India’s Largest REC Trading Company
OPEN ACCESS
July 2014
Volume - 43
From Management‘s Desk
The government has announced reinstatement of Accelerated Depreciation
(AD) on wind projects. This is a major development in the renewable ener-
gy industry. In this volume of “OPEN ACCESS” we have analysed the effect
of Accelerated Depreciation on Wind and Solar. AD has been a key market
driver of growth in wind industry in the past, and more recently in the solar
market. Our analysis suggests that the reinstatement of AD on wind pro-
jects will shift the balance in favour of wind investments at the cost of solar
due to more mature policies in states and better tariffs.
Another important development was announcement of the Phase 2, Batch
2 scheme of JNNSM, a total of 1500 MW for 2014-15 and 2015-16. But due
to uncertainty in governments decision on Anti Dumping duty, the Solar
Market stakeholders are not too optimistic.
Maharashtra has released their Wind Energy Policy, 2014. The policy objec-
tive is to promote wind energy in the state and to create opportunity for
MSEDCL to fulfil its Non-Solar RPO. Maharashtra has also opened up to
Solar Open Access and has specifies conditions for the same.
Forum of Regulators, along with MNRE, have discussed the issues related
to RPO. MNRE stressed upon stricter guidelines for RPO.
REC trading in July 2014 continued its poor run in Non-Solar RECs. Volume
traded was among lowest in three years. However, Solar RECs witnessed a
jump in demand of more than 3 times as compared to last month. More
details are covered in relevant section.
We hope this volume to be an insightful read, and as always, look forward
to your feedback.
- Team REConnect
CO
NT
EN
T
Analysis of AD for wind
and its reinstatement in
2014
Regulatory Updates
REC Trade Results
REC Project Stats
Green News
About REConnect
Analysis of AD for wind and its reinstatement in 2014
Analysis of AD
for wind About REConnect Green News REC Project Stats REC Trade Report Regulatory Updates
www.reconnectenergy.com Page 1
38.6%
REC Market
Share in July
PAN
India
Presence
2.1 GW
Projects under
management
Managing REC
Projects in
16
States
Reinstatement of Accelerated Depreciation benefit
for wind and its impact on the Renewable Energy in-
dustry
Earlier this month, after the Union Budget was present-
ed, there was a mention of reinstatement of Accelerat-
ed Depreciation ( AD ) for Wind Energy generators, in
the Hindi version of the budget, whereas it found no
mention in the English version. This caused confusion
in the RE industry circles. However, the government
clarified that AD has indeed been brought back on
wind investments.
Wind Power development in India started in the early
90s. As per Section 80(J) of Income Tax Act 1961, in-
dustries were allowed 80% depreciation on capital in-
vested. Since then till 2012 (when the benefit was re-
moved), Wind Power development and growth has al-
ways relied primarily on Accelerated Depreciation (AD).
New wind capacity additional peaked in 2011-12 at
about 3,200 MW, falling sharply to 1,700 MW the next
year as AD benefits were removed. The argument put
forward at that time by policy makers was that wind
industry had matured, and the focus needed to shift to
solar. This fits well with the objectives of the National
Solar Mission.
The decline in wind investment due to withdrawal of
AD coincided with healthy growth of
close to 60% in Solar Power in 2012-13 and 2013-14.
The market momentum had definitely shifted in favor
of Solar. Our analysis suggests that Wind AD market
had an investible capital of close to 7300 crores. This
shifted to Solar AD market which saw increase in in-
vestments worth Rs 7500 crores during 2012-13.
The new government has announced that it was rein-
troducing AD (80%) in 2014, much to the delight of
Wind Power stakeholders. We believe that the invest-
ment momentum will shift again to wind due to more
mature policies and attractive tariffs.
Wind tariff in recent years have become very attrac-
tive and are close to solar tariff in many states. In Raja-
sthan, Maharashtra and MP, tariff in the range of Rs. 5,
whereas solar tariffs are generally in the range of Rs. 6,
leaving a very small gap.
With this, there will certainly be a diversion in invest-
ments from Solar to Wind power in the times to come.
Our analysis puts the AD in-
vestible capital, over 7300
Crores.
The market is expected to
shift in favor of Wind Power
Analysis of AD for wind and its reinstatement in 2014
Analysis of AD
for wind About REConnect Green News REC Project Stats REC Trade Report Regulatory Updates
www.reconnectenergy.com
38.6%
REC Market
Share in July
PAN
India
Presence
2.1 GW
Projects under
management
Managing REC
Projects in
16
States
Parameter Wind Solar
Preferential
Tariffs Are existent in all wind states Most states have reverse bidding schemes
Extent of PPA
by States Unlimited Generally capped
Poor REC Mar-
ket and weak
RPO compli-
ance
Will not significantly affect wind industry.
RPO compliance is relatively easier due
to lower Non-Solar costs. Uncertainty in
timeline of proposed REC price.
Will significantly affect solar industry as they rely
heavily on REC markets. RPO compliance is difficult
due to high Solar costs. Uncertainty in timeline of
proposed REC price.
Wheeling &
Banking Bene-
fits & Open Ac-
cess
Well defined in many states Not well defined in many states
Anti-Dumping
Duty
Wind industry will not be
Affected. Solar costs will go up significantly.
Forecasting and
Scheduling
Mandatory (No UI and Financial implica-
tions as of now on the projects) Mandatory (No UI implications on the projects)
The Green dots reflect the advantage to the sector.
Regulatory Updates
Analysis of AD
for wind About REConnect Green News REC Project Stats REC Trade Report Regulatory Updates
www.reconnectenergy.com Page 3
MNRE issues draft guidelines for JNNSM phase-2
batch-2 scheme
MNRE (Ministry of New and Renewable Energy), has offi-
cially issued Draft Guidelines for selection of 1500 MW
Grid Solar PV power projects under National Solar Mis-
sion, Phase-II Batch-II Scheme.
Here are some key points of the proposed scheme:
It is to be carried out by NVVN (NTPC Vidyut Vyapar
Nigam Limited) through a transparent, tariff based
reverse bidding process.
NVVN shall enter into suitable Power Purchase Agree-
ment (PPA) with Solar Power Developers and Power
Sale Agreement (PSA) with Distribution Companies/
Utilities/ other Bulk Consumers.
There will be two bid tranche: 750 MW in 2014-15,
and remaining 750 MW in 2015-16.
Projects with minimum capacity of 10 MW and maxi-
mum capacity of 50 MW, and connection level with
transmission utilities at 33kV and above, shall be per-
mitted to bid.
A company can only bid for a maximum capacity of
100 MW per tranche.
DCR to be 500 MW out of the total 1500 MW. It was
50 % (375 MW) in Phase-II Batch-I scheme.
Interested stakeholders are required to send their com-
ments by 23rd July, 2014.
It is interesting to note that out of the target capacity of
9000 MW in Phase 2 (2013-2017), 750 MW bids have
been successfully completed, and as per this scheme 1500
MW bids will be completed by 2015-16. That leaves just 2
years i.e. 2016-17 and 2017-18 for the remaining 6750
MW of bid capacity.
Target achievement will be difficult but not impossible,
considering that by 2017 India aims to achieve Grid Parity
with respect to Solar Power, by extending the incentives
(concessional customs duty) given to the Solar manufac-
turing sector and inflow of funds from NCEF.
The draft document can be accessed here.
Our previous Blog on JNNSM Phase-II Batch-I can be ac-
cessed here.
Forum of Regulators discusses Issues of RPO
Forum of Regulators (FOR) held its 41st meeting on 27th
June 2014, in Delhi. The Ministry of New and Renewable
Energy (MNRE), through a presentation, raised several
issues concerning Renewable Purchase Obligation (RPO).
The Key issues highlighted in the presentations are as
below:
MNRE suggested that the validity REC’s should be
extended by 6 months, arguing that a total of 50059
REC’s will expire in next six months.
MNRE could consider purchasing the unsold REC’s by
using National Clean Energy Fund.
The Floor price of Solar REC’s can be reduced due to
drastic change (reduction) in Solar PV tariffs over last
three years.
Giving “MUST RUN” status to RE generation, so that
total RE generation could be evacuated, and have a
provision of “Deemed Generation” in case SLDC
asked RE generators to back down.
Due to poor RPO compliance, the members agreed
upon the need of strong RPO enforcement.
RPO compliance cost should be allowed in ARR
(Average Revenue requirement).
The issue of allowing DISCOM’s to purchase REC’s for
procuring Renewable Energy beyond their RPO tar-
gets was also discussed.
The forum suggested that a concept of Renewable
Generation Obligation (RGO) for conventional Ther-
mal power plants need to be introduced.
Suggestions were given on considering power gener-
ated from Large Hydro Projects as Renewable Ener-
gy.
The Forum also suggested that the concept of Hydro
Power Obligation should be introduced.
From the issues discussed in the meeting it can be de-
duced that the regulators may come up with strong
steps towards RPO compliance. Also, the regulators are
set to promote RE generation by making provision for
providing proper transmission network for RE genera-
tion.
More information can be accessed here.
India’s largest REC Trading Company
Regulatory Updates
Analysis of AD
for wind About REConnect Green News REC Project Stats REC Trade Report Regulatory Updates
www.reconnectenergy.com Page 4
Haryana hikes Cross Subsidy Surcharge
In a move that will make open access non-viable for con-
sumers in Haryana, cross-subsidy for all the categories of
consumers in Haryana has been hiked significantly. The
increase is in the range of 83% to 281%, making it more
difficult to sourcing power through open access.
In the recent tariff order released by Haryana Electricity
Regulatory Commission (HERC) on 29th May, 2014, the
cross-subsidy surcharge has been hiked significantly, as
shown in the graph and table below:
Apart from the extremely high cross-subsidy surcharge,
consumers have also been burdened with an additional
surcharge of Rs 0.50/kWh. HERC has levied the additional
surcharge with respect to the stranded capacity due to
the open access consumer availing power from alternate
sources.
For details on CSS click here .
MERC Allows Solar Open Access in Maharashtra
MERC (Maharashtra Electricity Regulatory Commission)
through an order on 6thMay 2014, has allowed Open Ac-
cess for the Solar Power in Maharashtra.
The order has come in response of a petition filed by GEA
(Green Energy Association – an association whose mem-
bers are investors in Solar REC space), wherein GEA has
requested MERC to direct MSEDCL to issue the Open Ac-
cess permissions to the solar power generators of the
state and also to issue credit notes for the energy injected
by the solar generators into the system till date.
The Regulatory Commission said that petition filed by
GEA stands disposed of, citing the reason that MSEDCL
cannot be partial towards any particular RE Source, and it
has already granted Solar OA permission to BEST in
Mumbai.
However the Commission has directed MSEDCL to allow
the Open Access through solar generator as single
source only, as Distribution OA through multi source is in
the process of amendment. The Commission also di-
rected MSEDCL to continue the procedures followed for
allowing Open Access permissions through RE genera-
tors during previous financial year, and to issue all pend-
ing credit notes till date.
The detailed MERC order can be accessed here.
KERC Amends Open Access-W&B Charges for RE
Generators
Karnataka Electricity Regulatory Commission (KERC),
through its order on 04th July 2014, has amended the
KERC (Terms and Conditions for Open Access) Regula-
tion, 2014 and has computed the wheeling and Banking
charges for Renewable energy generators.
The commission issued a discussion paper on 11th June
2014, and invited comments and suggestion from stake-
holders. On 25.06.2014, the commission held a public
hearing during which many RE generators requested the
commission to either maintain the W&B charges at the
current level or to reduce it, stating the reasons that Kar-
nataka is an energy deficit state and RE power being dis-
tributed power, will reduce the need for additional trans-
mission network.
In the view of the above, the commission’s final order is
as follows:
The wheeling charges shall continue to be 5% of the
injected energy for Wind, Mini Hydro, Biomass and
Bagasse Cogeneration plants.
The banking charges shall continue to be 2% the in-
jected energy and is applicable for Wind and Mini
Hydro projects only.
The annual banking facility shall continue for Wind,
Mini Hydro and Solar energy projects, under Non-
REC mode.
W&B charges and CSS shall continue to be exempted
for Solar projects till 31st March 2018, under Non-REC
mode.
India’s largest REC Trading Company
Regulatory Updates
Analysis of AD
for wind About REConnect Green News REC Project Stats REC Trade Report Regulatory Updates
www.reconnectenergy.com Page 5
The banked energy at the end of the financial year
shall be purchased by distribution licensee at 85% of
the generic tariff determined by the commission in its
latest order.
The commission has also decided to discontinue the
additional UI charges payable between the time of
Injection and time of Drawal, for both existing as well
as the new projects availing the banking facility.
The normative wheeling and banking charges applica-
ble for Non-RE generators, will also be applicable for
Captive RE generators availing REC’s
The charges shall be applicable to the above mentioned
renewable energy projects commissioned on or before
31.03.2014, and shall be valid for a period of 10 years
from the date of commissioning of projects or units.
On requests of solar generators, to extend the period of
applicability beyond 2018, the commission has issued a
discussion paper in this regard, and has invited com-
ments till 22nd July 2014.
Click here for more details on the order.
Maharashtra (MSEDCL) Wind Energy Policy, 2014
Maharashtra State Electricity Distribution Co. Ltd.
(MSEDCL) has come up with its wind energy policy in con-
sultation with the MEDA (Maharashtra Energy Develop-
ment Agency) in order to promote the wind energy gen-
eration in the state. The policy was notified on 3rd June,
2014, and will be applicable on projects commissioned in
FY 2014-15 and onwards.
This can be taken as a positive step by MSEDCL towards
RPO compliance. Under the PPA, the entire power pro-
duced will be sold to MSEDCL. Since power is to be sold
at tariff determined under PPA with MSEDCL, therefore
the projects cannot avail REC’s.
Processing Fee – The wind power developer has to sub-
mit a non-refundable processing fee of Rs. 1.00 Lac per
MW of grid connectivity. Extension of 6 months shall be
granted on valid grounds as per directives of MSEDCL. If
the generator fails to commission the project within ex-
tended period, they will have to re-apply for grid connec-
tivity.
MSEDCL has also set up time limits for connectivity per-
mission as given below:
India’s largest REC Trading Company
Deposit – The wind project developer has to submit a
Performance Bank Guarantee of Rs. 5.00 Lacs per MW for
sanction of gird connectivity, towards security deposit.
Wind Power Scheduling – It is mandatory for the gener-
ator to forecast and schedule the power produced, as per
CERC guidelines.
More details on the order can be read here.
Karnataka: Approved Tariff for Biomass Projects
Karnataka Electricity Regulatory Commission (KERC)
through an order on 10th July 2014, has determined tariff
for Air Cooled Condenser based Biomass Projects. The
order has come in response of a petition filed by M/s Ha-
veri Bio Energy Pvt. Ltd.
A hearing was held on 15th May 2014. After hearing all
the respondents the commission approved the final tariff,
the details of which is shown below:
The average of the tariffs works out to be Rs. 5.54/KWh.
This tariff shall be applicable for all the Air Cooled Con-
denser based Biomass Projects achieving commercial op-
eration in the period from 01.04.2014 to 31.03.2018.
The relevant order can be accessed here.
RERC Draft Solar Tariff Policy for FY 2014-15
Rajasthan Electricity Regulatory Commission (RERC) on
23rd June 2014, has proposed a levellized tariff under a
draft regulation (RERC Terms & Conditions for Determi-
nation of Tariff for Renewable Energy Sources – Wind and
Solar Energy Regulations, 2014) issued for Solar power
Capacity Time Limit for Commissioning
Up to 50 MW 15 Month + 6 Month Exten-
sion
Above 50 MW and up to
150 MW
21 Month + 6 Month Exten-
sion
Above 150 MW 30 Month + 6 Month Exten-
sion
Year 1st Year
2nd Year
3rd Year
4th Year
5th Year
6th Year
7th Year
8th Year
9th Year
10th Year
Tar-iff Rs./Unit
5.15 5.21 5.29 5.37 5.46 5.55 5.66 5.78 5.9 6.04
Regulatory Updates
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India’s largest REC Trading Company
generators of the state. The brief summary of the pro-
posed draft is as below -
RERC has invited the comments and suggestions by 18th
July 2014, and a hearing on the matter will be held on
31st July 2014 at RERC’s office, Jaipur.
The tariff proposed for FY 14-15 is lower than the tariff of
previous year in case of Solar PV and Rooftop Solar PV,
and is higher in case of Solar Thermal Power Plants. It can
be said that the reason behind the reduction in the tariff
of Solar PV is because of decreasing prices of Solar PV
cells and overall project execution cost.
The RERC draft order can be accessed here .
RERC Approves APPC for Rajasthan Discoms
Rajasthan Electricity Regulatory Commission (RERC) in its
orders dated 21st July 2014, has approved the Average
Power Purchase Cost (APPC) for its DISCOM’s. Honoura-
ble commission approved APPC of FY 12-13 & FY 13-14
for Jodhpur Discom and APPC of FY 13-14 for Jaipur Dis-
com.
The Order came in response of petitions filed by the Dis-
coms for the approval of the APPC. The details of the ap-
proved APPC are highlighted below:
Previously commission in its order on 12th Dec 2012 de-
termined a provisional APPC at Rs. 2.75/Unit for FY 12-13
for which the Jodhpur Discom through a petition request-
ed commission to revise the provisional APPC (which has
now been approved at Rs. 2.67/unit). While no APPC was
determined for FY 13-14.
A graph below is showing the APPC’s approved over last
three years:
It is evident from above that the APPC for Jodhpur Dis-
com is less in case of FY 12-13 compared to FY 11-12,
which is because the commission in its order determined
provisional APPC for FY 11-12 at Rs. 2.57/unit ,for which
Jodhpur Discom, in 2013, requested commission to revise
and to approve the APPC at 2.73 Rs./unit, which the com-
mission approved on 03rd December 2013.
It is quite evident that the commission has approved a
higher APPC for Ajmer Discom compared to Jaipur Dis-
com, whereas their APPC was the same for the previous
two FY. The difference, as quoted by JUVVNL, is because
of the variation in the time period of bills received and
payments made by each discom, for purchase of power
from Rajasthan Discoms Power Procurement Center
(RDPPC).
S.
No
.
Particulars
Tariff
(Rs./
kWh) if
AD ben-
efit is
not
availed
Tariff (Rs./
kWh) if
AD benefit
is availed
1
Solar Photo Voltaic (PV)
Power Plants commissioned
by 31.3.2016
7.39 6.52
2 Solar Thermal Power Plants
commissioned by 31.3.2017 11.65 10.23
3
Roof Top Solar PV installa-
tions and other small solar
PV power generation plants
to be commissioned by
31.3.2016
7.39 6.52
4
Small Solar Thermal Power
generation plants to be com-
missioned by 31.03.2017
11.65 10.23
DISCOM Year approved APPC
Jodhpur Discom 2012-13 2.6713
Jodhpur Discom 2013-14 3.078
Jaipur Discoms 2013-14 3.0865
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India’s largest REC Trading Company
The order for Jaipur Discom APPC FY 13-14 can be ac-
cessed here.
The order for Jodhpur Discom APPC FY 13-14 can be ac-
cessed here.
The order for Jodhpur Discom APPC FY 12-13 can be ac-
cessed here.
APTEL’s verdict on inclusion of Banked Energy in ac-
counting APPC
Appellate Tribunal for Electricity (APTEL) in a judgment on
01st July 2014 has dismissed a petition filed by Himalaya
Power Producers Association (Association of persons who
are involved in the development and promotion of hydro
power projects in Himachal Pradesh).
The summary on the petition and the judgement can be
found in below mentioned points:
The Association through petition requested before
APTEL that the State Commission has erroneously in-
cluded electricity procured through banking (banked
energy) for the calculation of Average Pooled Power
Purchase Cost (APPC) for FY 13-14.
The Association argued that such inclusion of Banked
energy in the determination of APPC leads to an artifi-
cially reduced APPC, which is threatening the Renewa-
ble Energy Generators in the state.
After hearing all the respondents, the Tribunal dis-
missed the appeal of the Association saying that the
state commission has legally and correctly included
the banked energy in the determination of the APPC
for FY 13-14, citing regulatory reasons in support of
the method followed by the state commission.
This order also gives a detailed insight into what is Bank-
ing of Energy, and its effect on calculation of APPC.
The more details on the APTEL judgment can be ac-
cessed here.
Our previous blog post on Himachal Pradesh APPC can be
read here.
CSERC Drafts RE Tariff for FY 2014-15
Chattisgarh State Electricity Regulatory Commission
(CSERC) has released a draft on 18th July 2014 for the de-
termination of preferential tariff for Renewable Sources of
Energy. The commission has invited comments and sug-
gestions latest by 12th August 2014 and a public hearing
will be held for the same on 22nd August 2014.
The details of the proposed tariff are highlighted in the
table below:
The tariff proposed by the CSERC is in line with the tariff
determined by CERC (Refer). CSERC has reduced the solar
tariff compared to previous years, whereas there is slight
increase in tariffs of other RE sources.
The CSERC draft can be accessed be here.
- End of the article -
RE Technology
Levellised
Total Tar-
iff Rs/kWh
Wind Energy Power Projects
Wind Energy: Annual Mean Wind Power
Density (W/m2) up to 200 (Wind Zone 1) 6.36
Wind Energy: Annual Mean Wind Power
Density (W/m2)=201-250 (Wind Zone 2) 5.78
Wind Energy: Annual Mean Wind Power
Density (W/m2)=251-300 (Wind Zone 3) 5.08
Wind Energy: Annual Mean Wind Power
Density (W/m2)=301-400 (Wind Zone 4) 4.24
Wind Energy: Annual Mean Wind Power
Density (W/m2)>400 (Wind Zone 5) 3.97
Mini/Micro Hydro and Small Hydro Power Projects
Up to 2 MW (Mini/Micro Hydro) 5.79
Below 5 MW 5.29
5 to 25 MW 4.5
Biomass based Power Projects
Fixed Cost 2.58
Variable Cost for FY2014-15 3.96
Non-Fossil Fuel based Co-Generation Projects
Fixed Cost 3.64
Variable Cost for FY2014-15 3.34
Solar Power Projects
Solar PV 7.74
Solar Thermal 11.91
REC Trade Report - July 2014
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India’s largest REC Trading Company
Non Solar RECs
In July 2014, Demand and clearing ratios touched one of the lowest points in three years. Demand in July was 31809,
compared to 139454 in June (down 77.2% over June) and down 80.3% from July last year. Clearing ratios at IEX
was .32%, whereas at PXIL it was .45%.
The total transactional value of non-solar RECs was INR 47.7 million, down from close to 200 million in June. The
closing balance of REC inventory for non solar RECs stood close to 85.2 million mark this month.
:
For more details please visit our blog-post here.
For past trading history - CLICK HERE
5515639
65066296959614
7218712
1070344482240 398552
1337695
79354 29255 139454 318090
1000000
2000000
3000000
4000000
5000000
6000000
7000000
8000000
April May June July
Non-Solar RECs
Available Issued Redemmed
0.57%0.54%
1.60%
0.32%
2.29%
0.36%
2.33%
0.45%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
April May June July
Non-Solar Clearing %
IEX PXIL
REC Trade Report - July 2014
Analysis of AD
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Updates
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India’s largest REC Trading Company
Solar RECs
In July 2014, demand improved staggeringly from 1654 RECs last month to 6633 RECs. As a result, clearing ratios im-
proved as well – 0.28% in IEX and a whooping 5.5% on PXIL, albeit on very low demand compared to existing inven-
tory.
The total transactional value of Solar RECs was INR 61.5 million. The closing balance of REC inventory for Solar RECs
stood close to 27.5 million mark this month.
For more details please visit our blog-post here.
For past trading history - CLICK HERE
140338
183082
213738
239871
4373332776 27787
42245
989 2120 1654 6633
0
50000
100000
150000
200000
250000
300000
April May June July
Solar RECs
Available Issued Redemmed
0.56%
0.26%
0.43% 0.28%
0.48%
4.90%
1.15%
5.50%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
April May June July
Solar Clearing %
IEX PXIL
REC Project Status - As on Aug 5th, 2014
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Registered Capacity 4460
MW
India’s largest REC Trading Company
Projects Registered
Source wise
All figures
in MW
Secu-
rity
Biomass
705
Small Hydro
288
Solar PV
496
Wind
2223 Bio-fuel
Cogeneration
745
Projects Registered
State wise (Figures in MW)
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India's wind power potential over one lakh MW: Govt.
An assessment by the Ministry of New and Renewable Energy has estimated that the total wind power potential
of Indiawas over one lakh MW, the Lok Sabha was told today. In his written reply, Minister of State for Power, Coal
& New and Renewable Energy Piyush Goyal said, a wind resource assessment programme has been implemented
by the ministry through the Centre for Wind Energy Technology (C-WET) to estimate the wind potential in the
country and identify suitable sites of installation of wind power programme. Source: Business Standard.
India’s Uttar Pradesh Plans 300-Megawatt Solar Auction
India’s Uttar Pradesh state has invited companies to bid for contracts to build 300 megawatts of solar photovoltaic
capacity. Companies must submit their bids by Sept. 8, the Uttar Pradesh New and Renewable Energy Development
Agency said in a notice on its website. Separately, the agency is planning another auction of 20 megawatts aimed
at developers seeking smaller projects of less than 5 megawatts, Namrata Kalra. Source: Bloomberg.
India's largest ultra mega solar power plant planned in Madhya Pradesh
Plans are afoot to set up the country's largest ultra mega solar power plant (UMSPP) in Madhya Pradesh's Rewa
district, a senior official said on Thursday. The plant, to produce 700 MW of electricity, would require an investment
of Rs 4,000 crore, state's additional chief secretary for new and renewable energy S R Mohanty told PTI. Source: The
Times of India
Antidumping duty: Finance Ministry considering DGAD view on solar cells
Finance Ministry is considering the suggestions of Director General of Antidumping and Allied Duties to impose
duty on imports of solar cells, Parliament was informed today. DGAD has stated in its findings that solar cells, mod-
ules or panels have been exported to India from China, Taipei, Malaysia and USA below the normal value, resulting
in the dumping of the product. Source: The Economic Times.
MNRE bats for strict renewable power obligation compliance
The ministry of new and renewable energy sources (MNRE), headed by Piyush Goyal, has pleaded the state electric-
ity regulatory commissions to consider exercising their statutory authority and issue directions to state distribution
companies (discoms) for ensuring renewable power obligation (RPO) compliance. Source: Business Standard
Power ministry, regulators contemplate ways to develop renewable energy
Electricity regulators and power ministry are contemplating steps to make it mandatory for conventional power
project developers to set up renewable energy plants in future, while distribution firms may have to purchase more
clean energy, but regulatory authorities are concerned that this may hurt loss-making utilities Source: Economic
Times
Why India’s RPO mechanism is failing
In India, the renewable energy certificate (REC) mechanism, introduced in 2010, is a market-based instrument to
promote renewable energy and facilitate compliance of renewable purchase obligations (RPOs). It is aimed at ad-
dressing the mismatch between availability of renewable energy resources in a state and the requirement of the
obligated entities to meet the RPO. Source: Financial Chronical
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India’s RPO Map
Analysis of AD
for wind RPO Map Green News REC Project Stats REC Trade Report Regulatory Updates
www.reconnectenergy.com Page 12
* BESCOM,MESCOM, CESC - 10 % + 0.25%, HESCOM, GESCOM, Hukkeri Society - 7 % + 0.25%.
Status of Regulation - Final for all states except -
Draft for Goa & UT( Draft Amendments of targets )
RPO on OA Users? - Yes for all states except West Bengal.
Karnataka (5.00% RPO) - Yes (> 5MW).
RPO on CPP? - Yes for all states except West Bengal.
Gujarat, Odisha, Haryana, Bihar, Jharkhand, Tripura, Karnataka (5.00% RPO) - Yes (> 5MW).
RPO Penalty? - Yes (RECmax) for all the states.
West Bengal - Not Specified.
States
2014-15 RPO
Obligation
(Non Solar)
2014-15 RPO
Obligation
( Solar)
Andhra Pradesh 4.75 % 0.25 %
Assam 6.75 % 0.25 %
Arunachal Pradesh 6.80 % 0.20 %
Bihar 4.25 % 0.75 %
Chhattisgarh 6.00 % 0.75 %
Delhi 5.95 % 0.25 %
Gujarat 6.75 % 1.25 %
Haryana 3.00 % 0.25 %
Himachal Pradesh 10.00 % 0.25 %
J&K 5.25 % 0.75 %
Jharkhand 3.00 % 1.00 %
Karnataka 10.00 % * 0.25 % *
Kerala 4.39 % 0.25 %
Madhya Pradesh 6.00 % 1.00 %
Maharashtra 8.50 % 0.50 %
Meghalaya 0.60 % 0.40 %
Odisha 6.25 % 0.25 %
Punjab 3.81 % 0.19 %
Rajasthan 7.50 % 1.50 %
Tamil Nadu 11.00 % 2.00 %
Tripura 2.50 % 1.05%
Uttarakhand 7.00 % 0.075 %
Uttar Pradesh 5.00 % 1.00 %
West Bengal 4.35 % 0.15 %
Goa & UTs 2.70 % 0.60 %
Manipur 4.75 % 0.25 %
Mizoram 14.75 % 0.25 %
Nagaland 7.75 % 0.25 %
India’s largest REC Trading Company
About REConnect
Analysis of AD
for wind RPO Map Green News REC Project Stats REC Trade Report Regulatory Updates
www.reconnectenergy.com Page 13
REConnect Energy is India’s leading renewable energy trading company. We provide end-
to-end services for projects in the Renewable Energy Certificate mechanism – from con-
tract structuring, advisory to monetization of RECs. We also work with power consumers to
manage Renewable Purchase Obligation (RPO) liabilities, and develop and execute their
energy sourcing strategy. We are a knowledge focused company that prides itself in
providing premium services to our clients backed by in-depth research and analysis.
Our other prime area of focus is, facilitating Private PPAs (OTC) by bringing RE Generators
and HT Consumers onto a single platform called Clickpower, which we have developed
specifically for this purpose. It is India’s First Green Energy Marketplace.
REConnect is run by an experienced and professional team. The team consists of members
with relevant experience of working at IEX, L&T, JP Morgan, Arthur Andersen and Gensol.
Key members of the team are alumnus of IIT Bombay, Columbia University (an Ivy League
university) and IIT Kharagpur.
For more details of services provided and profile of the management team, please visit our
website.
Contact Details
Bangalore:
Vishal Pandya
No. 2, Victor Mansion , 2nd floor,
Kodihalli, Old Airport Road,
HAL 2nd Stage (PO),
Bangalore—560008
O : 080 - 6547 3383 / 84
New Delhi:
Vibhav Nuwal
C– 503, 5th Floor, Nirvana court-
yard, Nirvana Country, Sector 50,
Gurgaon 122018.
O : 0124 - 4103216
F : 080 - 30723571
Chennai:
Vishal Pandya ( +91 9620221101 )
# 18/1 (88), 2nd Floor, Aarya Gowda
Road, West Mambalam,
Chennai - 600 033.
Hyderabad:
Bhanu Tejja ( +91 7799874036 )
Solar Market:
Anurag Dhyani
(+91 7760300499 )
India’s largest REC Trading Company
Mumbai:
Ram Kumar ( +919930359992 )
1013, 10th Floor,
Micro (Haware) Infotech Park,
Plot no. 16, Sector-30A, Vashi,
Navi Mumbai- 400705,
Maharashtra, India.
Renewable Purchase Obligation (RPO):
Chetan Singh Adhikari ( +91 9910772666)
Renewable Regulatory Fund (RRF):
Vineet Shastry (+91 9972290511)
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