rsm gc advisory re power contracting & trading - ver3
DESCRIPTION
Renewable Energy (RE) Project Developer Investors seeking investment in Renewable Energy projects Industrial / commercial energy users – using renewable energy or contemplating using RETRANSCRIPT
Renewable Energy (RE) Power Contracting & Trading
www.general-carbon.com
Target Clients
Renewable Energy (RE) Project Developer
Investors seeking investment in Renewable Energy projects
Industrial / commercial energy users – using renewable energy or contemplating using RE
2
www.general-carbon.com
Benefits of RE power procurement
Carbon neutral power sourcing
Higher grounds on sustainability roadmap
RPO compliance with additional outflow
Single vendor and minimal hassles
Cost Savings
3
www.general-carbon.com
Key Challenges in RE power contracting (sale/purchase) For RE generators – formulating appropriate strategy for power off-take arrangements
Multiple models of power sale to choose from - preferential tariff, REC based, captive, group captive, third party sale
Identifying buyer/seller for captive or third party sale; Negotiating power purchase agreements
Obtaining approvals (eg. Open Access), Obtaining billing and settlement support.
4
www.general-carbon.com
• Intent to sell / purchase
• Qty, period & price
LOI
• Matching buyer/ seller
• High level terms
Term Sheet• Power
Purchase , Share holding, etc.
Agreement
• ABT meter, etc.
Set-up• Open access• Regulatory
filings
Approvals
Typical Process for RE Power tie-up
5
Billing & Payment
Power Generation
Open access charges
Credit Adjustment
Monthly Process
www.general-carbon.com
Our Services
6
www.general-carbon.com
Overview of Service
7
•For Project Developers
•For RE power investors
Renewable Energy Project Assessment
•For Project Developers
•For RE power users
Renewable Energy Contracting
•For Project Developers
•For RE power users
Power Resources and Cost Optimization
www.general-carbon.com
What We Do
Renewable Energy Project Assessment♦ Provide project development services for wind, biomass, bio-gasification, waste-to-energy and solar projects including
site identification, assessment, fuel/resource assessment, regulatory approvals, contract management, project management and supervision
♦ Advise investors to conduct due diligence in acquisition of the operating renewable energy assets Renewable Energy Contracting
♦ Client identification for third party/captive power sale from wind, hydro, biomass and solar projects♦ Open access approvals, billing & settlement support
Power Resources & Cost Optimization♦ Advise clients on WHEN to buy / sell WHICH power at WHAT price. ♦ Analyze the energy mix and viable alternatives with respect to cost & convenience of implementation♦ Facilitate large consumers to procure renewable power to meet their sustainability / RPO / cost optimization needs. ♦ Facilitate in executing sale / purchase of power (renewable / non renewable) through following modes:
Power Exchange Third Party (Power Purchase Agreement (PPA), Open Access approval, etc) Group Captive (Share-holding agreement (SHA), PPA, Energy Wheeling Agreement (EWA), etc
♦ Power transaction support (conventional or green power from exchange, bilateral or captive mode)8
www.general-carbon.com
Renewable Energy Project Assessment
Project evaluation and feasibility assessment for renewable energy projects Due diligence and financial analysis of renewable energy projects including
acquisition support Performance evaluation of projects - As-is analysis, review of O&M plan and
ROI for upgrades Software platform for wind turbine portfolio management solution
♦ Data integration, O&M Process Mgmt, Performance improvement, mobile integration
Regulatory advisory and policy implementation
9
www.general-carbon.com
Renewable Energy Contracting
Policy & Regulatory analysis for renewable energy power sale in various states of India
♦ Expected per unit realization, open access charges, major consumer categories, challenges, possible & recommended contracting structures, etc
Client identification for third party/captive power sale from wind, hydro, biomass and solar projects
Advising project developers/ investors on appropriate share structuring, SPV creation and tax impacts for group captive sale
Contractual negotiations and execution of major agreements & statutory documents♦ Power Purchase Agreement, Share Holding Agreement, Energy Wheeling Agreement,
Open Access NOC, etc Support in injected power credit allotment, adjustment in electricity bills, and
settlement as per contract10
www.general-carbon.com
Developing Power Resources & Cost Optimization Plan
Power resource options♦ Local DisCom, Captive Power Plants, Power Exchanges, Third Party Contracting, Group Captive, etc
Each source of power has some associated fixed and variable cost
Selection depends upon the State in which plant is located♦ The prevalent pricing on the exchanges for the region during various time slots♦ Power situation (energy charges, power cuts, grid availability, RE policy, etc)♦ Open access policy & Implementation challenges♦ Connectivity with the Discom ( Contract Demand, Connection voltage, type of feeder line, metering, etc)
Strategy will determine when to buy or sell which power at what price11
Source Fixed Cost Variable Cost
DisCom Demand Charges Energy Charges, FAC, ToD charges, etc.
Power Exchange Membership fees, ABT meter, etc Market clearing price, brokerage, etc
3rd Party Sale ABT meter, RTU, BG, etc Agreed tariff, wheeling charges & losses, CSS, other open access charges, etc
Group Captive Equity investment, ABT meter, etc Agreed tariff, wheeling charges & losses, No CSS
www.general-carbon.com
Developing Power Resources & Cost Optimization Plan… Cont
We undertake following 3 steps to develop & deploy Power Resources & Cost Optimization Plan : Analyze Electrical Energy Mix
♦ Current & projected electrical energy mix: Distribution company, Open Access, Exchange, Bilateral, Captive sources
♦ Compute the per unit cost of power through each source separately Analyze alternatives
♦ Alternative options for sale & purchase of power Alternate use of current mix (e.g. power sale from CPP & replacement with cheaper options, etc.) Additional options (e.g. power purchase from exchange, third party or group captive, etc.)
♦ Transaction cost, Per unit landed price in each case of power sale or purchase♦ Study of various electrical energy mix scenarios with regards to their implementation♦ Finalize the power resource optimization plan
Power Marketing & Sourcing♦ Facilitation in sale / purchase of power through exchanges, 3rd party bilateral (renewable / non renewable), group
captive, etc♦ Execution of PPAs, EWAs, SHAs, open access approvals, setting-off of open access units in the bill, etc.
12
www.general-carbon.com
Case Study
13
ParticularsOld Structure New Structure
MW Cost INR/u MUTotal Cost (INR ’Mn) MU
Total Cost(INR ’Mn) Savings
Discom 16 5.75 140 805.9 105 604.4
1.67%Captive 30 3.85 263 1011.8 263 1011.8TPS - Wind w/o RPO 0 5.25 0 0.0 22 115.0GCS - Wind with RPO 0 5.75 0 0.0 13 75.6RPO (REC procurement) 1.5 13 19.7 0 0.0 403 1837.4 403 1806.8 30.7
HT Industrial Consumer - 46MW requirement (~394 Million Units)
Old structure: Discom (140MU) & Captive - Coal & WHR (263MU)
Change: Replacing 25% of Discom power by wind power under TPS & Group Cap – wind
New Structure: Discom (105MU), Captive - Coal & WHR (263MU), Wind (35MU)
www.general-carbon.com
Advantages RSM GC
Thought leaders♦ Participated in regulation formulation (states as well as central)♦ Invited to speak at major power related trade fairs, seminars, conferences & workshops
Helped in capacity building exercise in major states for open access Advised IPPs on power sale strategy at the stage of finance raising to
operations Advised few of the largest industrial groups on power procurement strategies for
their facilities across states Advised one of the largest business groups on achieving carbon neutrality
through RE procurement options Reduced power procurement cost of few large commercial establishments by
over 25%14
www.general-carbon.com
Experience
Experience with over 8000 MWs power project portfolio♦ Wind projects of over 2000 MWs across India♦ Over 350 MW of REC projects across India
Client list includes some of the largest IPPs & CPPs in India♦ Tata Power, Lanco, GVK, GMR, Renew, GreenKo, JSW, Mahindra, etc.
Broad spectrum of technological expertise♦ Wind, solar, hydro, biomass, Waste to Energy, etc.
Executed innovative contract structures♦ Some of first third party sale contracts for renewable energy project
Experience in project finance and project evaluation for renewable energy projects
15
www.general-carbon.com 16
Select Clients
www.general-carbon.com
Contact Us
17
Mumbai – Mr. Rameez Shaikh
5th floor, Great Social Building60, Sir Pherozeshah Mehta Road, FortMumbai 400001
Phone: +91 22 2266 3201/3301 Mobile: +91 99200 33866 Email: [email protected]
Chennai – Ms. Priya Ranganayaki
E-3, 4th Floor, "RM Towers“108 Chamiers Road, NandanamChennai 600018
Phone: +91 44 42167331 Mobile: +91 99625 26876Email: [email protected]
www.general-carbon.com 18
Advantage RSM GC Advisory• Leadership team with expertise and extensive consulting experience, more than 500
sustainability service offerings; developed over 250 emission reduction projects with a potential of >400 million CERs; assisted and advised over 8000 MW power project portfolio & over 2000 MW wind power projects, over 350 MW REC projects; delivered value of over US$ 500 Million to businesses in India
Leadership Team
• Active participation in policy formulation and thought leadershipPolicy
Formulation
• Strong track record of project delivery, combined with risk mitigation and structuring capabilitiesStrong Track
Record
• Working experience in diverse geographies & sectors, and a potent combination of technical & financial resources
Diverse Work
Experience