event- green csr interventions- conference_presentation_iex

7/27/2019 Event- GREEN CSR INTERVENTIONS- Conference_presentation_IEX

1/23

Voluntary REC Market

9 July, IHC, New Delhi

Mr. Rajesh K Mediratta

Director (BD)


2/23

In this presentation

Introduction to REC Market

CSR through Voluntary REC Market

International Scenario


3/23





4/23

Why Renewable Energy Certificate?

Un-bundled Green Power

Seller (RE power)

REC(Green Attributes)Electricity

REC(Green Attributes) Buyer (RPO Compliance)

Electricity

Bundled Green Power

Seller (RE power) Buyer (RPO Compliance)Issues

Schedulability

Uncertainty

Transmission

Loss & Charge

Solution

No geographic

barriers

Reduced

transaction cost

Flexibility in

meeting the RPODiscoms, Power

exchanges , Bilateral

Contracts


5/23

REC Buyers

Obligated Entities

Distribution Companies

Open Access Consumers Industries consuming Captive Power (minimum

capacity for RPO applicability is set as per state specific regulations)

Voluntary Entities

Corporates under CSR

Individuals


6/23

An update on RECs

Source: REC registry India

As on 8th July 2013

Accredited

Capacity

Registered

Capacity

RECs

Issued

RECs

Traded

Balance

Non -

Solar

3859 MW 3494 MW 61,69,531 37,61,412 24,08,119

Solar 163 MW 157 MW 23,865 19,412 4,453


7/23

1 REC is equivalent to1 MWh

Reference : CERC Order in matter of Petition no. 99/2010, dated March 23, 2010

RECs Floor/Forbearance Price

2012-2017 Floor Price Forbearance Price

Solar 9300/REC 13400/REC

Non Solar 1500/REC 3300/REC


8/23

Salient Features of REC Mechanism

Participation Voluntary

REC Denomination 1 MWh

Validity 730 Days after issuance (As per CERC order dated 11thFeb2013)

Categories 1. Solar REC 2. Non-Solar REC

Trading Platform Power Exchanges only

Banking Not Allowed

Borrowing Not Allowed

Transfer Type Single transfer only , repeated trade of the same certificate is

not possible

Penalty for Non-compliance Forbearance Price (Maximum Price)

Price Guarantee Through Floor Price (Minimum Price)


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How to Start

Two step Process Free Registration

Become Client through any of IEX members

Start Trading Last Wednesday of every Month


10/23

Trading at IEX

Trading DayLast Wednesday of every Month

Market Clearing Closed Double sided auction

Trading Time 1300-1500 Hrs

By 1530 HrsVerification by Central agency for Valid REC by

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)


11/23

RegisteredParticipants 1824

Obligated Entity 1344

DISCOMs 25OA consumers 1247

Captive Consumer 52

OA + Captive 19

Discom + Captive 1

Voluntary 13Eligible Entity (Sellers) 467

Highest participation in an

Auction(March13) 1135

REC Participation Details at IEX

Discoms,

722235

Open

AccessUsers,

120139

Captive

Consumers

, 108773

voluntary,

11

Buyer Mix FY'11-12

Discoms,

1523489

Captive

Consumers

, 180385

Open

Access

Consumers

, 268970

Voluntary,

18145

Buyer Mix FY'12-13


12/23

N-Solar REC trade detail

2201 2402

2402

2000

1500

1500

1500

2150

2460

2202

1555

1500

15001500 1500 1500 1500 1500

1500 1500

0

500

1000

1500

2000

2500

3000

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

Apr'12 May'12 Jun'12 Jul'12 Aug'12 Sept'12 Oct'12 Nov'12 Dec'12 Jan'13 Feb'13 Mar'13 April'13 May'13 June'13

MarketClearingPrice(In

RS/REC)

NumberofRECsTra

ded

PXIL- Volume traded IEX-Volume traded Price @ IEX Price @ PXIL


13/23

Solar REC trade detail

12,850

12,90012,500

12,100

12,100

12,500

13,000 13,000

12,00010,990

9,300

12,85012,500 12,680 12,720

12,620

12,500 12,500

13,400

11,490

9,300

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

0

500

1000

1500

2000

2500

3000

3500

April'12 May'12 June'12 July'12 Aug '12 Sep '12 Oct '12 Nov '12 Dec '12 Jan'13 Feb'13 Mar'13 Apr'13 May'13 June'13

Ma

rketClearingPrice(in

Rs/REC)

NumberofRECsTra

ded

IEX-S REC PXIL-S REC Price @ PXIL Price @ IEX


14/23





15/23

Why RECs to meet Sustainability Development

RECs have several advantages as aninstrument to meet SD objectives:

RECs are measurable and it is easy to verify

which specific project they are coming fromMeasurable

RECs are issued by government appointedagency, and the process and eligibility

criterion are objective and transparent

Transparent

RECs are de-linked from physical power,which makes the consumption of greenpower easier to manage

Effortless


16/23

Participants in Voluntary Markets

Corporates (CPSUs & Private Sector)

NGOs

Individuals


17/23

Corporate Social Responsibility or Sustainable

Development Goals

Profit making CPSEs are required to spend upto 0.5% oftheir profit after tax (PAT) on Sustainable Development

The Department of Public Enterprises (DPE) came out with anamendment to Sustainable Development (SD) Guidelines inDecember 2011:

CPSEs can purchase RECs on voluntary basis as a part of theirEnergy Management


18/23

Voluntary Buyers

Meet your CSR obligation

Green Building/office/organisation

Buy RECs equivalent to energy consumption foran event

Make your home green with RECs equivalent to

your electricity consumption

Off set carbon footprints at individual level


19/23





20/23

RECs are popular way to go green internationally

Company Name DetailsIntel Purchased 2.5 b kwh of RE and REC

88% of total electricity consumed

Citi Purchased over 56m kwh of RECs in 2008

HSBC Purchased 276m kwh of RECs in USOver 96% of North America electricity offset by RECs

purchase

Yahoo! Purchased 1.6m kwh of RE & RECs in 2010

Uses 28% of RE power in its US operation

Apple 11.5 m kwh of RE and REC purchased

98% of total US consumption


21/23

Globally Green Active Company
http://www.google.co.in/imgres?imgurl=http://stockwatch.in/files/hp-logo.jpg&imgrefurl=http://www.stockwatch.in/stock-news/hp?page=1&h=386&w=475&sz=45&tbnid=5UrKyzNj7QXw5M:&tbnh=105&tbnw=129&prev=/search?q=HP+logo&tbm=isch&tbo=u&zoom=1&q=HP+logo&hl=en&usg=__VJ9jdWeZ0M8Pz1hiRmGHLK1gGH4=&sa=X&ei=IehhT7atJISrrAeky62KCA&ved=0CBkQ9QEwAwhttp://www.google.co.in/imgres?imgurl=http://bostinno.com/wp-content/uploads/2010/07/ibm_logo.jpg&imgrefurl=http://bostinno.com/2010/08/13/ibm-gobbles-up-unica-for-480m-aims-to-boost-its-business-with-marketing-software/&h=399&w=757&sz=82&tbnid=0waQiMlVpKQvfM:&tbnh=75&tbnw=142&prev=/search?q=IBM+logo&tbm=isch&tbo=u&zoom=1&q=IBM+logo&hl=en&usg=__I0ohuPOwmx3VuSRITenoWIzbAxw=&sa=X&ei=_udhT-m0HceGrAf1u_zgBw&ved=0CCkQ9QEwBQhttp://www.google.co.in/imgres?imgurl=http://upload.wikimedia.org/wikipedia/commons/thumb/4/48/Dell_Logo.svg/501px-Dell_Logo.svg.png&imgrefurl=http://en.wikipedia.org/wiki/File:Dell_Logo.svg&h=495&w=501&sz=23&tbnid=aAgo5nR6Tjh7rM:&tbnh=128&tbnw=130&prev=/search?q=Dell+logo&tbm=isch&tbo=u&zoom=1&q=Dell+logo&hl=en&usg=__mMNYvp7FkO5WhNEgaFSi23WDraA=&sa=X&ei=2udhT9yDIYOurAesoonhBw&ved=0CBUQ9QEwAQhttp://www.google.co.in/imgres?imgurl=http://www.logostage.com/logos/ford.jpg&imgrefurl=http://www.logostage.com/logo/ford/&h=750&w=1500&sz=70&tbnid=Bi3asbI-HIBzIM:&tbnh=75&tbnw=150&prev=/search?q=Ford+logo&tbm=isch&tbo=u&zoom=1&q=Ford+logo&hl=en&usg=__MYREb6GR-dU2Kww6k1PHDSYr7fQ=&sa=X&ei=q-dhT9XuEY_JrQfgqrj-Bw&ved=0CBMQ9QEwAAhttp://www.google.co.in/imgres?imgurl=http://www.diszine.com/wp-content/uploads/2010/12/Walt-Disney-Company-Logo.jpg&imgrefurl=http://www.diszine.com/content/disney-board-approves-dividend-increase-of-more-than-fourteen-percent/walt-disney-company-logo&usg=__IA4d_NQt7eWKJ52b7WtF_gEr1wg=&h=315&w=525&sz=113&hl=en&start=4&zoom=1&tbnid=kuOKYxUA-4v3CM:&tbnh=79&tbnw=132&ei=WedhT-bYDIi0rAeYw_X-Bw&prev=/images?q=Walt+Disney+logo&hl=en&tbm=isch&itbs=1


22/23

Green Companies List

US Companies

Company Green Score

IBM 82.5

Dell 75

Accenture 74

Cognizent 71

Intel 71

Ford 70

Citigroup 69.5

American

Express 69.4

Microsoft 67.6Pfizer 66.2

Wal Mart 64.4

Apple 64

Google 63.8

Global Ranking*

Company Country Green Score

Munich Re Germany 83.6

IBM US 82.3

National Australia Bank Australia 82.2

Bradesco Brazil 82.2

ANZ Banking Group Australia 80.9

TCS India 79.1

Infosys India 77.3

Philips Netherland 77.2

Swiss Com Switzerland 77

Societe Generale France 76.6

* Source Newsweek 2011 Green Ranking
http://www.google.co.in/imgres?imgurl=http://www.gujaratvibrant.com/wp-content/uploads/2010/04/go_green.gif&imgrefurl=http://www.gujaratvibrant.com/80-go-green-gujarat-tells-industries.html&usg=__AdhKdy3ShrRtlD-CAj2ElGlBqFo=&h=349&w=300&sz=14&hl=en&start=6&zoom=1&um=1&itbs=1&tbnid=qVOq05BNhB4W0M:&tbnh=120&tbnw=103&prev=/search?q=go+green&um=1&hl=en&biw=1419&bih=751&tbm=isch&ei=VQwDTvGcIMrnrAfrj5HiDQhttp://www.google.co.in/imgres?imgurl=http://www.globe-net.com/media/161928/go_green_bulb.jpg&imgrefurl=http://www.globe-net.com/articles/2010/september/14/how-to-go-green-without-buying-a-toyota-prius.aspx?sub=16&usg=__oJRHwVQHmjDVsHtPOxygwpfuw4U=&h=448&w=390&sz=21&hl=en&start=4&zoom=1&um=1&itbs=1&tbnid=xEbt0DfSpFO7FM:&tbnh=127&tbnw=111&prev=/search?q=go+green&um=1&hl=en&biw=1419&bih=751&tbm=isch&ei=VQwDTvGcIMrnrAfrj5HiDQhttp://www.google.co.in/imgres?imgurl=http://img1.tradeget.com/unnathisuppliers/KPJ73Y5T1wind_power_generator.jpg&imgrefurl=http://unnathisupplier.tradeget.com/F15694/wind_power_generator.html&usg=__teeINEIp24YgnWQIjTd-eYqP1sQ=&h=400&w=400&sz=27&hl=en&start=7&zoom=1&um=1&itbs=1&tbnid=pe62bzmv0Dj7FM:&tbnh=124&tbnw=124&prev=/search?q=wind+power+turbine&um=1&hl=en&biw=1419&bih=751&tbm=isch&ei=9JoBTujzIsrjrAfljKWGAwhttp://www.google.co.in/imgres?imgurl=http://www.topnews.in/files/HydroPower.jpg&imgrefurl=http://www.topnews.in/deforestation-kullu-allain-duhangan-hydropower-project-240512&usg=__koHE8jho_DtBsTzuJU1i01VXPiI=&h=140&w=146&sz=26&hl=en&start=18&zoom=1&um=1&itbs=1&tbnid=nGh3u5ysZ-wRkM:&tbnh=91&tbnw=95&prev=/search?q=hydro+power&um=1&hl=en&biw=1419&bih=751&tbm=isch&ei=u5oBTvDEAYnsrAeu0LWGAwhttp://www.google.co.in/imgres?imgurl=http://img.ehowcdn.com/article-page-main/ehow/images/a04/jp/nn/green-renewable-energy-800x800.jpg&imgrefurl=http://www.ehow.com/how_4843255_green-renewable-energy.html&usg=__UWNWioZqPCQI28ZDMxaQjsVjWRI=&h=220&w=225&sz=8&hl=en&start=7&zoom=1&um=1&itbs=1&tbnid=kWB93vDGgJud4M:&tbnh=106&tbnw=108&prev=/search?q=renewable+energy+go+green&um=1&hl=en&biw=1419&bih=751&tbm=isch&ei=iZoBTrOdGsvRrQfY7tGGAw


23/23

www.iexindia.com
http://www.google.co.in/imgres?imgurl=http://www.gujaratvibrant.com/wp-content/uploads/2010/04/go_green.gif&imgrefurl=http://www.gujaratvibrant.com/80-go-green-gujarat-tells-industries.html&usg=__AdhKdy3ShrRtlD-CAj2ElGlBqFo=&h=349&w=300&sz=14&hl=en&start=6&zoom=1&um=1&itbs=1&tbnid=qVOq05BNhB4W0M:&tbnh=120&tbnw=103&prev=/search?q=go+green&um=1&hl=en&biw=1419&bih=751&tbm=isch&ei=VQwDTvGcIMrnrAfrj5HiDQhttp://www.google.co.in/imgres?imgurl=http://www.globe-net.com/media/161928/go_green_bulb.jpg&imgrefurl=http://www.globe-net.com/articles/2010/september/14/how-to-go-green-without-buying-a-toyota-prius.aspx?sub=16&usg=__oJRHwVQHmjDVsHtPOxygwpfuw4U=&h=448&w=390&sz=21&hl=en&start=4&zoom=1&um=1&itbs=1&tbnid=xEbt0DfSpFO7FM:&tbnh=127&tbnw=111&prev=/search?q=go+green&um=1&hl=en&biw=1419&bih=751&tbm=isch&ei=VQwDTvGcIMrnrAfrj5HiDQhttp://www.google.co.in/imgres?imgurl=http://img1.tradeget.com/unnathisuppliers/KPJ73Y5T1wind_power_generator.jpg&imgrefurl=http://unnathisupplier.tradeget.com/F15694/wind_power_generator.html&usg=__teeINEIp24YgnWQIjTd-eYqP1sQ=&h=400&w=400&sz=27&hl=en&start=7&zoom=1&um=1&itbs=1&tbnid=pe62bzmv0Dj7FM:&tbnh=124&tbnw=124&prev=/search?q=wind+power+turbine&um=1&hl=en&biw=1419&bih=751&tbm=isch&ei=9JoBTujzIsrjrAfljKWGAwhttp://www.google.co.in/imgres?imgurl=http://www.topnews.in/files/HydroPower.jpg&imgrefurl=http://www.topnews.in/deforestation-kullu-allain-duhangan-hydropower-project-240512&usg=__koHE8jho_DtBsTzuJU1i01VXPiI=&h=140&w=146&sz=26&hl=en&start=18&zoom=1&um=1&itbs=1&tbnid=nGh3u5ysZ-wRkM:&tbnh=91&tbnw=95&prev=/search?q=hydro+power&um=1&hl=en&biw=1419&bih=751&tbm=isch&ei=u5oBTvDEAYnsrAeu0LWGAwhttp://www.google.co.in/imgres?imgurl=http://img.ehowcdn.com/article-page-main/ehow/images/a04/jp/nn/green-renewable-energy-800x800.jpg&imgrefurl=http://www.ehow.com/how_4843255_green-renewable-energy.html&usg=__UWNWioZqPCQI28ZDMxaQjsVjWRI=&h=220&w=225&sz=8&hl=en&start=7&zoom=1&um=1&itbs=1&tbnid=kWB93vDGgJud4M:&tbnh=106&tbnw=108&prev=/search?q=renewable+energy+go+green&um=1&hl=en&biw=1419&bih=751&tbm=isch&ei=iZoBTrOdGsvRrQfY7tGGAw

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