RERC publishes (Renewable Energy Obligation) (Fifth Amendment) Regulations, 2019

Rajasthan Electricity Regulatory Commission (RERC) recently announced (Renewable Energy Obligation) (Fifth Amendment) Regulations, 2019, which shall come into effect from 1st April 2019 provided that the revised RPO for FY 2018-19 shall become applicable from 1.04.2018. The original RPO target was 14.25% for FY 18-19. This has been reduced with retrospective effect.

Amendment in Regulation 4 of the Principal Regulations:

source: RERC

  • If the solar RPO compliance is achieved up to 80%, then the remaining shortfall if any can be met by excess non-solar energy purchase over and above the specified non-solar RPO for that particular year.
  • Similarly, If the non-solar RPO compliance is achieved up to 80%, then the remaining shortfall if any can be met by excess solar energy purchase over and above the specified solar RPO for that particular year.

source: RERC

(3) The RE Obligation for a distribution licensee including deemed licensee for FY 2018-19 and onwards shall be as under:
source: RERC

In our opinion, the reduction in RPO in FY 18-19 from 14.25% to 13.35% defeats the purpose of having RPO targets and runs afoul on various Aptel judgments.  

 

RERC announces draft REC regulations (third amendment) 2019

RERC announces draft REC regulations (third amendment) 2019

Rajasthan Electricity Regulatory Commission recently announced the draft Renewable Energy Certificate (REC) & Renewable Purchase Obligation (RPO) regulations 2019 (third amendment). The amendments are stated as below:

Original regulation Amendments
10. Pricing and purchase under REC mechanism

(2) The effective electricity component price during the operating period would be as under (a) For distribution licensee(s), shall be equal to the Pooled Cost of Power Purchase. For determination of Pooled Cost of Power Purchase for a particular year, Discoms shall submit a petition for computation of Pooled Cost of Power Purchase to the Commission latest by 30th June of the following year. The Commission shall issue an order relating to the Pooled Cost of Power Purchase within one month of acceptance of the petition. Till the issue of order regarding the Pooled Cost of Power Purchase, the Pooled Cost of Power Purchase of the previous year shall continue to be valid as Provisional Pooled Cost of Power Purchase. After the issue of an order for the Pooled Cost of Power Purchase by the Commission, the difference with the Provisional Pooled Cost of Power Purchase shall be adjusted equally in the bills of the next four months or as decided by the Commission in the order determining the Pooled Cost of Power Purchase for that year. (b) For sale to Open Access Consumers or a Captive User, it shall be at a mutually agreed price

“(2) The effective electricity component price applicable w.e.f. 1.04.2019 to the projects commissioned up to 31.03.2019 shall be as under The electricity component price of energy supplied by a RE project to distribution Licensee(s) shall be Rs 2.67/unit. This rate shall remain applicable for its remaining useful life, for which PPA shall be extended accordingly. Provided that such projects may also use such electricity for self-consumption or sell electricity at a mutually agreed price to other entities.”
10.  Pricing and purchase under REC mechanism

(4) Purchase of electricity component from the Renewable Energy having been issued REC would not be counted in fulfillment of RPO and would not be mandatory. Provided that with the tor, the pricing methodologies for electricity component and REC shall be reviewed at periodic intervals as may be considered appropriate by the Commission

(4) “Purchase of electricity component from the Renewable Energy having been issued REC would not be counted in fulfillment of RPO.”
12. Pricing options for new renewable energy projects to be commissioned during the Operating Period

(1) All the new renewable energy projects commissioned during the Multiyear Control Period, after coming into force of these Regulations and which do not have PPA prior to coming into effect of these Regulations for purchase of Renewable Energy shall have the option of either following the tariff structure and other conditions as stipulated in the RERC (Terms and Conditions for Determination of Tariff) Regulations, 2009 as amended from time to time, subject to agreement of licensee or adopt pricing of the REC mechanism.

“ In case RE generator under REC mechanism wishes to opt out for REC mechanism and if the Discoms agree to purchase the renewable energy they may extend the PPA at the tariff not exceeding Rs 3.17/unit for remaining useful life of the plant and in such case the electricity purchased would be counted towards fulfillment of RPO and RE Generator would not be entitled to REC Certificate. Provided that above provision of the regulation shall not be applicable to an entity whose accreditation/registration has been a progressive development of the electricity revoked by the State / Central Agency.”

RERC PROVIDES CLARIFICATION REGARDING DURATION AND TARIFF OF PPAS EXECUTED UNDER REC MECHANISM

Rajasthan Electricity Regulatory Commission (RERC) has released an order clarifying the duration of PPA’s executed under REC mechanism and for setting of tariff for the PPA’s executed under REC framework.

A petition was filed by Jaipur Vidyut Vitran Nigam Ltd., Ajmer Vidyut Vitran Nigam Ltd, Rajasthan Urja Vikas Nigam Ltd. and Jodhpur Vidyut Vitran Nigam Ltd. seeking clarifications with regards to PPA executed under REC mechanism from RERC.

 

The commission came to the conclusion that the operating period of PPAs shall be governed by the terms of PPA. Since as per the petitioners, all the PPAs executed under REC framework are valid upto 31.03.2019, it shall be followed. Also, the pricing methodology for determining the APPC under REC mechanism has been provided in the RERC (Renewable Energy Certificate and Renewable Purchase Obligation Compliance Framework) Regulations, 2010, it shall be followed. RERC will take the suggestions of the petitioners into consideration as and when it amends the REC regulations, 2010.

PETITION ON BACKING DOWN ORDERS ON ELECTRICITY GENERATION DISMISSED BY RERC

A petition has been filed by Renew Wind Energy, Ostro Renewables, Mytrah Vayu and CLP Wind Farms against Rajasthan SLDC and Rajasthan Rajya Vidyut Prasaran Nigam Ltd against the unlawful and unpredictable instructions issued by SLDC for backing down of generation of electricity. Wind generation companies argued that SLDC had issued backing down orders in the past giving grid stability as one of the reason. They also pointed out that the backing down orders were random in nature and were given despite providing regular day-ahead forecasts to SLDC

 

To this the SLDC had responded that such orders were given to RE generators only after they had been given to the generators of conventional energy. Also, the reasons for the orders had been duly noted by the SLDC to ensure transparency.

 

The commission held a hearing and after which, it made the decision to dismiss the petition and SLDC has been warned to issue backing down orders to RE generators strictly based on the Grid Code and a record of backing down and its reason shall be maintained.

 

The order can be accessed here.

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.

 

 

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