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					</table>The <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Ministry of Power</a> has amended Electricity Rules to allow entities commissioning captive power projects or energy storage systems or a consumer, with a load of at least 25 MW for interstate transmission systems or 10 MW for intra-state transmission systems to be exempted from obtaining a license to establish, operate, or maintain a dedicated transmission line to connect to the grid.
However, this exemption is contingent upon the company, individual, or consumer adhering to the regulations, technical standards, guidelines, and procedures specified under the provisions of the Act.
The Ministry had first <a href="https://www.mercomindia.com/electricity-rules-remove-transmission-license-mandate" target="_blank" rel="noopener">proposed</a> the changes to the Electricity Rules in June 2023, seeking stakeholder comments.
The amendments are called Electricity (Amendment) Rules, 2024, and will be effective from January 10, 2024.
The Ministry also introduced other amendments simplifying the open access charges calculations and tariff approval process to reduce the gap between annual revenue requirement and estimated annual revenue.
Wheeling Charges
The wheeling charges for open access consumers will be calculated by dividing the sum of annual revenue requirement towards wheeling by the energy wheeled during the year.
Charges for using the STU network
The charges for using state transmission utility networks by the consumers availing short-term open access or Temporary- General Network Access (T-GNA), as the case may be, will not be more than 110% of the charges levied on consumers using state transmission utility networks on a long-term basis or GNA basis.
Additional Surcharge
The amendment clarified that an additional surcharge imposed on any open access consumer cannot exceed the distribution licensee&#8217;s per-unit fixed cost of power purchase.
If a person opts for GNA or open access, the surcharge will gradually decrease over the four years following the grant of access.
However, the surcharge does not apply to the extent that the open access consumer maintains their contract demand with the distribution licensee. Importantly, the surcharge is only applicable to open access consumers who are or have been consumers of the relevant distribution licensee.
Tariff Approval
The approved tariff should accurately reflect costs, ensuring that there is no substantial gap between the approved annual revenue requirement and the estimated annual revenue from the approved tariff, except in cases of natural calamities. If any such gap occurs, it should not exceed three percent of the approved annual revenue requirement.
In the event of such a gap, it, along with carrying costs at the base rate of late payment surcharge specified in the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, as amended, must be settled in a maximum of three equal yearly installments starting from the next financial year.
Moreover, any existing gap between the approved annual revenue requirement and estimated annual revenue from the approved tariff on the date of these rules, along with carrying costs at the base rate of late payment surcharge, must be resolved in a maximum of seven equal yearly installments starting from the next financial year.
The Ministry had earlier <a href="https://www.mercomindia.com/ministry-electricity-rules-allows-multiple-users-group-captive/" target="_blank" rel="noopener">amended</a> the Electricity Rules reverting to the previous regulation, which allowed collective captive users to hold the minimum ownership of 26% in a group captive open access project.
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Large Consumers and Captive Projects Exempted from Transmission License

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					</table>The <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Ministry of Power</a>, in recent amendments to the Electricity Rules, 2005, has reverted to the previous regulation, allowing collective captive users to hold the minimum ownership of 26% in a group captive open access project.
According to the notification, the words captive user in the sub-rule(1), clause (a), and sub-clause(i) of the rules will be replaced with captive users.
In July, the Ministry <a href="https://www.mercomindia.com/user-mandated-26-shareholding-group-captive-project" target="_blank" rel="noopener">issued</a> an amendment changing it to a captive user, mandating every captive power user, even in a group captive structure of open access, to hold a minimum ownership of 26%.
The decision upset many stakeholders who argued that the change would discourage the group captive open access model, which currently allows multiple consumers to participate.
The new amendment, referred to as the Electricity (Third Amendment) Rules, 2023, comes in after various stakeholders had raised the issue with the Ministry, which said it would issue a clarification soon.
The Ministry has also appointed the Central Electricity Authority to verify the captive status of projects supplying power to consumers located in different states to ensure uniformity in the process across all states.
Further, the Ministry has allowed the power consumption by the subsidiary or holding company of the captive user also to be considered as captive consumption by the captive user.
The group captive model of open access is the most preferred model by the commercial and industrial segment as it allows them not only to use green energy but also save big on energy bills.
According to the General Review Report 2023 by the CEA, renewable energy (wind and solar) <a href="https://www.mercomindia.com/captive-projects-3-25-total-electricity-generated-fy-2022" target="_blank" rel="noopener">accounted</a> for 9.07% of the total installed captive capacity as of March 31, 2022.
In July this year, Madhya Pradesh Electricity Regulatory Commission <a href="https://www.mercomindia.com/madhya-pradesh-verify-captive-power-project-compliance" target="_blank" rel="noopener">appointed</a> Madhya Pradesh Power Transmission Company as the designated authority to determine the captive status of the captive generating projects and captive users in the state.

Ministry Revises Electricity Rules, Allows Multiple Users Under Group Captive Model

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					</table>Here is a recap of important headlines from June 2023:
India <a href="https://www.mercomindia.com/solar-open-access-installations-surge-68-q1-2023" target="_blank" rel="noopener">added</a> 518 MW of solar open access in the first quarter of 2023, marking a remarkable increase of more than 68% compared to the 308 MW installed in the fourth quarter of 2022. However, on a year-over-year basis, the installations declined by 37%. The numbers were revealed in the recently published <a href="https://www.mercomindia.com/product/q1-2023-mercom-india-solar-open-access-market-report-518-mw-installed" target="_blank" rel="noopener">Q1 2023 Mercom India Solar Open Access Market Report</a>.
In the first quarter of 2023, 485 MW of rooftop solar capacity was <a href="https://www.mercomindia.com/india-installs-485-mw-of-rooftop-solar-6-4-yoy" target="_blank" rel="noopener">added</a>, up 0.4% compared to 483 MW in the fourth quarter of 2022. In a year-over-year comparison, installations were up 6.4%. The findings were published in Mercom India Research’s <a href="https://www.mercomindia.com/product/rooftop-solar-market-report-q1-2023" target="_blank" rel="noopener">Q1 2023 Mercom India Rooftop Solar Market Report</a>.
The average cost of large-scale solar projects in the first quarter of 2023 <a href="https://www.mercomindia.com/average-cost-large-scale-solar-down-first-time-11-quarters" target="_blank" rel="noopener">decreased</a> by 5% quarter-over-quarter for the first time in 11 quarters due to a drop in module prices. The findings were published in Mercom India Research’s <a href="https://www.mercomindia.com/product/q1-2023-india-solar-market-update" target="_blank" rel="noopener">Q1 2023 India Solar Market Quarterly Update</a>.
Investments in the Indian solar sector in the first quarter of 2023 <a href="https://www.mercomindia.com/investments-solar-sector-declined-171-yoy" target="_blank" rel="noopener">totaled</a> $1.03 billion (~₹85 billion), a 171% year-over-year decrease from $2.8 billion (~₹211 billion). Investments were down 37% quarter-over-quarter from $1.63 billion (~₹134 billion). The figures were revealed in Mercom India Research’s <a href="https://www.mercomindia.com/product/q1-2023-india-solar-market-update" target="_blank" rel="noopener">Q1 2023 India Solar Market Quarterly Update</a>.
The Ministry of New and Renewable Energy <a href="https://www.mercomindia.com/ministry-175-billion-program-green-hydrogen" target="_blank" rel="noopener">released</a> a framework document outlining incentive programs for the manufacturing of electrolyzers and the production of green hydrogen within the country, with a combined financial outlay of ₹174.9 billion (~$2.1 billion). The framework document outlines two components of the incentive programs. Component I focuses on providing electrolyzer manufacturing incentives, with a financial outlay of ₹44.4 billion (~$541.2 million), and Component II aims to support Green Hydrogen production, with a substantial outlay of ₹130.5 billion (~$1.6 billion). 
The World Bank Group’s Board of Executive Directors <a href="https://www.mercomindia.com/world-bank-loan-india-transition" target="_blank" rel="noopener">approved</a> $1.5 billion in financing to accelerate the development of low-carbon energy in India by scaling-up green hydrogen projects and promoting climate finance for clean energy investments. The funding operation titled First Low-Carbon Energy Programmatic Development Policy Operation is the first in the series of investments by the World Bank to support India’s energy transition through 2070.
The Ministry of Power <a href="https://www.mercomindia.com/electricity-rules-remove-transmission-license-mandate" target="_blank" rel="noopener">issued</a> the Draft Electricity (Amendment) Rules, 2023, to introduce changes to the requirement of transmission licenses for captive and bulk power consumers and capping the additional surcharge for open access consumers at 50% of the wheeling charges. The amendments are expected to enhance the efficiency and transparency of the electricity sector.
The Ministry of Power, in consultation with the Central Electricity Authority, <a href="https://www.mercomindia.com/government-guidelines-resource-adequacy-framework" target="_blank" rel="noopener">released</a> a set of guidelines to establish an institutional mechanism for resource adequacy, spanning from the national level down to the distribution companies. The guidelines are put in place to ensure the availability of resources at each level to meet the demand. 
The Department of Expenditure, Ministry of Finance, <a href="https://www.mercomindia.com/center-incentive-power-sector-reforms-fy24" target="_blank" rel="noopener">earmarked</a> ₹1.43 trillion (~$17.4 billion) as financial incentives in the form of additional borrowing permissions for states undertaking various reforms in the power sector during the financial year (FY) 2023-24. Based on the recommendations of the Ministry of Power, the Ministry of Finance granted permission for reforms undertaken in FY 2021-22 and FY 2022-23 by 12 state governments.
The World Bank’s Board of Executive Directors <a href="https://www.mercomindia.com/world-bank-loans-himachal-pradesh-renewables" target="_blank" rel="noopener">approved</a> a loan of $200 million to the Government of Himachal Pradesh to help the Indian state achieve its target of adding 10 GW of additional renewable energy capacity and introducing new reforms in its power sector. The loan provided under the World Bank’s Himachal Pradesh Power Sector Development Program will help the state government increase the share of renewables in its energy generation.
In a recent office memorandum, the Ministry of New and Renewable Energy <a href="https://www.mercomindia.com/mnre-targets-over-15000-phase-ii-of-biogas-program-for-fy24" target="_blank" rel="noopener">allotted</a> physical targets to the biogas program implementing agencies for establishing small biogas projects under the Biogas Program Phase II for the fiscal year 2023-24. The year’s target is 15,205 biogas plants, with an additional 1,165 sanitary toilets linked to biogas plants.
The Government of Andhra Pradesh <a href="https://www.mercomindia.com/andhra-pradesh-green-hydrogen-green-ammonia-policy" target="_blank" rel="noopener">notified</a> the Green Hydrogen and Green Ammonia Policy-2023, targeting a production capacity of 0.5 million tons per annum (MTPA) of green hydrogen and 2 MTPA of green ammonia over the next five years. The policy would also help create 12,000 jobs per MTPA of green hydrogen produced and promote the setting up of green hydrogen and green ammonia-related equipment manufacturing facilities.
Solar module manufacturer and EPC solutions provider Vikram Solar and renewable energy investors Phalanx Impact Partners and Das &amp; Co. <a href="https://www.mercomindia.com/vikram-solar-to-invest-solar-manufacturing-units-in-the-us" target="_blank" rel="noopener">announced</a> the formation of a joint venture called VSK Energy, which will invest up to $1.5 billion in developing vertically integrated solar manufacturing operations in the U.S.
The Ministry of Power <a href="https://www.mercomindia.com/rules-amended-bundling-renewables-thermal-hydropower" target="_blank" rel="noopener">amended</a> the program for bundling renewables and storage with thermal and hydropower projects to allow the setting up of renewable energy projects not co-located in the engineering, procurement, and construction (EPC) tendering mode or through joint ventures. The amendments to the ‘Flexibility in Generation and Scheduling of Thermal and Hydropower Projects through Bundling with Renewable Energy and Storage Power’ program were issued after the Ministry received several requests to relax certain provisions.
SafEarth, an India-based technology platform for renewable energy transition, <a href="https://www.mercomindia.com/renewable-energy-safearth-secures-%e2%82%b935-million-funding" target="_blank" rel="noopener">completed</a> a funding round of ₹35 million ($426,755) to support the company’s product development initiatives and expansion into new industrial belts across the country. Anthill Ventures, Third Derivative, and Mumbai Angels led the funding round.
The Ministry of New and Renewable Energy <a href="https://www.mercomindia.com/mnre-extends-solar-park-program-by-two-years" target="_blank" rel="noopener">extended</a> the timeline for the ‘Development of Solar Parks and Ultra Mega Solar Power Projects’ program to March 31, 2026 (FY 2026) from the earlier FY 2024. The extended timeline does not involve any financial implications.
Norway’s Climate Investment Fund, managed by Norfund and KLP, the largest pension company in Norway, through their joint venture KNI India, <a href="https://www.mercomindia.com/norfund-klp-invests-enel-greens-wind-project" target="_blank" rel="noopener">invested</a> approximately NOK 317 million (~$30 million) in equity capital and up to NOK 530 million (~$50 million) in loan guarantees for a 168 MW wind power project developed by Enel Green Power in Gujarat.
Bengaluru-based Nithin Sai Renewables, a renewable subsidiary of Nithin Sai Constructions, <a href="https://www.mercomindia.com/nithin-sai-renewables-solar-module-manufacturing" target="_blank" rel="noopener">announced</a> its plans to build an automated solar module manufacturing line with a capacity of 500 MW. The company has placed an order for the equipment with turnkey solar production lines provider Mondragon Assembly. The advanced line will be specifically designed to produce higher-wattage modules featuring larger cut cells.
Narmada Hydroelectric Development Corporation, a joint venture of NHPC and the Government of Madhya Pradesh, is set to <a href="https://www.mercomindia.com/nhdc-invest-%e2%82%b942-billion-develop-525-mw-pumped-storage" target="_blank" rel="noopener">construct</a> a 525 MW pumped storage project near Indira Sagar Dam, Khandwa, to help manage the state’s peak energy demand. The project will be developed using the existing Indira Sagar and Omkareshwar reservoirs and generate 1,226.93 million units of energy during peak hours.
Amp Energy India, an integrated renewable energy power producer, <a href="https://www.mercomindia.com/amp-energy-india-expand-renewable-portfolio" target="_blank" rel="noopener">secured</a> up to $250 million in funding. The financing round was led by the Sumitomo Mitsui Banking Corporation of Japan, the Intermediate Capital Group, and the Asian Infrastructure Investment Bank.
82Volt, an electric vehicle (EV) charging tech start-up, recently <a href="https://www.mercomindia.com/ev-charging-%e2%82%b950-million-in-seed-funding" target="_blank" rel="noopener">concluded</a> its seed funding round, raising an amount of ₹50 million (~$606,908) from angel investors. With the infusion of fresh capital from the seed funding round, the start-up aims to rapidly expand its installation capacity to 100 chargers within the next two months through its channel partners.
Gujarat-based power company Torrent Power <a href="https://www.mercomindia.com/torrent-power-6-billion-non-convertible-debentures" target="_blank" rel="noopener">raised</a> ₹6 billion (~$72.7 million) through the issuance of non-convertible debentures on a private placement basis. The company issued and allotted 60,000 Series 11 (series 11A- 11F) Secured, Rated, Listed, Taxable, Non-Cumulative, Redeemable, and Non-Convertible Debentures of ₹100,000 each (~$1,212).
Mumbai-based renewable energy company CleanMax Enviro Energy Solutions successfully <a href="https://www.mercomindia.com/cleanmax-360-million-funding-expand-ci-portfolio" target="_blank" rel="noopener">concluded</a> an equity fund raise of approximately $360 million from Brookfield Renewable, facilitated through the Brookfield Global Transition Fund. It will provide CleanMax with the necessary capital to pursue its ambitious growth plans to become a platform exceeding 5 GW within three to four years.

Month in a Minute: Top Headlines from Indian Renewable Sector in June 2023 

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					</table><a href="https://www.mercomindia.com/pfc-bids-evacuate-1-5-gw-renewable-power-maharashtra" target="_blank" rel="noopener">PFC Consulting invited bids to develop an interstate transmission system to evacuate 1,500 MW of power from renewable energy projects in Maharashtra’s Solapur special economic zone.</a> The project will be developed on a build, own, operate, and transfer basis. The last date to submit the bid online is August 28, 2023. Bids will be opened on the same day. Within ten days from the date of the issuance of the letter of intent, the selected bidder, on behalf of the transmission service provider, must furnish a contract performance guarantee of ₹150 million (~$1.83 million).
<a href="https://www.mercomindia.com/electricity-rules-remove-transmission-license-mandate" target="_blank" rel="noopener">The Ministry of Power issued the Draft Electricity (Amendment) Rules, 2023, to introduce changes to the requirement of transmission licenses for captive and bulk power consumers and capping the additional surcharge for open access consumers at 50% of the wheeling charges.</a> The amendments are expected to enhance the efficiency and transparency of the electricity sector. The draft proposal will be open for stakeholder comments till July 28, 2023.
<a href="https://www.mercomindia.com/tcil-empanelment-150-ev-charging-stations" target="_blank" rel="noopener">Telecommunications Consultants India invited bids for the empanelment of charging point operators to commission electric vehicle charging stations at various locations in the national capital region on a revenue-sharing model.</a> The select operator should oversee the charging stations’ operation and maintenance for one year. The work has been divided into two lots consisting of 50 and 100 charging stations, respectively. The last date to submit the bids is July 18, 2023. The bids will be opened the next day.
<a href="https://www.mercomindia.com/world-bank-loan-india-transition" target="_blank" rel="noopener">The World Bank Group’s Board of Executive Directors approved $1.5 billion in financing to accelerate the development of low-carbon energy in India by scaling-up green hydrogen projects and promoting climate finance for clean energy investments.</a> The funding operation titled First Low-Carbon Energy Programmatic Development Policy Operation is the first in the series of investments by the World Bank to support India’s energy transition through 2070.
<a href="https://www.mercomindia.com/energix-renewables-six-solar-projects-in-the-us" target="_blank" rel="noopener">Energix Renewables, a U.S.-headquartered independent power producer, closed two project financing transactions totaling $520 million with Santander Corporate &amp; Investment Banking (Santander CIB) and Morgan Stanley Renewables to develop six utility-scale solar projects in the U.S.</a> The financing deals involve a consortium led by Santander CIB, providing a construction and term loan facility of $260 million, while Morgan Stanley acts as a tax equity investor with a commitment of $260 million.
<a href="https://www.mercomindia.com/lack-reliable-financing-affects-cost-of-capital-renewables" target="_blank" rel="noopener">The International Renewable Energy Agency, in a recent report, revealed a method used to calculate the cost of capital for clean technologies to help understand the drivers of renewable costs.</a> The cost of capital is the minimum rate of return or profit a company must earn before generating value. It is a significant determinant of the total price to purchasers of electricity from renewable power generation technologies. The report notes that if assumptions used for the cost of capital are not accurate – over time, between countries or technologies – then the cost of electricity might be significantly misrepresented and result in poor policy making.

Daily News Wrap-Up: PFC’s Tender to Evacuate 1.5 GW of Renewable Power

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					</table>The <a href="http://www.powermin.gov.in" target="_blank" rel="noopener">Ministry of Power</a> has invited comments from the stakeholders on the draft Electricity (Rights of Consumers) Amendment Rules, 2023. The proposed rules seek to bring transparency and give more control to the consumers when dealing with power distribution companies.
The power ministry has sought comments from chief and principal secretaries of all states, power distribution companies, power transmission companies and power generators, industry associations, and the central ministries.
Stakeholders can submit their comments until April 14, 2023.
Meter reading
The rules require smart meters to be read remotely at least once a day and other pre-payment meters to be read by an authorized representative of the distribution licensee at least once every three months.
The draft also says consumers should be able to access data regarding their energy consumption through a website, mobile app, or SMS. Smart pre-payment meter users may also check their consumption and balance in real-time.
Maximum Demand
The amendment protects consumers from any penalty on the maximum demand recorded by the smart meter for the period before the installation date.
It adds that if the maximum demand recorded by the smart meter exceeds the sanctioned load in a month, the bill for that billing cycle will be calculated based on the actual recorded maximum demand.
The revision of the sanctioned load, if any, based on the actual recorded maximum demand must be done according to the rules.
Time of day tariff
The draft rules state that the time of day (ToD) tariff will be effective immediately after installing smart meters for specific categories of consumers.
For commercial and industrial (C&amp;I) consumers with a maximum demand of up to 10 kW, the ToD tariff will be effective by April 16, 2024. For other consumers, except for agricultural consumers, it will be effective by April 16, 2025.
The ToD tariff during peak periods of the day for C&amp;I consumers should not be less than 1.2 times the normal tariff, and for other consumers, it should not be less than 1.1 times the normal tariff.
The tariff for solar hours of the day must be at least 20% less than the normal tariff. The duration of peak hours should not be more than the solar hours notified by the state commission or state load despatch center.
The distribution licensee&#8217;s website must display the tariff for each category of consumers. Consumers must be notified of changes in the tariff, fuel surcharge, and other charges and a full billing cycle ahead of time through various modes of communication.
In October, the <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Ministry of Power</a> issued a draft proposal for amending the Electricity Act 2021 to ensure that distribution companies provide round-the-clock uninterrupted power supply to all consumers and prevent the need for diesel generators.
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Power Ministry Seeks Comments on Draft Consumers Rights Amendment

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					</table>The <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Ministry of Power</a> has amended the Electricity Rules providing guidelines to implement the uniform renewable energy tariff for the central pool of projects connected to interstate transmission systems (ISTS).
A uniform renewable energy tariff is expected to encourage distribution companies (DISCOM) to sign power purchase agreements (PPAs) and promote the development of the renewable energy sector. Currently, DISCOMs often delay entering PPAs or force developers to renegotiate tariffs due to discovered tariffs being higher or lower than previous PPAs.
The uniform tariff will also help catalyze the wind sector which is experiencing a slowdown due to low tariffs discovered in reverse auctions.
The implementation of the central pooling mechanism will necessitate the upgrade of transmission infrastructure to increase the capacity of transmission corridors, which will facilitate the development of more renewable energy ISTS projects.
Tariff calculation
The uniform renewable energy tariff will be determined by dividing the total amount to be paid under the power supply agreement for a given month by the total amount of electricity supplied.
However, intermediary procurers, which is likely to be Solar Energy Corporation of India (<a href="https://www.seci.co.in/" target="_blank" rel="noopener">SECI</a>), would be allowed to sell any unsold power to open access consumers at a price that is at least equal to the uniform renewable energy tariff. Any additional profits made from these sales above the uniform tariff must be adjusted for in the uniform renewable energy tariff for distribution licensees.
This could hint at the entry of SECI into the commercial and industrial (C&amp;I) segment, as the agency could don the role of both intermediary and implementing agency for central pooling.
During a panel discussion at Mercom India’s C&amp;I Clean Energy Meet in Ahmedabad, Ajay Kumar Sinha, Additional General Manager of SECI, <a href="https://mercomindia.com/mercoms-awareness-on-cost-savings-increasing-brand-value/" target="_blank" rel="noopener">said</a> that SECI had held discussions with large businesses to assess the C&amp;I market.
“C&amp;I consumers have relied mainly on private developers for their renewable needs. SECI’s entry into the segment underlines the government’s push to promote renewables,” Sinha had said. “Adopting clean energy for C&amp;I consumers might be a choice now but will soon become a compulsion due to its favorable economics for businesses.”
Contractual obligations
All contractual obligations like liquidated damages, penalties, extension charges, and dispute resolutions between power generators, intermediary procurers, and end procurers will be governed by the relevant bidding documents and will not affect the uniform renewable energy tariff.
Any changes to the tariff due to changes in the law will be reflected in the pooled tariff and will be in accordance with the relevant bidding documents.
Commission’s role
The uniform tariff will only apply to power procured by end procurers and will have no effect on the renewable energy tariff discovered through the tariff-based competitive bidding process which is paid to generators according to their PPAs.
An appropriate commission can adopt the tariff determined through the competitive bidding process carried out by intermediary procurers. This adopted tariff for one category of renewable energy power will be included in the respective category of the central pool, provided that an application has been made by the intermediary procurer or end procurer.
End procurers, except open access consumers, must obtain approval from the concerned State Commission to purchase electricity from a pool at the uniform renewable energy tariff established by these rules.
Bilateral scheduling between renewable energy generators and end procurers will be done directly according to the terms of their power supply agreements. Scheduling, accounting, and deviation settlements will be in accordance with the regulations of the appropriate commission.
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Renewable Energy Projects in Central Pool to Have Uniform Tariff for DISCOMs

The <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Ministry of Power</a> issued a gazette notification that distribution licensees must ensure 24/7 uninterrupted power supply to all the consumers residing in cities with 100,000 or more residents to prevent the need for polluting diesel generators.
The ministry notified the Electricity (Rights of Consumers) Amendment Rules, 2022, by exercising its powers under Section 176 of the Electricity Act, 2003. The amended rules introduce key additions and revisions to the Electricity (Rights of Consumer) Rules, 2020.
Accordingly, the State Commission must give the trajectory of the system average interruption frequency index and system average interruption duration index for such cities.
Diesel to cleaner technologies
According to the new sub-clause (6), consumers using diesel generators as essential backup power must attempt to shift to cleaner technology such as renewable energy with battery storage within five years from the date of commencement of these rules or as per the timelines given by the state commission for such replacement based on the reliability of supply in that city under the DISCOM jurisdiction.
Power supply reliability
Under the new sub-clause (4), the state commissions can consider the customer average interruption duration index, customer average interruption frequency index, and momentary average interruption frequency index as additional indicators of supply reliability. The minimum interruption time for calculating additional reliability indicators must be as specified by the state commissions. If the state commission does not specify the interruption time, three minutes will be considered interruption time for calculating the additional reliability indicators.
Charges to ensure reliable power supply
The new sub-clause (5) notifies that the state commissions must have an online mechanism to review distribution licensees&#8217; reliability indices. State commissions can consider a separate reliability charge for the distribution company if they require funds for investment in the infrastructure to ensure a reliable power supply to the consumers.
Temporary connections
The new sub-clause (7) details the process of granting temporary connections to the consumers for construction activities or any provisional usage. The clause adds that distribution licensees must simplify such processes. These connections must be given on priority and not later than 48 hours. The limit can be extended to seven days in case augmentation of the distribution system is required.
The temporary connection must be through a prepayment meter or consumer meters per Central Electricity Authority (Installation and Operation of Meters) Regulations.
Interruptions defined
The Amended Rules have new sub-clauses defining the customer average interruption duration index, customer average interruption frequency index, the momentary average frequency interruption frequency index, system average interruption duration index, and the system average interruption frequency index.
In October, the <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Ministry of Power</a> issued a draft proposal for amending the Electricity Act, 2021, to ensure that distribution companies provide round-the-clock uninterrupted power supply to all consumers and prevent the need for diesel generators.
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.

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