Rsm GC Advisory RE Power Contracting & Trading - ver3

Renewable Energy (RE) Power Contracting & Trading

www.general-carbon.com

Target Clients

Renewable Energy (RE) Project Developer

Investors seeking investment in Renewable Energy projects

Industrial / commercial energy users – using renewable energy or contemplating using RE

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Benefits of RE power procurement

Carbon neutral power sourcing

Higher grounds on sustainability roadmap

RPO compliance with additional outflow

Single vendor and minimal hassles

Cost Savings

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Key Challenges in RE power contracting (sale/purchase) For RE generators – formulating appropriate strategy for power off-take arrangements

Multiple models of power sale to choose from - preferential tariff, REC based, captive, group captive, third party sale

Identifying buyer/seller for captive or third party sale; Negotiating power purchase agreements

Obtaining approvals (eg. Open Access), Obtaining billing and settlement support.

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• Intent to sell / purchase

• Qty, period & price

LOI

• Matching buyer/ seller

• High level terms

Term Sheet• Power

Purchase , Share holding, etc.

Agreement

• ABT meter, etc.

Set-up• Open access• Regulatory

filings

Approvals

Typical Process for RE Power tie-up

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Billing & Payment

Power Generation

Open access charges

Credit Adjustment

Monthly Process


Our Services

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Overview of Service

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•For Project Developers

•For RE power investors

Renewable Energy Project Assessment


•For RE power users

Renewable Energy Contracting


•For RE power users

Power Resources and Cost Optimization


What We Do

Renewable Energy Project Assessment♦ Provide project development services for wind, biomass, bio-gasification, waste-to-energy and solar projects including

site identification, assessment, fuel/resource assessment, regulatory approvals, contract management, project management and supervision

♦ Advise investors to conduct due diligence in acquisition of the operating renewable energy assets Renewable Energy Contracting

♦ Client identification for third party/captive power sale from wind, hydro, biomass and solar projects♦ Open access approvals, billing & settlement support

Power Resources & Cost Optimization♦ Advise clients on WHEN to buy / sell WHICH power at WHAT price. ♦ Analyze the energy mix and viable alternatives with respect to cost & convenience of implementation♦ Facilitate large consumers to procure renewable power to meet their sustainability / RPO / cost optimization needs. ♦ Facilitate in executing sale / purchase of power (renewable / non renewable) through following modes:

Power Exchange Third Party (Power Purchase Agreement (PPA), Open Access approval, etc) Group Captive (Share-holding agreement (SHA), PPA, Energy Wheeling Agreement (EWA), etc

♦ Power transaction support (conventional or green power from exchange, bilateral or captive mode)8


Renewable Energy Project Assessment

Project evaluation and feasibility assessment for renewable energy projects Due diligence and financial analysis of renewable energy projects including

acquisition support Performance evaluation of projects - As-is analysis, review of O&M plan and

ROI for upgrades Software platform for wind turbine portfolio management solution

♦ Data integration, O&M Process Mgmt, Performance improvement, mobile integration

Regulatory advisory and policy implementation

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Renewable Energy Contracting

Policy & Regulatory analysis for renewable energy power sale in various states of India

♦ Expected per unit realization, open access charges, major consumer categories, challenges, possible & recommended contracting structures, etc

Client identification for third party/captive power sale from wind, hydro, biomass and solar projects

Advising project developers/ investors on appropriate share structuring, SPV creation and tax impacts for group captive sale

Contractual negotiations and execution of major agreements & statutory documents♦ Power Purchase Agreement, Share Holding Agreement, Energy Wheeling Agreement,

Open Access NOC, etc Support in injected power credit allotment, adjustment in electricity bills, and

settlement as per contract10


Developing Power Resources & Cost Optimization Plan

Power resource options♦ Local DisCom, Captive Power Plants, Power Exchanges, Third Party Contracting, Group Captive, etc

Each source of power has some associated fixed and variable cost

Selection depends upon the State in which plant is located♦ The prevalent pricing on the exchanges for the region during various time slots♦ Power situation (energy charges, power cuts, grid availability, RE policy, etc)♦ Open access policy & Implementation challenges♦ Connectivity with the Discom ( Contract Demand, Connection voltage, type of feeder line, metering, etc)

Strategy will determine when to buy or sell which power at what price11

Source Fixed Cost Variable Cost

DisCom Demand Charges Energy Charges, FAC, ToD charges, etc.

Power Exchange Membership fees, ABT meter, etc Market clearing price, brokerage, etc

3rd Party Sale ABT meter, RTU, BG, etc Agreed tariff, wheeling charges & losses, CSS, other open access charges, etc

Group Captive Equity investment, ABT meter, etc Agreed tariff, wheeling charges & losses, No CSS


Developing Power Resources & Cost Optimization Plan… Cont

We undertake following 3 steps to develop & deploy Power Resources & Cost Optimization Plan : Analyze Electrical Energy Mix

♦ Current & projected electrical energy mix: Distribution company, Open Access, Exchange, Bilateral, Captive sources

♦ Compute the per unit cost of power through each source separately Analyze alternatives

♦ Alternative options for sale & purchase of power Alternate use of current mix (e.g. power sale from CPP & replacement with cheaper options, etc.) Additional options (e.g. power purchase from exchange, third party or group captive, etc.)

♦ Transaction cost, Per unit landed price in each case of power sale or purchase♦ Study of various electrical energy mix scenarios with regards to their implementation♦ Finalize the power resource optimization plan

Power Marketing & Sourcing♦ Facilitation in sale / purchase of power through exchanges, 3rd party bilateral (renewable / non renewable), group

captive, etc♦ Execution of PPAs, EWAs, SHAs, open access approvals, setting-off of open access units in the bill, etc.

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Case Study

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ParticularsOld Structure New Structure

MW Cost INR/u MUTotal Cost (INR ’Mn) MU

Total Cost(INR ’Mn) Savings

Discom 16 5.75 140 805.9 105 604.4

1.67%Captive 30 3.85 263 1011.8 263 1011.8TPS - Wind w/o RPO 0 5.25 0 0.0 22 115.0GCS - Wind with RPO 0 5.75 0 0.0 13 75.6RPO (REC procurement) 1.5 13 19.7 0 0.0 403 1837.4 403 1806.8 30.7

HT Industrial Consumer - 46MW requirement (~394 Million Units)

Old structure: Discom (140MU) & Captive - Coal & WHR (263MU)

Change: Replacing 25% of Discom power by wind power under TPS & Group Cap – wind

New Structure: Discom (105MU), Captive - Coal & WHR (263MU), Wind (35MU)


Advantages RSM GC

Thought leaders♦ Participated in regulation formulation (states as well as central)♦ Invited to speak at major power related trade fairs, seminars, conferences & workshops

Helped in capacity building exercise in major states for open access Advised IPPs on power sale strategy at the stage of finance raising to

operations Advised few of the largest industrial groups on power procurement strategies for

their facilities across states Advised one of the largest business groups on achieving carbon neutrality

through RE procurement options Reduced power procurement cost of few large commercial establishments by

over 25%14


Experience

Experience with over 8000 MWs power project portfolio♦ Wind projects of over 2000 MWs across India♦ Over 350 MW of REC projects across India

Client list includes some of the largest IPPs & CPPs in India♦ Tata Power, Lanco, GVK, GMR, Renew, GreenKo, JSW, Mahindra, etc.

Broad spectrum of technological expertise♦ Wind, solar, hydro, biomass, Waste to Energy, etc.

Executed innovative contract structures♦ Some of first third party sale contracts for renewable energy project

Experience in project finance and project evaluation for renewable energy projects

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www.general-carbon.com 16

Select Clients


Contact Us

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Mumbai – Mr. Rameez Shaikh

5th floor, Great Social Building60, Sir Pherozeshah Mehta Road, FortMumbai 400001

Phone: +91 22 2266 3201/3301 Mobile: +91 99200 33866 Email: [email protected]

Chennai – Ms. Priya Ranganayaki

E-3, 4th Floor, "RM Towers“108 Chamiers Road, NandanamChennai 600018

Phone: +91 44 42167331 Mobile: +91 99625 26876Email: [email protected]

www.general-carbon.com 18

Advantage RSM GC Advisory• Leadership team with expertise and extensive consulting experience, more than 500

sustainability service offerings; developed over 250 emission reduction projects with a potential of >400 million CERs; assisted and advised over 8000 MW power project portfolio & over 2000 MW wind power projects, over 350 MW REC projects; delivered value of over US$ 500 Million to businesses in India

Leadership Team

• Active participation in policy formulation and thought leadershipPolicy

Formulation

• Strong track record of project delivery, combined with risk mitigation and structuring capabilitiesStrong Track

Record

• Working experience in diverse geographies & sectors, and a potent combination of technical & financial resources

Diverse Work

Experience

Business

Rsm GC Advisory RE Power Contracting & Trading - ver3