GUVNL’S BIDDING FETCHES TARIFF OF Rs 2.65

In a bidding which took place on 19th September 2017 for a 500 MW solar plant of Gujarat Urja Vikas Nigam Ltd. (GUVNL), the lowest price determined was Rs 2.65 per unit. This was slightly higher than the price of Rs 2.44 determined in the last reverse bidding by SECI. This increase in the price determined was attributed to the implementation of GST and the increase in the cost of solar panels being imported from China.

A continuous decreasing trend has been seen in the tariff determined for solar projects in the Country this year. The following graph determines the trend in prices of solar power determined in the past:

The article can be accessed here.

IEX’S ELECTRICITY PRICE IN DAY AHEAD MARKET REACHES NEW HIGH THIS MONTH

In the Day Ahead Market trading held by IEX (Indian Energy Exchange), the average tariff of electricity has been between Rs 3 to Rs 4 per unit. But within 12 days of September, the average tariff has gone up to Rs 8.7 per unit.

This increase in prices is majorly attributed to the reduction in generation from wind and hydro power plants, though the demand has remained stable as compared to last year.

 
As per the graph, it is clear that the prices for this month have been much higher as compared to the price in the previous months for the reasons mentioned above.
The article can be accessed here.

KSERC RELEASES TARIFF ORDER FOR FY 2017-18

KSERC (Kerala State Electricity Regulatory Commission) has released a tariff order determining the retail tariff for FY 2017-18 for the state. Salient features of the order are as follows:

 

 

Transmission Charge: The transmission charge for FY 2017-18 is Rs 0.37/unit

Wheeling Charges: The wheeling charges determined for the FY 2017-18 are Rs 0.31/unit

Cross Subsidy Surcharge: The cross subsidy surcharge is  Rs 0.91/unit.

 

The order can be accessed here.

KERC DETERMINES RETAIL TARIFF FOR STATE

Karnataka Electricity Regulatory Commission in its order dated 11th April, 2017, has approved the retail supply tariff for 2017-18. The tariff hike proposed by the KERC for industrial and commercial consumers and a comparison of the existing and the new tariff proposed by the commission can be seen as follows:

 

 

The table below represents the cross subsidy charges worked out as per the different consumer category:

 

The order can be accessed here.

MPERC RELEASES TARIFF ORDER FOR LV, HV AND EHV CONSUMERS:

Madhya Pradesh Electricity Regulatory Commission (MPERC) in its order dated 1st April 2016 has determined the tariff for Low Voltage (LV), High Voltage (HV) and Extra High Voltage (EHV). A summary of the tariff for HV3 consumers which includes Industrial, Non-industrial and Shopping Malls has been given in the table below:

The order can be accessed here

FOR THE FIRST TIME, INDIA BECOMES A NET EXPORTER OF ELECTRICITY, SAYS POWER MINISTRY:

As per an article in the Times of India, the power ministry on 29th March, 2017 declared that India has now become a net exporter of power. Power export of about 5,498 million units was seen from April ’16 – February ’17 and this value was 4% higher than the power India imported from Bhutan. New electricity lines to neighboring countries such as Nepal, Myanmar and Bangladesh will only aid in the sale of electricity from the country.

This is an interesting prospect for India since it has always been a power deficit country. Though there are many villages as mentioned in the  Economic Times article within India which do not receive electricity all day round, India has been able to gain the status of being a net exporter. This is mostly because of the poor financial health of DISCOMS in the country.

 

India generated 33029.39 MU Wind Power & 7447.92 MU Solar Power Generated during Year 2015-16

The Minister of State for Power, Coal, New & Renewable Energy and Mines Shri Piyush Goyal informed that the generation of electricity from wind and solar sources in the country stood at 33,029.39 million units and 7,447.92 million units, respectively, during 2015-16.

Quoting the figures received from the Central Electricity Authority (CEA), the minister said during the last two years, i.e., 2014-15 and 2015-16, the country added a total of 5,735 MW of wind power capacity and 4,131 MW of solar power capacity.

It was also told that a capacity addition target of 4,000 MW and 12,000 MW has been proposed for generation of electricity from wind and solar energy, respectively, during 2016-17 and a total of 315 MW have been installed under Solar Roof top Scheme. Power generated from these projects is being used for both domestic and captive use, the minister informed.

Goyal stated that tenders for 20,766 MW solar power projects have been issued. He also said that the wind power projects are mainly developed by private sector under various modes, including PPA, REC, captive use, third party sale etc, adding that the centre has not undertaken construction of wind energy project.

  • The ministry is implementing several schemes to promote generation of solar and wind energy. These include: Development of solar parks and ultra mega solar power projects
  • Development of solar PV power plants on canal banks / canal tops
  • Setting up of 300 MW grid connected solar PV power projects by defense establishments under ministry of defense and Para military forces with viability gap funding (VGF) under Batch-IV of Phase-II/III of Jawaharlal Nehru National Solar Mission (JNNSM)
  • Setting up 1,000 MW grid-connected solar PV power projects by CPSUs with VGF under Batch-V of Phase-II of JNNSM
  • Setting up of 15,000 MW grid-connected solar PV power projects under Batch II of Phase II of National Solar Mission (by NTPC/NVVN)
  • Setting up of 2000 MW grid-connected solar power projects with VGF through Solar Energy Corporation of India (SECI) and generation based incentive scheme for promotion of wind power.

The press release can be accessed here.

 

 

 

Odisha Declares Open Access Charges for 2014-15

Odisha Electricity Regulatory Commission (OERC) has determined the Open Access charges through a notification dated 11thApril 2016.

The new charges determined are applicable for FY 16-17 with effect from 11th April 2014. The details of the charges are in the table below:

 

 

The normative transmission loss at EHT (3.70%) and normative wheeling loss for HT level (8%) are applicable for the year 2016-17.

Additional Surcharge: No additional surcharge over and above the Cross-Subsidy Surcharge needs to be given to the embedded licensee.

No Cross-subsidy surcharge are payable by the consumers availing Renewable power.

20% wheeling charge is payable by the consumer drawing power from Renewable source excluding Co-generation & Bio mass power plant.

The order can be accessed here.

 

 

KERC Tariff Revision 2017

Karnataka Electricity Regulatory Commission in its order dated 30th March 2016, approved the retail supply tariff for 2016-17. The tariff hike proposed by KERC for domestic category and industrial consumers and a comparison of the existing and new tariff approved by the commission can be seen in the table below:

The table below is the cross subsidy charges worked out as per the different the consumer category.

The order can be accessed here.

REC Trade Result March 2016

March, being the last month of the Financial Year to fulfil the yearly RPO obligations, saw significant rise in demand in both the Solar and Non-Solar segments, as compared to the last three months. Non-Solar RECs demand almost doubled and Solar RECs demand rose by 68.45%, as compared to February. This was the result of stricter compliance and can also be attributed to the recent Ad by MNRE asking all entities to fulfil their obligation. The total transaction value stood at 213.3 Crores as compared to 119.5 Crores last month.

Analysis of Trading:

Non Solar – Clearing ratio in exchange stood at 7.65% and 8.93% in IEX and PXIL respectively for Non Solar REC’s. A total of 11, 14,319 RECs were traded as compared to 586,501 RECs traded in February. Overall, it was a good recovery in this segment, which also saw the closing Inventory come down marginally.

Solar – Clearing ratio stood good at 5.07% and 3.35% in IEX and PXIL respectively, with total clearing volume of 152,006, as compared to 90,236 last month. The recovery was good, but contrary to the Non-Solar inventory, the solar inventory showed no reduction.

 

As compared to March-2015, where the Non-Solar and Solar demand stood at 654985 and 68982 respectively, it was 70% and 120% higher for Non-Solar and solar respectively, in March-2016. However, the closing inventory for the FY stands at 13.28 million and 3.31 million for Non-Solar and Solar respectively, worth close to Rs. 3151 Crores. April-2015 trading saw huge clearance due to late fulfillment of obligations, and the same can be expected next month as well.

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.

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