BESCOM proposes incentive scheme to bring back HT consumers in the new tariff order 2018-’19

BESCOM announced its new tariff order for FY 2018-2019. New points introduced in the order include providing incentives to the HT consumers, for them to return back to state DISCOMs and not purchase power via Open Access.

Since HT consumers have been purchasing power via Open Access, the DISCOMs are deprived of the sales to the paying consumers, in turn impacting the finances of the distribution licensees.

Base consumption:

The monthly average consumption out of energy supplied by BESCOM during the non-peak hours’ period between 10.00 Hours and 18.00 Hours of the day, during the period from 01-04-2017 to 31-03-2018 as recorded in Time of Day (ToD) meter will be reckoned as base consumption.

Incentive scheme:

  • Any excess energy consumed by the eligible consumers during the non- peak period between 10.00 Hours and 18.00 Hours, over and above the average base consumption as stated, will be allowed a discount of Rs.1.00/- per unit in the bill, to the eligible consumers.

  • Further, the eligible consumers will be allowed an incentive of Rs.2.00 per unit in the bill for the energy consumed during the period between 22.00 Hours and 06.00 Hours as against the normal ToD rebate of Re.1.00 per unit.

Consumer

Slabs

Exiting rates (Ps/Unit)

Proposed Incentive rates (Ps/Unit)

HT2a(i)

0-1 lakh units

665

665

above 1 lakh units

695

HT2a(ii)

0-1 lakh units

660

660

above 1 lakh units

680

HT2b(i)

0-2 lakh units

845

845

above 2 lakh units

855

HT2b(ii)

0-2 lakh units

825

825

above 2 lakh units

835

HT2c(ii)

0-1 lakh units

740

740

above 1 lakh units

780

There are also some amendments in the wheeling charges applicable to the renewable generators.

  • The RE generators will be liable to pay 25% of the normal transmission charges and/or wheeling charges.

  • They will be liable to bear the applicable lines losses as decided by the commission.

  • Also be liable to other applicable charges including 2% of banking charges.

RE projects

Time period

Transmission/wheeling charges

Banking

Line losses

Wind projects

10.10.2013 to 0.09.2017

25% normal transmission/wheeling charges

exempted

Solar projects

On or earlier than 31.03.2017

exempted

The RE projects commissioned on or after 1.04.2018 shall be liable to 25% of the normal transmission and/or wheeling charges, in cash, and the applicable line losses and banking charge, in kind, as determined by the Commission in its Tariff Orders, from time-to-time, in addition to the other applicable charges.

The Captive Generators, availing of the benefit of the Renewable Energy Certificate (REC) mechanism, shall be liable to pay the normal Transmission, Wheeling, and other charges, as specified in the Commission’s Order dated 09.10.2013.

The order is in effect since 1.04.2018 until 31.02.2020 unless any other order comes into effect.

CERC gives a positive nod to extend the validity on RECs

CERC recently announced in its order dated 15th May 2018 that the RECs will be valid till 30th October 2018, which were otherwise expired/likely to be expired between 1st April 2018 and 15th October 2018.

The commission declared this in accordance to its power under Regulation 15 of REC regulations.

The extension related dates are as below:

Duration

Status of RECs

Validity as per the order

1st April 2018 to 14th May 2018

Expired

Extended till 30th October 2018

15th May 2018 to 30th October 2018

Likely to be expired

Extended till 30th October 2018

The issues which were prevailing since early 2017 and saw petitions from various parties seems to have finally come to rest.

More than 10 lakh RECs (9,52,533 Solar RECs; 1,09,520 Non-Solar RECs) were being affected due to the pending petitions. Majority of these RECs were solar which saw a halt in trading for almost 11 months since 8th May 2017.

Since ApTel was in the reviewing process of the petitions, the commission could not take any action on the extension of REC validity before 31st March 2018.

ApTel in its judgment as on 12th March 2018 has disposed all the petitions and upheld the commission’s order dated 30th March 2017 to continue the REC Floor and Forbearance Price applicable from 1st April 2017 onwards.

 The Commission was of the view that there was a requirement to extend the validity since the appeals were dismissed by the ApTel and there was no stay.

Earlier, the commission extended the validity up to 31 st March 2018 which was expired between 1st October 2017 and 31st March 2018 based on Supreme Court’s order dated 29.09.2017 on seeking necessary direction for extension of the validity of RECs.

Based on the recent order, the expired RECs will be added back to the seller’s account which was then removed by NLDC till 31.03.2018.

As per the recent trade dated 25th April 2018 on IEX and PXIL after a halt of a year, the clearance was as below:

Trading portal

Solar

Non-solar

IEX

6,44,151

1,36,979

PXIL

2,30,967

50,564

National hybrid wind and solar policy announced by MNRE

Ministry of New and Renewable Energy (MNRE) announced the National Wind-Solar Hybrid policy in a press release on 14th May 2018. The objective behind this is to provide a framework for promoting large grid-connected wind and solar PV hybrid system for efficient utilization of transmission infrastructure and land. Along with this, it also aims to help reduce the inconsistency in the renewable power generation and in turn achieve better grid stability.

The policy also intends to encourage new technologies, methods, and solutions related to the combined operation of wind and solar PV plants.

The summary of the policy is as below:

  • According to the policy, the Wind Turbine Generators (WTGs) and Solar PV systems both will be configured to operate at the same point of grid connection.

  • The integration of wind and solar can vary depending on the size of each source and their technology type.

  • If the wind turbines are connected to the grid at a fixed speed using an inducing generation, the integration can be on the High Tension (HT) side at the AC output bus.

  • And in case of variable speed, wind turbines using inverters for connecting to the grid, the wind, and solar system can be connected to the intermediate DC bus of the AC-DC-AC converter.

  • Depending on the size of the respective renewable capacity, the other resource can be integrated. However,  a plant will only be considered hybrid if the power capacity of anyone resources is at least 25% of the rated power capacity of the other resource. (i.e. wind and solar).

  • The implementation will depend on various configuration and technology:

                      1. Wind-Solar hybrid – AC integration

                      2. Wind-Solar hybrid – DC integration

                      3. New Wind-Solar hybrid plants

  • The hybrid power generated from the wind-solar hybrid project can be used for captive, sale to third-party through Open Access, sale to the distribution company (ies) either at tariff determined by the respective SERC or at tariff discovered through transparent bidding process; and ) sale to the distribution company (ies) at APPC under REC mechanism and avail RECs.

  • In case of bidding, the Central/State can follow competitive bidding process and can select the winner on the basis of the tariff.

  • The additional power generated from the hybrid plant can also be used for solar/non-solar RPO fulfillment.

  • Battery storage is also enabled in the hybrid projects.

Central Electricity Authority and CERC shall formulate necessary standards and regulations including metering methodology and standards, forecasting and scheduling regulations, REC mechanism, grant of connectivity and sharing of transmission lines, etc. for wind-solar hybrid systems.

With significant capacity additions in renewables in recent years and with Hybrid Policy aiming at better utilization of resources, it is envisaged that the Hybrid Policy will open-up a new area for availability of renewable power at competitive prices along with reduced variability. A scheme for new hybrid projects under the policy is also expected shortly.

In conclusion, the new policy for hybrid wind-solar plants seems to be a good move at a Pan-India level as all the states will get an opportunity to utilize the much abundant renewable sources (Wind and Solar) in the country. We here at REConnect feel that if the implementation of this policy is done correctly, India will get a step closer to its goal of installing 175 GW renewable capacity till 2022.

The detailed policy can be found here.

SUBSIDIES IN THE RE SECTOR

Encouraging RE installation in the state, till now, the country’s policies have provided various benefits in the form of subsidies, generation based incentives, viability gap funding, etc.As the installed capacity of solar and wind energy has been increasing consistently, the government has consistently decreased the incentives to renewable energy.

Now that the prices of electricity generated from renewable energy has come very close to the price of electricity generated through fossil fuel based sources, almost achieving grid parity, the government is considering removal of subsidies and incentives given to installation and generation from renewable energy. This change may take place in the coming financial year, as per experts. This development has been reported by the Economic Times.

The wind tariff recently dropped down to Rs 2.43 per unit in an auction held by GUVNL in the month of December 2017 and solar tariff dropped down to Rs 2.65 per unit in September.

MAJOR REFORMS EXPECTED IN THE ENERGY SECTOR, SAYS POWER MINISTER

In an article in  Financial Express, the power minister, Mr RK Singh, declared that huge reforms are to be expected in the power sector in the near future. Few of such reforms mentioned were PPAs for all the electricity requirement being made mandatory in all Indian states, cross subsidy in tariff being limited, compensation of low agriculture tariff  by increasing the industrial and commercial tariff and introduction of Direct Benefit Transfer (DBT). Also, introduction of a penalty provision  to those not meeting their RPO targets. This is in line with the Draft National Electricity Policy released by Niti Ayog in June 2017. The Union Minister also added that carriage and content shall be separated by his ministry which shall give the end user the flexibility to where they want to procure electricity from.

IEX’S ELECTRICITY PRICE IN DAY AHEAD MARKET REACHES NEW HIGH THIS MONTH

In the Day Ahead Market trading held by IEX (Indian Energy Exchange), the average tariff of electricity has been between Rs 3 to Rs 4 per unit. But within 12 days of September, the average tariff has gone up to Rs 8.7 per unit.

This increase in prices is majorly attributed to the reduction in generation from wind and hydro power plants, though the demand has remained stable as compared to last year.

 
As per the graph, it is clear that the prices for this month have been much higher as compared to the price in the previous months for the reasons mentioned above.
The article can be accessed here.

THE NATIONAL CLEAN ENERGY FUND GETS DIVERTED TO COMPENSATE FOR GST

The government of India assigns dedicated funds which is linked to specific cess. This kind of cess One such fund is the National Clean Energy and Environment Fund. In a recent move, there was a diversion of the funds collected as tax for the National Clean Energy and Environment Fund to the states that lost revenue because of GST. Through this move, the unspent funds which were to be used by MNRE have been diverted. This means that from next year, India will not have a National Clean Energy and Environment Fund. Some individuals working in the sustainability sector argued that this amount could have been used in the development of clean coal technologies.

This action is also going to pose a risk to the MNRE as 98% of its budget of which comes from this fund. Not only that, this fund has also aided India in meeting its commitment towards the Paris Agreement. Now that the United States has withdrawn from the Paris Agreement, the Clean Energy fund was the only aid which India had to meet its obligations by 2020. Since it does not exist anymore, out fight to protect the environment has become an even bigger challenge.

 

The article covering the same can be accessed here

POSOCO-IMD WEATHER PORTAL AND WEB PORTAL “MERIT” LAUNCHED

The Ministry of New and Renewable Energy (MNRE), in collaboration with IMD and POSOCO has launched a weather portal for the power sector. This portal will help in predicting extreme weather events such as heat waves and floods which will effect on the load demand and energy production, transport and distribution management. It will be of aid to the DISCOMs to ensure a reliable supply and infrastructure planning. It will provide information regarding regional weather summary, radar, satellite image, meteogram and region specific forecast.

 

The portal “MERIT” (Merit Order Dispatch of Electricity for Rejuvenation of Income and Transparency) was also developed by MoP in association with POSOCO and CEA. It gives an array of information regarding merit order of electricity procured by the state. It will help the DISCOMs to provide power at a lower cost to consumers. It will also promote the use of clean and green power.

 

The article regarding the same can be accessed here.

ENERGY CONSERVATION BUILDING CODE 2017

Shri Piyush Goyal launched the Energy Conservation Building Code, 2017 which was developed by MoP and BEE. The code aims to optimize energy savings while keeping in mind the comfort levels of the occupants. It also aims to reduce building’s energy consumption and promote low carbon growth.

 

It has been estimated that by integrating the energy code, there will be a reduction in energy of 50%  and 30 BUs by 2030. Following are the salient features of the Energy Conservation Building Code 2017:

– Developed by BEE with technical support from United States Agency for International Development (USAID) under the U.S.-India bilateral Partnership to Advance Clean Energy – Deployment Technical Assistance (PACE-D TA) Program.

 

– Anticipated reduction in energy consumption of 50% by 2030.

 

– Equivalent to 300 Billion Units by 2030, peak demand reduction of over 15 GW in a year, savings of Rs 35,000 crore and 250 million tonnes of CO2 reduction

 

– Minimum 25% energy savings to be demonstrated by new buildings to become energy compliant. Additional improvements of 35% and 50% would lead to higher grades like ECBC Plus or Super ECBC.

 

The article can be accessed here.

INDIA’S ELECTRICITY REQUIREMENT TO GO UP BY 37% IN THE COMING YEARS

As per the 19th electric power supply report by the Central Electricity Authority (CEA), the country will need 1,566 BUs of energy by 2022 which means that there will be an increase of 37%. An annual growth of 2.6% was recorded in the FY 2017. As per the 18th EPS report, the electricity generation for FY 2017 was supposed to be 1,355 BUs whereas it was close to 1143 BUs. The expected peak demand in the FY 2022 is supposed to be 226 GW.

 

The article reporting the same can be accessed here.

  • Posted on June 17th, 2017
  • Posted by Team REConnect
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