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Karnataka Floats EPC Tender for 1.2 MW Solar Project

Himachal Regulator Allows DISCOM to Procure 550 MW Solar Power from SECI

Agri-Solar Solutions Provider GK Energy Files Papers for ₹5.01 Billion IPO

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					</table>The Karnataka Electricity Regulatory Commission (<a href="https://kerc.karnataka.gov.in/en" target="_blank" rel="noopener">KERC</a>) has ruled that a power generator needs to fulfill only the two conditions provided in the Electricity Rules, 2005, to attain the captive status &#8211; the shareholding pattern and minimum consumption.
The Commission noted that the consumers of Clean Wind Power’s 50 MW wind project satisfied these conditions by holding 32.90 % of the equity shares and consuming 100% of its total energy.
Clean Wind Power (Manvi) had filed a petition to declare its 50 MW wind power project as a captive power project for FY 2017-18, which allows the consumer to avoid the cross-subsidy surcharge.
Background
Clean Wind Power (Manvi), the petitioner, is a special purpose vehicle (SPV) of Hero Wind Energy and is a registered company under the Companies Act 2013. It owns and operates a 50 MW wind power project in Raichur, Karnataka.
The company sought to declare its 50 MW wind power project as a captive power project and challenged the action of the Chamundeshwari Electricity Supply Corporation (CESC) to impose a cross-subsidy surcharge as unlawful.
The wind power generator has 12 shareholders, out of which 11 are captive users who consume 100% of the electricity, and the one remaining shareholder is Hero Wind Energy.
The petitioner submitted that all the electricity supplied from the wind power project to its captive users during FY2017-18 should be exempted from payment of a cross-subsidy surcharge, as it had fulfilled the requirements of a captive power project as prescribed under the Electricity Rules 2005.
The wind power generator added that for FY 2017-18, the total generation from the wind power project was 99,740,724 units, and the total consumption by the captive users was 99,756,000. Thus, the captive users had consumed 100% of the energy generated during FY2017-18.
The petitioner also submitted a shareholding certificate certifying 32.90% shareholding of the captive users in the wind power project.
The wind power generator noted that it had fulfilled all the requirements of a captive generating project during FY 2017-18 and should be exempted from payment of the cross-subsidy surcharge.
The wind power generator contended that CESC had overlooked that each fiscal year has to be assessed separately for verification of captive status in terms of the requirements stipulated in the Electricity Rules, 2005, and the assessment has to be done at the end of each financial year.
The state distribution companies (DISCOMs) argued that the consumers of the petitioner were not consuming electricity in proportion to their shareholding pattern. Hence, as per the Electricity Rules 2005, even if one of the consumers was not consuming energy in proportion to their shareholding, then the entire energy generated should be treated as if it is a supply of electricity by a generating company and not by a captive generating company.
The Commission, in its earlier order, had <a href="https://www.mercomindia.com/kerc-denies-captive-status-wind-project" target="_blank" rel="noopener">dismissed</a> the request of the wind power generator to grant captive status to its project for FY 2017-18, as the Commission was unable to ascertain the shareholding pattern of the captive users at the time of the establishment of the generating unit.
Subsequently, the petitioner challenged the order before the APTEL.
APTEL, in its order, had partially set aside the judgment passed by the Commission and had said that there was no requirement for ascertaining the shareholding pattern of the entity claiming to be a captive user at the time of the establishment of the generating unit.
APTEL had set aside the order and had remanded it back to the Commission to take a fresh look at it.
Commission’s analysis 
The Commission noted that considering APTEL’s earlier orders, it took into account the shareholding pattern of the petitioner as on March 31, 2018, for the determination of the captive status, and as per the shareholding pattern on the day, captive consumers held 32.90% of the equity shares.
The Commission further added that the SPV needed to fulfill only two conditions regarding the shareholding pattern and the minimum consumption for the declaration of the captive status.
The state regulator noted that the wind power generator satisfied the requirement by holding 32.90% of the equity shares and consuming 100% of its total energy.
The Commission declared it a captive generating project for the financial year (FY) 2017-18.
Earlier, KERC had <a href="https://www.mercomindia.com/regulator-accords-captive-status-to-a-wind-project-and-asks-discom-to-refund-charges" target="_blank" rel="noopener">ruled</a> that the Green Infra Wind Power Generation-owned Harapanahalli Wind Power Project was a captive power project. The Commission had directed the Bangalore Electricity Supply Company to refund the amount received towards cross-subsidy surcharge, additional surcharge, and differential electricity tax, if any, within three months from the order date.
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Karnataka Regulator Grants Captive Status to 50 MW Wind Project

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					</table>TP Saurya Bandita, a <a href="https://www.tatapowerrenewables.com/" target="_blank" rel="noopener">Tata Power Renewable Energy </a>subsidiary, will build a 40 MW captive solar project for the industrial and medical gases producer <a href="https://inoxairproducts.com/" target="_blank" rel="noopener">Inox Air Products</a> to provide electricity to its air separation units in Dhule, Maharashtra.
The project will help INOX reduce its carbon footprint by 48,000 tons annually.
Commercial and Industrial units have been increasingly adopting captive or group captive modes of sourcing renewable energy through open access as it provides them cheaper power compared to the traditional suppliers, the state-run distribution companies. It also allows the companies to meet environmental, social, and governance goals.
Recently, Airtel&#8217;s subsidiary <a href="https://www.mercomindia.com/airtel-increases-captive-renewable-energy-project" target="_blank" rel="noopener">raised</a> its stake in a renewable developer&#8217;s special purpose vehicle to use the project as a captive facility. Regulations mandate that the procurer corporate entity must own at least 26% of the power producer for captive use.
India added 2.5 GW of open access solar in calendar year 2022, an increase of around 92% compared to the 1.3 GW installed in 2021, the highest ever annual installations, according to the report <a href="https://www.mercomindia.com/product/india-solar-open-access-market-report-q4-2022" target="_blank" rel="noopener">2022 Q4 &amp; Annual Mercom India Solar Open Access Market Report.</a>
&#8220;Running our operations sustainably and responsibly has always been a top priority at INOXAP. This is a significant step towards our long-term strategy to reduce our dependency on fossil fuels and lower our carbon footprint by 48,000 tons. We have always endeavored to live our vision through our business strategy and efforts to protect the environment and ensure a greener future, which has inspired us to make Green Industrial Gases. We look forward to making the most of this association and fetching maximum benefits for the environment and our stakeholders,&#8221; said Siddharth Jain, Managing Director of INOX Air Products.
Tata Renewable&#8217;s total renewable utility capacity is 6,503 MW, including 2,594 MW projects under various stages of implementation, and its operational capacity is 3,909 MW, which includes 2,981 MW solar and 928 MW wind. The company&#8217;s solar EPC portfolio is more than 11.5GW of ground-mount utility-scale, over 1.3 GW of rooftop and distributed ground-mounted systems, and over 95,000 solar water pumps.

Tata Power Renewable to Build 40 MW Captive Solar Project for Inox Air

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					</table>Indian Oil Corporation (<a href="https://iocl.com/" target="_blank" rel="noopener">IOCL</a>) has invited bids for engineering, procurement, and construction (EPC) of 1.485 MW of grid-connected captive solar power projects at its bottling plants in Uttar Pradesh.
The successful bidder will also have to take care of the comprehensive operation and maintenance of the projects for five years.
The scope of work includes the installation and commissioning of a 500 kW captive solar power project at the Kanpur bottling plant, a 300 kW captive solar power project at the Lucknow bottling plant, a 310 MW captive solar power project at the Gorakhpur bottling plant, a 275 kW captive solar power project at the Varanasi bottling plant, and a 100 kW captive solar power project at Trisundi bottling plant.
The projects must be completed within 15 months from the handing over of the site.
The last date to submit the bids online is October 6, 2022. Bids will be opened the following day.
Bidders are not required to pay any earnest money deposit to participate in the tender. The successful bidder must submit an amount equivalent to 3% of the work order value as a contract performance guarantee.
Bidders should have executed one similar work of value not less than ₹36.3 million (50% of the work order value), two similar works of value not less than ₹29.1 million each (40% of the work order value), or three works of value not less than ₹21.8 million each (30% of the work order value).
The annual turnover of bidders during any of the last three financial years should be at least 60% of the estimated value of work under consideration.
The efficiency of the modules should not be less than 16% under standard testing conditions, and the peak power rating of the modules should not be less than 300 Wp.
Recently, IOCL <a href="https://mercomindia.com/indian-oil-consultancy-2-5-mw-solar-project-madhya-pradesh/" target="_blank" rel="noopener">invited</a> bids from consultants for project management consultancy services to set up a 2.25 MW of grid-connected ground-mounted solar power project at its Liquefied Petroleum Gas (LPG) bottling plant in Jabalpur, Madhya Pradesh.
Earlier, IOCL had <a href="https://mercomindia.com/indian-oil-floats-empanelment-tender/" target="_blank" rel="noopener">invited</a> bids to empanel vendors to develop solar projects at its locations and retail outlets across India.
According to Mercom’s <a href="https://mercomindia.com/product/india-solar-project-tracker/" target="_blank" rel="noopener">India Solar Tender Tracker</a>, IOCL has floated tenders for 74 MW of solar projects to date.

Indian Oil Invites Bids for 1.5 MW of Captive Solar Projects in Uttar Pradesh

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					</table>The Haryana Electricity Regulatory Commission (<a href="https://herc.gov.in/" target="_blank" rel="noopener">HERC</a>) recently asked the Haryana distribution companies (DISCOMs) to calculate the percentage of self-consumption of a captive power generator after excluding generation and consumption figures from April to July 2020, when Covid-19 gripped India.
The Commission added that if the self-consumption worked out to 51% or above, the demand notice for ₹18.09 million (~$227,225) made by the DISCOMs should be set aside. Any amount deposited by the captive generator should be refunded in the next bill.
It also rejected the petitioner&#8217;s request to carry forward banked energy for FY 2019-20 and FY 2020-21 to FY 2021-22.
Orbit Resorts had filed a petition requesting the Commission to set aside the letter by the DISCOMs in which the captive status was denied, and an amount of ₹18.09 million (~$227,225) was raised. It had also requested the Commission to restore the captive status for FY 2020-21 and allow the carry forward of the excess units for FY 2019-20 and FY 2020-21 to FY 2021-22 on the grounds of a &#8216;force majeure&#8217; event caused by the Covid-19 pandemic.
Background  
Orbit Resorts is engaged in the hospitality business and operates two hotels, &#8216; The Oberoi Gurgaon&#8217; and &#8216;The Trident Gurgaon&#8217; in Gurugram, Haryana.
The petitioner has also set up a 7.5 MW captive solar power project at Sirsa. The petitioner executed the connectivity agreement on March 12, 2018, and was granted the intrastate long-term open access on March 29, 2019, and the banking agreement was executed on August 19, 2019.
Orbit Resorts submitted that its two hotels relying on heavy traffic of foreign guests came to a standstill for three months, even after the lifting of the pandemic-induced lockdown. Due to the pandemic, electricity demand stood reduced, and from April 2020 to March 2021, it could make captive use of only 32.55% of the total units produced.
The DISCOMs claimed back all the applicable charges, which the petitioner was exempted due to failure to establish the captive status. Consequently, a demand of ₹18.09 million (~$227,225) was raised to be reverse-charged for FY 2020-21.
The petitioner approached the Additional Chief Secretary-Power, Government of Haryana, highlighting the loss of its captive status and the illegal demand raised for ₹18.09 million by the DISCOMs. Orbit Resorts clarified that the hospitality industry was ordered to be shut for three months and then was allowed to operate with restrictions.
Commission&#8217;s analysis
The Commission observed that the petitioner had sought restoration of captive status and quashing the demand raised by the respondent on account of payment of applicable charges from which it was exempted being a captive power project. It also sought the rollover of banked power from FY 2019-20 and FY 2020-21 to FY 2021-22.
The Commission noted that the lockdown was followed by a staggered unlock period. Hotels gradually opened up with restrictions. International flights did not operate.
The Commission added that the power banked would not be carried over from one financial year to another as the credit for the banked power would lapse at the close of the relevant financial year. It rejected the petitioner&#8217;s claims to roll over the banked power.
The state regulator noted that if the 51% threshold criterion was met, the DISCOMs should withdraw the charges levied due to non-fulfillment of the captive status for the relevant period. It must be noted that the dispensation of 51% self-consumption, to be computed on an annual basis, had been provided to enable the captive consumer flexibility to even out its daily and monthly consumption to retain captive status.
It added that the percentage of self-consumption should be computed after excluding generation and consumption figures from April to July 2020. If self-consumption worked out to 51% or above, the demand notice of ₹18.09 million (~$227,225) should be set aside.
In May last year, HERC <a href="https://mercomindia.com/haryana-regulator-rejects-captive-generators-plea-to-adjust-banked-energy-period/" target="_blank" rel="noopener">rejected</a> a captive power generator&#8217;s request to adjust the banked energy for one year. It said the captive power generator should have provided the DISCOMs the day-ahead schedule according to the &#8216;Open Access Regulations, 2012.&#8217;
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 sector.

Captive Generator’s Plea to Carry Forward Banked Solar Energy Rejected

Indian Oil Corporation Limited (<a href="https://iocl.com/" target="_blank" rel="noopener">IOCL</a>) has invited bids for the engineering, procurement, and construction (EPC) of a 1.2 MW grid-connected captive solar project with a net metering facility at its LPG bottling plant at Sanand in the Ahmedabad district of Gujarat.
The successful bidder will also have to take care of the comprehensive operation and maintenance of the project for five years.
The project&#8217;s estimated value is ₹58.98 million (~$770,869).
The last date to submit the bids is May 27, 2022. Bids will be opened on May 30.
Bidders will have to submit a bid security declaration to participate in the bidding process.
Within 15 days from the date of issuance of the letter of award, the successful bidder should furnish a security deposit for 10% of the work order value in the form of a bank guarantee toward contract performance guarantee for the commissioning of the project&#8217;s full capacity.
Bidders should have completed three similar works, with each costing not less than ₹16.92 million (~$221,144), or two similar works with each costing not less than ₹22.55 million (~$294,729), or one similar work costing not less than ₹28.19 million (~$368,443) during the last five years.
The bidders&#8217; annual turnover during any of the last three financial years should be at least ₹33.83 million (~$442,158).
Bidders should use indigenous manufacturing facilities, construction expertise, and products of Indian origin to the extent possible.
The solar modules offered should not degrade more than 2.5% for the first year and not more than 0.7% from the second year of its rated power. During the first ten years and the entire life span of 25 years, the solar modules should not degrade more than 10% and 20% of their rated power, respectively.
The peak power rating of the solar modules should not be less than 330 Wp under standard test conditions. The efficiency of the modules should not be less than 16.5%, and the fill factor should be at least 0.75%.
The solar modules should perform satisfactorily in relative humidity up to 85% ± 5% with operating temperatures between -10°C &amp; +85°C and withstand wind speeds of 180 kmph.
Last October, IOCL <a href="https://mercomindia.com/indian-oil-1-mw-solar-project-its-hydrogen-facility-faridabad/" target="_blank" rel="noopener">invited</a> bids to install and commission a 1 MW grid-connected solar project for its hydrogen production and dispensing station for refueling hydrogen in Faridabad.
Earlier, IOCL had <a href="https://mercomindia.com/indian-oil-floats-empanelment-tender/" target="_blank" rel="noopener">invited</a> bids to empanel vendors to develop solar projects at its locations and retail outlets across India. The scope of work included the design, engineering, testing, supply, packing, transportation, storage, installation, and commissioning of the project.
According to Mercom&#8217;s <a href="https://mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener">India Solar Tender Tracker</a>, IOCL has so far floated tenders for 47 MW of solar projects.
&nbsp;
Image credit: Nikhil B, CC BY <a href="https://creativecommons.org/licenses/by/3.0" target="_blank" rel="noopener">3.0</a>, via Wikimedia Commons

Indian Oil Floats EPC Tender for a 1.2 MW Captive Solar Project in Gujarat

The Andhra Pradesh Electricity Regulatory Commission (<a href="https://aperc.gov.in/" target="_blank" rel="noopener">APERC</a>) recently ruled that a wind project developer was liable to pay inter-DISCOM (distribution company) transmission charges for 8.8 MW out of the total capacity of 25.6 MW up to October 15, 2020, when the amendment to long-term open access (LTOA) was approved.
Blyth Wind Park had filed a petition requesting the Commission to direct the Transmission Corporation of Andhra Pradesh (<a href="https://aptransco.co.in/" target="_blank" rel="noopener">APTRANSCO</a>) to levy inter-DISCOM transmission charges only for 8.8 MW capacity from April 1, 2020, to May 30, 2020, and 1 MW capacity for the period of May 30, 2020, to November 6, 2020.
Background 
Blyth Wind Energy owns and operates a captive wind power project of 25.6 MW capacity in Andhra Pradesh. The entire power generated from the captive power project is procured by captive users in the supply area of the Southern Power Distribution Company of Andhra Pradesh (<a href="https://www.apspdcl.in/index.jsp" target="_blank" rel="noopener">APSPDCL</a>) and the Andhra Pradesh Central Power Distribution Corporation Limited (<a href="https://apcpdcl.in/" target="_blank" rel="noopener">APCPDCL</a>).
APTRANSCO had entered into LTOA agreements with the wind developer on December 3, 2019, and November 6, 2020, for the transmission of electricity generated from the captive power project.
The 25.6 MW captive wind project in Andhra Pradesh was commissioned in four phases &#8211; 16 MW on September 29, 2014; 8 MW on January 2, 2015; 1 MW on April 17, 2015, and the balance 600 kW was commissioned on July 24, 2017.
The wind energy generator was first granted LTOA on November 29, 2019, to supply power to two of its consumers &#8211; SDV Steels with an allocation of 8.8 MW and 4.3 MW for Krishnapatnam Port Company.
Through a letter in April 2020, the developer had requested APTRANSCO to amend the original LTOA agreement for revised allocation and add new captive users.
The developer further said that by May 30, 2020, APTRANSCO should have communicated either that the LTOA sought could be allowed without further system strengthening or otherwise.
Subsequently, APTRANSCO executed the LTOA amendment agreement on November 6, 2020, with the developer, APSPDCL, and APCPDCL, after a delay of six months.
The developer said that it was liable to pay inter-DISCOM transmission charges only for 8.8 MW for the period from April 1, 2020, until May 30, 2020, i.e., 30 days from the date of closure of window, and for 1 MW from June 1, 2020, until November 6, 2020, i.e., the date of the amended LTOA agreement. The demand of APTRANSCO for the payment of inter-DISCOM transmission charges for 17.2 MW capacity was arbitrary and without any legal basis.
The wind energy generator further argued that if it were held liable to pay inter-DISCOM transmission charges for any capacity other than the revised capacities set out in the LTOA application, it would result in gross injustice and hardship.
Commission’s analysis
The Commission observed that the nodal agency should allow open access within 30 days from the window’s closure if it is determined that the LTOA sought can be allowed without further system strengthening. In cases where it cannot be allowed, the nodal agency should notify the applicant of the same within 30 days of the window’s closure.
The Commission noted that out of the total capacity of 25.6 MW, only 24 MW was commissioned by January 21, 2015, which preceded the date of February 13, 2015, when the new ‘Wind Power Policy 2015’ commenced. Thus, the petitioner fell outside the scope of the ‘Wind Power Policy 2015’ and consequently the amended Regulation of 2016.
Also, the state regulator added that the approval for LTOA was granted on October 15, 2020. However, the amended agreement was entered only on November 6, 2020.
“We do not find any justification for the levy of inter-DISCOM transmission charges beyond October 15, 2020. This means that the petitioner is liable to pay the inter-DISCOM transmission charges on the disputed capacity of 8.8 MW only until October 15, 2020, when the amendment to LTOA was approved,&#8221; the Commission added.
Recently, APERC, in order to simplify the short-term power procurement process, <a href="https://mercomindia.com/andhra-pradesh-short-term-procurement-regulations/" target="_blank" rel="noopener">issued</a> the &#8216;Terms and Conditions for Short-term Procurement and Sale of Power, Regulations, 2022.&#8217; The regulations will apply to the three DISCOMs of the state.
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Regulator Rules in Favor of Captive Wind Developer, Marks Down Transmission Charges

The Karnataka Electricity Regulatory Commission (<a href="https://karunadu.karnataka.gov.in/kerc/Pages/home.aspx" target="_blank" rel="noopener">KERC</a>) recently ruled that the 36 MW Harapanahahlli wind project was a captive power project, and 14 captive users procured power from the project for the financial year (FY) 2018-19.
The Commission also directed the Gulbarga Electricity Supply Company (<a href="https://gescom.karnataka.gov.in/english" target="_blank" rel="noopener">GESCOM</a>) to refund ₹4.92 million (~$65,511) to UltraTech Cement, ₹2.77 million (~$36,883) to Karanja Industries (HKHT-5), and ₹1.64 million (~$21,837) to Karanja Industries (KHT-6) collected towards cross-subsidy surcharge, additional surcharge, and the differential electricity tax within two months.
Green Infra Wind Power Generation, Karanja Industries (HKHT-5), Karanja Industries (HKT-6), and UltraTech Cement had filed a petition requesting the Commission to declare the Harapanahalli wind project as a captive power project. They had also requested the Commission to direct the distribution company (DISCOM) to return the amount collected towards cross-subsidy surcharge, additional surcharge, and electricity tax.
Background
Green Infra Wind Power Generation is a company that owns and operates four wind-based renewable power projects, including the 36 MW Harapanahalli power project. Power from the project was consumed by 14 captive users during FY 2018-19.
The petitioners argued that GESCOM had wrongfully levied a cross-subsidy surcharge, additional surcharge, and electricity tax on the captive consumers, even though the captive users fulfilled the requirements of a captive generating project.
Further, the petitioners added that the DISCOM had calculated the number of captive users as 23 for FY 2018-19, whereas the actual number was 14. Further, the correct equity share capital with voting rights held by the group captive consumers was 28.07%.
On August 01, 2016,  the Karnataka Power Transmission Corporation executed the wheeling and banking agreement with the captive generator and the DISCOMs, including GESCOM, within whose jurisdiction the captive users were situated.
GESCOM argued that by considering the data furnished by the petitioner, it was clear that the energy consumption by Ultratech Cement, Karanja Industries (HKT-5), and Karanja Industries (HKT-6) was not in proportion to their equity, and such variance exceeded the permissible limit of 10%. Thus, the petition was likely to be dismissed.
Commission’s analysis
The Commission said that as per the Electricity Rules, 2005, for a captive power project, 26% of the ownership should be held by the captive users, and the captive users should consume at least 51% of the electricity generated from the project in proportion to their shareholding in the power project.
The Commission observed that out of 3,518,000 total equity shares issued, 28.07% of total equity shares, i.e., 987,600 equity shares, were held by 14 consumers of green Infra Wind Power Generation.
“The percentage of shares held by the consumers is more than 26%, as mandated under Rule 3 of the Electricity Rules, 2005. Also, Karanja Industries and UltraTech Cement hold 10.94% and 12.15% equity shares out of the total 9,87,600 equity shares held by 14 consumers,” the Commission added.
Also, the Commission stated that the Harapanahalli captive project generated 90.6 million units during FY 2018-19, and the total energy wheeled by 14 consumers was 78.22 million units which accounted for 86.32% of the total energy generated.
Thus, the consumers had consumed more than 51% of the total energy generated by the 36 MW wind power project at Harapanahalli during FY 2018-19. Thus, the project can be termed as a captive power project.
Further, KERC directed GESCOM to refund the amount collected as cross-subsidy surcharge, additional surcharge, and electricity tax within two months.
Last October, KERC <a href="https://mercomindia.com/kerc-denies-captive-status-wind-project/" target="_blank" rel="noopener">rejected</a> a petition submitted by a wind power company seeking captive power project status for the financial year (FY) 2017-18.
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DISCOM Asked to Refund Charges After Commission Declares a 36 MW Wind Project As Captive

The Karnataka Electricity Regulatory Commission (<a href="https://karunadu.karnataka.gov.in/kerc/Pages/home.aspx" target="_blank" rel="noopener">KERC</a>), in a recent order, ruled that the Green Infra Wind Power Generation owned Harapanahalli Wind Power Plant is a captive power project.
The Commission directed the Bangalore Electricity Supply Company (<a href="https://bescom.karnataka.gov.in/english" target="_blank" rel="noopener">BESCOM</a>) to refund the amount received towards cross-subsidy surcharge, additional surcharge, and differential electricity tax, if any, within three months from the date of the order.
Green Infra Wind Power Generation and its consumers had filed a petition requesting the Commission to declare the Harapanahalli Wind Power Plant in Karnataka as a captive power project for FY 2017-18. It had also requested the Commission to formulate a mechanism to ascertain the captive status of the petitioner’s Harapanahalli Plant.
Background
In May 2018, the Ministry of Power had <a href="https://mercomindia.com/draft-amendments-for-captive-generation-projects/" target="_blank" rel="noopener">proposed</a> amendments to the guidelines related to captive power projects in India. As per the amended guidelines, for a project to be considered captive, a minimum of 26% of the project ownership should be of the captive user. Also, at least 51% of the power generated must be utilized for captive use.
Green Infra Power Generation has a 36 MW wind power plant at Harapanahalli, Karnataka. The generator operates four wind power plants, of which the Harpanahalli power project has been identified as a captive power project.
The wind generator, in its submission, said that captive users drawing power from the Harapanahalli project were holding 35.6% of the shares and were consuming nearly 99% of the power generated from the project.
The petitioner also added that BESCOM had wrongfully imposed a cross-subsidy surcharge and electricity tax upon the captive users of the Harapanahalli project.  Meanwhile, BESCOM, in its submission, said that the consumers were not procuring energy in proportion to their shareholding pattern and, therefore, could not be considered captive users.
According to the petitioner, BESCOM had indicated that two captive users, namely  Anjaneya Agrotech and Wadhawan Holdings, had not consumed electricity generated by the Harapanahalli project in proportion to their shareholding in FY 2017-18.
Commission’s analysis
The Commission observed that as per the Electricity Rules, 2005, for a captive power project, 26% of the ownership should be held by the captive users, and the captive users should consume at least 51% of the electricity generated from the project in proportion to their shareholding in the power project.
The Commission noted that to qualify for getting exemption from paying cross-subsidy surcharge, a power generating company must qualify as a captive power generating company under the Electricity Rules, 2005.
The state regulator stated that Green Infra Wind Power Generation is a company incorporated and registered with the registrar of companies. Since the Harapanahalli project does not have any PPA with any DISCOM, nor is it selling power to any third party, The company generated revenue solely from selling the power to its captive consumers in FY2017-18.
Further, all the consumers (except  Anjaneya Agrotech and Wadhawan Holdings) consumed excess energy compared to the shareholding in the power project.
The Commission noted that the Harapanahalli wind Power project owned by Green Infra Wind Power Generation and their consumers (except Anjaneya Agrotech and Wadhawan Holdings) were captive generators and consumers for FY 2017-18.
The Commission asked BESCOM to refund the amount received towards cross-subsidy surcharge, additional surcharge, and the differential electricity tax, if any, within three months from the date of the order.
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Regulator Accords Captive Status to a Wind Project and Asks DISCOM to Refund Charges

The West Bengal Electricity Regulatory Commission (<a href="http://www.wberc.gov.in/" target="_blank" rel="noopener noreferrer">WBERC</a>) has approved a power purchase agreement (PPA) for the purchase of surplus power from a waste gas-based generating project.
The PPA was signed between the West Bengal State Electricity Distribution Company Limited (<a href="https://www.wbsedcl.in/irj/go/km/docs/internet/new_website/Home.html" target="_blank" rel="noopener noreferrer">WBSEDCL</a>) and Ankit Metal &amp; Power Limited (<a href="https://www.ankitmetal.com/" target="_blank" rel="noopener noreferrer">AMPL</a>).
The 16 MW project is located at Chhatna in the Bankura district of West Bengal. The PPA will be valid for 15 years, and the tariff for the entire period has been set at ₹1.19 (~$0.016)/kWh.
Background
The West Bengal State Electricity Distribution Company Limited (WBSEDCL) had applied to WBERC on February 22, 2019, for the approval of the PPA signed with the developer.
Ankit Metal &amp; Power intended to sell the surplus power to WBSEDCL after meeting its auxiliary consumption and captive use of electricity at the factory premises. The amount of surplus energy to be purchased by WBSEDCL was slated to be 33 million units (MUs), with a variation of 20%.
In its submission, the state DISCOM  added that the financial impact for the purchase of 33 MUs of power would be ₹39.27 million (~$549,015) annually, considering a tariff of ₹1.19 (~$0.016)/kWh. The procurement of power was also to help the DISCOM in fulfilling the renewable purchase obligation (RPO).
From the quarterly RPO status submitted by WBSEDCL, it was observed that at the end of the second quarter of the financial year 2019-20, it had achieved a solar RPO of 0.47% against the target of 0.50% and the total RPO stood at 4.26% against the target of 8%. Therefore, it showed a considerable gap in fulfilling both solar and total RPO targets.
While going through the application for the PPA, the Commission noted that the overall purchase price proposed from the waste gas-based captive power project was ₹1.19 (~$0.016)/kWh which was well within the capped tariff of ₹3.34 (~$0.046)/kWh specified in the state’s regulations.
Previously, West Bengal <a href="https://mercomindia.com/west-bengal-ppa-12mw-captive/" target="_blank" rel="noopener noreferrer">approved</a> the PPA for a 12 MW waste gas-based power generation project in the state. The commission had received a request from WBSEDCL to approve the PPA it had entered with Rashmi Ispat Limited for the purchase of surplus power for 25 years.
To recover energy from waste and effluent generated from industries, India has <a href="https://mercomindia.com/india-has-set-up-waste-to-energy-projects-so-far/" target="_blank" rel="noopener noreferrer">set up</a> 186 waste-to-energy projects for the generation of biogas, bioCNG power with a cumulative capacity of 317.03 MW so far. Out of the 186 projects, five projects are based on municipality solid waste, thus generating a total capacity of 66.5 MW of energy. Meanwhile, 181 projects are agricultural, urban and industrial waste-based waste-to-energy projects. Out of this, 94 projects are biogas and bio compressed natural gas (CNG) off-grid purposes.

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