India’s Largest REC Trading Company

OPEN ACCESS

July 2014

Volume - 43

From Management‘s Desk

The government has announced reinstatement of Accelerated Depreciation

(AD) on wind projects. This is a major development in the renewable ener-

gy industry. In this volume of “OPEN ACCESS” we have analysed the effect

of Accelerated Depreciation on Wind and Solar. AD has been a key market

driver of growth in wind industry in the past, and more recently in the solar

market. Our analysis suggests that the reinstatement of AD on wind pro-

jects will shift the balance in favour of wind investments at the cost of solar

due to more mature policies in states and better tariffs.

Another important development was announcement of the Phase 2, Batch

2 scheme of JNNSM, a total of 1500 MW for 2014-15 and 2015-16. But due

to uncertainty in governments decision on Anti Dumping duty, the Solar

Market stakeholders are not too optimistic.

Maharashtra has released their Wind Energy Policy, 2014. The policy objec-

tive is to promote wind energy in the state and to create opportunity for

MSEDCL to fulfil its Non-Solar RPO. Maharashtra has also opened up to

Solar Open Access and has specifies conditions for the same.

Forum of Regulators, along with MNRE, have discussed the issues related

to RPO. MNRE stressed upon stricter guidelines for RPO.

REC trading in July 2014 continued its poor run in Non-Solar RECs. Volume

traded was among lowest in three years. However, Solar RECs witnessed a

jump in demand of more than 3 times as compared to last month. More

details are covered in relevant section.

We hope this volume to be an insightful read, and as always, look forward

to your feedback.

- Team REConnect

CO

NT

EN

T

Analysis of AD for wind

and its reinstatement in

2014

Regulatory Updates

REC Trade Results

REC Project Stats

Green News

About REConnect

Analysis of AD for wind and its reinstatement in 2014

Analysis of AD

for wind About REConnect Green News REC Project Stats REC Trade Report Regulatory Updates

www.reconnectenergy.com Page 1

38.6%

REC Market

Share in July

PAN

India

Presence

2.1 GW

Projects under

management

Managing REC

Projects in

16

States

Reinstatement of Accelerated Depreciation benefit

for wind and its impact on the Renewable Energy in-

dustry

Earlier this month, after the Union Budget was present-

ed, there was a mention of reinstatement of Accelerat-

ed Depreciation ( AD ) for Wind Energy generators, in

the Hindi version of the budget, whereas it found no

mention in the English version. This caused confusion

in the RE industry circles. However, the government

clarified that AD has indeed been brought back on

wind investments.

Wind Power development in India started in the early

90s. As per Section 80(J) of Income Tax Act 1961, in-

dustries were allowed 80% depreciation on capital in-

vested. Since then till 2012 (when the benefit was re-

moved), Wind Power development and growth has al-

ways relied primarily on Accelerated Depreciation (AD).

New wind capacity additional peaked in 2011-12 at

about 3,200 MW, falling sharply to 1,700 MW the next

year as AD benefits were removed. The argument put

forward at that time by policy makers was that wind

industry had matured, and the focus needed to shift to

solar. This fits well with the objectives of the National

Solar Mission.

The decline in wind investment due to withdrawal of

AD coincided with healthy growth of

close to 60% in Solar Power in 2012-13 and 2013-14.

The market momentum had definitely shifted in favor

of Solar. Our analysis suggests that Wind AD market

had an investible capital of close to 7300 crores. This

shifted to Solar AD market which saw increase in in-

vestments worth Rs 7500 crores during 2012-13.

The new government has announced that it was rein-

troducing AD (80%) in 2014, much to the delight of

Wind Power stakeholders. We believe that the invest-

ment momentum will shift again to wind due to more

mature policies and attractive tariffs.

Wind tariff in recent years have become very attrac-

tive and are close to solar tariff in many states. In Raja-

sthan, Maharashtra and MP, tariff in the range of Rs. 5,

whereas solar tariffs are generally in the range of Rs. 6,

leaving a very small gap.

With this, there will certainly be a diversion in invest-

ments from Solar to Wind power in the times to come.

Our analysis puts the AD in-

vestible capital, over 7300

Crores.

The market is expected to

shift in favor of Wind Power

Analysis of AD for wind and its reinstatement in 2014

Analysis of AD

for wind About REConnect Green News REC Project Stats REC Trade Report Regulatory Updates

www.reconnectenergy.com

38.6%

REC Market

Share in July

PAN

India

Presence

2.1 GW

Projects under

management

Managing REC

Projects in

16

States

Parameter Wind Solar

Preferential

Tariffs Are existent in all wind states Most states have reverse bidding schemes

Extent of PPA

by States Unlimited Generally capped

Poor REC Mar-

ket and weak

RPO compli-

ance

Will not significantly affect wind industry.

RPO compliance is relatively easier due

to lower Non-Solar costs. Uncertainty in

timeline of proposed REC price.

Will significantly affect solar industry as they rely

heavily on REC markets. RPO compliance is difficult

due to high Solar costs. Uncertainty in timeline of

proposed REC price.

Wheeling &

Banking Bene-

fits & Open Ac-

cess

Well defined in many states Not well defined in many states

Anti-Dumping

Duty

Wind industry will not be

Affected. Solar costs will go up significantly.

Forecasting and

Scheduling

Mandatory (No UI and Financial implica-

tions as of now on the projects) Mandatory (No UI implications on the projects)

The Green dots reflect the advantage to the sector.

Regulatory Updates

Analysis of AD

for wind About REConnect Green News REC Project Stats REC Trade Report Regulatory Updates

www.reconnectenergy.com Page 3

MNRE issues draft guidelines for JNNSM phase-2

batch-2 scheme

MNRE (Ministry of New and Renewable Energy), has offi-

cially issued Draft Guidelines for selection of 1500 MW

Grid Solar PV power projects under National Solar Mis-

sion, Phase-II Batch-II Scheme.

Here are some key points of the proposed scheme:

It is to be carried out by NVVN (NTPC Vidyut Vyapar

Nigam Limited) through a transparent, tariff based

reverse bidding process.

NVVN shall enter into suitable Power Purchase Agree-

ment (PPA) with Solar Power Developers and Power

Sale Agreement (PSA) with Distribution Companies/

Utilities/ other Bulk Consumers.

There will be two bid tranche: 750 MW in 2014-15,

and remaining 750 MW in 2015-16.

Projects with minimum capacity of 10 MW and maxi-

mum capacity of 50 MW, and connection level with

transmission utilities at 33kV and above, shall be per-

mitted to bid.

A company can only bid for a maximum capacity of

100 MW per tranche.

DCR to be 500 MW out of the total 1500 MW. It was

50 % (375 MW) in Phase-II Batch-I scheme.

Interested stakeholders are required to send their com-

ments by 23rd July, 2014.

It is interesting to note that out of the target capacity of

9000 MW in Phase 2 (2013-2017), 750 MW bids have

been successfully completed, and as per this scheme 1500

MW bids will be completed by 2015-16. That leaves just 2

years i.e. 2016-17 and 2017-18 for the remaining 6750

MW of bid capacity.

Target achievement will be difficult but not impossible,

considering that by 2017 India aims to achieve Grid Parity

with respect to Solar Power, by extending the incentives

(concessional customs duty) given to the Solar manufac-

turing sector and inflow of funds from NCEF.

The draft document can be accessed here.

Our previous Blog on JNNSM Phase-II Batch-I can be ac-

cessed here.

Forum of Regulators discusses Issues of RPO

Forum of Regulators (FOR) held its 41st meeting on 27th

June 2014, in Delhi. The Ministry of New and Renewable

Energy (MNRE), through a presentation, raised several

issues concerning Renewable Purchase Obligation (RPO).

The Key issues highlighted in the presentations are as

below:

MNRE suggested that the validity REC’s should be

extended by 6 months, arguing that a total of 50059

REC’s will expire in next six months.

MNRE could consider purchasing the unsold REC’s by

using National Clean Energy Fund.

The Floor price of Solar REC’s can be reduced due to

drastic change (reduction) in Solar PV tariffs over last

three years.

Giving “MUST RUN” status to RE generation, so that

total RE generation could be evacuated, and have a

provision of “Deemed Generation” in case SLDC

asked RE generators to back down.

Due to poor RPO compliance, the members agreed

upon the need of strong RPO enforcement.

RPO compliance cost should be allowed in ARR

(Average Revenue requirement).

The issue of allowing DISCOM’s to purchase REC’s for

procuring Renewable Energy beyond their RPO tar-

gets was also discussed.

The forum suggested that a concept of Renewable

Generation Obligation (RGO) for conventional Ther-

mal power plants need to be introduced.

Suggestions were given on considering power gener-

ated from Large Hydro Projects as Renewable Ener-

gy.

The Forum also suggested that the concept of Hydro

Power Obligation should be introduced.

From the issues discussed in the meeting it can be de-

duced that the regulators may come up with strong

steps towards RPO compliance. Also, the regulators are

set to promote RE generation by making provision for

providing proper transmission network for RE genera-

tion.

More information can be accessed here.

India’s largest REC Trading Company

Regulatory Updates

Analysis of AD

for wind About REConnect Green News REC Project Stats REC Trade Report Regulatory Updates

www.reconnectenergy.com Page 4

Haryana hikes Cross Subsidy Surcharge

In a move that will make open access non-viable for con-

sumers in Haryana, cross-subsidy for all the categories of

consumers in Haryana has been hiked significantly. The

increase is in the range of 83% to 281%, making it more

difficult to sourcing power through open access.

In the recent tariff order released by Haryana Electricity

Regulatory Commission (HERC) on 29th May, 2014, the

cross-subsidy surcharge has been hiked significantly, as

shown in the graph and table below:

Apart from the extremely high cross-subsidy surcharge,

consumers have also been burdened with an additional

surcharge of Rs 0.50/kWh. HERC has levied the additional

surcharge with respect to the stranded capacity due to

the open access consumer availing power from alternate

sources.

For details on CSS click here .

MERC Allows Solar Open Access in Maharashtra

MERC (Maharashtra Electricity Regulatory Commission)

through an order on 6thMay 2014, has allowed Open Ac-

cess for the Solar Power in Maharashtra.

The order has come in response of a petition filed by GEA

(Green Energy Association – an association whose mem-

bers are investors in Solar REC space), wherein GEA has

requested MERC to direct MSEDCL to issue the Open Ac-

cess permissions to the solar power generators of the

state and also to issue credit notes for the energy injected

by the solar generators into the system till date.

The Regulatory Commission said that petition filed by

GEA stands disposed of, citing the reason that MSEDCL

cannot be partial towards any particular RE Source, and it

has already granted Solar OA permission to BEST in

Mumbai.

However the Commission has directed MSEDCL to allow

the Open Access through solar generator as single

source only, as Distribution OA through multi source is in

the process of amendment. The Commission also di-

rected MSEDCL to continue the procedures followed for

allowing Open Access permissions through RE genera-

tors during previous financial year, and to issue all pend-

ing credit notes till date.

The detailed MERC order can be accessed here.

KERC Amends Open Access-W&B Charges for RE

Generators

Karnataka Electricity Regulatory Commission (KERC),

through its order on 04th July 2014, has amended the

KERC (Terms and Conditions for Open Access) Regula-

tion, 2014 and has computed the wheeling and Banking

charges for Renewable energy generators.

The commission issued a discussion paper on 11th June

2014, and invited comments and suggestion from stake-

holders. On 25.06.2014, the commission held a public

hearing during which many RE generators requested the

commission to either maintain the W&B charges at the

current level or to reduce it, stating the reasons that Kar-

nataka is an energy deficit state and RE power being dis-

tributed power, will reduce the need for additional trans-

mission network.

In the view of the above, the commission’s final order is

as follows:

The wheeling charges shall continue to be 5% of the

injected energy for Wind, Mini Hydro, Biomass and

Bagasse Cogeneration plants.

The banking charges shall continue to be 2% the in-

jected energy and is applicable for Wind and Mini

Hydro projects only.

The annual banking facility shall continue for Wind,

Mini Hydro and Solar energy projects, under Non-

REC mode.

W&B charges and CSS shall continue to be exempted

for Solar projects till 31st March 2018, under Non-REC

mode.

India’s largest REC Trading Company

Regulatory Updates

Analysis of AD

for wind About REConnect Green News REC Project Stats REC Trade Report Regulatory Updates

www.reconnectenergy.com Page 5

The banked energy at the end of the financial year

shall be purchased by distribution licensee at 85% of

the generic tariff determined by the commission in its

latest order.

The commission has also decided to discontinue the

additional UI charges payable between the time of

Injection and time of Drawal, for both existing as well

as the new projects availing the banking facility.

The normative wheeling and banking charges applica-

ble for Non-RE generators, will also be applicable for

Captive RE generators availing REC’s

The charges shall be applicable to the above mentioned

renewable energy projects commissioned on or before

31.03.2014, and shall be valid for a period of 10 years

from the date of commissioning of projects or units.

On requests of solar generators, to extend the period of

applicability beyond 2018, the commission has issued a

discussion paper in this regard, and has invited com-

ments till 22nd July 2014.

Click here for more details on the order.

Maharashtra (MSEDCL) Wind Energy Policy, 2014

Maharashtra State Electricity Distribution Co. Ltd.

(MSEDCL) has come up with its wind energy policy in con-

sultation with the MEDA (Maharashtra Energy Develop-

ment Agency) in order to promote the wind energy gen-

eration in the state. The policy was notified on 3rd June,

2014, and will be applicable on projects commissioned in

FY 2014-15 and onwards.

This can be taken as a positive step by MSEDCL towards

RPO compliance. Under the PPA, the entire power pro-

duced will be sold to MSEDCL. Since power is to be sold

at tariff determined under PPA with MSEDCL, therefore

the projects cannot avail REC’s.

Processing Fee – The wind power developer has to sub-

mit a non-refundable processing fee of Rs. 1.00 Lac per

MW of grid connectivity. Extension of 6 months shall be

granted on valid grounds as per directives of MSEDCL. If

the generator fails to commission the project within ex-

tended period, they will have to re-apply for grid connec-

tivity.

MSEDCL has also set up time limits for connectivity per-

mission as given below:

India’s largest REC Trading Company

Deposit – The wind project developer has to submit a

Performance Bank Guarantee of Rs. 5.00 Lacs per MW for

sanction of gird connectivity, towards security deposit.

Wind Power Scheduling – It is mandatory for the gener-

ator to forecast and schedule the power produced, as per

CERC guidelines.

More details on the order can be read here.

Karnataka: Approved Tariff for Biomass Projects

Karnataka Electricity Regulatory Commission (KERC)

through an order on 10th July 2014, has determined tariff

for Air Cooled Condenser based Biomass Projects. The

order has come in response of a petition filed by M/s Ha-

veri Bio Energy Pvt. Ltd.

A hearing was held on 15th May 2014. After hearing all

the respondents the commission approved the final tariff,

the details of which is shown below:

The average of the tariffs works out to be Rs. 5.54/KWh.

This tariff shall be applicable for all the Air Cooled Con-

denser based Biomass Projects achieving commercial op-

eration in the period from 01.04.2014 to 31.03.2018.

The relevant order can be accessed here.

RERC Draft Solar Tariff Policy for FY 2014-15

Rajasthan Electricity Regulatory Commission (RERC) on

23rd June 2014, has proposed a levellized tariff under a

draft regulation (RERC Terms & Conditions for Determi-

nation of Tariff for Renewable Energy Sources – Wind and

Solar Energy Regulations, 2014) issued for Solar power

Capacity Time Limit for Commissioning

Up to 50 MW 15 Month + 6 Month Exten-

sion

Above 50 MW and up to

150 MW

21 Month + 6 Month Exten-

sion

Above 150 MW 30 Month + 6 Month Exten-

sion

Year 1st Year

2nd Year

3rd Year

4th Year

5th Year

6th Year

7th Year

8th Year

9th Year

10th Year

Tar-iff Rs./Unit

5.15 5.21 5.29 5.37 5.46 5.55 5.66 5.78 5.9 6.04

Regulatory Updates

Analysis of AD

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India’s largest REC Trading Company

generators of the state. The brief summary of the pro-

posed draft is as below -

RERC has invited the comments and suggestions by 18th

July 2014, and a hearing on the matter will be held on

31st July 2014 at RERC’s office, Jaipur.

The tariff proposed for FY 14-15 is lower than the tariff of

previous year in case of Solar PV and Rooftop Solar PV,

and is higher in case of Solar Thermal Power Plants. It can

be said that the reason behind the reduction in the tariff

of Solar PV is because of decreasing prices of Solar PV

cells and overall project execution cost.

The RERC draft order can be accessed here .

RERC Approves APPC for Rajasthan Discoms

Rajasthan Electricity Regulatory Commission (RERC) in its

orders dated 21st July 2014, has approved the Average

Power Purchase Cost (APPC) for its DISCOM’s. Honoura-

ble commission approved APPC of FY 12-13 & FY 13-14

for Jodhpur Discom and APPC of FY 13-14 for Jaipur Dis-

com.

The Order came in response of petitions filed by the Dis-

coms for the approval of the APPC. The details of the ap-

proved APPC are highlighted below:

Previously commission in its order on 12th Dec 2012 de-

termined a provisional APPC at Rs. 2.75/Unit for FY 12-13

for which the Jodhpur Discom through a petition request-

ed commission to revise the provisional APPC (which has

now been approved at Rs. 2.67/unit). While no APPC was

determined for FY 13-14.

A graph below is showing the APPC’s approved over last

three years:

It is evident from above that the APPC for Jodhpur Dis-

com is less in case of FY 12-13 compared to FY 11-12,

which is because the commission in its order determined

provisional APPC for FY 11-12 at Rs. 2.57/unit ,for which

Jodhpur Discom, in 2013, requested commission to revise

and to approve the APPC at 2.73 Rs./unit, which the com-

mission approved on 03rd December 2013.

It is quite evident that the commission has approved a

higher APPC for Ajmer Discom compared to Jaipur Dis-

com, whereas their APPC was the same for the previous

two FY. The difference, as quoted by JUVVNL, is because

of the variation in the time period of bills received and

payments made by each discom, for purchase of power

from Rajasthan Discoms Power Procurement Center

(RDPPC).

S.

No

.

Particulars

Tariff

(Rs./

kWh) if

AD ben-

efit is

not

availed

Tariff (Rs./

kWh) if

AD benefit

is availed

1

Solar Photo Voltaic (PV)

Power Plants commissioned

by 31.3.2016

7.39 6.52

2 Solar Thermal Power Plants

commissioned by 31.3.2017 11.65 10.23

3

Roof Top Solar PV installa-

tions and other small solar

PV power generation plants

to be commissioned by

31.3.2016

7.39 6.52

4

Small Solar Thermal Power

generation plants to be com-

missioned by 31.03.2017

11.65 10.23

DISCOM Year approved APPC

Jodhpur Discom 2012-13 2.6713

Jodhpur Discom 2013-14 3.078

Jaipur Discoms 2013-14 3.0865

Regulatory Updates

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Updates

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India’s largest REC Trading Company

The order for Jaipur Discom APPC FY 13-14 can be ac-

cessed here.

The order for Jodhpur Discom APPC FY 13-14 can be ac-

cessed here.

The order for Jodhpur Discom APPC FY 12-13 can be ac-

cessed here.

APTEL’s verdict on inclusion of Banked Energy in ac-

counting APPC

Appellate Tribunal for Electricity (APTEL) in a judgment on

01st July 2014 has dismissed a petition filed by Himalaya

Power Producers Association (Association of persons who

are involved in the development and promotion of hydro

power projects in Himachal Pradesh).

The summary on the petition and the judgement can be

found in below mentioned points:

The Association through petition requested before

APTEL that the State Commission has erroneously in-

cluded electricity procured through banking (banked

energy) for the calculation of Average Pooled Power

Purchase Cost (APPC) for FY 13-14.

The Association argued that such inclusion of Banked

energy in the determination of APPC leads to an artifi-

cially reduced APPC, which is threatening the Renewa-

ble Energy Generators in the state.

After hearing all the respondents, the Tribunal dis-

missed the appeal of the Association saying that the

state commission has legally and correctly included

the banked energy in the determination of the APPC

for FY 13-14, citing regulatory reasons in support of

the method followed by the state commission.

This order also gives a detailed insight into what is Bank-

ing of Energy, and its effect on calculation of APPC.

The more details on the APTEL judgment can be ac-

cessed here.

Our previous blog post on Himachal Pradesh APPC can be

read here.

CSERC Drafts RE Tariff for FY 2014-15

Chattisgarh State Electricity Regulatory Commission

(CSERC) has released a draft on 18th July 2014 for the de-

termination of preferential tariff for Renewable Sources of

Energy. The commission has invited comments and sug-

gestions latest by 12th August 2014 and a public hearing

will be held for the same on 22nd August 2014.

The details of the proposed tariff are highlighted in the

table below:

The tariff proposed by the CSERC is in line with the tariff

determined by CERC (Refer). CSERC has reduced the solar

tariff compared to previous years, whereas there is slight

increase in tariffs of other RE sources.

The CSERC draft can be accessed be here.

- End of the article -

RE Technology

Levellised

Total Tar-

iff Rs/kWh

Wind Energy Power Projects

Wind Energy: Annual Mean Wind Power

Density (W/m2) up to 200 (Wind Zone 1) 6.36

Wind Energy: Annual Mean Wind Power

Density (W/m2)=201-250 (Wind Zone 2) 5.78

Wind Energy: Annual Mean Wind Power

Density (W/m2)=251-300 (Wind Zone 3) 5.08

Wind Energy: Annual Mean Wind Power

Density (W/m2)=301-400 (Wind Zone 4) 4.24

Wind Energy: Annual Mean Wind Power

Density (W/m2)>400 (Wind Zone 5) 3.97

Mini/Micro Hydro and Small Hydro Power Projects

Up to 2 MW (Mini/Micro Hydro) 5.79

Below 5 MW 5.29

5 to 25 MW 4.5

Biomass based Power Projects

Fixed Cost 2.58

Variable Cost for FY2014-15 3.96

Non-Fossil Fuel based Co-Generation Projects

Fixed Cost 3.64

Variable Cost for FY2014-15 3.34

Solar Power Projects

Solar PV 7.74

Solar Thermal 11.91

REC Trade Report - July 2014

Analysis of AD

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Regulatory

Updates

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India’s largest REC Trading Company

Non Solar RECs

In July 2014, Demand and clearing ratios touched one of the lowest points in three years. Demand in July was 31809,

compared to 139454 in June (down 77.2% over June) and down 80.3% from July last year. Clearing ratios at IEX

was .32%, whereas at PXIL it was .45%.

The total transactional value of non-solar RECs was INR 47.7 million, down from close to 200 million in June. The

closing balance of REC inventory for non solar RECs stood close to 85.2 million mark this month.

:

For more details please visit our blog-post here.

For past trading history - CLICK HERE

5515639

65066296959614

7218712

1070344482240 398552

1337695

79354 29255 139454 318090

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

April May June July

Non-Solar RECs

Available Issued Redemmed

0.57%0.54%

1.60%

0.32%

2.29%

0.36%

2.33%

0.45%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

April May June July

Non-Solar Clearing %

IEX PXIL

REC Trade Report - July 2014

Analysis of AD

for wind About REConnect Green News REC Project Stats REC Trade Report

Regulatory

Updates

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India’s largest REC Trading Company

Solar RECs

In July 2014, demand improved staggeringly from 1654 RECs last month to 6633 RECs. As a result, clearing ratios im-

proved as well – 0.28% in IEX and a whooping 5.5% on PXIL, albeit on very low demand compared to existing inven-

tory.

The total transactional value of Solar RECs was INR 61.5 million. The closing balance of REC inventory for Solar RECs

stood close to 27.5 million mark this month.

For more details please visit our blog-post here.

For past trading history - CLICK HERE

140338

183082

213738

239871

4373332776 27787

42245

989 2120 1654 6633

0

50000

100000

150000

200000

250000

300000

April May June July

Solar RECs

Available Issued Redemmed

0.56%

0.26%

0.43% 0.28%

0.48%

4.90%

1.15%

5.50%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

April May June July

Solar Clearing %

IEX PXIL

REC Project Status - As on Aug 5th, 2014

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Registered Capacity 4460

MW

India’s largest REC Trading Company

Projects Registered

Source wise

All figures

in MW

Secu-

rity

Biomass

705

Small Hydro

288

Solar PV

496

Wind

2223 Bio-fuel

Cogeneration

745

Projects Registered

State wise (Figures in MW)

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India's wind power potential over one lakh MW: Govt.

An assessment by the Ministry of New and Renewable Energy has estimated that the total wind power potential

of Indiawas over one lakh MW, the Lok Sabha was told today. In his written reply, Minister of State for Power, Coal

& New and Renewable Energy Piyush Goyal said, a wind resource assessment programme has been implemented

by the ministry through the Centre for Wind Energy Technology (C-WET) to estimate the wind potential in the

country and identify suitable sites of installation of wind power programme. Source: Business Standard.

India’s Uttar Pradesh Plans 300-Megawatt Solar Auction

India’s Uttar Pradesh state has invited companies to bid for contracts to build 300 megawatts of solar photovoltaic

capacity. Companies must submit their bids by Sept. 8, the Uttar Pradesh New and Renewable Energy Development

Agency said in a notice on its website. Separately, the agency is planning another auction of 20 megawatts aimed

at developers seeking smaller projects of less than 5 megawatts, Namrata Kalra. Source: Bloomberg.

India's largest ultra mega solar power plant planned in Madhya Pradesh

Plans are afoot to set up the country's largest ultra mega solar power plant (UMSPP) in Madhya Pradesh's Rewa

district, a senior official said on Thursday. The plant, to produce 700 MW of electricity, would require an investment

of Rs 4,000 crore, state's additional chief secretary for new and renewable energy S R Mohanty told PTI. Source: The

Times of India

Antidumping duty: Finance Ministry considering DGAD view on solar cells

Finance Ministry is considering the suggestions of Director General of Antidumping and Allied Duties to impose

duty on imports of solar cells, Parliament was informed today. DGAD has stated in its findings that solar cells, mod-

ules or panels have been exported to India from China, Taipei, Malaysia and USA below the normal value, resulting

in the dumping of the product. Source: The Economic Times.

MNRE bats for strict renewable power obligation compliance

The ministry of new and renewable energy sources (MNRE), headed by Piyush Goyal, has pleaded the state electric-

ity regulatory commissions to consider exercising their statutory authority and issue directions to state distribution

companies (discoms) for ensuring renewable power obligation (RPO) compliance. Source: Business Standard

Power ministry, regulators contemplate ways to develop renewable energy

Electricity regulators and power ministry are contemplating steps to make it mandatory for conventional power

project developers to set up renewable energy plants in future, while distribution firms may have to purchase more

clean energy, but regulatory authorities are concerned that this may hurt loss-making utilities Source: Economic

Times

Why India’s RPO mechanism is failing

In India, the renewable energy certificate (REC) mechanism, introduced in 2010, is a market-based instrument to

promote renewable energy and facilitate compliance of renewable purchase obligations (RPOs). It is aimed at ad-

dressing the mismatch between availability of renewable energy resources in a state and the requirement of the

obligated entities to meet the RPO. Source: Financial Chronical

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India’s RPO Map

Analysis of AD

for wind RPO Map Green News REC Project Stats REC Trade Report Regulatory Updates

www.reconnectenergy.com Page 12

* BESCOM,MESCOM, CESC - 10 % + 0.25%, HESCOM, GESCOM, Hukkeri Society - 7 % + 0.25%.

Status of Regulation - Final for all states except -

Draft for Goa & UT( 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

2014-15 RPO

Obligation

(Non Solar)

2014-15 RPO

Obligation

( Solar)

Andhra Pradesh 4.75 % 0.25 %

Assam 6.75 % 0.25 %

Arunachal Pradesh 6.80 % 0.20 %

Bihar 4.25 % 0.75 %

Chhattisgarh 6.00 % 0.75 %

Delhi 5.95 % 0.25 %

Gujarat 6.75 % 1.25 %

Haryana 3.00 % 0.25 %

Himachal Pradesh 10.00 % 0.25 %

J&K 5.25 % 0.75 %

Jharkhand 3.00 % 1.00 %

Karnataka 10.00 % * 0.25 % *

Kerala 4.39 % 0.25 %

Madhya Pradesh 6.00 % 1.00 %

Maharashtra 8.50 % 0.50 %

Meghalaya 0.60 % 0.40 %

Odisha 6.25 % 0.25 %

Punjab 3.81 % 0.19 %

Rajasthan 7.50 % 1.50 %

Tamil Nadu 11.00 % 2.00 %

Tripura 2.50 % 1.05%

Uttarakhand 7.00 % 0.075 %

Uttar Pradesh 5.00 % 1.00 %

West Bengal 4.35 % 0.15 %

Goa & UTs 2.70 % 0.60 %

Manipur 4.75 % 0.25 %

Mizoram 14.75 % 0.25 %

Nagaland 7.75 % 0.25 %

India’s largest REC Trading Company

About REConnect

Analysis of AD

for wind RPO Map Green News REC Project Stats REC Trade Report Regulatory Updates

www.reconnectenergy.com Page 13

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 con-

tract structuring, advisory to monetization 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 Consumers onto a single platform called Clickpower, which we have developed

specifically for this purpose. 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

Vishal.Pandya@reconnectenergy.com

No. 2, Victor Mansion , 2nd floor,

Kodihalli, Old Airport Road,

HAL 2nd Stage (PO),

Bangalore—560008

O : 080 - 6547 3383 / 84

New Delhi:

Vibhav Nuwal

Vibhav.Nuwal@reconnectenergy.com

C– 503, 5th Floor, Nirvana court-

yard, Nirvana Country, Sector 50,

Gurgaon 122018.

O : 0124 - 4103216

F : 080 - 30723571

Chennai:

Vishal Pandya ( +91 9620221101 )

Rajesh.Vaidyula@reconnectenergy.com

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

Road, West Mambalam,

Chennai - 600 033.

Hyderabad:

Bhanu Tejja ( +91 7799874036 )

Bhanu.Tejja@reconnectenergy.com

Solar Market:

Anurag Dhyani

(+91 7760300499 )

Anurag.Dhyani@reconnectenergy.com

India’s largest REC Trading Company

Mumbai:

Ram Kumar ( +919930359992 )

Ramkumar@reconnectenergy.com

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)

Chetan.Adhikari@reconnectenergy.com

Renewable Regulatory Fund (RRF):

Vineet Shastry (+91 9972290511)

Vineet.Shastry@reconnectenergy.com

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