Telangana releases draft RPO policy for the first time

Telangana State Electricity Regulatory Commission (TSERC) has released draft regulations for the compliance of Renewable Purchase Obligations for the state. These regulations are first of its kind in the state. Before this, the state was following RPO percentages determined by APERC (Andhra Pradesh Electricity Regulatory Commission) through its latest regulation.

 

Comments on these regulations are invited till 9 February 2018.

 

The RPO percentages determined in the regulation are as follows:

In the order, the RPO percentages were only given in terms of total of both solar and non-solar percentages. As per the National Tariff Policy 2016, the solar RPO percentage for states across the country shall reach 8% whereas in the mentioned order, the total RPO percentage (including solar and non-solar is 7.5% ie. 0.5% lower.

The RPO trajectory declared by TSERC as compared to that declared by MoP  for the FY 2018-19 can be seen below:

 
The draft regulation can be accessed here. The public notice can be accessed here.

TSERC DETERMINES RETAIL TARIFF FOR FY 2017-18

The Telangana State Electricity Regulatory Commission (TSERC) has determined its retail tariff in an order dated 26/08/2017 for FY 2017-18. The tariff has been determined as follows:

 

The change in tariff from in the past 3 years can be understood with the graph below:

 

The wheeling loss for NPDCL has been determined as 4.40% and that for SPDCL as 4.20% at a voltage level of 11 kV.

A separate order was released for the determination of cross subsidy surcharge. The change in CSS  for industrial category is as follows:

 

The order can be accessed here. The order determining CSS can be accessed here.

TSERC DETERMINES TRANSMISSION TARIFF FOR FY 2017-18:

The Telangana State Electricity Regulatory Commission (TSERC) has determined the transmission tariff for the FY 2017-18 and FY 2018-19 in its order dated 1/05/2017. The order states the transmission charge and loss as follow:

 

As per previous years, the transmission charge has followed a trajectory as depicted in the following graph:

The order can be accessed here.

Telangana Regulations for connectivity with the Grid and sale of electricity from the Rooftop Solar Photovoltaic

Telangana recently came up with its net metering regulation for connectivity with the Grid and sale of electricity from the Rooftop Solar Photovoltaic. This Regulation will be applicable to the distribution licensee, an eligible consumer and a third party owner of a Roof Top Solar PV System in the state of Telangana.

 

Following are some of the highlights of the regulations:

 

  • An eligible consumer shall install the grid connected Rooftop Solar PV System of the rated capacity as specified in this Regulation.
  • The tariff payable to an eligible consumer under the net-metering shall be the average power purchase cost of a Distribution Licensee.
  • The net metering facility, as far as possible, of an eligible consumer shall be in three phase service.
  • A single phase consumer is also eligible for net metering up to 3 KW.
  • The capacity of a Rooftop Solar PV System to be installed at the premises of an eligible consumer shall not be less than one Kilo Watt peak (1kWp) and a maximum of One (1) MWp.
  • The quantum of electricity consumed by an Eligible Consumer from the Rooftop Solar PV System under the Net Metering Arrangement shall qualify towards his compliance of Solar RPPO, if such Consumer is an Obligated Entity.
  • The quantum of electricity consumed by the Eligible Consumer from the Rooftop Solar PV System under the Net Metering arrangement shall, if such Consumer is not an Obligated Entity, qualify towards meeting the Solar RPPO of the Distribution Licensee.
  • The unadjusted surplus Units of the solar energy purchased by the Distribution Licensee under the provisions of sub-Para 10.3 shall qualify towards meeting its Solar RPPO.
  • The Rooftop Solar PV System under the net metering arrangement, whether self- owned or third party owned installed on the Eligible Consumer’s premises, shall be exempted from Transmission Charge, Transmission Loss, Wheeling Charge, Wheeling Loss, Cross Subsidy Surcharge and Additional Surcharge.
  • The Rooftop Solar PV System Developer shall retain the entire proceeds of CDM benefits in the first year after the date of commercial operation of the generating station.

 

The regulation can be accessed here.

TSERC Regulation for connectivity with the Grid and sale of electricity from Roof- top Solar Photovoltaic System

The Telangana electricity Regulatory Commission recently came up with its Net Metering Rooftop Solar PV Grid Interactive Systems) Regulation, 2016. Following are some of the highlights of the regulation:-

  • This Regulation will be applicable to:
    • Distribution licensee
    • An eligible consumer and
    • A third party owner of a Roof Top Solar PV System in the state of Telangana.

 

  • This Regulation does not preclude the right of a Distribution licensee or the State Government Department to undertake the Rooftop Solar PV projects above 1 MWp capacity through the alternative mechanisms.

 

  • The net metering facility, of an eligible consumer shall be in three phase service where a single phase consumer is also eligible for net metering up to 5 KW.  The capacity of a Rooftop Solar PV System to be installed at the premises of an eligible consumer shall not be less than 1kWp and a maximum of 1MWp peak.

 

  • The tariff payable to an eligible consumer under the net-metering arrangement will be the average power purchase cost of a Distribution Licensee.

 

  • The quantum of electricity consumed by an Eligible Consumer from the Rooftop Solar PV System under the Net Metering Arrangement shall qualify towards his compliance of RPPO, if such Consumer is an Obligated Entity.

 

  • The Rooftop Solar PV System under the net metering arrangement, whether self-owned or third party owned installed on the Eligible Consumer’s premises, will be exempted from
  • Transmission Charge,
  • Transmission Loss,
  • Wheeling Charge,
  • Wheeling Loss,
  • Cross Subsidy Surcharge
  • Additional Surcharge.

Telangana Regulations for connectivity with the Grid and sale of electricity from the Rooftop Solar Photovoltaic

Telangana recently came up with its net metering regulation for connectivity with the Grid and sale of electricity from the Rooftop Solar Photovoltaic. This Regulation will be applicable to the distribution licensee, an eligible consumer and a third party owner of a Roof Top Solar PV System in the state of Telangana.

 

Following are some of the highlights of the regulations:

 

  • An eligible consumer shall install the grid connected Rooftop Solar PV System of the rated capacity as specified in this Regulation.
  • The tariff payable to an eligible consumer under the net-metering shall be the average power purchase cost of a Distribution Licensee.
  • The net metering facility, as far as possible, of an eligible consumer shall be in three phase service.
  • A single phase consumer is also eligible for net metering up to 3 KW.
  • The capacity of a Rooftop Solar PV System to be installed at the premises of an eligible consumer shall not be less than one Kilo Watt peak (1kWp) and a maximum of One (1) MWp.
  • The quantum of electricity consumed by an Eligible Consumer from the Rooftop Solar PV System under the Net Metering Arrangement shall qualify towards his compliance of Solar RPPO, if such Consumer is an Obligated Entity.
  • The quantum of electricity consumed by the Eligible Consumer from the Rooftop Solar PV System under the Net Metering arrangement shall, if such Consumer is not an Obligated Entity, qualify towards meeting the Solar RPPO of the Distribution Licensee.
  • The unadjusted surplus Units of the solar energy purchased by the Distribution Licensee under the provisions of sub-Para 10.3 shall qualify towards meeting its Solar RPPO.
  • The Rooftop Solar PV System under the net metering arrangement, whether self- owned or third party owned installed on the Eligible Consumer’s premises, shall be exempted from Transmission Charge, Transmission Loss, Wheeling Charge, Wheeling Loss, Cross Subsidy Surcharge and Additional Surcharge.
  • The Rooftop Solar PV System Developer shall retain the entire proceeds of CDM benefits in the first year after the date of commercial operation of the generating station.

 

The regulation can be accessed here.

TSERC Determines CSS for FY2016-17

Telangana Electricity Regulatory Commission (TSERC) has calculated the Cross subsidy surcharge to be applicable during FY 16-17. The new CSS will be applicable only for the state of Telangana effective from 1st July, 2016 to 31st March, 2017.  There was no CSS applicable in the state till last FY 14-15. The new CSS applicable will have significant impact on the open access power market.

The Telangana solar and wind policy which was announced recently clearly states that for Solar Power Plant located within the state and selling power to third parties within the state, 100% exemption shall be provided on the cross subsidy surcharge as determined by TSERC for five years from the date of commissioning of the Power Plant.

The table below depicts the CSS charges defined for year FY2015-16 and FY 2016-17:

The regulation can be accessed here.

 

Telangana Solar Power Policy 2015

The Government of Telangana has recently announced its new solar policy. The new policy will be known as The Telangana Solar Power Policy 2015. The new Policy will come in force from the date of issue and will remain in operation for five (5) years and all the Solar Projects that are commissioned during the operative period will be eligible for the incentives declared under this policy, for a period of ten (10) years from the date of commissioning.

Objectives of the Policy:

The objective of the Policy includes long term energy security, sustainable fuel for energy generation, promoting solar parks in the state and promoting investment in the solar sector. The policy also targets on promoting distributed and decentralized generation and off-grid solar applications.

For availing benefits under this policy, power generated through solar projects has to be consumed within the state.

Applicability of the Policy – This solar policy shall be applicable for the following solar projects set up within the state –

1)      Solar Power Projects:

a) Grid connected solar power projects based on both Photo Voltaic (PV) as well as Solar Thermal technologies

  • Projects set up for sale of power to TSDISCOM’s.
  • Projects set up for sale of power to third parties within the state.

b) Projects set-up for captive generation/ group captive generation (including those funded and owned by developers).

2)      Solar Roof-top Projects (SRPs) (Grid connected and off grid) – This includes projects which are funded and owned by developers.

3)      Off grid applications.

4)      Any other project which is established based on MNRE/GOI Schemes as amended from time to time.

5)      Solar Parks.

 Incentives Offered:

  • Exemption from the payment of Electricity Duty.
  • Deemed Industry Status will be provided.
  • Pollution Clearance.
  • Facilitation of expeditious approvals through single window clearance.
  • Open Access will be allowed.
  • Exemption from Land ceiling Act.
  • Deemed conversion to Non-agricultural land status.
  • 100% refund of VAT/SGST and 100% refund of Stamp Duty for land purchased for setting up solar project and/or solar park.
  • Exemption from wheeling Charges for captive use within the state.
  • Exemption from payment of Cross Subsidy Surcharge for third party sale within the state.
  • Banking for 100% of energy during all 12 months of the year with must run status for Solar Power Projects.
  • Deemed Public Private Partnership (PPP) Status..
  • Non Agriculture Status for the land where Solar Power Projects will be accorded.

The policy also mentions that solar parks will host solar manufacturing, R&D centers, training facilities and financial institutions within the solar parks.

Surprisingly the policy does not talk about the REC and RPO schemes and its benefits. Also it does not give any specific guidelines about the projects to be developed under REC mechanism, which appears to be serious shortcoming.

The policy offers good number of incentives to the project developer, in terms of tax relaxations, must run status, exemptions from various charges, single window clearance etc..

Considering the state, having a huge potential of 20 GW for solar energy generation, the policy might bring substantial investment in the state. Recently the state invited bids for 2000 MW of solar projects. Now as the policy is offering numbers of incentives to the stake holders, the projects in line might see good response from the investors and stake holders.

The final state solar policy can be accessed here.

TSERC New CSS for FY 2015-16

Regulatory Commission (TSERC) has calculated the Cross subsidy surcharge to be applicable during FY 15-16. The new CSS will be applicable only for the state of telangana.

There was no CSS applicable in telangana till last FY. The new CSS applicable, will have significant impact on the open access power market.

The telangana solar and wind policy are in waiting, will be announced soon, it will be interesting to see whether CSS will be waived off for RE sources or not.

The order can be accessed here.

Telangana Finalizes Tariff for FY 15-16

The Telangana Electricity Regulatory Commission (TSERC)has notified its finalized tariff for the financial year 15-16. The new tariff will be applicable in the Telangana state.

Below are the graphs showing comparison between tariff determined for FY 15-16 & tariff of FY14-15, and graph on the % change in Tariff.

 Wheeling charges: The TSERC has also finalized the wheeling charges & wheeling losses which will be applicable for FY 15-16, are given in the tables below:

The tariff order notified by the commission does not include cross subsidy surcharge and other applicable charges.

The tariff order can be accessed here.

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