TAMIL NADU DETERMINES DISTRIBUTION AND TRANSMISSION TARIFF FOR FY 2017-18

The Tamil Nadu Electricity Regulatory Commission (TNERC) has determined the distribution and transmission tariff for FY 2017-18. The last time they had determined tariff was in 2014 which means that the tariff has changed after 3 years. The energy charges for different categories is as follows:

 

 

The tariff for industrial and domestic categories hasn’t changed at all. Same is the case with domestic tariff.

 

Wheeling Charges: 21.06 Paisa/Unit

Wheeling loss: 2.45%

Cross subsidy surcharge: 1.67 Rs/kWh

The transmission tariff was also determined by the TNERC. It is as follows:

 

Transmission charges: 3037.30 Rs/MW/day

Transmission loss: 3.81%

 

The distribution and generation tariff can be accessed here. The transmission tariff can be accessed here.

KERC Determines tariffs and other norms for Solar Rooftop and Small Photovoltaic Power Plants

This Order is applicable to all new grid connected solar rooftop and small solar photo voltaic power plants, entering into Power Purchase Agreement (PPA) and commissioned on or after 2nd May, 2016 and up to 31st March, 2018.

Sharing of Clean Development Mechanism (CDM) benefits between the generating company and the beneficiaries

  • 100% of gross proceeds on account of CDM benefit are to be retained by the project developer in the first year, after the date of commercial operation of the generating station,
  • In the second year, the share of distribution licensees shall be 10%, which shall be progressively increased by 10% every year till it reaches 50% and thereafter, the proceeds shall be shared in equal proportion by the generating companies and the beneficiaries.

Grid Connectivity for roof-top projects

  • 1 kW to 5 kW – single phase 230 volts
  • 5 kW to 50 kW – 3 phase 415 Volts
  • 50 kW to 1 MW – 11 kV line.

Metering

  • Metering shall be in compliance with the CEA (Installation and Operation of Meters) Regulations 2006 as amended from time to time.
  • In the case of, solar rooftop PV systems connected to LT grid of a distribution company, the concept of net metering shall be adopted and the net energy pumped into the grid shall be billed.
  • In the net -metering, the consumer is paid for the net energy i.e., the difference between energy generated from solar rooftop plant and consumed by his/her installation.
  • This concept allows only surplus energy to be injected into the grid. The Commission had proposed to continue with net-metering concept for all consumers, other than domestic consumers.
  • In the case of domestic consumers, the Commission had proposed to adopt gross metering concept where the entire energy generated by the solar rooftop plant is allowed to be injected into the grid

Note – An amendment to CEA (Installation and Operation of Meters) Regulations 2006 has been issued recently, in which a new definition of “renewable energy meter” has been introduced to extend clarity to net-metering scheme.

  • If export>import, ESCOM pays generator at the tariff determined.
  • If import > export; then generators pays to DISCOM at prevailing retail tariff.

 

Applicability of Wheeling and Banking Charges and Cross Subsidy Surcharge:

For solar generators going with intra-state open-access, no wheeling/banking charges or cross- subsidy charges are to be paid.

The copy of the order can be accessed here.

Maharashtra Renewable Energy Policy 2015

Maharashtra Government has finalized its final Renewable Energy Policy. The policy will be known as Maharashtra Renewable Energy Policy 2015. Regional committee will be established to monitor the overall progress of the policy and will be headed by the principal secretary of energy. The brief details of the guidelines and targets defined in the policy are given in the below-mentioned points:

Targets: The new policy announced, has set some ambitious targets for different Renewable Energy sources. The targets defined under the policy are listed in the table below:

Project Specific Guidelines and Incentives:

1. Wind Energy: A total of 5000 MW capacity of wind energy projects shall be commissioned, out of that initial 1500 MW will be used to fulfil RPO of distribution companies and the rest 3500 MW capacity of wind project can be utilized open access for interstate/ intrastate open access/captive consumption/REC etc.

Incentives:

  1. Wind generators will be given permission for re-powering.
  2. Land acquired for commissioning of the wind project will be deemed as Non-Agricultural land.
  3. Concessions will be granted for these projects to get NOC from pollution control board.
  4. Supervision charges for grid evacuation will be waived off.
  5. Wind energy projects can register themselves as industrial unit.

2. Sugarcane /Agricultural co- generation projects: Target of 1000 MW has been set for power generation through sugar co-gen/agricultural co-gen projects. Distribution companies shall have first right to fulfil their RPO at fix rate decided by MERC.

Incentives:

  1. Exemption from Supervision charges for grid evacuation.
  2. Exemption from E-duty for captive power plants for 10 years from the date of commissioning
  3.  Exemption from sales tax on purchase of sugarcane for all projects having capacity more than 3MW (35 lacs units).
  4. Promotional elements will be applicable on project which has got consent for infrastructure after the announcement of policy.
  5. MahaGenco will give consent for basic infrastructure and evacuation facility to establish co-gen project

3. Small Hydro projects: A target of 400 MW is set up for small Hydro projects. All the small hydro projects will be obligated to sale power firstly to any distribution company within Maharashtra so that they can fulfil their RPO at rates prescribed by MERC, after this they can go on interstate /intrastate third party power sale through REC route.

Incentives:

  1. Exemption from E-duty for captive power plants for 10 years from the date of commissioning
  2.  Promotional elements will be applicable on project which has got consent for infrastructure after the announcement of policy.
  3. MahaGenco shall give subsidy of Rs.50000 per KW to maximum up to Rs. 1. Cr from green energy fund.

4. Agricultural manures based power generation projects: Target of 300 MW is set up for Agricultural manures based power generation projects. MSETCL/MSEDCL will help developers with grid evacuation of LV/HV/EHV projects and Grid.

Incentives:

  1. Exemption from E-duty for captive power plants for 10 years from the date of commissioning.
  2.  Promotional elements will be applicable on project which has got consent for infrastructure after the announcement of policy.
  3. All projects shall get capital subsidy up to 1 Cr from green energy fund.

5. Solar Power:  A total of 7500 MW of Solar energy projects shall be commissioned, out of that 2500 MW will be used to fulfil RPO through Public private partnership in association with MahaGenco. And rest 5000 MW will be developed by other developers.

  1. A total 10 % of all PPP projects i.e. 250 MW will be established on canals, lakes and irrigation project. Minimum of project capacity will be 1MW.
  2. Minimum of project capacity will be 1MW.
  3. Development of Solar Park.

Incentives:

  1. Land acquired for solar projects will be granted deemed status of Non-agricultural land.
  2. Solar projects having capacity up to 2 MW can be given land 4 hectors as per availability and 50 % discount shall be given on rental/ lease charges. All such transactions will be governed as per Maharashtra land acquisition act.
  3. Government land if available requires for manufacturing of solar modules/panels/etc. shall also be given 50 % discount on lease/rental charges.
  4. Concessions shall be granted for these projects to get NOC from pollution control board.
  5. Solar project developers can sell electricity generated from solar projects to distribution companies /captive use/third-party sale/ REC.
  6. Open Access shall be granted for interstate as well as intrastate projects as per MERC regulations
  7. Exemption from Supervision charges for evacuation.
  8. Projects can register themselves as industrial units.
  9. Exemption from E-duty for captive power plants for 10 years from the date of commissioning.
  10. Developers will be given the necessary support for development solar projects, but there will separate provisions for interstate power transfer.

The Policy Document can be accessed here.

Jharkhand Notifies Draft Solar Policy 2015

The Government of Jharkhand has recently notified draft for new solar policy. The new policy will be known as the Jharkhand State Solar Power Policy 2015. The new Policy will be in operation for five (5) years from the date of issuance and will remain operational till modified or superseded by a new policy.

Objectives of the Policy:

The Policy targets to achieve 2500 MW of solar energy by 2020 and with an objective of promoting local manufacturing facilities and generating employment in the state.

Minimum Target: The minimum size of the solar PV power plant at single location shall be 1 MW.  The targets of the policy are elaborated below –

Implementation Plan

1)      Utility Scale Projects:

  • Development of Solar Power Plants for Sale of Electricity to the Distribution Licensee.
  • Generations of Solar Power for Sale of Electricity to Third party or through Open Access.
  • Development of Solar Parks.
  • Development of Solar Power Plants under REC Mechanism.
  • Development of Solar Power Plants on Canals.
  • Development of Solar Power Plants under the schemes announced by Government of India.

 2)      Rooftop Solar Photovoltaic Power Plants Connected with Electricity System:

  •  Development of Solar Power plants for sale of electricity to the distribution Licensee.
  • Generation and sale of electricity to a person/entity other than distribution licensee via Open Access mode.
  • Generation, Captive Consumption and injection of surplus electricity under Net Energy Metering Mechanism.

3)      Decentralized & Off-Grid Solar ApplicationsThe Government will also promote decentralized and off grid solar applications, to meet the requirements of electricity and thermal energy, as per the guidelines issued by Ministry of New and Renewable Energy, Govt. of India.

Incentives Offered:

  • Exemption from the payment of Electricity Duty.
  • Deemed Industry Status will provided.
  • Pollution Clearance.
  • Open Access will be allowed.
  • Exemption from payment of Conversion Charges.
  • Exemption from the payment of VAT & Entry Tax.
  • Exemption from wheeling Charges.
  • Exemption from Distribution Losses.
  • Exemption from payment of Cross Subsidy Surcharge.
  • Banking for 100% of energy during all 12 months of the year.
  • Third Party Sale within or outside the State will be allowed.
  • Must run status for Solar Power Projects.
  • Renewable Energy Certificate (REC).
  • Deemed Public Private Partnership (PPP) Status..
  • Non Agriculture Status for the land where Solar Power Projects will be accorded.

Solar Purchase Obligation (SPO):

1) Solar Procurement Obligation (SPO) will be mandatory for commercial consumers with LT Industrial connection with more than 50 kVa connected load and for all HT & EHT consumers. All such consumers have to procure 4% of their power from solar source.

2) All new domestic buildings having floor area equal to or greater than 3000 sft will have at least 100 kw Solar PV system. In case of Housing Societies, 5% of energy usage should be from solar for common amenities.

3) In the potential categories to be notified like star hotels, hospitals, residential complexes with more than 50 kVA total connected load the use of solar water heating system shall be made mandatory.

Apart from all this the government also intends to promote solar manufacturing and R&D facilities in the state. Incentives to such manufacturing facilities will be provided separately. JREDA will act as Nodal Agency for all projects.

Overall the policy offers good number of incentives to the project developer, in terms of tax relaxations, must run status, exemptions from various charges etc. The policy proposes to increases the solar purchase obligation (SPO) to 4% for the consumers, which is 1% for now (as per JERC orders 2012), it also puts obligation for consumers to use the decentralized solar applications, which appears to be a good approach.

It looks promising and offers a fresh start for the state, which hasn’t seen much of the capacity addition in the solar energy sector. The state is having a total potential of more than 18 GW of solar energy. Out of this potential a target of 2.5GW can be achievable, given that the state government works positively towards it.

The Draft Policy can be accessed here.

MNRE to Implement scheme: 1 GW solar Projects by PSU’s and GOI Organizations

Ministry of New and Renewable Energy (MNRE) in its latest notification on 18th Jan 2014, has given guidelines for the implementation of a scheme for the development of 1000 MW of grid connected Solar Power Projects by Central PSU’s and Govt. of India organizations and various central and state schemes with Viability Gap Funding under batch-V Phase-II of JNNSM in a span of 3 years. The Central Financial Incentive (CFA) required is estimated to be 1000 crores.

Solar Energy Corporation of India (SECI) will handle the scheme on behalf of MNRE. SECI will be given a fee of 1% of the VGF disbursed for handling the funds and managing the Scheme.

The Ministry is promoting domestically manufactured solar cells and modules, knowing that the domestic manufacturing capacity is facing tough competition from the foreign players like china and US, which are selling the cells and modules at significantly lower price. The Indian manufacturing capacity is also not enough to meet the demand, which has been a concern for the govt. that resulted in dropping the anti-dumping duties proposed by director general of Anti-dumping.

The Govt. has now taken new steps to promote the domestic manufacturing by giving specific project capacities under certain schemes.

The Scheme Document can be accessed here.

MNRE: Subsidy Reduction and Home Loan Initiative for Rooftop Solar

The Ministry of New and Renewable Energy (MNRE) has set a target of 40,000 MWp of Grid Interactive Solar Rooftop systems during the next 5 years. However, it has proposed to reduce the capital subsidy for Solar PV for Rooftop systems from 30% to 15%, citing reduced cost of Solar PV panels and a competitive tariff of Rs. 7 per unit that can be achieved without subsidy. This is applicable for Systems ranging between 1 KWp to 500 KWp. The ministry has asked project developers to go ahead with their projects without waiting for subsidy allocation via Aadhaar Linked Account or interest subvention.

As per the current Home Loan and Home Improvement Loan schemes, Solar PV is not covered among items against which loan can be availed. The Ministry of Finance has issued following advisory to all Public Sector Banks:

“All banks are advised to encourage the home loan/ home improvement loan seekers to install rooftop solar PVs and include the cost of such equipment in their home loan proposals just like non solar lighting, wiring and other such fittings”

This will reduce the dependence on private investors who are little hesitant towards investing in Solar projects, and will enable owners to plan their Home loan with inclusion of capital cost for installing Solar Rooftop, based on the available space and requirement.

This is mainly aimed at encouraging residential, commercial, industrial and institutional setups to adopt viable Grid Interactive Solar Rooftop Systems for their own consumption, and inject surplus electricity into the grid. Solar Rooftop Regulation/Policies/Schemes in states like Delhi, Rajasthan, Haryana, UP, Uttarakhand, Kerala and Karnataka will further attract investors and residential consumers towards Solar Rooftop Power.

The Draft proposed for reduction in subsidy can be read here.

The press release of the inclusion of Solar Rooftop capital cost in Home Loan, can be accessed here.

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