REConnect Newsletter Volume 52 (June 2015) – OPEN ACCESS

Dear Reader,

 We are please to present OPEN ACCESS – our monthly newsletter that covers important developments in the renewable energy markets. This month’s newsletter covers:

  • Detailed analysis of the 5th Amendment to REC regulations proposed by CERC. This amendment will have significant impact on renewable energy based CPPs and OA projects, and also on the market demand-supply situation down the road
  • Updates on regulatory changes from Gujarat, Telangana, MP, Mahasrashtra, JERC and Rajasthan
  • Analysis of the REC trading sessions in June. Demand was well below May trading volumes. However, the broad trend remains positive due to the SC order on RPO.

 The newsletter can also be downloaded by clicking here – or past newsletters from here.

We hope you enjoy reading the newsletter. Please send us comments and feedback.

 Regards,

 Team REConnect

REConnect Newsletter Volume 41 – OPEN ACCESS

Dear Reader,

We are pleased to present Open Access Vol. 41 – our monthly newsletter covering RECs and regulatory – market developments in the renewable energy space.

Key points covered in this newsletter are:

1) Our analysis on the likelihood of RPO enforcement in FY 2014-15.

2) Regulatory updates including KERC’s final APPC for FY14 & FY15 (interim) & JSERC order on declaration of Bokaro Steel Plant’s CPP as Cogeneration unit.

3) Analysis of the most recent trading session of RECs and capacities in the REC mechanism.

The newsletter is attached with this email and also can be found on our webpage – http://www.reconnectenergy.com/newsletter/past-newsletters/

We hope that you find the newsletter a useful read. Do provide us feedback.

Regards,

– Team REConnect

Updates from 39th FOR meeting

The following are the key issues discussed w.r.t REC markets –

  • The concept of REC multipliers for solar was endorsed in principal.
  • It was also decided that a detailed note be prepared on the desirability and feasibility of merger of solar and non-solar REC in future, and the issue be taken up for discussions in the next meeting of FOR.

The minutes of meeting can be read – here.

REConnect Newsletter Volume 40 – OPEN ACCESS

Dear Reader,

We are pleased to present Open Access Vol 40 – our monthly newsletter covering RECs and regulatory and market developments in the renewable energy space.

Key points covered in this newsletter are:

 1) Two important announcements – Infuse Ventures – a clean tech focused venture capital fund invested in REConnect Energy, and 2) The scheduling and forecasting team reached an important milestone of sending over 15,000 schedules till date. This milestone was achieved in a short span of 8 months.

 2) A detailed analysis of the REC markets in FY 2013-14

 3) Regulatory updates including important changes in RPO regualtions in Gujarat and Rajasthan

 4) Analysis of the most recent trading session of RECs and capacities in the REC mechanism

 The newsletter can also be downloaded by clicking here – or past newsletters from here.

 We hope you find the newsletter a useful read. Do provide us feedback.

 Regards,

– Team REConnect

REConnect Newsletter Volume 39 – OPEN ACCESS

We are pleased to present the 39th Volume of “OPEN ACCESS” – our monthly newsletter on REC Mechanism.

The present volume covers analysis on following main topics:

  • Detailed analysis of the bidding under JNNSM Phase 2 by solar industry export Shri Gopal Somani
  • Various regulatory updates including review of revised procedures for RECs accreditation, registration and issuance. Details about reterntion of RECs for own RPO fulfillment are also included.
  • REC trading analysis for February 2014.

To access the current volume (OPEN ACCESS Vol. 39) please Click Here

To read past volumes of our newsletter please follow this link.

We hope you will find this volume of OPEN-ACCESS an insightful read. As always, look forward to your feedback and continued support.

Regards,

Team REConnect

Govt. pushes for stronger RPO enforcements

The Ministry of New & Renewable Energy (MNRE) has written to Ministry of Power (MoP) to include stronger enforcement provisions in the Electricity Act itself, which at present is absent.

An article in Business Standard, quoted Joint Secretary of MNRE saying the following, at an event:

“What we have requested is that the Electricity Act itself should mention about RPO… Or there (should) be some other alternative, so that it becomes binding. Also the enforcement provision should be more stronger,”.

He also called for greater investments in renewable energy sector of India.

REC markets have been performing poorly. In January 2014 also, which was 1st month of last quarter of FY14, the volumes remained far from encouraging and resulted in continued clearing of RECs at floor price. More insights can be learnt by clicking here – REC Trade Report – January 2014.

According to recent details made public by Hon’ble MNRE, as on 31st January 2014, the total grid connected renewable capacity of the country has touched 30 GW. However, the achievements highlighted are only around 50 % of the target for the year. The details can be accessed here – MNRE – Physical Progress (Achievements).

REConnect Newsletter Volume 38 – OPEN ACCESS

We are pleased to present the 38th Volume of “OPEN ACCESS” – our monthly newsletter on REC Mechanism. 

The present volume covers analysis on following main topics:

  • Details of landmark order from UERC for imposing penalty for non-compliance of RPO .
  • Analysis of draft of CERC RE tariff order.
  • Various regulatory updates including: ApTel’s order on TN SPO and CERC’s order on RRF mechanism
  • REC trading analysis for January 2014.

To access the current volume (OPEN ACCESS Vol. 38) please Click Here.

To read past volumes of our newsletter please follow this link.

We hope you will find this volume of OPEN-ACCESS an insightful read. As always, look forward to your feedback and continued support.

Regards,

Team REConnect

REConnect Newsletter Volume 37 – OPEN ACCESS

We are pleased to present the 37th Volume of “OPEN ACCESS” – our monthly newsletter on REC Mechanism. 

The present volume covers analysis on following main topics:
 
  • Recent steps taken by Tamil Nadu, Maharashtra & Delhi towards small scale solar projects. 
  • MERC order on solar RPO for Tata Power Company – Distribution.
  • ApTel’s judgment on fossil fuel based co-gen plants..
  • CERC’s order on REC issuance of UP’s co-gen plants. 
  • REC Trade Analysis – November 2013 & December 2013. 

To access the current volume (OPEN ACCESS Vol. 37) please Click Here.

To read past volumes of our newsletter please follow this link

We hope you will find this volume of OPEN-ACCESS an insightful read. As always, look forward to your feedback and continued support. 
 

Regards,

Team REConnect

REC Trading Report – September 2013

Renewable energy credit trading in September’13 seemed to keep the investors in the mechanism, interested. Demand of both type of RECs i.e. solar as well as non-solar,  was observed to be better than last month. Total RECs available in the inventory before the trade session was marginally over 37.5 Lac and the two-hour session managed to clear up-to 9.6 % only. As compared to August’13, there was a significant jump by 30.73% in “REC redeemed” figures of the inventory.  It is pertinent to note that Sept’13 marked the end of Q2 FY14 and markets can be said to perform poorly, if compared to clearing volumes of first month of the quarter (July’13).

The coming quarter is expected to be no less than a “decider” for the fate of REC markets, as more states order stricter compliance of RPO. The most recent and significantly encouraging push is that from Uttarakhand (Refer), where its DISCOM UPCL has been ordered to meet RPO shortfall of FY12 no later than 15th Nov’13. Demand of 50,000 RECs is thus expected from Uttarakhand alone in the next trade session.

Non-Solar RECs

Demand for non-solar RECs increased by 21%, whereas supply increased by 16%. The total RECs that participated in September’13 trade session was close to 34.5 Lacs. Clearing ratios at IEX was around 1.65 % and that in PXIL was recorded as 1.03%.

Fig 1 : Non-Solar REC Trade Stats – September 2013

Fig 2: Non-Solar REC Market Clearing Price – September 2013

As is manifested by the graph below, the prices remained at floor (Rs. 1500 per REC).

 Solar RECs

Demand of solar RECs increased by a humongous 184 % whereas supply recorded a jump by 64%. This sharp rise in demand for solar RECs is a positive sign for solar generators.  Clearing ratio at IEX was around 15 % and that recorded at PXIL was around 6.56%. As the slope of “Supply” curve (in graph below) was greater than that of “Demand” curve, there was no upside in prices and the solar REC market continued to trade at floor price.

 Fig 3 : Solar REC Trade Stats – September 2013

 

Fig 4 : Solar REC Market Clearing Price – September 2013

For trade results of August 2013, please click here.

For relevant media article click  – Economic Times.

REC Trading Report – August 2013

Market continued to perform poorly as prices remained at floor for both non solar and solar RECs. There were major pronouncements this month on the RPO front which includes  one of the most industrialized like Maharashtra, coming with a stern compliance order by the end of Fy14. Owing to these developments, market performance is expected to improve but only in the last quarters i.e. Q3 and Q4 of FY14. REC inventory closed with 3187508.

Non Solar RECs

For non solar credits, the clearing volumes, as compared to previous trading session (REC Trading Report – July 2013) plunged by 56% and 89 % at IEX and PXIL respectively. As evident in the chart below, the supply continued to grow.

 Fig 1: Non Solar REC Trade Stats – August 2013

 Fig 2 : Non Solar REC Market Clearing Price – August 2013

Solar RECs

As compared to July 2013, clearing volumes  at both exchanges increased by a modest 16.2 %.  Supply almost doubled at IEX as total supply in the market breached 30000 mark.

 Fig 3: Solar REC Trade Stats – August 2013

 Prices at both exchanges was 9300 per solar REC.

Fig 4 : Solar REC Market Clearing Price – August 2013

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