REC Trade Result November 2016

This month trading saw stagnant results in respect to the demand for Non-Solar REC’s. The demand for solar REC saw marginal improvement in respect to the last month. The total transaction value stood at 53.6 Crores in comparison to 50.6 Crores last month.

 

Analysis of Trading:

 

Non Solar – The clearing ratio stood at 1.85% and 2% in both IEX and PXIL, with a significant increase of 2.25% in the no. of REC’s traded as compared to last month

Solar – Clearing ratio stood at 1.13 % and 0.96% in IEX and PXIL respectively, with an increase of 17.5% in total demand of Solar RECs as compared to last month.

 

This month also saw significant increase in total REC issuance, where the demand increased by 9 lakh in comparison to October. This could be attributed due to the impact of CERC’s 4th amendment to RECs regulations.

Himachal Pradesh Electricity Regulatory Commission Determines Additional Surcharge

HPERC in its recent order determined the Additional Surcharge on the consumers availing Short Term Open Access Consumers. The Commission earlier approved the rate of additional surcharge as 78paise/kWh in its order dated 18th Feb, 2016.

The HPSEBL has, vide the present petition, requested the Commission to approve the Additional Surcharge of 80 paise per unit for STOA.

After reviewing all the comments and suggestion from the stakeholders and objectors the commission deter-mines the Additional surcharge to be 49.16paise/kWh. The graph below depicts the change in additional sur-charge over the past three control periods :-

The regulation can be accessed here.

 

Himachal Pradesh Electricity Regulatory Com-mission Determines APPC for 2016-17

The Himachal Pradesh Electricity Regulatory Com-mission (HPERC) recently came up with its order on the Average Pooled Power Purchase Cost (APPC) for the financial year 2016-17.The definition of APPC followed by HPERC is in line with the CERC defini-tion and can be read as:

“Pooled Cost of Purchase means The weighted average pooled 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 long-term and short-term, but excluding those based on renewable en-ergy sources, as the case may be.”

The APPC for the financial year 16-17 has been deter-mined as Rs. 4.16 per Unit, by the commission which shall continue for further period with such variation or modification as may be ordered by the Commission for the next financial year.

The APPC for FY 16-17 is 8.23% higher as compared to the APPC of FY 15-16.The graph given below depicts the APPC’s determined by HPERC over last four years and how the APPC rates have in-creased over the past three years :

 

 

The regulation can be accessed here.

TSERC Regulation for connectivity with the Grid and sale of electricity from Roof- top Solar Photovoltaic System

The Telangana electricity Regulatory Commission recently came up with its Net Metering Rooftop Solar PV Grid Interactive Systems) Regulation, 2016. Following are some of the highlights of the regulation:-

  • This Regulation will be applicable to:
    • Distribution licensee
    • An eligible consumer and
    • A third party owner of a Roof Top Solar PV System in the state of Telangana.

 

  • This Regulation does not preclude the right of a Distribution licensee or the State Government Department to undertake the Rooftop Solar PV projects above 1 MWp capacity through the alternative mechanisms.

 

  • The net metering facility, of an eligible consumer shall be in three phase service where a single phase consumer is also eligible for net metering up to 5 KW.  The capacity of a Rooftop Solar PV System to be installed at the premises of an eligible consumer shall not be less than 1kWp and a maximum of 1MWp peak.

 

  • The tariff payable to an eligible consumer under the net-metering arrangement will be the average power purchase cost of a Distribution Licensee.

 

  • The quantum of electricity consumed by an Eligible Consumer from the Rooftop Solar PV System under the Net Metering Arrangement shall qualify towards his compliance of RPPO, if such Consumer is an Obligated Entity.

 

  • The Rooftop Solar PV System under the net metering arrangement, whether self-owned or third party owned installed on the Eligible Consumer’s premises, will be exempted from
  • Transmission Charge,
  • Transmission Loss,
  • Wheeling Charge,
  • Wheeling Loss,
  • Cross Subsidy Surcharge
  • Additional Surcharge.

Uttarakhand Electricity Regulatory Commission (Renewable Power Purchase Obligation and its Compliance)

The Ministry of Power (MoP) had recently declared the national RPO trajectory.  The order had enlisted the yearly RPO trajectory for both non-solar and solar power purchase from 2016-17 till 2018-19. Following the steps of MoP RPO trajectory and other states Uttarakhand has also notified its amendment to the Renewable Power Purchase Obligation and its Compliance, regulations.

The regulation will be applicable to:

  • The distribution licensee
  •  Or any person, consuming electricity procured from conventional sources through open access third party sale,
  • Or person who installs Captive Generating Plant, with an installed capacity exceeding 5 MVA, requirements also.

The table below shows the Minimum Quantum of Purchase in percentage (%) from renewable sources (in terms of energy in kWh) of total consumption:

The said obligations will be applicable on total consumption of electricity by an obligated entity, excluding consumption met from hydro electric sources of power.

Analysis:

  • RPO to be applied on co-generation power
  •  Consumption from hydro sources to be excluded
  • RPO % is proposed to increase steeply – from 11.50% in 2016-17 to 14.25% in 2017-18 line with the MoP Trajectory. However, in effect the overall RPO of the UK will fall as 70% of the power consumed in the state comes from hydro sources.
  • In year 2013, UERC had come up with a five year long RPO Trajectory ranging from 6.05% (including both solar & non solar) in 2013-14 to 10.50% in 2017-18. The commission now proposes to increase its RPO target in comparison to its earlier trajectory, though the commission has not defined the RPO% FOR 2018-19 unlike other states. The graph given below gives a comparison between the MoP recent RPO Trajectory and UERC’s earlier RPO Trajectory.

Since Uttarakhand mostly thrives on the energy produced through Hydro Power, the state could be a beneficiary since RPO is excluded from RPO obligation as per the regulation.

The graph below shows the total and type of energy consumption by the state of Uttarakhand. The data has been derived from CEA Report.

Draft KERC (Procurement of Energy from Renewable Sources) Fourth Amendment, Regulations 2016

KERC has notified Fourth Amendment to KERC (Procurement of Energy from Renewable Resources) Regulations on October 27th, 2016. The draft of the proposed amendment is available in www.kerc.org. The highlights of the amendment are:

  1. RPO obligation is on captive plant, grid connected plants and open access consumers only .Hence non grid connected captive plants are free from RPO obligation in Karnataka state.
  2. Every distributions licensee, captive consumer and open access consumers may purchase REC or consume electricity generated from its own Renewable Energy Power Plant whether grid connected or otherwise, to meet its RPO either entirely or partly.
  3. The obligation of distribution licensees to purchase electricity from solar energy may be fulfilled by purchase of solar REC’s only.
  4. The capacity of Renewable Energy Power Plant owned by the obligated entity shall not be less than 250Kw.

KERC has invited written comments/views/suggestions on the proposed amendment latest by November 26th 2016 from interested parties.

REC Trade Result October 2016

Analysis of Trading:

 

Non Solar – The clearing ratio stood at 1.9% and 2.06% in both IEX and PXIL, with a significant increase of 46% in the no. of REC’s traded as compared to last month

Solar – Clearing ratio stood at 0.86 % and 1.16% in IEX and PXIL respectively, with an increase of 13% in total demand of Solar RECs as compared to last month.

This month trading saw significant improvement in the demand for both Solar and Non-Solar RECs as compared to last month. The total transaction value stood at 50.66 Crores in comparison to 37.5 Crores last month.

In contradictory to the total demand, this month saw a dip in the total REC issuance, where the demand increased by 1 lakh in comparison to September. This could be attributed due to the impact of CERC’s 4th amendment to RECs regulations.

 

Draft KERC (Procurement of Energy from Renewable Sources) Fourth Amendment, Regulations 2016

KERC has notified Fourth Amendment to KERC (Procurement of Energy from Renewable Resources) Regulations on October 26th, 2016. The draft of the proposed amendment is available in www.kerc.org. The highlights of the amendment are:

  1. RPO obligation is on captive plant, grid connected plants and open access consumers only .Hence non grid connected captive plants are free from RPO obligation in Karnataka state.
  2. Every distributions licensee, captive consumer and open access consumers may purchase REC or consume electricity generated from its own Renewable Energy Power Plant whether grid connected or otherwise, to meet its RPO either entirely or partly.
  3. The obligation of distribution licensees to purchase electricity from solar energy may be fulfilled by purchase of solar REC’s only.
  4. The capacity of Renewable Energy Power Plant owned by the obligated entity shall not be less than 250Kw.

KERC has invited written comments/views/suggestions on the proposed amendment latest by November 26th 2016 from interested parties.

Go to top