Indian Energy Exchange : IEX Bulletin

DECEMBER 2022, ISSUE 35

IEX BULLETIN

IN THIS ISSUE...

REGULATORY NEWS

MoP issues letter seeking stakeholder comments on notification of Renewable 01 Generation Obligation as per Revised Tariff Policy 2016

MoP floats concept note on Pooling of Tariff

of 25 years Plus Thermal/Gas Generating 01 Stations

HPERC issues draft Renewable Power Purchase Obligation and its Compliance 02 Regulations 2022

Draft KERC Merit Order Despatch and

Optimisation of Power Purchase Cost 03

Regulations 2022

Draft Amendment PSERC Terms and Conditions for intra-State Open Access, 03 Regulations, 2022

State Policies

04

Odisha Renewable Energy Policy 2022

Uttar Pradesh Solar Energy Policy 2022

04

Gujarat Discom Petitions for downward 05 Revision of RPO target

POTENTIAL OF CROSS-BORDER ELECTRICITY TRADE: A SOUTH ASIAN POWER MARKET WILL ENABLE GENUINE PRICE DISCOVERY

Potential of Cross Border Electricity Trade	06
POWER INSIGHTS
Capacity and Demand/Supply Position	07
MARKET NEWS
Market News	08
TRADE INSIGHTS
Day-Ahead Power Market	10
Term-Ahead Power Market	10
Real-Time Electricity Market	12
Green Market	13

REGULATORY NEWS

MoP issues letter seeking stakeholder comments on notification of Renewable Generation Obligation as per Revised Tariff Policy 2016

The Ministry of Power seeks comments on notification of Renewable Generation Obligation as per the Tariff Policy 2016. The key highlights of the of the notification as below:

• Any generating company proposing to establish a coal/lignite based thermal generation station after 1 April 2024 required to establish such RE generating capacity or procure and supply RE/equivalent to such capacity, as may be prescribed by the Central Government
• The capacity of renewable energy to be established/procured/ supplied by new coal/lignite based thermal generating station to be minimum 25% of the capacity of the thermal generating station being established

MoP floats concept note on Pooling of Tariff of 25 years Plus Thermal/Gas Generating Stations

The Ministry of Power has floated a note on Pooling of Tariff of 25 years Plus Thermal/Gas Generating Stations. The key highlights of the note are as below:

• The ministry has proposed creation of common pool of 25 years plus stations (Coal and gas-based plants)
• The willing state/Discom can approach the generating company for requisition of power from the common pool
• Allocation of power from common pool to the willing states/ discoms will be subjected to signing of station wise PPA
• Station wise percentage allocation shall be same as the percentage allocation from the common pool

• The total capacity charge of the pool will be worked out by adding the capacity charges of each station in the pool. The states/discoms will be billed uniform capacity charge in Rs. Cr/MW based on percentage allocation and total capacity charge of power from the common pool
• The states/discoms to be billed a uniform weighted average pooled energy charge computed based on station-wise monthly ECR
• The states/discoms shall stack power requisitioned from each individual station of the common pool into the state merit order list, however power purchase charges of pool will be applicable on state/discom
• The minimum requisition period from the common pool would be 5 years
• Generating company has the option of selling power not allocated from the pool in market including power Exchange
• Generating company is required to share operational gains, if any with beneficiaries as per the provisions of extant CERC Tariff Regulations
• Each generating company to set up dedicated administrative cell and commercial team to ensure that the capacity of the common pool is utilised to a maximum

HPERC issues draft Renewable Power Purchase Obligation and its Compliance Regulations 2022

On 23 November 2022, Himachal Pradesh Electricity Regulatory Commission has issued draft Renewable Power Purchase Obligation and its Compliance Regulations 2022

• Eligible RE sources for fulfillment of RPPO: Energy from renewable energy stations, any other person, platform facilitating exchange of renewable energy, free renewable power (royalty), own renewable source if any; and receipt of renewable energy under banking
• T&D losses borne by obligated entity to be included for computing the quantum of energy procured for each of such sources
• The renewable purchase trajectory is defined in line with MoP notification:

Year

Wind RPO

HPO

Other RPO

Total RPO

Storage RPO

2022-23

0.81%

0.35%

23.44%

24.61%

2023-24

1.60%

0.66%

24.81%

27.08%

1%

2024-25

2.46%

1.08%

26.37%

29.91%

1.50%

2025-26

3.36%

1.48%

28.17%

33.01%

2%

2026-27

4.29%

1.80%

29.86%

35.95%

2.50%

2027-28

5.23%

2.15%

31.43%

38.81%

3%

2028-29

6.16%

2.51%

32.69%

41.36%

3.50%

2029-30

6.94%

2.82%

33.57%

43.33%

4%

2

• Wind Renewable Purchase Obligation: Met from wind power plants commissioned after 31 March 2022. The renewable purchase obligation met from wind energy consumed over & above 7% of total energy consumption, from WPPs commissioned till 31 March 2022.
• Hydro Power Purchase Obligation: Met from large hydro plants (including pump storage power plants & small hydro power plants), COD after 8 March 2022
• Other Renewable Purchase Obligation: Met from any renewable energy power project not mentioned above
• Storage RPO: Percentage of energy consumed from solar/wind with storage

Draft KERC Merit Order Despatch and Optimisation of Power Purchase Cost Regulations 2022

On 16 November 2022, Karnataka Electricity Regulatory Commission issued Merit Order Despatch and Optimisation of Power Purchase Cost Regulations 2022. The key highlights of the Order are as below:

• The Order is applicable to all entities except Must Run Plants which will be covered after they have fulfilled their RPO or HPO targets
• MOD stack to be prepared at the state periphery for ISTS plants based on Variable Cost (VC) submitted by the gencos, change in law, ISTS losses and common AC-UBC charges
• The intra-state generating stations having single part tariff, total tariff to be considered as VC for MOD
• Discoms should not only consider the contracted generation through PPAs at its disposal but also the existing market opportunities for purchasing power during deficit scenarios or optimisation
• If anticipated generation availability is more than anticipated demand, or in case cheaper power is available in power markets, Discom may consider giving zero schedule to some of its contracted sources

Draft Amendment PSERC Terms and Conditions for intra-State Open Access Regulations 2022

On 24 November 2022, Punjab Electricity Regulatory Commission issued Draft Amendment PSERC Terms and Conditions for intra-State Open Access Regulations 2022. The key highlights of the Regulation are as follows:

• Incorporated provisions for Green Energy Open Access (GEOA) in line with MoP Rules
• In case of GEOA consumers, Fixed and Energy Charges shall be 1.25 times of that applicable relevant consumer tariff category
• Quantum of drawl by OA Consumer (except GEOA) from Discom during any time block shall not exceed admissible drawl by OA Consumer from Discom in such time block wherein schedule for OA drawl is maximum.
• The GEOA consumer shall restrict sum of his total drawal from OA and from Discom upto total sanctioned CD. Maximum admissible drawal in any time block during the day for GEOA consumer shall be the difference of sanctioned contract demand and scheduled entitlement
• Banking allowed throughout the year on payment of banking charges
• Drawal of banked energy not allowed during peak seasonal period from 1 June to 30 September and also during peak load hours

3

State Policies

Odisha Renewable Energy Policy 2022

On 30 November 2022, Odisha State Government notified Odisha Renewable Energy Policy, 2022. The key highlights of the policy are as follows

• ED exemption of 50 Paisa/Unit for Captive/OA Consumers on consumption of energy from RE projects set up in Odisha:
• • ED Exemption Period: 15 years from the date of COD
  • ED Exemption Period: 20 years from COD, Project COD is before 31.03.2026
  • ED Exemption with Energy Storage Projects on any technology for 15 years from the date of COD
• 50% CSS Exemption to OA consumers on energy consumed from RE commissioned in Odisha during policy period for 15 years
• STU Charges Exemption of 20 Paisa/Unit to Captive/OA consumers for 15 years. This exemption will be 20 years if Project COD before 31.03.2026 for RE commissioned in Odisha
• Wheeling Charges Exemption of 25% to Captive/OA Consumers for 15 years for RE commissioned in Odisha
• Exemption on ISTS Charges as per MoP Notification
• Monthly Banking allowed for OA & captive consumers within the state, Drawl of Banked Energy won't be allowed during peak hours of Discoms
• Incentives for Hydro Projects: No free power shall be charged for the hydro projects intend to sale/consume entire power within the state. For the sale of power outside the state 12% free power plus 1% LADF will be charged as per National Hydro Power Policy

Policy tenure: From date of publication (01.12.2022) till 31.03.2030 or until a new policy by state govt

Uttar Pradesh Solar Energy Policy 2022

Uttar Pradesh government notified Uttar Pradesh Solar Energy Policy 2022. The key highlights of the policy are as hereunder:

• The policy aims to achieve target of 22 GW Solar Power Projects by FY 2026-2027
• Wheeling/Transmission Charges: 100% exemption on sale of power to UPPCL & 50% exemption on captive use & third party sale for intra state
• STU Charges: 100% exemption on inter-state sale
• Stamp Duty: 100% Exemption
• Electricity Duty: 100% exemption for 10 years

4

Gujarat Discom Petitions for downward Revision of RPO target

The Gujarat Discom submitted petitions for downward revision of RPO target to GERC. The key highlights of the revised RPO target are as follows:

• GUVNL, Torrent Power and GIFT Power Company has filed petition with GERC for revision in RPO targets for FY 2020-21 as per actual RE consumption
• Details of the petition are provided below for your reference and review:

RPO Target

(%)

RPO Target

(MU)

Achievement

(%)

Achievement

(MU)

Shortfall Shortfall

(MUs) (%)

GUVNL

15.65%

14391.11

81.33%

11704.00

2687.11

18.67%

Torrent Dahej

15.65%

73.34

46.71%

34.26

39.08

53.29%

Torrent

Ahmedabad

15.65%

1587.94

81.56%

1295.15

292.79

18.44%

GIFT

15.65%

3.21

6.07%

0.20

3.02

93.93%

• Gujarat Discoms have requested to revise target of RPO for FY 2020-21 as per actual due to supply constraints

5