1. Overview of RENEWABLE PURCHASE OBLIGATION (RPO) & RENEWABLE ENERGY CERTIFICATE (REC) Framework & status in INDIA Presentation by Sanjeevjain Additional Director CREDA ,RAIPUR E mail- sjain218@yahoo.co.in

3. Increased flexibility for participants .

4. Overcome geographical constraints .

5. Reduce transaction costs for RE transactions .

6. Enforcement of penalty mechanism .

7. Create competition among different RE technologies .

8. Development of all encompassing incentive mechanism .

11. Central Electricity Regulatory Commission

12. Central Agency (National Load Dispatch Centre)

13. Power Exchanges

15. State Load Dispatch Centre

16. State Agencies

17. Eligible Entities

18. Obligated EntitiesState Entities 4

20. 1 REC = 1 Mega Watt hour of renewable energy generated.

21. Can be sold or traded to meet mandatory RPO targets set by State Electricity .

22. Regulatory Commissions for renewable energy purchases by utilities/distribution companies/ Obligated entities.

23. Exchanges identified for REC trading- Indian Energy Exchange & Power Exchange of India.

24. REC would be divided into two categories:Solar Certificates Non-Solar Certificates

27. Operational framework

28. Accreditation & Registration Process Verify Accreditation Application Eligible Entity State Agency SLDC Intimation Confirmation Confirmation Central Agency Power Exchange Intimation Application

29. Issuance of REC Process State Agency Verification Pre Condition Regular Injection SLDC Power Exchange Central Agency Verify before Issuance Application Issuance Intimation For Meter Reading Apply for sale of REC Eligible Entity SLDC Joint Meter Reading

30. REC Trading RPS Obligated entities 1 RE Generators 1 Electricity to Grid Electricity from Grid 4 REC purchase agreement/ trading 5 Issuance of REC 1 Central Agency- NLDC Redemption of REC 6 2 Energy Accounting Application to issue REC Compliance reporting 3 Confirmation of Energy Accounting 7 SLDC Monitoring Committee of each State Quarterly Reporting

31. Redemption Process Eligible Entity Apply for Sale of REC RPO Purchase Obligated Entity SERC Power Exchange Intimation of Sale Intimation of Sale Central Agency State Agency

32. REC- Timelines, Fees & Charges

33. REC Fees & Charges Accreditation Charges

34. REC Fees & Charges Registration Charges Issuance Charges

35. REC Pricing Framework 01/10/2011 16 Renewable Energy Electricity Component REC Component (Environmental Attribute) Market Discovered Price (Obligated Entity/Voluntary Buyer) Average Power Purchase Cost (Distribution Utility) Bilateral Agreement (de-regulated) (OA User/Trader) CHHATTISGARH - Rs. 1.67/kwh Andhra Pradesh - Rs 1.78/kWh Maharashtra - Rs 2.43/kWh Karnataka - Rs 1.85/kWh Kerala - Rs 1.46/kWh Tamil Nadu - Rs 2.62/kWh Himachal Pradesh - Rs 1.48/kWh Rajasthan - Rs 2.48/kWh

37. Variation in the Pooled Cost of Purchase across States .

42. Revised REC Price Comparison (w.e.fApril 2012)

43. Solar policy Landscape Under JNNSM, targets set for Solar Penetration

44. Off-grid Solar system Cost estimate (with Battery Back-up)

45. Off-grid Solar system Benefits Renewable Energy Certificate 1 Tax Saving due to Accelerated Depreciation 2 Freedom from grid-based electricity 3

46. Combined Benefits for a 100 kW system

47. Combined Benefits for a 200 kW system

48. REC Status* till Date (as on 30.09.11) Accreditated RE Generators -- 241(1418MW) Registered RE Generators ------176(1079MW) RECs Issued-------------------------- 197044 RECs Redeemed-------------------- 125507 (* source – NLDC)

49. Registered R.E Generator* (as on 30.09.2011)

50. SOURCE WISE RE GENERATOR

51. Total registered RE capacity 1074 MW

52. REC SUMMERY* (as on 30.09.2011)

54. States with highest RPO targets for FY12

56. Power Sector at a Glance "ALL INDIA" Total Installed Capacity as on 31.08.2011 ( source- CEA)

57. R. E Project installed all India (as on 31.08.2011) source : MNRE

58. Comparison RE Projects installed v/s Registered as R.E Generator under REC

60. Obligated Entities can plan to meet RPO targets in efficient manner.

61. Long term visibility of Floor and Forbearance price is necessary to ensure regulatory certainty for Utility as well as RE project developers.

62. Impact on Avg. power purchase cost of Utility is not very significant.

63. Utility /SERCs may develop Model Power Purchase Agreement for procurement of electricity from RE projects at APPC.

64. Bilateral transactions of RECs as & when enabled would provide larger flexibility and liquidity for REC market, which is the need of the hour.

65. Stimulate competition amongst renewable energy sources.