Wind Force Newsletter Nov, Edition, 2011

WinDForce Achievement

On October 30, Cairo, Mr. Jami Hossain (Co-Founder WinDForce) has been elected as

Treasurer of the Bonn based World Wind Energy Association (WWEA). Earlier Mr. Hossain

has functioned as auditor of WWEA.

MNRE's Renewable Energy (Akshay Urja), October Issue has covered broadly articles /

findings of Mr. Hossain. The key topics covered under Developments and Trends in Wind

Technology are:

1) Potential for Utilisation of Wind Energy;

2) Wind Technology - Major Technological Trends;

3) Other Technological Developments – Blade Design, Blade Materials & Manufacturing,

Mechanical Transmission, Variable Speed Vs Fixed Speed WTGs and Challenges.

Full version of issue can be downloaded from:

http://www.mnre.gov.in/akshayurja/akshayurja-october-2011/index.htm

http://www.mnre.gov.in/akshayurja/akshayurja-october-2011/all%20page%20of%20magazine.pdf

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www.windforce-management.com

Enabling High Efficiency and Reliable Wind Power Projects

Policy and Regulatory

1. Tariff Hike by Karnataka DISCOMs

Karnataka DISCOMs have announced revision of electricity tariff for FY 2011-12. Earlier it

was proposed to increase the energy charges by 88 paise per unit, but after the court

hearings it is now decided to increase it by 30 paise per unit. The new tariff details are as

below:

2. Amended Wheeling and Banking Agreement issued by KERC

KERC (Karnataka Electricity Regulatory Commission) has amended earlier wheeling and

banking agreement. The key highlights of the amendment are as followings:

ŸCompany (wheeling the power for own use or wheeling to its consumer) has to pay

Wheeling charges for using the distribution network as per as per KERC orders dated

09.06.2005 and 11.07.2008 which is 5% of metered energy.

ŸThe Company shall be permitted to “Bank” the energy generated by the WPP with

Utility for its own use at later months or for Wheeling to its Consumers in accordance

with the norms prescribed by the KERC in its order dated 11-07-2008.

ŸEnergy generated at the plant shall be banked on Water/Wind year basis and will be

permitted to be carried forward from month to month within the same water/wind

year. No carry forward of Banked energy is permitted from Water/Wind year to st th Water/Wind year. Where “Water year” shall mean “from 1 day of July to 30 day of

June of next year” and “Wind Year” shall mean “year commencing from April to March

of next year”.

ŸBanking charges are 2% of energy banked.

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HT Industrial

Particulars Existing Tariff New tariff

Demand Charges Rs 170/KVA Rs 170/KVA

Energy Charges - -

Cons.< 1 lakh units/ month 4.6 4.9

Cons.> 1 lakh units/month 4.9 5.2

HT Commercial



Energy Charges - -

Cons.< 1 lakh units/ month 6 6.3


Ÿ Company shall submit a list of “Exclusive Consumers” and “Partly Exclusive consumers'

to whom it proposes to wheel power using the Utility transmission and distribution

network at least 15 days in advance of date of commencement of wheeling. The Utility

shall, subject to availability of transmission and distribution network, approve the

same. Any addition / deletion to the list or change in allocation should be approved by

the Utility. An agreement shall be entered into between Company and consumer(s)

agreeing to all the relevant conditions of this agreement and shall be made available to

the Utility before commencement of wheeling.

Ÿ The Company should wheel power only to those stipulated HT consumers who are

having no arrears with the utilities. In case of “Partly Exclusive Consumers”, who avail

power both from the Company and the ESCOM, the first charge shall be the power

supplied by the Company through wind project.

Ÿ Neither the Company nor its Exclusive consumers are entitled to any rebate / remission

or reduction in demand charges and shall pay the demand charges to ESCOM as per the

Applicable Tariff till such time KERC notify the prescribed grid support charges. In

respect of Energy Wheeled to these “Exclusive Consumers” payments for energy

Wheeled shall be made by these consumers directly to the Company. However,

ESCOM is to prepare bill for demand charges only to Exclusive Consumers who has to

pay the same accordingly to ESCOM.

Ÿ In respect of “Partly Exclusive Consumers” the bills for quantum of energy drawn from

the ESCOMs account will be prepared and sent to the consumer and these Consumers

shall pay both Energy and Demand charges directly to ESCOM to that extent.

3. Karnataka ESCOMs revised ARR

ESCOMs in Karnataka (BESCOM, MESCOM, GESCOM, HESCOM, and CESC) have filed a

revised ARR with KERC. The key points discussed in ARR are as follows:

a. Revision in HT Industrial and Commercial Tariff

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HT Industrial

Particulars Existing Tariff New Tariff


Energy Charges - -

Cons.< 1 lakh units/ month 4.6 4.9


b. Time of Day Tariff

The wheeling charges as determined above are applicable to all the open access

transactions for using the ESCOM's network, except for energy wheeled from NCE sources

to the consumers in the State. In case the NCE energy is wheeled from the State to a

consumer/others outside the State, the wheeling charges in such cases would be as per the

wheeling charges determined above. For the wheeling of NCE energy within the State, the

wheeling charges shall be 5% of the injected energy and for wind and mini-hydel sources

of energy, additional banking charges of 2% are applicable, irrespective of the network

used.

a. Cross subsidy surcharge- Commission has decided to retain the cross subsidy surcharge

at zero.

b. Tariff for Green Power - As in the Commission Order 7.12.2010, the Commission decides

to continue Green Tariff at Rs 1.00 per unit as the additional tariff over and above the

normal tariff to be paid by HT-consumers, who opt for Green Power.

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HT Commercial



Energy Charges - -

Cons.< 1 lakh units/ month 6 6.3


BESCOM, MESCOM, HESCOM, GESCOM, CESC

Existing New

22.00 Hrs to 06.00 Hrs (-) 80 paise per unit (-) 125 paise per unit

06.00 Hrs to 18.00 Hrs 0 0

18.00 Hrs to 22.00 Hrs + 80 paise per unit + 100 paise per unit

Existing New

Wheeling charges (Paise

per unit)

Wheeling losses (%)

Wheeling charges (Paise

per unit)

Wheeling losses (%)

BESCOM 10.00 2.99% 10.0 2.94%

MESCOM 17.00 4.70% 19.0 4.35%

HESCOM 24.00 9.70% 20.0 9.38%

GESCOM 21.00 5.90% 20.0 5.98%

CES Corp. 17.00 5.92% 18.0 5.13%

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What's New

1. Network Augmentation Charges for Non Conventional Energy generators in Karnataka

Karnataka Power Transmission Corporation Ltd. (KPTCL) Bangalore, has filed a petition

before the Commission under sections 86 and 94 of the Electricity Act, 2003, seeking

approval of Network Augmentation Charges at Rs. Five Lakhs per MW for Non

Conventional Energy Generators in the state of Karnataka.

Network Augmentation Charges were collected from NCE generators in the areas where

there were constraints in transmission network and capacity as these network

constraints were posing problems for evacuation of power.

The Commission also held a Public Hearing on 16.11.2011 at 3 p.m. in the Court Hall of the

Commission to hear the petition and elicit the views of interested persons in the matter.

2. Power Exchanges raised REC Trading Charges

IEX and PXIL have raised trading charges of most of the power trading products. However,

REC trading charges have only been revised by IEX. REC trading charges at IEX are now Rs

20/REC (up from Rs 10/REC). At PXIL, charges remain at Rs 10/REC. These revised fees have th thbeen effective from trading day- 27 October 2011, for all REC Traded on 27 October and

thereafter.

3. Rajasthan DISCOMs' pooled cost of power purchase (APPC)

Rajasthan DISCOMs have recently announced their pooled cost of power purchase for

2011-2012 which is as follows:

Since audited accounts of previous year are not available and are likely to take some more

time, the Commission has allowed the pooled cost of power purchase for FY 2011-12 on

provisional basis.

Commission has directed the DISCOMs to file a fresh petition for determination of final

pooled cost of power purchase for FY 2011-12 based on audited accounts of FY 10-11. After

the issue of Commission's order for the final pooled cost, the difference with the

provisional pooled cost of power purchase shall be adjusted equally in the bills of next

four months or as decided by the Commission in that order. Already 7 numbers of WPPs

totalling to 39.95 MWs has been accredited under REC scheme in Rajasthan out of which 4

numbers totalling to 27.65 MWs has already got the registration at Central Agency.

Name of DISCOM Provisionally allowed by Commission for FY 2011-12 (Rs./kWh)

JVVNL 2.57

AVVNL 2.57

JdVVNL 2.57

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4. Kerala announces Revenue Sharing policy for Tribals

UDF government in Kerala has announced a revenue sharing policy for tribals who assign

their land to set up wind energy units in the state. As per an order issued, the owners would

get five per cent of the revenue from the sale of power generated at the wind farms set up in

their lands. The order would be applicable to all tribal lands in the state where there was

possibility of setting up wind energy farm units, the release added.

1. Rajasthan Renewable Energy Corporation Limited has come out with an NIT inviting

bids for setting up of ~20 MW WPP in Rajasthan.

2. Rajasthan State Mines & Minerals Limited has come out with an NIT inviting bids for 10

MW WPP in Rajasthan on LSTK basis.

3. Rayala Wind Power Company Private Limited has come out with an NIT inviting bids for

execution of 100 MW WPP at district Anantapur, Andhra Pradesh.

4. NREDCAP Tender has come out with an NIT inviting bids for setting up of 8 MW WPP at

Rekulakaunta, Anantapur district, Andhra Pradesh.

5. Bharat Heavy Electricals Limited (BHEL) seeking partner for technology collaborator for

Wind Energy Generator and has come out with EoI.

Ÿ Challenges & Opportunities in the Power Sector on Wednesday, November 30, 2011 in

Ahmadabad, organized by IPPAIth th

Ÿ Wind IPP Summit 2012 to be held on 17 -18 January at Mumbai, organized by

Renewable Markets Indiard

Ÿ 3 International Wind Conference & Exhibition WE 20 by 20-20,Coimbatore, Feb 05-07,

2012

Tenders

Upcoming Events

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SR.NO STATE CAPACITY ADDITION (MW)

1 Suzlon Energy 510.35

2 Enercon 315.2

3 Regen Powertech 199.5

4 Gamesa 165.75

5 Vestas Wind 86.1

6 INOX Wind 42

7 Leitner Sriram 31.5

8 Global 20

9 RRB Energy 13.8

10 Kenersys 8

11 Pioneer Wincon 7.5

12 WinWind 5

13 Shriram EPC 3.5

14 C-Wel 3.25

Total 1411.45

India Installation FY 12 - H1

SR.NO STATE CAPACITY ADDITION (MW)

1 Andhra Pradesh 11.5

2 Gujarat 251

3 Karnataka 93.3

4 Madhya Pradesh 54.2

5 Maharashtra 150.8

6 Rajasthan 226.35

7 Tamil Nadu 624.3

Total 1411.45

State-wise Installation

Manufacturer-wise Installation

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The above graph indicates that the equilibrium price of REC traded at both the exchanges is

increasing every month. Moreover traded volume at both the exchanges is also increasing. thIn the recent trading held on 27 October 2011, there were buy bids for ~2,35,404 RECs

th against sell bids for ~1,38,625 RECs, where as in the last trading held on 28 September

2011, there were buy bids for ~2, 27,000 RECs RECs against sell bids for ~85,600 RECs RECs.

In the last trading at IEX, RECs have been sold @ Rs. 2700/ Mwh.

From the above graph it can clearly be said that during the last one and a half year, most of

the time, except 1-2 month, short term market price of electricity in bilateral arrangement is

higher than that at power exchanges. This analysis includes only inter-State transactions.

Electricity price in bilateral arrangements, in year 2011 is lesser than price in year 2010

showing a clear decrease in prices. This may be due to excess power added in the system

with the same transmission capacity availability resulting in more and more transmission

constraint, especially in southern regions / grid.

REC Trading

Electricity Price

Corporate Office

WinDForce Management Services Pvt. Ltd.th5 Floor, Universal Trade Tower

Gurgaon - Sohna Road

Gurgaon - 122001, Haryana

Tel: +91 - 124-4353100

Fax: +91-124-4102980

Web: www.windforce-management.com

Contact Us

Kindly write to us if you have any comments on this Newsletter. Your valuable

feedback on this would motivate and help us in improving the quality and enriching

the content. We are eagerly waiting for your kind response to the articles presented in

this Newsletter.

Parish Gupta

Mob: +91 98717 11445

E-mail: [email protected]

Rupesh Singh

Mob: +91 96507 58884

E-mail: [email protected]

A WinDForce Publication

Disclaimer - This Newsletter has been compiled by WinDForce Management Services Private Limited

for circulation among the stakeholders in the energy market. Though the contents of this bulletin are

correct to the best of our knowledge, WinDForce does not vouch for their accuracy.


Documents

Wind Force Newsletter Nov, Edition, 2011