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Outline Chronology Conceptual framework Salient Features of REC Mechanism Role of Central Agency REC Procedures Current Status Chronology of Events – Concept to Implementation TRANSACTION Mar 30’11 First Session of REC Trading Feb’11 CERC approved Business Rules of Exchange Platform Sep’10 CERC Issued Order on Applicable Fee and Charges for Participating in REC Mechanism Jun’10 CERC has issued Order on Detailed Procedures for Implementation of REC Mechanism Jun’10 CERC has issued Order on Forbearance and Floor Price after Public Consultation Process Jan’10 CERC Designated National Load Despatch Centre as Nodal Agency under the REC Regulations Jan’10 CERC notified Regulations for Implementation of REC Framework Nov’09 Central Electricity Regulatory Commission initiated process for Implementation of REC Mechanism in India Oct’09 FOR has approved Model REC Regulations for adoption by SERCs I M P L E M E N T A T I O N Consultant submitted its Exhaustive Report to MNRE on Conceptual Framework for REC Mechanism in India Jun’09 Sep’08 Consultant submitted its recommendation to the Working Group on 'Policies on Renewables’ Aug’08 MNRE engaged Consultant to Develop Conceptual Framework for REC Mechanism in India CONCEPT Jun’08 Hon’ble Prime Minister announced NAPCC recognizing Implementation of REC Mechanism as tool to promote RE Jun’08 FOR initiated study to assess measures for increasing share of RE including Feasibility of Introducing REC Mechanism in India 17/07/2015 2 Status- RPO Regulations BIO MASS BIO MASS SOLAR SOLAR GREEN ATTRIBUTE RENEWABLE ENERGY CERTIFICATE GEO THERMAL RENEWABLE ENERGY WIND SOLAR CERTIFICATE NON-SOLAR CERTIFICATE ELECTRICITY SMALL HYDRO HYDRO CERC REC Regulation, 2010 – Conceptual Framework RE Generation* Sale at Preferential Tariff Electricity Component REC Component Obligated Entities Distribution Company / Third Party Sale/ Power Exchange Obligated Entities / Voluntary Buyers * Self consumption by CPPs based upon renewable generation are eligible for RECs NLDC 5 Salient Features of REC Mechanism RE Generator Grid Connectivity Trading REC State Agency 1 MWh Central Agency REC Framework: Eligibility Grid Connected RE technology approved by MNRE Self Consumption/ Captive use No Promotional Wheeling No Promotional Banking Eligible if All Three conditions mentioned above are met Third party sale/Open Access No Electricity Duty Exempt Sale at Mutually Agreed Price Eligible PPA with Distribution Licensee PPA at Average Power Purchase Cost PPA at Preferential Tariff Eligible Not Eligible Entities involved to Operationalise REC Mechanism Central Forum of Regulators Central Electricity Regulatory Commission Central Agency (National Load Despatch Centre) Power Exchanges Compliance Auditors State State Electricity Regulatory Commission State Load Despatch Centre State Agencies Eligible Entities Obligated Entities REC Procedures ACCREDITATION REGISTRATION ISSUANCE TRADE & REDEMPTION Applicability & Scope Applicable to: RE Generators including CPPs RE source recognized and approved by MNRE SERCs to designate State Agencies Accreditation -six months prior to commissioning No PPA at Preferential Tariff In case of PPA After 3 years or expiry date of PPA whichever is earlier For CPPs No benefit in the form of: concessional/promotional transmission or wheeling charges, banking facility benefit and waiver of electricity duty Accreditation valid for five years. NLDC 10 Step Wise Schematic Description of Procedure for Accreditation Verification Prior to Accreditation 2 1 3b Eligible Entity Application for Accreditation 3a Confirmation of Accreditation State Agency Intimation of Accreditation SLDC Intimation of 3c Accreditation Central Agency Application for availing Accreditation by Generating Co. to the Host SA Application shall contain details of Owner/Operator, Generating Station , Metering, Connectivity , Statutory, General , fees & charges, Declaration Separate Application for each RE Generation Project Appointment of NLDC as Central Agency NLDC designated as Central Agency. The functions of Central Agency includes : Registration of Eligible Entities Issuance of Certificate Maintaining and settling accounts in respect of the certificate Repository of transactions of certificates and Any other function incidental to the implementation of REC Mechanism The NLDC to operationalise REC mechanism has developed various procedures . Various activities in these procedures shall be undertaken in the electronic form to the extent feasible. NLDC 12 Schematic Description of Procedure for Registration Eligible Entity State Agency 3b Intimation of Application for Registration SLDC Registration 3c Intimation of 1 Registration Central Agency Confirmation of 3d Registration 3a Power Exchange(s) Verification Prior to Registration 2 Intimation of Registration Information to be furnished by the applicant Owner Details, RE Generating Station details, Certificate of Accreditation Commissioning Schedule, Details of Fee & Charges, Declaration Time Line Application accompanied with fees and charges Furnishing the Central Agency requested details by the applicant Grant of Registration 3 Months 2 days 7 days 15 days 15 days Process of Registration Intimation regarding Incompleteness of application NLDC Payment of applicable registration Charges 14 Schematic Description of Procedure for Issuance Intimation of Issuance State Agency 5b 2 3 SLDC Regular Injection Report Verification Pre-Condition Central Agency Intimation of Meter Reading Issuance of REC 4c 4b 1 Application for Issuance Distribution Licensee 4a Eligible Entity Joint Meter Reading 5a Schematic Description of Procedure for Redemption Central Agency Verification Conditions (By 15:30) Eligible Entity Offer for Sale 13:00 to 15:00 hrs 1a Intimation of Trade results For Extinguishing REC (By 17:00) 2 Confirmation Of REC validity & quantity (by 16:00) Bid for Purchase 13:00 to 15:00 Power Exchange(s) 1b Market Clearance (Volume & Price) 3 Central Agency 4 Reports Obligated Entity / Buyer Home Page https://www.recregistryindia.in Accreditation Details (As on 29.09.2011) Non Solar Capacity (MW) Number Wind Small Hydro Bio Mass Bio Fuel Cogeneration Urban & Municipal Waste Total Solar Solar Thermal Solar PV Total 682 59 352 318 0 1411 Capacity (MW) 0 0 0 168 12 30 29 0 239 Number 0 0 0 Registration Details (As on 29.09.2011) Non Solar Capacity (MW) Number Wind Small Hydro Bio Mass Bio Fuel Cogeneration Urban & Municipal Waste Total Solar Solar Thermal Solar PV Total 569 52 224 230 0 1075 Capacity (MW) 0 0 0 121 10 20 21 0 172 Number 0 0 0 Issuance & Trading Month, Year Opening Balance RECs Issued RECs Redeemed Closing balance March, 2011 0 532 424 108 April, 2011 108 4503 260 4351 May, 2011 4351 28270 18502 14119 June, 2011 14119 27090 16385 24824 July, 2011 24824 30224 18568 36480 August, 2011 36480 31813 25096 43197 Sept, 2011 43197 72850 46362 69685 195282 125597 Total Power Exchange wise Trade Details IEX MCV ( RECs Traded) PXI MCV ( RECs Traded) Total Trade March, 2011 274 150 424 3900 2225 April, 2011 260 0 260 1500 0 May, 2011 14002 4500 18502 1500 1500 June, 2011 15902 483 16385 1500 1500 July, 2011 14668 3900 18568 1555 1550 August, 2011 22096 3000 25096 1800 1710 Sept,2011 41385 4977 46362 2300 2300 Month IEX MCP (Rs/ REC) PXI MCP (Rs/ REC) Highlights • Highest ‘Capacity’ Registered : 36 MW, Wind (Gujarat) (Gujarat Fluorochemicals Limited) • Smallest ‘Capacity’ Registered: 0.35 MW, 8 Projects • Average ‘Capacity’ Registered: 6.4 MW • Total Registered Buyers: 454 Buyers ( 5 Voluntary Buyers) Concerns of stakeholders • Extension of applying period of REC from 3 months to 6 months • Validity of RECs • Periodicity of Compliance – Quarterly or Six monthly • Floor/Forbearance Price – Longer visibility of 5 years Concerns of stakeholders • Long Term RPO Trajectory: For next 5 to 10 years • Same RPO level across the country • Strong Enforcement Mechanism • CPP eligibility: Electricity Duty waiver • Vintage based floor price for solar REC – Multiplier linked to reduction in floor price 24 Weblinks • • • • • www.nldcindia.in www.recregistryindia.in www.cercind.gov.in www.forumofregulators.gov.in www.mnre.gov.in