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OPEN ACCESS

June 2015

Volume - 52

Wind Facilitator of the Year & REC Facilitator of the Year 2014

From Management‘s Desk

Our main article this month analyses in detail the proposed 5th amendment to REC regulation and its impact on Captive and Open Access consumers. If enacted, the result of this amendment would be to reduce the supply of REC’s drastically, and will have significant im-pact on the economics of open access projects and of new captive projects.

Notable regulatory updates and tariff orders in June were –Telangana Solar Policy which provides about various incentives and benefits available under the policy and Gujarat making RPO regula-tion applicable for Captive and Open Access consumers. Apart from this new Wind energy tariff finalized by Rajasthan commission, Har-yana and Gujarat proposed solar tariff, and MPERC proposed its open access Regulation were the other important developments in the regulatory front.

REC trading saw moderate volumes relative to May 2015. Overall clearing ratios stood little above 1% for both solar and non-solar. The broad trend is of increasing trading volumes as most obligated entities make efforts to meet compliance requirements.

This is a result of the SC order earlier, and going forward also of the GERC order making RPO applicable in CPP and OA consumers.

We hope you will find this volume an insightful read, and as always, look forward to your feedback.

- Team REConnect CO

NT

EN

T

Analysis of 5th Amend-

ment to REC Regulation

Regulatory Updates

REC Trade Results

REC Project Stats

Green News

RPO Map

About REConnect

Analysis of 5th Amendment to REC Regulations proposed by CERC

Analysis 5th Amend-

ment to REC Reg. RPO Map Green News REC Project Stats REC Trade Report Regulatory Updates

www.reconnectenergy.com Page 1

38%

REC Market

Share

PAN

India

Presence

2.2 GW

Projects under

management

Managing REC

Projects in

16

States

Background:

Recently, CERC proposed the 5th amendment to REC

regulations. The gist of proposed changes is:

Captive generators and portion of power for self-

consumption will no longer be eligible for REC’s.

If an open access (OA) project avails concessional

wheeling, banking or cross-subsidy benefits, it will

not be eligible for REC’s.

These changes have been proposed in the context of an

REC market that faces significant oversupply. As on June

30 2015, RECs worth 2,650 crore remain unsold, and

clearing percentages in many months are well below

5%. In most months, more RECs have been issued than

redeemed, further aggravating the problem of over-

supply.

In the explanatory memorandum, CERC has elaborated

on the thinking behind the proposed amendment. The

memo states:

“Lack of RPO enforcement has been one of the

major reasons for the high level of unsold REC

inventory. However, it is also important to an-alyze the supply side aspects and understand

whether the right beneficiaries (as was envis-

aged while introducing REC framework) are

participating and able to compete in the REC

market. It remains a fact that a major portion of

the REC inventory is contributed by the CGPs.

Also, developers under third party model are

able to leverage the concessional benefits while

participating under REC framework.” (Emphasis

added)

and,

“Around 51% of the projects under the CGP

route were commissioned before the first notify

cation (14 January 2010) of the REC Regulation.

These projects must have computed their financial

viability without the REC benefit.”

The proposed changes will have far-reaching implications

on the REC market structure. As per data provided in the

Explanatory Memo approximately 41% of the capacity

(under captive generation) will be completely excluded from

RECs markets, and a significant portion of OA capacity (19%

of total) will be impacted.

Analysis by REConnect Energy suggests that annual RECs

generation may fall from 96.25 lakhs in FY 14-15 to 54.30

lakhs per year after the amendment.

Table: Annual RECs Issuance

Sources: REC registry website; REConnect analysis.

Note: Annualized redemption is assumed to be 2X times redemption is FY 14-15.

Increase is expected due to SC order and Electricity Act amendment.

Impact on Open Access (OA) projects:

The proposed amendment is contrary to the provision in the

draft Electricity Amendment bill (EA Bill) in the Parliament,

and of many state policies.

The EA Bill says:

Sec 42(4):

“The open access consumers procuring electricity from re-newable energy sources shall not be required to pay the

surcharge for open access for such period as may be

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

FY 14-15 After 5th Amendment; annualised

Annual issuance

Annual redemption

Analysis of 5th Amendment to REC Regulations proposed by CERC

Analysis 5th Amend-



38%

REC Market

Share

PAN

India

Presence

2.2 GW

Projects under

management

Managing REC

Projects in

16

States

prescribed by the Central Government”

Surcharge in the above context means cross-subsidy sur-

charge (CSS).

If the EA Bill is to be passed by the Parliament, the impact

of the 5th Amendment will be to make all RE projects in

OA ineligible for REC’s. This will discourage OA in renewa-

ble energy – something that goes against one of the prin-

ciple objectives of the EA and of CERC (to encourage mar-

ket development in the electricity sector).

Further, many states allow concessional cross-subsidy or

exemption from cross-subsidy as a way to promote open

access in RE projects. For example, Rajasthan’s solar policy

exempts solar projects under open access from CSS. Simi-

lar provisions exist in many state policies.

Renewable Energy projects will not be viable under open

access without concessional CSS provided by the states.

States realize this – and therefore the concession exists in

the first place. If RECs benefits were to be denied to such

projects, it’s the equivalent of giving from one hand and

taking from another. The net result of the amendment will

be to completely finish-off the OA market for RE power –

this is something that will be contrary to one of the fun-

damental pillars of the Electricity Act.

Further, in many existing OA transactions, prices are likely

to have been negotiated knowing the fact that the RE

project will get revenue from RECs. Such projects may

suddenly become unviable. In many states with low tariffs,

such projects will not remain competitive without RECs

and therefore risk becoming NPAs.

Impact on Captive Generating (CGP) projects:

As mentioned above, the impact on CGPs of the amend-

ment will be drastic. All CGP’s will be considered ineligible

for RECs benefits. However, in proposing the amendment,

CERC has failed to consider the case of two categories of

projects–

CGPs set up specifically to meet RPO requirements,

and

CGPs under the group captive mechanism.

Since CERC amended the RECs regulation to allow self-

retention of RECs by obligated entities, many companies

have set up CGPs in one state and meet their obligation

in other states through retention of REC’s. This approach

has multiple benefits – it has encouraged setting up of

new RE capacity, and also helps the obligated entity man-

age its compliance costs.

The proposed amendment will take away this benefit to

obligated entities. This is erroneous on three counts – (a)

the CGP is likely to have been setup by the obligated enti-

ty to meet RPO across units. Such an investment, made in

good faith keeping in mind existing regulations, may be-

come redundant after the regulation, (b) it will discourage

setting up of large new RE capacities as obligated entities

will not be able to meet RPO in states that have low RE

resources, and (c) it will take away a valid means for obli-

gated entities to comply with RPO, leaving them with very

limited options – buying of REC’s.

Group captive projects, on the other hand, also face diffi-

culties due to the amendment. In many group captive

projects, the primary investment is made by an investor,

and power prices are determined through negotiations.

Further, such projects tend to be long term in nature as

they involve an element of equity investment by the con-

sumer. A sudden change in RECs eligibility is likely to

make such projects unviable, and result in severe losses to

investors who set up projects assuming a stable RECs re-

gime.

Overall, we believe that while CERC’s intent to correct the

supply imbalance in the RECs market is needed, the unin-

tended consequence of the 5th amendment on open ac-

cess and captive projects will be harmful to the growth of

the renewable energy industry.

Regulatory Updates

Analysis 5th Amend-



India’s largest REC Trading Company Clickpower.in: India’s first Green Energy Marketplace

Telangana Solar Power Policy 2015

The Government of Telangana has recently announced its

new solar policy. The new policy will be known as The Tel-

angana Solar Power Policy 2015. The new Policy will come

in force from the date of issue and will remain in opera-

tion for five (5) years and all the Solar Projects that are

commissioned during the operative period will be eligible

for the incentives declared under this policy, for a period

of ten (10) years from the date of commissioning.

Objectives of the Policy:

The objective of the Policy includes long term energy se-

curity, sustainable fuel for energy generation, promoting

solar parks in the state and promoting investment in the

solar sector. The policy also targets on promoting distrib-

uted and decentralized generation and off-grid solar ap-

plications.

For availing benefits under this policy, power generated

through solar projects has to be consumed within the

state.

Applicability of the Policy – This solar policy shall be

applicable for the following solar projects set up within

the state –

Solar Power Projects:

a) Grid connected solar power projects based on both

Photo Voltaic (PV) as well as Solar Thermal technologies

Projects set up for sale of power to TSDISCOM’s.

Projects set up for sale of power to third parties within

the state.

b) Projects set-up for captive generation/ group captive

generation (including those funded and owned by devel-

opers).

Solar Roof-top Projects (SRPs) (Grid connected and off

grid) – This includes projects which are funded and

owned by developers.

Off grid applications.

Any other project which is established based on

MNRE/GOI Schemes as amended from time to time.

Solar Parks.

Incentives Offered:

Exemption from the payment of Electricity Duty.

Deemed Industry Status will be provided.

Pollution Clearance.

The policy also mentions that solar parks will host solar

manufacturing, R&D centers, training facilities and finan-

cial institutions within the solar parks.

For further details click here.

GERC RPO Regulation Applicable on Captive and

OA consumers

The Gujarat Electricity Regulatory Commission (GERC) in a

notification dated 1st July 2015, has made RPO

(Renewable Purchase Obligation) regulation applicable on

captive and Open Access consumers of the state.

The quantum of RPO applicable on the OA and Captive

users will be same as for the distribution licensee. The

percentages of RPO targets applicable in the state are

shown in the graph below:

For analysis of the same please click here.

JERC Finalizes Solar Ground Mounted & Solar Rooftop

Regulation

The Joint Regulatory Commission for Goa and Union terri-

tories (JERC) has notified its final copy of regulation for

solar ground-mounted and rooftop solar projects. The

notified copy has been published in the official gazette

also, so the regulation has already come into force. The

regulation will remain in force for a period of three years

unless revised or extended by the commission.

This regulation will extend to the State of Goa and the

Union Territories of Andaman and Nicobar Islands, Chan-

digarh, Dadra & Nagar Haveli, Daman & Diu, Lakshad-

weep, and Puducherry.

4.75 5.506.00 6.00

6.75 7.50 8.250.25

0.50 1.00 1.00

1.25

1.50

1.75

0.00

2.00

4.00

6.00

8.00

10.00

12.00

FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17

Gujarat Yearwise RPO (in %)

Solar %

Non-solar %

http://clickpower.in/

http://reconnectenergy.com/blog/2015/06/telangana-final-solar-power-policy-2015/

C:/Users/Dheeraj/Documents/MEGAhttp:/reconnectenergy.com/blog/2015/07/gerc-enforces-rpo-regulation-on-captive-and-oa-consumers/

Regulatory Updates

Analysis 5th Amend-




Solar PV and I or Solar Thermal power projects of

more than 500 kWp and Rooftop Solar Power projects

of more than 1 kWp capacity but less than 500 kWp,

rooftop projects with higher capacities can be accept-

ed under stable grid conditions.

Third party ownership of the rooftop systems is al-

lowed such generation will be eligible for availing

open access.

The target capacity for the solar generation would be

equal to solar power obligations in the respective ter-

ritories as per Procurement of Renewable Energy Reg-

ulations of the Commission.

The settlement period would be six month I.e. From

April to September and October to March.

The solar power generators are exempted from payment

of any charges towards wheeling, banking, line losses and

cross-subsidy to the extent of energy produced.

To read more on this click here.

Solar RPO Applicability

Net Metered or Gross Metered Consumer: All energy

produced by the solar project (self-consumption and

excess) shall be accounted towards RPO of the Dis-

com.

Open Access Consumer: In case the OA consumer and

the solar power generator both are obligated entities,

then only one of two would be able to claim RPO

compliance for the solar energy generated.

For further reading click here.

HPERC Proposes Tariff for Solar Projects

The Himachal Pradesh Electricity Regulatory Commission

(HPERC) has notified a draft on 16th June 2015 for the cal-

culation of solar energy tariff in the state. The proposed

tariff will be applicable for the projects where PPAs are

signed on or before 31.03.2016 and the entire capacities

covered by the PPAs are commissioned on or before

31.03.2017. The details of the proposed tariff are given in

the table below:

More analysis can be read here.

Rajasthan Finalizes Wind Tariff for FY 15-16

The Rajasthan Electricity Regulatory Commission (RERC)

has finalized the tariff for wind energy projects; it will be

applicable for FY 15-16. Earlier the commission notified a

draft and invited comments and suggestions from the

stake holders. The details of the tariff finalized are given

in the table below:

Below is the graph for tariffs finalized by RERC and CERC

and a comparison between them.

The more details can be found here.

Capacities Generic Levellised Tariff in Rs. / kWh

Without AD With AD

Cap. Up to 1 MW 7.14 6.45

Cap. above 1MW and up to 5MW

7.05 6.37

Particulars Tariff in Rs./

kwh without AD Tariff in Rs./kwh with AD

Projects located in jaisalmer, Jodhpur & Barmer districts

5.74 5.14

Projects located in districts other than Jaisalmer, Jodhpur & Barmer districts.

6.02 5.39

5.13

5.38

5.57

5.39

4.87

5.27

5.455.34

4.4

4.6

4.8

5

5.2

5.4

5.6

5.8

2012-13 2013-14 2014-15 2015-16

Year-wise Wind Tariffs

RERC Wind Tariff

CERC Wind Tariff

4.87 %3.53 %

3.23 %

8.21 %

3.42 %

-2.02 %-4.00

-2.00

0.00

2.00

4.00

6.00

8.00

10.00

2013-14 2014-15 2015-16

Change In Wind Tariffs

Change inRERC Tariff

Change inCERC Tariff


http://reconnectenergy.com/blog/2015/06/jerc-finalizes-solar-ground-mounted-solar-rooftop-regulation/

http://reconnectenergy.com/blog/2015/06/jerc-finalizes-solar-ground-mounted-solar-rooftop-regulation/

http://reconnectenergy.com/blog/2015/06/hperc-proposes-tariff-for-solar-projects/

http://reconnectenergy.com/blog/2015/06/rajasthan-finalizes-wind-tariff-for-fy-15-16/

Regulatory Updates

Analysis 5th Amend-




MPERC Proposes to Revise Open Access Regula-

tion

The Madhya Pradesh Electricity Regulatory Commission

(MPERC) on 18th June 24, 2015 has proposed a new regu-

lation for open access power transactions in the state. The

proposed regulation will revise the previous open access

regulation 2005. The regulation will come into force from

the date of publication in the official Gazette.

The regulation will apply to open access customers for

use of intra-state transmission system and distribution

system, including systems when it is used in conjunction

with inter-state transmission system.

The open access will be allowed for Non-conventions En-

ergy sources, Captive Generating Plants of Conventional

Energy, and to all other open access consumers with load

of 1MW and above.

Categorization of Open Access Consumer:

Long-term Open Access: Any consumer availing open ac-

cess for a period of exceeding 12 years but not exceeding

25 years.

Medium-term Open Access: customers availing open ac-

cess for a period exceeding 3 months but not exceeding 3

years at a time.

Short-term Open Access: Consumer availing open access

for a period up to one month at a time.

Charges for Open Access: The commission from time to

time will fix (calculate) various charges to be payable by

the open access consumer to the distribution licensee.

The various charges payable by the open access consum-

ers will include Wheeling Charges, Transmission Charges,

and Imbalance Charges. The OA consumer will also bear

Reactive Energy Charge, Interconnection expenses, Oper-

ating Charges, additional surcharge and any other charge

levied by the commission.

The more details on regulation is available here.

JERC for Goa and UT’s Determines Tariff for Solar

Projects

The Joint Regulatory Commission for Goa and Union terri-

tories (JERC) has determined the solar tariff for ground-

mounted and rooftop solar projects. The tariff will be ap-

plicable for projects in the State of Goa and the Union

Territories of Andaman and Nicobar Islands, Chandigarh,

Dadra & Nagar Haveli, Daman & Diu, Lakshadweep, and

and Puducherry.

The commission has finalized the tariffs based on

the amount of subsidies being availed by a generator. For

the projects availing higher subsidies (being offered by

various institutions and Govt. of India); the tariff offered

will be on the lower side and vice versa.

The more details on the Tariffs defined can be read here.

GERC (Gujarat) Proposes Tariff for Solar Projects

The Gujarat Electricity Regulatory Commission (GERC) in a

draft notified earlier this month has proposed tariff for the

solar projects. The Tariff proposed in the Discussion pa-

per will be applicable to the projects commission during

July 1, 2015 to March 31, 2018. The commission through a

separate public notice has invited comments and sug-

gestions from the interested stake holders by 22nd June

2015. The details of the tariffs proposed are in the table

below:

Wheeling Charges:

For Injection at 66 kV voltage level and above, trans-

mission charges as applicable to normal open-access

customers and transmission and wheeling loss @ 7%

of the energy fed into the grid.

For Injection at 11 kV or above and below 66 kV,

wheeling in the area of the distribution licensee will

be allowed on payment of distribution loss @ 3% of

the energy fed in to the grid. In the other case of

wheeling within the state but in the area of a different

distribution licensee will be allowed on payment of

transmission charges and transmission and distribu-

tion loss @ 10% of the energy fed in to the grid.

9.709.02

8.39

6.00

9.35

7.876.95

6.35

0.00

2.00

4.00

6.00

8.00

10.00

12.00

2012-13 2013-14 2014-15 2015-16

Tariffs CERC and GERC

Tariff GERC

Tariff CERC


http://reconnectenergy.com/blog/2015/06/mperc-proposes-to-revise-open-access-regulation/

http://reconnectenergy.com/blog/2015/06/jerc-for-goa-and-uts-determines-tariff-for-solar-projects/

http://www.gercin.org/newspdf/en_1433333747.pdf



Regulatory Updates

Analysis 5th Amend-


MERC Reduces MSEDCL distribution Tariff

The Maharashtra Regulatory Commission (MERC) in a no-

tification dated June 27, 2015, has calculated the Distribu-

tion Tariff for Maharashtra State Electricity Distribution

Company Limited (MSEDCL), which will be effective from

1st June 2015 onwards.

The commission in the present order has surprisingly re-

duce the tariffs for Industrial and commercial consumers.

The details of the tariff for commercial and Industrial con-

sumer are in the table below:

A graph on category-wise reduction in tariff is below:

The Commission has approved Wheeling Charges for 33

kV, 22/11 kV and LT Level as Rs. 0.15 per kWh, Rs. 0.83

per kWh and Rs. 1.42 per kWh respectively.

The reduction in the tariff for HT industrial consumer is

surprisingly substantial, which is in the range of 11-17%,

and the same for HT commercial consumer has been re-

duced by 10-11%. This reduction in tariff will have a con-

siderable effect on the Open access market.

For further analysis please click here.

MPERC Proposes RPO Targets till FY 18-19

The Madhya Pradesh Electricity Regulatory Commission (MPERC) through a draft notification dated 30th May 2015, has proposed the amendment to RPO regulation 2010. The draft amendment proposes RPO targets for the up-coming years (till FY 18-19).

The details of the RPO targets being proposed are as in the graphs below:

The commission through a separate public notice has

invited comments and suggestion on the said draft latest

by 22ndJune 2015.

The more details can be read here

- End of Section -



Category

MSEDCL Ex-isting Tariff

MSEDCL Re-vised Tariff %

Change Energy Charges Energy Charges

HT I – Industry in Rs./kWh

HT I(A)- Industry (Express Feeder)

8.41 7.21 14.27

HT I(B)-Industry (NonExpress Feeder)

7.60 6.71 11.71

HT I(C)-Seasonal In-dustry

9.35 7.80 16.58

HT II - Commercial in Rs./kWh

HT I(A) Express Feeder

12.54 11.15 11.08

HT I(B) Non-Express Feeder

11.80 10.62 10.00

-14.27

-11.71

-16.58

-11.08

-10.00

-18.00

-16.00

-14.00

-12.00

-10.00

-8.00

-6.00

-4.00

-2.00

0.00

HT I (A) HT I(B) HT I (C) HT II (A) HT II (B)

% Change in Tariff

% Change in Tariff

0.000.40

0.600.80 1.00

1.001.25

1.501.75

0.80

2.10

3.40

4.706.00

6.00

6.507.00

7.50

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19

RPO targets Proposes by MPERC

Solar (%)

Non-Solar (%)

http://reconnectenergy.com/blog/2015/06/3219/

http://www.mperc.nic.in/300515-PubNotice-5th-Amend-Cogen-Reg-English.pdf

http://reconnectenergy.com/blog/2015/06/mperc-proposes-rpo-targets-till-fy-18-19/


Clickpower.in Market Update

Analysis 5th Amend-


India’s largest REC Trading Company

Telangana Sell: 25 MW

Buy: 0 MW

Price: Rs. 5.85/Unit*

Sell: 12.6 MW

Buy: 79.6 MW


Sell: 88 MW

Buy: 88.7 MW


Sell: 8 MW

Buy: 4 MW

Price: Rs. 6/Unit*

Sell: 41.2 MW

Buy: 77.9 MW

Price: Rs. 6/Unit*

* Lowest Price as on 04.05.2015

AP Sell: 17 MW

Buy: 0 MW

Price: Rs. 6/Unit*

Clickpower.in: India’s first Green Energy Marketplace

Clickpower.in: India’s First Green Energy Marketplace

is now open for Consumers and Generators to register and ex-

plore. It is currently open for 6 states, with currently registered

volumes and price shown below for respective states. Feel free

to register till the offer of free registration is open. Explore and

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Call: +91 8088732732 for more details and assistance.


Clickpower.in Media Coverage


REC Trade Report - June 2015

Analysis 5th Amend-

ment to REC Reg. RPO Map Green News REC Project Stats REC Trade Report

Regulatory

Updates



Non Solar RECs

Total 161,845 RECs were cleared in this trading session. IEX and PXIL had a clearing ratio of 1.6% and 0.84% respec-

tively. Total RECs redeemed this month was approx. 1 Lakh RECs lower with respect to May’15.

For past trading history - CLICK HERE


10,907,254 10577625

1109168511369387

338,899 578001537160

1169826

654,985

55612256579 161,845

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Mar-15 Apr-15 May-15 Jun-15

Non-Solar RECs

Available Issued Redemmed

5.26%

0.72%

3.64%

1.61%

6.82%

0.32%

0.89%

0.84%

0.00%

2.00%

4.00%

6.00%

8.00%


Non-Solar Clearing %

IEX PXIL

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


REC Trade Report - June 2015

Analysis 5th Amend-

ment to REC Reg. RPO Map Green News REC Project Stats REC Trade Report

Regulatory

Updates



Solar RECs

RECs redeemed this month remained at 23,648 REC’s. The clearing ratio was 1.4% and 0.17% in IEX and PXIL respec-

tively. Solar REC traded this month were approximately 60 (sixty) thousand lower w.r.t to May trading session.

For more details please visit our blog-post here.


For past trading history - CLICK HERE

3.89%

0.68%

5.51%

1.38%

4.85%

0.23%

0.40%

0.17%0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%


Solar Clearing %

IEX PXIL

1,554,388 1599598

18230982024013

114,192 232256 284104 251105

68,982 8522

8318923648

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000


Solar RECs

Available Issued Redemmed

http://reconnectenergy.com/blog/2015/06/rec-trade-results-june-2015/


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

REC Project Status - As on 4th May, 2015

Analysis 5th Amend-



Registered Capacity

4780 MW


Projects Registered

Source wise

All figures

in MW

Biomass

696

Solar

PV 574

Wind

2311 Bio-fuel

Cogeneration

901.5


Small Hydro

296

Projects Registered State wise (MW)

2 23

117

4369

364

730

84 83

398

202

1,040

168

2

137

23

1,205

27 35 24 50

200

400

600

800

1000

1200

1400


Green News - National

Analysis 5th Amend-




IFC turns focus on renewable energy funding

The International Finance Corporation (IFC), part of theWorld Bank Group, is refocusing its power sector investment

strategy and would soon invest in renewable and hydropower projects in India. It has made equity and debt invest-

ment in wind and solar segments and is now looking at corporate debt finance. IFC has invested $275 million in

debt and $47 million in equity in wind and solar energy projects in India. Source: Business Standard

SoftBank, partners eye $20 billion investment in Indian solar projects

Japan's SoftBank Corp, together with Bharti Enterprises and Taiwan's Foxconn, will invest about $20 billion

in solar projects in India, in one of the biggest investment pledges to date in the country's renewable energy sector.

SoftBank, which previously said it would invest $10 billion in India over time, said on Monday the companies had

agreed a minimum commitment of generating 20 gigawatts of energy. Source: Reuters.

India’s solar push faces challenges

India’s target to achieve 1 lakh megawatt (MW) of solar energy capacity by 2022 got a shot in the arm recently with

the SoftBank Corp.-led venture announcing plans to develop 20,000 MW of solar energy generating capacity in the

country. Currently, renewable energy constitutes less than 13% of India’s power generation capacity.

Source: Live mint.

Incentives from govt. key to boost renewable energy: SBI The government on Thursday raised the solar power generation capacity addition target to 1,00,000 MW by 2022,

which will entail an investment of around Rs. 6 lakh crore. State Bank of India (SBI) has committed Rs 20,000 crore

worth projects over the next five years. SBI is the largest contributor to the Renewable Energy Mission 2022.

Source: Moneycontrol.

Cabinet approves raising solar power to 100,000 MW "In an important decision, the Cabinet Committee on Economic Affairs (CCEA) decided that solar power capacity in

the country is to go up five times to 1 lakh megawatt by 2022," Telecom Minister Ravi Shankar Prasad told report-

ers here while briefing them on the cabinet meeting. "This is a giant step and India will become the biggest produc-

er of solar power in the world," he added. Source: Business Standard.

Maharashtra government to allow wind energy project developers to upgrade tech

To ensure better capacity utilisation of wind energy projects and help them generate power at higher efficiency, the

state government is planning to allow these project developers to upgrade their technologies. Maharashtra has

4,442.05 MW installed capacity in the wind energy sector, which forms a bulk of its 6,702.93 MW renewable ener-

gy capacity. Source: DNA India.

'Solar is emerging a competitor to wind energy'

The competition for wind is solar, said Rajesh Lakhoni, Principal Secretary, Energy, Government of Tamil Nadu, to-

day. Delivering the Special Address at the 4th International Wind Conference and Exhibition now under way at the

Codissia Trade Fair Complex Lakhoni told the participants that solar, due to its inherent advantages of being availa-

ble all round the year (though only for 8 to 10 hours a day), involves no distribution cost (as it is available near the

load centre), falling cost - is emerging a competitor to wind energy. Source: Hindu Business Line.

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http://in.reuters.com/article/2015/06/22/softbank-india-solar-idINKBN0P217I20150622

http://www.livemint.com/Money/7k0mIowsczm41YmhXBQ4jK/Challenges-facing-Indias-solar-push.html

http://www.moneycontrol.com/news/economy/incentivesgovt-key-to-boost-renewable-energy-sbi_1537941.html

http://www.business-standard.com/article/news-ians/cabinet-approves-raising-solar-power-to-100-000-mw-115061700700_1.html

http://www.dnaindia.com/mumbai/report-maharashtra-government-to-allow-wind-energy-project-developers-to-upgrade-tech-2098228

http://www.business-standard.com/article/economy-policy/ifc-turns-focus-on-renewable-energy-funding-115060800714_1.html

http://www.thehindubusinessline.com/economy/solar-is-emerging-a-competitor-to-wind-energy/article7339201.ece


India’s RPO Map

Analysis 5th Amend-



* 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.

States

2015-16 RPO

Obligation

(Non Solar)

2015-16 RPO

Obligation

( Solar)

Andhra Pradesh 4.75 % 0.25 %

Assam 6.75 % 0.25 %

Arunachal Pradesh 6.80 % 0.20 %

Bihar 325 % 1.25 % Chhattisgarh 6.25 % 1.0 %

Delhi 7.30 % 0.30 %

Gujarat 7.5 % 1.5 %

Haryana 3.12 % 0.38%

Himachal Pradesh 11.00 % 0.25 %

J&K 6.0 % 1.50 %

Jharkhand 3.00 % 1.00 %

Karnataka 10.00 % * 0.25 % *

Kerala 4.58% 0.25%

Madhya Pradesh 6.00 % 1.00 %

Maharashtra 8.50 % 0.50 %

Meghalaya 1.09 % 0.41 %

Odisha 6.70 % 0.30 %

Punjab 3.9% 1.0%

Rajasthan 8.20 % 2.0 %

Tamil Nadu 10.00 % 1.0%

Tripura 9.90 % 1.10%

Uttarakhand 8.00 % 0.10 %

Uttar Pradesh 5.00 % 1.00 %

West Bengal 4.80 % 0.20 %

Goa & UTs 2.70 % 0.85 %

Manipur 4.75 % 0.25 %

Mizoram 14.75 % 0.25 %

Nagaland 7.75 % 0.25 %



About REConnect

Analysis 5th Amend-



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.

Our other prime area of focus is, facilitating Private PPAs (OTC) by bringing RE Generators and HT Con-

sumers onto a single platform called Clickpower.in, which we have developed specifically for this pur-

pose. It is India’s First Green Energy Marketplace.

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) and IIT Kharagpur.

For more details of services provided and profile of the management team, please visit our website.


Contact Details

Bangalore:

Vishal Pandya

[email protected]

No. 2, Victor Mansion , 2nd floor, Ko-

dihalli, 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:

Vignesh A. (+91 8500265841)

[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]

Renewable Regulatory Fund (RRF):

Siddhartha P. (+91 9916994349)

[email protected]

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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.

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