Chhattisgarh State Electricity Regulatory Commission (Intra-state Availability Based Tariff and Deviation Settlement) Regulations, 2016

The Forum of Regulators (FoR) had come up with model regulations for forecasting and scheduling at the intra-state level last year. In line with that Chhattisgarh recently came up with its Intra-state deviation settlement Regulation.

Executive Summary:

  • The regulations will be applicable on all wind and solar generators with individual or combined capacity of 5MW and above that are connected to the state grid
  • Deviation will be calculated on the basis of available capacity

The draft regulations are in-line in every aspect with the model F&S regulations released by FoR earlier. However, the model FoR regulations had proposed a 10% deviation band for new projects and 15% for existing projects. Chhattisgarh has proposed a 10% band for all projects for both Solar and Wind.

Detailed Analysis:

Forum of Regulators have recently come up with model regulation for forecasting and scheduling and deviation settlement mechanism. The primary objective is twofold:

a) Facilitate large-scale grid integration of solar and wind generating stations, and b) maintaining grid stability and security.

Highlights of the regulation are below: -

  • All solar and wind generators connected to State grid have to provide day-ahead and week-ahead schedule – Revisions can be made on a one-and-half hourly basis.
  • Payment for generation shall be as per actual generation (this is different from the inter-state regulation, where payment is on the basis of scheduled generation).
  • The deviation slab has been kept as (+/-) 10% for all generators at Intra-state level.

Settlement calculation or Intra-state sale of power is as follows:

In case of Intra-State transmission, Penalty Mechanism for wind/solar generators:

The regulation can be accessed here.


CSERC Determination of Generic Tariff for Renewable Energy for FY 2015-16

The Chhattisgarh Electricity Regulatory Commission came up with its final order on the CSERC (Terms and Conditions for Determination of Renewable Energy (RE) Tariff) Regulations, 2015, (“the RE Tariff Regulations”) on 1st May, 2016. The RE Tariff Regulations specify the Terms and Conditions and the Procedure for determination of Generic Tariff by the Commission. Central Commission has specified capital cost as Rs.619.16 Lakh/MW for wind energy projects for the year 2015-16.The graph below gives a comparison of the RE tariff determined in year 2013-14, 2014-15 to 2015-16 for wind generators.

In the Draft Generic Tariff Order, the normative Capital Cost for the Solar PV power projects for was not declared by CERC and accordingly, the Commission proposed to consider the same Capital Cost of Rs. 605.85 lakh/MW for the Solar PV Projects and Rs. 1200 lakh/MW for Solar Thermal Projects to be commissioned in the period from 1 April, 2015 to 31 March, 2016.

The graph below gives comparison of Generic Tariffs for Solar Projects in the period from 2015– 2016 to the previous years. The tariff has been determined depending on the type of solar project as follows:

The Order can be accessed here.

CSERC’s order on non compliance of RPO by Discoms for the year 2011-12 & 2012-13

Chhattisgarh State Electricity Regulatory Commission (CSERC) passed an order on 15th October 2014 on non compliance of RPO by DISCOM’s of Chhattisgarh for the year 2011-12 and 2012-13.  In the order CSERC said that they will close this matter of non compliance of RPO by DISCOMs. The questions arises in the order is how, as CSERC has not mentioned about any action to be taken or any penalty to be imposed on the discoms for their non compliance. CSERC in its order have concluded that

“Our attention has been drawn towards the fact that in CSPDCL’s tariff determination, final true up for FY 2011-12 has been completed. Therefore, in our opinion, it would not be appropriate to force them for compliance of RPO for FY 2011-12 at this stage. We are also of the view, that penalizing the other respondents/DISCOM for non fulfillment of their RE obligation for year 2011-12 is unjustified”

Similar order was also given for FY 2012-13. The commission has only asked the Discoms to be more vigilant on fulfillment of RPO in the coming years.

The order can be accessed here ( FY 2011-12) and here ( FY 2012-13).


CSERC Drafts RE Tariff for FY 2014-15

Chattisgarh State Electricity Regulatory Commission (CSERC) has released a draft on 18th July 2014 for the determination of preferential tariff for Renewable Sources of Energy. The commission has invited comments and suggestions latest by 12th August 2014 and a public hearing will be held for the same on 22nd August 2014.

The details of the proposed tariff are highlighted in the table below:

The tariff proposed by the CSERC is in line with the tariff determined by CERC (Refer). CSERC has reduced the solar tariff compared to previous years, whereas there is slight increase in tariffs of other RE sources.

The CSERC draft can be accessed be here

Our Previous Blog on CERC RE Tariff can be read here

Contributed by Dheeraj Babariya

First amendment to Chhattisgarh’s REC RPO regulations

Chhattisgarh State Electricity Regulatory Commission (CSERC) recently brought an amendment to their RPO –REC regulations . The amendment mainly highlights the issue raised by obligated entities where there is an excess purchase of renewable energy/renewable energy certificates. They have requested the commission as there is an uncertainty in consumption pattern of captive users as there has been lower consumption than the anticipated consumption. The commission has agreed to the varying nature of captive consumption. Keeping this in mind, the commission has asked that in case of excess purchase/ shortfall of renewable energy or renewable energy certificates the obligated entities can meet their RPO in the succeeding year. The last proviso of Regulation 9.1 is proposed as :

“Provided any excess purchase/ shortfall of renewable energy or the REC procured by obligated entities for meeting the RPO in the obligation period shall be considered for meeting the RPO for the succeeding year.”

The commission has also proposed that the amended regulations will be called as “Chhattisgarh State Electricity Regulatory Commission (Renewable Purchase Obligation and REC framework Implementation) (First Amendment) Regulations, 2013” and shall be in force for the period of applicability of the principal regulations (CSERC RPO-REC Regulations 2011).

REConnect also participated in providing comments to the commission on the proposed amendment. In our opinion the ‘excess purchase/shortfall’ term will allow the obligated entity to carry forward its shortfall to the next year. We have requested the commission to allow carry forward the obligation to some extent only else the obligated entities will enjoy a longer compliance period which will which will affect the REC market and the revenue of renewable energy generators in the state. The carry forward should be allowed to obligated entities only if they show genuine interest in purchasing RECs and there is non availability of RECs in the market.

The REC market itself is in a bad situation from the past few months where RE generators could sell only a few fraction of their RECs. This situation was also highlighted by the Honourable CERC in its recent suo-moto petition for extending the validity of RECs. In the petition, CERC noted:

“Needless to say, the main reason for lapsing of RECs is the reluctance and / or apathy on part of distribution licensees to come forward to buy the RECs to meet their RPO”

We feel that the proposed amendment by CSERC is will affect the RPO compliance status of captive users in the state as it will allow them to easily carry forward their shortfall of RE power/ RECs.

The order can be found here.


Chattisgarh APPC for FY 2012-13

On 14th December 2012, Hon’ble Chattisgarh State Electricity Regulatory Commission (CSERC) rolled out its pooled cost of power purchase for Chhattisgarh State Power Distribution Company Ltd. (CSPDCL), Bhilai Steel Plant (BSP-TEED) and Jindal Steel (JSPL). As per this order, APPC for FY13 is shown below

DISCOM FY 2010-11 FY 2011-12 FY 2012-13 CAGR
CSPDCL Rs. 1.62/kWh Rs. 1.67/kWh Rs. 2.11/kWh 9.21%
BSP-TEED Rs. 4.02/kWh Rs. 3.26/kWh Rs. 4.66/kWh 5.05%
JSPL Rs. 3.00/kWh Rs. 3.00/kWh Rs. 3.00/kWh 0.00%

As per relevant CSERC regulations – “Pooled Cost of Power Purchase? means the weighted average pooled price at which the distribution licensee has purchased the electricity including cost of self generation, if any, in the previous year from all the long-term and short-term energy suppliers, but excluding those based on renewable energy sources, as the case may be.” which is in line with that of CERC and followed by most states.

As per our analysis, the percentage increase in APPC for CSPDCL for FY11 – FY12 has been around 3.08% whereas for FY12 – FY13, a steep increase of 26.34% has been recorded. Likewise, APPC for BSP-TEED increased by a whopping 42.9 %. On the contrary, the APPC for JSPL has remained at Rs. 3.00/unit for all three years (APPC for FY11 & FY12). The increase in APPC for CSPDCL and BSP-TEED can mainly be attributed to the fact that power purchase from central generating stations (CGS) has increased from 4789 MUs in FY11 to 8062 MUs in FY13 and short-term power purchase has almost doubled from 1215 MUs in FY11 to 2083 MUs in FY13 (courtesy: CSERC MYT Order FY11-12).

Proposal to charge RE generators for processing their applications in Chhattisgarh

Chhattisgarh Renewable Energy Development Authority ( CREDA ) and Chhattisgarh State Load Dispatch Centre have proposed the Chhattisgarh State Electricity Regulatory Commission ( CSERC ) for levy of fee for processing of applications for issuance of RECs.

They have proposed to levy Rs 10/ REC as charges from RE generators for their role.

Comments were invited up to 28.11.2011

Try India’s First Online RPO Calculator here

Important Order from CSERC on Metering

An important order was passed by Chattisgarh State Electricity Regulatory Commission (CSERC). Metering in the case of captive units has been an issue in claiming REC. While the CERC procedures are very clear about the requirements – need for a special energy meter and being grid-connected, the on-ground reality, as always, has been more complicated. If a co-located CPP were to install the required meter, will the SLDC read it?

The matter has been laid to rest in a recent order by CSERC, which requires the local DISCOM to install the required meter and for the Chattisgarh SLDC to read it on a regular basis to enable the petitioner to claim RECs.

The case is particularly interesting as the petitioner has common injection point from 3 turbines, only one out of which from a renewable source (biomass). Please see the order for more details.


Try India’s First Online RPO Calculator here

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