EXTENSION ON WAIVER OF INTER-STATE TRANSMISSION CHARGES AND LOSSES FOR ELECTRICITY GENERATED FROM SOLAR AND WIND SOURCES

The Ministry of Power has released an order  which provides extension on the waiver of intra-state transmission charges and losses for transmission of electricity generated from solar and wind sources. As per the last order dated 14 June 2017, MoP had provided an extension on the waiver of transmission charges for electricity procured from solar and wind sources till 31.12.2019. This waiver has been further extended to 31 March 2022 for electricity transmitted both the sources of renewable energy.

 

The waiver shall be applicable for 25 years from the date of commissioning of the projects and only on those projects entering into PPAs with distribution licensees for sale of electricity for compliance of their RPO. The order also states that the waiver shall be applicable to projects awarded through competitive bidding process.

 

This order continues to encompass the same issues present in the previous orders. It is only applicable to solar projects from which the electricity will be sold to the DISCOMs. Secondly, it will only be on those solar projects entering PPAs for the compliance of RPO.

TSERC DETERMINES RETAIL TARIFF FOR FY 2017-18

The Telangana State Electricity Regulatory Commission (TSERC) has determined its retail tariff in an order dated 26/08/2017 for FY 2017-18. The tariff has been determined as follows:

 

The change in tariff from in the past 3 years can be understood with the graph below:

 

The wheeling loss for NPDCL has been determined as 4.40% and that for SPDCL as 4.20% at a voltage level of 11 kV.

A separate order was released for the determination of cross subsidy surcharge. The change in CSS  for industrial category is as follows:

 

The order can be accessed here. The order determining CSS can be accessed here.

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.

TSERC DETERMINES TRANSMISSION TARIFF FOR FY 2017-18:

The Telangana State Electricity Regulatory Commission (TSERC) has determined the transmission tariff for the FY 2017-18 and FY 2018-19 in its order dated 1/05/2017. The order states the transmission charge and loss as follow:

 

As per previous years, the transmission charge has followed a trajectory as depicted in the following graph:

The order can be accessed here.

MOP WAIVERS TRANSMISSION CHARGES AND LOSSES ON ELECTRICITY FROM SOLAR SOURCES

This is an attempt to encourage solar and wind  energy in the country, the Ministry of Power (MoP) had waived off the inter-state transmission charges and losses on the electricity generated by wind and solar sources of energy in September last year. That order has now been amended by the MoP  and as per the new order, transmission charges and losses are wavered off only on solar projects.  The MoP, after consultation with MNRE, CEA, CERC and POSOCO, has notified the following:

For generation projects based on solar resources, the waiver will be on projects commissioned till 31/12/2019. The waiver will be available till 25 years of date of commissioning of such projects and on solar  projects entering PPAs for sale of electricity to DISCOMs for compliance of RPO. The remaining of the terms and conditions remain the same as the 2016 order.

As per our analysis, this order by the MoP has a number of limitations. First of all, it is only applicable to solar projects from which the electricity will be sold to the DISCOMs. Secondly, it will only be on those solar projects entering PPAs for the compliance of RPO.

The order released in 2016 can be accessed here.

AERC releases retail tariff for FY 2017-18

The Assam Electricity Regulatory Commission (AERC) in an order dated  31st March released tariff for FY 2017-18 for the Assam Power Distribution Corporation Limited (APDCL). The change in energy charge from last year to this year has been depicted in the following table:

 

 

The tariff has increased since the last year specially for HT II industries and commercial users for who the tariff has increased significantly. There has been an increase in the CSS as well this year.

The open access charges are as follows:

 

Cross Subsidy Surcharge: The CSS for FY 2017-18 is Rs 1.31/kWh

Wheeling Charge : The wheeling charge applicable for FY 2017-18 is Rs 0.23/kWh

 Wheeling Loss: The wheeling loss at 11 kV is 11% and that at 33 kV is 5%

Transmission Loss: The transmission loss for Assam has been determined as 3.49%

 

The order can be accessed here.

KSERC RELEASES TARIFF ORDER FOR FY 2017-18

KSERC (Kerala State Electricity Regulatory Commission) has released a tariff order determining the retail tariff for FY 2017-18 for the state. Salient features of the order are as follows:

 

 

Transmission Charge: The transmission charge for FY 2017-18 is Rs 0.37/unit

Wheeling Charges: The wheeling charges determined for the FY 2017-18 are Rs 0.31/unit

Cross Subsidy Surcharge: The cross subsidy surcharge is  Rs 0.91/unit.

 

The order can be accessed here.

Odisha Declares Open Access Charges for 2014-15

Odisha Electricity Regulatory Commission (OERC) has determined the Open Access charges through a notification dated 11thApril 2016.

The new charges determined are applicable for FY 16-17 with effect from 11th April 2014. The details of the charges are in the table below:

 

 

The normative transmission loss at EHT (3.70%) and normative wheeling loss for HT level (8%) are applicable for the year 2016-17.

Additional Surcharge: No additional surcharge over and above the Cross-Subsidy Surcharge needs to be given to the embedded licensee.

No Cross-subsidy surcharge are payable by the consumers availing Renewable power.

20% wheeling charge is payable by the consumer drawing power from Renewable source excluding Co-generation & Bio mass power plant.

The order can be accessed here.

 

 

MERC Draft Order on Distribution Open Access Regulations, 2015

MERC (Maharashtra Electricity regulatory Commission) came up with its draft order on 16th September, 2015, on new regulations for distribution open access in the state of Maharashtra. The key changes were:

  • Reduction of Eligibility limit from 1MW to 0.5mw
  • Allowing sourcing of power from multiple sources
  • Allowing sourcing of power from power exchanges.

A comparative analysis, with the previous Open Access Regulation, 2014 is given below:

  • The open access consumers shall pay wheeling Charges, Cross Subsidy Surcharge and additional Surcharge as specified by the state commission in relevant orders.
  • Open Access Customer having a load of 5 MW or above shall pay Reactive Energy Charges and also shall pay Standby charges for drawl of power by open access consumer.

The Honorable commission has invited comments and suggestions from various stakeholders on the same, to be submitted till 8th October 2015.

In our opinion, MERC has proposed a progressive open access regulation. In the recent past, consumers in Maharashtra have faced various issues and problems of availing open access (for example, allowing open access only from one source and reduction in contract demand as a result of open access). The draft regulations seeks to do-away with such restrictive practices.

Further, lowering the limit of open access eligibility to 0.5MW and allowing sourcing power exchanges will help consumers and deepen the market.

Clear banking provisions and wider eligibility will also be beneficial for renewable energy projects  and is likely to result in higher development of RE projects as Maharashtra is a RE resource rich state.

 More details on the Regulation can be accessed here.

The previous MERC Open Access Regulation 2014 can be accessed here.

 

GERC (Gujarat) Proposes Tariff for Solar Projects

The Gujarat Electricity Regulatory Commission (GERC) in a draft notified earlier this month has proposed tariff for the solar projects. The Tariff proposed in the Discussion Paper will be applicable to the projects commission during July 1, 2015 to March 31, 2018. The commission through a separate public notice has invited comments and suggestions from the interested stake holders by 22nd June 2015.

The details of the tariffs proposed are in the table below:

Below is the graph for comparison between tariffs of CERC and GERC for previous years:

Wheeling Charges:

  • For Injection at 66 kV voltage level and above, transmission charges as applicable to normal open-access customers and transmission and wheeling loss @ 7% of the energy fed into the grid.
  • For Injection at 11 kV or above and below 66 kV, wheeling in the area of the distribution licensee will be allowed on payment of distribution loss @ 3% of the energy fed in to the grid. In the other case of wheeling within the State but in the area of a different distribution licensee will be allowed on payment of transmission charges as applicable to normal Open-Access Customers and transmission and distribution loss @ 10% of the energy fed in to the grid.

Cross subsidy Charges: As a promotional measure for solar power no cross-subsidy surcharges would be levied in case of third-party sale.

It is worth noticing that GERC had calculated its tariffs back in 2012 for coming years I.e. FY 13, FY14 & FY 15, while CERC revises its tariffs every year. The difference visible between tariffs of CERC and GERC for previous years is because the GERC hasn’t revised its tariff after 2012 and it is that period during which the capital cost of the solar modules fell drastically and so the difference didn’t reflect on the tariffs of GERC as it wasn’t revised.

Now the GERC has proposed new tariff which is quite lower (approx. 5.5%) than the tariff finalized by the CERC. A public hearing on the matter will take place on 29th June 2015.

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