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					</table><p>The <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Ministry of Power</a> has declared that the central pools for solar power and solar-wind hybrid power have begun operations from February 15, 2024. Any interstate transmission system (ISTS) connected solar and solar-wind hybrid capacity bid after this date will fall under their corresponding pools.</p>
<p>The operation of these pools will follow a first-in, first-out approach. This means that projects receiving their letter of award first will be included and sold first within their respective pools.</p>
<p>The Ministry has also proposed an amendment to shorten the duration of each central pool from five to three years. Stakeholders have until February 29, 2024, to provide feedback on this proposed amendment.</p>
<p>In October, the Grid Controller of India <a href="https://www.mercomindia.com/grid-india-procedure-uniform-renewable-energy-tariff/" target="_blank" rel="noopener">issued</a> the procedure to implement the uniform renewable energy tariff for the central pool of projects.</p>
<p>According to the procedure, each renewable energy source has been assigned an individual category of central pool:</p>
<ul>
<li>Solar power central pool</li>
<li>Wind power central pool</li>
<li>Hydropower central pool</li>
<li>Solar-wind hybrid central pool</li>
<li>Round-the-clock power (solar wind hybrid + storage) central pool</li>
<li>Peaking power (solar wind hybrid + storage) central pool</li>
<li>Firm and dispatchable renewable power</li>
<li>Any other new pool as specified by the Central Government</li>
</ul>
<p>There may be more than one category of central pool for solar-wind hybrid central pool, round-the-clock power (solar wind hybrid + storage) central pool, and peaking power (solar wind hybrid + storage) central pool depending upon the technology, and generation mix,  as decided by the government.</p>
<p>The procedure was issued as a follow-up to the announcement in August last year when the Ministry of Power <a href="https://www.mercomindia.com/ministry-proposes-renewable-central-pool-uniform-tariffs/" target="_blank" rel="noopener">proposed</a> establishing central pools of ISTS-connected renewable energy sources such as solar, wind, hybrid, and storage. Intermediary companies like NTPC, NHPC, SJVN, and SECI could use these pools to purchase power for distribution and retail supply to multiple states at a uniform tariff for each pool.</p>
<p>The Ministry emphasized that adopting a uniform renewable energy tariff incentivizes distribution companies (DISCOM) to engage in power purchase agreements (PPAs) and stimulate growth in the renewable energy sector.</p>
<p>A uniform tariff is expected to alleviate issues arising from DISCOMs delaying PPAs or starting renegotiations due to tariff discrepancies compared to previous PPAs.</p>
<p>Subscribe to our real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates </a>to ensure you never miss any critical updates from the renewable energy industry.</p>


Solar and Solar-Wind Hybrid Power Central Pools Commence Operations


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					</table><p>The government-owned renewable energy intermediary procurer Solar Energy Corporation of India (<a href="https://www.seci.co.in/" target="_blank" rel="noopener">SECI</a>) will soon <a href="https://mercomindia.com/seci-mulls-offering-round-the-clock-supply-to-ci-segment/" target="_blank" rel="noopener">enter</a> the market for delivering renewable energy solutions through open access to the commercial and industrial (C&amp;I) segment – an area that has been the exclusive domain of private developers, thus far.</p>
<p>While this development could benefit the consumers with lower tariffs and easier access to round-the-clock (RTC) power owing to SECI&#8217;s vast resources, the private developers are somewhat concerned that the market for their operations will shrink.</p>
<p>However, a senior executive from SECI said that the company is yet to develop a marketable model for the open access segment, but it would likely target only the large consumers. This would provide enough opportunities for the existing developers in this domain. SECI has not yet finalized the power demand threshold, which would determine its consumer base.</p>
<p>&#8220;A government entity entering the market will pose a challenge for private players. SECI will be purchasing power from a gigawatt-scale renewable energy pool, resulting in a highly competitive tariff that private open access developers may find difficult to match,&#8221; said a top executive of an open access solar company.</p>
<p>The executive at SECI said that the company is an intermediary – procures power from developers and sells to consumers &#8211; and not a developer and could engage the existing open access renewable developers for aggregating power supply.</p>
<p>The arrangement would ensure that SECI&#8217;s expertise in providing a solid payment guarantee system for the developers will lower the operational risk for the latter and bring down the power cost for the end consumers.</p>
<p>Recently, the <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Ministry of Power</a>, through amendments to the Electricity Rules, 2005, permitted government-owned intermediary procurers like SECI or NTPC Vidyut Vitaran Nigam (NVVN) to <a href="https://mercomindia.com/central-pool-uniform-tariff-for-discoms/" target="_blank" rel="noopener">sell</a> excess power from central pools to open access consumers.</p>
<p>But the power from the central pool would have to be sold at a uniform tariff – arrived at by averaging different bids – so it&#8217;s unlikely to be as low as the tariff at which SECI supplies power to distribution companies from its solar parks. &#8220;This could give the open access developers some leverage to compete in the sector,&#8221; another developer said.</p>
<p>SECI has said its intervention in the segment would make a difference for consumers seeking round-the-clock power. Its solar and wind projects and upcoming battery energy storage systems (BESS) would provide an advantage over other developers.</p>
<p>RTC power makes switching to renewables far more attractive for the C&amp;I entities as the problems intermittency associated with renewables are resolved. A combination of solar and wind projects ensures that developers can provide power even after the sun sets. The round-the-clock power supply is further bolstered when solar and wind are combined with BESS – an expensive proposition for individual private developers but an integral part of SECI&#8217;s offerings.</p>
<p>Mercom India conducts regular events across the country to bring the C&amp;I segment on the same platform as developers. The C&amp;I Clean Energy <a href="https://mercomindia.com/event/ci-clean-energy-meet-2023-bangalore-overview/" target="_blank" rel="noopener">Meets</a> spread awareness about the benefit of renewables among consumers while answering their queries on various practical aspects of renewable adoption.</p>
<p>Mercom India will also host its annual <a href="https://mercomindia.com/event/renewables-summit-2023/" target="_blank" rel="noopener">Renewable Summit 2023</a> in Delhi to bring together developers, manufacturers, investors, innovators, and other key decision-makers on one stage to discuss the sector&#8217;s growth.</p>


SECI’s Green Energy Open Access Foray Worries Private Developers 


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					</table><p>The Ministry of Power (<a href="https://powermin.gov.in/" target="_blank" rel="noopener">MoP</a>) has suggested creating a central pool of interstate transmission systems (ISTS)-connected renewable energy sources from which an intermediary company will procure power to be supplied to an entity that will undertake distribution and retail supply to more than one state.</p>
<p>The ministry has also proposed to make standalone energy storage systems (ESS) a delicensed activity at par with a generating company.</p>
<p>The proposals are part of the draft Electricity (Amendment) Rules, 2022, on which the ministry has invited stakeholders to share comments by September 11, 2022.</p>
<p><strong>Central pool</strong></p>
<p>The ministry has proposed that there will be a different central pool for each sector like solar, wind, hybrid, hydro, small hydropower, and power from any other renewable energy resource, including storage or their combination. The central pool will be constituted for five years.</p>
<p>There will be an intermediary procurer, a company that will purchase electricity from power generators and resell it to an end procurer. This licensed entity will undertake the distribution and retail supply of electricity.</p>
<p>Uniform tariffs will be computed monthly by an implementing agency for each category in the central pool. The intermediary procurer will sell power from renewable energy sources to all end procurers at pre-decided tariffs. The implementing agency will be a central agency, notified by the center from time to time to implement a uniform renewable energy tariff for the central pool.</p>
<p>The monthly tariff payable to power producers will be the total amount paid under the power sale agreement (PSA) multiplied by the total power scheduled in a month.</p>
<p><strong>Energy storage system</strong></p>
<p>Another proposal under the draft rules is the delicensing of standalone ESS, which will be considered part of the power system. The ESS will be accorded status based on its application area, i.e., generation, transmission, and distribution. The ESS can be developed, owned, leased, and/ or operated by a generation company, transmission licensee, distribution company, system operator, or a standalone ESS provider.</p>
<p>When an ESS is owned and operated by and co-located with a generating station, a transmission licensee, or a distribution licensee, it will have the same legal status as the owner. The developer of the ESS will have the option to sell or lease or rent out the storage space in whole or in part to any utility engaged in generation or transmission or distribution or to a Load Despatch Centre.</p>
<p><strong>Timely recovery of power purchase costs</strong></p>
<p>The draft rules propose that the appropriate commission specify a price adjustment formula for recovery of costs arising from the variation in the price of fuel or power purchase costs within 90 days of publication of these rules. The impact in the cost due to such variation will be automatically passed through in the consumer tariff every month. The automatic adjustments will be trued up on an annual basis by the appropriate commission.</p>
<p><strong>Resource adequacy</strong></p>
<p>The National Load Dispatch Centre (NLDC) and Regional Load Dispatch Centres (RLDCs) will carry out assessments of resource adequacy, for operational planning, at the national and regional levels, respectively, on an annual basis, per guidelines issued by the central government.</p>
<p>In December last year, MoP <a href="https://mercomindia.com/ministry-of-power-approves-23-new-ists-projects-for-seamless-power-transmission/" target="_blank" rel="noopener">approved</a> 23 new ISTS projects to augment the seamless transfer of power from power surplus regions to power-deficit regions.</p>
<p>Subscribe to our real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates </a>to ensure that you never miss any critical updates from the renewable energy industry.</p>


Power Ministry Proposes Renewable Energy Central Pool with Uniform Tariffs

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