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Indian Energy Exchange — Central Electricity Regulatory Commission (CERC) — Investor Presentation (March 2010)
30 slides from Indian Energy Exchange's investor presentation, Mar 19, 2010
Slide 1: Renewable Energy Certificate Mechanism in India
CENTERAL ELECTRICITY REGULATORY COMMISSION (CERC) NEW DELHI Renewable Energy Certificate Mechanism in India
Slide 2: Agenda
¾Overview of the Legal g Framework ¾New Policy y Initiatives ¾Renewable Energy Certificate Mechanism 2
Slide 3: Overview of the Legal Framework
Overview of the Legal Framework
Slide 4: Legal framework for renewable energy promotion
¾ Tariff regulations of the Regulatory Commissions to be guided by promotion of generation of electricity from renewable energy sources ¾ State Electricity Regulatory Commissions (SERCs) q required to specify p y Renewable Purchase Obligations (RPOs) ¾ The National Electricity Policy to aim for opti
Slide 5: State RPOs and renewable share
¾ SERCs in all major States have specified RPOs ¾ RPOs vary from 1% to 10% in different States ¾ Presently the share of renewable energy is about 4% in total electricity generation ¾ Share of solar energy gy p presently y is negligible. g g 5
Slide 6: CERC tariff guidelines for renewable energy
¾ CERC has issued comprehensive tariff guidelines for renewable energy. ¾ Tariff design to ensure assured return with full cost recovery during the debt repayment period. ¾ As a special s i l dispensation, dis s tio this full f ll cost ost tariff t iff has been allowed for 25 years for solar energy.
Slide 7: New Policy Initiatives
New Policy Initiatives
Slide 8: National Action Plan on Climate Change
¾ Published P bli h d by b the th Government G t in i year 2008 ¾ 8 key areas chosen for National Missions ¾ National Solar Mission is one of these 8 Missions. ¾ Suggests RPO at 5% in year 2010, increasing 1% every year for 10 years. 8
Slide 9: Finance Commission support for renewables
• The Constitutional Commission dealing with devolution of funds has recommended a support of US 1 billion dollars over the next five years for rewarding the States which facilitate addition of renewable based generation and support access to markets for renewables. 9
Slide 10: Renewable Energy Certificate Mechanism
Renewable Energy Certificate Mechanism 10
Slide 11: Need for the REC mechanism
¾ Present installed capacity based on renewables is about 15 GW ¾ This requires to be increased to 65 GW in next five y years if RPO level is to ggo up p to 10% nationally, as suggested in NAPCC. ¾ But a large part of untapped potential is l located d in the h States S which h h have h already l d a
Slide 12: Total generation capacity
TOTAL GENERATION 155859.23 CAPACITY MW (As on 31 31-11-09 11 09 )
Slide 13: Renewable potential versus installed capacity
70000 61000 60000 50000 50000 45000 40000 30000 20000 15000 10891 10000 5000 7000 2519 816 1241 67 6 0 Wind Small Hydro Bioenergy Cogeneration Waste to Solar energy Potential Installed Capacity Source : MNRE as on Oct’09 13
Slide 14: State RPO targets and achievement
State RPO Target RPO Met Maharashtra 4% 3% Gujarat 2% 2% Karnataka 10% 11.5% Tamil Nadu 10% 11% Punjab 1% 0.74% Haryana 4% 0% Madhya Pradesh 10% 0 07% 0.07% Source : SERCs Orders 14
Slide 15: Renewable potential by state
Source : MNRE Annual SHP‐ 1411 MW Report 2008-09 SHP‐ 2268 MW SHP‐ 390 MW SHP‐ 1609MW SHP‐ 1333MW SHP‐ 292MW SHP‐ 213MW Wind‐4858MW SHP‐63 MW SHP‐ 213MW Wind‐ 1019MW Wind – 10645 MW SHP 400 MWMW SHP‐ 196 MW Wind – 255 MW SHP‐ 1609MW Wind ‐4,584MW SHP – 295 MW SHP‐ 762MW Wind‐ Wi d 8968 MW SHP – 552
Slide 16: RE generation: electricity and REC components
RE Generation Sale at Preferential Conventional Electricity Component REC Component Tariff Distribution Company Obligated Entities / Third Parry Sale Obligated Entities 16
Slide 17: REC features
¾ RE generators with capacity untied in PPA will have an option to sell electricity and REC separately ¾ REC will be issued to RE Generators only ¾ 1 MWhr Î 1 REC ¾ Purchase of REC would be considered as purchase of RE for purpose of RPO compliance. 17
Slide 18: Eligibility and solar REC
¾ Grid Connected RE technology approved by MNRE would be eligible for REC mechanism ¾ Separate category of Solar REC ¾ Provision of regulatory charge to enforce compliance of RPO. RPO ¾ RECs are intra-country tradable certificates and are distinct from carbon credits. credits ¾ It is proposed to mak
Slide 19: Accreditation, registration and issuance
¾ Accreditation would be done at State level by State Agency (SA) to be designated by SERC. ¾ Registration by Central Agency ¾ Issuance I off REC by b Central C l Agency A b d on based injection certificate. 19
Slide 20: REC exchange and monitoring
¾ REC exchange h g through th gh power exchanges h g approved by CERC. ¾ Certificates will be exchanged within floor (minimum) price and forbearance (ceiling) price decided by CERC time to time. time ¾ Monitoring Mechanisms : Appointment of C Compliance li A dit Auditors b by CERC for f postt monito
Slide 21: Progress on REC framework
¾The framework of REC settled by Forum of Regulators (FOR) ¾Model SERC Regulations finalized ¾CERC Regulations notified 21
Slide 22: Central Agency designation
¾ Designation of Central Agency National Load Despatch Des atch Centre has been notified as Central Agency. ¾ Capacity C it building b ildi g and d skillsets kill t for f Central C t l Agency Ag & State Agencies. 22
Slide 23: Pending actions: SERC regulations and RPOs
¾ Adoption of REC mechanism in SERC regulations ¾ Setting of RPOs in line with NAPCC We are doing a comprehensive study for impact analysis of different scenarios. ¾ Framework F o k for fo absorption bso tio of infirm i fi power o within the home state 23
Slide 24: Pending actions: prices and power exchanges
¾ Notification of forbearance price and floor price CERC is preparing a consultation paper on the basis of criteria specified in the regulations. ¾ Preparedness of Power Exchanges 24
Slide 25: Website and email
Website : www.cercind.gov.in Email : alokkumar@nic.in 25
Slide 26: National Solar Mission objectives and targets
¾ Objectives To establish India as global leader in solar energy and achieve a scale to drive down costs to levels required to achieve grid parity as soon as possible. ¾ Mission Targets To create enabling policy framework for deployment of 20,000 MW of solar power by 2022. To ramp up capacity
Slide 27: National Solar Mission targets contd.
¾ Mission Targets g contd….. To create favourable conditions for developing solar manufacturing capability in the country. To promote programme of off-grid applications, reaching 1000 MW by 2017 and 2000 MW by 2022. To p promote deployment p y of 20 Million solar lights g by y 2022. To achie
Slide 28: National Electricity Policy recommendations
¾ SERCs should specify RPOs immediately ¾ Procurement P t off energy from f renewables bl tot be b at preferential tariffs ¾ Central Electricity Regulatory Commission to publish guidelines for pricing non-firm power from renewable sources ¾ Procurement through competitive route to be adopted to the
Slide 29: Generation mix by fuel
2% 15% 1% 12% 67% 3% Coal LIGNITE BASED Gas Turbine Gas Turbine (Liquid) MULTI FUEL Di Diesel l NUCLEAR HYDRO Source: CEA 29
Slide 30: Central Agency detailed procedure
¾ Detailed procedure of Central Agency to include - Requirements for registration of eligible generator - Issue of REC - Interface with power exchanges - Depository functions - Monitoring through reports of compliance auditors. - Revocation of registration Draft detailed procedure being prepared.
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