EXTENSION ON WAIVER OF INTER-STATE TRANSMISSION CHARGES AND LOSSES FOR ELECTRICITY GENERATED FROM SOLAR AND WIND SOURCES

The Ministry of Power has released an order  which provides extension on the waiver of intra-state transmission charges and losses for transmission of electricity generated from solar and wind sources. As per the last order dated 14 June 2017, MoP had provided an extension on the waiver of transmission charges for electricity procured from solar and wind sources till 31.12.2019. This waiver has been further extended to 31 March 2022 for electricity transmitted both the sources of renewable energy.

 

The waiver shall be applicable for 25 years from the date of commissioning of the projects and only on those projects entering into PPAs with distribution licensees for sale of electricity for compliance of their RPO. The order also states that the waiver shall be applicable to projects awarded through competitive bidding process.

 

This order continues to encompass the same issues present in the previous orders. It is only applicable to solar projects from which the electricity will be sold to the DISCOMs. Secondly, it will only be on those solar projects entering PPAs for the compliance of RPO.

ESCerts trading for PAT cycle II begins, says BEE

The Bureau of Energy Efficiency (BEE) has released a notification stating that the trading of ESCerts for PAT cycle II shall begin from 27th February, 2018 and shall be held on every last Tuesday of the month. The buyers and sellers from PAT cycle 1 shall be eligible for the trading of banked ESCerts.

 

Those DCs who have not submitted the copies of Form-D and have already met their compliance in PAT cycle I have the chance to submit it to BEE through post/ courier by 31st January 2018.

REC TRADE RESULTS JANUARY 2018

Non-solar demand was marginally lower than in January 2017, and also significantly than last month. However, it must be kept in mind that last month traded volumes were at a record high, and overall, this year has seen significantly higher demand.

In total 12.30 lakh RECs were traded (19.04% lower than January 2017, and 76.41% lower than in December 2017), and clearing ratios on IEX and PXIL were 7.83% and 30.55% respectively. Total traded value was Rs 184 crores*.
REConnect shifted its major volume on PXIL in a timely manner this trade session due to higher demand, resulting in higher clearing.
Trading of solar RECs continues to be suspended due to the stay imposed by the Supreme Court.
*This value is calculated considering the rate of Rs 1500 per REC out of which Rs 1000 go to the generator and Rs 500 is retained by CERC

SUBSIDIES IN THE RE SECTOR

Encouraging RE installation in the state, till now, the country’s policies have provided various benefits in the form of subsidies, generation based incentives, viability gap funding, etc.As the installed capacity of solar and wind energy has been increasing consistently, the government has consistently decreased the incentives to renewable energy.

Now that the prices of electricity generated from renewable energy has come very close to the price of electricity generated through fossil fuel based sources, almost achieving grid parity, the government is considering removal of subsidies and incentives given to installation and generation from renewable energy. This change may take place in the coming financial year, as per experts. This development has been reported by the Economic Times.

The wind tariff recently dropped down to Rs 2.43 per unit in an auction held by GUVNL in the month of December 2017 and solar tariff dropped down to Rs 2.65 per unit in September.

Telangana releases draft RPO policy for the first time

Telangana State Electricity Regulatory Commission (TSERC) has released draft regulations for the compliance of Renewable Purchase Obligations for the state. These regulations are first of its kind in the state. Before this, the state was following RPO percentages determined by APERC (Andhra Pradesh Electricity Regulatory Commission) through its latest regulation.

 

Comments on these regulations are invited till 9 February 2018.

 

The RPO percentages determined in the regulation are as follows:

In the order, the RPO percentages were only given in terms of total of both solar and non-solar percentages. As per the National Tariff Policy 2016, the solar RPO percentage for states across the country shall reach 8% whereas in the mentioned order, the total RPO percentage (including solar and non-solar is 7.5% ie. 0.5% lower.

The RPO trajectory declared by TSERC as compared to that declared by MoP  for the FY 2018-19 can be seen below:

 
The draft regulation can be accessed here. The public notice can be accessed here.

TRADE RESULTS OF ESCERTS FOR WEEK 17

The seventeen trading session of ESCerts took place today. It was the last day of trade for PAT cycle – I.

 

In total, there was a demand for 110,511 ESCerts, an decrease of nearly 27.39% from last week. This demand was against a total supply of 8,94,445 ESCerts (increase of 8.46% since last week).  Market clearing price was determined at Rs 450/ ESCert (the price determined last week was Rs 501 per ESCert), with 109,161 ESCerts sold (value traded increased by 30.92%; the total traded value was Rs 4.91 crore).

 

The last date of submission of Form D is 19 January 2018.

The trading data provided by IEX on their website can be accessed here.

 

Source: IEX

 

TRADE RESULTS OF ESCERTS FOR WEEK 16

The sixteenth trading session of ESCerts took place today.

In total, there was a demand for 152,195 ESCerts, an increase of nearly 4.85% from last week. This demand was against a total supply of 824,707 ESCerts (increase of 6.06% since last week).  Market clearing price was determined at Rs 501/ ESCert (the price determined last week was Rs 500 per ESCert), with 74,895 ESCerts sold (value traded increased by 158.93%; the total traded value was Rs 3.75 crore).

The trading data provided by IEX on their website can be accessed here.

 

Source: IEX

GOA RELEASES SOLAR POLICY 2017

Goa Energy Development Agency (GEDA) has approved the solar policy for the year 2017.

The policy has been approved five months after the draft policy was released and shall be applicable form the date of notification up to 7 years whereas the PPA’s signed under this policy shall be valid for the period of the agreement. Under REC mechanism, solar power plants shall be set up and the power generated by them shall be sold to GED at the average power purchase cost.

Development of solar projects for sale of electricity to third party as well as GED shall be promoted by the state. The producer will have to pay the wheeling charges as per the rates determined by JERC. The state government shall reserve the right to procure 10% of the power so generated.

The prosumer/developer shall be given subsidy received from the Government of India as per MNRE guidelines and the state government shall grant 50% of the capital cost/ benchmark cost provided by MNRE, whichever is lower, for solar plants of upto 100 kW size. Role of department of electricity, Goa is to provide banking facility for solar energy, conduct feasibility study for evacuation facility, etc.

Time frame for implementation of project for solar projects beyond 100 kW capacity through reverse bidding:

 

 

The policy can be accessed here.

TRADE RESULTS OF ESCERTS FOR WEEK 15

The fifteenth trading session of ESCerts took place today.

 

BEE (Bureau of Energy Efficiency), in its circular dated 02.01.2018 has announced an extension of the last date for compliance of PAT Cycle – 1 to 19th January 2018 from 31st December 2017. No change in the timings of trading have been proposed by BEE.

This extension has been granted since out of 384 DCs, application for 33 are still under approval process by the registry.

 

In total, there was a demand for 145,150 ESCerts, a decrease of nearly 60.34% from last week. This demand was against a total supply of 777,567 ESCerts (decrease of 28.96% since last week).  Market clearing price was determined at Rs 500/ ESCert (the price determined last week was Rs 899 per ESCert), with 28,983 ESCerts sold (value traded decreased by 92.7%; the total traded value was Rs 1.45 crore).

The trading data provided by IEX on their website can be accessed here.

 

 

Source: IEX

REC TRADE RESULTS DECEMBER 2017

This month’s trading session saw highest ever trade in the REC markets – 2nd time in a row after the record trading session last month. Non-solar demand was significantly higher than in December 2016, and also last month. In total 52.17 lakh RECs were traded (1,136% higher than December 2016, and 136% higher than in November 2017), and clearing ratios on IEX and PXIL were 46.09% and 58.15% respectively.  Total traded value was Rs 782 crores.

The increase in traded volumes have been driven by demand from both Discom’s and captive generators. Several regulatory commissions have issued orders and notices in the recent past. This trend is expected to continue into the last quarter of the financial year.

Trading of solar RECs continues to be suspended due to the stay imposed by the Supreme Court.

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