REC trade result – January 2019

The price increase trends of the last few months continued in January as well.  The demand for both solar & non-solar remained consistent while the supply remained limited. The highlight of this month’s trade was that solar crossed the price of INR 1,500 in the last session and reached at INR 1750 at IEX.

Non-Solar: This session the RECs were traded at the price of INR 1501at PXIL (50.1% above the floor price) and INR 1500 at IEX (50% above the floor price). A total of 4,91,890 RECs were traded in this session leaving an inventory of 19,39,720 Non-Solar RECs.

Solar: Total number of solar RECs traded in this session was 1,18,526 (33.12% decrease from the last months’ trade). RECs traded at Rs 1500 at PXIL (50% above the floor price) and at Rs 1750 at IEX (75% above the floor price).

Gujarat announces RE Forecasting and Scheduling regulations, 2019

Gujarat Electricity Regulatory Commission has recently issued Forecasting, Scheduling, Deviation Settlement, and related matters of solar and wind generation sources regulations, 2019 on 19th January 2019. The notifications are effective from the date of notification, however, the deviation charges specified in the regulations will be effective from 1st August 2019.

The key points of the regulations are as below:

  • Deviation accounting:

Absolute Error in % = Actual Generation – Scheduled Generation /Available Capacity (AvC)

  • Eligibility criteria: The regulations will apply to all wind and solar generators having a combined installed capacity above 1 MW connected to the state grid/substation, including those connected via pooling stations, and selling generated power within or outside the state or consuming power generated for self-consumption.
  • Forecasting and scheduling code: Revision of schedule will be allowed if the revision is more than 2% of the previous schedule. For wind energy-based generations, maximum 16 intra-day and for a solar energy-based generation, a maximum of 9 intra-day revisions will be allowed.
  • Aggregation is not allowed of more than one pooling stations or individual generating station connected to a substation.
  • QCA or the wind and solar generator can submit “Day-ahead” and a “week-ahead” schedule  by 9 am every day for each pooling station or each generating station, wherein the Day-ahead schedule can contain wind or solar energy generation schedule at intervals of 15 mins (time-blocks)for the next day, starting from 00:00 hours of the day, and prepared for all 96 time-blocks and Week-Ahead schedule shall contain the same information for the next seven days.
  • The revisions of schedules for solar generators will be effective form 4th time block and there can be maximum of 9 revisions during the day starting from 5:30 hours to 19:00 hours of that day.
  • The revisions for a wind generating plants will be applicable for the entire 24 hours in a day.
  • The QCA will provide payment security to the extent of 110% against the deviation charges in form of Bank Guarantee. The payment security amount for the first year will be worked out considering average deviations observed during the mock trial dor different set of sites:
  1. Wind generating plant of approximately 50 MW capacity at pooling sub-station.
  2. Solar generating plant of approximately 25 MW capacity at pooling sub-station.

The table for the deviation charges and deviation limits is given below:

Deviation charges for wind operators

Deviation charges for solar generators

 

DERC announces (Renewable Purchase Obligation and Renewable Energy Certificate Framework Implementation) Regulations 2018 along with draft order for Renewable Purchase Obligation (RPO)

The Delhi Electricity Regulatory Commission recently issued a Renewable Purchase Obligation and Renewable Energy Certificate framework Implementation, regulations 2018 along with a draft order prescribing Renewable Purchase Obligation (RPO). The draft order will be applicable to any captive user, open access consumers and discoms in the state.

  • The RE projects will have an option of adopting either the tariff pricing service or the REC mechanism for pricing.
  • The projects opting for a tariff under the above-mentioned mechanisms will continue with the same tariff pricing structure until the period of validity of Power Purchase Agreement.
  • For all the obligated entities the aggregated RPO compliance of all the gross purchase from various generating stations will be considered for the quantum of renewable energy purchased towards compliance of Renewable Purchase Obligation.
  • Any surplus electricty generated after RPO compliance of such obligated entity will qualify towards RPO compliance of the Discoms.
  • All the obligated entity can purchase REC for any shortfall in their RPO targets for any fiscal year within 3 months or three trading sessions, provided that in case the obligated entity procures excess renewable power over and above its RPO target in any year, the obligated entity shall be allowed to set off in the following order: (i) against past accumulated shortfall in RPO compliance, if any, (ii) carry forward excess quantum of renewable power after set off against a past accumulated shortfall in RPO compliance up to three succeeding years and shall be set off against the quantum of Renewable Purchase Obligation of such succeeding year(s).

According to the draft order, the annual target for RPO in terms of the RPO-REC regulations for the obligated entities other than the discoms for FY 17-18 to FY 19-20 which will be considered as the percent of the total consumption by the obligated entities excluding of power through hydroelectric plants.


The commission has asked for the stakeholders to send in their comments, suggestions, and opinions to the Draft Delhi Electricity Regulatory Commission (Renewable Purchase Obligation and Renewable Energy Certificate Framework Implementation), Regulation 2018 & draft order by 2nd February 2019.

MNRE issues amendments in guidelines for the tariff-based competitive bidding process for solar PV projects

The Ministry of New and Renewable Energy (MNRE) along with the Ministry of Power (MoP) recently announced the amendments to the guidelines for the tariff-based competitive bidding process for procurement & Power from grid-connected solar PV power projects. The amendments made to the guidelines dated 3rd August 2017 and amended on 15th June 2018 are as follows:

Amendment in Point 9: Indicative time table for the bid process

Amendment in Point 12: Financial closure

“Solar Power Generator shall attain the financial closure in terms of the PPA, within 9 (nine) months from the date of execution of the Power Purchase Agreement, for projects being set up in Solar park, and within 12 (twelve) months from the date of execution of the Power Purchase Agreement, for projects being set up outside Solar park. However, if for any reason, the time period for attaining the financial closure needs to be kept smaller than that provided in these Guidelines, the Procurer can do the same.

Amendment in Point 14.3: Commissioning schedule

“The projects shall be commissioned, within a period of 15 (fifteen) months from the date of execution of the PPA, for projects being set up in Solar park, and within a period of 18 (eighteen) months from the date of execution of the PPA, for projects being set up outside Solar park…”

The issued amendments might be intended to bring discipline and consistency in the competitive bidding process as the government intends to achieve renewable energy installed capacity of 175 GW by 2022.

Andhra Pradesh announces new wind-solar hybrid policy

The government of Andhra Pradesh has recently announced a new wind-solar hybrid policy as the state targets to achieve 18000 MW of renewable capacity by the year 2021-2022. The broad objective of the policy is to provide a framework for the promotion of large grid-connected wind-solar PV systems for optimal & efficient utilization of transmission infrastructure and land, reducing the variability in renewable power generation and thus achieving better grid stability.

The key points of the policy are as below:

  • The policy will be applicable for a period of five years from the date of issuance.
  • The policy intends to procure 5,000 MW of contracted capacity under the five-year timeline.
  • The policy is applicable to new wind-solar projects as well as the existing wind/solar PV projects via hybridization.
  • The rules and eligibility of the categories are specified in the policy.
  • 100% banking of energy is allowed throughout the year based on the feasibility & approval from the TRANSCOs & DISCOMs.
  • Banking charges will be adjusted in kind at 5% of the energy delivered at the point of drawal and the banking will be possible between April to March.
  • Energy settlement will be done on a monthly basis & the unutilized energy will be purchased by the DISCOMs at 75% of the APPC as per the APERC rules.
  • Hybrid projects developed by the manufacturers will be allowed to sell the power to discoms via: (i) project specified tariff determined by APERC, (ii) at APPC under REC mechanism by availing RECs, (iii) via a transparent bidding process.
  • Transmission/distribution charges exempted up to 50% of the applicable charges for wheeling of power generated.
  • No transmission charges for connectivity to the nearest Central Transmission Unit (CTU) via State Transmission Unit (STU) network for inter-state wheeling of power.
  • For existing wind/solar plants applying for hybridization can avail all the incentives w.r.to previous policies balance operative period.
  • 50% of applicable Electricity duty shall be exempted for captive consumption, sale to
    DISCOMs and third party sale provided the source of power is from wind – solar hybrid
    power projects set up within the State.
  • 50% of the Cross subsidy surcharge shall be paid for third party sale provided the source of power is from Wind- Solar Hybrid Power Projects setup within the State.

Currently, Andhra Pradesh has RE installed capacity of 7229.8 MW as on November 2018, as per CEA.

RERC announces draft (first amendment) Net metering regulations 2018 for rooftop & small solar grid interactive system.

Rajasthan Electricity Regulation Commission (RERC) has recently notified the draft (first amendment) of net metering regulations, 2018 for rooftop & small solar grid interactive system in Rajasthan. The pilot net metering regulations came in 2015, after that this is the first amendment proposed by the commission. Since the first regulations, the feed-in tariff for solar PV has reduced drastically even lower than feed-in-tariff determined by the Commission for such projects. However, the Rajasthan commission is of the opinion that the tariff determined through auctions for Mega power projects cannot be made applicable for Rooftop solar PV projects which are of the kilowatt capacities (max.1000 kW) due to the higher capital cost of such rooftop projects.

The current amendment also talks about the excess electricity generated by the rooftop generator in the regulation clause 10(3) as follows:

“ Provided that in the event the electricity injected exceeds the electricity consumed during the billing period, such excess injected electricity above 50 units shall be paid by the Distribution Licensee at its Average Power Purchase Cost of the previous year. Provided further that Commission may review the above rate through an order as and when required. Net energy credits less than 50 units under Net Metering achieved in the particular billing period shall be adjusted in the next billing period till credit of 50 units is achieved.”

The regulation will come into effect after the date of notification in the official gazette.

Rajasthan commission has also released a discussion paper recently suggesting that the DISCOMs should purchase green energy directly instead of buying the electricity component form the RE projects.

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