intent (LoI).
The project commissioning timeframe is 18 months from date of award of contract. In case of failure to achieve this milestone, GRIDCO
will encash the Performance Bank Guarantee (PBG) in the following manner:
If there is a delay of up to three months from the scheduled commissioning date (SCOD): GRIDCO shall fine C20,000 (~$307.347) per MW
on a daily basis from the PBG proportionate to the balance capacity not commissioned. For example, out of 20 MW allotted to a developer,
if 2 MW is not commissioned till 25 days post SCOD, then a penalty of C10,00,000 (~$15,367) will be charged.
In case the commissioning of the project is delayed beyond three months from SCOD, then GRIDCO will charge C50,000 (~$768.368) per
MW on a daily basis from the PBG proportionate to the balance capacity not commissioned till the entire bank guarantee is encashed.
In case the commissioning of the project is delayed beyond three months, the PPA capacity will be reduced to the capacity commissioned
and the PPA for the balance capacity will stand terminated and would be reduced from the selected project capacity. In addition, the PBG
will be encashed on the previously stated terms.
According to Mercom India Solar Project Tracker, Odisha has an installed solar capacity of ~90 MW to date and a project pipeline of ~284
MW. Apr 02

Solar Tariffs Hover Around C2.98-3.06/kWh in GUVNL’s 500 MW Auction

Solar tariffs hovered around the C3 (0.0462)/kWh mark in the latest 500 MW grid-connected solar photovoltaic (PV) auction held by Gujarat
Urja Vikas Nigam Limited (GUVNL).
GUVNL had tendered the capacity in February 2018.
Kalthia Engineering and Construction emerged as the lowest (L1) bidder by quoting a tariff of C2.98 (~$0.046)/kWh to develop 50 MW of
grid-connected solar PV projects.
The L1 tariff quoted in this GUVNL auction is C0.33 (~$0.005)/kWh higher than the L1 tariff of C2.65 (~$0.0413)/kWh quoted by GRT
Jewellers India Private Limited in the previous 500 MW auction held by GUVNL.
Gujarat State Electricity Corporation Limited (GSECL) quoted a tariff of C3 (~$0.0462)/kWh to develop 150 MW, ACME Solar quoted C3.06
(~$0.047)/kWh to develop 100 MW and Azure Power also quoted C3.06 (~$0.047)/kWh to develop 250 MW.
Mercom previously reported that this tender had been
oversubscribed by over three times. More than 10
bidders had submitted their technical bids, but only eight
participated in the financial bidding.
When contacted, Mercom’s source at GUVNL said,
“Kalthia Engineering will develop 50 MW, GSECL 150
MW, ACME 100 MW and Azure Power will develop 200
MW.”
When asked about the greenshoe option, the source
chose not to provide all the details now.
In the recently concluded auction to develop 550 MW
of grid-connected solar projects which was conducted
by Karnataka Renewable Energy Development Limited
(KREDL), the lowest (L1) tariff quoted stood at C2.91
(~$0.044)/kWh.

(continued on page 9)
8
Go to category: Industry Company Project Tenders&Auctions M&A Policy
 Market Intelligence Report
INDIA CLEANTECH
April 03, 2018

Even in the taluk-wise auction conducted by KREDL in February 2018, the lower limit of the quoted
tariff was C2.94 (~$0.045)/kWh and the highest quoted tariff stood at C3.54 (~$0.056)/kWh.
According to Mercom’s 2017 Q4 and Annual India Solar Market Update, the average selling price
(ASP) of Chinese modules rose to $0.36 (~C23.45)/W in Q4 2017 from $0.35 (~C22.80)/W in Q3 2017,
an increase of four percent quarter-over-quarter. Mar 28

M&A
ReNew Buys Ostro in One of the Largest Renewable Acquisition Deals in India
Indian renewable energy project developer ReNew Power has announced the acquisition of Ostro Energy Private Limited. The acquisition
is valued close to C10,600 crores (~$1.63 billion), according to Mercom’s channel checks.
ReNew Power currently has green energy assets of more than 4.5 GW, which include a commissioned capacity of approximately 2.8 GW.
Ostro Energy has a total capacity of more than 1.1 GW, out of which nearly 850 MW is already commissioned. Ostro Energy’s assets are
spread across the states of Andhra Pradesh, Karnataka, Telangana, Rajasthan, Madhya Pradesh, and Gujarat.
With the acquisition of these assets, ReNew Power’s capacity will now exceed 5.6 GW, the company said in its media statement. Over 65
percent of the combined portfolio capacity of ReNew and Ostro is already operational.
In January 2018, ReNew Power raised C22.35 billion (~$352 million) to be used for its expansion and loan-payment plans. ReNew raised
the amount through Non-Convertible Debentures (NCD).
According to Mercom’s India Solar Project Tracker, ReNew Power was ranked as the fifth largest solar project developer with installed
capacity of 1,149 MW at the end of 2017. ReNew is also the largest wind power developer in the country.
In the acquisition, ReNew Power also acquired wind assets aggregating 990 MW. After this acquisition, ReNew Power has become the
largest renewable energy project developer in India across the wind and solar energy sectors combined.
Concurrent with this transaction, Canada Pension Plan Investment Board (CPPIB) is investing an additional $247 million (~C16.0 billion) to
support ReNew Power’s financing for this acquisition.
As reported previously by Mercom, the CPPIB recently acquired a 6.3 percent stake in Indian renewable energy project developer ReNew
Power from the Asian Development Bank (ADB) for $144 million (~C9.3 billion). CPPIB first revealed its plans to acquire ADB’s equity stake
in ReNew Power in November. ADB first purchased its stake in Renew Power by making a $50 million (~C3.4 billion) equity investment in
the company in 2014.
In November 2016, Mercom reported on another big acquisition of the domestic solar sector. Greenko Energy Holdings (Greenko)
completed the acquisition of SunEdison’s 587 MW Indian wind and solar projects for a cash payment of $42 million (~C2.72 billion) and
assumption of project-level debt of $350 million (~C22.68 billion) (at an average interest rate of 11.3 percent). The enterprise value of the
transaction was approximately $392 million (~C25.41 billion).
In September 2016, Tata Power Renewable Energy acquired 100 percent shareholding in Welspun Renewables Energy (WREPL) and its
subsidiaries for $1.4 billion (~C93.8 billion) which was one of the largest acquisition in the Indian renewable energy sector at that time, but
this acquisition by ReNew is valued at ~$1.6 billion(~C103.7 billion). This is the largest transaction in terms of the enterprise value in the
Indian renewable energy sector. Apr 03

9
Go to category: Industry Company Project Tenders&Auctions M&A Policy
 Market Intelligence Report
INDIA CLEANTECH
April 03, 2018

POLICY
Solar Policy Roundup: Key Announcements by Government Agencies in March 2018
Central and state government agencies made several important introduced in the national capital.
announcements in March that were designed to bolster the The Bihar Electricity Regulatory Commission (BERC) fixed C4.16
development of the domestic renewable energy sector. (~$0.064)/kWh as the average power purchase cost (APPC) for
The following are some of the key announcements made by the the state’s distribution companies (DISCOMs) during financial year
state and union governments during March in India’s renewable 2018-19.
sector, especially solar: National
State The Office of Directorate General of Anti-Dumping (DGAD) officially
The union territory of Lakshadweep become the 32nd signatory to terminated the investigation process for the anti-dumping petition
the Ujwal DISCOM Assurance Yojana (UDAY) program. that was filed by the Indian Solar Manufacturers Association (ISMA)
in June 2017 and withdrawn in March 2018.
The Maharashtra Electricity Regulatory Commission (MERC) issued
draft regulations for the forecasting, scheduling, and deviation The office of Directorate General of Anti-Dumping and Allied Duties
settlement of solar and wind power generation in the state. (DGAD) extended the deadline for stakeholders to submit responses
in the ongoing solar glass import case from Malaysia to April 10,
The Jharkhand Renewable Energy Development Agency (JREDA)
2018.
announced that it will provide an additional 20 percent subsidy for
the installation of rooftop solar systems in schools. The Central Electricity Regulatory Commission (CERC) issued a set
of levelized generic tariffs for the purchase of electricity from a host
The Karnataka Electricity Regulatory Commission (KERC) reduced
of renewable power generation sources during financial year (FY)
the banking period for renewable energy projects to six months from
2018-19.
one year.
The National E-Mobility Program was launched in India.
The Bihar Electricity Regulatory Commission (BERC) issued draft
regulations pertaining to intrastate open access for 2018. The Government of India said that it was preparing to launch the
Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM) program
The Tamil Nadu Electricity Regulatory Commission (TNERC)
with the goal of solarizing the agricultural sector using solar-
proposed a benchmark tariff of C3.11 (~$0.047)/kWh without
powered water pumps and providing solar-powered electricity to
accelerated depreciation (AD) for solar power projects and C2.86
rural areas.
(~$0.043)/kWh without AD for wind projects.
The Forum of Regulators (FOR) released a report on issues affecting
The Uttar Pradesh state government released a roadmap for
open access in the country. The report charts a way forward to
promoting the development of EV vehicle manufacturing capacity
improve the implementation of open access in India.
in the state, called the Draft Uttar Pradesh Electric Vehicles (EVs)
Manufacturing Policy 2018. The Central Electricity Regulatory Commission (CERC) issued
model guidelines for the accreditation of renewable energy projects
The Punjab State Electricity Regulatory Commission (PSERC) issued
or distribution licensees (DISCOM) by state agencies under the
draft regulations for the forecasting, scheduling, and deviation
Renewable Energy Certificate (REC) mechanism.
settlement of solar and wind power generation in the state.
The CERC also issued a procedure for the registration of renewable
The Assam Electricity Regulatory Commission (AERC) issued draft
energy projects and distribution licensees (DISCOMs) by the central
terms and conditions for open access regulations in 2018.
agency.
The Delhi Electricity Regulatory Commission (DERC) issued
The CERC also created a set of procedures for the issuance of
an approach paper on tariff rationalization. In the paper, DERC
Renewable Energy Certificates (RECs) to eligible entities like
examined the existing regulatory framework for the electricity retail
distribution companies and renewable energy generators.
tariff and developed a strategy for creating competition in the
market. The International Solar Alliance (ISA) became a juridical personality
following the signing of a Host Country Agreement with the Ministry
In its budget for the financial year (FY) for 2018-19, the Delhi
of External Affairs (MEA).
government announced that 1,000 electric buses will soon be

(continued on page 11)

10
Go to category: Industry Company Project Tenders&Auctions M&A Policy
 Market Intelligence Report
INDIA CLEANTECH
April 03, 2018

MNRE
The Ministry of New and Renewable Energy (MNRE) amended
the payment guidelines for the Central Financial Assistance (CFA)
provided to state and central transmission utilities (STU/CTU) that
are involved in developing power evacuation infrastructure for solar
parks.
MNRE revised the schedule and enforcement date for the
Solar Photovoltaics, Systems, Devices, and Component Goods
(Requirement for Compulsory Registration under BIS Act) Order
2017. Apr 03

Disclaimer: When quoting, please cite “Mercom Capital Group”. Although information in this report has been obtained from sources that
we believe to be reliable, Mercom Capital Group does not guarantee its accuracy and is not liable for its use. Mercom reports may not be
reprinted, reproduced or republished whole or in part without express permission from Mercom Capital Group. Copyright © 2018 Mercom
Capital Group, llc, All rights reserved.

11
Go to category: Industry Company Project Tenders&Auctions M&A Policy
 Market Intelligence Report
INDIA CLEANTECH
April 03, 2018

CLICK HERE TO GET YOUR COPY TODAY!

12
Go to category: Industry Company Project Tenders&Auctions M&A Policy