27
In this presentation
Renewable Energy in India
Introduction to REC Mechanism
Market snapshot
Voluntary REC Market
Trading @ IEX
Installed RE Capacity
Source: CEA , MNRE
329,203 MW Total Installed Capacity
as on 30th April’17
57,257 MW Renewable Installed Capacity
as on 30th April’17
Thermal
2,20,569 MW
Nuclear
6,780 MW
Hydro
44,594 MW
RES
57260 MW
Total Installed Capacity
Wind Power;
32,279
Small Hydro
Power ; 4,379
Biopower;
8,181
Solar; 12,288
Renewable Installed Capacity
REC Genesis:Separating green attribute from electricity
Un-bundled Green Power
Seller (RE power)
REC(Green Attributes)
Electricity
REC(Green Attributes) Buyer (RPO Compliance)
Electricity
Bundled Green Power
Seller (RE power) Buyer (RPO Compliance)
Issues
•Schedulability
•Uncertainty
•Transmission
Loss & Charge
Solution
•No geographic
barriers
• Reduced
transaction cost
•Flexibility in
meeting the RPO
Discoms, Power exchanges ,
Bilateral Contracts
REC Participants: Sellers/Eligible Entity
Identified Sources for RE
Wind Solar Small
Hydro
Biomass,
Biofuel,
Cogenera
tion
Municipal
Waste
Black
Liquor
Source
appro
ved by
MNRE
REC Market Participants:
Sellers/Eligible Entity
ELIGIBILITY CRITERIA
Self consumption
No promotional Banking/
Wheeling
ELIGIBLE
Sale through: Open Access/Bilateral
Sale at Mutually agreed price
ELIGIBLE
PPAs with distribution
licensee
PPA at APPC
ELIGIBLE
PPA at state regulated tariff
NOT ELIGIBLE
REC Market Participants : Buyers
Obligated Entities
• Distribution Companies
• Open Access Consumers
• Industries consuming Captive Power
Voluntary Entities
• Corporates under CSR
• Individuals
Mechanisms to fulfill compliance
Feed in Tariff
Regulated tariff
Purchase of electricity from RE
Generator at Regulated tariff
Purchase of RE at market price
Buy from third party
REC (Renewable Energy
Certificates) at PXs
Non Solar REC
Solar REC
Penalty for non compliance in the provisions
• If an obligated entity fails to comply with the RPO, it shall also be liable for penalty as may be decided by the commission under section 142 of Electricity Act, 2003:
• The Commission may direct the entity to deposit penal charges equivalent to the forbearance price of REC multiplied by shortfall in units of RPO
Salient Features of REC Mechanism
Participation Voluntary
REC Denomination 1 REC = 1 MWh
Validity 1095 Days after issuance*
Categories 1. Solar REC 2. Non-Solar REC
Trading Platform Power Exchanges only
Banking/Borrowing Not Allowed
Transfer Type Single transfer only , repeated trade of the same certificate is not
possible
Solar RECs* Floor Price: Rs 1000 /MWh
Forbearance Price: Rs 2400/MWh
Non-Solar RECs* Floor Price: Rs 1000/MWh
Forbearance Price: Rs 3000/MWh
Penalty for Non-compliance Forbearance Price (Maximum Price)
Price Guarantee Through Floor Price (Minimum Price)
*Vide CERC Order dated 30 March 2017 which is presently under stay by Supreme Court Order dated 08.05.2017
REC Mechanism
Procedure for ACCREDITION (Through State nodal Agency)
Procedure for REGISTRATION (Through Central Agency NLDC)
Procedure for ISSUANCE (Through Central Agency NLDC)
Procedure for TRADING & REDEMPTION(Through PXs)
Trading at IEX
Trading Day Last Wednesday of every Month
Market Clearing Closed Double sided auction
Trading Time 1300-1500 Hrs
By 1530 HrsVerification by Central agency for Valid REC by
cleared seller at IEX
Verification by Central agency for Valid REC by
cleared seller at IEX
By 1600 Hrs Central agency confirms REC
By 1630 Hrs IEX finalizes trade
By 1700 Hrs Buyer & Sellers informed to Central Agency
By 1800 Hrs Invoice raised (proof of REC trade)
10
0 R
EC
Bu
y
@ R
s 3
30
0BUY SELL
A 100 REC
@ Rs 3300
A 100 REC
@ Rs 1500
B 600 REC
@ Rs 2200
B 200 REC
@ Rs 1700
C 200 REC
@ Rs 1700
C 300 REC
@ Rs 2000
3300
200 REC buy @
1700
No of REC
Pri
ce i
n R
s/R
EC
2200
600
600 REC buy @ Rs2200
200 REC sell @
Rs 1700 300 REC sell @ Rs 2000
10
0 R
EC
Se
ll @
Rs
15
00
Cleared volume : 600 RECs MCP: Rs 2200/REC
Accreditation Fee & Charges
Application
Processing Fee
Rs. 5000
Accreditation
Charges (One Time –
for 5 Years)
Rs. 30,000
Annual Charges Rs. 10,000
Re-Validation Fees (After 5 Years
Rs. 15000
Registration Fee & Charges
Application
Processing Fee
Rs. 1000
Registration
Charges (One Time –
for 5 Years)
Rs. 5000
Annual Charges Rs. 1000
Re-Validation
Fees (After 5 Years
Rs. 5000
State Nodal Agency Central Agency
Issuance Fee & Charges
Fees Per REC
issued
Rs. 4.0
Central Agency
REC: Fee & Charges
Redemption Fee & Charges
Fees Per REC
traded
Rs. 20
IEX
REC Fee & Charges Impact
Assumptions:
• Project of Capacity = 1 MW
• Capacity Utilisation Factor = 22%
• No. of Units Generated = 1.927 MU
• No. of REC Issued = 1927
Cost Impact of Fee and charges in First Year
Cost Head REC @ 1500 REC @ 2600 REC @ 3300
Accreditation 45,000 45,000 45,000
Registration 7,000 7,000 7,000
Issuance 7,708 7,708 7,708
TOTAL COST 59,708 59,708 59,708
Revenue from
REC 28,90,800 50,10,720 63,59,760
% Cost
Incurred2.07% 1.19% 0.94%
Paise Impact
Per Unit
(kWh)
3.09 3.09 3.09
Similarly the cost impact (in Paise / Unit) for:
TWO Year THREE Year FOUR Year
2.03 Paise 1.68 Paise 1.5 Paise
Market Snapshot
An update on RECs
Source: REC registry India
As on 30th April 2017
Accredited
Capacity (MW)
Registered
Capacity (MW)
RECs Issued
(Lacs)
RECs Traded
so far (Lacs)
Inventory
(Lacs)
Non -Solar 4790 3805 338 Lacs 199 Lacs 128 Lacs
Solar 749 729 64 Lacs 16.57 Lacs 47.92 Lacs
Projects under REC Mechanism
RP : 3975 MW
AP : 4336 MW
As on : 4th January,2014
Source: REC registry India
As on
12th
Feb
,2014
As on
As
As on 2nd
July 2014As on 11th Aug’14As on 4th Sept’14As on 10th Dec’14As on 9th jan’15As on 12th Feb’15
Registration Capacity: 4,773 MW
Accreditation Capacity : 4,989 MW
Accredited Capacity : 5,056 MW
Registered Capacity : 4,785 MW
As on 30-04-17
1227
1009
347
351
137
634
161
24849
38104234
1222
1164
794
464
245
635
162
256
25 119104
353
State-wise RE
Capacity (MW)
Tamil Nadu Maharashtra Uttar Pradesh Gujarat Karnataka Rajasthan
Andhra Pradesh Madhya Pradesh Chhattisgarh Punjab Himanchal Pradesh Others
Registered Projects
Accreditated Projects
Projects under REC Mechanism
As on 31st October’2013
Source: REC registry India
As on 12th Feb 2014As on 6th March ,2014
As on 7th May 2014
As on 2nd July 2014As on 11th Aug’14As on 4th Sept’14As on : 14-10-14As on 7th Nov’14As on 10th Dec’14As on 12th Feb’15Accredited Capacity : 5,112 MW
Registered Capacity : 4,838 MW
As on 30-04-17
2440
529
583
252
7312
2693
1075
718
293
75010
Source wise RE capacity (MW)
Wind Bio-fuel cogeneration Biomass Small Hydro Solar Others
Accreditated Projects
Registered Projects
Accreditated Projects
Registered Projects
Key statistics: REC Market at IEX
Portfolios
State Utilities
Generators
Industrial Consumers
Cleared
Volume
17 States I 5 UTs
894
>1 Crore RECs
RECs
>1 Crore RECs
Highest: 12,87,814
RECs
2450
IEX Data as on 30th April 2017
3581
63%
37%
REC Market Share
IEX PXIL
Participation Details at IEX
As on 30 April 2017
Registered Participants 3576
Obligated Entity 2658
DISCOMs 33
OA consumers 2486
Captive Consumer 139
Voluntary 19
Eligible Entity (Sellers) 899
Captive
User;
106,760 ;
29%Distribution
Licensee;
20,000; 6%
Open Access
Consumer;
238,060;
65%
Voluntary
; 0; 0%
Non-Solar Buyer Mix FY 17-18
Captive
User;
23,444.00 ;
26%
Distribution
Licensee;
20,350.00 ;
23%
Open
Access
Consumer;
44,738.00 ;
51%
Voluntary
; 1; 0%
Solar Buyer Mix FY 17-18
N-Solar REC trade detail
0
200
400
600
800
1000
1200
1400
1600
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
Apr'16 May'16 Jun'16 July'16 Aug'16 Sept'16 Oct'16 Nov'16 Dec'16 Jan'17 Feb'17 Mar'17 April'17
Total Volume traded IEX-Volume traded PXIL- Volume traded Price @ IEX Price @ PXIL
Solar REC trade detail
0
500
1000
1500
2000
2500
3000
3500
4000
0
50000
100000
150000
200000
250000A
pr'
16
Ma
y'1
6
Jun
'16
July
'16
Au
g'1
6
Se
pt'
16
Oct
'16
No
v'1
6
De
c'1
6
Jan
'17
Fe
b'1
7
Ma
r'1
7
Ap
r'1
7
No
. o
f R
EC
s tr
ad
ed
IEX-S REC PXIL-S REC
Voluntary REC Market
Corporate Social Responsibility through REC
Companies Bill,2012: Mandates 2% of profits in CSR for all companies with:
net worth ≥ 500 crore/
turnover ≥1000 crore/net profit ≥ 5 crore
Profit making CPSEs are required to spend upto 0.5% of their profit after tax (PAT) on Sustainable Development
The Department of Public Enterprises (DPE) came out with an amendment to Sustainable Development (SD) Guidelines in December 2011:
• CPSEs can purchase RECs on voluntary basis as a part of their CSR Obligation.
Free Participation for Voluntary Client at IEX
No fees will be charged from
Voluntary Clients registered at IEX
To promote Voluntary purchase of
RECs by individuals and corporate
Company Snapshot
98% Market Share
~109,000 MWh average daily trade
4300+ Participants
3800+ Industries
Competition
LiquidityTransparency
Best Power Exchange in India
– Enertia Awards ’14, ’13 &’12 – India Power Award 2014 – Power Business View Award 2014
Inc India Innovative 100 Award for ‘Innovation in Product and Technology’
Best Performing Power Exchange – Power Line Awards ’13 & ‘12
Leader in Market Development– India Power Awards ‘15
Thank You for your attentionwww.iexindia.com
