REC Trade Result November 2016

This month trading saw stagnant results in respect to the demand for Non-Solar REC’s. The demand for solar REC saw marginal improvement in respect to the last month. The total transaction value stood at 53.6 Crores in comparison to 50.6 Crores last month.

 

Analysis of Trading:

 

Non Solar – The clearing ratio stood at 1.85% and 2% in both IEX and PXIL, with a significant increase of 2.25% in the no. of REC’s traded as compared to last month

Solar – Clearing ratio stood at 1.13 % and 0.96% in IEX and PXIL respectively, with an increase of 17.5% in total demand of Solar RECs as compared to last month.

 

This month also saw significant increase in total REC issuance, where the demand increased by 9 lakh in comparison to October. This could be attributed due to the impact of CERC’s 4th amendment to RECs regulations.

Uttarakhand Electricity Regulatory Commission (Renewable Power Purchase Obligation and its Compliance)

The Ministry of Power (MoP) had recently declared the national RPO trajectory.  The order had enlisted the yearly RPO trajectory for both non-solar and solar power purchase from 2016-17 till 2018-19. Following the steps of MoP RPO trajectory and other states Uttarakhand has also notified its amendment to the Renewable Power Purchase Obligation and its Compliance, regulations.

The regulation will be applicable to:

  • The distribution licensee
  •  Or any person, consuming electricity procured from conventional sources through open access third party sale,
  • Or person who installs Captive Generating Plant, with an installed capacity exceeding 5 MVA, requirements also.

The table below shows the Minimum Quantum of Purchase in percentage (%) from renewable sources (in terms of energy in kWh) of total consumption:

The said obligations will be applicable on total consumption of electricity by an obligated entity, excluding consumption met from hydro electric sources of power.

Analysis:

  • RPO to be applied on co-generation power
  •  Consumption from hydro sources to be excluded
  • RPO % is proposed to increase steeply – from 11.50% in 2016-17 to 14.25% in 2017-18 line with the MoP Trajectory. However, in effect the overall RPO of the UK will fall as 70% of the power consumed in the state comes from hydro sources.
  • In year 2013, UERC had come up with a five year long RPO Trajectory ranging from 6.05% (including both solar & non solar) in 2013-14 to 10.50% in 2017-18. The commission now proposes to increase its RPO target in comparison to its earlier trajectory, though the commission has not defined the RPO% FOR 2018-19 unlike other states. The graph given below gives a comparison between the MoP recent RPO Trajectory and UERC’s earlier RPO Trajectory.

Since Uttarakhand mostly thrives on the energy produced through Hydro Power, the state could be a beneficiary since RPO is excluded from RPO obligation as per the regulation.

The graph below shows the total and type of energy consumption by the state of Uttarakhand. The data has been derived from CEA Report.

Draft KERC (Procurement of Energy from Renewable Sources) Fourth Amendment, Regulations 2016

KERC has notified Fourth Amendment to KERC (Procurement of Energy from Renewable Resources) Regulations on October 27th, 2016. The draft of the proposed amendment is available in www.kerc.org. The highlights of the amendment are:

  1. RPO obligation is on captive plant, grid connected plants and open access consumers only .Hence non grid connected captive plants are free from RPO obligation in Karnataka state.
  2. Every distributions licensee, captive consumer and open access consumers may purchase REC or consume electricity generated from its own Renewable Energy Power Plant whether grid connected or otherwise, to meet its RPO either entirely or partly.
  3. The obligation of distribution licensees to purchase electricity from solar energy may be fulfilled by purchase of solar REC’s only.
  4. The capacity of Renewable Energy Power Plant owned by the obligated entity shall not be less than 250Kw.

KERC has invited written comments/views/suggestions on the proposed amendment latest by November 26th 2016 from interested parties.

REC Trade Result October 2016

Analysis of Trading:

 

Non Solar – The clearing ratio stood at 1.9% and 2.06% in both IEX and PXIL, with a significant increase of 46% in the no. of REC’s traded as compared to last month

Solar – Clearing ratio stood at 0.86 % and 1.16% in IEX and PXIL respectively, with an increase of 13% in total demand of Solar RECs as compared to last month.

This month trading saw significant improvement in the demand for both Solar and Non-Solar RECs as compared to last month. The total transaction value stood at 50.66 Crores in comparison to 37.5 Crores last month.

In contradictory to the total demand, this month saw a dip in the total REC issuance, where the demand increased by 1 lakh in comparison to September. This could be attributed due to the impact of CERC’s 4th amendment to RECs regulations.

 

Draft KERC (Procurement of Energy from Renewable Sources) Fourth Amendment, Regulations 2016

KERC has notified Fourth Amendment to KERC (Procurement of Energy from Renewable Resources) Regulations on October 26th, 2016. The draft of the proposed amendment is available in www.kerc.org. The highlights of the amendment are:

  1. RPO obligation is on captive plant, grid connected plants and open access consumers only .Hence non grid connected captive plants are free from RPO obligation in Karnataka state.
  2. Every distributions licensee, captive consumer and open access consumers may purchase REC or consume electricity generated from its own Renewable Energy Power Plant whether grid connected or otherwise, to meet its RPO either entirely or partly.
  3. The obligation of distribution licensees to purchase electricity from solar energy may be fulfilled by purchase of solar REC’s only.
  4. The capacity of Renewable Energy Power Plant owned by the obligated entity shall not be less than 250Kw.

KERC has invited written comments/views/suggestions on the proposed amendment latest by November 26th 2016 from interested parties.

MPERC Determines Tariffs for Solar Power Projects

Madhya Pradesh Electricity Regulatory Commission recently released its tariff order for energy procured from solar power based projects for the control period from 31st March 2016 to 31st 2019. The tariff determined by the Commission in this will be applicable to the following Projects located in the State of Madhya Pradesh and selling electricity to the distribution licensees within Madhya Pradesh only:-

(a) Solar PV Power Plants

(b) Solar Thermal Power Plants

The Commission came out; vide its proposal for categorization of solar PV and thermal projects as well as for fixing the norms for technological specific parameters.

The Commission has fixed the normative capital costs inclusive of all components as well as taxes etc. for solar thermal and solar PV projects by keeping in line with the CERC benchmark capital cost of Rs. 12 Crore and 5.3crores per MW for 2016-17. The graphs below gives a comparison of the Capital cost and levelized tariff from the previous control period:

 

The MPERC Regulation can be accessed here.

The MPERC Previous tariff Order can be accessed here.

 

Joint Electricity Regulatory Commission (Renewable Power Purchase Obligation and its Compliance)

The Joint Electricity Regulatory Commission (Goa and UT’s) recently came up with its long term Renewable purchase obligation trajectory and compliance regulation, following the footsteps of states like Chhattisgarh, HP and AP. JERC has declared its RPO Trajectory up to 2022 with total RPO of 17% which lags behind in comparison with MoP RPO Trajectory and of other states.

Just like other states, the said obligations will be applicable on total consumption of electricity by an obligated entity, excluding consumption met from hydro electric sources of power. The graph below gives comparison of MoP RPO Trajectory with JERC RPO Trajectory:

 

The JERC Regulation can be accessed here.

 

 

 

Andhra Pradesh Electricity Regulatory Commission (Renewable Power Purchase Obligation and its Compliance)

The Ministry of Power (MoP) had recently declared the national RPO trajectory.  The order had enlisted the yearly RPO trajectory for both non-solar and solar power purchase from 2016-17 till 2018-19. Following the steps of MoP RPO trajectory, Chhattisgarh, Himachal Pradesh and now Andhra Pradesh has notified its Renewable Power Purchase Obligation and its Compliance, regulations which will be effective from April 17, 2017.

The regulation will be applicable to:

  • The distribution licensee
  •  Or any person, consuming electricity procured from conventional sources through open access third party sale,
  • Every consumer owning a captive generating plant of installed capacity 1 MW and above and synchronized with the Grid.

 

The table below shows the Minimum Quantum of Purchase in percentage (%) from renewable sources (in terms of energy in kWh) of total consumption:

 

The said obligations will be applicable on total consumption of electricity by an obligated entity, excluding consumption met from hydro electric sources of power.

 

Analysis:

  • RPO to be applied on co-generation power
  • The distribution licensees shall compulsorily procure 100% power produced from all the Waste-to-Energy plants in the State, in the ratio of their procurement of power from all sources.
  • The Consumption from hydro sources to be excluded
  • RPO % is proposed to increase steeply – from 11.50% in 2016-17 to 17% in 2018-19 line with the MoP Trajectory.
  • The graph given below gives a comparison between the MoP recent RPO Trajectory and APERC’s RPO Trajectory

The regulation can be accessed here

Himachal Pradesh Electricity Regulatory Commission (Renewable Power Purchase Obligation and its Compliance) Regulations

The Ministry of Power (MoP) had recently declared the national RPO trajectory.  The order had enlisted the yearly RPO trajectory for both non-solar and solar power purchase from 2016-17 till 2018-19. Following the steps of MoP RPO trajectory, Chhattisgarh and now Himachal Pradesh have notified its third amendment to the Renewable Power Purchase Obligation and its Compliance, regulations.

The regulation will be applicable to:

  • The distribution licensee
  •  Or any person, consuming electricity procured from conventional sources through open access third party sale,
  • Or person who installs Captive Generating Plant, with an installed capacity exceeding 5 MVA, requirements also.

The table below shows the Minimum Quantum of Purchase in percentage (%) from renewable sources (in terms of energy in kWh) of total consumption:

The said obligations will be applicable on total consumption of electricity by an obligated entity, excluding consumption met from hydro electric sources of power.

Analysis:

  • RPO to be applied on co-generation power
  •  Consumption from hydro sources to be excluded
  • RPO % is proposed to increase steeply – from 11.50% in 2016-17 to 17% in 2018-19 line with the MoP Trajectory. However, in effect the overall RPO of the HP will fall as 77% of the power consumed in the state comes from hydro sources.
  • In year 2011, HPERC had come up with a ten year long RPO Trajectory ranging from 10% (including both solar & non solar) in 2011-12 to 19% in 2021- 22. The commission now proposes to increase its RPO target in comparison to its earlier trajectory. However, in 2016-17, RPO % is will be reduced. The graph given below gives a comparison between the MoP recent RPO Trajectory and HPERC’s earlier RPO Trajectory

The graph given below gives a comparison between the MoP recent RPO Trajectory and HPERC’s earlier RPO Trajectory:

 

As the graph indicates HPERC has increased its RPO target by 2.25% to be achieved by 2018-19. Since Himachal Pradesh mostly thrives on the energy produced through Hydro Power, the state could be a beneficiary since RPO is excluded from RPO obligation as per the regulation.

The graph below shows the total and type of energy consumption by the state of Himachal Pradesh. The data has been derived from CEA Report.

 

Almost 3/4th energy of the total consumption comes from the Hydro Power. Its an added advantage for the state that RPO is exempted from the power consumed through Hydro sources, thus this in turn will reduce the cost of power from the state.

The regulation can be accessed here.

The CEA Report could be accessed here

 

Madhya Pradesh Electricity Regulatory Commission (Cogeneration and Generation of Electricity from Renewable Sources of Energy) (Revision-I)

Madhya Pradesh Electricity regulatory Commission (MPERC) recently ordered amendment for its Cogeneration and Generation of Electricity from Renewable Sources of Energy Regulation 2010.

The new amendment has defined the minimum quantum of electricity to be procured by all the Obligated Entities from Co-generation from Renewable Sources of electricity expressed as % of their total annual procurement of Electrical Energy.

The new amendment has excluded consumption met from hydro sources of power during the following Financial Years given as under:-

 

As the Ministry of Power (MoP) declared the national RPO trajectory recently, all the states are expected to declare their RPO trajectory soon.

The MPERC Draft can be accessed here.

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