REC Trading Report – October 2013

Non-Solar RECs

Overall, Non-solar demand increased more than three-fold compared to last month (150,640 vs 49,831 in September 2013). As a result, clearing ratios on both exchanges improved. The uptick in demand is likely a factor of timing (most compliance takes places in the second half of the year), and ongoing enforcement efforts at ApTel and at state ERCs. Due to both these factors, demand is expected to improve in the coming months.

Fig 1: Non-Solar REC Trade Stats – October 2013

Fig 2 : Non-Solar Market Clearing Plant – October 2013

Close to 42 lakh RECs were available in the market. Of this, approx.. 39 lakh RECs were bid for trading. Clearing rations at IEX and PXIL were 4.2% and 3.64% respectively (previous month – 1.65% and 1.03%)

Clearing price remained at floor price (Rs 1,500/ REC)

Solar RECs

Solar REC demand improved marginally from 6,712 in Sept to 9,275 this month (38% increase). Solar RECs demand has been steadily rising over the last several months, and is expected to continue to do so.

Total available RECs were in excess of 67,000 RECs. This is also expected to increase in the coming months as several projects were commissioned towards the end of September.

Fig 3 : Solar REC Trade Stats – October 2013

Fig 4 : Solar Market Clearing Price – October 2013

Clearing price remained at floor price (Rs 9,300/ REC)

 

IEX

PXIL

Total

Buy – Non Solar

98,921

51,719

150,640

Sell – Non Solar

24,47,648

14,38,712

38,86,360

Cleared volume – Non solar

98,921

51,719

150,640

Clearing Ratio – Non Solar

4.2%

3.64%

 
Buy – Solar

6,548

2,709

9,257

Sell – Solar

48,515

19,439

67,954

Cleared volume –  Solar

6,548

2,709

9,257

Clearing Ratio – Solar

13.5%

14%

Market Clearing Price

Rs 9,300 – Solar

Rs 1,500 – Non Solar

Rs 9,300 – Solar

Rs 1,500 – Non Solar

Coverage of the trading session – Bloomberg

KERC determines the tariff for solar projects

KERC with an order dated 10th October 2013 determines the following tariff:

Type of solar plant Approved tariff in Rs. Per unit
Solar PV 8.40
Solar Thermal 10.92
Roof-top and small solar PV 9.56
Roof-top and small solar PV with 30% capital subsidy 7.20
  • It is applicable for solar power generators entering into PPA on or after 01.04.2013 to 31.03.2018.
  • ·
  • The tariff mentioned above is different from tariff from the bidding procedure.

Sharing of Clean Development Mechanism (CDM) benefits between the generating company and the beneficiaries

  • For first year, from the date of commercial operation, 100% of gross proceeds on account of CDM benefit are to be retained by the project developer.
  • Second year onwards the share of beneficiaries will increase by 10 % every year, from 10% (share in 2nd year) till it reaches 50 %. After this, the benefits will be shared proportionally.

Grid Connectivity for roof-top projects

  • 1 kW to 5 kW – single phase 230 volts
  • 5 kW to 50 kW – 3 phase 415 Volts
  • 50 kW to 1 MW – 11 kV line.

 Metering

  • Metering shall be in compliance with the CEA (Installation and Operation of Meters) Regulations 2006 as amended from time to time.
  • In the case of, Solar rooftop PV systems connected to LT grid of a distribution company, the concept of net metering shall be adopted and the net energy pumped into the grid shall be billed.

Note – An amendment to CEA (Installation and Operation of Meters) Regulations 2006 has been issued recently, in which a new definition of “renewable energy meter” has been introduced to extend clarity to net-metering scheme.

  • If export>import, ESCOM pays generator at the tariff determined.
  • If import > export; then generators pays to DISCOM at prevailing retail tariff.

 Applicability of Wheeling and Banking Charges and Cross Subsidy Surcharge :

For solar generators going with intra-state open-access, no wheeling/banking charges or cross- subsidy charges are to be paid.

The copy of the order can be accessed here.

KERC order on Wheeling and Banking charges for RE generators

Karnataka Electricity Regulatory Commission through an order dated 9th Oct 2013 has decided to extend the validity of order (dt – 11.07.2008) till end of current financial year, which was previously mandated to be valid only till 10th July 2013. The key points in this order are the following:

1) The wheeling charges and banking charges will continue to be 5% of the injected energy and 2% respectively along with additional UI charges between the time of injection and time of drawal.

2) Captive consumers of the state wanting to avail the benefits under the REC scheme will have to pay normal transmission, wheeling and banking charges.  

Normal wheeling charges –

For HT network –  9.85 paise per unit

For LT network – 22.99 paise per unit.

 3) Captive generators will be allowed to bank the excess energy, accounting of which will be done on monthly basis (instead of annual basis).

4) Excess energy (if any) with the distribution licensee, at the end of the month, shall be paid by the DISCOM (in whose generator is plant is situated) at the APPC rate. Currently, the APPC rate is 3.07 Rs per unit.

5) The commission will shortly issue a separate format of wheeling/banking agreement for RE generators willing to participate in REC mechanism.

Southern grid to be synchronized with New Grid soon

The Central Electricity Authority (CEA) through a letter dated 09-10-2013, has requested the apex commission (CERC) to expedite the process of finalizing the new-narrowed frequency band. CEA has urged this, contemplating the grid integration of southern grid with the new grid, to take place somewhere in the “beginning  of new calender year”. As per the CEA, narrowing of frequency band is required so as to reduce requirement of balancing power.

In the letter, CEA has also acknowledged, the rolling out of draft amendment to the Indian Electricity Grid Code 2010 by CERC in June 2013. In this draft regulation, the frequency band was curtailed to be from 49.95 Hz to 50.05 Hz as against the existing band of 49.5 Hz to 50.2 Hz ( more information on this can be found in our newsletter OPEN-ACCESS Vol. 33).

CEA is expecting the commission to come up with relevant final regulations by 30th Nov 2013, so that the utilities get enough time to adjust their operating practices accordingly.

As on 30th September 2013, the total installed capacity in southern region was around 56823 MW, which is about 25 % of the total All-India installed capacity.

Copy of the letter can be read here.

RERC to finalize APPC of FY 2011-12

Jodhpur vidyut vitran nigam Limited has submitted to RERC the proposition to finalize the APPC for FY 2011-12 as the audited for  financial year ending by March 2011, are now available.

RERC in an order dated 2nd Nov, 2011 had determined the APPC of Rajasthan to be Rs. 2.57 per unit on provisional basis. In the petition filed ,  the Jodhpur DISCOM, as per audited accounts for FY11 has worked out the APPC of FY 2011-12 to be Rs. 2.7350 per unit. Comments on the same were invited by RERC no latter than 15th Oct 2013. This increase in APPC if finalized will be 6.42 % higher than that declared previously.

The working excel on the same can be accessed on the home-page of RERC –  http://rerc.rajasthan.gov.in/.

It will be pertinent to note that RERC, unlike most states, in its definition of APPC, excludes short term power purchase also along with renewable energy. APPC in Rajasthan is defined as -

“The weighted average 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.”

APPC for FY 2012-13 can be known by clicking here.

Rajasthan sets revised tariff for Solar and Biomass power projects

Rajasthan electricity regulatory commission (RERC) through an order dated 4th September 2013, has set a new preferential tariff rate for all solar projects (PV or thermal) to be set up in the state. As per this order, the tariff has been set at Rs. 8.33 per unit for solar PV projects and Rs. 11.37  per unit for solar thermal projects (for projects not availing AD benefit). The new tariff has been decreased by 13.5 % for solar PV and by around 5% for solar thermal projects respectively.

This tariff will be applicable for solar PV projects signing PPA on or before 31.04.2014 and getting commissioned before 31.03.2015. In case of solar thermal projects the commissioning date must be on or before 31.03.2016.

The solar PV tariff is 42 paise per unit less than that bench-marked by CERC and for solar thermal projects it is 53 paise lesser than corresponding CERC benchmark.

S.No Particulars Tariff (when AD not availed) as per T.O dated – 30.05.2012 in Rs. Per unit Tariff (when AD is not availed) as per T.O dated – 04.09.2013 in Rs. Per unit  % change in tariff
1 Solar PV  9.63 8.33 -13.50%
2 Solar Thermal 11.95 11.37 -4.85%

 The order on solar tariff can be accessed by clicking here.

With regards to Biomass based projects, the order was out on 8th October 2013. As per this order, for projects commissioned during FY14, the tariff applicable is Rs. 5.44 per unit (for projects not availing AD) and Rs. 5.23 (for projects availing AD).

Indian firms looking for sourcing more renewable energy

If the recent results of a survey conducted by Schneider Electric India are to be believed, then in the coming time it is expected that more company’s in India are emphasizing on greater renewable consumption. As per an article in Economic Times covering these results of the survey, about 80 % of the Indian companies are expecting to procure 15 % of their total power consumption from renewables in the coming 3-5 years.

The survey was conducted in metros and Tier-II cities of India and accounts around 300 respondents according to ET. The survey has considered companies from all domains ranging from manufacturing, real estate, automobiles to pharma cos. All respondents had an average turn-over of around 30 crore.

Overall the ship of “India Inc.” seems to be sailing in the right direction as it is expected to contribute the most in the Indian green growth story. Taking account of the prevalent sluggish state of economy, all such efforts are laudable.

Relevant article can be read by following the link above.

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