RERC publishes (Renewable Energy Obligation) (Fifth Amendment) Regulations, 2019

Rajasthan Electricity Regulatory Commission (RERC) recently announced (Renewable Energy Obligation) (Fifth Amendment) Regulations, 2019, which shall come into effect from 1st April 2019 provided that the revised RPO for FY 2018-19 shall become applicable from 1.04.2018. The commission in this amendment will fix the minimum percentage of the total consumption of electricity in the area of the distribution licensee for the purchase of energy from renewable energy sources taking into account availability of such resources & impact on retail tariffs. Further, the Ministry of New and Renewable Energy Sources (MNRE) is aiming to achieve 175 GW renewable energy until 2022 and hence has suggested the long-term trajectory of RPOs for non-solar as well as solar for the states & UTs.

Under the obligations notified by Ministry of Power (MoP) which are on the total consumption of the electricity by an obligated entity excluding consumption met by hydro sources of power & flexibility of 15% is also allowed to the obligated entities in the meeting of RPO from either of their solar or non-solar power.

Earlier, the Commission had fixed the RPO targets for FY 2017-18 and FY 2018-19 in line with MoP, where there was a steep increase as compared to the RPO trajectory specified for earlier years. It was observed from the data submitted by the  Rajasthan Discoms regarding RPO target vis-a-vis achievement from FY 2013- 14 to FY 2017-18 (provisional) that actual achievement was less than the targets, in particular for FY 2017-18, the gap was huge. Considering that in addition to making up for the past shortfall in meeting RPO directed in the order dated 14.11.2017. It is observed from the past experience that when the RPO was increased steeply a huge gap was observed in the achievement of RPO targets by the state discoms even for FY 2017-18.

Hence, in the current amendment, the commission has decided that the RPO trajectory may be so designed & notified in such a manner that it becomes practical for the discoms to achieve their targets. Considering a CUF for solar-21%, wind-20% & Biomass-80% with a target addition of 700-750 MW of solar & 250-300 MW of non-solar.

RUVNL on behalf of the discoms have requested that a total RPO of 21% may be achieved by the year 2023-24 instead of 2021-22 and the trajectory may be modified from the year 2018-19 onwards as stated above.

Amendment in Regulation 4 of the Principal Regulations:source: RERC

Provided that on the achievement of Solar RPO Compliance to the extent of 80% and above remaining shortfall if any, can be met by excess Non-solar energy purchased beyond specified Non-solar RPO for that particular year.

Provided further that on the achievement of Non-Solar RPO Compliance to the extent of 80% and above, remaining shortfall if any, can be met by excess solar energy purchased beyond specified Solar RPO for that particular year.”source: RERC

The sub-regulation (3) shall be substituted with the following: “(3) The RE Obligation for a distribution licensee including deemed licensee for FY 2018-19 and onwards shall be as under:source: RERC

Provided that the energy generated from Biomass, Biogas, Biomass Gasifier and Municipal Solid Waste (MSW)/Waste-to-Energy (WtE) based sources shall be covered under the Biomass category: Provided further that in case of insufficient availability of energy from Biomass-based sources during a year, the shortfall can be made good by Wind Energy and to this extent, RPO for wind would be increased.

Provided also that on the achievement of Solar RPO Compliance to the extent of 80% and above remaining shortfall if any can be met by excess Non-solar energy purchased beyond specified Non-solar RPO for that particular year.

Provided also that on the achievement of Non-Solar RPO Compliance to the extent of 80% and above, remaining shortfall if any can be met by excess solar energy purchased beyond specified Solar RPO for that particular year.”

 

RERC announces draft REC regulations (third amendment) 2019

RERC announces draft REC regulations (third amendment) 2019

Rajasthan Electricity Regulatory Commission recently announced the draft Renewable Energy Certificate (REC) & Renewable Purchase Obligation (RPO) regulations 2019 (third amendment). The amendments are stated as below:

Original regulation Amendments
10. Pricing and purchase under REC mechanism

(2) The effective electricity component price during the operating period would be as under (a) For distribution licensee(s), shall be equal to the Pooled Cost of Power Purchase. For determination of Pooled Cost of Power Purchase for a particular year, Discoms shall submit a petition for computation of Pooled Cost of Power Purchase to the Commission latest by 30th June of the following year. The Commission shall issue an order relating to the Pooled Cost of Power Purchase within one month of acceptance of the petition. Till the issue of order regarding the Pooled Cost of Power Purchase, the Pooled Cost of Power Purchase of the previous year shall continue to be valid as Provisional Pooled Cost of Power Purchase. After the issue of an order for the Pooled Cost of Power Purchase by the Commission, the difference with the Provisional Pooled Cost of Power Purchase shall be adjusted equally in the bills of the next four months or as decided by the Commission in the order determining the Pooled Cost of Power Purchase for that year. (b) For sale to Open Access Consumers or a Captive User, it shall be at a mutually agreed price

“(2) The effective electricity component price applicable w.e.f. 1.04.2019 to the projects commissioned up to 31.03.2019 shall be as under The electricity component price of energy supplied by a RE project to distribution Licensee(s) shall be Rs 2.67/unit. This rate shall remain applicable for its remaining useful life, for which PPA shall be extended accordingly. Provided that such projects may also use such electricity for self-consumption or sell electricity at a mutually agreed price to other entities.”
10.  Pricing and purchase under REC mechanism

(4) Purchase of electricity component from the Renewable Energy having been issued REC would not be counted in fulfillment of RPO and would not be mandatory. Provided that with the tor, the pricing methodologies for electricity component and REC shall be reviewed at periodic intervals as may be considered appropriate by the Commission

(4) “Purchase of electricity component from the Renewable Energy having been issued REC would not be counted in fulfillment of RPO.”
12. Pricing options for new renewable energy projects to be commissioned during the Operating Period

(1) All the new renewable energy projects commissioned during the Multiyear Control Period, after coming into force of these Regulations and which do not have PPA prior to coming into effect of these Regulations for purchase of Renewable Energy shall have the option of either following the tariff structure and other conditions as stipulated in the RERC (Terms and Conditions for Determination of Tariff) Regulations, 2009 as amended from time to time, subject to agreement of licensee or adopt pricing of the REC mechanism.

“ In case RE generator under REC mechanism wishes to opt out for REC mechanism and if the Discoms agree to purchase the renewable energy they may extend the PPA at the tariff not exceeding Rs 3.17/unit for remaining useful life of the plant and in such case the electricity purchased would be counted towards fulfillment of RPO and RE Generator would not be entitled to REC Certificate. Provided that above provision of the regulation shall not be applicable to an entity whose accreditation/registration has been a progressive development of the electricity revoked by the State / Central Agency.”

Tamil Nadu announces final solar energy policy 2019

Tamil Nadu Energy Development Agency announced the final Tamil Nadu solar energy policy 2019. The policy intends to include solar energy in demand side management, energy conservation, energy efficiency, smart grids etc.the policy also talks about encouraging public-private partnerships, joint ventures etc. to accelerate solar energy projects, manufacturing facilities, and R&D.

  • Tamil Nadu intends to have an installed capacity of 9,000 MW by 2023, of which 40% is intended to come from rooftop solar plants.
  • The policy is applicable to both utility & consumer category systems.

Utility category: where the objective is sales of solar energy to a distribution licensee or a third party or self-consumption at a remote location (wheeling). For these systems, the grid connection is through a dedicated gross metering interface.

Consumer category systems: where the objective is self-consumption of solar energy and export of surplus energy to the grid. For these systems, the grid connection is through a consumer service connection of a distribution licensee.

  • The tariffs will be based on market-based competitive bidding & net feed-in tariff decided by TNERC time to time.
  • TNERC may introduce Time of Day (TOD) solar energy Feed-in tariffs to encourage solar energy producers & solar energy storage operators to feed energy into the grid when the energy demand is high.

Types of solar plant models:

  • Upfront ownership: The purchaser of the solar system pays the supplier for the capital cost and takes ownership of the solar system.
  • Deferred ownership: The solar system is installed and operated by the supplier. The purchaser makes system performance-based payments to the supplier or leases the system from the supplier. System ownership is transferred to the purchaser on a mutually agreed date or is triggered by a mutually agreed event.

Incentives:

  • Rooftop solar plants will be exempted from electricity-tax for two years from the date of the policy.
  • Solar energy injected into the grid of the distribution licensee by solar energy producers who have no renewable energy purchase obligations (non-obligated entities), including the solar energy export by non-obligated electricity consumers, can be claimed by the distribution licensee towards the fulfillment of their Renewable Energy Purchase Obligations (RPO).
  • The government will provide land for the development of solar system manufacturing components in the state, components like solar cells, inverters, mounting structures, and batteries etc.

Grid connectivity and Energy evacuation:

  • For consumer category solar PV systems, the system capacity at the service connection point shall not exceed 100% of the sanctioned load of the service connection.
  • For high tension consumers, open access regulations of TNERC will apply, subject to the conditions imposed by SLDC. However, wheeling for less than 1 MW shall not be allowed.

TEDA and TANGEDCO will be the leading government agencies in implementing the new solar policy in the state of Tamil Nadu.

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