MP PROPOSES AMENDMENTS TO RPO REGULATIONS

The MPERC has released the Sixth amendment to Madhya Pradesh Electricity Regulatory Commission (Cogeneration and Generation of Electricity from Renewable Sources of Energy) (Revision-I) Regulations, 2010 [ARG-33(I)(vi) of 2017] on July 1st 2017. In these regulations, it has revised the RPO percentage which will be applicable to the obligated entities within the state of Madhya Pradesh. Comments are invited till 24th July. The graph below gives a comparison of the RPO percentages suggested as compared to the MoP trajectory.

 

The analysis of the previous amendment can be read here.

The regulation can be accessed here

 

ANALYSIS OF MPERC DRAFT REGULATIONS ON FORECASTING, SCHEDULING, DEVIATION SETTLEMENT OF WIND AND SOLAR GENERATING STATIONS

Madhya Pradesh Electricity Regulatory Commission (MPERC) has published draft regulations for forecasting and scheduling for wind and solar projects. Important aspects of the regulation are discussed below.

Earlier Odisha, Gujarat, Karnataka, Tamil Nadu, Rajasthan, Jharkhand, Andhra Pradesh and Chhattisgarh had come out with their draft DSM Regulation on Forecasting & Scheduling of Wind & Solar.  So far, Karnataka is the only state that has published final regulations.

Executive Summary:

  • Forecasting and scheduling will be mandatory for all the wind and solar generators connected to the State grid, including those connected via pooling stations.

  • Error will be calculated on the basis of Available Capacity (AvC), with permissible deviation of ±15% for old wind projects and ±10% for new wind projects (i.e., projects commissioned after May 2017).

  • Settlement will be done through the “Qualified Coordinating Agency” or QCA. However there is no mention of Aggregation.

  • The Deviation charges shall be paid within 10 days of the issue of Statement of Charges for Deviation into the “State Deviation Pool Account”.

  • 16 intraday revisions will be allowed for wind and solar energy (one revision every 1.5 hours). Revisions will be effective starting from 4th time block onwards.

  • QCA will be treated as a state entity, registered with SLDC. The preparation and settlement of ‘Deviation Pool Accounts’ shall be undertaken on weekly basis coinciding with mechanism followed for regional energy accounts.

  • SCADA & Telemetry data is to be mandatorily provided to SLDC by the generators. SLDC shall formulate Data/information exchange requirements and protocols for the same.

Detailed Analysis:

MPERC 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 b) maintaining grid stability and security. Highlights of the draft regulation are below:

Applicability:

All Wind & Solar Pooling sub-stations, irrespective of their capacity, commissioning date and connectivity voltage level, have to provide a day-ahead and intra-day revisions to a maximum of 16/day, and one revision for each 1.5Hr interval.

Error calculation and penalty bands:

  • Payment for generation shall be as per actual generation (this is different from the inter-state 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, Gujarat, Odisha, Rajasthan and Jharkhand).

  • The deviation slab has been kept as (+/-) 10% for new projects and (+/-) 15% for old projects. The reference date for old and new projects is 26.5.2017.

Detailed Mechanism defined for Deviation Settlement

 

In case of Intra-State transmission, Penalty Mechanism for wind generating station or pooling station commissioned prior to 26.5.2017

 
In case of Intra-State transmission, Penalty Mechanism for wind generating station or pooling station commissioned after to the regulations are notified.
It is to be noted that the new projects commissioned after the regulations are notified, have to comply by stricter deviation norms, and may have to consider the costs and liabilities of this mechanism in their project financial planning.

MPERC RELEASES TARIFF ORDER FOR LV, HV AND EHV CONSUMERS:

Madhya Pradesh Electricity Regulatory Commission (MPERC) in its order dated 1st April 2016 has determined the tariff for Low Voltage (LV), High Voltage (HV) and Extra High Voltage (EHV). A summary of the tariff for HV3 consumers which includes Industrial, Non-industrial and Shopping Malls has been given in the table below:

The order can be accessed here

MPERC Determines Tariffs for Solar Power Projects

Madhya Pradesh Electricity Regulatory Commission recently released its tariff order for energy procured from solar power based projects for the control period from 31st March 2016 to 31st 2019. The tariff determined by the Commission in this will be applicable to the following Projects located in the State of Madhya Pradesh and selling electricity to the distribution licensees within Madhya Pradesh only:-

(a) Solar PV Power Plants

(b) Solar Thermal Power Plants

The Commission came out; vide its proposal for categorization of solar PV and thermal projects as well as for fixing the norms for technological specific parameters.

The Commission has fixed the normative capital costs inclusive of all components as well as taxes etc. for solar thermal and solar PV projects by keeping in line with the CERC benchmark capital cost of Rs. 12 Crore and 5.3crores per MW for 2016-17. The graphs below gives a comparison of the Capital cost and levelized tariff from the previous control period:

 

The MPERC Regulation can be accessed here.

The MPERC Previous tariff Order can be accessed here.

 

Madhya Pradesh Electricity Regulatory Commission (Cogeneration and Generation of Electricity from Renewable Sources of Energy) (Revision-I)

Madhya Pradesh Electricity regulatory Commission (MPERC) recently ordered amendment for its Cogeneration and Generation of Electricity from Renewable Sources of Energy Regulation 2010.

The new amendment has defined the minimum quantum of electricity to be procured by all the Obligated Entities from Co-generation from Renewable Sources of electricity expressed as % of their total annual procurement of Electrical Energy.

The new amendment has excluded consumption met from hydro sources of power during the following Financial Years given as under:-

 

As the Ministry of Power (MoP) declared the national RPO trajectory recently, all the states are expected to declare their RPO trajectory soon.

The MPERC Draft can be accessed here.

MPERC(Cogeneration and Generation of Electricity from Renewable Sources of Energy) (Revision-I)

Madhya Pradesh Electricity regulatory Commission (MPERC) recently ordered amendment for its Cogeneration and Generation of Electricity from Renewable Sources of Energy Regulation 2010.

The new amendment has defined the minimum quantum of electricity to be procured by all the Obligated Entities from Co-generation from Renewable Sources of electricity expressed as % of their total annual procurement of Electrical Energy.

The new amendment has excluded consumption met from hydro sources of power during the following Financial Years given as under:-

Sr. No.

Financial Year

Solar (%) Non Solar (%) Total (%)

1

2010-11 0.80 0.80

2

2011-12 0.40 2.10 2.50

3

2012-13 0.60 3.50 4.00

4

2013-14 0.80 4.70 5.50

5

2014-15 1.00 6.00 7.00

6

2015-16 1.00 6.00 7.00

7

2016-17 2.75 8.75 11.50

8

2017-18 4.75 9.50 14.25

9

2018-19 6.75 10.25 17.00

As the Ministry of Power (MoP) declared the national RPO trajectory recently, all the states are expected to declare their RPO trajectory soon.

The MPERC Draft can be accessed here.

MPERC Retail Tariff for FY 16-17

Madhya Pradesh Electricity Regulatory Commission (MPERC) through an order dated 5th April 2016 has finalized the retail tariff for the state for FY 16-17.

The tariff defined by the commission is given below:

The tariff given by the commission for industrial consumer did not see any change between the tariff of FY 13-14 & FY 14-15. But has increased from FY 15-16 to FY 16-17. The graphs below shows the change in the tariff category wise and the % change in tariff year on year respectively.

 

 

 

Wheeling Charges: The wheeling charges have increased for voltage level up to 33kV from Rs. 0.23 per unit to 0.27.

Cross Subsidy Surcharge: The cross subsidy surcharge for FY 16-17 has reduced

Transmission losses: The EHT transmission loss is set at 5.32% and for 33 kV (only 33 kV systems) @ 5.83%.

Industrial Tariff: The industrial tariff has increased from 5.25 Rs/kWh to 5.70 Rs/kWh (132kV)

Transmission Charges: The transmission charges for FY 16-17 will be Rs. 0.60 per unit.

The commission has also mentioned that the wheeling and cross subsidy surcharge will not be applicable for consumer availing open access from all RE sources.

The commission order can be accessed here.

 

 

MPERC waives off past Solar RPO

In a recent order, MPERC has waived off past solar RPO for its Discom’s.

 

This comes despite ApTel’s judgment specifically disallowing waive-offs, and CAG’s remark about states not meeting RPO regulations.

 

Even more telling is the fact that India is playing a lead role at the ongoing international climate talks in Paris, and has been promoting its solar capacity additions as the most ambitious in the world.

 

However, MPERC’s decision goes contrary to all of the above. In its order, MPERC has said the following:

 

“The Commission also noted that respondents could not fulfill the Solar Renewable Purchase Obligations during the FY 2014-15 also. The Commission is monitoring the progress through the Suo-Motu petition no. 43/2015 regularly. The Commission also gone through the progress achieved by the respondents during the FY 2015-16 based on which, the Commission feels that the respondents may purchase more than the Solar Renewable Purchase Obligations fixed for the FY 2015-16. This may mitigate the default on the part of the respondents in fulfilling the statutory Solar Renewable Purchase Obligations in previous financial years. Under the above circumstances, the Commission is of the view that it would not be appropriate to impose any penalty at present on the respondents.” (emphasis supplied)

 

And further –

 

“The Commission is not in agreement with the views of the petitioner that the Solar Renewable Purchase Obligations during the FY 2015-16 should be cumulative as this will generate bad practices to accumulate the shortfall and to carry forward the targets.”

 

It is worthwhile to note that in its judgment on the same issue, dated 20/11/2013, MPERC had said the following:

 

“….Commission is constrained to express serious concern on the lack of effort on the part of the utilities in fulfilling their respective RPOs. More than four months of the current financial year still remain and the respondents are directed to pursue renewable energy procurement to the maximum so that the shortfall against the RPO is minimised. Continuous failure on the part of utilities in this regard cannot be allowed to go unpunished” (emphasis supplied)

 

In response the potential bad precedent, the Commission has instead decided to not impose past year obligations, and instead hopes that excess purchase of solar power in 2015 “may mitigate the default” of prior years.

 

REConnect Analysis:

 

This order sets a very bad precedent. Not only has MPERC clearly gone against the order of ApTel, it also goes against the government’s ambitious plans of developing solar energy and all the commitments that India is making at the international stage.

 

MPERC Draft Demand Side Management Regulations, 2015

Madhya Pradesh Electricity Regulatory Commission (MPERC) came up with its Demand Side Management draft regulations, on 21st September 2015. It’s the State’s first initiative towards practicing a cost effective method of selecting, planning and implementing measures which intend to have an influence on demand side, either directly or indirectly.

  • The draft regulation describes the demand side management objectives, targets and guidelines.
  • The Distribution Licensee of State and shall undertake the load research to identify its target consumer segments and end uses for DSM programmes to build the necessary database.
  • Distribution Licensee shall formulate a perspective DSM plan covering period of the control period, within one year of notification of these regulations.
  • The benchmarks and DSM plans set by the commission will help the state achieve its objectives of:
    • Power shortage mitigation,
    • Seasonal peak reduction, cost effective energy savings,
    • Lowering the cost of electricity,
    • Reduction in emissions of greenhouse gases etc.

The commission invited comments and suggestions on the same till 29th September, 2015.

The relevant document can be accessed here.

MPERC Proposes to Revise Open Access Regulation

The Madhya Pradesh Electricity Regulatory Commission (MPERC) on 18th June 24, 2015 has proposed a new regulation for open access power transactions in the state. The proposed regulation will revise the previous open access regulation 2005. The regulation will come into force from the date of publication in the official Gazette.

The regulation will apply to open access customers for use of intra-state transmission system and distribution system, including systems when it is used in conjunction with inter-state transmission system.

The open access will be allowed for Non-conventions Energy sources, Captive Generating Plants of Conventional Energy, and to all other open access consumers with load of 1MW and above.

Categorization of Open Access Consumer:

  • Long-term Open Access: Any consumer availing open access for a period of exceeding 12 years but not exceeding 25 years.
  • Medium-term Open Access: customers availing open access for a period exceeding 3 months but not exceeding 3 years at a time.
  • Short-term Open Access: Consumer availing open access for a period up to one month at a time.

Charges for Open Access: The commission from time to time will fix (calculate) various charges to be payable by the open access consumer to the distribution licensee.

The various charges payable by the open access consumers will include Wheeling Charges, Transmission Charges, and Imbalance Charges.  The OA consumer will also bear Reactive Energy Charge, Interconnection expenses, Operating Charges, additional surcharge and any other charge levied by the commission.

Losses – Apart from this, the open access customers will have to bear energy losses of transmission system and distribution system as approved by the Commission from time to time.

Metering – Open access customers will be responsible for providing ABT compatible interface meters as main meters based on voltage, point and period of supply and tariff category.

Communication facility: The communication facility to be provided by the customer will be defined by SLDC on a case-to-case basis. The open access customer shall have to provide all such facilities.

The more details about procedure and guidelines can be read in the proposed regulations here.

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