Presentation By:

POWER TECH CONSULTANTS1-A/6, Swati Villa Surya Vihar

Link Road, Cuttack-753012

Phone:9437155337, 06712328844

Email: pwrtch@gmail.com

AREAS OF EXPERTISE

• Preparation of DPR, TEFR & Providing Owner’s Engineer

Services for Establishment of Solar Photo Voltaic Power

Plant, Bio mass Power Plant, Coal based Power Plant, Gas

based Power Plant

• Technical Consultancy on Renewable Energy based

Project, Renewable Energy Certificates, Registration &

Accreditation of new RE project in REC scheme, REC

Trading in the Power Exchange

•Investment Grade Energy Audit, Base Line Energy Audit

and Detailed Energy Audit of all kinds of Industry

•Technical consultancy on Regulatory, Commercial Issues

of Power Supply, Power Trading, Power Purchase

Agreement, OERC, GRIDCO, OPTCL, DISCOM related

issues.

ABOUT POWER TECH CONSULTANTS

•Power Tech Consultants is the first firm in Orissa to beempanelled by Ministry of New & Renewable Energy(MNRE), Govt. of India for preparation of Validation andverification Report for Biomass Power Project underUNDP/GEF assisted scheme.

•Power Tech Consultants members have been selected asNational Level Monitor by MNRE to evaluate and regularmonitoring of Renewable Energy projects implemented byMNRE in various states.

•Power Tech Consultants is the first firm in Orissa to betechnically qualified for Conducting Baseline Energy Auditof the Designated Consumers under the Perform Achieveand Trade (PAT) Scheme of National Mission on EnhancedEnergy Efficiency (NMEEE) of Bureau of Energy Efficiency(BEE)under Ministry of Power, Govt. of India

ABOUT POWER TECH CONSULTANTS

•Power Tech Consultants is empanelled by PCEI-EIC, SDA ofGovt. of Odisha; MPUVNL, Govt. of Madhya Pradesh & CREDA,Govt. of Chhattisgarh for under taking Energy Audit of Industry.

•Power Tech Consultants is the first firm in Orissa to beempanelled by EESL, Ministry of Power, Govt. of Power forpreparation of DPR on the waste heat Recovery Potential in SMESector for the state of Haryana, Punjab and Kerala

•Power Tech Consultants has completed energy audit of 1240MW KSTPS, 2x250 MW CTPP, 3x33 MW RGTPP, 2x125 MWGLTPP, 3x110 MW DCCPP, OERC Building, Ordnance FactoryBadmal, Ministry of Defenses, HPCL, Mumbai Refinery.

•Power Tech Consultants is the first firm in Orissa to be selectedfor under taking Investment Grade Energy Audit (IGEA) andEnergy Management in association with Federation of IndianChambers of Commerce & Industry (FICCI) & NationalProductivity Council, Govt. of Inida.

CLIENTAL LISTS

REC Mechanism – Conceptual Framework

RE Generation

Sale at preferential

tariff

Obligated Entities

Sale in REC Framework

Electricity Component

Host Distribution Utility at a price not more than average pool

price

Third Party sale at mutually

agreed prices

A CPP based on Renewable

Energy Sources

Sale through Power Exchange

Renewable Component

(REC)

Sale through Power Exchange

REC REGULATIONS – SALIENT FEATURES

Eligible SourceAll sources recognised by MNRE under Renewable Energy CategoryTwo Categories of Certificates one for Solar and other for Non-Solar

Eligible Entities defined in RegulationsGrid Connected RE Power Projects having NO PPA at preferentialtariff and received accreditation certificate from State AgencyShall sell electricity at Pooled cost of Power Purchase to distributionutility or at mutually agreed price to any other licensee

Obligated EntitiesAs defined by SERC, distribution utility, OA User, Captive Consumer

States to amend existing RPO Regulations

REC Issuing AuthorityNational Load Despatch Centre to issue REC to Generator based onthe Energy Injection Report prepared by SLDC

Sale/Purchase of RECTransaction of REC shall take place at Power Exchanges

RPO & COMPLIANCE REGULATION

• OERC has published Renewable Purchase Obligation

(RPO) & Compliance Regulation. This is in line with CERC,

NLDC, FOR scheme of RPO and has the mandate of

MNRE.

•As per the Regulation GIRDCO and an Industry with coal

based CGP>5MW have to purchase Solar Renewable

Energy Certificate @ 0.1 %, Non solar REC @1.2% and Co-

Generation REC @3.7% totaling 5% of their total

consumption for FY 2011-12.

• This % will keep on increasing progressively from 5% to

tune of 7% in FY 2015-16

RPO TARGET

Year-wise

target

Minimum quantum of purchase in percentage

(in terms of energy consumption in the State in KWH)

Renewable Co-generation Total

Solar Non-solar

2011-12 0.10 1.20 3.70 5.0

2012-13 0.15 1.40 3.95 5.5

2013-14 0.20 1.60 4.20 6.0

2014-15 0.25 1.80 4.45 6.5

2015-16 0.30 2.00 4.70 7.0

Electricity to Grid Electricity from Grid

E

N

E

R

G

Y

A/c

Application to issue REC

Issuance

of REC

Confirmation of EA

Redemption

Of REC

RPO

Compliance

Reporting

Compliance

Monitoring

RE- Generator

Accreditation

REC Trading through Power Exchange

State Agency State Agency

REC Trading

REC SCHEME & CALCULATION

Particulars Units For FY 2011-12 For FY 2012-13 For FY 2013-14 For FY 2014-15 For FY 2015-16Assume CGP Capacity MW 100 100 100 100 100Total MW Consumed by Industry from CGP@80% of its rated capacity MW 80.00 80.00 80.00 80.00 80.00 The Total Energy Consumed by Industry from CGP KWh 700,800,000 700,800,000 700,800,000 700,800,000 700,800,000 Solar RPO Obligation as per OERC Regulation % 0.10% 0.15% 0.20% 0.25% 0.30%Solar REC required to be purchased by CGP KWh 700,800 1,051,200 1,401,600 1,752,000 2,102,400 Annual Cash Outgo due to procurement of Solar REC from the Exchange @ Rs.12.00 per KWh Rs. 8,409,600 12,614,400 16,819,200 21,024,000 25,228,800 The Capacity of SPV Plant Required MW 0.421052632 0.631578947 0.842105263 1.052631579 1.263157895Non-Solar RPO Obligation as per OERC Regulation % 4.90% 5.35% 5.80% 6.25% 6.70%Non-solar REC required to be purchased by CGP KWh 34,339,200 37,492,800 40,646,400 43,800,000 46,953,600 Annual Cash Outgo due to procurement of Non-Solar REC in the Exchange @1.50 per KWh Rs. 51,508,800 56,239,200 60,969,600 65,700,000 70,430,400 The Capacity of Non solar Power Plant Required MW 4.9 5.35 5.8 6.25 6.7Total Value of REC i.e. Annual Cash Outgo of the Industry without any Input Energy due to statutory requirement of procurement of REC Rs. 59,918,400 68,853,600 77,788,800 86,724,000 95,659,200

REC PRICING IN POWER EXCHANGES

Year | Month Type Buy Bid(REC)Sell

Bid(REC)

Total Volume Traded (REC)

Equilibrium Price(Rs./R

EC)

2011

FebruarySolar 11 - - -

Non-Solar 120 - - -

MarchSolar 30,001 - - -

Non-Solar 70,377 150 150 3,900

AprilSolar - - - -

Non-Solar 260 4,046 260 1,500

MaySolar - - - -

Non-Solar 14,002 15,143 14,002 1,500

June (IEX) Solar - - - -

Non-Solar 72,002 21,331 15,902 1,505

June (PX) Non Solar 10000 3183 1500

July (IEX) Solar - - - -

Non-Solar 81493 34976 14668 1555

July (PX) Non Solar 14766 9800 3900 1550

HOW TO FULFIL RPO

• Purchase REC both solar and Non solar => We will

facilitate REC purchase on behalf of CGP. PTC shall carry

out bidding through our net work in Exchange Platform on

behalf of CGP and Transaction shall be cleared through

CGP accounts.

• Purchase Non solar REC and establish SPV Power

Plant=> We will provide technical consultancy for

preparation of TEFR, DPR and shall accredit and register

the project REC scheme and Trade the solar REC in PX.

• Establish both solar and Non Solar Power Project. => We

will provide technical consultancy for preparation of TEFR,

DPR and shall accredit and register the project REC

scheme and Trade the solar & Non Solar REC in PX.

CBA OF SPV POWER PLANT

Units Generation Unit ValueInstalled Capacity MW 2Net Generation MU 3.3288Land Requirement Acres 10

Project Cost Crores Rs. 26

Tariff Components (Fixed Charge) Unit ValueO&M Expenses Rs. Lakh 18Depreciation Rs. Lakh 182Interest on Term Loan Rs. Lakh 227.5

Interest on Working Capital Rs. Lakh 14.015925

Total Fixed Cost Rs. Lakh 441.51593

Per Unit Tariff Components Unit Value

PU O&M Expenses Rs./kWh 0.5407354

PU Depreciation Rs./kWh 5.4674357

PU Interest on Term Loan Rs./kWh 6.8342946

PU Interest on Working Capital Rs./kWh 0.4210504

PU Tariff Components Rs./kWh 13.263516

Levellised Tariff for a period of 20 years Rs./kWh 8.9460944Minimum Value of REC in Exchange Rs./kWh 12.00

CBA OF BIOMASS POWER PLANT Installed Capacity MW 10

Gross Generation MU 70.08

Net Generation MU 63.07

Tariff Components (Fixed Charge) Unit

O&M Expenses Rs. Lakh 226.35

Depreciation Rs. Lakh 400.86

Interest on Term Loan Rs. Lakh 515.39

Interest on Working Capital Rs. Lakh 103.87

Return on Equity Rs. Lakh 0.00

Per Unit Tariff Components Unit

PU O&M Expenses Rs./kWh 0.36

PU Depreciation Rs./kWh 0.64

PU Interest on Term Loan Rs./kWh 0.82

PU Interest on Working Capital Rs./kWh 0.16

PU Fixed Cost Rs./kWh 1.98

PU Biomass Cost Rs./kWh 1.37

PU Coal Cost Rs./kWh 0.49

PU LDO Cost Rs./kWh 0.08

PU Water Cost Rs./kWh 0.00

PU Variable Cost Rs./kWh 1.94

PU Total Cost of Generation Rs./kWh 3.92

Energy Component Cost

Rs./kWh

4.00

REC Component Cost

Rs./kWh

1.50

Total Revenue Generation Rs./kWh 5.50