Andhra Pradesh Electricity Regulatory Commission (APERC) has released its forecasting, scheduling and Deviation settlement of solar and wind generation on 21/08/2017.

Executive Summary:

★ Applicability:

○ Regulation is effective from Aug 21st, 2017.

○ SLDC to issue detailed guidelines for QCA registration, scheduling procedures, communication protocols and formats etc., on or before Dec 1st, 2017.

○ Forecasting, Scheduling and Deviations Settlement shall commence from Jan 1st, 2018.

Further, generators commissioning on or after Jan 1st, 2018 shall not be allowed to be commissioned unless they start providing schedules as per this regulation.

○ Levy and collection of DSM Charges shall commence from Jul 1st, 2018

★ Regulation Applicable on: All the GRID Connected Wind and Solar Power Generators in AP.

★ Deviation Accounting:

★ Point of Forecasting: Pooling Station or STU/DISCOM Feeder where injection is made.

★ Virtual Pool: To enable benefits of larger geographical area and diversity, aggregation of forecast is permitted under “Virtual Pool” where Generators have an option to account for their deviations at an aggregated level through a Qualified Coordinating Agency (QCA).

○ A similar provision is also permitted in Karnataka by Hon. KERC in its final regulation which is already being implemented w.e.f 1st June 2017.


★ Role of a QCA:

○ Provide forecast, schedules and periodic revisions;

○ Coordination with DISCOM/STU/SLDC for metering, data collection, communication/issuance of dispatch/curtailment;

○ Commercial settlement of DSM charges and de-pooling of charges among generators;

○ All other ancillary and incidental matters.

★ Important differences between wind and solar power scheduling:

○ 16 revisions (excluding collective transactions) are permitted starting from 00:00 Hrs of the     day for Wind Generators

○ 9 revisions (excluding collective transactions) are permitted starting from 05:30 Hrs upto 19:00 Hrs of the day for Solar Generators

○ All the revisions are effective from the 4th time-block

○ Aggregation “seems” to be allowed between wind and solar generation as the concept of virtual pool aims to capture not only the larger geographical area but also the diversity (among different asset class).


★ Important differences between intrastate and interstate transactions:

○ Wind and Solar generators having common interface meter at a pooling station but carrying out both – interstate and intrastate transactions at the same pooling station, the scheduling for the same shall to be carried out separately.

○ Approved open-access capacity (in MW) in such cases alone shall be considered as AvC for the purpose of DSM charges calculations.

■ Observation: Since the regulation permits common interface meter for such transactions and AvC determination is also clarified, the DSM charges may be computed in pro-rata basis for such pooling station as the common interface meter would only provide Pooling Station level actual generation.


○ Further, aggregation is permitted only for similar type of transactions i.e., interstate transactions are not allowed to be aggregated with intrastate transactions for the purpose of DSM charges determination.

○ QCA shall separately settle DSM charges for intrastate and interstate transactions.

★ Determination of DSM Charges for INTRASTATE transactions:

Note: DX is the absolute error in kWh for a given error band starting from X% as outlined in column 2.

 ★ Determination of DSM Charges for INTERSTATE transactions: 

Note: DX is the absolute error in kWh for a given error band starting from X% as outlined in column 2.


The Andhra Pradesh Electricity Regulatory Commission has recently proposed the tariff for wind energy sources which will be applicable for the projects commissioned during FY 2017-18. The tariff will be applicable for 25 years. The details of the tariff proposed are as follows:


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The order can be accessed here.


The Andhra Pradesh Electricity Regulatory Commission (APERC) has release RPO percentages for the years 2017-22. The RPO percentages have increased significantly since last year. In the year 2016-17, the RPO percentages were 2% for non-solar and 1% for solar. For the year 2017-18, the percentage has been increased to 6% and 3% for non-solar and solar respectively.

This percentage is applicable on total consumption of electricity including hydro and mini-hydel. The RPO percentages given in the regulation are as follows:


A comparison between the MoP trajectory and the percentages for this FY is given as follows:


The regulation can be accessed here.


The Andhra Pradesh Electricity Regulatory Commission has released an order dated 31st March, 2017 regarding the Tariff for Retail Sale of Electricity during 2017-18.


The below table gives the comparison between the new tariff determined from FY 2017-18 and FY 2016-17 and % change in the tariff from  FY 2016-17 and FY 2017-18 for different categories:


Wheeling Charges:

The tariff included the wheeling charges for FY 2017-18 and they are given as follows:

No information about wheeling loss has been given in this order.


Cross Subsidy Surcharge:

The Cross Subsidy Surcharge (CSS) for FY 2017-18 has been given below for different categories:

The regulation can be accessed here

Andhra Pradesh Electricity Regulatory Commission (Renewable Power Purchase Obligation and its Compliance)

The Ministry of Power (MoP) had recently declared the national RPO trajectory.  The order had enlisted the yearly RPO trajectory for both non-solar and solar power purchase from 2016-17 till 2018-19. Following the steps of MoP RPO trajectory, Chhattisgarh, Himachal Pradesh and now Andhra Pradesh has notified its Renewable Power Purchase Obligation and its Compliance, regulations which will be effective from April 17, 2017.

The regulation will be applicable to:

  • The distribution licensee
  •  Or any person, consuming electricity procured from conventional sources through open access third party sale,
  • Every consumer owning a captive generating plant of installed capacity 1 MW and above and synchronized with the Grid.


The table below shows the Minimum Quantum of Purchase in percentage (%) from renewable sources (in terms of energy in kWh) of total consumption:


The said obligations will be applicable on total consumption of electricity by an obligated entity, excluding consumption met from hydro electric sources of power.



  • RPO to be applied on co-generation power
  • The distribution licensees shall compulsorily procure 100% power produced from all the Waste-to-Energy plants in the State, in the ratio of their procurement of power from all sources.
  • The Consumption from hydro sources to be excluded
  • RPO % is proposed to increase steeply – from 11.50% in 2016-17 to 17% in 2018-19 line with the MoP Trajectory.
  • The graph given below gives a comparison between the MoP recent RPO Trajectory and APERC’s RPO Trajectory

The regulation can be accessed here

Analysis of Regulation on Forecasting and Scheduling of Wind and Solar Generating Stations at State level in Andhra Pradesh

In the follow-up after the FOR – Model Regulation for the Intra State level projects, APERC has come out with a Draft Regulation on Forecasting & Scheduling for the Wind & Solar projects at Intra State level in Andhra Pradesh, based on the mechanism suggested in the Model Regulation. Earlier Odisha, Madhya Pradesh, Karnataka, Tamil Nadu, Rajasthan and Chhattisgarh had come out with their DSM Regulation on Forecasting & Scheduling of Wind & Solar.

Executive Summary:

  • Forecasting and scheduling will be mandatory for all the wind and solar generators connected to the AP State grid and connected via pooling stations irrespective of their capacity (MW) and date of commission of the plant.
  • Deviations will be calculated on the basis of Available Capacity (AvC).
  • The deviation slab has been kept as (+/-) 10% for all the wind and solar generators beyond which penalty is applicable at fixed rate as defined below. Whereas the deviation slab for plants commissioned prior to the effect of the regulations is kept at (+/-) 15%.
  • Settlement will be done through the “Qualified Coordinating Agency” or QCA, or the “Aggregator”.
  • SCADA & Telemetry data is to be mandatorily provided to SLDC. Protocols for the same shall be determined later by the SLDC through the detailed procedures.
  • Provision of six months for existing wind and solar generators to comply with the regulation from the date of publication of these regulations in the official gazette.
  • All the new wind and solar generators which shall be commissioned after six months from the effective date of the regulation shall comply these norms before commissioning of the project and connecting with the state grid.
  • 16 revisions allowed during the intraday with each revision effective from 4th time block.
  •  Payment for generation shall be as per the actual generation.

Detailed Mechanism defined for Deviation Settlement

In case of Intra-State transmission, Penalty Mechanism for existing generators:

In case of Intra-State transmission, Penalty Mechanism for new generators:

The regulation can be accessed here.


APERC New Cross Subsidy Surcharge Applicable for All OA consumers In AP

The Andhra Pradesh Electricity Regulatory Commission (APERC) has come with an order stating that, the Cross Subsidy Surcharge will be levied on the consumers who opt for Open Access for the Financial Year 2015-16.

The Table below summarizes the new cross subsidy surcharge applicable during FY15-16:

As per previous years there was no CSS charges applicable in the state of Andhra Pradesh. This is a considerable setback for the consumers who are availing OA and purchasing power from exchanges. The Average charges through exchange is close to Rs 4.60 for the OA consumers. With implementing CSS it would be close to Rs 6.60 to 9.20 depending on consumer category for Industrial and Commercial, which is very high compared to DISCOM Tariff.

With the current scenario we can rule out OA in  Andhra Pradesh through exchanges. The only option of purchasing power through open access is 3rdparty power through Solar, as the CSS is waved off for Solar generators under Solar policy of the state. But CSS is applicable for purchasing power through other renewable source.

As Andhra Pradesh being a power surplus  state, this would be great revenue for the DISCOMs as all the consumers have to buy the power through DISCOM and option of availing power though exchange is completely ruled out. With this Excess consumption of units and revenue, the DISOCM may recover the losses from previous years.

The order can be accessed here.

Contributed by Vignesh Kumar Adiraju

APERC Finalizes Tariff for FY 15-16

The Andhra Pradesh Electricity Regulatory Commission (APERC) has finalized the tariff for the electricity consumer of the state. The tariff will be applicable during FY 15-16.

The graph below gives comparison between the new tariff determined for FY 15-16 and the tariff of FY 14-15 and the % increase in tariff for different categories.

Wheeling charges: The tariff order did not include the wheeling charges and wheeling losses. Below is the wheeling charges and wheeling losses given by the commission in its multiyear tariff order (Order dated 09.04.2014) , which was given before the bifurcation of the state.

Wheeling loss: 

The order given by the commission has not given any clarity on the determination of cross subsidy surcharge and any other charges besides the above.

The tariff order can be accessed here.


Andhra Pradesh Wind Power Policy 2015

Andhra Pradesh government has released its new wind power policy, the new policy will be known as Andhra Pradesh Wind Power Policy 2015. It will replace the previous policy in the state. The policy has been revised to attract new investment in the state. NREDCAP will act as a Nodal Agency under this policy.

The new policy targets of achieving 4000 MW capacity addition through wind power in next five years. The main objectives of the state government is to encourage & develop the wind energy generation in the state, to attract private investment and establish large wind projects. The policy will remain applicable for next 5 years or till amended or replaced by new policy. Wind power projects commissioned under the policy will be eligible for the incentives declared under this policy, for a period of ten (10) years.

All registered companies, Joint Venture Companies, Central and State power generation/ distribution companies and public / private sector wind power developers will be eligible for setting up of wind power projects. The more details of the policy are as in the table below:

The category of projects to be developed is given in the table below:

The power generated from wind projects under category-I will be for sale within the State only. The projects under category-II and category-III will not have any cap on capacity and both of these projects will be eligible for REC mechanism.

Apart from this the policy also talks about repowering i.e. for projects where lower capacity and lower hub height WEGs were installed and which have completed more than 15 years of life, proposals will be considered for replacing older turbines with higher capacity WEGs. In such cases, existing PPAs with the state will undergo amendment with extension of time period for another 25 years. This is subject to the condition that the energy generated from additional capacity available due to repowering, will be paid at the rate of tariff determined by APERC from time to time.

The Wind policy can be found here.

APERC: Tariff for the Wind & Industrial Waste Power projects

Andhra Pradesh Electricity regulatory Commission (APERC) in its order dated 6th September 2014 has given tariffs for the wind energy generators who have completed 10 years of their commercial operation. The tariff will be applicable to the wind generators of both the states i.e. Andhra Pradesh and Telangana.

The project developers through their submissions requested commission to fix a reasonable tariff as they incurred higher losses due to lower PLF’s achieved. They also requested that in the initial years they paid higher wheeling charges while tariffs were low.

The commission in its order said that as the petitioners were the first movers for the wind generation in the then state of Andhra Pradesh. The PLF’s achieved by petitioners have varied between a range of 6% to 15% against the projected 20% such lowered efficiency has affected the performance of the wind mill generators.

After hearing all the respondent and taking all submissions into consideration the commission fixed single part tariff of Rs.3.37 per unit and said that the tariff should be continued for all these projects till the expiry of the respective PPAs.

In another hearing for fixing the tariff for industrial waste based power projects from 11th year to 20th year of operation, the commission in its order dated 1st September 2014 concluded that the tariff fixed for Biomass based power projects would also be applicable to the Industrial waste based power projects.

The commission in its order dated 19th July 2014 has fixed the fixed cost component for the Biomass based projects in its orderdt.19.07.2014. The details of the tariff are in the table below:

The relevant order can be accessed here.

The order for the Industrial waste based projects can be accessed here.

Our Previous blog post on APERC biomass tariff can be read here.

Contributed by Dheeraj Babariya. 

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