MNRE clarifies in respect of domestically manufactured solar PV cells

Press Information Bureau
Government of India


MNRE clarifies in respect of domestically manufactured solar PV cells

Decision expected to give boost to domestic manufacturing of solar cells in India

New Delhi, 21st October, 2019

In a major decision that is likely to give further boost to domestic manufacturing of solar cells in India, MNRE has issued a clarification in respect of domestically manufactured solar PV cell today.

It may be noted that a number of flagship programmes of MNRE such as KUSUM, have provisions for mandatory use of domestically manufactured solar PV cells. However it was seen that some manufacturers have been importing semi –processed solar PV cells (generally called blue wafer) and making final Solar PV cells with little value addition in India.

The Ministry has clarified that if diffused silicon wafer (generally called ‘Blue Wafer’) is imported and the same is used as raw material for the manufacture of solar PV cells in India, such solar PV cells shall not qualify as domestically manufactured solar PV cells, for the purpose of MNRE’s Schemes / Programmes. A solar PV cell shall be considered to be domestically manufactured only if the same has been manufactured in India, using undiffused silicon wafer (generally called ‘Black Wafer’).

It is expected that this decision will help in establishing a strong solar manufacturing base in India.

The order issued by MNRE in this regard is as below –

This is in reference to the schemes/ programmes being implemented by the Ministry of New & Renewable Energy, wherein it is mandatory to use domestically manufactured solar PV cells and domestically manufactured solar PV modules, and also in reference to the Manufacturing-Linked-PPA initiative by Solar Energy Corporation of India Ltd (SECI).

  1. A solar PV cell shall be considered to be domestically manufactured only if the same has been manufactured in India, using undiffused silicon wafer (generally called ‘Black Wafer’), classifiable under Customs Tariff Head 3818 and all steps / processes required for manufacturing solar PV cell from the undiffused silicon wafer have been carried out in India.
  2. If diffused silicon wafer (generally called ‘Blue Wafer’) is imported and the same is used as raw material for the manufacture of solar PV cells in India, such solar PV cells shall not qualify as domestically manufactured solar PV cells, for the purpose of MNRE’s Schemes / Programmes mandating use of domestically manufactured solar PV cells.
  3. The solar PV cell manufacturing facility required to be set-up under SECI’s Manufacturing-Linked-PPA initiative should manufacture solar PV cells from undiffused wafers, as explained above.
  4. This issues with the approval of Secretary, MNRE.”



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Renewables in Ukraine – July 2019


Ukraine’s Renewables Investment Boom

The Ukrainian government has committed to increase renewables from around 4 per cent of the energy mix today, to 25 per cent by 2035.

While hydropower dominates the country’s renewable capacity, averaging 4.6GWp over the last decade, installed wind, solar and bio energy capacity increased by 54 per cent to 2.1GWp in 2018 alone, with a further 4.6GWp of capacity in the pipeline.

Much of this growth and pipeline, particularly in wind and solar, has been fuelled by a rush to secure the Green Tariff, which will be replaced by an auction-based regime from 2020.

Introduced in 2008, the Green Tariff provides highly attractive and guaranteed Euro-denominated rates until the end of 2029. Investors can still secure the Green Tariff provided that projects have obtained land use rights, a grid connection agreement, a construction permit and a power purchase agreement (PPA) in the new format by 31 December 2019.

Passing of Ukraine’s Auction Law for alternative energy sources in April 2019 follows a well-trodden path. Use of auctions to manage supply to a national grid has become commonplace in recent years.

According to research by the International Renewable Energy Agency (IRENA) the number of countries that have adopted renewable energy auctions increased from six in 2005 to more than 67 by early 2017, and continues to rise.

Although the auction regime will undoubtedly lower returns on investment, compared to those offered by the Green Tariff, any reductions should be manageable, subject to the capacity offered at each auction, as advances in technology continue to reduce generating costs.

We expect the investment climate for Ukrainian renewables to remain favourable. Indeed, the government’s 2035 energy mix target will require significant, and sustained investment in new renewable capacity, storage and transmission networks.

Overall, the outlook for the renewables sector in Ukraine looks bright. Development of the sector has been rapid in recent years, and will continue in the years ahead, although investors should carefully assess the impact of the new auction regime.


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Yingli in talks with creditors over break up

Chinese solar panel manufacturer Yingli this morning revealed it is talks with its lenders about a potential takeover of its chief Chinese business units.

Yingli Green Energy Holding Company Limited today revealed on its Yingli Solar website that the extent of its debts means its lenders may take control of the parent company’s Chinese subsidiaries or those units may instead be acquired by “strategic investors”.

pv magazine has been aware of rumors the major solar manufacturer could be acquired by the state-owned China Development Bank since the SNEC trade show in March but had been unable to substantiate the lead.

Today’s announcement was light on detail and did not identify monies owed, creditors or potential state-backed white knight investors. The statement did outline, however: “The company understands that various parties including relevant governmental agencies are making concerted efforts to promote the debt restructuring of the company’s major PRC [People’s Republic of China] subsidiaries.”

Yingli’s 2018 annual report, published in May, outlined the extent of the company’s financial distress and acknowledged the manufacturer faced being broken up to satisfy creditors.

Debt mountain

A Form 20-F filing lodged with the U.S. Securities and Exchange Commission revealed Yingli’s Baoding Tianwei subsidiary had overdue medium-term notes worth RMB4.45 billion ($628 million). According to the filing, parent company Yingli Green Energy Holding had a capital deficit of RMB11.9 billion at that point, overdue short-term borrowings of RMB4.77 billion, had been unable to roll over RMB2.39 billion of debts due to fall in April and May and had another RMB8 billion due by May 2020.

On top of that, three creditors had secured court victories relating to a total RMB468.4 million owed them with a further RMB110 million being contested in the courts and the company had just received a claim for a further RMB106 million.

The business was de-listed from the New York Stock Exchange in July 2018.

Today’s announcement did not name the Chinese subsidiaries which may pass to new ownership but known mainland units of the Baoding-based manufacturer include: Baoding Tianwei Yingli New Energy Resources Co Ltd; Tibet Keguang Industries and Trading Co Ltd; Lixian Yingli New Energy Resources Co Ltd; Tibet Tianwei Yingli New Energy Resources Co Ltd; Jiangsu Yingli New Energy Co Ltd; Chengdu Yingli New Energy Resources Co Ltd; Baoding Zhongtai New Energy Resources Co Ltd; Xinjiang Yingli New Energy Resources Co Ltd; Yingli Energy (Beijing) Co Ltd; Tianjin Yingli New Energy Resources Co Ltd; and Yingli Green Energy Hong Kong Trading Limited.

Source: PV Mag

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FAME II Scheme 2019

Click the link for the Faster Adoption and Manufacturing of (Hybrid&) Electric Vehicles in India

2019_FAME II Scheme Notification


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Electric Vehicle GST reduced to 5%

GST rate on all Electric Vehicles reduced from 12% to 5% and of charger or charging stations for EVs from 18% to 5%

Hiring of electric buses by local authorities exempted from GST

Changes in GST rates shall be effective from 1st August, 2019

Posted On: 27 JUL 2019 12:59PM by PIB Delhi

The 36th GST Council Meeting was held here today Via Video Conference under the chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The meeting was also attended by Union Minister of State for Finance & Corporate Affairs Shri Anurag Thakur besides Revenue Secretary Shri Ajay Bhushan Pandey and other senior officials of the Ministry of Finance. The Council has recommended the following:

A. GST rate related changes on supply of goods and services

  1. The GST rate on all electric vehicles be reduced from 12% to 5%.
  2. The GST rate on charger or charging stations for Electric vehicles be reduced from18% to 5%.
  3. Hiring of electric buses (of carrying capacity of more than 12 passengers) by localauthorities be exempted from GST.
  4. These changes shall become effective from 1st August, 2019.

B. ChangesinGSTlaw:

  1. Last date for filing of intimation, in FORM GST CMP-02, for availing the option of payment of tax under notification No. 2/2019-Central Tax (Rate) dated 07.03.2019 (by exclusive supplier of services), to be extended from 31.07.2019 to 30.09.2019.
  2. The last date for furnishing statement containing the details of the self-assessed tax in FORM GST CMP-08 for the quarter April, 2019 to June, 2019 (by taxpayers under

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composition scheme), to be extended from 31.07.2019 to 31.08.2019.

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Executive Summary

The world today is witnessing several kinds of technological disruptions in different sectors. One of the likely disruption can be replacement of thermal based generation with RE generation being complimented with energy storage technology. This has been possible with the downward trend of cost of solar panels and newer technology options like battery energy storage systems.

In fact, the reduction in cost projections is very aggressive for battery energy storage technology so as to render them financially viable. In this context, planning for optimal generation capacity mix gains tremendous importance so as the future generation capacity mix will be cost effective as well as environmental friendly. To achieve the mix, a horizon of 10-12 years is sufficient to gear up the systems and policies in the right direction. The study year 2029-30 has been considered keeping this in perspective.

Optimal generation capacity mix is a study primarily aimed at finding out the least cost optimal generation capacity mix, which may be required to meet the peak electricity demand and electrical energy requirement of the year 2029-30 as per 19th Electric Power Survey. The study minimizes the total system cost of generation including the cost of anticipated future investments while fulfilling all the technical constraints.

The base year of the study has been considered as 2021-22. The installed capacity projected in the National Electricity Plan (NEP) has been taken as input to find out the requirement of future generation capacity mix to be built up till 2029-30. The technical and financial parameters of different generation technologies have been considered as per National Electricity Plan.

The short term studies to assess the economic hourly generation dispatch and adequacy of the capacity mix obtained from long term generation planning studies for critical days of the year 2029-30 have also been carried out. All the technical/operational characteristics of each individual generating unit have been adhered to arrive at the adequacy of the generation capacity mix at least production cost.

Due to the technical/operational constraints, the generation from RE sources may not be fully absorbed in the system. The study has also been carried out to assess the RE absorption by reducing presently stipulated technical minimum load of coal based plants.

Sensitivity analysis for contingency scenarios is also carried out by reducing available energy from RE sources and hydro power plants to test the system resilience. Impact on CO2 emissions due to part load efficiency loss of coal based power plants has also been studied.The study is based on the assumption of a single demand node for the country and does not consider transmission lines in optimization.


2. Objective of the Study

To find out the optimal generation capacity mix to meet the projected peak electricity demand and electrical energy requirement in the year 2029-30 considering possible/feasible technology options, intermittency associated with Renewable energy sources and constraints if any, etc.

Optimum generation mix study is an optimization problem for generation expansion planning, in which the objective function is to minimize:

  1. The costs associated with operation of the existing and committed (planned and under construction) generating stations.
  2. The capital cost and operating cost of new generating stations required for meeting peak electricity demand and electrical energy requirement while satisfying different constraints in the system such as:
    •  Fuel availability constraints.
    •  Technical operational constraints viz. minimum technical load of

      thermal units, ramp rates, startup and shut down time etc.

    •  Financial implications arising out of startup cost, fuel

      transportation cost etc.

    •  Intermittency associated with renewable energy generation.

      Technologies/Fuel options available for power generation considered in the study are:

  •  Conventional Sources – Coal and Lignite, Hydro including Pumped Storage, Nuclear, Natural gas.
  •  New & Renewable Energy Sources- Solar, Wind, Biomass, Small Hydro, etc.
  •  New Technologies – Grid scale battery energy storage systems.
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UPERC (Captive and Renewable Energy Generating Plants) Regulations, 2019 (hereinafter referred to as CRE Regulations, 2019).

These Regulations shall apply to:

All the Generating Stations based on Captive generation, renewable sources of generation and co-generation, existing prior to 01.04.2019 in the State of Uttar Pradesh as on the date of notification of these Regulations.

Generation based on Captive generation, renewable sources of generation and co-generation, captive consumption and sale of electricity from such captive plants or plants based on RE sources, to all distribution licensees within Uttar Pradesh or through Open access to a third party.

Provided that in case of Wind, Mini/ Micro hydro projects, Small Hydro projects, Biomass power, Non-fossil fuel based generation and Cogeneration projects, Solar PV projects and Wind based power plants these Regulations shall apply subject to the fulfillment of eligibility criteria specified in these Regulations.

  1. The provisions of Availability Based Tariff (hereinafter referred to as ‘ABT’) in respect to functions, duties and obligations, as applicable to conventional generation plants shall apply to these Generating Plants also, unless provided otherwise in some other Regulations.
  2. For Generating Plants commissioned on or after 1.04.2009, where the Generating Plant/Company has adopted Clean Development Mechanism (CDM), the proceeds of carbon credit from approved CDM project shall be shared in the following manner, namely:
    1. 100% of gross proceeds on account of CDM shall be retained by the project developer during the first year of commercial operation of the Generating plants.
    2. During the second year of commercial operation, the share of the procurer shall be 10% which shall progressively increase by 10% every year till it reaches 50%, where-after the proceeds shall be shared in equal proportion, by the Generating Company and the procurer.

Click here for the doc CRE Regulations 2019_Final

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