Renewable Energy (RE) Power Contracting & Trading

Target Clients Renewable Energy (RE) Project Developer Investors seeking investment in Renewable Energy projects Industrial / commercial energy users – using renewable energy or contemplating use of RE

Benefits of RE power procurement Carbon neutral power sourcing Higher grounds on sustainability roadmap RPO compliance Robust portfolio of power options Can deliver cost savings

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.

Typical Process for RE Power tie-up LOI Intent to sell / purchase Qty, period & price Term Sheet Matching buyer/ seller High level terms Agreement Power Purchase , Share holding, etc. Set-up ABT meter, etc. Approvals Open access Regulatory filings Typical Process for RE Power tie-up Monthly Process Billing & Payment Power Generation Open access charges Credit Adjustment

Our services

Overview of Service Renewable Energy Contracting For Project Developers For RE power users Power Resources and Cost Optimization Renewable Energy Project Assessment For RE Project Developers For RE power investors

Renewable Energy Contracting Policy & Regulatory analysis for renewable energy power sale in various states of India - 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 contract

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 AND 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 price 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

Power Resources & Cost Optimization Plan… Contd. We do the following 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 Evaluate 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 Facilitating sale / purchase of power through exchanges, 3rd party bilateral (renewable / non renewable), group captive, etc Assist execution of PPAs, EWAs, SHAs, open access approvals, setting-off of open access units in the bill, etc.

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

Case Study 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) Particulars Old Structure New Structure MW Cost INR/u 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 TPS - Wind w/o RPO 5.25 0.0 22 115.0 GCS - Wind with RPO 13 75.6 RPO (REC procurement)   1.5 19.7 403 1837.4 1806.8 30.7

Advantages RSM GC Deep insight: Thought leaders, Helped in capacity building exercise in major states for open access. Rich Experience: Advised IPPs on power sale strategy at the stage of finance raising to operations Advised some 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%

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

Contact Us Mr. Rameez Shaikh Senior Manager Phone: +91 22 27575346/ 336/ 335   Mobile: +91 99200 33866 Email: rameez.shaikh@general-carbon.com Mr. Anupam Das Purkayastha Director Phone :+91 22 2266 3201/3301 Mobile :+91 9029002980 Email : anupam.das@general-carbon.com RSM GC Advisory Services Private Limited Mumbai Office Address: 7th Floor, B Wing, Kukreja Centre, Plot No.13, Sector -11, CBD Belapur, Navi Mumbai - 400 614, Maharashtra. Phone: +91 22 27575346/ 336/ 335   Email: info@general-carbon.com https://twitter.com/GC_Advisors www.linkedin.com/company/general-carbon https://www.general-carbon.com/

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