RERC DETERMINES FINAL FORECASTING AND SCHEDULING REGULATIONS

The Rajasthan Electricity Regulatory Commission (RERC), in an order dated 14/09/2017, has released final regulation on forecasting, scheduling and deviation settlement mechanism for solar and wind generation plants. With these regulations, Rajasthan has become the third state to have final regulations in place. The salient features of the regulations are as follows:

 

Executive Summary:

  • Title of the Regulation: Rajasthan Electricity Regulatory Commission (Forecasting, Scheduling, Deviation Settlement and Related Matters of Solar and Wind Generation Sources) Regulations, 2017

  • Applicability:

    • From the date of publication in the official gazette.

    • SLDC to issue detailed guidelines for QCA registration, scheduling procedures, communication protocols and formats etc., for the approval of the Commission.

    • Levy and collection of DSM Charges shall commence from Jan 1st, 2018

  • Regulation Applicable on: All grid connected Wind and Solar Power Generators with pooling station capacity >5MW or, when directly connected to the state grid, having individual or combined capacity >5MW.

  • Deviation Accounting:

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

  • Aggregation: Unlike in Karnataka and AP, Rajasthan’s order of F&S does not have a provision to provide aggregated forecast.

  • Role of a QCA:

    • Provide forecast, schedules and periodic revisions;

    • Coordination with DISCOM/STU/SLDC for metering, data collection, communication/issuance of dispatch/curtailment;

    • Commercial settlement of DSM charges and de-pooling of charges among generators;

    • All other ancillary and incidental matters.

  • Revisions:

    • 16 revisions are permitted starting from 00:00 Hrs of the day for Wind & Solar Generators

    • All the revisions are effective from the 4th time-block

  • Important differences between intrastate and interstate transactions:

    • Wind and Solar generators having common interface meter at a pooling station but carrying out both – interstate and intrastate transactions at the same pooling station, the scheduling for the same shall to be carried out separately.

    • Approved open-access capacity (in MW) in such cases alone shall be considered as AvC for the purpose of DSM charges calculations.

Observation: Since the regulation permits common interface meter for such transactions and AvC determination is also clarified, the DSM charges may be computed in pro-rata basis for such pooling station as the common interface meter would only provide Pooling Station level actual generation.

  • Determination of DSM Charges for INTRASTATE transactions:

  • Determination of DSM Charges for INTERSTATE transactions:

 

 

The order can be accessed here.

Rajasthan Electricity Regulatory Commission exempts electricity duty for rooftop solar

The Rajasthan state government recently exempted the elctricity duty of 40p/unit for solar rooftop and captive units. It is expected that this electricity duty cut will have a positive impact on the new capacity lined up by the Rajasthan Electricity Regulatory Commission and also will help to close the 2300 MW rooftop solar capacity by 2022.

This step will create a lot of momentum in the rooftop segment and will encourage individuals and institutions to set up their own plants, thus contributing to the green energy while cutting down on their power costs.

Since Rajasthan has also announced net-metering policy (by which an individual can use the power they generate and the surplus can be fed into the grid), exemption of the electricity duty will be very beneficial to the consumers.

Recently, RERC also had issued a rate contract order for 25 MW & 5MW rooftop plants and empanelled companies to design supply and install these projects; under this the consumer will install a solar power plant and will not have to pay anything upfront.

The regulation can be accessed here.

Rajasthan Electricity Regulatory Commission determines CSS for FY 2016-17

Rajasthan Electricity Regulatory Commission (RERC) has calculated the Cross subsidy surcharge to be applicable during FY 16-17. The new CSS will be applicable only for the state of Rajasthan effective till 31st March, 2017.   The new CSS applicable will have significant impact on the open access power market.

The table below depicts the CSS charges defined for year FY 2016-17:

 

The graph below depicts the % change in the CSS over the last four years:

 

The regulation can be accessed here.

RERC Draft Solar Tariff Policy for FY 2016-17

Rajasthan Electricity Regulatory Commission (RERC) recently  proposed a levelized tariff under a draft regulation (RERC Terms & Conditions for Determination of Tariff for Renewable Energy Sources Regulations, 2016) issued for Solar power generators of the state.

The graph below depicts the change in the tariff from the past year:

 

RERC has invited the comments and suggestions by 13th September 2016 on the same. The tariff proposed for FY 16-17 is much lower than the tariff of previous year in case of both Solar PV and Rooftop Solar PV, It can be said that the reason behind the reduction in the tariff of Solar PV is because of decreasing prices of Solar PV cells.

The regulation can be accessed here.

 

RERC Draft Solar Tariff Policy for FY 2016-17

Rajasthan Electricity Regulatory Commission(RERC) recently  proposed a levelized tariff under a draft regulation (RERC Terms & Conditions for Determination of Tariff for Renewable Energy Sources Regulations, 2016) issued for Solar power generators of the state. The brief summary of the proposed draft is as below:

The graph below depicts the change in the tariff from the past year:

RERC has invited the comments and suggestions by 13th September 2016 on the same. The tariff proposed for FY 16-17 is much lower than the tariff of previous year in case of both Solar PV and Rooftop Solar PV, and in case of Solar Thermal Power Plants. It can be said that the reason behind the reduction in the tariff of Solar PV is because of decreasing prices of Solar PV cells and overall project execution cost.

The regulation can be accessed here.

Rajasthan Proposes Wind Tariff for FY 2016-17

The Rajasthan Electricity Regulatory Commission (RERC) recently proposed the new tariff for wind energy sources, which will be applicable for the projects commissioned during FY 16-17. The tariff will be applicable for 25 years.  The details of the tariff proposed are in the table below:

 

 

Below are the some graphs on the year-wise tariff’s of CERC and RERC for wind energy and the % changes in the tariffs over the years.

 

Note: All figures of CERC relate to wind zone-2 as defined by CERC, and all RERC tariffs relate to Wind Power Plants located in districts other than Jaisalmer, Jodhpur & Barmer districts.

It can be noticed from the graphs above that RERC has constantly increased Wind tariffs over the last three FYs except for the current FY, while CERC wind tariffs have risen a bit in terms of %.

Rajasthan has a wind power potential of 5050 MW’s and with these tariffs proposed, it will become an attractive destination for setting up Wind projects.

The Tariff proposed by RERC can be read here.

 

 

RERC determines Additional Surcharge for Open Access Consumers 2016-17

In the recent decision the Rajasthan High Court passed an order against RERC for the levy of Rs.1/kWh as Additional Surcharge on all Open Access Consumers.

On 12.05.2016 Rajasthan Electricity Regulatory commission passed an order for the levy of additional surcharge for all the Open Access consumers. This had negative Implication on any consumer willing to buy power from a third party in the state. The surcharge made all the Open Access transactions in the state highly unviable. Even the Green Power Transactions were not exempted from the surcharge.

In its verdict the High Court has “set aside” the verdict passed on 12.05.2016 and has provided directions to RERC to follow and obtain the desired information in a rightful and transparent manner.

The court has provided following direction to the State Regulatory Commission:

  • The RERC should make a public advertisement to notify the Objectors
  • The requisite advertisement to be made in two Vernacular and one English Newspaper
  • The advertisement will also notify the date of hearing within one week of the last date for collection of material as per advertisement.
  • RERC will hear the objectors and pass orders within ten days. The objectors will not be entitled to any adjournment.
  • The parties agree that the additional surcharge, if any, determined by RERC would be payable effective the date it was payable under the order dated 12.05.2016.
  • The current order has been occasioned only for reason of violation of principles of natural justice in passing the impugned order dated 12.05.2016 and is not reflective of the merits of the levy of additional surcharge or its quantu

The order can be accessed here.

 

 

RERC Approves APPC for FY 14-15 and 15-16

Rajasthan Electricity Regulatory Commission (RERC) in its orders dated 1st April, 2016 has approved the Average Power Purchase Cost (APPC) for its DISCOM’s. Honorable commission approved APPC of FY 14-15 & 15-16 for Jodhpur, Jaipur & Ajmer Discoms.

The Order came in response of petitions filed by the Discoms for the approval of the APPC. The details of the approved APPC are highlighted below:

The graph below gives a comparison of the APPC approved by the commission over the past five years:

The APPC rates have decreased for the FY 15-16 on an average by 3.94% for all the three Discoms. The average pooled cost of power purchase for FY 2015-16, shall be the provisional pooled cost of power purchase for FY 2016-17 till the same is determined by the Commission.

The order for Ajmer Discom APPC can be accessed here.

The order for Jaipur Discom APPC can be accessed here.

The order for Jodhpur Discom APPC can be accessed here.

 

 

Analysis of Draft Regulations on Forecasting and Scheduling of Wind and Solar Generating Stations – Rajasthan

CERC had notified forecasting and scheduling (F&S) regulation for inter-state sale of power a few months back. Subsequently, the Forum of Regulators (FoR) had come up with model regulations for forecasting and scheduling at the intra-state level. Rajasthan has published the draft forecasting and scheduling regulations

in line with the FoR model Regulations. Rajasthan is the fourth state to do so in recent days – MP, Karnataka and Tamil Nadu are the others.

Executive Summary:

  • The regulations will be applicable on all wind and solar generators with individual or combined capacity of 5MW and above that are connected to the state grid
  • Deviation will be calculated on the basis of available capacity
  • Settlement with the buyer will be on the basis of actual generation

Qualifying Coordinating Agency (QCA) will play a key role in the total process. QCA will be  responsible for forecasting, telemetry, scheduling and settlement of deviation.

The draft regulations are in-line in every aspect with the model F&S regulations released by FoR earlier. However, the model FoR regulations had proposed a 10% deviation band for new projects and 15% for existing projects. Rajasthan has proposed a 15% band for all projects.

Detailed Analysis:

Forum of Regulators have recently come up with model regulation for forecasting and scheduling and deviation settlement mechanism. The primary objective is two fold :

a) facilitate large-scale grid integration of solar and wind generating stations, and b) maintaining grid stability and security.

Highlights of the regulation are below: -

  • All solar and wind generators connected to State grid have to provide day-ahead and week-ahead schedule – Revisions can be made on a one-and-half hourly basis.
  • 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).
  • The deviation slab has been kept as (+/-)15% for all generators at Intra-state level.
  • Penalty is calculated at fixed amounts per unit (whereas, for Intra-state it is calculated as a percentage to PPA rate) -
  • RPO accounting can continue as per existing arrangement, and needs no change.

The SLDC will also conduct a forecast of its own with the primary purposed of ‘secure grid operations by planning for the requisite balancing  resources.

Applicability of Regulations

  • All wind and solar generators connected to the State grid are covered:
  •  Having capacity of 5MW and above individually or in aggregate.
  • Regardless of date of commissioning.
  •  Including those connected via pooling stations
  • Selling power within or outside the state. Detailed Mechanism defined for Deviation.

Settlement calculation or Intra-state sale of power is as follows:

Detailed Mechanism defined for Deviation Settlement  calculation or Intra-state sale of power is as follows

In case of Intra-State transmission, Penalty Mechanism for existing generators :

The Draft Order can be accessed here.

 

Rajasthan publishes draft Forecasting and Scheduling regulations

RERC has released draft forecasting and scheduling (F&S) regulations. Rajasthan has become the 4th state to release draft F&S regulations in recent days (MP, Karnataka and Tamil Nadu are the others).

The key points of the regulations are:

  • The regulations will be applicable on all wind and solar generators with individual or combined capacity of 5MW and above that are connected to the state grid

  • Deviation will be calculated on the basis of available capacity

  • Settlement with the buyer will be on the basis of actual generation

  • Qualifying Coordinating Agency (QCA) will play a key role in the total process. QCA will be responsible for forecasting, telemetry, scheduling and settlement of deviation.

The draft regulations are in-line in every aspect with the model F&S regulations released by FoR earlier and can be accessed here.

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