Projects, Energy & Infrastructure Monthly Newsletter | March 2024

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HSA Advocates

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A modern law firm with 28 partners and 120+ professionals, HSA leverages its deep regulatory underpinnings and sectoral knowledge to provide practical, implementable and enforceable advice. With its full-service capabilities and four offices pan-India, the firm is well known for its proactive approach to composite risk redressal and seamless cross-jurisdiction support while advising clients on their multi-faceted requirements.
Delhi Electricity Regulatory Commission (DERC) on January 19, 2024, notified the DERC (Conduct of Business for Holding Inquiry by Adjudicating Officer) Regulations...
India Energy and Natural Resources
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Delhi Electricity Regulatory Commission (Conduct of Business for Holding Inquiry by Adjudicating Officer) Regulations, 2023 (Amendment) Rules, 2024

  • Delhi Electricity Regulatory Commission (DERC) on January 19, 2024, notified the DERC (Conduct of Business for Holding Inquiry by Adjudicating Officer) Regulations, 2023 (Regulations). The objective of these Regulations is to provide provisions regarding the process of adjudication before the Adjudicating Officer appointed by DERC under section 27(A) of the Energy Conservation Act 2001 (EC Act), as amended from time to time.
  • These Regulations will be applicable for holding inquiries on receiving complaints under Section 14 and or Section 15 of the EC Act by the Adjudicating Officer. The process will be carried out in the manner specified in the Regulations. Section 14 of the EC Act provides for the power of the Central Government to enforce the efficient use of energy and its conservation whereas Section 15 of the EC Act provides for the power of the State Government to enforce certain provisions for efficient use of energy and its conservation.
  • The key highlights of these Regulations are as follows:
    • A person may appear himself or may authorise any of his employees to appear before the Adjudicating Officer and to act and plead on his behalf or a person may authorise an advocate or a registered consultant or a member of any statutory professional body holding a certificate of practice to act and plead on his behalf before the Adjudicating Officer.
    • At any stage of the proceedings, the Adjudicating Officer may refer such issue or issues in the matter, as he considers appropriate to persons including, but not limited to the officers of the Commission and or the Government agency/body whom the Adjudicating Officer considers as qualified to give expert or specialized advice or opinion.
    • A fee of INR 50000 shall be applicable towards the Petition fee for proceedings before the Adjudicating Officer under these Regulations.
    • The Adjudicating Officer may on its own motion or on the application of any of the person or parties concerned, within 60 days from the date of making any decision, direction, or order, review such decision, direction, or order and pass such appropriate order as the Adjudicating Officer thinks fit.
    • The Adjudicating Officer may, at any time and on such terms as to costs or otherwise, as he may think fit, amend any defect or error in any proceeding before him, and all necessary amendments shall be made for the purpose of determining the real question or issue arising in the proceedings.

MNRE issues Scheme Guidelines for Implementation of Strategic Interventions for Green Hydrogen Transition (SIGHT) Program Component – II: Incentive for Procurement of Green Hydrogen Production (Under Mode-2B) of National Green Hydrogen Mission

  • Ministry of New and Renewable Energy (MNRE) through its notification dated January 16, 2024, issued Scheme Guidelines for Implementation of Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme-Component-II: Incentive for Procurement of Green Hydrogen Production (Under Mode-2B) of the National Green Hydrogen Mission (Incentive Scheme under Mode - 2B).
  • The main objectives of Incentive Scheme under Mode - 2B are to: (a) maximize production of Green Hydrogen in India; (b) enhance cost competitiveness vis-à-vis fossil-based alternatives; and (c) encourage large scale utilization of Green Hydrogen. The highlights of Incentive Scheme under Mode - 2B are:
    • Oil & Gas Companies and the Centre for High Technology (CHT) will collaborate to implement Incentive Scheme under Mode - 2B, pooling demand and inviting bids for the production and supply of Green Hydrogen at the competitive rates for one or more refineries, with the incentive being fixed.
    • Bidders seeking incentives must adhere to the criteria specified in the 'National Green Hydrogen Standard' notified by MNRE. The scheme offers direct incentives based on the quantity of Green Hydrogen produced and supplied, starting at INR 50/Kg in the first year, followed by INR 40/Kg in the second year, and INR 30/Kg in the third year.
    • Beneficiaries in the Incentive Scheme under Mode - 2B are chosen competitively based on price. The lowest bidder gets the first allocation, with others following suit. Bidders are required to produce the Green Hydrogen capacity quoted with no trading permitted. Tranche I of Mode 2B offers 200,000 MT/year of Green Hydrogen, with potential for more capacity in future tranches as determined by MNRE.
    • The point of delivery has been identified at the respective refinery battery limit and the supplier is responsible for the delivery of the product to the point of delivery, including storage and transportation.
    • Bidders must have a net worth (as on the last date of the previous Financial Year) of at least INR 15 crore per thousand MT per annum of quoted production and supply capacity of Green Hydrogen capacity.

Ministry of Power issues the Electricity (Second Amendment) Rules, 2024 to amend the Electricity Rules, 2005

  • The Ministry of Power (MOP) by way of a notification dated January 17, 2024, issued the Electricity (Second Amendment) Rules, 2024 (Second Amendment Rules) to amend the Electricity Rules, 2005 (Electricity Rules). These rules bring about changes to the existing Electricity Rules, 2005.
  • One of the key modifications introduced by the Second Amendment Rules is the amendment to Rule 22 of the Electricity Rules, 2005 which was inserted by way of Electricity (Amendment) Rules, 2024 notified on January 11, 2024.
  • Rule 22(1) of the Electricity Rules lays down the method for calculating Wheeling Charges. The Second Amendment Rules have added a proviso, serving as a clarification, empowering the Appropriate Commissions to set distinct Wheeling Charges for various voltage levels. This adjustment aligns with the formula outlined in Rule 22(1) of the Electricity Rules.

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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.

Projects, Energy & Infrastructure Monthly Newsletter | March 2024

India Energy and Natural Resources

Contributor

A modern law firm with 28 partners and 120+ professionals, HSA leverages its deep regulatory underpinnings and sectoral knowledge to provide practical, implementable and enforceable advice. With its full-service capabilities and four offices pan-India, the firm is well known for its proactive approach to composite risk redressal and seamless cross-jurisdiction support while advising clients on their multi-faceted requirements.
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