Maharashtra joins the list of states with final Forecasting and Scheduling regulations

Recently Maharashtra became the latest state to publish final Forecasting and Scheduling (F&S) regulations. These regulations were published in the State Gazette on July 20, 2018. With this, all supposedly “RE rich” states except Gujarat and Tamil Nadu have finalized their F&S regulations.

The detailed summary of the regulations is as below:

Regulation Applicable on All grid-connected Wind and Solar Power Generators with pooling station capacity not less than 5MW or that of an individual Generator connected to some other Substation, shall not be less than 5 MW.

Deviation Accounting: The deviation accounting can be either carried out based on the Available Capacity:-

Available Capacity (AvC) = 100/Actual Generation – Scheduled Generation AbsoluteError in %

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

Keypoints

  • No Aggregation – Clause 5.13 specifies the aggregation of schedules at Pooling Substation level only, and not of multiple pooling station capacity.
  • Further charges in case of shortfall in DSM pool – Clause 12.1 (d) specifies that any shortfall in the aggregate amount of Deviation Charge payable by Solar and Wind Energy Generators at the State periphery and the amount receivable from them by the Pool Account shall be recovered in proportion to their deviation reflected at the State periphery.

Sr.

No.         

Absolute Error in %age terms in 15-minute time block                               Deviation Charge payable to Pool Account for Wind/Solar Generation
1 < = 15%

None*

2 >15% but <=25% At Rs. 0.50 per unit for the shortfall or excess beyond 15% and up to 25%
3 >25% but <=35% At Rs. 0.50 per unit for the shortfall or excess beyond 15% and up to 25% + Rs. 1.00 per unit for the balance energy beyond 25% and up to 35%
4 >35%

At Rs. 0.50 per unit for the shortfall or excess beyond 15% and up to 25% + Rs. 1.00 per unit for the shortfall or excess beyond 25% and up to 35% + Rs. 1.50 per unit for the balance of energy beyond 35%      

Role of a QCA:

  • Provide day ahead, weak ahead and intra-day forecast, schedules and periodic revisions;
  • Coordination with DISCOM/STU/SLDC for metering, data collection, communication/issuance of dispatch/curtailment.
  • De-pooling of charges among generators
  • Commercial settlement of DSM charges and all other ancillary and incidental matters.
  • The QCA shall furnish weekly meter readings to the SLDC by 00.00 hours on Thursday of the previous week, in addition to the data provided to the SCADA Centre, for the purpose of energy accounting under these Regulations.

Revisions:

  • 16 revisions are permitted starting from 00:00 Hrs of the day for Wind & Solar Generators
  • All revisions will be effective from the 4th time-block

Important differences between intrastate and interstate transactions:

  • The sale of power within Maharashtra by Solar and Wind Energy Generators connected to the Intra-State Transmission Network shall be settled by the Procurers on the basis of their actual generation.
  • The sale or of power outside Maharashtra by Solar and Wind Energy Generators connected to the Intra-State Transmission Network shall be settled by the Procurers on the basis of their scheduled generation.
  • Inter-State transactions at a Pooling Sub-station shall be permitted only if the concerned Generator is connected through a separate feeder. In that case, a separate Schedule will have to be provided for its energy generation.
  • The Generator shall pay the Deviation Charges applicable within Maharashtra in case of deviations in the State DSM Pool Account, the consequences of such deviation at the Inter-State level being governed by the CERC Regulations governing the Deviation Settlement Mechanism and related matters.

MERC extends period of applicability of RE Tariff

The Commission had issued a Suo Moto Order on 7 July, 2014 in determining the Generic Tariff for RE technologies for the fifth year of the Control Period, i.e. FY 2014-15. The control period of RE Tariff regulations 2010, elapsed on 31st March 2015 and so the commission extended its period of applicability till 31 July, 2015. Since the regulatory process for revising RE Tariff Regulations for the next Control Period has not been completed yet, the Commission has further extended the applicability of its order till 31 October, 2015 or issue of new RE Tariff order whichever is earlier.

The relevant order can be accessed here.

Maharashtra: RPO Compliance and target for 2015-16

The Maharashtra Energy Development Authority submitted the RPO settlement data for MSEDCL on 14th September, 2014. There have been major shortfalls in meeting RPO targets. As for the total RPO targets set, a comparison below shows that MEDA had exceeded the NAPCC expectations in RPO for states.

The status of achievement of RPO targets by MSEDCL, based on the revised details provided by MEDA, MSEDCL and MSLDC for FY 2010-11 to FY 2013-14 are depicted in the graphs below.

Regarding Solar RPO targets, the Commission has allowed MSEDCL to cumulatively fulfil its Solar RPO targets by FY 2015-16. The Commission observed that MSEDCL has shortfall of 684.89 MU for FY 2012-13 in meeting their Non-Solar RPO targets. After considering the surplus of 386.52 MU of previous years, there is still a shortfall of 298.37 MU in FY 2012-13. Thus MSEDCL was allowed to meet its Non-Solar RPO shortfall of 298.37 MU for FY 2012-13 in FY 2013-14 on cumulative basis. The shortfall in Hydro should also be fulfilled by 2015-16.

MSEDCL was directed by commission to constitute a separate ‘RPO Regulatory Charges Fund’, to purchase Solar and Non-Solar RECs and/or to procure power, to meet the shortfall against RPO targets by the end of March, 2016.

The relevant order can be accessed here.

 


Maharashtra Renewable Energy Policy 2015

Maharashtra Government has finalized its final Renewable Energy Policy. The policy will be known as Maharashtra Renewable Energy Policy 2015. Regional committee will be established to monitor the overall progress of the policy and will be headed by the principal secretary of energy. The brief details of the guidelines and targets defined in the policy are given in the below-mentioned points:

Targets: The new policy announced, has set some ambitious targets for different Renewable Energy sources. The targets defined under the policy are listed in the table below:

Project Specific Guidelines and Incentives:

1. Wind Energy: A total of 5000 MW capacity of wind energy projects shall be commissioned, out of that initial 1500 MW will be used to fulfil RPO of distribution companies and the rest 3500 MW capacity of wind project can be utilized open access for interstate/ intrastate open access/captive consumption/REC etc.

Incentives:

  1. Wind generators will be given permission for re-powering.
  2. Land acquired for commissioning of the wind project will be deemed as Non-Agricultural land.
  3. Concessions will be granted for these projects to get NOC from pollution control board.
  4. Supervision charges for grid evacuation will be waived off.
  5. Wind energy projects can register themselves as industrial unit.

2. Sugarcane /Agricultural co- generation projects: Target of 1000 MW has been set for power generation through sugar co-gen/agricultural co-gen projects. Distribution companies shall have first right to fulfil their RPO at fix rate decided by MERC.

Incentives:

  1. Exemption from Supervision charges for grid evacuation.
  2. Exemption from E-duty for captive power plants for 10 years from the date of commissioning
  3.  Exemption from sales tax on purchase of sugarcane for all projects having capacity more than 3MW (35 lacs units).
  4. Promotional elements will be applicable on project which has got consent for infrastructure after the announcement of policy.
  5. MahaGenco will give consent for basic infrastructure and evacuation facility to establish co-gen project

3. Small Hydro projects: A target of 400 MW is set up for small Hydro projects. All the small hydro projects will be obligated to sale power firstly to any distribution company within Maharashtra so that they can fulfil their RPO at rates prescribed by MERC, after this they can go on interstate /intrastate third party power sale through REC route.

Incentives:

  1. Exemption from E-duty for captive power plants for 10 years from the date of commissioning
  2.  Promotional elements will be applicable on project which has got consent for infrastructure after the announcement of policy.
  3. MahaGenco shall give subsidy of Rs.50000 per KW to maximum up to Rs. 1. Cr from green energy fund.

4. Agricultural manures based power generation projects: Target of 300 MW is set up for Agricultural manures based power generation projects. MSETCL/MSEDCL will help developers with grid evacuation of LV/HV/EHV projects and Grid.

Incentives:

  1. Exemption from E-duty for captive power plants for 10 years from the date of commissioning.
  2.  Promotional elements will be applicable on project which has got consent for infrastructure after the announcement of policy.
  3. All projects shall get capital subsidy up to 1 Cr from green energy fund.

5. Solar Power:  A total of 7500 MW of Solar energy projects shall be commissioned, out of that 2500 MW will be used to fulfil RPO through Public private partnership in association with MahaGenco. And rest 5000 MW will be developed by other developers.

  1. A total 10 % of all PPP projects i.e. 250 MW will be established on canals, lakes and irrigation project. Minimum of project capacity will be 1MW.
  2. Minimum of project capacity will be 1MW.
  3. Development of Solar Park.

Incentives:

  1. Land acquired for solar projects will be granted deemed status of Non-agricultural land.
  2. Solar projects having capacity up to 2 MW can be given land 4 hectors as per availability and 50 % discount shall be given on rental/ lease charges. All such transactions will be governed as per Maharashtra land acquisition act.
  3. Government land if available requires for manufacturing of solar modules/panels/etc. shall also be given 50 % discount on lease/rental charges.
  4. Concessions shall be granted for these projects to get NOC from pollution control board.
  5. Solar project developers can sell electricity generated from solar projects to distribution companies /captive use/third-party sale/ REC.
  6. Open Access shall be granted for interstate as well as intrastate projects as per MERC regulations
  7. Exemption from Supervision charges for evacuation.
  8. Projects can register themselves as industrial units.
  9. Exemption from E-duty for captive power plants for 10 years from the date of commissioning.
  10. Developers will be given the necessary support for development solar projects, but there will separate provisions for interstate power transfer.

The Policy Document can be accessed here.

MERC Reduces MSEDCL distribution Tariff

The Maharashtra Regulatory Commission (MERC) in a notification dated June 27, 2015, has calculated the Distribution Tariff for Maharashtra State Electricity Distribution Company Limited (MSEDCL), which will be effective from 1st June 2015 onwards.

The commission in the present order has surprisingly reduce the tariffs for Industrial and commercial consumers. The details of the tariff for commercial and Industrial consumer are in the table below:

A graph on category-wise reduction in tariff is below:

The Commission has approved Wheeling Charges for 33 kV, 22/11 kV and LT Level as Rs. 0.15 per kWh, Rs. 0.83 per kWh and Rs. 1.42 per kWh respectively.

The reduction in the tariff for HT industrial consumer is surprisingly substantial, which is in the range of 11-17%, and the same for HT commercial consumer has been reduced by 10-11%. This reduction in tariff will have a considerable effect on the Open access market.

The Significant reduction in tariff for industrial and consumer tariff has been given after various industrial and commercial consumers expressed their views that the tariffs for industrial and commercial consumers are higher in Maharashtra in comparison with neighboring States.

The commission in the order has also stated that as it has been observed that the current formula for CSS has been a major hurdle for the consumer wishing to avail Open Access, so current formula for CSS will be amended and the commission will deviate from current formula. CSS reduction will open new doors for open access, but it to be seen whether the revision in CSS will have positive impact on OA or not.

The order can be accessed here.

Draft net-metering regulations, Maharashtra (MERC)

MERC (Maharashtra Electricity Regulatory Commission) recently released the draft Net-metering regulations.

In our opinion, these regulations are unlikely to enable large scale development of roof-top solar projects in the state. This is because several best-practices observed in the regulations of other states are missing for the draft regulations of Maharashtra.

 – The draft regulations are silent on the applicability of cross-subsidy and other open access charges. Other states (eg. Rajasthan) exempt rooftop project from such charges. A significant growth in roof-top projects will come from projects developed by investors where power is consumed by the host consumer. Without a clear exemption, this model is unlikely to take off in Maharashtra.

– The draft regulations provide no clarity on the ability of obligated entities to meet their solar RPO from rooftop projects. Without a clear provision addressing the same, obligated entities are unlikely to jump in.

– The draft regulations require the Discom to purchase only upto 10% of the total generation remaining unadjusted at the end of the year, and pay on the APPC price on this. This may result in some power going free to the Discom. However, during the year, extra power generated will be allowed to be carried forward without limits to the next month – this is a favorable provision.

– Rooftop projects will not be allowed to go under the REC mechanism

 The draft regulations, and a related report can be accessed here. Comments are due to March 31, 2015.

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

MERC: New Distribution Open Access Regulation, 2014

MERC (Maharashtra Electricity regulatory Commission) through an order on 25th June 2014 has made the new regulation for distribution open access in the state of Maharashtra. MERC in its new regulation has added 20 new definitions than the Distribution open access regulation 2005.

A comparative analysis with Open Access Regulation 2005 is below:

  • The open access consumers shall pay Wheeling Charges, Cross Subsidy Surcharge and Additional Surcharge as specified by the state commission in its relevant orders.
  • The open access consumer shall also bear the Transmission and Distribution (only technical losses) losses as determined by the commission.
  • Open Access Consumer having a load of 5 MW or above shall pay Reactive Energy Charges and shall also pay Standby charges for drawal of power.

More details on the Regulation can be accessed here.

Previous Open Access Regulation, 2005 can be accessed here.

Contributed By: Dheeraj Babariya.

MERC Finalizes RE Tariff for FY 2014-15

Maharashtra Electricity Regulatory Commission (MERC), through an order on 7th July 2014, has finalized the Renewable Energy tariff for FY 2014-15. The details of the Renewable Energy tariffs computed for FY 2014-15 have been highlighted below:

From the table, it is clearly evident that the tariff calculated for Solar Projects is higher as compared to that proposed in the draft. The price which has been finalized at Rs. 6.79 per unit is approximately 10.7% higher than Rs. 6.13 per unit, as proposed in the draft.

Earlier, CERC in its order (Refer) had finalized higher tariff for Solar Projects, based on the discussions during hearings about raising the normative capital cost of Solar PV power projects. MERC final order followed similar escalation after the hearings.

The detailed MERC’s order is available here

Our Previous Blog post on CERC RE Tariff can be read here

MERC Allows Solar Open Access in Maharashtra

MERC (Maharashtra Electricity Regulatory Commission) through an order on 6thMay 2014, has allowed Open Access for the Solar Power in Maharashtra.

The order has come in response of a petition filed by GEA (Green Energy Association – an association whose members are investors in Solar REC space), wherein GEA has requested MERC to direct MSEDCL to issue the Open Access permissions to the solar power generators of the state and also to issue credit notes for the energy injected by the solar generators into the system till date.

The Regulatory Commission said that petition filed by GEA stands disposed of, citing the reason that MSEDCL cannot be partial towards any particular RE Source, and it has already granted Solar OA permission to BEST in Mumbai.

However the Commission has directed MSEDCL to allow the Open Access through solar generator as single source only, as Distribution OA through multi source is in the process of amendment. The Commission also directed MSEDCL to continue the procedures followed for allowing Open Access permissions through RE generators during previous financial year, and to issue all pending credit notes till date.

The detailed MERC order can be accessed here

Our previous blog on MERC RE Tariff can be read here

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