MNRE proposes draft certification scheme for Indian wind turbines

Recently the Ministry of New & Renewable Energy in consultation with National Institute of Wind Energy Chennai prepared a draft certification scheme incorporating various guidelines under “Indian Wind Turbine Certification Scheme (IWTCS).” The IWTCS is a consolidation of relevant National & International guidelines. The document also contains various best practices from other countries to ensure the quality of the wind energy projects. The scheme is envisaged to assist & facilitate OEMs, End-users, Utilities, SNAs, developers, IPPs, owners, investors, certification bodies and testing laboratories. The document is open for comments from stakeholders till 5th December 2018.

Wind sector in India is growing at a rapid pace with increased utilization of wind energy for the power development, The modern wind turbines have higher hub heights, larger rotor diameter, higher capacity, and improved CUF along with technological improvements. The IWTCS is a consolidation of relevant National and International Standards (IS/IEC/IEEE), Technical Regulations and requirements issued by Central Electricity Authority (CEA), guidelines issued by MNRE and other international guidelines. The Scheme enlists the guidelines for the benefit of all the stakeholders from concept to lifetime of a wind turbine, including Indian Type Approved Model (ITAM), Indian Type Certification Scheme (ITCS), Wind Farm Project Certification Scheme (WFPCS) and Wind Turbine Safety & Performance Certification Scheme (WTSPCS).

The IWTCS defines certification system guidelines for wind turbines that comprise of Prototype Certification and Type Certification; Project Certification, Failure reporting of installed wind turbines, Safety and Performance assessment and De-commissioning & Safe Disposal of the wind turbine/wind turbine projects installed onshore and offshore. It specifies guidelines for carrying out conformity evaluation of wind turbines and wind farms, with respect to specific standards and other technical requirements, relating to safety, reliability, performance, testing, and interaction with electrical power networks.

The new guidelines are expected to bring better evaluation standards for wind turbines & wind farms in the country in terms of technical requirements, relating to safety, reliability, performance, testing, certification, and interaction with electrical power networks

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”.

MNRE Scheme for setting up of 1000 MW CTU-connected Wind Power Projects

The Ministry of New and Renewable Energy recently sanctioned the scheme for setting up of 1000MW CTU- connected Wind Power Projects by Wind Project Developers on build, own and operate basis. However, the capacity may go higher than 1000 MW, if there is higher demand from Discoms of non-windy States.

The Government of India has set an ambitious target of target of achieving 175 GW power capacity from renewable energy resources by 2022 and out of this 60 GW to come from wind power.

In order to facilitate transmission of wind power from these windy States to non-windy States provisions have been made in the Tariff Policy to waive the inter-state transmission charges and losses for wind power projects.

Some of the important highlights are:

  • The selection of wind power projects under the Scheme will be through a transparent e-bidding process followed by e-reverse auction for eligible bidders for procurement of wind power at tariff discovered through open competitive bidding process. SECI will develop guidelines for e-bidding process.
  • MNRE will play an important role by issuing Guidelines for transparent bidding process for implementation of the Scheme.
  • SECI will develop a suitable mechanism for monitoring the performance of the projects and will act as the nodal agency for implementation of this Scheme.
  • The objective of the scheme includes:
    • To facilitate supply of wind power to the non-windy states at a price discovered through transparent bidding process;
    • To encourage competitiveness through scaling up of project sizes and introduction of efficient and transparent e-bidding and e-auctioning processes
    • To facilitate fulfillment of Non Solar Renewable Purchase Obligation (RPO) requirement of non-windy states.

The full article can be accessed here.

MERC Determination of Generic Tariff for Renewable Energy for the remaining Tariff Review Period of FY 2015-16

The Maharashtra Electricity Regulatory Commission came up with its Draft order on determination of generic tariff for Renewable Energy for the remaining Tariff Review Period of FY 2015-16, on 1st December, 2015. This Tariff Order will be applicable for New RE Projects to be commissioned during the remaining Tariff Review Period of FY 2015-16 (1 January to 31 March, 2016).

The RE Tariff Regulations specify the Terms and Conditions and the Procedure for determination of Generic Tariff by the Commission. The graph below gives a comparison of the RE tariff determined in year 2014-15 to the RE tariff determined in 2015-16 for wind and mini & micro hydro generating stations.

The Commission has invited Comments, suggestions and objections from the public and stake-holders, including RE Developers, Distribution Licensees, MEDA, electricity consumers, etc. are on this draft Suo Moto Order.

The Order can be accessed here.

 

 

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.

APERC: Tariff for the Wind & Industrial Waste Power projects

Andhra Pradesh Electricity regulatory Commission (APERC) in its order dated 6th September 2014 has given tariffs for the wind energy generators who have completed 10 years of their commercial operation. The tariff will be applicable to the wind generators of both the states i.e. Andhra Pradesh and Telangana.

The project developers through their submissions requested commission to fix a reasonable tariff as they incurred higher losses due to lower PLF’s achieved. They also requested that in the initial years they paid higher wheeling charges while tariffs were low.

The commission in its order said that as the petitioners were the first movers for the wind generation in the then state of Andhra Pradesh. The PLF’s achieved by petitioners have varied between a range of 6% to 15% against the projected 20% such lowered efficiency has affected the performance of the wind mill generators.

After hearing all the respondent and taking all submissions into consideration the commission fixed single part tariff of Rs.3.37 per unit and said that the tariff should be continued for all these projects till the expiry of the respective PPAs.

In another hearing for fixing the tariff for industrial waste based power projects from 11th year to 20th year of operation, the commission in its order dated 1st September 2014 concluded that the tariff fixed for Biomass based power projects would also be applicable to the Industrial waste based power projects.

The commission in its order dated 19th July 2014 has fixed the fixed cost component for the Biomass based projects in its orderdt.19.07.2014. The details of the tariff are in the table below:

The relevant order can be accessed here.

The order for the Industrial waste based projects can be accessed here.

Our Previous blog post on APERC biomass tariff can be read here.

Contributed by Dheeraj Babariya. 

Reinstatement of Accelerated Depreciation benefit for wind and its impact on the Renewable Energy Industry

Earlier last month, when the Union Budget was presented, there was a mention of reinstatement of Accelerated Depreciation ( AD ) for Wind Energy generators, in the Hindi version of the budget, whereas it found no mention in the English version. This caused confusion in the RE industry circles. However, the government clarified that AD has indeed been brought back on wind investments.

Wind Power development in India started in the early 90s. As per Section 80(J) of Income Tax Act 1961, industries were allowed 80% depreciation on capital invested. Since then till 2012 (when the benefit was removed), Wind Power development and growth has always relied primarily on Accelerated Depreciation (AD).

New wind capacity additional peaked in 2011-12 at about 3,200 MW, falling sharply to 1,700 MW the next year as AD benefits were removed. The argument put forward at that time by policy makers was that wind industry had matured, and the focus needed to shift to solar. This fits well with the objectives of the National Solar Mission.

The decline in wind investment due to withdrawal of AD coincided with healthy growth of close to 60% in Solar Power in 2012-13 and 2013-14. The market momentum had definitely shifted in favor of Solar. Our analysis suggests that Wind AD market had an investing capital of close to 7300 crores. This shifted to Solar AD market which saw increase in investments worth Rs 7500 crores during 2012-13.

The new government has announced that it was reintroducing AD (80%) in 2014, much to the delight of Wind Power stakeholders. We believe that the investment momentum will shift again to wind due to more mature policies and attractive tariffs.

Wind tariff in recent years have become very attractive and are close to solar tariff in many states. In Rajasthan, Maharashtra and MP, tariff in the range of Rs. 5, whereas solar tariffs are generally in the range of Rs. 6, leaving a very small gap.

With this, there will certainly be a diversion in investments from Solar to Wind power in the times to come.

These can also be understood from the table and graph below.

The green dots represent the advantage to the sector.

 

TNERC Extends validity of RE Tariffs

Tamil Nadu Electricity Regulatory Commission (TNERC), through its orders on 25th July and 27th July 2014, has extended the validity of Preferential Tariffs for Wind, Baggase and Biomass based power plants.

The commission in its order has conveyed that the commission is initiating the process for determination of new tariff orders so in meanwhile the validity of tariff dated 31st July 2012 is extended till the issue of next order, the validity of which was ending on 31st July 2014.

The order on wind energy can be read here

The order on the Biomass can be accessed here

The order for the Baggase based plants can be read here

Contributed by Dheeraj Babariya.

CSERC Drafts RE Tariff for FY 2014-15

Chattisgarh State Electricity Regulatory Commission (CSERC) has released a draft on 18th July 2014 for the determination of preferential tariff for Renewable Sources of Energy. The commission has invited comments and suggestions latest by 12th August 2014 and a public hearing will be held for the same on 22nd August 2014.

The details of the proposed tariff are highlighted in the table below:

The tariff proposed by the CSERC is in line with the tariff determined by CERC (Refer). CSERC has reduced the solar tariff compared to previous years, whereas there is slight increase in tariffs of other RE sources.

The CSERC draft can be accessed be here

Our Previous Blog on CERC RE Tariff can be read here

Contributed by Dheeraj Babariya

PSERC Draft RE Tariffs for FY 2014-15

Punjab State Electricity Regulatory Commission (PSERC) has released a draft for determination of tariff for Renewable Energy sources on 11th July 2014. PSERC has Invited comments and suggestions by 6th Aug 2014.

The graph below shows a comparison between tariff’s of CERC and PSERC over last three years (note that the tariff of PSERC for FY 14-15 is proposed and not approved).

It is evident from above that the tariff of PSERC over the period is same as the tariff determined by CERC. So it can be presumed that the final tariff of PSERC for FY 14-15 could be same as tariff determined by CERC. It is worth noting that the tariffs for Wind and Hydro have been marginally increasing over the last 3 years, which is contrary to the trend for Solar.

For further details please refer here.

Contributed by Dheeraj Babariya.

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