Chhattisgarh State Electricity Regulatory Commission (Intra-state Availability Based Tariff and Deviation Settlement) Regulations, 2016

The Forum of Regulators (FoR) had come up with model regulations for forecasting and scheduling at the intra-state level last year. In line with that Chhattisgarh recently came up with its Intra-state deviation settlement Regulation.

Executive Summary:

  • The regulations will be applicable on all wind and solar generators with individual or combined capacity of 5MW and above that are connected to the state grid
  • Deviation will be calculated on the basis of available capacity

The draft regulations are in-line in every aspect with the model F&S regulations released by FoR earlier. However, the model FoR regulations had proposed a 10% deviation band for new projects and 15% for existing projects. Chhattisgarh has proposed a 10% band for all projects for both Solar and Wind.

Detailed Analysis:

Forum of Regulators have recently come up with model 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, and b) maintaining grid stability and security.

Highlights of the regulation are below: -

  • All solar and wind generators connected to State grid have to provide day-ahead and week-ahead schedule – Revisions can be made on a one-and-half hourly basis.
  • Payment for generation shall be as per actual generation (this is different from the inter-state regulation, where payment is on the basis of scheduled generation).
  • The deviation slab has been kept as (+/-) 10% for all generators at Intra-state level.

Settlement calculation or Intra-state sale of power is as follows:

In case of Intra-State transmission, Penalty Mechanism for wind/solar generators:

The regulation can be accessed here.

 

Himachal Pradesh Electricity Regulatory Commission (Renewable Power Purchase Obligation and its Compliance) Regulations

The Ministry of Power (MoP) had recently declared the national RPO trajectory.  The order had enlisted the yearly RPO trajectory for both non-solar and solar power purchase from 2016-17 till 2018-19. Following the steps of MoP RPO trajectory, Chhattisgarh and now Himachal Pradesh have notified its third amendment to the Renewable Power Purchase Obligation and its Compliance, regulations.

The regulation will be applicable to:

  • The distribution licensee
  •  Or any person, consuming electricity procured from conventional sources through open access third party sale,
  • Or person who installs Captive Generating Plant, with an installed capacity exceeding 5 MVA, requirements also.

The table below shows the Minimum Quantum of Purchase in percentage (%) from renewable sources (in terms of energy in kWh) of total consumption:

The said obligations will be applicable on total consumption of electricity by an obligated entity, excluding consumption met from hydro electric sources of power.

Analysis:

  • RPO to be applied on co-generation power
  •  Consumption from hydro sources to be excluded
  • RPO % is proposed to increase steeply – from 11.50% in 2016-17 to 17% in 2018-19 line with the MoP Trajectory. However, in effect the overall RPO of the HP will fall as 77% of the power consumed in the state comes from hydro sources.
  • In year 2011, HPERC had come up with a ten year long RPO Trajectory ranging from 10% (including both solar & non solar) in 2011-12 to 19% in 2021- 22. The commission now proposes to increase its RPO target in comparison to its earlier trajectory. However, in 2016-17, RPO % is will be reduced. The graph given below gives a comparison between the MoP recent RPO Trajectory and HPERC’s earlier RPO Trajectory

The graph given below gives a comparison between the MoP recent RPO Trajectory and HPERC’s earlier RPO Trajectory:

 

As the graph indicates HPERC has increased its RPO target by 2.25% to be achieved by 2018-19. Since Himachal Pradesh mostly thrives on the energy produced through Hydro Power, the state could be a beneficiary since RPO is excluded from RPO obligation as per the regulation.

The graph below shows the total and type of energy consumption by the state of Himachal Pradesh. The data has been derived from CEA Report.

 

Almost 3/4th energy of the total consumption comes from the Hydro Power. Its an added advantage for the state that RPO is exempted from the power consumed through Hydro sources, thus this in turn will reduce the cost of power from the state.

The regulation can be accessed here.

The CEA Report could be accessed here

 

Madhya Pradesh Electricity Regulatory Commission (Cogeneration and Generation of Electricity from Renewable Sources of Energy) (Revision-I)

Madhya Pradesh Electricity regulatory Commission (MPERC) recently ordered amendment for its Cogeneration and Generation of Electricity from Renewable Sources of Energy Regulation 2010.

The new amendment has defined the minimum quantum of electricity to be procured by all the Obligated Entities from Co-generation from Renewable Sources of electricity expressed as % of their total annual procurement of Electrical Energy.

The new amendment has excluded consumption met from hydro sources of power during the following Financial Years given as under:-

 

As the Ministry of Power (MoP) declared the national RPO trajectory recently, all the states are expected to declare their RPO trajectory soon.

The MPERC Draft can be accessed here.

RERC Draft Solar Tariff Policy for FY 2016-17

Rajasthan Electricity Regulatory Commission(RERC) recently  proposed a levelized tariff under a draft regulation (RERC Terms & Conditions for Determination of Tariff for Renewable Energy Sources Regulations, 2016) issued for Solar power generators of the state. The brief summary of the proposed draft is as below:

The graph below depicts the change in the tariff from the past year:

RERC has invited the comments and suggestions by 13th September 2016 on the same. The tariff proposed for FY 16-17 is much lower than the tariff of previous year in case of both Solar PV and Rooftop Solar PV, and in case of Solar Thermal Power Plants. It can be said that the reason behind the reduction in the tariff of Solar PV is because of decreasing prices of Solar PV cells and overall project execution cost.

The regulation can be accessed here.

JERC Determines Generalized Tariff for Solar Projects

The Joint Regulatory Commission for Goa and Union territories (JERC) has recently determined the solar tariff for ground-mounted and rooftop solar projects for FY2016-17 and FY2017-18. 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 Pondicherry.

The Tariffs has been categorized on the basis of % of subsidies provided. 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.

Analysis of Regulation on Forecasting and Scheduling of Wind and Solar Generating Stations at State level in Andhra Pradesh

In the follow-up after the FOR – Model Regulation for the Intra State level projects, APERC has come out with a Draft Regulation on Forecasting & Scheduling for the Wind & Solar projects at Intra State level in Andhra Pradesh, based on the mechanism suggested in the Model Regulation. Earlier Odisha, Madhya Pradesh, Karnataka, Tamil Nadu, Rajasthan and Chhattisgarh had come out with their DSM Regulation on Forecasting & Scheduling of Wind & Solar.

Executive Summary:

  • Forecasting and scheduling will be mandatory for all the wind and solar generators connected to the AP State grid and connected via pooling stations irrespective of their capacity (MW) and date of commission of the plant.
  • Deviations will be calculated on the basis of Available Capacity (AvC).
  • The deviation slab has been kept as (+/-) 10% for all the wind and solar generators beyond which penalty is applicable at fixed rate as defined below. Whereas the deviation slab for plants commissioned prior to the effect of the regulations is kept at (+/-) 15%.
  • Settlement will be done through the “Qualified Coordinating Agency” or QCA, or the “Aggregator”.
  • SCADA & Telemetry data is to be mandatorily provided to SLDC. Protocols for the same shall be determined later by the SLDC through the detailed procedures.
  • Provision of six months for existing wind and solar generators to comply with the regulation from the date of publication of these regulations in the official gazette.
  • All the new wind and solar generators which shall be commissioned after six months from the effective date of the regulation shall comply these norms before commissioning of the project and connecting with the state grid.
  • 16 revisions allowed during the intraday with each revision effective from 4th time block.
  •  Payment for generation shall be as per the actual generation.

Detailed Mechanism defined for Deviation Settlement

In case of Intra-State transmission, Penalty Mechanism for existing generators:

In case of Intra-State transmission, Penalty Mechanism for new generators:

The regulation can be accessed here.

 

REC Trade Result September 2016

The month of September trading saw significant decrease in the demand for both Solar and Non-Solar RECs as compared to last month. The total transaction value stood at 37.5 Crores in comparison to 52 Crores last month.

Analysis of Trading:

Non Solar – The clearing ratio stood at 1.36% in both IEX and PXIL for Non Solar REC’s.  A total of 1, 75,525 RECs were traded this month as compared to 2, 58,891 RECs traded in last month, a decrease of 32%.

Solar – Clearing ratio stood at 0.8 % and 0.98% in IEX and PXIL respectively, with significant decrease of 20% in total demand of Solar RECs as compared to last month.

 

 

 

In contradictory to the total demand, this month also huge rise in the total REC issuance where the issuance increased by more than 5 lakhs as compared to the past month’s total issuance. This could be attributed due to the impact of CERC’s 4th amendment to RECs regulations.

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