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OPEN ACCESS
May & June 2016
Volume - 62
Forecasting Company of the Year & REC Trader of the Year 2015
From Management‘s Desk
The main article reviews the final regulation of Karnataka on Forecasting
and Scheduling (F&S) of Wind & Solar generators l. The primary objective
of this regulation is to facilitate large-scale grid integration of solar and
wind generating stations, and to maintain grid stability and security. Over
the last year, new regulations have been formulated by CERC and many
states. After Karnataka many states are expected to follow with their own
F&S regulations.
Other notable regulatory updates during May and June include RPO com-
pliance order in Uttarakhand, final regulation in dealing with ESCerts by
CERC, determination of additional surcharge for Open Access in Rajasthan
and its subsequent stay by the High Court, Open Access charges in Orissa.
All these are discussed in detail in this volume of the newsletter.
May 2016 saw reduced traded volumes compared to April 2016 and
from May 2015. Generally early months of the compliance year see signifi-
cantly reduced trading volumes. However, May 2015 saw high trading vol-
ume due to the Supreme Court order on RPO compliance. Trading vol-
umes bounced back in June 2016 (up 2.5X from May 2016) due to compli-
ance deadline in Rajasthan for previous FY.
We hope you will find this volume an insightful read, and as always, look
forward to your feedback.
-Team Reconnect
- Team REConnect
CO
NT
EN
T
Analysis of Karnataka's
Forecasting & Scheduling
Final regulation
Regulatory Updates
REC Trade Results
REC Project Stats
Green News
RPO Table
About REConnect
Analysis of Karnataka’s Forecasting & Scheduling final regulation
Analysis of KERC F
& S final regulation RPO Map Green News REC Project Stats REC Trade Report Regulatory Updates
www.reconnectenergy.com Page 1
38%
REC Market
Share
PAN
India
Presence
7.5 GW
Projects under
management
Managing REC
Projects in
16
States
In the follow-up after Draft Regulation on Forecast-
ing & Scheduling for the Wind & Solar projects at
Intra State level in Karnataka and based on the
mechanism suggested in the Model Regulation,
KERC has finally released the notification for DSM
regulation on Forecasting and Scheduling for wind
and solar in Karnataka.
In doing so, it has become the first state in India to
adopt the new regulations as proposed by the Fo-
rum of Regulators (see our NL Vol. 56). Highlights of
the draft regulation are below:
Executive Summary:
Forecasting and scheduling will be mandatory for
all wind generators having a combined installed ca-
pacity of 10 MW and 5 MW for wind and solar re-
spectively at the pooling station.
Deviations will be calculated on the basis of Avail-
able Capacity (AvC).
The deviation slab has been kept as (+/-) 15% for
all the wind & solar generators beyond which pen-
alty is applicable at fixed rate as defined below.
Settlement will be done through the “Qualified Coor-
dinating Agency” or QCA, or Aggregator”.
SCADA & Telemetry data is to be mandatorily pro-
vided to SLDC. Protocols for the same shall be deter-
mined later by SLDC through the detailed procedures.
Provision of six months for existing wind and solar
generators to comply with the regulation from the date
of publication of these regulations in the official ga-
zette.
All the new wind and solar generators which shall be
commissioned after six months from the effective date
of the regulation shall comply these norms before com-
missioning of the project and connecting with the state
grid.
16 revisions allowed during the intraday with each re-
vision effective from 4th time block. Payment for gen-
eration shall be as per the actual generation.
REC Trader
& Forecasting
Company of
the Year 2015
F & S will be required by all wind & so-
lar project.
Deviations will be calculated on the ba-
sis of scheduled generation.
Penalty is a fixed amount beyond the
error range (10% in case of new projects,
15% in case of old projects)
Settlement will be done through the
“Qualified Coordinating Agency” or QCA
Analysis of KERC Forecasting & Scheduling final regulation
Analysis of KERC F
& S final regulation RPO Map Green News REC Project Stats REC Trade Report Regulatory Updates
www.reconnectenergy.com Page 2
38%
REC Market
Share
PAN
India
Presence
7.5 GW
Projects under
management
Managing REC
Projects in
16
States
Analysis
The Karnataka regulations will have significant im-
pacts as these are expected to kick-start a series of
similar regulations in other states. Many other states
like MP, Tamil Nadu, Rajasthan and others have al-
ready proposed draft F&S regulations. KERC has
made two significant changes from the earlier draft
regulations (see analysis of draft regulations here.
Deviation is to be measures on the basis of avail-
able capacity - the draft regulations has proposed
calculations of deviation on the basis of scheduled
power. This change brings the final Karnataka regu-
lations in line with the model regulations proposed
by FoR. This change will also provide relief to gen-
erators as the original proposal (of deviation calcu-
lation on the basis of schedule generation) would
have proved very punitive in terms of penalty.
The regulations have allowed combination on
schedules of multiple polling substations by the ag-
gregator/ Qualified Coordinating Agency (QCA).
This will enable SLDC to work with fewer schedules,
and by combining the available capacity allow gen-
erators to reduce penalty.
Detailed Mechanism defined for Deviation Settle-
ment
Whereas the Inter-State Regulation and the Model
Regulation calculate error with respect to Available Ca-
pacity, the final regulation has goes back to the old RRF
regulation of 2013 to calculate error w.r.t Scheduled
Generation. The penalty mechanism based on % devia-
tion for all obligated generators
With the final regulations in place, one expects that the
significant capacity that exists in Karnataka will now
start the F&S process. The settlement process is also
expected to start.
The final regulation can be accessed here.
REC Trader
& Forecasting
Company of
the Year 2015
Error (%) = 100 X (Scheduled Generation – Actual
Generation)
Available Capacity*
Regulatory Updates
Analysis of KERC F
& S final regulation RPO Map Green News REC Project Stats REC Trade Report Regulatory Updates
www.reconnectenergy.com Page 3
38%
REC Market
Share
PAN
India
Presence
7.5 GW
Projects under
management
Managing REC
Projects in
16
States
UERC Order on Non Compliance of RPO
UERC maintains its tough stand for non compliance
of RPO. In a recent order the Uttarakhand Electricity
Regulatory Commission has directed UPCL (the
state Discoms) to procure non-solar RECs equivalent
to 7.50% of unmet non-solar RPO up to FY 2015-16
latest by 31st July 2016. This will have a significant
impact on the REC market next month. The balance
un-met RPO has to be completed by March 2017.
UPCL had submitted the following unmet RPO data
to the commission:
The Commission has directed UPCL to meet the
overall RPO for 2016-17 which is 8% for non solar
and 1.5% for solar, either through purchase of en-
ergy from RE sources or through purchase of RECs
equivalent by March, 2017.
The Commission has denied UPCL to continue carry-
ing forward of all the unmet non-solar RPO since it
has failed to tap the available power due to its own
dilapidated distribution system for evacuation of
power.
Also as mentioned in the order, Non-compliance of
RPO will attract action against the officers responsible
for compliances of regulations.
Earlier, in year 2014, UERC had considered UPCL’s non-
compliance as willful contravention of the direction of
the Commission and had imposed penalty of Rs.
20,000/- on the Managing Director of UPCL. Overall,
this is a positive order on RPO compliance. Hopefully
other SERCs will take this as a precedent and enforce
RPO regulations in their states also.
The order can be accessed here.
CERC (Terms and Conditions for Dealing in Energy
Savings Certificates) Regulations, 2016
CERC recently came up with its final regulation on
Terms and Conditions for dealing in Energy Saving Cer-
tificates. This regulation will govern and define the
framework for ESCerts trading on power exchanges. A
brief analysis is given below:
Dealing ESCerts:
The ESCerts issued will be placed for dealing in any
of the Power Exchanges by the ESCerts holder as per
RERC determines Additional Surcharge for 2016-17
In the recent decision the Rajasthan High Court passed
an order against RERC for the levy of Rs.1/kWh as Ad-
ditional Surcharge on all Open Access Consumers.
On 12.05.2016 Rajasthan Electricity Regulatory commis-
sion passed an order for the levy of additional sur-
charge for all the Open Access consumers. This had
negative Implication on any consumer willing to buy
power from a third party in the state. The surcharge
made all the Open Access transactions in the state
highly unviable. Even the Green Power Transactions
were not exempted from the surcharge. In its verdict
the High Court has “set aside” the verdict passed on
12.05.2016 and has provided directions to RERC to
REC Trader
& Forecasting
Company of
the Year 2015
Year Unmet RPO So-
lar (MU)
Unmet RPO
Non Solar (MU)
2015-16 8.15 699.60
Regulatory Updates
Analysis of KERC F
& S final regulation RPO Map Green News REC Project Stats REC Trade Report Regulatory Updates
www.reconnectenergy.com Page 4
38%
REC Market
Share
PAN
India
Presence
7.5 GW
Projects under
management
Managing REC
Projects in
16
States
the PAT rules and these regulations.
The frequency of transaction of ESCerts, through
Power Exchanges, shall be on monthly basis or in
such periodicity as per the procedure approved by
the Commission.
The Registry shall cross-check the cumulative sale
bids placed on Power Exchanges with availability of
ESCerts in respective Registry accounts and in case of
breach such eligible entities will be treated as de-
faulter.
Eligible entities with more than three cases of de-
fault in a cycle shall be barred from transaction of
ESCerts for next six months, notwithstanding any
penalty due to be imposed.
The denomination of one ESCert shall be equal to
energy consumed in terms of one metric Ton of Oil
Equivalent (mtoe).
The market price of ESCerts shall be as discovered
through the process of bidding at the respective
Power Exchange.
The final regulation can be accessed here.
follow and obtain the desired information in a rightful
and transparent manner.
The court has provided following direction to the
State Regulatory Commission:
The RERC should make a public advertisement to
notify the Objectors.
The requisite advertisement to be made in two
Vernacular and one English Newspaper
The advertisement will also notify the date of
hearing within one week of the last date for col-
lection of material as per advertisement.
RERC will hear the objectors and pass orders
within ten days. The objectors will not be entitled
to any adjournment
The parties agree that the additional surcharge, if any, determined by RERC would be payable effective
the date it was payable under the order dated 12.05.2016.
The current order has been occasioned only for reason of violation of principles of natural justice in pass-
ing the impugned order dated 12.05.2016 and is not reflective of the merits of the levy of additional sur-
charge or its quantum.
The detailed order can be accessed here.
Odisha Declares Open Access Charges for 2016-17
OERC has determined the Open Access charges
through a notification dated 11th April 2016. The new
charges determined are applicable for FY 16-17 with
effect from 11th April 2016. The details of the charges
are in the table below:
The normative transmission loss at EHT (3.70%) &
normative wheeling loss for HT level (8%) are levied.
No additional Cross-subsidy surcharge are payable
by the consumers availing Renewable power. 20%
wheeling charge is payable by the consumer drawing
power from Renewable source.
The order can be accessed here.
REC Trader
& Forecasting
Company of
the Year 2015
Name CSS Wheeling
Charge
Trans-
mission
Charges EHT HT
CESU 143.58 95.58 53.18 Rs.62.5/
MWh
NESCO 126.03 65.82 69.61 Rs.62.5/
MWh
WESCO 126.68 83.45 43.58 Rs.62.5/
MWh
SOUTHC
O
191.03 141.0
2
62.63 Rs.62.5/
MWh
Regulatory Updates
Analysis of KERC F
& S final regulation RPO Map Green News REC Project Stats REC Trade Report Regulatory Updates
www.reconnectenergy.com Page 5
38%
REC Market
Share
PAN
India
Presence
7.5 GW
Projects under
management
Managing REC
Projects in
16
States
RERC determines Additional Surcharge for 2016-
17
In the recent decision the Rajasthan High Court
passed an order against RERC for the levy of Rs.1/
kWh as Additional Surcharge on all Open Access
Consumers.
On 12.05.2016 Rajasthan Electricity Regulatory com-
mission passed an order for the levy of additional
surcharge for all the Open Access consumers. This
had negative Implication on any consumer willing to
buy power from a third party in the state.
The surcharge made all the Open Access transac-
tions in the state highly unviable. Even the Green
Power Transactions were not exempted from the
surcharge.
In its verdict the High Court has “set aside” the ver-
dict passed on 12.05.2016 and has provided direc-
tions to RERC to follow and obtain the desired infor-
mation in a rightful and transparent manner.
The court has provided following direction to the
State Regulatory Commission:
The RERC should make a public advertisement to
notify the Objectors. The requisite advertisement to be
made in two Vernacular and one English Newspaper.
The advertisement will also notify the date of hear-
ing within one week of the last date for collection of
material as per advertisement.
RERC will hear the objectors and pass orders within
ten days. The objectors will not be entitled to any ad-
journment.
The parties agree that the additional surcharge, if
any, determined by RERC would be payable effective
the date it was payable under the order dated
12.05.2016.
The current order has been occasioned only for rea-
son of violation of principles of natural justice in pass-
ing the impugned order dated 12.05.2016 and is not
reflective of the merits of the levy of additional sur-
charge or its quantum.
The order can be accessed here.
REC Trader
& Forecasting
Company of
the Year 2015
Other Regulatory updates of the month can be ac-
cessed here.
REC Trade Report - May & June 2016
Analysis of KERC F
& S final regulation RPO Map Green News REC Project Stats REC Trade Report
Regulatory
Updates
www.reconnectenergy.com Page 6
India’s largest REC Trading Company
Non Solar – In May Clearing ratio in exchange stood at 1.15% and 1.38% in IEX and PXIL respectively for
Non Solar REC’s. A total of 161,858 RECs were traded as compared to 290,457 RECs traded in April. While
in June a total of 417,426 RECs were traded as compared to 161,858 RECs traded in May 2016. Clearing
ratio in exchange stood at 4.01% and 1.50 % in IEX and PXIL respectively for Non Solar REC’s.
For past trading history - CLICK HERE
Clickpower.in: India’s first Green Energy Marketplace
For more details please visit our blog-post here.
1,38,29,226 1,32,81,006 1,31,77,050 1,35,46,470
8,18,392 2,32,881 3,92,095 4,51,138
1,114,319
2,90,457 1,61,858 4,17,4260
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
Mar-16 Apr-16 May-16 Jun-16
Available
Issued
Redeemed
Non Solar RECs
7.65%
2.66%
1.15%
4.01%
8.92%
1.38% 0.61%
1.50%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
Mar-16 Apr-16 May-16 Jun-16
IEX
PXIL
Non Solar Clearing %
REC Trade Report - May & June 2016
Analysis of KERC F
& S final regulation RPO Map Green News REC Project Stats REC Trade Report
Regulatory
Updates
www.reconnectenergy.com Page 7
India’s largest REC Trading Company
Solar – In May the Clearing ratio stood at 0.61% and 0.41% in IEX and PXIL respectively, with total clearing
volume falling marginally as compared to last month, while in June the clearing ratio stood good at 1.24%
and 2.28% in IEX and PXIL respectively, with total clearing volume being 2.5 times of the previous month.
For past trading history - CLICK HERE
Clickpower.in: India’s first Green Energy Marketplace
For more details please visit our blog-post here.
3,276,5733,310,962 3,413,707
3,519,829
1,87,049 1,34,2421,26,205
57,7571,52,06625,652 20,083 51,0150
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
Mar-16 Apr-16 May-16 Jun-16
Available
Issued
Redeemed
Solar RECs
5.07%
0.98% 0.61% 1.24%
3.35%
0.26% 0.41%
2.29%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
Mar-16 Apr-16 May-16 Jun-16
IEX
PXIL
Solar Clearing %
REC Trade Report –May & June 2016
Analysis of KERC F
& S final regulation RPO Map Green News REC Project Stats REC Trade Report
Regulatory
Updates
www.reconnectenergy.com Page 8
India’s largest REC Trading Company
Compared to last month, the month of May saw a reduction of demand by approxi-
mately 44.3% and 21.7%, for non-solar and solar respectively. The total transaction value stood
at 31.5 Crores as compared to 52.4 Crores last month. This month also saw significant rise in total REC is-
suance, which stood more than double of what it was last month. However, while solar issuance fell margin-
ally, there was a steep rise in issuance of non-solar RECs. This also resulted in increased quantum of Sell
bids at the exchanges.
In June trading saw a significant surge in the demand for both Solar and Non-Solar RECs. The demand rose
approximately 2.5 times for both non-solar and solar compared to May 2016. As a result, clearing ratios at
both the exchanges also improved. The total transaction value stood at roughly Rs 80 Crores as compared
to Rs 31.5 Crores last month (May 2016).The positive movement in demand can be attributed to the fact
that Rajasthan RPO regulations allow time till June to meet previous financial year’s RPO. Given below is
the Year to Date comparison of 1st quarters (April to June) for the last three financial years.
For past trading history - CLICK HERE
Clickpower.in: India’s first Green Energy Marketplace
For more details please visit our blog-post here.
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
1Q FY 14-15 1Q FY 15-16 1Q FY 16-17
NS REC TRADED
S REC TRADED66.87 %
Y -t- D Comparision
1931.3 %
2321.8 %
206.17%
REC Project Status - As on 30th June,2016
Analysis of KERC F
& S final regulation RPO Map Green News REC Project Stats REC Trade Report Regulatory Updates
www.reconnectenergy.com Page 9
Registered Capacity
4942.45 MW
India’s largest REC Trading Company
Projects Registered
Source wise
All figures
in MW
I
Biomass
700
Solar PV
588
Wind
2213 Bio-fuel
Cogeneration
920
Clickpower.in: India’s first Green Energy Marketplace
Small Hydro
291
Projects Registered State wise (MW)
2 26
123
3573
383
760
95 67
352
248
1,085
157
26
137
24
1,253
33 35 24 50
200
400
600
800
1000
1200
1400
Reg. Capacity (MW)
India’s RPO Table
Analysis of KERC F
& S final regulation RPO Map Green News REC Project Stats REC Trade Report Regulatory Updates
India’s largest REC Trading Company
www.reconnectenergy.com Page 110
Clickpower.in: India’s first Green Energy Marketplace
States
2016-17 RPO
Obligation
(Non Solar)
2016-17 RPO Obli-
gation ( Solar)
Andhra Pradesh 2.0 % 1.0 % Assam 6.75 % 0.25 % Arunachal Pradesh 6.80 % 0.20 % Bihar 3.25 % 1.25 %
Chhattisgarh 6.25 % 1.0 % Delhi 8.65 % 0.35%
Gujarat 8.25 % 1.75 % Haryana 2.75 % 1.00%
Himachal Pradesh 12.% 0.25 % J&K 6.50% 1.00 % Jharkhand 3.00 % 1.00 % Karnataka 11.00 % * 0.75 % * Kerala 4.5% 0.5% Madhya Pradesh 6.50% 1.25 % Maharashtra 10.00 % 1.00 % Meghalaya 1.58 % 0.42 % Odisha 3.00 % 1.50 % Punjab 4.10% 1.30% Rajasthan 8.90 % 2.50% Tamil Nadu 9.0 % 2.50% Tripura 6.00 % 6.00% Uttarakhand 8.00% 1.5 % Uttar Pradesh 5.00 % 1.00 % West Bengal 4.80 % 0.20 % Goa & UTs 2.80 % 1.15 % Manipur 4.75 % 0.25 % Mizoram 14.75 % 0.25 % Nagaland 7.75 % 0.25 %
BESCOM,MESCOM, CESC - 10 % + 0.25%, HESCOM, GESCOM, Hukkeri Society - 7 % + 0.25%.
Status of Regulation - Final for all states except -
Draft for Haryana and Telangana, Tripura & TN ( Draft Amendments of targets )
RPO on OA Users? - Yes for all states except West Bengal.
Karnataka (5.00% RPO) - Yes (> 5MW).
RPO on CPP? - Yes for all states except West Bengal.
Gujarat, Odisha, Haryana, Bihar, Jharkhand, Tripura, Karnataka (5.00% RPO) - Yes (> 5MW).
RPO Penalty? - Yes (RECmax) for all the states.
West Bengal - Not Specified.
About
Analysis of KERC F
& S final regulation RPO Map Green News REC Project Stats REC Trade Report Regulatory Updates
www.reconnectenergy.com Page 11
REConnect Energy is India’s leading renewable energy trading company. We provide end-to-end services
for projects in the Renewable Energy Certificate mechanism – from contract structuring, advisory to mone-
tization of RECs. We also work with power consumers to manage Renewable Purchase Obligation (RPO)
liabilities, and develop and execute their energy sourcing strategy. We are a knowledge focused company
that prides itself in providing premium services to our clients backed by in-depth research and analysis.
REConnect is run by an experienced and professional team. The team consists of members with relevant
experience of working at IEX, L&T, JP Morgan, Arthur Andersen and Gensol. Key members of the team are
alumnus of IIT Bombay, Columbia University (an Ivy League university).
For more details of services provided and profile of the management team, please visit our website.
India’s largest REC Trading Company Clickpower.in: India’s first Green Energy Marketplace
Contact Details
Bangalore:
Vishal Pandya
No. 2, Victor Mansion , 2nd floor, Kodi-
halli, Old Airport Road, HAL 2nd Stage
(PO), Bangalore—560008
O : 080 - 6547 3383 / 84
F : 080 - 30723571
New Delhi:
Vibhav Nuwal
C– 503, 5th Floor, Nirvana courtyard,
Nirvana Country, Sector 50,
Gurgaon 122018.
O : 0124 - 4103216
F : 080 - 30723571
Chennai:
Venkat Mutharasu (+919940177993)
# 18/1 (88), 2nd Floor, Aarya Gowda
Road, West Mambalam,
Chennai - 600 033.
Hyderabad:
Rahul (+91 8884111690)
Solar Market:
Vibhav Nuwal
Mumbai:
Ram Kumar ( +919930359992 )
1013, 10th Floor,
Micro (Haware) Infotech Park,
Plot no. 16, Sector-30A, Vashi,
Navi Mumbai- 400705,
Maharashtra, India.
Renewable Purchase Obligation (RPO):
Chetan Singh Adhikari ( +91 9910772666)
Forecasting and Scheduling (F&S)
Siddhartha P. (+91 9916994349)
Follow us on:
Disclaimer:
All the information presented in this newsletter is from publicly available sources. REConnect does not warrant the accuracy and completeness of information available and therefore will not be liable for any loss incurred. The content provided here is for the general informational purposes only. REConnect shall not be responsible for damages resulting from the use of any information in this newsletter. Readers are advised to make appropriate analysis and take appropriate advise before acting on the contents of this newsletter.
Call: +91 088732732
W: www.clickpower.in