JNNSM bid results of Phase 2 Batch 1

OPEN ACCESS
India’s Largest REC Trading Company
January 2014
Volume - 39
CONTENT
JNNSM bid results of
Phase 2 Batch 1
Regulatory Updates
REC Trade Results
REC Project Stats
Green News
About REConnect
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. Clearing 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
PAN
Managing REC
45%
India
2.1 GW
Market Share
Presence
Projects under
16
management
States
in REC Trading
JNNSM bid results of
Phase 2 Batch 1
Regulatory Updates
REC Trade Report
REC Project Stats
Projects in
Green News
About REConnect
JNNSM bid results of Phase 2 Batch 1
The MNRE had authorized Solar Energy Corporation of In- The financial bids followed a technical qualification
dia (SECI) to implement NSM Phase 2 program. In light of round. Developers competed in the reverse-bid auction
this, SECI auctioned 750 MW of solar energy projects and in two parts. Half the 750MW available had a mandatoannounced the financial bid results on 21st February 2014. ry domestic content requirement (DCR), and the other
In the subsequent paragraphs, we have covered these re- 375MW was left open with no domestic requirement.
sults in detail.
The US filed a complaint to the World Trade OrganisaWe thank solar industry expert - Mr. Gopal Lal Somani,
tion earlier this month claiming that it should have
who has graciously provided his inputs and comments
on the results of bidding process. A brief profile of Mr. equal access to the procurement round. First Solar had
dominated the thin film market in Phase I Batch 1 & 2;
Somani can be read on Page No. 4.
courtesy a loop hole in previous JNNSM bids. The comA total of 68 bids were received from 58 developers, cover- pany which worked with the US Export-Import Bank on
ing 122 projects with a cumulative capacity of 2,170 MW. a number of projects, missed out its share in this bidOf this, 36 projects with a capacity of 700 MW opted to bid ding cycle. India in reply to allegations from US said under the Domestic Content Requirement (DCR) part A of that First Solar had missed out “only based on the bid
the bidding process and the remaining 86 projects with a submitted by them. There are no political consideracapacity of 1,470 MW opted for the open category Part B. tions. India can not be blamed to be investment unEach part eventually got allocated an equal 375 MW capac- friendly”.
ity projects. Bids by PMP Auto Components, Zandu Realty,
Golden Crystal and Green Energy Wind were cancelled as The reverse bid mechanism included bids for viable gap
they did not meet the techno-commercial criteria. The bid funding (VGF), a government capital subsidy to provide
by Moser Baer was cancelled as they could not provide up to 30% of JNNSM project costs subject to maximum
bank guarantee.
Rs. 250 lac / MW. There is a cap of up to 50MW per developer 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 Renewables 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
Figure 1 : Total projects & cumulative capacity that
participated in bidding of JNNSM Phase 2 Batch 1.
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-
www.reconnectenergy.com
Page 1
PAN
Managing REC
45%
India
2.1 GW
Market Share
Presence
Projects under
16
management
States
in REC Trading
JNNSM bid results of
Phase 2 Batch 1
Regulatory Updates
REC Trade Report
REC Project Stats
Projects in
Green News
About REConnect
JNNSM bid results of Phase 2 Batch 1
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
der the non-DCR category is INR 24.5m (USD 0.4m) by
estimated to cost much more at INR 160 billion (US$2.5
Tata Power Solar. Under the non-DCR category, 15 project
billion).
developers will be invited to sign power purchase agree-
The difference in government funding of INR 63 billion
ments (PPAs) for 24 projects totalling 375 MW. Part A with
(US$1 billion), has sparked questions from solar industry
the DCR oversubscribed twice whereas the non-DCR
analysts who are of the view that this funding should
(open) part B four times over. The entire capacity of 750
have been extended as direct funding to encourage do-
MW will be converted into Letters of Intent (LOI) likely to
mestic manufacturing instead.
be confirmed to respective winning bidders by end of
February.
It is speculated that some of the winning firms who
made aggressive bid would not sign the PPA and there-
The average project size per developer would be around
fore the figures will not be final until PPAs are signed,
25 MW and top solar potential states i.e. Gujarat and Raja-
which is expected to happen by March/April 2014.
sthan are the most preferred locations opted by most developers for implementation.
21st February 2014 was a momentous day for solar in
India as financial bids were opened at SECI. “
VGF payments are estimated for non-DCR projects to cost
INR 97 billion (US$1.5 billion), whereas the DCR bids are
www.reconnectenergy.com
It may also be noted that the tariff for the NSM Phase II
Page 2
PAN
Managing REC
45%
India
2.1 GW
Market Share
Presence
Projects under
16
management
States
in REC Trading
JNNSM bid results of
Phase 2 Batch 1
Regulatory Updates
REC Trade Report
REC Project Stats
Projects in
Green News
About REConnect
JNNSM bid results of Phase 2 Batch 1
batch I projects were fixed at Rs. 5.45/kWh while the bids
The heavy VGF discounting seen in Part A and Part B is
were called for Viability Gap Funding (VGF) required by the
almost unbelievable but allows Solar Power to emerge
developer.
as a clear winner.
“bidders enthusiasm and aggression in bidding perfectly
“Achieving status of financial closure by all winning
bidders would be a world class result ever seen elsewhere in emerging markets.”
matched with NSM Phase I Batch 1 and 2 success stories.
This is due to declining cost trends in EPC cost, more reliable players in the market, lenders confidence in funding on
higher efficiencies/output, improved performance, improvised O&M (evidently observed in Phase I projects) and
bankable PPA with SECI.”
- end of article -
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 SunEdison, 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 indication that VGF can now be capped at INR 135 Lac/MW and
going forward paves the way for subsequent bidding cycles 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 crawling solar market.
www.reconnectenergy.com
Page 3
PAN
Managing REC
45%
India
2.1 GW
Market Share
Presence
Projects under
16
management
States
in REC Trading
JNNSM bid results of
Phase 2 Batch 1
Regulatory Updates
REC Trade Report
REC Project Stats
Projects in
Green News
About REConnect
Brief Profile of Mr. Gopal Lal Somani
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 Renewable Energy portfolio since 1999 and has secured authoritative insight into India's solar energy development 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, biomass 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 organized 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 Corporation, 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.
www.reconnectenergy.com
Page 4
India’s largest REC Trading Company
JNNSM bid results of
Phase 2 Batch 1
Regulatory Updates REC Trade Report
REC Project Stats
Green News
About REConnect
Regulatory Updates
CERC revises REC issuance procedures
 Hard copy of the application has to be submitted by
9th of every month to SA.
CERC recently notified revised procedures for REC mecha
SA to check the proposed volume and application by
nism through an order dated 17th Feb 2014. Following
15th of every month.
are the changes:
 SA to inform CA of list of RECs which will be by 22nd
of every month.
1. REC registration applications
 Recommendation by SA for Registration of Project
4. REC Accreditation application:
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 entertained.
 Format of the declaration has been modified (Refer to
the order).
The RE generator shall obtain a certificate from the concerned 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
2. REC Issuance applications :
refer the order. Comparative analysis w.r.t to previous
This procedure shall be applicable to all Eligible Entities, orders for changes in timeline can be read on our blog.
who have received Certificate of Registration‟ from the
Central Agency, and shall be eligible to avail Renewable Maharashtra revises procedures for Wind Open
Energy Certificates from the date of commercial operation Access
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- Keys points on Revised Procedure for Wind Open Access
in Maharashtra:
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
1.i) For wind open access application process the documents 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
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 Certificates may be made on 10th, 20th and last day of
ii) Complete open access application to be submitted
the month.
well in advance i.e. preferably 30 days prior to the date
of commencement of open access.
3. Retention of RECs:
iii) If an open access consumer is situated in the License
shall issue ‘certificate of purchase’ of RECs to the buy- area of other utility / Distribution Licensee then copy of
NOC / open access permission issued by the concerned
er.
Distribution Licensee shall be submitted along with the
 Eligible entity to apply it online from 1st to 5th of eveopen access application.
ry month.
 SA to accept application for retention of RECs and
www.reconnectenergy.com
Page 5
India’s largest REC Trading Company
JNNSM bid results of
Phase 2 Batch 1
Regulatory Updates REC Trade Report
REC Project Stats
Green News
About REConnect
Regulatory Updates
 The GCN shall not be issued after 3 months from the
iv) If an open access consumer fails to achieve the MaxiJoint Meter Reading and the energy corresponding
mum Demand equal to or greater than eighty (80) per
to the GCN shall be treated as lapsed
cent of the threshold level, the open access permission  The field office, where the open access consumer is
will be cancelled and further he shall be liable to pay, to
situated, will give corresponding TOD time slot - wise
MSEDCL, a penalty equal to two times the wheeling
credit adjustment in the monthly energy bills of the
charges for the financial year or part thereof for which he
open access consumer.
had failed to achieve such Maximum Demand.
 Open access consumer has to pay CSS charges for
third party sale, CSS not applicable for captive.
v) If the contract demand of the open access consumer is
in the range of 1000 KVA– 1500 KVA then Renewal of 5) Banking:
Open Access Permission shall be subject to use of Maximum Demand equal to or greater than eighty (80) per MSEDCL, for the time being, has decided to provide the
cent of the threshold level during previous open access banking facility in part i.e. the wind generation units will
period
be allowed to get carried forward for getting adjusted in
next energy bills if could not be adjusted in same month
2)Eligibility conditions:
till the end of that financial year, but the surplus units, if
any, at the end of financial year will not be purchased by
 An open access consumer can avail power from a MSEDCL.
Generating Company only, sourcing power from more
than one / multiple generating companies will not be 6) Change of option not permitted during validity period:
processed
OA consumer will be permitted only to change the op Declaration in advance by OA consumer for sourcing tion from open access to Sale to MSEDCL during the vapower from other sources or generating company.
lidity period of open access permission, no other option
 Open Access permission will not be granted to the allowed.
consumers availing single point supply and sub distributing it further to multiple consumers. Such con- 7) Wind energy injected into the grid during the intersumers are required to apply for Distribution Franchi- vening period for which OA permission could not be
see through MoU route as per relevant MERC & granted due to late submission of OA application or
APTEL orders
change of option by wind open access generator from
 The open access consumer will be entitled to seek open access to Sale to MSEDCL during the validity periopen access for sourcing 100% power generated from od of open access permission, will be purchased by
a wind power project.
MSEDCL at MERC tariff rate from the wind generators.
3) Metering:
 Gr I: 10 % less than that of GR.II MERC rate of Rs. 2.52
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.
 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
www.reconnectenergy.com
per unit
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 Interactive Distributed Solar Energy Systems, Regulations, 2014
(refer). With this Kerala joins the league of states namely;
Tamil Nadu, Andhra Pradesh, Delhi, Punjab and UttarakPage 6
India’s largest REC Trading Company
JNNSM bid results of
Phase 2 Batch 1
Regulatory Updates REC Trade Report
REC Project Stats
Green News
About REConnect
Regulatory Updates
hand, which have a similar policy in their respective states. Before going in to the details, it is pertinent to note the
definition of APPC being followed by Rajasthan –
The highlights of the regulation are as under:
“Pooled Cost of Power Purchase: The weighted average
Eligibility – All consumers are eligible to install solar energy 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.
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, excluding short term power purchases and those based on renewable 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
Banking facility - Discoms are obligated to provide bank- March 2014.
ing facility to eligible consumers only upto a target capac- JVVNL petition for finalization of APPC FY14 ity of solar RPO. Eligible consumers not in ToD regime is
allowed to use the same regardless of any specific period. In case of JVNNL, RERC has been asked to finalize the
Licensee shall provide net-metering arrangement to con- APPC of FY14 as Rs. 3.0865 per unit as per audited acsumers, and consumer shall be liable to pay security de- counts of FY13. Comments invited by 28th February
posit & rent as per norms determined by KSERC.
2014.
A consumer can supply excess power to any other self Our previous blogpost on Rajasthan APPC can be
owned premise located anywhere, within the same distri- read here. Blogposts on all other states APPC can be
bution area, provided wheeling charges of 5% are paid for read here.
wheeling of power.
Govt. pushes for stronger RPO enforcement
The consumer will receive payment for excess generation
of solar power injected in distribution network at APPC The Ministry of New & Renewable Energy (MNRE) has
(1.99 Rs. per unit).
written to Ministry of Power (MoP) to include stronger
enforcement provisions in the Electricity Act itself, which
If an eligible consumer happens to be an obligated entity at present is absent.
as per relevant RPO regulations, then the energy consumed by the consumer will be accounted towards solar An article in Business Standard, quoted Joint Secretary of
RPO.
MNRE saying the following, at an event:
There shall be no banking or cross subsidy charges applicable 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
“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 energy sector of India.
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 APPCs for both.
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 resulted in continued clearing of RECs at floor price. More insights can be learnt by clicking here – REC Trade Report
– January 2014.
www.reconnectenergy.com
Page 7
India’s largest REC Trading Company
JNNSM bid results of
Phase 2 Batch 1
Regulatory Updates REC Trade Report
REC Project Stats
Green News
About REConnect
Regulatory Updates
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 accessed 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 procurement over & above the stipulated RPO targets. GUVNL
had submitted (in Petition no. 128/MP/2013) that disallowance 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.
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 provisions of eligibility in the REC Regulations which is limited 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 provisions of the Act. Action to make or amend the regulations 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 consideration.
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 power 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 including public hearing.
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). DISCOMs in-fact have signed PPAs of 971.5 MW solar capaciTamil Nadu drafts RPO targets for FY15 & FY16
ty, that too at promotional tariffs.
GUVNL has also argued that buying costly solar power
from developers is going to financially impact the consumers in the state as the higher cost of power procurement 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 requested for a provision where RPO surplus DISCOMs are
allowed to exchange RECs with RPO deficit ones by bypassing prevailing exchange based transactions. In our
view, this particular demand questions the very purpose
of having a double side closed fair market-based mechanism for RECs.
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 Licensees only) in Tamil Nadu will now have to consume a
minimum of 9% of non-solar power/RECs and 2% of solar 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
GUVNL had also prayed the apex commission puts in from currently 0.05 % to 2 %. This shows TN’s strong
commitment towards fostering solar generation in the
place a uniform solar RPO target for all states in India.
CERC, in the order, is of the view that current regulations state.
www.reconnectenergy.com
Page 8
India’s largest REC Trading Company
JNNSM bid results of
Phase 2 Batch 1
Regulatory Updates REC Trade Report
REC Project Stats
Green News
About REConnect
Regulatory Updates
Given the fact that a recent judgement by ApTel had set The order can be read by clicking here.
aside state’s ambitious solar policy (for a relevant blog- An article in Economic Times can be read here.
post – click here), this particular step from TNERC is laudable.
Fees & Charges for Registration
Column 1 Column 2
Column 3
Amount
Particulars
Minimum
Minimum
in Rs.
quantum of quantum of
Processing Fees (One Time)
1000
total renewa- solar renewable
ble purchase purchase obliRegistration Charges (One time upon
5000
obligation in gation in %age
registration)
%age ( in
out of total reYear
Annual Charges
1000
terms of en- newable purRevalidation
charges
at
the
end
of
5
ergy in kWh) chase obliga5000
years
tion mentioned
in Column 2 (in
terms of enerTable 2 : Fees & Charges for Registration
gy in kWh)
2014-15
11.00%
2.00%
2015-16
11.00%
2.00%
- end of section 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 regulator CERC extended the existing fees and charges chargeable 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).
www.reconnectenergy.com
Page 9
India’s largest REC Trading Company
JNNSM bid results of
Phase 2 Batch 1
Regulatory Updates REC Trade Report
REC Project Stats
Green News
About REConnect
REC Trade Report - February 2014
For past trading history - CLICK HERE
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 balance 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 parity for both exchanges (IEX and PXIL) and was recorded just over 8% in terms of non-solar RECs. The total transactional 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.
www.reconnectenergy.com
Page 10
India’s largest REC Trading Company
JNNSM bid results of
Regulatory
Phase 2 Batch 1
Updates
REC Trade Report
REC Project Stats
Green News
About REConnect
REC Trade Report - February 2014
For past trading history - CLICK HERE
Solar RECs
Demand of solar RECs jumped by an encouraging 30.58 percent compared to January 2014 trade session although 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.
www.reconnectenergy.com
Page 11
India’s largest REC Trading Company
JNNSM bid results
of Phase 2 Batch 1
Regulatory Updates REC Trade Report
REC Project Stats
Green News
About REConnect
REC Project Status - As on February 21st, 2014
Registered Capacity
4083.571 MW
Wind
2166.4
Bio-fuel
Cogeneration
734.268
All figures
in MW
Solar PV
Biomass
328.84
649.395
Small Hydro
Projects Registered
195
Source wise
All figures in
MW
Projects Registered
State wise
www.reconnectenergy.com
Page 12
India’s largest REC Trading Company
JNNSM bid results
of Phase 2 Batch 1
Regulatory Updates REC Trade Report
REC Project Stats
Green News
About REConnect
Green News - National
“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 hydropower 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 challenge for discoms," Prasad said at the 2nd India Power & Energy (IPE) Conclave 2014 held here yesterday.
Source: Moneycontrol
Read More
Government considering amendments to electricity tariff policy
Government is considering “suitable amendments” to the electricity tariff policy which would benefit various categories 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
Read More
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
Read More
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 renewable 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 solar,” Mr. Chaturvedi said. Source: The Hindu
Read More
‘Solar power unviable under current tariff structure’
The Maharashtra Government can ill-afford to harness solar power with the current tariff structure that crosssubsidises low-end consumers by charging high-end users more. Speaking at a discussion on grid connected solar 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
Read More
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, calculations 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
Read More
www.reconnectenergy.com
Page 12
India’s largest REC Trading Company
JNNSM bid results
of Phase 2 Batch 1
Regulatory Updates REC Trade Report
REC Project Stats
Green News
RPO Map
India’s RPO Map
States
2013-14 RPO 2013-14 RPO
Obligation
Obligation
(Non Solar)
( Solar)
Andhra Pradesh
Assam
4.75 %
5.40 %
0.25 %
0.20 %
Arunachal Pradesh
Bihar
Chhattisgarh
Delhi
Gujarat
Haryana
Himachal Pradesh
J&K
Jharkhand
Karnataka
Kerala
Madhya Pradesh
Maharashtra
Meghalaya
Orissa
5.45 %
3.50 %
5.75 % ^
4.60 %
6.00 %**
2.90 %
10.00 %
4.75 %
3. 00 %
10.00 % *
3.65 %
4.70 %
8.50 %
0.60 %
5.80 %
0.15 %
1.00 %
0.50 %^
0.20 %
1.00 %**
0.10 %
0.25 %
0.25 %
1.00 %
0.25 % *
0.25 %
0.80 %
0.50 %
0.40 %
0.20 %
Punjab
Rajasthan
Tamil Nadu
Tripura
3.37 %
7.20 %
8.95 %**
0.90 %
0.13 %
1.00 %
0.05 %**
0.10 %
Uttarakhand
Uttar Pradesh
West Bengal
Goa & UTs
Manipur
Mizoram
5.00 %**
5.00 %**
3.90%
2.60 %
4.75 %
6.75 %
0.05 %**
1.00 %**
0.10 %
0.40 %
0.25 %
0.25 %
Nagaland
7.75 %
0.25 %
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.
www.reconnectenergy.com
Page 13
India’s largest REC Trading Company
JNNSM bid results
of Phase 2 Batch 1
Regulatory Updates REC Trade Report
REC Project Stats
Green News
RPO Map
About REConnect
REConnect Energy is India’s leading renewable energy trading company. We provide endto-end services for projects in the Renewable Energy Certificate mechanism – from contract 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:
New Delhi:
Mumbai:
Vishal Pandya
Vibhav Nuwal
Ram Kumar ( +919930359992 )
[email protected]
[email protected]
[email protected]
# 4123, 6th Cross, 19th Main,
# 216, Nirvana courtyard, Nirvana
Haware Fanatasia
HAL 2nd Stage, Indiranagar,
Country, Sector 50,
Business Park,
Bangalore 560008.
Gurgaon 122018.
F 159, Plot no. 47,
O : 080 - 6547 3383 / 84
O : 0124 - 4103216
Sector 30-A, Vashi,
F : 080 - 30723571
F : 080 - 30723571
Navi Mumbai 400703.
Chennai:
Hyderabad:
Solar Market:
Rajesh Vaidyula ( +91 9940478306 )
Bhanu Tejja
Anurag Dhyani
[email protected]
( +91 7799874036 )
( +91 7760300499 )
# 18/1 (88), 2nd Floor, Aarya Gowda
[email protected]
[email protected]
Road, West Mambalam,
Chennai - 600 033.
Renewable Purchase Obligation (RPO):
Renewable Regulatory Fund (RRF):
Chetan Singh Adhikari ( +91 9910772666)
Vineet Shastry (+91 9972290511)
[email protected]
[email protected]
www.reconnectenergy.com
Page 14