UERC Order on Non Compliance of RPO

UERC Maintains its tough stand for non compliance of RPO. In a recent order the Uttarakhand Electricity Regulatory Commission has directed UPCL to procure non-solar RECs equivalent to 7.50% of unmet non-solar RPO up to FY 2015-16 latest by 31st July’16. UPCL had submitted the following unmet RPO data to the commission:

The Commission has directed UPCL to meet the overall RPO FOR 2016-17 which is 8% for non solar and 1.5% for solar, either through purchase of energy from RE sources or through purchase of RECs equivalent by March, 2017. The Commission has denied UPCL to continue carrying forward of all the unmet non-solar RPO since, it has failed to tap the available power due to its own dilapidated distribution system for evacuation of power.

Also as mentioned in the order, Non-compliance of RPO will attract action against the officers responsible for compliances of regulations.

Earlier in year 2014, UERC had considered UPCL’s non-compliance as willful contravention of the direction of the Commission and had imposed penalty of Rs.20, 000/- on the Managing Director of UPCL. Thus this seems to be a strict order but in a positive direction which will help in streamlining the REC market overall.

 

The order can be accessed here.

 

REC Trade Result June 2016

This month trading saw a huge surge in the demand for both Solar and Non-Solar RECs. The demand rose approximately 2.5 times for both non-solar and solar, while also registering good clearing ratios at both the exchanges, as compared to June 2015. The total transaction value stood at roughly 80 Crores as compared to 31.5 Crores last month.

The positive movement in demand can be attributed to the order of UERC on 20th of June, wherein they have directed all obligated entities to strictly fulfil their RPO obligation of FY 2015-16, by July 2016. This month also saw marginal fall in total REC issuance, and despite the rise in total sell bids, the market showed positive signs of recovery. We expect the other states to enforce RPO more strictly in the months to come.

 

Analysis of Trading:

 

Non Solar – Clearing ratio in exchange stood at 4.01% and 1.50 % in IEX and PXIL respectively for Non Solar REC’s. A total of 417,426 RECs were traded as compared to 161,858 RECs traded in May.

 

Solar – Clearing ratio stood good at 1.24% and 2.28% in IEX and PXIL respectively, with total clearing volume being 2.5 times of the previous month.

 

The detailed result is tabled below:

The positive movement in demand can be attributed to the order of UERC on 20th of June, wherein they have directed all obligated entities to strictly fulfil their RPO obligation of FY 2015-16, by July 2016. This month also saw marginal fall in total REC issuance, and despite the rise in total sell bids, the market showed positive signs of recovery. We expect the other states to enforce RPO more strictly in the months to come.

 

We are hopeful that the FY 2016-17 will bring good fortune to the REC market, considering the proposed regulatory changes and more stricter enforcement by states, which will bring back stakeholders confidence.

 

 

 

CERC (Terms and Conditions for Dealing in Energy Savings Certificates) Regulations, 2016

CERC recently came up with its final regulation on Terms and Conditions for dealing in Energy Saving Certificates. This regulation will govern and define the framework for ESCerts trading on power exchanges. A brief analysis is given below:

Final regulation

The final Regulations have defined responsibilities of the Registry and Administrator. The responsibilities defined for POSOCO and CERC are same as the draft regulation

Registry

The functions of the Registry shall be

  • Registration of Eligible Entity.
  • Maintaining records of ESCerts viz., issuance, dealing, etc.
  • Dissemination of information in coordination with the Bureau.
  • Assistance in development of IT Platform for maintaining database of ESCerts.
  • Signing of Non Disclosure Agreement with the Administrator.

Administrator

The Bureau of Energy Efficiency shall act as the Administrator and shall define detailed procedure for the following

  • Interface activities between Power Exchanges and Registry, Administrator and Registry and Registry and Designated Consumer
  • Registration of eligible entities
  • Dealing, transfer and other residual matters.

 

Dealing ESCerts:

  • The ESCerts issued will be placed for dealing in any of the Power Exchanges by the ESCerts holder as per the PAT rules and these regulations.
  •  The frequency of transaction of ESCerts, through Power Exchanges, shall be on monthly basis or in such periodicity as per the procedure approved by the Commission.
  • The Registry shall cross-check the cumulative sale bids placed on Power Exchanges with availability of ESCerts in respective Registry accounts and in case of breach such eligible entities will be treated as defaulter.
  • Eligible entities with more than three cases of default in a cycle shall be barred from transaction of ESCerts for next six months, notwithstanding any penalty due to be imposed.
  • The denomination of one ESCert shall be equal to energy consumed in terms of one metric Ton of Oil Equivalent (mtoe).
  •  The market price of ESCerts shall be as discovered through the process of bidding at the respective Power Exchange.

 

The final regulation can be accessed here.

Analysis of Regulation on Forecasting and Scheduling of Wind and Solar Generating Stations at State level in Karnataka

In the follow-up after Draft Regulation on Forecasting & Scheduling for the Wind & Solar projects at Intra State level in Karnataka and based on the mechanism suggested in the Model Regulation, KERC has finally released the notification for DSM regulation on Forecasting and Scheduling for wind and solar in Karnataka.

Executive Summary:

 Forecasting and scheduling will be mandatory for all wind generators having a combined installed capacity of 10 MW and 5 MW for wind and solar respectively at the pooling station.

 Deviations will be calculated on the basis of Available Capacity (AvC).

 The deviation slab has been kept as (+/-) 15% for all the wind and solar generators beyond which penalty is applicable at fixed rate as defined below.

 Settlement will be done through the “Qualified Coordinating Agency” or QCA, or the “Aggregator”.

 SCADA & Telemetry data is to be mandatorily provided to SLDC. Protocols for the same shall be determined later by the SLDC through the detailed procedures.

 Provision of six months for existing wind and solar generators to comply with the regulation from the date of publication of these regulations in the official gazette.

 All the new wind and solar generators which shall be commissioned after six months from the effective date of the regulation shall comply these norms before commissioning of the project and connecting with the state grid.

 16 revisions allowed during the intraday with each revision effective from 4th time block.

 Payment for generation shall be as per the actual generation.

Error Calculation:

% Error (deviation) = 100 x (Actual Generation – Scheduled Generation)/ Available Capacity (AvC)

The penalty mechanism based on % deviation for all obligated generators:

The final order can be accessed here.

Go to top