Wind Force Newsletter January, Edition, 2012
- 1. Issue 05 Newsletter January 2012 www.windforce-management.com
- 2. Enabling High Efficiency and Reliable Wind Power Projects 2 Policy and Regulatory 1. Andhra Pradesh Electricity Regulatory Commission (APERC): Draft REC Regulations APERC has notified draft REC regulations. As per these regulations, 展 Every Obligated Entity (OE) shall purchase minimum 5% (including 0.25% from solar) of its consumption of energy from RE sources, during each of the years from 2014-15 to 2018-19 展 For the purpose of this Regulation, the consumption of a RESCO (Rural Electricity Supply Cooperative Society) shall also be taken into account for calculating the consumption of a distribution licensee 展 State Nodal Agency shall be the AP SLDC 展 The State Agency shall submit quarterly status to the Commission in respect of compliance of RPO Comments and suggestions were invited from all concerned organizations / persons. Thereafter, a public hearing was scheduled to be held on 12th January 2012. Final regulation in this regard is still awaited. 2. Rajasthan Electricity Regulatory Commission (RERC): Order on Transmission Charges, Transmission losses and SLDC Charges RERC has issued an order on transmission charges, transmission losses and SLDC charges for Rajasthan Rajya Vidyut Prasaran Nigam Ltd. (RVPN) for FY 2011-12. As per this order, approved transmission charges & losses and SLDC charges are as follows: Particulars Existing Approved for 2011-12 Transmission Tariff for DISCOMs and long term open access consumers 152 135.95 (Rs/kW/month) Transmission Tariff for intra-State short term open access bilateral 5 4.47 transactions (Rs/kW/day) Transmission Tariff for use of State transmission system in inter-state short 0 28.74 term open access bilateral transactions (paisa/kWh) SLDC Charges for long term (including DISCOMs) and short term open access 3.82 4.24 transactions (Rs/kW/month) Transmission Losses 4.40% 4.20% www.windforce-management.com
- 3. Enabling High Efficiency and Reliable Wind Power Projects 3 3. Central Electricity Regulatory Commission (CERC): Hearing on Draft th Regulations on tariff for RE technologies for the control period 201217 (12 Plan) During the proceedings at the public hearing on Draft Regulations on tariff for renewable energy technologies for the control period 201217, following were the key points raised by stakeholders with regards to Wind Projects: 展 The clause referring to CDM benefits sharing with DISCOMs shall be deleted as the project developers face substantial risks in developing the CDM projects and its associated cost. 展 O&M price escalation factor of 5.72% shall be revised to higher value and that the capital expenditure required is Rs 650 lacs per MW. 2 2 展 The wind energy zone 300 w/m to 400w/m needs to be split into 300 to 350 and 350 to 400. It was pointed out that C-WET does not have data for 80 m and therefore change should not be made to 80 m. Proposed changes by CERC are as follows: Parameter 2011 2009 Capital Cost Rs 5.25 Cr/MW Rs 5.15 Cr/MW Hub Height 80 m 50 m O & M Cost Rs 9.0 Lacs/MW Rs 6.5 Lacs/MW The final regulation of CERC in this regard is still awaited. 4. Tamil Nadu Electricity Regulatory Commission (TNERC): Order on concessional transmission & wheeling charges in Tamil Nadu TNERC has issued order on the basis of petition filed by various IPPs. As per this order Transmission & Wheeling Charges If a wind energy generator wants to become eligible for Renewable Energy Certificate, he shall pay the normative transmission charges of Rs 2781/- per MW per day, wheeling charges of Rs 14.74 per kWh as ordered by TNERC in Order No. 2 dated 15-5-2006 for the present and also in future as fixed by the Commission. www.windforce-management.com
- 4. Enabling High Efficiency and Reliable Wind Power Projects 4 Whats New Indian PSUs can now buy RECs for Carbon Emission Mitigation The Department of Public Enterprises under the Ministry of Heavy Industry and Public Enterprises released modifications to the Sustainable Development/ Memorandum of Understanding guidelines and allowed the provision of voluntary purchase of RECs under the ambit of sustainable development activities (i.e. The Central and Public Sector Enterprises in India can now purchase Renewable Energy Certificates as part of their sustainable development activities). These companies are required to invest a specific minimum amount of their revenues for sustainable development activities which include energy efficiency and promotion of renewable energy and carbon management. Such Companies can now purchase RECs under the promotion of renewable energy segment or under the carbon management segment which will count for carbon emission offsetting activities. The purchased RECs can either be used to account for promotion of renewable energy or carbon management but not both. The new guidelines will increase demand for the RECs which is likely to be welcomed by the project developers under the REC scheme. These guidelines do not clarify on the conversion unit for RECs generated to carbon emissions mitigated. Upcoming Events rd 展 3 International Wind Conference & Exhibition WE 20 by 20-20,Coimbatore, Feb 05-07, 2012 展 Operation and Maintenance: Power Projects, Optimizing Utilization, th Maximizing Revenue 7 February, 2012, New Delhi, India th th 展 Alternative Energy Summit 2012, 9 & 10 February, 2012 in Ahmadabad, Gujarat 展 RENERGY 2012, International Conference Cum Expo, organized by Tamil Nadu Energy Development Agency, 12th&13th March 2012, Chennai Trade Centre, Nandambakkam, Chennai, India www.windforce-management.com
- 5. Enabling High Efficiency and Reliable Wind Power Projects 5 REC Trading The above graph indicates that the equilibrium price of REC traded at IEX is increasing every month. Moreover traded volume is also increasing month by month. In the recent trading held on 28th December 2011, there were buy bids for 2,85,271 non-solar RECs against sell bids for 1,80,336 RECs (at both exchanges). In the last trading, RECs have been traded @ Rs 2950/ MWh. Summarizing 2011, in last 10 sessions, total 4,37,825 RECs have been traded at an average rate of Rs 2572/ MWh (at both the exchanges). The demand for RECs is expected to increase in Q4 as most of the state power distribution companies have not participated in the trading yet, which are expected to start participating from next session onwards as RPO deadlines are approaching. Electricity Price From the above graph it is observed that during last one year short term market price of electricity in bilateral arrangement is higher than that at power exchanges. This analysis includes only inter-State transactions. In October 2011, there was steep hike in price at the exchanges because of major power crises in various power surplus states in India. The issues encountered were more or less resolved and power prices at exchanges started to settle down in November 2011 as seen in the graph above. www.windforce-management.com
- 6. Contact Us Corporate Office Kindly write to us if you have any comments on this Newsletter. Your valuable WinDForce Management Services Pvt. Ltd. feedback on this would motivate and help us in improving the quality and enriching 5th Floor, Universal Trade Tower the content. We are eagerly waiting for your kind response to the articles presented in Gurgaon - Sohna Road this Newsletter. Gurgaon - 122001, Haryana Tel: +91 124 6653100 Parish Gupta Fax: +91 124 6653200 Mob: +91 98717 11445 Web: www.windforce-management.com E-mail: parish@windforce-management.com Rupesh Singh Mob: +91 96507 58884 E-mail: rupesh@windforce-management.com A WinDForce Publication Disclaimer - This Newsletter has been compiled by WinDForce Management Services Private Limited for circulation among the stakeholders in the energy market. Though the contents of this bulletin are correct to the best of our knowledge, WinDForce does not vouch for their accuracy. www.windforce-management.com