About

RECs are tradable renewable energy credits issued to eligible renewable energy generators for production of 1MWh of energy from renewable energy sources. Obligated entities having RPO mandate can purchase RECs and claim RPO fulfillment.

Denomination, Categories, Pricing and Market Mechanism:
RECs are issued for every 1000 kWh of renewable energy being produced by an eligible RE generator.

Based on the source of generation, two types of RECs can be issued:
Non-Solar RECs: can be traded with floor price of Rs. 1500/REC and Forbearance Price of Rs.3300/REC.
Solar RECs: can be traded with floor price of Rs. 3500/REC and Forbearance Price of Rs. 5800/REC.
Price Validity: Current prices are valid till FY 2018.
Certificate Validity: RECs once issued, are valid for 730 days from date of issuance.
RECs can be traded ONLY at CERC approved Power Exchanges.
REC trading happens on every last Wednesday of a month.

Statutory

Under Section 66 of the Electricity Act-2003 (EA’03), the Central Electricity Regulatory Commission (CERC) is empowered to promote market development including trading in power in accordance with the guidelines issued under the National Tariff Policy (NTP) which envisages under Para 6.4(2) competition among same type of non-conventional sources. The CERC in coordination with SERCs have evolved national level REC mechanism to promote growth of RE capacity addition.

Our Offerings

RECs offers a unique opportunities for renewable energy producers to unbundle the physical electricity and environmental attributes (aka REC). While the physical energy can be sold at par with conventional electricity in open market, RECs can be sold separately through a market based mechanism. RECs can help RE generators create an additional pool of revenue and hence better IRRs. We are India's largest REC trading company since 2012 and offer services related with entire REC lifecycle to RE generators. Our services includes support in obtaining Accreditation, Registration, Issuance and Trading at power exchanges (IEX & PXIL).

Credentials

Member at IEX & PXIL

India’s largest REC Trading Company

46% Market share in Non-Solar RECs

85% Market Share in Solar RECs

2.5GW of RE under management

Projects present across 16 States

Largest scale of issuance (over 300 projects)

Achievements

REConnect trades the largest volume of RECs in India every month.

Traded the very first REC in India in March 2011, and the very first Solar REC in India in May 2012.

About

Renewable Purchase Obligation (RPO): Renewable Purchase Obligation is the legal mandate issued by state electricity regulatory commission to the consumers of electricity to consume certain % of energy from renewable energy resources.
Applicability: Essentially, every consumer of electricity is mandated under RPO. Broadly, electricity consumers can be categorized in following three ways:

1) Consumers buying power from distribution companies (DISCOMs)

2) Consumers buying power from power suppliers other than DISCOMs; also known as Open Access (OA) consumers

3) Consumers generating power primarily to meet their own consumption requirements; also known as Captive Consumers.

Since the number of consumers buying power from DISCOMs is very large, DISCOMs are mandated to comply with RPO norms instead of consumers. The cost incurred by DISCOMs to meet RPO compliance is passed on the end consumers. The other two category of consumers are mandated to meet RPO compliance for power consumed through either OA or captive generation.

Statutory

Under Section 86(1)(e) read with Section 181 of the Electricity Act-2003 (EA’03), State Electricity Regulatory Commission (SERCs) are empowered to specify certain minimum purchase of electricity from Renewable Energy sources. Exercising power conferred under the EA’03, all SERCs and joint ERCs have notified RPO regulation for their respective states/union territories.

Enforcement mechanism & penalty for non-compliance: RPO can be met either through procurement/consumption of renewable energy or by the way of procuring equivalent number of renewable energy certificates(REC) issued under the REC Mechanism as approved by Central Electricity Regulatory Commission (CERC).

Non-compliance of RPO can lead to penalty upto maximum price of RECs as notified by CERC. Many SERCs have also issued provisions for additional penalty as per Section 142 of EA’03.

Our Offerings

REConnect Energy is a leading provider of RPO liability management services. We provide end-to-end services in the space – from diagnostics, building a strategy for cost-effective compliance, to executing the strategy through our award winning REC Trading service (link to page) and Clickpower.in – India’s first energy management portal. Key services include

1)RPO assessment and mitigation strategy

2)Procurement of Green Power and/or RECs

3)Compliance Reportingdetail

Credentials

Working with large clients to help in RPO compliance. Our portfolio for RPO compliance spans 800 MW.

About

The primary objective behind forecasting and scheduling is that Wind and Solar power are dependent on prevailing weather conditions and are difficult to control and predict. It thus becomes necessary for grid operators to predictably know what is going to be the output from such sources for the next day, so that grid stability is not compromised by substantial under-injection or over-injection.

To address the grid instability issues with respect to infirm power, CERC implemented the RRF Mechanism, which came into force from 15.07.2013. It required Wind and Solar energy generators to forecast & schedule generation on a Day-Ahead basis with provision for revisions. An error within 30% (both –ve & +ve) is tolerated, beyond which a penalty is applicable in link with the UI Mechanism. However due to flaws and objections from many stakeholders, the commercial settlement mechanism was suspended, while Forecasting & Scheduling continued till date for those who came under the ambit of this regulation.

Recently in Aug 2015, CERC finalized the Inter State DSM Regulation for Forecasting & Scheduling for those Wind and Solar projects that are connected to CTU, and selling power outside the state. This is keeping in mind that significant capacity additions will happen over the next few years due to continuous effort by the Central/State governments for promoting RE to achieve the ambitious target 175 GW wind & solar capacity by end of 2022.

Under the guidance of CERC, the Forum of Regulators (FoR) came up with model regulations for forecasting & scheduling at state level. This applies to all Wind and Solar projects connected to state transmission grid. As on today 8 states have come out with their draft regulations, with Karnataka having finalized it.

Simultaneously, some states have taken their own initiatives of doing a state level wind power forecasting and aggregated scheduling, so as to manage wind power evacuation more effectively. We are working with GETCO to provide them with state level wind power forecast on a commercial scale. We are also working with IWTMA for a state level wind power aggregation project for Rajasthan SLDC. On the other hand, TNGEDCO has engaged us for a state level load forecasting.

Statutory

IEGC 2010 envisages plan for improved grid discipline and accountability by mandating Wind & Solar Forecasting & Scheduling, through implementation of the RRF Mechanism by 01.01.2011.

CERC extends RRF implementation by 01.01.2012.

Procedures for implementation of RRF laid down

CERC approves the detailed procedure of RRF and gives direction for its implementation from 15.07.2013.

CERC: Suspension of the Commercial Settlement Mechanism to continue till further notice.

CERC Inter State Forecasting, Scheduling and Imbalance Handling Mechanism 2015: From 1st November 2015.

Forum of Regulators Model Regulation for Intra State DSM Regulation for Forecasting & Scheduling of Wind and Solar: Nov 2015.

After Nov-15, 8 States have drafted their RE DSM regulations based on recommendations of the Model Regulation. The details of all the regulations has been summarized in the table below.

Our Offerings

Forecasting Services

1. Historical Weather/SCADA Data integration.

2. Actual Generation/SCADA Data Integration.

3. Calibrated, non-calibrated forecast & intra-day revisions.

Scheduling, energy accounting, de-pooling, reconciliation and settlement.

1. Forecast data, generator specific availability data, weather data integration.

2. Coordination with SLDC, RE OEMs, RE Generators.

De-pooling & Settlement

1. Intra-State RE DSM Settlement with SLDC.

2. Individual S/S or Generating Units.

Web Application.

1. MIS, data reporting, data checks & balancing, quality control.

2. Generator, SLDC, OEM, RE Farm specific modules.

Additional Servicest

1. Daily report to the Client summarizing the final forecast of previous day vis-à-vis actual generation and implication of UI under RRF mechanism.

2. Weekly report to the Client summarizing the final forecast of week vis-à-vis actual generation and implication of UI under RRF mechanism.

Physical Layer Integration

1. Hardware Layer – meter/weather data integration.

2. Integration of Input Data Layer (wind farm SCADA, Pooling Station SCADA, Meter Data etc. ).

3. Communication Channel with DISCOMs, SLDC, OEMs and RE Generators.

Credentials

We are largest domestic Forecasting & Scheduling service provider in India. Our key credentials are:

Largest provider of F&S services in India – we work with over 12+ GW of wind and solar capacity across India.

Selected by GETCO to provide state-wide wind forecasting and scheduling services, through a global tendering process. Our scope covers all capacity in Gujarat (4,000 MW).

We have also been appointed as the agency for providing aggregated state level wind power forecast in Rajasthan.

We have been appointed as QCA for 1700+ MW capacity, and have provided services as QCA, including De-pooling and settlement, as per the existing and new proposed regulations. We are also providing services to NTPC, NALCO & IOCL, for their wind & solar projects.

We have a technical tie-up with IIT Bombay and have developed our own forecasting models that are best suited for India conditions.

Our investors include a fund backed by MNRE and World Bank as investors.

Awards & Accolades

India’s Largest REC Trading Company (Best REC Trader of the Year 2014 & 2015).

India’s Largest RE Forecasting Company (Best Forecaster of the Year 2015, Wind Facilitator of the Year 2014).

Best Energy Start-up to work for (2015) – by Silicon India.

Best Indian Start-up by GIZ – Germany, Berlin Boot Camp (2016).

GIZ is technical partner to Govt. of India and Power Grid to implement Renewable Energy Management Center(REMC).

Key Milestones

First Company to Implement State Level Wind Power Forecasting in India (for GETCO, Gujarat SLDC).

First Company to bag an award of Contract to carry out state level scheduling of entire Wind Energy in Rajasthan; scope also includes installation of ABT meters, telemetry, RTU and Gateway at SLDC for SCADA Integration.

Core Teams

About

Power market is constantly evolving. Evolving for good, where bulk consumers can now select their choice of supply either through power exchanges, inter-state open-access, intra-state bilateral trade or using available roof-space to generate solar power. But choosing a right option can get messier if a corporate holds industrial facilities in many different states with each facility having a peculiar power requirements. Great variations in state specific power policies can add up the complexity. If you are a corporate like this, REConnect is the perfect partner you can engage with. We offer services starting from budgeting, planning, procurement (PX, Bilateral, RE, Off-Grid) and execution.

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Credentials

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