REChronicles - From the Editor's desk - EfficientCarbon

Sep 25, 2013 - The number of Non-Solar Buy-bids still remained low, similar to that of August. Solar REC buy- .... email at [email protected]/[email protected].com or give a call on ... Environment and Sustainability domain.
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REChronicles - From the Editor’s desk Hello Readers. Hope you enjoyed reading our previous issue of REChronicles. This month too has seen a number of happenings in the RE Industry. The demand for Non-Solar RECs saw a slight increase this month as compared to August. On the Solar REC front, there was a significant increase in demand. Similar to last month, the supply was higher than demand. This month again, owing to the massive influx of RECs issued, the supply was about around 7.3 times that of the demand with the solar inventory once again closing at an all-time high. On the national policy front, SECI released the RfS for Phase-III of Grid connected Solar Rooftop bidding. At the state level, quite a few updates this time. APTRANSCO finally issued an open offer inviting solar developers to sell solar power at Rs. 6.49/ unit. Coming to Tamil Nadu, the air finally seems to be clearing up with TANGEDCO having held an exclusive meeting with all the 53 developers following which it has been reported that the PPAs might be signed by the end of October. Moving North, Bihar once again extended the last date for its 150 MW Solar PV bid. Daman and Diu have invited a tender to engage EPC contractor for setting up Solar PV projects. On the Rooftop PV front, Chhattisgarh released a draft tariff document for procurement of power from Rooftop Solar PV projects. Rajasthan released a Tender document to select suppliers for its Rooftop Solar scheme. Punjab announced a draft document with guidelines on Net Metering for Grid connected Rooftop SPV power plants. Further information on these updates is in the Renewable Energy News section on pg.6 of this issue. We have, as always put in our best efforts in order to come up with the articles in this issue. We hope you enjoy reading them as much as we did while preparing this issue. Kindly give us your valuable feedback on how we can improve REChronicles and make it even more interesting for you to read. Happy reading!!

REC Trading Update – September 2013 REC Inventory: Opening at close to 3.18 Million, September trading session closed with the inventory balance of 3.71 Million RECs. The following sections give an update on the Non-Solar and Solar front.

Non-Solar The month of September started with an Opening Balance of 3157326 Non-Solar RECs. Over the course of the month, 567952 Non-Solar RECs were issued thus putting the available number at 3725278. Of these, only 3449796 were put up for trading. Buy bids of 49831, all of which were cleared, led to a closing balance of 3675447. Following table gives the Non-Solar REC Inventory statistics for the last 3 months. Non-Solar REC Inventory for Jul-2013 to Sep-2013 (as on 25-Sep-2013) Month, Year

Opening Balance

REC Issued

REC Redeemed

Closing Balance

July, 2013

2407831

462962

161402

2709391

August, 2013

2709391

488824

40889

3157326

September, 2013

3157326

567952

49831

3675447

Solar Opening at 30182 Solar RECs, 20350 were issued over the course of the month which is the highest so far thus putting the total available Solar RECs at 50532. Of these, 49521 were put up for trading. The trading session closed with a Closing Balance of 43820 after the redemption of 6712 Solar RECs. Following table throws more light on the Solar REC Inventory statistics for the last 3 months. Solar REC Inventory for Jul-2013 to Sep-2013 (as on 25-Sep-2013) Month, Year

Opening Balance

REC Issued

REC Redeemed

Closing Balance

July, 2013

4453

17227

2029

19651

August, 2013

19651

12890

2359

30182

September, 2013

30182

20350

6712

43820

REC trading: The number of Non-Solar Buy-bids still remained low, similar to that of August. Solar REC buy-bids however increased significantly as compared to last month with the clearing price still remaining at floor price – Rs.9300. This section has more information on Non-Solar and Solar REC trading along with the forecast for next month.

Non-Solar RECs Trading: The demand for non-solar RECs increased this month by 21.8% as compared to the previous month. As is the trend, all the Buy Bids (49831) were cleared. This resulted in a Trading Value of Rs.7.47 Crores. Clearing Price stood at the usual Rs.1500 owing to oversupply. 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 July’13 – Sept‘13

V o l u m e

3900000 3600000 3300000 3000000 2700000 2400000 2100000 1800000 1500000 1200000 900000 600000 300000 0

2000 3449796 2772198

2974694 1500

1900 1800 1700

1500

1600 1500

1500

1400 1300 1200 161402

40889

49831

1100 1000

July'13 Buy Bid (No. of certificates)

August'13 Sell Bid (No. of certificates)

September'13 Traded Volume

Clearing Price

Forecast for October trading session: The Non-Solar inventory closed at a balance of 3.67 Million RECs. Clearing Price is bound to stick to the Floor Price of Rs.1500/REC as the inventory continues to pile up and the demand continues to stay low.

P r i c e

Solar RECs Trading: This month, supply of solar RECs was 7.3 times that of demand. The clearing price for both the exchanges remained at the floor price – Rs.9300/REC. The total number of Sell Bids was 64.5% more than that of August and the total number of Buy Bids was a significant 184.5% more. Also similar to last month, all the Buy Bids (6712) got cleared resulting in a Trading Value of Rs.6.24 Crore which is the highest so far. 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 July’13 – Sept‘13

55000 49521

50000 V o l u m e

13000

45000 40000

12000

35000 30000

11000 30099

25000 20000 15000 10000 5000 0

21680

9300 2029 2029

July'13 Buy Bid (No. of certificates)

10000 9300

9300

2359 2359

6712 6712

August'13

September'13

Sell Bid (No. of certificates)

9000 8000

Traded Volume

Clearing Price

Forecast for October trading session: Similar to last month, all the solar REC buy bids got cleared this month and there is a possibility of this trend continuing in the coming months as well. Also, with the solar inventory closing at a balance of 43820, it is quite possible for the supply of Solar RECs to continue to overshoot the demand and the clearing price to remain at the bottom, unless the demand increases heavily.

P r i c e

REC Capacity Addition – September’13 A total of 58.7 MW was Accredited and 119.1 MW Registered during the course of the month. The tables below indicate the Resource-wise capacity addition in September and the total capacity as on 25th September, 2013. Capacity Addition (MW) in September (As on 25th September 2013) S.No. 1. 2. 3. 4. 5. 6. 7. 8. 9.

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

Accreditation 18.6 0 0 15.1 25 0 0 0 0 58.7

Registration 68.55 0 0 12 0 0 0 27.55 11 119.1

Capacity in MW based on Type of RE Source (As on 25th September 2013) 2500.00

2257.38 2106.84

Capacity Accredited (in MW)

2000.00

Capacity Registered (in MW) 1500.00 1000.00 639.90

500.00

777.87 610.4

680.3

186.78 174.68 243.0 197.5 3

0

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 National SECI – RfS for Grid Connected Rooftop Solar PV – Phase III: After successfully concluding Phase 1 and 2 bidding process for developing Solar PV systems in selected cities, Solar Energy Corporation of India (SECI) has released a RfS document inviting bids for Phase 3. The total tendered capacity for this phase is 10 MW spread across 9 cities. Here is the link to our blogpost for more information on this RfS.

State APTRANSCO issues Open Offer to Solar Power Developers: APTRANSCO has finally issued Open Offer inviting Solar power developers to sell Solar Power at Rs. 6.49/unit. According to the notification issued, interested parties have until 30th September, 2013 to submit their application. More information regarding this offer is available on our blogpost here. Chhattisgarh – Tariff for power procurement from rooftop PV by State Discom - Draft: Chhattisgarh has released a draft tariff document adding itself to the list of states that have announced Rooftop Solar PV schemes. This document is to determine the tariff for procurement of power from Rooftop Solar PV projects by the state distribution licensees. Here is a link to our blogpost for more details regarding this draft document. Rajasthan – Tender to select suppliers for Rooftop Solar scheme: Rajasthan Renewable Energy Corporation Limited (RREC) released a document for Rate Contract to select MNRE approved Channel Partners/ SPV Module manufacturers for work under its Rooftop Solar Power Generation scheme. More information regarding this tender can be accessed on our blogpost here. Punjab - Net Metering Guidelines – Draft: Government of Punjab has recently released a draft document with Guidelines on Net Metering Grid Interactive Rooftop SPV Power plants. They are applicable to individual homes, industries, officies, commercial establishments etc. Details about these guidelines are available on our blogpost here.

Daman and Diu – Tender – Engaging EPC Contractor for Solar PV projects: The Electricity Department of Daman and Diu has invited tender to engage EPC contractor for setting up a 1MW Grid connected Solar PV project at Daman and a 3 MW Grid connected Solar PV project project at Diu. Here is a link to our blogpost for more details regarding this tender. Bihar – Another extension of last date for its 150 MW Solar PV bid: Bihar once again extended the last date for Setting up of Grid connected and Solar PV projects coupled with Pisci-culture. As per the new Corrigendum released, the new deadline for online sale of tender document is 25th September, 2013. Our blogpost for more details regarding this extension can be accessed here. Tamil Nadu Solar Bidding Update: TANGEDCO held extensive meetings with all 53 developers and apparently the PPAs might be signed by the end of October. This might result in signing of PPAs close to 700 MW of Solar projects all of which might be up and running by the end of 2014. More information about this update can be accessed on our blogpost 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. Following are the corrections in our August issue:  REC Inventory – Page 2: Line 2 of Solar Inventory Section mentions that all the ‘32541’ Solar RECs available were put up for trading. Only ‘30099’ were put up for trading.  Solar RECs Trading – Page 4: Line 8 should read ‘30182’ instead of ‘19651’  REC Capacity Addition – Page 5: Line 2 should read ‘August’ instead of ‘June’ Please make note of the above corrections. We have ensured that there are no mistakes in the current issue. 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 that we have met your expectations thus far. If you think 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 October  REC projects capacity addition in October  Policy Update (If any)  More interesting and exciting articles on Renewable Energy developments from across the world and India.

Editorial Team -------------------------------------------------------------------------------------------------------------------------------------Pradeep Palelli Harini Challapally Managing Partner, Consultant, EfficientCarbon EfficientCarbon -------------------------------------------------------------------------------------------------------------------------------------We would love to hear from you. Drop us an email at [email protected]/[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 reputed 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 an 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