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

Transcription

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

2 Target Clients v Renewable Energy Generators in India v RPO mandated entities in India v Investors seeking to invest in renewable energy generation in India 2

3 About RPO v The Electricity Act & National Action Plan on Climate Change (NAPCC) provide roadmap for increasing renewable energy in total generation The Electricity Act, 2003 Optimal utilization of resource incl. RE Tariff regulation for RE power promotion v Renewable Purchase Obligation (RPO) is mandated by SERC for promotion of renewable energy v RPO stipulates minimum percentage of renewable energy in energy mix of Distribution licensee Open Access Consumer Captive consumer Specify purchase obligation from RE sources National Action Plan on Climate Change (NAPCC) June

4 Notified RPO by States State Non Solar RPO % (FY 13-14) Maharashtra Madhya Pradesh Tamil Nadu* Rajasthan Haryana Gujarat* Chhattisgarh* Karnataka Andhra Pradesh Orissa Solar RPO% (FY 13-14) 4

5 Renewable Energy Certificates (REC) v 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. v MNRE approved renewable energy sources: Liquor Wind, Biomass, Small hydro, Solar, Bagasse based Co-generation, MSW, Biogas, Black REC April April 2017 Non Solar Rs 1,500-3,300 v REC types & Price band: Solar Rs 9,300 13,400 5

6 Who is eligible to participate in REC? 6

7 REC Eligibility v Preferential tariff PPA Not eligible for 3 years if they cancel PPA Eligible if DISCOM cancels PPA or after expiry of PPA v Captive consumption Eligible if no promotional benefit vconcessional wheeling/transmission charges vbanking facility velectricity duty waiver Not eligible for 3 years even if generator foregoes benefits Eligible if concessions are withdrawn by SERC 7

8 REC Eligibility..continued v REC and CDM benefits can coexist v Not available for off grid projects v Auxiliary consumption not eligible 8

9 REC Process - Timeline Power Exchange State Agency NLDC 9

10 Demand for RECs v DISCOMs Already procuring under preferential PPAs Impact on their bottom line v Open access consumers Inter-state plus intra-state (small segment) v 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 10

11 Our Services 11

12 Service Insight RPO impact assessment Development of RPO compliance plan REC Development Advisory Accreditation RegistrationIssuance REC Trading REC Market Insight 12

13 Assessment of impact of RPO v Renewable Purchase Obligation (RPO) is the minimum percentage of renewable energy share in the area of a Distribution Licensee Open Access Consumer Captive Consumer v RPO will impact you If you are buying power from the bilateral market or exchanges If you have captive generation capacity at your plants v Existing wind capacity where you are availing preferential wheeling and banking benefits will not be eligible to help you fulfill your RPO? 13

14 Assessment of impact of RPO continued v RPO regulations vary by state and distribution company; understand what applies to your units. v Assess total power consumption and identify power sourced from: Open Access (Bilateral or Exchange) Captive Generation v Compute any renewable power in your mix v Compute your RPO and therefore your shortfall 14

15 Development of RPO compliance plan v Assess the options available Buy vs Build vtechnology (Wind, Solar, Biomass, Small Hydro etc.) vsuitability of Technology vcost of power from shortlisted technology v Regulatory support Petitioning / facilitate in regulatory clarification (e.g. inclusion of WHR / cogeneration projects as renewable) v RPO compliance cost Likelihood of enforcement Cost of procurement of REC v Finalize RPO plan 15

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. 16

17 REC Development Advisory We advice and help Clients with accreditation, registration, issuance of REC projects. Specifically included in our services: v 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. v Accreditation and Registration Support: Assisting Clients with the entire accreditation and registration procedure with the state & central agency respectively. 17

18 REC Trading and Market Insight v We are deeply engaged in the REC market - We help clients with appropriate trading strategies and provide monetization support for their RECs. v We provide assistance for trading of the RECs on Power Exchange/s. v We are Members on both the approved Power Exchanges i.e. IEX and PXIL certified for trading RECs. v 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) 18

19 Advantages RSM GC v 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 v Helped in capacity building exercise in major states for REC v Managing over INR 750 million worth yearly REC transaction portfolio (buy & sell) v Some of the first & largest REC projects in their category v Shortest time for accreditation to registration 19

20 Experience v Experience with over 8000 MWs power project portfolio Wind projects of over 2000 MWs across India Over 350 MW of REC projects across India v Client list includes some of the largest IPPs & CPPs in India Tata Power, Lanco, GVK, GMR, Renew, GreenKo, JSW, Mahindra, etc. v Broad spectrum of technological expertise Wind, solar, hydro, biomass, Waste to Energy, etc. v Executed projects under various structures APPC + REC, Captive, Third party sale, other exotic structures, etc 20

21 Select Clients 21

22 Contact Us Mumbai Mr. Rameez Shaikh 5th floor, Great Social Building 60, Sir Pherozeshah Mehta Road, Fort Mumbai Phone: /3301 Mobile: Chennai Ms. Priya Ranganayaki E-3, 4th Floor, "RM Towers 108 Chamiers Road, Nandanam Chennai Phone: Mobile:

23 Thank You