Odisha Declares Open Access Charges for 2014-15

Odisha Electricity Regulatory Commission (OERC) has determined the Open Access charges through a notification dated 11thApril 2016.

The new charges determined are applicable for FY 16-17 with effect from 11th April 2014. The details of the charges are in the table below:



The normative transmission loss at EHT (3.70%) and normative wheeling loss for HT level (8%) are applicable for the year 2016-17.

Additional Surcharge: No additional surcharge over and above the Cross-Subsidy Surcharge needs to be given to the embedded licensee.

No Cross-subsidy surcharge are payable by the consumers availing Renewable power.

20% wheeling charge is payable by the consumer drawing power from Renewable source excluding Co-generation & Bio mass power plant.

The order can be accessed here.



OERC (Procurement of Energy Renewable Sources and its Compliance) Regulations, 2015

Orissa Electricity Regulatory Commission released the notification on Procurement of energy from Renewable Sources on 10th October, 2015. This regulation set the basic principle for promoting the sale of power from renewable sources to any person within the state of Orissa. Below mentioned are the key points of the regulation:

  • These regulation shall be applicable to all Obligated entities in the state of Orissa, the obligated entities include :
    • Distribution Licensee or any other entity procuring power on their behalf and;
    • Any person consuming electricity

a)      Generated from Conventional Captive Generating plant having capacity of 1MW and above for his own use and or

b)      Procured from conventional generation through open access and third party sale.

  • Every Obligated Entity shall meet its RPO target from its own Renewable Sources or by purchase of REC’s or procurement of power from other developer of Renewable Energy Sources.
  • The minimum quantity of energy to be procured from Renewable Sources by obligated entity is mentioned in the table below :

  • The Cross Subsidy Surcharge is exempted for procurement of power through third party sale from Renewable Energy Sources.
  • No Banking facility is provided for supply (Third Party sale) from Renewable Energy Sources through open access.
  • The energy generation from Third Party sale in each 15 min time block shall be set off against the captive/open access users’ consumption in the same 15 min time block.

In closure we would like to say that this regulation would help the state of Orissa to comply with its solar and non solar RPO targets and promote the procurement of renewable energy.

The detailed document can be accessed here.

OERC Draft DSM Regulations 2015

In order to maintain grid discipline and grid security as envisaged under the Indian Electricity Grid Code and Orissa Grid Code, Orissa released its first draft Deviation Settlement Mechanism Regulations on 23rd September 2015.

The Regulations are applicable to:

  • All Generating Stations including Solar and Wind Generators in the state of Orissa, except the Inter-state Generating Stations connected to Inter-State Transmission system.
  • All CGPs in the state of Orissa, with capacity of 5 MVA and above
  • All Distribution/Trading Licensees in the state of Orissa.
  • All Open Access Customers (Above 5 MW) in the state of Orissa.

The charges for the Deviations for all the time-blocks has been classified as:

A. For all generators except wind and solar, and all buyers in the state

The charges payable for deviation, will be UI linked and is worked out on the average frequency of a time-block at the rates specified as per CERC (Deviation Settlement Mechanism and related matters) Regulations, 2014 and amendments thereto.

B. For the Intra State Wind and Solar Energy Generators

These entities will be treated differently, and the error resulting from the deviations, will not be penalized based on the UI mechanism, but by a mechanism very similar to the recent amendments to CERC Inter State Forecasting, Scheduling and Imbalance Handling Regulation of 2015.

The detailed deviation linked penalty mechanism has been proposed as below:

The commission has invited comments and suggestions till 22nd October 2015.

The relevant regulation can be accessed here.

OERC Order on RPO Compliance

The Green Energy Association and Orissa Renewable Energy Development Agency had filed a petition in the matter of non-compliance of RPO by obligated entities in OERC. The respondents GRIDCO and NALCO quoted the same reason of non-availability of RECs in the market for failure in meeting the obligation, even though the RECs were available at floor prices.

Green Energy Association submitted that imposition of RPO should not be relaxed in any manner for any of the obligated entities. It has submitted that the provision in the Regulation like power to relax and power to remove difficulties should be exercised judiciously only on exceptional circumstances as per the law and should not be used routinely which would otherwise defeat the object and purpose of the Regulation. Non-availability of REC should be a pre-condition to carry forward the RPO of the OERC (Renewable Purchase Obligation and its compliance) Regulations, 2010. They requested the Commission, not to consider fossil fuel based Co-generation plant under the category of renewable energy and to consider non-fossil fuel based topping up cycle Co-gen plants under renewable energy category.

After reviewing the submitted documents from both the petitioner and the respondents the Commission gave the following order:

  • The reasons advanced by parties for non-fulfillment of RPO obligation are unjustified and Commission is not inclined to grant any exception on this matter.
  • The obligated entities are allowed to carryover their renewable and co-generation purchase obligation upto 31.03.2015 till 31.08.2016. If they do not purchase the obligated quantity of power, they can purchase REC at least 5% of the obligation per month upto 31.03.2015 from August, 2015 on wards and must comply the arrear obligation in full by 31.08.2016. No further extension of time shall be granted to carry forward the renewable purchase obligation in any circumstance.
  • All the obligated entities shall submit compliance report quarterly to OREDA within the above time frame. OREDA shall also submit the quarterly compliance report to the Commission after due scrutiny.
  • All obligated entities mentioned in the RPO Regulations, 2010 shall comply with the said Regulations henceforth.

This order superseded all other previous orders issued by the Commission in this regard.

The reason for non- compliance of RPO by the respondents is found inappropriate by the commission, because as per the REC inventory there are 2598847 Solar RECs available in the market as of now.

The table below gives the solar RPO targets for Orissa from year 2012-13 to 2015-16

It is expected that in line with the order, GRIDCO and other obligated entities will comply with the RPO targets, and thus we expect a surge in demand for Solar RECs in the coming months.

The Commission’s order can be accessed here.

The Commission’s order can be accessed here.

Odisha Finalizes Guidelines for Net Metering

Odisha Electricity Regulatory Commission (OERC) through an order has finalized the guidelines for Net Metering systems, including LT connectivity for Government/ PSU owned buildings only.

 A brief summary of the guidelines is given in table below:

The commission is mandated to promote Renewable Energy by providing connectivity with grid and sale of electricity to any person under EA 2003, which is why it has released this guidelines to enable consumers to set up Rooftop systems.

The state of Odisha has fairly good potential for solar power generation with 280-300 days of sunshine in a year and Global Horizontal Irradiance of about 4.5-5.0 kWh/m2/day.

This guidelines does not make consumers eligible for REC’s. This may be due to the fact that solar tariffs are on the decline whereas the state retail tariffs are increasing year-on-year.

The order can be accessed here.

Odisha Proposes Draft for RPO Regulation, 2014

Odisha Electricity Regulatory Commission (OERC) on 5th December 2014 has notified draft for RPO Regulation 2014. The regulation has been named as Procurement of Energy from Renewable Sources and its Compliance Regulations, 2014.

The targets proposed by OERC for procuring minimum percentage of electricity from Renewable Sources of Energy are given the table below:

Odisha in its previous RPO regulation 2010 defined RPO targets till FY 15-16. The RPO targets for FY 15-16 is same as it was in its previous regulation, but RPO target for Solar has been increased by 0.10%.

The draft also proposes Cross Subsidy exemption for Third Party mode of Open Access. However, no banking facility will be provided for supply (Third Party Sale) from Renewable Energy Sources through Open Access.

Odisha has not been a very active in Renewable Energy space, and has not seen good capacity addition in RE sector till date. On the Solar front it has a potential of 25 GW, but does not fare well in terms of Wind or Biomass potential. Considering the high Non-Solar RPO, it becomes quite obvious that good number of RECs will be purchased by Discoms and other obligated entities. As far as Solar RPO is concerned, there is good scope for Solar IPPs to invest there, as there are good number of big industries in the state to buy solar power under Third Party Mode of Intra State Open Access.

With the current trading price of Solar REC at Rs. 9.3/Unit, it will favor the IPPs under Third Party mode, but in the long run, with the 3rd Amendment of REC Mechanism soon to be finalized, purchasing Solar RECs might become a more economical option, unless there is significant drop in capital cost of Solar projects.

The draft Proposed can be read here.

Odisha Declares Open Access Charges for 2014-15

Odisha Electricity Regulatory Commission (OERC) has determined the Open Access charges through a notification dated 10th October.

The new charges determined are applicable for FY 14-15m with effect from 1st April 2014. The details of the charges are in the table below:

The normative transmission loss at EHT (3.75%) and normative wheeling loss for HT level (8%) are applicable for the year 2014-15. No additional surcharge over and above the Cross-Subsidy Surcharge is payable.

 The consumers availing Renewable Power are exempted from payment of Cross-subsidy surcharge and those drawing power from Renewable source excluding Co-generation & Biomass, have to pay 20% of the wheeling charge.

The relevant order can be accessed here.

Contributed by Dheeraj Babariya.

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