OPEN ACCESS - REConnect Energy€¦ · and its subsequent stay by the High Court, Open Access...

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

http://reconnectenergy.com/blog/2016/04/rec-trade-result-april-2016/

http://reconnectenergy.com/blog/2015/05/rec-trade-results-may-2015-a-significant-jump-after-supreme-court-judgment/

http://reconnectenergy.com/blog/2016/06/rec-trade-result-june-2016/

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



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*

http://reconnectenergy.com/blog/2016/06/analysis-of-regulation-on-forecasting-and-scheduling-of-wind-and-solar-generating-stations-at-state-level-in-karnataka/

http://www.karnataka.gov.in/kerc/Regulations/Regulations/KERC_Forecasting_Scheduling_Regulation_2015.pdf

Regulatory Updates

Analysis of KERC F



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

http://www.uerc.gov.in/orderspetitions/orders/Misc/2016/june16/Order%20dt.%2020.06.2016%20on%20carry%20forward%20of%20RPO%20for%20FY%202015-16.pdf

Regulatory Updates

Analysis of KERC F



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.


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

http://rerc.rajasthan.gov.in/TariffOrders/Order237.pdf

http://www.orierc.org/Open%20Access%20Order%20FY%202016-17.pdf

Regulatory Updates

Analysis of KERC F



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.


REC Trader

& Forecasting

Company of

the Year 2015

Other Regulatory updates of the month can be ac-

cessed here.

http://rerc.rajasthan.gov.in/TariffOrders/Order237.pdf

http://hareda.gov.in/writereaddata/news/hareda554149161.pdf

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


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%


IEX

PXIL

Non Solar Clearing %

http://www.reconnectenergy.com/letest-rec-trade-results/

http://reconnectenergy.com/blog/tag/iex/

http://clickpower.in/

http://reconnectenergy.com/blog/2016/03/rec-trade-result-march-2015/

REC Trade Report - May & June 2016

Analysis of KERC F


Regulatory

Updates



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.




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


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%


IEX

PXIL

Solar Clearing %





REC Trade Report –May & June 2016

Analysis of KERC F


Regulatory

Updates



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.




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



Registered Capacity

4942.45 MW


Projects Registered

Source wise

All figures

in MW

I

Biomass

700

Solar PV

588

Wind

2213 Bio-fuel

Cogeneration

920


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





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



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

[email protected]

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

[email protected]

C– 503, 5th Floor, Nirvana courtyard,

Nirvana Country, Sector 50,

Gurgaon 122018.

O : 0124 - 4103216

F : 080 - 30723571

Chennai:

Venkat Mutharasu (+919940177993)

[email protected]

# 18/1 (88), 2nd Floor, Aarya Gowda

Road, West Mambalam,

Chennai - 600 033.

Hyderabad:

Rahul (+91 8884111690)

[email protected]

Solar Market:

Vibhav Nuwal

[email protected]

Mumbai:

Ram Kumar ( +919930359992 )

[email protected]

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)

[email protected]

Forecasting and Scheduling (F&S)

Siddhartha P. (+91 9916994349)

[email protected]

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

http://reconnectenergy.com/


https://www.facebook.com/pages/REConnect-Energy/224609660900088?ref=br_tf

https://www.linkedin.com/company/reconnect-energy-solutions

https://twitter.com/REConnectEnergy

http://www.clickpower.in/

OPEN ACCESS - REConnect Energy€¦ · and its subsequent stay by the High Court, Open Access...

Documents

Transcript of OPEN ACCESS - REConnect Energy€¦ · and its subsequent stay by the High Court, Open Access...