Indian Energy Exchange

September 2020

1
For Public Use
 Company Snapshot

95% Market Share 6000+ MW average daily trade

6000+ Participants
4100+ Industries 70+ Commercial 50+ Discoms
500+ Conventional Generators 1500+ RE Participants

Transparency Liquidity

Market Share-FY 20 (DAM+TAM)

Competition
Average Daily Trade- FY20(DAM)
Participation-as 30th June 2020
 Auction

IEX Market Segments Continuous

Day-Ahead • Delivery for next day

Market • Price discovery: Closed , Double-sided Auction
since June,08
Intraday Market & Day-Ahead • Intraday: For Delivery within the same day
Contingency • Day Ahead Contingency: Another window for next day
Round the clock since Jul’15 • Gate closure : 3.5 hours
Term-Ahead Contracts since • For delivery up to 11 days
Sep,09 • Daily Contracts, Weekly Contracts
Renewable Energy Certificates • Green Attributes as Certificates
since Feb,11 • Sellers : RE generators not under feed in tariffs
• Buyers: Obligated entities; 1MWh equivalent to 1 REC
Energy Saving Certificates • 1 Escert= 1 Mtoe( Metric Tonne Oil Equivalent)
since 27 Sep’17 • Trading Session on every Tuesday of the Week
• Trading time 1300 hrs to 1500 hrs
Real-Time Market • Delivery within an hour
since 1 Jun’20 • Price discovery: Closed , Double-sided Auction

Green Term Ahead Market • Intraday, DAC (commenced) Daily and Weekly(starting soon)
since 21 Aug ,2020
Installed RE Capacity

Total Installed Capacity Renewable Installed Capacity

RES 88793

Solar, 35,739 Wind Power,

37,999

Hydro 45699
Thermal
231420 W to P, 168
Nuclear 6780 Biopower, Small Hydro
10,146 Power , 4,739

372,692 MW Total Installed Capacity as on 88,793 MW Renewable Installed Capacity as

31st Aug’20 on 31st Aug’20

Source: CEA , MNRE

 Projects registered since inception of 5

REC Mechanism
Year Total Registered till Re-Validated(after Registration Registered as on
31.03.2018 end of Five years) Revoked/Expired 31.03.2018
No. of Capacity No. of Capacity No. of Capacity No. of Capacity
Projects Projects Projects Projects
2010-11 18 166 0 0 0 0 10 70

2011-12 346 2,087 0 0 0 0 177 1,018

2012-13 330 1,271 0 0 10 97 158 711

2013-14 239 811 0 0 13 70 220 669

2014-15 163 642 0 0 3 27 136 486

2015-16 86 311 8 67 35 334 80 263

2016-17 87 555 98 671 199 1,103 86 553

2017-18 38 179 184 752 142 443 38 179

Total 1,307 6,022 290 1,490 402 2,073 905 3,948

DISCOMS

2016-17 2 NA 0 NA 0 NA 2 NA
Schemes to promote RE in the country

Accelerated Generation Based Renewable Purchase

Depreciation Scheme Incentive Scheme obligation

2009 Electricity Act, 2003, National Tariff

Mid 1990s Shifted focus Policy, 2006 and National Action
Focused on from capacity Plan on Climate Change, 2008
capacity addition addition to provided impetus to further RE
generation growth
REC Genesis:
Separating green attribute from electricity
Bundled Green Power
Issues
•Schedulability
Seller (RE power) Buyer (RPO Compliance) •Uncertainty
•Transmission
Loss & Charge
Un-bundled Green Power

Electricity
Solution
Seller (RE power) •No geographic
REC(Green Attributes) barriers

• Reduced
transaction cost

REC(Green Attributes) Buyer (RPO Compliance) •Flexibility in

meeting the RPO
Discoms, Power
Electricity exchanges , Bilateral
Contracts
Compliance Market: Overview of Legal
Framework
2008 : National Action Plan on Climate Change (NAPCC)
• RPO at 5% in year 2010, increasing 1% every year for 10 years.
• Authorities may issue tradable certificates and penalties for shortfall

Jan’10 : CERC issued REC Regulation

• CERC designated National Load Despatch Centre (NLDC) as Central Agency: Notification dated 29.01.2010

June’10 : CERC approved Procedures for Accreditation, Registration & Issuance

Sep’10: First amendment of REC Regulation

July’13: Second amendment to REC Regulation

• Amendment in eligibility, Self consumption and Validity period

Dec’14 : Third Amendment to REC Regulations

•A distribution licensee shall be eligible for issuance of RECs
•Vintage Multiplier ,Validity of RECs for 1095 Days , Revision in price band of Solar RECs

Mar’16 : Fourth Amendment to REC Regulations

• Terms and Conditions for recognition & issuance of Renewable Energy Certificate for Renewable Energy
Generation
9
REC Participants: Sellers/Eligible Entity
Identified Sources for RE
REC Market Participants:
Sellers/Eligible Entity

ELIGIBILITY CRITERIA

PPAs with
Self Sale through: Open
distribution
consumption Access/Bilateral
licensee

No promotional
Banking/ Sale at Mutually PPA at state
PPA at APPC
agreed price regulated tariff
Wheeling

ELIGIBLE ELIGIBLE ELIGIBLE NOT ELIGIBLE

REC Market Participants : Buyers

Obligated Entities
• Distribution Companies
• Open Access Consumers
• Industries consuming Captive Power

Voluntary Entities
• Corporates under CSR
• Individuals
Mechanisms to fulfill compliance
REC (Renewable
Purchase of RE
Feed in Tariff Energy
at market price
Certificates) at PXs

Buy from third

Regulated tariff Non Solar REC
party

Purchase of
electricity from RE
Solar REC
Generator at
Regulated tariff

Penalty for non compliance in the provisions

• If an obligated entity fails to comply with the RPO, it shall also be
liable for penalty as may be decided by the commission under
section 142 of Electricity Act, 2003:
• The Commission may direct the entity to deposit penal charges
equivalent to the forbearance price of REC multiplied by shortfall in
units of RPO
Salient Features of REC Mechanism

Participation Voluntary
REC Denomination 1 REC = 1 MWh
Validity 1095 Days after issuance*
Categories 1. Solar REC 2. Non-Solar REC
Trading Platform Power Exchanges only
Banking/Borrowing Not Allowed
Transfer Type Single transfer only , repeated trade of the same certificate is not
possible
Solar RECs Floor Price: Rs 0/MWh
Forbearance Price: Rs 1000/MWh
Non Solar RECs(After 01.04.2017) Floor Price: Rs 0/MWh
Forbearance Price: Rs 1,000/MWh
Non Solar RECs(before 01.04.2017) Floor Price: Rs 1500/MWh
Forbearance Price: Rs 3,300/MWh
Penalty for Non-compliance ‘Forbearance’ Price (Maximum Price)
Price Guarantee Through ‘Floor’ Price (Minimum Price)

CERC order dated 17th June’20

REC Mechanism

Procedure for ACCREDITION (Through State nodal Agency)

Procedure for REGISTRATION (Through Central Agency NLDC)

Procedure for ISSUANCE (Through Central Agency NLDC)

Procedure for TRADING & REDEMPTION(Through PXs)

Trading at IEX

Trading Day Last Wednesday of every Month

Market Clearing Closed Double sided auction

Trading Time 1300-1500 Hrs

Verification by Central agency for Valid REC by

By 1530 Hrs cleared seller at IEX

By 1600 Hrs Central agency confirms REC

By 1630 Hrs IEX finalizes trade

By 1700 Hrs Buyer & Sellers informed to Central Agency

By 1800 Hrs Invoice raised (proof of REC trade)

Cleared volume : 600 RECs MCP: Rs 2200/REC

BUY SELL
A 100 REC A 100 REC
@ Rs 3300 @ Rs 1500
Price in Rs/REC

3300 B 600 REC B 200 REC

@ Rs 2200 @ Rs 1700
C 200 REC C 300 REC
3300

@ Rs 1700 @ Rs 2000
200 REC sell @
1500

Rs 1700 300 REC sell @ Rs 2000

Rs Rs
Buy@ @

2200
RECSell

600 REC buy @ Rs2200

100 REC

200 REC buy @

100

1700
600

No of REC
REC: Fee & Charges

State Nodal Agency Central Agency

Accreditation Fee & Charges Registration Fee & Charges
Application Rs. 5000 Application Rs. 1000
Processing Fee Processing Fee
Accreditation Rs. 30,000 Registration Rs. 5000
Charges (One Time – Charges (One Time –
for 5 Years) for 5 Years)

Annual Charges Rs. 10,000 Annual Charges Rs. 1000

Re-Validation Fees Rs. 15000 Re-Validation Rs. 5000
(After 5 Years Fees (After 5 Years
Central Agency IEX
Issuance Fee & Charges Redemption Fee & Charges
Fees Per REC Rs. 4.0 Fees Per REC Rs. 20
issued traded
REC - Fee & Charges Impact
Cost Impact of Fee and charges in First Year

Cost Head REC @ 1500 REC @ 2600 REC @ 3300

Assumptions:
• Project of Capacity = 1 MW Accreditation 45,000 45,000 45,000

• Capacity Utilisation Factor = 22% Registration 7,000 7,000 7,000

• No. of Units Generated = 1.927 MU Issuance 7,708 7,708 7,708

• No. of REC Issued = 1927 TOTAL COST 59,708 59,708 59,708
Revenue from
28,90,800 50,10,720 63,59,760
REC
% Cost
2.07% 1.19% 0.94%
Incurred
Paise Impact
Per Unit 3.09 3.09 3.09
(kWh)
Similarly the cost impact (in Paise / Unit) for:
TWO Year THREE Year FOUR Year
2.03 Paise 1.68 Paise 1.5 Paise
Market Snapshot
 REC Inventory Status

No of RECs(in Cr)
Accredited Registered No. of
Capacity Capacity Projects Self
Issued Traded Inventory
(MW) (MW) Registered Retained

Non -Solar 4,314 3,694 637 5.71 4.81 0.22 0.30

Solar 967 925 382 1.18 1.13 0.01 0.03

Total 5,281 4,619 1,019 6.89 5.95 0.24 0.34

As on 31st Aug 2020

Projects under REC Mechanism
As As
on on
10 th
12 th Feb’15
Dec’14
Accredited
AsAs Capacity
on As on
th :95,056
th th jan’15MW
Asonon
th 4
As on :Capacity 11Sept’14
4 January,2014Aug’14
Source wise RE capacity (MW) Registered : 4,785 MW
As on 2nd July 2014
As
5
934

873
3 As on
12th
275
Registration Capacity: 4,773 MW Feb
250 RP : 3975 MW
Accreditation Capacity : 4,989 MW ,2014
AP : 4336 MW
479 420 2653
2718
378

821
Registered Projects
Accreditated Projects

Wind Bio-fuel cogeneration Biomass Small Hydro Solar Others

Data as on 31st Aug’20

Source: REC registry India

 Projects under REC Mechanism
As on 12 th
Feb th 2014
th Dec’14
State-wise RE Accredited As
Capacity As
on7:on10 12
5,112 Feb’15
JulyMW
As on
on
As th
11
on th
Nov’14
: 14-10-14
Aug’14
AsAson
Ason th
on631 th
4AsMarch
st Sept’14nd
on 2 ,2014
October’2013 2014
Capacity (MW) Registered Capacity : 4,838 MW
25 157 213
15
250 1159
15157 165
175
248
25 As on 7th May 2014
1159
175

733
686

127 127
980 1027

561
Registered Projects
616 279

Accreditated Projects
735

Tamil Nadu Maharashtra Uttar Pradesh Gujarat Karnataka Rajasthan

Andhra Pradesh Madhya Pradesh Chhattisgarh Punjab Himanchal Pradesh Others

Data as on 31st Aug’20

Source: REC registry India
Key statistics: REC Market at IEX

Market Share 76%

State 28 States I 8 UTs

Utilities

Generators 1162

Industrial 3284
Consumers
>3 Crore RECs
Cleared Highest: 32,39,142 RECs
Volume (Dec’17)

IEX Data as on 31ST Aug’20

Participation Details at IEX

Registered Participants 4526

Obligated Entity 3528

DISCOMs 46

OA consumers 3087

Captive Consumer 197

Voluntary 37
Eligible Entity (Sellers) 1162

As on 31st Aug 2020

Why REC a better option than
‘buying renewable power’ ?

• Less predictable
• Less controllable
Schedulability • Require better prediction tools over one-day
• Scheduling changes till one-hour before

• More System imbalances

High Overheads • Discoms to spend on more reserves to avoid UI
• More reserves required to balance

Open Access • Payment of Transmission, Wheeling Charges,

Losses and Scheduling Charges is higher than
costly purchase of RECs

RECs are better way to transfer green premium than green energy
N-Solar & Solar REC trade detail
8,00,000 Non-Solar
7,16,929
2,500

7,00,000 6,75,592
2,000
6,00,000 5,47,166
5,00,000 4,74,837
REC Traded

4,16,264 1,500
3,87,715 3,88,821
4,00,000 3,55,657
3,24,029 3,27,688 3,19,265
2,91,588 2,95,010 2,95,601 2,91,932 1,000
3,00,000 2,44,401 2,36,801
2,21,674
1,91,988
2,00,000 1,36,979 1,61,949
500
1,00,000

- -

REC Traded MCP(Rs/REC)

16,00,000
Solar 3,000
13,59,045
14,00,000
2,500
12,00,000
2,000
REC Traded

10,00,000
8,08,324
8,00,000 6,44,151 1,500
6,00,000
3,93,822 1,000
4,00,000 2,88,070
2,16,223
1,30,279 88,272
97,277 1,34,688 1,04,760 500
2,00,000 32,556 62,853 92,093 56,809 59,944
58,919 41,204
36,801
- -

REC Traded MCP(Rs/REC)

 28
Off take Routes & RECs issued against the projects

S no. Route Total registered till Registration Registered as on

Off-take 31.03.2018 Revoked/Expired 31.03.2018 No. of RECs
issued
No.of Capacity No.of Capacity in No.of Capacity
Projects in MW Projects MW Projects in MW

1 OA 368 1,112 72 279 296 833 8,068,723

2 APPC 425 2,055 121 396 304 1,659 16,359,559

3 CGP 355 2,137 161 1,156 194 981 16,602,593

4 APPC/OA 4 57 1 24 3 33 444,418

5 CGP/OA 96 428 1 2 95 427 3,824,715

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Two step Process

• Registration
– Become Member with IEX
– Become Client through any of IEX members
• Start Trading
– Last Wednesday of every Month
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