MNRE simplifies guidelines for Kusum Solar Program
- On December 14, 2021 Ministry of New and Renewable Energy (MNRE) issued new guidelines allowing states can invite bids to empanel vendors for different regions to install standalone solar pumps under the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan Program (PM-KUSUM). However, the price discovered in the latest centralized tender would be considered as the ceiling price.
- MNRE has also decided to increase the implementation period to 24 months from the date of issue of approval for all three components of the PM-KUSUM Program in order to give sufficient time for implementation. Extension beyond 24 months will be considered as per the program guidelines.
- The provision for incentivizing farmers who consume less electricity than the benchmark consumption will be an option as not all farmers may be willing to install necessary meters to avail incentives. The distribution companies will inform the farmers about the benchmark consumption and the amount of incentive per unit they can avail in case of lower consumption.
MNRE issues new direction w.r.t restoration of bank guarantees
- On December 16, 2021 Ministry of New and Renewable Energy
(MNRE) issued an Order by virtue of which it has directed
MNRE's renewable energy implementing agencies (SECI/NTPC/NHPC)
to incorporate the following amount in all renewable energy
- Earnest Money Deposit - 2% of the estimated project cost
- Performance Bank Guarantee - 4% of estimated project cost (in case of site specified by the procurer) and 5% of estimated project cost (in case of site selected by the generator)
Andhra Pradesh Electricity Commission - Draft Andhra Pradesh Electricity Regulatory Commission (Terms and Conditions for Short Term Procurement/Sale of Power) Regulation, 2021
- On November 3, 2021 The APERC had notified a draft Andhra Pradesh Electricity Regulatory Commission (Terms and Conditions for Short Term Procurement/Sale of Power) Regulations, 2021.
- Key aspects these regulations are:
- Extent and commencement
- This Regulation supersedes all the guidelines/directions issued by the Commission pertaining to short-term power procurement.
- This Regulation shall be applicable to the State of Andhra Pradesh.
- Demand estimation
- State Load Despatch Centre (SLDC) shall carry out the monthly estimation of demand of each block for 15 minute duration on the basis of historical data, demand forecasts and deep machine learning (to be used by the licensees and SLDC).
- Weekly and day-ahead demand estimations by SLDC shall also take into consideration the weather forecasts.
- Efficiency of AI tools for forecast of demand vis-à-vis the actual demand shall be assessed periodically.
- Monthly power procurement plan
- On the 10th day of every month, every licensee shall inform the SLDC regarding its estimation of demand for each time block for the following month.
- After assessing the demand, the SLDC shall inform the licensees regarding the power to be procured by each of them on a short-term basis for the following month within three working days from the receipt of the demand estimations from the licensees.
- Upon receipt of the communication from SLDC, the licensees shall invite tenders.
- After completion of bidding, the licensees shall place the details regarding the quantum and price of the power before the Andhra Pradesh Electricity Regulatory Commission (Commission).
- After consideration of the details provided by the licensees, the Commission will communicate its decision and thereafter, on the basis of its approval, the licensees shall place orders for procurement.
- Weekly power procurement plan: On every Wednesday of the week, after assessing the demand on the basis of its own forecast and availability of power from all the sources including the sources on a short-term basis, SLDC shall communicate to the licensees regarding the short-term power requirement for the following week. The licensees have option to procure power as communicated by SLDC from the Term Ahead Market exchanges. All such procurement/purchase shall be approved by the Commission.
- Day-ahead power procurement plan
- Every day by 10:00 AM, SLDC shall communicate regarding the power requirement for the next day to the licensees.
- The licensees have option to procure power in day-ahead market; all such procurement/purchase shall be approved by the Commission.
- Intraday purchases: In case of less generation from the approved sources, the licensees may meet the variation by procuring the required power from the real-time/intraday market of the Power Exchanges.
- Bilateral contracts
- The licensees are not allowed to purchase/procure energy through bilateral contracts except from the sources approved by the Commission.
- In case the PPA with the approved sources is expired and procurement from them leads to reduction of purchase costs by the licensees, and the licensees still desire to procure from such sources, then the licensees shall approach the Commission at least 15 days before the commencement of the procurement.
- Benchmark price for short-term power procurement: The benchmark price for short-term procurement for a particular year shall be calculated as per unit weighted average price of the energy determined by the Commission for that year in the retail supply tariff order.
- Ministry of Power guidelines on short-term power procurement: The licensees shall follow the guidelines/procedure for short term power procurement as prescribed by the Ministry of Power (Government of India) from time to time.
- Placing of information on website: The monthly/weekly/day-ahead power requirement communicated by SLDC to the licensees as well as the power procurement by the licensees will be published on the websites of the licensees and the SLDC within 48 hours of such procurement.
- Reserve shutdown
- In no case, the approved sources shall be put under reserve shut down without the prior approval of the Commission.
- Any proposal for reserve shut down shall be placed at least three working days in advance before the Commission.
- Sale of surplus power: The licensees shall make all the efforts to sell the surplus power available during time blocks through the Power Exchanges.
- Constitution of a dedicated cell
- Every licensee shall constate a cell to monitor the prices in the market round the clock.
- The cell has power to purchase the power in real-time market of the Exchanges when the per unit landed price is below the per unit variable costs of the energy from the approved sources/stations.
- The cell has power to sell surplus energy including the surplus energy from wind and solar power plants in Green Term Ahead Market in real-time, intraday, day-ahead / week ahead market if such sales lead to reduction in overall cost of purchase.
- The guidelines shall be framed by the licensees for the functioning of the cell and the same shall be approved by the Commission.
- Computation of landed prices of short-term procurement:
The licensees shall consider the following factors while computing
the landed price:
- The reduction in the GCV value of coal when it is stored for longer periods due to the shutdown of the approved thermal stations to accommodate market purchases.
- The frequent shutdown of approved thermal stations to accommodate market purchases will lead to a reduction in the life of their equipment necessitating their replacement frequently which is causing an additional financial burden on the licensees in the form of additional capital expenditure.
- The shutdown of the approved thermal stations to accommodate market purchases lead to the build-up of more coal stocks in the thermal stations with the result that these stations will declare higher availabilities. The said higher availabilities declared by the thermal stations will impose an additional financial burden on the licensees in the form of higher fixed costs.
- Real-Time Data: SLDC shall make available the real-time data of generation from all the sources.
- Furnishing of the information to the
Commission: The licensees shall submit the following
information to the Commission through email:
- The details of real-time/intraday/day-ahead market power procurement and sales by the end of every day.
- The details of weekly power procurement and sales in Term Ahead Market for the next week and the power supply status of the previous week before the end of the Wednesday of the present week.
- The details of power procurement and sales for the next month and power supply status for the previous month before the end of the 10th day of the present month.
- Power to relax time limits: The Commission may relax the time limits as provided in this regulation by providing sufficient reasons in writing.
- Power to remove difficulties: The Commission may make any provision redundant if the same provision is causing difficulty in implementation of the provisions of this Regulations. This can be done through a general or specific order.
- Power to amend: The Commission may add, vary, alter, modify, delete or amend any provision of this Regulation.
- Power to dispense with the requirement of the Regulation: The Commission has power to dispense with any requirement of this Regulation after providing sufficient reasons in writing and with notice to the affected parties.
- The provisions of this Regulation are in addition to and not in derogation of the provisions of any other law/rules/regulations/scheme/contract.
- Nothing in this Regulation shall bar the Commission from adopting any procedure which is in variance with any of the provisions of this Regulations.
- Extent and commencement
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Originally Published by December 2021
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