Indian Energy Exchange December For Public Use

Transcription

1 Indian Energy Exchange December 2017 For Public Use

2 In this presentation

3 Installed RE Capacity Total Installed Capacity Renewable Installed Capacity RES Solar, 14,771 Hydro W to P; 114 Biopower; Wind Power, 32,700 Nuclear 6780 Thermal Small Hydro Power, 4, ,860 MW Total Installed Capacity as on 31st De em er 17 Source: CEA, MNRE 60,157 MW Renewable Installed Capacity as on 31st De em er 17

4 A vast RE Potential to harness Potential Installed Capacity MW Wind Source: MNRE, Installed capacity as on 30th June 2017 Solar Bio power Small Hydro

5 New REC Projects Registration Trend 2500 Non Solar Capacity (MW) 2015 Solar Capacity (MW)] Total Capacity (MW) Solar Total 4,471 1,094 Capacity (MW) N-Solar 1500 Total Projects FY FY FY FY FY FY FY 17-18

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7 Schemes to promote RE in the country Accelerated Depreciation Scheme Mid 1990s Focused on capacity addition Generation Based Incentive Scheme 2009 Shifted focus from capacity addition to generation Renewable Purchase obligation Electricity Act, 2003, National Tariff Policy, 2006 and National Action Plan on Climate Change, 2008 provided impetus to further RE growth

8 REC Genesis: Separating green attribute from electricity Bundled Green Power Issues Seller (RE power) Buyer (RPO Compliance) Un-bundled Green Power Electricity Seller (RE power) REC(Green Attributes) Schedulability Uncertainty Transmission Loss & Charge Solution No geographic barriers Reduced transaction cost REC(Green Attributes) Buyer (RPO Compliance) Electricity Discoms, Power exchanges, Bilateral Contracts Flexibility in meeting the RPO

9 Compliance Market: Overview of Legal Framework 2008 : National Action Plan on Climate Change (NAPCC) RPO at 5% in year 2010, increasing 1% every year for 10 years. Authorities may issue tradable certificates and penalties for shortfall Ja : CERC issued REC Regulatio CERC designated National Load Despatch Centre (NLDC) as Central Agency: Notification dated Ju e : CERC approved Pro edures for A reditatio, Registratio & Issua e Sep : First a e d e t of REC Regulatio July : Se o d a e d e t to REC Regulatio Amendment in eligibility, Self consumption and Validity period De : Third Amendment to REC Regulations A distribution licensee shall be eligible for issuance of RECs Vintage Multiplier,Validity of RECs for 1095 Days, Revision in price band of Solar RECs Mar : Fourth A e d e t to REC Regulatio s Terms and Conditions for recognition & issuance of Renewable Energy Certificate for Renewable Energy Generation 9

10 REC Participants: Sellers/Eligible Entity Identified Sources for RE

11 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

12 REC Market Participants : Buyers Obligated Entities Distribution Companies Open Access Consumers Industries consuming Captive Power Voluntary Entities Corporates under CSR Individuals

13 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

14 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 Single transfer only, repeated trade of the same certificate is not possible Trading in solar REC S is suspended since stay order dated filed by Green energy Association is still in operation. Floor Price: Rs 1,500/MWh Forbearance Price: Rs 3,300/MWh Transfer Type Solar RECs Non Solar RECs Penalty for Non-compliance For eara e Price (Maximum Price) Price Guarantee Through Floor Price (Minimum Price) *CERC Order dated: 1st April

15 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)

16 Trading at IEX Trading Day Last Wednesday of every Month Market Clearing Closed Double sided auction Trading Time Hrs By 1530 Hrs 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)

17 MCP: Rs 2200/REC REC Rs Rs 1500 Price in Rs/REC Cleared volume : 600 RECs 200 REC Rs 1700 BUY SELL A 100 Rs 3300 A 100 Rs 1500 B 600 Rs 2200 B 200 Rs 1700 C 200 Rs 1700 C 300 Rs REC Rs REC Rs REC No of REC

18 REC: Fee & Charges State Nodal Agency Central Agency Accreditation Fee & Charges Registration Fee & Charges Application Processing Fee Rs Application Processing Fee Rs Accreditation Charges (One Time Rs. 30,000 Registration Rs Charges (One Time for 5 Years) for 5 Years) Rs. 10,000 Annual Charges Rs Re-Validation Fees Rs Re-Validation Fees (After 5 Years Rs Annual Charges (After 5 Years Central Agency IEX Issuance Fee & Charges Redemption Fee & Charges Fees Per REC issued Rs. 4.0 Fees Per REC traded Rs. 20

19 REC - Fee & Charges Impact Cost Impact of Fee and charges in First Year Assumptions: Cost Head Project of Capacity = 1 MW Accreditation 45,000 45,000 45,000 Capacity Utilisation Factor = 22% Registration 7,000 7,000 7,000 No. of Units Generated = MU Issuance 7,708 7,708 7,708 No. of REC Issued = 1927 TOTAL COST 59,708 59,708 59,708 28,90,800 50,10,720 63,59, % 1.19% 0.94% Revenue from REC % Cost Incurred Paise Impact Per Unit (kwh) Similarly the cost impact (in Paise / Unit) for: TWO Year THREE Year FOUR Year 2.03 Paise 1.68 Paise 1.5 Paise

20 Market Snapshot

21 An update on RECs No of RECs (in Cr) No. of Accredited Registered Capacity Capacity Projects (MW) (MW) Registered Issued Traded Self Retained Inventory 4,842 3, Solar Total 5,565 4,471 1, Non -Solar As on 31st December 2017 Source: REC registry India

22 Projects under REC Mechanism th th Fe As As on on De th Accredited Capacity :95,056 MW AsAs on As on ja th th As on on 4 11 Sept Aug th As on :Capacity 4 January,2014 Registered : 4,785 MW As State-wise RE Capacity (MW) As on 2nd July Registration Capacity: 4,773 MW RP : 3975 MW Accreditation Capacity : 4,989 MW 642 AP : 4336 MW As on 12th Feb, Registered Projects Accreditated Projects 794 Tamil Nadu Maharashtra Uttar Pradesh Gujarat Karnataka Rajasthan Andhra Pradesh Madhya Pradesh Chhattisgarh Punjab Himanchal Pradesh Others Source: REC registry India As on

23 Projects under REC Mechanism th th De th 2014 Feb As on 12 As As on7:on Fe th th Accredited Capacity 5,112 As on on As 11 on Nov : Aug th th nd st AsAson 4AsMarch on 2,2014 JulyMW 2014 Ason on631 OSept to er Registered Capacity : 4,838 MW Source wise RE capacity (MW) As on 7th May Registered Projects 1073 Accreditated Projects Wind Source: REC registry India Bio-fuel cogeneration Biomass Small Hydro Solar Others As on

24 Key statistics: REC Market at IEX Portfolios 3,542 REC Market Share (FY18 State Utilities IEX PXIL 17 States I 5 UTs 25.40% Generators 819 Industrial Consumers 2,702 Cleared Volume >1 Crore RECs Highest: 32,39,142 RECs Dec 17 IEX Data as on 31st December, %

25 Participation Details at IEX Registered Participants 3542 Obligated Entity 2702 DISCOMs 33 OA consumers 2474 Captive Consumer 147 OA + Captive 46 Discom + Captive 1 Voluntary Eligible Entity (Sellers) As on 31st December

26 N-Solar & Solar REC trade detail Total Non-solar Traded Volume:6,588,509 RECs Non-Solar Sep'17 Oct' May'17 June'17 July'17 REC Traded Nov'17 Dec'17 MCP(Rs/REC) Total Solar Traded Volume-88,533 RECs Aug' Solar REC Traded MCP(Rs/REC) Dec'17 Nov'17 Oct'17 Sep'17 Aug'17 July'17 June'17 May'17 Apr'17 0 MCP(Rs/REC) April'17 No. of RECs Cleared MCP(Rs/REC) No of RECS Cleared

27 Why REC a better option than buying renewable power? Schedulability High Overheads Open Access costly Less predictable Less controllable Require better prediction tools over one-day Scheduling changes till one-hour before More System imbalances Discoms to spend on more reserves to avoid UI More reserves required to balance Payment of Transmission, Wheeling Charges, Losses and Scheduling Charges is higher than purchase of RECs RECs are better way to transfer green premium than green energy

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29 How to Start Two step Process Registration Become Member with IEX Become Client through any of IEX members Start Trading Last Wednesday of every Month

30 Key Recent Developments & their likely impact REC Market Supreme Court Judgment on Renewable Purchase Obligations Applicability in Rajasthan Gujarat High Court judgment in the case of Hindalco (Birla Copper), and others Recent APTEL Judgments related to RPO / RECs Case 1: IWEA, IWTMA, VS All SERCS Case 2: IWPA VS GERC & all Gujarat discoms

31 Company Snapshot 96% Market Share ~90,000MWh average daily trade Participants Industries Transparency Liquidity Competition

32 Continuous communication with Users IEX Daily SMS Service for Trade Details IEX Monthly Bulletin IEX 15 min Trade Prices displayed on its website