GC Advisors: Leaders in Energy & Environmental Commodities Agenda WhaL ls 8enewable urchase CbllgaLlon (8C)? WhaL ls 8enewable Lnergy CerLlflcaLe (8LC)? Case sLudy Pow CC Advlsors can help you wlLh 8C? 2 Susta|nab|||ty. Va|ue. De||vered. www.genera|-carbon.com WhaL ls 8enewable urchase CbllgaLlon (8C)? WhaL ls 8enewable Lnergy CerLlflcaLe (8LC)? Case sLudy Pow CC Advlsors can help you wlLh 8C? kC and kLC 3 Susta|nab|||ty. Va|ue. De||vered. www.genera|-carbon.com 8enewable urchase CbllgaLlon (8C) 1he LlecLrlclLy AcL & naLlonal AcLlon lan on CllmaLe Change (nACC) provlde roadmap for |ncreas|ng renewab|e energy |n generat|on 8enewable urchase CbllgaLlon (8C) ls an obllgaLlon mandaLed by CL8C for promoLlon of renewable energy generaLlon 8C fulfllled ls under Lwo caLegorles: non-Solar Solar (0.23 ln mosL sLaLes) The Electricity Act, 2003 The Electricity Act, 2003 4 Susta|nab|||ty. Va|ue. De||vered. www.genera|-carbon.com 1he LlecLrlclLy AcL & naLlonal AcLlon lan on CllmaLe Change (nACC) provlde roadmap for |ncreas|ng renewab|e energy |n generat|on 8enewable urchase CbllgaLlon (8C) ls an obllgaLlon mandaLed by CL8C for promoLlon of renewable energy generaLlon 8C fulfllled ls under Lwo caLegorles: non-Solar Solar (0.23 ln mosL sLaLes) S 10 1S National Action Plan on Climate National Action Plan on Climate Change (NAPCC Change (NAPCC)) RPO Goal RPO Goal 2010 2015 2020 SLaLus of noLlflcaLlon by SLaLes State kC (I 12-13) Not|f|cat|on ref. 1ar|ff (W|nd) AC MaharashLra 8.00 llnal 3.38 -3.07 2.37* Madhya radesh 4.00 llnal 4.33 2.47* 1amll nadu 9.00* CazeLLed 3.S1 2.S4 8a[asLhan 7.10 AmendmenL Lo gazeLLe awalLed S.18- S.44 2.7S* 3 Susta|nab|||ty. Va|ue. De||vered. www.genera|-carbon.com 8a[asLhan 7.10 AmendmenL Lo gazeLLe awalLed S.18- S.44 2.7S* Paryana 2.00 llnal 4.08 2.77 Cu[araL 7.00 CazeLLed excepL CA and C 4.23 2.64 ChhaLLlsgarh 3.73* CazeLLed ~3.13 2.11- 4.66 karnaLaka 7.0-10.0* llnal 3.70 2.60 Andhra radesh 3.00 llnal 4.70 2.00* Crlssa 3.30 CazeLLed 3.31 Who needs 1o Comply WlLh 8Cs ulsLrlbuLlon companles or ulSCCMs Cpen access consumers rocurlng power from power exchanges (lLx/xlL), Lraders, bllaLeral agreemenLs eLc. CapLlve consumers CeneraLlng and consumlng power from capLlve coal/ naLural gas power planLs rlmarlly lndusLrlal users - cemenL, sLeel, chemlcal eLc. 6 Susta|nab|||ty. Va|ue. De||vered. www.genera|-carbon.com ulsLrlbuLlon companles or ulSCCMs Cpen access consumers rocurlng power from power exchanges (lLx/xlL), Lraders, bllaLeral agreemenLs eLc. CapLlve consumers CeneraLlng and consumlng power from capLlve coal/ naLural gas power planLs rlmarlly lndusLrlal users - cemenL, sLeel, chemlcal eLc. 8enewable Lnergy CerLlflcaLes (8LC) 8LC ls a Lradable cerLlflcaLe of proof LhaL one MWh of elecLrlclLy has been ln[ecLed (or deemed Lo be ln[ecLed) Lo grld by an 8L generaLor. 8LC Lypes & rlce band: 7 Susta|nab|||ty. Va|ue. De||vered. www.genera|-carbon.com 8LC ls a Lradable cerLlflcaLe of proof LhaL one MWh of elecLrlclLy has been ln[ecLed (or deemed Lo be ln[ecLed) Lo grld by an 8L generaLor. 8LC Lypes & rlce band: kLC Up to Apr|| 2012 Apr|| 2012 - Apr|| 2017 non Solar 8s 1,300 - 3,900 8s 1,300 - 3,300 Solar 8s 12,000 - 17,000 8s 9,300 - 13,400 non Solar 8LC rlces - Lxchange Lraded prlces 2,300 3,000 3,300 4,000 4,300 I N k ] k L C 8 Susta|nab|||ty. Va|ue. De||vered. www.genera|-carbon.com 0 300 1,000 1,300 2,000 2,300 I N k ] k L C xlL lLx Solar 8LC rlces - Lxchange Lraded prlces 12400 12600 12800 13000 13200 9 Susta|nab|||ty. Va|ue. De||vered. www.genera|-carbon.com 11600 11800 12000 12200 12400 xlL lLx Case Study 10 Susta|nab|||ty. Va|ue. De||vered. www.genera|-carbon.com Case sLudy - ManufacLurlng llrm WlLh 3 unlLs MaharashLra unlL (298 Mu consumpLlon) 131 Mu from capLlve coal 36 Mu wasLe heaL recovery 131 Mu from ulSCCM/Crld 1amll nadu unlL (209 Mu consumpLlon) 120 Mu from capLlve wlnd slLe (pref. wheellng and banklng) 30 Mu from power exchange 39 Mu from grld karnaLaka unlL (140 Mu consumpLlon) 140 Mu from capLlve coal Compllance Lhorough non-Solar 8LCs wlll have an annual cosL ~ ln8 2.62 Cr (aL floor prlce of 1,300) ~ ln8 3.78 Cr (aL cap prlce of 3,300) Compllance Lhorough Solar 8LCs wlll have an annual cosL - ~ln8 73.7 Lakhs (aL floor prlce of 9,300) - ~ln8 1.1 Cr (aL cap prlce of 13,400) 11 Susta|nab|||ty. Va|ue. De||vered. www.genera|-carbon.com MaharashLra unlL (298 Mu consumpLlon) 131 Mu from capLlve coal 36 Mu wasLe heaL recovery 131 Mu from ulSCCM/Crld 1amll nadu unlL (209 Mu consumpLlon) 120 Mu from capLlve wlnd slLe (pref. wheellng and banklng) 30 Mu from power exchange 39 Mu from grld karnaLaka unlL (140 Mu consumpLlon) 140 Mu from capLlve coal Compllance Lhorough non-Solar 8LCs wlll have an annual cosL ~ ln8 2.62 Cr (aL floor prlce of 1,300) ~ ln8 3.78 Cr (aL cap prlce of 3,300) Compllance Lhorough Solar 8LCs wlll have an annual cosL - ~ln8 73.7 Lakhs (aL floor prlce of 9,300) - ~ln8 1.1 Cr (aL cap prlce of 13,400) non-solar 8C Consumpt|on (MU) Cb||gated consumpt|on (MU) kC () kLCs needed Cost of kC (INk 1S00 ]kLC) Cost of kC (INk 3300 ]kLC) MaharashLra 298 131 7.73 10133 1,32,28,730 3,33,03,230 1amll nadu 209 170 8.93 13,213 2,28,22,300 3,02,09,300 karnaLaka 140 140 3.00 7000 1,03,00,000 2,31,00,000 4.83 Cr 10.7 Cr Case SLudy - CosL Cf 8C 12 Susta|nab|||ty. Va|ue. De||vered. www.genera|-carbon.com Solar 8C 4.83 Cr 10.7 Cr Consumpt|on (MU) Cb||gated consumpt|on (MU) kC () kLCs needed Cost of kC (INk 9300 ]kLC) Cost of kC (INk 13400 ]kLC) MaharashLra 298 131 0.23 328 30,43,730 43,88,300 1amll nadu 219 39 0.03 423 39,32,300 36,93,000 69.9 Lacs 1.01 Cr ls WP8 a renewable Lechnology? LlecLrlclLy AcL 2003 mandaLes Lhe SLaLe Commlsslon "to ptomote co-qeoetotloo ooJ qeoetotloo of electtlclty ftom teoewoble sootces of eoetqy" CogeneraLlon has been deflned ln Lhe AcL under Sec. 2(12) as a process whlch slmulLaneously produces Lwo or more forms of useful energy (lncludlng elecLrlclLy)". WasLe heaL recovery pro[ecLs are classlfled as cogeneraLlon (under boLLomlng cycle caLegory) under boLLomlng cycle, co-generaLlon ls 'any faclllLy LhaL uses wasLe lndusLrlal heaL for power generaLlon by supplemenLlng heaL by any fossll fuel'. [8ef: MlnlsLry of ower resoluLlon (no.A- 40/93-lC-l daLed 6-11-1996) on promoLlon of co-generaLlon power planLs] 1yplcal areas of appllcaLlon lnclude cemenL, sLeel, ceramlc, gas and peLro chemlcal lndusLrles. lew sLaLes llke 8a[asLhan's Commlsslon have clearly sLaLed wasLe heaL recovery/ cogeneraLlon pro[ecLs Lo be classlfled as renewable energy pro[ecLs Mn8L has noL approved WP8 as a renewable based Lechnology 13 Susta|nab|||ty. Va|ue. De||vered. www.genera|-carbon.com LlecLrlclLy AcL 2003 mandaLes Lhe SLaLe Commlsslon "to ptomote co-qeoetotloo ooJ qeoetotloo of electtlclty ftom teoewoble sootces of eoetqy" CogeneraLlon has been deflned ln Lhe AcL under Sec. 2(12) as a process whlch slmulLaneously produces Lwo or more forms of useful energy (lncludlng elecLrlclLy)". WasLe heaL recovery pro[ecLs are classlfled as cogeneraLlon (under boLLomlng cycle caLegory) under boLLomlng cycle, co-generaLlon ls 'any faclllLy LhaL uses wasLe lndusLrlal heaL for power generaLlon by supplemenLlng heaL by any fossll fuel'. [8ef: MlnlsLry of ower resoluLlon (no.A- 40/93-lC-l daLed 6-11-1996) on promoLlon of co-generaLlon power planLs] 1yplcal areas of appllcaLlon lnclude cemenL, sLeel, ceramlc, gas and peLro chemlcal lndusLrles. lew sLaLes llke 8a[asLhan's Commlsslon have clearly sLaLed wasLe heaL recovery/ cogeneraLlon pro[ecLs Lo be classlfled as renewable energy pro[ecLs Mn8L has noL approved WP8 as a renewable based Lechnology WP8/ CogeneraLlon: 8C & 8LC varlous sLaLes vlew WP8 & 8C ls dlfferenL manners: CbllgaLlon of 8C even on co-generaLlon faclllLy Lg. Cu[araL LxempLlon from 8C compllance for co-generaLlon planLs Lg. MaharashLra SeparaLlon of obllgaLlon for 8L as well as cogeneraLlon. Lg. Crlssa ermlsslon ln fulflllmenL of 8C Lhrough cogeneraLlon based power as well. Lg. 8a[asLhan, M Madhya radesh amended lLs 8C regulaLlon ln Aprll 2012 Lo allow 8C Lo be fulfllled Lhough fossll-fuel based cogeneraLlon pro[ecLs as well Slnce Mn8L has noL approved WP8 as a renewable Lechnology, a WP8 pro[ecL cannoL be reglsLered under 8LC Mechanlsm even ln Lhose sLaLes where 8C fulflllmenL ls allowed Lhrough WP8/ co-generaLlon pro[ecLs 14 Susta|nab|||ty. Va|ue. De||vered. www.genera|-carbon.com varlous sLaLes vlew WP8 & 8C ls dlfferenL manners: CbllgaLlon of 8C even on co-generaLlon faclllLy Lg. Cu[araL LxempLlon from 8C compllance for co-generaLlon planLs Lg. MaharashLra SeparaLlon of obllgaLlon for 8L as well as cogeneraLlon. Lg. Crlssa ermlsslon ln fulflllmenL of 8C Lhrough cogeneraLlon based power as well. Lg. 8a[asLhan, M Madhya radesh amended lLs 8C regulaLlon ln Aprll 2012 Lo allow 8C Lo be fulfllled Lhough fossll-fuel based cogeneraLlon pro[ecLs as well Slnce Mn8L has noL approved WP8 as a renewable Lechnology, a WP8 pro[ecL cannoL be reglsLered under 8LC Mechanlsm even ln Lhose sLaLes where 8C fulflllmenL ls allowed Lhrough WP8/ co-generaLlon pro[ecLs Are you prepared Lo comply your 8C 1. Are you aware of Lhe 8C compllance regulaLlons 2. Pave you assessed 8C appllcablllLy for your varlous planLs wlLh reference Lo Lhe sLaLe speclflc regulaLlons CapLlve & Cpen Access Source (8L, lossll-fuel, WP8 / co-generaLlon, mlx-fuel, eLc) CapaclLy Crld connecLlvlLy 3. Pave you quanLlfled Lhe 8C ln Lerms of MWh of Lhe renewable power requlred Lach planL speclflc Solar non- Solar 13 Susta|nab|||ty. Va|ue. De||vered. www.genera|-carbon.com 1. Are you aware of Lhe 8C compllance regulaLlons 2. Pave you assessed 8C appllcablllLy for your varlous planLs wlLh reference Lo Lhe sLaLe speclflc regulaLlons CapLlve & Cpen Access Source (8L, lossll-fuel, WP8 / co-generaLlon, mlx-fuel, eLc) CapaclLy Crld connecLlvlLy 3. Pave you quanLlfled Lhe 8C ln Lerms of MWh of Lhe renewable power requlred Lach planL speclflc Solar non- Solar Are you prepared Lo comply your 8C 4. Pave you assessed Lhe flnanclal lmpllcaLlon ln fulfllmenL of 8C Compllance ln Lerms of 8LC purchase (8LC floor & forbearance prlce clarlLy avallable Llll 2017) ln Lerms of developlng capLlve 8L pro[ecL (wherever posslble afLer dolng Lhe assessmenL) 8lomass, wlnd, eLc Solar ln Lerms of Lhlrd parLy Lle-up of 8L power ln Lerms of seLLlng up 8LC based 8L pro[ecLs ln Lerms of mlx of Lhe above posslblllLles non-compllance ln Lerms of enalLy (ln Lerms of 8LC forbearance prlce) 16 Susta|nab|||ty. Va|ue. De||vered. www.genera|-carbon.com 4. Pave you assessed Lhe flnanclal lmpllcaLlon ln fulfllmenL of 8C Compllance ln Lerms of 8LC purchase (8LC floor & forbearance prlce clarlLy avallable Llll 2017) ln Lerms of developlng capLlve 8L pro[ecL (wherever posslble afLer dolng Lhe assessmenL) 8lomass, wlnd, eLc Solar ln Lerms of Lhlrd parLy Lle-up of 8L power ln Lerms of seLLlng up 8LC based 8L pro[ecLs ln Lerms of mlx of Lhe above posslblllLles non-compllance ln Lerms of enalLy (ln Lerms of 8LC forbearance prlce) Are you prepared Lo comply your 8C 3. Pave you developed an 8C compllance SLraLegy aL Lhe organlzaLlon & planL level ShorL Lerm revlous back log CurrenL flnanclal year Long Lerm nexL flve years upLo 2020 & beyond 6. WhaL acLlons have you Laken Lo lmplemenL Lhe 8C compllance sLraLegy & resolve Lhe lmplemenLaLlon hurdles 1lme lag & efforL requlred ln seLLlng up 8L pro[ecL Cpen access sLaLus/ lssues / challenges ln varlous sLaLe vlew regardlng WP8 pro[ecLs no clarlLy on 8LC prlces posL 2017 CLher sLaLe / Lechnology / secLor /organlsaLlon pollcy speclflc lssues 17 Susta|nab|||ty. Va|ue. De||vered. www.genera|-carbon.com 3. Pave you developed an 8C compllance SLraLegy aL Lhe organlzaLlon & planL level ShorL Lerm revlous back log CurrenL flnanclal year Long Lerm nexL flve years upLo 2020 & beyond 6. WhaL acLlons have you Laken Lo lmplemenL Lhe 8C compllance sLraLegy & resolve Lhe lmplemenLaLlon hurdles 1lme lag & efforL requlred ln seLLlng up 8L pro[ecL Cpen access sLaLus/ lssues / challenges ln varlous sLaLe vlew regardlng WP8 pro[ecLs no clarlLy on 8LC prlces posL 2017 CLher sLaLe / Lechnology / secLor /organlsaLlon pollcy speclflc lssues GC Adv|sors 18 Susta|nab|||ty. Va|ue. De||vered. www.genera|-carbon.com CC Advlsors Leadlng player ln energy & envlronmenLal commodlLles ueveloplng bllaLeral power conLracLs and provldlng advlsory servlces for power markeL parLlclpanLs ueveloplng renewable energy, energy efflclency, carbon offseLs and susLalnable developmenL pro[ecLs CperaLlng across lndla, SouLh LasL Asla and Afrlca 19 Susta|nab|||ty. Va|ue. De||vered. www.genera|-carbon.com Leadlng player ln energy & envlronmenLal commodlLles ueveloplng bllaLeral power conLracLs and provldlng advlsory servlces for power markeL parLlclpanLs ueveloplng renewable energy, energy efflclency, carbon offseLs and susLalnable developmenL pro[ecLs CperaLlng across lndla, SouLh LasL Asla and Afrlca Lnergy verLlcal ower sourclng/sales ShorL, Medlum & Long Lerm conLracLs ower Lxchange based advlsory servlces 8egulaLory and sLraLeglc supporL Lo provlde a slngle-wlndow approach Lnergy sLraLegy Assesslng renewable purchase obllgaLlon and cosL effecLlve sourclng plan Lnergy consumpLlon and developlng a managemenL plan 20 Susta|nab|||ty. Va|ue. De||vered. www.genera|-carbon.com ower sourclng/sales ShorL, Medlum & Long Lerm conLracLs ower Lxchange based advlsory servlces 8egulaLory and sLraLeglc supporL Lo provlde a slngle-wlndow approach Lnergy sLraLegy Assesslng renewable purchase obllgaLlon and cosL effecLlve sourclng plan Lnergy consumpLlon and developlng a managemenL plan LnvlronmenLal CommodlLles Carbon offseLs 100 mllllon CL8s & 20 mllllon vL8s Carbon offseL pro[ecLs across - lndla, lndonesla, 1halland, Srl Lanka, nlgerla, LLhlopla & kenya llxed, floaLlng, spoL & exoLlc sLrucLures lncludlng upfronL paymenL LqulLy, uebL and mezzanlne flnanclng based on carbon credlLs 8enewable Lnergy CerLlflcaLes (8LCs) 330 MW of 8LC pro[ecLs across lndla uevelop 8LCs Lhrough advlsory and Lurnkey pro[ecLs Lnergy efflclency cerLlflcaLes (LsCerLs) Lngaglng large cllenLs Lo prepare for A1 lnLegraLe A1 and 8LC obllgaLlons Lo develop hollsLlc compllance LoolklL 21 Susta|nab|||ty. Va|ue. De||vered. www.genera|-carbon.com Carbon offseLs 100 mllllon CL8s & 20 mllllon vL8s Carbon offseL pro[ecLs across - lndla, lndonesla, 1halland, Srl Lanka, nlgerla, LLhlopla & kenya llxed, floaLlng, spoL & exoLlc sLrucLures lncludlng upfronL paymenL LqulLy, uebL and mezzanlne flnanclng based on carbon credlLs 8enewable Lnergy CerLlflcaLes (8LCs) 330 MW of 8LC pro[ecLs across lndla uevelop 8LCs Lhrough advlsory and Lurnkey pro[ecLs Lnergy efflclency cerLlflcaLes (LsCerLs) Lngaglng large cllenLs Lo prepare for A1 lnLegraLe A1 and 8LC obllgaLlons Lo develop hollsLlc compllance LoolklL CC Advlsors: knowledge base Wlnd energy porLfollo of > 2000 MW 1n, karnaLaka, A, MaharashLra, Cu[araL, M and 8a[asLhan naLural gas porLfollo of > 2000 MW Pydro porLfollo of > 600 MW 8lomass porLfollo of > 400 MW SupercrlLlcal based porLfollo of > 10,000 MWs 22 Susta|nab|||ty. Va|ue. De||vered. www.genera|-carbon.com Wlnd energy porLfollo of > 2000 MW 1n, karnaLaka, A, MaharashLra, Cu[araL, M and 8a[asLhan naLural gas porLfollo of > 2000 MW Pydro porLfollo of > 600 MW 8lomass porLfollo of > 400 MW SupercrlLlcal based porLfollo of > 10,000 MWs GC Adv|sors- Deve|op your kC comp||ance p|an 23 Susta|nab|||ty. Va|ue. De||vered. www.genera|-carbon.com CC Advlsors: Assesses how 8C lmpacLs you 8enewable urchase CbllgaLlon (8C) ls Lhe mlnlmum percenLage of renewable energy share ln Lhe area of a ulsLrlbuLlon llcensee Cpen Access Consumer CapLlve consumer 8C wlll lmpacL you lf you are buylng power from Lhe bllaLeral markeL or exchanges lf you have capLlve generaLlon capaclLy aL your planLs LxlsLlng wlnd capaclLy where you are avalllng preferenLlal wheellng and banklng beneflLs wlll noL be ellglble Lo help you fulflll your 8C. 24 Susta|nab|||ty. Va|ue. De||vered. www.genera|-carbon.com 8enewable urchase CbllgaLlon (8C) ls Lhe mlnlmum percenLage of renewable energy share ln Lhe area of a ulsLrlbuLlon llcensee Cpen Access Consumer CapLlve consumer 8C wlll lmpacL you lf you are buylng power from Lhe bllaLeral markeL or exchanges lf you have capLlve generaLlon capaclLy aL your planLs LxlsLlng wlnd capaclLy where you are avalllng preferenLlal wheellng and banklng beneflLs wlll noL be ellglble Lo help you fulflll your 8C. CC Advlsors: CuanLlfy Lhe lmpacL of 8C 8C regulaLlons vary by sLaLe and dlsLrlbuLlon company, undersLand whaL applles Lo your unlLs. Assess LoLal power consumpLlon and ldenLlfy power sourced from: Cpen access (bllaLeral or exchange) CapLlve generaLlon CompuLe any renewable power ln your mlx. CompuLe your 8C obllgaLlon and Lherefore your shorLfall. 23 Susta|nab|||ty. Va|ue. De||vered. www.genera|-carbon.com 8C regulaLlons vary by sLaLe and dlsLrlbuLlon company, undersLand whaL applles Lo your unlLs. Assess LoLal power consumpLlon and ldenLlfy power sourced from: Cpen access (bllaLeral or exchange) CapLlve generaLlon CompuLe any renewable power ln your mlx. CompuLe your 8C obllgaLlon and Lherefore your shorLfall. CC Advlsors: uevelop 8C compllance plan Assess Lhe opLlons avallable Lo you 8uy vs 8ulld 1echnology (Wlnd, Solar, 8lomass, Small Pydro eLc.) SulLablllLy of Lechnology CosL of power from shorLllsLed Lechnology 8egulaLory supporL eLlLlonlng / faclllLaLe ln regulaLory clarlflcaLlon (eg. lncluslon of WP8 / cogeneraLlon pro[ecLs as renewable) 8C compllance cosL Llkellhood of enforcemenL CosL of procuremenL of 8LC llnallze 8C plan 26 Susta|nab|||ty. Va|ue. De||vered. www.genera|-carbon.com Assess Lhe opLlons avallable Lo you 8uy vs 8ulld 1echnology (Wlnd, Solar, 8lomass, Small Pydro eLc.) SulLablllLy of Lechnology CosL of power from shorLllsLed Lechnology 8egulaLory supporL eLlLlonlng / faclllLaLe ln regulaLory clarlflcaLlon (eg. lncluslon of WP8 / cogeneraLlon pro[ecLs as renewable) 8C compllance cosL Llkellhood of enforcemenL CosL of procuremenL of 8LC llnallze 8C plan ConLacL us Mumba| 8ameez Shalkh +91 9920 033 866 rameez.shalkh[general-carbon.com To develop your RPO compliance plan, contact us: Chenna| rlya 8anganayakl +91 9962 326 876 prlya.v[general-carbon.com 27 Susta|nab|||ty. Va|ue. De||vered. www.genera|-carbon.com rameez.shalkh[general-carbon.com New De|h| Arl[lL 8aner[ee +91 9999 621 373 arl[lL.b[general-carbon.com Vadodara Sunny Cangar +91 9322 436 789 sunny.gangar[general-carbon.com prlya.v[general-carbon.com