TRADE RESULTS OF ESCERTS FOR WEEK 3

The third trading session of ESCerts took place today.

In total, there was a demand for 64,459 ESCerts, an increase of 24.14% from last week. This demand was against a total supply of 3,48,587 ESCerts. Market clearing price was determined at Rs 1,000/ ESCert (compared to Rs 1,200 last week), with 43,078 ESCerts sold (almost twice the volume was cleared; the total traded value was Rs 4.30 crore).

WIND TARIFF HITS A NEW LOW

In the second auction conducted by SECI for 1 GW wind capacity on 4th October, the wind tariff reached an all time low of Rs 2.64 per unit. This tariff was quoted by ReNew Power for 250 MW capacity. This is the lowest wind energy tariff determined in the country after the wind auction conducted by TANGEDCO where a price of Rs 3.42 was determined. The following graph determines the decrease in wind tariffs determined through reverse bidding in 2017:


Article covering the same can be accessed here.

 

 

TRADE RESULTS OF ESCERTS FOR WEEK 2

The second trading session of ESCerts took place today.

 

In total, there was a demand for 51,925 ESCerts which was higher than the demand last week by 2.01%. This demand was against a total supply of 2,36,031 ESCerts. Market clearing price was determined at Rs 1,200/ ESCert, with 23,295 ESCerts sold (more than twice the volume was cleared; the total traded value was Rs 2.79 crore).

 
Source: IEX analysis

Since a price benchmark was set during the first trading session last week, a lot more supply was bid at a lower price point. As a result, although the overall demand and supply remained the similar, the cleared volume was nearly double that of last week.

VALIDITY OF RECS WHICH WERE ABOUT TO GET EXPIRED BETWEEN OCTOBER ’17 AND MARCH ’18 GETS EXTENDED BY SIX MONTHS

The Central Electricity Regulatory Commission (CERC) has in its order dated 29/08/2017, declared that those Renewable Energy Certificates (RECs) which were expiring between 1st October 2017 and 31st March 2018 are now going to remain valid till 30th March 2017. In its order dated 30th March 2017, the commission had extended the validity of RECs which were going to expire between 1st April 2017 to 30th September 2017 till 31st March 2018.

 

The order  can be accessed here.

REC TRADE RESULTS SEPTEMBER 2017

Non-solar demand was significantly higher than in September 2016, and also higher than last month. In total 3.82 lakh RECs were traded (47.56% higher than September 2016, and 32% higher than in August 2017), and clearing ratios on IEX and PXIL were 3.56% and 2.36% respectively.

Overall, for the six months ended September, Non-solar demand is up by 11% compared to the same period last year. Solar demand is up by 27% despite reading only in April this year. Since then, trading has been suspended due to the stay imposed by the Supreme Court.

 

INDIA WITNESSES FIRST EVER TRADE OF ESCERTS

The first ever trading of energy saving certificates (ESerts) took place today.

 

The demand of ESCerts in this trading session was expected to be much lower than the supply because of the following reasons: 1) All sectors except one have overachieved on their energy savings targets resulting in an overall excess supply situation in the market; and 2) DCs were likely to wait and review the discovered price.

 

This week’s trading took place only on IEX. In total, there was a demand for 50,904 ESCerts, against a total supply of 2,39,644 ESCerts. Market clearing price was determined at Rs 1,200/ ESCert, with only 10,904 ESCerts sold (the total traded value was Rs 1.31 crore).

 
The IEXs trading report can be accessed here.

GUVNL’S BIDDING FETCHES TARIFF OF Rs 2.65

In a bidding which took place on 19th September 2017 for a 500 MW solar plant of Gujarat Urja Vikas Nigam Ltd. (GUVNL), the lowest price determined was Rs 2.65 per unit. This was slightly higher than the price of Rs 2.44 determined in the last reverse bidding by SECI. This increase in the price determined was attributed to the implementation of GST and the increase in the cost of solar panels being imported from China.

A continuous decreasing trend has been seen in the tariff determined for solar projects in the Country this year. The following graph determines the trend in prices of solar power determined in the past:

The article can be accessed here.

RERC DETERMINES FINAL FORECASTING AND SCHEDULING REGULATIONS

The Rajasthan Electricity Regulatory Commission (RERC), in an order dated 14/09/2017, has released final regulation on forecasting, scheduling and deviation settlement mechanism for solar and wind generation plants. With these regulations, Rajasthan has become the third state to have final regulations in place. The salient features of the regulations are as follows:

 

Executive Summary:

  • Title of the Regulation: Rajasthan Electricity Regulatory Commission (Forecasting, Scheduling, Deviation Settlement and Related Matters of Solar and Wind Generation Sources) Regulations, 2017

  • Applicability:

    • From the date of publication in the official gazette.

    • SLDC to issue detailed guidelines for QCA registration, scheduling procedures, communication protocols and formats etc., for the approval of the Commission.

    • Levy and collection of DSM Charges shall commence from Jan 1st, 2018

  • Regulation Applicable on: All grid connected Wind and Solar Power Generators with pooling station capacity >5MW or, when directly connected to the state grid, having individual or combined capacity >5MW.

  • Deviation Accounting:

  • Point of Forecasting: Pooling Station or STU/DISCOM Feeder where injection is made.

  • Aggregation: Unlike in Karnataka and AP, Rajasthan’s order of F&S does not have a provision to provide aggregated forecast.

  • Role of a QCA:

    • Provide forecast, schedules and periodic revisions;

    • Coordination with DISCOM/STU/SLDC for metering, data collection, communication/issuance of dispatch/curtailment;

    • Commercial settlement of DSM charges and de-pooling of charges among generators;

    • All other ancillary and incidental matters.

  • Revisions:

    • 16 revisions are permitted starting from 00:00 Hrs of the day for Wind & Solar Generators

    • All the revisions are effective from the 4th time-block

  • Important differences between intrastate and interstate transactions:

    • Wind and Solar generators having common interface meter at a pooling station but carrying out both – interstate and intrastate transactions at the same pooling station, the scheduling for the same shall to be carried out separately.

    • Approved open-access capacity (in MW) in such cases alone shall be considered as AvC for the purpose of DSM charges calculations.

Observation: Since the regulation permits common interface meter for such transactions and AvC determination is also clarified, the DSM charges may be computed in pro-rata basis for such pooling station as the common interface meter would only provide Pooling Station level actual generation.

  • Determination of DSM Charges for INTRASTATE transactions:

  • Determination of DSM Charges for INTERSTATE transactions:

 

 

The order can be accessed here.

IEX’S ELECTRICITY PRICE IN DAY AHEAD MARKET REACHES NEW HIGH THIS MONTH

In the Day Ahead Market trading held by IEX (Indian Energy Exchange), the average tariff of electricity has been between Rs 3 to Rs 4 per unit. But within 12 days of September, the average tariff has gone up to Rs 8.7 per unit.

This increase in prices is majorly attributed to the reduction in generation from wind and hydro power plants, though the demand has remained stable as compared to last year.

 
As per the graph, it is clear that the prices for this month have been much higher as compared to the price in the previous months for the reasons mentioned above.
The article can be accessed here.

RRECL SUSPENDS APPROVAL OF PROJECTS UNDER REC MECHANISM IN THE STATE

The approval of all renewable energy projects under the REC mechanism has been suspended by the Rajasthan Renewable Energy Corporation Ltd (RRECL) in an order dated 4/09/2017. The order also states that no new RE projects under REC mechanism will be approved by the state level screening committee (SLSC) until further orders. As per an RRECL official, after the lowest solar tariff was quoted in the state, the DISCOMs which are purchasing power through the REC mechanism at a higher rate and even then, are unable to fulfill their RPO obligations. Due to these reasons, RRECL has taken this step until further notice.

 

The article covering the same can be accessed here.

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