CERC notifies sixth amendment of inter-state sharing regulations of transmission charges & losses, 2010

In a recent notification issued by CERC on the (Sharing of inter-State Transmission Charges and Losses) amendments have been announced. These are the sixth amendment in the regulations and will come into effect in retrospection from 31.12.2018.  The below-stated amendments have come been notified in retrospection and will only be applicable to projects whose generation capacity has been declared under the stated commercial operation period.

The amendments in the regulations are as follow:

  • In regulation (7) of the principal regulations subclass (h) & subclass (z) the date “3.12.2019” will be substituted with “12.2.2018.
  • A new sub-clause (aa) will be included in Clause (1) of Regulation 7 of Principal Regulations as under:-  “ No transmission charges and losses for the use of ISTS network shall be payable for the generation based on solar and wind power resources for a period of 25 years from the date of commercial operation of such generation projects if they fulfill the following conditions.”

Provided such generation capacity has to be awarded projects via a competitive bidding process & should have been declared under commercial operations between 13.2.2018 till 31.3.2022.

Also, Power Purchase Agreement(s) should have been executed for sale of such generation capacity to all entities including Distribution Companies for compliance of their renewable purchase obligations.”

RE companies move to the high court requesting exemption from GST on RECs

Renewable Power companies have moved to the Delhi High Court requesting an exemption from Goods & Service Tax on the REC certificates. Currently, there is a GST rate of 12% applied to Renewable Energy Certificates. The Delhi Court had issued notices on Tuesday to the center, the GST council & the Central Board of Indirect Taxes and Customs in this regard.

According to the Counsel of the petitioner companies securities are defined neither as goods nor services under GST laws & hence are not taxable under the indirect tax regime.

As per the Securities Contracts Act regulations, under Clause 2 (h) Securities include “shares, scrips, stocks, bonds, debentures, debenture stock or other marketable securities of a like nature in or of any incorporated company or another body corporate;”

RECs fall under the definition of securities. “These scrips are traded on IEX (Indian Energy Exchange) and PXIL (Power Exchange India Limited) and are electricity derivatives,” the Counsel head believes.

Currently, since the GST is levied on the RECs, RE companies are unable to trade Renewable Energy Certificates if they have incomplete GST registration (KYC) in turn unable to reach their REC obligation. Further, apart from being a financial burden, GST is an operational burden. Also, since there are multiple parties involved in the trade process (Exchanges, sell&buyer, and trading members) it becomes an overwhelming task to understand the GST impact on each of them. This makes REC trading a tedious process.

HPERC announces (Rooftop Solar PV Grid Interactive System based on Net Metering) Order, 2019

Himachal Pradesh Electricity Regulatory Commission recently issued a notification for the order on the Rooftop solar PV Grid Interactive System based on net-metering 2019. The summary of the order is as below:

Applicability: The order will be applicable to all the domestic supply consumers with an approved Letter of Approval post 15th November 2018, as per HPERC (Rooftop Solar PV Grid Interactive System based on Net Metering) Regulations, 2015 and who have thereafter installed such system.

This order will be applicable only in such cases where the domestic supply consumer installs the solar rooftop photovoltaic (PV) grid interactive system based on net metering.

In case of a net-metering plant, the distribution licensee will pay per kWh rate to the domestic supply consumers for the excess energy generated. Further, the same will be applied to ground-mounted solar PV plant from 5MW capacity located in the state. The credit will be equal to 30% of weighted average/kWh rate which the distribution licensee has purchased from the generator.

KERC notifies APPC rate for 2019-2020 & truing up of 2018-2019

Recently Karnataka notified the provisional APPC cost for FY 2019-20 & true up the Average Pooled Purchase Cost of 2018-19. The difference of INR 21 paisa/unit will be paid by the ESCOMs to the RE generators concerned in three equal monthly installments to the extent of energy supplied under APPC during the period from 1st April 2018 to 31st March 2019.

If we look at the price trend since 2015, there has been an upward pattern in the APPC rate of Karnataka. This trend will divert several generators to the REC + APPC route in the coming year.

 

TNERC issues order on Rooftop Solar generation

Tamil Nadu Electricity Regulatory Commission recently issued an order on rooftop solar generation. This comes after the Tamil Nadu Solar Policy 2019 announced a target of achieving 900 MW of solar energy till 2023, out of which 40% is set to be achieved from consumer category solar energy systems.

Applicability

According to the order on the new scheme of rooftop solar generation, consisting of solar net feed-in consumer category will be applicable to all the new applicants. The effective date of commissioning of the order is 25th March 2019. The specifications described in the order are applicable to all the new consumers and the existing consumers under the net metering scheme will continue to be under the provisions of Order No.3 of 2013 dated 13.11.2013.

Eligibility

Consumers under Low Tension category except for Hut and Agricultural category of the tariff.

Permissible maximum capacity for an eligible consumer

The maximum capacity of solar rooftop generating a plant that an eligible consumer can install shall be up to 100% of his sanctioned/contracted demand with the distribution licensee.

Metering

The consumers under the solar net feed-in scheme will have to install two meters. One for measuring solar power generation and the other to measure import & export of energy.

Commercial arrangement

  • The electricity generated by the solar rooftop power plant shall be utilized for self-consumption by the consumer. The surplus energy generated that is unutilized and that flows to the grid and recorded in the export register of the meter shall at the end of the billing period be calculated at a tariff fixed by the commission and credited to the consumer’s account.
  • The price of energy purchase exported by the solar generator during a financial year will be 75% of the pooled cost of power purchase notified by the commission.

Restrictions on grid penetration

At a local distribution level, the connectivity to rooftop solar systems will be restricted to 90% of the distribution transformer capacity on first come first serve basis.

Renewable Energy Certificates and Renewable Energy Obligation

Net injection of power is not eligible for REC. The energy generated from Rooftop Solar Power Plant will be accounted towards the fulfillment of RPO obligation of distribution licensees.

The order is to come in effect on and from 25th March 2019.

Tamil Nadu announces (Forecasting, Scheduling and Deviation settlement and Related Matters for Wind and Solar Generation) Regulations, 2019

Executive summary:

  • The accuracy band is narrower compared to other states and compared to the Model FOR Regulations
  • However, the per unit DSM charge is also lower compared to other regulations (in these aspects TN regulation is similar to that of Gujarat)
  • Total DSM charge is capped at Rs 0.05/unit on an annual basis
  • Aggregation is not allowed

Applicability:

  • From the date of publication in the official gazette.
  • Forecasting tool to be established in three months period.
  • Levy and collection of DSM Charges shall commence after six months from the date of publication in the official gazette.

Regulation Applicable on all Wind and Solar Energy Generators (excluding Rooftop PV Solar power projects) in Tamil Nadu

Deviation Accounting:  The deviation accounting will be carried out based on the Available Capacity:-                                                                            

Generation =  Absolute Error in % = 100 X Actual Generation –  Scheduled/ Available Capacity (AvC)

Point of Forecasting: Plants connected to the Intra-State Transmission System or Distribution System, including those connected through Pooling sub-stations, and using the power generated for self-consumption or sale within or outside the State.

Aggregation: Unlike in Karnataka and AP, Tamil Nadu’s regulation does not have a provision to provide an aggregated forecast.

Role of a QCA:

  • Meter reading and data collection and its communication, and coordination with the Distribution Licensees, the SLDC and other agencies;
  • De-pooling of Deviation Charges within the constituent Generators of the Pooling sub-station and settlement of payments/receivables.
  • Settlement of the Deviation Charges specified in these Regulations with the SLDC on behalf of the Generators.

Revisions:

  • The QCA may revise the Schedule of Generators connected to the Intra-State Transmission Network (excluding collective transactions) by giving advance notice to the SLDC.
  • 16 revisions are permitted for Generators starting from 00.00 Hrs of the All the revisions are effective from the 4th time-block.

Other Key Points:

  • The total deviation charges remitted on account of deviations by a wind / solar generators through QCA into State Deviation Pool Account (Wind and Solar) in a financial year shall be capped at the Ceiling Rate of 5 paise per unit, and excess DSM charges beyond this limit shall be remitted back to the generator.
  • Every QCA shall pay the total amount of Deviation Charges pertaining to the Pooling Sub-station to the SLDC, and collect it from the concerned Generators in proportion to their actual generation.
  • Provided that the onus of ensuring the payment of the Deviation Charges to the SLDC by the QCA shall remain that of the concerned Generators.
  • The QCA shall de-pool the Deviation Charges against each Generator in proportion to the actual generation by the generators.
  • The SLDC will share the curtailment information with the QCA id any, via an IT-enabled communication system; failing which the DSM for subsequent time blocks will not be charged by the SLDC.
  • Further, it is the QCAs responsibility to provide the correct schedule on the basis of curtailment.
  • If the QCA is unable to do so, the SLDC will change the schedule as per the curtailed values.

Important differences between intrastate and interstate transactions:

  • The deviations for Inter-State and Intra-State transactions at Pooling Station will be accounted for separately. Separate schedules will be sent for the interstate to SLDC and RLDC.
  • The Inter-State transactions will be settled on the basis of their scheduled generation and will be considered only if the Inter-state capacity is connected to the STU via the separate feeder.
  • The Generator will pay the Deviation Charges for under or over injection applicable within Telangana in case of deviations in the State DSM Pool.

Deviation Charges in case of under or over-injection for sale/supply of power within the State

Deviation Charges in case of under or over-injection for sale/supply of power outside the State

  • Deviations in respect of Inter-State and Intra-State transactions for each source of RE i.e. wind and solar Generation shall be accounted for separately at each Pooling Sub-Station.
  • The SLDC shall provide separate energy and Deviation Accounts for Inter-State and Intra-State transactions in respect of wind and solar Generation to the QCA, who shall settle the Deviation Charges with the concerned Generators.

The TNERC Regulation for Forecasting & Scheduling, 2019 has not provided a summary of timelines designating the activities to QCA and SLDC, to be accomplished within the following stipulated duration.

 

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