REChronicles - From the Editor's desk - EfficientCarbon

Mar 29, 2013 - Buy bids of 427871 (highest in the last 14 months), all of which were cleared, led .... Drop us an email to [email protected] or give a call on +91-9052224701. ... Environment and Sustainability domain. We provide ...
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REChronicles - From the Editor’s desk Hello Readers. Hope you enjoyed the last issue of REChronicles. We would love to have your feedback on which articles you liked and which ones you didn’t. The last month of the Financial Year witnessed pretty interesting happenings. APTRANSCO opened Commercial Bids of all the 184 bidders who participated in AP Solar bidding and subsequently made available all the documents online. We have analyzed all the available data and posted the results on our blog. Andhra Pradesh Government even announced a Policy on Net Metering. Not exciting enough? 3 states – Karnataka, Punjab and Uttar Pradesh – have released RfPs for Solar projects with a cumulative capacity of 630 MW. Check out Renewable Energy News section on Page 6 for more on these happenings. Here’s what is possibly the most exciting news for followers of REC trading in India. Solar RECs were traded at Forbearance Price (Rs.13400/REC) for the first time ever. Non-Solar Trading was not that bad either. It saw the highest ever Clearing volume of 427871 RECs thus reducing the REC inventory for the first time since February 2012. More on this in our REC trading section in the following pages. We have, as always put in our best efforts in order to come up with the articles in this issue. We hope you would enjoy it as much as we did while preparing it. Kindly give your valuable feedback on how we can improve REChronicles and make it even more delightful and interesting for you. Happy reading!!

REC Trading Update – March 2013 REC Inventory: Opening at close to 1.937 Million, March trading session closed with an inventory balance of a little under 1.777 Million RECs. The following sections give an update on the Non-Solar and Solar front.

Non-Solar The month of March started with an Opening Balance of 1935844 Non-Solar RECs. Over the course of the month, 268323 Non-Solar RECs were issued thus putting the available number at 2204167. Of these, only 1919432 were put up for trading. Buy bids of 427871 (highest in the last 14 months), all of which were cleared, led to a closing balance of 1776296. Following table gives the Non-Solar REC Inventory statistics for the last 3 months. Non-Solar REC Inventory for Jan-2013 to Mar-2013 (as on 29-Mar-2013) Month, Year

Opening Balance

REC Issued

REC Redeemed

Closing Balance

January, 2013

1662978

304238

193337

1773879

February, 2013

1773879

314917

152952

1935844

March, 2013

1935844

268323

427871

1776296

Solar Opening at 899 Solar RECs, 2917 were issued over the course of the month thus putting the total available Solar RECs at 3816 all of which were put up for trading. The trading session closed with a Closing Balance of 633 after redemption of 3183 Solar RECs. Following table throws more light on the Solar REC Inventory statistics for the last 3 months. Solar REC Inventory for Jan-2013 to Mar-2013 (as on 29-Mar-2013) Month, Year

Opening Balance

REC Issued

REC Redeemed

Closing Balance

January, 2013

253

3306

2308

1251

February, 2013

1251

1882

2234

899

March, 2013

899

2917

3183

633

REC trading: The number of Non-Solar Buy-bids rose by a massive 180% compared to that of February. Solar REC trading too witnessed some exciting happenings – Clearing Price touched Forbearance Price (Rs.13400) on IEX. Here’s more on Non-Solar and Solar trading in the last month of FY 2012-13.

Non-Solar RECs Trading: Being the last month of the Financial Year, Non-Solar REC trading saw a huge increase in trading volumes. Buy Bids of 427871 is the highest in the last 14 months and is the second highest since trading began in March’11. As is the trend, all the Buy Bids (427871) were cleared. This is the highest ever Cleared Volume (an increase of 180% over last month) thus resulting in a Trading Value of Rs.64.18 Crores. Clearing Price stood at the usual Rs.1500 owing to oversupply. Non-Solar inventory which has been constantly increasing since February’12 fell for the first time owing to the increase in trading activity. The graph below shows the trends in Buy Bids, Sell Bids, Traded Volume and Clearing Price for the last 3 months. Non-Solar REC trading from January ’13 – March ‘13

2000000 1800000 V o l u m e

1500

1741892

1500

1742421

1500

1919432

1600 1500

1600000

1400

1400000

1300

1200000

1200

1000000

1100

800000

1000 427871

600000 400000

193337

200000

900 800

152952

700

0

600 January'13

Buy Bid (No. of certificates)

February'13 Sell Bid (No. of certificates)

March'13 Traded Volume

Clearing Price

Forecast for April trading session: As inventory is still high, Trading Price is bound to stick to the Floor Price of Rs.1500/REC if the demand continues to stay lower than supply. Though March witnessed good trading activity, Trading activity in April may return to usual numbers as it is the start of the Financial Year.

P r i c e

Solar RECs Trading: Solar REC trading did not just continue its good run in the New Year but it also saw a big boost in trading volume in the last month of the last quarter of FY 2012-13. A 42% increase in Clearing Volume was seen. An even more interesting fact is that, for the first time ever, Clearing Price touched Forbearance Price of Rs.13400 (At IEX). PXIL too witnessed a high Clearing Price of Rs.13000/REC thus keeping the average at Rs.13331/REC. Against Buy Bids of 7610, 3816 Solar RECs were put up for sale and 3183 got cleared. All thus resulted in a Trading Value of Rs.4.24 Crore which is a 51% increase from February. The graph below shows the trends in Buy Bids, Sell Bids, Traded Volume and Clearing Price for the last 3 months. Solar REC trading from January ’13 – March ‘13

45000

42245

13600

40000 V o l u m e

35000

13400

13331

30000

13200

25000

13000

20000 15000

12800 6777

10000 5000 0

12500

12600

12569 3559

2308 January'13 Buy Bid (No. of certificates)

7610

2726 2234 February'13 Sell Bid (No. of certificates)

3816 3183 March'13 Traded Volume

12400

Clearing Price

Forecast for April trading session: Being the first month of the financial year, April could see figures return to usual values. While the extremely good trading activity of March may not be repeated, Clearing Price could hover around the usual Rs.12400-Rs.12800/REC and decent amount of trading activity may be witnessed.

P r i c e

REC Capacity Addition – March’13 A total of 156.48 MW was Accredited and 70.98 MW was Registered during the course of the month. The tables below indicate the Resource-wise capacity addition in March and the total capacity as on 29th March, 2013. Capacity Addition (MW) in March (As on 29th March 2013) S.No. 1. 2. 3. 4. 5. 6. 7.

Source Wind Urban or Municipal Waste Solar PV Small Hydro Others Biomass Bio-fuel Cogeneration Total

Accreditation 95.23 0 47.75 0 0 13.5 0 156.48

Registration 32.73 0 38.25 0 0 0 0 70.98

Capacity in MW based on Type of RE Source (As on 29th March 2013) 2500.00 2142.46 1922.86

2000.00

Capacity Accredited (in MW) Capacity Registered (in MW)

1500.00 1000.00

787.87 584.95

562.9

683.3

500.00 0

0

80.16 61.91

208.0 187.5 0

16 0

0

0.00 Wind

Solar Thermal

Solar PV

Small Hydro Geo Thermal

Biomass

Bio-fuel Urban or Cogeneration municipal waste

1.67

1.67

Others

Renewable Energy News States Andhra Pradesh Solar commercial bids opened: On 5th March, APTRANSCO opened commercial bids received for AP Solar bidding and subsequently made the commercial documents of all bidders available on e-Procurement website. Interestingly, 3 new companies – ACME Telepower, NCS Sugar and Tesla Projects – were added by APTRANSCO as bidders in the last minute. An analysis of data by EfficientCarbon revealed interesting insights such as follows: -

Lowest Price Bid – Rs.6.49/Kwh Highest Price Bid – Rs.15.9999/Kwh Average Price of all bids is Rs.8.70/Kwh which is pretty close to CERC benchmark tariff of Rs.8.75/Kwh Majority of the Price Bids were in the range of Rs.8-9/Kwh with equal distribution on either side

More information regarding the analysis is available on our blogpost here.

Andhra Pradesh announces policy on Net Metering: Through G.O.Ms. No. 22 released on 25th March, Andhra Pradesh Government announced its policy on Net Metering along with the applicable guidelines. While it is a welcome move in a state that is power-starved, it is disappointing to note that no tariff has been announced for any excess power injected into the grid. Tariff for excess power would have encouraged more power consumers to setup Roof-top Solar PV plants as they would be convinced of the financial benefits of the system not just in terms of saving in electricity bills but also in terms of additional revenue from sale of excess power. Check out more information on this here.

Karnataka releases RfP for 130 MW Solar PV/Solar Thermal: Kerala has announced an RfP to undertake development of 130 MW of Solar PV/Solar Thermal projects in the state of Karnataka. Here’s the link to more details regarding the same.

Punjab releases RfP for 300 MW Solar Power plants: In line with its New and Renewable Sources of Energy (NRSE) Policy of 2012, Punjab has announced a RfP for 130 MW as part of its plan to add 1000 MW of Solar Power capacity by 2022. The deadline for submission of response to the RfP is 25th April, 2013. Check out our blogpost for more details regarding the same.

Uttar Pradesh releases RfP for 200 MW of Solar Grid Connected Power plants : Walking in the footsteps of Karnataka and Punjab, Uttar Pradesh released an RfP on 15th March, 2013 for procurement of 200 MW of power from Grid-Connected Solar Photovoltaic power plants. The minimum size of the Power projects has been mentioned as 5 MW and maximum has been stated as 50 MW. Projects are to be of capacity in multiples of 5 MW only. More details regarding the RfP are available here.

To Err is Human As true as that quote may be, we try to avoid any mistakes in the information we give our readers. We are happy to inform that there were no mistakes identified in the previous issue of REChronicles. We have ensured that there are no mistakes in the current issue too. Please bring to our notice any mistakes you identify so that we can publish the same in the next issue for the benefit of all the readers. Thank you!!

What next? We hope we have met your expectations thus far. If we haven’t, do write to us or call us on the contact details provided below. Our next issue will contain:  RE Trading Update for April  REC projects capacity addition in April  Policy Update (If any)  More interesting and exciting articles on Renewable Energy developments from across the world and India.

Editorial Team -------------------------------------------------------------------------------------------------------------------------------------Pradeep Palelli Sindhura Gangireddy Managing Partner, Consultant, EfficientCarbon EfficientCarbon -------------------------------------------------------------------------------------------------------------------------------------We would love to hear from you. Drop us an email to [email protected] or give a call on +91-9052224701. Thank you!

About EfficientCarbon

EfficientCarbon (http://efficientcarbon.com/) is a Hyderabad based company working in the Energy, Environment and Sustainability domain. We provide focussed services in the following areas:

Renewable Energy Technical Consulting

REC Advisory

Carbon Management

Sustainability Strategy

Our team consists of graduates from respected institutions such as BITS-Pilani and IFMR-Chennai with several years of experience in companies like Infosys, Godrej and Titan. We are also supported by a team of advisors who, on average, have more than 25 years of experience in the above mentioned areas. We have successfully executed several projects for our esteemed clients such as Maha Cements, Andhra Pradesh State Co-operative Bank (APCOB), Ramco Systems, Capital IQ, GTP Granites and Andhra Pradesh Pollution Control Board (APPCB). Renewable Energy and REC Advisory: We have a highly qualified team with expert knowledge on the commercial and technical aspects of various Solar Energy technologies. Also, we pride ourselves in being capable of delivering the best services on the REC front as we are backed-up by a powerful back-end which constantly monitors the REC Market.

Renewable Energy Certificates

Solar Power Plants

Accreditation, Registration, Issuance and Trading

Financial Analysis for Industrial and Gridscale Evaluating technology options

Financial Analysis for projects Market Assessment and Pre-Feasibility Reports Market Intelligence

Preparing Bid documents for tenders