Renewable Energy (RE) Project Developer Investors seeking investment in Renewable Energy projects Industrial / commercial energy users – using renewable energy or contemplating using RE

1. Renewable Energy (RE) Power Contracting & Trading

2. 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
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3. 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
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4. 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.
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5. Typical Process for RE Power tie-up
Term Sheet
• Intent to sell
/ purchase
• Qty, period
& price
LOI
• Matching
buyer/ seller
• High level
terms
Set-up
• Power
Purchase ,
Share
holding, etc.
• ABT meter,
etc.
Agreement
• Open
access
• Regulatory
filings
Approvals
Billing & Payment
Power Generation
Credit Adjustment
Open access charges
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6. Our Services
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7. Overview of Service
Renewable Energy Project
Assessment
Renewable Energy
Contracting
• For Project Developers
• For RE power users
Power Resources and Cost
Optimization
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• For Project Developers
• For RE power investors
• For Project Developers
• For RE power users
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8. 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)
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9. 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
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10. 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 contract
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11. 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
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
 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 price
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12. 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.
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13. Case Study
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)
Old Structure
Particulars
Discom
Captive
TPS - Wind w/o RPO
GCS - Wind with RPO
RPO (REC procurement)
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New Structure
Total Cost
Total Cost
MW
Cost INR/u MU
(INR ’Mn)
MU
(INR ’Mn)
Savings
16
5.75
140
805.9
105
604.4
30
3.85
263
1011.8
263
1011.8
0
5.25
0
0.0
22
115.0 1.67%
0
5.75
0
0.0
13
75.6
1.5
13
19.7
0
0.0
403
1837.4
403
1806.8
30.7
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14. 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%
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15. 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
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16. Select Clients
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17. Contact Us
Mumbai – Mr. Rameez Shaikh
Chennai – Ms. Priya Ranganayaki
5th floor, Great Social Building
60, Sir Pherozeshah Mehta Road, Fort
Mumbai 400001
E-3, 4th Floor, "RM Towers“
108 Chamiers Road, Nandanam
Chennai 600018
Phone: +91 22 2266 3201/3301
Mobile: +91 99200 33866
Email: rameez.shaikh@general-carbon.com
Phone: +91 44 42167331
Mobile: +91 99625 26876
Email: priya.v@general-carbon.com
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18. Advantage RSM GC Advisory
Leadership
Team
• 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
Policy
Formulation
• Active participation in policy formulation and thought leadership
Strong
Track
Record
Diverse
Work
Experience
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• Strong track record of project delivery, combined with risk mitigation and structuring capabilities
•
Working experience in diverse geographies & sectors, and a potent combination of technical
& financial resources
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