Five More States to Kick Start Power Sector Reforms

In addition to Meghalaya, Goa and Uttarakhand, five more states would be signing a joint statement of reforms with the Central Government in order to enable 24×7 power supplies to consumers. The states Rajasthan, Andhra Pradesh, Jharkhand, Chhattisgarh and Assam are set to take up the government’s “Power for All” programme. Maharashtra is also trying to achieve the impetus to take up the programme. As the Center is pursuing states to cut their losses and by hiking tariff and raising funds from the market, the states would be hiking their tariffs as follows:-

Among these big states only Andhra Pradesh doesn’t require any raise in the tariff, as it is not burdened with any financial losses unlike the rest of the states. The following graph depicts the financial losses incurred and the funds required by the states to cover up their losses, with Rajasthan being the state with highest financial losses and Assam being the least.

The above update has been taken from Business Standard’s article published on 19th October, 2015 which can be accessed here.

Our previous blog on power sector reforms can be accessed here.

JERC issues stern orders on RPO

The Joint Electricity Regulatory Commission (JERC) for Goa and Union Territories in its order dated 12th Nov 2014, has again showed strictness towards RPO compliance. In the order the commission has asked all the distribution companies to comply with their RPO and submit a report on the compliance.

In its earlier orders, the commission has given strict directions for RPO target compliance.

A brief summary of the hearing a below:

Secretary (Power) Goa: The commission after examining the report has said that the respondent has failed to submit facts and figures to meet its Solar & Non-Solar RPO, therefore the commission has asked the respondent to submit a detailed action plan to meet RPO, has also directed the respondent to meet RPO of all current and backlog years and to submit a quarterly compliance report to the state agency for verification & certification to the commission without fail.

Secretary (Power) UT Andaman & Nicobar: The commission has said that the respondent has successfully complied with the RPO targets, further commission has asked the licensee to continue submitting the quarterly compliance reports to the state agency.

Secretary (Power) UT Chandigarh: The commission after reviewing the report submitted by the licensee, said that the respondent has successfully complied with the RPO targets of 2nd quarter, the commission has further directed the respondent to regularly submit the quarterly compliance report.

Secretary (Power) UT Dadra & Nagar Haveli: The commission said that the respondent has not complied with the RPO targets and has submitted an incomplete report. The commission has asked the licensee to submit a detailed action plan by 09th Feb 2015 and to meet RPO targets. The commission has directed the Licensee to submit quarterly compliance report on regular basis to the state agency and to the commission without fail.

Secretary (Power) UT Daman & Diu: The commission observed that the licensee has not complied with the RPO current year and had not complied with the commission’s previous orders. It has found that there is huge back log of Solar and non-solar RPO of the respondent. The commission has directed the respondent to meet the RPO targets of current and the previous years and to submit action plan to meet the RPOs, and also submit quarterly compliance report.

Secretary (Power) UT Lakshadweep: The respondent did not submit the report of RPO for back log and current year. The commission said it has taken a serious note on non-appearance in the present petition and non-compliance of its order, and has asked respondent to meet all the back log and current RPO targets. The commission has also asked the licensee to submit a detailed plan to meet RPO targets.

Secretary (Power) UT Puducherry: The commission observed that the respondent has not complied with the RPO targets, so it has asked them to meet the current and back log targets. The commission has asked for a detailed action plan and submit the quarterly compliance reports.

Though the UTs do not significantly contribute much to the demand of electricity, JERC has taken their RPO compliance seriously, but has not yet imposed penalties on any of them.

The order can be accessed here.

JERC orders amendment to RPO Regulation

JERC (Joint Electricity Regulatory Commission) for Goa and Union Territories has ordered amendment to its principal RPO Regulation 2010. The order has already come in force from 22nd April 2014.

The Commission under this amendment has declared RPO targets till FY 21-22. The main highlights of the amendment are as below:

There are few changes in the definitions as:

1.       Renewable Energy Sources - Electricity generating sources recognized or approved by the Ministry of New and Renewable Energy and includes bundled power purchase (to the extent of Renewable Energy content in the bundled Power), power generated from co-generation based power plants wherein the fuel used is non fossil fuel duly recognized as renewable sources by MNRE and certified by the State accredited agency.

2.       ObligatedEntity – The entity mandated under clause (e) of sub-section (1) section 86 of the Act fulfill the renewable purchase obligation under these Regulations and includes distribution licensee, captive user for 1 MW and above with fossil fuel (excluding co-generation based captive power plants) and open access consumer.

3.       Renewable Purchase Obligation – The quantum as mandated under clause (e) of sub-section (1) of section 86 of the Act and specified under these Regulations for the obligated entity to purchase electricity generated from renewable energy sources.

The relevant order can be accessed here.

Our previous blog on JERC Solar Tariff can be read here.

Contributed by Dheeraj Babariya.

JERC Drafts Solar Tariff Regulation

Joint Electricity Regulatory Commission (JERC) for Goa and Union Territories (UT) on 4th July 2014 has released a draft Regulation of Solar Tariff applicable to Ground Mounted Grid Connected & Rooftop Solar with Net Metering. The regulation shall be applicable to all grid connected Solar PV (including rooftop PV) and solar thermal projects of Goa and the Union Territories.

The primary objective of the policy is to reduce the power deficit in the Union Territories through Solar Power generation. The policy aims to replace diesel power generation by solar power.

Overall the policy is a good initiative by JERC to reduce the dependency on diesel generators. In the recent meeting of Forum of Regulators, emphasis was laid on Solar Rooftop and Net Metering. It can be expected that various SERC’s may come up with their Solar Rooftop and Net Metering policies, which will definitely encourage the sector, that may face tough times ahead after AD was reintroduced for Wind Power.

The Draft Regulation can accessed here.

Contributed by Dheeraj Babariya.

JERC (Goa & UTs) imposes penalty for non-compliance of RPO

Joint Electricity Regulatory Commission (JERC) for UTs and Goa has become the second electricity regulator to impose penalty for non-compliance of RPO targets. JERC (Goa & UTs) had previously through a suo-motu order (dated 27th Dec 2013) directed all obligated entities to comply with RPO targets of FY11 to FY14 by 31st March 2014 and submit a detailed report by 17th April 2014. JERC notes that some of the obligated entities have failed to fulfil the targets.

Goa – In case of Goa, JERC after scrutiny of the report (submitted by former) was of the view that Goa has failed to fulfil Solar RPO targets from FY11 to FY14 and has consequently been directed to submit a detailed report by 21 July 2014. JERC has asked Goa to meet its RPO targets (along with all backlogs) positively.

Andaman & Nicobar Islands – JERC found that respondent has met with all targets up-to FY14. JERC emphasized that quarterly submission of RPO compliance reports to state agency should continue without fail.

Chandigarh – Chandigarh has also fulfilled RPO targets from FY11 to FY14. JERC mentioned that Chandigarh has also submitted the planning report for compliance of RPO targets of FY15.

Dadra & Nagar HaveliJERC has taken serious steps for non-compliance of RPO targets. The utility of Dadra & Nagar Haveli has therefore been asked to deposit INR 110 crore (Provisional) with the state designated agency positively by 30th September 2014 if it fails to comply with targets by 21st July.

The utility has also been directed to submit proposed plan to meet RPO targets of Fy15.

Daman & Diu – As per JERC, Daman & Diu has also not complied with RPO targets of FY11- FY14. The regulator also emphasized that OA consumers in the area of licensee are also required to meet the targets. The utility in Daman & Diu was asked to submit detailed report by 21st July 2014.

Lakshadweep – Lakshadweep has failed to meet non-solar RPO targets for FY11 to FY14. However, no penalty was imposed with respect to such non-compliance.

Puducherry – Puducherry has failed to comply with solar RPO targets for FY11-FY14, noted JERC. In this case also, there was no penalty imposed and the utility of Puducherry was asked to submit detailed report by 21st July 2014.

The additional information w.r.t amendment to principal RPO regulations is that the same has been forwarded to Controller of Publication, Govt. of India for publication. Our blog-post on the issue can be read by clicking here.

For more details refer the order here.

Joint ERC proposes amendment to RPO regulations

JERC; the joint electricity regulatory commission for the state of Goa and UTs has recently proposed a draft to its principal RPO regulations of 2010. The main highlight of the amendment is the declaration of RPO targets from FY14-FY22. The targets set for the years till FY22 are as in the table below:

There were few other changes in definitions as:

1. Renewable Energy Sources – Electricity generating sources recognised or approved by the Ministry of New & Renewable Energy and includes bundled power purchase (to the extent of renewable energy content in the bundled power), power generated  from cogeneration based power plants and certified by the state accredited agency. 

2. Obligated Entity – the entity mandated under clause (e) of sub-section (1) section 86 of the Act to fulfill the renewable purchase obligation under these regulations and includes distribution licensee, captive user for 1 MW and above with fossil fuel (excluding co-generation based captive power plants) and open access consumer.

3. Renewable Purchase Obligation - quantum as mandated under clause (e) of sub-section (1) of section 86 of the Act and specified under these regulations for the obligated entity to purchase electricity generated from renewable energy sources. 

 

Comments on this were invited by 23.01.2014.

The draft order on amendment can be accessed here.

Principal RPO regulations 2010 of JERC are available here.

India drafts Offshore wind energy policy

India recently unveiled a draft policy, for offshore wind energy development in the nation.

Offshore wind farms are preferred because of the non-availability of land in densely populated coastal areas with high wind potential. The added efficiency of offshore wind power is another advantage over onshore wind turbines. Govt. of India on the basis of preliminary assessments has identified deployment along the coastal belt of Karnataka, Kerala, Goa and Gujarat as feasible, with a potential of 1 GW offshore wind capacity installation along the coastline of Rameshwaram and Kanayakumari in TN.  According to an article published  in Hindu, ANERT is preparing to initiate a wind monitoring study to identify potential offshore sites with the assistance of dutch government (a pioneer nation in harnessing wind energy as renewable resource).

Govt. of India in its draft recognizes the growth of offshore wind energy in EU zone and in highlighting the global status of this particular technology, quoted that European Union has an aggressive target to avail 40 GW of offshore wind power by 2020 and 150 GW by 2030.

Maritime zones spotted by the Govt. in which offshore wind farms can be built are Indian territorial waters (within 12nm from coastline) and between 12 nm to 200 nm where India has right to construct structures such as wind farm installations as per international laws.

Govt. of India proposed to establish a designated agency named – National Offshore Wind Energy Authority (NOWA) which will be a single window agency and will co-ordinate with concerned ministries for necessary clearances. Offer of blocks will be made through an open international competition process. For power evacuation, state electricity boards (SEBs) are entrusted to provide necessary onshore infrastructure where as offshore power evacuation upto first onshore substation shall be developed by wind farm developer.

Incentives such as tax holiday for ten years and concession in customs and excise duties for procurement of technology and equipment shall be made available to the manufacturers of offshore wind turbine. Besides this service tax on services conducted by indulging third party shall be exempted.

The draft policy can be accessed here.

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