Source: Central Electricity Authority

204/20/23

304/20/23

Source MWWind 18321.10Small Hydro 3464.59

Biomass 1242.6

Bio fuel co-generation

2175.23

Solar PV 1047.16

Municipal Waste

93.68

404/20/23

Policy and regulatory intervention is essential to promote renewable energy

Range of Requirement in

Scenarios

Assumed Domestic Production

Range of Imports* Import (%)

(R) (P) (I) (I/R)

Oil (Mt) 350-486 35 315-451 90-93

Natural Gas (Mtoe) including CBM

100-197 100 0-97 0-49

Coal (Mtoe) 632-1022 560 72-462 11-45

TCPES 1351-1702 - 387-1010 29-59

* Range of imports is calculated as follows:

Lower bound = Minimum requirement - Maximum domestic production

Upper bound = Maximum requiremnt - Minimum domestic production

Fuel

Notes: 1. Growth Rate 8%

2. Year 2031-32India will continue to

import significant amount of its energy requirement

Source: Integrated Energy Policy Report

04/20/23 5

Energy security is an area of prime concern for India.Hence the need for promotion of Renewable Energy

MW

• Wind and Solar are the predominant sources : Actual potential is much higher, A study conducted by the Lawrence Berkley National Laboratories (LBNL, USA indicates a higher wind potential of nearly 6-8 Lakh MW in India

Huge RE potential need to be harnessed604/20/23

Section 86(1)(e): Specify Renewable Purchase Obligation

(RPO), grid connectivity

Section 61(h): Tariff regulations to be guided by promotion

of renewable energy sources

Section 3: National Electricity Policy, Tariff Policy and Plan

Section 4: National Policy permitting stand alone systems

including renewable sources of energy for rural areas

04/20/23 7

The State Commission shall discharge the following

functions, namely:

“promote cogeneration and generation of electricity

from renewable sources of energy by providing

suitable measures for connectivity with the grid and

sale of electricity to any person, and also specify, for

purchase of electricity from such sources, a

percentage of the total consumption of electricity in

the area of a distribution licensee;”

04/20/23 8

The Appropriate Commission shall, subject to the

provisions of this Act, specify the terms and

conditions for the determination of tariff, and in

doing so, shall be guided by the following, namely:-

(h) the promotion of co-generation and generation

of electricity from renewable sources of energy;

04/20/23 9

Urgent need of promotion non-conventional and renewable

sources of energy

Efforts need to be made to reduce the capital cost of such

projects

Cost of energy can be reduced by promoting competition within

such projects

Adequate promotional measures would have to be taken for

development of technologies and sustained growth of these

sources

SERCs to provide suitable measures for connectivity with grid and

fix percentage of purchase from Renewable sources

Progressively the such share of electricity need to be increased04/20/23 10

Appropriate Commission shall fix RPO and SERCs shall fix

tariff

Initially Appropriate Commission to fix preferential tariffs

In future Discoms to procure RE through competitive

bidding within suppliers offering same type of RE

In long-term, RE technologies need to compete with all

other sources in terms of full costs

CERC to provide guidelines for pricing non-firm power if RE

procurement is not through competitive bidding04/20/23 11

04/20/23

National level target for RE Purchase 5% of total grid purchase in 2010, to be increased by 1% each

year for 10 years: 15% by 2020

SERCs may set higher target

Appropriate authorities may issue certificates that procure

RE in excess of the national standard Such certificates may be tradable, to enable utilities falling

short to meet their RPO

RE generation capacity needed: From 25000 to 45000 MW by

FY2015

12

Mission aims to achieve grid tariff parity by 2022 through

Bundling of solar power with un-allocated quota of central stations by NVVNL for resale to utilities

To deploy 20 million solar lighting systems for rural areas by

2022 Large scale utilization and rapid

diffusion R&D , Local manufacturing In addition, 100 MW capacity

distributed small grid connected power plants during Phase -1.

04/20/23 13

MW

SERC shall fix a minimum percentage of the total

consumption of electricity in the area of a distribution

licensee Such purchase should takes place more or less in the

same proportion in different States SERCs shall also reserve a minimum percentage for

purchase of solar energy Up to 0.25% by the end of 2012-2013

Further up to 3% by 2022

Renewable Energy Certificate (REC) would need to be

evolved with separate solar specific REC04/20/23 14

Renewable Purchase Obligation (RPO)

Preferential Tariff

Facilitative Framework for Grid Connectivity

Market Development (Tradable Renewable Energy Certificates)

04/20/23 15

States SERC Notified Regulations

12-13 13-14 14-15

TAMILNADU 9%

KARNATAKA 10%/7%

MAHARASHTRA 8% 9% 9%

KERALA 3.6% 3.9% 4.2%

GUJARAT 7.0%

RAJASTHAN 7.1%

ANDHRA PRADESH 5.0% 5.0% 5.0%

UTTAR PRADESH 6%

HIMACHAL PRADESH 10.25% 10.25% 10.25%

04/20/23

SERC Notified RegulationsSTATE 12-13 13-14 14-15

CHHATISGARH 5.75%

PUNJAB 2.9% 3.5% 4%

UTTARAKHAND 6%

MADHYA PRADESH 4.00% 5.50% 7.00%

WEST BENGAL 4% 5% 6%

HARYANA 2.0% 3.0%

DELHI 3.4% 4.8% 6.2%

BIHAR 4% 4.50% 5%

JHARKHAND 4%04/20/23

SERC Notified Regulations

States 12-13 13-14 14-15JAMMU & KASHMIR 5%

ASSAM 2% 2% 2.50%

MANIPUR 5.00%

MEGHALAYA 1.00%

NAGALAND 8.0%

MIZOROM 7.0%

TRIPURA 2.0%

GOA AND Uts 3%

04/20/23

04/20/23

State 2012-13 2013-14 2014-15 2015-16AP 0.25% 0.25% 0.25% 0.25%

Assam 0.15% 0.20% 0.25%

Bihar 0.75% 1.00% 1.25%

Chhattisgarh  0.5%

Delhi 0.20% 0.25% 0.30% 0.35%

Gujarat 1.00%

Haryana 0.75% 1% 1.25%

Himachal Pradesh 0.25% 0.25% 0.25% 0.25%

J & K 0.25%

Jharkhand 1%

Karnataka 0.25% 0.25% 0.25% 0.25%

Kerala 0.25% 0.25% 0.25% 0.25%

MP 0.6% 0.8% 1.0%

04/20/23

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

Maharashtra 0.25% 0.50% 0.50% 0.50%

Rajasthan 0.50% 0.75%

Manipur 0.25%

Meghalaya 0.4%

Mizoram 0.25%

Nagaland 0.25%

Orissa 0.15% 0.20% 0.25% 0.30%

Punjab 0.13% 0.19%

Tripura 0.10%

Tamil Nadu 0.05%

UP 1%

Uttarakhand 0.05%

UTs & Goa 0.40%

Wide Divergence in RPO Specifications across States Varying RPO Trajectories RPO being fixed based on resources

available in the States Different RPO as per RE Technology Differential RPO for Discoms No long term visibility

04/20/23 21

SOLAR WIND

REC – CONTEXT Unevenly Distributed RE

Resources

04/20/23 23

• Resource rich states not willing to purchase high cost RE power beyond RPO• Variability : Inter-state transmission is also difficult

RE Generation

REC Component

Electricity Component

Sale at Preferential

Tariff

Obligated Entities

Local Discom/ Open

Access /Power Exchange

Obligated Entities

Voluntary Buyers

Sale of Electricity at Market Price in open market

Sale of electricity to Obligated Entities at regulated tariff

Preferential Tariff[Regulated Tariff]

REC [Solar & Non-Solar]

Sale of RECs at Power Exchange

* - Weighted Average Pooled Price at which distribution licensee has purchased electricity (including cost of self generation, long-term and short term purchase) in the previous year, but excluding the cost of RE power purchase

Sell to local Discom at ≤ Pooled Cost of Power Purchase*

REC OptionElectricity

Green Attributes

Self Consumption

04/20/23 25

27

Salient features

Accreditation State Agency

Registration Central Agency

Revocation of

Registration

Central Agency

Categories of REC Solar REC & Non-Solar REC

Issuance of REC By Central Agency only based on injection

certificate

REC Denomination 1 MWh = 1 REC

Time limit for claiming

REC

3 Months from injection

Validity of REC 365 days after issuance

Dealing in Certificates Power Exchanges only

REC Price Guarantee Between ‘Floor’ Price and ‘Forbearance’ Price

Monitoring Mechanisms Compliance Auditor

27

Eligible Entity

State Agency

SLDC

Central Agency

Power Exchange

Verify Accreditation

Application

ConfirmationIntimation

Application

Confirmation

Intimation

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

Central Agency- NLDC

Electricity to Grid

Electricity from Grid

RE Generators RPS Obligated entities

Energy Accounting

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

Eligible Entity

Obligated Entity

SERC

Central Agency

Power Exchange

Apply forSale of REC

Purchase RPO

State Agency

Intimation ofSale

Intimation of Sale

CERC 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 in the country;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.

CERC has given the following price range for Solar and non-solar certificates: Non-Solar REC

(Rs/MWh)Solar REC (Rs/MWh)

Forbearance Price 3,400 13,400

Floor Price 1,500 9,300

These prices are calculated as under:

Forbearance Price = Maximum (Preferential Tariff- Average Pooled Power Cost)

Floor Price = Market Equilibrium Price (Minimum requirement for project viability of RE technologies – Average Pooled Power Cost)

Resource Capacity in MW

No. of Projects

Wind 2041.88 533

Small Hydro 184.00 023

Biomass 583.94 062

Bio fuel co-generation

777.27 076

Solar PV 20.91 011

Municipal Waste

16.00 002

Other 1.67 001

Total 3625.67 708

Resource Capacity in MW

No. of Projects

Wind 1879.38 485

Small Hydro 158.70 20

Biomass 566.90 58

Bio fuel co-gen

718.70 70

Solar PV 018.160 007

Municipal Waste

- -

Other 001.668 001

Total 3343.498 641

States Wind

SHP Biomass

Co-gen

M S W

Others

Solar PV

Total

Andhra 71(10)

- - - - - - 71(10)

Bihar - - 4(1)

12(2)

- - - 16(3)

Chhattisgarh

- - 112.5(11)

2.5(1)

- - - 115(12)

Delhi 16(2)

16(2)

Gujarat 400(46)

- 1.2(1)

7.25(2)

- - - 409(49)

Haryana - - 11.5(4)

- - - - 11.5(4)

Himachal - 47.5(6)

- - - - - 47.5(6)

04/20/23 37

States Wind

SHP Biomass

Co-gen

M S W Others

Solar PV

Total

Jammu &Kashmir

- 17.5(2)

- - - - - 17.5(2)

Karnataka 150.1

(21)

23(2)

- - - - - 173.19 (23)

Kerala - 21(1)

2.2(1)

- - - - 23.2(2)

Madhya Pradesh

9.02(3)

15.7(2)

34.5(3)

- - 4.105(5)

63.325(13)

Maharashtra

539.6

(259)

35.9(9)

56.27(10)

212(28)

1.7(1)

10.5(3)

855.35(310)

Odisha - - 5.4(1)

- - - - 5.4(1)

Punjab - - 10.775(1)

46(2)

- - - 56.775(2)

04/20/23 38

States Wind

SHP Biomass

Co-gen

M S W Others

Solar PV

Total

Rajasthan 80(17)

- 10(1)

- - - 5.25(2)

92.5(20)

Tamil Nadu 792(177

)

- 135(14)

- - - - 927(192)

Uttarakhand

- 24(1)

- 20(2)

- - - 44(3)

Uttar Pradesh

- - 200.6(14)

478(39)

- - - 678(53)

Total 2042

(533)

184(23)

584(58)

777(76)

16(2)

1.7(1)

20.91(11)

3625.6(708)

04/20/23 39

18 States RE Generated participated in REC mechanism

States Wind

SHP Biomass

Co-gen

M S W

Others

Solar PV

Total

Andhra 71.2(10)

- - - - - - 71.2(10)

Bihar - - 4(1)

12(2)

- - - 16(3)

Chhattisgarh

- - 101(9)

2.5(1)

- - - 103.5(10)

Delhi - - - - - - - -

Gujarat 3346(40)

- 1.2(1)

7.25(2)

- - - 354.5(43)

Haryana - - 8.5(3)

- - - - 8.5(3)

Himachal - 47.5(6)

- - - - - 47.5(6)

04/20/23 40

States Wind

SHP Biomass

Co-gen

M S W

Others

Solar PV

Total

Jammu &Kashmir

- 17.5(2)

- - - - - 17.5(2)

Karnataka 127 (13)

5(1)

- - - - - 132 (14)

Kerala - 21(1)

2.2(1)

- - - - 23.2(2)

Madhya Pradesh

3(2)

15.7(2)

34.5(3)

- - 2.605(3)

55.845(10)

Maharashtra

514.2

(242)

28(7)

53.72(9)

130.5(17)

1.7(1)

9.5(2)

761.29(283)

Odisha - - 5.4(1)

- - - - 5.4(1)

Punjab - - 10.8(1)

46(2)

- - - 57(3)04/20/23 41

States Wind

SHP Biomass

Co-gen

M S W

Others

Solar PV

Total

Rajasthan 75.75(15)

- 10(1)

- - - 5(1)

95(19)

Tamil Nadu 737.1

(161)

- 135(14)

- - - - 873.155

(176)

Uttarakhand

- 24(1)

- 20(2)

- - - 44(3)

Uttar Pradesh

- - 200.6(14)

478(39)

- - - 678(53)

Total 1879

(485)

158(20)

567(58)

718.7(70)

- 1.7(1)

18.16(7)

3343.5(641)

04/20/23 42

18 States RE Generated participated in REC mechanism

Month, Year

Opening Balance

REC Issued

REC Redeemed

Closing Balance

Feb, 2012 39915 200736 206188 34463Mar, 2012 34463 203819 199737 38545Apr, 2012 38545 122369 71226 89688May, 2012 89688 230697 168685 151700June, 2012 151700 259125 236827 173998Jul, 2012 173998 382712 158399 398311Aug, 2012 398311 474784 274272 598823Sep, 2012 598823 569567 265606 902784Oct, 2012 902784 621358 224491 1299651Nov, 2012 1299651 394088 133571 1560168Dec, 2012 1560168 383383 274852 1668699Jan, 2013 668699 307663 195645 1780717Total:   4799989 3019272  

04/20/23 44

04/20/23 45

04/20/23 46

Non-Solar: Not adequate demand

Buyers : Largely CPPs and OA consumers; Very few Discoms

(Torrent, Tata Power, REL, Chandigarh, DDN, JUSCO).

Solar: Inadequate supply and absence of large buyers

Buyers: Largely CPPs and OA consumers; Very few Discoms

(Chandigarh, Tata Steel Power Distribution Licensee), OA

consumers, CPP

4704/20/23

RPO being fixed keeping in mind availability of RE resources in

State instead of availability of RE resources in the country as a

whole Need for National level RPO

Need for specifying RPO as a percentage of “total consumption” of

electricity in the area of a distribution licensee

Need to recognise REC as valid instrument for compliance of RPO

by the obligated entities

Applicability of RPO on Captive user, Open Access users and

captive cogeneration : Regulations challenged in various High

Courts

Lack of Long Term RPO Trajectory Need for Long Term RPO Trajectory: At least for next 5 to 10 years

Lack of enforcement of RPO4904/20/23

Financial conditions of distribution utilities

Higher RPO level leads to higher impact

Section 86(1) (e) of the Act mandates SERCs to promote RE in the State

Traditionally, RPO being fixed based on the resources available in the States

04/20/23 50

Whether NAPCC suggested target is achievable or not?

Whether enough RE sources are available in the

country?

What is the achievable potential for various RE sources

in different states?

How to determine optimum as well as achievable RPO

trajectory for various States

What is the impact of RPO on the power purchase cost

of the state?

04/20/23 51

NAPCC target could be achieved during the 12th plan, if the adequate steps are taken to address the following issues: Infrastructure Barriers:

Transmission and power evacuation infrastructure and grid management

Land approvals (Single window clearance), specially for solar

Policy and Regulatory Barriers: long term perspective on RPO, RE Tariffs (and inter-state

difference in tariffs) Sale of RE power through open access and inter-state sale

Incoherent Resource Assessment Financing Barriers04/20/23 52

39600 MW (grid-connected) could be added during the

12th plan

Based on the micro-level data provided by the SNA, STU and

developers business plan

Insignificant impact on Power Purchase Cost (PPC) on

Pan-India basis:

Incremental impact on the PPC is 1.0 paisa per unit for the first

year, which gradually decreases to negative incremental impact

(to the extent of 0.5 paisa per unit in FY17)

Suggested RPO trajectory for States for 12th Plan period

FOR Model Regulations for REC Mechanism for SERCs

In the event of default the obligated entity have to deposit into

a separate fund, on the basis of the shortfall in the units of RPO

at the forbearance price decided by the Central Commission.

All SERC has specified above provision in the State REC/RPO

Regulations

Issues

Very few SERCs initiated proceeding for Enforcement of RPO

GERC, MERC, JERC, MERC,PSERC and MPERC has initiated suo-motu

proceeding /acted on petition filed by utility for waiver of RPOFOR to develop mechanism for reporting requirement

and institutional mechanism for follow up for enforcement

5404/20/23

Study on Preparing incentive structure for States for fulfilling Renewable Purchase Obligation (RPO) targets

Incentive scheme for resource rich states▪ For specifying RPO up to national level▪ For fulfilment of own RPO▪ For supporting other states for fulfilment of RPO by purchasing

RE at APPC▪ Support for balancing power requirement

Incentive scheme for resource deficit states▪ For specifying RPO up to national level▪ For fulfilment of own RPO

04/20/23 55

CERC has given statutory advice to the Ministry of Power (MOP) for

making specific provisions in the Electricity Act, 2003 for promotion of

RE:

NEP And TP to provide long term RPO trajectory of 5 to 10 years

Act to provide that SERCs to fix RPO as per provisions of NEP and TP 

Empowering SERCs to impose penalty (Addition to Sec. 142)

RPO applicability on Open Access and Captive users including Co-gen

Transmission planning with considering RE capacity additionTaking note of it, MOP constituted a Committee for accelerated

development of RE through legislative & policy changes

04/20/23 56

Floor/Forbearance Price: Longer visibility more than 5 years

Vintage based floor price for solar REC Multiplier linked to reduction in floor price: Legal

interpretation Trading of REC

Secondary Market, OTC market, Multiple Trading: Liquidity issueMajor Issue of Tracking and Monitoring of RECs

REC to Buyers Issuance of RECs to Obligated entity for RE purchase

beyond their RPO: Sale RECs to other obligated entities

57

Initiative: CERC recently awarded a study in this regard to strengthen the existing REC framework

Wind & Solar Energy: Intermittent power

Roadmap given for scheduling of from 01.01.2012 by CERC :

Grid Code (IEGC 2010)

Unscheduled Interchange (UI) (Balancing charges) in case of

deviation from schedule beyond ± 30%

Solar PV generator exempted from the burden of any

deviation from schedule

In order to promote RE in resource rich States UI impact on

host State to be socialized through Renewable Regulatory

Fund (RRF)

RRF Implementation Issues

04/20/23 58

04/20/23

Transmission charges and losses

in regional grid for Solar Projects

CERC waived Inter-State Transmission Charges and Losses

for the entire life for Solar projects to be commissioned in

Phase-I i.e. by FY 2013

59

04/20/23

Amendment in CERC Grid Connectivity Regulations

dated 7.9.2010

Threshold capacity for connecting to inter-State

grid reduced to 50 MW for RE projects

RE projects having capacity less than 50 MW can also

approach collectively with an aggregate installed capacity of

50 MW and above for connectivity with the CTU

60

Provide larger balancing area: Resolve variability and balancing power

requirement issue

Issues

RE Sources remotely located and evacuation

infrastructure is a major bottleneck

Evacuation responsibility of Central or State Transmission

utility under the Act

Huge investment required in evacuation infrastructure

Upstream strengthening in the meshed transmission

system

04/20/23

Initiative: CERC /FOR awarded a study to CTU (Powergrid) on Transmission infrastructure development for the likely capacity addition of RE based power plants in the States rich in RE potential during 12th Plan (FY 2012-2017)

61

04/20/23 62

Thank you