OPEN ACCESS

India’s Largest REC Trading Company

May-June 2014
Volume - 42
CONTENT
From Management‘s Desk
In this volume of “OPEN ACCESS” we have analysed on the recently re-
Analysis of revised Kar- vised Karnataka Solar Policy 2014-21. Key policy changes including that
of Solar Purchase Obligations and net-metering have been highlighted,
nataka Solar Policy along with our analysis of what may and may not work well.

Regulatory Updates Another important development was the amendment to Rajasthan RPO
regulations. Despite including a proposal to amend the regulations on
cogeneration as per ApTel’s recent judgement, RERC failed to actually
REC Trade Results amend the RPO regulations on the important point. Solar RPO for large
captives and open access users has been introduced for the first time.

In the regulatory updates section, JERC’s (UTs & Goa) order that im-
REC Project Stats posed penalty on utilities of Dadra & Nagar Haveli for non-compliance
of RPO targets is covered. JERC (UTs & Goa) is only the second regula-
tor to have taken serious action on non-compliance of RPOs. KERC’s re-
vision of retail tariff for FY15 and other updates are also covered.
Green News
REC trading in May 2014 continued its poor run. Volumes touched a 3
year low. The state of affairs continued despite penalization proceed-
ings from two state power regulators. However, June 2014, being end of
About REConnect
Q1, witnessed a jump in demand of non-solar RECs. More details cov-
ered in relevant section.

We hope this volume to be an insightful read, and as always, look for-

ward to your feedback.

- Team REConnect
 PAN Managing REC
45% India 2.1 GW Projects in

Market Share Presence Projects under 16

in REC Trading management States

Analysis of revised
Regulatory Updates REC Trade Report REC Project Stats Green News About REConnect
Karnataka Solar Policy

Analysis of revised Karnataka Solar Policy

The Government of Karnataka (GoK) on 22nd May 2014 revised its existing state solar power policy. Karnataka previ-
ously had a five year solar policy in place for the period 2011 to 2016. The new solar policy is a seven year policy
spanning 2014 to 2021. With the release of a new comprehensive solar policy, GoK aims to develop Karnataka as a
solar hub of India.
Karnataka’s solar potential is estimated to be 20 GW, but taking into consideration the issues of land allocation and
power evacuation, the achievable potential has been marked down to 10 GWs. The policy also focuses on develop-
ment of solar rooftop projects for the first time.
Karnataka has 240-300 sunny days in a year and solar insolation in the state has been estimated to be 5.4 to 6.2
kWh/sq. meter/day. It was the first southern state to notify a solar policy in 2011 and also first to commission utility
scale solar project in India. However, the policy led to only very modest development of solar capacity in the state.
As of Jan 2014, only 31 MW capacity was commissioned in Karnataka, compared to 860 MW in Gujarat and 666 MW
in Rajasthan. With a revision in the policy, it is hoped that significant capacity will be added in the state.
A comparative analysis with Solar Policy of 2011 is below:
Karnataka Solar Policy
Karnataka Solar Policy 2014-21 (New)
2011-16 (Old)
Notification date – 1st
Notification date – 22nd May 2014
July 2011
Operating period – July
2011 to March 2016 (5 Operating period – 2014 to 2021 (7 year policy)
year policy)
Target – Target –
 126 MW by FY14 2000 MW (in phased manner, refer Table 1 below) by 2021 i.e. 3% of solar energy out of
 For procurement by total projected consumption.
rd
ESCOMs – 200 MW  Segment 1: Grid connected projects (sale to ESCOMs, captive consumption & 3
by FY16 party sale) – 1600 MW.
 Under REC mecha- 1.1 Projects by land owning farmers – 300 MW.
nism – 100 MW 1.2 Projects under REC mechanism, captive/group captive, IPPs – No limit.
 Under Bundled 1.3 Projects under bundled power – Not defined.
power scheme - 50 1.4 Projects selected by competitive bidding (capacity > 3 MWp) – Not defined.
MW
 Segment 2: Grid connected rooftop projects – 400 MW by 2018.

Incentives – Not defined Incentives –

 Tax concessions will be as per Karnataka industrial policy.
 Industrial consumers opting to buy power from SPP under RECs, captive/group cap-
tive, IPPs will be allowed reduction in contract demand on pro-rata basis.
Additional points -
 Rooftop solar to be promoted; net-metering provisions included.
 Solar purchase obligations (SPO; similar to TN) being considered.
Table 1 : Analysis by comparison of Karnataka new & old solar policy

www.reconnectenergy.com Page 1
 PAN Managing REC
45% India 2.1 GW Projects in

Market Share Presence Projects under 16

in REC Trading management States

Analysis of revised
Regulatory Updates REC Trade Report REC Project Stats Green News About REConnect
Karnataka Solar Policy

Analysis of revised Karnataka Solar Policy

ESCOMs have been tasked with the responsibility to ad-
minister net-metering for small scale/rooftop solar pro-
jects.. Registration, approval, metering protocol will
looked after by ESCOMs. Though KREDL, the state agency
for promoting renewable energy will be responsible for
admisnitering subsidies. For project approvals for more
than 50 MW project, a special committee – “High level
project approval committee” is being constituted by GoK.
Approvals for all other projects will be given by GoK.
sponsibility of ESCOMS to adminsiter net-metering. It is
very likely that the ESCOMS will be averse to develop-
ment of large capacity which is variable in nature and
potentially procured at a high cost. Simialrly, it would
have been better to have a solar RPO percentage pre-
scribed in the Karnataka RPO regualtions (Karnataka is
the only state in the country to not have a solar RPO %
defined), rather than considering a separate SPO.

Apart from the above policy guidelines, through this new

policy, GoK is also considering the following -
- end of article -
 Introduction of Solar Purchase Obligation (SPO) for HT
consumers having contract demand more than 50
kVA. Such an introduction seems to be a bold step
specially when ApTel recently scrapped TN’s solar poli-
cy and pronounced against SPO in addition to solar
RPO. Further, there is no mentioned of having a solar Don’t forget to take note of
RPO percentage prescribed in the Karnataka RPO
regualtions (Karnataka is the only state in the country our new addresses of Banga-
to not have a solar RPO % defined)
lore and Delhi Office ( on Page
 Amendment to the Land Reform Act to facilitate
deemed conversion of land for solar projects. 13 ).
 A separate cell in KREDL is to be set-up which will have
staff from revenue department. This cell is to create a Please use the mentioned ad-
govt./private land bank for development of solar pow-
er.
dresses for all future corre-
 Solar PV projects will no longer require to take ap- spondence.
provals from pollution control boards.

Overall, Karnataka has put in place a comprehensive solar

policy. However, we feel that there are several shortcom-
ings in the policy, the most signficant one being the re-

www.reconnectenergy.com Page 2
 India’s largest REC Trading Company

Analysis of revised
Regulatory Updates REC Trade Report REC Project Stats Green News About REConnect
Karnataka Solar Policy

Regulatory Updates

JERC (Goa & UTs) imposes penalty for non-compliance of solar RPO targets for FY11 to FY14. However, no penalty
RPO was imposed with respect to such non-compliance.
Puducherry – Puducherry has failed to comply with solar
Joint Electricity Regulatory Commission (JERC) for UTs and RPO targets for FY11-FY14, noted JERC. In this case also,
Goa has become the second electricity regulator to im- there was no penalty imposed and the utility of
pose penalty for non-compliance of RPO targets. JERC Puducherry was asked to submit detailed report by
st
(Goa & UTs) had previously through a suo-motu order 21 July 2014.
(dated 27th Dec 2013) directed all obligated entities to The additional information w.r.t amendment to principal
comply with RPO targets of FY11 to FY14 by 31st March RPO regulations is that the same has been forwarded to
2014 and submit a detailed report by 17th April 2014. JERC Controller of Publication, Govt. of India for publication.
notes that some of the obligated entities have failed to Our blog-post on the issue can be read by click-
fulfil the targets. ing here .For more details refer the order here

Goa – In case of Goa, JERC after scrutiny of the report
(submitted by former) was of the view that Goa has failed
to fulfil Solar RPO targets from FY11 to FY14 and has con-
sequently been directed to submit a detailed report by 21
July 2014. JERC has asked Goa to meet its RPO targets
(along with all backlogs) positively.
APERC unveils wheeling, transmission and SLDC
charges for FY15
The state regulator of AP has determined open access
charges namely – wheeling, transmission and SLDC
charges for 3rd control period (i.e. from FY15 to FY19).
Wheeling Charges:

Andaman & Nicobar Islands – JERC found that respond- The wheeling charges determined by APERC are different
ent has met with all targets up-to FY14. JERC emphasized for all discoms. The wheeling charges will be effec-
that quarterly submission of RPO compliance reports to tive 17th May 2014. The table below shows the applica-
state agency should continue without fail. ble wheeling tariff for subsequent years starting FY15.
Chandigarh – Chandigarh has also fulfilled RPO targets Wheeling charges to be levied by CPDCL -
from FY11 to FY14. JERC mentioned that Chandigarh has 2014- 2015- 2016- 2017- 2018-
also submitted the planning report for compliance of RPO Particulars
15 16 17 18 19
targets of FY15. 33 kV (Rs./
7.37 12.12 12.95 12.93 13.78
Dadra & Nagar Haveli – JERC has taken serious steps for kVA/Month)
non-compliance of RPO targets. The utility of Dadra & 11 kV (Rs./
140.4 185.82 205.14 219.61 232.79
Nagar Haveli has therefore been asked to deposit INR 110 kVA/Month)
crore (Provisional) with the state designated agency posi-
tively by 30th September 2014 if it fails to comply with tar- A conventional generator using distribution network of
gets by 21st July. CPDCL and drawing energy at 33 kV will now have to pay
Rs. 0.01 per unit. For 11 kV the same will be approx. Rs.
The utility has also been directed to submit proposed 0.195 per unit in FY15.
plan to meet RPO targets of Fy15.

Daman & Diu – As per JERC, Daman & Diu has also not Wheeling charges to be levied by EPDCL -
complied with RPO targets of FY11- FY14. The regulator
2014- 2015- 2016- 2017- 2018-
also emphasized that OA consumers in the area of licen- Particulars
15 16 17 18 19
see are also required to meet the targets. The utility in
33 kV (Rs./
Daman & Diu was asked to submit detailed report by 7.37 12.12 12.95 12.93 13.78
st kVA/Month)
21 July 2014.
11 kV (Rs./
140.4 185.82 205.14 219.61 232.79
Lakshadweep – Lakshadweep has failed to meet non- kVA/Month)

www.reconnectenergy.com Page 3
 India’s largest REC Trading Company

Analysis of revised
Regulatory Updates REC Trade Report REC Project Stats Green News About REConnect
Karnataka Solar Policy

Regulatory Updates

Wheeling charges to be levied by NPDCL - SLDC Charges:

2014- 2015- 2016- 2017- 2018- The following SLDC charges (Annual Fee & Operational
Particulars
15 16 17 18 19 Charges) shall be paid by Generating Companies
33 kV (Rs./ (including Captive Generating Plants), Distribution Licen-
13.46 10.98 11.38 11.8 12.22
kVA/Month) sees and Trading Licensees using the intra-state Trans-
11 kV (Rs./ mission Network.
240.15 232.39 247.55 262.96 279.5
kVA/Month)
Fee (Rs./MW/ Operating Charge
Wheeling charges to be levied by SPDCL - Year
Year) (Rs/MW/Month)
2014- 2015- 2016- 2017- 2018-
Particulars 2014-15 2535.65 2378.11
15 16 17 18 19
2015-16 2209.34 3092.78
33 kV (Rs./kVA/
7.08 13.52 14.48 15.19 16.2 2016-17 3533.18 2247.62
Month)
2017-18 3995.39 2300.31
11 kV (Rs./kVA/
181.09 241.99 260.57 277.99 297.2 2018-19 4214.27 2342.73
Month)

Detailed order is available here.

Note – As per Govt. of AP policy there will be no wheeling
charges applicable on non-conventional energy genera- Rajasthan amends its principal REC/RPO regula-
tors (Wind, Solar and Mini-Hydel). tions-
The order on wheeling tariff can be accessed here.
Rajasthan electricity regulatory commission (RERC) made
Transmission Charges:
public an amendment on 30th May 2014, to its principal
The APTRANSCO will levy the following transmission RPO/REC regulations. RERC had invited comments latest
charges starting from FY15.
by 18th March 2014 and after hearing views & submis-
Transmission Tariff sions of all stakeholders this amendment has been de-
Genera-
Net Transmission Trans- vised. For more information on draft of amendment,
Finan- tion ca-
ARR(Rs. Charge/Rate mission
cial Year pacity please refer our blog-post – Rajasthan proposes amend-
Cr.) (Rs/kW/ Loss
MW
Month) (kind) ment to RPO regulations.
1 2 3 4(3/2) 5
The key issues for consideration during finalization were:
2014-15 1685.46 21509 65.3 4.02%
2015-16 2201.37 23931 76.66 4.02%  Fixing RPO targets from FY15 onwards
2016-17 2785.44 25407 91.36 4.01%
 Exclusion of RE based co-gen plants from RE for
2017-18 3043.07 26589 95.37 3.98%
2018-19 3148.98 27786 94.44 3.95% meeting RPO.
 And on prescribing separate solar & non-solar RPO
Note – RE generators will continue to be exempted from based on capacity.
paying the above transmission tariffs as per Govt. of AP
policy directives. RPO targets from FY15 onwards have been fixed as per
RERC’s proposition. The finalized RPO targets for FY15
Transmission tariff order can be read in detail by click-
ing here. onwards are - (refer table on next page)

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 India’s largest REC Trading Company

Analysis of revised
Regulatory Updates REC Trade Report REC Project Stats Green News About REConnect
Karnataka Solar Policy

Regulatory Updates

S
No. Year Obligation expressed as percentage of energy consumption (%)
Non Solar Solar Total
1 2014-15 7.5 1.5 9
2 2015-16 8.2 2 10.2
3 2016-17 8.9 2.5 11.4

Table 2 - Captive/OA consumers with total capacity of 10 MW & above

S No. Year
Obligation expressed as percentage of energy consumption (%)

1 2014-15 9
2 2015-16 10.2
3 2016-17 11.4
Table 3 - Captive/OA consumers with total capacity above 1 MW but below 10 MW

RERC maintained its stand of not specifying separate RPO ruled not to modify any definition. This necessarily trans-
(NS & S RPO) for OA/Captive consumers below 10 MW. lates that Obligated entities under RPO in Rajasthan can
The commission noted that it would be difficult for small- continue to meet their RPO by consuming power from
er entities to enter into PPA for purchase of small quantity captive co-gen plants even if they are fossil fuel based.
of power. This appears to be in contravention of ApTel’s recent
judgement which RERC had itself quoted in the draft reg-
This is despite a majority of OA/Captive consumers hav-
ulation..
ing capacity below 10MW.A separate solar RPO for con-
sumers below 10 MW would have spurred growth of solar APERC determines tariff for biomass, bagasse power
power in Rajasthan. projects

RERC in the draft notification had proposed to exclude Andhra Pradesh Electricity Regulatory Commission
“cogeneration” from the definition of “purchase/sale of (APERC) through an order dated 16th May 2014, has de-
renewable energy” in RERC (REC and RPO compliance termined the variable cost for existing Biomass, Bagasse,
and Industrial waste based power projects in AP for the
framework) regulations 2010. In deciding this, RERC relied
period 1st April 2014 to 31st March 2019.
on the judgement of ApTel between Lloyds metals and
Engineers v/s MERC. In the judgement it was concluded The commission before finalizing this order had done its
due diligence by floating a consultation paper and hold-
by ApTel that “electricity produced from fossil fuel based ing a public hearing in which every stakeholder’s view
co-gen need not be considered as renewable energy as was taken into consideration. This process was carried
th
far as purchase of renewable energy by an obligated enti- out on the lines of directives of ApTel in its 20 Dec 2012
order which says –
ty under RPO is concerned.”
“However, we feel that there is a need for carrying out a
However, in the final regulations, RERC has taken a U-turn
scientific study for determining the normative parameters
and thereby has countered its own argument in draft no- specific to the state for future. The study should also take
tification. After hearing the suggestions of stakeholders, into consideration the technological improvements that

www.reconnectenergy.com Page 5
 India’s largest REC Trading Company

Analysis of revised
Regulatory Updates REC Trade Report REC Project Stats Green News About REConnect
Karnataka Solar Policy

Regulatory Updates

have since taken place in the generation by non- KERC hikes power tariff for FY15
conventional energy sources. We direct the State Com-
Cost of buying electricity from DISCOMs has become
mission to arrange to undertake the study on priority and
costlier for the Commercial & Industrial consumers in the
frame its Tariff Regulations for purchase of power by dis-
state of Karnataka. Karnataka Electricity Regulatory Com-
tribution licensees from NCE sources after considering the
mission (KERC) has approved a new tariff for supply of
Study Report, Central Commission’s Regulations and any
electricity in FY 2014-15. Average increase in tariff is 32
other relevant information.” The variable cost determined
paisa against the 66 paisa increase sought by ESCOMs,
for Biomass based projects are as in table below:
tariff increase is ranging from 10 paise to 50 paise per
Indicative Variable Cost for Biomass Power Projects unit for different categories of consumers and is applica-
for the period FY 2014-15 to 2018-19 (Rs./Unit) ble from 1st May 2014.
Financial year Variable Cost Increase in Industrial Tariff:
2014-15 4.28
2015-16 4.54 Demand
2016-17 4.81 Charges No In-
Rs.180/-
2017-18 5.1 (DC) per crease
2018-19 5.4 HT Industrial: KVA
Applicable to
The costs projected for subsequent years are indicative; Areas under Consump-
meaning the commission will determine the actual price HT-2 Bruhat Banga- tion Energy
escalation before the start of each financial year starting
(a)(i) lore Mahanaga- Charges (EC)
FY16. The variable cost determined for Industrial waste
based power projects: ra Palike and
0 to 1 Lakh 40 Ps In-
Municipal Cor- 575 Ps
Indicative Variable Cost for Industrial Waste Based KWH creased
Power Projects for the period FY 2014-15 to 2018-19 porations.
(Rs./Unit)* Above 1 Lakh 40 Ps In-
Financial year Variable Cost 615 Ps
KWH creased
2014-15* 4.28
2015-16 4.54 Demand
2016-17 4.81 Charges No In-
Rs.170/-
2017-18 5.1 (DC) per crease
2018-19 5.4 KVA

The variable cost determined for bagasse based power HT Industrial: Consump-
projects are: Applicable to tion Energy
HT-2
Areas other than Charges (EC)
Indicative Variable Cost for Baggase Power Projects (a)(i)
for the period FY 2014-15 to 2018-19 (Rs./Unit)* those covered
Financial year Variable Cost under HT-2(a)(i) 0 to 1 Lakh 35 Ps In-
570 Ps
2014-15 2.73 KWH creased
2015-16 2.89
2016-17 3.06 Above 1 Lakh 35 Ps I
600 Ps
2017-18 3.25 KWH increased
2018-19 3.44
The order can be read in detail by clicking here .

www.reconnectenergy.com Page 6
 India’s largest REC Trading Company

Analysis of revised Regulatory

REC Trade Report REC Project Stats Green News About REConnect
Karnataka Solar Policy Updates

Regulatory Updates

New opportunities have opened up for those industrial Wheeling and Banking for Renewable Energy Sources:
consumers availing or seeking open access, as cross sub-
sidy (CSS) has been reduced, which makes the purchase RE generators wheeling energy to the consumers in the
of power from Independent power producers( IPP, Bilat- State have existing Wheeling (5 %) and Banking charges
eral contracts) and power exchange (PXs, Bidding for (2 %) which is going to continue up to 30.06.2014 or till
power) more viable option for the consumers giving sav- further orders from commission.
ings from 20 paise to 50 paise per unit.
Cross Subsidy :
HT-2(a) Voltage level Paise/unit
Voltage level HT-2a HT-2b HT-4 HT-5
HT level-11 kV/33kV 7 66KV & Above 198 352 135 534
66 kV & above 42 HT level- 11KV/33KV 128 283 65 465

Increase in Commercial tariff:

In a nut-shell -
Commercial consumers comprising of hotels, malls, com-
mercial buildings etc. have to pay extra 40 paisa per unit  Hike in tariff will lead to more consumers eying for
consumed by them. Commercial consumers are the high- open access.
est paying consumers and this increase in the tariff is ex-  With CSS going down, cost of availing OA will come
pected to impact them badly.
down. Again an added advantage for consumers to
Being the highest paying consumers, the saving potential opt for OA.
for the commercial consumers is high. Sourcing power
under open access from IPPs and PXs seems more viable Delhi discoms request to waive RPO of FY13
options after decrease in the CSS. Group captive arrange-
Delhi discoms have requested to DERC, to waive RPO tar-
ment will still remain most viable option for the commer-
gets of FY13. This request was put forward by discoms in
cial consumers where saving potential is up to Rs 1.00 per
their respective ARR petitions for FY15. The discoms con-
unit.
tend that RPO regulations were introduced in Delhi only
Open Access Charges: in October 2012 and as such there was little time in that
KERC has also defined open access charges applicable for year to meet the targets.
the FY 2014-15. Delhi discoms BYPL and BRPL mde reference to MERC’s
Losses: order dated 7th August 2009, where the RPO targets from
FY08 to FY10 were exempted due to shortfall in projected
Wheeling loss 4.04% and transmission loss 3.81% defined RE capacity addition.
for HT consumers
While it is left on DERC to decide on this matter, any deci-
Charges: sion in favour of the request would further dent the on-
Transmission tariff of Rs. 98324/- MW/Month as against going positive enforcement efforts in other states.
the existing tariff of Rs.95442/MW approved for 2013-14 The ARR petitions are available on DERC’s website.
Wheeling charge (in Ps. Per unit) : Our recent blog-post highlighting projections by discoms
for meeting RPO of FY15 can be read here .
Injection Point →
HT LT
Drawal Point ↓
HT 11(4.04%) 35(12.66%) - end of article -
LT 35(12.66%) 24(8.62%)
Note: Figures in brackets are applicable loss

www.reconnectenergy.com Page 7
 India’s largest REC Trading Company

Analysis of revised Regulatory

REC Trade Report REC Project Stats Green News About REConnect
Karnataka Solar Policy Updates

REC Trade Report - May & June 2014

For past trading history - CLICK HERE

Non Solar RECs

In May 2014, Demand and clearing ratios touched one of the lowest points in three years. Demand in May was 29,255,
compared to 79,354 in April (down 63% over April) and down 45% from May of last year. The last time demand was this low was
in August 2011. Clearing ratios at both exchanges were approximately 0.45%. Closing inventory of RECs is in excess of 69.5 lakh.

REC trade session for June 2014 was conducted on 25th June 2014.

The total transactional value of non-solar RECs was INR 208.8 million and for solar RECs it was INR 15.4 million. The closing bal-
ance of REC inventory for non solar RECs breached the 7 million mark this month whereas solar RECs crossed 0.23 million mark.

In case of non- solar RECs demand almost quadrupled (up by 376%) as compared to last trade session (refer - May 2014 trade
report) and Supply grew by 5.23 %. Non Solar price continued to remain at floor (INR 1,500 per REC). More insights provided in
graphical charts below :

For more details please visit our blog-post here.

www.reconnectenergy.com Page 8
 India’s largest REC Trading Company

Analysis of revised Regulatory

REC Trade Report REC Project Stats Green News About REConnect
Karnataka Solar Policy Updates

REC Trade Report - May & June 2014

For past trading history - CLICK HERE

Solar RECs

In May 2014, Demand improved marginally from 989 RECs last month to 2,120 RECs. As a result, clearing ratios im-
proved as well – 0.26% in IEX and 4.8% on PXIL, albeit on very low demand compared to existing inventory. Inventory
stood at over 2.1 lakh RECs.

In June 2014, total solar RECs issued was 27,787 and redeemed were 1654 only. In contrast to non-solar RECs, the demand for
solar RECs took a beating as it went down by 22%. Supply rose by 11% w.r.t May 2014. More details can be found in the graphs
below -

For more details please visit our blog-post here.

www.reconnectenergy.com Page 9
 India’s largest REC Trading Company

Analysis of revised
Regulatory Updates REC Trade Report REC Project Stats Green News About REConnect
Karnataka Solar Policy

REC Project Status - As on May 21st, 2014

Registered Capacity
4278.391 MW Wind

2157.08
Bio-fuel
Cogeneration
745.048

All figures
in MW

Solar PV
RERC
Biomass 447.03

has
664.055
Small Hydro
256.99
Projects Registered

Source wise

All figures in
MW

Projects Registered

State wise

www.reconnectenergy.com Page 10
 India’s largest REC Trading Company

Analysis of revised
Regulatory Updates REC Trade Report REC Project Stats Green News About REConnect
Karnataka Solar Policy

Green News - National

Reforming India’s energy policy

India’s policymakers are fond of defining the country’s energy security in terms of three As: availability, access and
affordability. However, the three As appear at increasing risk in the face of four formidable barriers: energy subsi-
dies, systemic management inefficiencies, competition from a resource-hungry China and climate change. Source:
Live Mint.
Read More
UP SMEs looking to tap solar energy
The Small and Medium Enterprises (SME) in Uttar Pradesh are looking at tapping solar energy to deal with persis-
tent power cuts and insulate against rising electricity tariffs. The 30% central subsidy provided on solar power in-
stallations has only added to the attractiveness of the proposition. After subsidy, a typical solar power system costs
about Rs. 1.40 lakh per kW capacity, although the final price largely depends upon the battery strength. Source:
Business Standard.
Read More
India May Back Solar Duties as Probe Says U.S., China Dumped
India may recommend duties on U.S. and Chinese solar imports after finding evidence of dumping, broadening a
global trade dispute in the $130 billion market. More than 20 overseas suppliers, including First Solar Inc. and Yingli
Green Energy Holding Co., sold equipment in India for as little as half the cost as in their home markets and under-
cut local prices by as much as a third, according to a summary of a 1(1/2) year probe by the Ministry of Commerce
& Industry sent to the parties involved and obtained by Bloomberg News. Source: Bloomberg
Read More
Strong long-term demand outlook for wind energy sector: Icra
Credit rating agency Icra today said the long-term demand outlook for wind power remains strong mainly on ac-
count of cost-competitiveness, regulatory support and the generation-based incentive benefit. "The long-term de-
mand outlook for the wind energy sector remains strong, aided by the cost-competitiveness of wind energy against
the fossil fuels and regulatory support in place by way of renewable purchase obligation (RPO) norms for the obli-
gated entities, besides the financial support by way of GBI (generation based incentive) benefit," Icra said in a study.
Source: The Economic Times.
Read More

Major respite to solar power players in Punjab

Solar power players willing to invest in Punjab are likely to get shot in the arm with the state government paving
the way for leasing out vacant panchayat land to them. Players who had signed power purchase agreement
with the state power utility earlier this year have not acquired land citing exorbitant land prices as the stumbling
block for setting up power plants. Officials said the current notification would assist the developers in speedy im-
plementation of project, as their major concern has been addressed. Source: Business Standard
Read More

No-Incentive policy harming the solar sector, say industry experts

Despite a lull in private equity investment in infrastructure, interest in renewable energy remains high, with at least
two deals being negotiated, according to two investment bankers aware of the discussions. US-based private equi-
ty firm KKR and Co. is evaluating the possibility of investing around $100 million in renewable power projects
of Greenko Group, a UK-based group that has power projects in India, said the first investment banker quoted
above. Source: Times of India
Read More

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 India’s largest REC Trading Company

Analysis of revised
Regulatory Updates REC Trade Report REC Project Stats Green News RPO Map
Karnataka Solar Policy

India’s RPO Map

2014-15 RPO 2014-15 RPO

States Obligation Obligation
(Non Solar) ( Solar)

Andhra Pradesh 4.75 % 0.25 %

Assam 6.75 % 0.25 %
Arunachal Pradesh 6.80 % 0.20 %
Bihar 4.25 % 0.75 %
Chhattisgarh 6.00 % 0.75 %
Delhi 5.95 % 0.25 %
Gujarat 6.75 % 1.25 %
Haryana 3.00 % 0.25 %
Himachal Pradesh 10.00 % 0.25 %
J&K 5.25 % 0.75 %
Jharkhand 3.00 % 1.00 %
Karnataka 10.00 % * 0.25 % *
Kerala 4.39 % 0.25 %
Madhya Pradesh 6.00 % 1.00 %
Maharashtra 8.50 % 0.50 %
Meghalaya 0.60 % 0.40 %
Odisha 6.25 % 0.25 %
Punjab 3.81 % 0.19 %
Rajasthan 7.50 % 1.50 %
Tamil Nadu 11.00 % 2.00 %
Tripura 2.65 % 0.35 %
Uttarakhand 7.00 % 0.075 %
Uttar Pradesh 5.00 % 1.00 %
West Bengal 4.35 % 0.15 %
Goa & UTs 2.70 % 0.60 %
Manipur 4.75 % 0.25 %
Mizoram 14.75 % 0.25 %
Nagaland 7.75 % 0.25 %

* BESCOM,MESCOM, CESC - 10 % + 0.25%, HESCOM, GESCOM, Hukkeri Society - 7 % + 0.25%.

Status of Regulation - Final for all states except -
Draft for Rajasthan, Tamil Nadu, Haryana, Tripura, Goa & UT.
Final (till FY14) - Manipur & Mizoram.
Final (till FY13) - Uttar Pradesh, Meghalaya, Nagaland.

RPO on OA Users? - Yes for all states except Tamil Nadu & West Bengal.
Karnataka(5.00% RPO) - Yes (> 5MW).

RPO on CPP? - Yes for all states except Tamil Nadu & West Bengal.
Gujarat, Odisha, Haryana, Bihar, Jharkhand, Tripura, Karnataka(5.00% RPO) - Yes (> 5MW).

RPO Penalty? - Yes (RECmax) for all the states.

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 India’s largest REC Trading Company

Analysis of revised
Regulatory Updates REC Trade Report REC Project Stats Green News RPO Map
Karnataka Solar Policy

About REConnect

REConnect Energy is India’s leading renewable energy trading company. We provide end-
to-end services for projects in the Renewable Energy Certificate mechanism – from con-
tract structuring, advisory to monetization of RECs. We also work with power consumers to
manage Renewable Purchase Obligation (RPO) liabilities, and develop and execute their
energy sourcing strategy. We are a knowledge focused company that prides itself in
providing premium services to our clients backed by in-depth research and analysis.

REConnect is run by an experienced and professional team. The team consists of members
with relevant experience of working at IEX, L&T, JP Morgan, Arthur Andersen and Gensol.
Key members of the team are alumnus of IIT Bombay, Columbia University (an Ivy League
university) and IIT Kharagpur.

For more details of services provided and profile of the management team, please visit our
website.

Contact Details

Bangalore: New Address New Delhi: New Address Mumbai:

Vishal Pandya Vibhav Nuwal Ram Kumar ( +919930359992 )
Vishal.Pandya@reconnectenergy.com Vibhav.Nuwal@reconnectenergy.com Ramkumar@reconnectenergy.com
No. 2 , 2nd floor, Kodihalli, Old Air- C– 503, 5th Floor, Nirvana court- Haware Fanatasia
port Road, HAL 2nd Stage (PO), yard, Nirvana Country, Sector 50, Business Park,
Bangalore—560008 Gurgaon 122018. F 159, Plot no. 47,
O : 080 - 6547 3383 / 84 O : 0124 - 4103216 Sector 30-A, Vashi,
F : 080 - 30723571 F : 080 - 30723571 Navi Mumbai 400703.

Chennai: Hyderabad: Solar Market:

Rajesh Vaidyula ( +91 9940478306 ) Bhanu Tejja Anurag Dhyani
Rajesh.Vaidyula@reconnectenergy.com ( +91 7799874036 ) ( +91 7760300499 )
# 18/1 (88), 2nd Floor, Aarya Gowda Bhanu.Tejja@reconnectenergy.com Anurag.Dhyani@reconnectenergy.com
Road, West Mambalam,
Chennai - 600 033.

Renewable Purchase Obligation (RPO): Renewable Regulatory Fund (RRF):

Chetan Singh Adhikari ( +91 9910772666) Vineet Shastry (+91 9972290511)
Chetan.Adhikari@reconnectenergy.com Vineet.Shastry@reconnectenergy.com

www.reconnectenergy.com Page 13