N E W S A N D I N F O R M A T I O NIEX Bulletin

MAY'18 ISSUE 05 | VOlUME 5

ISO 9001:2008, 27001:2013, 14001:2004

www.iexindia.com | 01

In thIs Issue...PAGE REGUlATORY NEWS

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01 APTEL Upholds CERC Order on REC Floor and Forbearance Price

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02MoP issues Clarification – No License Required for EV Charging Station along with Renewable Energy Power

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02MoP Scheme on Flexibility in Generation and Scheduling of Thermal Power Stations

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02 Supreme Court Mandates Legal Member in the Commission

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03 GERC Issues Tariff Order and Additional Surcharge for FY19

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04 HPERC Proposes Draft Amendment to Open Access Regulations

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04 Meghalaya Tariff Order for FY19

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05 PSERC Determines Additional Surcharge for H2 17-18

PAGE MARKET UPDATES

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07 Power Market: April’18

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08 REC Market: April’18

PAGE POWER SECTOR AT A GlANCE

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09 Power Sector at a Glance

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11 Integrating Renewable Energy at Exchange Platform

PAGE TRADE DATA

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13 April’18

REGUlATORY NEWS

APTEl Upholds CERC Order on REC Floor and Forbearance Price

APTEL vide its judgment dated 12.04.2018, upheld CERC Order on Floor and Forbearance price of RECs

The Green Energy Association has challenged, Indian Wind Power Association and Uttar Pradesh Sugar Mills Co-Gen Association had challenged CERC order dated 30 March’18. The Petitioners were aggrieved by the reduction of floor and forbearance prices by CERC. APTEL, in the said judgment framed following four issues:

� Whether the impugned order has been passed in contravention of the existing statutes, law, policy, regulations, etc., relating to RE generation/RECs

Findings of APTEL: The central commission has passed the impugned order in accordance with various statutory frameworks such as the Act, Electricity/Tariff Policies, REC Regulations, etc. and does not cause to show any violation thereof.

� Whether change in methodology for determining the floor & forbearance prices, discontinuation of vintage multipliers, etc. is reasonably justified?

Findings of APTEL: In view of the growing competition and induction of latest technologies, more and more generators are participating in the auctions/bids with considerable reduced cost of generation. Thus, the Central Commission in specifying REC prices has shifted to bid discovered prices in place of earlier generic tariff fixed by it when the RE sector specially solar was in infancy stage. Similar is the case of Vintage Multiplier, which was specified based on its necessity under the discretionary powers of the central commission. The central commission has adequately dealt with these matters in the impugned order with cogent reasoning and we do not find any infirmity or otherwise, unjustness in specifying the floor and forbearance prices of REC and discontinuation of the Vintage Multiplier.

� Whether the huge inventory of unsold RECs and RPO compliance by obligated entities have been taken into account by CERC?

Findings of APTEL: Under the prevailing market scenario, the prices of RECs cannot be kept artificially high to burden the end consumers. Further, if the prices of RECs are kept high without aligning them with the market reality and current cost of electricity, the obligated entities may not purchase the RECs and try to fulfill their RPOs by other means. It is also noteworthy that sufficient time has been given to RE generators to sell their RECs at the power exchange but perhaps in anticipation of selling them at better prices has resulted into unsold REC inventory.

� Whether a specific REC price, financial security, etc. can be claimed as vested rights?

Findings of APTEL: Majority of states in the country do not need any floor price support as Minimum Project Viability Requirement is negative in those states. For instance, the state of Madhya Pradesh, the floor price based on MPVR is determined as ` 0.44/unit which has sufficient buffer as compared to the floor price of ̀ 1.00/unit specified by the central commission. Another important fact is that among the three routes available for RE generators, the REC capacity is dominated by RE generators operating under CGP and OA route rendering APPC route as the last choice. It may be due to the fact

02 | www.iexindia.com

that under the APPC route, the RE generator gets lower tariff than the reference price level under CGP & OA route. This issue of higher realisation of revenue by RE generators by sale/consumption of electricity under OA/CGP route has been raised by different state commissions/stakeholders from time to time. Keeping all these facts in view, we are of the opinion that REC prices being non-static and market driven cannot be claimed as a matter of vested rights by RE generators.

Consequently on 24 Apr’18 CERC issued directions to Power Exchanges to resume trade in both Solar and Non Solar RECs.

More information: www.aptel.gov.in

MoP Issues Clarification – No license Required for EV Charging Station along with Renewable Energy PowerThe Ministry of Power vide its Memo dated 13th April, 2018 has clarified the following:

yy The charging of battery essentially involves utilization of electrical energy for its conversion to chemical energy, which gets stored in the battery. Thus, the charging of battery of an electric vehicle by a charging station involves a service requiring consumption of electricity by the charging station and earning revenue for this purpose from the owner of the vehicle. The activity does not in any way include sale of electricity to any person as the electricity is consumed within the premises owned by the charging station, which may be connected to the distribution system or otherwise for receiving electricity. By the same logic, the activity does not involve further distribution or transmission of electricity.

yy Therefore during the activity of charging of battery for use in electric vehicle, the charging station does not perform any of the activities namely transmission, distribution or trading of electricity, which require licence under the provisions of the Act, hence the charging of batteries of electric vehicles through charging station does not require any licence under the provisions of the Electricity Act, 2003.

MoP Scheme on Flexibility in Generation and Scheduling of Thermal Power StationsThe Ministry of Power vide its Memo dated 05th April, 2018, proposed mechanism for allowing Flexibility in Generation and Scheduling of Thermal Power Stations to reduce emissions. The key highlights of the scheme are as follows:

yy The thermal generating companies would be allowed to utilize its renewable capacities for supplying power against existing commitments to supply the power from thermal station(s) anywhere in India.

yy Once schedule for the next day is received against its declared capacity, the generating station shall have the flexibility of using its Thermal power or the generating company owned renewable power or procured RE Power to meet its generating station scheduled generation. Thus the RE power shall replace the thermal power of any of the thermal generating station of the generating company, wherever found feasible by the generating company.

yy The sum total of all the power actually supplied from various generating sources shall be considered for DSM purposes.

yy Procurement and supply of RE power by the Generator for supply under this scheme shall be allowed and necessary License required need to be fulfilled by the respective Generating Company.

yy The proposed scheme shall be applicable only for the thermal projects developed/being developed under Section 62 of the Electricity Act, i.e., "Regulated Tariff based Projects".

yy The changes in the regulation, if any, required for implementation of the above scheme shall be done by the appropriate Electricity Regulatory Commission.

yy CEA to suggest a road map for implementation of the scheme at the generating company level i.e. a change from station wise flexibility to company-wise flexibility.

More information: www.powermin.nic.in

Supreme Court Mandates legal Member in the Commission

Hon’ble Supreme Court passed judgment in CIVIL APPEAL No.14697 of 2015 in matter of STATE OF GUJARAT & ORS. V/s UTILITY USERS’ WELFARE ASSOCIATION & ORS wherein the Hon’ble Supreme Court held that:

yy It is not mandatory to appoint a High Court Judge as a Chairperson of the State Commission.

yy It is mandatory that there should be a person of law as a member of the Commission, which requires a person, who is, or has been holding a judicial office or is a person possessing professional qualifications with substantial experience

www.iexindia.com | 03

in the practice of law, who has the requisite qualifications to have been appointed as a Judge of the High Court or a District Judge.

yy In any adjudicatory function of the State Commission, it is mandatory for a member having the aforesaid legal expertise to be a member of the bench.

yy The challenge to the appointment of the Chairman and Member of the Tamil Nadu State Commission is rejected as also the suo-moto proceedings carried out by the Commission.

yy Judgment will apply prospectively and would not affect the orders already passed by the Commission from time to time.

yy In case there is no member from law as a Member of the Commission, the next vacancy arising in every State Commission shall be filled in by a Member of Law.

GERC Issues Tariff Order and Additional Surcharge for FY19

GERC has issues Tariff Order for FY19. The key highlights are as below:

Annual Revenue Requirement: Total ARR approved is ` 43,184.46 Cr, an increase of 7% (` 2,638.80 Cr.) compared to FY18.

Gross Power Purchase: Total power purchase approved for FY19 is 91.9 BU, an increase of 5% compared to FY18.

Total Energy Sales: Total energy sales approved for FY19 is 73.50 BU, which implies growth of 5% compared to FY18.

RPO:

Average Power Purchase Cost: The average power purchase cost approved is ` 4.22 per kWh an increase of 5 paisa per unit with reference to FY18.

Average Cost of Supply (ACoS): The ACoS is at ` 5.87 per kWh which implies an increase of 6 paisa per unit with reference to FY18.

Tariff HT: No change in tariff for HT consumer, which is as below:

Solar % 4.25%

Non-Solar % 8.45%

Total Solar MU 3,828

Total Non-Solar MU 7,610

Solar Energy Purchase MU 2,579

Non-Solar Energy Purchase MU 7,178

Balance Solar to be procured MU 1,249

Balance Non-Solar to be procured MU 432

Fixed charge `/kVA/Month 475

Energy Charge

500 kVA to 2,500 kVA `/kWh 4.20

Above 2,500 kVA `/kWh 4.30

TOD (0700 Hrs. to 1100 Hrs. and 1800 Hrs. to 2200 Hrs.)

500 kVA to 2,500 kVA `/kWh 5.05

Above 2,500 kVA `/kWh 5.15

TOD (2200 hrs to 0600 hrs)

500 kVA to 2,500 kVA `/kWh 3.80

Above 2,500 kVA `/kWh 3.90

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Open Access Charges & Losses: Overall open access charges for collective transactions will increase by ` 27 paisa per unit.

The Tariff Order will be effective from 01.04.2018.

More information: www.gercin.org

hPERC Proposes Draft Amendment to Open Access Regulations

HPERC has proposed draft regulation for STOA proposing following additional conditions:

yy The consumers shall be eligible to seek STOA only for a uniform quantum of power for a continuous period of 8 hours or more in a day.

yy The consumers shall not be eligible to seek STOA for broken period or for varying quantum of power, in a day.

yy In case of violation of above conditions, consumers shall be liable to pay the AS (additional surcharge) at a rate higher than that applicable in normal cases.

Above conditions are not applicable in case of DISCOM has notified that it is not in a position to meet the requirements of the concerned consumers.

More information: www.hperc.org.in

Meghalaya Tariff Order for FY19

MSERC issued Tariff Order for FY19, summary of Order and open access charges for HT and EHT category are as hereunder:

More information: www.mserc.gov.in

  Unit FY 17-18 FY 18-19 Increase/Decrease (-ve)

Wheeling Charges `/kWh 0.14 0.15 0.01

Wheeling Losses 10% 10% 0%

Transmission Charge

Bilateral `/kWh 0.13 0.18 0.05

Collective `/kWh 0.3325 0.369 0.037

Cross Subsidy Surcharge `/kWh 1.44 1.47 0.03

Additional Surcharge `/kWh 0.49 0.69 0.20

  HT (33 kV) EHT (132 kV)

  Existing New Change Existing New Change

Tariff-Energy Charges (`/kWh) 6.50 6.60 0.10 6.00 6.20 0.20

Tariff- Fixed Charges (`/kW/Month) 200 200 0.00 20 200 0.00

Wheeling Charges (`/kWh) 1.45 0.78 -0.67 0.00 0.00 0.00

CSS (`/kWh) 1.44 1.30 -0.14 1.34 1.20 -0.14

Transmission Charges (`/kWh) 0.63 0.21 -0.42 0.63 0.21 -0.42

www.iexindia.com | 05

PSERC Determines Additional Surcharge for h2, FY18

PSERC has issued order determining A.S. ` 0.83 per Unit for the period from 01.1.2018 to 31.03.2018. Since the order came late, PSPCL has to refund excess charges collected (1.08-0.83 = ` 0.25 per kWh) during 01.01.2018 to 31.03.2018. A.S. ` 0.83 per Unit will be applicable beyond 31.03.2018 till determination of AS for first half of FY19 subject to balance payable/refundable by/to open access consumers wef 01.04.2018.

PSERC Issues Tariff Order for FY19

On 19.04.2018 PSERC issued tariff order of PSPCL for FY 2018-19. The highlights of the Orders are as follows:

Annual Revenue Requirement: Total ARR of PSPCL approved is ` 30,988.95 Cr., an increase of 7% (` 1,965 Cr.) compared to FY18.

Gross Power Purchase: Total power purchase approved is 52.6 BU, a reduction of 1% compared to previous year.

Total Energy Sales: Total energy sales approved for FY18-19 is 49.56 BU, which implies growth of 5% compared to FY18.

Average power purchase cost: The average power purchase cost implying is ` 4.14 per kWh, an increase of 21 paisa per unit with reference to FY18.

Average Cost of Supply (ACoS): The ACoS is ` 6.55 per kWh, an increase of 13 paisa per Unit with reference to FY18.

RPO: The commission has approved ` 48.00 Cr. for purchase of RECs for FY18 and ` 89.82 Cr. for purchase of RECs for FY19.

Increase in the Tariff by 2% Over the Existing Tariff: However, the tariff of industrial category has been capped with variable charges at ` 5 per kWh as government of Punjab has been providing subsidy to industrial category.

Tariff

FY 17-18 FY 18-19

Solar % 1.80% 2.20%

Non-Solar % 4.20% 4.30%

Total Solar MU 714.18 927.27

Total Non-Solar MU 4,079 2,395.86

Solar Energy Purchase MU 1,401.15 1,530.98

Non-Solar Energy Purchase MU 1,265.9 1,756.34

Balance Solar to be procured MU 0 0.00

Balance Non-Solar to be procured MU 2,813 639.52

  FY 17-18 FY 18-19

Tariff Energy Rate (Paisa/kVAh)

Fix Charges (`/kVA)

Energy Rate (Paisa/kVAh)

Fix Charges (`/kVA)

Industrial Consumers - Large Supply

General Industry

Above 1,000 kVA & upto 2,500 kVA 5.74 195 5.85 205

Above 2,500 kVA 5.78 230 5.90 240

PIU/Arc Furnace 5.98 295 6.11 280

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yy TOD Tariff, Rebate of ` 1.25 per kVAh to large supply industrial category consumers and medium supply industrial category consumers from 10.00 PM to 6.00 AM (next day).

yy Any consumption exceeding the threshold limit of maximum annual consumption in any of the last two financial years shall be billed at reduced energy charges of ` 4.28 per kVAh.

yy Introduction of special (night) tariff for LS/MS industrial consumers who opt to use electricity exclusively during night hours of 10.00 PM to 06.00 AM next day at 50% of fixed charges and reduced energy charge of ` 4.28 per kVAh.

yy The commission has determined the ‘Pooled Cost of Purchase’ (APPC) as ` 3.96 per kWh.

Open Access Charges:

The revised tariffs applicable from April 01, 2018.

More information: www.pserc.nic.in

Open Access Charges Unit FY 17-18 FY 18-19 Increase/Decrease (-ve)

Wheeling Charges `/kWh 1.42 1.32 -0.10

Wheeling Losses

66/33 kV % 1.81% 1.78% -0.03%

11 kV % 4.82% 4.76% 0

Transmission Charge `/kWh 0.22 0.22 0

Transmission Losses % 2.50% 2.50% 0

Cross Subsidy Surcharge

General Industries `/kWh 0.67 0.49 -0.18

PIU/Arc Furnace `/kWh 0.69 0.69 0

Additional Surcharge `/kWh 0.83 0.83 0

www.iexindia.com | 07

MARKET NEWS Power Market Update: April’18

The all India peak demand touched 1,61,315 MW in April 2018 about ~1.7% more than highest peak demand of 1,58,628 MW in April 2017 according to the NLDC statistics. The Electricity market at IEX - Day-Ahead (DAM) and Term-Ahead (TAM) combined traded 4,179 MU in April 2018 vis-à-vis 3,814 MU traded in April’18 – an increase of 2.53% and 3,717 MU traded in April’17 – an increase of ~9%.

Day-Ahead Market (DAM)

In April 2018 the DAM at IEX almost followed the trend set in March 2018. The DAM saw trade of 4,055 MU an increase of about 2.53% from 3,955 MU traded in March ’18 and ~9% increase over 3,717 MU traded in April’17.

On a daily average basis about 135 MU were traded while the average daily sell and buy bids were 184 MU and 170 MU respectively.

The average Market Clearing Price (MCP) at ` 3.98 per unit saw a decline of 1% over 4.02 per unit price in March’18 and ~44 % above ` 2.77 per unit in same month last year. The spot market prices though firm remained less than ` 4 per unit. The key reasons for high prices were: increase in demand associated with seasonal variation and inadequate availability of coal with the thermal generators.

One Nation, One Price was realized for 22 days while it was 27 days in the previous month. The day-ahead market primarily experienced minor transmission congestion of ~2% time blocks during the month in southern import.

In April’18, Seven (7) solar generators with size varying from 3-100 MW sold 6.14 MUs in the day-ahead market on the Exchange.

The maximum daily average MCP touched Rs. 5.07 per unit on 5 April’18 about 69% higher over maximum average MCP of Rs 3 per unit on 15 April’17. The maximum daily

volume touched 157 MU on 24 April’18. On daily average basis 728 participants traded in the DAM.

Term-Ahead Market (TAM)

The Term-Ahead Market traded ~124 MU in April’18, mainly in the Intra-day and Day Ahead Contingency Market segments. The TAM traded 138 MU in March’18 and 57 MU in April’17.

Renewable Energy Certificate (REC) Market

The Renewable Energy Certificate Market in the trading session held on 25th April, 2018 saw the trade of 7,81,130 RECs comprising of 6,44,151 Solar and 1,36,979 Non-Solar RECs at a floor price of ` 1,000 and ` 1,001 per REC respectively.

The Non-Solar segment continued to see the reversal in buy-sell bids – the sell bids at 1.88 lacs were short by almost 2.29 lacs RECs with the buy bids at 4.17 lacs.

The Exchange commenced trading in solar RECs after a gap of almost one year in the first REC trading session in fiscal 2018-19 apropos an advisory received from CERC subsequent to APTEL Order in this regard.

MCP

MCP for April'17 & April'18

0.00

1.00

2.00

3.00

5.00

6.00

4.00

2017 2018

01-0

4-20

18

02-0

4-20

18

03-0

4-20

18

04-0

4-20

18

05-0

4-20

18

07-0

4-20

18

08-0

4-20

18

09-0

4-20

18

10-0

4-20

18

11-0

4-20

18

12-0

4-20

18

13-0

4-20

18

14-0

4-20

18

15-0

4-20

18

16-0

4-20

18

17-0

4-20

18

18-0

4-20

18

20-0

4-20

18

21-0

4-20

18

22-0

4-20

18

23-0

4-20

18

24-0

4-20

18

25-0

4-20

18

26-0

4-20

18

27-0

4-20

18

28-0

4-20

18

29-0

4-20

18

30-0

4-20

18

06-0

4-20

18

19-0

4-20

18

S3Import

% of time congestion

E�S W�S W�NS1�S2 E�N N3Import

W3Export

0.016% 0.016%

0.007%

0% 0% 0% 0% 0%0%

0.002%

0.004%

0.006%

0.008%

0.01%

0.012%

0.014%

0.016%

0.018%

08 | www.iexindia.com

Total Number of Registered Participants 3,576

Obligated Entity 2,751

DISCOMs 33

Open Access Consumers 2,564

Captive Consumer 154

Voluntary 21

Eligible Entity (Private Generators) 804

Highest Participation in a Session (March’15) 1,315

REC Trading Session Held on 25th April: Key Highlights

Non-Solar RECs Solar RECs

Trade Volume (in RECs) 1,36,979 6,44,151

Buy Bid (in RECs) 4,17,686 6,44,151

Sell Bid (in RECs) 1,88,672 27,05,722

Price (in `) 1,001 per REC 1,000 per REC

No. of Participants 884

REC MARKET UPDATE: APRIl’18

50,770 (37%)

59,932 (44%)

26,277(19%)

Captive UserDistribution LicenseeOpen Access Consumer

Non-Solar

210,874 (33%)

192,578 (30%)

240,699 (37%)

Captive UserDistribution LicenseeOpen Access Consumer

Solar Buyer Mix

IEX is delighted to commence trading in solar RECs after a gap of almost one year in the first REC trading session in fiscal 2018-19 apropos an advisory received from CERC subsequent to APTEL Order in this regard.

In the trading session held on 25th April 2018, IEX saw trade of 7,81,130 RECs comprising of 6,44,151 Solar and 1,36,979 Non-Solar RECs.

• TheNon-Solarsegmentsawreversalinbuy-sellbids-sell bids at 1.88 lacs were short by almost 2.29 lacs RECs with the buy bids at 4.17 lacs and the volume cleared was 1.37 lacs at price of ` 1,001 per REC.

• TheSolar segment sawsellbidsat27.05 lacsandbuy bids at 6.44 lacs. All buy bids were cleared at floor price of ` 1,000 per REC.

The major buyers were open access consumers and captive power producers followed by the distribution

companies and utilities such as Tata Power, BEST, Torrent Power which came forward to fulfill their RPO compliance.

REC Trading Session on 25 April 2018

The 25 April trading session saw 72% increase over April’17 when 4.53 lacs RECs were traded comprising 88,533 Solar and 3,64,820 Non-Solar RECs.

A total of 884 participants traded in the 25 April, 2018 trading session. Overall, a total of 3,592 participants are registered in the REC segment at IEX. Of this, 805 are Eligible Entities (RE Generators) 2,766 are Obligated Entities (DISCOMs, Open Access Consumers & Captive Generators) and 21 are registered as Voluntary Entities.

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POWER SECTOR AT A GlANCE (Data sourced from the CEA website: www.cea.nic.in)

Installed Capacity and Generation

All India total installed capacity as on March 2018 stood at 344,002 MW of which Thermal constituted 65% (2,22,907 MW), Hydro is 13% (45,293 MW), Nuclear is 2% (6,780 MW) and Renewable is 20% (69,022 MW).

In line with GoI’s initiative to reach 175 GW of renewable capacity in India by 2022, significant capacity has been added in renewables. Installed RE capacity grew by 20% from 57,244 MW to 69,022 MW since FY18.

Similar growth is observed in terms of electricity generated from renewable sources. The overall electricity generation increased from 1,236,072 MUs in FY17 to 1,303,367 MUs in Apr-March’18, an increase 5% while renewable generation grew by 25% during the same period.

Transmission lines (Target & Achievement) 2017-18

Transmission line programmed for the FY17-18 was 23,086 cKms, which has been overachieved. Private and State sectors have over-achieved their targets, while PGCIL and DVC have under-achieved.

Targets for 400 kV lines were over achieved by 21% during this FY17-18, the 765 kV lines and 220 kV lines remained under-achieved.

Power Supply Position

Regional Power Supply Position

The Energy requirement from FY17 to FY18 grew from 1,143 BU to 1,213 BU an increase of 6%. The southern region showed the lowest increase of 5%, while for the rest of the regions it was 7% increase in energy requirement. This growth in energy requirement has mainly been due to government’s initiatives of rural electrification and assuring supply through policy initiatives like ‘Saubhagya’, and focus on industrial development and revival through ‘Make in India’.

Installed Capacity

218,

330

44,4

78

6,78

0

57,2

44

222,

907

45,2

93

6,78

0

69,0

22

Installed Capacity (MW) April'17 -March'18

Installed Capacity (MW) April'16 -March'17

0

50,000

100,000

150,000

200,000

250,000

Thermal Hydro Nuclear Renewable

Electricity Generation

994,

230

122,

378

37,9

16

81,5

48

1,03

7,05

9

126,

123

38,3

46

101,

839

Thermal Hydro Nuclear Renewable

4%

25%1%3%

Electricity Generation (MU) April'16 -March'17

Electricity Generation (MU) April'17 -March'18

200,000

0

400,000

600,000

800,000

1,000,000

1,200,000

765 kV 400 kV 220 kV

Figu

res

in c

Kms

Programme and Achievement

4,92

7

11,4

24

6,73

5

3,81

9

13,8

13

5,48

7

Achievement (FY'17-18)Programme (FY'17-18)

10 | www.iexindia.com

States FY16-17 FY17-18 Growth (%)Telangana 53,030 60,319 14%

Uttar Pradesh 107,569 120,052 12%

Andhra Pradesh 54,300 58,384 8%

Maharashtra 139,295 149,761 8%

Madhya Pradesh 65,759 69,925 6%

Total India 1,142,928 1,213,326 6%

State March'17 March'18 Growth (%)Telangana 5,453 6,684 23%

Andhra Pradesh 5,058 5,629 11%

West Bengal 4,223 4,622 9%

Maharashtra 12,774 13,836 8%

Karnataka 6,580 7,061 7%

All India 98,759 106,420 8%

Power Supply Position37

1,93

4

368,

405

320,

248

136,

522

16,2

16

349,

172

345,

247

305,

588

127,

783

15,1

40

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Northern Region Western Region Southern Region Eastern Region North Eastern Region

7% 7%

5%

7%

7%Figu

re in

MU

Energy Requirement April'16-March' 17 Energy Requirement April'17-March '18

Growth in Peak Demand of Key States (MW)

The peak demand in the country has increased from 159,542 MW from Apr-March’17 to 164,066 MW for Apr to March’18.

During the period, UP has witnessed significant growth in its peak demand and energy requirement, while the demand grew by 18%, touching over 20,274 MW, the energy requirement increased by 12% in FY18 vis-à-vis FY17. This is mostly due to the 24 hour power supply promise by the state government. Telangana also witnessed 12% increase in peak demand and 14% in energy requirement Y-o-Y. Other States with remarkable growth in their peak demand includes Gujarat, Rajasthan and Madhya Pradesh which grew by 13%, 10% and 7% respectively.

While all India energy requirement jumped by 8% in March’18 vis-à-vis March’17, Telangana, Andhra Pradesh, West Bengal, Maharashtra and Karnataka spotted a growth of 23%, 11%, 9%, 8%, 7% in their energy requirement for the same period.

Growth in Peak Demand of Key States for the Fiscal (MW)

Growth in Energy Requirement of Key States for the Fiscal (MU)

Growth in Energy Requirement of Key States for March (MU)

State FY16-17 FY17-18 Growth (%) Uttar Pradesh 17,183 20,274 18%

Gujarat 14,724 16,590 13%

Telangana 9,187 10,298 12%

Rajasthan 10,613 11,722 10%

Madhya Pradesh 11,512 12,338 7%

All India 159,542 164,066 3%

www.iexindia.com | 11

MARKET INSIGhTS

Day-Ahead Market (DAM)

The Day-Ahead-Market (DAM) offers standardized contracts of 15 mins allowing participants to trade in electricity a day in advance. In fiscal year 2017-18, the DAM traded 44.8 BUs at an average price at ` 3.19 per KWh registering volume growth of 13% over the previous fiscal. So far only the conventional power generators were leveraging exchange markets, but now, selling renewable power in the day-ahead market on the exchange is a viable proposition. Already, several renewable generators have been selling on exchange platform at attractive prices compared to competitively bid tariff.

Greening the Power Market

The exchange has been working enthusiastically towards Integrating renewables generators- solar, Wind and biomass generators on its platform. From October’17 to March’17, 14 solar generators constituting 525 MW of capacity sold 59 MU of solar electricity in the day-ahead market. The renewable energy generators presently selling on the Exchange are primarily doing so prior to declaring full commercial operations/commissioning. Upon commissioning the generator then exits the Exchange and sells power under their contractual commitments.

Addition in Solar Capacity Registered in DAM (October-March’18)

The renewable generators are able to bid and schedule power through the Exchange platform with very precise forecasting and minor deviation with their net commercial realization being considerably higher vis-à-vis prices discovered in the recent solar and wind auction. Below is an indicative profile of average scheduled and actual generation of a 51 MW solar generator based in Madhya Pradesh indicating the precision with which solar generator can schedule power and minimize the deviation on real time basis and increase their net realisation.

51

180

291

0

50

100

150

200

250

300

350

400

450

Solar Capacity Addition at IEX from October – March’18

500

550

Oct-17 Feb-18Dec -17

3

Mar-18

525

RENEWABlE ENERGY AT EXChANGE PlATFORM

Key StatiSticSDay-Ahead Market [FY2017-18]

Registered Participants

y� 6,200+ participants

y� Discoms from 29 States and 5 UTs

y� 4,000+ Open Access Participants

y� 440+ Electricity Private Generators

y� 14 Solar Projects constituting 525 MW of capacity

Market highlights

y� 1,22,854 MWh: Average Daily Volume

y� 1,82,992 MWh : Highest Volume on delivery day – 14th Sep’17

y� 887 Average number of participants in single day

y� Market Share : 97% in electricity market

y� >230 BU cumulative cleared volume in electricity market since inception in year 2008

12 | www.iexindia.com

Strengths

y� First and largest power exchange in India

y� 24x7 trading

y� Allows Flexibility

y� Efficient and Competitive Price discovery

y� Diverse participation base

y� State-of-the art & highly scalable technology infrastructure

Product Portfolioy� Electricity Markety� Day-Ahead Markety� Intra-day and Day-ahead Contingencyy� Term-Ahead Markety� Renewable Energy Certificatesy� Solar Certificatesy� Non-Solar Certificatesy� Energy Saving Certificates

Schedule (MWHr) Actual (MWHr)

Schedule vs Actual Generation for the month of March’18 of a typical 51 MW Solar Power Plant in Madhya Pradesh

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 950

2

4

6

8

10

12

14

16

18

20

0

-2

7

5

3

1

-1

- POC Charges: 7.6 p/kWh - POC Losses ISTS (1.02%): 4 p/kWh- IEX Transaction Fee: 2 p/kWh - Member fee: 1p/kWh - RLDC/SLDC Charges: 1 p/kWh - Forecasting Error 10%: 40 p/kWhRealization @ IEX: Rs. 3.40/kWh

Wt. Avg MCP for Solar: 3.96

2.54

2.77

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

5

4

3

2

1

0

2.92

2.59 2.49

3.13

4.09

Pric

es(R

s/un

it)

MCP MCP_Solar_Profile

4.08

3.55

3.003.20

4.02

2.83

2.36 2.23

3.81 3.41

3.77

3.593.96

3.88

3.84

2.71

Comparison of Market Clearing Price (MCP) as discovered in the Day-Ahead Market vis-a-vis the price that a typical 50 MW solar power generator would realize selling in the day-ahead market at the Exchange Platform

www.iexindia.com | 13

TRADE DATA: APRIl’18 – DAY AhEAD MARKET

MONThlY PRICE

Minimum MCP Maximum MCP Average MCP

` 3.98/kWh` 7.50/kWh` 2.49/kWh

VOlUME 1 MU = 1 Million kWh = 1 GWh

Average Daily

Volume

128 MUs

Unconstrained Volume

4,058

5,636

Cleared Volume

4,055

5,632

PurchaseBids

5,101

7,086

Sell Bids

5,506

7,647

VOLUME

Average Daily (MW)

TotalVolume (MUs)

PARTICIPATION

Total Registered Participants

Open Access Consumers

Private Generators

Highest Participation

6,200+ 4,000+ 440+1,410

22nd June'13

Corrigendum

Market Insights Section (page number 14) - The April'18 Bulletin inadvertently carried an incorrect participants data under 'Participation Trend Section'. The correct data is as follows:

Participation Trend

Total registered participants increased to 6,238 in fiscal 2017-18 from 5,807 in the previous fiscal, an increase of about 7.5% on year on year basis. Open Access registered consumer base increased to 3,990 in this fiscal, up by 4.5% from 3,816 in last fiscal. On a daily average basis, 1,161 participants traded in the DAM, as compared to 1,035 participants in last fiscal. The highest participation ever was observed on 9th August, 2016 when 1,380 participants traded in DAM.

14 | www.iexindia.com

Average Hourly Market Clearing Volume and Price

Volu

me

(MW

h)

HoursHourly MCV (MWh) Hourly MCP (`/kWh)

Pric

e (`

/kW

h)

0.001 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

0.00

1.00

2.00

3.00

4.00

5.00

6.00

1000.00

2000.00

3000.00

4000.00

5000.00

6000.00

7000.00

Pric

e `/

kWh

Volu

me

MW

h

Price and Volume Trend

Cleared Volume (MWh) MCP N1 S1 S3

0

20,000

40,000

60,000

80,000

1,00,000

1,60,000

1,80,000

0.00

1.00

2.00

3.00

4.00

5.00

6.00

1,40,000

1,20,000

W3

01-0

4-20

18

02-0

4-20

18

03-0

4-20

18

04-0

4-20

18

05-0

4-20

18

07-0

4-20

18

08-0

4-20

18

09-0

4-20

18

10-0

4-20

18

11-0

4-20

18

12-0

4-20

18

13-0

4-20

18

14-0

4-20

18

15-0

4-20

18

16-0

4-20

18

17-0

4-20

18

18-0

4-20

18

20-0

4-20

18

21-0

4-20

18

22-0

4-20

18

23-0

4-20

18

24-0

4-20

18

25-0

4-20

18

26-0

4-20

18

27-0

4-20

18

28-0

4-20

18

29-0

4-20

18

30-0

4-20

18

31-0

4-20

18

06-0

4-20

18

19-0

4-20

18

2.71 2.71 2.772.71

3.97

2.71

3.97

2.71

3.97

2.71

3.97

3.15

3.99

3.15

3.99

3.16

3.99 3.97 3.97 3.98

Price for the Month

Pric

e (`

/kW

h)

0.00

0.50

1.00

1.50

2.00

2.50

3.00

4.50

3.50

4.00

East North Punjab South (AP & KN) S2 (TN) S3 (KR) West Chhattisgarh MCP

April, 2017 April, 2018

North-East

www.iexindia.com | 15

RP: Registered Projects

State-wise RE capacity (MW)

Tamil Nadu

Karnataka

Chhattisgarh

Maharashtra

Rajasthan

Punjab

Uttar Pradesh

Andhra Pradesh

Himachal Pradesh

Gujarat

Madhya Pradesh

Others

Source-wise RE capacity (MW)

Wind

Bio-fuel cogeneration

Biomass

Small Hydro

Solar

Others

2442

507

527

252

7412

RP: 4,471 MW

Registered Projects

RP: 4,471 MW

1163

1006

347

373

127

647

168

263

25 26118 208

Registered Projects

TERM AhEAD MARKET - APRIl’18

Total Volume (MWh)

Max Price (`/kWh)

Min Price (`/kWh)Contracts

12,220 6.59 3.10Day-Ahead Contingency

43,512 4.42 4.00Weekly

40,367 8.00 3.30Intraday

37,902 4.42 4.00Daily

RECPurchase

Bids Sell Bids Cleared (REC) Price (`/REC)

Participants

1,88,672

27,05,722

1,001

1,000

4,17,686

6,44,151

884

Non-Solar

Solar

1,36,979

6,44,151

REC MARKET - APRIl’18

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Indian Energy Exchange LimitedUnit No. 3,4,5 and 6, Fourth Floor, TDI Center, Plot No. 7, District Center, Jasola, New Delhi-110025 | CIN: L74999DL2007PLC277039

Phone: +91-11-43004000 | Fax: +91-11-43004015 | Email: iex-bd@iexindia.com | www.iexindia.com

/IndianEnergyExchangeLtdIEX @IEXLtd|

PhOTO GAllERY: IEX-CSR ACTIVITIES

Children from primary Government school in Mathura, UP enjoying the Mid-Day Meals being provided in collaboration with Akshaya Patra Foundation.

Students at Isha Vidya Rural School in Tamil Nadu where IEX supported installation of solar PV systems to enable the school, deploy green energy and use the money saved to provide scholarships to needy children.

Youth From NCR Delhi at STeP skill center by Smile Foundation for Employability at Samaypur Badli, New Delhi.

Each One Teach One (EOTO) and IEX are working together to support holistic personality development of 35 children in 10th grade at Shishu Vihar Madhayamik Shala, Dadar Mumbai.