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					</table><p>The soiling of solar photovoltaic systems from dust and snow could lead to a loss of €4-7 ($4.3-7.6 billion) in 2023 which is equivalent to a 4-5% loss in energy production worldwide, a technical report by the International Energy Agency (<a href="https://www.iea.org/" target="_blank" rel="noopener">IEA</a>) said.</p>
<p>The report elaborated on the leading factors in efficiency losses due to soiling and proposed measures that can be employed during and after the installation of solar systems to minimize the impact of dust.</p>
<p>The report said that more PV modules are installed in high-insolation regions, such as China or India, which are also more exposed to soiling.</p>
<p>Further, the lower tariff in many areas does not provide any incentives for developers to spend capital on cleaning the solar modules.</p>
<p>“And, lastly, under identical soiling conditions, more efficient modules are subject to larger energy losses compared to less efficient PV modules,” the report said.</p>
<p>The IEA report identified that the extent and nature of soiling are highly variable and depend on various factors including the climate.</p>
<p>Moreover, soiling does not always occur homogeneously over the whole module surface or plant and tends to accumulate in the lower parts of modules.</p>
<p>“If soiling is not distributed uniformly, the short circuit current measurements may underestimate the actual impact of soiling on PV power,” the report said.</p>
<p>It added that mitigating the losses due to soiling can be classified into preventive and corrective measures.</p>
<p>Preventive measures fall into the responsibility of engineering, procurement, and construction, in terms of site and module selection, anti-soiling coating applications, and site adaption.</p>
<p>Corrective measures fall into the competence of operations and maintenance such as choosing the right cleaning technology.</p>
<p style="text-align: center;"><em><a href="https://mercomindia.com/wp-content/uploads/2023/01/Illustration-of-soiling-mitigation-technologies.png"><img decoding="async" loading="lazy" class="aligncenter wp-image-47709 size-full" src="https://mercomindia.com/wp-content/uploads/2023/01/Illustration-of-soiling-mitigation-technologies.png" alt="Illustration of soiling mitigation technologies" width="760" height="454" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/01/Illustration-of-soiling-mitigation-technologies.png 760w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/01/Illustration-of-soiling-mitigation-technologies-300x179.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/01/Illustration-of-soiling-mitigation-technologies-650x388.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/01/Illustration-of-soiling-mitigation-technologies-624x373.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/01/Illustration-of-soiling-mitigation-technologies-600x358.png 600w" sizes="(max-width: 760px) 100vw, 760px" /></a>Fig: Illustration of soiling mitigation technologies.</em></p>
<p style="text-align: center;"><em>Source: IEA</em></p>
<p>Under the preventive measures, site planning for the PV system becomes crucial. Knowledge about local meteorological conditions like main wind direction, rain frequencies, relative humidity, and dew occurrence will help in adapting systems to minimize soiling.</p>
<p>“For example, nearby dirt roads can be lined with vegetation to deflect dust gusts. Frameless modules may make it easier for soiling to be removed, and an optimized module design with bypass diodes can minimize the effect of partial shading by heterogenous soiling,” the report said.</p>
<p>Further, anti-soiling coating of various types such as hydrophobic, hydrophilic, or photocatalytic can help in cutting down soiling-induced efficiency losses.</p>
<p>Anti-soiling coating aid natural processes like rain and dew in cleaning the systems. However, the advantage is contingent on the type of coating most suitable for extant local conditions.</p>
<p>Additionally, experiments have shown that maneuvering the tilt angle of the PV modules depending on whether they are bifacial or monofacial can also reduce their ability to attract dust.</p>
<p>On the prevention of soiling, the study elaborated on various types of cleaning methods. The summary is the chart below:</p>
<p style="text-align: center;"><em><a href="https://mercomindia.com/wp-content/uploads/2023/01/Proposed-PV-cleaning-techniques-based-on-weather-conditions.png"><img decoding="async" loading="lazy" class="aligncenter wp-image-47711 size-full" src="https://mercomindia.com/wp-content/uploads/2023/01/Proposed-PV-cleaning-techniques-based-on-weather-conditions.png" alt="Proposed PV cleaning techniques based on weather conditions" width="737" height="359" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/01/Proposed-PV-cleaning-techniques-based-on-weather-conditions.png 737w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/01/Proposed-PV-cleaning-techniques-based-on-weather-conditions-300x146.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/01/Proposed-PV-cleaning-techniques-based-on-weather-conditions-650x317.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/01/Proposed-PV-cleaning-techniques-based-on-weather-conditions-624x304.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/01/Proposed-PV-cleaning-techniques-based-on-weather-conditions-600x292.png 600w" sizes="(max-width: 737px) 100vw, 737px" /></a>Fig: Proposed PV cleaning techniques based on weather conditions</em></p>
<p style="text-align: center;"><em>Source: IEA</em></p>
<p>Additionally, the report said that the solar power industry needs a more cost-efficient, fully automated, water-saving, and time-saving solution to clean dust and sand off PV panels.</p>
<p>It added that the Electrodynamic Cleaning System (EDS) is a promising technology that fits the bill for cleaning dust off solar panels, solar reflectors (mirrors), and glass surfaces, especially in arid regions.</p>
<p>The EDS consists of a contactless cleaning solution using an electrodynamic cleaning based on the charging of sand particles. Dust particles are evacuated from the module surface via traveling waves controlled by high voltage (in the order of kV) electric pulses applied in dedicated electrodes integrated below the front glass of the solar panel.</p>
<p>The market for robotic cleaning of solar modules has been growing in India as it has<a href="https://mercomindia.com/robotic-cleaning-maximize-energy-yield/" target="_blank" rel="noopener"> proved</a> to be effective in increasing yield and cutting O&amp;M costs.</p>
<p>In a recent interview, Nalin Kumar Sharma, the President of Ecoppia for the Asia-Middle East &amp; Pacific regions, said robotic cleaning of modules can <a href="https://mercomindia.com/video-interview-robotic-solar-module-cleaning/" target="_blank" rel="noopener">increase</a> generation by up to 5% a year.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/sumit-jha/" class="vcard author" rel="author"><span class="fn">Sumit Jha</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt"><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Picture2.jpg" width="50" /><strong style="text-decoration: underline">Sumit Jha,</strong> Assistant Managing Editor at Mercom India</div>
<div class="designboxt"><a href="https://mercomindia.com/author/sumit-jha/" target="_blank" rel="noopener">More articles from Sumit Jha.</a></div>
<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Picture2.jpg" width="102" height="102" /><a href="https://mercomindia.com/author/sumit-jha/" target="_blank" rel="noopener"><strong style="color: #00b451">Sumit Jha </strong></a>is the Assistant Managing Editor at Mercom India. Prior to Mercom, Sumit worked as a journalist for over a decade, covering the energy sector for Reuters, CNBC-TV18, Bloomberg TV India, and Financial Express, among others. Sumit holds a diploma in print journalism from the Indian Institute of Mass Communication, Delhi, and a Bachelor of Engineering (B.E) from Manipal Institute of Technology.<a href="https://mercomindia.com/author/sumit-jha/" rel="noopener noreferrer">More articles from Sumit Jha</a></div>
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Solar PV Soiling Likely to Cut 4-5% of Energy Production Worldwide in 2023

<p>The Central Electricity Regulatory Commission (<a href="https://cercind.gov.in/" target="_blank" rel="noopener">CERC</a>) has proposed amendments to the &#8216;Sharing of Interstate Transmission Charges and Losses) Regulations, 2020.&#8217;</p>
<p>Some of the important amendments are listed here.</p>
<p><strong>Raising bills</strong></p>
<p>The yearly transmission charges will be shared by drawee ISTS customers of the receiving region in proportion to their quantity of GNA. Previously, the yearly transmission charges were to be shared by drawee ISTS customers of the receiving region and designated ISTS customers with untied long-term access in the receiving region, in proportion to the quantity of LTA plus medium-term open access and untied LTA, respectively.</p>
<p><strong>GNA </strong></p>
<p>Per another important amendment, the &#8216;T-GNA rate (in ₹/MW/block) will be published for each billing month by the implementing agency, which will be calculated state-wise as: Transmission charges for GNA for entities located in the state, for the billing month, under the first bill X 1.10 / (number of days in a month X 96 X GNA quantity, in MW, for the corresponding billing period).</p>
<p>Earlier, the short-term open access rate (in paise/kWh) for each billing month was to be calculated as: Transmission charges of the state for the billing month/(7200 X the quantity, in MW, of long-term access plus medium-term open access of the state for the corresponding billing period).</p>
<p>The transmission charges for T-GNA will be payable by drawee entities located in the state, as per the last published T-GNA rate for the state. Per the previous clause, the transmission charges for short-term open access were to be paid by generating stations located in the state, as per the last published rate.</p>
<p><strong>Transmission charges in case of delay</strong></p>
<p>Another amendment states that when the commercial operation date of a connectivity grantee is delayed and the associated transmission system has achieved commercial operation, the connectivity grantee should pay yearly transmission charges corresponding to connectivity capacity which has not achieved commercial operation. Earlier, when the generating station&#8217;s operation was delayed and the associated transmission system had achieved commercial operation, it was required to pay transmission charges corresponding to the LTA granted to the generating station, which had not achieved commercial operation.</p>
<p>When only some of the transmission elements of the associated transmission system have achieved commercial operation before the operation of the associated transmission system, yearly transmission charges of such transmission elements will be included to determine the transmission charges of ISTS customers. Previously, if only some of the transmission elements achieved commercial operation and the generating station wanted part-operationalization of LTA, the central transmission utility could allow it. The yearly transmission charges were to be included for the determination of transmission charges of the ISTS customers.</p>
<p>Another amendment says that when connectivity is granted on existing margins and the commercial operation of such a grantee is delayed, it should, corresponding to the capacity delayed, pay transmission charges from the start date of connectivity at the rate of ₹3000 (~$38.37)/MW/month. Whereas the earlier clause noted that when long-term access is granted and the commercial operation date of the generating station is delayed, the generating station must pay transmission charges at 10% of the transmission charge per MW for the state where it is located, corresponding to the capacity that is delayed.</p>
<p>Also, when a transmission line has already been constructed by an ISTS licensee, the yearly transmission charges should be payable by the generating station to the ISTS licensee. Earlier, when a dedicated transmission line had already been constructed, the generating station&#8217;s yearly transmission charges were to be payable to the licensee from the commercial operation of the transmission line until the operationalization of the LTA of the generating station.</p>
<p>According to another amendment, regional entities generating stations drawing start-up power or drawing power during shutdown after the commercial operation or for renewable generating stations drawing power during non-generation hours should pay transmission charges for injection or drawal beyond its T-GNA at the transmission deviation rate. According to the clause before the amendment, generating stations drawing start-up power from ISTS had to pay transmission charges at the rate of the transmission deviation in the state where they were located.</p>
<p>CERC has stated that the implementing agency should, within 45 days of the notification of the amendments, publish the revised procedures for implementation of the provisions of this amendment after stakeholder consultation.</p>
<p>Last November, the Ministry of Power <a href="https://mercomindia.com/ists-charges-levied-solar-wind/" target="_blank" rel="noopener">announced</a> that ISTS charges would be levied on renewable energy projects, including solar, wind, pumped hydro storage, and projects with battery energy storage systems (BESS) commissioned after June 30, 2025.</p>
<p>In 2019, CERC <a href="https://mercomindia.com/cerc-details-mechanism-sharing-charges-losses-renewable-projects/" target="_blank" rel="noopener">issued</a> a draft regulation for sharing interstate transmission charges and losses.</p>
<p>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.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/rakesh-ranjan-parashar/" class="vcard author" rel="author"><span class="fn">Rakesh Ranjan</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Rakesh Ranjan,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener">More articles from Rakesh Ranjan.</a></p>
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<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="77" height="102" /><a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener"><strong style="color: #00b451">Rakesh Ranjan</strong></a> is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). <a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" rel="noopener noreferrer">More articles from Rakesh Ranjan.</a></p>
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CERC Proposes Amendments to Regulations on Sharing ISTS Charges and Losses

<p>Shapoorji Pallonji Group Company’s end-to-end solar engineering, procurement, and construction (EPC) solutions provider <a href="https://www.sterlingandwilsonsolar.com/" target="_blank" rel="noopener">Sterling and Wilson Solar</a> declared its financial results for the year ended March 31, 2021, reflecting record losses.</p>
<p>The company’s revenue from operations stood at ₹13.64 billion (~$183.65 million) in the fourth quarter (Q4) of the financial year 2021 (FY 2021), down 34% year-over-year (YoY) from ₹20.60 billion (~$277.32 million) in Q4 FY 2020 and up by 4% quarter-over-quarter (QoQ) from ₹13.11 billion (~$176.56 million) in Q3 2021.</p>
<p>The revenue for FY 2021 stood at ₹50.8 billion (682.18 million), down by 8.8% compared to the previous financial year, when the company earned ₹55.75 billion (~$748.65 million).</p>
<p>The company registered losses to the tune of ₹3.44 billion (~$46.23 million) in Q4 compared to profits of ₹224.5 million (~$3.2 million) earned in Q3 FY 2021. The company had registered profits of ₹1.28 billion (~$17.2 million) in Q4 FY 2020. The overall loss for the company in FY 2021 stood at ₹2.90 billion (~$38.98 million) compared to a profit of ₹3.04 billion (~$40.86 million) in FY 2020.</p>
<p>According to the company, the overall financial performance for FY 2021 was impacted due to one-off exceptional events in Q4FY21 comprising a prime subcontractor going bankrupt in Australia. In a BSE notification filed in May this year, the company <a href="https://mercomindia.com/covid-19-raises-project-sub-contracting-costs/" target="_blank" rel="noopener">stated</a> that it had to appoint alternate sub-contractors for the task. However, the service was procured at a higher quotation due to border restrictions and other effects of the ongoing Covid-19 pandemic.</p>
<p>Apart from this, the increase in prices of modules, commodities, and higher freight cost and provision for liquidated damages on account of delay due to COVID-19 severely affected the overall financial performance.</p>
<p>Amit Jain, Global CEO of Sterling and Wilson, said, “The prices of solar modules have seen an unprecedented increase over the past few months due to a significant increase in polysilicon. Prices of aluminum, copper, and steel have also risen along with freight costs. We expect the sector to continue to face some pressure in the near term due to rising solar module prices, increased commodity cost, and supply chain disruptions caused due to COVID-19 outbreak. However, we are working with our clients to mitigate these issues and find a win-win solution.”</p>
<p>The company claims to have robust order inflows of ₹79.36 billion (~$1.06 billion) for FY21, up 72% compared to the restated order book of ₹46.02 billion (~$ 618.7 million) for FY 2020.</p>
<p>The company reduced its term debt from ₹8.1 billion (~$108.9 million) to ₹740 million (~$9.95 million). The company’s expense also dropped from ₹19.61 billion (~$263.76 million) in FY 2020 to ₹18.16 billion (~$244.2 million) in the current financial year.</p>
<p>Earlier in April this year, Solar developer <a href="https://amplussolar.com/management" target="_blank" rel="noopener">Amplus Solar</a> had announced the <a href="https://mercomindia.com/amplus-acquires-rooftop-projects-sterling-wilson/" target="_blank" rel="noopener">acquisition</a> of 17 on-site operational solar projects from Sterling and Wilson Private Limited. Spread over Haryana, Punjab, Madhya Pradesh, Rajasthan, Maharashtra, Telangana, and Karnataka, these 17 projects totaling 7.2 MW have been supplying solar power to 13 leading industrial, commercial, and institutional customers.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/rahul-nair/" class="vcard author" rel="author"><span class="fn">Rahul Nair</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><p>Rahul is a staff reporter at Mercom India. Before entering the world of renewables, Rahul was head of the Gujarat bureau for The Quint. He has also worked for DNA Ahmedabad and Ahmedabad Mirror. Hailing from a banking and finance background, Rahul has also worked for JP Morgan Chase and State Bank of India. <a href="https://mercomindia.com/author/rahul-nair/" rel="noopener noreferrer">More articles from Rahul Nair.</a></p>
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Sterling and Wilson Solar Records ₹2.9 Billion Loss in FY2021

<p>The Ministry of Power (<a href="https://powermin.nic.in/" target="_blank" rel="noopener noreferrer">MoP</a>) has waived interstate transmission system (ISTS) charges and losses on all solar and wind projects commissioned before June 30, 2023.</p>
<p>This would apply to solar, wind, and hybrid projects with or without storage. The ISTS charges would be waived for 25 years from their date of commissioning for the transmission as well as sale to entities with renewable purchase obligations (RPO).</p>
<p>The waiver would apply to solar projects commissioned under the second phase of the Ministry of New and Renewable Energy’s (MNRE) Central Public Sector Undertaking (CPSU) Program and also for solar projects commissioned under SECI’s manufacturing-linked solar tender which was <a href="https://mercomindia.com/seci-solar-tender-6gw-manufacture-2gw/" target="_blank" rel="noopener noreferrer">reissued</a> in June 2019.</p>
<p><strong>Background: </strong></p>
<p>In November 2019, the Ministry of Power had <a href="https://mercomindia.com/no-ists-charges-solar-wind-december-2022/" target="_blank" rel="noopener noreferrer">announced</a> that the ISTS charges and losses on the transmission of electricity generated from solar and wind projects would be waived off as long as they are commissioned before December 31, 2022. This deadline was revised from March 31, 2022, set previously.</p>
<p>In June, Union Power Minister, R.K. Singh, <a href="https://mercomindia.com/rk-singh-extension-waiver-solar-wind-projects/" target="_blank" rel="noopener noreferrer">suggested</a> the government was likely to consider extending the interstate transmission system charges for renewable projects by at least six months.</p>
<p>The National Solar Energy Federation of India (<a href="https://www.nsefi.in/" target="_blank" rel="noopener noreferrer">NSEFI</a>) had also asked the Ministry of New and Renewable Energy to extend the waiver of ISTS charges and losses for renewable energy projects.</p>
<p>The objective behind the waiver of inter-state transmission charges and losses was to encourage wind and solar energy capacity in the country by reducing the cost of generation, to achieve the country’s target of achieving 175 GW of renewable energy capacity by December 31, 2022.</p>
<p>Mercom recently spoke to industry stakeholders who unanimously <a href="https://mercomindia.com/ists-waiver-solar-stuck-covid-19/" target="_blank" rel="noopener noreferrer">agreed</a> that the industry needs a longer deadline extension for the ISTS charges and losses waiver to give them some breathing room to get their projects back on track following the havoc caused by the pandemic.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/nithin-thomas-prasad/" class="vcard author" rel="author"><span class="fn">Nithin Thomas</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Nithin-2-1.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Nithin Thomas,</strong> Staff reporter at Mercom India<br />
<a href="https://www.mercomindia.com/author/nithin-thomas-prasad/" target="_blank" rel="noopener">More articles from Nithin Thomas.</a></p>
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<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Nithin-2-1.jpg" width="102" height="102" /><a href="https://www.mercomindia.com/author/nithin-thomas-prasad/" rel="noopener">Nithin Thomas</a> is a staff reporter at Mercom India. Previously with Reuters News, he has covered oil, metals and agricultural commodity markets across global markets. He has also covered refinery and pipeline explosions, oil and gas leaks, Atlantic region hurricane developments, and other natural disasters. Nithin holds a Masters Degree in Applied Economics from Christ University, Bangalore and a Bachelor&#8217;s Degree in Commerce from Loyola College, Chennai.<a href="https://www.mercomindia.com/author/nithin-thomas-prasad/" rel="noopener">More articles from Nithin Thomas Prasad</a></div>
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No ISTS Charges on Solar and Wind Projects Commissioned Before June 30, 2023

<p>The Union Minister of Power, R.K. Singh, has sought for the <a href="https://fincomindia.nic.in/" target="_blank" rel="noopener noreferrer">Finance Commission’s</a> support to revamp the Indian power sector at the state level and has asked for ₹3 trillion (~$40.05 billion) over the next five years to help achieve this goal.</p>
<p>Singh said that the Ministry of Power (<a href="https://powermin.nic.in/" target="_blank" rel="noopener noreferrer">MoP</a>) is currently transforming its old programs into newer ones that primarily aim to focus on steps for reduction of losses, separate feeders for agriculture, and smart prepaid meters, in light of the poor financial <a href="https://mercomindia.com/bailing-out-power-discoms-every-crisis/" target="_blank" rel="noopener noreferrer">performance</a> of distribution companies (DISCOMs).</p>
<p>The reforms would include a new tariff policy, which includes “path-breaking reforms in the power sector” and are intended to help DISCOMs get out of their current predicament, said Singh in a meeting between the members of the Finance Commission and Power Ministry officials. The meeting was held to discuss reforms in the power sector at the state level.</p>
<p>The minister stated that the current losses being borne by DISCOMs are a result of a disconnect in the structures of the power system between decision making by the state governments and their financial consequences.</p>
<p>He highlighted the need for state governments also to be held accountable for the financial health of state-owned DISCOMS. To achieve this, the borrowing limits of the state governments under the Fiscal Responsibility and Budget Management (FRBM) Act, 2003, need to be tweaked to take these liabilities into account to ensure financial transparency, Singh added, noting that this would bring about financial and managerial responsibility from state governments.</p>
<p>The union minister cited the fact that states have reduced their aggregate technical and commercial (AT&amp;C) losses and the difference between the average cost of supply and average realizable revenue, thanks to the Ujwal DISCOM Assurance Yojana (UDAY) in 2016-17. However, he stated that the progress would not be sustainable unless systemic issues in the power sector are suitably addressed.</p>
<p>In March, R.K. Singh <a href="https://mercomindia.com/renewable-sector-three-years-rk-singh/" target="_blank" rel="noopener noreferrer">announced</a> that based on the standard capital cost per MW, an investment of around ₹1.34 trillion (~$18 billion) is estimated to have been made in the renewable energy sector during the last three years from 2017-18 to 2019-20 up to January 2020.</p>
<p>The Government of India has <a href="https://mercomindia.com/government-ailing-power-discoms-coronavirus/" target="_blank" rel="noopener noreferrer">set aside</a> funds to the tune of ₹900 billion (~$11.94 billion) to help DISCOMs get back on their feet amid the ongoing coronavirus crisis.</p>
<p>Recently, Mercom analyzed how bailing out DISCOMs in every crisis is not the right way to address the problematic areas of the power sector. Read the in-depth report <a href="https://mercomindia.com/bailing-out-power-discoms-every-crisis/" target="_blank" rel="noopener noreferrer">here</a>.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/nithin-thomas-prasad/" class="vcard author" rel="author"><span class="fn">Nithin Thomas</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Nithin-2-1.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Nithin Thomas,</strong> Staff reporter at Mercom India<br />
<a href="https://www.mercomindia.com/author/nithin-thomas-prasad/" target="_blank" rel="noopener">More articles from Nithin Thomas.</a></p>
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<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Nithin-2-1.jpg" width="102" height="102" /><a href="https://www.mercomindia.com/author/nithin-thomas-prasad/" rel="noopener">Nithin Thomas</a> is a staff reporter at Mercom India. Previously with Reuters News, he has covered oil, metals and agricultural commodity markets across global markets. He has also covered refinery and pipeline explosions, oil and gas leaks, Atlantic region hurricane developments, and other natural disasters. Nithin holds a Masters Degree in Applied Economics from Christ University, Bangalore and a Bachelor&#8217;s Degree in Commerce from Loyola College, Chennai.<a href="https://www.mercomindia.com/author/nithin-thomas-prasad/" rel="noopener">More articles from Nithin Thomas Prasad</a></div>
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R.K. Singh Seeks ₹3 Trillion to Revamp Power Sector and DISCOMs Over the Next 5 Years

<p>In a recent order, the Central Electricity Regulatory Commission (<a href="http://www.cercind.gov.in/" target="_blank" rel="noopener noreferrer">CERC</a>) has dismissed the petition filed by <a href="https://renewpower.in/" target="_blank" rel="noopener noreferrer">ReNew Solar Power Private Limited</a> for the exemption of relinquishment charges.</p>
<p>The Commission said that there would be no exemption from the payment of relinquishment charges either for a conventional or a renewable energy generator. Relinquishment charges are those that a power generating company has to pay if it decides to surrender its transmission network for various reasons like a lack of power demand.</p>
<p>The order added that the calculation of relinquishment charges depends on various factors such as the notice period, load flow scenario, and applicants for the grant of long-term access (LTA) against the relinquished capacity in the same corridor.</p>
<p>In this case, the Commission has observed that unless the petitioner (ReNew Power) relinquishes the LTA, it would not be possible for Power Grid Corporation of India (PGCIL) to calculate such charges. The CERC added that it had provided a detailed methodology for carrying out the calculations, and ReNew Power can make an estimate based on the methodology and available information.</p>
<p><strong>Background</strong></p>
<p>ReNew Solar Power Private Limited had filed a petition before the CERC requesting the Commission to direct the Power Grid Corporation of India Limited to pre-disclose the relinquishment charges payable before accepting its formal application seeking the relinquishment of open access rights.</p>
<p>ReNew was approved for LTA for its 250 MW solar project at Bikaner on a target region basis (Western Region).</p>
<p>In February 2019, the solar developer also executed a long-term access agreement with PGCIL. The petitioner had sought a solution for the issues relating to the relinquishment charges in the case of renewable projects.</p>
<p>The Commission directed PGCIL to conduct load flow studies to calculate if there’s any stranded capacity created when an entity relinquishes its LTA and then calculate the charges.</p>
<p>The connectivity regulations do not provide any basis for the calculation of compensation to be paid by a long-term open access customer to avail the right to relinquish open access.</p>
<p>According to the petition, the input data for calculating the stranded capacity and relinquishment charges was not available to ReNew Power.</p>
<p>PGCIL and Power system Operation Corporation Limited (POSOCO) are not only the two companies that store such data, but they also store information required for calculating stranded capacity and relinquishment charges.</p>
<p>To bring transparency in the process, the Commission, in its earlier order, had directed the PGCIL to provide information and documents that were necessary for verifying relinquishment charges to power developers.</p>
<p>The Commission also held that the relinquishment charges would be like a compensation, which will be payable to PGCIL for the infrastructure built for the developers.</p>
<p>Ever since the cost of transmission infrastructure has been socialized and the transmission charges have been exempted, there has been no occasion where the renewable energy developers could compensate PGCIL in case of relinquishment of open access.</p>
<p>Hence, the petition states that the pre-disclosure of relinquishment charges is necessary for renewable energy projects as these projects are exempted from payment of transmission of charges by the central government.</p>
<p>PGCIL and POSOCO being the repository of all the transmission related data, are in a better position to examine the requests made by the developers. If a payment of certain costs towards the undertaking system studies is made, then they can pre-disclose the relinquishment charges to the renewable power developer.</p>
<p>So, the petition argued that it is only fair if the compensatory payment is pre-disclosed before it is imposed upon the renewable power developer for relinquishing open access rights.</p>
<p>It further states that since the relinquishment charges are to be calculated based on the transmission charges, it is important to get clarity from the Commission regarding the payment of these charges where the developer has been exempted from the payment of transmission charges.</p>
<p>In its order, the Commission noted that the contention of the petitioner was misplaced. A renewable power project is exempted from the payment of transmission charges and losses for the use of the transmission system, only if it satisfies the conditions of the waiver of transmission charges and losses. However, there is no exemption from the payment of relinquishment charges, and it will have to be paid. Stating this, the petition was rejected.</p>
<p>Notably, the Ministry of Power <a href="https://mercomindia.com/no-ists-charges-solar-wind-december-2022/" target="_blank" rel="noopener noreferrer">announced</a> that the inter-state transmission system charges and losses on the transmission of electricity generated from solar and wind energy projects would be waived as long as they are commissioned before December 31, 2022.</p>
<p>Recently, the central body also <a href="https://mercomindia.com/cerc-lists-conditions-waiver-of-bank-guarantee/" target="_blank" rel="noopener noreferrer">shed light</a> on the conditions required for the exemption of construction phase bank guarantee for an applicant who fulfills the exemption eligibility criteria for long-term access to power.</p>
<p>Earlier, the CERC <a href="https://mercomindia.com/cerc-guidelines-transmission-solar-wind/" target="_blank" rel="noopener noreferrer">issued</a> new guidelines for inter-state transmission system charges and losses. The guidelines highlight the responsibilities of the nodal agencies and the calculation of inter-state transmission charges and losses for solar and wind projects.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/anjana/" class="vcard author" rel="author"><span class="fn">Anjana Parikh</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><p><img class="alignleft" src="https://mercomindia.com/wp-content/uploads/2019/06/Anjana2.png" width="112" height="121" />Anjana is a news editor at Mercom India. Before joining Mercom, she held roles of senior editor, district correspondent, and sub-editor for The Times of India, Biospectrum and The Sunday Guardian. Before that, she worked at the Deccan Herald and the Asianlite as chief sub-editor and news editor. She has also contributed to The Quint, Hindustan Times, The New Indian Express, Reader’s Digest (UK edition), IndiaSe (Singapore-based magazine) and Asiaville. Anjana holds a Master’s degree in Geography from North Bengal University, and a diploma in mass communication and journalism from Guru Ghasidas University, Bhopal.</p>
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