Meghalaya: Net Metering and RE Tariff Regulation

Draft Net Metering Regulation:

Meghalaya State Electricity Regulatory Commission (MSERC) has on 11th November has notified the draft regulation for Grid Connected Solar Rooftop Systems. The regulation will be called as (Rooftop Solar Grid Interactive systems based on Net metering) Regulations, 2014.

The commission has presented the draft for the consultation and suggestions from the stake holders including consumers. The Regulation will come in force from the date of notification in the Official Gazette.

The regulation allows the consumers to install Solar Rooftop systems, and can generate electricity themselves. The Summary of the regulation is in the table below:

The commission has invited the comments and suggestion on the draft however no last date has been given.

The more details can be read in the Draft here.

RE Tariff Regulation

The commission on 11th Nov 2014, has finalized the Renewable Energy Tariff regulation. The regulation has a control period of 3 years (i.e. till 2017). The regulation will be called Meghalaya State Electricity Regulatory Commission (Terms and Conditions for determination of Tariff for Generation from Renewable Energy Sources) Regulations, 2014.

 The regulation will apply to all RE sources of generation.

More details can be found in the order here.

Contributed by Dheeraj Babariya.

MPERC Proposes Net Metering Regulation, 2014

Madhya Pradesh Electricity Regulatory Commission (MPERC) in its latest notification dated 26th November 2014 has proposed draft for Net Metering Regulation. The regulation will be known as MPERC (Grid connected Net Metering) Regulations, 2014. The regulation will come in force from date of notification in the official Gazette.

Under the guidelines of the regulation any consumer in the area of distribution licensee can install a Renewable Energy System, which shall be located in the consumer premises. The distribution licensee will offer provision of net metering to the interested consumers on a first come first serve basis.

The interconnection of the RE systems with the distribution network will be made as per technical standard defined by CEA.

The billing and Energy settlement will be based on the meter readings

  1. If the energy injected by the consumer is more than energy consumed by him then such surplus energy will be carried forward to the next billing period.
  2. If The Energy consumed is more than energy injected by the consumer in such case the distribution licensee will raise invoice for payment of energy consumed, after considering the previous energy credit balance.

Renewable Purchase Obligation (RPO): If the consumer is not an obligated entity then such quantum of energy consumed by the consumer will be qualify towards the RPO of the distribution licensee.

Applicability of Charges: The RE systems under this regulation are exempted from payment of wheeling, banking & cross subsidy charges.

Eligibility for Renewable Energy Certificate (REC): The issuance of REC will be as per CERC terms & conditions of REC regulation 2010.

MP as a state has slowly picked up in terms of Wind capacity addition, and with this regulation in place, the move is clearly towards making it a new solar destination. The Solar RPO in the state is 1% for FY 2014-15, which is relatively high compared to some other big states. The solar normal irradiance is in excess of 5.5 kWh/m2/Day, but only close to 350 MW installed capacity has been achieved so far out of a potential of more than 60 GW. With high incentives and favourable conditions, this regulation will help in significant amount of solar capacity addition.

The commission has invited comments and suggestion from the interested stake holders or individuals, if required a public hearing on the same will be held on 19.12.2014 at 11:00 AM in the Court Room of the Commission.

The public Notice and the Draft Net Metering is available on the links.

Our Previous Blog on MPERC order on RPO can be read here.

Contributed by Dheeraj Babariya

REC Trading Report November-2014

REC trading session of Nov -14 was conducted on 26th Nov 2014.  Below is a summary of the result:-

The Total Transaction of RECs were around 300 Million INR in current Trading session.

As inferred from closing and opening balance of REC inventory, it shows huge gap which is implying the overall lack of compliance and demand.

 Total RECs redeemed were higher this month than the previous month. Redeemed REC was around 1.97 Lakh.

The Total closing balance for the November Trading session was around 11.6 Million RECs.

In case of Solar the lack of demand was also due to release of the draft 3rd Amendment to REC mechanism by CERC last month.


Non Solar REC

The demand for Non Solar RECs stood at 1.96 Thousand RECs. The Total Transaction was close to around 294 Million INR. Non Solar REC demand has been steadily increasing from the past three months.

The RECs traded at their floor price of INR 1500.


Solar REC

The Solar REC shows a lack lustre demand response, though it was higher than the previous month but still it was less as compared to Supply. Total REC transaction value was around 10.7 Million INR.  The Solar RECs Traded at floor Price of 9300 INR.


JERC issues stern orders on RPO

The Joint Electricity Regulatory Commission (JERC) for Goa and Union Territories in its order dated 12th Nov 2014, has again showed strictness towards RPO compliance. In the order the commission has asked all the distribution companies to comply with their RPO and submit a report on the compliance.

In its earlier orders, the commission has given strict directions for RPO target compliance.

A brief summary of the hearing a below:

Secretary (Power) Goa: The commission after examining the report has said that the respondent has failed to submit facts and figures to meet its Solar & Non-Solar RPO, therefore the commission has asked the respondent to submit a detailed action plan to meet RPO, has also directed the respondent to meet RPO of all current and backlog years and to submit a quarterly compliance report to the state agency for verification & certification to the commission without fail.

Secretary (Power) UT Andaman & Nicobar: The commission has said that the respondent has successfully complied with the RPO targets, further commission has asked the licensee to continue submitting the quarterly compliance reports to the state agency.

Secretary (Power) UT Chandigarh: The commission after reviewing the report submitted by the licensee, said that the respondent has successfully complied with the RPO targets of 2nd quarter, the commission has further directed the respondent to regularly submit the quarterly compliance report.

Secretary (Power) UT Dadra & Nagar Haveli: The commission said that the respondent has not complied with the RPO targets and has submitted an incomplete report. The commission has asked the licensee to submit a detailed action plan by 09th Feb 2015 and to meet RPO targets. The commission has directed the Licensee to submit quarterly compliance report on regular basis to the state agency and to the commission without fail.

Secretary (Power) UT Daman & Diu: The commission observed that the licensee has not complied with the RPO current year and had not complied with the commission’s previous orders. It has found that there is huge back log of Solar and non-solar RPO of the respondent. The commission has directed the respondent to meet the RPO targets of current and the previous years and to submit action plan to meet the RPOs, and also submit quarterly compliance report.

Secretary (Power) UT Lakshadweep: The respondent did not submit the report of RPO for back log and current year. The commission said it has taken a serious note on non-appearance in the present petition and non-compliance of its order, and has asked respondent to meet all the back log and current RPO targets. The commission has also asked the licensee to submit a detailed plan to meet RPO targets.

Secretary (Power) UT Puducherry: The commission observed that the respondent has not complied with the RPO targets, so it has asked them to meet the current and back log targets. The commission has asked for a detailed action plan and submit the quarterly compliance reports.

Though the UTs do not significantly contribute much to the demand of electricity, JERC has taken their RPO compliance seriously, but has not yet imposed penalties on any of them.

The order can be accessed here.

MNRE to soon roll out draft Renewable Energy Act

According to an article in Indian Express, MNRE (Ministry of New & Renewable Energy) is planning to notify its first draft of Renewable Energy Act for comments and suggestions.

Earlier Prime Minister Modi led government decided to come up with a Renewable Energy Act by February 2014, just before the Renewable Energy Global Investors Meet and Expo (RE-INVEST) to be organized by MNRE.

In a statement given by Mr. Upendra Tripathy, Secretary, MNRE said that – “A technical committee is working on it and they are likely to get back to us with the first draft of the legislation in 20-25 days. After that we will put it out for inviting suggestions and objections from all stakeholders including the state governments. I believe clarity in policy will help bring in much needed investment into the sector in India. This legislation will be complementary to the Electricity Act”.

The Renewable Energy Act will be work as a milestone for promoting green energy and is expected to attract huge investment in the sector. The new govt. has already showed its intentions by setting a target of 100GW solar energy by the end of 2022, which previously was 20 GW under JNNSM.

The Electricity Act 2003 provided great impetus to the power sector in many aspects as it underwent major reforms over the period of last 10 years. It is to be seen how the Renewable Energy Act shapes up, as it is expected to resolve some of the major issues the industry is facing today and at the same time provide a platform for a new revolution in RE, with creation of ample opportunities for all stakeholders and long term road-map for RE.

Uttar Pradesh Solar Rooftop Policy 2014

Hon’ble Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA), has issued the Solar Rooftop Policy, aimed at Government, Public and Private institutions. The policy aims to promote solar energy generation for self consumption, while excess energy will be injected into the distribution network.

The State has vast potential for deployment of plants utilizing Solar Energy. The State receives daily average solar radiation in the range 5.0 kWh/sqm –5.5 kWh/sqm, in most of its part, offering opportunity for deployment of suitable solar energy facilities.

The main objectives of the policy are:

  1. Encouraging solar energy generation in the state and contributing towards sustainable development.
  2. Attracting investments in manufacturing, research & development in solar energy sector.
  3. Optimally utilising available solar resources & enabling stakeholders to reducing greenhouse gas emissions.
  4. Attracting private sector participation in solar energy sector.

The policy is summarized in the table below:

Overall the policy is good initiative by the state to promote Rooftop solar, but the paltry target of 20 MW by March 2017 does not clearly justify how the government wants private investments in manufacturing and projects, and neither its objective of promoting Sustainable Development to a larger extent. It will not meet its Solar RPO target of 1.5%, 1.75% and 2.00% for 2014-15, 2015-16 and 2016-17 respectively, with the solar roof-top capacity addition target of 20 MW. Buying solar power from states like Rajasthan, would suffice its Solar RPO.

There is no clarity on subsidies, and the interconnectivity with grid rests in the hands of Discoms who are required to submit procedures for the same. The procedures are to be approved by the commission. If Discoms and UPERC cause any delay on their account, it may become a huge deterrent for early projects implementation.

The winter months, starting from November and extending up to March, with foggy weather conditions, will not help the cause of Roof-top solar, but since the long summers are generally characterized by high Solar Irradiation and acute power shortages, Solar Rooftop might provide the right answer for small commercial and residential consumers.

However the government has assured target revision from time to time, and has set attractive tariffs for Solar Rooftop with 5 year commercial visibility.

The Policy can be found here.

Our recent blog on UP RE tariffs can be read here.

Contributed by Dheeraj Babariya.

KERC Proposes Tariff for Renewable Energy

The Karnataka Electricity Regulatory Commission (KERC) in its latest notification has released the conductive paper (draft) for determination of RE tariff. The tariff proposed will be applicable to the projects commissioned during 01.01.2015 to 31.03.2018.

The draft released is not applicable for Wind, Solar and Biomass projects (with air-cooled condensers), as their tariffs have been defined earlier.

 From the various costs proposed in the draft, it can be expected that the final tariff for Small Hydro, Bagasse based co-gen & biomass projects might come close to tariff defined by CERC for RE sources.

 The commission has invited the comments and suggestion on the draft latest by 20th November 2014.

 The draft notification can be found here.

 Our Previous blog post on Karnataka Biomass Tariff can be read here.

 Contributed by Dheeraj Babariya

REConnect: Wind Facilitator of the Year

And the success story continues!

Earlier last month, we were acknowledged with the ‘REC Facilitator of the Year’. Well we have added another feather to the crown.

We have been felicitated with the ‘Wind Facilitator of the Year’ award at the 4th Wind IPP Summit Awards 2014, held on 13th November in New Delhi.

Congratulations to Team REConnect for their perseverance towards providing excellent services to our clients..

We are highly obliged to our esteemed clients for providing us the opportunity to serve them, and will continue to serve the market even better.


Haryana Solar Policy 2014

The State Govt. of Haryana has approved the Solar Energy Policy 2014 on Sep 4th 2014. The policy mandates of giving huge benefits in terms of subsidies and incentives to the solar power generators. The policy has been brought in order to fuel up the solar sector in the state, which only contributes a total of 8 MW of Solar power.

A summary of the policy is given in the table below:

The targeted Areas in the policy are given in the table below:

The policy also talks about providing financial assistance to the beneficiaries, which shall be generated by levying and collecting solar cess on all categories of consumers of DISCOMs except agriculture consumers. Solar cess up to 2 paisa per unit shall be levied. The Policy has given huge subsidies for the off-grid solar applications, which seems to be a good initiative.

In addition to the policy, Hon’ble HAREDA had issued an order on 3rd September, mandating all categories of consumers/areas, to install or consume solar power as mentioned in the table below:

It will lay down detailed procedures for the enforcement of the same, at a later date.

The order can be accessed here.

 The policy can be accessed here.

Contributed by Dheeraj Babariya

UPERC Proposes RE Tariff

The Uttar Pradesh Electricity Regulatory Commission (UPERC) in its latest notification on 5th November 2014 has proposed draft for Renewable Energy Tariff. The Commission has invited comments and suggestions by 21st November 2014.

The details of the tariffs proposed are as below:

Uttar Pradesh has been in seeing very slow growth in RE generation. In case of solar, the tariff proposed by commission, is close to 15 % higher than the tariff finalized by CERC for FY 14-15. It can inferred that the higher tariff has been proposed to encourage the solar generation in the state.

The proposed draft can be accessed here.

Our Previous blog post on MNRE draft guidelines can be read here.

Contributed by Dheeraj Babariya

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