TNERC issues order on Rooftop Solar generation

Tamil Nadu Electricity Regulatory Commission recently issued an order on rooftop solar generation. This comes after the Tamil Nadu Solar Policy 2019 announced a target of achieving 900 MW of solar energy till 2023, out of which 40% is set to be achieved from consumer category solar energy systems.

Applicability

According to the order on the new scheme of rooftop solar generation, consisting of solar net feed-in consumer category will be applicable to all the new applicants. The effective date of commissioning of the order is 25th March 2019. The specifications described in the order are applicable to all the new consumers and the existing consumers under the net metering scheme will continue to be under the provisions of Order No.3 of 2013 dated 13.11.2013.

Eligibility

Consumers under Low Tension category except for Hut and Agricultural category of the tariff.

Permissible maximum capacity for an eligible consumer

The maximum capacity of solar rooftop generating a plant that an eligible consumer can install shall be up to 100% of his sanctioned/contracted demand with the distribution licensee.

Metering

The consumers under the solar net feed-in scheme will have to install two meters. One for measuring solar power generation and the other to measure import & export of energy.

Commercial arrangement

  • The electricity generated by the solar rooftop power plant shall be utilized for self-consumption by the consumer. The surplus energy generated that is unutilized and that flows to the grid and recorded in the export register of the meter shall at the end of the billing period be calculated at a tariff fixed by the commission and credited to the consumer’s account.
  • The price of energy purchase exported by the solar generator during a financial year will be 75% of the pooled cost of power purchase notified by the commission.

Restrictions on grid penetration

At a local distribution level, the connectivity to rooftop solar systems will be restricted to 90% of the distribution transformer capacity on first come first serve basis.

Renewable Energy Certificates and Renewable Energy Obligation

Net injection of power is not eligible for REC. The energy generated from Rooftop Solar Power Plant will be accounted towards the fulfillment of RPO obligation of distribution licensees.

The order is to come in effect on and from 25th March 2019.

TNERC announces the Pooled Cost of Power Purchase for FY 2018-19

TNERC recently announced an order for the pooled cost of power purchase payable by Tangedco for FY 18-19 under TNERC (Renewable Energy Purchase Obligation) Regulations, 2010). The order has mentioned the criteria, mandatory for a renewable energy generating company for  obtaining accreditation from the state agency which are:

“(a) It does not have any power purchase agreement for the capacity related to such generation to sell electricity at a preferential tariff determined by the Commission; and

(b) It sells the electricity generated either (i) to the distribution licensee in the State of Tamil Nadu at a price not exceeding the pooled cost of power purchase, or (ii) to any other licensee or to an open access consumer at a mutually agreed price, or through power exchange at a market-determined price.”

With these specifications, the commission declared the Pooled Cost of Power Purchase payable by the TANGEDCO for the year 2018-19 as Rs.3.97 per unit subject to the maximum of 75% of the preferential tariff fixed by the Commission to that category / subcategory of NCES generators i.e. Rs.3.97 per unit or 75% of the preferential tariff fixed by the Commission to that category / subcategory of NCES generators, whichever is less. The Order came into effect from 1st April 2018.

The trend of the pooled cost of power purchase in Tamil Nadu in the past years is as given below.

 

TAMIL NADU DETERMINES DISTRIBUTION AND TRANSMISSION TARIFF FOR FY 2017-18

The Tamil Nadu Electricity Regulatory Commission (TNERC) has determined the distribution and transmission tariff for FY 2017-18. The last time they had determined tariff was in 2014 which means that the tariff has changed after 3 years. The energy charges for different categories is as follows:

 

 

The tariff for industrial and domestic categories hasn’t changed at all. Same is the case with domestic tariff.

 

Wheeling Charges: 21.06 Paisa/Unit

Wheeling loss: 2.45%

Cross subsidy surcharge: 1.67 Rs/kWh

The transmission tariff was also determined by the TNERC. It is as follows:

 

Transmission charges: 3037.30 Rs/MW/day

Transmission loss: 3.81%

 

The distribution and generation tariff can be accessed here. The transmission tariff can be accessed here.

TNERC NOTIFIES SOLAR TARIFF FOR FY 2017-18

 Tamil Nadu Electricity Regulatory Commission, in its latest order dated 28th March, 2017, has released the tariff values for solar projects in the state.

The tariff values are given as follows:

There has been a slight decrease in tariff for both solar PV and solar thermal this year as compared to the last FY. A comparison of the same is given as follows:

 

The order can be accessed here

Tamil Nadu Electricity Regulatory Commission Amendment to RPO Regulation, 2010

The Tamil Nadu Electricity Regulatory Commission recently came up with new amendment in the Renewable Purchase Obligation, 2010. The amendment was made in the regulation 3 after sub regulation (1) regarding the RPO percentages as mentioned below

The Commission orders that the Renewable Purchase Obligation specified for 2011-2012 in the sub regulation (1) shall be applicable for the years 2012-13, 2013-14 and 2014-15 to all the distribution licensees.

 

The Order can be accessed here.

Tamil Nadu Comprehensive Tariff Order on Wind Energy

The Tamil Nadu Electricity Regulatory Commission issued its fourth Comprehensive Tariff Order on Wind Energy on 30th March, 2016. The Commission’s last comprehensive tariff order was issued in 2012 for a control period for two years which was later extended up to the issuance of next comprehensive tariff order. This order would be applicable on purchase of wind energy by the Distribution Licensee from wind energy generators (WEGs).

Some of the key points of the order are as follows:

 

  • Wind Tariff: This year’s levelized wind tariff has been finalized out to be Rs 4.16/ unit which has increased from the previous tariff of Rs 3.59/ unit.
  • CDM Benefits: The order offers CDM benefits, which will be shared between the distribution licensee and the consumer on gross basis starting from 100% to developers in the first year and thereafter reducing by 10% every year till the sharing becomes equal.
  • Wheeling & Transmission Charges: The WEGs shall have to bear 40% in each of the transmission, wheeling and scheduling and system operation charges as applicable to the conventional power to the wind power.
  • CSS: The WEG will be levied 50% of cross subsidy charges.
  • Banking Charges: This order provides the banking of Energy for a period of 12 month commencing from April 1st, 2016 to 31st March.
    • The Unutilized energy as on 31st March every year would be encashed at the rate of 75% of the respective applicable wind energy tariff rate fixed by the Commission.
    • The WEGs have requested to consider purchase of unutilized energy for the generators under REC scheme at APPC rates and to permit banking of energy and encash the unutilized energy at 75% of the applicable rates notified by the Commission.
  • The order can be accessed here.

TNERC Draft Intrastate Regulation on Forecasting and Scheduling of Wind and Solar Generating Stations

The Forum of Regulators recently announced a Model Regulation on intra-state RE deviation settlement regulation which will cover all the existing and upcoming wind and solar power producers in India. States like Karnataka and Madhya Pradesh electricity regulators have already announced their draft regulation on wind/solar forecasting and scheduling, in line with FOR’s Model Regulation.

Tamil Nadu Electricity Regulatory Commission also, recently came up with its first Intrastate draft regulation on Forecasting and Scheduling of Wind and Solar Generating stations.

Detailed Analysis

The draft regulation broadly covers the following aspects:

  • Mandatory forecasting and scheduling of all the existing and upcoming wind/solar power generation at interstate level.
  • The state load dispatch centers are also mandated to carry out their own parallel forecasting mechanism primarily to manage secure grid operations.
  • A wind/solar power producer can either choose to have his own forecast or opt for SLDC’s forecast for the scheduling purpose. The deviations arising due to a difference between the scheduled generation and actual generation will be settled as per the penalty mechanism adopted under the respective regulations.
  • Similar to the FOR’s Model Regulation the Qualified Coordinating Agency (QCA) will manage the entire exercise of forecasting, scheduling, energy metering, telemetry, deviation management and penalty de-pooling at every wind/solar pooling station.
  • In deviation Settlement, the deviations and errors are quantified w.r.t available generation capacity at the time of scheduling. This will reduce the absolute error magnitude especially during low wind/solar seasons and thus reducing the penalty amount that a generator may have to absorb.
  • A permissible deviation band of +/-10% (w.r.t available capacity) and a permissible deviation band of within 5 % (w.r.t available capacity) have been permitted without any penalty separately for all the existing wind and solar power producers respectively.
  • Deviation Charges in case of under or over-injection by wind generators, for sale of power within the State.
  • Deviation Charges in case of under or over-injection by solar generators, for sale of power within the State.
  • Though the draft regulation is in line with the Model Regulation. The table below depicts how the two regulations vary with each other in terms of the Deviation charges and the deviation band for solar and wind generators :
We feel that though this regulation will help to streamline the large scale grid integration and security and benefit intrastate sale of power but it is a much more stringent regulation than the other regulations, since the error deviation has been narrowed down from +/-15% to +/-10% for Wind and +/-5% for Solar.

The Draft Order can be accessed here.

 

TNERC Finalizes APPC for FY 14-15

Tamil Nadu Electricity Regulatory Commission (TNERC) in its latest notification dated 4th Feb 2015 has finalized APPC for FY 14-15.

The definition of the APPC being followed by TNERC can be read as: Pooled cost of power purchase’ means the weighted average pooled price at which the distribution licensee has purchased the electricity including cost of self generation in the  previous year from all the long-term energy suppliers, but excluding those based on liquid fuel, purchase from traders, short-term purchases and renewable energy sources subject to the maximum of 75% of the preferential tariff fixed by the Commission to that category / sub category of NCES generators”.

The APPC determined by TNERC for FY 14-15 is Rs. 3.38 per unit or 75% of the preferential tariff fixed by the Commission to that category / sub category of NCES generators, whichever is less.

The APPC for FY 14-15 has increased by 8.6% compared to APPC of FY 13-14. Given below is the APPC of previous years, with % increase year on year:

The Order can be accessed here.

 

TNERC Hikes Power Tariff In the State

Cost of buying electricity from DISCOMs has become costlier for the Commercial & Industrial consumers in the state of Tamil Nadu. Considering the directives of the Hon’ble APTEL, the National Tariff Policy and in Exercise of the powers vested in it under the Section 62 and Section 64 of the Electricity Act, 2003 (Act) and the Tariff Regulations 2005, TNERC has decided to take up the matter of Determination of ARR and Tariff for 2014-15 by initiating suo-motu proceedings and based on that a public notice was issued by Tamil Nadu Electricity Regulatory Commission (TNERC) on 23/9/2014 eliciting comments &suggestion stakeholders to the proposed suo-motu revision of electricity tariff and transmission tariff.

The commission after considering all the comments & suggestions have revised the electricity tariff by 15% for all the category of consumers for FY 2014-15 effective from 12/12/2014.

 The new tariff applicable to industrial and commercial consumers for HT connections can be seen in the table below:

Group captive arrangement will still remain most viable option for the industrial & commercial consumers looking at the hike in the tariff and R&C measures still in place.

Similarly for LT consumers for all categories there has been tariff hike of 15% as can be seen in the order.

The order can be accessed here.

Contributed by karthik krishnan

TNERC Proposes Tariff for Wind, Biomass & Bagasse Based Power

The Tamil Nadu Electricity Regulatory Commission (TNERC) on 26th Sep 2014 has notified separate Consultative papers for determination of tariff’s for Wind, Biomass and Bagasse based power projects. Earlier TNERC extended the validity of tariff for the said three energy sources.

1. Wind power Projects – TNERC through the consultative paper has proposed the tariff for the wind projects at Rs. 3.59 per Unit. The control period is 2 years with tariff period of 25 years.

The commission has also proposed the wheeling, transmission and scheduling and system operation charges to be 40%, as applicable to the conventional power. The cross subsidy charges for the third party open access consumers as proposed to be 50%.

The Consultative paper for the wind projects can be accessed here.

2. Biomass Power Projects – The fixed cost component of Tariff proposed for is given in the table below:

The Variable cost component proposed for FY 2014-15 is Rs.3.61 per unit and for the FY 2015-16 is Rs. 3.79 per unit, the control period is 2 years with the tariff period of 20 years.

The commission has proposed to continue the existing wheeling, transmission & scheduling and system operation charges of 50%, as applicable to the conventional power. The cross subsidy charges for the third party open access consumers as proposed to be 50%. While for the generators who are availing Renewable Energy Certificate (REC), normal transmission charges, wheeling charges and line losses has been proposed. The existing CSS of 50% is proposed to continue for this control period.

The Consultative paper for Biomass projects can be accessed here.

3. Bagasse Power Projects – The proposed fixed cost component is highlighted in the table below:

The Variable cost component proposed for the FY 2014-15 is Rs.2.93/- per unit and for FY 2015-16 is Rs. 3.07/- per unit, the control period has been proposed 2 years with the tariff period of 20 years.

The commission has proposed to continue the existing wheeling, transmission & scheduling and system operation charges of 60%, as applicable to the conventional power. The cross subsidy charges for the third party open access consumers as proposed to be 50%. While for the generators who are availing Renewable Energy Certificate (REC), normal transmission charges, wheeling charges and line losses has been proposed. The existing CSS of 50% is proposed to continue for this control period.

The consultative paper for Bagasse based projects can be accessed here.

The TNERC has invited comments and suggestions for all the three consultative papers latest by 27th Oct 2014.

Our previous blog post on TN Solar tariff can be read here.

Contributed by Dheeraj Babariya.

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