HAREDA announces amendments in Haryana Solar Power Policy, 2016

Recently Haryana Renewable Development Agency (HAREDA) announced amendments in the current guidelines for Solar Power Policy, 2016. The amendments  made in clause 4.3 are as under:

  • The wheeling & transmission charges are exempted for ten years from the date of commissioning for all the captive solar power projects who have submitted their projects registration to HAREDA.
  • Further, the projects should also have purchased land or have taken land on lease for thirty years & have bought equipment and machinery or should have invested at least Rs. one crore per Mega Watt for the purchase of equipment & machinery for setting up of such Captive Solar Power Projects till 13th February 2019.
  • Cross-subsidy surcharges and additional surcharges are not applicable for Captive Solar Power Projects as per provisions of Electricity Act 2003.
  • For determining the investment of Rs. One crore per MW, payment for equipment should be made into the bank accounts of equipment supplier before 13th February 2019 and proof of the same needs to be submitted.
  • There is no waiver on transmission charges, wheeling charges, cross-subsidy surcharges, and additional surcharges for solar projects for third party sale.
  • However, against the waivers already specified above, Renewable Purchase Obligation (RPO) benefit will be provided to Power Utilities as per RE Regulations 2017 with amendments from time to time.
  • Banking will be provided for captive/ third party solar generation projects. However, banking charges shall be applicable as per RE Regulations 2017 with amendments from time to time.

These amendments, however, have come in retrospection and will only be applicable to the existing captive solar plants.

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.

MNRE amends the land allotment clause in the solar park projects guidelines

Ministry of New and Renewable Energy (MNRE) recently announced amendments in two guidelines for setting up a grid-connected solar PV power projects for 2000 MW and 5000 MW along with Viability Gap Funding (VGF) for Batch III & Batch IV, Phase II NSM respectively. The amendments are as below:

Guidelines for setting up a grid-connected solar PV power projects for 2000 MW along with Viability Gap Funding (VGF) for Batch III  Phase II NSM

Guidelines for setting up a grid-connected solar PV power projects for 5000 MW along with Viability Gap Funding (VGF) for Batch IV  Phase II NSM

The amendments are assumed to have come into existence due to the slow interest in the tenders due to lack of land allotments and the financial issues related to it. Currently, around 7% of the total installed capacity is from solar. But lately, the solar installations have taken a back seat due to issues like anti-dumping tariffs, and confusion in the GST rate.

Tamil Nadu announces a draft solar energy policy 2018

TEDA has recently announced the draft solar energy policy 2018. Earlier the state had Tamil Nadu policy 2012 (one of the first solar energy policy in the country.) The state has announced for a vision Tamil Nadu 2030 wherein the solar energy target for the state is of 5,000 MW. Under the targets set by MNRE, TN aims for an installed capacity of 8,884 MW of which (40%) that is 3,553 MW is to come from consumer scale rooftop solar system. Tamil Nadu solar energy Policy 2018 intends to create a framework that enables an accelerated development of solar energy in the state. It also intends to facilitate open access to the public electricity grid of the state and create opportunities for a grid-connected distributed generation of solar power in order to reduce the dependence on fossil fuels.

Key points of the draft policy as below:

  • If a DISCOM fails to comply with the RPO mandates, penalties specified by TNERC for such non‐compliance shall be strictly enforced.
  • Solar grid feed-in mechanisms included in the policy are:

 

Solar  energy gross feed-in (utility scale) The solar energy is fed into the grid and sold to the distribution licensee or a third party under the open access facility. In the case of distribution licensees, the solar energy fed into the grid will be purchased by the distribution licensee at the prevailing solar energy tariff as determined by the TNERC or a tariff determined by a bidding process
Solar energy wheeling (utility scale) The solar energy is fed into the grid and credited in one or more service connections of the solar energy producer. Solar energy wheeling will be
applicable to all electricity consumer categories and tariffs and for electricity service connections at any voltage level
Solar energy gross feed-in (consumer scale) The solar energy is fed into the grid and sold to the distribution licensee. An extra energy meter will be installed that records the consumption of energy at the premises to record the energy fed into the grid by the distribution licensee. The energy will be sold to the distribution licensee at the tariff determined under this mechanism can also be sold to a third-party under Open Access.
Solar energy net feed-in The solar energy is used for self-consumption with the surplus, if any, being exported to the grid. A bidirectional service connection energy meter will be installed by the distribution licensee to record the imported and exported energy. The imported energy is debited at the applicable consumer tariff while the exported energy is credited on the basis of a consumer solar energy tariff to be determined by TNERC.
Solar energy group net-metering: To encourage solar plants on rooftops of buildings that cannot consume all of the energy generated locally, there shall be Group Net Metering, whereby surplus energy exported to the grid from a solar plant in excess of 100 percent of imported energy at the location of the solar plant can be adjusted in any other (one or more) electricity service connection(s) of the consumer within the State of Tamil Nadu.
Solar energy virtual net feed-in To give access to the solar net feed-in facility for consumers who do not have a suitable roof for installing a solar system (e.g. residential consumers who live in apartments, consumers with shaded rooftops) there will be the facility of Virtual Net Feed-In. In Virtual Net Feed-In consumers can be beneficial owners of a part of a collectively owned solar system. All energy produced by a collectively owned solar system will be fed into the grid through an energy meter and the exported energy as recorded by that the meter will be pro rata credited in the electricity bill of each participating consumer on the basis of beneficial ownership.

 

Various solar project implementing models:

 

  • Self-owned: Solar PV system is owned and operated by the building owner/user
  • RESCO (Renewable Energy Service Company) owned: The Solar PV system is owned and
    operated by a RESCO. The consumer pays the RESCO for the solar generation and makes
    use of the solar energy gross feed-in or net feed-in mechanism.
  • Lease: The consumer leases the solar PV system from a leasing company and makes use of the
    solar energy gross feed-in or net feed-in mechanism.

 

Any person or entity willing to put a solar project needs to abide by the building by-laws and Energy Conservation Building Code Compliance (ECBC). All the public buildings are mandated to meet 30% of their energy requirement from solar energy by 2022.

 

Solar energy imported by the distribution licensee from non-obligated solar energy producers (including electricity consumers with gross or net feed-in facilities) can be claimed by the distribution licensee towards the fulfillment of their renewable energy purchase obligations (RPO).
The Government of Tamil Nadu wishes to promote the manufacturing of solar energy components including solar cells, inverters, mounting structures and batteries in the state. The land will be identified for the development of solar manufacturing. A single window process for all departmental approvals, including a set time limit for each approval, is expected to be designed.
An incentive program will be designed to promote the co-utilization of land for solar energy projects, crop cultivation, and rainwater harvesting.

 

The policy is open for suggestions and comments to individuals, organizations, and institutions till 15th October 2018.

MPUVNL announces new decentralized solar policy and rooftop solar tariff reaches at INR 1.38/kWh

  • Madhya Pradesh Govt. recently introduced a decentralized solar policy to encourage the development of the decentralized RE projects and applications in the state. The policy allows decentralized RE systems of the following types:
  1. Grid-connected RE systems:
  • Category I: On Net-metering basis
  • Category II: Gross metering with wheeling and banking
  • Category III: For consumption within premises with no export of power (Reduction in the base load during the day)
  • Off-Grid RE systems
  • The policy also encourages Net-metering RE systems under the categories mentioned above. The system capacity for both grid-connected and off-grid is of 2 MW. Bulk consumers who are single point consumers are also eligible under the policy.
  • The maximum permissible capacity of the RE systems for all the Net-metered RE systems connected to a particular distribution transformer of the licensee’s grid shall be equal to the rated capacity of the said distribution transformer w.r.to MPERC Net metering regulations 2015.
  • In case the cumulative capacity of the proposed RE system exceeds, it is the distribution transformers responsibility to provide the infrastructure to accommodate the proposed capacity.
  • In the case of an LT Net metered consumer, the RE beneficiary will not bear the cost of the augmentation of the infrastructure, whereas, in case of the HT consumer, the infrastructure will be upgraded by the distribution licensee at the cost of the consumer.
  • In case installation of the decentralized renewable energy system for low tension (LT) consumer requires system augmentation, such as replacement of existing distribution transformer (DT) with a DT of higher capacity, the entire cost related to augmentation for the interconnection of the renewable energy system with the network of the DISCOM will be borne by the DISCOM. The DISCOM can claim it as part of the ARR filing.
  • Excess or surplus energy remaining banked with the distribution licensee at the end of the year will be settled at an Average Pooled Power Purchase Cost (APPC).
  • Ways to implement the RE projects under RESCO include:
  • Build Own Operate Maintain (BOOM): RESCO will Build, own and operate the system for its lifetime period and supply power to the consumer for the lifetime agreement. RESCO will uninstall the infrastructure once the lifetime period is over and build the roof in the same condition.
  • Build Own Operate Transfer (BOOT): RESCO will finance, develop own and supply power to the consumer from the RE system for the lifetime period under the agreement. Post the agreement period, the system will be transferred to the RE consumer as per the agreement, wherein the consumer can assign the RESCO for the O&M maintenance under the suitable agreement between both the parties.
  • Incentives on various charges are as follows: Open access to be available to all RE systems specified in the MPERC open access regulations 2015, Wheeling charges will be available to all RE systems as specified in the MPERC regulations. Further, Govt. of MP will provide a grant of 4% in terms of energy injected and the balance if any, shall be borne by the RE consumer.
  • Cross-subsidy is exempted for RE system under this policy and net metered systems are exempted from banking charges & wheeling charges as per MPERC regulation 2015. However, Category II, III and Off-Grid systems ate not exempted from the above-mentioned charges.
  • Electricty duty will not be applicable to the producer of renewable energy beneficiary, consumer, licensee for supply, sale or consumption of RE from generating systems installed under this policy for a period of 10 years from the date of start of supply.
  • Consumers connected at LT level will be exempted from electricty duty for a lifetime of the RE system.
  • The installation of the RE system on the premises of the RE beneficiary will not be considered in the Floor Area Ratio (FAR) and will be provided additional FAR for construction in the premises according to the capacity proposed as per the regulations by Urban Development & Housing Dept. Govt. of Madhya Pradesh.
  • Energy consumed from net-metered renewable energy system by a non-obligated entity qualifies towards renewable purchase obligation (RPO) compliance of the concerned distribution company (DISCOM). The DISCOM does not need to pay for such power.

In addition to the policy, in a new auction for the rooftop RE system, a new tariff of INR 1.38/kWh was discovered for the 35 kW rooftop capacity. The tariff has reduced more than the last discovered tariff for rooftop capacity auction at INR 1.58/kWh.

GOA RELEASES SOLAR POLICY 2017

Goa Energy Development Agency (GEDA) has approved the solar policy for the year 2017.

The policy has been approved five months after the draft policy was released and shall be applicable form the date of notification up to 7 years whereas the PPA’s signed under this policy shall be valid for the period of the agreement. Under REC mechanism, solar power plants shall be set up and the power generated by them shall be sold to GED at the average power purchase cost.

Development of solar projects for sale of electricity to third party as well as GED shall be promoted by the state. The producer will have to pay the wheeling charges as per the rates determined by JERC. The state government shall reserve the right to procure 10% of the power so generated.

The prosumer/developer shall be given subsidy received from the Government of India as per MNRE guidelines and the state government shall grant 50% of the capital cost/ benchmark cost provided by MNRE, whichever is lower, for solar plants of upto 100 kW size. Role of department of electricity, Goa is to provide banking facility for solar energy, conduct feasibility study for evacuation facility, etc.

Time frame for implementation of project for solar projects beyond 100 kW capacity through reverse bidding:

 

 

The policy can be accessed here.

MOP DETERMINES GUIDELINES FOR FOR COMPETITIVE BIDDING FOR POWER PROCUREMENT FROM SOLAR PV PROJECTS

The Ministry of Power (MoP) has released the guidelines for procurement of power from grid connected solar PV power projects. The guidelines are applicable to solar PV projects of size 5 MW and above. The purpose of these guidelines is to provide a direction for proper electricity procurement by distribution licensees and to protect the interest of the consumers. Also to make this process transparent and uniform.

 

Following are the salient features of the guidelines:

 

  • The appropriate Commission shall be CERC only in case if the distribution licensee is located in more than one state

  • SERCs will be the appropriate commission in case if there is a single distribution licensee.

  • The conditions to be met by the procurer are as follows:

  • The bid document should be prepared in accordance with the guidelines of MoP and the Standard Bidding Documents.

  • Clearances need to be procured from the end procurer, the agency developing the solar park.

  • Procurer has to specify where the project has been set up.

  • The bid structure shall be as follows:

  • The bids will be designed in terms of packages where the minimum will be 50 MW and the bids may be in energy quantity or power capacity terms.

  • The procurer may opt for either ‘tariff as bidding parameter’ or ‘VGF as the bidding parameter’.

  • The PPA period should not be less than 25 years and it can be in terms of energy or power. Repowering will be allowed from time to time for the duration of the PPA.

  • In case of default by the power generator, it shall be liable to pay the solar power generator as written in the PPA. Also, in such a case, the lender shall be allowed to exercise their right to substitution as per the substitution agreement provided in the PPA.

  • In case if the procurer is at default, it shall give its part of the PPA to a third party in the given time. In case if that is not done, the solar generators have a choice to terminate the PPA.

  • Once the procurer calls for bids, a single stage bidding process shall be followed. The procurer can also chose if an e-reverse auction shall be held. It is the responsibility of the procurer to give the details of the bidding process in case of a Solar park specific project.

  • For bid submission and evaluation, the bidders may form a consortium and chose a leader who shall be the focal point of contact. Also, for evaluation of bids, the procurer may form a committee. The technical and price bids shall be submitted separately along with a bid guarantee. Minimum number of bidders should be two and a proper methodology shall be followed for bid evaluation.

  • A 30 day period shall be given for bid submission from the issuance of RfS document. A table containing the time table for bid process is given in the guidelines attached below.

  • Bank guarantees such as earnest money deposit and performance bank guarantee need to be submitted.

The guidelines can be accessed here.

UTTAR PRADESH RELEASES SOLAR POLICY 2017

Uttar Pradesh has released its solar policy for 2017 which will be effective from the date of notification.

 

The policy promotes solar rooftop and grid connected solar projects. As per the policy, the state aims to achieve 8% RPO by 2022 which is in keeping with the target of 4300 MW by then. Following are the salient features of the policy:

 

  • The state government is promoting the development of solar parks by providing land for its development. It also provides connectivity of solar parks to the nearest substation.

  • To promote third party sale, exemption on wheeling/ transmission charges for third party sale.

  • They will also be exempted from cross subsidy surcharge, transmission and wheeling charges.

  • Banking: Banking of 100% energy in every financial year shall be permitted.

  • Electricity duty for 10 years shall be exempted for sale to distribution licensee and solar PV projects will not have to take environmental clearance.

  • Building permission from local bodies will not be required for residential, industrial or commercial units.

  • Single window clearence will be taken for all solar power projects by UPNEDA.

The order can be accessed here.

CEA’S DRAFT NATIONAL ELECTRICITY PLAN

Central Electricity Authority  (CEA) published the Draft National Electricity Plan (NEP). Following are some of the main features of the report:

  • For the 12th plan (2013-2018), target capacity addition from renewable energy was set at 30,000 MW. However, in view of the revised target of adding 1,75,000 MW capacity of renewable energy sources by the year 2022, the capacity addition for every year has been revised. A target of 16,825 MW has been set for capacity addition in 2016-2017. As per the review, capacity addition from conventional sources is going to exceed its target by 115% and private players will play a big role in capacity addition. Coal based plants are likely to contribute around 39% of capacity addition.

  • Projections for peak demand and energy requirement has been done for utilities for which two scenarios have been considered in the report for the years 2021-22 and 2026-27. One is with the consideration of DSM, energy efficiency and conservation measures. As per calculations, both peak demand and energy requirement values reduce significantly in the scenario where DSM, energy efficiency and conservation measures are being considered.

 

  • The installed capacity from renewable energy sources was 42,849 MW as on 31.03.2016. The share of renewable energy sources in the same is about 13%. However, the share of renewables is estimated to increase as the government is giving a major thrust to renewable energy. India, as a country has vast solar and wind potential. It also has potential for biomass and small hydro projects.

 

  • The CEA carried out EGEAS studies to assess the kind of capacity addition that will be required to meet the projected demand for the year 2021-22. Hydro, gas and nuclear are given maximum priority. CEA has developed three scenarios which consider the different combinations of installed capacity from renewable sources so as to determine the capacity addition from 2017-22. From the study it can be concluded that no additional coal based capacity is required to fulfill the energy demands during the year 2017-22 if the capacity of hydro, gas and nuclear are 15,330 MW, 4,340 MW and 2,800 MW and additional renewable energy sources. However, coal based capacity of 50,025 is under construction in will probably be commissioned during 2017-22.

 

  • As per the report, Electric Power Survey Committee’s 19th report will come out in some time and on the basis of that, changes will be made to the final Electricity Plan. Due to shortage of natural gas in the country, except for the already existing plants, no new natural gas plants have been planned during 2017-22. Also, the coal based capacity of 50,025 MW that is under construction currently will be able to fulfill the capacity requirement for the years 2022-2027. As estimated, in the year 2021-22, generation from RES will be 20.3%. Imports from neighbouring countries is also estimated to increase from 5,100 MW in the years 2021-22 to 21,600 MW in the year 2026-27.

  • The compound annual growth rate of energy demand will grow from 4.42% between the years 2012-13 to 2015-16 to 6.34% from the years 2015-16 to 2021-22. This increase is significantly higher than that in the past considering the increase in demand and the increase due to implementation of PFA and other projects from the government of India between 2017-22. Therefore, as per the report, energy demand of 1611 BU and peak demand of 235 GW in March 2022 under CAGR= 6.34% look realistic and is likely to occur.

 

  • The CEA report has mentioned ambitious targets of achieving an installed capacity of 175 GW by 2022. The breakup of the energy derived by various sources has also been given in the report. The report also mentions the percentage of energy that will be derived from various sources and from different states. As per the report, 9 states will contribute almost 77% of installed capacity by 2022. The report also gives year-wise targets for achieving the desired target.

  • The targets set by the CEA will require strong indigenous manufacturing facility for equipments related to RES. Policy frameworks may be developed to encourage the same and this will also fall in line with the ‘Make in India’ policy.

 

  • At the end of the year 2021-22, the projected peak demand and the energy requirement is 235 GW and 1,611 BU respectively. As per the 18th EPS report, this is around 17% and 16.4% lesser respectively. Similarly for the years 2026-27, these values are 20.7% and 21.3% lower.

 

  • As for the capacity addition predicted from 2017-22, development of hydro, nuclear and gas based project is being given priority. Capacity addition estimated from gas, hydro and nuclear is 4,340 MW, 15,330 MW and 2,800 MW. The capacity addition from RES is predicted to be 1,15,326 MW. For the years 2022-27, similar trends as the previous 5 years will be followed. It is estimated that non-fossil based capacity is bound to increase by 46.8% at the end of 2021-22 and will further increase by 56.5% by the end of 2026-27. For the year 2017-22 and 2022-27, low hydro capacity addition of 11,788 MW and 5,000 MW has been estimated.

 

Haryana Solar Policy 2016

Recently Haryana has released its new Solar Policy dated 3 March 2016 effective from the date of notification.

 

The policy promotes both Ground mounted and Solar Rooftop installations. The Solar Purchase Obligation is also hiked to 3% by 2021-22, which may further increase to 8% under the ambitious plans of MNRE to promote Solar Generation by adding 100 thousand MW of Solar Power Nationwide, This would mean the installed capacity in Haryana would rise up to 3200 MW.

 

 

  • The Policy promotes development of Solar Parks through a joint Venture company has been formed by HSIIDC and HPGCL named “Saur Urja Nigam Haryana Limited” (SUN Haryana)

 

  • The Government of Haryana will also facilitate the lease/sub-lease of Panchayat land through SUN Haryana (Saur Urja Nigam Haryana) or directly for setting up of Solar Power Projects for minimum period of 30 years.

 

  • To harness the solar potential in the state the State Government shall provide Capital /generation subsidy/ incentives to Schools, Private and Public Institutes hospitals and commercial buildings for installation of rooftop solar power plants.

 

  • A total capacity of 1600 MW rooftop solar power plants shall be added by the Year 2021-22.

 

  • All new projects of MW scale generating solar energy will be treated as “Industry” in terms of Industrial Policy of the State. Thus all the incentives available to industrial units under the industrial policy from time to time, shall also be available to the solar power producers/units

 

  • Also the Solar Policy provides exemptions like Land use approval, External Development Charges, scrutiny fee and infrastructure development charges also Environment Clearance, Clearance from Forest Department, Stamp Duty for lease of land for projects

 

 

However the most progressive aspect of the solar policy is the Exemption on Electricity Duty Electricity Taxes & Cess, Wheeling, Transmission & distribution, cross subsidy charges, surcharges and Reactive Power Charges will be totally waived off for Ground mounted and Roof Top Solar Power Projects in the state of Haryana.

 

Banking

 

The banking facility shall be allowed for a period of one year by the Licensee Utilities and IPP will pay the difference of Unscheduled Interchange charges (UI Charges) at the time of injection and at the time of withdrawal. However, Withdrawal of banked power should not be allowed during peak and Time of Day (TOD) hours. If the banked energy is not utilized within a period of twelve

Months from the date of power banked with the concerned power utilities/Licensee, it will automatically lapse and no charges shall be paid in lieu of such Power. The banking facility shall be allowed for the grid connected rooftop solar power Projects on the same pattern as per MW scale projects.

The Policy can be accessed here.

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