KERC Amends Open Access-W&B Charges for RE Generators

Karnataka Electricity Regulatory Commission (KERC), through its order on 04th July 2014, has amended the KERC (Terms and Conditions for Open Access) Regulation, 2014 and has computed the wheeling and Banking charges for Renewable energy generators.

The commission issued a discussion paper on 11th June 2014, and invited comments and suggestion from stakeholders. On 25.06.2014, the commission held a public hearing during which many RE generators requested the commission to either maintain the W&B charges at the current level or to reduce it, stating the reasons that Karnataka is an energy deficit state and RE power being distributed power, will reduce the need for additional transmission network.

In the view of the above, the commission’s final order is as follows:

• The wheeling charges shall continue to be 5% of the injected energy for Wind, Mini Hydro, Biomass and Bagasse Cogeneration plants.
• The banking charges shall continue to be 2% the injected energy and is applicable for Wind and Mini Hydro projects only.
• The annual banking facility shall continue for Wind, Mini Hydro and Solar energy projects, under Non-REC mode.
• W&B charges and CSS shall continue to be exempted for Solar projects till 31^st March 2018, under Non-REC mode.
• The banked energy at the end of the financial year shall be purchased by distribution licensee at 85% of the generic tariff determined by the commission in its latest order.
• The commission has also decided to discontinue the additional UI charges payable between the time of Injection and time of Drawal, for both existing as well as the new projects availing the banking facility.
• The normative wheeling and banking charges applicable for Non-RE generators, will also be applicable for Captive RE generators availing REC’s.

The charges shall be applicable to the above mentioned renewable energy projects commissioned on or before 31.03.2014, and shall be valid for a period of 10 years from the date of commissioning of projects or units.

On requests of solar generators, to extend the period of applicability beyond 2018, the commission has issued a discussion paper in this regard, and has invited comments till 22^nd July 2014.

Click here for more details on the order.

Our previous blog post on Karnataka APPC can be read here