Upload
jaspal-bhatia
View
1.147
Download
1
Tags:
Embed Size (px)
DESCRIPTION
Discusses about Renewable Energy certificates mechanism in India.
Citation preview
1
Renewable Energy Certificates
Renewable Energy Certificates :
Mechanism of RE growth in India
Presented By:Jaspal Singh (Dy. Mgr. – NETRA)
2
Renewable Energy Certificates
Installed generation capacity
66%
21%
3% 11%
ThermalHydroNuclearRenewable
Source: Ministry of Power
Total installed capacity as on 31-12-2011 : 1,86,654 MW
3
Renewable Energy Certificates
RE Generation capacity
Total renewable Generation capacity (31-03-2011): 19,974 MW
70.0%
15.0%
5.0%
8.0%
0.5% 0.2%
Wind powerSmall HydroBimass PowerBagasse cogenerationWaste to energySolar Power
4
Renewable Energy Certificates
The Electricity Act, 2003, the policies framed under the Act, as also the National Action Plan on Climate Change (NAPCC) provide for a roadmap for increasing the share of renewable in the total generation capacity in the country.
NAPCC envisages Renewable purchase obligation target of 5% at national level for 2010 with 1 % annual increase so as to reach around 15 % RPO ( Renewable Purchase Obligation) by 2020.
RPO : Distribution companies need to purchase certain percentage of their total power requirement from renewable energy sources.
RPO targets are set by SERC
Policies to Enhance Renewable Energy
5
Renewable Energy Certificates
States 2011-12 2012-13 2013-14 2014-15
TAMIL NADU 14%KARNATKA 10% 10%MAHARASTRA 7% 8 %
KERALA 3.3% 3.6 % 3.9 % 4.2 %
GUJARAT 6% 7 %
RAJSTHAN 9.5%
AP 5%
UP 5 %
HP 11.10 % 6 %
CHHATISGARH 5.25 % 12.10 %
PUNJAB 2.31 % 2.49 % 2.68 % 2.85 %
RPO Trajectory
6
Renewable Energy Certificates
State FY11-12 @MW FY12-13 @MW
Gujarat 0.5 % 186 1.00 % 372
Uttar Pradesh 0.5 % 173 1.0 % 345
Rajasthan 0.5 % 112 0.75 % 168
Tamil Nadu 0.15 % 65 0.25 % 110
Orissa 0.10 % 13 0.15 % 20
Haryana 0.0047 % 0.77 0.0063 % 1
HP 0.10 % 4 0.10 % 4
Solar RPO
7
Renewable Energy Certificates
RE selling options• RE generators can following options to sell the electricity
RE Generators
Sale at preferential
tariff
Obligated entities
Electricity Component
Distribution company /
Third party sale
REC Component
Obligated entitiesSelf Consumption
8
Renewable Energy Certificates
What are RECRenewable Energy Certificates (RECs) represent the attributes of electricity generated from renewable energy sources. These attributes are unbundled from the physical electricity and the two products—the attributes embodied in the certificates and the commodity electricity—may be sold or traded separately
9
Renewable Energy CertificatesEligibility conditions for REC
REC Eligibility
Self consumption Captive use
No concessional transmission
No Banking Facility Benefit
No Electricity Duty Waiver
Sale to Distribution licensee, open
access, power Xchg
Sale at Market determined price
PPA with Distribution
Licensee
PPA at preferential tariff
PPA with discom at <= APPC
Eligible if all Three conditions met Eligible EligibleNot Eligible
Source: Water & Energy International
10
Renewable Energy Certificates
Salient features of REC
• Categories of Certificates Solar certificates and Non-solar certificates
• Issuing agency The Central Agency (designated by the Central Commission for registration of RE
generators participating in the scheme) will issue the REC to RE generators• Denomination
1 REC = 1 MWh• Validity of Certificates
Apply for REC within 3 months of generation Validity : 1 year from the date of issuance of such certificate
• Minimum capacity of Plant to claim REC 250 Kwp
• REC trading only through power exchange(s) For price discovery and ensuring transparency
11
Renewable Energy Certificates
REC mechanism Benefits
• Overcome geographical constraints REC’s are devised to address the above issue of un-even spread of
renewable energy sources• Reduce risk for local Discom by limiting liability to only electricity
purchase• Reduce Transaction cost• Provide flexibility for effective implementation of RPO purchase
States having less renewable energy potential can buy REC’s to fulfill there Renewable purchase obligation (RPO)
• Widening participation beyond Local discoms Captive consumers, Open access consumers & Voluntary market
12
Renewable Energy Certificates
Registration of Eligible entities(Central level agency)
Accreditation of RE power plants
(State nodal agency: SNA)
Information related to accreditated RE plants for registered entities sent to REC registry
Sale of electricity at par with conventional power
Discom issuing RE injection certificate
State Load Despatch Centre
(SLDC)
RE Generator
Central REC Registry (NLDC)
REC exchange
Auditing Panel
SERC: Compliance based on SNA
Report
1
2
3
5 6
4
Information related to RE generation
electricity Energy
accounting
Issuance of REC
Information on REC
purchase/ redemption
State Nodal Agency SNA
13
Renewable Energy Certificates
Various stakeholders for implementing REC • CERC – to regulate the entire set-up
• SERC - to implement and monitor the compliance levels
• MNRE – Definition of RE
• MoP – representing Central Government • Central Agency (NLDC)
– Registration, issuance of certificates, maintaining accounts, settlement, repository, Monitoring
• Power Xchange(s) – For Trading • State level agencies : verifiers : (SLDC/State Nodal Agencies)
• State Transmission Utilities (STU) : Reporting
14
Renewable Energy CertificatesREC’s Price Band
• REC’s price shall be determined by the market however it shall trade in between the band set by Floor price and forbearance price.
• Floor price and forbearance price shall be determined by CERC
Non –Solar REC (Rs/ MWh
Upto Mar 2012)
Non –Solar REC (Rs/ MWh)
From Apr 2012 – Mar 2017
Solar REC (Rs/ MWh)
Upto Mar 2012
Solar REC (Rs/ MWh)
From Apr 2012 – Mar 2017
Forbearance price
3900 3300 17000 13400
Floor Price 1500 1500 12000 9300
15
Renewable Energy Certificates
18 % reduction every year
Comparison of 1 MW Solar plant using PPA and REC market
Case study
25 % reduction every year
Plant Capacity 1 MW
Units generated / year 1664000
Years
INR
0 5 10 15 20 25 300.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
REC@18 % PPA REC @ 25%
16
Renewable Energy Certificates
Challenges for REC
• Reducing floor Price• RPO levels are different for different states• APPC is dynamic• Solar Project financing is not possible if project feasibility is
based on REC• Periodicity of compliance for RPO - Annually
17
Renewable Energy Certificates
Way Forward
• Vintage based Floor price for Solar REC– Multiplier linked to reduction in floor price
• Same RPO level across the country• Trading of REC
– Secondary Market– Multiple trading
• Periodicity of RPO compliance – Quarterly for stabilization in price