TRADE RESULTS OF ESCERTS FOR WEEK 8

The eighth trading session of ESCerts took place today.

 

In total, there was a demand for 12,241 ESCerts, an increase of  of 6.25% from last week. This demand was against a total supply of 3,19,810 ESCerts (decrease of 26.7% since last week).  Market clearing price was determined at Rs 200/ ESCert (compared to Rs 350 last week), with 12,125 ESCerts sold (value traded reduced by 33%; the total traded value was Rs 0.24 crore).  The price of ESCerts has reduced to nearly 1/6th from where it started.

 
Source: IEX
A circular has been released by the Bureau of Energy Efficiency (BEE) instructing all the Designated Consumers (DCs) which had not achieved their energy saving targets to comply to their obligations as per PAT cycle-1 through purchase of ESCerts. The circular also mentions the penalty for non compliance as maximum Rs 10 lakh and the additional penalty to be incurred.

TRADE RESULTS OF ESCERTS FOR WEEK 7

The seventh trading session of ESCerts took place today.

In total, there was a demand for 11,521 ESCerts, a decrease of 45.23% from last week. This demand was against a total supply of 4,36,394 ESCerts (increase of 13.83% since last week).  Market clearing price was determined at Rs350/ ESCert (compared to Rs 500 last week), with 10,351 ESCerts sold (value traded reduced by 62%; the total traded value  was Rs 0.36 crore).  The price of ESCerts has reduced to nearly 1/4th from where it started.

 

 

 

Source: IEX

MAJOR REFORMS EXPECTED IN THE ENERGY SECTOR, SAYS POWER MINISTER

In an article in  Financial Express, the power minister, Mr RK Singh, declared that huge reforms are to be expected in the power sector in the near future. Few of such reforms mentioned were PPAs for all the electricity requirement being made mandatory in all Indian states, cross subsidy in tariff being limited, compensation of low agriculture tariff  by increasing the industrial and commercial tariff and introduction of Direct Benefit Transfer (DBT). Also, introduction of a penalty provision  to those not meeting their RPO targets. This is in line with the Draft National Electricity Policy released by Niti Ayog in June 2017. The Union Minister also added that carriage and content shall be separated by his ministry which shall give the end user the flexibility to where they want to procure electricity from.

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.

 

 

 

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