Regulator Upholds Grid Connectivity of Hybrid Projects from Two Points

MNRE and the Ministry of Power also allow connectivity of hybrid renewable projects at multiple locations

February 15, 2024

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The Madhya Pradesh Electricity Regulatory Commission (MPERC) has clarified that Regulation 2(xix) of the MPERC (Cogeneration and Generation of Electricity from Renewable Sources of Energy) Regulations, 2021 expressly states that hybrid renewable projects can be situated at two distinct locations and are permitted to inject power into the grid from two points.

The order is in response to a petition filed by Madhya Pradesh Power Transmission Company (MPPTCL) seeking clarification regarding the definition of a renewable hybrid energy project.

Background

MPPTCL drew the Commission’s attention to Clause 2(xix), which defines renewable hybrid energy projects as those producing electricity from a combination of renewable energy sources with a single or maximum of two grid injection points.

However, MPPTCL requested clarification in light of various policies and regulations issued by the Ministry of New and Renewable Energy (MNRE) and different states. The petitioner emphasized that clear definitions are crucial for the effective implementation of renewable energy projects.

The National Solar Energy Federation of India (NSEFI), in an interlocutory application, asserted that its members have invested in hybrid projects in Madhya Pradesh based on the existing definition of a renewable hybrid energy project under MPERC regulations. Any reinterpretation of this definition could adversely affect the interests of NSEFI members and ongoing projects in the state.

MPPTCL responded by stating that MPERC (Cogeneration and Generation of Electricity from Renewable Sources of Energy) (Revision – II) Regulations, 2021 defines a hybrid project as one that produces electricity from a combination of renewable energy sources with a single point of injection into the grid.

MPPTCL also provided a table listing the definitions extracted from various sources, including MPERC regulations, national policies, and state-level policies. It asserted that all these definitions emphasize a combination of at least two different renewable energy sources connected to a single point of injection into the grid.

NSEFI responded by restating that the definition of a renewable hybrid energy project is provided in Clause 2 (xix) of the MPERC regulations. The definition provided should be considered exhaustive, allowing injection from two different points into the grid.

NSEFI also pointed out that the MPERC Open Access Regulations also allow electricity transfer from a maximum of two injection points. It argued that both sets of regulations should be read together to conclude that injection from two different locations is permitted.

Commission’s Analysis

The Commission noted that the MPPTCL had not closely examined the regulations applicable in Madhya Pradesh and had unnecessarily reproduced provisions applicable to projects in other states or inter-state projects.

It was observed that neither the petitioner nor any other stakeholders had raised objections or pointed out any likely difficulties in implementing the existing definition of renewable hybrid projects specified in the MPERC regulations.

The Commission said both the MNRE and Ministry of Power, in their bidding guidelines, allowed connectivity of hybrid renewable projects at multiple locations, and state electricity regulatory commissions are bound to comply with these guidelines for power procurement under section 63 of the Electricity Act, 2003.

Given these guidelines, the Commission stated that hybrid renewable projects can be situated at two distinct locations and are permitted to inject power into the grid from two points.

Last August, the Ministry of Power introduced new guidelines for tariff-based competitive bidding for grid-connected wind-solar hybrid power projects.

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