APTRANSCO issues Open Offer to Solar Power Developers

After a long wait, APTRANSCO has finally issued Open Offer inviting Solar Power Developers to sell Solar Power at Rs.6.49/unit. As per the notification issued, interested parties have until 30th September, 2013 to submit their application with details about the location, injection point and capacity of power to be injected. While there is no bidding process involved, locations which get applications in excess of the capacity of that location will be awarded at pro-rata basis. Most of the conditions with respect to Net Worth, Performance Bank Guarantee, Security Deposit, Commissioning Timelines remain the same as they were in the bidding process.  APTRANSCO has issued a list of locations which are available to interested developers. The initial list of 161 locations in the bidding process is reduced to 109 locations for the Open Offer owing to fill up of certain locations. Locations such as Suryapet, Ramannapet, Kanigiri and Sadasivpet have a reduced capacity due to partial fill-up by bidders. In addition to the 109 locations, developers may also choose any other …

REC Trading in August’13

The number of Non-Solar Buy-bids decreased drastically as compared to that of July. Solar REC buy-bids however increased as compared to last month with the clearing price remaining at floor price – Rs.9300. The table below summarizes the trading for August on each of the Power Exchanges – IEX and PXIL Here are a few numbers and graphs with respect to Solar and Non-Solar REC trading in August.   Non-Solar REC trading: As is the trend, all the Buy Bids (40889) were cleared. This resulted in a Trading Value of Rs.6.13 Crores. Clearing Price stood at the usual Rs.1500 owing to oversupply. The graph below shows the trend in Buy Bids, Sell Bids, Traded Volume and Clearing Price for the last 3 months. Solar REC Trading: This month the supply of solar RECs was 13 times that of demand. The clearing price for both the exchanges remained at the floor price – Rs.9300/REC. The total number of Sell Bids was 39% more than that of July and the total number …

Uttarakhand – Scheme for setting up Grid Interactive Rooftop and Small SPV Power Plants

Uttarakhand Renewable Energy Development Agency (UREDA) has released a document with three options as a part of their scheme for setting up of grid interactive rooftop and small Solar PV (SPV) power plants. This state has a good potential for setting up solar plants with about 300 sunny days available. The aim of this policy is to utilize the existing roof space for setting rooftop SPV systems which would replace DG gensets and also harness the available potential for generating solar power using unutilised space. Thereby, reducing the dependency on conventional source of energy. As per this document, excess power generated from such a SPV will be fed into the grid and during non availability or insufficiency of solar power generated, energy can be drawn from the grid. Connectivity of such projects will be either at 33 kV/ 11 kV three phase lines or 440/220 Volt three/single phase line depending on system installed. This scheme for grid interactive solar rooftop systems can also work on net metering basis wherein the beneficiary …

Maharashtra and Punjab – Strict Enforcement of RPO compliance

Over the past few months of Renewable Energy Certificate (REC) trading, it has been noticed that only a very small percentage of RECs are actually being traded in the market thereby making the current inventory balance 2.72 Million RECs. Last month’s trading figures show that less than 10% of RECs were traded and one of the reasons for this is the weak enforcement of Renewable Purchase Obligation (RPO) compliance by the State authorities. Our blogpost on last month’s trading can be accessed here and more insights on the REC market with our recommendations on how to revive it are available in our Whitepaper which can be downloaded here. Considering this poor state of the REC market, the decision taken by Maharashtra Electricity Regulatory Commission (MERC) and Punjab State Electricity Regulatory Commission (PSERC) respectively to strictly enforce RPO compliance is expected to lift up the spirits of the REC project developers. Maharashtra has directed all the obligated entities to fulfill their RPO targets – Solar and Non Solar for all four years i.e. FY 2010-11, …

APTRANSCO notification regarding closure of Solar bidding process

APTRANSCO recently published a notification intimating the closure of Solar bidding process. As per the notification, all those bidders who have decided not to go ahead with the tariff of Rs.6.49/unit are required to collect their BGs from APTRANSCO in person or can request the same to be sent through post. The last date for collecting the BGs has been mentioned as 19-08-2013. The notification may be downloaded here. As previously intimated by APTRANSCO, those who have not participated in the bidding process may also come forward to setup Solar Power plants and sell power to the DISCOMs at Rs.6.49/unit. While this has not yet started, a notification by APTRANSCO is soon expected in this regard. Though there have been news about more than 350 MW being agreed to for the APTRANSCO tariff of Rs.6.49/unit, it is not yet clear how many bidders have finally decided to go ahead with the tariff. Those bidders who have already collected the LoI also seem to be re-thinking about their plans to go …

GERC rejects GUVNL’s plea to lower Solar tariff

Earlier in July, Gujarat Urja Vikas Nigam Limited (GUVNL) had filed a petition with Gujarat Electricity Regulatory Commission (GERC) to reduce the tariff paid for solar power. GUVNL in this petition stated that GERC had approved the tariff assuming that the developers would incur a cost of Rs. 16.50 Crore per MW whereas the developers had invested only Rs. 11 to 13 crore per MW. They claimed that this has resulted in unwanted and windfall gains to the developers. This petition by GUVNL was recently rejected by GERC in its order dated 08/08/2013. The commission has ruled the petition as not maintainable as the determined tariff was accepted in the PPA by the parties and also acted upon for more than two years. It has also been mentioned in this order that this PPA signed between GUVNL and the developers does not have a clause for re-determination of tariff and hence the plea for tariff re-determination is not permissible. Even though GUVNL now has the option of approaching the Appellate …

REC Trading in July’13

The number of Non-Solar Buy-bids this month increased as compared to that of June. Solar REC buy-bids also increased as compared to last month with the clearing price remaining at floor price – Rs.9300. The table below summarizes the trading for July on each of the Power Exchanges – IEX and PXIL Here are a few numbers and graphs with respect to Solar and Non-Solar REC trading in July.   Non-Solar REC trading: As is the trend, all the Buy Bids (161402) were cleared. This resulted in a Trading Value of Rs.24.21 Crores. Clearing Price stood at the usual Rs.1500 owing to oversupply. The graph below shows the trends in Buy Bids, Sell Bids, Traded Volume and Clearing Price for the last 3 months. Solar REC Trading: This month, supply of solar RECs was 10.6 times higher than the demand with the number of sell bids this month being the highest since the Solar REC trading started. The clearing price for both the exchanges remained at the floor price – …

REC Trading in June’13

This month demand for Non-Solar RECs continued to stay low, however compared to May there was a 36.8% increase in the number of buy bids this month. On the Solar REC front, similar to last month there was a drop in demand and the clearing price for both the exchanges was at floor price – Rs.9300/REC for the first time since the Solar REC trading started. The table below summarizes the trading for June on each of the Power Exchanges – IEX and PXIL. Here are a few numbers and graphs with respect Solar and Non-Solar REC trading in June.   Non-Solar REC trading: As is the trend, all the Buy Bids (72486) were cleared resulting in a Traded Value of Rs. 10.87 Crores. Clearing Price stood at the usual Rs.1500/REC owing to oversupply. The graph below shows the trend in Buy Bids, Sell Bids, Traded Volume and Clearing Price for the last 3 months.   Solar REC Trading: Similar to last month, the supply for Solar RECs was higher …

APTRANSCO receives responses for 350 MW

After the issuance of a letter inviting bidders to submit responses for a tariff of Rs.6.49/unit last month, APTRANSCO received responses for 350 MW as per the article on Business Line this Thursday. While the responses have been received for 350 MW, it is not the case that the 34 bidders who contributed to this number have accepted the price unconditionally. As per information available, only 7 bidders (contributing to 53 MW) seem to have accepted without any conditions. The remaining 297 MW from 27 bidders were accepted subject to conditions such as change in location, capacity and if possible, price too. As per unconfirmed reports, Essel Mining and Industries Ltd. and Sunborne Energy Services India Pvt. Ltd. contributed to 40 MW out of the confirmed 53 MW. A German company (name not available) agreed to another 5 MW and rest of the 8 MW-odd capacity was accepted by 3-4 bidders in the 1-2 MW range. While many in the industry are still trying to figure out how a tariff of Rs.6.49/unit can work …

REC Trading in May’13

Trading in the month of April was a little disappointing compared to that of March. But this was expected as March witnessed good trading activity owing to year-end compliance. However, the trend continue in May too with Non-Solar trading staying close to last month’s 18 month low. On the Solar front too, Average Clearing Price hit all time low of Rs.11186/REC. Read on to know more… The table below summarizes the trading for May on each of the power exchanges – IEX and PXIL.   Here are a few numbers and graphs with respect to Solar and Non-Solar REC trading in May.   Non-Solar REC trading: As is the trend, all the Buy Bids (52968) were cleared resulting in a Trading Value of Rs.7.95 Crores. Clearing Price stood at the usual Rs.1500 owing to oversupply. Trading Volume which was expected to pick up as against the last month’s disappointing numbers didn’t see any considerable increase. One reason for this could be that more and more sellers are keeping stock of …

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