Capping RPO

Table-1: RECs issued, sold, retained, unsold Sl FY RECs Issued RECs sold in Power Exchs RE Genco retained Solar Non Solar Total Solar Non Solar Solar Non Solar A B C D E F G H 1 FY11 - 532 532 - 424 2 FY12 - 1,053,711 1,053,711 - 1,015,274 3 FY13 14,646 4,313,552 4,328,198 14,013 2,575,801 - - 4 FY14 412,919 6,421,357 6,834,276 66,680 2,682,014 - - 5 FY15 1,416,226 8,208,640 9,624,866 163,500 2,898,422 - 248,232 6 FY16 2,375,443 7,358,397 9,733,840 648,201 4,306,952 15,878 348,064 7 FY17 2,185,291 6,010,472 8,195,763 557,014 5,930,725 30,863 434,450 8 FY18 1,333,925 4,992,891 6,326,816 208,402 15,975,749 35,798 449,261 9 FY19 1,558,083 6,219,258 7,777,341 7,194,502 5,414,293 26,525 426,323 10 Apr-Jul'19 321,094 1,512,553 1,833,647 393,925 1,424,067 4,313 10,081 Figures in negative in column 'I' and 'J' indicate massive buying activity from t Capping RPO www.infralive.com 34 Infra LIVE August 15, 2019 Box-A: Difficulties faced by CPPs environment. 3. None of the distribution licensees are signing PPAs with the industry using CPP at APPC (Average Power Pro- curement Cos t ) the reby ensuring that CPPs are unable to generate theRECs. 4. In most of the states, banking is not permitted (for con- sumption of RE power tomeet its RPO requirement) and needs to settle the account in 15 minute time blocks. With- 2. When an industry is set up, its power and steam demand is designed considering its design process requirement i n c l u d i n g c o n t i n g e n c y requirement. Once the capac- ity is built, it is not possible to use renewable power as it will require reduction in genera- tion which will affect genera- tion of steam and plant will be running inefficiently at part load. Part load operation causes more emissions in the Following are the key difficulties in fulfilling RPO by the industry using their CPPs: 1. Renewable power is not avail- able 24x7 and varies a lot during the day. Also its avail- ability changes significantly during the year. Since large industries run 24x7 with simi- lar load & it is almost impossi- ble to manage and adjust the load that the industry requires according to variation in renewable power generation. Open Access consumer, Cap- tive Power Plants (CPPs) will have option of purchasing the REC tomeet their RPO. REC mechanism is a market based instrument to promote renewable energy and facilitate compliance of renewable pur- chase obligations (RPO). One REC is treated as equivalent to 1 MWh. There are two categories - Solar RECs and non-solar RECs. Solar RECs are issued to eligible entities for generation of electricity based on solar as renewable energy source, and non-solar RECs are issued to eligible entities for gen- eration of electricity based on renewable energy sources other than solar. The solar certificates are sold to the obligated entities to enable environmental attributes associated with RE genera- tion separately. ¦ On choosing the second option, the environmental attributes can be exchanged in the form of REC. Price of elec- tricity component would be equivalent to weighted aver- age power purchase cost of the distribution company includ- ing short-term power pur- chase but excluding renew- able power purchase cost. ¦ The Central Agency will issue theREC toREgenerators. ¦ The REC will be exchanged only in the Power Exchanges approved by CERC within the band of a floor price and a forbearance (ceiling) price to be determined by CERC from time to time. ¦ The distribution companies, Central Electricity Regulatory Commission (CERC) has notified Regulation on Renewable Energy Certificate (REC) in fulfillment of itsmandate to promote renewable sources of energy and develop- ment of market in electricity. The framework of REC is expected to give push to RE capacity addition in the country. Salient Features of the REC Framework ¦ There will be a central level agency to be designated by the Central Commission for regis- tration of RE generators par- ticipating in the scheme. ¦ The RE generators will have two options - either to sell the renewable energy at preferen- tial tariff fixed by the con- cerned Electricity Regulatory Commission or to sell the electricity generation and Box-B: CERC notified REC framework