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					</table><a href="https://www.mercomindia.com/tamil-nadu-hikes-retail-tariffs-fy24" target="_blank" rel="noopener">The Tamil Nadu Electricity Regulatory Commission, in its new tariff order, has increased the retail tariffs for the financial year 2023-24. The Commission has increased the retail electricity tariff for high-tension</a> industrial consumers by 2.2% to ₹6.90 (~$0.084)/kWh from the earlier ₹6.75 (~$0.082)/kWh. Similarly, the retail tariff for commercial consumers has been increased by 2.4% to ₹8.70 (~$0.11)/kWh from ₹8.50 (~$0.10)/kWh.
<a href="https://www.mercomindia.com/haryana-subsidies-solar-pumps-kusum" target="_blank" rel="noopener">Haryana’s Department of New and Renewable Energy has announced subsidies of up to 75% for solar pumps ranging from 3 HP to 10 HP capacities under the Pradhan Mantri Kisan Urja Suraksha Evam</a> Utthan Mahabhiyaan for the year 2023-24. Under the program, for solar pumps with a capacity between 3 HP and 7.5 HP, the farmer’s share of the cost will be 25%, while the MNRE will provide a subsidy of 30% of the total cost, and the state government will provide a subsidy of 45% of the cost.
<a href="https://www.mercomindia.com/electric-vehicle-sales-q2-2023" target="_blank" rel="noopener">Electric vehicle (EV) sales in India reached 371,340 units in the second quarter of 2023, a year-over-year increase of 66% compared to 223,293 units sold in the same period last year.</a> Sales increased by 6% compared to 349,676 units sold in the previous quarter. EVs accounted for 7.2% of overall automobile sales, according to data released by the Ministry of Road Transport and Highways through its Vahan Dashboard. India has over 2.4 million registered EVs as of June 2023.
<a href="https://www.mercomindia.com/rajasthan-bids-109-mw-solar-projects-kusum" target="_blank" rel="noopener">The Jodhpur Vidyut Vitran Nigam has floated two tenders for installing and commissioning 40 grid-connected solar power projects with a total capacity of 108.68 MW in various subdivisions of Jodhpur</a> Circle under Component C of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan program for feeder level solarization. The projects will be developed under the renewable energy service company model.
<a href="https://www.mercomindia.com/us-114000-new-clean-energy-jobs-2022" target="_blank" rel="noopener">Clean Energy jobs increased by 3.9% in the United States, adding 114,000 jobs in 2022, accounting for 40% of the total energy jobs, according to the 2023 Energy and Employment Report published</a> by the Department of Energy. In 2022, the energy sector as a whole saw an increase of 3.8%, adding approximately 300,000 jobs compared to the previous year.

Daily News Wrap-Up: Tamil Nadu Hikes Retail Electricity Tariffs for C&l Consumers

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					</table>A revival of interest from the industry in Andhra Pradesh to source solar energy through open access has seen installations surge by 450% quarter-over-quarter (QoQ) to 75.3 MW in the third quarter (Q3) of the calendar year (CY) 2022.
The open access capacity addition has been boosted by faster approvals from state-owned power distribution companies (DISCOMs).
Further, the high DISCOM tariffs have pushed industries to adopt solar open access in large numbers. The C&amp;I entities have been increasingly opting for captive and group captive projects for solar open access due to significant savings on energy costs.
“Earlier, approvals were not being granted for open access projects in Andhra Pradesh, which was one of the reasons why the developers lost interest. However, with a change in DISCOMs’ approach combined with high retail tariff, there is a renewed interest in open access solar projects,” said a top executive of a leading open access developer.
Textile, cement, and battery manufacturing units were the primary open access consumers in the state during the quarter.
Andhra Pradesh was fourth on the list of solar open access installations in Q3 2022.
The top five states accounted for 83% of the total installations during the quarter.
The numbers were revealed in the <a href="https://mercomindia.com/product/india-solar-open-access-market-report-q3-2022/" target="_blank" rel="noopener">Mercom India Solar Open Access Market Report Q3 2022</a>.
<a href="https://mercomindia.com/wp-content/uploads/2022/12/opt-1-1-scaled.jpg"><img loading="lazy" decoding="async" class="alignnone wp-image-46367 size-full" src="https://mercomindia.com/wp-content/uploads/2022/12/opt-1-1-scaled.jpg" alt="Andhra Pradesh Poised to Carry Solar Open Access Momentum into Future" width="2560" height="1500" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/opt-1-1-scaled.jpg 2560w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/opt-1-1-300x176.jpg 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/opt-1-1-2000x1172.jpg 2000w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/opt-1-1-768x450.jpg 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/opt-1-1-1536x900.jpg 1536w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/opt-1-1-2048x1200.jpg 2048w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/opt-1-1-650x381.jpg 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/opt-1-1-624x366.jpg 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/12/opt-1-1-600x352.jpg 600w" sizes="(max-width: 2560px) 100vw, 2560px" /></a>
 Energy cost matrix
The captive and group captive mode of solar open access can cut down the energy cost to as low as ₹2 (~$0.024)/kWh, which is 26% to 37% of the retail tariff, depending on the type of consumer. The massive reduction in tariff makes the energy procurement solutions instantly attractive for C&amp;I consumers even with the upfront investment.
“The open access charges include the cross-subsidy surcharge and the additional surcharge, but these charges are not applicable for captive projects. This is one of the main reasons for the growth of open access, especially captive projects,” a developer who has executed projects in the state said.
For FY23, the Andhra Pradesh Southern Power Distribution Company (APSPDCL) has set a cross-subsidy surcharge of ₹2.60 (~$0.032)/kWh for 33 kV commercial consumers. It is 4% higher than ₹2.50 (~$0.031)/kWh set by the Andhra Pradesh Eastern Power Distribution Company (APEPDCL) for 132 kV commercial consumers.
The prevalent retail electricity tariff (FY23) in the state <a href="https://mercomindia.com/ireda-approves-%e2%82%b944-45-billion-loan-sjvn-1-gw-solar/" target="_blank" rel="noopener">ranges</a> between ₹7 (~$0.085)/kWh and ₹7.65 (~$0.093)/kWh for the C&amp;I segment.
When third-party open access projects are considered, the average solar open access tariff goes up to around ₹5.29 (~$0.064)/kWh. This mode is more expensive as it includes a cross-subsidy surcharge and an additional surcharge for using DISCOM infrastructure to wheel power.
Even under the third-party model, the average tariff is nearly 25% lower than the lowest retail tariff for commercial consumers. Third-party solar open access provides an option for businesses not keen on investing in solar projects but still want to procure green energy.
“Andhra Pradesh offers banking facility, which is also playing its part in facilitating the growth of solar open access in the state,” another developer said.
Future prospects
The momentum in solar open access growth in the last quarter is likely to be sustained by Andhra Pradesh, considering the state’s large project pipeline.
The pipeline capacity entirely belongs to a project being developed by the Greenko Group.
Rajasthan and Karnataka were next in terms of the pipeline at the end of Q3 2022, with the top three states accounting for 66% of the total project pipeline.
In terms of cumulative installations, Andhra Pradesh became the fifth largest state, with a share of 6.5% of the total installations in the country as of September 2022, surpassing Rajasthan.
“Things have been improving in Andhra Pradesh in terms of open access installations, but it will take a while before it catches up with states like Karnataka and Maharashtra. While the state is trying its best to position itself as one of the favored destinations of open access solar, there is still some skepticism regarding long-term open access approvals by DISCOMs,” said an executive from another developer.
The state has a good potential for the growth of open access in the near future. However, the cross-subsidy surcharge of ₹2.60 (~$0.032)/kWh and the DISCOMs’ reluctance to give quicker approvals for long-term open access might compromise future growth prospects.
The <a href="https://mercomindia.com/product/india-solar-open-access-market-report-q3-2022/" target="_blank" rel="noopener">Mercom India Solar Open Access Market Report Q3 2022</a> covers a detailed analysis of state policies and regulations related to solar open access and covers vital information and data on the market.
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(The story updates with a new headline)

Market Cautiously Optimistic About Andhra Pradesh’s Open Access Solar Prospects

The Karnataka Electricity Regulatory Commission (<a href="https://karunadu.karnataka.gov.in/kerc/Pages/home.aspx" target="_blank" rel="noopener noreferrer">KERC</a>) has issued the retail tariff order for various distribution companies (DISCOMS) for FY 2021.  The new tariffs will come into force from November 01, 2020.
The Bangalore Electricity Supply Company (<a href="https://bescom.karnataka.gov.in/english" target="_blank" rel="noopener noreferrer">BESCOM</a>) had proposed an increase in electricity tariff of ₹1.96 (~$0.03)/kWh for all categories of consumers resulting in an average increase in retail supply tariff by 25.24%. Against this, the Commission has approved an increase of ₹0.40 ($0.005)/kWh, accounting for just a 5.17% average increase. The tariff increase allowed by the Commission is ₹0.40 (0.005)/kWh for all the DISCOMs in the state though they had requested for a higher hike in tariff.
The state regulator allowed the recovery of additional revenue partly by increasing the energy charges in the range of ₹0.20 (~$0.003) to ₹0.25 (~$0.004)/kWh for all categories.
The Commission has continued with the tariff schedule for concessional power supply to the electric vehicle charging stations by including the EV battery swapping stations, without increasing the energy charges of ₹5 (~$0.07)/kWh. It has been maintained in the orders for all the DISCOMs in the state.
The green tariff of an additional ₹0.50 (~$0.007)/kWh over the standard tariff, which was introduced a few years ago for HT industries and HT commercial consumers, to promote the purchase of renewable energy from ESCOMs has been maintained. It will be the same for all the DISCOMs.
The Commission determined a wheeling charge of ₹0.23 (~$0.003)/kWh for the HT network and ₹0.54 (~$0.007)/kWh for the low tension (LT) network. The Commission noted that the wheeling charges would apply to all open access consumers using the BESCOM network only, except for energy transmitted from renewable sources. For wheeling of energy from renewable energy sources, separate orders issued by the Commission from time to time will be applicable.
Recently, KERC <a href="https://mercomindia.com/karnataka-stakeholder-comments-invited/" target="_blank" rel="noopener noreferrer">issued</a> a discussion paper on wheeling charges and banking facilities for renewable projects. The Commission noted a need to revise the transmission and wheeling charges applicable to non-REC (renewable energy certificate) route based renewable power projects and examine the banking facility extended to them.
In May this year, KERC <a href="https://mercomindia.com/karnataka-extends-tariff-structure-solar/" target="_blank" rel="noopener noreferrer">extended</a> the validity of the existing tariff structure determined by the Commission in August 2019. The earlier regulation had expired in April 2020. The extension has been provided for one year from April 01, 2020, to March 31, 2021. The extension will facilitate the seamless development of solar projects, including rooftop solar installations in the state.
Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener noreferrer">Regulatory Updates </a>to ensure you don’t miss any critical updates.
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Image credit: Unsplash

DISCOMs Ask For Steep Hike in Electricity Tariff in Karnataka, Commission Goes Easy

The Ministry of Power (<a href="https://powermin.nic.in/" target="_blank" rel="noopener noreferrer">MoP</a>) has asked the state and UT (Union Territory) governments to request the state electricity regulatory commissions (SERC) to consider reducing the retail power tariff to consumers who purchase power through prepayment meters.
It also states that the necessary changes in the relevant regulations, orders, or mechanism to reduce the power tariff in case of advance payments or prepayments by the consumers, should be implemented six months from the time of issuance of the letter.
According to the letter issued by the MoP, with the availability of prepayment meters, consumers can pay in advance for the electricity consumed by them to the distribution companies (DISCOMs).
“In cases of prepayments, the carrying costs will come down, leading to reduced requirement of working capital for the distribution companies. Further, this will also eliminate the associated costs involved in meter reading, billing, and collection. Therefore, where prepayment meters are installed or being installed, the electricity tariff per unit for the consumer should reduce,” the letter states.
Prepayment meters are being provided to the end consumers by the distribution companies.
In November 2019, <a href="https://mercomindia.com/ministry-power-tariff-rebate/" target="_blank" rel="noopener noreferrer">Mercom</a> reported that the Ministry of Power advised the SERCs to establish the reduction of generation or transmission tariffs in cases of full or advance payments by the DISCOMs. The ministry had also suggested that the retail tariff for the consumers should also be reduced in case the DISCOMs pay the tariff in advance.
Previously, it was reported that the MoP had <a href="https://mercomindia.com/discom-heat-letter-credit-advance-payment-power/" target="_blank" rel="noopener noreferrer">issued</a> procedural guidelines for the scheduling of power to the distribution companies in case of non-maintenance of the line of credit under the payment security mechanism.

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