HERC announces a combined order for multiple matters

Haryana Electricity regulatory commission recently announced an order on multiple matters including Suo Motu for amendment and/or modification of HERC (Terms and Conditions of Determination of Tariff from Renewable Energy Sources, Renewable Purchase Obligation and Renewable Energy Certificate) Regulations, 2010 and its subsequent amendments (hereinafter referred to as RE Regulations, 2010). The Commission invited views and comments from the stakeholders and answered to them individually. The order also talks about the following:

Suo-Moto proceedings on RPO compliance

If an Obligated entity fails to comply with the obligation to purchase the required percentage of power from renewable energy sources or the renewable energy certificates, it shall also be liable for penalty as may be decided by the Commission under section 142 of the Act. Provided that in case of genuine difficulty in complying with the renewable purchase obligation because of the limited availability of renewable energy or non-availability of certificates, the obligated entity can approach the Commission for relaxation or carry forward of compliance requirement to the next year. However, in normal circumstances, the renewable purchase obligation shall not be waived off. Provided further that where the Commission has consented in writing on an application made by the obligated entity to carry forward of compliance requirement, the provision of regulation 58 (1) of these regulations or the provision of section 142 of the Act shall not be invoked.

The petition filed by Amplus seeking implementation of exemption or waiver of  wheeling charges, cross-subsidy charges, transmission and distribution charges and surcharge for ground-mounted and rooftop solar power projects

Waivers/concessions shall be applicable till the aggregate installed capacity of 500MW of Solar PV Plants in the State is achieved, where after the Commission shall review the provision of waivers/concessions taking into account the financial impact on the Distribution Licensees. Further, provided that waivers/ concessions once provided to any project shall be applicable for a period of 10 years,

The petition filed by Haryana Power Purchase Centre (HPPC) on behalf of the Haryana Distribution Licensees seeking a relaxation of Renewable Purchase Obligation

The Commission has considered the above submissions and is of the considered view that, after considerable deliberation, the RPO targets have been fixed. Further, even the Discoms have raised the issue of these targets being on the higher side. Further, it has been submitted by the Discoms / HPPC procurement of RE power in the peak hours will not only add to the demand-supply gap but also add to the surplus and backing down of cheaper conventional power putting an avoidable financial burden on the electricity consumers of Haryana. Hence, the Commission finds no reason to change the RPO targets as appearing in the draft Regulations as the same in the considered view of the Commission attempts to balance the interest of all the stakeholders.

Read the complete order here.

Haryana Finalizes Retail Tariff for FY 15-16

The Haryana Electricity Regulatory Commission (HERC) on May 7th, 2015 has finalized the retail supply tariff applicable for FY 15-16.

The summary of the Industrial tariffs is given in the graph below:

Commercial Consumers tariff defined for FY 15-16 is Rs. 6.3/kVAh compared to Rs. 5.71/kVAh, a rise of 9.4% which is significant. And the LT industrial tariff for FY 15-16 has been increase by 6-7% compared to previous year.

Wheeling Charges:  The wheeling charges have been fixed at Rs. 0.85 per kWh.

Cross Subsidy Surcharges:The CSS for HT industrial consumers will be Rs. 0.93 per unit, and for Non-domestic HT consumers Rs. 1.46 per unit. A graph on the CSS defined by the commission over the years is below:

The CSS for industrial consumers saw a decrease of almost 54% compared to previous year and the same of Nondomestic HT consumer has been increased by 73%. This increase in CSS for Non-domestic consumer will make open access transaction costly while for Industrial consumers this decrease in CSS will make open access and exchange transactions more viable.

The order can be accessed here.

REConnect Newsletter Volume 43 – OPEN ACCESS

Dear Reader,

We are pleased to present Open Access Vol 43 – our monthly newsletter covering RECs and regulatory and market developments in the renewable energy space.

The main article covers:

The government announced the re-introduction of Accelerated Deprecaition for wind projects. This was a major announcement for the Renewable energy industry. Our main article provides a detailed analysis of the impact of this change, and the relative merits and de-merits of investing in wind or solar projects.

This issue also covers:

– Details of the next batch of bidding for solar projects announced in JNNSM

– Details of the FOR meeting that took up the need for strong RPO enforcement

– Various other regulatory developments in Maharashtra, Rajasthan, Chattisgarh, Karnataka, and other states

Past newsletters can be accessed here – http://www.reconnectenergy.com/newsletter/past-newsletters/

For latest news and updates, please visit our blog at – http://reconnectenergy.com/blog/

 As always, we will love to hear your feedback on the newsletter.

– Team REConnect

Haryana hikes Cross Subsidy Surcharge

In a move that will make open access non-viable for consumers in Haryana, cross-subsidy for all the categories of consumers in Haryana has been hiked significantly. The increase is in the range of 83% to 281%, making it more difficult to sourcing power through open access.

In the recent tariff order released by Haryana Electricity Regulatory Commission (HERC) on 29th May, 2014, the cross-subsidy surcharge has been hiked significantly, as shown in the graph and table below:

Apart from the extremely high cross-subsidy surcharge, consumers have also been burdened with an additional surcharge of Rs 0.50/kWh. HERC has levied the additional surcharge with respect to the stranded capacity due to the open access consumer availing power from alternate sources.

For details on CSS click here.

Contributed by Mithun Dubey.

Haryana RE Tariff for FY 2013-14

The electricity regulatory commission of Haryana – HERC in an order dated 20th Nov 2013 has declared tariff for all renewable energy projects to be commissioned in FY 2013-14.

Following are the numbers for various projects –

Solar PV (Crystalline) – Rs. 5.70 per unit.

Solar PV (Thin Film) – Rs. 5.36 per unit.

Solar (Rooftop) – Rs. 5.32 per unit.

Solar (Thermal) – Rs. 11.60 per unit.

Wind (300-400 W/m2) – Rs. 3.62 per unit.

Biomass (water cooled) – Rs. 6.97 per unit.

Biomass (air cooled) – Rs. 7.05 per unit.

Co-generation (bagasse) – Rs. 4.15 per unit.

It is important to note that the tariff for solar projects (PV Crystalline) has been the lowest as compared to tariff in states of Punjab, Rajasthan, UP, MP, Maharashtra & Gujarat (Source – www.ireed.org MNRE GOI). Likewise, the tariff for co-generation was also the lowest in comparison to tariff in above mentioned states.

This downward trend of tariff is a sign of progressiveness towards reaching grid parity for RE technologies.

The order can be assessed here.

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