EXTENSION ON WAIVER OF INTER-STATE TRANSMISSION CHARGES AND LOSSES FOR ELECTRICITY GENERATED FROM SOLAR AND WIND SOURCES

The Ministry of Power has released an order  which provides extension on the waiver of intra-state transmission charges and losses for transmission of electricity generated from solar and wind sources. As per the last order dated 14 June 2017, MoP had provided an extension on the waiver of transmission charges for electricity procured from solar and wind sources till 31.12.2019. This waiver has been further extended to 31 March 2022 for electricity transmitted both the sources of renewable energy.

 

The waiver shall be applicable for 25 years from the date of commissioning of the projects and only on those projects entering into PPAs with distribution licensees for sale of electricity for compliance of their RPO. The order also states that the waiver shall be applicable to projects awarded through competitive bidding process.

 

This order continues to encompass the same issues present in the previous orders. It is only applicable to solar projects from which the electricity will be sold to the DISCOMs. Secondly, it will only be on those solar projects entering PPAs for the compliance of RPO.

PORTUGAL RUNS ON RENEWABLES FOR FOUR AND A HALF DAYS

In a remarkable achievement reported by The Guardian, the country of Portugal ran only on renewable power for 107 hours in the month of May. The sources of renewable power that the country relied on were hydro, wind and solar power.

During the year 2016, 59% of the national energy production was fulfilled through renewable energy while the remaining was from fossil fuels. Out of the 59% yielded from renewable sources, 2% was from solar, 25% was from wind and remaining 32% was from hydro. The article quoted  ”the managing director of the Portuguese Renewable energy association Apren, believes that by 2020, Portugal will be able to generate 60% of its energy from renewables and will be able to completely rely on renewable power by the end of 2040”.

Karnataka Electricity Regulatory Commission Draft Smart Grid Regulations, 2015

KERC came up with its first draft Smart Grid Regulations on 22nd December, 2015. Smart grid through automation and controls system would deliver electricity more reliably, effectively and environment friendly, thus enabling much wider generation and consumer participation in power sector operations.

Some of the Key points of the regulation are as follows:

  • These regulations shall be applicable to all Generation companies, Distribution Licensees, Transmission Licensees and consumers in the state and connected to the state grid.
  • The objective of the regulation is to enable integration of various smart grid technologies, enhance network accessibility and measures to bring about efficiency improvement in generation and integrate renewable energy into grid and micro grids.
  • The Commission may from time to time issue guidelines for generating company, transmission licenses and distribution licensee in execution of activities like formulation and implementation of smart grid programmes.
  • The Commission directs every transmission and distribution licensee to constitute smart grid cells within three months of notification of the regulation which shall be responsible for:
    • Baseline study & Development of data
    • Formulation of smart grid plans, programmes and projects
    • Design and development of smart grid projects including cost benefit analysis and plans for implementation, monitoring and reporting.
    • Assist licensees in getting necessary approvals to smart grid plans.
    • Implementation of smart grid programmes
    • The transmission licensee and distribution licensee may combine activities related to energy efficiency, DSM and smart grid implementation within the same cell.

 

The Regulation 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.

National Offshore Wind Energy Policy 2015

The Ministry of New and Renewable Energy released its first ever National Offshore Wind Energy Policy on 1st October 2015. India has already achieved significant success in the onshore wind power development with about 24 GW of wind energy capacity installed. The introduction of this policy, will replicate the success of onshore wind power development in the offshore wind power development.

Following are some of the key points of the policy:

  • The offshore wind farms can be built in the following two maritime areas :
    • Indian territorial waters, which generally extend up to 12 nautical miles (nm) from the baseline; and
    • Exclusive Economic Zone, beyond the 12 nm limit and up to 200 nm, where India has right to construct structures such as wind farm installations.
  • The MNRE will act as the “Nodal Ministry” for development of Offshore Wind Energy in India and will work for Development and Use of Maritime Space within the Exclusive Economic Zone.
  • The National Institute of Wind Energy will act as the “Nodal Agency” for the development of offshore wind energy and will call for proposals under International Competitive Bidding (ICB).
  • A preliminary assessment suggests potential to establish around 1 GW capacity wind farm each along the coastline of Rameshwaram and Kanyakumari in Tamil Nadu.
  • The table below gives the essential elements and objectives of the policy for development of offshore wind farm:

Thus with optimum exploitation of the offshore wind energy and this supportive National Offshore Wind Energy policy regime India will be able to meet its energy demands and will contribute to fulfill the missions of National Action Plan on Climate Change.

The Policy can be accessed here.

India’s Energy Mix to Have 40% Renewable Sources by 2030

The Renewable energy holds a share of 12% in the current energy mix of India. As a part of its contribution under the Paris Climate Change Agreement, India sets target of achieving at least 40% of India’s total power capacity from renewable sources by 2030.

If the National Democratic Alliance approves the proposal then India would be looking to building a total of 350 GW of solar and wind power by 2030. This ambitious target will help India offer a 35% reduction in the greenhouse gas emission intensity of its economy below 2005 levels by 2030.

The above update has been taken from Business Standard’s article published on 22nd September, 2015 which can be accessed here.

Three States to Kick Start Power Sector Reforms

A joint statement was released on 21st September 2015, by Goa, Uttarakhand and Meghalaya where these states have signed a joint statement of reforms with the Central Government in order to enable 24×7 power supplies to consumers.

The joint statement highlighted the five-point agenda for these states:

  • An increase in power generation from local energy sources
  • An improvement in the inter-state transmission network,
  • Enhancement of the use of renewable energy and
  • Enhancement of the use of energy-efficient measures.
  • Strong communication, information technology and monitoring division.

Fulfilling these agendas will improvise the quality of life of the consumers and also promote economic developments overall.

The above update has been taken from Business Standard’s article published on 22nd September, 2015 which can be accessed here.

REC Trade Results July 2015

July’s trading session saw a stagnant response from the demand side. Though, the current demand while comparing it to previous year’s session of July was 3 times higher in Solar and 5 times in Non Solar segment, it indicated a lower compliance when comparing it to trading sessions of 2015. A sum total of 173,223 Lakh RECs were redeemed in this session. Demand took a fall of approx. 5 % w.r.t June.  The demand in last two trading sessions was due to the judgment by Supreme Court.

 Analysis of Trading:-

 Non Solar – Clearing ratio in exchange were at 1.33% and 1.15% in IEX and PXIL respectively for Non Solar RECs. A total of 155,271 RECs were redeemed in this trading session. There was seen a fall of approx. 4 % in the current trading session w.r.t to June in Non Solar RECs.

 Solar – Clearing ratio stood at 0.84% and 0.29% in IEX and PXIL respectively. Solar RECs remained at 17,952, which is a show towards a downfall in the demand in the solar RECs segment; it shows a fall of 5640 RECs from June trading session.

Over the longer term, increasing focus on RPO both from the courts and from regulators is expected to increase demand. Over the last many months several developments have taken place including the draft Electricity Act, orders from the ApTel and from the Supreme Court. The most recent development was the release of the draft of Renewable Energy Act 2015. An analysis can be read here.

Team REConnect

REC Trade Results – June 2015

The June trade session remained below expectations compared to May’15 month performance. However, if we compare the performance with Jun’14, the response was still far better. After the announcement of an important judgment by Supreme Court, the market looks upbeat and we can expect better demand in upcoming trade sessions.

Analysis of Trading:

Non-Solar – Total 161,845 RECs were cleared in this trading session. IEX and PXIL had a clearing ratio of 1.6% and 0.84% respectively. Total RECs redeemed this month was approx. 1 Lakh RECs lower w.r.t May’15.

Solar - RECs redeemed this month remained at 23,648 RECs. The clearing ratio was 1.4% and 0.17% in IEX and PXIL respectively. Solar REC traded this month were approximately 60 (sixty) thousand lower w.r.t to May trading session.

The REC trade results in the FY 2015-16 are summarized below for your reference.

REC Trade Results May 2015 – A Significant jump after Supreme Court judgment

We are pleased to share the Result of REC trading for the month of April-15.

In May’s trading session, 256,579 Non Solar and 83,189 Solar REC’s were traded through Power Exchange (a total of 339,768 REC’s), which was more than 4 times the traded volume in April.

The significant jump appears to a direct result of the Supreme Court judgment. The SC gave its judgment upholding the applicability of RPO on open access and captive consumers. The judgment is expected to have far-reaching impact as stay on RPO in many states will become redundant. It is also expected that SERC will take a more stringent approach to RPO enforcement.

 Analysis of Trading:-

 Non Solar - Total of 2.5 Lakh REC’s were cleared in this trading session. IEX and PXIL had a clearing ratio of 3.6% and 0.4%. Non Solar REC’s traded were approx.3.5 time’s higher w.r.t previous month.

Solar - REC’s redeemed this month were 83 Thousand, which were an 8-fold increase in number w.r.t. previous month. The clearing ratio was 5.51% and 0.89% in IEX and PXIL respectively. Demand for solar REC’s significantly improved this month.

The REC trade results in the FY 2014-15 is summarized below for your reference.

Non-Solar

Solar

Media Coverage – The Hindu Business Line

BY: Team REConnect

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