UTTAR PRADESH ISSUES BONDS UNDER THE UDAY SCHEME

In an article in the Business Standard ,under the provisions of the Ujwal Discoms Assurance Yojna (UDAY) agreement, the state of Uttar Pradesh has issued bonds worth Rs 10,000 Cr. This is its second issuance against the debt of the discoms that it took over. The UP government had entered into a tripartite memorandum of understanding with the Ministry of Power and UPPCL to avail the benefits of UDAY which was aimed at helping the distressed power distribution companies with their finances.

Last year, UP was the first state to issue bonds having issued Rs 24,000 crore worth bonds by July.

REConnect performed a review of the UDAY scheme in one of it’s blogs. The link for the same can be found here

DEMAND FOR SOLAR TO BE HIT DESPITE LOW TARIFF RATES

In a Business Standard article, though solar tariff rates have hit an all time low in the REWA bidding, the future of solar projects seems bleak as there are no new tenders from the big states. Tenders from SECI and NTPC are facing delays and those from Rajasthan and Andhra Pradesh are getting downsized. In states like Rajasthan, Andhra Pradesh and Karnataka, the project biddings have been postponed. For the year 2016-17, only 10 GW of solar power has been awarded out of which 30% has been by the states and the rest has been from SECI and NTPC.

REC Trade Results February 2017

The Feb trade session remained a robust one, following the record setting session in January.  Total Non-solar demand was 10.4 lakhs (vs 15.2 L demand in January), and clearing ratios on IEX and PXIL were 8.7 and 6.2% respectively. On a year-to-date basis, this year Non-solar RECs demand has been significantly higher than last year. March 2017, which will be the last trading session of FY 16-17, is also expected to result in high trading volumes.

 

Solar RECs trading, on the other hand, has remained subdued. One reason is the significantly solar capacity coming online in states (with record low tariffs) – this result in Discom’s not buying solar RECs in large volumes. Also, the expected price drop in April 2017 may be resulting in potential buyers deferring purchases.

 

Non Solar – The clearing ratio stood at 8.72% and 6.2% in both IEX and PXIL respectively.

Solar – Clearing ratio stood at 1.26% and 0.34% in IEX and PXIL respectively.

 

 

 

KEY PROVISIONS FOR THE RENEWABLE ENERGY INDUSTRY IN UNION BUDGET 2017

Nothing exceptional was noticed in the budget this year with regards to the Renewable Energy sector. There was no change in the accelerated depreciation rate or the coal cess. Neither was there any change seen in the National Clean Energy Fund. This year’s budget proved to be quiet uneventful for the renewable energy sector. The only development that has been cited is that 7000 railway stations will be powered by solar energy. The allocation of budget to MNRE was 5,437 Cr which wasn’t a big change since last year’s budget of 5,000 Cr. Other than that, there weren’t any exceptional changes. An article in the Livemint also mentioned the following ” While total budgetary outlay to renewable energy marginally increased, there is little to celebrate. This budget is unlikely to catalyse action, attract private investment or underwrite risks. An opportunity was lost.”

 Key features of the budget can be found here

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