LEGAL & POLICY UPDATES

Draft Electricity (Amendment) Rules, 2023

  • The Ministry of Power (MOP) by way of the draft Electricity (Amendment) Rules, 2023 intends to amend/add Rule 4 A to the Electricity Rules, 2005.
  • The proposed amendment to Rule 4A provides that where any person or entity, including a Government Company, was functioning as a licensee under the previous Act, and continues to function as a licensee under the provision of Section 14 of the Electricity Act, 2003, and where the duration of the license was not prescribed under the previous Act, in such cases the period of the license shall be 25 years from the date of coming into force of the Electricity Act, 2003. Licensees are required to apply for and obtain the renewal of their license before the date of expiry of their license.

Notification of the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Amendment Rules, 2023

  • The Electricity (Promoting Renewable Energy Through Green Energy Open Access) Amendment Rules, 2023 (Amendment Rules 2023), notified by the Ministry of Power (MOP) on January 27, 2023, amend the provisions of the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022 (Original Rules) which were notified on June 6, 2022 in order to further accelerate India's ambitious renewable energy programs, with the objective of ensuring access to affordable, reliable, sustainable and green energy for all.
  • According to the Amendment Rules 2023, any consumer may elect to purchase green energy either up to a certain percentage of the consumption or its entire consumption and they may place a requisition for this with their Distribution Licensee, which shall procure such quantity of green energy and supply it and the consumer shall have the flexibility to give separate requisition for solar and non-solar. Provided that the credit for banked energy shall not be permitted to be carried forward to subsequent banking cycles and shall be adjusted during the same banking cycle. Further, the unutilized surplus banked energy shall be considered as lapsed at the end of each banking cycle and the renewable energy generating station shall be entitled to get Renewable Energy Certificates (RECs) to the extent of the lapsed banked energy.
  • The charges to be levied on Green Energy Open Access consumers are transmission charges, wheeling charges, cross subsidy surcharge, standby charges wherever applicable, banking charge and other fees and charges such as Load Despatch Centre fees and scheduling charges, deviation settlement charges as per the relevant regulations of the Commission.
  • Cross subsidy surcharge and additional surcharge shall not be applicable in case power produced from a non-fossil fuel-based waste-to-energy plant is supplied to the Open Access consumer and additional surcharge shall not be applicable in case electricity produced from offshore wind projects, which are commissioned up to December 2025 and supplied to the Open Access Consumer.
  • The standby charges, wherever applicable, shall be specified by the State Commission and such charges shall not be applicable if the Green Energy Open Access consumers have given notice, at least a day in advance, before closure time of the Day Ahead Market on 'D - [minus] 1' day, 'D' being the day of delivery of power for standby arrangement to the Distribution Licensee.

Major Ports Adjudicatory Board Rules, 2023 notified on January 17, 2023

  • On January 14, 2023, the Ministry of Ports, Shipping and Waterways notified the Major Ports Adjudicatory Board Rules, 2023 (Adjudicatory Rules 2023). The Adjudicatory Rules 2023 are framed in exercise of the powers conferred by sub-Section (3) and (5) of Section 56 and subSection (2) of Section 58 read with Clauses (g), (k), (l), (m), (n), (o), (p) and (q) of sub-Section (2) of Section 71 of the Major Port Authorities Act, 2021 (1 of 2021).
  • Section 3 of the Adjudicatory Rules 2023 provides that the Presiding Officer and members of the Adjudicatory Board shall be appointed by the Central Government on recommendation of a Selection Committee consisting of the Chief Justice of India or his nominee, Secretary-in-charge of the Ministry of Ports, Shipping and Waterways, Secretary-in-charge of the Department of Personnel and Training.
  • Section 28 of the Adjudicatory Rules 2023 provides that the Adjudicatory Board shall exercise the powers and perform the functions as provided in Section 58 of the Act and shall receive, review and adjudicate upon the following categories:
    • Category A – Cases in respect of matters stipulated under Clause (a) of sub-Section (1) of Section 58 of the Act.
    • Category B – Any dispute, difference or claim related to the rights and obligations of Major Ports and Public Private Partnership concessionaires or captive users for dedicated berth within the framework of their concession agreements under Clause (b) of sub-Section (1) of Section 58 of the Act.
    • Category C – Stressed Public Private Partnership projects referred by the Central Government or the Board of the Major Port Authority to the Adjudicatory Board under Clause (c) of sub-Section (1) of Section 58 of the Act.
    • Category D – Complaints received from port users under Clause (d) of sub-Section (1) of Section 58 of the Act.
    • Category E – References under Clause (e) of sub-Section (1) of Section 58 of the Act.
    • Category F – Applications made under Section 32 of the Act.
  • Every case, application, review, or any document related thereto shall be filed to the Adjudicatory Board in English and the same shall be fairly and legibly type written, lithographed, or printed. Every case, application, review, or related document shall be divided into paragraphs and shall be numbered consecutively, and each paragraph shall contain as nearly as may be, a separate fact or allegation or point.
  • Every case, application, review, or document shall explicitly state the following:
    • Facts of the case, application, review sought
    • Point of issue
    • Relief sought
    • Address for service of notice
  • Adjudicatory Board for the disposal of such case, application, or review within six months from the date of its presentation before the Adjudicatory Board.

Comments/suggestions sought on Quality Control Manual for Grid Connected Rooftop Solar PV Systems and Solar PV Water Pumping Systems

The Ministry of New & Renewable Energy (MNRE) by way of the Office Memorandum dated February 25, 2023, has published draft manual to ensure the quality of installation and a structured mechanism for monitoring of the installations of the Grid-connected Rooftop Solar PV System and Standalone Solar PV Water Pumping System and Solarization of existing individual agricultural pumps (Draft Manual).
The MNRE has sought comments/suggestions from the stakeholder on the Draft Manual by 5:00 PM, March 10, 2023.

Extension for implementation of solar PV/solar PV-wind hybrid power projects

  • The MNRE on January 25, 2023, has extended time for completion of the of the PV/solar PV – wind hybrid projects up to March, 2024. Earlier the solar PV/solar PV-wind hybrid projects were to be completed by March 9, 2021.

Extension for compliance and implementation of the Quality Control Order, 2017 for SPV inverters (items 4-5)

  • The MNRE had issued Solar Photovoltaics, Systems, Devices and Components Goods (Requirements for Compulsory Registration) Order, 2017 vide S.O. 2920 (E) dated September 05, 2017 for six products included in the Schedule with the date of coming into force with effect from September 09, 2018 and the same was modified vide S.O. 5259(E) published in Gazette of India dated December 12, 2018. And whereas, self- certification for SPV inverters (items 4-5) was extended up to December 31, 2022 vide S.O. 3535(E) published in Gazette of India dated July 28, 2022.
  • By way of the notification dated January 24, 2023 MNRE has extended time for compliance with the implementation of Quality Control Order, 2017 for SPV inverters (items 4-5) from December 31, 2022 to June 30, 2023 or till further orders, whichever is earlier, based on self-certification, subject to the condition that such manufacturers have valid IEC certificates corresponding to IS (IS 16221(Part 2):2015/IEC 62109-2:2011 for item No 4 and IS 16169:2014/IEC 62116:2008 for item No. 5), specified in the said order for these items and test reports from accredited test labs, for smooth implementation of the order.

Draft guidelines to promote development of Pump Storage Projects (PSP)

  • Vide notification dated February 15, 2023, the Ministry of Power (MoP) has issued draft guidelines to promote development of Pump Storage Projects (PSP) in the country. PSPs are seen as vital for grid stabilization as well as meeting the peaking power demand, and a need for formulating separate guidelines to promote PSPS was felt in order to aid their development. MoP has sought comments and suggestions from all stake holders by March 3, 2023

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