Non-Solar: non-solar RECs traded at the price of INR 1,000/REC at IEX ( floor price) INR 1000/REC at PXIL (floor price). A total of? 292,301 RECs were traded in this session. No Vintage RECs were traded.?
Solar: The total number of solar RECs traded in this session was 41,469 at INR 2,000/REC at IEX (100% above the floor price) and 1,800 PXIL (80% above the floor price)
The overall trade volume (333,770RECs) increased by 40% from the last months’ trade volume ( 237,935 RECs).
]]>Failure to compliance by the Obligated Entity, would result in purchase of RECs to the extent of 110% of quantum shortfall as per the regulations by 30th September 2020.
The relaxation of three months offered to the obligated entities was announced keeping in view the current situation due to the country-wide lock down. Karnataka is one of the states which has announced individual obligation percentage for all the obligated entities, a snapshot of which is as below:
Source: REConnect Energy Analysis ]]>
Non-Solar: non-solar RECs traded at the price of INR 1,000/REC at IEX ( floor price) INR 1000/REC at PXIL (floor price). A total of? 217,093 RECs were traded in this session.?
Solar: The total number of solar RECs traded in this session was 20,842 at INR 2,400/REC at IEX (140% above the floor price) and 2,000 PXIL (100% above the floor price)
The overall trade volume (237,935 RECs) decreased dramatically to 71% from the last months’ trade volume ( 838,448RECs).
]]>In line with the Electricity Act 2003 Renewable Purchase Obligation, RECs were introduced as tradable market instruments which are considered to be equivalent to Solar and Non-Solar Power. Accordingly, prices are determined based on various market factors in the present scenario and therefore CERC considers the association of RECs with the market very important in order for smooth operations of the REC mechanism.?
?As it is known that the renewable energy scenario in the country has undergone a massive change in the past few years. Having said that the tariffs of the renewable energy plants have also declined drastically and with that, the supply-demand curve has also changed. A major reason is competitive bidding in the wind and solar project awarding process. Below stated is the floor & forbearance price trend for solar & non-solar since 2012.? The price trend of REC highly depends on the tariff discovery of the RE plants, which has reduced drastically since 2017. The latest competitive bidding results discovery was of INR 2.74/kWh for solar and INR 2.51/kWh for wind plants respectively.
Hence, CERC has proposed a new Floor and forbearance price under the REC regulations. New prices have been proposed based on the various competitive bidding tariffs discovered from April 2017 to March 2020.?
In continuation, it is also proposed that the forbearance price and floor price will be applicable to RECs issued after 01.04.2017. For Solar RECs issued before 01.04.2017, the eligible entities will be allowed to either go ahead with the revised forbearance price and floor price or to continue with the Order dated 30.03.2017 in Petition No. 02/SM/2017. Whereas for Non-solar RECs issued prior to 01.04.2017, the trading shall take place in accordance with the Commission’s letter dated 28.05.2018.
The graph below shows the floor and forbearance price since the inception of the REC mechanism.
* Revised Floor & Forbearance REC price to be applicable only after the commission notifies it in the gazetteAll the stakeholders can send in their comments, suggestions and opinions till 20th April 2020 before the commission takes a final decision on the matter.
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Non-Solar: non-solar RECs traded at the price of INR 1,000 at IEX ( floor price) INR 1000 at PXIL (floor price). A total of 789,766 RECs were traded in this session.?
Solar: The total number of solar RECs traded in this session was 48,682 at INR 2,400 at both IEX and PXIL (140% above the floor price).?
The overall trade volume (838,448 RECs) decreased dramatically to 60% from the last months’ trade volume (2,142,410 RECs).
]]>Non-Solar: non-solar RECs traded at the price of INR 1,800 at IEX (80% above the floor price) INR 2050 at PXIL (105% above the floor price). A total of 842,673 RECs were traded in this session.?
Solar: The total number of solar RECs traded in this session was 1,299,737 at INR 2,400 at both IEX and PXIL (140% above the floor price)?
The overall trade volume (2,142,410 RECs) increased dramatically by 275% from the last months’ trade volume (570,704 RECs).
]]>Non-Solar: non-solar RECs traded at the price of INR 2200 at IEX (120% above the floor price) INR 2100 PXIL (110% above the floor price). A total of 494,484 RECs were traded in this session.?
Solar: The total number of solar RECs traded in this session was 76,220 at INR 2,400 at both IEX and PXIL (140% above the floor price)?
The overall trade volume (570,704 RECs) increased by almost 13% from the last months’ trade volume (504,608 RECs).
]]>Currently, the Renewable Purchase Obligation (RPO) backlog up to 2018-19 for solar is 3721 MUs and Non-solar is 7189 MUs. UPPCL has entered into a PPA and the discom expects to meet these backlogs by end of FY 2021-22 for solar and mid of FY 2021-22 for Non-solar. The pending 1319 MUs of Hydro Purchase Obligation along with the Solar RPO will be met by the Non-solar purchases as allowed in the UPERC regulations.
Further, UPPCL requested to extend the timeline to fulfil their non-compliance by stating the RE capacity in the pipeline since 2017 and will be commissioned till 2022.
As per UPERCs Promotion of Green Energy through Renewable Purchase Obligation, regulations 2010, it is suggested that a regulatory fund be created in case of the obligated entity is unable to fulfil its RPO mandate. In such a scenario, the obligated entity will deposit the equivalent amount in the fund which will then be counted against its solar/non-solar obligation.
Hence, UPERC has suggested that an RPO Regulatory Fund be created and the necessary amount at a corresponding rate of Re 1.00/- per unit be deposited by UPPCL in it.
The total amount of INR 737.11 crores is to be submitted in four instalments starting Dec. 19, Jan.20, Feb.20 and Mar.20 respectively.
Uttar Pradesh also announced its Deviation Settlement Mechanism regulations for wind and solar in 2018 and Open access regulations in December 2019. Uttar Pradesh has a 3185 MW of RE installed capacity as of January 2020 as per MNRE. ]]>
Currently, according to the inventory, there are 9,154 RECs (4,960 Solar and 4,554 Non-Solar) issued prior to 01.04.2017, which expired in the month of November 2019. Further, 2,16,849 RECs which were issued prior to 01.04.2017, are due to expire within the next four months. This includes 29,808 Solar RECs and 1,87,041 Non Solar RECs. The Commission is of the opinion that there is a need to extend the validity of these RECs.?
Hence, the Commission has decided to extend the validity of RECs which have expired as on 30th November 2019 up to 31st March 2020. In addition, the validity of RECs which are likely to expire between 1st December 2019 and 31st March 2020 is also extended up to 31st March 2020.
According to the description, the RECs which have expired/are due to expire between 1st November 2019 and 31st March 2020 will remain valid up to 31st March 2020.
The announcement sure has brought some good news for the renewable energy generators at the very start of the new year. This advancement is also like to bring changes in the price discovery of future REC trade sessions since the non-solar vintage prices reached the forbearance price of INR 3,000/- in the December trade session.? ]]>
?Non-Solar: non-solar RECs traded at the price of INR 2000 at IEX (100% above the floor price) and 480 vintage RECs got cleared at INR 3,000 and INR 1900 PXIL (90% above the floor price). A total of 442,737 RECs were traded in this session.?
Solar: The total number of solar RECs traded in this session was 61,871 at Rs 2,400 at both IEX and PXIL (140% above the floor price)?
The overall trade volume (504,608 RECs) decreased by almost 0.21% from the last months’ trade volume (505,673 RECs).
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