Madhya Pradesh Retains Must-Run Status for Solar and Wind

By keeping the must-run status Madhya Pradesh is sending a positive signal to developers and the investment community

The Madhya Pradesh Electricity Regulatory Commission (MPERC) has kept the must-run status intact for power generation from wind, solar, small hydro and municipal solid. The renewable energy sources will not be subject to merit order dispatch principles as proposed in an earlier proposal.

MPERC in the amendment order has allowed for scheduling in case of co-generation and generation from renewable energy sources.

Apart from wind, solar, small hydro and municipal solid waste, generation from other renewable energy sources or co-generation projects of up to 2 MW will be exempt from merit order dispatch principles.

Per the MPERC order, now, any individual utilizing co-generation or renewable energy sources for power generation will have open access in Madhya Pradesh under Section 42 of Electricity Act. This will depend on the available capacity under distribution licensee or transmission company’s network in Madhya Pradesh.

Wheeling charges, a cross subsidy surcharge, and an additional surcharge on the wheeling charges as decided by MPERC will apply from time to time. Power generators will be entitled to draw power exclusively for their own use from the transmission network to synchronize their projects with the grid or during a project’s shutdown period. The power utilized in grid synchronization will be billed at the rate of retail supply tariff of power for synchronization. (There are different tariff slabs for electricity depending on what it is used for.)

Mercom previously reported, on MPERC proposal to apply merit order dispatch principles on renewable energy generation projects. This would have nullified the state’s push toward solar and renewable energy generation in general.

When contacted a MPERC official told Mercom, “Madhya Pradesh is on a path toward massive clean energy generation, in such a scenario it is the commission’s foremost duty to formulate policies which are helpful in achieving the goals. Stakeholders are developing Rewa Solar Park in Madhya Pradesh, the state has plans of becoming a clean energy generating hub, taking away must-run status would have been detrimental to the cause.”

“To keep things in balance, we have allowed for scheduling,” added the MPERC official.

According to Mercom’s India Solar Project Tracker, Madhya Pradesh has an installed solar capacity of around 1.3 GW with ~1 GW of solar projects are under development, as of September 2017.

Image credit: Mercom India