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India’s Largest REC Trading Company
OPEN ACCESSOPEN ACCESSOPEN ACCESS
January 2014
Volume - 39
From Management‘s Desk
In this volume, we have covered the recent results of JNNSM Phase 2 Batch 1, with generous inputs from a solar industry expert Mr. Gopal Lal Somani. We thank Mr. Somani for providing his inputs and expert views on the bidding process. In the regulatory updates section we have elaborated recently notified changes in CERC REC procedures and issuance fee payable to NLDC. Kerala’s draft on solar net-metering policy and Tamil Nadu’s draft RPO targets for FY15 and FY16 can also be read, along with few other updates. REC trade session concluded on 26th February 2014 posted a good show compared to last month. Clear-ing volumes improved owing to better demand. Solar REC segment saw a significant jump in volumes. More details can be read in our analysis on relevant pages. As always, we hope this issue to be an insightful read and will be keen to hear your feedback. - Team REConnect CO
NT
EN
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JNNSM bid results of
Phase 2 Batch 1
Regulatory Updates
REC Trade Results
REC Project Stats
Green News
About REConnect
JNNSM bid results of Phase 2 Batch 1
JNNSM bid results of
Phase 2 Batch 1 About REConnect Green News REC Project Stats REC Trade Report Regulatory Updates
www.reconnectenergy.com Page 1
45%
Market Share
in REC Trading
PAN
India
Presence
2.1 GW
Projects under
management
Managing REC
Projects in
16
States
The MNRE had authorized Solar Energy Corporation of In-
dia (SECI) to implement NSM Phase 2 program. In light of
this, SECI auctioned 750 MW of solar energy projects and
announced the financial bid results on 21st February 2014.
In the subsequent paragraphs, we have covered these re-
sults in detail.
We thank solar industry expert - Mr. Gopal Lal Somani,
who has graciously provided his inputs and comments
on the results of bidding process. A brief profile of Mr.
Somani can be read on Page No. 4.
A total of 68 bids were received from 58 developers, cover-
ing 122 projects with a cumulative capacity of 2,170 MW.
Of this, 36 projects with a capacity of 700 MW opted to bid
under the Domestic Content Requirement (DCR) part A of
the bidding process and the remaining 86 projects with a
capacity of 1,470 MW opted for the open category Part B.
Each part eventually got allocated an equal 375 MW capac-
ity projects. Bids by PMP Auto Components, Zandu Realty,
Golden Crystal and Green Energy Wind were cancelled as
they did not meet the techno-commercial criteria. The bid
by Moser Baer was cancelled as they could not provide
bank guarantee.
Figure 1 : Total projects & cumulative capacity that
participated in bidding of JNNSM Phase 2 Batch 1.
The financial bids followed a technical qualification
round. Developers competed in the reverse-bid auction
in two parts. Half the 750MW available had a mandato-
ry domestic content requirement (DCR), and the other
375MW was left open with no domestic requirement.
The US filed a complaint to the World Trade Organisa-
tion earlier this month claiming that it should have
equal access to the procurement round. First Solar had
dominated the thin film market in Phase I Batch 1 & 2;
courtesy a loop hole in previous JNNSM bids. The com-
pany which worked with the US Export-Import Bank on
a number of projects, missed out its share in this bid-
ding cycle. India in reply to allegations from US said -
that First Solar had missed out “only based on the bid
submitted by them. There are no political considera-
tions. India can not be blamed to be investment un-
friendly”.
The reverse bid mechanism included bids for viable gap
funding (VGF), a government capital subsidy to provide
up to 30% of JNNSM project costs subject to maximum
Rs. 250 lac / MW. There is a cap of up to 50MW per de-
veloper for funding applications.
The lowest bid under the DCR was for INR 13.5 million
(US$0.2 million) by Swelect for 10MW and highest bid
has been INR24.9 million (US$0.4 million) by IL&FS Re-
newables also for 10MW. Under the DCR, another 15
PPAs are to be signed for 21 projects, totalling
375MW.The lowest and highest VGF sought for projects
outside the DCR were INR 1.7 million by Gujarat Power
Corporation Limited (10 MW) and INR 24.9 million by
Madhav Infra (10 MW) respectively. The highest bid un-
JNNSM bid results of Phase 2 Batch 1
JNNSM bid results of
Phase 2 Batch 1 About REConnect Green News REC Project Stats REC Trade Report Regulatory Updates
www.reconnectenergy.com Page 2
45%
Market Share
in REC Trading
PAN
India
Presence
2.1 GW
Projects under
management
Managing REC
Projects in
16
States
der the non-DCR category is INR 24.5m (USD 0.4m) by
Tata Power Solar. Under the non-DCR category, 15 project
developers will be invited to sign power purchase agree-
ments (PPAs) for 24 projects totalling 375 MW. Part A with
the DCR oversubscribed twice whereas the non-DCR
(open) part B four times over. The entire capacity of 750
MW will be converted into Letters of Intent (LOI) likely to
be confirmed to respective winning bidders by end of
February.
The average project size per developer would be around
25 MW and top solar potential states i.e. Gujarat and Raja-
sthan are the most preferred locations opted by most de-
velopers for implementation.
VGF payments are estimated for non-DCR projects to cost
INR 97 billion (US$1.5 billion), whereas the DCR bids are
estimated to cost much more at INR 160 billion (US$2.5
billion).
The difference in government funding of INR 63 billion
(US$1 billion), has sparked questions from solar industry
analysts who are of the view that this funding should
have been extended as direct funding to encourage do-
mestic manufacturing instead.
It is speculated that some of the winning firms who
made aggressive bid would not sign the PPA and there-
fore the figures will not be final until PPAs are signed,
which is expected to happen by March/April 2014.
21st February 2014 was a momentous day for solar in
India as financial bids were opened at SECI. “
It may also be noted that the tariff for the NSM Phase II
Figure 2 : Maximum-Minimum VGF Sought in JNNSM Phase 2 Batch1,
Average VGF (DCR) - 22.14 million INR, Average VGF (non-DCR) - 15.7 million INR
JNNSM bid results of Phase 2 Batch 1
JNNSM bid results of
Phase 2 Batch 1 About REConnect Green News REC Project Stats REC Trade Report Regulatory Updates
www.reconnectenergy.com Page 3
45%
Market Share
in REC Trading
PAN
India
Presence
2.1 GW
Projects under
management
Managing REC
Projects in
16
States
batch I projects were fixed at Rs. 5.45/kWh while the bids
were called for Viability Gap Funding (VGF) required by the
developer.
“bidders enthusiasm and aggression in bidding perfectly
matched with NSM Phase I Batch 1 and 2 success stories.
This is due to declining cost trends in EPC cost, more relia-
ble players in the market, lenders confidence in funding on
higher efficiencies/output, improved performance, impro-
vised O&M (evidently observed in Phase I projects) and
bankable PPA with SECI.”
The lowest bid for VGF has been made by GPCL (Gujarat
Power Corporation Ltd), a Gujarat State company; also the
promoters of Gujarat Charanka Solar Park. This was the
first solar park in the country with more than 500MW in-
stalled capacity. The VGF bid by GPCL was a jaw-dropping
Rs. 17.5 lakhs/MW in the non-DCR category. The next bid
in the non-DCR category was Rs. 73.29 lac /MW by Sun-
Edison, a US based developer.
Amongst wide variance in bidding amounts from various
bidders in Part A and Part B, there were some bids in Part
A which matched with those of Part B, which is an indica-
tion that VGF can now be capped at INR 135 Lac/MW and
going forward paves the way for subsequent bidding cy-
cles conducted for entire capacities under VGF as it creates
more jobs and thrives economic development of India.
This will also allow large scale solar energy deployment
and boost local solar industry for sustainable development.
The success of this bidding has reconfirmed the interest of
investors in solar projects and is a big booster from crawl-
ing solar market.
The heavy VGF discounting seen in Part A and Part B is
almost unbelievable but allows Solar Power to emerge
as a clear winner.
“Achieving status of financial closure by all winning
bidders would be a world class result ever seen else-
where in emerging markets.”
- end of article -
-
Brief Profile of Mr. Gopal Lal Somani
JNNSM bid results of
Phase 2 Batch 1 About REConnect Green News REC Project Stats REC Trade Report Regulatory Updates
www.reconnectenergy.com Page 4
45%
Market Share
in REC Trading
PAN
India
Presence
2.1 GW
Projects under
management
Managing REC
Projects in
16
States
Mr. Gopal Lal Somani passed BE (Electrical Engineering) from MNIT, Jaipur in 1968 and joined Rajasthan
State Electricity Board as Assistant Engineer. He has worked for 34 years in different disciplines and gained
life time experience covering all fields in energy sector ranging from Generation (Coal, Gas, Hydro, Wind,
Solar and Biomass), Transmission, Distribution to Power Management. He has worked extensively in Re-
newable Energy portfolio since 1999 and has secured authoritative insight into India's solar energy devel-
opment and its cost effective market potential.
He has put dedicated efforts as a lead in electrification of 120 remote rural villages with 65,000 home
lighting systems using off grid stand alone PV systems. He has also brought the 140MW ISCC Mathania
Project in Rajasthan to the point of financial closure. With a sound professional background in Renewable
Energy, Mr. Somani has been instrumental and a pioneer in steering some of the most efficient wind, bio-
mass and solar energy projects in Rajasthan to date. Govt. of Rajasthan recognizing his excellence in life
time professional service delivery and valuable contribution to development of energy sector in Rajasthan,
felicitated him with Merit award for excellence in service by Hon’ble Governor, Rajasthan on the Republic
day, 26th January, 2003.
He has also bagged “SOLAR CHAMPION” award from European Solar Thermal Power Generation Industry
Association and Solar energy International Association of America on 23rd October 2003 at Palms Springs
in California,USA for enthusiastic efforts in developing Mathania Solar Thermal Power Plant and working
towards betterment of India’s energy supply, the global environment, and future generations.
He is a regular invitee as speaker and solar energy expert at international solar energy conferences orga-
nized by SolarPaces, Solar energy International, CSP Today and Renewable Energy World.
He has put concerted efforts working at Kota Thermal Power Plant, Rajasthan Renewable Energy Corpora-
tion, RERC and Ministry of New and Renewable Energy over the years in formulating renewable energy
policies and bankable feed-in tariff structures including competitive bidding. Throughout his illustrious
career, he has enjoyed a unique vantage point of India’s solar sector.
Regulatory Updates
JNNSM bid results of
Phase 2 Batch 1 About REConnect Green News REC Project Stats REC Trade Report Regulatory Updates
www.reconnectenergy.com Page 5
CERC revises REC issuance procedures CERC recently notified revised procedures for REC mecha-nism through an order dated 17th Feb 2014. Following are the changes: 1. REC registration applications Recommendation by SA for Registration of Project
under REC Mechanism in the format prescribed to be furnished along with the application.
Claim for refund to be made within 15 days from the day of payment. Claim made later will not be enter-tained.
Format of the declaration has been modified (Refer to the order).
2. REC Issuance applications : This procedure shall be applicable to all Eligible Entities, who have received Certificate of Registration‟ from the Central Agency, and shall be eligible to avail Renewable Energy Certificates from the date of commercial operation or from the 00:00 hrs of next day of Registration date of such plant by the Central Agency whichever is later. This deviates with the 2nd amendment of the REC regula-tions which says “After registration, the renewable energy generation plant shall be eligible for issuance of Certificates under these Regulations from the date of commercial operation or from the date of registration of such plant by the Central Agency whichever is later” Central Agency shall not issue RECs during the trading
session at the Power Exchange. The Eligible Entity shall apply for issuance of RECs
within six (6) months from the month in which RE was generated and injected into the electricity grid. At least 6 clear working days are available to Central Agency for considering the application.
The application for issuance of Renewable Energy Cer-tificates may be made on 10th, 20th and last day of the month.
3. Retention of RECs: SA to accept application for retention of RECs and
shall issue ‘certificate of purchase’ of RECs to the buy-er.
Eligible entity to apply it online from 1st to 5th of eve-ry month.
Hard copy of the application has to be submitted by
9th of every month to SA. SA to check the proposed volume and application by
15th of every month. SA to inform CA of list of RECs which will be by 22nd
of every month. 4. REC Accreditation application: The RE generator shall obtain a certificate from the con-cerned distribution Licensee for the connected load in case of co-generation plants. The Distribution Licensee shall issue such certificate within 15 days from the date of application by the RE Generator and the RE Generator shall submit it to State Agency along with application for accreditation. For changes in timeline of different procedures please refer the order. Comparative analysis w.r.t to previous orders for changes in timeline can be read on our blog.
Maharashtra revises procedures for Wind Open
Access
Keys points on Revised Procedure for Wind Open Access in Maharashtra: 1.i) For wind open access application process the docu-ments required would be: Last 3 months energy bills Consent letter from the wind generator Last 3 months generation credit note Declaration regarding installation of SEM at both
ends Last open access permission of consumer / generator OA through trader, copy of valid Trading License and
MoU between the trader & consumer/generator For Captive use, Chartered Accountant’s certificate
regarding 100% ownership of the wind power project or Equity share holding and undertaking regarding more than 51 % self-consumption
ii) Complete open access application to be submitted well in advance i.e. preferably 30 days prior to the date of commencement of open access. iii) If an open access consumer is situated in the License area of other utility / Distribution Licensee then copy of NOC / open access permission issued by the concerned Distribution Licensee shall be submitted along with the open access application.
India’s largest REC Trading Company
Regulatory Updates
JNNSM bid results of
Phase 2 Batch 1 About REConnect Green News REC Project Stats REC Trade Report Regulatory Updates
www.reconnectenergy.com Page 6
iv) If an open access consumer fails to achieve the Maxi-mum Demand equal to or greater than eighty (80) per cent of the threshold level, the open access permission will be cancelled and further he shall be liable to pay, to MSEDCL, a penalty equal to two times the wheeling charges for the financial year or part thereof for which he had failed to achieve such Maximum Demand. v) If the contract demand of the open access consumer is in the range of 1000 KVA– 1500 KVA then Renewal of Open Access Permission shall be subject to use of Maxi-mum Demand equal to or greater than eighty (80) per cent of the threshold level during previous open access period 2)Eligibility conditions: An open access consumer can avail power from a
Generating Company only, sourcing power from more than one / multiple generating companies will not be processed
Declaration in advance by OA consumer for sourcing power from other sources or generating company.
Open Access permission will not be granted to the consumers availing single point supply and sub dis-tributing it further to multiple consumers. Such con-sumers are required to apply for Distribution Franchi-see through MoU route as per relevant MERC & APTEL orders
The open access consumer will be entitled to seek open access for sourcing 100% power generated from a wind power project.
3) Metering: Installation of Special Energy Meter (SEM) at both ends i.e. at generation end and at consumption end of wind energy shall be mandatory to seek open access. 4) Energy Accounting & Billing: Joint Meter Reading (JMR), the monthly Generation
Credit Notes (GCN) will be issued by the field office in due course of time
The open access consumer/ generator shall arrange to pay the requisite open access charges (Wheeling charges, transmission charges, operating charges, charges for import of energy & KVARH charges) and collect the monthly GCN from field office regularly
Late fees of Rs. 5000/- will be recovered if the GCN is collected one month later than JMR. Similarly, late fees of Rs. 6000/- will be applicable for issuance of GCN after 2 months from JMR.
The GCN shall not be issued after 3 months from the Joint Meter Reading and the energy corresponding to the GCN shall be treated as lapsed
The field office, where the open access consumer is situated, will give corresponding TOD time slot - wise credit adjustment in the monthly energy bills of the open access consumer.
Open access consumer has to pay CSS charges for third party sale, CSS not applicable for captive.
5) Banking: MSEDCL, for the time being, has decided to provide the banking facility in part i.e. the wind generation units will be allowed to get carried forward for getting adjusted in next energy bills if could not be adjusted in same month till the end of that financial year, but the surplus units, if any, at the end of financial year will not be purchased by MSEDCL. 6) Change of option not permitted during validity period: OA consumer will be permitted only to change the op-tion from open access to Sale to MSEDCL during the va-lidity period of open access permission, no other option allowed. 7) Wind energy injected into the grid during the inter-vening period for which OA permission could not be granted due to late submission of OA application or change of option by wind open access generator from open access to Sale to MSEDCL during the validity peri-od of open access permission, will be purchased by MSEDCL at MERC tariff rate from the wind generators. Gr I: 10 % less than that of GR.II MERC rate of Rs. 2.52
per unit Gr II: Rs. 2.52 per unit. Gr III: As per MERC order dated 24.11.2003 Gr IV: Will not be purchased, wind energy will be
treated as lapsed. Order can be accessed here.
Kerala drafts regulation for net-metering of
small solar projects
Kerala State Electricity Regulatory Commission (KSERC) recently unveiled its draft copy of “KSERC – Grid Interac-tive Distributed Solar Energy Systems, Regulations, 2014 (refer). With this Kerala joins the league of states namely; Tamil Nadu, Andhra Pradesh, Delhi, Punjab and Uttarak-
India’s largest REC Trading Company
Regulatory Updates
JNNSM bid results of
Phase 2 Batch 1 About REConnect Green News REC Project Stats REC Trade Report Regulatory Updates
www.reconnectenergy.com Page 7
hand, which have a similar policy in their respective states. The highlights of the regulation are as under: Eligibility – All consumers are eligible to install solar ener-gy systems, either self-owned or that owned by a third party. The maximum capacity of solar energy systems shall be capped at 3 MW and should be in conformity with Kerala Electricity Supply Code’14. Cumulative capacity of all solar energy systems within a particular area shall be limited to 50% of local transformer capacity. If the cumulative capacity limit exceeds the above limit, licensee is obligated to replace the existing transformer with a higher capacity transformer within 2 months. Banking facility - Discoms are obligated to provide bank-ing facility to eligible consumers only upto a target capac-ity of solar RPO. Eligible consumers not in ToD regime is allowed to use the same regardless of any specific period. Licensee shall provide net-metering arrangement to con-sumers, and consumer shall be liable to pay security de-posit & rent as per norms determined by KSERC. A consumer can supply excess power to any other self owned premise located anywhere, within the same distri-bution area, provided wheeling charges of 5% are paid for wheeling of power. The consumer will receive payment for excess generation of solar power injected in distribution network at APPC (1.99 Rs. per unit). If an eligible consumer happens to be an obligated entity as per relevant RPO regulations, then the energy con-sumed by the consumer will be accounted towards solar RPO. There shall be no banking or cross subsidy charges appli-cable on any eligible consumer. A summary of such policies across other with main points can be read at our blogpost.
Rajasthan to finalize APPC for its discoms State owned distribution companies in Rajasthan namely; Jodhpur Vidyut Vitran Nigam Limited (JdVVNL) and Jaipur Vidyut Vitran Nigam Limited (JVVNL) have filed petitions for APPC determination of FY13 and FY14 respectively. The commission had previously declared provisional AP-PCs for both.
Before going in to the details, it is pertinent to note the definition of APPC being followed by Rajasthan – “Pooled Cost of Power Purchase: The weighted average price at which the distribution licensee has purchased the electricity including cost of self generation, if any, in the previous year from all the energy suppliers, exclud-ing short term power purchases and those based on re-newable energy.” Unlike other states Rajasthan excludes short-term power purchases also, along with renewable power purchases. JdVVNL petition for finalization of APPC FY13 - RERC had finalized a provisional tariff of Rs. 2.75 per unit for FY13 as per its order dated 11th Jan 2013. Whereas, in the current petition based on audited accounts JdVVNL has asked for approval of Rs. 2.6713 per unit as per audited accounts of FY12. Comment invited by 5th March 2014. JVVNL petition for finalization of APPC FY14 - In case of JVNNL, RERC has been asked to finalize the APPC of FY14 as Rs. 3.0865 per unit as per audited ac-counts of FY13. Comments invited by 28th February 2014. Our previous blogpost on Rajasthan APPC can be read here. Blogposts on all other states APPC can be read here. Govt. pushes for stronger RPO enforcement The Ministry of New & Renewable Energy (MNRE) has written to Ministry of Power (MoP) to include stronger enforcement provisions in the Electricity Act itself, which at present is absent. An article in Business Standard, quoted Joint Secretary of MNRE saying the following, at an event: “What we have requested is that the Electricity Act itself should mention about RPO… Or there (should) be some other alternative, so that it becomes binding. Also the enforcement provision should be more stronger,”. He also called for greater investments in renewable ener-gy sector of India. REC markets have been performing poorly. In January 2014 also, which was 1st month of last quarter of FY14, the volumes remained far from encouraging and result-ed in continued clearing of RECs at floor price. More in-sights can be learnt by clicking here – REC Trade Report – January 2014.
India’s largest REC Trading Company
Regulatory Updates
JNNSM bid results of
Phase 2 Batch 1 About REConnect Green News REC Project Stats REC Trade Report Regulatory Updates
www.reconnectenergy.com Page 8
As on 21st February 2014, the REC inventory stands at 4,55,998 non-solar RECs and 1,15,565 solar RECs. This is also the first time that the closing balance for a particular month, in case of solar RECs has breached the 1 lac mark. According to recent details made public by Hon’ble MNRE, as on 31st January 2014, the total grid connected renewable capacity of the country has touched 30 GW. However, the achievements highlighted are only around 50 % of the target for the year. The details can be ac-cessed here – MNRE – Physical Progress (Achievements).
Gujarat DISCOMs approach CERC to seek REC benefits Gujarat Urja Vikas Nigam Limited (GUVNL) on behalf of DISCOMs , had approached Hon’ble CERC for certain amendments to REC regulations, enabling the former to claim solar RECs as “Eligible Entity” for excess procure-ment over & above the stipulated RPO targets. GUVNL had submitted (in Petition no. 128/MP/2013) that dis-allowance of RECs for excess solar power procurement after meeting RPO targets, is a disincentive for DISCOMs who have been buying solar power at promotional tariffs with an aim to promote solar power generation in the state. The matter is unprecedented because an obligated entity (usually a buyer of RECs) wants to claim RECs for excess power procurement and not excess power generation. In the order dated 2nd Dec 2013 (refer), GUVNL brought forward that DISCOMs had to tie up solar capacity of 380 MW to comply with RPO targets (of 1% in FY13). DIS-COMs in-fact have signed PPAs of 971.5 MW solar capaci-ty, that too at promotional tariffs. GUVNL has also argued that buying costly solar power from developers is going to financially impact the con-sumers in the state as the higher cost of power procure-ment is passed on to them. To abrogate such a case, it proposes to claim RECs which will reward DISCOMs as well as take care of consumer interests. GUVNL also re-quested for a provision where RPO surplus DISCOMs are allowed to exchange RECs with RPO deficit ones by by-passing prevailing exchange based transactions. In our view, this particular demand questions the very purpose of having a double side closed fair market-based mecha-nism for RECs. GUVNL had also prayed the apex commission puts in place a uniform solar RPO target for all states in India. CERC, in the order, is of the view that current regulations
stipulating generators only for claiming RECs is adequate for a healthy REC market. Hon’ble commissions decision can be read as - “The Commission is of the view that the existing provi-sions of eligibility in the REC Regulations which is lim-ited to generating companies is adequate at this stage of development of REC market. Without going into the merit of the issues raised, we intend to clarify that filing of the petition is not the proper process for initiating the amendment to the existing regulations. The Commission under Section 178 of the Act has been vested with the power to make, amend and repeal the regulations on the subjects which have been authorized under various pro-visions of the Act. Action to make or amend the regula-tions is initiated when the Commission is satisfied that there is need for such regulations or amendment to the existing regulations.” However, the commission directed its staff to analyse the issue and come up with an appropriate proposal for con-sideration. According to Press Information Bureau (Release ID :103402) the matter was brought to light by Hon’ble Minister of New & Renewable Energy in the Lok Sabha (on 7th Feb 2014). In a written reply Hon’ble Minister quoted that obligated entities were free to procure pow-er over and above RPO targets and that any changes to existing regulations is a quasi-judicial process and the CERC takes a view after following due process of law in-cluding public hearing.
Tamil Nadu drafts RPO targets for FY15 & FY16 Tamil Nadu Electricity Regulatory Commission (TNERC) recently issued a draft order on RPO targets for FY15 & FY16. The following are the targets proposed by the commission: This implies that obligated entities (Distribution Licen-sees only) in Tamil Nadu will now have to consume a minimum of 9% of non-solar power/RECs and 2% of so-lar power/RECs to comply with RPO targets in FY15 and FY16. The order is yet to be finalized and comments on the same have been invited no later than 24.02.2014. Solar RPO target is a highlight as it has been taken up from currently 0.05 % to 2 %. This shows TN’s strong commitment towards fostering solar generation in the state.
India’s largest REC Trading Company
Regulatory Updates
JNNSM bid results of
Phase 2 Batch 1 About REConnect Green News REC Project Stats REC Trade Report Regulatory Updates
www.reconnectenergy.com Page 9
Given the fact that a recent judgement by ApTel had set aside state’s ambitious solar policy (for a relevant blog-post – click here), this particular step from TNERC is laud-able.
Table 1: Tamil Nadu’s proposed RPO targets FY15 and FY16
Present draft order can be accessed here. Previous final RPO order can read by clicking here.
CERC reduces REC issuance fee payable to NLDC In an order dated 05.02.2014. the apex electricity regula-tor CERC extended the existing fees and charges chargea-ble by the central agency (NLDC) for registration of REC projects till 31.03.2014. The decision was taken by CERC after scrutiny of audited accounts of the central agency. The registration charges as tabled below, are going to be in effect even after 31.03.2014, till any further orders. While there was no change in registration charges, the issuance fee for RECs charged by NLDC was reduced to Rs. 4 per certificate. This is going to continue for a period of one year with effect from 01.04.2014. Summary of changes - Fees & Charges for Registration – Same as in Table 1 (Till further orders). Issuance fee – Rs. 10 per certificate ( till 31.03.2014). Issuance fee – Rs. 4 per certificate (from 01.04.2014 to 31.03.2015).
The order can be read by clicking here. An article in Economic Times can be read here.
Table 2 : Fees & Charges for Registration
- end of section -
India’s largest REC Trading Company
Column 1 Column 2 Column 3
Year
Minimum
quantum of
total renewa-
ble purchase
obligation in
%age ( in
terms of en-
ergy in kWh)
Minimum
quantum of
solar renewable
purchase obli-
gation in %age
out of total re-
newable pur-
chase obliga-
tion mentioned
in Column 2 (in
terms of ener-
gy in kWh)
2014-15 11.00% 2.00%
2015-16 11.00% 2.00%
Fees & Charges for Registration
Particulars Amount
in Rs.
Processing Fees (One Time) 1000
Registration Charges (One time upon
registration) 5000
Annual Charges 1000
Revalidation charges at the end of 5
years 5000
REC Trade Report - February 2014
JNNSM bid results of
Phase 2 Batch 1 About REConnect Green News REC Project Stats REC Trade Report Regulatory Updates
www.reconnectenergy.com Page 10
Non Solar RECs
February 2014 was the second last trade session of Q4 for FY14. As per REC Registry, the market redeemed a total
of 3.87 lakhRECs (up by 6 % as compared to last month). At this end of this day, the inventory has a closing bal-
ance of 44.36 lakh RECs.
Buy bids for non-solar credits rose by 5.5 percent in comparison to last month’s stats. Clearing Ratios were at par-
ity for both exchanges (IEX and PXIL) and was recorded just over 8% in terms of non-solar RECs. The total transac-
tional value of non-solar RECs was 568 million INR, with price of each non-solar REC remaining at floor (Rs. 1500
per Non Solar REC). REC registry noted a total non-solar RECs redeemed to be around 3.78 lakh.
For a glimpse of supply demand curve please visit our Blog.
India’s largest REC Trading Company
For past trading history - CLICK HERE
REC Trade Report - February 2014
JNNSM bid results of
Phase 2 Batch 1 About REConnect Green News REC Project Stats REC Trade Report
Regulatory
Updates
www.reconnectenergy.com Page 11
Solar RECs
Demand of solar RECs jumped by an encouraging 30.58 percent compared to January 2014 trade session alt-
hough solar RECs continued to trade at floor price (Rs. 9300 per solar REC). This was the 9th consecutive month for
which the prices remained at floor. Total solar REC transactional value was also recorded low at about 77.2 million
INR. As per REC registry, 8308 solar RECs were redeemed.
Supply also moved upwards by a sharp 26.35%.
For more insights please visit our blogpost - REC Trade Report - February 2014.
India’s largest REC Trading Company
For past trading history - CLICK HERE
REC Project Status - As on February 21st, 2014
JNNSM bid results
of Phase 2 Batch 1 About REConnect Green News REC Project Stats REC Trade Report Regulatory Updates
www.reconnectenergy.com Page 12
Registered Capacity
4083.571 MW
India’s largest REC Trading Company
Projects Registered
State wise
Projects Registered
Source wise
All figures
in MW
All figures in
MW
Biomass
649.395
Small Hydro
195
Solar PV
328.84
Wind
2166.4 Bio-fuel
Cogeneration
734.268
Green News - National
JNNSM bid results
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“Maintaining new grid code tough task for DISCOMs”
Maintaining new grid code for retaining power frequency is a daunting task for discoms in view of falling hydro-
power output, former National Hydro Power Corporation Ltd chairman Yogendra Prasad said here. "The new grid
code for retaining frequency of power generated on the grid is between 49.9 Hz - 50.05 Hz. It is a daunting chal-
lenge for discoms," Prasad said at the 2nd India Power & Energy (IPE) Conclave 2014 held here yesterday.
Source: Moneycontrol
Government considering amendments to electricity tariff policy
Government is considering “suitable amendments” to the electricity tariff policy which would benefit various cate-
gories of consumers, the Power Ministry said on Thursday. The draft amendments in the Tariff Policy were put out
for public comments last September. Power Minister Jyotiraditya Scindia informed the Lok Sabha that suitable
amendments are under finalization with regard to tariff policy. Source: Hindu Businessline
Karnataka to unveil new solar policy soon
The State government is soon expected to announce a new solar power policy which will seek to increase solar
power production in the state to 2,000 MW by 2020. The policy, which, is in its final draft stage, will be submitted
to the government on Wednesday. Speaking at a meeting of the ‘Climate Parliamentarians’, Managing Director,
Karnataka Renewable Energy Development Limited (KREDL), G V Balaram, said, “We are looking at commissioning
around 500 MW of solar power projects every year till 2020. We also want to promote smaller projects of 1-3 MW
capacity in which farmers can become equity partners and generate power." Source: Indian Express
Planning commission: India to double renewable power capacity by 2017
India will add nearly 30,000 MW of power generation capacity from renewable energy sources — doubling it from
the current size — in the next four years, a senior official said on Wednesday. “We plan to add around 20,000 MW
of wind and around 10,000 MW of solar capacity by 2016-17,” said B K Chaturvedi, Planning Commission Member
(Energy). At present the renewable energy capacity in the country is around 30,000 MW. “India has massive re-
newable energy source, we have around 30,000 MW of renewable energy at present, of which around 20,000 MW
is wind energy, a lot of it is bio energy primarily from sugar factories which is co-generation and some of it is so-
lar,” Mr. Chaturvedi said. Source: The Hindu
‘Solar power unviable under current tariff structure’
The Maharashtra Government can ill-afford to harness solar power with the current tariff structure that cross-
subsidises low-end consumers by charging high-end users more. Speaking at a discussion on grid connected so-
lar rooftop systems, Ajoy Mehta, Principal Secretary, Energy, Maharashtra, said that against a procurement cost of
RS. 3.30-3.50 a unit of conventional energy, the Brihanmumbai Electricity Supply and Transport Undertaking at the
lower end charged ₹3.50/unit and for large commercial consumers, Rs. 11/unit. Source: Hindu Businessline
Enhanced solar purchase obligation can create 1000 MW capacity
The proposal to make Tamil Nadu’s electricity distribution company Tangedco to get 2 per cent of the electricity it
sells from solar power plants, will result in the creation of solar power capacity of 1,000 MW in the State, calcula-
tions show.The proposal was put up for public comments in the form of ‘draft amendment’ to its RPO rules by the
State’s electricity regulatory commission, TNERC. Source: Hindu Businessline
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JNNSM bid results
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Status of Regulation - Final for all states.
^ data as per CSERC Draft RPO regulation.
RPO on OA Users? - Yes for all states.
Gujarat - Not Available.
Karnataka - Yes (> 5MW) 5.00% RPO.
West Bengal - Not Applicable.
RPO on CPP? - Yes for all states.
Gujarat - Yet to be notified.
Bihar, Haryana, Orissa, Jharkhand, Tripura, Karnataka(5.00% RPO) - Yes (> 5MW).
West Bengal - Not Applicable.
RPO Penalty? - Yes (RECmax) for all the states.
West Bengal - Not Specified.
** RPO targets are not determined for FY14 and are assumed to continue FY13 target levels.
* 10% + 0.25% (BESCOM,MESCOM,CESC), 7% + 0.25% for others.
States
2013-14 RPO
Obligation
(Non Solar)
2013-14 RPO
Obligation
( Solar)
Andhra Pradesh 4.75 % 0.25 %
Assam 5.40 % 0.20 %
Arunachal Pradesh 5.45 % 0.15 %
Bihar 3.50 % 1.00 %
Chhattisgarh 5.75 % ^ 0.50 %^
Delhi 4.60 % 0.20 %
Gujarat 6.00 %** 1.00 %** Haryana 2.90 % 0.10 % Himachal Pradesh 10.00 % 0.25 % J&K 4.75 % 0.25 %
Jharkhand 3. 00 % 1.00 %
Karnataka 10.00 % * 0.25 % *
Kerala 3.65 % 0.25 %
Madhya Pradesh 4.70 % 0.80 %
Maharashtra 8.50 % 0.50 %
Meghalaya 0.60 % 0.40 %
Orissa 5.80 % 0.20 %
Punjab 3.37 % 0.13 %
Rajasthan 7.20 % 1.00 %
Tamil Nadu 8.95 %** 0.05 %**
Tripura 0.90 % 0.10 %
Uttarakhand 5.00 %** 0.05 %**
Uttar Pradesh 5.00 %** 1.00 %**
West Bengal 3.90% 0.10 %
Goa & UTs 2.60 % 0.40 %
Manipur 4.75 % 0.25 %
Mizoram 6.75 % 0.25 %
Nagaland 7.75 % 0.25 %
India’s largest REC Trading Company
About REConnect
JNNSM bid results
of Phase 2 Batch 1 RPO Map Green News REC Project Stats REC Trade Report Regulatory Updates
www.reconnectenergy.com Page 14
REConnect Energy is India’s leading renewable energy trading company. We provide end-
to-end services for projects in the Renewable Energy Certificate mechanism – from con-
tract structuring and advisory to monetization of RECs. We also work with consumers to
manage Renewable Purchase Obligation liabilities, and develop and execute their energy
sourcing strategy. We are a knowledge focused company that prides itself in providing
premium services to our clients backed by in-depth research and analysis.
REConnect is run by an experienced and professional team. The team consists of members
with relevant experience of working at IEX, L&T, JP Morgan, Arthur Andersen and Gensol.
Key members of the team are alumnus of IIT Bombay, Columbia University (an Ivy League
university) and IIT Kharagpur.
For more details of services provided and profile of the management team, please visit our
website.
Contact Details
Bangalore:
Vishal Pandya
# 4123, 6th Cross, 19th Main,
HAL 2nd Stage, Indiranagar,
Bangalore 560008.
O : 080 - 6547 3383 / 84
F : 080 - 30723571
New Delhi:
Vibhav Nuwal
# 216, Nirvana courtyard, Nirvana
Country, Sector 50,
Gurgaon 122018.
O : 0124 - 4103216
F : 080 - 30723571
Chennai:
Rajesh Vaidyula ( +91 9940478306 )
# 18/1 (88), 2nd Floor, Aarya Gowda
Road, West Mambalam,
Chennai - 600 033.
Hyderabad:
Bhanu Tejja
( +91 7799874036 )
Solar Market:
Anurag Dhyani
( +91 7760300499 )
India’s largest REC Trading Company
Mumbai:
Ram Kumar ( +919930359992 )
Haware Fanatasia
Business Park,
F 159, Plot no. 47,
Sector 30-A, Vashi,
Navi Mumbai 400703.
Renewable Purchase Obligation (RPO):
Chetan Singh Adhikari ( +91 9910772666)
Renewable Regulatory Fund (RRF):
Vineet Shastry (+91 9972290511)
