Renewable Energy Generators in India RPO mandated entities in India Investors seeking to invest in renewable energy generation in India

1. Renewable Purchase Obligation (RPO) / Renewable
Energy Certificates (REC) Advisory and Trading

2. Target Clients
 Renewable Energy Generators in India
 RPO mandated entities in India
 Investors seeking to invest in renewable energy generation in India
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3. About RPO
 The Electricity Act & National Action Plan on
Climate Change (NAPCC) provide roadmap for
increasing renewable energy in total generation
The Electricity Act, 2003
 Renewable Purchase Obligation (RPO) – is
mandated by SERC for promotion of renewable
energy
 RPO stipulates minimum percentage of
renewable energy in energy mix of
♦ Distribution licensee
♦ Open Access Consumer
♦ Captive consumer
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National Action Plan on
Climate Change (NAPCC) –
June 2008
5%
10%
2010
2015
15%
2020
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4. Notified RPO by States
State
Non Solar RPO %
(FY 13-14)
Solar RPO%
(FY 13-14)
Maharashtra
8.50
0.50
Madhya Pradesh
4.70
0.80
Tamil Nadu*
9.00
0.10
Rajasthan
8.20
1.00
Haryana
3.00
0.10
Gujarat*
6.00
1.00
Chhattisgarh*
5.25
0.50
Karnataka
10.00
0.25
Andhra Pradesh
4.75
0.25
Orissa
5.80
0.20
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5. Renewable Energy Certificates (REC)
 REC is a tradable certificate of proof that one MWh of electricity has been injected (or
deemed to have been injected) to grid by an RE generator.
 MNRE approved renewable energy sources:
Wind, Biomass, Small hydro, Solar, Bagasse based Co-generation, MSW, Biogas,
Black Liquor
 REC types & Price band:
REC
Non Solar
Solar
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April 2012 - April 2017
Rs 1,500 - 3,300
Rs 9,300 – 13,400
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6. Who is eligible to participate in REC?
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7. REC Eligibility
 Preferential tariff PPA
♦ Not eligible for 3 years if they cancel PPA
♦ Eligible if DISCOM cancels PPA or after expiry of PPA
 Captive consumption
♦ Eligible if no promotional benefit
 Concessional wheeling/transmission charges
 Banking facility
 Electricity duty waiver
♦ Not eligible for 3 years even if generator foregoes benefits
♦ Eligible if concessions are withdrawn by SERC
 GBI and Accelerated depreciation benefits are not considered concessional
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8. REC Eligibility…..continued
 REC and CDM benefits can coexist
 Not available for off grid projects
 Auxiliary consumption not eligible
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9. REC Process - Timeline
NLDC
Registration
• RE Generator applies for registration of accredited project with
NLDC
• Process time: ~ 2-3 weeks
Issuance
• May apply fortnightly basis; within 6 months of injection to grid
• Process time: ~ 3-4 weeks
Power Exchange
State Agency
Accreditation
• RE Generator applies to the State agency for accreditation upto
6 month before Commissioning
• Process time: ~ 6-8 weeks
• Last Wednesday of every month between 1300 – 1500 hrs
Redemption
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10. Demand for RECs
 DISCOMs
♦ Already procuring under preferential PPAs
♦ Impact on their bottom line
 Open access consumers
♦ Inter-state plus intra-state (small segment)
 Captive consumers
♦ Large market made up of industrial users (cement, steel, chemical etc.) having
thermal capacity
♦ Likely to focus on RE development, RE PPAs or REC
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11. Our Services
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12. Service Insight
RPO impact assessment
REC Trading
Issuance
Registration
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Accreditation
Development of RPO
compliance plan
REC Development
Advisory
REC Market Insight
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13. Assessment of impact of RPO
 Renewable Purchase Obligation (RPO) is the minimum percentage of renewable
energy share in the area of a
♦ Distribution Licensee
♦ Open Access Consumer
♦ Captive Consumer
 RPO will impact you
♦ If you are buying power from the bilateral market or exchanges
♦ If you have captive generation capacity at your plants
 Existing wind capacity where you are availing preferential wheeling and banking
benefits will not be eligible to help you fulfill your RPO?
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14. Assessment of impact of RPO
… continued
 RPO regulations vary by state and distribution company; understand what applies to
your units.
 Assess total power consumption and identify power sourced from:
♦ Open Access (Bilateral or Exchange)
♦ Captive Generation
 Compute any renewable power in your mix
 Compute your RPO and therefore your shortfall
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15. Development of RPO compliance plan
 Assess the options available
♦ Buy vs Build
 Technology (Wind, Solar, Biomass, Small Hydro etc.)
 Suitability of Technology
 Cost of power from shortlisted technology
 Regulatory support
♦ Petitioning / facilitate in regulatory clarification (e.g. inclusion of WHR / cogeneration
projects as renewable)
 RPO compliance cost
♦ Likelihood of enforcement
♦ Cost of procurement of REC
 Finalize RPO plan
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16. RPO Compliance
We help the obligated entities fulfill their RPO by assisting them:
♦ build their own renewable energy assets,
♦ acquire old assets, tie-up with renewable energy IPPs
♦ purchase of RECs from the exchanges.
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17. REC Development Advisory
We advice and help Clients with accreditation, registration, issuance of REC projects.
Specifically included in our services:
 Completeness check and Due diligence for eligibility:
♦ Performing a thorough check for all mandatory requirements and a total quality control
of the documentations that are to be submitted to State and Central Regulatory bodies.
Advising Clients for every necessary action to be taken to fulfill the REC eligibility
criteria.
 Accreditation and Registration Support:
♦ Assisting Clients with the entire accreditation and registration procedure with the state &
central agency respectively.
 Assistance in Issuance of REC:
♦ Assisting Clients in filing application & compliance report for successful issuance of
REC.
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18. REC Trading and Market Insight
 We are deeply engaged in the REC market - We help clients with appropriate trading
strategies and provide monetization support for their RECs.
 We provide assistance for trading of the RECs on Power Exchange/s.
 We are Members on both the approved Power Exchanges i.e. IEX and PXIL certified for
trading RECs.
 We trade RECs on behalf of:
♦ Eligible Entities (Registered RE generator)
♦ Obligated Entities (Discom, Captive Power Producer & Open Access Consumer)
♦ Voluntary Entities (Voluntary Corporates / Organisation / Individuals / etc)
Membership Facilitation
under RSM GC Advisory
on Exchange
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Open new bank
account OR link
current
operating
Account
Trading on last
Wednesday of
every month
Put Buy / Sell
Bids: Quantity &
Price
(Anonymous
Bidding)
Bid matched
based on
approved
exchange
algorithm
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19. Advantages RSM GC
 Thought leaders
♦ Participated in regulation formulation (states as well as central)
♦ Sharing Insights through Monthly Newsletter: REC Market Update
♦ Invited to speak at major RE trade fairs, seminars, conferences & workshops
 Helped in capacity building exercise in major states for REC
 Managing over INR 750 million worth yearly REC transaction portfolio (buy & sell)
 Some of the first & largest REC projects in their category
 Shortest time for accreditation to registration
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20. Experience
 Experience with over 8000 MWs power project portfolio
♦ Wind projects of over 2000 MWs across India
♦ Over 350 MW of REC projects across India
 Client list includes some of the largest IPPs & CPPs in India
♦ Tata Power, Lanco, GVK, GMR, Renew, GreenKo, JSW, Mahindra, etc.
 Broad spectrum of technological expertise
♦ Wind, solar, hydro, biomass, Waste to Energy, etc.
 Executed projects under various structures
♦ APPC + REC, Captive, Third party sale, other exotic structures, etc
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21. Select Clients
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22. Contact Us
Mumbai – Mr. Rameez Shaikh
Chennai – Ms. Priya Ranganayaki
5th floor, Great Social Building
60, Sir Pherozeshah Mehta Road, Fort
Mumbai 400001
E-3, 4th Floor, "RM Towers“
108 Chamiers Road,
Nandanam
Chennai 600018
Phone: +91 22 2266 3201/3301
Mobile: +91 99200 33866
Email: rameez.shaikh@general-carbon.com
www.general-carbon.com
Phone: +91 44 42167331
Mobile: +91 99625 26876
Email: priya.v@general-carbon.com
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23. Thank You
www.general-carbon.com
www.astuteconsulting.com