rec status
Post on 20-May-2015
162 Views
Preview:
TRANSCRIPT
Overviewof
RENEWABLE PURCHASE OBLIGATION (RPO) &
RENEWABLE ENERGY CERTIFICATE (REC)Framework & status
in
INDIA Presentation by
Sanjeev jainAdditional Director
CREDA ,RAIPUR E mail- sjain218@yahoo.co.in
Key Objectives for Introduction of REC Mechanism
2
Effective implementation of RPO .
Increased flexibility for participants .
Overcome geographical constraints .
Reduce transaction costs for RE transactions .
Enforcement of penalty mechanism .
Create competition among different RE technologies
.
Development of all encompassing incentive
mechanism .
Reduce risks for local distributor by limiting its
liability to energy purchase .
Concept of REC Mechanism in India
3
Avg. PP Costof Host Utility(regulated)
Market Rate as per
Power Exchange
At Tariff Determined by
Regulatory Commission
Renewable Energy
Electricity
REC
DistributionCompany
Renewable Energy
Electricity
REC
DistributionCompany
Obligated Entity
(Buyer)
Existing Mechanism
RECMechanism
OA / TraderBilateral
agreement(de-regulated)
Entities involved in REC Mechanism operation
4
Institutional Framework
Central Entities
State Entities
Forum of Regulators Central Electricity Regulatory Commission Central Agency (National Load Dispatch Centre) Power Exchanges Compliance Auditors
State Electricity Regulatory Commission State Load Dispatch Centre State Agencies Eligible Entities Obligated Entities
Renewable Energy Certificates (REC)REC is deemed as certificate of power generated from Renewable
Energy sources.
1 REC = 1 Mega Watt hour of renewable energy generated.
Can be sold or traded to meet mandatory RPO targets set by State Electricity .
Regulatory Commissions for renewable energy purchases by utilities/distribution companies/ Obligated entities.
Exchanges identified for REC trading- Indian Energy Exchange & Power Exchange of India.
REC would be divided into two categories:• Solar Certificates• Non-Solar Certificates
Eligibility Criteria
All renewable energy generators already NOT having PPA with the distribution licensees for contracted quantum.
RE generator selling electricity generated either :i. to the distribution licensee of the area in which the eligible
entity is located, at a price not exceeding the pooled cost of power purchase of such distribution licensee; or
ii. to any other licensee or to an open access consumer at a mutually agreed price, or through power exchange at a market determined price;
iii.eligible CPP utilizes electricity for self consumption
All RE based captive power producer shall be eligible for their entire energy generation including self consumption.
Conceptual framework
RE Generator
Sale in REC framework
Sale at Preferential
tariff
Obligated Entities
Renewable Component
(REC)
Electricity Component
Obligated Entities (Sale through power
exchanges )
Sale through power exchanges
Third party sale on mutually agreed price
Distribution Utility at a price not more
than average pool price
Operational framework
Accreditation by State Agency
Registration by Central Agency
Issuance of RECs by Central Agency
Redemption of RECs
Accreditation & Registration Process
Eligible Entity State Agency SLDC
Central Agency
Power Exchange
Verify Accreditation
Application
ConfirmationIntimation
Application
Confirmation
Intimation
Issuance of REC Process
SLDC Central Agency
Power Exchange
Eligible Entity
VerificationPre Condition
Regular Injection
Verify before Issuance
Application
Joint Meter Reading
Apply for sale of REC
State Agency
IssuanceIntimation For Meter Reading
SLDC
1 1
1
2
3
4
6
7
5
REC Trading
Central Agency- NLDC
Electricity to Grid
Electricity from Grid
RE Generators
RPS Obligated entities
Energy Accounting
Trading
Platform
Open access users
Other obligat
ed entities
Captive
generators
Discoms
REC purchase agreement/ trading
Redemption of REC
Application to issue REC
Issuance of REC
SLDCConfirmation of Energy Accounting Compliance reporting
Monitoring Committee of each State
Quarterly Reporting
Redemption Process
Eligible Entity
Obligated Entity SERC
Central Agency
Power Exchange
Apply forSale of REC
Purchase RPO
State Agency
Intimation ofSale
Intimation of Sale
REC- Timelines, Fees & ChargesApplication • Three months from the date of generation
Issuance • Fifteen days from the date of application
Validity • 365 days from the date of issue or exchange by
way of sale whichever is earlier
Fees • Registration, Annual & Transaction Fees
Charges at Exchange• Membership Charges• Transaction Charges
REC Fees & Charges
S.N. Fee and Charges towards Accreditation
Amount in
1 Application Processing Fees (One Time)
5,000
2 Accreditation Charges (One Time)
30,000
3 Annual Charges 10,000
4 Revalidation Charge at the end of five (5) years
15,000
Accreditation Charges
REC Fees & Charges
S.N. Fee and Charges towards Registration Amount in
1 Application Processing Fees (One Time) 1,000
2 Registration Charges (One Time) 5,000
3 Annual Charges 1,0004 Revalidation Charge at the end of five (5) years 5,000
Registration Charges
S.N. Fee and Charges towards Issuance of REC Amount in
1 Fees per Certificate 10
Issuance Charges
REC Pricing Framework
12/04/2023 16
Renewable Energy
Electricity Component
REC Component(Environmental
Attribute)
Market Discovered Price(Obligated
Entity/Voluntary Buyer)
AveragePower Purchase
Cost
(Distribution Utility)
CHHATTISGARH - Rs.
1.67/kwh
Andhra Pradesh - Rs
1.78/kWh
Maharashtra - Rs
2.43/kWh
Karnataka - Rs
1.85/kWh
Kerala - Rs
1.46/kWh
Tamil Nadu - Rs 2.62/kWh
Himachal Pradesh - Rs
1.48/kWh
Rajasthan - Rs
2.48/kWh
ParametersNon Solar
RECSolar REC
Forbearance Price (Rs/MWh)
3900 17000
Floor Price (Rs/MWh)
1500 12000
Bilateral Agreement
(de-regulated)
(OA User/Trader)
Pricing of RECCERC has finalized the floor and forbearance price of REC based on:- Variation in cost of generation of different renewable
energy technologies , falling under solar and non-solar category, across States in the country.
Variation in the Pooled Cost of Purchase across States .Expected electricity generation from renewable energy
sources including:- i. expected renewable energy capacity under preferential tariff ii. expected renewable energy capacity under mechanism of certificates;
Renewable Purchase obligation targets set by State Commissions.
Cont…
.
CERC has given the following price range for Solar and non-solar certificates ( applicable up to march2012):
Non-Solar REC (Rs/MWh)
Solar REC (Rs/MWh)
Forbearance Price 3,900 17,000Floor Price 1,500 12,000
These prices are calculated as under:Forbearance Price = Maximum (Preferential Tariff- Average Power Pool Cost)Floor Price = Market Equilibrium Price (Minimum requirement for project viability of RE technologies - Average Power Pool Cost)
Revised REC Price Comparison (w.e.f April 2012)
Under JNNSM, targets set for Solar PenetrationPhase 1 (2010 –2013) Phase 2 (2013 –2017) Phase 3 (2017 –2022)
1,100 MW 4,000 MW 20,000 MW
Phase -1 Category Size of Project Status of Allocation
1100 MW
90 MW , Small scale Projects
0.1 to 2 MW grid connected
Projects have already been shortlisted
10 MW Off-grid and decentralized applications
Up to 100 kW Applications open from center.
500 MW Grid Connected Solar Photovoltaic technology
5MW +- 5%FY 2010-11 50MW
FY 2011-13 350MW
500 MW Grid connected Solar Thermal Projects
5MW +- 5% FY 2010-11 500MW
Solar policy Landscape
PARAMETERS 100 kW 200 kW
Solar Modules 120 Lacs 240 Lacs
Electric Equipments 60 Lacs 120 Lacs
Civil Work 30 Lacs 60 Lacs
EPC 30 Lacs 60 Lacs
Preoperative & Consultancy 10 Lacs 20 Lacs
TOTAL 250Lacs 500 Lacs
Area Requirement 1200 sq. Km. 2400 sq. Km.
Power Generation 1.5 Lac units 3.0 Lac units
Off-grid Solar system Cost estimate (with Battery Back-up)
Renewable Energy Certificate1
Tax Saving due to Accelerated Depreciation2
Freedom from grid-based electricity3
Off-grid Solar system Benefits
Combined Benefits for a 100 kW system
Incentive Equity (75 Lacs) Debt (175 Lacs)
Revenue from sale of REC 18.1 Lacs -NA-
Revenue against tax saving 48 Lacs -NA-
Revenue against saving from grid based electricity
7.2 Lacs -NA-
Returns in 1st year 73.3 Lacs Loan repayment of Rs 175 Lacs at rate of 5%
Total Project Cost Equity Debt
250 Lacs 75 Lacs 175 Lacs
Combined Benefits for a 200 kW system
Incentive Equity (150 Lacs) Debt (350 Lacs)
Revenue from sale of REC 36.2 Lacs -NA-
Revenue against tax saving 96 Lacs -NA-
Revenue against saving from grid based electricity
14.4 Lacs -NA-
Returns in 1st year 146.6 Lacs Loan repayment of Rs 350 Lacs at rate of 10-12%
Total Project Cost Equity Debt
500 Lacs 150 Lacs 350 Lacs
REC Status* till Date (as on 30.09.11)
• Accreditated RE Generators -- 241(1418MW)
• Registered RE Generators ------176(1079MW)
• RECs Issued-------------------------- 197044
• RECs Redeemed-------------------- 125507 (* source – NLDC)
Registered R.E Generator* (as on 30.09.2011)
Energy Source No. of Projects Capacity in MW
1. Wind 125 5742. Small Hydro 10 523. Bio Mass 20 2244. Bio fuel Co gen 21 2295. Solar Thermal - -6. Solar PV - -7. Geothermal - -8. Urban /Municipal Waste - -
TOTAL 176 1079
SOURCE WISE RE GENERATOR
569
224
229
51
TOTAL CAPACITY REGISTERED 1074 MW
WIND
BIO MASS
CO-GEN
HYDRO
Total registered RE capacity 1074 MW
REC SUMMERY* (as on 30.09.2011)
Month & Year
Opening Balance
REC Issued REC Redeemed
Closing Balance
March, 2011 0 532 424 108
April, 2011 108 4503 260 4351
May, 2011 4031 28270 18502 14119
June, 201114119 27090 16385 24824
July, 201124824 30224 18568 36480
August, 201136840 31813 25096 43197
Sept 201143197 74612 46362 711447
TOTAL 197044 125597
States with highest RPO targets for FY12State Total RPO % (FY12)
Himachal Pradesh 11.1
Rajasthan 9.5
Tamil Nadu 9
Maharashtra 7
Gujarat 6
Chhattisgarh 5.25
Andhra Pradesh 5
Uttar Pradesh 5
Power Sector at a Glance "ALL INDIA" Total Installed Capacity as on 31.08.2011 ( source- CEA)
Fuel MW %age
Thermal 118409.48 65.21
Hydro (Renewable) 38,206.40 21.04
Nuclear 4,780.00 2.63
RES** (MNRE) 20,162.24 11.10
Total 1,81,558.12 100.00
Sector MW %age
State Sector 83,313.65 45.88
Central Sector 56,572.63 31.15
Private Sector 41,671.84 22.95
Total 1,81,558.12
R. E Project installed all India (as on 31.08.2011) source : MNRE
Renewable Energy Programme/ Systems
Installed capacity MW
WIND 14989
SMALL HYDRO 3153
BIO MASS 1083
BAGGASE CO- GEN 1779
WASTE TO POWER ( U&I) 73
SOLAR PV 46
TOTAL 21125
Comparison RE Projects installed v/s Registered as R.E Generator under REC
SOURCE INSTALLED CAPACITY (MW)
REGISTERED CAPACITY(MW)
% over Installed /Regd.
WIND 14989 569 3.79
BIO MASS 1083 224 20.68
CO-GEN 1779 229 12.87
HYDRO 3153 51 1.61
SOLAR 46 - -
Waste to Energy (U&I) 73 - -
TOTAL 21125 1074 5.08
REC mechanism offers alternative to fulfill RPO targets by Entities.
Obligated Entities can plan to meet RPO targets in efficient manner.
Long term visibility of Floor and Forbearance price is necessary to
ensure regulatory certainty for Utility as well as RE project
developers.
Impact on Avg. power purchase cost of Utility is not very significant.
Utility /SERCs may develop Model Power Purchase Agreement for
procurement of electricity from RE projects at APPC. Bilateral transactions of RECs as & when enabled would provide
larger flexibility and liquidity for REC market, which is the need of the hour.
Stimulate competition amongst renewable energy sources. Help in bringing early grid parity for renewable energy sources.
Way Forward ........
40
Thank you!!!
top related