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 use of RE

3. Benefits of RE power procurement
Carbon neutral power sourcing
Higher grounds on sustainability roadmap
RPO compliance
Robust portfolio of power options
Can deliver cost savings

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.

5. Typical Process for RE Power tie-up
LOI
Intent to sell / purchase
Qty, period & price
Term Sheet
Matching buyer/ seller
High level terms
Agreement
Power Purchase , Share holding, etc.
Set-up
ABT meter, etc.
Approvals
Open access
Regulatory filings
Typical Process for RE Power tie-up
Monthly Process
Billing & Payment
Power Generation
Open access charges
Credit Adjustment

6. Our services

7. Overview of Service Renewable Energy Contracting
For Project Developers
For RE power users
Power Resources and Cost Optimization
Renewable Energy Project Assessment
For RE Project Developers
For RE power investors

8. Renewable Energy Contracting
Policy & Regulatory analysis for renewable energy power sale in various states of India
- 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

9. 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 AND
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
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

10. Power Resources & Cost Optimization Plan… Contd.
We do the following 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
Evaluate 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
Facilitating sale / purchase of power through exchanges, 3rd party bilateral (renewable / non renewable), group captive, etc
Assist execution of PPAs, EWAs, SHAs, open access approvals, setting-off of open access units in the bill, etc.

11. 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

12. 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)
Particulars
Old Structure
New Structure MW
Cost INR/u 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
TPS - Wind w/o RPO
5.25
0.0 22
115.0
GCS - Wind with RPO 13
75.6
RPO (REC procurement)
1.5
19.7
403
1837.4
1806.8
30.7

13. Advantages RSM GC
Deep insight: Thought leaders, Helped in capacity building exercise in major states for open access.
Rich Experience:
Advised IPPs on power sale strategy at the stage of finance raising to operations
Advised some 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. 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. Contact Us Mr. Rameez Shaikh Senior Manager
Phone: / 336/ 335   Mobile:
Mr. Anupam Das Purkayastha
Director
Phone : /3301
Mobile :
RSM GC Advisory Services Private Limited
Mumbai Office Address:
7th Floor, B Wing, Kukreja Centre, Plot No.13, Sector -11, CBD Belapur, Navi Mumbai , Maharashtra.
Phone: / 336/ 335  

16. THANK YOU FOR YOUR TIME AND ATTENTION