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					</table>The Solar Energy Corporation of India (<a href="https://www.seci.co.in/" target="_blank" rel="noopener">SECI</a>) paid solar and wind power producers ₹9.84 billion (~$117.9 million) for the energy purchased in February 2024. The payment reflected an <a href="https://www.mercomindia.com/seci-subsidy-solar-park-january-2024/" target="_blank" rel="noopener">increase </a>of 5% from the January disbursements.
The disbursements <a href="https://www.mercomindia.com/secis-62-yoy-in-february-2023" target="_blank" rel="noopener">increased</a> by 10% on a year-over-year (YoY) basis.
Disbursements to solar and wind developers constituted 86.8% of the total payments. The major beneficiaries were SB Energy Three, SB Energy One, Adani Solar Energy Jaisalmer One, Adani Hybrid Energy Jaisalmer One, and Azure Power Forty Three.
The nodal agency disbursed a total of ₹11.34 billion (~$135.75 million) during the month.
The month-on-month increase in SECI payments is a promising development for India’s renewable energy sector. This growth suggests that the government’s endeavor to encourage the use of renewable energy are yielding results, with higher wind and solar capacity additions.
SECI paid ₹866.68 (~$10.4 million) to Tata Power Solar Systems for its own projects.
In all, ₹197.78 million (~$2.4 million) was disbursed to contractors and service providers.
During the month, SECI disbursed ₹157.87 (~$1.9 million) towards open access charges. JSW Renew Energy Two was the sole beneficiary.
The agency used ₹120.61 million (~$1.4 million) towards a deposit for a new commercial office building.
It reimbursed ₹106.1 million (~$1.3 million) to solar and wind power developers against goods and services tax safeguard duty and basic custom duty claims under the annuity method. The main beneficiaries were Azure Power Forty Three, Clean Solar (Bhadla), Sb Energy Four, Azure Power India, and SBG Cleantech Projecto Five.
During the month, SECI disbursed ₹34.04 million (~$407,667) towards transmission charges. The beneficiaries were Rajasthan Rajya Vidyut Prasaran Nigam, Madhya Pradesh Power Transmission Company, and Gujarat Energy Transmission Corporation.
It also spent ₹7 million (~$83,861) on corporate social responsibility programs.
SECI <a href="https://www.mercomindia.com/seci-%E2%82%B910-billion-term-loan-300-mw-solar/" target="_blank" rel="noopener">invited</a> bids from scheduled commercial banks or financial institutions for a term loan of ₹10 billion (~$120.24 million) to develop a 300 MW solar power project in the Ramagiri village of Sri Satya Sai District in Andhra Pradesh.
Earlier, SECI <a href="https://www.mercomindia.com/seci-capital-credit-facility-6-billion" target="_blank" rel="noopener">invited</a> quotations for a short-term working capital credit facility of up to ₹6 billion (~$72.3 million) to help it make monthly payments to solar, wind, and hybrid energy projects.

SECI Disbursements to Solar, Wind Generators Up 10% YoY in February 2024

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					</table>The Indian Energy Exchange (<a href="https://www.iexindia.com/" target="_blank" rel="noopener">IEX</a>) traded 341 million units (MU) of renewable energy in February 2023, a 2% decrease month-over-month (MoM) compared to 347 MU <a href="https://mercomindia.com/iex-347-mu-green-energy-january-2023/" target="_blank" rel="noopener">traded</a> in the previous month and a 25% year-over-year (YoY) decrease.
The average daily trading volume on the exchange increased by 5% MoM. However, the overall trading volume decreased by 5% MoM due to fewer trading days in February.
The electricity trading volume was 7,673 MU, which represented a decline of 6% YoY and a 7% MoM. The total trading volume was 8,200 MU, which marked a decline of 7% YoY.
High input costs continued to impact sell-side liquidity in February. However, there was an increase in demand for power due to several parts of the country experiencing unusually warm temperatures and sustained economic activity.
According to data released by the National Load Dispatch Center, the total energy produced in the country during February was 118 BU, representing a 9% YoY increase.
In the coming months, IEX expects that supply constraints will ease due to favorable policy and regulatory initiatives. These initiatives are expected to increase coal and gas-based generation, leading to higher liquidity on the exchange. This increased liquidity will likely provide cost-optimization opportunities for power distribution companies and open access consumers.
Green Market: Day-Ahead and Term-Ahead
The Green Day-Ahead Market (GDAM) traded 250 MU with a weighted average price of ₹6.57 ($0.080)/ kWh, up 4% MoM. The market saw participation from 203 entities during the month, with the highest number of participants in a single day at 159 on February 22, 2023.
The Green Term-Ahead Market (GTAM) traded 91 MU during the month. The average monthly price for non-solar was ₹8.22 ($0.10)/ kWh ₹10.18 ($0.12)/ kWh for hydropower.
Electricity Market: Day-Ahead, Term-Ahead, and Real-Time Market
In February, the DAM volume decreased by 5% MoM to 4,664 MU. The DAM volume was also down 17% YoY due to high prices caused by a constrained supply, which led to continued high spot e-auction coal prices.
The Real-Time Electricity Market achieved 1,714 MU during the month, registering a 10% YoY growth.  There were 722 participants in this segment.
The consistent growth of the real-time electricity market indicates the growing reliance on distribution utilities and industries to achieve the power demand-supply balancing in real-time most efficiently, IEX said.
The TAM, comprising intra-day, contingency, daily, weekly, and long-duration contracts, traded 954 MU during the month, an increase of 81% YoY and 5% MoM.
Renewable Energy Certificate Market
February saw 374,000 renewable energy certificates (REC)s cleared, registering a decrease of 5% MoM. The trading session <a href="https://mercomindia.com/rec-jumps-clearing-price-%e2%82%b91000-new-regulations/" target="_blank" rel="noopener">witnessed</a> a clearing price of ₹1,000 (~$12.24)/REC. The next REC trading session at the exchange is scheduled for March 29, 2023.
Energy saving certificates
After a hiatus of 14 months, IEX resumed trading energy-saving certificates (ESCerts) on February 14, 2023. During the month, nearly 154,000 ESCerts, equivalent to 154 MU, were traded on IEX, representing a 97% market share.
The exchange <a href="https://mercomindia.com/iex-reports-4-yoy-dip-profit-q3-fy23/" target="_blank" rel="noopener">reported</a> a 4.4% YoY decrease in profit after tax from ₹807 million (~$9.94 million) to ₹772 million (~$9.51 million) in the third quarter of the financial year 2023.

IEX Traded 341 MU of Green Energy in February 2023, Down 25% YoY

Distribution companies (DISCOMs) owed renewable generators ₹205.17 billion (~$2.68 billion) in overdue payments (excluding disputed amounts) at the end of February 2022, according to the data released by the <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Ministry of Power</a>.
The figure reported for February was 45% higher than ₹141.42 billion (~$1.89 billion) <a href="https://mercomindia.com/discom-dues-renewable-generators-slide-january-2022/" target="_blank" rel="noopener">registered</a> for January 2022.
According to the data released by the Ministry of Power’s payment ratification and analysis portal <a href="https://praapti.in/" target="_blank" rel="noopener">PRAAPTI</a>, the outstanding amount to renewable generators at the end of the month stood at ₹3.92 billion (~$51.21 million). At the end of January, the amount was ₹11.75 billion (~$157.13 million).
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/03/discom-dues-final.png"><img loading="lazy" decoding="async" class="alignnone wp-image-33394 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/03/discom-dues-final.png" alt="DISCOM Dues February" width="622" height="260" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/03/discom-dues-final.png 622w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/03/discom-dues-final-300x125.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/03/discom-dues-final-600x251.png 600w" sizes="(max-width: 622px) 100vw, 622px" /></a>
At the end of the month, DISCOMs owed all power generators an overdue amount equivalent to ₹1.05 trillion (~$13.73 billion), an increase of 3.4% from ₹1.01 trillion (~$13.28 billion) at the end of January 2022.
The outstanding amount at the end of February 2022 stood at ₹165.7 billion (~$2.17 billion), a decrease of 1% from ₹163.32 billion (~$2.14 billion) at the end of January this year.
For February, the DISCOMs released $136.49 billion (~$1.79 billion) against the overdue amount, an increase of 2% compared to $134.2 billion (~$1.76 billion) during the month of January. The DISCOMs released ₹39.5 billion (~$515.98 million) against the outstanding amount, marking a decrease of 1% from ₹39.88 billion (~$520.95 million) in January.
The three renewable generators who owed the most were Adani Green Energy, Hero Future Energies, and Tata Power Company at the end of the month.
Among the states, Tamil Nadu had the highest backlog with an overdue amount of ₹206.6 billion, followed closely by Maharashtra and Rajasthan, with ₹192.85 billion (~$2.52 billion) and ₹108.73 billion (~$1.42 billion), respectively.
In terms of ease of doing business with the DISCOMs, Jammu and Kashmir and Meghalaya were at the lowest rung. Other states that did badly during the month were Tamil Nadu, Telangana, Andhra Pradesh, Maharashtra, Rajasthan, and Jharkhand.
The states that performed well during the month were Himachal Pradesh, Uttarakhand, Assam, Arunachal Pradesh, Nagaland, Chhattisgarh, Odisha, Gujarat, Goa, and Kerala.
Last December, the Ministry of Power <a href="https://mercomindia.com/discoms-submit-draft-proposals/" target="_blank" rel="noopener">said</a> that 39 out of 55 electricity DISCOMs had submitted draft proposals under the ₹3.03 trillion (~$40.82 billion) reforms-based result-linked power distribution program. The Ministry had said that Meghalaya and Assam were the frontrunners in planning operational and financial reforms.
Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.

DISCOM Dues to Renewable Generators Mount to ₹205.7 Billion at the End of February

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