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.

Meghalaya finalizes New RPO regulation 2015

Meghalaya State Electricity Regulatory Commission (MSERC) on 12th March has finalized its new regulation for renewable Purchase Obligation (RPO). The regulation will be called as MSERC (Renewable Energy Purchase Obligation & its compliance) Regulations, 2015.

The regulations will come into force from the date of their publication In the Official Gazette and will remain operative until it is revised. The minimum quantum of RPO (in %) defined under the regulation are in the graphs below:

 

The previous RPO regulation of the state gave RPO till FY 12-13 only after that the same was being considered for FY 13-14 & FY 14-15 as there was no RPO defined. The RPO target of the commission for FY 12-13 was only 1% (Wind 0.20, Solar % 0.4 % and others 0.4 %).

As can be seen from the graphs above, the total RPO target for the defined period is nowhere close to the NAPCC targets, and even the targets defined for Solar RPO are significantly lower than the National Tariff Policy (NTP) 2006 Solar targets. The low RPO targets are due to the fact that the NE states do not have significant RE potential, and due to low retail tariffs in the states, higher RPO may have significant impact on retail tariffs.

The Relevant order can be accessed here.

our previous post on Meghalaya Draft Net Metering regulation can be read here.

 

Meghalaya Proposes New RPO Targets

Meghalaya State Electricity Regulatory Commission (MSERC) in a notification dated 03rd December 2014 has proposed draft for RPO Regulation 2014. The regulation will be known as MSERC Renewable Purchase Obligation & its Compliance Regulations, 2014. The regulation will come in force from the date of notification in the official gazette and will remain operative till revised.

The RPO targets proposed are given in the table below:

Previously the commission in 2010 defined targets till 2013, which was only 1% of the total energy consumption.

The new targets are comparatively low, considering that the huge inventory of RECs awaits demand from states which have low Renewable potential. But since Meghalaya being a small state with low energy demand, having even a high RPO target will anyways not have a big impact on demand of RECs, whereas raising the target from 1% to even 5% might have a significant impact on retail tariffs which are relatively on the lower side.

The commission has invited the comments and suggestions from the interested stakeholders by 2nd of January 2015 (I.e. 30 days from the notification of draft).

The draft order can be accessed here.

Our blog on Meghalaya Net Metering Regulation can be rad here.

Meghalaya: Net Metering and RE Tariff Regulation

Draft Net Metering Regulation:

Meghalaya State Electricity Regulatory Commission (MSERC) has on 11th November has notified the draft regulation for Grid Connected Solar Rooftop Systems. The regulation will be called as (Rooftop Solar Grid Interactive systems based on Net metering) Regulations, 2014.

The commission has presented the draft for the consultation and suggestions from the stake holders including consumers. The Regulation will come in force from the date of notification in the Official Gazette.

The regulation allows the consumers to install Solar Rooftop systems, and can generate electricity themselves. The Summary of the regulation is in the table below:

The commission has invited the comments and suggestion on the draft however no last date has been given.

The more details can be read in the Draft here.

RE Tariff Regulation

The commission on 11th Nov 2014, has finalized the Renewable Energy Tariff regulation. The regulation has a control period of 3 years (i.e. till 2017). The regulation will be called Meghalaya State Electricity Regulatory Commission (Terms and Conditions for determination of Tariff for Generation from Renewable Energy Sources) Regulations, 2014.

 The regulation will apply to all RE sources of generation.

More details can be found in the order here.

Contributed by Dheeraj Babariya.

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