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Daily News Wrap-Up: APTEL Criticizes MERC for Denying Petitioner Relief

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					</table>Central Electricity Regulatory Commission (<a href="https://cercind.gov.in/" target="_blank" rel="noopener">CERC</a>) has stayed the scheduling restrictions imposed by the Western Regional Load Dispatch Centre (<a href="https://www.wrldc.in/" target="_blank" rel="noopener">WRLDC</a>) on Tata Power Renewable Energy’s (<a href="https://www.tatapowerrenewables.com/" target="_blank" rel="noopener">TPREL</a>) and Electro Solaire’s (ESPL) solar power projects over the non-compliance of reactive power support.
Background
Last October, the Central Electricity Authority (CEA) <a href="https://www.mercomindia.com/cea-compliance-grid-connectivity-rules" target="_blank" rel="noopener">directed</a> 20 renewable energy projects that had received provisional or conditional connectivity approvals to submit compliance reports, specifying the capacity of non-compliance that should be curtailed or suspended until they fully meet the regulatory requirements.
Based on this direction, WRLDC issued directions restricting scheduling from TPREL and ESPL’s projects to the extent of 18%. As a result, TRPEL’s 100 MW project was restricted to 82 MW and ESPL’s 200 MW project to 164 MW on account of non-compliance with the Central Electricity Authority (Technical Standards for Connectivity to the Grid) Regulations.
The WRLDC directions were challenged by TPREL and ESPL in petitions before CERC, arguing that certain minutes of meetings and reports relied upon by WRLDC were not applicable to their projects.
They highlighted specific clauses in a working group report from 2022, which outline procedures and timelines for compliance with regulations for renewable generators connected to the grid. The petitioners claimed that, as their projects achieved commercial operation before the issuance of the working group report, they should be given a grace period of one year to comply with any regulations.
WRLDC contended that TPREL failed to fulfill its commitment regarding the installation of additional capacitive compensation. It contended that restrictions on the schedule of renewable energy generators connected to the grid were imposed due to non-compliance with Clause B2(1) of CEA Connectivity Standards. This action was taken based on CEA directions and meeting minutes.
TPREL stated that it had taken steps to comply with the requirements of the Working Group Report, 2022, by placing an order for equipment to provide reactive compensation for their 100 MW project.
It argued that WRLDC&#8217;s curtailment of power from their project violates Regulation 49(3) of the IEGC, 2023. They claim that WRLDC did not follow the prescribed procedure for curtailment, and their actions constitute a clear violation of statutory mandates.
TPREL claimed to have incurred a loss of approximately ₹5.8 million (~$69,921), resulting from the restrictions of their project&#8217;s active power.
Electro Solaire also presented similar submissions, highlighting substantial daily losses and a total loss of ₹13.73 million (~$165,520), with the potential for compounded losses if interim relief is not granted.
Commission’s Analysis
The Commission observed that as per Clause 6 Part-I of the Working Group Report, 2022, each renewable generator that has achieved commercial operation before the issuance of the Working Group Report, 2022, was mandated to conduct a study and submit the same for approval to the RLDC concerned.
Further, as per the Working Group Report, after scrutiny of documents, and in case some non-compliance is observed, such RLDC must inform the generator regarding the non-compliance, and 12 months must be given to make their plant compliant.
While noting that TPREL and ESPL’s projects do not find a place in the list of 20 renewable projects directed to be curtailed by CEA, the Commission granted interim relief against the imposition of scheduling restrictions imposed by the WRLDC on Tata Power Renewable’s and Electro Solaire’s solar projects.
&#8220;This order comes as a much-needed respite to TPREL and ESPL, which have been facing losses due to curtailment of their solar projects for almost two months now. CERC’s order underscores the intricate balance between securing renewable projects and maintaining the stability and efficiency of the national grid,&#8221; said Shri Venkatesh, Managing Partner, <a href="https://skvlawoffices.com/" target="_blank" rel="noopener">SKV Law Offices</a>
In February, the Central Electricity Regulatory Commission <a href="https://www.mercomindia.com/cerc-new-deviation-guidelines-maintain-grid-security" target="_blank" rel="noopener">issued</a> new guidelines to supplement the Deviation Settlement Mechanism Regulations 2022 to maintain grid security. These regulations came into force last December after wide-frequency fluctuations in the grid occurred. The regulator stipulated certain measures to contain frequency within the operating band.
Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.

CERC Lifts Scheduling Restrictions Imposed on Two Solar Projects

The Uttar Pradesh Electricity Regulatory Commission (<a href="https://www.uperc.org/Default2.aspx" target="_blank" rel="noopener noreferrer">UPERC</a>) has come down on a project developer for non-compliance with its previous order.
The regulator has given Pinnacle Renewable Energy Private Limited four weeks to state the reasons for its non-compliance with the Commission&#8217;s order passed in March 2019. The Commission also directed the solar developer to pay a penalty of ₹100,000 (~$1,363) plus an additional applicable penalty for not complying with the earlier order for setting up an evacuation system.
Background
Uttar Pradesh Power Corporation Limited (<a href="https://www.upenergy.in/" target="_blank" rel="noopener noreferrer">UPPCL</a>) had filed a petition seeking appropriate action against the developer for their &#8220;intentional and deliberate defiance&#8221; of directions of the order passed by the Commission on March 05, 2019.
In that order, the Commission had asked the developer to set up the power project by April 15, 2019, subject to the imposition of liquidated damages as per the power purchase agreement.
The Commission had also directed UPPCL to provide connectivity to the petitioner from 33 kV Kanduni substation after payment of the bay&#8217;s cost within 15 days.
The state regulatory authority also said that the developer should deposit the cost for laying the 132 kV transmission line to the UPPCL in the next 15 days.
The UPPCL said that Pinnacle Renewable Energy had not complied with the Commission&#8217;s order and had challenged the order before the Appellate Tribunal for Electricity (APTEL). Later, APTEL had directed UPPCL to grant temporary connectivity from the 33 kV substation, subject to certain conditions.
Commission&#8217;s Analysis
In its analysis, the Commission noted that APTEL had observed that Pinnacle Renewable Energy had completed the solar project. The only question that would arise was putting up the evacuation system in place.
The Commission noted that sufficient time had passed since its last order, in which the developer was directed to pay for the cost of the bay and the cost of laying 132 kV transmission line to UPPCL. The Commission observed that Pinnacle Renewable Energy had not placed on record the project&#8217;s status and the directives&#8217; compliance.
Accordingly, the Commission directed Pinnacle Renewable Energy to respond to the show-cause notice within four weeks and explain why action should not be taken against them for non-compliance with the Commission&#8217;s order. The Commission also directed the developer to pay a penalty of ₹100,000 (~$1,362.6) plus an additional penalty for non-compliance.
Regulatory updates in the solar sector are hard to follow for the developers, which is why Mercom has real-time regulatory <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener noreferrer">updates</a> for its subscribers.
According to Mercom&#8217;s <a href="https://mercomindia.com/product/india-solar-project-tracker/" target="_blank" rel="noopener noreferrer">India Solar Project Tracker</a>, Uttar Pradesh has 973 MW of large-scale solar projects in operation, and about 1.7 GW capacity is currently under development.

Solar Developer in Uttar Pradesh Penalized for Not Complying with Commission’s Order

The Appellate Tribunal for Electricity (<a href="http://www.aptel.gov.in/" target="_blank" rel="noopener noreferrer">APTEL</a>) has provided relief to the Tata Power Delhi Distribution Limited (TPDDL) after it was penalized by the Delhi Electricity Regulatory Commission (DERC) for not meeting its renewable purchase obligation (RPO).
The DISCOM has argued that the commission imposed a penalty due to misinterpretation of facts which, according to the company, “is absolutely an erroneous assumption.”
DERC <a href="https://mercomindia.com/delhi-penalizes-three-discoms-defaulting-rpo/" target="_blank" rel="noopener noreferrer">imposed penalties</a> of ₹17.2 million (~$240,000) last week on Tata Power Delhi Distribution Limited (TPDDL) and ₹28.8 million (~$410,000) each on BSES Yamuna Power Ltd. (BYPL) and BSES Rajdhani Power Ltd. (BRPL).
The penalties were imposed for defaulting on RPO for three financial years. The commission had ordered the distribution companies to pay the penalty within a month. Further, the commission, in its order, observed, “There is no doubt that DISCOMs have failed to meet their RPO. Keeping in view all factors and various directions of the Appellate Tribunal for Electricity (APTEL), it is established that the failure of DISCOMs to meet the RPO makes them liable to pay the penalty.”
Consequently, TPDDL moved an interlocutory application before the APTEL seeking respite in the matter.  In its application, TPDDL stated:
“The matter came to be disposed of clubbing the same with another petition filed by the distribution company, which had not complied with RPO obligation; therefore, the impugned order was passed wrongly saddling the appellant with a penalty.”
Considering the submissions of the appellant, APTEL has directed the commission to not take any coercive measures against the DISCOM until November 13, 2019, which is the next scheduled date of hearing.
In March 2019, the Delhi commission had <a href="https://mercomindia.com/delhi-psa-seci-tata-power-50-mw-wind/" target="_blank" rel="noopener noreferrer">approved</a> a power sale agreement signed between the Solar Energy Corporation of India (<a href="http://seci.co.in/" target="_blank" rel="noopener noreferrer">SECI</a>) and <a href="https://www.tatapower-ddl.com/" target="_blank" rel="noopener noreferrer">TPDDL</a> for procuring power from 50 MW of wind power projects. This procurement of power was also to be utilized for meeting TPDDL’s renewable purchase obligation.
In a positive development for the renewable energy industry, state electricity regulatory commissions are taking strong measures against RPO defaulters in the country. <a href="https://mercomindia.com/rajasthan-regulator-issue-non-compliance-rpo/" target="_blank" rel="noopener noreferrer">Recently</a>, the Rajasthan Electricity Regulatory Commission ordered that nine companies will be issued notices for the non-compliance of RPO order.
Hopefully, other states will start taking notice and get tough on RPO enforcement, which will spur the renewable sector in India towards achieving the 175 GW of renewable energy by 2022 goal set by the government.

APTEL Stalls DERC from Imposing Penalty on Tata Power DISCOM for RPO Non-Compliance

In one of the toughest moves to enforce the renewable purchase obligation (RPO) order, the <a href="http://www.rerc.rajasthan.gov.in/" target="_blank" rel="noopener noreferrer">Rajasthan Electricity Regulatory Commission</a> (RERC) has said that nine companies will be issued notices for the non-compliance of RPO order.
After reviewing a petition by the Rajasthan Renewable Energy Corporation Limited (<a href="https://www.recgroup.com/en" target="_blank" rel="noopener noreferrer">RRECL</a>), the commission has directed the issue of notices to the managing directors of all the respondent companies (excluding Binani Cement Limited (BCL) and Uttam Strips Limited) to show cause for the non-compliance of the commission’s order.
The RRECL has been asked to provide the list of names of the managing directors and directors of the respondent companies so that notices can be served to them.
Background:
In March 2017, Rajasthan Renewable Energy Corporation Limited (RRECL) filed a petition for the non-compliance of RERC’s order on renewable purchase obligations (RPO).  RRECL is the nodal agency appointed by the RERC for ensuring RPO compliance.
The petition was filed against Binani Cement Limited, Mangalam Cement Ltd, J.K. Tyres &amp; Industries Ltd, Ruchi Soya Industries Ltd, Suzuki Spinners (Unit-II), Suzuki Spinners, Jodhpur Alloys Pvt. Ltd, Shristi Alloys Pvt. Limited, Suzuki Suitings, Uttam Strips Pvt Ltd, and Yantra Steels India Pvt. Ltd.
The case was heard in January 2019, and during the proceedings, it submitted the names of the 11 respondents who had made the compliance and requested the commission to drop the action against them.
On January 4, 2019, the commission allowed the request of the petitioner and dropped the proceeding against the proposed respondents.
In the meantime, two respondents—Binani Cement and Uttam Strips—represented their cases before the commission, stating that they were unable to repay their debts. The two companies said that their board of directors had been suspended as per the provisions of the Insolvency and Bankruptcy Code.
Meanwhile, Ultratech Cement Limited and Jyoti Strips Private Limited became the resolution applicants approved by the National Company Law Tribunal (NCLT) for Binani Cement Limited and Uttam Strips Limited.
Given this, the RERC believes that, now, Binani Cement and Uttam Strips cannot be held responsible for compliance with the commission’s order. However, all the other respondents did not represent their case, which will result in an action initiated against them.
Stating this, the commission has ordered that notices must be issued against the rest of the companies for their non-compliance.
Only last week, Delhi Electricity Regulatory Commission (DERC) <a href="https://mercomindia.com/delhi-penalizes-three-discoms-defaulting-rpo/" target="_blank" rel="noopener noreferrer">imposed penalties</a> of ₹17.2 million (~$240,000) on Tata Power Delhi Distribution Limited (TPDDL) and ₹28.8 million (~$410,000) each on BSES Yamuna Power Ltd. (BYPL) and BSES Rajdhani Power Ltd. (BRPL), for defaulting on renewable energy purchase obligations for three financial years.
In March 2019, <a href="https://mercomindia.com/rajasthan-amends-regulations-rec-and-rpo/" target="_blank" rel="noopener noreferrer">Mercom</a> had reported that the Rajasthan Electricity Regulatory Commission (RERC) issued new amendments to its regulations on renewable energy certificate and renewable purchase obligation compliance framework that was initially passed in 2010.

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