JULY 2023, ISSUE 42
IEX BULLETIN
IN THIS ISSUE...
REGULATORY NEWS
Punjab State Electricity Regulatory Commission Issues (Terms and Conditions for Intra-State Open 1 Access) (10th Amendment) Regulations, 2023
Ministry of Power Issues Guidelines for Tariff Based
Competitive Bidding Process for Procurement
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of Firm & Dispatchable RE Power with Energy Storage
Rajasthan Electricity Regulatory Commission Issues (Renewable Purchase Obligation)
REGULATORY NEWS
Punjab State Electricity Regulatory Commission Issues (Terms and Conditions for Intra-State Open Access) (10th Amendment) Regulations, 2023
On 2nd June 2023, the Punjab State Electricity Regulatory Commission (PSERC) introduced the 10th amendment to the Terms and Conditions for Intra-State Open Access Regulations
2023. According to the amendment:
Regulations, 2023 for RPO Trajectory Till FY 2029- 30
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Defined Banking, Green Energy, Green Energy Open Access, |
Green Energy Open Access Consumer. |
Tamil Nadu Electricity Regulatory Commission | |||||||
Issues Draft | (Renewable Purchase | Obligation) | 3 | ||||
Regulations, 2023 | |||||||
Chhattisgarh | State | Electricity | Regulatory | ||||
Commission | Issues | Draft | (Intra-State | Open | 3 | ||
Access in Chhattisgarh) (Second Amendment) | |||||||
Regulations, 2023 | |||||||
Ministry | of Power Issues Electricity | (Rights of | 4 | ||||
Consumers) Amendment Rules, 2023 | |||||||
Gujarat Electricity Regulatory Commission Issues | |||||||
Draft (Terms and Conditions for Green Energy | 4 | ||||||
Open Access) Regulations, 2023 | |||||||
Ministry | of | Power | Issues | Draft | Electricity | 5 | |
(Amendment) Rules 2023 | |||||||
Ministry of Power in Consultation with Central | |||||||
Electricity Authority Issues Guidelines for | 5 | ||||||
Resource Adequacy (RA) Planning | |||||||
Various | State Electricity Boards Issued | Tariff | 7 | ||||
Orders | |||||||
CRITICAL REFORMS: MOP GROUP PROPOSES | |||||||
SOLUTIONS FOR INDIA'S ELECTRICITY | |||||||
MARKET DESIGN | |||||||
(This article appeared in Powerline - | 8 | ||||||
www.powerline.net.in, July 3rd, 2023) | |||||||
POWER INSIGHTS | |||||||
Power Insights: JUNE 2023 | 13 | ||||||
MARKET NEWS | |||||||
Market News | 12 | ||||||
TRADE INSIGHTS | |||||||
Day-Ahead Power Market | 13 | ||||||
Term-Ahead Power Market | 15 | ||||||
Real-Time Electricity Market | 17 | ||||||
Green Market | 18 | ||||||
Consumers with sanctioned contract demand of >=100kVA |
eligible to take power through Green Energy Open Access |
Regulation defines the Procedure for Application of Green |
Energy OA. |
CSS for Green Energy OA Consumer shall not be increased, |
by more than 50% of the surcharge fixed for the year in |
which open access is granted, during 12 years from date of |
operating of RE generating plant. |
CSS & Additional Surcharge not applicable on power procured |
from non-fossil fuelbased waste-to-energy & if green energy |
is utilised for production of hydrogen & ammonia. |
CSS shall not exceed 20% of average cost of supply. |
ASC not applicable on GEOA consumers paying fixed |
charges. |
Quantum of drawal of electricity by an OA consumer (except |
GEOA consumer) from Discom during any time block of |
a day shall not exceed admissible drawal of electricity by |
OA consumer from Discom in such time block wherein the |
schedule for Open Access drawl is the maximum |
GEOA consumer to restrict sum of total drawal from OA and |
Discom upto sanctioned CD. Maximum admissible drawal |
from Discom in any time block during the day for GEOA |
consumer shall be the difference of sanctioned CD and |
scheduled entitlement. |
- GEOA consumer shall not change quantum of power consumed through OA for atleast 12 consecutive time blocks during a day.
- Banking allowed to GEOA consumers. Drawal of banked energy not allowed during peak seasonal period & during peak load hours. Banking permitted up to 30% total monthly consumption from Discom.
-
Unutilised surplus power to be governed as per provisions of electricity (Promoting Renewable Energy to
GEOA) Amendment Rules, 2023.
Ministry of Power Issues Guidelines for Tariff Based Competitive Bidding Process for Procurement of Firm & Dispatchable RE Power with Energy Storage
On 9th June 2023, the Ministry of Power issued guidelines for Tariff Based Competitive Bidding Process for Procurement of Firm & Dispatchable RE Power with Energy Storage. According to the guidelines:
- 'Firm and Dispatchable RE power' means supply of electricity as per the demand profile specified in the RFS/ bidding documents.
- Generator shall offer RE power, against demand profile specified in RFS. Penalty equal to 1.5 times tariff for number of units not supplied.
-
Generator to offer power such that 100% of annual energy offered is RE Power. Generator can source max 5%
RE power from green market. - Tariff
o Single tariff shall be quoted at Delivery Point by the bidders;
o All charges & losses till delivery point to be borne by the Generator. - Bid Structure
o Bids shall be in capacity (MW) terms. Procurer may specify minimum off-take in terms of annual energy in the RFS.
o Bidding evaluation parameter shall be tariff per unit supply (Rs./kWh). o The bidder shall be selected on the basis of least quoted tariff.
o Subsequent to e-RA, capacity allocation will be done on bucket filling.
o Allocation will be made to bidders whose bid falls within a pre-defined "Range" (2-5%) from the L1 tariff, as stipulated in the RFS. - PPA Period: 20/25 years from Scheduled Commencement of Supply Date.
- Power Procurement
o Generator can supply excess power from the RE power plant to any third party or power exchange without any NOC from the Procurer.
o Generator may also sell power offered on day ahead basis to Procurer but not scheduled, to any third party or power exchange without NOC. - Intermediary Procurer - Trading margin of Rs. 0.07/kWh payable by End Procurer to Intermediary Procurer.
- Payment Security - Intermediary Procurer may maintain a payment security fund. To be eligible for coverage from the fund, the developer will undertake to pay PSM charges at the rate of 2 paise per unit.
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Rajasthan Electricity Regulatory Commission Issues (Renewable Purchase Obligation) Regulations, 2023 for RPO Trajectory Till FY 2029-30
In line with the MoP notification, on 13th June 2023, the Rajasthan Electricity Regulatory Commission (RERC) issued the Renewable Purchase Obligation trajectory for FY 2024-25 to FY 2029-30. According to the trajectory:
- Wind RPO- Met from Wind Power Projects commissioned after 31.3.2022. Also met from wind energy consumed over & above 7% of total energy consumption, from WPPs commissioned till 31.03.2022.
- HPO- Met from LHPs (including PSPs) or SHPs, commissioned after 8.3.2019.
- Other RPO met from any RE power project not mentioned above.
- Storage RPO- %age of energy consumed from solar/wind with storage.
- FY '23 onwards, energy from all other HPPs including free power from HPPs, which does not form part of HPO trajectory, will be considered as part of 'RPO' under category of 'other RPO'.
- Shall come into force from 01.04.2024.
Tamil Nadu Electricity Regulatory Commission Issues Draft (Renewable Purchase Obligation) Regulations, 2023
In line with the MoP notification, on 13th June 2023, the Tamil Nadu Electricity Regulatory Commission (TNERC) issued the Renewable Purchase Obligation trajectory for FY 2024-25 to FY 2029-30. According to the trajectory:
- Wind RPO- Met from Wind Power Projects commissioned after 31.3.2022. Also met from wind energy consumed over & above 7% of total energy consumption, from WPPs commissioned till 31.03.2022.
- HPO- Met from LHPs (including PSPs) or SHPs, commissioned after 8.3.2019.
- Other RPO met from any RE power project not mentioned above.
- Storage RPO- %age of energy consumed from solar/wind with storage.
- If obligated entity establishes that it is not able to fulfil HPO or Storage RPO through REC or energy in a particular year and the Commission is satisfied, then other RE sources shall be purchased for fulfillment of
RPO.
Chhattisgarh State Electricity Regulatory Commission Issues Draft (Intra-State Open Access in Chhattisgarh) (Second Amendment) Regulations, 2023
On 15th May 2023, the Chhattisgarh State Electricity Regulatory Commission (CSERC) issued draft (Intra-State Open Access in Chhattisgarh) (Second Amendment) Regulations, 2023. The main point of the draft is as follows:
- CSS to be calculated based on the difference between the average tariff for such supply voltage for the consumer of subsidising category and the average cost of supply for the licensee subject to the ceiling limit of 20% of adjusted average cost of supply for that year.
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Ministry of Power Issues Electricity (Rights of Consumers) Amendment Rules, 2023
On 14th June 2023, the Ministry of Power (MoP) issued the Electricity (Rights of Consumer) Amendment Rules,
2023. The key amendments stated the following:
- Amendment to Rule (8A) - TOD Tariff for C&I consumers having MD > 10 KW to be made effective by 1.4.2024. For other consumers except agricultural consumers, TOD to be made effective by 1.4.2025. Consumers with smart meters, TOD to be made effective immediately.
- TOD Tariff specified by SERC during peak period for C&I consumers shall be >= 1.20 and for other consumers
>= 1.10 times normal tariff. - Tariff for solar hours of the day, specified by the SERC shall be at least 20% less than the normal tariff for that category of consumers.
- Duration of peak hours shall not be more than solar hours as notified by the State Commission or SLDC.
- For the purposes of this rule, the expression "solar hours" means the duration of 8 hours in a day as specified by the State Commission.
Gujarat Electricity Regulatory Commission Issues Draft (Terms and Conditions for Green Energy Open Access) Regulations, 2023
On 23rd June 2023, the Gujarat Electricity Regulatory Commission (GERC) issued the draft (Terms and Conditions for Green Energy Open Access) Regulations, 2023. The key points of the draft are as follows:
- Consumers with sanctioned load of >=100kVA eligible to take power through GEOA either through single connection or multiple connections aggregating 100 kW or more located in same electricity division of a Discom. No limit of supply of power for the captive consumers.
- Applicants seeking GEOA shall submit an undertaking of not having entered into PPA or any other bilateral agreement with more than one person for the capacity (quantum of power) for which GEOA is sought.
- Discom shall have highest priority over other GEOA consumers, GEOA consumers shall have priority over normal OA consumers, amongst GEOA consumers, long-term GEOA consumers shall have priority followed by medium and short term GEOA Consumer.
- GEOA applicant to submit application on central portal of Central Nodal Agency. Application to be forwarded to the concerned State Nodal Agency by Central Nodal Agency for verification and same shall be decided by nodal agency within 15 days from the date of receiving the application.
- Applicant to pay to SNA Rs. 50,000 for long-term, Rs. 25,000 for medium-term and Rs 5,000 for short-term GEOA.
- GEAO consumer shall not change quantum for minimum 12 time-blocks.
- Transmission & Wheeling Charge & CSS as per Tariff Order.
- CSS & Additional Surcharge applicable as per MoP Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022.
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Ministry of Power Issues Draft Electricity (Amendment) Rules 2023
The Ministry of Power (MoP) issued the draft Electricity Amendment Rules 2023 on 28th June. 2023. The key points of the rules are as follows:
- Establishment, operation and maintenance of dedicated transmission lines: A generating company or a person setting up a CPP or an Energy Storage System or a consumer having load >= 25 MW in case of ISTS
- >=10 MW in case of InSTS shall not require license for establishing, operating or maintaining a dedicated transmission line.
- Open Access Charges:
o Wheeling charges = ARR wheeling/Energy wheeled during the year.
o STU charges for consumers availing STOA shall be <=110% of the charges levied on consumers using STU network on long term basis.
o Additional Surcharge: For STOA, shall not be more than 50% of wheeling charges of the category. For long term OA consumers, ASC shall be linearly eliminated within 5 years from date of grant of OA.- Gap between approved ARR & estimated Annual Revenue from Approved Tariff:
o No gap between approved ARR and estimated annual revenue from approved tariff except under natural calamity conditions.
o Gap, created if any, shall be <=3% of the approved ARR.
o Gap & carrying costs at 'base LPS rate' as per LPSC Rules 2022 shall be liquidated in max 3 equal yearly installments from next financial year.
o Any gap and carrying cost existing on the date of notification of these rules, shall be liquidated in maximum
7 equal yearly instalments.- Appeal before the APTEL:
o Any person appealing against the order of Appropriate ERC, shall, while filing an appeal before APTEL, pay at least 50% of the payable amount as per the order of the Appropriate ERC.
o In case of 'Change in Law' matters, such payment shall be, 75% of the payable amount as per the order of the Appropriate ERC.
o After final order any excess amount paid earlier shall be refunded along with the interest at the 'base LPS rate'.
Ministry of Power in Consultation with Central Electricity Authority Issues Guidelines for Resource Adequacy (RA) Planning
In consultation with the Central Electricity Authority (CEA), the Ministry of Power (MoP) issued guidelines for Resource Adequacy (RA) Planning on 29th June 2023. The key guidelines are as follows:
- RA guidelines aim to achieve - Energy for growth- Timely add adequate capacity to meet projected demand; Discoms' responsibility to ensure 24 X 7 reliable power; Security of supply- Discoms capacity shall be a mix of long/medium/short term contracts at least cost. Over reliance on the electricity market is to be avoided; Compliance with Nationally Determined Contributions (NDCs)
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Indian Energy Exchange Ltd. published this content on 31 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 July 2023 09:40:01 UTC.