Jharkhand notifies draft open access regulations

Jharkhand State Electricity Regulatory Commission (JSERC) notified the draft open access regulations on 1st March, 2016. The prominent features of the regulation are as follows:

  • Validity: Till 31st March, 2020
  • Eligibility to avail Open Access: 1 MW and above (not applicable in case of captive generating plants that is availing Open Access for its own use).
  • Provisions for existing consumers and generating plants availing Open Access: The entities other than the DISCOM that have already been availing open access under some agreement or government policy shall submit details such as capacity utilized, point of injection, point of drawal, duration of availing open access, peak load, average load and other such information to the STU as well as SLDC within a period of 30 days of notification of these regulations.
  • Application procedure for Open Access:

  • Day-ahead Open Access: Application to be received 3 days prior to date of scheduling of power but not later than 1300 hours of the day preceding the scheduling of power.
  • Open Access charges: The entities availing open access have to pay the transmission and wheeling charges, cross-subsidy surcharge, additional surcharge, standby charge, reactive charges and imbalance charges as determined by Jharkhand State Electricity Regulatory Commission (JSERC) from time to time.
  • Formation of Coordination Committee: Within a month of the notification of the regulations and comprising a nominee each from the DISCOM, State Transmission Utility (STU), and SLDC. The State Transmission Utility (STU). The coordination committee shall facilitate timely approvals of connectivity and open access applications.
  • Connectivity level: For consumers or generating stations or captive generators, the connectivity level shall be as follows:

  • Procedure for connectivity to intra-state transmission system:

Analysis of Draft Regulations on Forecasting and Scheduling of Wind and Solar Generating Stations at State level in Jharkhand

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

Executive Summary:

  • The regulation will be applicable till 31st March, 2021, after it comes into effect.
  • Forecasting and scheduling will be mandatory for all Wind & Solar Pooling S/Ss, irrespective of their capacity, commissioning date and connectivity voltage level.
  • Deviations will be calculated on the basis of available capacity.
  • Penalty is a fixed amount beyond the error range (15% in case of projects commissioned before, and 10% for projects that are commissioned after the date of implementation of the regulation.).
  • Settlement will be done through the “Qualified Coordinating Agency” or QCA. However, the draft regulation does not mention anything about “aggregation” beyond the Sub-station level forecast.
  • SCADA & Telemetry data is to be mandatorily provided to SLDC.

Detailed Analysis:

JSERC has recently come up with draft 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 even though there are no wind projects, and the potential for wind is negligible b) maintaining grid stability and security. Highlights of the draft regulation are below:

Applicability: All Wind & Solar Pooling S/Ss, irrespective of their capacity, commissioning date and connectivity voltage level, have to provide day-ahead and week-ahead schedule, and intra-day revisions to a maximum of 16 per day.

- Revisions can be made on a one-and-half hourly basis, with prior notice of minimum1 hour for each revision.

- Payment for generation shall be as per actual generation (this is different from the inter-state regulation and the Karnataka draft regulation, where payment is on the basis of scheduled generation).

- Error is calculated based on Available Capacity (this is same as in the case of draft regulations of TN, MP, Odisha & Rajasthan, but different from the Karnataka draft regulation, where error is calculated on the basis of scheduled generation.).

- The deviation slab has been kept as (+/-)15% for existing generators, and (+/-)10% for upcoming projects whose commissioning date lies after the date of implementation of the final regulation.

- Penalty is calculated at fixed amounts per unit (whereas, for Inter-state it is calculated as a percentage to PPA rate).

- RPO accounting can continue as per existing arrangement, and needs no change.

- De-pooling shall be done based on either actual generation or available capacity.

Detailed Mechanism defined for Deviation Settlement

 

This is in line with the FoR Model Regulation, which states like TN, Odisha, MP and Rajasthan have also followed. This will help bring the evenness in the impact on generators, considering that the older RRF regulation had put huge liabilities on generators especially in the low wind season.

The penalty mechanism based on % deviation for all obligated generators:

The draft regulation was notified on 24th March, 2015, and has given time till 11th April, 2016, to submit comments to the Secretary, JSERC.

Other states like Maharashtra, Andhra Pradesh, Telangana and Gujarat are expected to follow soon with their draft regulations. A brief comparison of the draft regulation of the 6 states and the Model Regulation, is given in the table below:

Old/New – Refers to Old and New projects, w.r.t. the date of implementation of the final regulation.

TBA – To be announced.

 The regulation can be accessed Here.

 

 

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.

Captive power plant of Bokaro Steel Plant is co-gen : Jharkhand ERC

In an order dated 24th March 2014, state electricity regulator of Jharkhand (JSERC) is of the view that the captive power plant of Bokaro Steel Plant (a unit of Steel Authority of India) can be regarded as a co-generation plant. This means that power consumption from CPP of BSL will qualify towards fulfillment of RPO set under relevant regulations of JSERC.

BSL had prayed JSERC to

1. declare its CPP of 302 MW as co-generation power plant,

2. exempt BSL from applicability of RPO and

3. waive the RPO applicable on consumption of power from its CPP during FY11, FY12 and FY13.

CPP of BSL fulfills the definition of CPP as BSL has 50% equity in the plant and consumes 100 % of power generated.

JSERC also considered APTEL’s judgement in the case of MERC vs Century Rayon, where in it was declared that fastening of RPO on  would defeat  the objective of section 86 (1) (e) of the Indian Electricity Act.

JSERC has RPO targets defined till FY16. It has a total of 4% RPO (1% solar & 3% non-solar) for all three years FY14, FY15 & FY16.

BSL also is a distribution licensee in Jharkhand. As per data furnished in the order total RPO applicable on BSL for consumption of captive power comes around – 64.8 MW of non-solar and 17 MW of solar RPO.

The order can be accessed here.

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