REC TRADE RESULTS DECEMBER 2017

This month’s trading session saw highest ever trade in the REC markets – 2nd time in a row after the record trading session last month. Non-solar demand was significantly higher than in December 2016, and also last month. In total 52.17 lakh RECs were traded (1,136% higher than December 2016, and 136% higher than in November 2017), and clearing ratios on IEX and PXIL were 46.09% and 58.15% respectively.  Total traded value was Rs 782 crores.

The increase in traded volumes have been driven by demand from both Discom’s and captive generators. Several regulatory commissions have issued orders and notices in the recent past. This trend is expected to continue into the last quarter of the financial year.

Trading of solar RECs continues to be suspended due to the stay imposed by the Supreme Court.

TRADE RESULTS OF ESCERTS FOR WEEK 14

The fourteenth trading session of ESCerts took place today.

 

In total, there was a demand for 365,980 ESCerts, a decrease of nearly 50% from last week. This demand was against a total supply of 1,094,568 ESCerts (increase of 31.68% since last week).  Market clearing price was determined at Rs 899/ ESCert (the price determined last week was Rs 1,000 per ESCert), with 2,20,791 ESCerts sold (value traded decreased by 55.87%; the total traded value was Rs 19.85 crore).

 

This was the last trading session for compliance under PAT cycle I. In total 10.85 lakh ESCerts have been purchased till date, compared to an estimated demand of about 14.25 lakhs ESCerts. The following graph illustrates the total demand as compared to the total ESCerts traded.

 

Companies that have failed to purchased ESCerts in compliance with their PAT Cycle I requirements will be required to now pay penalty at the rate of Rs 10,968. It will be upto BEE to levy and collect the penalty.

 

Based on the experience so far in the RPO markets, there are hardly any instances of imposition of penalty. However, if the BEE extends the deadline or fails to impose the penalty in a timely manner, it will set a very poor precedent for PAT Cycle II.

The trading data provided by IEX on their website can be accessed here.

Source: IEX

Regards,

Team REConnect

PETITION ON BACKING DOWN ORDERS ON ELECTRICITY GENERATION DISMISSED BY RERC

A petition has been filed by Renew Wind Energy, Ostro Renewables, Mytrah Vayu and CLP Wind Farms against Rajasthan SLDC and Rajasthan Rajya Vidyut Prasaran Nigam Ltd against the unlawful and unpredictable instructions issued by SLDC for backing down of generation of electricity. Wind generation companies argued that SLDC had issued backing down orders in the past giving grid stability as one of the reason. They also pointed out that the backing down orders were random in nature and were given despite providing regular day-ahead forecasts to SLDC

 

To this the SLDC had responded that such orders were given to RE generators only after they had been given to the generators of conventional energy. Also, the reasons for the orders had been duly noted by the SLDC to ensure transparency.

 

The commission held a hearing and after which, it made the decision to dismiss the petition and SLDC has been warned to issue backing down orders to RE generators strictly based on the Grid Code and a record of backing down and its reason shall be maintained.

 

The order can be accessed here.

WIND TARIFF HAS HIT A NEW LOW IN A REVERSE AUCTION HELD BY GUVNL

E-reverse auction for grid connected wind project of 500 MW in Gujarat which took place on 21 December 2017 saw the tariffs dipping to a historically low value of Rs 2.44/kWh. This is lower than the price determined in the second auction for SECI’s 1 GW wind capacity by Rs 0.21/kWh.

 

The lowest tariff was quoted by Sprng Energy Pvt Ltd and K.P. Energy Ltd for capacities of 197.5 MW and 30 MW respectively.  Following graph depicts the trends followed by wind tariff in this year:

 

TRADE RESULTS OF ESCERTS FOR WEEK 13

The thirteenth trading session of ESCerts took place today.

In total, there was a demand for 7,30,885 ESCerts, an increase of nearly 47.5% from last week. This demand was against a total supply of 8,31,224 ESCerts (increase of 91.6% since last week).  Market clearing price was determined at Rs 1,000/ ESCert (the price determined last week was Rs 525 per ESCert), with 4,49,818 ESCerts sold (value traded increased by nearly 539.6%; the total traded value was Rs 44.98 crore).

 

Trading volumes have increased in recent weeks as the compliance period is coming to a close. Next week is expected to be last trading session for compliance under PAT cycle I. In total 8.65 lakh ESCerts have been purchased till date, compared to an estimated demand of about 14 lakhs ESCerts.

 

The trading data provided by IEX on their website can be accessed here.

Source: IEX

Regards,

Team REConnect

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