Mercom Capital Group India Solar Market Update

Transcription

1 India Solar Quarterly Market Update Indian Solar Installations Total 883 MW in 2014, Mercom Forecasts a Stronger 2015 February 2015 KEY FINDINGS Indian solar installations in calendar year 2014 totaled 883 MW, down about 12% compared to 1,004 MW installed in 2013 Our 2015 forecast for solar installations in India is a lot brighter at approximately 1,800 MW with some upside as we go into the second quarter In the nine months since the NDA administration has been in office there have been six different solar programs announced, but no auctions have been held yet MNRE recently released another revised draft for Phase II Batch 2 for 3,000 MW of PV projects MNRE also recently issued draft guidelines to establish 2,000 MW grid-connected solar PV power projects under JNNSM Phase II Batch 3 - State Specific VGF Scheme The Governments of Uttarakhand and Telangana both released their list of winning bids for 30 MW and 500 MW of solar projects, respectively The Modi government has brought policy momentum to the solar industry; the sector is now looking for quick implementation and actual installations The Government needs to fix the financial health of DISCOMs and improve the credit rating of offtakers The Government should bring Renewables under the priority lending sector category List of Charts/Tables India Solar Installations (MW) National Solar Mission Policy Map... 4 JNNSM Policy Comparison.. 6 Utility-Scale Solar Projects in India... 8 All India Cumulative Solar Installations By Policy Type (MW).. 9 Uttarakhand Winning Bids.. 11 Telangana Winning Bids Mercom Capital Group, llc. ALL RIGHTS RESERVED. I I solar@mercomcapital.com I Page 1

2 Indian solar installations in calendar year 2014 totaled 883 MW, down 12% compared to 1,004 MW installed in The Indian solar industry remains positive as solar programs are being announced with increased frequency and the installation goal continues to grow. The 100 GW solar installation goal set recently by the Modi government has thrilled the sector, but signs of frustration are starting to show. The industry is also pragmatic and realizes that while 100 GW looks tremendous on paper, the last five years have resulted in only 3,000 MW in solar installations, with last year s installations at less than 1 GW. Most of the industry is currently confused as they are constantly bombarded with new policies, drafts and revisions; they just want to see execution. The last time the National Solar Mission (NSM) conducted a solar auction was in October 2013, and in the nine months since the NDA administration has been in office there have been six different solar programs announced and several versions of guidelines, but not a single auction has been announced. The two most impactful steps the government can take to help the solar industry take off and bring in investments are - Fix the financial health of DISCOMs and improve the credit rating of offtakers Bring Renewables under priority lending sector category Our 2015 forecast for solar installations in India is bright with approximately 1,800 MW planned and some upside as we go into the second quarter. A large portion of the 2015 installations will be the 700 MW Phase II Batch 1 projects which are due to be commissioned in May of this year. Also, looking at the timeline for the last Batch, it takes 19 months from RfS (request for submission) approval to commissioning date. This means that the next three months will be crucial to get these policies finalized and RfS approved for 2016 to be a big year. Annual Installations (MW) 2,000 1,800 1,600 1,400 1,200 1, India Solar Installations (MW) 1,780 Annual Solar Installations Cumulative Solar Installations 986 1, F Feb ,000 5,000 4,000 3,000 2,000 1,000 0 Cumulative Installations (MW) Data derived from MNRE, Mercom Project Tracker & Public Sources Source: Mercom Capital Group, llc 2015 Mercom Capital Group, llc. ALL RIGHTS RESERVED. I I solar@mercomcapital.com I Page 2

3 Industry Perspective Takeaways from our recent conversations with major developers, manufacturers and investors Developers Feedback from developers this quarter was positive to mixed with regards to the recent developments in the sector. Most feel good about all the announcements coming from the government almost on a weekly basis, but they want to see execution. There is a general feeling of confusion with so many programs announced, some overlapping others, and a lack of consistency in policies as criteria seem to change with every batch. Developers want to get beyond the draft phase and see the final guidelines. The 100 GW solar installation goal set by the government sounds great for a lot of developers, but they also are aware that only 3 GW have been installed in the last 5 years and want to actually see concrete steps on which to execute toward achieving that goal. Many are concerned about logistics and details. For example, how well will the solar park infrastructure be managed? What is the fix for the offtaker financial problems? There is also general consensus among developers that current policies announced are much more favorable to large industrial conglomerates with big balance sheets as large project sizes, and onerous deposits and guarantees are tying up valuable capital and hindering growth for pure-play solar developers. The project size band should be narrower as competitive bidding becomes tricky because the cost advantage for a 50 MW project is higher than a 10 MW project bidding under the same program. Developers were also strongly against projects with accelerated benefits being treated on par with others. When it comes to lending, renewable energy is still part of the larger power/infrastructure funding basket in most banks, and with most funding going towards coal power projects, there is very little funding left for renewable energy. Developers would like to see the sector treated separately due to its uniqueness rather than under the broader umbrella of power/infrastructure, which would result in more funding allocated to renewable energy. Manufacturers Manufacturers are upbeat due to a slew of big policy announcements and they are especially happy with the addition of the DCR clause to almost all batches. That said, they want to see demand pick up before they restart manufacturing lines (many need financing to upgrade the lines). Some mentioned they are aggressively expanding and doubling capacity. We saw a similar pattern of behavior before the downturn hit the Indian manufacturers, there was an aggressive push to start or expand manufacturing based on government announcements with the assumption that 100% of the domestic installations would use domestic panels. If the government announcements turn into RfPs and installations, we expect foreign manufacturers to start setting up operations in India. Utilization rates cited were in the percent range, while average selling prices were quoted in the $ (~ 37-40)/W range Mercom Capital Group, llc. ALL RIGHTS RESERVED. I I solar@mercomcapital.com I Page 3

4 Investors Overall, financial institutions expressed positive sentiments based on various solar policies that were recently announced, including the government's goal to install 100 GW. Like developers, banks also think the goals are too aggressive while implementation has always been an issue. The good news is that more and more financial institutions are now lending to solar developers, although they remain conservative in their approach. Banks feel that there are many developers now in the industry who are under qualified and overly aggressive, which has led to project failures in some states and poor build quality. They see many developers competing for limited capital as well. Almost all investors we had conversations with were skeptical about VGF as they feel that there is less incentive for production and quality than there is for capital costs. They also feel that VGF is bringing in marginal players and there is no selection criteria to separate the serious pure-play solar players who have good track records. In terms of funding criteria, the offtaker credit rating is the most important to the majority of investors, followed by finding qualified promoters with a good track record. Interest rates charged by financial institutions were in the percent range and for companies with solid balance sheets, interest rates dropped below 11 percent. National Solar Mission Policy Map PHASE I 1,000 MW ( ) PHASE II 9,000 MW ( ) Batch 1 Batch 2 Batch 1 Batch 2 Batch 3 Batch 4 Batch MW ( ) 350 MW ( ) 750 MW ( ) 3,000 MW ( ) 2,000 MW ( ) NA CPSUs -1,000 MW ( ) OTHERS Solar Parks 20 GW ( ) Defence Establishments 300 MW ( ) Canal Projects 100 MW ( ) Source: Mercom Capital Group, llc 2015 Mercom Capital Group, llc. ALL RIGHTS RESERVED. I I solar@mercomcapital.com I Page 4

5 Policy Updates JNNSM - Phase II Batch 1 Under this batch, a total of 700 MW are scheduled to be completed by May JNNSM - Phase II Batch 2 Since our last update, MNRE released another revised draft for Batch 2 for 3,000 MW of PV projects. It has been almost six months of going back and forth on Phase II Batch 2 policy drafts. It is time to execute and start the RfS process. While the government has done a good job in making developers follow a strict timeline, the government agencies themselves seem to have no sense of urgency. When it takes place, this will be the first solar auction held by the NDA administration, which has been in office for almost a year. The proposed 3,000 MW solar PV projects will be implemented by NTPC Vidyut Vyapar Nigam Limited (NVVN) in the form of solar parks (large areas designated for solar projects), and will be developed by central and state agencies on land provided by state governments or land identified and arranged by developers in their respective states. The minimum project size was brought down to 10 MW. NVVN is also trying to keep the project size uniform; for example, a 1,000 MW park will consist of 100x10 MW projects. Land size and shape will determine this on a case-by-case basis. The bidding will be state-specific and an e-bidding process is proposed. The lowest bids to supply power to NVVN for 25 years will win these projects. An important change in this draft is the allowance for bidders to use other available financial incentives, like accelerated depreciation, concessional customs and excise duties, tax holidays, etc., as available for such projects. Bidders that have access to these types of incentives can drive down bid prices and will have an unfair advantage. This allowance is not popular with pure-play developers who can lose out to aggressive bidding from companies that can use these additional incentives to make up the difference. It is surprising that after five years, the government is still experimenting on policies that create unnecessary complexity and unpredictibiity. This is no way to attract investors. A percentage of these projects (not disclosed yet) will need to meet domestic content requirements (DCR). NVVN may issue a RFS in one or more solar parks based on the infrastructure and states readiness. Under this Batch, crystalline silicon, thin film or CPV, with or without trackers, can be used, and the developer has the option of leasing solar plant equipment from their foreign parent/affiliate Mercom Capital Group, llc. ALL RIGHTS RESERVED. I I solar@mercomcapital.com I Page 5

6 Batch 1 Batch 2 Jawaharlal Nehru National Solar Mission (JNNSM) Policy Comparison Phase 1 Phase 2 Batch 1 CSP Batch 1 Batch 2 (Draft)* Batch 3 (Draft)** Date (Month & Year) Jul 2010 Aug 2011 Jul 2010 Oct 2013 Jan 2015 Feb 2015 Technology PV PV CSP PV PV PV Scheme Bundling Bundling Bundling VGF State Specific Bundling Scheme Batch Size 150 MW 350 MW 470 MW 750 MW 3,000 MW 2,000 MW Plant Size Bid Type 5 MW Tariff Based Competitive Reverse Bidding Min 5 MW; Max 20 MW in multiples of 5 MW Tariff Based Competitive Reverse Bidding Min 5 MW; Max 100 MW Tariff Based Competitive Reverse Bidding Min 10 MW; Max 50 MW in multiples of 10 MW Fixed Tariff of 5.45 (~0.09)/kWh and Reverse Bidding on the VGF CERC Levelized Tariff ($0.29) ($0.25) 15.31($0.25) 8.75 ($0.14) Highest Bid ($0.21) 9.44 ($0.16) ($0.20) Lowest Bid ($0.18) 7.49 ($0.12) ($0.17) Average Bid ($0.20) 8.77 ($0.14) ($0.19) Domestic Content Requirement (DCR) Financial Closure from the date of signing of PPA Commissioning Schedule from the date of signing of PPA Crystalline silicon modules manufactured in India Cells and modules manufactured in India 30% of local content excluding land Fixed Tariff at 5.45 ($0.09) + VGF 2.46 Crore ($0.4M)/MW under DCR VGF 1.35 Crore ($0.22M)/MW under Open Fixed Tariff at 5.45 ($0.09) + VGF 1.35 Crore ($0.22M)/MW under DCR VGF 0.18 Crore ($0.03M)/MW under Open Fixed Tariff at 5.45 ($0.09) + VGF 2.07 Crore ($0.34M)/MW under DCR VGF 1.07 Crore ($0.18M)/MW under Open 375 MW under DCR 375 MW under Open Min 10 MW; Max tbd Tariff Based Competitive Reverse Bidding CERC Levelized Tariff (starting bid) for Solar PV for the FY : 7.72 ($0.13)/kWh NA Crystalline Silicon Cells and Modules, Thin Film State Specific VGF Scheme Min 10 MW; Max tbd Fixed Tariff at 5.43 (~0.09)/kWh and Reverse Bidding on the VGF The tariff is fixed at 5.43 (~$0.09)/kWh for the initial year and then escalated annually by 0.05 (~$0.001)/ kwh for next 20 years, for a maximum allowable tariff of 6.43 (~$0.11)/ kwh at the end of 21st year. The levelized tariff for the term of the PPA thus becomes 5.79 (~$0.095)/kWh. The Project developer will be provided a viability gap funding based on his bid. The upper limit for VGF is kept at 1.0 Crore (~$0.16M)/MW for open category and 1.31 Crore (~$0.21M)/MW for projects in DCR category. 250 MW under DCR 180 Days 210 Days 180 Days 210 Days 210 Days 210 Days 12 Months 13 Months 28 Months 13 Months 13 Months 13 Months Offtaker/PPA NVVN NVVN NVVN SECI NVVN SECI Earnest Money Deposit Performance Bank Guarantee Bid Bond 20 Lakh/MW (~$32,787) 30 Lakh/MW (~$49,180) 20 Lakh/MW (~$32,787) 30 Lakh/MW (~$49,180) Amount of Bid Bond applicable for every paise of discount on CERC Approved Tariff (per MW) 20 Lakh/MW (~$32,787) 30 Lakh/MW (~$49,180) 10 Lakh/MW (~16,393) 20 Lakh/MW (~$32,787) 10 Lakh/MW (~16,393) 20 Lakh/MW (~$32,787) 10 Lakh/MW (~16,393) 30 Lakh/MW (~$49,180) *Batch II Draft Guidelines, dt 29 Jan 2015: MNRE now proposes to add a total Solar PV capacity of 3,000 MW to be implemented through NVVN as part of Phase-II Batch-II through open competitive bidding under 'State Specific Bundling Scheme'. MNRE is facilitating development 25 solar parks to accelerate the solar capacity addition in various states. The bidder will approach Solar Park Implementation Agency (SPIA) for allotment of land and connectivity. **Batch III Draft Guidelines, dt 04 Feb 2015: The proposed 2,000 MW Solar PV Projects to be selected under the 'State Specific VGF Scheme' as part of Phase II Batch III, will be implemented by SECI in Solar Parks to be developed through association of Central and State Agencies/Land provided by State Governments or Land identified and arranged by Solar Power Developers in the respective States. Source: Mercom Capital Group, llc Note: Dollar-Rupee conversions were calculated at $1 = Mercom Capital Group, llc. ALL RIGHTS RESERVED. I I solar@mercomcapital.com I Page 6

7 JNNSM - Phase II Batch 3 (New) The MNRE also recently issued draft guidelines to set up 2,000 MW of grid-connected solar PV power projects under JNNSM Phase II Batch 3 - State Specific VGF Scheme. Viability Gap Funding was first used in Phase II Batch 1, omitted in Batch 2 and added back in Batch 3 without any explanation, just the kind of policy flip-flop that frustrates both developers and investors. In our conversations with investors, almost all of them expressed negative views about the VGF mechanism, as they feel that there is less incentive for production and quality and more emphasis on capital costs. Instead of NVVN, another government agency, Solar Energy Corporation of India (SECI), will be the implementing agency for this Batch. Solar projects of 2,000 MW capacity under this Batch will also be set up as part of solar parks in various states, similar to Phase II Batch 2 projects. In states where solar parks are not yet established, the projects can be located anywhere within that state. Of the 2,000 MW capacity, 250 MW will be earmarked for bidding under DCR. MNRE will specify the total state-wise capacity of projects (both Open Category and DCR Category ) based on commitments from the states. Mechanism of Viability Gap Funding (VGF) in the Scheme The tariff payable to the project developer is fixed at 5.43 (~$0.09)/kWh for the initial year and then escalated annually by 0.05 (~$0.001)/kWh for the next 20 years, resulting in a maximum allowable tariff of 6.43 (~$0.11)/kWh at the end of the 21st year. The tariff would, thereafter, remain fixed at 6.43 (~$0.11)/kWh. The levelized tariff for the term of the Power Purchase Agreement (PPA) therefore becomes 5.79 (~$0.09)/kWh. The project developer will be provided viability gap funding based on bidding price. The upper limit for VGF is kept at 1 Crore (~$0.16M)/MW for open category and 1.31 Crore (~$0.21M)/MW for projects in the DCR category. The project developer has to infuse capital in the form of equity for an amount of at least 1.2 Crore (~$0.19M)/MW. The remaining amount can be financed by the developer. The VGF will be released in six tranches, 50 percent on successful commissioning of the full capacity of the project (COD) and the balance 50 percent progressively over the next five years subject to the project meeting generation requirements Mercom Capital Group, llc. ALL RIGHTS RESERVED. I I solar@mercomcapital.com I Page 7

8 In-Operations Utility-Scale Solar Projects in India Operational and Under Development Updated on February 2015 Capacity (MW) Solar PV 2,974.5 Solar Thermal Total 3,180.0 Under Development Solar PV 5,082.9 Solar Thermal Total 5,362.9 Source: Mercom Capital Group, llc Other Announced Solar Programs - Ultra Mega Projects in Solar Parks MNRE announced a separate plan to set up Ultra Mega Solar Power Projects in 25 Solar Parks, each with a capacity of 500 MW and above, targeting 20,000 MW of installed capacity in a span of five years beginning in FY The solar parks are proposed to have a minimum capacity of 500 MW and maximum capacity of 1,000 MW. Smaller parks of 100 MW and above may be set up in the North Eastern States of Himachal Pradesh, Uttarakhand, and Jammu and Kashmir. According to our sources, nine solar parks in six states are currently under development. JNNSM - Phase II Batch 5 (New) MNRE has announced a new plan under Batch 5 (note: there is no Batch 4) to set up grid-connected solar PV power projects by the Central Public Sector Undertakings (CPSUs) and the Government of India organizations self-use or third-party sale or merchant sale, with VGF over a span of three years from FY to A budget of 1,000 Crore (~$164M) has been established for this plan. DCR will be mandatory for these projects. VGF will be provided through SECI at a fixed rate of 1 Crore (~$0.16M)/MW for projects where both the cells and modules are domestically produced and 50,00,000 (~$81,967)/MW for projects that use only domestically manufactured modules Mercom Capital Group, llc. ALL RIGHTS RESERVED. I I solar@mercomcapital.com I Page 8

9 Solar Projects by Defense Sector Under this plan, more than 300 MW of grid-connected and off-grid solar PV power projects are proposed to be set up with VGF by Defense Establishments under the Ministry of Defense over five years, from It will be mandatory that all PV cells and modules used in solar projects set up under this program will be made in India. A provision of 750 Crore (~$123M) has been earmarked for MNRE from the National Clean Energy Fund, to implement this program. Grid Connected Solar PV Power Plants on Canal Banks and Canal Tops MNRE has launched yet another program for development of grid-connected solar PV power projects on canal banks and canal tops at an estimated cost of 975 Crore (~$160M) and with Central Financial Assistance (CFA) of 228 Crore (~$37M). The objective is to utilize the area on top of canals and on vacant government land along the banks of canals, where available, to set up 100 MW of solar PV power projects. State Policy JNSSM All India Cumulative Solar Installations By Policy Type Policy Type MW Gujarat Solar Policy REC Mechanism Maharashtra Solar Policy 206 Madhya Pradesh Solar Policy 175 NTPC Bundling Scheme Projects 110 Karnataka Solar Policy 79 Rajasthan Solar Policy 70.5 Punjab Solar Policy 52.5 Andhra Pradesh Solar Policy 42 Uttar Pradesh Solar Policy 10 Others 9.4 Odisha Solar Policy 7 West Bengal Solar Policy 5 JNNSM - Phase I Batch II 330 JNNSM - Phase I Batch I (Thermal) 200 JNNSM - Phase I Batch I 140 JNNSM - Rooftop Projects 94.3 JNNSM - Migration Scheme 48 JNNSM - Phase II 30 MNRE - Demonstration Program 20.9 MNRE - Demonstration Program (Thermal) 3 JNNSM - Migration Scheme (Thermal) 2.5 Total Installed Capacity 3,180 Source: Merom Capital Group, llc (Feb 2015) 2015 Mercom Capital Group, llc. ALL RIGHTS RESERVED. I I solar@mercomcapital.com I Page 9

10 Uttar Pradesh: Uttar Pradesh signed PPAs for 110 MW in December A 10 MW project was commissioned in January 2015 and the remaining 100 MW are expected to be commissioned by the first half of A Request for Proposal (RfP) to set up 300 MW of solar PV projects was announced in August The projects were allotted through a reverse bidding process. Successful bidders with project capacities less than 25 MW will be required to commission projects within 13 months and those larger than 25 MW capacity must be commissioned within 18 months. PPAs have been signed for 85 MW of projects and a RFP has been issued for the remaining 215 MW. The deadline for bid submission and opening of non-financial bids is April 7, Andhra Pradesh: Andhra Pradesh signed PPAs for 619 MW of grid connected solar projects in December Projects less than 10 MW in size are scheduled to commission by December 2015 while projects greater than 10 MW (579 MW) have a commissioning date of March Punjab: Punjab opened bidding for about 250 MW of solar PV projects. With average tariffs ranging between (~$ )/kWh, PPAs were signed in December 2013 after a delay due to land acquisition problems during the election period. Of these, about 48.5 MW has been commissioned to date and the remainder is expected to be commissioned by the first half of Kerala: Under the 10,000 rooftop solar power plant program currently being implemented, approximately 7,000 installations are complete. The remaining 3,000 installations were postponed, but are expected to be launched again with a revised tariff. These projects are up to 1 kw in size and for captive use. The Agency for Non-Conventional Energy and Rural Technology, the renewable energy agency of Kerala, is expected to announce a tender for 14 MW of solar projects this year. Madhya Pradesh: To date, there are 175 MW of solar projects installed under Madhya Pradesh s state policy. Another 105 MW of solar projects are expected to be commissioned in 2015 and 20 MW in the first quarter of Mercom Capital Group, llc. ALL RIGHTS RESERVED. I I solar@mercomcapital.com I Page 10

11 Uttarakhand: The government of Uttarakhand issued a request for selection for procurement of solar power from grid-connected solar PV projects for an aggregate capacity of up to 30 MW through a tariff-based competitive bidding process under its Solar Power Policy 2013.Bids were received from 42 solar project developers for 166 MW. The winning bids were announced and the PPAs are expected to be signed soon. Sl. No. Name of the Bidder Uttarakhand Winning Bids Project Size Winning Bids MW ( /kwh) (~$/kwh) 1 Redwoods Projects Advika Energies Energy Purshotam Industries Purshotam Industries Madhav Infra Projects UJVN UJVN Purshotam Ispat Vivaan Solar Purshotam Ispat R.C. Energy Eastman International Note: Dollar-Rupee conversions were calculated at $1 = 61 Source: UREDA Mercom Capital Group, llc Haryana: A five MW solar plan developed under the state policy is expected to be commissioned next year. A tender inviting bids for 50 MW of solar PV projects was issued in 2014 and the bidders list is expected to be announced shortly. Maharashtra: There are 206 MW of solar projects installed under Maharashtra s state policy. The Maharashtra State Power Generation Company recently invited tenders to develop a 50 MW grid-connected solar project in Kaudgaon and a 25 MW project in Sakri. The financial bids are expected to be opened by the end of February Mercom Capital Group, llc. ALL RIGHTS RESERVED. I I solar@mercomcapital.com I Page 11

12 Chhattisgarh: Chhattisgarh State Power Distribution Company Limited (CSPDCL) announced the bid results for 100 MW solar projects. The lowest bid price was 5.54 (~$0.09)/kWh, and the highest 7.81 (~$0.13)/kWh. CSPDCL will sign 20- year PPAs from these successful bidders. The only confirmed project is a 60 MW installation that will be commissioned by end of Karnataka: The state has 79 MW in solar projects installed to date, including e 40 MW already commissioned of the 60 MW solar projects announced in Batch I. Of the remaining 20 MW, only 10 MW is expected to be commissioned in early A 10 MW CSP project, under Batch I, is expected to be commissioned in There were 130 MW of solar projects announced in Batch II for which the PPAs are signed and 30 MW in solar projects are already commissioned. Of the remaining 100 MW projects, 75 MW is expected to be commissioned in The State also announced financial bids for solar projects totaling 50 MW in Batch 3 of which 14 MW is expected to be commissioned in 2015, and the remainder in Karnataka Renewable Energy Development Limited (KREDL) invited RfPs for solar projects totaling 500 MW and received bids for 1,412 MW from 44 solar project developers. The lowest bid was (~$0.11) and the highest bid was (~$0.14). Nine companies were selected with the highest bid at 7.12 (~$0.12) and the lowest at 6.71 (~$0.11). PPAs are currently being signed for these projects. Bihar: Bihar recently announced bid results for 100 MW solar projects. Five successful bidders have signed PPAs in January 2015 and the projects are expected to be commissioned in Mercom Capital Group, llc. ALL RIGHTS RESERVED. I I solar@mercomcapital.com I Page 12

13 Telangana: The recently created state of Telangana released its list of winning bids for 500 MW of solar projects. The selection was through reverse bidding and PPAs are currently being signed. The successful bidders with project capacities less than 10 MW will be required to commission projects within 12 months, and those with more than 10 MW capacity must be commissioned within 15 months. Telangana Winning Bids Sl. No. Name of the Bidder Project Size Winning Bids MW ( /kwh) (~$/kwh) Substation Alloted 1 First Solar Power India /33 KV SS Tandur 2 SS Indus Solar Energy /11 KV SS Kattangur 3 Global Coal & Mining /33 KV SS Parigi 4 Rays Power Infra /33 KV SS Kalwakurthy 5 Solairedirect Energy India /33 KV SS Chegunta 6 R N Jewels /33 KV SS Habsipur 7 SQA Concepts /11 KV SS Weddekothapally 8 First Solar Power India /33 KV SS Polepally (Jadchela) 9 Haldiram Snacks /33 KV SS Kalwakurthy 10 International Solar Corporation /11 KV SS Madaram 11 Karvy Consultants /132 KV SS Sadasivapet 12 Renew Solar Power /220 KV SS Veltoor 13 ACME Solar Energy /33 KV SS Balanagar 14 Cybercity Builders and Developers /11 KV SS Rajapet 15 Global Associates /11 KV SS Kulkulpally 16 Prime Lige Space Consultancy /11 KV SS Paladugu 17 Suraj Impex India /11 KV SS Paladugu 18 Keerthi Estates /33 KV SS Nagarkurnool 19 Photon Energy Systems /11 KV SS Narayankhed 20 Solairedirect Energy India /33 KV SS Nandipet 21 Renew Solar Power /33 KV SS Sadasivpet 22 Minopharm Laboratories /11 KV SS Parigi 23 Sri Luxmi Estates Agro Paper /33 KV SS Makthal 24 ACME Solar Energy /33 KV SS Maddur 25 Sai Achyuth Energy /11 KV SS Venkatapur 26 Keerthi Estates /11 KV SS Kandagatla 27 Sapark Infra Advisors India /11 KV SS Kodakandla 28 NV Vogt Singapore PTE /33 KV SS Gadwal 29 Talettutayi Solar Projects /33 KV SS Gadwal 30 Mahindra EPC Services /33 KV SS Tandur 31 Solairedirect Energy India /33 KV SS Ramayampet 32 Shapoorji Pallonji Infrastructure Capital /33 KV SS Alampur 33 Cybercity Builders and Developers /11 KV SS Nednoor Note: Dollar-Rupee conversions were calculated at $1 = 61 Source: TSSPDCL Mercom Capital Group, llc 2015 Mercom Capital Group, llc. ALL RIGHTS RESERVED. I I solar@mercomcapital.com I Page 13

14 The Modi government has brought policy momentum to the solar industry. The sector is now looking for quick implementation and actual installations. Mercom forecasts a stronger 2015 for Indian solar installations and will continue to monitor the execution on the ground. Note: Dollar-rupee conversions were calculated at $1 = Mercom Capital Group, llc. ALL RIGHTS RESERVED. I I solar@mercomcapital.com I Page 14

15 About Mercom Capital Group Mercom Capital Group, llc, is a global communications and consulting firm focused on Cleantech, Healthcare IT and financial communications. Mercom s consulting division advises companies on new market entry, overall strategic decision-making, and provides custom market research. Mercom delivers highly respected industry market intelligence reports covering Solar Energy, Wind Energy, Smart Grid and Healthcare IT. Our reports provide timely industry happenings and ahead-of-the-curve analysis specifically for C-level decision making. Mercom s communications division helps companies and financial institutions build powerful relationships with media, analysts, local communities and strategic partners. To receive Mercom s popular market intelligence reports, visit: Mercom Capital Group, llc. ALL RIGHTS RESERVED. I I solar@mercomcapital.com I Page 15

16 Mercom Capital Group, llc 4611 Bee Caves Road, Suite 303 Austin, Texas t w e info@mercomcapital.com Mercom Communications India, Pvt. Ltd. A subsidiary of Mercom Capital Group, llc S-3, Harshita Arcade No.138, First Main Road Sheshadripuram Bangalore t DISCLAIMER 2015 by Mercom Capital Group, llc. All rights reserved. Strictly no redistribution allowed without prior written permission of Mercom Capital Group. When quoting, please cite Mercom Capital Group, llc. Although information in this report has been obtained from sources that we believe to be reliable, Mercom Capital Group does not guarantee its accuracy. Published by Mercom Capital Group, llc, 4611 Bee Cave Rd, Suite 303, Austin, TX USA. A copy of the full Terms and Conditions that you agreed to can be found at: For information about this document, please contact us at: solar@mercomcapital.com Mercom Capital Group, llc. ALL RIGHTS RESERVED. I I solar@mercomcapital.com I Page 16