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MPERC Proposes Net Metering Regulation, 2014

Madhya Pradesh Electricity Regulatory Commission (MPERC) in its latest notification dated 26th November 2014 has proposed draft for Net Metering Regulation. The regulation will be known as MPERC (Grid connected Net Metering) Regulations, 2014. The regulation will come in force from date of notification in the official Gazette.

Under the guidelines of the regulation any consumer in the area of distribution licensee can install a Renewable Energy System, which shall be located in the consumer premises. The distribution licensee will offer provision of net metering to the interested consumers on a first come first serve basis.

The interconnection of the RE systems with the distribution network will be made as per technical standard defined by CEA.

The billing and Energy settlement will be based on the meter readings

  1. If the energy injected by the consumer is more than energy consumed by him then such surplus energy will be carried forward to the next billing period.
  2. If The Energy consumed is more than energy injected by the consumer in such case the distribution licensee will raise invoice for payment of energy consumed, after considering the previous energy credit balance.

Renewable Purchase Obligation (RPO): If the consumer is not an obligated entity then such quantum of energy consumed by the consumer will be qualify towards the RPO of the distribution licensee.

Applicability of Charges: The RE systems under this regulation are exempted from payment of wheeling, banking & cross subsidy charges.

Eligibility for Renewable Energy Certificate (REC): The issuance of REC will be as per CERC terms & conditions of REC regulation 2010.

MP as a state has slowly picked up in terms of Wind capacity addition, and with this regulation in place, the move is clearly towards making it a new solar destination. The Solar RPO in the state is 1% for FY 2014-15, which is relatively high compared to some other big states. The solar normal irradiance is in excess of 5.5 kWh/m2/Day, but only close to 350 MW installed capacity has been achieved so far out of a potential of more than 60 GW. With high incentives and favourable conditions, this regulation will help in significant amount of solar capacity addition.

The commission has invited comments and suggestion from the interested stake holders or individuals, if required a public hearing on the same will be held on 19.12.2014 at 11:00 AM in the Court Room of the Commission.

The public Notice and the Draft Net Metering is available on the links.

Our Previous Blog on MPERC order on RPO can be read here.

Contributed by Dheeraj Babariya