Latest news with #ContractforDifference
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Business Standard
3 days ago
- Business
- Business Standard
Stock Market LIVE: GIFT Nifty up; Asia mixed on easing Middle East tensions
Sensex Today | Stock Market LIVE on Thursday, June 26, 2025: Around 6:55 AM, GIFT Nifty futures were trading 41 points higher at 25,293, indicating a positive start for the bourses. 7:07 AM Stock Market LIVE Updates: Plan to double projects to ₹5 trillion this year, says Nitin Gadkari Stock Market LIVE Updates: In a free-wheeling conversation in New Delhi, Union Minister of Road Transport and Highways Nitin Gadkari spoke with Business Standard on why elections should not matter while setting targets, his take on being seen as a future prime minister, and much more. On being asked about construction target for this year, he said, "We have been trying to increase the target and execution but we have not been able to do it so far. We had reached 40 km per day. The ideal target for us is 100 km per day (36,500 km for the year). We are reforming policies… The true test of leadership is to convert the impossible into possible." READ MORE 7:05 AM Stock Market LIVE Updates: RBI bulletin: India's economic activity 'resilient' amid global flux Stock Market LIVE Updates: Economic activity is holding firm in India amid a challenging global environment, and financial conditions remained conducive to facilitate an efficient transmission of interest rate cuts to the credit market, Reserve Bank of India officials said in a report on the 'State of the Economy' in its monthly bulletin. The rate setting panel of the central bank has cut the policy repo rate by 100 basis points (bps) to 5.5 per cent in quick succession between February and June. Moreover, the 100 bps cut in banks' cash reserve ratio requirements to be implemented in phases, starting from the fortnight beginning 6 September 2025, will release primary liquidity of ₹2.5 trillion. This will reduce the cost of funds for banks, thereby facilitating monetary policy transmission to the credit market, the report noted. READ MORE 7:03 AM Stock Market LIVE Updates: Dixon Technologies stock weighed down by the competition concerns Stock Market LIVE Updates: Increasing competition in the electronics manufacturing services (EMS) industry is impacting valuations. Market leader Dixon Technologies has been hit hard though it remains the leader in an industry with strong growth. Listed players such as Kaynes Technology, Avalon Technologies, Syrma SGS Technology, Cyient DLM, Data Patterns, Dixon, and Amber Enterprises have all seen some price correction. This comes despite orders from aerospace, industrials, automotive, and infrastructure sector clients. 7:02 AM Stock Market LIVE Updates: NSE lays the ground work for an early launch of electricity futures Stock Market LIVE Updates: The National Stock Exchange (NSE) is set to launch monthly contracts for electricity futures and has begun registering market participants. The exchange is also considering a later launch of 'Contract for Difference' (CfD) for renewable energy companies. The announcement of the launch is expected by mid-July, as discussions with market participants are ongoing. NSE received approval from the market regulator for the launch on June 11. Similarly, the multi-commodity exchange (MCX) has also received approval from securities and exchange board of India (Sebi) to launch electricity derivatives. READ MORE 7:01 AM Stock Market LIVE Updates: HDB Financial IPO subscribed 37% on Day 1; HNIs, staff lead bids Stock Market LIVE Updates: HDB Financial Services' initial public offering (IPO) garnered 37 per cent subscription on Wednesday, the opening day of the issue. The institutional investors subscribed about a per cent, the high net worth individual (HNI) portion of the issue was subscribed 76 per cent, and the retail investor portion was 30 per cent. The portion reserved for employees was subscribed 1.7 times, and the one reserved for shareholders was subscribed 70 per cent. A day earlier, the NBFC major had allotted shares worth ₹3,369 crore to anchor investors. Life Insurance Corporation, ICICI Prudential Mutual Fund, Nippon Life, and Goldman Sachs Funds were among those applied in the anchor category.
The Hindu
3 days ago
- Business
- The Hindu
NSE's new futures to hedge power price fluctuation loss
National Stock Exchange (NSE) is set to launch a new security called 'Electricity Futures' in order to hedge losses due to electricity price fluctuations. This will allow power buyers, sellers, traders, and retailers to manage the price risk. The electricity supply and distribution market is bundled and this product will help them unbundle, NSE said. There will be no direct delivery of electricity that will take place. DISCOMS, generators, traders and industries can now lock future prices. It is a monthly product that will be settled in cash and is expected to bring some certainty to short-term market of electricity as a commodity, which is currently volatile. Quarterly, annual and Contract for Difference (CfD) markets will also be launched subsequently said Harish K. Ahuja, Head of Sustainability, Power , Listing and Social Stock Exchange at NSE while talking to the media. Power generators will hedge revenue, distribution companies hedge costs and traders bring liquidity according to NSE's factsheet on the product. A unit of the product will be 50MWh and the maximum order size will be made for 2500MWh. Positions can be held for up to 30 lakh MWh or 20% of the market wide open positions, whichever is higher for all the electricity contracts combined together. For individual clients, the maximum position is 3 lakh MWh or 5% of the market wide open position , whichever is higher for all the electricity contracts combined together. Mr. Ahuja said that the product was designed keeping in mind that power was a public good and speculation may not be possible as electricity is not storable. All over the world, five exchanges , namely Intercontinental Exchange (ICE) which owns the NYSE, New York Mercantile Exchange, European Energy Exchange, NordPool (a pan-European power exchange), and NASDAQ has it in Europe. The date of launch will be announced by two to three weeks , said Mr. Ahuja.
Mint
11-06-2025
- Business
- Mint
Meta, Amazon, and Microsoft buy green power under a special contract. That's causing losses
New Delhi: In a rare occurrence, India's falling real-time renewable energy tariffs are causing losses to Big Tech firms. The reason: a mechanism aimed at ensuring price stability and managing risks. Meta, Amazon and Microsoft are incurring losses on their green energy power purchase agreements (PPAs) that are based on Contract for Difference (CfD), said four people aware of the development. Power producers and buyers agree to pricing under long-term pacts. When such agreements are based on CfD, either party has to pay the difference between the contracted and the actual price to the other. In case the market prices are higher than the agreed-upon 'strike price', the power producer pays the differential to the procurer–in this case, corporates. But if the market price is lower than the contracted price, the company needs to pay the developer. With the prices falling below ₹1 per unit last month, the tech firms that signed CfD-based long-term PPAs are witnessing an average loss of around ₹1 per unit. Read more: NTPC ties up with SEforALL for energy transition roadmap Corporations and generators enter into CfD-based PPAs for risk management and assured prices. These contracts are important for large corporations to earn carbon credits to meet their green targets. 'The CfD contracts are under stress given the renewable energy prices trajectory," said one of the four people cited above, requesting anonymity. 'The price touched record lows last month and the recent trend is a rare development. The losses to corporates tied up in CfD-based PPAs would also be unprecedented, although unquantifiable as these PPAs are mostly private," said an executive with an energy exchange cited above who also did not want to be named. 'There are not many corporates in the country who have tied up such PPAs. The major players include the global tech giants." Queries emailed to Amazon, Meta, and Microsoft remained unanswered till press time. "Procuring entities would have been incurring losses in the past two months owing to the fall in market prices of power. Currently, the market-clearing price stands around ₹2.1-2.2 per unit during the solar hours," said Jatin Arya, director at CareEdge Ratings. 'This downtrend has been seen for two months in a row. However, in case prices rebound, these entities may be able to offset such losses over the course of the remaining months of the fiscal." Power prices drop in cooler May The decline in real-time prices comes as demand for power in India's top six industrialized states flattened in April and cooled in May, as reported by Mint earlier. This suggests a potential fall in factory production at the start of the new financial year. The average market-clearing price (MCP) on the Indian Energy Exchange during solar hours (11:00-16:00 hours) in May was ₹2.2 per unit against ₹3.5 a unit a year earlier, with prices in some time blocks at nearly ₹0 per unit. The average MCP during non-solar hours (00:00-11:00 hours and 16:00-24:00 hours) was ₹3.8/unit vs ₹5.2/unit in the corresponding period of the previous year. The Central Electricity Authority (CEA) has projected a peak demand of 270 gigawatt (GW) this year, compared to a record 250 GW recorded on 30 May last year. But May was cooler this year compared with a year earlier, when the peak demand had touched 250 GW. The fall in temperatures drove prices down in the short-term power market. Average market-clearing price (MCP) in the real-time market declined 28% on-year to ₹3.43 per unit in May 2025, indicating ample availability amid tepid electricity volume requirement, said a Crisil report. Green commitments AEI New Energy Trading Pvt. Ltd, a subsidiary of Amazon Inc has a 20-year PPA at ₹2.72 per unit from 100 MW (AC)/135 MW (DC) solar power project in Rajasthan. Last August, Microsoft signed a PPA for 437.6 MW of green attributes, marking one of the largest corporate renewable deals in the country. Under this agreement, Microsoft aims to advance its renewable energy targets, while supporting community initiatives such as rural electrification and women's economic empowerment. Given the requirement of green attributes for achieving green energy targets, 30% of green energy usage cited by large corporations comprises green attributes sourced through international renewable energy certificates, CfD-based PPAs and virtual PPAs, said Aditya Malpani, senior director and regional business head – west, AMPIN Energy Transition. Temporary blip Industry players do not expect real-time renewable energy prices to remain low for long. 'The instance of prices reaching below ₹1 last month was a rare and is unlikely to sustain over the long term. It's important for industry to come up with a mutually winning contractual structure," said Malpani of AMPIN Energy Transition. "One provision could be the introduction of 'cap and collar'; in other words, lower and upper limits in case of upswings and downswings. Further, merchant projects can offload physical electricity to bulk off-takers under short-term contracts as breakeven prices in third-party sale are still much higher than market-clearing prices in exchanges. Lastly, electricity derivatives being launched in a short while shall provide another hedging mechanism for CfD contracts," Malpani said, adding that since price volatility is a reason why corporates remain cautious of getting into CfD-based PPAs. Read more: Crisis alert: Careless water management poses India an existential threat According to Suddhasatta Kundu, director-power sector advisory at Nangia & Co LLP, the decrease in solar price is attributed to various reasons, including low financing cost, higher generation during the day when demand is low, favourable regulatory provisions, among others. 'In the short term, there may be a reduction in solar price; however, in the long term, CfDs will be a favourable risk-mitigation instrument for the buyer. Green attributes requirement would certainly drive, but it will not solely be the driving factor," he said. Rahul Mishra, senior VP & head-C&I, BluPine Energy, said: 'While such price movements have prompted discussion around Contract for Difference (CfD)-based agreements, these are largely situational developments rather than indicators of a systemic challenge." Noting that for commercial and industrial (C&I) customers, renewable energy procurement remains a long-term strategic choice aimed at energy cost stability, decarbonization goals, and sustainability commitments, he said that CfD structures are designed to balance short-term fluctuations with long-term value, and temporary price dips hardly undermine the fundamental economic or environmental rationale of these contracts. These developments point to surplus renewable availability during certain periods, which reinforces the importance of storage solutions, transmission and evacuation efficiencies, demand-side flexibility, and innovative contracting models in the future, Mishra said. Read more: Energy security: India needn't be staring at a $1 trillion import bill
Korea Herald
10-06-2025
- Business
- Korea Herald
Driving Clean Energy Forward: SANY R.E. Marks Milestone in Europe with Serbia's Alibunar Wind Power Project
BEIJING, June 10, 2025 /PRNewswire/ -- As the global spotlight turns once again to the urgency of climate action, SANY Renewable Energy is making that commitment tangible, not just in words, but in megawatts. Recently, SANY R.E. signed a Power Purchase Agreement (PPA) and Contract for Difference (CfD) with Serbia's Alibunar Project. More than just a new market entry, the project reflects SANY R.E.'s resolve to drive clean energy solutions where they're needed most. The Alibunar project is situated in eastern Serbia, which is one of the country's richest areas for wind resources. Expected to achieve commercial operation in 2028, the project has an operation period of 25 years. With a total installed capacity of 168MW, the project can produce electricity of about 480 million kWh annually after completion. When grid-connected, it will offer Serbia a large amount of clean energy, which will help optimize the local energy structure and reduce the reliance on traditional fossil energy. The Alibunar project is SANY R.E.'s first investment in Serbia and a milestone in its global clean energy layout. Zhou Fugui, Chairman of SANY R.E., said: "The Alibunar wind project is of great importance to us, marking our entry into the wider European market. We will actively co-operate with local partners and introduce advanced wind power technologies and solutions to help Serbia realize its energy transition and sustainable development goals." As a leading global provider of wind power solutions, SANY R.E. has been committed to providing efficient and reliable wind power equipment and support. In the process of the project, SANY R.E. will leverage its technical advantages to ensure the efficient advancement and stable operation of the project. Meanwhile, the company's local professional operation and maintenance team will provide comprehensive support for the project. SANY R.E. has made climate action central to its sustainability strategy, supporting the Paris Agreement goal of limiting global warming to 1.5°C. In 2024, its wind turbines generated 135.8 billion kWh of electricity, cutting CO₂ emissions by 72.87 million tons — equal to planting 3.3 billion trees. The company also advances eco-friendly turbine design, aiming to raise the recyclability of mainstream models to 95% by 2030, based on 2020 levels. Looking ahead, SANY R.E. will continue to contribute to the global energy transition by providing high-quality wind power solutions to more countries and regions, collaborating to create a cleaner energy future.
Cision Canada
10-06-2025
- Business
- Cision Canada
Driving Clean Energy Forward: SANY R.E. Marks Milestone in Europe with Serbia's Alibunar Wind Power Project
BEIJING, June 10, 2025 /CNW/ -- As the global spotlight turns once again to the urgency of climate action, SANY Renewable Energy is making that commitment tangible, not just in words, but in megawatts. Recently, SANY R.E. signed a Power Purchase Agreement (PPA) and Contract for Difference (CfD) with Serbia's Alibunar Project. More than just a new market entry, the project reflects SANY R.E.'s resolve to drive clean energy solutions where they're needed most. The Alibunar project is situated in eastern Serbia, which is one of the country's richest areas for wind resources. Expected to achieve commercial operation in 2028, the project has an operation period of 25 years. With a total installed capacity of 168MW, the project can produce electricity of about 480 million kWh annually after completion. When grid-connected, it will offer Serbia a large amount of clean energy, which will help optimize the local energy structure and reduce the reliance on traditional fossil energy. The Alibunar project is SANY R.E.'s first investment in Serbia and a milestone in its global clean energy layout. Zhou Fugui, Chairman of SANY R.E., said: "The Alibunar wind project is of great importance to us, marking our entry into the wider European market. We will actively co-operate with local partners and introduce advanced wind power technologies and solutions to help Serbia realize its energy transition and sustainable development goals." As a leading global provider of wind power solutions, SANY R.E. has been committed to providing efficient and reliable wind power equipment and support. In the process of the project, SANY R.E. will leverage its technical advantages to ensure the efficient advancement and stable operation of the project. Meanwhile, the company's local professional operation and maintenance team will provide comprehensive support for the project. SANY R.E. has made climate action central to its sustainability strategy, supporting the Paris Agreement goal of limiting global warming to 1.5°C. In 2024, its wind turbines generated 135.8 billion kWh of electricity, cutting CO₂ emissions by 72.87 million tons — equal to planting 3.3 billion trees. The company also advances eco-friendly turbine design, aiming to raise the recyclability of mainstream models to 95% by 2030, based on 2020 levels. Looking ahead, SANY R.E. will continue to contribute to the global energy transition by providing high-quality wind power solutions to more countries and regions, collaborating to create a cleaner energy future.
