The Maharashtra Electricity Regulatory Commission (MERC) has rejected a petition filed by Arvind Cotsyn Private Limited regarding the unilateral reduction of open access contract demand (CD) and non-compliance of MERC order dated February 27, 2018, by the Maharashtra State Electricity Distribution Company Limited (MSEDCL).
Arvind Cotsyn India Limited has installed windmills in Satara, Dhule and Sangli districts of Maharashtra. The energy generated from the windmills is being wheeled via MSEDCL’s distribution system for 100 % self-use consumption. The installed wind capacity for self-consumption is 7,650 kW.
Through a letter dated October 29, 2018, MSEDCL had instructed the company to reduce its contracted demand from 7,650 kW to 3,646 kW in line with the MERC order. Then on January 1, 2019, Arvind Cotsyn Private Limited informed MSEDCL that it does not have any intention to reduce its open access contracted demand. In response, MSEDCL informed the company that its open access contracted demand had to be reduced as per the Roha Dyechem Case.
On January 6, 2019, the open access contracted demand was unilaterally reduced to the tune of 3,646 kW by MSEDCL. In the submissions made, Arvind Cotsyn India Limited stated that this act of MSEDCL deprived the generation of the left out 4,004 kW capacity resulting in loss of energy and enriching MSEDCL.
In return, MSEDCL submitted that it has issued open access permission up to the quantity that can safely flow through existing metering infrastructure. It added that 3,646 kW is over and above the contracted demand of Arvind Cotsyn India Limited.
After hearing both the parties, the MERC observed that there are no merits in the contentions of the petitioner regarding the unilateral reduction of contracted demand and allowing open access with the excess installed capacity as it was allowed previously.
The commission also noted that MSEDCL has taken a holistic view by balancing the interests of the common consumers (optimum power purchase planning) as well as the renewable energy generators (considering 10% banking is allowed).
Regarding the loss of units, the commission stated that the practice followed by MSEDCL of capping the generated units up to the allowable limits due to banking provisions considering the infirm nature is correct since the excessive generation from these wind generators beyond the scope of allowed banking can be detrimental to the grid.
With these observations, the state commission dismissed the petition.
In March 2019, the MERC also rejected a petition filed by Shree Cement requesting amendments to distribution open access regulations, 2016 and allowing the use of open access facility and banking of power from a co-located renewable energy power project simultaneously.
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.