MERC Reduces MSEDCL distribution Tariff

The Maharashtra Regulatory Commission (MERC) in a notification dated June 27, 2015, has calculated the Distribution Tariff for Maharashtra State Electricity Distribution Company Limited (MSEDCL), which will be effective from 1st June 2015 onwards.

The commission in the present order has surprisingly reduce the tariffs for Industrial and commercial consumers. The details of the tariff for commercial and Industrial consumer are in the table below:

A graph on category-wise reduction in tariff is below:

The Commission has approved Wheeling Charges for 33 kV, 22/11 kV and LT Level as Rs. 0.15 per kWh, Rs. 0.83 per kWh and Rs. 1.42 per kWh respectively.

The reduction in the tariff for HT industrial consumer is surprisingly substantial, which is in the range of 11-17%, and the same for HT commercial consumer has been reduced by 10-11%. This reduction in tariff will have a considerable effect on the Open access market.

The Significant reduction in tariff for industrial and consumer tariff has been given after various industrial and commercial consumers expressed their views that the tariffs for industrial and commercial consumers are higher in Maharashtra in comparison with neighboring States.

The commission in the order has also stated that as it has been observed that the current formula for CSS has been a major hurdle for the consumer wishing to avail Open Access, so current formula for CSS will be amended and the commission will deviate from current formula. CSS reduction will open new doors for open access, but it to be seen whether the revision in CSS will have positive impact on OA or not.

The order can be accessed here.

REC Trade Results – June 2015

The June trade session remained below expectations compared to May’15 month performance. However, if we compare the performance with Jun’14, the response was still far better. After the announcement of an important judgment by Supreme Court, the market looks upbeat and we can expect better demand in upcoming trade sessions.

Analysis of Trading:

Non-Solar – Total 161,845 RECs were cleared in this trading session. IEX and PXIL had a clearing ratio of 1.6% and 0.84% respectively. Total RECs redeemed this month was approx. 1 Lakh RECs lower w.r.t May’15.

Solar - RECs redeemed this month remained at 23,648 RECs. The clearing ratio was 1.4% and 0.17% in IEX and PXIL respectively. Solar REC traded this month were approximately 60 (sixty) thousand lower w.r.t to May trading session.

The REC trade results in the FY 2015-16 are summarized below for your reference.

MPERC Proposes to Revise Open Access Regulation

The Madhya Pradesh Electricity Regulatory Commission (MPERC) on 18th June 24, 2015 has proposed a new regulation for open access power transactions in the state. The proposed regulation will revise the previous open access regulation 2005. The regulation will come into force from the date of publication in the official Gazette.

The regulation will apply to open access customers for use of intra-state transmission system and distribution system, including systems when it is used in conjunction with inter-state transmission system.

The open access will be allowed for Non-conventions Energy sources, Captive Generating Plants of Conventional Energy, and to all other open access consumers with load of 1MW and above.

Categorization of Open Access Consumer:

  • Long-term Open Access: Any consumer availing open access for a period of exceeding 12 years but not exceeding 25 years.
  • Medium-term Open Access: customers availing open access for a period exceeding 3 months but not exceeding 3 years at a time.
  • Short-term Open Access: Consumer availing open access for a period up to one month at a time.

Charges for Open Access: The commission from time to time will fix (calculate) various charges to be payable by the open access consumer to the distribution licensee.

The various charges payable by the open access consumers will include Wheeling Charges, Transmission Charges, and Imbalance Charges.  The OA consumer will also bear Reactive Energy Charge, Interconnection expenses, Operating Charges, additional surcharge and any other charge levied by the commission.

Losses - Apart from this, the open access customers will have to bear energy losses of transmission system and distribution system as approved by the Commission from time to time.

Metering - Open access customers will be responsible for providing ABT compatible interface meters as main meters based on voltage, point and period of supply and tariff category.

Communication facility: The communication facility to be provided by the customer will be defined by SLDC on a case-to-case basis. The open access customer shall have to provide all such facilities.

The more details about procedure and guidelines can be read in the proposed regulations here.

HPERC Proposes Tariff for Solar Projects

The Himachal Pradesh Electricity Regulatory Commission (HPERC) has notified a draft on 16th June 2015 for the calculation of solar energy tariff in the state. The proposed tariff will be applicable for the projects where PPAs are signed on or before 31.03.2016 and the entire capacities covered by the PPAs are commissioned on or before 31.03.2017.

The details of the proposed tariff are given in the table below:

The proposed tariff by the commission is slightly higher (approx. 1.6%) than the tariff determined by CERC, which can be considered as a promotional move by the commission to encourage the slowly growing sector in the state.

The comments and suggestions on the proposed draft has been invited by the honorable commission, which can be submitted by any interested party or industry stake holders latest by 16th July 2015.

The commission order can be accessed here.

JERC for Goa and UT’s Determines Tariff for Solar Projects

The Joint Regulatory Commission for Goa and Union territories (JERC) has determined the solar tariff for ground-mounted and rooftop solar projects. The tariff will be applicable for projects in the State of Goa and the Union Territories of Andaman and Nicobar Islands, Chandigarh, Dadra & Nagar Haveli, Daman & Diu, Lakshadweep, and Puducherry.

A brief summary of the tariff determined by the commission is given in the table below:

The commission has finalized the tariffs based on the amount of subsidies being availed by a generator. For the projects availing higher subsidies (being offered by various institutions and Govt. of India); the tariff offered will be on the lower side and vice versa.

The Commission order can be accessed here

JERC Finalizes Solar Ground Mounted & Solar Rooftop Regulation

The Joint Regulatory Commission for Goa and Union territories (JERC) has notified its final copy of regulation for solar ground-mounted and rooftop solar projects. The notified copy has been published in the official gazette also, so the regulation has already come into force. The regulation will remain in force for a period of three years unless revised or extended by the commission.

Solar Rooftop Regulation:

This regulation will extend to the State of Goa and the Union Territories of Andaman and Nicobar Islands, Chandigarh, Dadra & Nagar Haveli, Daman & Diu, Lakshadweep, and Puducherry.

  • Solar PV and I or Solar Thermal power projects of more than 500 kWp and Rooftop Solar Power projects of more than 1 kWp capacity but less than 500 kWp, rooftop projects with higher capacities can be accepted under stable grid conditions.
  • The rooftop project can be developed under Gross Metering or Net metering mechanism.
  • Third party ownership of the rooftop systems is allowed such generation will be eligible for availing open access.
  • The target capacity for the solar generation would be equal to solar power obligations in the respective territories as per Procurement of Renewable Energy Regulations of the Commission.
  • The Net Metering consumer will receive bills with the difference between imported and exported energy being shown clearly.
  • At the end of each settlement period, a maximum of 100% of the solar energy generated from rooftop system will be adjusted against the energy imported from the distribution system.
  • The settlement period would be six month I.e.  From April to September and October to March.
  • The solar power generators are exempted from payment of any charges towards wheeling, banking, line losses and cross-subsidy to the extent of energy produced.

Solar RPO Applicability

  • Net Metered or Gross Metered Consumer: All energy produced by the solar project (self-consumption and excess) shall be accounted towards RPO of the Discom.
  • Open Access Consumer: In case the OA consumer and the solar power generator both are obligated entities, then only one of two would be able to claim RPO compliance for the solar energy generated.

Eligibility for REC’s

  • Net-metering injection is not eligible for REC.
  • Sale of power to Discom at APPC will be eligible for REC, as per CERC REC regulation 2010 and JERC regulations.

The notified regulation can be accessed here.

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GERC (Gujarat) Proposes Tariff for Solar Projects

The Gujarat Electricity Regulatory Commission (GERC) in a draft notified earlier this month has proposed tariff for the solar projects. The Tariff proposed in the Discussion Paper will be applicable to the projects commission during July 1, 2015 to March 31, 2018. The commission through a separate public notice has invited comments and suggestions from the interested stake holders by 22nd June 2015.

The details of the tariffs proposed are in the table below:

Below is the graph for comparison between tariffs of CERC and GERC for previous years:

Wheeling Charges:

  • For Injection at 66 kV voltage level and above, transmission charges as applicable to normal open-access customers and transmission and wheeling loss @ 7% of the energy fed into the grid.
  • For Injection at 11 kV or above and below 66 kV, wheeling in the area of the distribution licensee will be allowed on payment of distribution loss @ 3% of the energy fed in to the grid. In the other case of wheeling within the State but in the area of a different distribution licensee will be allowed on payment of transmission charges as applicable to normal Open-Access Customers and transmission and distribution loss @ 10% of the energy fed in to the grid.

Cross subsidy Charges: As a promotional measure for solar power no cross-subsidy surcharges would be levied in case of third-party sale.

It is worth noticing that GERC had calculated its tariffs back in 2012 for coming years I.e. FY 13, FY14 & FY 15, while CERC revises its tariffs every year. The difference visible between tariffs of CERC and GERC for previous years is because the GERC hasn’t revised its tariff after 2012 and it is that period during which the capital cost of the solar modules fell drastically and so the difference didn’t reflect on the tariffs of GERC as it wasn’t revised.

Now the GERC has proposed new tariff which is quite lower (approx. 5.5%) than the tariff finalized by the CERC. A public hearing on the matter will take place on 29th June 2015.

Rajasthan Finalizes Wind Tariff for FY 15-16

The Rajasthan Electricity Regulatory Commission (RERC) has finalized the tariff for wind energy projects; it will be applicable for FY 15-16. Earlier the commission notified a draft and invited comments and suggestions from the stake holders.  The details of the tariff finalized are given in the table below:

Below are the graph for tariffs finalized by RERC and CERC and a comparison between them.

The Commission (RERC) in its order has reduced the tariff by 3.23% compared to previous year, which appears to be inspired by tariff of CERC (reduced by 2.02%). In the previous years the tariff for wind energy in Rajasthan was one of the highest in the country, and was an attractive destination for industry.

The commission order can accessed here.

MPERC Proposes RPO Targets till FY 18-19

The Madhya Pradesh Electricity Regulatory Commission (MPERC) through a draft notification dated 30th May 2015, has proposed the amendment to RPO regulation 2010. The draft amendment proposes RPO targets for the upcoming years (till FY 18-19).

The details of the RPO targets being proposed are as in the graphs below:

Earlier on 15th May 2015, the commission in a notification finalized the RPO targets for FY 15-16 at 7% (Solar-1%, Non Solar-6%) and now the commission has come with its draft which proposes RPO targets for coming years. The commission through a separate public notice has invited comments and suggestion on the said draft latest by 22nd June 2015.

The commission’s notification is available here.

Telangana Solar Power Policy 2015

The Government of Telangana has recently announced its new solar policy. The new policy will be known as The Telangana Solar Power Policy 2015. The new Policy will come in force from the date of issue and will remain in operation for five (5) years and all the Solar Projects that are commissioned during the operative period will be eligible for the incentives declared under this policy, for a period of ten (10) years from the date of commissioning.

Objectives of the Policy:

The objective of the Policy includes long term energy security, sustainable fuel for energy generation, promoting solar parks in the state and promoting investment in the solar sector. The policy also targets on promoting distributed and decentralized generation and off-grid solar applications.

For availing benefits under this policy, power generated through solar projects has to be consumed within the state.

Applicability of the Policy – This solar policy shall be applicable for the following solar projects set up within the state –

1)      Solar Power Projects:

a) Grid connected solar power projects based on both Photo Voltaic (PV) as well as Solar Thermal technologies

  • Projects set up for sale of power to TSDISCOM’s.
  • Projects set up for sale of power to third parties within the state.

b) Projects set-up for captive generation/ group captive generation (including those funded and owned by developers).

2)      Solar Roof-top Projects (SRPs) (Grid connected and off grid) – This includes projects which are funded and owned by developers.

3)      Off grid applications.

4)      Any other project which is established based on MNRE/GOI Schemes as amended from time to time.

5)      Solar Parks.

 Incentives Offered:

  • Exemption from the payment of Electricity Duty.
  • Deemed Industry Status will be provided.
  • Pollution Clearance.
  • Facilitation of expeditious approvals through single window clearance.
  • Open Access will be allowed.
  • Exemption from Land ceiling Act.
  • Deemed conversion to Non-agricultural land status.
  • 100% refund of VAT/SGST and 100% refund of Stamp Duty for land purchased for setting up solar project and/or solar park.
  • Exemption from wheeling Charges for captive use within the state.
  • Exemption from payment of Cross Subsidy Surcharge for third party sale within the state.
  • Banking for 100% of energy during all 12 months of the year with must run status for Solar Power Projects.
  • Deemed Public Private Partnership (PPP) Status..
  • Non Agriculture Status for the land where Solar Power Projects will be accorded.

The policy also mentions that solar parks will host solar manufacturing, R&D centers, training facilities and financial institutions within the solar parks.

Surprisingly the policy does not talk about the REC and RPO schemes and its benefits. Also it does not give any specific guidelines about the projects to be developed under REC mechanism, which appears to be serious shortcoming.

The policy offers good number of incentives to the project developer, in terms of tax relaxations, must run status, exemptions from various charges, single window clearance etc..

Considering the state, having a huge potential of 20 GW for solar energy generation, the policy might bring substantial investment in the state. Recently the state invited bids for 2000 MW of solar projects. Now as the policy is offering numbers of incentives to the stake holders, the projects in line might see good response from the investors and stake holders.

The final state solar policy can be accessed here.

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