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					</table>Consumers with a contracted or sanctioned load of 100 kW and above, including those combining multiple connections to reach 100 kW within the same electricity division of a power distribution company (DISCOM), can procure power through green energy open access (GEOA), according to <a href="https://www.tserc.gov.in/" target="_blank" rel="noopener">Telangana State Electricity Regulatory Commission</a> (Terms and Conditions of Open Access), Regulation, 2024.
The regulations align with the green energy open access regulations <a href="https://www.mercomindia.com/no-load-limit-energy-open-access-captive-consumers" target="_blank" rel="noopener">issued</a> by the Ministry of Power last June.
Categorization of Green Energy Open Access
GEOA consumers are categorized based on how long they use the intra-state transmission or distribution system, both within the same distribution system and within the state but in different distribution systems or different states.
Long-term open access refers to the permission to utilize the state&#8217;s transmission and distribution system for more than seven years but not exceeding 25 years.
Medium-term refers to the permission to utilize the state&#8217;s transmission and distribution system for over a month but not more than seven years.
Short-term refers to the permission to utilize the state&#8217;s transmission and distribution system for less than one month.
Procedure for grant of access
GEOA applicants must submit a complete application using the central portal. The application is forwarded to the State Nodal Agency (SNA) by the Central Nodal Agency for verification.
Captive consumers must submit a security deposit by April 30 each year in the form of an unconditional and irrevocable bank guarantee. This deposit should be equivalent to 51% of their captive consumption for one year. It serves as a payment security mechanism for estimated charges like cross subsidy surcharge, additional surcharge, and any other charges as decided by the Commission.
The application fee is ₹5,000 (~$60) for long-term and medium-term transactions and ₹1,000 (~$12) for short-term transactions.
Those seeking long-term transactions must commission their projects or units within 12 months from the agreement date to prevent corridor blocking.
Applications for medium-term and short-term GEOA for power projects or generating units that have not yet been commissioned must be submitted no earlier than two months before the expected commissioning date to avoid unnecessary blocking of transmission or distribution corridors.
Applicants for long-term and medium-term transactions must accompany their application with a ₹5,000 (~$60)/ MW bank guarantee, which is returned upon signing the wheeling agreement but encashed if the application is withdrawn before this.
If there is a significant change in the injection point location or power quantity (more than 10%), a new application must be submitted for the entire capacity. Relevant documents, fees, and a bank guarantee for additional capacity are required for long-term access. The applicant retains access to their original allotment if the network cannot accommodate the extra capacity.
If an application is rejected due to deficiencies, any fees and guarantees submitted are returned, and the applicant may reapply after addressing the issues. Until GEOA is granted, applicants cannot inject energy into the licensee&#8217;s network.
Energy injected before agreement submission incurs an average power purchase cost rate of 75% of the generic tariff charges. Failure to execute the agreement within the specified time cancels the granted GEOA.
Application details and status are made public on the SNA&#8217;s website.
Procedure for Applying for Day Ahead Transactions
The applicant must apply to the central portal for day-ahead GEOA transactions.
SNA will review applications received from the central agency before 1:00 PM on the day before scheduling day-ahead transactions. It will check for system congestion and notify applicants via email or fax by 3:00 PM on the same day, confirming approval if there is no existing PPA for the requested capacity under open access.
The applicant must pay a non-refundable processing fee of ₹1,000 (~$12) for each transaction. However, the open access will only be implemented if the applicant pays the specified charges outlined in these regulations and orders issued by the Commission before 5:00 PM on the day before scheduling for day-ahead transactions.
Consumption criteria
For units marked for captive use, their consumption is checked based on the net electricity generated by the power station. This means the total electricity produced minus any extra electricity used for auxiliary purposes.
The net electricity generated will be determined annually at the end of the year.
Verification criteria for various types of captive consumers will be as follows:
<ul>
<li>The electricity used for self-consumption should be at least 51% of the net electricity generated annually for single captive consumers, partnerships, and limited liability partnerships.</li>
<li>For associations of persons, the electricity consumed for captive use should be at least 51% of the net electricity generated annually. Each member&#8217;s share should match their ownership in the power project, with a permissible variation of 10%.</li>
<li>Members of a cooperative society must collectively consume not less than 51% of the net electricity generated annually.</li>
<li>Special purpose vehicles must consume not less than 51% of the net electricity generated annually.</li>
</ul>
Shareholding criteria
A single captive consumer must hold at least 26% of the equity share capital with voting rights throughout the year. A certificate from the company secretary is required to support the shareholding.
For partnership firms or limited liability partnerships, the partners&#8217; ownership in the captive project should be not less than 26% proprietary interest and control over the generating station or power project annually. They must have a certificate from the company secretary to support their shareholding.
In the case of associations of persons, the captive consumer should hold an aggregate of not less than 26% of the ownership or paid-up equity share capital with voting rights throughout the year. They must have a certificate from a registered chartered accountant to support their shareholding.
Members of cooperative societies should hold 26% of the ownership annually. They must have a certificate from the district registrar of the cooperative society to support their shareholding.
In the case of special purpose vehicles, the captive consumer must hold an aggregate of not less than 26% of the proportionate paid-up equity share capital with voting rights of the units identified for captive use. They must have a certificate from a registered chartered accountant to support their shareholding.
Solar and wind-based or mini-hydel open access generators of contracted capacity up to 5 MW shall not be required to provide a day-ahead wheeling schedule, and the actual electricity injected by them will be deemed to be the scheduled energy.
Open Access Charges
Charges
The Commission has set the following charges for green energy open access:
<ul>
<li>Transmission Charges</li>
<li>Wheeling Charges</li>
<li>Cross-subsidy Charges (If a user purchases green energy from a renewable energy-based generating plant, the charges won&#8217;t increase by more than 50% for twelve years from the plant&#8217;s operation start date. This cross-subsidy charges limit remains even if the user switches to different green energy sources during this period. If power is drawn from non-green open access sources within twelve years, the 50% cross-subsidy charges increase limit will not apply. Cross-subsidy charges don&#8217;t apply to power from Waste-to-Energy plants or when green energy is used for green hydrogen and ammonia production. Captive users supplying electricity from their own generating plants for self-use are exempt from cross-subsidy charges)</li>
<li>Additional Surcharges (Additional Surcharges will not apply to GEOA consumers if they pay fixed or demand charges. Additional Surcharges won&#8217;t apply if power comes from a Waste-to-Energy plant or if green energy is used for green hydrogen and ammonia production. AS also does not apply to electricity from offshore wind projects commissioned up to December 2032 for GEOA consumers. Additionally, Additional Surcharges don&#8217;t apply to open access consumers using their own captive power projects for power wheeling.</li>
<li>Scheduling and State Load Dispatch Center charges</li>
<li>Deviation and Reactive charges</li>
<li>Standby Charges (if applicable)</li>
</ul>
Banking 
Energy banking up to 30% of the total monthly consumption of electricity from DISCOM will be allowed.
The banking charges will be 8% of the energy banked by GEOA consumers with the DISCOM.
The banking period for energy will be one month, and any unused energy at the end of the month will expire. However, the GEOA consumer will receive renewable energy certificates for the unused energy. Energy credits will be adjusted based on the time slots designated by the Commission for tariff determination.
Energy banked during peak time slots can be used during both peak and off-peak times by paying banking charges, while energy banked during off-peak times can only be used during off-peak times.
If transmission and wheeling charges or losses were already applied when the energy was injected into the system, they will not be applied again when the energy is withdrawn.
Subscribe to Mercom&#8217;s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don&#8217;t miss any critical updates from the renewable industry.

Telangana Allows Green Open Access for Consumers with 100 kW Load

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					</table>Jharkhand State Electricity Regulatory Commission (<a href="https://jserc.org/https:/jserc.org/" target="_blank" rel="noopener">JSERC</a>) has issued Jharkhand State Electricity Regulatory Commission (Verification of Captive Generating Plants and Captive Consumers) Regulations, 2024.
The regulations aim to specify a methodology to verify the status of captive generating projects and captive consumers when consumers import power from their respective captive generators located either within the state or outside and the consequences of their not meeting the conditions.
Verification procedure 
Every year, the Commission will check if the captive power projects and their consumers meet the criteria set in these rules by looking at the data provided by the projects and consumers.
By May 15 every year, captive power projects and their consumers must give the Commission a sworn statement in a specific format. This statement should include how much electricity they generated and was used in the previous year, as well as who owns shares in the projects.
The Commission will ask for help from the Regional Load Dispatch Center (RLDC), State Load Dispatch Center (SLDC), and the power distribution companies (DISCOMs) to check if the projects and consumers qualify as captive consumers.
If the Commission does not get the data and documents by the deadlines, they will make decisions based on the information they have.
The Commission will inform the captive power projects and consumers, as well as the distribution companies, about their status by July 15 each year.
Consumption criteria 
For units marked for captive use, their consumption is checked based on the net electricity generated by the power station. This means the total electricity produced minus any extra electricity used for auxiliary purposes.
The net electricity generated will be determined annually at the end of the year.
Verification criteria for various types of captive consumers will be as follows:
<ul>
<li>The quantity extent of electricity used for self-consumption should be at least 51% of the net electricity generated in a year for single captive consumers, partnerships, and limited liability partnerships.</li>
<li>For associations of persons, the electricity consumed for captive use should be at least 51% of the net electricity generated annually. Each member&#8217;s share should match their ownership in the power project, with a permissible variation of 10%.</li>
<li>Members of a cooperative society must collectively consume not less than 51% of the net electricity generated on an annual basis.</li>
<li>Special purpose vehicles must consume at least 51% of the net electricity generated annually, distributed according to each shareholder&#8217;s ownership in the designated units for captive use.</li>
</ul>
Generation data assessment 
When captive power projects and its captive consumers are in the same place:
<ul>
<li>For projects: The net generation from the captive power project and consumption by the captive consumer is measured using a meter installed on the generation side.</li>
<li>For consumers: The electricity consumed is measured using a meter installed on the consumption side.</li>
</ul>
When captive power projects and its captive consumers are located within the state but not co-located:
<ul>
<li>For projects: The generation data is determined based on the actual injection from the captive power projects, as provided by the SLDC.</li>
<li>For consumers: The consumption data is either the corresponding consumption or the actual consumption, whichever is lower. This is based on the meter reading at the consumer interface with the grid provided by the SLDC and the DISCOM in whose area the consumers are located.</li>
</ul>
When the captive power projects and its captive consumers are located in different states:
<ul>
<li>For projects: The generation data is determined based on the actual injection from the CGP, as provided by the respective RLDC or SLDC.</li>
<li>For consumers: The consumption data is either the corresponding consumption or the actual consumption, whichever is lower. This is based on the meter reading at the consumer interface with the grid, provided by the concerned SLDC of the recipient states and the DISCOM in whose area the consumers are located.</li>
</ul>
Shareholding criteria 
A single captive consumer must hold at least 26% of the equity share capital with voting rights throughout the year. It must have a certificate from the company secretary to support the shareholding.
For partnership firms or limited liability partnerships, the partners’ ownership in the captive project should be not less than 26% proprietary interest and control over the generating station or power project on an annual basis. They must have a certificate from the company secretary to support their shareholding.
In the case of associations of persons, the captive consumer should hold an aggregate of not less than 26% of the ownership or paid-up equity share capital with voting rights throughout the year. They must have a certificate from a registered chartered accountant to support their shareholding.
For cooperative societies, members should collectively hold 26% of the ownership on an annual basis. They must have a certificate from the district registrar of cooperative society to support their shareholding.
In the case of special purpose vehicles, the captive consumer must hold an aggregate of not less than 26% of the proportionate paid-up equity share capital with voting rights of the units identified for captive use. They must have a certificate from a registered chartered accountant to support their shareholding.
Consequences of failure
Captive consumers must submit a security deposit by July 15 each year in the form of an unconditional and irrevocable bank guarantee. This deposit should be equivalent to 51% of their captive consumption for one year. It serves as a payment security mechanism for estimated charges like cross subsidy surcharge, additional surcharge, and any other charges as decided by the Commission.
The bank guarantee should have a term of 12 months and must be renewed or revised annually by May 31. The renewal or revision should be for an amount equivalent to 51% of the estimated captive consumption or after the completion of captive verification by the Commission, whichever comes first.
If the bank guarantee is not renewed or revised by May 31 before its expiry on July 15, the distribution licensee can invoke the bank guarantee towards cross-subsidy surcharge, additional surcharge, or any other applicable open access charges.
Additionally, if the bank guarantee is not renewed or revised by the specified deadline, it will be forfeited by the distribution licensee for the same purposes mentioned above.
There will be no exemption from the cross-subsidy surcharge and additional surcharge on the electricity consumed by other consumers who receive power from the captive power project but are not captive consumers.
If the captive power project or the captive consumer fails to meet the ownership or consumption criteria specified in the Electricity Rule 2005 and these regulations by the end of the financial year, they will lose their captive status for that year. This loss leads to the imposition of a cross-subsidy surcharge, additional surcharge, and other applicable charges on open access consumers, payable to the distribution company concerned.
In November, the Ministry of Power <a href="https://www.mercomindia.com/captive-status-power-projects/" target="_blank" rel="noopener">proposed</a> a draft procedure to verify the captive status of power-generating projects supplying to consumers located across multiple states, defining the ownership and consumption terms for captive power projects in the country.
Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.

Jharkhand Issues Procedure to Verify Captive Status of Power Projects

<a href="https://www.orbenergy.com/" target="_blank" rel="noopener">Orb Energy</a>, a solar energy solutions company, won the award for the &#8216;Best C&amp;I Project (Rooftop)&#8217; at the recently-held <a href="https://mercomindia.com/mercom-solar-conference-india-virtual-event-2021/overview/" target="_blank" rel="noopener">Mercom India Solar Summit 2021</a>.
There were seven award categories in the <a href="https://mercomindia.com/mercom-solar-conference-india-virtual-event-2021/agenda/" target="_blank" rel="noopener">Mercom India Solar Awards 2021</a>, and winners were chosen based on project innovation, challenges overcome, uniqueness, and impact on the community, economy, and the environment.
The Mercom India team sifted through a flood of nominations over weeks. Companies from across the world with projects developed solely in India were allowed to send in applications. Nominations were also accepted from participant and third-party vendors and suppliers. A panel of Mercom experts selected the winners.
Orb Energy&#8217;s 3 MW project installed on a single roof is one of the biggest single rooftop solar projects. It was installed for a client, Klene Paks Limited, engaged in the manufacture of woven bags in Karnataka.
K.Thyagaraju, Vice-President, Technical &amp; PV Projects, received the award.
<a href="https://mercomindia.com/wp-content/uploads/2021/04/Picture2.jpg"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-25921" src="https://mercomindia.com/wp-content/uploads/2021/04/Picture2.jpg" alt="" width="1379" height="776" srcset="https://cms.mercomindia.com/wp-content/uploads/2021/04/Picture2.jpg 1379w, https://cms.mercomindia.com/wp-content/uploads/2021/04/Picture2-300x169.jpg 300w, https://cms.mercomindia.com/wp-content/uploads/2021/04/Picture2-768x432.jpg 768w, https://cms.mercomindia.com/wp-content/uploads/2021/04/Picture2-650x366.jpg 650w, https://cms.mercomindia.com/wp-content/uploads/2021/04/Picture2-844x475.jpg 844w, https://cms.mercomindia.com/wp-content/uploads/2021/04/Picture2-624x351.jpg 624w, https://cms.mercomindia.com/wp-content/uploads/2021/04/Picture2-600x338.jpg 600w" sizes="(max-width: 1379px) 100vw, 1379px" /></a>
The project incorporated all safety measures to undertake quality maintenance needed to enable the client to derive optimum output from the plant. Its remote monitoring system helps the client keep a tab on the system&#8217;s performance remotely, leading to a substantial reduction in electricity bills.
The grid-connected photovoltaic system was completely designed, installed, and commissioned by Orb Energy within six months.
The project&#8217;s main challenge was the roof&#8217;s stability, which had to bear the weight of over 9,000 solar panels and structures weighing around 200 tons. After a detailed study of the roof&#8217;s design and its load-bearing beams, Orb&#8217;s installation team started installing the solar panels using the purlins effectively. Purlins are the key load bearers of the roof.
Since the client opted for captive consumption, the large amount of electricity generated from solar had to be regulated, especially during holidays when there was less load.  The system was designed to take care of 80% of the load consumption. The special controlling unit installed near the inverters reduced the output of energy generated from solar through the inverter, thereby avoiding excess power being fed to the grid.
<a href="https://mercomindia.com/wp-content/uploads/2021/04/Picture4.jpg"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-25922" src="https://mercomindia.com/wp-content/uploads/2021/04/Picture4.jpg" alt="" width="1379" height="776" srcset="https://cms.mercomindia.com/wp-content/uploads/2021/04/Picture4.jpg 1379w, https://cms.mercomindia.com/wp-content/uploads/2021/04/Picture4-300x169.jpg 300w, https://cms.mercomindia.com/wp-content/uploads/2021/04/Picture4-768x432.jpg 768w, https://cms.mercomindia.com/wp-content/uploads/2021/04/Picture4-650x366.jpg 650w, https://cms.mercomindia.com/wp-content/uploads/2021/04/Picture4-844x475.jpg 844w, https://cms.mercomindia.com/wp-content/uploads/2021/04/Picture4-624x351.jpg 624w, https://cms.mercomindia.com/wp-content/uploads/2021/04/Picture4-600x338.jpg 600w" sizes="(max-width: 1379px) 100vw, 1379px" /></a>
Catwalks or pathways were built for each array of solar modules for easy maintenance of solar modules. Plumbing points were designed and installed to run the water so that the service team can clean all the modules effectively to get maximum output.
<a href="http://www.trinasolar.com/" target="_blank" rel="noopener">Trina Solar</a> supplied the modules for the project. The inverters were supplied by <a href="http://www.deltaww.com/" target="_blank" rel="noopener">Delta</a>.
BR Gururaj, Vice-President, IT &amp; Communications, said that the award was a &#8216;ringing endorsement&#8217; of the project. &#8220;The recognition encourages companies to get more innovative and competitive,&#8221; he said, hoping that the Mercom awards would be a recurring event.
Orb Energy provides a range of solar energy solutions to residential, commercial, and industrial customers. It focuses particularly on the Small and Medium-sized Enterprises (SMEs) as they are a largely under-served market segment.
In January 2018, FMO, the Netherlands Development Finance Company, <a href="https://mercomindia.com/orb-energy-raises-15-million/" target="_blank" rel="noopener">provided</a> $4 million (~₹254 million) in equity funding to Orb Energy to expand its in-house finance facility of rooftop solar projects for SMEs in India and Kenya.
Image credit: Orb Energy

C&I Project (Rooftop) of the Year: Orb Energy’s Rooftop Solar Project in Karnataka

The Gujarat Electricity Regulatory Commission (<a href="http://demo.gercin.org/">GERC</a>) has invited public opinion on a draft paper discussing issues while determining tariff for procuring power from wind projects.
The commission has released the discussion paper for feedback to initiate the regulatory process for setting the wind power procurement tariff for the financial year. The last date for sending comments is February 25, 2020, while the public hearing has been scheduled for February 28, 2020, at Gandhinagar.
According to the draft, the current installed wind power capacity of the state (as of September 30, 2019) is around 6,174 MW.
In January 2020, the Commission discussed the tariff framework for the procurement of power by distribution licenses from WTGs and other commercial issues.
Key findings from the Discussion Paper:
The Commission proposes to determine the tariff for all prospective wind power projects based on the rates discovered through competitive bidding and discontinue the practice of setting the generic tariff for wind power projects.
The tariff for wind projects that do not qualify for competitive bidding will be the latest tariff discovered through competitive bidding by state-owned DISCOMs and adopted by the Commission.
Regarding transmission and wheeling charges for captive consumption, the Commission has proposed that the wheeling of electricity generated from wind energy generators to the desired location within the state should be allowed on the payment of transmission charges and losses, which applies to an open access consumer. This proposal is for the wheeling of power to the consumption site at 66 kV voltage level and above.
For the wheeling of power to a consumption site below 66 kV voltage level, the Commission proposes that if the injection of power is at 66 kV or above and the withdrawal is below 66 kV, then wheeling of electricity generated from wind projects to the locations within Gujarat should be allowed on payment of transmission charges and losses.
In case the wind power project owners wish to wheel electricity to more than one location, then in addition to the transmission and wheeling charges and losses, they will also have to pay ₹0.05 (~$0.0007)/kWh on energy fed into the grid to the DISCOM.
For third-party sale, the Commission proposes that apart from the payment of transmission and wheeling charges and losses of energy fed to the grid, wheeled energy at the recipient unit will be carried out in the 15-minute time block.  It also proposes a concession of 50% on cross-subsidy surcharge and additional surcharge.
In case of wind power projects availing open access for captive use or third party sale but not opting for renewable energy certificates (RECs), the surplus power after set-off will be purchased by the distribution licensee at the rate of ₹1.75 (~0.025)/ kWh, states the discussion paper.
As a promotional measure, the Commission also proposed to continue the banking facility for one billing cycle for captive wind projects wheeling electricity for its own use.
Recently, the GERC <a href="https://mercomindia.com/gujarat-commission-approves-tariff-wind-projects/">approved</a> a tariff of ₹2.80 ($0.039)/kWh for 202.6 MW of power from grid-connected wind power projects in Gujarat.
In December 2019, the Gujarat Electricity Regulatory Commission <a href="https://mercomindia.com/gerc-revise-tariff-energy-purchased-captive-wind-projects/">approved</a> a petition filed by Gujarat Urja Vikas Nigam Limited to determine tariffs to procure surplus power from wind projects set up for captive use or third-party sale availing open access in the state.
Image credit: GERC

Gujarat Proposes to Discontinue Setting Generic Tariff for Wind Projects

The Karnataka Electricity Regulatory Commission (<a href="http://www.karnataka.gov.in/kerc/Pages/home.aspx" target="_blank" rel="noopener">KERC</a>) <a href="https://mercomindia.com/karnataka-wheeling-charges-renewables/" target="_blank" rel="noopener">recently</a> levied 25 percent of the normal transmission charges as wheeling charges for open access consumers in the state.
The current wheeling charges being levied are five times more than the charges imposed in the state earlier. According to the KERC order passed in 2014, just five percent of the transmission charges were levied as wheeling charges in the state of Karnataka.
This decision to increase the wheeling charges in the state comes at a time when various states in the country are either reducing or nullifying it.
When contacted, a KERC official told Mercom “Yes, the wheeling charges have been increased. With the cost of wind and solar power reducing drastically, renewable energy sources can now compete with the conventional sources of energy. There was a need to increase the applicable charges, because for the past 10 years in Karnataka, the wheeling and banking charges have remained constant. In 2008, KERC had issued wheeling and banking charges and in the 2014 KERC order, the status of charges was maintained at the same level as 2008.”
The KERC official also said that most of the renewable energy rich states have moved from concessional charges to normal wheeling and banking charges. “We (KERC) have not increased banking charges. The banking charges at 2 percent in kind of the injected energy (which means no cash is paid to KERC, instead the company will inject the quantum of electricity to the grid, free of charge) will continue,” added the KERC official.
When asked how this will affect the pace of solar projects in the state, the KERC official said, “Earlier, for solar there were no banking or wheeling charge in Karnataka. Per our (KERC) previous order, all the solar power generators in the state achieving commercial operation dated between April 1, 2013 and March 31, 2018, and selling power to consumers within the state on open access or wheeling are exempted from payment of wheeling and banking charges and cross subsidy surcharge for a period of 10 years from the date of commissioning. Therefore, the wheeling charge (25 percent of transmission charges) and banking charge (2 percent) will now apply.”
The KERC official also said that even captive solar projects commissioned during the above-mentioned (April 2013 to March 2018) period were exempt from wheeling and banking charges, but now they will have to pay charges specified for captive consumption projects.
“Open access has had a good run in Karnataka and now we are seeing a pullback in subsidies. This was bound to happen considering solar is touted as cheaper than coal. Government agencies are not going to lose revenue opportunities and if one state announces such measures, other states tend to follow,” said Raj Prabhu, CEO of Mercom Capital Group.
In 2013, the applicable wheeling charges for high tension (HT) networks were 9.85 paise/unit and for low tension (LT) networks was 22.99 paise/unit.
KERC’s move follows a similar announcement made in December by regulators in Madhya Pradesh. In <a href="https://mercomindia.com/madhya-pradesh-must-run-status-solar-wind/" target="_blank" rel="noopener">December 2017</a>, the Madhya Pradesh Electricity Regulatory Commission (MPERC) had announced that wheeling charges, a cross subsidy surcharge, and an additional surcharge on the wheeling charges as decided by MPERC would be applicable to renewable energy generation from time to time.

Wheeling Charges in Karnataka Increase Five-Fold

India’s wind sector has been around for much longer than the solar sector with steady installations of about 1.5 – 2.5 GW per year. Cumulative wind installations have reached 32 GW and currently account for more than 50 percent of installed renewable energy capacity in India. After the National Solar Mission (NSM) was announced, solar stole wind’s thunder with exponential growth and supporting policies, quickly becoming cheaper than wind.
The recent introduction of reverse auctions in India’s wind energy sector is proving to be a much-needed catalyst for growth. Earlier, only private developers were developing projects to sell power, but now states are actively tendering wind projects to meet renewable purchase obligations (RPO) and generate clean, green power. With the advent of reverse auctions, wind farms are now being developed in coordination with state governments and other implementing agencies.
Up to March 31, 2004, according to Ministry of New and Renewable Energy (MNRE) data, the total installed wind capacity in India was just over 2.5 GW. From 2004 to 2015, these installations hovered between 1 and 2.5 GW annually with installations crossing 3 GW only twice in advance of subsidy cuts.
<a href="https://mercomindia.com/wp-content/uploads/2017/07/India_Wind_MNRE_Mercom.png"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-6708" src="https://mercomindia.com/wp-content/uploads/2017/07/India_Wind_MNRE_Mercom.png" alt="" width="733" height="351" srcset="https://cms.mercomindia.com/wp-content/uploads/2017/07/India_Wind_MNRE_Mercom.png 733w, https://cms.mercomindia.com/wp-content/uploads/2017/07/India_Wind_MNRE_Mercom-600x287.png 600w, https://cms.mercomindia.com/wp-content/uploads/2017/07/India_Wind_MNRE_Mercom-300x144.png 300w, https://cms.mercomindia.com/wp-content/uploads/2017/07/India_Wind_MNRE_Mercom-650x311.png 650w, https://cms.mercomindia.com/wp-content/uploads/2017/07/India_Wind_MNRE_Mercom-624x299.png 624w" sizes="(max-width: 733px) 100vw, 733px" /></a>
In 2016, the year when MNRE came up with a reverse auction in wind, capacity additions totaled over 5 GW.
Wind projects were previously developed largely by private players for captive consumption or for sale to the state; the process was not transparent and the sector grew slowly. From 2002 to 2016 a total of over 32 GW of wind capacity was added to the grid at a rate of less than 3 GW/year.
To achieve MNRE’s target of installing 60 GW of wind power by 2022, the entire sector needs to grow at a much faster pace and the reverse auction may just be the boost needed for that growth.
In 2016, the Solar Energy Corporation of India (SECI) carried out the <a href="https://mercomindia.com/seci-auctions-1000-mw-wind/" target="_blank" rel="noopener">first-ever wind auction</a> in India. The sector has benefitted immensely ever since:
<ul>
<li>Within six months of the first auction, another 2,500 MW of wind was tendered by state agencies.</li>
<li>Wind power tariffs have since gone down throughout the country.</li>
<li>The lowest wind tariff of Rs.3.46 (~$0.054)/kWh is on par with thermal power in some states.</li>
</ul>
<a href="https://mercomindia.com/wp-content/uploads/2017/07/Wind_tenders.png"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-6709" src="https://mercomindia.com/wp-content/uploads/2017/07/Wind_tenders.png" alt="" width="540" height="255" srcset="https://cms.mercomindia.com/wp-content/uploads/2017/07/Wind_tenders.png 540w, https://cms.mercomindia.com/wp-content/uploads/2017/07/Wind_tenders-300x142.png 300w" sizes="(max-width: 540px) 100vw, 540px" /></a>
What Developers are Saying:
The introduction of the reverse auction has spurred activity in the wind sector, making it lucrative again, stated an Inox Wind executive.
Prices have gone down, benefiting both consumers and wind project developers alike. This has put wind costs almost on par with thermal and provided a push to the sector, stated a Wind World India executive. The executive added, “In the next few tenders, wind might go lower than thermal.”
A Southern Wind Farms executive said, “More projects are being tendered due to reverse auction and this a good trend. The sector will grow at a faster pace compared to before.”
This will lead to maximum utilization of the country’s wind power potential, stated a ReGen Powertech executive. The MNRE first suggested removing of inter-state transmission charges, then came up with a reverse auction in wind and now the green energy corridor is being developed. “These show that the government is finally providing proper support to the sector,” commented the executive.
 What Government Officials Say:
An MNRE official told Mercom, due to the success of competitive bidding in wind, the generation-based incentive program for wind can be easily done away with and there will be a decrease in the accelerated depreciation rate for wind projects.
The General Manager (IPP) from Gujarat Urja Vikas Nigam Limited (GUVNL), told Mercom, “In the past, Gujarat used to buy wind power to fulfill its RPO, but now the recent wind auction conducted by the Solar Energy Corporation of India (SECI) &#8211; with wind tariffs falling as low as Rs.3.46 (~$0.051)/kWh &#8211; has changed the way the state views the wind sector. The tariff at which we are buying wind at present is much higher than the tariff quoted in the SECI auction. This led us to re-strategize and come up with the wind tender,” added the GM (IPP), GUVNL.
<a href="https://mercomindia.com/ppas-1050-mw-wind-projects-signed/" target="_blank" rel="noopener">Power Purchase Agreements (PPAs)</a> for the capacity tendered in the first-wind auction were signed between PTC India, a power trading solution provider, and developers. While addressing the gathering at the PPAs signing ceremony, Mr. Piyush Goyal, Minister for Power said, “The Ministry is doing everything necessary to remove uncertainty regarding PPAs, and an example is this auction where PPAs have been signed way ahead of project completion.” The reverse auction is showing positive signs for the sector and better days are to come soon for wind in India.
<blockquote>“Just two years ago, the wind sector was lagging with no growth and several wind project developers went into solar project development to diversify and tap into the growing solar market. Now, some of those companies may rethink their strategies as solar gets hypercompetitive and wind begins growing again,” said Raj Prabhu CEO of Mercom Capital Group.</blockquote>
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Image Credits: By Leaflet (Own work) [CC <a href="http://creativecommons.org/licenses/by-sa/3.0" target="_blank" rel="noopener">BY-SA 3.0</a>], via Wikimedia Commons
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With the Advent of Reverse Auctions Wind is a Player Again

The State Government of Mizoram has issued the Mizoram Solar Power Policy 2017. The policy is aimed at ensuring reliable power supply and a sustainable energy mix for the state. As per the policy, the state will develop 80 MW of solar projects (rooftop + ground mounted) to meet 10.5 percent renewable purchase obligation by FY 2021-22.
The policy has been released with immediate effect, according to a <a href="https://power.mizoram.gov.in/uploads/files/solar-power-policy-2017.pdf" target="_blank" rel="noopener noreferrer">government release</a>.
The policy encourages the use of solar power among consumers and flow of investment in to the solar sector in Mizoram.
Key points:
<ul>
<li>For grid-connected solar projects the individual owner or group can make third-party sale of power, sell it to distribution utilities, or utilize it for captive consumption.</li>
<li>All buildings in the state are eligible to set up grid-connected rooftop solar projects within the specified capacity (1 kW and above) for rooftop solar projects.</li>
<li>Net-meters will be installed so that consumers can avail direct benefits.</li>
<li>The state has incentivized off-grid solar and decentralized distributed generation systems.</li>
<li>Banking of 100 percent energy produced is allowed for captive and open access consumers.</li>
<li>All solar power projects in the state are exempt from Electricity Duty. The Electricity Duty has also been waived for manufacturing facilities and ancillary units of the solar power projects.</li>
<li>If a solar project is not utilizing the evacuation system of a distribution utility, a reduction in contract demand of up to 50 percent of installed project capacity is permissible by the distribution utility.</li>
<li>The minimum duration of power purchase agreements (PPAs) will be 10 years.</li>
<li>It has been mandated, the distribution utility that has entered into PPA with a project developer will provide letter of credit equivalent to two months’ expected payment as security.</li>
<li>The government will provide 100 percent refund of stamp duty paid upon purchase of land for solar project.</li>
</ul>
The Mizoram government has provided a host of incentives to drive solar development in the state. There are incentives and subsidies for off-grid solar components as well as grid-connected systems so the state government can leverage benefits from the National Solar Mission (NSM) and Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) to deliver on its over 9 GW solar generation potential.
To set up a microgrid of up to 10 kW an incentive of Rs.115/W is available. For a mini grid of 10 kW to 500 kW there’s an incentive of Rs.99/W, and a rooftop solar developer can receive 70 percent of the benchmark cost as incentive to develop a 1 kW to 500 kW.
To set up project in a solar park, a developer can receive an incentive of Rs.20lakh/MW and any unemployed person or farmer in Mizoram can receive an incentive of Rs.50lakh/MW.
The Mizoram Solar Power Policy 2017 is inclusive in its approach to attain the set solar target. By providing such large incentives to unemployed youth and farmers the government has taken a unique approach to solar development.

captive-consumption

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