All consumers including Extra High Voltage, High Voltage and Low Voltage will be eligible for opting 100% RE power on payment of Green Power Tariff. As per the order, Green Power Tariff of Rs 0.66/ kWh, which is over and above the normal tariff of the respective category as per Tariff Orders, will be levied to such consumers.
The Tata Power Company Limited (Distribution) (TPC-D) had filed a Petition seeking approval for “Green Power Tariff” for supply of Renewable Energy (RE) to consumers for meeting their requirement of utilizing 100% green energy for their entire demand.
In its submission, TPC-D stated that:?
- a) Approve the procurement of additional Renewable Energy to meet the 100% Green Energy requirement of consumers,?
- b) To approve issuance of a monthly certificate to the consumers certifying 100% green energy sale?
- c) Approve the “Green Energy Tariff” as proposed above or as deem fit by the Hon’ble Commission towards processing the 100% Green Energy Requirement?
- d) Allow treatment of this RE power under RPO of Tata Power-D in case the consumers do not wish to use the green attributes for meeting its RPO obligations.?
TPC-D in its submission also pointed out that such provision is already in place in the state of Karnataka, where Karnataka Electricity Regulatory Commission (KERC) has already approved Green Power Tariff for the Distribution Licensee (BESCOM) since FY 2011-12 in the respective tariff orders. While computing the green power tariff, TPC-D follows the same? methodology adopted by KERC.
Commission’s Analysis:
The Commission in its order noted that all the Distribution Licensees supported the proposal of TPC-D and stressed on the need to adopt uniform methodology.
Subsequently, the Commission allowed the Green Power tariff stating that the Distribution Licensees would have to incur additional expenses for arranging RE for such consumers. Such additional expenses need to be recovered from the same set of consumers without burdening other consumers.
The Commission further noted that the Green Power Tariff which would be uniform for all Distribution Licensees in the State. Computation of such tariff would be the difference between pooled power purchase cost of non-conventional and conventional sources of energy (only variable cost) for all Distribution Licensees in the State as described below:
|
Total
|
RE power Procurement for MYT Period | Non-RE power procurement (only variable) for MYT Period | Diff Bet RE & NonRE power | ||||
| MU | Rs. Cr | Rs/kWh | MU | Rs. Cr | Rs/kWh | Rs/kWh | |
| MSEDCL | 141772 | 57440 | 4.05 | 586029 | 146412 | 2.5 | 1.55 |
| AEML-D | 13295 | 4691 | 3.53 | 38206 | 15367 | 4.02 | -0.49 |
| BEST Undertaking | 2949 | 940 | 3.19 | 22534 | 7938 | 3.58 | -0.34 |
| TPC-D | 3927 | 1491 | 3.8 | 22377 | 8069 | 3.61 | 0.19 |
| MBPPL | 58 | 17 | 2.88 | 348 | 161 | 4.19 | -1.31 |
| GEPL | 41 | 12 | 2.88 | 248 | 101 | 4.08 | -1.2 |
| KRC | 35 | 10 | 2.89 | 190 | 76 | 4.02 | -1.14 |
| Total | 162077 | 64600 | 3.99 | 669968 | 178125 | 2.66 | 1.33 |
As this concept is being introduced for the first time, the commission decides to levy only 50% of charge determined above i.e. 0.66/kWh as Green Power Tariff to the consumer opting for meeting its 100% of power requirement through RE sources.
The Commission also ruled that if the consumer is not an obligated entity under RPO Regulations, it would be appropriate to count this energy towards RPO fulfilment of Distribution Licensee which will reduce the additional cost of the utility for purchasing the same and ultimately benefit its consumers.
The key points of the order are as below:
- Additional time granted for commercial implementation of DSM – to be effective from Jan 1, 2020
- Detailed requirements for metering, AMR installation and meter readings provided. Till AMR is? ? fully in place, meter readings to be done on a monthly basis
- Limited aggregation os smaller PSS (<20MW; connected at 33KV) allowed with the nearest larger PSS
- SLDC to revise procedures in light of the order and submit to MERC for approval
- MERC declined to revise clause pertaining to additional DSM charges due to RE deviation at the state periphery
- Payment security from PSU’s and companies in NCLT can be provided directly to SLDC either in the form of deposit or electronic LCs
- Various other clarifications provided on procedural matters
This order has comes as a huge relief to the RE generators.
]]>Further, the commission has also announced amendments in the implementation of Procedure under MERC (Forecasting, Scheduling and Deviation Settlement for Solar and Wind Generation) Regulations, 2018.
The clause 7.1 of the said Detailed Procedure specified the MSLDC fee and charges including scheduling fee and the re-scheduling fee payable by QCA to MSLDC. The said issues were highlighted by REConnect also, how the rates stated by MSLDC are exceptionally high and unfair.
A meeting was held by the commission with the stakeholders where they stated their concern regarding the high charges and how these charges are not so high in other states like Andhra Pradesh, Karnataka, Madhya Pradesh & Rajasthan.
The commission has announced the updated fees and charges related to scheduling charges, the abstract of which is as follows:
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Renewable energy sources |
Tariff without AD | Tariff with AD |
| Non-Fossil Fuel-Based Cogeneration Projects | INR 4.99 | _ |
| Biomass projects | INR 7.30 | INR 7.44 |
| SHP (5 MW-25 MW) | INR 3.66 | INR 3.92 |
| SHP (1 MW-5 MW) | INR 4.36 | INR 4.64 |
| SHP (500 kW-1 MW) | INR 4.86 | INR 5.14 |
| SHP 500 kW and less | INR 5.36 | INR 5.64 |
| Wind Energy projects | INR 2.87 | – |
| Utility-Scale Solar PV Projects | INR 2.72 |
– |
| Rooftop Solar PV projects | INR 3.22 | – |
The above mentioned solar rooftop tariff will be applicable from August 1 2018 to March 31 2019 and for wind projects between August 1 2018 – March 31 2019 for ?a period of 13 years from the date of commissioning. However, in a recent project auction base tariff of INR 2.52/kWh was discovered (INR 0.35/kWh less than the new generic tariff).
In case of SHP, the above-mentioned tariffs will be applicable between August 1, 2018, and March 31, 2019, for 35 years (with capacity up to 5 KW) and 13 years for SHP with a capacity greater than 5 MW and up to 25 MW.
Recently Maharashtra also announced its final regulations for the forecasting, scheduling and deviation management regulations in July 2018.
]]>The explanatory ruling came as a result of responding to a petition filed by Cleanmax Solar to grant net metering permission for a 991 kW rooftop solar photovoltaic (PV) project at Asahi India glass limited situated at MIDC – Taloja, Raigad Maharashtra. Asahi was a customer of MSEDCL with a contract demand of 7500 kVA connected at 100 kV. Asahi also availed partial open access at 3,000 kVA from traditional energy under a group captive arrangement from Sai Wardha Power Generation Limited. In 2017, Asahi made an application for Net Metering arrangement for the Rooftop Solar Photovoltaic system under the rooftop solar regulations 2015.
After listening to both the party’s petition the commission came to a decision that…
“Net metering and Open Access are two different sets of arrangements for different eligible consumers and its Regulatory framework also has been provided by the two different Regulations. If these two arrangements are mixed up then there are various issues related to Grid security, accounting, billing, settlement etc. Hence, the Commission has made Net Metering Regulations for “below 1 MW” and Open Access for “1 MW and above” and cannot avail simultaneously by same consumer”.
Hence denying Cleanmax’s plea.
One of the reasons for the commission to take this decision was their concern for grid security due to which the DISCOMs would have to go into distribution network contingencies and other related issues to Open Access and Net Metering Simultaneously. ]]>
The valued for tariff decided for wind energy projects is as follows:
The order can be accessed here.
In the Draft Generic Tariff Order for FY 2016-17, the normative Capital Cost for the Solar PV power projects for FY 2016-17 was not declared by CERC and accordingly, the Commission proposed to consider the same Capital Cost of Rs. 605.85 lakh/MW for the Solar PV Projects to be commissioned in the period from 1 April, 2016 to 31 March, 2017.
The graph below gives comparison of Generic Tariffs for Solar Projects in the period from 2016– 21017 to the previous year. The tariff has been determined with AD benefits depending on the type of solar project as follows.:
The Generic Tariffs for Wind Energy Projects in the period from 1 April, 2016 to 31 March, 2017 have been determined as follows. ?The discount factor for levelisation of Tariff for Wind Energy Projects works out to 10.54%.
The Commission has invited Comments, suggestions and objections from the public and stake-holders, including RE Developers, Distribution Licensees, MEDA, electricity consumers, etc. are on this draft Suo Moto Order.
The Order can be accessed?here.
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The key changes in the regulation are:
- Allowing sourcing of power from multiple sources.
- Allowing sourcing of power from power exchange.
- Day ahead open access- The application for grant of day ahead shall be made only 1 day prior to the date of scheduling (Before it was 2 day)
- Consumer shall install Special Energy Meter (SEM).
- The draft OA regulation had proposed that a consumer having Contract Demand of 500 kW and above will be eligible for OA. However, in the final regulation the existing limit of 1MW has been retained. Had MERC lowered the limit, it would have potentially resulted in a much larger OA market in Maharashtra.
- Banking of Renewable Energy is introduced-
6.1.??????????? ?Credit of banked energy is not permitted during the months of?? April, May, October & November.
6.2.?????????? Credit of energy banked during other months is as per the energy injected in the respective TOD (Time of Day) slots.
6.3.?????????? Energy Banked during peak TOD slots can be credited during off-peak TOD ? slots whereas energy banked during off- peak TOD slots cannot be credited during?peak TOD slots.
Illustration: Energy banked during:
- Night off-peak TOD slot (2200 hrs. – 0600 hrs.) may only be drawn in the same TOD slot.
- Off-peak TOD slot (0600 hrs. – 0900 hrs. & 1200 hrs. – 1800 hrs.) may be drawn in the same TOD slot and also during Night off-peak TOD slot.
(The energy banked during night off peak and off-peak shall not be drawn during morning peak and evening peak)
- Morning peak TOD slot (0900hrs – 1200hrs) may be drawn in the same TOD slot and also during off-peak and Night off-peak TOD slots.
- Evening peak TOD slot (1800hrs- 2200hrs) may be drawn in the same TOD slot and also during Off-peak and Night off-peak TOD slots.
Impact of the Regulation
MERC has proposed a progressive open access regulation. Consumers in Maharashtra has faced various problems in the past to avail the power through open access such as power from one source only, revision of contract demand and banking of renewable power.
Multiple sources will increase the competitiveness in the market and it will promote the open access. It will also help the renewable sector to boom in Maharashtra as the rate will become more competitive.
Banking of non-firm power will be a boon for the renewable sector mainly solar. As per the credit table depicted above, the generated units in the off-peak and morning peak time can be adjusted in the peak hours.
The regulation can be accessed?here.
- RPO % in FY 2016-17 is 11% in total (10% non-solar and 1% solar). This will increase to 15% by FY 2019-20 (11.5% non-solar and 3.5% solar)
- The regulations are broadly in line with the standard regulations of RPO across various states, except the following clauses:
- RPO is no longer exempt on co-generation power. The Statement of Reasons (SOR) accompanying the regulations refers to the National Tariff Policy as a reason for removing exemption from RPO on co-gen power.
- RPO is applicable only on consumption of conventional power. This is a significant deviation as the Electricity Act/ CERC/ other states require calculation of RPO on “total consumption”. By leaving out RE power from RPO calculation, Maharashtra risks providing double benefit to RE generators – it is possible that a consumer that consumes power from RE sources does not attract RPO provisions and at the same time claims offset of such RE power towards meeting RPO on conventional power.
- RPO is applicable on CPPs with installed capacity of 5MW or more and open access consumers with a contract demand of 5 MVA or more. This will leave out significant open access and captive capacity form the ambit of RPO applicability.
The regulation can be accessed?here.
]]>- Reduction of Eligibility limit from 1MW to 0.5mw
- Allowing sourcing of power from multiple sources
- Allowing sourcing of power from power exchanges.
A comparative analysis, with the previous Open Access Regulation, 2014 is given below:
- The open access consumers shall pay wheeling Charges, Cross Subsidy Surcharge and additional Surcharge as specified by the state commission in relevant orders.
- Open Access Customer having a load of 5 MW or above shall pay Reactive Energy Charges and also shall pay Standby charges for drawl of power by open access consumer.
The?Honorable?commission has invited comments and suggestions from various stakeholders on the same, to be submitted till 8th October 2015.
In our opinion, MERC has?proposed?a progressive open access regulation. In the recent past, consumers in?Maharashtra?have?faced?various issues?and?problems of availing open access (for example, allowing open access only from one source and reduction in contract demand as a result of open access). The draft regulations seeks to do-away with such restrictive practices.
Further, lowering the limit of open access eligibility to 0.5MW and allowing sourcing power exchanges will help consumers and deepen the market.
Clear banking provisions and wider eligibility will also be beneficial for renewable energy projects ?and is likely to result in higher development of RE projects as?Maharashtra?is a RE resource rich state.
?More details on the Regulation can be accessed here.
The previous MERC Open Access Regulation 2014 can be accessed here.
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