India: Projects, Energy & Infrastructure Monthly Newsletter | June 2023

Indian Electricity Grid Code, Regulations, 2023

• Central Electricity Regulatory Commission (CERC) vide notification dated May 29, 2023 has issued the CERC (Indian Electricity Grid Code) Regulations, 2023 (IEGC Regulations 2023), which provide for the roles, functions, and responsibilities of the concerned statutory bodies, generating companies and any other persons that may relate to the operation of power systems, and contain exhaustive provisions with respect to the following components:
  • Reliability and adequacy of resources
  • Technical and design criteria for connectivity to the grid including integration of new elements, trail operation and declaration of commercial operation of generation stations and inter-State transmission systems
  • Protection setting and performance monitoring of the protection systems including protection audit
  • Operational requirements and technical capabilities for secure and reliable grid operation including load generation balance, outage planning and system operation
  • Unit commitment, scheduling and dispatch criteria for physical delivery of electricity;
  • Integration of renewables
  • Ancillary services and reserves
  • Cyber security, etc.
• IEGC Regulations 2023 shall apply to all users, State Load Dispatch Centers, Renewable Energy Management Centers, Regional Load Dispatch Centers, National Load Dispatch Centre, Central Transmission Utility, State Transmission Utilities, licensees, Regional Power Committees, Settlement Nodal Agencies, Qualified Coordinating Agencies and Power Exchanges to the extent applicable.
• The IEGC Regulations have not been notified yet and shall come into effect from such date as the CERC may notify and in the meantime, the CERC (Indian Electricity Grid Code) Regulations, 2010 shall continue to apply.

APERC (The Grid Interactive Solar Rooftop Photovoltaic System under Gross/Net Metering) Regulations, 2023

• Vide a notification dated June 06, 2023 Andhra Pradesh Electricity Regulatory Commission (APERC) has proposed the Draft APERC (The Grid Interactive Solar Rooftop Photovoltaic Systems under Net/Gross Metering) Regulations, 2023 (Draft Regulations).
• The Draft Regulations proposed by APERC shall be applicable to all the grid interactive solar rooftop photovoltaic systems with/without battery energy storage systems installed and commissioned in the areas of DISCOMs in the State of Andhra Pradesh.
• APERC has invited stakeholder comments qua the concerned Draft Regulations, which may be submitted on or before July 04, 2023.
• The Draft Regulations, inter alia, provide for the following:
  • All registered companies, government entities, partnership companies/firms/individuals who are consumers of AP DISCOMs and group of persons or societies who are the consumers are eligible for setting up the grid interactive SRTPVS with or without BESS.
  • Capacity of grid interactive SRTPVS with or without BESS under Gross/Net metering shall be applicable in terms of the Regulations as proposed by APERC under Regulation 5.6.
  • Projects of capacity up to 5000kWp at a single location shall be permitted.
  • The permissible capacity of grid interactive SRTPVS at various voltage levels shall be applicable in terms of the Regulations as proposed by APERC under Regulation 5.7.
  • No transmission and wheeling charges & losses shall be collected from the prosumers under the Gross/Net metering, wherever the SRTPVSs and consumption are at the same point of the grid. In other cases, 5% of energy injected into the grid by SRTPVSs in kind shall be collected/adjusted towards T&D charges and losses. The grid support charges as determined by the Commission in the tariff orders from time to time shall be applicable.

Guidelines for tariff based competitive bidding process for procurement of firm and dispatchable power from grid connected renewable energy power projects with energy storage systems

• The Ministry of Power (MoP) issued the Guidelines for tariff based competitive bidding process for procurement of firm and dispatchable power from grid connected renewable energy power projects with energy storage systems, dated June 9, 2023 (Bidding Guidelines).
• The Bidding Guidelines have been issued with the following objectives:
  • To provide firm and dispatchable power to the DISCOMs from renewable energy sources
  • To facilitate renewable capacity addition and fulfilment of Renewable Purchase Obligation (RPO)/ Storage Power Obligations (SPO) requirement of DISCOMs
  • To provide a transparent, fair, standardized procurement framework based on open competitive bidding with appropriate risk-sharing between various stakeholders to enable procurement of power at competitive prices in consumer interest, improve bankability of projects and ensure reasonable returns to the investors
  • To provide a framework for the inter-State/intra-State, long-term, sale-purchase of power as a further measure to de-risk the sector
• These Bidding Guidelines apply to long-term procurement of firm and dispatchable power by procurers, such as DISCOMs, from renewable power projects through competitive bidding. This ensures that the procurement process aligns with the provisions of Section 63 of the Electricity Act, 2003 as the Bidding Guidelines provide parameters and structure that bidding documents and process must follow.

Amendments to APERC Renewable Power Purchase Obligation (Compliance by Purchase of Renewable Energy/Renewable Energy Certificates) Regulations, 2022

• Andhra Pradesh Electricity Regulatory Commission (APERC), vide its notification dated May 06, 2023 has proposed the following amendments to the APERC Renewable Power Purchase Obligation (Compliance by Purchase of Renewable Energy/Renewable Energy Certificates) Regulations, 2022 which are illustrated below:
  • Insertion of new proviso under Sub-Clause 3.2: 'Provided that the purchase of Renewable Energy by the Open Access Consumer from the Distribution Licensee as per the procedure stipulated in Clause 3.4 of this regulation shall also be counted towards the fulfilment of RPPO by such an Open Access Consumer.'
  • Insertion of new proviso under Sub-Clause 3.3: 'Provided that the purchase of Renewable Energy by the captive consume from the Distribution Licensee as per the procedure stipulated in Clause 3.4 of this regulation shall also be counted towards the fulfilment of RPPO by such a captive Consumer.'
• The draft amendment has also inserted a new Sub-Clause 3.4 providing for procurement of renewable energy from distribution licensee by obligated/non-obligated entities at green tariff without needing to opt for a separate category 'green power'.

Discussion Paper on 'Determination of tariff for procurement of power by DISCOMs and others from municipal solid waste to energy projects in the State of Gujarat'

• The Gujarat Electricity Regulatory Commission (GERC), by way of notification dated June 05,2023 has issued a Discussion Paper on 'Determination of tariff for procurement of power by DISCOMs and others from municipal solid waste to energy projects in the State of Gujarat' (Discussion Paper).
• GERC intends to initiate the process for determination of generic tariff for the control period up to March 31, 2028, for procurement of power generated by the MSW Projects in the State of Gujarat by DISCOMs. Interested parties can submit their submissions till July 05, 2023.

Clarifications on Karnataka Electricity Regulatory Commission (Terms and Conditions for Green Energy Open Access (GEOA) Regulations, 2022

• The Karnataka Electricity Regulatory Commission (KERC) has issued a clarification to the KERC (Terms and Conditions for Green Energy Open Access, Regulations, 2022 (GEOA Regulations). Key aspects:
  • Implementation of Time of Day (TOD) settlement of energy injected/drawn: KERC has clarified that in line with the methodology developed by Forum of Regulators (FOR), 2% of the banked energy in kind in addition to the 8% banking charges should be charged for drawl of off-peak energy during peak hours. The TOD slots shall be as specified in the tariff orders issued from time to time and shall be applicable to low tension consumers also who seek open access under the KERC GEOA Regulations. The morning peak slot shall be from 06:00 HRS to 10:00 HRS and the evening peak slot shall be from 18:00 HRS to 22:00 HRS, unless it is modified.
  • Settlement priority between different generation sources: KERC has clarified that interState transactions shall be given priority under existing Clause 6.1.3 of Wheeling Banking Agreement (WBA) under the KERC (Terms and Conditions for Open Access) Regulations. In case, the consumer buys power under the old regime as well as under the new regime of the GEOA, the energy should be allocated on pro-rata basis of the contracted capacity under different regime, till such time the generating units which come under GEOA provide separate meters so that they can be treated separately for energy accounting purpose. Further, while billing the energy under GEOA should be settled first followed by settlement of energy under old regime, with annual banking.
  • Charges to be paid by new consumers to be added to an existing WBA (signed before issue of the GEOA Regulations): KERC clarified that any generator can add or delete consumers under the existing WBA. As far as the open access charges are concerned for these new consumers and for any capacity addition by existing addition by existing consumers under the old WBA regime, the charges in terms of GEOA must be paid as the GEOA Regulations are applicable to all consumers who seek open access after coming into effect of the GEOA Regulations.
  • Applicability of transmission charges for intra-State wheeling of energy: KERC has clarified that in case the wheeling of energy involves usage of transmission network or network of more than one licensee, the charges shall be as indicated below:
    • If only transmission network is used, transmission charges including losses determined by KERC shall be as payable to the transmission licensee;
    • If the transmission network and the DISCOMs network is used, transmission charges shall be payable to the transmission licensee, in addition to transmission and DISCOMs technical losses and wheeling charges shall be payable to the DISCOM where the power is drawn. Wheeling charges of the DISCOM where the power is drawn shall be shared equally among the DISCOMs whose networks are used.
    • If DISCOMs network only is used, after deducting the DISCOMs technical loss of the wheeling charges of the DISCOM where the power is drawn is payable and shall be shared equally among the DISCOMs whose networks are used.
  • Charges applicable under the GEOA Regulations: Till KERC adopts and determines the charges in accordance with the methodology specified by FOR, Karnataka Transmission Company Ltd/ State Load Dispatch Centre/ DISCOMs are directed to collect the following:
    • The transmission charges along with the transmission losses as determined by the KERC in its tariff order shall also be applicable for all transactions coming under GEOA Rules.
    • Wheeling charges, wheeling losses, additional surcharge, and cross subsidy surcharge in full, as determined by the KERC in its tariff orders issued from time to time.
    • Standby charges as per the GEOA Rules specified by Ministry of Power.
    • Banking charges as specified by FOR (8% of the banked energy).
    • Any other charges as determined by the KERC from time to time.

To view the full article, click here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.