1. Renewable Purchase Obligation (RPO) / Renewable Energy Certificates (REC) Advisory and Trading

2. Target Clients Renewable Energy Generators in India
RPO mandated entities in India
Investors seeking to invest in renewable energy generation in India

3. National Action Plan on Climate Change (NAPCC) – June 2008
About RPO
National Action Plan on Climate Change (NAPCC) – June 2008 5%
10%
15%
The Electricity Act, 2003
Optimal utilization of resource incl. RE
Tariff regulation for RE power promotion
Specify purchase obligation from RE sources
The Electricity Act & National Action Plan on Climate Change (NAPCC) provide roadmap for increasing renewable energy in total generation
Renewable Purchase Obligation (RPO) – is mandated by SERC for promotion of renewable energy
RPO stipulates minimum percentage of renewable energy in energy mix of
Distribution licensee
Open Access Consumer
Captive consumer

4. Notified RPO by States State Captive Open access Non Solar RPO %
(FY 15-16)
(FY 16-17)
Solar RPO%
Remarks
Maharashtra Y
8.50
0.5
0.2 small hydro power
Madhya Pradesh 6 1
Tamil Nadu*
9.00 2
Rajasthan
8.20
8.90
2.5
FY 15-16(7.30% wind, 0.90% biomass)
FY (7.80% wind, 1.10% biomass)
Haryana
2.75
0.75
Gujarat*
8.25
1.75
FY & 16-17( 7.5% wind, 0.5% Biomass)
Chhattisgarh*
6.25
Biomass- 3.75%
Karnataka
10.00
0.25
Non-solar target of 7% for HESCOM, GESCOM and Hukkeri Society. 5% RPO target for Captive and OA consumers
Andhra Pradesh
4.75
Orissa
6.70
0.30

5. Renewable Energy Certificates (REC)
REC is a tradable certificate of proof that one MWh of electricity has been injected (or deemed to have been injected) to grid by an RE generator.
MNRE approved renewable energy sources:
Wind, Biomass, Small hydro, Solar, Bagasse based Co-generation, MSW, Biogas, Black Liquor
REC types & Price band:
REC
April April 2017
Non Solar
Rs 1, ,300
Solar
Rs 9,300 – 13,400

6. Who is eligible to participate in REC?
RE Generator
(1)
Captive Consumption
No Concessional Transmission, Wheeling or Banking
Eligible
(2)
Open Access or 3rd Party Contract
At Mutually Agreed Price
(3)
Bilateral Contract
(4)
PPA with DisCom
At Average Power Purchase Cost (APPC)of DisCom
At Preferential Tariff specified by the SERC
Not Eligible

7. REC Eligibility Preferential tariff PPA
Not eligible for 3 years if they cancel PPA
Eligible if DISCOM cancels PPA or after expiry of PPA
Captive consumption
Eligible if no promotional benefit
Concessional wheeling/transmission charges
Banking facility
Electricity duty waiver
Not eligible for 3 years even if generator foregoes benefits
Eligible if concessions are withdrawn by SERC
GBI and Accelerated depreciation benefits are not considered concessional

8. REC Eligibility…..continued
REC and CDM benefits can coexist
Not available for off grid projects
Auxiliary consumption not eligible

9. REC Process - Timeline Power Exchange State Agency NLDC
Accreditation
RE Generator applies to the State agency for accreditation upto 6 month before Commissioning
Process time: ~ 6-8 weeks
Registration
RE Generator applies for registration of accredited project with NLDC
Process time: ~ 2-3 weeks
Issuance
May apply fortnightly basis; within 6 months of injection to grid
Process time: ~ 3-4 weeks
Redemption
Last Wednesday of every month between 1300 – 1500 hrs
State Agency
NLDC

10. Demand for RECs DISCOMs Already procuring under preferential PPAs
Impact on their bottom line
Open access consumers
Inter-state plus intra-state (small segment)
Captive consumers
Large market made up of industrial users (cement, steel, chemical etc.) having thermal capacity
Likely to focus on RE development, RE PPAs or REC

11. Our services

12. Service Insight REC Development Advisory REC Trading Accreditation
RPO impact assessment
Accreditation
Registration
Issuance
Development of RPO compliance plan
REC Market Insight

13. Assessment of impact of RPO
Renewable Purchase Obligation (RPO) is the minimum percentage of renewable energy share in the area of a
Distribution Licensee
Open Access Consumer
Captive Consumer
RPO will impact you
If you are buying power from the bilateral market or exchanges
If you have captive generation capacity at your plants
Existing wind capacity where you are availing preferential wheeling and banking benefits will not be eligible to help you fulfill your RPO?

14. Assessment of impact of RPO
RPO regulations vary by state and distribution company; assistance in working out what applies to your units .
Assessment of total power consumption and identification of power sourced from:
Open Access (Bilateral or Exchange)
Captive Generation
Computation of any renewable power in your mix
Computation of RPO and therefore shortfall

15. Development of RPO compliance plan
Assessment of the options available
Buy vs Build
Technology (Wind, Solar, Biomass, Small Hydro etc.)
Suitability of Technology
Cost of power from shortlisted technology
Regulatory support
Petitioning / facilitate in regulatory clarification (e.g. inclusion of WHR / cogeneration projects as renewable)
Estimation of RPO compliance cost – taking into account factors such as
Status and impact of enforcement
Cost of procurement of REC
Assistance in finalization of RPO plan

16. RPO Compliance
We help the obligated entities fulfill their RPO by assisting them:
build their own renewable energy assets
acquire old assets, tie-up with renewable energy IPPs
purchase of RECs from the exchanges.

17. REC Development Advisory
We advise and help Clients with accreditation, registration, issuance of REC projects. Specifically included in our services:
Completeness check and Due diligence for eligibility:
Performing a thorough check for all mandatory requirements and a total quality control of the documentations that are to be submitted to State and Central Regulatory bodies. Advising Clients for every necessary action to be taken to fulfill the REC eligibility criteria.
Accreditation and Registration Support:
Assisting Clients with the entire accreditation and registration procedure with the state & central agency respectively.
Assistance in obtaining Issuance of REC:
Assisting Clients in filing application & compliance report for successful issuance of REC.

18. REC Trading and Market Insight
We are deeply engaged in the REC market - We help clients with appropriate trading strategies and provide monetization support for their RECs.
We provide assistance for trading of the RECs on Power Exchange/s.
We are Members on both the approved Power Exchanges i.e. IEX and PXIL certified for trading RECs.
We trade RECs on behalf of:
Eligible Entities (Registered RE generator)
Obligated Entities (Discom, Captive Power Producer & Open Access Consumer)
Voluntary Entities (Voluntary Corporates / Organisation / Individuals / etc)
Membership Facilitation under RSM GC Advisory on Exchange
Open new bank account OR link current operating Account
Trading on last Wednesday of every month
Put Buy / Sell Bids: Quantity & Price (Anonymous Bidding)
Bid matched based on approved exchange algorithm

19. Advantages- RSM GC Thought leaders
Participated in regulation formulation (states as well as central)
Sharing Insights through Monthly Newsletter: REC Market Update
Invited to speak at major RE trade fairs, seminars, conferences & workshops
Helped in capacity building exercise in major states for REC
Managing over INR 750 million worth yearly REC transaction portfolio (buy & sell)
Some of the first & largest REC projects in their category
Shortest time for accreditation to registration

20. 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 projects under various structures
APPC + REC, Captive, Third party sale, other exotic structures, etc

21. Clients

22. Contact us Mr. Anupam Das Purkayastha Mr. Rameez Shaikh Senior Manager
Phone : / 4336
Mobile :
Mr. Anupam Das Purkayastha
Director
Phone : /3301
Mobile :

23. THANK YOU FOR YOUR TIME AND ATTENTION