AI-Integrated Manufacturing Will Boost Quality and Reliability of Solar Products

India’s Renewable Energy Space is Mainstream Now for Lenders

Daily News Wrap-Up: Madhya Pradesh Invites Bids for 100 MW Solar Project

MNRE Revises Enlistment Norms for Wind Turbine Components

MNRE Releases ALMM List-II for Solar Cells with a Capacity of 13 GW

CESC Floats 40 MW/80 MWh Standalone BESS Tender in West Bengal

C&I Sector Finds Energy Storage More Favorable than Energy Banking

NTPC Green Floats O&M Tender for 250 MW Solar Project in Rajasthan

NTPC Green, Opera, Tata Win NHPC’s 500 MWh Standalone BESS Auction

Nextracker Acquires Robotics and AI Technologies to Expand Solar Platform


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					</table><p>The Ministry of Power <a href="https://www.mercomindia.com/power-ministry-launches-program-to-boost-energy-efficiency-in-msme-sector" target="_blank" rel="noopener">launched</a> a new program, Assistance in Deploying Energy-Efficient Technologies in Industries and Establishments (ADEETIE), aimed at enhancing energy efficiency in micro, small, and medium enterprises. The Bureau of Energy Efficiency is the implementing agency for this program, which has an outlay of ₹10 billion (~$116.28 million). It will be implemented over a three-year period from the financial years 2026 to 2028. Under ADEETIE, financial support will be extended in the form of interest subvention, with 5% for micro and small enterprises and 3% for medium enterprises.</p>
<p>The recent <a href="https://www.mercomindia.com/electricity-derivatives-a-gamechanger-for-indian-power-market-stakeholders" target="_blank" rel="noopener">launch </a>of electricity derivatives by the Multi Commodity Exchange of India (MCX) and the National Stock Exchange is a long-awaited reform, with a history spanning over 15 years. The current outcome is that any contracts involving the physical delivery of electricity will be regulated by CERC, while all other contracts will be regulated by SEBI. The launch of electricity derivatives is an important initiative for power sector stakeholders, including independent power producers, distribution companies, and bulk electricity offtakers.</p>
<p>As India <a href="https://www.mercomindia.com/components-manufacturing-key-to-renewable-energy-sector-growth" target="_blank" rel="noopener">accelerates</a> the integration of renewable energy, the focus is shifting beyond solar module manufacturing to encompass a broader range of components critical for the sector’s long-term sustainability. The country needs to strengthen its local manufacturing base for inverters, storage systems, and balance-of-system equipment to achieve true self-sufficiency in renewable energy. This issue will be discussed in depth at the fifth edition of the Mercom India Renewables Summit, set to take place on July 24-25, 2025, at the Hyatt Regency, New Delhi.</p>
<p>It is not only industries with huge power requirements that are <a href="https://www.mercomindia.com/rooftop-solar-helps-national-institute-reduce-electricity-costs-by-30" target="_blank" rel="noopener">recognizing</a> the benefits of switching to solar energy. National institutions of repute are also going green by reducing their carbon footprint by installing solar panels on their rooftops. A recent instance is that of Pandit Deendayal Upadhyaya National Institute for Persons with Physical Disabilities in New Delhi. The institute has installed a 102 kW rooftop solar system, which generates enough power to run rehabilitation machines and cater to other energy needs. Institute Director Dr Jitendra Sharma highlighted that the installation of the rooftop system has resulted in an estimated 30% reduction in electricity costs.</p>
<p>The Appellate Tribunal for Electricity <a href="https://mercomindia.com/aptel-rules-transmission-line-ctu-deemed-interstate-system" target="_blank" rel="noopener">confirmed</a> that transmission systems built, owned, and operated by the Central Transmission Utility qualify as an interstate transmission system even if located within a single state. The ruling came while dismissing the Tamil Nadu Generation and Distribution Corporation’s appeal, which challenged the Central Electricity Regulatory Commission’s classification of transmission assets developed by Power Grid Corporation of India for evacuating power from the NP Kunta Solar Park as part of the interstate transmission system. The Tribunal ruled that the tariff for these assets must be recovered through the point of connection mechanism, as per the CERC Sharing Regulations, 2010.</p>
<p>The Chhattisgarh State Electricity Regulatory Commission <a href="https://www.mercomindia.com/chhattisgarh-hikes-fy-2026-electricity-tariffs-by-1-89-across-categories" target="_blank" rel="noopener">issued</a> its final tariff order for the financial year 2026, introducing an average hike of 1.89% across consumer categories. The revised rates are effective until March 31, 2026, or until the next order is issued. The decision was primarily driven by the need to address a cumulative revenue gap faced by the state’s power utilities, particularly the Chhattisgarh State Power Distribution Company. The Commission approved a cumulative revenue gap of ₹5.23 billion (~$63.05 million), resulting in an average tariff increase of ₹0.14 (~$0.0017)/kWh, or approximately 1.89%, without any change in fixed or demand charges. The revised average cost of supply stands at ₹7.02 (~$0.085)/kWh.</p>
<p>The Punjab State Electricity Regulatory Commission (PSERC) <a href="https://www.mercomindia.com/punjab-regulator-approves-pspcls-rooftop-solar-expansion-plan#:~:text=The%20work%20was%20divided%20into,million%20units%20of%20energy%20annually." target="_blank" rel="noopener">allowed</a> the Punjab State Power Corporation to install rooftop solar systems across 1,013 office buildings under the capital expenditure model. The Commission approved the capital expenditure of ₹1.23 billion (~$14.32 million), which includes the total value of work orders issued across seven packages, covering applicable taxes and duties. However, PSERC rejected the inclusion of administrative charges of ₹326.4 million (~$3.8 million) in the capital cost, citing potential duplication. It noted that the charges are already accounted for in the annual revenue requirement under operations and maintenance expenses.</p>
<p>Military Engineer Services, under the Chief Engineer, Bathinda Zone, <a href="https://www.mercomindia.com/mes-floats-operation-and-maintenance-tender-for-5-mw-solar-project" target="_blank" rel="noopener">issued</a> a tender for the comprehensive operation and maintenance (O&amp;M) of a 5 MW solar project located across Suratgarh (2 MW), Sri Ganganagar (2 MW), and Kanasar (1 MW) in Rajasthan. Bids must be submitted by August 11, 2025. Bids will be opened on August 13. The scope of work entails routine and corrective maintenance, testing, record-keeping, and all related operational tasks across the three project sites. The contract will be for a period of 10 years. Regular performance evaluations will be conducted every six months during the contract period.</p>
<p>The Solar Energy Corporation of India <a href="https://www.mercomindia.com/seci-invites-bids-for-operation-and-maintenance-of-10-mw-solar-project" target="_blank" rel="noopener">invited</a> bids for the O&amp;M of a 10 MW ground-mounted solar power project in Badi Sid, Rajasthan, for five years. The last date to submit bids is August 5, 2025. Bids will be opened on the same day. The scope of work includes the O&amp;M of the project, as well as providing insurance coverage for five years. It also covers performance demonstration, storage of all spare parts, consumables, and repairs/replacements of defective equipment. It also entails arranging tools, tackles, logistics, test kits, manpower, and experts required for the operation of the solar power project.</p>
<p>With an installed capacity of 46.9 million tons a year, Shree Cement is among the leading cement manufacturers in India. In line with sustainability commitments, the company has recently <a href="https://www.mercomindia.com/shree-cement-aims-to-cut-reliance-on-grid-energy-with-6-mw-solar-project" target="_blank" rel="noopener">commissioned</a> a 6 MW solar project at its Roorkee facility in Uttarakhand. This project was developed with a capital investment of approximately ₹160 million (~$1.86 million). The solar project, adjacent to Shree Cement’s manufacturing facility, will help the company reduce its dependence on grid power and raise the Roorke plant’s solar capacity to 7 MW.</p>
<p>Switzerland-based impact asset manager responsAbility will <a href="https://www.mercomindia.com/august-energy-15-million-expand-india-renewables-portfolio#:~:text=Switzerland%2Dbased%20impact%20asset%20manager,on%20behalf%20of%20its%20investors." target="_blank" rel="noopener">invest</a> $15 million (~₹1.28 billion) in Singapore-headquartered energy-as-a-service infrastructure platform, August Energy, on behalf of its investors. The funding will support August Energy in expanding its portfolio of distributed renewable energy projects in India. The investment is part of responsAbility’s $500 million (~₹42.95 billion) climate investment strategy for Asia. It aims to accelerate the decarbonization of key economic sectors in emerging and developing Asian markets. August Energy aims to increase its installed capacity to over 1 GW within the next five years. The funding will also provide the company with flexibility to execute its growing project pipeline in the country over the next 12 months.</p>
<p>The U.S. Department of Commerce <a href="https://www.mercomindia.com/us-initiates-national-security-investigation-into-polysilicon-imports" target="_blank" rel="noopener">commenced</a> an investigation to determine the effects of importing polysilicon and its derivatives on the country’s national security. The investigation aims to assess the potential for export restrictions by foreign nations, including their ability to weaponize their control over polysilicon and its derivatives. Polysilicon is a key material used in the production of solar cells and modules. Commerce has invited interested parties to submit written comments, data, analyses, or other information pertinent to the investigation to the Department’s Bureau of Industry and Security and Office of Strategic Industries and Economic Security.</p>


Daily News Wrap-Up: MoP Launches Energy Efficiency Program for MSMEs


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					</table><p>The recent <a href="https://www.mercomindia.com/mcx-to-start-electricity-futures-trading-from-july-10-2025" target="_blank" rel="noopener">launch</a> of electricity derivatives by the Multi Commodity Exchange of India (MCX) and the National Stock Exchange (<a href="https://www.nseindia.com/" target="_blank" rel="noopener">NSE</a>) is a long-awaited reform, with a history spanning over 15 years.</p>
<p>In 2010, an attempt to launch electricity derivatives led to a significant legal dispute between key regulatory bodies, the Central Electricity Regulatory Commission (CERC) and the Securities and Exchange Board of India (SEBI). Consequently, the CERC&#8217;s Power Market Regulations 2010 completely prohibited the use of financial derivatives. The primary reason for this was that power sector reforms were in their early stages, and with electricity being an essential commodity, policymakers were cautious about potential misadventures in such a market.</p>
<p>However, times have significantly changed. Both regulators reached a consensus in 2020, and further approval from the Supreme Court in 2021 paved the way for the introduction of electricity derivatives.</p>
<p>The current outcome is that any contracts involving the physical delivery of electricity will be regulated by CERC, while all other contracts will be regulated by SEBI.</p>
<p>The launch of electricity derivatives is an important initiative for power sector stakeholders, including independent power producers, distribution companies, and bulk electricity offtakers.</p>
<p>Before we delve into use cases, let&#8217;s understand two very important parameters of electricity markets:</p>
<ul>
<li>Electricity is simply the movement of electrons. It cannot be stored (unless very expensive storage is involved), hoarded, or stockpiled. Hence, electricity prices are purely a function of demand and supply on a 15-minute block basis. This is the only commodity where speculation or price manipulation is extraordinarily difficult.</li>
</ul>
<ul>
<li>Electricity prices in India are subject to unprecedented volatility. While electricity prices in markets are highly subdued during solar hours (generally in the range of ₹2 (~$0.023)/kWh-₹3 (~$0.035)/kWh, prices can touch peaks (even as high as ₹8 (~$0.093)/kWh-₹10 (~$0.12)/kWh on the same day during peak timings or even at night nowadays. Such volatility in an essential commodity is highly undesirable.</li>
</ul>
<p>Electricity derivatives provide a very important instrument to counter this volatility. For example, when financial investors are able to square off their position at a higher rate based on the 24-hour cycle, they will be willing to pay a high price for electricity derivatives during solar hours, effectively lifting the price of physical power during those hours.</p>
<p>Similarly, during peak times, when they are squaring off their positions for a profit, they will be willing to sell the contract at a lower rate than physical power, which will bring down the price during peak hours.</p>
<p>Accordingly, when derivative markets are deep enough, it will significantly impact physical power prices, ultimately benefiting the sector.</p>
<p>With this understanding, let&#8217;s look at broad use cases for various stakeholders in the electricity markets:<strong> </strong></p>
<p><strong>Independent Power Producers (IPPs)</strong></p>
<p>For many years, IPPs have been exploring ways to finance merchant projects. However, financing for such projects is difficult as lenders are concerned about long-term revenue visibility (given price volatility). Many bulk electricity offtakers with net-zero targets have similar concerns.</p>
<p>Recently, CERC <a href="https://www.mercomindia.com/cerc-releases-draft-virtual-power-purchase-agreement-guidelines">issued</a> draft guidelines for the Virtual Power Purchase Framework. These contracts essentially shift (partially or fully) the market risk for sustainability offtakers. Electricity derivatives provide them with a much-needed instrument to hedge their market positions.</p>
<p>For example, say a sustainability offtaker executes a VPPA for 100 MW at a strike price of ₹3 (~$0.035)/kWh. With electricity derivatives, the offtaker can essentially hedge the entire market risk by taking a short position for 100 MW in derivatives at ₹3 (~$0.035)/kWh.</p>
<p>The following table illustrates the broad framework for such a transaction: <a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/electricity-deriv-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81992 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/electricity-deriv-1.png" alt="" width="751" height="244" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/electricity-deriv-1.png 751w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/electricity-deriv-1-300x97.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/electricity-deriv-1-650x211.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/electricity-deriv-1-624x203.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/07/electricity-deriv-1-600x195.png 600w" sizes="(max-width: 751px) 100vw, 751px" /></a></p>
<p>By taking the opposite position in the derivative market, an IPP or offtaker is essentially able to nullify any market risks in the contract.<strong> </strong></p>
<p><strong>Distribution Companies (DISCOMs)</strong></p>
<p>DISCOMs act as both sellers and buyers in physical power markets; however, they are price takers without any ability to influence the price. Especially during solar hours, most DISCOMs offload electricity at whatever prices the market is willing to pay, and then become net buyers during peak and nighttime hours.</p>
<p>This results in significant losses to the public as the cost is passed through to ordinary electricity users.</p>
<p>However, with electricity derivatives, DISCOMs may enter into block deals with a financial investor to mitigate price risks. For instance, a DISCOM  has a surplus of 100 MW during the daytime, which it intends to sell at ₹3 (~$0.035)/kWh, and becomes a net purchaser of 100 MW during peak time, which it intends to purchase at ₹6 (~$0.070/kWh. Simultaneously, a financial investor believes that daytime power should be ₹3.50 (~$0.041)/kWh and peak time power should be ₹5.50 (~$0.064)/kWh. This DISCOM may enter into a block deal for an equivalent amount of derivatives, for instance, at a rate of ₹3.25 (~$0.038)/kWh during the daytime and ₹5.75 (~$0.067)/kWh during peak time. This will enable both parties to gain ₹0.25 (~$0.0029/kWh.</p>
<p><strong>Bulk Electricity Offtakers</strong></p>
<p>Currently, most bulk electricity offtakers face a significant challenge in obtaining visibility into electricity volume clearance when purchasing electricity from exchanges. While bid or breakeven prices are known, volume clearances are subject to demand and supply during each 15-minute block. When the price discovered is higher than the bid price, volumes are not cleared, and the offtaker purchases the shortfall quantity from the DISCOM. If the price discovered is lower than the bid price, the difference is the net profit for the offtaker.</p>
<p>Using financial derivatives, bulk electricity offtakers may largely target monthly savings. They can take a buy position based on uncleared volume from the start of the month, with the premise that notional losses for uncleared volume are made good through profits made in the derivative market. The above provides a broad overview of the potential uses of derivatives. As the derivatives market deepens, a new wave of innovations is likely to drive the development of many new products. These innovations ultimately reduce price volatility and provide a stable market framework for all stakeholders in the sector.</p>
<p><strong>The views and analysis presented in this article are solely those of the author.</strong></p>
<p>(<em>The author </em><em>Aditya Malpani is Senior Director &amp; Regional Head &#8211; West, AMPIN Energy Transition</em>)</p>


Electricity Derivatives: A Gamechanger for Indian Power Market Stakeholders


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					</table><p>The Multi Commodity Exchange of India (<a href="https://www.mcxindia.com/" target="_blank" rel="noopener">MCX</a>) has secured approval from the Securities and Exchange Board of India (<a href="https://www.sebi.gov.in/" target="_blank" rel="noopener">SEBI</a>) to introduce electricity derivatives.</p>
<p>These financial instruments derive their value from electricity prices and are primarily used for hedging, speculation, or arbitrage. They enable power producers, distributors, and large consumers to manage risks associated with electricity price volatility. Instead of physical delivery, any gains or losses from price fluctuations are settled in cash, making the contracts purely financial.</p>
<p>According to Praveena Rai, MD and CEO at MCX, the launch of electricity derivatives is a significant milestone for India’s commodities landscape. She noted that these contracts will offer market participants a transparent, reliable, and regulated platform to manage the increasing price volatility in the power sector. The rising share of renewables and the shift toward market-based mechanisms are making electricity prices more dynamic, and derivatives can act as a crucial link between physical electricity markets and financial risk management.</p>
<p>Historically, India’s power sector has relied on long-term power purchase agreements (PPA) to mitigate price volatility. These contracts, often lasting 25 years, offer price stability but lack adaptability, as they do not reflect changing supply and demand conditions. As a result, stakeholders have limited flexibility in responding to market dynamics.</p>
<p>Meanwhile, the short-term power market, facilitated by power exchanges, has become increasingly unpredictable. Prices recently <a href="https://www.mercomindia.com/real-time-power-prices-on-crashes" target="_blank" rel="noopener">plummeted</a> due to surplus solar generation. The markets have also spiked to regulatory caps during peak demand hours. This unpredictability poses risks for both generators and consumers.</p>
<p>Electricity derivatives offer a potential solution to these challenges. Power generators can use them to hedge against price drops when selling in spot markets. At the same time, large industrial consumers can manage their electricity procurement costs more effectively by capping their exposure. Additionally, introducing these contracts allows traders and financial institutions to treat electricity like any other commodity, integrating it into investment portfolios with defined and measurable risk profiles.</p>
<p>Globally, electricity derivatives have played a crucial role in mitigating power market volatility across mature economies. In the U.S., exchanges such as the New York Mercantile Exchange and the Intercontinental Exchange (ICE) trade futures and options tied to major regional transmission organizations. In Europe, the European Energy Exchange handles a wide range of electricity derivatives, offering financial and physical settlement mechanisms. The UK’s power contracts are traded on ICE and Nord Pool N2EX, while the Australian Energy Securities Exchange offers baseload and peak load futures tailored to the National Electricity Market.</p>
<p>There has been a regulatory <a href="https://www.mercomindia.com/cerc-releases-draft-virtual-power-purchase-agreement-guidelines" target="_blank" rel="noopener">movement</a> to promote virtual PPAs as more commercial and industrial entities seek to meet their net-zero targets without needing the physical connection to a renewable energy project, especially those with distributed operations and leased facilities.</p>


MCX Gets SEBI Nod to Trade Electricity Derivatives

<p>The Multi-Commodity Exchange of India (<a href="https://www.mcxindia.com/" target="_blank" rel="noopener noreferrer">MCX</a>) announced that it has entered into a licensing agreement with the Indian Energy Exchange (<a href="https://www.iexindia.com/" target="_blank" rel="noopener noreferrer">IEX</a>) to launch electricity derivatives in the country.</p>
<p>Derivatives refer to financial instruments like bonds, stocks, and commodities that are traded based on the value of their underlying assets, which in this case would be electricity.</p>
<p>“The launch of electricity derivatives shall provide an effective risk management avenue and help the value chain participants to hedge price risks and protect their revenue margins. With this, India shall also join a select group of developed countries that offer electricity derivatives on an exchange platform,” said the press statement.</p>
<p>MCX stated that the electricity derivatives would be linked to spot electricity prices of IEX on the MCX trading platform. The agreement requires mandatory approvals from the central government and concerned regulators, it added.</p>
<p>According to MCX, it is India’s first listed electronic exchange platform that introduces commodity options in the country. Commodities such as energy, metal, and bullion are traded on the platform.</p>
<p>Electricity trading has caught the attention of the markets off late.</p>
<p>In August 2020, the Central Electricity Regulatory Commission <a href="https://mercomindia.com/cerc-approves-introduction-green-term/" target="_blank" rel="noopener noreferrer">approved</a> the introduction of the ‘Green Term-Ahead Market’ (GTAM) contracts on the Indian Energy Exchange, adding that it would provide an avenue for short-term trading of renewable energy.  This market now offers the trade of intraday and day-ahead contracts in both the solar and non-solar segments.GTAM has witnessed an encouraging response since its <a href="https://mercomindia.com/cerc-approves-introduction-green-term/" target="_blank" rel="noopener noreferrer">launch</a> and had <a href="https://mercomindia.com/green-term-ahead-market-trades-three-million-units/" target="_blank" rel="noopener noreferrer">registered</a> trade of three million units in the 11 trading days in August.</p>
<p>Mercom then <a href="https://mercomindia.com/trading-renewable-energy-certificates-postponed/">reported</a> that the Appellate Tribunal for Electricity (<a href="http://www.aptel.gov.in/" target="_blank" rel="noopener noreferrer">APTEL</a>) issued an order postponing the trading of renewable energy certificates scheduled for July 29 by four weeks in a hearing for an appeal by the Green Energy Association against the CERC on July 24, 2020. The matter is still pending, and power traders are in limbo.</p>


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