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Escerts trading 13th session brief

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Facts of ESCerts Trading 13th phase:
ESCerts market sees highest ever trade of 4.49 lakh ESCerts on 19th December, 2017. In total, there was a demand for 7,30,885 ESCerts, an increase of nearly 47.5% from last week. This demand was against a total supply of 8,31,224 ESCerts (increase of 91.6% since last week).
Trading volumes have increased in recent weeks as the compliance period is coming to a close.
Total DCs registered with the registry till date is 336 and total DCs whose application is under process for approval from registry is 38.

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Escerts trading 13th session brief

  1. 1. ESCert Trading Analysis Bicon Consultants Page 1 of 5 ESCerts Trading - Thirteenth Session Dated 03rd October, 2017 Background: National Mission on Enhanced Energy Efficiency (NMEEE) is one of the eight missions which form India’s National Action Plan on Climate Change (NAPCC), formulated in the year 2008.The objective of this mission is to unlock energy efficiency opportunities through market based approach. Perform, Achieve and Trade (PAT) is one of the components of NMEEE. This is a regulatory instrument to reduce specific energy consumption in energy intensive industries, with an associated market based mechanism to enhance the cost effectiveness through certification of excess energy saving which can be traded with those plants who were under achievers of their targets. Facts of ESCerts Trading 13th phase: ESCerts market sees highest ever trade of 4.49 lakh ESCerts on 19th December, 2017. Results for 13th Trading Phase of ESCerts Particulars INR Sell Bids (ESCerts) 8,31,224 Purchase Bids (ESCerts) 7,30,885 Trade Volume (ESCerts) 4,49,818 Price Discovered (Rs/ ESCerts) 1000 No of Participants 112 In total, there was a demand for 7,30,885 ESCerts, an increase of nearly 47.5% from last week. This demand was against a total supply of 8,31,224 ESCerts (increase of 91.6% since last week). Trading volumes have increased in recent weeks as the compliance period is coming to a close. Total DCs registered with the registry till date is 336 and total DCs whose application is under process for approval from registry is 38.
  2. 2. ESCert Trading Analysis Bicon Consultants Page 2 of 5 Figure 1: Comparison of ESCert trading over the different sessions In the 13th session of ESCerts trading, the Purchase Bid, Cleared Volume, and Sell Bid have seen a tremendous growth compared to the earlier sessions. Figure 2: Market value of ESCerts Trading Market In the 13th session total transaction amount is of INR 44.98 Cr., approximately double (cumulative transactional amount for the previous twelve session amounts to INR 24.84 Cr.) 0 100000 200000 300000 400000 500000 600000 700000 800000 900000 0 100000 200000 300000 400000 500000 600000 700000 800000 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th SellBidofESCertsTrading PurchaseBid&ClearedVolumeofESCerts Trading Trading Sessions Comparison of ESCerts Trading for Different Sessions Cleared Volume (ESCerts) Sell Bid (ESCerts) Purchase Bid (ESCerts) 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 0 200 400 600 800 1000 1200 1400 MarketValue(inLakh) ESCertsPrice(INR/ESCerts) Trading Sessions Price of ESCerts & Market Value Market Value (in Lakh) Price Discovered (INR/ ESCerts)
  3. 3. ESCert Trading Analysis Bicon Consultants Page 3 of 5 Figure 3: Purchase Bid share of ESCerts Sell Bid of the ESCerts increased approximately by 91% comparing with 12th session and it is the highest bided quantity among all the session. Figure 4: Sell Bid share of ESCerts Total cleared Sell Bid seen a jump from 28.4% (in the 12th session) to 54.2% (in the 13th session) out of the total ESCerts bided for sell in the respective session. 61.5% 38.5% Purchase Bid Share of ESCerts for 13th Session Above MCP Below MCP 54.1% 45.9% Sell Bid Share of ESCerts for 13th Session Below MCP Above MCP
  4. 4. ESCert Trading Analysis Bicon Consultants Page 4 of 5 Figure 5: Comparison between percentages of Cleared Purchase & Sell Bids of ESCerts In the ESCerts trading market, always a wide gap between Purchase Bid and Sell Bid exists but for last two sessions the gap is reduced. The cleared volume ESCerts has seen an exponential growth over the last few trading sessions. There is an approximately 264% increase of cleared volume in comparison to 12th session. We anticipate this trend to continue for the last session and expect the market to come out with exciting figures. In total 8.65 Lakh ESCerts have been purchased till date, compared to an total demand of about 14.23 Lakh ESCerts. Figure 6: Cleared Volume of ESCerts for all session 0 10 20 30 40 50 60 0 20 40 60 80 100 120 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th11th12th13th SellBidShareofCleared ESCertsVolume PurchaseBidShareofCleared ESCertsVolume Trading Sessions Comparison between percentage of Cleared Purchase & Sell Bid of ESCerts % of Cleared Purchase Bid in Comparison to total Purchase Bid 0 50000 100000 150000 200000 250000 300000 350000 400000 450000 500000 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th11th12th13th ClearedVolumeofESCerts Trading Session Cleared Volume of ESCerts for all Session Cleared Volume (ESCerts)
  5. 5. ESCert Trading Analysis Bicon Consultants Page 5 of 5 Facts of ESCerts Price and ESCerts Statistics: No of Participants for ESCerts Trading were 112 for last session which is highest among the all session (previous session it was 85). As the compliance period is about to conclude the no. of participants has seen a linear increase since 8th session. Lowest traded price (i.e. INR 200/ESCerts) was discovered in the 8th and 9th session. Thereafter the price has increased steadily upto INR 1000/ESCerts (For 12th session it was INR 525/ESCerts) Figure 7: Statistics of ESCerts Price & Participants The price of the Energy Saving Certificates is expected to remain high as the end of the compliance period is coming. The paradigm of the ESCerts market is shifting from the seller centric to the buyer centric. Recently the Central Government via S.O. 3600(E), dated 15th Nov, 2017 has further widened the PAT scheme by including Petrochemical units having Gas Crackers or Naphtha Crackers or both and having energy consumption of 1,00,000 metric tonne of oil equivalent per year and above as Designated Consumer. This makes the total no. of sectors under the ambit of PAT Scheme counts to 12. Kindly refer to our coverage on inclusion of petrochemical sector as a DC. Bureau of Energy Efficiency in consultation with different stake holders have identified new units for deepening of the PAT Scheme. BICON Consultants is involved in the Baseline Data Collection and Verification Audit for PAT Scheme of the new identified industries units. Refer our previous articles on ESCert Trading Sessions and our Advisory Disclaimer: The analysis is based on certain assumptions. This reported is intended for prescribed users. Bicon will not be liable for use of the analysis and decisions based on this analysis. 0 20 40 60 80 100 120 0 200 400 600 800 1000 1200 1400 No.ofParticipants PriceofESCerts(INR/ESCerts) Trading Sessions Statistics of ESCerts Price & Participants Price Discovered (INR/ ESCerts) No of Participants

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