Detailed Analysis:
JSERC has recently come up with draft regulation for forecasting and scheduling and deviation settlement mechanism. The primary objective is twofold: a) facilitate large-scale grid integration of solar and wind generating stations even though there are no wind projects, and the potential for wind is negligible b) maintaining grid stability and security. Highlights of the draft regulation are below:
Applicability: All Wind & Solar Pooling S/Ss, irrespective of their capacity, commissioning date and connectivity voltage level, have to provide day-ahead and week-ahead schedule, and intra-day revisions to a maximum of 16 per day.
– Revisions can be made on a one-and-half hourly basis, with prior notice of minimum1 hour for each revision.
– Payment for generation shall be as per actual generation (this is different from the inter-state regulation and the Karnataka draft regulation, where payment is on the basis of scheduled generation).
– Error is calculated based on Available Capacity (this is same as in the case of draft regulations of TN, MP, Odisha & Rajasthan, but different from the Karnataka draft regulation, where error is calculated on the basis of scheduled generation.).
– The deviation slab has been kept as (+/-)15% for existing generators, and (+/-)10% for upcoming projects whose commissioning date lies after the date of implementation of the final regulation.
– Penalty is calculated at fixed amounts per unit (whereas, for Inter-state it is calculated as a percentage to PPA rate).
– RPO accounting can continue as per existing arrangement, and needs no change.
– De-pooling shall be done based on either actual generation or available capacity.
Detailed Mechanism defined for Deviation Settlement
This is in line with the FoR Model Regulation, which states like TN, Odisha, MP and Rajasthan have also followed. This will help bring the evenness in the impact on generators, considering that the older RRF regulation had put huge liabilities on generators especially in the low wind season.
The penalty mechanism based on % deviation for all obligated generators:
The draft regulation was notified on 24th March, 2015, and has given time till 11th April, 2016, to submit comments to the Secretary, JSERC.
Other states like Maharashtra, Andhra Pradesh, Telangana and Gujarat are expected to follow soon with their draft regulations. A brief comparison of the draft regulation of the 6 states and the Model Regulation, is given in the table below:
Old/New – Refers to Old and New projects, w.r.t. the date of implementation of the final regulation.
TBA – To be announced.
?The regulation can be accessed?Here.
Among these big states only Andhra Pradesh doesn’t require any raise in the tariff, as it is not burdened with any financial losses unlike the rest of the states. The following graph depicts the financial losses incurred and the funds required by the states to cover up their losses, with Rajasthan being the state with highest financial losses and Assam being the least.
The above update has been taken from Business Standard’s article published on 19th October, 2015 which can be accessed?here.
Our previous blog on power sector reforms can be accessed?here.
BSL had prayed JSERC to
1. declare its CPP of 302 MW as co-generation power plant,
2. exempt BSL from applicability of RPO and
3. waive the RPO applicable on consumption of power from its CPP during FY11, FY12 and FY13.
CPP of BSL fulfills the definition of CPP as BSL has 50% equity in the plant and consumes 100 % of power generated.
JSERC also considered APTEL’s judgement in the case of MERC vs Century Rayon, where in it was declared that fastening of RPO on ?would defeat ?the objective of section 86 (1) (e) of the Indian Electricity Act.
JSERC has RPO targets defined till FY16. It has a total of 4% RPO (1% solar & 3% non-solar) for all three years FY14, FY15 & FY16.
BSL also is a distribution licensee in Jharkhand. As per data furnished in the order total RPO applicable on BSL for consumption of captive power comes around – 64.8 MW of non-solar and 17 MW of solar RPO.
The order can be accessed here.
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