Presentation by Secy CERC 19032010

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    Overview of the Le al Framework

    New Polic Initiatives

    Renewable Energy Certificate

    Mechanism

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    Tariff regulations of the Regulatory Commissionsto be guided by promotion of generation of

    State Electricity Regulatory Commissions (SERCs)

    required to specify Renewable Purchase

    Obligations (RPOs)

    The National Electricity Policy to aim for optimal

    utilisation of resources including renewablesources

    development of power markets. 4

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    RPOs vary from 1% to 10% in different States

    4% in total electricity generation

    Share of solar ener resentl is ne li ible.

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    CERC has issued comprehensive tariff

    .

    Tariff design to ensure assured return with full

    period.

    s a spec a spensa on, s u cos arhas been allowed for 25 years for solar

    energy.

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    u s e y t e overnment n year

    8 key areas chosen for National Missions

    National Solar Mission is one of these 8

    Missions.

    Suggests RPO at 5% in year 2010, increasing

    1% every year for 10 years.

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    The Constitutional Commission dealingwith devolution of funds has

    recommended a support of US 1 billion

    dollars over the next five years forrewarding the States which facilitate

    addition of renewable based

    markets for renewables.

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    Present installed capacity based on renewables

    This requires to be increased to 65 GW in nextfive years if RPO level is to go up to 10%

    nationally, as suggested in NAPCC.

    But a large part of untapped potential islocated in the States which have already

    achieved high levels of RPO.

    geographical constraints and provide flexibility

    to achieve RPO compliance

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    CAPACITY

    155859.23

    MW

    - -

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    45000

    61000

    5000050000

    60000

    30000

    40000

    5000 700010891

    2519 816 1241 67 60

    10000

    Wind SmallHydro Bioenergy Cogeneration Wastetoenergy

    Solar

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    Source : MNRE as on Oct09

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    State RPO Target RPO Met

    Maharashtra 4% 3%

    Karnataka 10% 11.5%

    Tamil Nadu 10% 11%

    Punjab 1% 0.74%

    Haryana 4% 0%

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    .

    Source : SERCs Orders

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    SHP 2268MW

    SHP 1411MW

    Source : MNRE Annual

    Report 2008-09

    Wind4858MW

    SHP

    1609MW

    SHP 292MW

    SHP 390MW

    SHP

    1333MW

    SHP 213MW

    Wind 10645MWWind

    1019MW

    SHP400MWMW

    SHP63MW

    SHP 213MW

    SHP 196MW

    Wind 4,584MW

    SHP 762MW

    Wind 255MW

    SHP 295MW

    SHP 1609MW

    Wind 11,531MW

    SHP 643Mw

    n

    SHP 552

    MW

    Wind 1171MW

    SHP

    708MW

    Wind 5530MW

    SHP 499MW

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    RE GenerationRE Generation

    Sale at PreferentialSale at Preferential ConventionalConventionalTariffTariff

    Obligated EntitiesObligated EntitiesDistribution Company

    / Third Parry SaleDistribution Company

    / Third Parry SaleObligated EntitiesObligated Entities

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    have an option to sell electricity and RECseparately

    REC will be issued to RE Generators only

    1 MWhr 1 REC

    purchase of RE for purpose of RPO

    compliance.

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    MNRE would be eligible for REC mechanism

    Provision of regulatory charge to enforce.

    RECs are intra-country tradable certificates and

    .

    It is proposed to make RECs eligible for

    .

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    Accreditation would be done at State level byState Agency (SA) to be designated by SERC.

    Registration by Central Agency

    ssuance o y entra gency ase on

    injection certificate.

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    exc ange roug power exc anges

    approved by CERC.

    Certificates will be exchanged within floor

    (minimum) price and forbearance (ceiling) price

    .

    Monitoring Mechanisms : Appointment of

    omp ance u ors y or posmonitoring of the REC Transactions.

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    The framework of REC settled byForum of Regulators (FOR)

    Model SERC Regulations finalized

    CERC Regulations notified

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    Designation of Central Agency

    a ona oa espa c en re as een no e as

    Central Agency.

    apac y u ng an s se s or en ra gency

    & State Agencies.

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    Adoption of REC mechanism in SERC regulations

    We are doing a comprehensive study for impact

    analysis of different scenarios.

    ramewor or a sorp on o n rm powerwithin the home state

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    price

    CERC is preparing a consultation paper on the

    Preparedness of Power Exchanges

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    Website : www.cercind.gov.in

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    Objectives To establish India as global leader in solar energy

    and achieve a scale to drive down costs to levelsrequired to achieve grid parity as soon as possible.

    To create enabling policy framework for deploymentof 20,000 MW of solar power by 2022.

    To ramp up capacity of grid connected solar power to1000 MW by 2013 and additional capacity of 3000MW by 2017.

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    Mission Targets contd..

    To create favourable conditions for developing solarmanufacturing capability in the country.

    To promote programme of off-grid applications,reaching 1000 MW by 2017 and 2000 MW by 2022.

    To romote de lo ment of 20 Million solar li hts b

    2022.

    To achieve solar thermal collector area of 15 Mn sqm.

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    SERCs should specify RPOs immediately

    rocuremen o energy rom renewa es o e

    at preferential tariffs

    publish guidelines for pricing non-firm power

    from renewable sources

    Procurement through competitive route to beadopted to the extent possible.

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    1%

    2% 15%

    12%

    67%3%

    Coal LIGNITE BASED Gas Turbine Gas Turbine(Liquid)

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    ese

    Source: CEA

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    Detailed procedure of Central Agency to include

    - Requirements for registration of eligible

    generator

    -

    - Interface with power exchanges

    - Depository functions- on or ng roug repor s o comp ance

    auditors.

    - Revocation of registration

    Draft detailed procedure being prepared.

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