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.

Lowest ever tariff of Rs.1.58 discovered at RESCO model tender in Madhya Pradesh

The latest tariff discovered for rooftop solar at Power Grid Corporation in Madhya Pradesh is INR 1.58 kWh/unit. This is the lowest tariff discovered so far in the country. AMPSOLAR, a New-Delhi based company bid for the lowest tariff for putting rooftop solar plants on the 10 government buildings. The highest tariff of INR 4.3 kWh/unit was by Renew solar for a private company. The tender auctioned under the RESCO model attracted 31 international as well as domestic developers who oversubscribed the 35 MWp tender capacity by 630%. The project will get a subsidy from MNRE of 20% and 25% from the state government.

In a RESCO model, the Bidders intend to use a Premise owned/used by the Procurer and enters into the PPA with Procurer for the supply of solar power as per RFP.

List of bidders and tariff is as below:

Establishments Tariff  (KwH/unit)
Municipal buildings Rs 1.69
Medical colleges Rs 1.74
Police establishments Rs 2.33
Government engineering colleges, ITIs, and polytechnics Rs 2.35
private institutions Rs 2.28

“The solar rooftop sector has been struggling with issues like the significant upfront cost for individual consumers and lack of enabling the framework for Independent Power Producers (IPPs) to develop a scalable business model. The bid results for 35 MWp Solar Rooftop tender are testimony to numerous policy, contractual and procedural innovations deployed in the RESCO programme to find solutions to these gaps,” said Manu Srivastava, principal secretary, renewable energy, in the Madhya Pradesh government.

Read the corrigendum document and detail list of bidders here.

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.

MNRE ROLLS OUT CLEAN ENERGY TRAJECTORY, PLANS TO ADD 100 MW SOLAR AND WIND CONTRACTS

The Ministry of New and Renewable Energy (MNRE), in order to fulfill its target of installing 175 GW renewable energy in the country by 2022, is planning to award 100 GW of solar and wind contracts by March 2020. Solar power shall form 75 GW of the total awarded power in the country.  To achieve 100 GW of solar capacity by 2022, the state and central ministries shall work together to lay bids for ground-mounted solar parks for 20 GW. Following is the plan suggested by the MNRE for solar capacity addition:

 

 

The Government plans to complete the bid process by March 2020 to give the developers time to build these projects. The MNRE also plans to set up solar projects for farmers. Such projects would involve setting up of small solar plants on fallow land and solarizing water pumps. There have been talks about setting up 20 GW solar manufacturing capacity, 5-10 GW floating solar power projects and 10 GW hybrid solar-wind power systems.

 

The article can be accessed here.

MNRE’s RENEWABLE ENERGY TARGETS AMBITIOUS AND UNATTAINABLE WITHOUT COOPERATION FROM STATE GOVERNMENTS

As reported by The Hindu the Ministry of New and Renewable Energy (MNRE) has set the targets for solar and wind capacity additions for this year to 12,000 MW and 4,000 MW respectively. This comes as a surprise since the achievement till October for the same has been 1750 MW and 1502 MW respectively. Although these targets are ambitious, they are achievable as per the industrial players only if the lack of seriousness shown by the state government towards promotion of renewable energy decreases.

As per the article, the state governments are not on board. All the energy producers face a plethora of problems such as high prices and cross subsidy surcharges (CSS). Also, some state authorities such as that of Maharashtra make it more difficult for the private producers to sell electricity. States such as Tamil Nadu allow net metering only for individual houses and not for educational institutes and factories. This goes against the intentions of the Government of India to see 40,000 MW of rooftop plants by 2020.

Co-founder and director of REConnect Energy Solutions, Vishal Pandya, made the following observation about the scenario “Whether it is open access or rooftop or enforcement of renewable purchase obligations, the intent on the part of the state machineries seems completely missing”.

Telangana Regulations for connectivity with the Grid and sale of electricity from the Rooftop Solar Photovoltaic

Telangana recently came up with its net metering regulation for connectivity with the Grid and sale of electricity from the Rooftop Solar Photovoltaic. This Regulation will be applicable to the distribution licensee, an eligible consumer and a third party owner of a Roof Top Solar PV System in the state of Telangana.

 

Following are some of the highlights of the regulations:

 

  • An eligible consumer shall install the grid connected Rooftop Solar PV System of the rated capacity as specified in this Regulation.
  • The tariff payable to an eligible consumer under the net-metering shall be the average power purchase cost of a Distribution Licensee.
  • The net metering facility, as far as possible, of an eligible consumer shall be in three phase service.
  • A single phase consumer is also eligible for net metering up to 3 KW.
  • The capacity of a Rooftop Solar PV System to be installed at the premises of an eligible consumer shall not be less than one Kilo Watt peak (1kWp) and a maximum of One (1) MWp.
  • The quantum of electricity consumed by an Eligible Consumer from the Rooftop Solar PV System under the Net Metering Arrangement shall qualify towards his compliance of Solar RPPO, if such Consumer is an Obligated Entity.
  • The quantum of electricity consumed by the Eligible Consumer from the Rooftop Solar PV System under the Net Metering arrangement shall, if such Consumer is not an Obligated Entity, qualify towards meeting the Solar RPPO of the Distribution Licensee.
  • The unadjusted surplus Units of the solar energy purchased by the Distribution Licensee under the provisions of sub-Para 10.3 shall qualify towards meeting its Solar RPPO.
  • The Rooftop Solar PV System under the net metering arrangement, whether self- owned or third party owned installed on the Eligible Consumer’s premises, shall be exempted from Transmission Charge, Transmission Loss, Wheeling Charge, Wheeling Loss, Cross Subsidy Surcharge and Additional Surcharge.
  • The Rooftop Solar PV System Developer shall retain the entire proceeds of CDM benefits in the first year after the date of commercial operation of the generating station.

 

The regulation 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.

Gujarat Solar Power Policy 2015

Gujarat came up with its new solar power policy on 13th August 2015, which would be operative up to March 31, 2020. This new policy intends to facilitate and promote large scale promotion of the solar power generation capacities in the state and the interests of all the investors, developers, consumers and various other stakeholders.

The main features of the Policy are as follows:

-The minimum size of a MW scale project shall be 1 MW and 1 Kw for KW scale projects.

-Any company or group of individuals shall be eligible for setting up a solar generating plant, irrespective of whether they or not fall under REC mechanism in accordance with Electricity Act 2003.

-There are project based provisions and incentives provided for Rooftop solar PV systems with net metering depending on the type of consumers. The same are listed in the table below (Click on the table for a larger view) :

The state is blessed with several natural resources of energy that augments its renewable energy growth. Through its proactive planning on capacity addition front it has successfully managed to eliminate the demand supply deficit. In sync with the solar power policy the Government has also launched the Industrial Policy 2015, through which Government would encourage private participation in all energy generation to meet the growing demands in the state.

The Gujarat power policy document can be accessed here.

The CEA installation and operations of meters regulation 2014 can be accessed  here.

The Industrial Policy document can be accessed here.

MNRE Notifies Year-wise Targets to Achieve the 100GW Solar Capacity

The New and Renewable Energy Ministry (MNRE) has notified a resolution on 6th July, 2015, which defines the Year-wise targets, so as to achieve the 100GW solar Capacity in next 7 years (I.e. by FY 2021-22).

The Ministry has stated that out of total 100GW solar energy target, 40GW solar capacity will be achieved through the Solar Rooftop system installations, while the remaining 60GW will come through medium and large scale grid connected solar power projects including projects in the solar parks.

The Year-wise targets defined to accomplish the targets of 100GW solar power is provided in the graph below:

The resolution also states that the three separate schemes supported by Government of India for capacity 19200 MW with financial allocation of 15050 crore will be launched, and MNRE may issue a detailed action plan for achieving the targets.

The MNRE Resolution can available here.

Madhya Pradesh Proposes Policy for Solar Rooftop

The Madhya Pradesh New & Renewable Energy Department (MPNRED) in its latest notification has proposed a policy for Net Metering based Solar Rooftop systems. The policy will come in force from the date of its notification in the state official gazette. The Office of the Commissioner, New and Renewable Energy department, Govt. of MP will act as the nodal agency.

The main objectives of the policy are the promotion of the decentralized Soar Photo Voltaic (SPV) systems, job creation and reducing carbon emission.

Applicability and Eligibility: All solar photovoltaic technology based rooftop power plants adopting net-metering mechanism shall be covered under this policy. The policy allows all the consumer of the distribution licensee to avail the benefits defined under the policy by installing rooftop systems.

Capacity Cap.: A minimum capacity of 0.5 kW and a maximum capacity of 250 kW, beyond this capacity guideline as per “solar Policy 2012” shall be applicable.

Energy Settlement and accounting: The provisions for energy accounting and commercial arrangements will conform to MPERC Grid Connect Net Metering Regulations, 2014 and subsequent amendments thereof.

Incentives and Tax Exemptions:

1.     The Rooftop systems will be exempted from banking, wheeling, and cross-subsidy surcharges as per MPERC regulation and will also be exempted from payment of Electricity Duty.

2.    The SRPs installed under the policy shall be exempted from property tax and the equipment’s purchased for the installation of Solar Rooftop projects shall be exempted from VAT and entry tax.

3.    All the All Eligible Consumers can avail Central Financial Assistance from MNRE as per the applicable scheme for Solar PV systems.

The more details on the Policy can be read in the document here

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