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					</table><p>The Solar Energy Corporation of India (<a href="https://www.seci.co.in/" target="_blank" rel="noopener">SECI</a>) disbursed ₹11.48 billion (~$138.3 million) to wind and solar developers for the electricity procured in the month of June 2023. The payments marked an increase of 9.3% from ₹10.5 billion (~$126.43 million) <a href="https://www.mercomindia.com/seci-payments-wind-solar-generators-may-2023" target="_blank" rel="noopener">disbursed</a> in May.</p>
<p>The disbursements increased by 25.7% on a year-over-year basis.</p>
<p>The disbursements accounted for nearly 93% of the total amount released by the nodal agency in June.</p>
<p>Adani Solar Energy Jaisalmer One, Adani Hybrid Energy Jaisalmer One, Sitac Kabini Renewables, and Azure Power Forty-Three were the main beneficiaries of the payments in June.</p>
<p>The total disbursement in June was ₹12.35 billion (~$148,709).</p>
<p>The amount released in June did not include subsidies under the rooftop solar program.</p>
<p>SECI released ₹270 million (~$3.25 million) as a subsidy under the Central Public Sector Undertaking (CPSU) Program, Phase II.</p>
<p>It disbursed ₹116.78 million (~$1.41 million) to solar power developers against goods and services tax (GST) and safeguard duty claims under the annuity method.</p>
<p>The most significant beneficiaries of GST and safeguard duty reimbursements were SB Energy One, Clean Solar Bhadla, SB Energy Four, and Azure Power.</p>
<p>An amount of ₹417.32 million (~$5.03 million) was released to contractors and service providers.</p>
<p>It paid an additional ₹20.39 million (~$245,520) as open access charges.</p>
<p>In June, SECI released ₹36.91 million (~$444,441) as payment for transmission charges.</p>
<p>Recently, 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. The credit facility can be a cash credit, overdraft, or working capital demand loan. The non-fund-based credit facility will be for one year, with an option to renew it for a year more. Facility tie-ups may be done with multiple banks; however, the total facility will only be up to ₹6 billion (~$72.3 million).</p>
<p>Earlier, SECI had <a href="https://www.mercomindia.com/seci-revenue-power-trading-100-billion" target="_blank" rel="noopener">earned</a> over ₹100 billion (~$1.22 billion) in revenues from trading renewable power in the financial year 2022-23, the highest ever since its inception.</p>


SECI Disbursements to Solar, Wind Generators See 26% YoY Rise


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					</table><p>The Indian Energy Exchange (<a href="https://www.iexindia.com/" target="_blank" rel="noopener">IEX</a>) traded 272 million units (MU) of renewable energy during June 2023, a 24% decrease from 358 MU <a href="https://www.mercomindia.com/iex-trades-358-mu-of-green-energy-yoy-drop" target="_blank" rel="noopener">traded</a> in May and a 49% year-over-year (YoY) decrease.</p>
<p>The total trading volume during the month was 8,946 MU, representing a YoY increase of 8%.</p>
<p>IEX achieved 25,125 MU volume across all segments during the first quarter (Q1) of the financial year 2024, growing 8% YoY.</p>
<p>The trading price during June dropped by 17% YoY to ₹5.37 (~$0.065)/kWh, while the average market clearing price during Q1 was ₹5.17 (~$0.063)/kWh, a decline of 33% YoY.</p>
<p>The dip in price was due to the improvement due to enhanced coal supply, reduction in e-auction coal prices, and consistently declining imported coal and gas prices, leading to increased liquidity.</p>
<p>The increased liquidity led to a sharp price correction, resulting in optimization opportunities and higher clearance for power distribution companies and open access consumers.</p>
<p>According to GRID-India, the energy met in the country during the month was 140 BU, a 4.3% YoY increase.</p>
<p><strong>Green Market: Day-Ahead and Term-Ahead</strong></p>
<p>The exchange traded 910 MU green energy during the April-June period.</p>
<p>The Green Day-Ahead Market traded 166 MU during June 2023, with a weighted average price of ₹4.95 (~$0.060)/kWh and 177 market participants. The segment traded 524 MU during the quarter.</p>
<p>The Green Term-Ahead Market witnessed trading of 106 MU with an average monthly price of ₹3.24 (~$0.039)/kWh for solar, ₹5.76 (~$0.070)/kWh for non-solar, and ₹6.28 (~$0.076)/kWh for hydro. The segment traded 386 MU during Q1.</p>
<p><strong>Electricity Market: Day-Ahead, Term-Ahead, and Real-Time Market</strong></p>
<p>The Day-Ahead Market traded 4,103 MU in June, a marginal 1% YoY increase. The average market clearing price during the month was ₹5.37 (~$0.065)/kWh, a 17% YoY drop.</p>
<p>The segment registered 12,501 MU during Q1, with 11% YoY growth due to improved prices.</p>
<p>The Real-Time Electricity Market (RTM) achieved the highest-ever monthly volume of 2,675 MU during March, a 21% YoY growth, with 765 participants. In June, RTM trade volume saw more than 100 MU trade for nine days.</p>
<p>The segment registered a volume of 7,252 MU during Q1, increasing 16% YoY.</p>
<p>The RTM segment’s consistent growth is driven by the increasing acceptance amongst distribution utilities and industries to balance the power-demand supply on a real-time basis efficiently.</p>
<p>The Term-Ahead Market, which includes intra-day, contingency, daily, and weekly contracts and contracts up to three months, traded 1,118 MU during the month, a 47% YoY jump. The total volume on the segment during the quarter was 3017 MU, a marginal decline of 3% YoY.</p>
<p><strong>Renewable Energy Certificate Market</strong></p>
<p>June saw 533,000 renewable energy certificates (RECs), equivalent to 533 MU traded with a clearance price of ₹745 (~$9) per REC. A total of 875,000 RECs, equivalent to 872 MU, were traded during the quarter.</p>
<p>The next REC trading session is scheduled on July 26, 2023.</p>
<p><strong>Energy Saving Certificates</strong></p>
<p>Nearly 244,000 Energy Saving Certificates (ESCerts), equivalent to 244 MU, were traded at the IEX during the month. The floor price stood at ₹1,840 (~$22.38) per ESCert.</p>
<p>A total of 569,000 ESCerts were traded in Q1.</p>
<p>The IEX <a href="https://www.mercomindia.com/iexs-revenue-fy23-dips-2-yoy" target="_blank" rel="noopener">reported</a> a profit after tax of ₹883 million (~$10.7 million), a slight decrease of 0.1% YoY in Q4 FY 2023. The high input costs impacted the sell-side liquidity as the government attempted to meet the rising power demand by increasing the coal supply during the quarter.</p>


IEX Traded 272 MU of Green Energy in June 2023, a 24% YoY Drop


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					</table><p>Distribution companies (DISCOMs) owed renewable generators ₹200.37 billion (~$2.55 billion) in overdue payments (excluding disputed amounts) at the end of June, according to the data released by the <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Ministry of Power</a>.</p>
<p>The figure marked a decrease of nearly 2% compared to ₹204.39 billion (~$2.60 billion) at the end of May 2022.</p>
<p>Overdue amounts are payments that are past their due date (between 45-60 days) and remain partially or entirely unpaid.</p>
<p>As per 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 increased by 18% to ₹10.61 billion (~$134.37 million). At the end of May, the amount was ₹8.97 billion (~$113.59 million).</p>
<p style="text-align: center;"><img loading="lazy" decoding="async" class="aligncenter wp-image-37541 size-full" src="https://mercomindia.com/wp-content/uploads/2022/07/DISCOM-Dues-June-2022.png" alt="DISCOM Dues June 2022" width="823" height="348" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/07/DISCOM-Dues-June-2022.png 823w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/07/DISCOM-Dues-June-2022-300x127.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/07/DISCOM-Dues-June-2022-768x325.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/07/DISCOM-Dues-June-2022-650x275.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/07/DISCOM-Dues-June-2022-624x264.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/07/DISCOM-Dues-June-2022-600x254.png 600w" sizes="(max-width: 823px) 100vw, 823px" /></p>
<p>At the end of the month, DISCOMs owed power generators ₹1.12 trillion (~$14.23 billion), increasing 6.5% from ₹1.05 trillion (~$13.36 billion) at the end of May.</p>
<p>At the end of June, the outstanding amount stood at ₹204.64 billion (~$2.60 billion), 9% less than the ₹224.93 billion (~$2.86 billion) in May.</p>
<p>The DISCOMs released ₹134.26 billion (~$1.71 billion) against the overdue amount in June, a decrease of 26.6% compared to ₹183.03 billion (~$2.33 billion) in May.</p>
<p>They also released ₹57.58 billion (~$729.21 million) against the outstanding amount, down by 14% compared to ₹66.71 billion (~$844.84 million) in May.</p>
<p>At the end of June, the renewable energy generators that DISCOMs owed the most were Adani Green Energy, ACME Solar, and Tata Power Company.</p>
<p>Among the states, Maharashtra had the highest backlog with an overdue amount of ₹225.52 billion (~$2.86 billion), followed by Tamil Nadu and Telangana, with ₹218.97 billion (~$2.77 billion) and ₹172.87 billion (~$2.19 billion), respectively.</p>
<p>Regarding ease of doing business, the states at the bottom were Jammu and Kashmir, Telangana, and Meghalaya. Other states that performed badly during the month were Andhra Pradesh, Tamil Nadu, Maharashtra, and Jharkhand. The states that did well in June were Gujarat, Harayana, Himachal Pradesh, Punjab, Uttarakhand, Chhattisgarh, Bihar, Odisha, Assam, Arunachal Pradesh, and Nagaland.</p>
<p>Recently, the Ministry of Power <a href="https://mercomindia.com/discoms-allowed-clear-dues-generators-48-installments/" target="_blank" rel="noopener">notified</a> the ‘Late Payment Surcharge and Related Matters Rules, 2022.’ According to the rules, a late payment surcharge will be payable on the outstanding amount after the due date at the base rate of the late payment surcharge applicable for the first month of default. The rate of late payment surcharge for the successive months of default will increase by 0.5% for every month of delay, provided that the late payment surcharge will not be more than 3% higher than the base rate at any time.</p>
<p>Earlier, the Ministry of Power had <a href="https://mercomindia.com/ministry-of-power-program-to-liquidate-dues-of-discoms/" target="_blank" rel="noopener">announced</a> that it was working on a program to mitigate the financial woes of the DISCOMs by liquidating their dues. The proposed program enables payment of the financial dues in easy installments by the DISCOMs.</p>
<p>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.</p>


DISCOM Dues to Renewable Generators Decline Marginally to ₹200.37 Billion in June

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