Update on India’s States: May 15, 2019

Meghalaya faces a severe power crisis; Kerala announces new plan to ensure power supply through two sources for all rural and urban areas in the state; a one-gigawatt tender in Gujarat fails to attract developers despite four deadline extensions; Rajasthan announces funding for 30 start-ups in the state; CERC passes order regarding the imposition of safeguard duty on import of solar cells; and more.

Center – State relations

The Central Electricity Regulatory Commission (CERC) proposed setting the national average power purchase cost at $0.051 (Rs. 3.60) per kilowatt-hour (kWh) for open access for FY 2019-20. The proposal is open to comments up to May 28, 2019. Source: Mercom In detail: Calculation of Average Power Purchase Cost (APPC) at the national level

In a landmark judgment, power sector regulator CERC held that the imposition of safeguard duty on imports of solar cells and modules amounts to a “change in law” event for the developers who must be compensated for the increased expenditure. Source: Economic Times In detail: CERC Order

The CERC ruled in favor of three independent power producers, who sought a release from paying their performance bank guarantee to the tune of $3.7 million, and to extend and defer the schedule commissioning date of two solar projects at the Bhadla Solar Park in Rajasthan. Source: Mercom In detail: CERC Order

The Ministry of New and Renewable Energy held discussions with state governments to find out how much land states would be willing to set aside for renewable energy parks, following a recent announcement by the ministry that it will ensure that land and transmission facilities are in place for developers who win wind and solar projects in auctions conducted by the Solar Energy Corporation of India. Source: Economic Times

Nothing critical to report this week.

The Bihar Entrepreneurs Association announced that the state will become the first state to set up East India’s first “Artificial Intelligence – Center of Excellence” in Patna. Source: Analytics India

Nothing critical report to report this week.

Despite four extensions to the bidding deadline, a solar tender for one gigawatt or solar power has yet again failed to attract developers, prompting only two bids for a total 300 MW of capacity. The auction stipulated a maximum rate of $0.039 (Rs2.75) per kWh for electricity generated by the plants. Source: Pv – Magazine

Gujarat’s second attempt to auction projects at Raghanesda Solar Park generated tariffs that were substantially lower than the first sale in January, which had been canceled. French utility Engie got 200 MW in Thursday’s auction by bidding $0.037 per kWh, or unit. Gujarat State Electricity Corporation, Gujarat Energy Power Company, and Tata Power won 100 MW each at $0.038 per unit. Source: Economic Times

State-owned Bharat Heavy Electricals Limited invited bids for the supply, installation, and commissioning of grid-connected solar rooftop projects of a cumulative capacity of 170 kilowatts in Haryana. Source: Mercom In detail: Tender details

In a review petition, the Haryana Power Purchase Center asked the Haryana Electricity Regulatory Commission to review its orders passed on March 8, 2019, in which it allowed the deletion of an exit clause in the power purchase agreement. Source: Mercom In detail: HERC March 8 Orders (here, here, and here)

The Karnataka government announced the establishment of a Center for Smart Governance to develop targeted software solutions to meet the needs of different government departments instead of depending on private sector solutions or the National Informatics Center. Source: Economic Times In detail: Centre for Smart Governance portal

Nothing critical to report this week.

As part of its plan with the Energy Efficiency Services Limited to save electricity in the state, the Maharashtra government announced plans to distribute 77 million LED lamps in the state by the end of 2019. The plan is slated to help the state save 27,000 MW by 2020. Source: Economic Times

The government of Rajasthan announced funding for over 30 early-stage start-ups currently incubated under its flagship iStart Rajasthan. The funding amounts range from $1,711 to $28,526 as part of various financial incentives under the program. Source: Your Story

The Ministry of Environment, Forest, and Climate Change granted the terms of reference to Vedanta Ltd’s Cairn Oil & Gas to carry out Environment Impact Assessment for drilling a total of 274 offshore and onshore oil and gas exploration wells in the Bay of Bengal, Tamil Nadu, and Puducherry. Source: The Hindu

The Telangana State Council of Higher Education and the University of Pittsburgh signed a memorandum of understanding to explore possibilities of academic cooperation between Universities in Telangana State and the University of Pittsburgh. Source: The Hans India

Adani Green Energy (Uttar Pradesh), a wholly owned subsidiary of Adani Green Energy, announced it commissioned a 50 MW alternating current (AC) Solar Power Project. Under a 25-year power purchase agreement, the tariff agreed to is $0.072 per kWh. However, Adani has filed an appeal before Appellate Tribunal for Electricity challenging the reduction in the tariff from an earlier $0.12 per kWh to the current $0.072 per kWh. Source: Business Standard

Nothing critical to report this week.

Best of the Rest

Himachal Pradesh

The Himachal Pradesh Electricity Regulatory Commission (HPERC) issued draft amendments to its regulation on deviation settlement mechanism. The amendments have been proposed in line with the Central Electricity Regulatory Commission’s fifth draft amendment to the deviation settlement regulations. Source: Mercom In detail: Draft HPERC amendments to deviation settlement mechanism regulations

Kerala

The Kerala State Electricity Board announced it will implement a new system to completely avoid power failure. With this, power supply will be assured through two sources in all rural and urban areas, so that a second feeder can ensure power supply in case of supply interruption from the first source. The project will be completed by 2021 and will include the construction of new high tension lines, installation of transformers in load centers and replacement of damaged electricity lines. Source: Mathrubumi

Meghalaya

Meghalaya, a power-surplus state a few decades ago, is currently facing severe power crisis with daily load-shedding. The state’s power corporation, the Meghalaya Energy Corporation Limited, is in serious financial trouble. Source

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