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Voluntary REC Market
9 July, IHC, New Delhi
Mr. Rajesh K Mediratta
Director (BD)
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In this presentation
Introduction to REC Market
CSR through Voluntary REC Market
International Scenario
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Introduction to REC Market
CSR through Voluntary REC Market
International Scenario
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Why Renewable Energy Certificate?
Un-bundled Green Power
Seller (RE power)
REC(Green Attributes)Electricity
REC(Green Attributes) Buyer (RPO Compliance)
Electricity
Bundled Green Power
Seller (RE power) Buyer (RPO Compliance)Issues
Schedulability
Uncertainty
Transmission
Loss & Charge
Solution
No geographic
barriers
Reduced
transaction cost
Flexibility in
meeting the RPODiscoms, Power
exchanges , Bilateral
Contracts
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REC Buyers
Obligated Entities
Distribution Companies
Open Access Consumers Industries consuming Captive Power (minimum
capacity for RPO applicability is set as per state specific regulations)
Voluntary Entities
Corporates under CSR
Individuals
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An update on RECs
Source: REC registry India
As on 8th July 2013
Accredited
Capacity
Registered
Capacity
RECs
Issued
RECs
Traded
Balance
Non -
Solar
3859 MW 3494 MW 61,69,531 37,61,412 24,08,119
Solar 163 MW 157 MW 23,865 19,412 4,453
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1 REC is equivalent to1 MWh
Reference : CERC Order in matter of Petition no. 99/2010, dated March 23, 2010
RECs Floor/Forbearance Price
2012-2017 Floor Price Forbearance Price
Solar 9300/REC 13400/REC
Non Solar 1500/REC 3300/REC
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Salient Features of REC Mechanism
Participation Voluntary
REC Denomination 1 MWh
Validity 730 Days after issuance (As per CERC order dated 11thFeb2013)
Categories 1. Solar REC 2. Non-Solar REC
Trading Platform Power Exchanges only
Banking Not Allowed
Borrowing Not Allowed
Transfer Type Single transfer only , repeated trade of the same certificate is
not possible
Penalty for Non-compliance Forbearance Price (Maximum Price)
Price Guarantee Through Floor Price (Minimum Price)
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How to Start
Two step Process Free Registration
Become Client through any of IEX members
Start Trading Last Wednesday of every Month
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Trading at IEX
Trading DayLast Wednesday of every Month
Market Clearing Closed Double sided auction
Trading Time 1300-1500 Hrs
By 1530 HrsVerification by Central agency for Valid REC by
cleared seller at IEX
By 1600 Hrs Central agency confirms REC
By 1630 Hrs IEX finalizes trade
By 1700 Hrs Buyer & Sellers informed to Central Agency
By 1800 Hrs Invoice raised (proof of REC trade)
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RegisteredParticipants 1824
Obligated Entity 1344
DISCOMs 25OA consumers 1247
Captive Consumer 52
OA + Captive 19
Discom + Captive 1
Voluntary 13Eligible Entity (Sellers) 467
Highest participation in an
Auction(March13) 1135
REC Participation Details at IEX
Discoms,
722235
Open
AccessUsers,
120139
Captive
Consumers
, 108773
voluntary,
11
Buyer Mix FY'11-12
Discoms,
1523489
Captive
Consumers
, 180385
Open
Access
Consumers
, 268970
Voluntary,
18145
Buyer Mix FY'12-13
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N-Solar REC trade detail
2201 2402
2402
2000
1500
1500
1500
2150
2460
2202
1555
1500
15001500 1500 1500 1500 1500
1500 1500
0
500
1000
1500
2000
2500
3000
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
Apr'12 May'12 Jun'12 Jul'12 Aug'12 Sept'12 Oct'12 Nov'12 Dec'12 Jan'13 Feb'13 Mar'13 April'13 May'13 June'13
MarketClearingPrice(In
RS/REC)
NumberofRECsTra
ded
PXIL- Volume traded IEX-Volume traded Price @ IEX Price @ PXIL
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Solar REC trade detail
12,850
12,90012,500
12,100
12,100
12,500
13,000 13,000
12,00010,990
9,300
12,85012,500 12,680 12,720
12,620
12,500 12,500
13,400
11,490
9,300
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
0
500
1000
1500
2000
2500
3000
3500
April'12 May'12 June'12 July'12 Aug '12 Sep '12 Oct '12 Nov '12 Dec '12 Jan'13 Feb'13 Mar'13 Apr'13 May'13 June'13
Ma
rketClearingPrice(in
Rs/REC)
NumberofRECsTra
ded
IEX-S REC PXIL-S REC Price @ PXIL Price @ IEX
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Introduction to REC Market
CSR through Voluntary REC Market
International Scenario
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Why RECs to meet Sustainability Development
RECs have several advantages as aninstrument to meet SD objectives:
RECs are measurable and it is easy to verify
which specific project they are coming fromMeasurable
RECs are issued by government appointedagency, and the process and eligibility
criterion are objective and transparent
Transparent
RECs are de-linked from physical power,which makes the consumption of greenpower easier to manage
Effortless
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Participants in Voluntary Markets
Corporates (CPSUs & Private Sector)
NGOs
Individuals
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Corporate Social Responsibility or Sustainable
Development Goals
Profit making CPSEs are required to spend upto 0.5% oftheir profit after tax (PAT) on Sustainable Development
The Department of Public Enterprises (DPE) came out with anamendment to Sustainable Development (SD) Guidelines inDecember 2011:
CPSEs can purchase RECs on voluntary basis as a part of theirEnergy Management
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Voluntary Buyers
Meet your CSR obligation
Green Building/office/organisation
Buy RECs equivalent to energy consumption foran event
Make your home green with RECs equivalent to
your electricity consumption
Off set carbon footprints at individual level
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Introduction to REC Market
CSR through Voluntary REC Market
International Scenario
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RECs are popular way to go green internationally
Company Name DetailsIntel Purchased 2.5 b kwh of RE and REC
88% of total electricity consumed
Citi Purchased over 56m kwh of RECs in 2008
HSBC Purchased 276m kwh of RECs in USOver 96% of North America electricity offset by RECs
purchase
Yahoo! Purchased 1.6m kwh of RE & RECs in 2010
Uses 28% of RE power in its US operation
Apple 11.5 m kwh of RE and REC purchased
98% of total US consumption
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Globally Green Active Company
http://www.google.co.in/imgres?imgurl=http://stockwatch.in/files/hp-logo.jpg&imgrefurl=http://www.stockwatch.in/stock-news/hp?page=1&h=386&w=475&sz=45&tbnid=5UrKyzNj7QXw5M:&tbnh=105&tbnw=129&prev=/search?q=HP+logo&tbm=isch&tbo=u&zoom=1&q=HP+logo&hl=en&usg=__VJ9jdWeZ0M8Pz1hiRmGHLK1gGH4=&sa=X&ei=IehhT7atJISrrAeky62KCA&ved=0CBkQ9QEwAwhttp://www.google.co.in/imgres?imgurl=http://bostinno.com/wp-content/uploads/2010/07/ibm_logo.jpg&imgrefurl=http://bostinno.com/2010/08/13/ibm-gobbles-up-unica-for-480m-aims-to-boost-its-business-with-marketing-software/&h=399&w=757&sz=82&tbnid=0waQiMlVpKQvfM:&tbnh=75&tbnw=142&prev=/search?q=IBM+logo&tbm=isch&tbo=u&zoom=1&q=IBM+logo&hl=en&usg=__I0ohuPOwmx3VuSRITenoWIzbAxw=&sa=X&ei=_udhT-m0HceGrAf1u_zgBw&ved=0CCkQ9QEwBQhttp://www.google.co.in/imgres?imgurl=http://upload.wikimedia.org/wikipedia/commons/thumb/4/48/Dell_Logo.svg/501px-Dell_Logo.svg.png&imgrefurl=http://en.wikipedia.org/wiki/File:Dell_Logo.svg&h=495&w=501&sz=23&tbnid=aAgo5nR6Tjh7rM:&tbnh=128&tbnw=130&prev=/search?q=Dell+logo&tbm=isch&tbo=u&zoom=1&q=Dell+logo&hl=en&usg=__mMNYvp7FkO5WhNEgaFSi23WDraA=&sa=X&ei=2udhT9yDIYOurAesoonhBw&ved=0CBUQ9QEwAQhttp://www.google.co.in/imgres?imgurl=http://www.logostage.com/logos/ford.jpg&imgrefurl=http://www.logostage.com/logo/ford/&h=750&w=1500&sz=70&tbnid=Bi3asbI-HIBzIM:&tbnh=75&tbnw=150&prev=/search?q=Ford+logo&tbm=isch&tbo=u&zoom=1&q=Ford+logo&hl=en&usg=__MYREb6GR-dU2Kww6k1PHDSYr7fQ=&sa=X&ei=q-dhT9XuEY_JrQfgqrj-Bw&ved=0CBMQ9QEwAAhttp://www.google.co.in/imgres?imgurl=http://www.diszine.com/wp-content/uploads/2010/12/Walt-Disney-Company-Logo.jpg&imgrefurl=http://www.diszine.com/content/disney-board-approves-dividend-increase-of-more-than-fourteen-percent/walt-disney-company-logo&usg=__IA4d_NQt7eWKJ52b7WtF_gEr1wg=&h=315&w=525&sz=113&hl=en&start=4&zoom=1&tbnid=kuOKYxUA-4v3CM:&tbnh=79&tbnw=132&ei=WedhT-bYDIi0rAeYw_X-Bw&prev=/images?q=Walt+Disney+logo&hl=en&tbm=isch&itbs=17/27/2019 Event- GREEN CSR INTERVENTIONS- Conference_presentation_IEX
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Green Companies List
US Companies
Company Green Score
IBM 82.5
Dell 75
Accenture 74
Cognizent 71
Intel 71
Ford 70
Citigroup 69.5
American
Express 69.4
Microsoft 67.6Pfizer 66.2
Wal Mart 64.4
Apple 64
Google 63.8
Global Ranking*
Company Country Green Score
Munich Re Germany 83.6
IBM US 82.3
National Australia Bank Australia 82.2
Bradesco Brazil 82.2
ANZ Banking Group Australia 80.9
TCS India 79.1
Infosys India 77.3
Philips Netherland 77.2
Swiss Com Switzerland 77
Societe Generale France 76.6
* Source Newsweek 2011 Green Ranking
http://www.google.co.in/imgres?imgurl=http://www.gujaratvibrant.com/wp-content/uploads/2010/04/go_green.gif&imgrefurl=http://www.gujaratvibrant.com/80-go-green-gujarat-tells-industries.html&usg=__AdhKdy3ShrRtlD-CAj2ElGlBqFo=&h=349&w=300&sz=14&hl=en&start=6&zoom=1&um=1&itbs=1&tbnid=qVOq05BNhB4W0M:&tbnh=120&tbnw=103&prev=/search?q=go+green&um=1&hl=en&biw=1419&bih=751&tbm=isch&ei=VQwDTvGcIMrnrAfrj5HiDQhttp://www.google.co.in/imgres?imgurl=http://www.globe-net.com/media/161928/go_green_bulb.jpg&imgrefurl=http://www.globe-net.com/articles/2010/september/14/how-to-go-green-without-buying-a-toyota-prius.aspx?sub=16&usg=__oJRHwVQHmjDVsHtPOxygwpfuw4U=&h=448&w=390&sz=21&hl=en&start=4&zoom=1&um=1&itbs=1&tbnid=xEbt0DfSpFO7FM:&tbnh=127&tbnw=111&prev=/search?q=go+green&um=1&hl=en&biw=1419&bih=751&tbm=isch&ei=VQwDTvGcIMrnrAfrj5HiDQhttp://www.google.co.in/imgres?imgurl=http://img1.tradeget.com/unnathisuppliers/KPJ73Y5T1wind_power_generator.jpg&imgrefurl=http://unnathisupplier.tradeget.com/F15694/wind_power_generator.html&usg=__teeINEIp24YgnWQIjTd-eYqP1sQ=&h=400&w=400&sz=27&hl=en&start=7&zoom=1&um=1&itbs=1&tbnid=pe62bzmv0Dj7FM:&tbnh=124&tbnw=124&prev=/search?q=wind+power+turbine&um=1&hl=en&biw=1419&bih=751&tbm=isch&ei=9JoBTujzIsrjrAfljKWGAwhttp://www.google.co.in/imgres?imgurl=http://www.topnews.in/files/HydroPower.jpg&imgrefurl=http://www.topnews.in/deforestation-kullu-allain-duhangan-hydropower-project-240512&usg=__koHE8jho_DtBsTzuJU1i01VXPiI=&h=140&w=146&sz=26&hl=en&start=18&zoom=1&um=1&itbs=1&tbnid=nGh3u5ysZ-wRkM:&tbnh=91&tbnw=95&prev=/search?q=hydro+power&um=1&hl=en&biw=1419&bih=751&tbm=isch&ei=u5oBTvDEAYnsrAeu0LWGAwhttp://www.google.co.in/imgres?imgurl=http://img.ehowcdn.com/article-page-main/ehow/images/a04/jp/nn/green-renewable-energy-800x800.jpg&imgrefurl=http://www.ehow.com/how_4843255_green-renewable-energy.html&usg=__UWNWioZqPCQI28ZDMxaQjsVjWRI=&h=220&w=225&sz=8&hl=en&start=7&zoom=1&um=1&itbs=1&tbnid=kWB93vDGgJud4M:&tbnh=106&tbnw=108&prev=/search?q=renewable+energy+go+green&um=1&hl=en&biw=1419&bih=751&tbm=isch&ei=iZoBTrOdGsvRrQfY7tGGAw7/27/2019 Event- GREEN CSR INTERVENTIONS- Conference_presentation_IEX
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www.iexindia.com
http://www.google.co.in/imgres?imgurl=http://www.gujaratvibrant.com/wp-content/uploads/2010/04/go_green.gif&imgrefurl=http://www.gujaratvibrant.com/80-go-green-gujarat-tells-industries.html&usg=__AdhKdy3ShrRtlD-CAj2ElGlBqFo=&h=349&w=300&sz=14&hl=en&start=6&zoom=1&um=1&itbs=1&tbnid=qVOq05BNhB4W0M:&tbnh=120&tbnw=103&prev=/search?q=go+green&um=1&hl=en&biw=1419&bih=751&tbm=isch&ei=VQwDTvGcIMrnrAfrj5HiDQhttp://www.google.co.in/imgres?imgurl=http://www.globe-net.com/media/161928/go_green_bulb.jpg&imgrefurl=http://www.globe-net.com/articles/2010/september/14/how-to-go-green-without-buying-a-toyota-prius.aspx?sub=16&usg=__oJRHwVQHmjDVsHtPOxygwpfuw4U=&h=448&w=390&sz=21&hl=en&start=4&zoom=1&um=1&itbs=1&tbnid=xEbt0DfSpFO7FM:&tbnh=127&tbnw=111&prev=/search?q=go+green&um=1&hl=en&biw=1419&bih=751&tbm=isch&ei=VQwDTvGcIMrnrAfrj5HiDQhttp://www.google.co.in/imgres?imgurl=http://img1.tradeget.com/unnathisuppliers/KPJ73Y5T1wind_power_generator.jpg&imgrefurl=http://unnathisupplier.tradeget.com/F15694/wind_power_generator.html&usg=__teeINEIp24YgnWQIjTd-eYqP1sQ=&h=400&w=400&sz=27&hl=en&start=7&zoom=1&um=1&itbs=1&tbnid=pe62bzmv0Dj7FM:&tbnh=124&tbnw=124&prev=/search?q=wind+power+turbine&um=1&hl=en&biw=1419&bih=751&tbm=isch&ei=9JoBTujzIsrjrAfljKWGAwhttp://www.google.co.in/imgres?imgurl=http://www.topnews.in/files/HydroPower.jpg&imgrefurl=http://www.topnews.in/deforestation-kullu-allain-duhangan-hydropower-project-240512&usg=__koHE8jho_DtBsTzuJU1i01VXPiI=&h=140&w=146&sz=26&hl=en&start=18&zoom=1&um=1&itbs=1&tbnid=nGh3u5ysZ-wRkM:&tbnh=91&tbnw=95&prev=/search?q=hydro+power&um=1&hl=en&biw=1419&bih=751&tbm=isch&ei=u5oBTvDEAYnsrAeu0LWGAwhttp://www.google.co.in/imgres?imgurl=http://img.ehowcdn.com/article-page-main/ehow/images/a04/jp/nn/green-renewable-energy-800x800.jpg&imgrefurl=http://www.ehow.com/how_4843255_green-renewable-energy.html&usg=__UWNWioZqPCQI28ZDMxaQjsVjWRI=&h=220&w=225&sz=8&hl=en&start=7&zoom=1&um=1&itbs=1&tbnid=kWB93vDGgJud4M:&tbnh=106&tbnw=108&prev=/search?q=renewable+energy+go+green&um=1&hl=en&biw=1419&bih=751&tbm=isch&ei=iZoBTrOdGsvRrQfY7tGGAw