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November 2018 Inergystat ABOUT INERGY-PULSE THIS IS A MONTHLY UPDATE SERIES PUBLISHED BY INERGYSTAT. IT CONTAINS MONTHLY NEWS, COVERING VARIOUS VERTICALS OF POWER SECTOR. IT ALSO PRESENTS ARTICLES ON SOME TOPICS FOR THE MONTH. IT GIVES UPDATE ON REGULATORY MATTERS RELATED TO POWER SECTOR AND UPCOMING EVENTS. THIS MONTH WE ACHIEVED A MILESTONE BY COVERING 10000 NEWS DURING THE YEAR. FOCUS AREA “SMALL WIND TURBINE SEGMENT IN INDIAKNOW A COMPANY- VAATA SMART LTD. INERGY-PULSE

November 2018 [INERGY- PULSE] INERGY-PULSE Pulse- November 18.pdf · november 2018 [inergy- pulse] 1 | p a g e inergystat about inergy-pulse this is a monthly update series published

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Page 1: November 2018 [INERGY- PULSE] INERGY-PULSE Pulse- November 18.pdf · november 2018 [inergy- pulse] 1 | p a g e inergystat about inergy-pulse this is a monthly update series published

November 2018 [INERGY- PULSE]

1 | P a g e

Inergystat

ABOUT INERGY-PULSE

THIS IS A MONTHLY UPDATE SERIES PUBLISHED BY

INERGYSTAT. IT CONTAINS MONTHLY NEWS, COVERING

VARIOUS VERTICALS OF POWER SECTOR. IT ALSO

PRESENTS ARTICLES ON SOME TOPICS FOR THE MONTH.

IT GIVES UPDATE ON REGULATORY MATTERS RELATED TO

POWER SECTOR AND UPCOMING EVENTS.

THIS MONTH WE ACHIEVED A MILESTONE BY COVERING

10000 NEWS DURING THE YEAR.

FOCUS AREA

“SMALL WIND TURBINE

SEGMENT IN INDIA”

KNOW A COMPANY- VAATA

SMART LTD.

INERGY-PULSE

Page 2: November 2018 [INERGY- PULSE] INERGY-PULSE Pulse- November 18.pdf · november 2018 [inergy- pulse] 1 | p a g e inergystat about inergy-pulse this is a monthly update series published

November 2018 [INERGY- PULSE]

2 | P a g e

Table of Contents Power Generation ..............................................................................................................................4

Statistics.........................................................................................................................................4

News..............................................................................................................................................4

Power Transmission............................................................................................................................6

Statistics.........................................................................................................................................6

News..............................................................................................................................................6

Power Distribution..............................................................................................................................8

Statistics.........................................................................................................................................8

News..............................................................................................................................................8

Power Trading .................................................................................................................................. 10

Statistics....................................................................................................................................... 10

News............................................................................................................................................ 10

Coal Sector ....................................................................................................................................... 11

Statistics....................................................................................................................................... 11

News............................................................................................................................................ 11

Renewable ....................................................................................................................................... 13

Statistics....................................................................................................................................... 13

RE News ....................................................................................................................................... 13

Solar Statistic................................................................................................................................ 14

Solar News ................................................................................................................................... 14

Non Solar Statistic......................................................................................................................... 17

Non Solar News ............................................................................................................................ 17

Miscellaneous .................................................................................................................................. 18

Statistics....................................................................................................................................... 18

News............................................................................................................................................ 18

Focus Area ....................................................................................................................................... 21

Small Wind Turbine Segment in India ............................................................................................. 21

Know a Company- Vaata Smart Ltd. ............................................................................................... 28

Vaata SMART Ltd. accelerating the small wind segment .................................................................. 30

Company Updates ............................................................................................................................ 37

Page 3: November 2018 [INERGY- PULSE] INERGY-PULSE Pulse- November 18.pdf · november 2018 [inergy- pulse] 1 | p a g e inergystat about inergy-pulse this is a monthly update series published

November 2018 [INERGY- PULSE]

3 | P a g e

Tender Result ................................................................................................................................... 39

Regulatory Updates .......................................................................................................................... 40

India ............................................................................................................................................ 40

Assam .......................................................................................................................................... 49

Andhra Pradesh ............................................................................................................................ 49

Chhattisgarh ................................................................................................................................. 49

Gujarat......................................................................................................................................... 49

Haryana ....................................................................................................................................... 51

Himachal Pradesh ......................................................................................................................... 52

Karnataka ..................................................................................................................................... 55

Kerala........................................................................................................................................... 55

Madhya Pradesh ........................................................................................................................... 57

Maharashtra................................................................................................................................. 59

Manipur ....................................................................................................................................... 63

Meghalaya ................................................................................................................................... 63

Rajasthan ..................................................................................................................................... 66

Punjab.......................................................................................................................................... 67

Telangana..................................................................................................................................... 67

Uttarakhand ................................................................................................................................. 69

Uttar Pradesh ............................................................................................................................... 71

UTs except Delhi ........................................................................................................................... 71

Update from Web............................................................................................................................. 72

Upcoming Events.............................................................................................................................. 73

Page 4: November 2018 [INERGY- PULSE] INERGY-PULSE Pulse- November 18.pdf · november 2018 [inergy- pulse] 1 | p a g e inergystat about inergy-pulse this is a monthly update series published

November 2018 [INERGY- PULSE]

4 | P a g e

Power Generation

Statistics

Installed Capacity as on October 31,

2018

Sector wise share in Installed Capacity

Private sector has the highest share in

installed power generation capacity as

of October, 2018

News

NTPC Limited, the largest power utility of the country has been ranked No.1 Independent

Power Producer and Trader Globally in the Platts Global Company rankings 2018.

NTPC group has an installed capacity of 53651

MW and contributed 23% of total electricity

generated in India with 16% share of Country's total installed capacity.

As per latest report of CRISIL, Capacity addition

in thermal power generation will slow down over the next five years to less than half the

current pace.

As per report, only about 35 GW of new coal-fired power plants to be added to India’s power

generation portfolio from FY19-23. In contrast, India added 88 GW of capacity in the preceding

five years.

Industry professionals believe that bringing new

hydro policy will not revive the sector, but a complete policy overhaul that recognises

hydro’s long-term economic and technical

benefits, and socialises the development risk, is necessary.

Some of the issues hydro segment faces are:

issues of cost and time overrun, making

the per unit tariffs for hydel project non-competitive and preventing further

investments in the sector,

delivery of free power to States which further affect projects’ viability

According to data, more than 10,500 MW of

power plants have cited ‘coal shortage’ for

shutting their units down. Plants mostly located

in Maharashtra, Andhra Pradesh, Haryana and

Chhattisgarh, all far away from the coal mines,

57%

7% 0%

2%

13%

21%

Coal

Gas

Diesel

Nuclear

Hydro

Renewable

Source- CEA & Inergystat

Capacity-

346047.58 MW

30%

46%

24% State

Private

Central

Page 5: November 2018 [INERGY- PULSE] INERGY-PULSE Pulse- November 18.pdf · november 2018 [inergy- pulse] 1 | p a g e inergystat about inergy-pulse this is a monthly update series published

November 2018 [INERGY- PULSE]

5 | P a g e

reflecting the inadequacy of the transportation

infrastructure to ferry the fuel.

NTPC is gearing up to bid for 8,000-10,000 MW

of stressed private power projects when they are

moved to the bankruptcy court. The company has identified eight-nine power plants and has

negotiated with banks for funding. The company will look at commissioned projects

with easy spare parts availability and coal transportation facilities.

Power Minister R K Singh stated that the

government is examining a proposal to bid out UMPPs to meet the rising power demand in the

country.

As per CRISIL report, a 40-60 percent haircut,

along with financial safeguards, can resolve as much as Rs 1 lakh crore of debt stuck in coal-

based power projects and enhance their viability

on a sustained basis. The haircuts are also supported by financial safeguards such as

elongated repayment structure, lower interest rate, comfortable liquidity through debt service

reserve accounts (DSRA), and adequate working capital limits for coal requirements.

Thermal coal-based power capacities have been in stress for multiple reasons, including over-

leverage due to costs over-runs, inadequate PPA and fuel supply agreements, and aggressive

bids.

India is one of the crucial seven nations

pursuing the construction of the world's largest tokamak fusion device, a doughnut-shaped

configuration designed to produce 500 MW of thermal fusion energy.

The upcoming International Thermonuclear

Experimental Reactor (ITER), the world's largest

fusion reaction research facility here in southern France, aims to develop fusion technology to

make commercially-viable fusion energy a reality. ITER members -- India, Russia, the US,

Japan, China and South Korea, as also the European Union -- are the providing technical

and scientific expertise for the fabrication.

As per latest report by JM Financial, power

sector does not require any new capital expenditure in thermal capacity until FY22, as 40

GW capacity is under construction and current stranded capacity is 25 GW, this will impact

negatively to power equipment supplier BHEL.

The report also pointed out that despite

adequate thermal power and transmission capacity, coal shortage remains an issue. Even

with Coal India (CIL) offtake growth improving to 8-9 per cent in the last 12 months, coal stock at

power plants stagnate at 7-8 days. This is due to

a culmination of factors like: fall in coal imports; new power plant additions; and heavy rains in

south India in September, which has impacted coal production.

Page 6: November 2018 [INERGY- PULSE] INERGY-PULSE Pulse- November 18.pdf · november 2018 [inergy- pulse] 1 | p a g e inergystat about inergy-pulse this is a monthly update series published

November 2018 [INERGY- PULSE]

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Power Transmission

Statistics

Target and Achievement of

Transmission Lines as on September

2018

Note: - There is no addition in Transmission line

at 765 kV capacity, while line at 440 kV & 220

kV get over achieved

News

APTransco, which stood out at national level in

reducing transmission and distribution (T&D)

losses to single digit, bagged the prestigious

‘Golden Peacock Award for Sustainability- 2018’

for best performance in financial management

and reduction of transmission and distribution

(T&D) losses.

IndiGrid, the country's first Infrastructure

Investment Trust (InvIT), plans to raise Rs 3,000

crore to acquire projects as it looks to expand its

portfolio.

The company recently acquired PTCL's 1,000

MVA, 400/220 KV substation with 14 bays and

LILO of both circuits of Patiala-Kaithal 400 KV

double circuit triple snow bird line.

The NRSS 29 transmission project awarded by

the union government to Sterlite Power, in 2014

was commissioned two months ahead of the

schedule. The Northern Region Strengthening

Scheme 29 (NRSS 29) which is 414 kms long will

ensure reliable access to power for the Valley.

Sterlite Power was able to commission the

project in four years’ time, and the 400 Kilovolt

(KV) transmission line will provide an alternate

power exchange route between Northern Grid

and the Jammu & Kashmir.

PowerGrid Corporation of India Limited

(PGCIL) expects a market opportunity of ₹50,000 crore for setting up Green Energy

Evacuation Corridors in India by 2022.

“The centre has set a target to add 100 GW of

solar power generation capacity in the grid. This will require an additional transmission capacity

of at least 60,000 MW by 2022. These projects

will be announced over the next two years and will cost nearly ₹50,000 crore.

The private sector players have sought

reconstitution of the National Committee on

Transmission to accord a level-playing field for

them with PGCIL. The NCT has been tasked to

constitute the Bid Evaluation Committee (BEC)

for a Tariff-Based Competitive Bidding Projects

besides other mandates.

Adequate inter- and intra-state transmission is

the need of the hour to ensure 24x7 quality and

reliable power supply to all. To ensure that

transmission costs are kept low, the contracts

need to be awarded on a competitive basis. The

NCT should eschew the tendency of awarding

contracts on cost plus basis award as it leads to

perverse incentive to increase cost.

0

200

400

600

800

1000

1200

765 kV 440 kV 220 kV

Programme

Achievement

Page 7: November 2018 [INERGY- PULSE] INERGY-PULSE Pulse- November 18.pdf · november 2018 [inergy- pulse] 1 | p a g e inergystat about inergy-pulse this is a monthly update series published

November 2018 [INERGY- PULSE]

7 | P a g e

Page 8: November 2018 [INERGY- PULSE] INERGY-PULSE Pulse- November 18.pdf · november 2018 [inergy- pulse] 1 | p a g e inergystat about inergy-pulse this is a monthly update series published

November 2018 [INERGY- PULSE]

8 | P a g e

Power Distribution

Statistics

Power Distribution Sector Snapshot as on October 31, 2018

All India AT&C loss (%) 22.99%

ACS-ARR Gap (INR/Unit) 0.27

Bond Issued (%) 86.29%

Smart Meter

Phase-I: Above 500

kWh/month

Progress (in %)

3.37%

Progress (in No.)

193115

Total Nos.

5733302

Phase-II: 200-500

kWh/month

Progress (in %)

1.04%

Progress (in No.)

191257

Total Nos.

18429956

Status of Household electrification as on October 31, 2018

No. of States

Less than 80% household electrification

3

More than 80% and less than 90% household electrification

2

More than 90% and less than 95% household electrification

7

More than 95% and less than 100% household electrification

8

100% electrified household electrification

10

In October 3 states achieved 100% household

electrification. Most of the states are expected to

achieve the deadline

News

The country soon have a single tariff regime

with both the domestic and commercial consumers paying the same for the electricity,

the union ministry of power has proposed new modifications in tariff policy which according to

the sources is aimed at ‘simplification of tariff

categories and rationalization of retail tariff on the basis of sanctioned load and consumption

instead of commercial and domestic users.

UP govt. have come up with a scheme, under which the area with AT&C loss below 15% will

be incentives in term of 24x7 hour supply, while

areas with higher losses have to wait for continuous power.

Power Minister Shrikant Sharma further stated

that they are targeting to reduce the losses in single digit and working on that front. Minister

also stated that government has prepared a comprehensive plan to provide round-the-clock

power supply in every district of the state by the

year 2034.

Bihar, the state which had the second-biggest job after Uttar Pradesh under the

PM’s Saubhagya scheme, has completed its target of 100 percent electrification of willing

households in the state.

On October 22, 2018, power demand in

Maharashtra, shot up to record 24,962 MW mainly due to increase in mercury levels.

This is a very high demand. On the same day,

for the rest of Maharashtra, except Mumbai, the

demand for electricity was 21,580 MW. Due to this sudden rise in demand, the MSEDCL was

able to supply 20,630 MW of power through proper planning.

The Kleinman Center for Energy Policy at the

University of Pennsylvania School of Design is

awarding its fourth annual Carnot Prize to Shri Piyush Goyal, Minister of Railways & Coal and

former Minister of Power, Coal, New &

Page 9: November 2018 [INERGY- PULSE] INERGY-PULSE Pulse- November 18.pdf · november 2018 [inergy- pulse] 1 | p a g e inergystat about inergy-pulse this is a monthly update series published

November 2018 [INERGY- PULSE]

9 | P a g e

Renewable Energy and Mines, Government of

India.

The 2018 Carnot Prize is a recognition of India’s

efforts under Prime Minister Shri Narendra

Modi, as the nation charts the path towards

eliminating energy poverty with sustainable

energy solutions.The rural electrification drive

gave a significant breakthrough to the mission

of ‘24×7 Affordable, Environment Friendly

Power for all’, as India eliminated decades of

darkness in more than 19,000 villages on 28th

April, 2018. With real-time monitoring, India’s

energy starved people in the remotest villages of

19,000 villages saw electricity for the first time.

With the Saubhagya Programme, the last-mile

connectivity to every household in the villages is

being fast tracked, with 51% of the 3.1 crore

rural households electrified. Mark Alan Hughes,

founding faculty director, Kleinman Center,

commended India’s electrification drive –

“Providing power to the world’s energy poor

turns on the lights—and also empowers

education, sanitation, and health care. It closes

the gap between the haves and have nots.”

UP Power Corporation Limited is planning to

launch a new scheme for providing electricity

connections easily and swiftly. The proposed

scheme, 'Jhatpat Connection Yojana' (instant

connection scheme), envisages quick processing

of applications for electricity connections,

mainly through online process.

As per officials, below poverty line consumer

would be required to pay just INR 10 for an

electricity connection, while those in above

poverty line category would be required to pay

INR 100 for getting an electricity connection of

load between 1 kW to 25 kW.

Goa Electricity department proposes to

introduce Smart-grid as pilot project for effective control of the consumer loads during peak

demand. The State is facing current power deficit of 1 MW during peak hour.

Goa Electricity Department in their business

plan 2019-20, 2021-22 submitted before the Joint

Electricity Regulatory Commission (JERC) has also proposed to install Supervisory Control and

Data Acquisition System (SCADA) upto the 33 KV Sub-Station to avoid the current

mismanagement of the power distribution. Smart meters/Prepaid meters are

also being planned for installation to the

consumers.

Uttar Pradesh government has given deadline of November 1 to Uttar Pradesh Power

Corporation Limited (UPPCL) for setting up power police stations across 75 districts in the

state. These will be dedicated police stations to

crackdown on power theft.

Indore Smart City Development Limited has issued a tender for 30000 smart meters. The

estimated cost is INR 157.9 million and the time for completion of contract is 24 months. The bid-

submission deadline is October 31, 2018.

The scope of work includes the supply,

installation, testing, and commissioning of about 30,000 smart meters with RF mesh

communication. The successful bidder will be responsible for integrating the smart meters

with existing communication infrastructure, existing head end system (HES), meter data

management (MDM) system, cloud hosting for

applications, billing system and revenue/service advisory services of Madhya Pradesh Pashchim

Kshetra Vidyut Vitaran Co. Ltd.

Page 10: November 2018 [INERGY- PULSE] INERGY-PULSE Pulse- November 18.pdf · november 2018 [inergy- pulse] 1 | p a g e inergystat about inergy-pulse this is a monthly update series published

November 2018 [INERGY- PULSE]

10 | P a g e

Power Trading

Statistics

Market Clearing Price discovered at

IEX in last one year

News

On October 2018, Spot power trading at the

Indian Energy Exchange (IEX) touched 268 million units, making it the highest daily

volume of electricity traded in the day-ahead market till date. The volume is 113% higher than

what was traded for the same day last year. Average spot power price at the exchange was

`4.93 per unit, a 34% rise year-on-year.

The top states that purchased the highest volume of electricity were Maharashtra, Gujarat,

West Bengal, Bihar and Telangana. The biggest

sellers were Punjab, Delhi and Rajasthan.

Power trading solutions provider PTC India will

sign medium-term power purchase agreements

(PPA) for 1,900 MW coal-based power capacities with seven companies and five states by month-

end under a pilot scheme.

PTC India had finalised bids of 1,900 MW

capacities last month at a tariff of Rs 4.24 per unit including the nominal fixed cost of one

paise per unit for supply of power for the

medium term of three years. The seven companies which would ink PPAs are IL&FS

Energy for 550 MW, RKM Powergen for 550 MW, SKS Power for 300 MW, MB Power

(Madhya Pradesh) Ltd for 175 MW, Jindal India Thermal Power for 175 MW, Jhabua Power Ltd

for 100 MW and JP Nilgiri Project for 100 MW.

Five states which would buy power from these

plants are Telangana (550 MW), Tamil Nadu (550 MW), Haryana (400MW), Bihar (200MW)

and West Bengal (200MW).

The volume of electricity traded on the Indian

Energy Exchange (IEX) went up by 40% year-on-

year to 5,725 million units (MU) in September. The average spot power price at the exchange in

the month was Rs 4.69/unit, about 15% rise annually.

The daily trading volume had touched an all-time high of 306 MU on September 28 on the

IEX.

0

1

2

3

4

5

6

7

Oct

-17

No

v-17

Dec

-17

Jan-

18

Feb

-18

Mar

-18

Ap

r-18

May

-18

Jun

-18

Jul-

18

Au

g-18

Sep

-18

Oct

-18

Mar

ket

Cle

arin

g P

rice

Page 11: November 2018 [INERGY- PULSE] INERGY-PULSE Pulse- November 18.pdf · november 2018 [inergy- pulse] 1 | p a g e inergystat about inergy-pulse this is a monthly update series published

November 2018 [INERGY- PULSE]

11 | P a g e

Coal Sector

Statistics

Coal Stock position at Power Plants in October 2018

1 Oct

15 Oct

31 Oct

Pithead Plants

No. of plants with critical stock (<5 days)

0 0 0

No. of plants with super critical stock (<3 days)

0 0 0

Non-Pithead Plants

No. of plants with critical

stock (<5 days)

8 13 10

No. of plants with super

critical stock (<3 days)

12 20 19

Closing Stock at power plant as on

September 2018

News

Domestic coal supply remains significantly short

of the domestic demand on the back of a strong

recovery in power demand and a healthy

growth in production levels from non-regulated

consuming sectors like cement, aluminium, and

steel.

During the just concluded monsoon season,

domestic coal production growth slowed down

to 3.8 and 3.2 per cent in September and August,

respectively, against 10.6 per cent in July and

13.2 per cent in June. This lead to coal stocks at

power plants steadily deteriorating from a high

of 21.1 million tonnes (mt) in end-July to an

estimated 15.8 mt in end-September, it added.

Coal prices have received a premium of 102% in

spot e-auction during September 2018, surpassing the earlier highest of 95% premium

during the spot e-auction in October 2017.

This price discovery is owing to the demand-

supply mismatch, although coal production has achieved a double digit growth during the first

six months of the fiscal.

Central government has identified nine coal

blocks with total reserves of around 2 BT that

may be auctioned to private players. It has also

identified another set of nine blocks with total

reserves of 1.1 billion tonnes for allotment to

state owned entities.

According to an industry source, stocks at

the coal pithead and power plants have touched

an all-time low of about 30 MT, as demand has

gone up and imports have dropped.

As coal stockpile at the mine’s end dwindles to

20MT from 55MT five months back, rail rakes

have also reduced. From the April to September

period, railways supplied an average of 271

rakes a day for Coal India supply, after hitting a

peak of 310 rakes per day in March. This has

come down to below 250 rakes per day in

August and September.

The government has allowed captive coal block

owners to sell 25% of their production in open

market and provided some flexibility in coal

output as it kick-started a fresh round of captive

20

.17

21

.50

21

.32

20

.60

19

.08

20

.01

21

.13

19

.47

14

.90

0.00

5.00

10.00

15.00

20.00

25.00

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November 2018 [INERGY- PULSE]

12 | P a g e

coal auctions on October 25, 2018 after a gap of

about 15 months.

The coal ministry has invited tenders seeking

bids for 18 captive coal blocks to non-power

plants in Jharkhand, Madhya Pradesh,

Maharashtra, West Bengal, Odisha and

Chhattisgarh.

Captive power generation companies have

offered an average 28% premium to Coal India

(CIL) for booking nearly 16 million tonne of coal

to be supplied yearly for five years at a recent

auction. These supply contracts will now replace

the current contracts that were signed earlier on

a nomination basis.

So far, CIL has offered 29.46 million tonne in

three long-term eauctions, of which 26.54

million tonne were booked. The last concluded

auction was for captive power plants where CIL

offered the highest quantity at 17.2 million

tonne.

As per report, Coal imports by India are set to

reach 164 MT against the earlier forecast of 158

MT due to historic low levels of stocks at Coal

India and power plants amid surging industrial

demand.

Growth in domestic coal production and

dispatches can only partially meet the growing

demand for coal, which is resulting in increased

reliance on imports.

As per reports, CIL halved its inventory at

pitheads by pushing coal to the power plants.

The public sector miner has liquidated 34.34

million tonnes of pithead coal between April

and September bringing down the stock from

55.55 million tonnes at the start of the fiscal to

21.21 million tonnes as of September end.

However, concerns on coal availability still

remain among private captive generators as

priority in supply is to power plants and state

owned firms.

CIL has dispatched over 84 percent of its coal to

the power sector till October 12, 2018 or say

dispatching 1.34 million tonnes of coal a day to

power plants in October 2018.

From April 2018 to October 12, 2018, CIL has

dispatched 1.27 million tonnes of coal per day

against 1.16 million tonnes per day to the power

sector as compared to the same period last year.

Coal India mentioned that its production grew

by 10.6% to 256.47 MT during the first half of the current financial year, while its off-take grew by

8.1% to 290.81 MT during April-September

period of 2018-19 (FY19).

The miner had produced 231.88 mt of coal in the

April-September period of the last fiscal (2017-18) and the off-take was 269 mt in the same

period last year.

The coal behemoth is pursuing an aspirational

production target of 652 mt in the FY19 while it

had produced 567.36 mt in 2017-18.

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November 2018 [INERGY- PULSE]

13 | P a g e

Renewable

Statistics

Renewable Energy Installed Capacity

as on October 31, 2018

Renewable Energy installed capacity= 72012.81

MW

RE News

As per latest report of India Ratings, India may miss the solar and wind energy auction target in

the current fiscal, mainly due to rupee depreciation, safeguard duty and grid

connectivity.

The solar auction target for FY19 may be missed

on account of frequent changes in the implementation of safeguard duty,

apprehensions about grid connectivity and land acquisition-related bottlenecks. Also, a

depreciating rupee compared to USD poses a threat to economical solar tariffs

Industry chamber PHDCCI urged the Government to devise “Smart Micro Grid

Policy” and also appealed for “Separate Tariff Policy” for consumer getting electricity through

smart grids particularly in its solar and wind segment.

The power ministry is planning to place a

proposal to bring large hydro power units under the ambit of renewable energy before the

Union Cabinet in a month.

The move could prove to a major positive for capital intensive hydro projects allowing them

access to global funds and the benefits available for green energy projects.

6%

48%

12% 0%

34% SmallHydroWind

Biomass

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November 2018 [INERGY- PULSE]

14 | P a g e

Solar Statistic

Solar REC Volume traded in last 1 year

In month October has seen a sudden decline

in Solar REC trade.

Solar REC Cleared Price

All the solar-REC traded at IEX & PXIL was

traded at floor price i.e. INR 1000 per REC.

Solar News

CRISIL in a report stated that nearly half of the

solar power capacities under implementation,

worth Rs 28,000 crore, face viability risk because

of the continuous fall in the rupee, which has

made imported solar modules costlier and

increased the cost of setting up solar plants.

As per report these Rs 28,000 crore worth of

solar power capacities include 5,500 MW of

projects bid out in the past nine months at very

low tariffs of Rs 2.75 per unit or less.

BSES Rajdhani launched the second segment of

its solar city initiative in west Delhi’s Shakur

Basti on Sunday. In this phase, the company aims to install rooftop solar power plants with a

generation capacity of about 15 MW at several group housing societies and government

colonies in Shakur Basti, Paschim Vihar and neighbouring residential areas in the next few

years.

The societies will be able to utilise the energy

produced to light up the common area, run elevators in the building, run water pumps and

other such activities by paying just one rupee per unit.

MNRE called for applications for models and manufacturers of Solar PV modules to be listed

under Approved List of Models and Manufacturers (ALMM).

MNRE have also given a timeline for setting up

manufacturing capacity for production of same

in India.

December 31, 2019 for all those units

which have module manufacturing

unit in India from cells

December 31, 2020 for all those units which have module manufacturing

unit in India from wafers onwards

December 31, 2021 for all those units

which have module manufacturing unit in India from Polysilicon

onwards

MNRE withdraw the order just after a day.

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

Oct

-17

No

v-1

7

Dec

-17

Jan

-18

Feb

-18

Mar

-18

Ap

r-1

8

May

-18

Jun

-18

Jul-

18

Au

g-1

8

Sep

-18

Oct

-18

IEX PXIL

2 per. Mov. Avg. (IEX) 2 per. Mov. Avg. (PXIL)

0

200

400

600

800

1000

1200

Oct

-17

No

v-17

Dec

-17

Jan-

18

Feb

-18

Mar

-18

Ap

r-18

May

-18

Jun

-18

Jul-

18

Au

g-18

Sep

-18

Oct

-18

IEX PXIL

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As per estimates, 94 per cent of India’s solar capacity is exposed to medium-high level of

water risk.

India’s total installed capacity in the solar sector

has risen from 1 GW in 2012 to over 25 GW at present, and is expected to go up by over 10 GW

every year.

Fast growth and concentration in water-stressed areas exposes solar energy to growing water

risks – scarcity, rising cost, environmental degradation, etc.

Maharashtra Electricity Regulatory Commission

(MERC) has approved the initiation of a district

(circle) wise competitive bidding process for the

procurement of solar power under

Mukhyamantri Saur Krishi Vahini Yojana.

These solar PV projects will connect at the 11/22

KV level and will have an individual project

capacity ranging between 2 MW and 10 MW.

MSEDCL had also requested that the district

wise competitive bidding will have a ceiling rate

of ₹3.10 (~$0.042)/unit.

Solar projects aggregating 750 MW under

development in Rajasthan’s Bhadla Solar Park

are facing delays due to land procurement

issues.

In Bhadla Phase-III Solar Park, Hero Future Energies had won bid to develop 300 MW of

grid-connected solar PV by quoting ₹2.47 (~$0.0334)/kWh and SB Energy (SoftBank) had

won bid to develop 200 MW of utility scale solar by quoting ₹2.48 (~$0.0335)/kWh.

In Bhadla Phase-IV Solar Park, Azure Power

had won a bid to develop 200 MW of grid-

connected solar PV by quoting ₹2.48

(~$0.0335)/kWh and ReNew Power had won

bid to develop 50 MW of utility scale solar PV

by quoting ₹2.49 (~$0.0337)/kWh.

Maharashtra govt. approved 1 lakh solar

agriculture pumps. The total cost for the project, Mukhya Mantri Saurya Krishipump Yogna

(MMSKY), is INR 3,435 crore. The installation of solar agriculture pumps will be undertaken in

three phases.

In the first phase, 25,000 solar pumps at Rs

858.75 crore will be installed in the current

financial year 2018-19.

The second phase has 50,000 solar pumps,

which will require Rs 1,717.50 crore to be completed in year 2019-20.

The third phase will be 25,000 solar pumps incurring expenditure of Rs 858.75 crore to be

completed in year 2020-21.

As per Mercom report, India installed 4.9 GW of solar power, consolidating its position as the

second largest solar market in the world, during the first half of calendar year 2018.

New leaders are emerging in the highly-competitive Indian solar market, while some of

the more established companies maintained

their leadership position in the first half of 2018.

The top 10 large-scale developers accounted for

55 per cent market share during the reporting period, with others making up the remaining 45

per cent of the market share. There were about 300 utility-scale project developers in the

country with projects of at least 5 MW or more

in operation.

Central Electricity Regulatory Commission

(CERC) has issued an order in a petition filed by Azure power and ACME, to compensate solar

power developers (SPD) by giving them an upfront lumpsum payment, which they would

have incurred as an additional capital expenditure after the introduction of GST Law.

CERC has also asked the government agencies

to make adjustments in the quoted tariff because of the additional operating and recurring

expenditure that will incur for the entire term of the project.

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Recent paper by NITI aayog find that Solar

penetration in India is highly cost sensitive. It

was found that a decrease in solar cost by 50

percent can increase solar penetration by more

than eight times as compared to the baseline

scenario.

Maharashtra government is planning to

distribute solar powered water pumps to

farmers in the state. It plans to distribute around

one lakh pumps to farmers and to finance the

project the state government is planning to

increase electricity duty by 12 paisa per unit on

all consumers.

The distribution of solar pumps is expected to

cost state government around Rs 1,700 crore.

International Solar Alliance, a brain child of India most specifically Modi govt has gained a

lot of applause in the world. Recently, Mr. Modi

mentioned the role of ISA in world and said "One World One Solar One grid" and its

importance, but there are certain issues which need to be tackled before expecting.

Some of the issues are

1. Establishment of an international electricity

transmission grid. 2. R&D to bring down the cost of storage of

electricity. 3. A funding body to fund the solar power in

ISA countries 4. R&D in reusing or to reduce the solar sector

waste like panel, battery etc.

After successful commissioning of Rewa ultra

mega solar power plant, now Rewa Ultra Mega Solar Ltd (RUMSL) is going to issue tender for

1500 MW solar projects I.e. 550 MW Agar Solar Park, 450 MW Shajapur Solar Park and 500 MW

Neemuch Solar Park.

Some of the key points of the projects are:

1. 23% power will be procured by Indian Railways and Railways Energy Management

Company Limited (REMCL) and rest by Madhya Pradesh Power Management Company

(MPPMCL)

2. It will be the first project is which IREDA will

provide a long-term overdraft facility that would enable RUMSL to extend payment

security to developers for the Rewa project.

3. The project will be second after Rewa project

to supply power directly to consumer I.e. Indian Railway.

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Non Solar Statistic

Non- Solar REC Volume Traded

In October there is increase in trade of non-

solar REC.

Non-Solar REC Cleared Price

The graph indicates that in recent months, non-

solar REC is clearing at slightly higher than floor

price.

Non Solar News

Maharashtra Electricity Regulatory Commission

(MERC) has approved Maharashtra State

Electricity Distribution Company Limited’s

(MSEDCL) proposal to procure long-term

bagasse-based cogeneration power through

competitive bidding.

After reviewing the petition, MERC has fixed 18

months from the date of signing of PPA as the

commissioning period against the previous 13-

month commissioning period. MERC has also

extended the PPA duration from 13 years to 20

years.

Maharashtra Electricity Regulatory Commission

(MERC) has directed the Maharashtra State Electricity Distribution Company Limited

(MSEDCL) to pay ₹41.0464 billion (~$0.56

billion) in dues to wind power generators in Maharashtra in response to petition filed by

Windmill Owners Welfare Association of India (WOWAI).

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

Oct

-17

No

v-17

Dec

-17

Jan-

18

Feb

-18

Mar

-18

Ap

r-18

May

-18

Jun

-18

Jul-

18

Au

g-18

Sep

-18

Oct

-18

IEX PXIL

2 per. Mov. Avg. (IEX) 2 per. Mov. Avg. (PXIL)

0

200

400

600

800

1000

1200

1400

1600

Oct

-17

No

v-17

Dec

-17

Jan-

18

Feb

-18

Mar

-18

Ap

r-18

May

-18

Jun

-18

Jul-

18

Au

g-18

Sep

-18

Oct

-18

IEX PXIL

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Miscellaneous

Statistics

FAME status as on October 31, 2018

Total No. of vehicles sold

257815

Saved fuel ( In Litres) 35262484

Fuel saving per day ( In Litres)

52208

CO2 Reduction per day ( In Kg.)

129436

CO2 Reduction ( In Kg.)

88118474

Note: - There is 4.22% increase in electric

vehicle in India. This month sees decline in sales

this month as comparison to September month.

UJALA stats

October 31, 2018

Total LEDs distributed 312133458

Energy saved per year (mn kWh) 40536

Cost saving per year (INR Cr.) 16214

Avoided Peak Demand (MW) 8115

CO2 Reduction per year (t CO2) 32834027

Total Tube light distributed 6722825

Energy saved per year (mn kWh) 294.459735

Cost saving per year (INR Cr.) 100.1163099

Avoided Peak Demand (MW) 134

CO2 Reduction per year (t CO2) 241457

Total Fan distributed 2058262

Energy saved per year (mn kWh) 191.418366

Cost saving per year (INR Cr.) 65.0822444

Avoided Peak Demand (MW) 51

CO2 Reduction per year (t CO2) 156963

News

Electric Vehicle ISRO is in final stage of selecting firms to

transfer its Li-ion battery technology. As per report, ISRO finalized 15 firms out of 141 firms

to submit the one time technology transfer fees.

It is to be noted that battery technology and its life is one of the major factor which can sped up

adoption of EV in market.

The government is under process of amending

building by-laws to make electric vehicle charging stations mandatory in

residential and commercial buildings and parking lots.

The proposals include offering round the-clock

charging infrastructure facility to all electric

vehicles in residential buildings, setting up

charging bays at 20% capacity of all vehicles, on-

spot metering and payment services in both

commercial and residential buildings.

As per recent survey by Ola’s Mobility Institute, approx 57% users are willing to replace their

traditional fuel vehicles with an electric vehicle. The survey conducted in 20 cities which include

Delhi, Bengaluru, Kochi, Hyderabad, Mumbai,

Surat, Jaipur and Indore. Reason for not taking off of electric vehicle is due to lack of

infrastructure and high costs of vehicle.

Electric vehicle industry in India has witnessed a

strong 124 per cent growth with 56,000 units

sold in the fiscal year 2017-2018 as against 25,000

units sold in the previous fiscal year. Electric

two-wheelers have shown a substantial growth

of 138 per cent with 54,800 units sold in this

fiscal year as compared to 23,000 units sold in

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2016-17. The electric four-wheelers have

however witnessed a considerable drop in sales

by 40 per cent with 1,200 units sold this year as

against 2,000 units sold in the financial year

2016-2017.

Uttarakhand has approved a policy to promote the adoption of electric vehicles in the state,

while also incentivizing those who want to foray into EV manufacturing.

The policy seeks to create employment

opportunities on both the supply and demand

sides of the market; create an environment that is conducive to shifting from internal

combustion engines to EVs; encourage the use of hybrid EVs in Uttarakhand; and develop human

capital and augment power capacity to meet the needs of the EV industry.

Energy Efficiency & Conservation

Andhra Pradesh government is going to launch

Energy Conservation Building Code (ECBC) for

saving energy and reducing air pollution and

power outages. The groundbreaking ECBC

implementation has been made mandatory by

incorporation of the ECBC clause in online

Development Permission Management System

(DPMS) by the Directorate of Town and Country

Planning (DTCP) of the Municipal

Administration department from Monday

(October 22).

Andhra Pradesh government is conserving 2,000

million units (mu) of power and saving about Rs

1,000 crore annually by promoting energy

efficiency initiatives for the last three years.

Besides demand-side management, the state

government has undertaken steps to install LED

street lights, promote solar pumps in farm fields

and supply LED bulbs and energy saving

appliances at cheaper rates for domestic

consumption.

Andhra Pradesh has once again received

plaudits at the national level for its efforts in implementing LED Street Lighting National

Programme (SLNP). The Energy Efficiency Services Limited (EESL) has announced that the

State has topped in all programmes related to energy efficiency such as LED street lighting,

UJALA among others.

Andhra Pradesh is the only State in the country

which has completed 100 per cent LED street lighting in four districts.

Energy Efficiency Services Ltd (EESL) signed an

agreement with the Department of Posts (DoP)

for distribution of energy-efficient appliances under the Unnat Jyoti by Affordable LEDs for

All (UJALA) programme.

Under this initiative, the post office centres will provide the additional facility of replacement of

non-functional LED bulbs, tube lights and fans

that are within their technical warranty period under the UJALA programme.

Green Building

Indian Green Building Council (IGBC) is

planning to increase the green footprint in the country from current 5% to 15% in the next 4-5

years.

IGBC Chairman V Suresh said we have 4,700

projects across India currently, which covers 640 crore sq ft and by 2022 we want to reach 1,000

crore sq ft. The aim is to add around 100 crore sq

ft every year.

Waste Management

Solid waste is the biggest challenge. We would

require 1,250 hectares every year, which is 4x3 sq km area for dumping garbage, if we don’t

push complete management of the municipal waste. Because of the increased focus we have

been able to push the share of garbage that is

processed to about 37%.

India annually needs land equivalent to ten

times the area of Rashtrapati Bhawan estate to

dump waste that urban areas generate.

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According to estimates, all the cities and towns

generate about 52 million tonnes of solid waste

every year.

Environment & Climate

UN-backed fund has approved $43.4 million for enhancing climate resilience for millions of

people living in India's coastal communities as part of its efforts to combat extreme impacts of

climate change. The grant is a part of more than $1 billion approved by the Green Climate Fund

for 19 new projects to help developing countries

tackle climate change.

The GCF was set up in 2010 under the

UNFCCC's (United Nations Framework Convention on Climate Change) financial

mechanism to channel funding from developed

countries to developing countries to allow them

to lessen climate change and also adapt to disruptions arising from a changing climate.

On the eve of Champion of the Earth award for 2018 in Delhi, Indian Prime Minister

Narendra Modi shared that India was on track to meet its targets on cutting down greenhouse

gas emission intensity by 20-25 % from its 2005

levels in next two years and by 30-35 % by 2030.

He further mentioned that we are already set target to generate 175 GW by renewable energy

along with building green corridors, making our highways eco-friendly, planning to make our

metros and city transport system run on solar

power and reduce the dependency of railways on fossil fuels.

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Focus Area

Small Wind Turbine Segment in India

Small wind turbines usually are of two types: horizontal-axis and vertical axis. Vertical axis turbines are

independent of wind direction. They have easier maintenance and lighter-weight towers, but less efficient

at turning wind energy into mechanical power. Also, it is difficult to control rotation speed.

Small wind turbines generally require a higher capital cost per kW and have a lower efficiency (load

factor) compared to big farm farms. But small wind systems can serve as an alternative for diesel

generators, energy storage and water pumping, apart from providing off-grid generation in isolated

areas.

Small wind turbine faces challenge in assessment of wind resource (due to higher cost of management

tools and long-term measurement efforts).

The height of the tower is also a key factor for small wind turbines. To reduce the negative effects of

turbulence caused by surrounding obstacles, a taller tower is better; however, it has a higher cost. Most

small wind turbines are below 30 metres in height. Further innovation to reduce costs and to improve the

efficiency of turbines at lower heights are key challenges for the development of small wind technology.

Because wind speed increases at greater heights, end-users tend to install the turbine on as high a tower

as possible. However, SWT operations and maintenance (O&M) need to be considered in tower height

selection.

While small wind turbine segment seems to have miniscule presence in India, its importance for energy

access and providing clean energy to people in India will compel power sector professionals to give it its

due importance. This segment is important specially for energy access to islands (Andaman and Nicobar

Islands and Lakshadweep). Apart from this, solar rooftop sector and small wind segment can be seen

complementary especially in wind rich areas of India. Such hybrid systems will even increase clean

energy access for people. This can also reduce need of energy storage systems at small scale.

Definition of Small Wind Turbines (SWTs)

In technical terms, there are several definitions of small wind turbines. But most important one is that

given by IEC. IEC defined SWTs in its standard IEC 61400-2 as having rotor swept area of less than 200

m2, corresponding to approximately 50 kW of nominal generation capacity or less. Apart from this, many

countries have their own definitions of SWTs. So, often there is a debate to decide the definition of small

wind turbine at global level to promote this segment. Even the recent International Conference on Small

Wind Turbine (10-13th Dec., 2018) will also be discussing about definition of small wind turbine

agreeable to all.

Installed capacity of Small wind turbine

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Global

As per the World Wind Energy Association report 2017, at the end of 2015, a cumulative total of atleast

990000 small wind turbines were installed all over the world, with installed capacity reaching more than

948 MW. Main drivers for small wind market at global level has been rising energy demand, varying

fossil fuel prices and improved small wind turbine technology.

On global level, there are some policy tools that are used for promoting small wind segment. They are

feed-in-tariff (FiTs), tax credits and net metering.

FiTs help in offering both investment security and output-based incentives, hence, promote increasing

efficiency. On the other hand, tax credits promote investment in renewable energy but fails to address

need to encourage efficiency.

India

As per MNRE, till 31.12.2017, there is 3287 kW installed capacity of aero-generators and hybrid systems,

with maximum capacity installed in the state of Maharashtra (1775 kW).

As per Mahaurja till 31st March 2016, there are 280 wind-solar hybrid system installed in the state of

Maharashtra with total capacity of 2133.249 kW.

Activities at Central level

MNRE has provided a budget estimate of Rs. 7.50 crore for the FY of 2018-19 for wind power

under Off-grid/Distributed and Decentralised Renewable Power. But MNRE has clarified that

the budget allocation is only for clearing pending liabilities. Small wind energy and hybrid

systems program is being discontinued from this financial year.

MNRE has also proposed to have a “Test and Design & Development lab facility” for small wind

turbine in the year of 2018-19.

Also, MNRE had issued “List of Empanelment of Small Wind Turbine” in 2016. The models

included in the list are given below:

Sr. No.

Indian/ Foreign manufacturer Models Validity date

1 Spitzen Energy Solutions (India) Pvt. Ltd. Passaat 01.04.2017

2 Spitzen Energy Solutions (India) Pvt. Ltd. Montana 01.04.2017

3 Spitzen Energy Solutions (India) Pvt. Ltd. Montana 01.10.2017

4 Supernova Technologies Pvt. Ltd. SNT 6 01.04.2017

5 Unitron Energy System Pvt. Ltd., UE 33 01.04.2017

6 Unitron Energy System Pvt. Ltd., UE 42 Plus 01.04.2017

7 WiSH Energy Solutions Private Limited (Formerly Luminous Renewable Energy Solutions Private Limited)

Whisper 200 01.04.2017

8 WiSH Energy Solutions Private Limited (Formerly Luminous Renewable Energy Solutions Private Limited)

Luminous

Whisper 500

01.04.2017

9 WiSH Energy Solutions Private Limited (Formerly Luminous Renewable Energy Solutions Private Limited)

WINDISTA R 4500

01.10.2018

10 XZERES Corp: Rep Office: Skystream 3.7 01.04.2017

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11 XZERES Corp: Rep Office: 442SR 01.10.2017

12 Bergey WindPower Co Excel 10 01.10.2017

13 Eveready Diversified Products (Pty) Ltd. e400nb 01.10.2017

Apart from MNRE, NIWE has provided testing services to 16 small wind turbines in last 3 years.

In order to support the strong development of a small wind turbine industry, NIWE with the

support of MNRE has already established a Small Wind Turbine Laboratory at NIWE and has

conducted special training course for National and International participants.

Apart from this, there is incentive for this segment under GST rate. GST rate for wind mills and

wind operated electricity generator (including spare parts for their manufacture) is 5%.

Small wind energy and hybrid systems programme was in place through MNRE since 1994,

which is discontinued from this financial year. Under modified scheme for 2012-17, CFA was Rs.

1 lakh per kW, available only to community users. The objective of this program was to develop

technology and promote applications of water pumping windmills and aerogenerators/ wind-

solar hybrid systems.

Some key points for this scheme are as follows:

o The rated capacity of individual aerogenerators covered under the programme will be up to a

maximum of 100 kW, however, MNRE support for installation of aerogenerators wil l be

restricted to a maximum total capacity of 10 kW (project capacity). Both imported &

indigenously manufactured/assembled aerogenerators are covered under the programme.

o Only the MNRE empanelled models of the aerogenerators will be eligible for financia l

support under the scheme.

o The rated capacity of individual aerogenerator covered under the program will be upto a

maximum of 100kW, however, MNRE support for installation of a Wind–Solar Hybrid

system will be restricted to a maximum capacity of 50kW (system capacity). The wind

component of the hybrid system has to be at least 60% of the total capacity.

R&D projects under MNRE

S. No

Sanction Date

Implementing institution/ Organization

Title of the project Duration Completion date

Total Project cost and MNRE contribution sanctioned (Rs. In

Lakhs)

1 (19.12.2014) SSN college of Engineering, A Novel Fused Converter for Wind-PV Hybrid System to Power Rural

Telephony

2 years 20.12.2016 Total project cost - Rs.34.00 MNRE share -

Rs.34.00

2 (07.08.2014) Institute for Energy Studies; Anna University;

Investigations on small

capacity wind turbine with compressed air energy storage system

2 years 08.08.2016 Total project cost - Rs. 45.31 MNRE share - Rs.

45.31

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3 (22.12.2014) department; Hindustan

Institute of Technology & Science;

Hybrid Energy

Management using Cyber – Physical Controller” for real time EMS of Micro

grid Application

2 years 23.12.2016 Total project cost - Rs.

35.95 MNRE share - Rs. 35.95

4 (19.12.2014) Professor, Department of Mechanical Engineering, RV

College of Engineering,

Design and Development of An Array of Low Velocity Vertical Axis

Small Wind Turbine.

2 years 20.12.2016 Total project cost - Rs. 30.00 MNRE share - Rs.

20.00

5 (30.12.2014) Associate Professor,

Department of Mechanical Engineering, Hindustan

University,

Design and

Development of 1kW Hybrid Vertical Axis Wind Turbine System for low wind speed

regimes

2 years 31.12.2016 Total project cost - Rs.

28.61 MNRE share - Rs. 28.61

6 (18.12.2014) Department of Aeronautical Engineering; PARK College of

Engineering &Technology Dept. of Aerospace

Engineering

Design and development of a gridinteractive 3kW class

2 years 19.12.2016 Total project cost - Rs. 26.80 MNRE share - Rs.

18.76

7 (19.12.2014) Professor, Banari Amman Institute of Technology

Sathyamangalam,

An Optimal Design of Axial Flux Permanent Magnet Generator for

Low Speed Direct Drive Wind Turbine Applications

2 years 20.12.2016 Total project cost - Rs. 23.00 MNRE share - Rs.

17.25

8 (16.09.2014) Technical Advisor, M/s.

Alpha Powerin collaboration with IIT, Madras

Design and

Development of efficient Small Wind Mill of 5 kw Capacity for generating

Maximum / Optimum Energy for a given period (ONE YEAR)

2 years 17.09.2016 Total project cost - Rs.

32.81 MNRE share - Rs. 16.40

9 (10.11.2014) (Managing Director), Spitzen Energy Solutions (India)

Private Limited

Design, Development of 3 kW small Wind Aero-generator and

Wind charge controller

1 year 11.11.2015 Total project cost - Rs. 26.58 MNRE share - Rs.

13.00

10 (30.12.2014) Professor, VIT University, Development and Installation of Micro Thruster augmented Wind power

Generator using a 200kW MICON Power Plant at C-WET facility,

Kayathar

2 years 31.12.2016 Total project cost - Rs. 91.96 MNRE share - Rs.

91.96

Standards for small wind (at Global Level)

Country Standard

International IEC 61400 Canada Canadian Wind Turbine Codes and Standards Japan JSWTA Standard (JSWTA 0001:2013. Revised 2013.06.01) Netherlands Regeling Groencertificaten Elektriciteitswet

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United Kingdom RenewableUK Small Wind Turbine Standard (formerly BWEA Small Wind Turbine Performance and

Safety Standard) United States of America

AWEA Small Wind Turbine Performance and Safety Standard

Resource Assessment in India

MNRE launched a National Programme of Wind Resource Assessment way back in 1986 using dedicated

20/25m tall masts and automated instrumentation, especially in known windy states. In 2003 the

programme was rechristened to Wind Resource Assessment in uncovered /new areas to enable to cover

those areas or states hitherto uncovered in the earlier programmes. Under this programme fifty metre tall

tubular masts were employed with speed and direction sensors at 10, 30 and 50 m agl (above ground

level).

NIWE has dedicated 20/25/30/50m guyed masts with multilevel instrumentation under its Wind

Resource Assessment and Offshore Project. Under this project, NIWE monitored wind speed and

direction at 794 sites in the country.

Apart from NIWE, private players are also allowed to do resource assessment on their own.

Offshore wind energy related data can be collected by any offshore wind developer only with prior

permission of NIWE/ MNRE. For this, guidelines have been issued by ministry way back in 2008.

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NIWE prepared GIS based wind speed map of India based on meso-micro coupled modelling

methodology. NIWE has put on its portal the Wind Speed Map of India at 20 meter above ground level

on online Geographic Information System (GIS) platform. High wind speed states (at 20 m agl) are

mainly J&K and Tamil Nadu. Other prominent states are Gujarat, Maharashtra, Karnataka, Rajasthan,

West Bengal, Telangana and Andhra Pradesh.

Way Forward/ Recommendations:

With the target of 175 GW of RE by 2022, GoI has given an impetus to renewable energy sector. The target

include 60 GW from wind energy. To understand this better, the target is for large wind systems, as there

is no separate target for small wind systems, unlike in case off solar sector (separate target for solar

rooftop systems). This itself gives an insight on government thinking and thrust on small wind systems.

Energy experts don’t deny importance of solar-wind hybrids in future, but the thrust for just solar

rooftop system at decentralised level gives completely different thinking from government/

stakeholders’ side. Although its implementation lags behind the target, but the initiatives and incentives

in this segment will bear fruits in coming future. Same can’t be said for small wind segment. At present,

incentives and initiatives from government side for this segment seems miniscule. Need to promote small

wind systems at same or atleast similar thrust can not be neglected for clean and greener future.

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Net metering for small wind segment can be initiated at state level, but involvement of government

agencies including discoms for awareness creation is much need for better adoption of small wind

systems in India.

In addition to this, introducing the concept of feed-in-tariff or generation-based incentives can be fruitful.

As per Wind - Solar Hybrid Energy Production Analysis Report (NIWE, Sept., 2016), the generated wind

energy production can be increased by, 49% to 84% of wind generation by hybridization with equal MWe

of solar capacity depending on the site specific conditions of wind and solar seasonal resource. An

average of 64% increase in hybrid energy production can be realized with 1MW Solar capacity addition to

1MW Wind in windy site. (NIWE) This report itself proves benefits associated with solar-wind hybrid

systems. So, thrust for the same at small scale can be even more beneficial, provided proper resource

assessment is done for the sites. This also means need of integration of EPC provider of solar and wind in

future. Also, technical expertise need to be enhanced for this.

Just like solar-wind hybrid policy by MNRE for utility scale projects, there is a need to have state-specific

solar-wind hybrid policy, which promote installation of solar rooftop-small wind systems at atleast

community level/ commercial level/ industrial level. For this, state government and even local

governments can take lead and drive these segments.

RPO in the field of small wind-solar rooftop hybrid systems can be introduced for windy states.

Furthermore, financing facility for small wind turbine and categorising them as home loan/ personal

loan can be a step for further promotion.

Also, market need to be expanded for better adoption. This can be a gradual process, but initiative in

form of empanelment and wider acceptability for technological improvement are to be done. Incentives

for manufacturing and exporting can help in increasing manufacturing capability at country level. Market

forces will also drive reduction in the small wind system cost, making it more affordable.

A long path is yet to follow, but certainly small wind segment will make its way and play an important

role along with solar rooftop.

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Know a Company- Vaata Smart Ltd.

Small Wind turbine segment is in nascent stage. In order to promote or to create mass awareness more

and more focus in needed from govt side as well as from private sector.

Just like solar rooftop adoption, small wind turbine also needs the same attention. One of the major reasons of mass adoption of solar rooftop is economic and financial benefit of system to consumer. With

passing days, solar rooftop has seen reduction in system cost and better efficiency of the system. The

same is wanted from the small wind turbine.

In this new segment “Know a Company“ we like to tell you all about one such firm which is doing Research and Development in this segment with a focus to tap this segment and to provide a n efficient

solution which will help the segment to gain its momentum.

Vaata Smart Ltd is an Indian company, incorporated in 2007, with a focus on Renewable Energy. It is

located in Chennai. The company is aiming to offer the most essential need - “Green Renewable Energy” for the common man.

Know Top Official of Company:

Chairman of Company: Mr. L. Sukumar

Managing Director: Mrs. P. Sucharitha

Promoter & Chief R&D: Mr. V.R. Raghunathan, An Electronics Engineer from IISC, Bangalore, VRR heads an inspired team that designs and builds SMART.

In the field of R&D segment, Company has 38 patents specifically in vertical axis wind turbine, out of

which 15 are granted by Government of India.

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Currently company is offering the following products: 1. SMART (vertical axis wind turbine) 2. VFD (Variable Frequency Drive)

3. Vaata Wind Data Logger

4. SMART LED Light

The company is ISO 9001:2015, for design, manfuacturing and installation of Vertical Axis Wind Turbine.

Company Website: http://www.vaata.com/

Company Linkedin page: https://www.linkedin.com/company/vaata-smart-ltd/

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Vaata SMART Ltd. accelerating the small wind segment

Mr. V.R. Deepak is the Technical Director of Vaata Smart Limited. He heads the Technical

department and has been associated with Vaata since 2013; and heading the Product

Management, Production, Planning and Information Technology wings. He spearheaded the

implementation of modern tools like SAP and PDM to equip Vaata for mass manufacturing in

the near future.

Small wind turbine segment is a grey area and almost nil focus was given by MNRE.

Inergystat believes that this segment has a great potential and need to be focused. In

order to get insight of the segment we interviewed Mr. V. R. Deepak of Vaata Smart

Ltd., a R&D firm which have developed SMART small wind turbine.

Tell us something about our company and its presence in India.

Vaata is primarily an R&D company involved in the research of a small wind turbine by

the name of SMART. Vaata has completed development and is now in the beginning of

production phase.

Currently SMART is running approx. 27.5 kW capacity plants in Tirunelveli,

Thoothukudi and Kanyakumari Districts of Tamil Nadu and has given great result.

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So what makes SMART different from other small wind turbine available in market?

SMART is designed from the ground up completely in India i.e. “Made in India turbine

for making India greener”. SMART balances performance and cost in a way that has

never been achieved before. Our low cost wind turbine is designed with the common

man at the center of the design process.

SMART taps all the advantages of the Vertical Axis design. SMART includes a

groundbreaking power transmission system for efficient power generation and unique

speed control system to safely control speed. It uses lift principle which is usually used

in Large horizontal axis wind turbine and first of its kind Aerodynamic VAWT Braking.

SMART has been designed for low maintenance and long life and can also operate in

areas with low wind speeds.

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On an average wind speed of 6 to 8 m/s SMART generates 10,000 to 12,000 units per

year

Mr. Deepak also shared a video of SMART Turbine with us which explains the working

of turbine, the link of the video is here.

For which category of consumers, do you feel your SMART turbine can work perfect

and save electricity bill?

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SMART works effectively for everyone who has access to good wind. Farmers,

Industrialists, homeowners, existing wind farm owners, all of these consumers can use

our wind turbine.

Recently we got a project from Farmers Cooperative Textile mill located in district of

Gadag, Karnataka for 150 small wind turbines and on November we have done Bhoomi

Poojan.

What according to you are future prospects of small wind turbine segment in India?

What makes small wind turbines great for consumers is the incremental way in which

they can implement the technology. Unlike large wind turbines, consumers can start

small, realize savings, and then install more wind turbines. Small wind turbines offer

more than 25% returns, which mean the payback period is less than 4 years. The future

of small wild is extremely promising.

What all benefits does small wind segment get from government side?

In India, the government has not enforced or announced any policies for the small wind

sector.

Currently, any wind turbine under 225 kW does not come under the purview of the

government (CWET). However, in countries like US, UK, Japan and many EU countries,

there are policies in place which are beneficial to the customer. We are expecting a

completely new set of policies to be released by the Government soon.

What are the issues that small wind turbine segment face at present in India? What

needs to be done for bright future of this segment by various stakeholders?

Some of the issues are:

Regulatory issues: Currently, no policies or guidelines are in place for:

o Technical compliance

o Net metering

o Rooftop

o Captive Consumption

o Feed-in to grid

o Depreciation rates

o Subsidies

Banker Problem: No funding available for projects

Market Problems: Very little awareness among customers

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OEM Problems: No reliable product in the market

The government needs to introduce and implement policies. Banks should offer

funding the way they do for solar.

What are your company’s future plans?

Capturing Indian market by end of 2019, and start exporting our SMART turbine by

2020.

We are targeting to install 300 kW by the end of FY 2019, and around 800 kW by the end

of FY 2020. We will be going international in 2019 as well.

Currently, we are focusing on expanding our presence in Karnataka, Gujarat, Andhra

Pradesh, Telangana, Rajasthan and Tamil Nadu.

What other sustainable products does your organization offer and is planning for

future?

Currently, we manufacture one model i.e. the 5.5 kW Smart Small Wind Turbine. Now,

we are developing a 15 kW version of SMART turbine which will be ready in another 6

months.

Do you think offering power purchase with net metering or some other procurement

tool can work for this emerging segment?

Net metering will make the wind turbine an effective solution for people with energy

requirement. With support from the banks, net metering and power purchase model

will work wonders for the market.

As we know wind speed increases with the height from ground, can you tell us what

is minimum wind speed required for your turbine to generate power and what is cut-

off speed for the turbine?

The minimum wind speed required is 4.5m/s while the maximum speed at which the

turbine shuts off is 15m/s.

India is shifting its focus on offshore wind projects. Seeing the large coastline and

large number of islands, this seems a good option. What role can small wind turbine

segment play in tapping potential in this sphere?

Going offshore is not the priority now for small wind turbines. Cost of off-shore projects

makes it unviable to explore the opportunity. Larger wind turbines are going offshore

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due to the lack of new project opportunities. Almost all Class A and Class B wind sites

have been tapped in India, whereas that is not the case for small wind turbine. In fact,

installing small wind turbines under the larger wind turbines in Class A sites is one of

our priorities, as this makes the existing wind farms more productive without increased

costs in infrastructure.

Do you think small wind technology can be seen as an alternative for solar rooftop

sector? Or will it offer a complementary role, when integrated with solar projects?

Great question and you have partly answered it yourself. Like the saying goes, “The

whole is greater than the sum of its parts.” Solar alone or wind alone will not be nearly

as effective as hybrid. Solar produces power from 9 in the morning to 4 in the afternoon,

while wind produces power through the day. However, when combined, the hybrid

solution offers the best solution for the user.

Plug and play has been a USP for solar PV technology. Do you think wind turbines

can also follow same pattern for wider acceptability among consumers? Or else what

can be USP for small wind technology segment?

Our SMART wind turbine is designed to be a plug and play technology. Our turbine

produces grid rated power, which is 415 Volts at 50 hertz. There is no need for inverters

and transformers. In fact, our turbine is more plug and play than solar, in the sense that

it produces AC power and does not need an inverter.

About commissioning time, it takes approx. 22 days which include 21 days for the

concrete foundation to be laid, and for the concrete to set in (curing), and a few hours

for the team to erect the turbine onto the foundation and assemble it.

There have been environmental issues regarding impact on birds and mammals due

to noise produced by turbine system. Do you think this is also an issue with small

wind segment?

Small wind turbines are mounted closer to the ground, hence they are more bird friendly and have a very minimal impact on wildlife. Taking into consideration the pollution small wind turbines prevent from being allowed into the atmosphere and looking at the issue from a more holistic angle, Small wind turbines have a lot to contribute. Noise impact is a common concern for wind turbines, in contrast, the noise level of SMART is very low. To get an idea on how quiet SMART is, let's compare noise levels of different things with SMART.

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Source: http://www.vaata.com/blog/2018/6/26/sound-level-comparison

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Company Updates

A subsidiary of Adani power, Udupi Power Corporation (UPCL) is planning to add 1600 MW of power

at its thermal plant in Udupi by 2020. The company has signed an MoU with Karnataka Govt. for

this.

Suzlon has commissioned India’s tallest Wind Turbine Generator (WTG) with Hybrid Concrete

Tubular (HCT) tower at Tirunelveli, Tamil Nadu. Suzlon has already pioneered in Hybrid Lattice Tower

(HLT).

Apart from this, Suzlon is also looking to monetise some of its assets in order to reduce 40-50% of its

debt by March 2019. It has restructured its loans in past and had long-term debt of around INR 71.4 bn

as of end June 2018.

GE T&D India has completed the acquisition of Alstom’s minority ownership of the three

joint ventures (JVs) that were established at closing of the acquisition of Alstom’s Power and Grid

assets in November 2015.

Azure Power has achieved financial closure of a deal worth USD 58 Mn for its 100 MW

solar power project at Pavagada, Karnataka, ahead of its time. The solar project is at Pavagada Solar

Park, being developed by Karnataka Solar Power Development Corporation Ltd.

Furthermore, Azure Power has raised over USD 400 Mn from equity and debt financings since

June 30, 2018.

Essar Power has announced completion of its Mahan Power Plant with commissioning of plant’s

2nd unit of 600 MW. in last one year, company has commissioned more than 1500 MW of operational

capacity and 465 km of transmission lines.

A RPG group company, KEC International Ltd. has secured new turnkey order worth INR 1496

crore of 400 KV Meghnaghat-Madunaghat Double circuit Transmission Line in

Bangladesh.

BHEL has bagged four orders worth INR 2900 crore for emission control equipment from

NTPC. BHEL has ongoing technology collaboration with Mitsubishi-Hitachi Power Systems (MHPS) for

FGD systems.

As per media reports, ABB is exploring options to sell its Power Grids business. Power Grids is

its second-largest but lowest-margin business, hence, the company is looking for separating it from

other businesses.

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Malaysia’s Petroliam Nasional Berhad (Petronas), Abu Dhabi based energy company Masdar Clean

Energy and Singaporean alternate energy firm Sembcorp are in talks to acquire up to 30% of

Hero Future Energies. Hero Future is looking to raise as much as $300 million, valuing the renewable

energy firm at around $1 billion.

Fotowatio Renewable Ventures (FRV) has announced opening of two solar plants that are part of

138 MW DC Andhra Pradesh Solar Farm, its first solar project in India. The project was awarded to FRV

in reverse auction by SECI in 2016.

Rural Electrification Corporation (REC) has launched Global Medium-Term Note Program

(GMTN) on Global Securities Market. Last year, REC raised USD 450 Mn through the sale of green

bonds on London Stock Exchange.

Jinko Solar has been recognised as a Top Performer on DNV GL’s 2018 PV Module Reliability

Scorecard for the fourth consecutive year, which tested over 300 bills of material (BOM) for more

than 50 module manufacturers.

Oriano Solar has emerged as fourth fastest growing technology company pan India on the

Deloitte Technology Fast 50 India 2018, a ranking of the 50 fastest growing technology companies in

India. Over three years, Oriano Solar has grown 3431%. Oriano has been fastest growing technology

company in the state of Maharashtra. Earlier, Oriano was awarded #1 'Solar PV EPC company of the year

2018 (50-100 MW)' by India Solar Week Awards. Prior, Oriano was selected as 'Energy Startup of the

Year 2016' Award from Entrepreneur India and 'TECH30' company of the year 2016 by Yourstory.com.

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Tender Result

NTPC 33 MW Floating Solar tender result was announced on October 17, 2018

Sr. No. Name of Bidder Tariff (INR/kWh)

L-1 S&W 2.33 L-2 BHEL 2.34 L-3 MSPL 2.42

UPNEDA 500 MW solar tender result was announced on October 10, 2018

Sr. No. Name of Bidder Tariff (INR/kWh) Quantity allocated

L-1 Maheshwari Mining & Energy Pvt. Ltd.

3.17 20

L-2 NTPC Limited (RE) 3.17 140 L-3 Maheshwari Mining & Energy

Pvt. Ltd. 3.19 20

L-4 Mahoba Solar (UP) Pvt. Ltd. 3.19 50 L-5 Sukhbir Agro Energy Ltd. 3.20 50 L-6 Talettutavi Solar Project Five

Pvt. Ltd. 3.21 50

L-7 NTPC Limited (RE) 3.21 20 L-8 Eden Renewable Jasmine Pvt.

Ltd. 3.21 50

L-9 Mahoba Solar (UP) Pvt. Ltd. 3.22 50 L-10 Giriraj Renewable Pvt. Ltd. 3.23 50

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Regulatory Updates

India

Instructions regarding submission of Proposals and Project Completion Reports for

Standalone Solar Power Plants under Off-grid and Decentralized Solar PV

Applications Programme in Phase III for Financial Years 2018-19 and 2019-20

Issued by MNRE on 9.10.18

Nomination of National Load Despatch Center as Implementing Agency.National Load

Despatch Center

Order issued by CERC on 8.10.18

Petition under Section 79 of the Electricity Act, 2003 read with statutory framework

governing procurement of power through competitive bidding and Article 13.2 (b) of

the Power Purchase Agreement dated 7.8.2007 executed between Sasan Power

Limited and the Procurers for compensation due to Change in Law impacting

revenues and costs during the Operating Period.Sasan Power Limited.

Order issued by CERC on 8.10.18

Petitioner: Sasan Power Ltd.

What was the demand of petitioner?

Declaring MoEFCC Notification dated 7.12.2015 related to Environment (Protection) Amdt Rules, 2015 as Change in Law events

Approve the methodology/mechanism for recovery of the amounts incurred on account of the Change in Law events

Approve in-principle project cost based on the benchmark cost basis, subject to true up/final

approval of Project Cost, to enable it to avail financing as well as ensure timely implementation of required corrective measures to ensure compliance as per the revised norms and devise a

mechanism for payment of compensation by the Procurers to the Petitioner on account of the aforesaid Change in Law event in terms of and based on the principles under Article 13 read with

Article 13.2 (b) of the PPA

Pass any such other and further reliefs as CERC deems just and proper in the nature and

circumstances of the present case

On 7.12.2015, Ministry of Environment, Forest and Climate Change Government of India (MoEFCC) has notified the Environment (Protection) Amendment Rules, 2015 which mandatorily requires all thermal

power plants to comply with the revised norms on or before 6.12.2017 i.e. within two years of MoEFCC Notification (the date has since been changed to 2022). This notification deals with water consumption in

cooling tower of plants and emission norms for Thermal power plants.

Impact of MoEF Notification 2015 on Petitioner

All existing Cooling Tower based thermal power plants to reduce specific water consumption up to Maximum of 3.5 m3 /MWh.

Emission limit for Particulate Matter is 50 mg/Nm3 instead of 100 mg/Nm3 under the 1986

Rules

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Oxides of Nitrogen emission limited to 300 mg/Nm3

Sulphur Dioxide emission limited to 200 mg/Nm3

Mercury emission limited to 0.03 mg/Nm3

This implies need to install additional equipment/ systems for compliance with revised norms of Sulphur

Dioxide below 200 mg/Nm3, particulate matter emission limited to 50 mg/Nm3 , Oxides of Nitrogen emission limited to 300 mg/Nm3, maximum water consumption of all existing cooling towers based

plants to be reduced to 3.5 m3 /MWh, and Mercury emission limited to 0.03 mg/Nm3. This will result in:

Expenditure on account of installation of equipment required to meet the revised norms.

Increase in operating costs on account of operating the equipment in order to meet the revised norms.

Increase in auxiliary consumption of the power station due to installation of additional equipment.

Disruption in power generation during the installation phase of the above equipment

The Petitioner has submitted that MoEFCC Notification, 2015, which has been issued by an Indian Government Instrumentality and which has amended the existing statutory Rules of 1 986 subsequent to

the cutoff date of 21.7.2007 amounts to Change in law. The Petitioner has submitted that it would be required to incur substantial cost and have reduction in revenue during the operating period on account

of compliance with the revised norms and in terms of Article 13.2 of the PPA, the Petitioner is required to

be restored to the same economic position and in terms of Article 13.2 (b) of the PPA, such compensation has to be on pass-through basis.

Petitioner’s submission: Cost of installation of FGD system is estimated to be Rs. 4500 crore apart from huge amount of limestone

and other raw materials, including additional water requirement, recurring cost towards disposal of

waste and by-products and increase in Auxiliary Power Consumption of the station by 2%. Such huge expenditure has the impact of grossing up the tariff and reduction in the contracted capacity allocated to

the Procurers. Views and Decision by CERC Issue No. 1: Whether MoEFCC Notification qualifies to be considered as an event of Change in Law in

terms of the PPA dated 7.8.2007 between the Petitioner and the Procurer-Respondents?

Issue No. 2: If so, whether the requirement of notice as per the provisions of Article 13 of the PPA have been complied with by the Petitioner?

Issue No. 3: Whether the in-principle approval can be granted for implementation of the event covered under Change in Law in terms of the PPA?

Issue No. 4: Whether any guidelines are to be issued for implementation of MoEFCC Notification, 2015?

Since the MoEFCC Notification which seeks to revise the environmental norms prescribed in the

Environment (Protection) Rules, 1986 and has been issued after the cut-off date, the revised environmental norms qualify as events under change in law in terms of the PPA dated 7.8.2007. Sasan

UMPP has achieved the commercial operation of the generating station on 27.3.2015 which is prior to the MoEFCC Notification. Therefore, the change in law events brought about through the MoEFCC

Notification shall qualify as change in law during the operating period in terms of the PPA dated 7.8.2007.

Even the letter of MoP dated 30.05.2018 has identified nature of this notification as change in law with few exceptions. CERC considers that claims by petitioner do not fall under exceptions.

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CERC’s Views and decision on Issue 1: Case of the Petitioner for installation of FGD at Sasan UMPP is covered under Change in Law in terms of the PPA dated 7.8.2007.

CERC’s Views and decision on Issue 2: Petitioner has partially complied with the requirement of notice under Article 13.3 of the PPA as it issued a Change in Law Notice to procurers of power from Sasan

UMPP vide its letter dated 18.03.16 in terms of Article 13.3 of PPA.

CERC’s Views and decision on Issue 3: As per provisions of PPA, CERC can also determine increase or decrease in revenues or cost to Seller on account of operation of change in law keeping in view restitution

principle and effective dates from which such compensation can be paid. There is no concept of in-principle approval in the PPA, and we find no reason to accord such approval as prayed for by the Petitioner. Change in Law will be applicable on those items of cost or revenue which the Petitioner has

claimed and is approved by the Commission. The Petitioner shall implement the revised environmental norms to comply with the MoEFCC Notification, 2015 and approach the Commission for determination

of the increase in cost or/and revenue expenditure on account of implementation of such Change in Law

in terms of guidelines to be prepared by CEA. CERC’s Views and decision on Issue 4: A mechanism also needs to be devised for addressing the issues

like identification of suitable technology for each plant for implementation of ECS, its impact on operational parameters and on tariff, and the recovery of additional capital and operational cost. The

Commission in the order dated 20.7.2018 in Petition No. 98/MP/2017 has directed the CEA to prepare

guidelines specifying the following: (a) Suitable technology with model specification for each plant, with regard to implementation of new

norms. (b) Operational parameters of the thermal power plants such as auxiliary consumption, O&M expenses,

Station Heat Rate etc., consequent to the implementation of ECS. (c) Norms of consumption of water, limestone, ammonia etc., required for operation of the plants after

implementation of ECS.

(d) Any other detailed technical inputs. The Petitioner is accordingly directed to implement the revised norms for Sasan UMPP in consultation

with CEA. Implication of the order: With the passage of order, it is clear that there will be pass through of investment made by petitioner to

procurers for complying with the norms of sulphur dioxide and oxides of nitrogen mainly. Hence, the

power supply cost will increase for the consumers of these discoms in state of MP, UP, Rajasthan, Delhi, Punjab, Haryana and Uttarakhand.

Petition under Section 79 of the Electricity Act, 2003 read with Article 12 of the

Power Purchase Agreements executed between the Petitioners and Respondents, for

seeking approval of “Change in Law‟ events due to enactment of the “GST Laws‟.

ACME Bhiwadi Solar Power Private Limited.

Order issued by CERC on 9.10.18

Submission by Petitioners:

The impact due to introduction of GST of around 11.4% of the cost over and above the initial envisaged project cost has imposed severe hardship to the Petitioner and loss of economic value. The increased cost can be recovered through tariff, which is allowable to be recovered from the

Respondent under Article 12 of the PPA.

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With introduction of GST, several exemptions provided to solar sector has been taken away and there is a steep increase in taxes from zero upto 28%, thus increasing capital cost of project for

petitioners significantly. This has made tariff quoted at time of submission of bid unviable.

Item Impact of GST law on capital cost of equipment (%)

PV module 5%

Land cost 0%

Civil and general works 9%

Mounting structure 18%

Power conditioning unit 28%

Evacuation cost up to interconnection point (cables and transformers)

18%

Preliminary and pre-operative expenses including IDC

and contingency 18%

Issuance of GST law is covered by definition of “change in law” under PPAs.

Clause 6.2(4) of the Tariff Policy clearly states that any change in taxes imposed by the Central

Government after the award of bids has to be treated as „Change in Law‟ unless otherwise provided for in the power purchase agreement.

“6.2 Tariff structuring and associated issues … (4) After the award of bids, if there is any change in domestic duties, levies, cess and taxes imposed by Central Government, State Governments/Union Territories or by any Government instrumentality leading to corresponding changes in the cost, the same may be treated as “Change in Law” and may unless provided otherwise in the PPA, be allowed as pass through subject to approval of Appropriate Commission.”

Issues before CERC Issue No. 1: Whether the Commission has the jurisdiction to entertain the Petitions? Issue No. 2: Whether the promulgation of the IGST Act, 2017, the CGST Act, 2017, the Rajasthan GST Act,

2017 and the State(s)GST Act, 2017 with effect from 01.07.2017 are covered under the scope of “Change in

Law‟ under Article 12 of the Power Purchase Agreements? Issue No. 3: Whether there will be incremental impact in the cost of construction due to additional tax

burden on the Engineering, Procurement and Construction (EPC) Cost on account of promulgation of the GST Laws?

Issue No. 4: Whether there will be incremental impact on the cost of project due to additional tax burden on operation and maintenance expenses on account of promulgation of the GST Laws, since the PPAs are

for 25 years? Issue No. 5: Whether the Petitioners should be allowed adjustment in tariff in terms of Article 12 of the

PPA by increasing the tariff as prayed for in the present Petition or any other way?

Issue No. 6: Whether the claim of “Carrying Cost‟ as prayed by the Petitioners in the I.A.‟s is sustainable?

Commission views and decision: Issue 1: Commission is the appropriate commission to adjudicate upon the instant dispute. (because projects referred in the petition are conceived under composite schemes, which come under

jurisdiction of CERC)

Petition No. 188/MP/2017; 189/MP/2017; 190/MP/2017; 201/MP/2017; 202/MP/2017; 203/MP/2017; 204/MP/2017; 230/MP/2017; 231/MP/2017 and 47/MP/2018: Projects under Composite schemes

(“Scheme for Selection for 2000 MW Grid-connected Solar PV Power Projects under Phase-II, Batch-Ill JNNSM Scheme)

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Petition No. 232/MP/2017; 233/MP/2017; 13/MP/2018; 34/MP/2018: Projects under composite scheme

(Scheme for selection of 3000 MW Grid Connected Solar PV Power Projects under Phase-II, Batch-II, Tranche-I for “State Specific Bundling Scheme)

Petition No. 33/MP/2018: Projects under composite scheme (Scheme for Development of Solar Parks and Ultra Mega Units)

Energy Watchdog Judgment {2017 (14) SCC 80} Hon‟ble Supreme Court of India states :”The State Commission's jurisdiction is only where generation and supply takes place within the State. On the other hand, the moment generation and sale takes place in more than one State, the Central Commission becomes the appropriate

Commission under the Act.” Issue 2: Commission holds that the enactment of „GST laws‟ is squarely covered as “Change in Law‟

under the first, second and sixth bullet in seriatim of Article 12 of the PPA. Issue 3 & 4: GST in the context of the present petitions is applicable on all petitions except in the Petition

where “the actual date of Commissioning‟ of the generating company as per the respective PPA is prior

to 01.07.2017.

Commission directs that the Petitioners have to exhibit clear and one to one correlation between the projects, the supply of goods or services and the invoices raised by the supplier of goods and services

backed by auditor certificate. The certification should include “Certified that all the norms as per “GST Laws‟ have been complied with by the Petitioner and the claim of the amount being made by the

Petitioner are correct as per the effective taxes in pre and post “GST regime‟. The Petitioners should then

make available to the Respondents, the relevant documents along with the auditor certification who may reconcile the claim and then pay the amount so claimed to the SPD w.e.f. 01.07.2017 qua EPC cost on the

basis of the auditor’s certificate as per methodology suggested by CERC in the order. The amount determined as payable above by Petitioners shall on “back to back‟ basis be paid by DISCOMS to

intermediary nodal agency under the respective “Power Sale Agreements‟.

The Commission observes that Article 17.1(c) provides that the SPD shall bear all additional capital

expenditure and/or interest and additional costs incurred to obtain any funding to the extent of the Rs. 2.00 Crores (Threshold Limit). Further, the Threshold Limit shall apply to each event constituting a

“Change in Law‟ and shall not be applied on a cumulative basis. The Commission is of the view that the enactment of “GST Law‟ constitutes as one single event under the definition of “Change in Law‟ and the

threshold limit of Rs. 2,00,00,000/- is to be applicable accordingly.

Claim of the Petitioners on account of additional tax burden on operation and maintenance expenses (if

any), is not maintainable.

Issue 5: The Commission is of the view that the basic tariff should not be altered. Also in view of the fact that the quantum of payment is not large, the relief, if any, for “Change in Law‟ should be allowed as a

separate element on one time basis in a time bound manner. The Petitioners shall raise its claim based on discussions in this Order and the same shall be paid by the Respondents within sixty days of the date of

this Order failing which it will attract late payment surcharge as provided under PPA.

Issue 6: CERC has already said that the claim is to be raised as one-time upfront lump sum payment which becomes due on the sixtieth date from the date of this Order by the Commission and after that the

“late payment surcharge‟ as provided under PPAs is to be levied. Therefore, the Commission is of the view that the claim regarding separate “Carrying Cost‟ in the instant petitions is not attracted.

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Petition under Regulation 5 read with Regulations 14 & 15 of the Central Electricity

Regulatory Commission (Terms and Conditions for recognition and issuance of

Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2010

seeking directions for issuance of RECs, updation of name and Re- registration of the

Petitioner under the Renewable Energy Certificate Mechanism. M/s Tadas Wind

Energy Private Limited. Order issued by CERC on 9.10.18

Regulatory Compliance application in compliance of Regulation 7(2) and 24 of the

Central Electricity Regulatory Commission (Power Market) Regulations, 2010 and

Commission’s order dated 11.08.2016 in Petition No. 95/RC/2014.India Energy

Exchange Ltd.

Order issued by CERC on 9.10.18

Proposed amendments in its Business Rules, Rules and Byelaws by IEX

1. Minimum period of Bank Guarantee towards additional security deposit of Members may be

revised to 3 months in place of 1 year Approved by CERC. Earlier the minimum period was 1 year.

2. Opening of Client Account by Trading Member in the same bank may be made mandatory to

increase transparency in transactions and enable tracking trail of the money whenever required CERC has allowed opening of client account, but it is not mandatory to open client account in

same bank as that of settlement account.

3. Requirement of issuance of 'Contract Note' by Members of the Exchange may be done away with

as necessary trade details are covered in the Daily Obligation Report Requirement has been retained by CERC. The provisions regarding Contract note are to be

retained. IEX has to continue with the existing arrangement in which the Member is required to communicate with their clients using Contract Note specified in Annexure V of the Business

Rules.

4. Provisions related to applicability of Membership Service Charge on Trader and Professional

Members of the Exchange may be incorporated to give more clarity.

5. Provisions regarding subordinate service providers may be introduced to give clarity on the ceiling requirement of Member Service Charge of 0.75% over the entire chain

Approved by CERC

6. Discretion of the Exchange may be allowed for allotment to customers during Real Time

Curtailment to ensure that least number of customers are affected during the curtailment. CERC has asked to continue with the existing practice of real time curtailment on pro-rata basis.

Considering difficulties in implementing curtailment across all portfolios on pro-rata basis, CERC has proposed a mechanism:

o Arrange the portfolios in descending order (in terms of bid buy/sell quantity) o Carry out the curtailment on a pro-rata basis up to the portfolio where the cumulative

quantity becomes double the quantity required to be curtailed.

o In case the curtailment is to be carried out for 50% or more than that of the total quantity bid then curtailment shall be carried out in all the portfolios on a pro-rata basis.

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7. Client Registration Form may be removed from the Business Rules so that the necessary changes

can be made as and when required by the Exchange through Circulars. CERC has retained provision of client registration form as per Schedule III and self registration

form prescribed by Exchange. CERC has asked IEX to incorporate provisions which would allow exchange to bring modification in Client Registration Form through Circulars with prior

intimation to the Commission. Also, the approval on the changes made in the Client Registration Form to be taken subsequently along with other changes proposed in the Business Rules.

8. Modification or cancellation of orders after market hours by Exchange may be allowed on request of Members due to reasons like error in punching of bid, plant shutdown, cancellation or

modification of NOC by SLDC or due to any other statutory requirements CERC has asked to replace market hours with trading hours. IEX has to clearly specify that

request for any kind of modification shall not be entertained after the trading hours. Incorporate the provision to limit the request for cancellation (post trading hours) of a Member to 5 times in a

year so as to elicit a disciplined bidding behavior from the Members.

9. Penal provision may be imposed on buyers in case of their failure to provide SLDC approval in

line with the provisions existing for the Seller in Business Rules Approved by CERC

10. Modification proposed in Margins for TAM Contracts:

o Day Ahead Contingency Contract: Additional 5% extra margin may be added to the

initial margin of the buyer so as to cover various charges viz. transmission charges , exchange fees etc.

o Daily Contract: Additional margin of 50% of the total trade value may be incorporated in addition to the reference of risk curve provision available in Business Rules to bring

further clarity. o Weekly Contract: Additional margin at 50% of the total trade value along with another

half days margin towards various charges may be collected from the buyer in single

trench instead of two separate trenches as it is existing presently. I. Contract specifications may be provided for eight contracts starting from T + 2 to T + 9 to enable

delivery on T + 2, T + 3 and T + 4 contracts. II. Instead of product specific category of membership, only basic membership i.e. Proprietary,

Trader and Professional may be issued by the Exchange to give flexibility to the Members to trade in different product segments.

III. Prior intimation to Exchange instead of prior approval may be allowed in the case of Partnership Firms to ease the process

CERC has also asked IEX to continue with existing practice of partnership firm requiring

approval from the exchange for admitting new partner/change in the name.

CERC has asked IEX to incorporate the provisions for undertaking inspection of Trading Members as

directed by Commission in the Order dated 9th May, 2018 pertaining to Petition No. 12/SM/2016.

CERC has directed the Power Exchanges to conduct annual inspection of both Professional and Trader

Members through the engagement of third party conversant with the power sector. The inspection shall cover compliance with the regulations and rules of the Exchanges by the Trader Members and

Professional Members, the volume transacted by Trader Members and Professional Members, the trading margin or Member Service Charge collected by Trading Members or Professional Members, as the case

may be, and noncompliance with the regulations, if any.

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CERC has further directed the Power Exchanges to incorporate the necessary provisions with regard to

annual inspection of their members in their Rules, Business Rules and Bye Laws and submit the same for approval of the Commission.

IEX has been asked to provide the detailed procedure for inspection of Professional and Trading

Members in the Annexure approved by Audit Committee/Board.

Day Ahead Market (DAM) Segment:

Maximum number of block bids and maximum quantity per block bid shall be prescribed by the Exchange from time to time with the prior approval of the Commission.

Provisions regarding Day Ahead Market 15 minute contract specifications have been approved. Also, provisions regarding Uniform Price Step Auction and continuous trade Session in Term Ahead Market

(TAM) have also been approved.

Earlier there were 4 categories of memberships of Exchange, i.e., Proprietary, Trader, Professional and

REC Membership. Now, it will be reduced to 3 categories, removing REC membership. This is done in line to reduce the need to create product segment specific category of membership (for e.g., for REC,

ESCerts, etc.). The definition of Trader Member is modified to exactly align with the Power Marketing Regulations (PMR) for better clarity. The changes proposed by IEX have been approved.

IEX has to incorporate provisions requiring the exchange to take approval of the Commission before making any changes to the transaction fees.

During rainy seasons hydro power plant shall be given the least priority while curtailment.

Extension of validity of Renewable Energy Certificates (RECs) due to expire between

October, 2018 and March, 2019

CERC order dated 30.10.18

1,83,999 RECs were issued prior to 1.04.2017 (which includes 38651 Solar RECS and 145348 Non -solar RECs), which were to expire between Oct 2018 and March 2019. Validity of these RECs have been

extended upto 30th April 2019.

Office Memorandum - Extension of time for scheduled Commissioning Date (SCD) for

Solar Projects delayed due to non-readiness of Internal Evacuation / Transmission

system by the Solar Power Park Developer (SPPD) / Solar Park Implementation

Agency (SPIA).

MNRE Office Memorandum dated 10.10.18 It provides for penal provision in case of delay in scheduled commissioning date (SCD) of solar projects

due to non-readiness of Internal Evacuation/ Transmission system with reason solely attributable to SPPD/ SPIA. It also provides for recovery option for any such penalty levied.

Adherence to terms and conditions of NOC issued by Ministry of Defence to WTG

Operators

MNRE Circular dated 18.10.18 Wind turbine generator operators/ developers are requested to provide SCADA based remote control

systems at nearest IAF (Indian Air Force) stations for remote operation of their WTGs at earliest. Earlier this year, IAF has imposed restrictions on installation of windmills/ wind turbine generators upto

a distance of 10 km in LoS of static AD radars so that performance of IAF air defence radars is not affected.

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Extension of Self Certification Relaxation for Quality Control Order on SPV Modules,

Components and Devices Order 2017

MNRE Notification dated 12.10.18 Date extension for self certification till 31.10.18

Introduction of New Bid (order) types of Indian Energy Exchange

CERC order dated 16.10.18

IEX was seeking approval for introduction of new bid (order) types in its Day Ahead market Segment, need being due to maturity of power exchange market. It has proposed the following new bid (order)

types in the Day Ahead Market: (a) Minimum quantity block bid;

(b) Profile block bid;

(c) Minimum income condition (d) Minimum income condition with schedule stop condition

(e) Enhancement of link bids (f) Flexi bids

(g) Load gradient bid.

CERC has directed IEX to give wide publicity to proposed new bid types for inviting comments on that

and carry out detailed study.

Amendment in the methodology for use of coal by State in Private Generating Stations

(IPPs) (Case-4)

Amendment by Ministry of Power dated 25.10.18 The amendment provides for the formula to compute gross calorific value of coal at unloading point for

correction of moisture loss in case of GCV being arrived by 3rd party sampler.

Till CERC specifies any norm, a margin of 85-100 kcal/kg in GCV for pit head station and a margin of

105-120 kcal/kg in GCV for non-pit head station may be allowed. In case respective SERC specified any norms, the same may be used instead of norms as specified above or CERC norm.

Amendment to Standard Technical Specification for Retrofit of Wet Limestone Based

Flue Gas Desulphurisation (FGD) System in a typical 2*500 MW Thermal Power Plant

Amendment by CEA

Minutes of 4th meeting held on 12-7-2018 under chairmanship of Additional

Secretary (Coal) to identify additional coal / lignite blocks for allocation under rule

3(2) of the Coal Blocks Allocation Rules, 2017

Minutes of Meeting

STANDARD TENDER DOCUMENT AUCTION OF COAL MINES FOR IRON AND STEEL,

CEMENT AND CAPTIVE POWER PLANT (EXCLUDING STEEL (COKING) SECTOR)

Tender Document

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Assam

Draft AERC (Electricity Supply Code) (First Amendment), Regulations, 2018

Issued by AERC on 9.10.18

Draft Regulation

Andhra Pradesh

Order on Petition of M/s. KCT Renewable Energy Private Limited Vs Andhra Pradesh

Southern Power Distribution Company Ltd & 2 others Order by APERC on 6.10.18

First Amendment to APERC (Terms and conditions for Determination of Tariff for

Transmission of Electricity) Regulation 5 of 2005

Draft Regulation by APERC on 9.10.18. Last date to comment: 30.10.18

Common Feeder - Enhancement of CMD Limits at 11 kV and 33 kV - Amendment

Notification by APERC on 9.10.18

Chhattisgarh

Approval of power supply agreement between CSPDCL and M/s Solar Energy Corporation of

India Ltd. (SECI) for purchase of 150 MW wind power on long-term basis from wind power

projects set by SECI under guidelines for tariff based competitive bidding process notified by

Ministry of Power CSERC Order dated 25.10.18

Gujarat

Petition under Section 86(1)(b) and other applicable provisions of the Electricity Act,

2003 seeking approval of Power Purchase Agreements executed by GUVNL with Wind

Power Projects at the tariff of Rs. 3.46/unit in accordance with the approval of

Government of Gujarat and pursuant to request of various project developers for

considering the tariff of Rs. 3.46/unit discovered under competitive bidding process

initiated by SECI under MNRE Guidelines as benchmark tariff.

Order by GERC on 1.10.18

Petition seeking approval of the Gujarat Electricity Regulatory Commission for

implementation of Agriculture Demand Side Management Programme for promoting

BEE approved 5 star rated energy efficient pump sets for new agriculture connections

for FY 2018-19 in the area of Paschim Gujarat Vij Company Limited pursuant to the

GERC (Demand Side Management) Regulations,2012.

GERC order dated 23.10.18

The programme has been approved by GERC for FY 2018-19 with DSM expenditure of rs. 2.51 crore. PGVCL has been directed to carry out Measurement and Verification in consultation with manufacturers

on random basis and submit reports on quarterly basis on implementation of this DSM programme

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indicating number of agriculture pumps provided, DSM expenditure incurred, measurement and

verification carried out, energy savings, etc.

The Petitioner is also directed to submit a detailed Programme Completion Report to the Commission within three months of completion of the said Agriculture DSM Programme covering the expenses,

achievements, outcome, constraints and difficulties faced, conclusions, recommendations, lessons learnt and way forward in accordance with Regulation 18 of the GERC (Demand Side Management)

Regulations, 2012.

The Petitioner is also directed to submit DSM expenditure to be incurred for implementation of

Agriculture DSM Programme during FY 2019-20 and FY 2020-21 at the time of filing petition for Mid Term Review for ARR of FY 2019-20 and FY 2020-21 and Truing up of FY 2017-18, rather than

approaching the Commission on yearly basis for approval of Agriculture DSM programme.

The Petitioner shall claim the DSM expenditure at the time of truing up of expenses for FY 2018-19 as a

part of mechanism of Cost Recovery as per Regulation 14 of the GERC (Demand Side Management) Regulations, 2012 subject to satisfactory completion of the DSM Programme.

Petition under Section 86 and other provisions of the Electricity Act, 2003 for

implementation of ‘Suryashakti Kisan Yojna’ (SKY) notified by the Government of

Gujarat vide GR No. SLR/11/2016/2284/B1 dated 27.06.2018 and 29.09.2018 on

pilot basis, for solarisation of agriculture connections under the supply jurisdiction of

State Distribution Licensees (i.e. DGVCL, MGVCL, PGVCL and UGVCL)

GERC Order dated 29.10.18

State govt of Gujarat has notified “Suryashakti Kisan Yojna (SKY)” scheme to be implemented on pilot basis, on 137 numbers of agriculture feeders covering 12400 numbers of agriculture connections having

aggregate load of 1,42,000 HP in 33 Districts of the State.

Under Pilot scheme, it is estimated that solar PV panels of aggregate capacity of 175 MW will be installed

in the field of farmers with estimated cost of Rs. 900 Crore.

Under this scheme, the generated solar energy shall be utilized by the farmers for their irrigational requirement and surplus energy shall be injected into the grid for sale to DISCOMs at tariff of Rs.

3.50/Unit. and another Rs. 3.50/Unit will be paid by the State Government as Evacuation Based Incentive

(EBI). Participating consumers will be charged at the rate of Rs. 3.50/ unit for additional net electricity consumed by them.

Directions by GERC while allowing approval of implementation of Scheme as pilot project:

1. This scheme will be optional for participation by farmers. 2. Discoms should Designate Nodal officer at Discom level for redressal of any grievance arising

out of this scheme. 3. The licensee shall submit details of number of feeders, number of farmers who opted for the

scheme, energy purchased from farmers, amount paid to farmers, losses in selected feeders, cost

and benefit of the scheme etc. to the Commission after the end of the current financial year. 4. After receiving the above details, the Commission shall take a final view on the proposal of the

petitioner to charge a tariff of Rs. 3.50/Unit for net energy consumed by the farmers, in order to protect the interest of farmers. Till such time the Commission decides, the licensee shall charge

the regular tariff as applicable to relevant category.

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Haryana

Procedure for approval of MW scale ground mounted/ rooftop projects for captive

consumption or 3rd party sale under Haryana Solar Power Policy 2016

Procedure by HAREDA on 9.10.18

Responsibilities of Solar Project Developers (SPD)

Acquiring land for project, obtain statutory and non statutory clearances for project

Carry out site related studies/ investigations

Road connectivity to land/ Tie up with solar park having road connectivity

Water availability for construction as well as O&M of power plants

Flood mitigation measures like flood discharge, internal drainage, etc.

Telecommunication facilities

Transmission facility consisting power station (with 220/132/66/33 KV/11 KV switchyard asper requirement) to connect project with substation of power utilities

Providing basic facilities such as separate toilets for males and females, office, etc for basic

manpower wherever possible during construction period and thereafter

Identification of consumers. All T&C shall be decided mutually by SPD and consumers for setting up of projects and sale/ purchase of solar power.

If project is transferred or sold to a 3rd party during its tenure (after initial lock-in period of 1 yr of

commissioning date), successor will retain full rights to operationalize PPA with consumer, which will be

under full obligation to honour all obligation and T&C of sanctioned project. Transfer of solar projects to another SPD will not be allowed up to 1 year of actual commissioning date of solar project.

Projects will be set up by SPD on Build-own-operate (BOO) basis, with limit total aggregated capacity of

grid connected solar power projects fixed by HERC. Selection of projects would be technology agnostic and mono/crystalline silicon or thin film or CPV, with or without trackers can be installed.

Already commissioned projects, commissioned before issue of RE regulations 2017, can’t be considered under this scheme.

Capacity of each project: 1 MW to 100 MW (capacity shall mean AC output at project bus bar located

within project premises)

Solar park: min. Capacity 250 kWp

Min. capacity of rooftop solar project for captive consumption or 3rd party sale: 250 kWp to 1 MW Max 5 projects for a company (including its parent, affiliate or ultimate parent or any group company) at

different locations with max. Aggregate capacity of 100 MW.

The guidelines provide qualification criteria for short-listing of solar PV projects, which include Net worth of the company. It also provides processing fees/ EMD for project.

All waivers/ concessions/ banking provided under Haryana Solar Power Policy 2016 with amendments from time to time and/ or RE regulations 2017 with amendments from time to time shall corresponds to

period of 10 years from date of commissioning for power generated and consumed within state of Haryana. However, incentives/ waivers/ concessions under Haryana Solar power Policy/ RE

regulations 2017 will be provided to 1st commissioned 500 MW or till achievement of limit fixed by HERC from time to time.

Firm will not claim CFA for setting up of this solar park/ solar project.

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Group captive installation of solar project is allowed for which group captive guidelines shall be followed.

Only new plant and machinery shall be allowed under this policy.

Plant should be designed for interconnection with transmission network of STU at voltage level of 11 kV

or above.

Project developers are required to obtain necessary clearances as required for setting up solar PV projects.

Metering shall be done at interconnection point where power is injected into CTU/ STU system i.e., delivery point.

Guidelines provide table of contents for DPR for solar project, application format for proposal for solar

project and format for submitting document after in-principle approval of solar power project for final

approval.

HPERC (Deviation Settlement Mechanism and Related Matters) Regulations, 2018

Regulation notified on 16.10.18.

Regulation will come into force from 3.12.18.

These regulations shall be applicable to the buyers and the sellers i.e. the State distribution licensee(s), State Sector Generating Stations and Open Access Customers connected to the State Grid.

Regulation has provided for provision of revising scheduling period to 288 time blocks, each of 5 minute

duration for a day.

Haryana Electricity Regulatory Commission (Terms and Conditions for

Determination of Tariff for Generation, Transmission, Wheeling and Distribution &

Retail Supply under Multi Year Tariff Framework) Regulations, 2012 (2nd

Amendment), 2018

2nd Amendment notified on 31.10.18

Himachal Pradesh

HPERC (Rooftop Solar PV Grid Interactive System based on Net Metering) (First

Amendment) Regulations, 2018 Draft Regulation by HPERC on 8.10.18. Last date to comment till 22.10.18.

3rd August, 2015: HPERC notified Himachal Pradesh Electricity Regulatory Commission (Rooftop Solar PV Grid Interactive System based on Net Metering) Regulations, 2015

State nodal Agency: Himachal Pradesh Energy Development Agency (HIMURJA)

Amendment suggests change in definition of premises.

“premises” means rooftops and/or open areas on the land, building or infrastructure or part or combination thereof in respect of which a separate meter or metering arrangements have been made by the licensee for supply of electricity;”.

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Amendment has introduced additional provision for maximum capacity of solar PV project for individual consumer, which is as given below:

S.no. For consumers having sanctioned connected load

Maximum capacity of Solar PV Project

1 5 kW or less 100% of sanctioned connected load

2 Exceeding 5kW but not exceeding 10 kW 70% of sanctioned connected load or 5 kW; whichever is higher

3 Exceeding 10 kW 50% of sanctioned connected load or 7 kW; whichever is higher.

Also, limit for capacity by eligible consumers has been amended, as follows:

S.no. Voltage at which consumer(s) gets supply

Max. capacity of rooftop solar PV system

Earlier Max. capacity of rooftop solar PV system

1 LT (Ph1) 7 kwp 5 kWp

2 LT (Ph3) 20 kWp 15 kWp

3 11kV or higher 1 MWp 1 MWp

Distribution licensee shall maintain the redundancy of 30% in its distribution system and in cases where

any equipment of the distribution system is loaded or is likely to be loaded beyond 70% of the rated

capacity as a result of the installation of such systems, the licensee shall, save as provided in Himachal Pradesh Electricity Regulatory Commission (Recovery of Expenditure for Supply of Electricity)

Regulations, 2012, take immediate action to augment the system/equipment by making suitable provisions in CAPEX plan.

The amendment has also given timeline for various activities to be performed by various stakeholders in

solar project. It also provides timeline for subsidy application.

Installation of Rooftop Solar System including solar meter and submission of Work Completion Report/

Certificate including installation of Solar Meter has to be completed in 90-180 days.

There are also provisions regarding solar meter and check meter for consumers. Check meter shall be mandatory for Rooftop Solar PV System having capacity of more than 20 kW. For installation of capacity

of less than or equal to 20 kW, the solar check meter would be optional.

Other charges

In cases where the consumer is getting supply at a voltage lower than the standard supply voltage specified in the Supply Code, the Low Voltage Supply Surcharge (LVSS) shall be charged as per the

rate(s) approved in the tariff orders issued by the Commission from time to time on the sum total of the solar generation and the total consumption of the consumer in each billing month.

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Regulation 2015: http://new1.hperc.org/File1/fsolarroof15.pdf

Statement of reason 2015: http://hperc.org/File1/osolarroof15.pdf

HPERC (Levy and Collection of Fees and Charges by State Load Despatch Centre)

(Second Amendment) Regulations, 2018

Draft regulation by HPERC on 8.10.18. Last date to comment till 28.10.18

HPERC (Terms and Conditions for Determination of Transmission Tariff) (Second

Amendment) Regulations, 2018

Draft regulation by HPERC on 8.10.18. Last date to comment till 28.10.18

HPERC (Terms and Conditions for Determination of Hydro Generation Tariff) (Third

Amendment) Regulations, 2018 Draft regulation by HPERC on 8.10.18. Last date to comment till 28.10.18

HPERC (Terms and Conditions for Determination of Wheeling Tariff and Retail Supply

Tariff) (Third Amendment) Regulations, 2018

Draft regulation by HPERC on 8.10.18. Last date to comment till 28.10.18

Invitation to Himachal Entrepreneurs for exploiting Solar Power Potential in the

state

Updated by Himurja on 10.10.18 Original Doc.

Updates

Himachal Pradesh Electricity Grid Code (First Amendment) Regulations, 2018 Regulation notified on 9.10.18

HPERC (Renewable Power Purchase Obligation and its Compliance) (Fifth

Amendment) Regulations, 2018

Draft regulation notified on 27.10.18. Comments/ suggestions are invited till expiry of 21 days from date of notification.

Draft regulation has provided for minimum % for RPO as follows:

Year Minimum Quantum of Purchase in % from RE sources (in terms of energy in kWh) of total consumption

Non Solar Solar Total

2019-20

10.25% 7.25% 17.50%

2020-21

10.25% 8.75% 19.00%

2021-22

10.50% 10.50% 21.00%

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Karnataka

Draft Conditions of Supply of Electricity of Distribution Licensees in the State of

Karnataka ( Seventh Amendment) 2018

Draft Regulation on 4.10.18. Last date to comment: 31.10.18

Why amendment?

BESCOM vide its Petition OP no. 110/ 2017 filed before KERC has requested for amendment to Condition of Supply (CoS) to provide for making prepaid energy meters mandatory to installations relating to water supply, streetlight and Gov offices under LT-3 (commercial), for

ensuring timely payments from these installations.

There will be a requirement of occupancy certificate before carrying out servicing of installation of

Applicant.

Added provisions under Metering (25.01) Prepaid energy meters shall be provided to installations of public water supply, public lamps

(streetlights) and offices of Govt. Also, Distribution Licensee has to buy back any electromechanical /

electronic energy meters fixed at existing installations of such consumers, who shall pay difference in depreciated value of existing energy meters and meter security deposit equivalent to cost of new prepaid

meters, to distribution licensee in equal annual installments over a period of 5 years.

Karnataka SERC order Dated 23.10.2018-OP 18 and 19 of 2018-ES Sun Power Pvt Ltd

and ES Solar Pvt Ltd-Vs-BESCOM-Order

Issues arising in petition are regarding scheduled commissioning date (meaning of date as referred in the

PPA), difference between meaning of commissioning of project and commercial operation of project

Verification of injection of power (from solar project) into state grid is very essential, in order to declare commissioning of the project. Any new solar power plant, entering into commercial agreements with a

distribution licensee or open access consumer, requires grid connection. The different utilities, managing the Grid, such as KPTCL, SLDC, Distribution Licensee, have to accept and certify the safe operation and

compliance of the other requirements by the Solar Power Plant. before effecting the Grid connection. Therefore, the Solar Power Plant commissioning, explicitly and invariably requires performance

verification of all the electrical plants and apparatus. Such performance verification is not possible, unless

the Solar Power Plant is in generation mode and injects sufficient energy into the Grid. The commissioning party should not merely depend upon the results of the pre-commissioning tests,

assuming a guarantee positive outcome. SERC hold that meaning of ‘Commissioning of Project’ and ‘commercial operation of project’ is one and same in a solar power project, where injection of power into grid from said project is essential, to

certify commissioning of project. Hence, the solar projects referred in the case are entitled to reduced tariff and liable for payment of liquidated damages, for delay in supply of power to respondent.

Kerala

OP 5/2018 and 6/2018 – Common Order Removing the difficulties in establishing

Renewable Energy – KSSIA & KREEPA

Order by Kerala SERC on 3.10.18

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Issues considered by Kerala SERC

(1) The solar capacity that can be connected under Solar Regulations may be specified in terms of kW or MW instead of kWp or MWp.

(2) The limit of the solar capacity, that can be connected to the distribution system, under Solar Regulations, 2014 may be enhanced from 1MW to 3 MW.

(3) Relaxation may be granted for connectivity of the solar plants of the consumers having dedicated feeders/ own transformers.

(4) Construction of evacuation facilities beyond the pooling station may be constructed by KSEB Ltd.

(5) Direct the distribution licensees in the State to purchase electricity from solar and wind energy generators at preferential tariff.

(6) Permit wind and solar IPP for third party sale without attracting wheeling charge and cross subsidy surcharge.

(7) Permit wind and solar CPPs to wheel wind energy without attracting wheeling charge. (8) Permit grid connectivity of hybrid solar systems with battery backup.

(9) Connectivity related issues of the 1 MW solar plant at West Eleri, installed by M/s Bharat Charitable

Society.

Issue 1: The rating of the solar panels are specified in terms of the kWp or MWp. However, the output of the solar

plants after converting the power to AC is in MW. Accordingly, the maximum MW capacity, that can be injected into the grid may be less than the rating of the solar panels. So, for injecting/ connecting 1MW to

the grid, the developer has to install solar panels of capacity more than 1 MWp. So, it is most appropriate

to specify the minimum and maximum capacity that can be installed at the premises of the consumers may be specified in terms of 1kW/1 MW instead of 1 kWp/1MWp. The Commission may consider all

these aspects while finalising the draft Regulation on Renewable Energy.

Issue 2: The Commission may consider the same in the draft regulation and may take appropriate decision after

public consultation process.

Issue 3:

In the case of the consumers having dedicated feeder/ transformer, the load of that particular consumers, through the dedicated feeder/ transformer only be considered while appraising the feeder capacity and

transformer capacity as the case may be.

Issue 4: If KSEB Ltd is directed to construct the evacuation facilities beyond the pooling stations upto the nearest

substation of KSEB Ltd without recovering the cost from the beneficiaries, such cost shall be included in

the ARR of the SBU- Transmission and SBU-Distribution of KSEB Ltd and this Commission has to allow KSEB Ltd to recover the same from all the consumers of the State through transmission charges/

wheeling charges/ retail tariff. Hence, till the Commission amend Open Access Regulations, 2013, KSEB Ltd is allowed to recover the cost of evacuation facilities as per the provisions of the Open Access

Regulations, 2013 as extracted above.

Issue 5:

As per the provisions of the Electricity Act, 2003, the SERC’s cannot insist the distribution licensees to purchase electricity from a particular RE generator. So, Commission declines the above prayers of the

petitioner.

Issue 6 & 7: If the Commission orders to exempt a particular user of the distribution system from the payment of

wheeling charges, the Commission has to allow the distribution licensee to recover the short fall on

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account of such exemption from the other users of the distribution system. This will results in increase in

the per unit wheeling charges of the distribution licensee and ultimately results in increase of the retail tariff.

It is not proper to exempt the third party sale by the IPPs of solar and wind plant from payment of

‘wheeling charges’ and ‘cross subsidy surcharge’ and also for exempting the CPPs from ‘wheeling charges’.

Issue 8: While allowing the permission, SERC has said that “As per the Regulation 8 of the Solar Regulations,

2014, it is the responsibility of the distribution licensees to ensure that, the solar plants connected to the distribution system of the licensee shall conform to the specifications, standards and safety notifi ed by the

CEA. Accordingly, the KSEB Ltd and other distribution licensees shall provide grid connectivity of the hybrid solar systems with battery backup as per the CEA (Installation and Operation of meters)

Amendment Regulations, 2014.”

Issue 9:

Once M/s Bharath Charitable Hospital Society, remit the cost of construction of the evacuation scheme as demanded by KSEB Ltd, they shall complete the evacuation scheme, within the time line specified for

construction in the KSERC (connectivity and intra-state open access) Regulations, 2013, read with the provisions in the Kerala Electricity Supply Code, 2014.

Truing up of accounts of M/s Cochin Special Economic Zone Authority (CSEZA) for the

financial year 2016-17

Order by Kerala SERC on 4.10.18

Kerala State Electricity Regulatory Commission (Terms and Conditions for

Determination of Tariff) Regulations, 2018

Final Regulation on 5.10.18

Madhya Pradesh

Madhya Pradesh Electricity Regulatory Commission (Terms and Conditions for

Determination of Tariff for Supply & Wheeling of Electricity and Methods and

Principles for Fixation of Charges) Regulations, 2015 (First Amendment) Regulations,

2015

Draft regulation by MPERC on 6.10.18. Last date to comment: 15.10.18

Original Regulation

The draft amendment has proposed to increase the applicability of MYT principles from 3 years to 4 years, hence till 31st march 2020.

It has also proposed distribution losses for the year of FY 19-20.

Distribution Licensees FY 19-20

East Discom 15% West Discom 15% Central Discom 15% SEZ, Pithampur 1.8%

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The amendment also gives changes made in employee expenses and A&G expenses for the FY 2019-20.

Corrigendum-1 extension of time of EOI 2543 Dt. 10.09.18 Corrigendum dated 9.10.18

Corrigendum-II dated 25.10.18

Check list for document Original Document

Corrigendum has extended last date for submission of application to 25.10.18, then extended to

12.11.2018.

MPUVNL had called for EoI for system integrators/ beneficiaries to apply for claiming central and/ or

state subsidy for solar rooftop system installed in state of MP.

This EoI is applicable for Grid Connected / Off-Grid Rooftop Solar Systems Developer(s) (“System Integrators”) or Beneficiary/Owner of the System(s) (Applicant(s)) who have installed Grid Connected /

Off-Grid Rooftop Solar Rooftop System (“System(s)”) between 23rd March 2017 and 31st March 2018 in Social (institutions run by registered society/trust and are operating on non-profit basis) and Residential

sector, and have not availed Central Subsidy. Applicant is required to have installed and commissioned

the System(s) under EPC mode. System Integrators must be responsible for at least 5 years of Comprehensive Operation and Maintenance, including insurance and warranty, of the

products/equipments (“CMC”).

System(s) in which indigenously manufactured mono/polycrystalline Solar PV modules are used, as prescribed by MNRE, are applicable for Subsidy.

EoI provides for calculation of applicable subsidy in INR per kWp for social and residential sector.

In case System is installed under Net-metering, MPUVNL shall withhold 20% of the cost of the System, i.e., the lowest of (i) benchmark cost as approved by MNRE for FY 2017 -18, (ii) rate discovered in

MPUVNL’s EPC tender no. MPUVN/SPVPP-NM/1-500 kWp/2016- 17/3135 dated 11th May 2016 (“EPC Tender” annexed as Annexure III) or (iii) actual cost paid by the Beneficiary to System Integrators, and

will release the same when net-metering is done.

The cost of a System will include the hardware, i.e., PV modules, inverters, meters, support structures,

charge controllers, cables and minimum battery required to ensure smooth operation. It will also include cost of transportation, installation, connectivity, civil works and operation and maintenance for five years

along with warranty of the System.

EoI also provides the list of all documents that an applicant has to submit for release of subsidy.

The Applicant has to perform and exhibit minimum CUF of the System to be eligible for Subsidy. This

minimum CUF has been provided for each month in the EoI in form of kWh generation in 1 day per kWp system.

Provision related to performance monitoring During the 5 years of CMC period, the System Integrator and Beneficiary shall maintain a CUF of 15% for

each year of the Contract Period, subject to annual de-rating of not more than 1% per year. Penalty on System Integrator and Beneficiary on non-achievement of desired CUF in any year shall be as per EPC

Tender. However, cap on total penalty for non-achievement of desired CUF in the remaining period of the CMC of the System(s) is full O-PBG value.

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So, shortfall in CUF shall not be more than 0.15% per year from the date of Completion. In case, System

has lived a life of one (1) year then System Integrator is required to demonstrate the CUF adjusted for de-rating factor of one (1) year and seasonality.

MPUVNL will regularly review the progress and performance of each Applicant periodically and

conduct third party inspection/monitoring through designated agencies/consultants.

Applications of the Applicant(s) will be accepted if the System Integrator have installed indigenous solar

modules in the System(s), for which Applicant is claiming Subsidy. Also, Applicant shall be required to submit all the test reports along with certificates in support of the same.

EoI also provides application format for residential sector and social sector, along with the format of

inspection report.

MPERC order In the matter of petition u/s. 86(1)(E) r/w Section 151 of the Code of

Civil Procedure, 1908

MPERC Order dated 22.10.18

The question that arose in the petition was if a unit of a company has to fulfi ll RPO obligation (or else purchase REC) or the company which is obligated entity has to do so.

The company (petitioner) has 3 units in MP, out of which one unit has power plant. Entire power generated by this plant is being consumer by that unit only and not being wheeled to any of the other 2

units. Being single legal entity, petitioner has asked to consider liability of RPO at company level and not unit wise.

The SERC holds that each unit of the company is a separate consumer under provisions of MPERC

(Cogeneration and Generation of Electricity from Renewable Sources of Energy) (Revision – I)

Regulations, 2010 and obligated entity comprises of captive consumers and OA consumers and not company, so RPO is to be met by each unit in instant case.

Maharashtra

DRAFT GUIDELINES FOR OPERATION OF MERIT ORDER DESPATCH Draft guidelines by MERC on 2.10.18. Last date to comment: 31.10.18

The following issues have been identified and addressed in this Draft Guidelines: 1. Periodicity and Date of preparation of MOD Stack.

2. Basis of preparation of MOD Stack, including the Variable Charge to be considered. 3. Guidelines for operating the Generating Units.

4. Guidelines for Zero Schedule instructions to the Generating Units. 5. Guidelines for Reserve Shut Down (RSD) instructions to the Generating Units.

6. Identification of 'Must Run' Stations, and guidelines for operating Hydro Stations

7. Technical Minimum of Generating Units.

PERIODICITY AND DATE OF PREPARATION OF MOD STACK MSLDC shall prepare MOD Stack on the 15th day of the month, which would be effective from the 16th

day of the month till the 15th of the subsequent month unless revised by MSLDC-OD.

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Under which circumstances can ongoing MOD stack be revised?

Commencement of supply of power by a Generating Unit under a new arrangement/agreement,

Revision of Variable Charges for preparing the MOD Stack due to Tariff Order issued by this Commission for State Generating Stations and the Central Electricity Regulatory Commission

(CERC) for Central Generating Stations,

Impact of Change in Law in the PPAs as notified by the Distribution Licensee. BASIS AND PREPARATION OF MOD STACK, INCLUDING VARIABLE CHARGE TO BE

CONSIDERED It is the Distribution Licensees who must intimate to MSLDC the Variable Charges of all the Generating

Stations/Units from which they are procuring power for preparing the MOD Stack

No deviations of any kind from the approved Energy Charge should be taken, for plants which have been tariff is being determined by MERC.

Impact of any change in law event affecting Energy charges should be submitted by the Generating Company to the Distribution Licensee within one month of its occurrence. In case the Generating

Company has not submitted its claim towards a Change in Law event affecting the Energy Charge within one month of its occurrence, the Generating Company shall not be allowed to raise such claim thereafter.

GUIDELINES FOR OPERATING GENERATING UNITS MSLDC shall endeavour to attain the load generation balance on any given day by finalising the schedule

of the maximum capacity available, starting from the Station/Unit with the lowest Variable Charge in the Merit Order Stack.

No special treatment shall be given by MSLDC to any particular Generating Unit, and Units shall be backed down or ramped up strictly as per the MOD Stack.

As a basic principle, MSLDC is required to finalise the despatch schedule based on least-cost principles.

Also, MSLDC has to upload deviations from MOD principles and daily backing down report on daily basis on its website.

GUIDELINES FOR ‘ZERO SCHEDULE’ FOR GENERATING UNITS

In case of anticipated generation availability in surplus of anticipated demand, the Distribution Licensees need to optimise their cost of power procurement considering the contracted sources for the period of

anticipated surplus.

Distribution Licensee may consider giving Zero Schedule to some of its contracted sources for the period during which the demand is expected to be lower than the total contracted sources availability put

together. This should be a conscious decision of the Distribution Licensee in consultation with MSLDC taking into account the demand supply position and transmission constraints. The Distribution Licensee

must give the Generating Company 24 hours prior notice of the Zero Scheduling to enable it to take steps for smooth removal of the Unit from the Grid.

Distribution Licensee shall ensure that the Zero Scheduling does not result in all the Units of a Generating

Station whose entire installed capacity is tied up with Distribution Licensee in the State of Maharashtra, being shut down. For such stations, one Generating Unit (in case there are more than one) should be

operational to meet the Auxiliary Consumption of the Generating Station. A Reserve Margin equivalent to twice the contracted capacity of the largest Generating Unit of a Power

Station, contracted by a Distribution Licensee needs to be maintained, when resorting to Zero Scheduling.

GUIDELINES FOR INSTRUCTING RESERVE SHUT DOWN (RSD) OF GENERATING UNITS BY

MSLDC The RSD should be implemented for the capacity available in excess of the largest Unit contracted by the

Distribution Licensee. The RSD should be applied to Units with higher Variable Charges in the MOD Stack, subject to grid

conditions permitting the same.

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‘MUST RUN’ AND HYDRO GENERATING STATIONS

In order to meet system contingencies, MSLDC may keep Hydro capacity equivalent to the capacity of

largest thermal Unit as a spinning reserve. MSLDC has to ensure that the hydro capacity to be kept as spinning reserve should be a mix of hydro units from different generating stations of different generating

companies (in proportion to contracted capacity of such hydro generating stations) instead of hydro units from single generating station or hydro units of one generating company.

TECHNICAL MINIMUM OF GENERATING UNITS

The technical minimum for operation in respect of a coal fired/gas fired/multi fuel based thermal

generating Unit connected to the STU shall be 55% of its installed capacity. The Commission shall devise an appropriate methodology, in due course of time, for compensating such

thermal generating stations for the loss of operational parameters on account of revised technical minimum level vis-à-vis the existing technical minimum level.

Some points to ponder:

1. For Generating Stations/Units whose Tariff is being determined by the Commission under Section 62 of the EA, 2003, the Variable Charge for MOD purposes will also include FSA billed in

the immediately preceding (n-1) month. But will FSA available to MERC so early, as usually FSA

is billed by SERC on quarter basis?

Maharashtra Electricity Regulatory Commission (Deviation Settlement Mechanism

and related matters) Regulations, 2018.

Draft regulation by MERC dated 23.10.18. Last date to comment till 23.11.18 Public Notice

Explanatory Memorandum

Why DSM regulation?

To maintain grid discipline and security as envisaged under grid code, through commercial mechanism for deviation settlement through drawal and injection of electricity by users of grid.

Applicability of regulation

All seller(s), including OA generators, captive generators (excluding In-Situ captive generators)

connected to InSTS but excluding wind and solar generating station(s).

However, forecasting, scheduling and deviation settlement related matters in respect of wind and solar generation shall be governed as per the provisions of “MERC (Forecasting, Scheduling and

Deviation Settlement for Solar and Wind Generation) Regulations, 2018” and its amendments thereof.

All buyer(s) including distribution licensee(s), deemed distribution licensee(s) located in the State and full OA consumers connected to InSTS.

The framework for Deviation Settlement Mechanism shall cover the following key design parameters,

viz., (a) Scheduling Period (b) Guiding Principles for Scheduling and Despatch (c) Operating Range of Frequency (d) Deviation (e) Settlement Period (f) Measurement Unit for State Deviation Pool Account(g)

Deviation Pool Price Vector (h) Deviation Volume Limit (i) Premise for Allocation of Losses.

The provisions of the Maharashtra State Grid Code and Maharashtra Electricity Regulatory Commission

(Transmission Open Access) Regulations, 2016 and Maharashtra Electricity Regulatory Commission

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(Distribution Open Access) Regulations, 2016 as amended from time to time, shall be applicable for

declaration of capacity and scheduling.

The draft regulation provides the provisions regarding declaration of capacity and scheduling, treatment for gaming, charges for deviations, limits on deviation volume and consequences of crossing limits,

treatment of infirm power and start up power prior to COD, framework for operationalisation and monitoring of DSM, and state energy account.

Petition of MSEDCL seeking approval for deviation in standard bidding guideline for

long term procurement of solar power under ‘Mukhyamantri Saour Krishi Vahini

Yojana’ with 2 to 10 MW capacity projects connected to distribution network with

total quantum of 1400 MW through competitive bidding (E-Reverse auction); under

Section 19 of MERC (RPO, Its Compliance and Implementation of REC Framework)

Regulations, 2016

Order by MERC dated 16.10.18

The Government of Maharashtra (GoM) vide its Resolution dated 14 June, 2017 has issued Policy under “Mukhyamantri Saour Krishi Vahini Yojana” to supply the power to Agricultural (AG) Consumers

during day time by installation of Solar Projects on PPP basis by Maharashtra State Power Generation

Company Limited (MSPGCL). (modified by its Resolution dated 17 March, 2018). Accordingly, the GoM has appointed MSEDCL as implementation agency in addition to MSPGCL for flexibility and speedy

implementation of scheme for giving day time power to AG consumers. Solar power from these projects will be counted for MSEDCL’s solar RPO target mitigation.

Order of MERC The Commission approves the initiation of District wise/ Circle wise competitive bidding process for

procurement Solar power under ‘Mukhyamantri Saour Krishi Vahini Yojana’ from Solar power projects to be connected at 11/22 KV level of MSEDCL with individual project capacity of 2 to 10 MW.

The Commission has no objection to MSEDCL deciding the lower ceiling rate of Rs. 3.10/unit based on its own due diligence.

The Commission approves the increase in maximum capacity limit from 50 MW to 100 MW for District/circle.

The Commission rules that the proposed Solar Power generation would be counted towards fulfillment

of MSEDCL’ RPO for the respective periods. MSEDCL shall approach the Commission for adoption of final Tariff after completion of Competitive

Bidding Process.

Petition of MSEDCL for seeking approval for Procurement of Long Term Bagasse

Based Co-Generation 200MW Power through Competitive Bidding under Regulation

No. 5 of Maharashtra Electricity Regulatory Commission (Terms and conditions for

determination of Renewable Energy Tariff) Regulations, 2015

MERC order dated 16.10.18

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Petition of Maharashtra State Power Generation Co. Ltd. for removal of difficulties in

the matter of implementation of “Mukhyamantri Solar Agricultural Feeder Scheme”

and approval of draft Power Purchase Agreement (PPA) & draft Power Sale

Agreement (PSA) being executed by MSPGCL with the developer and Maharashtra

State Electricity Distribution Co. Ltd., respectively for Agriculture (AG) Feeder Solar

Power Projects in Maharashtra. MERC order dated 16.10.18

The Commission provisionally approves the modalities proposed by MSPGCL for PPA and PSA for all the solar projects being installed under “Mukhyamantri Solar Agricultural Feeder Scheme” subject to the

following conditions: (i) MSPGCL and MSEDCL should approach the Commission jointly with deviations if any in the PPA

and PSA. (ii) The Commission does not approve the rate of Rs. 3.15 per unit and directs MSPGCL to reduce the

same after taking into account the associated costs relating to land, evacuation of energy and metering

arrangement. It is expected that the rates so worked out would be in the vicinity of the rates discovered by MSEDCL on the similar terms and conditions.

(iii) The Commission rejects MSPGCL’s prayers regarding approval of the administrative charges (Trading margin) of 5 Paise per unit. MSPGCL can claim prudent administrative expenses as

Intermediary procurer of solar energy as part of its ARR.

Petition of RattanIndia Power Limited (RIPL) for compensation from MSEDCL for

penalty imposed by South Eastern Coalfields Limited (SECL)on account of

nonprocurement of minimum quantity of fuel by RIPL under the FSA

MERC order dated 23.10.18

Petition of Maharashtra State Electricity Distribution Co. Ltd to Review certain issues

in the Commission’s Order dated 2 May, 2018 in Case No. 111 of 2017.

MERC order dated 24.10.18

Petition of Maharashtra State Electricity Distribution Co. Ltd. for review of Order

dated 27 February, 2018 pronounced in Case No. 19 of 2017 MERC order dated 24.10.18

Manipur

Grid connected rooftop solar power plant-rate

Order dated 9.10.18

Meghalaya

Case No. 12 of 2018 - In the matter of Petition Seeking Removal of Difficulties and

Relaxation of Provisions of the Meghalaya Electricity Regulatory Commission

(Meghalaya Electricity Supply Code) 2012

Order by MSERC on 10.10.18

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Reconstitution of State Advisory Committee

MSERC notification dated 22.10.18 The reconstitution of Committee will function with effect from 26th October 2018 till 31st October 2020.

The objective of the State Advisory Committee shall be to advice the Commission on:- (a) Major Questions of Policy;

(b) Matters relating to quality, continuity and extent of service provided by the l icensees (c) Compliance by the licensees with the conditions and requirements of their license

(d) Protection of consumer interests;

(e) Electricity supply and overall standards of performance by the Utilities and (f) Matter which the Commission may refer specifically.

Meghalaya State Electricity Regulatory Commission (Renewable Energy Purchase

Obligation & its Compliance) Regulations, 2018 Final regulation dated 22.10.18

These regulations shall come into force from the date of their publication in the Official Gazette of

Meghalaya and shall remain operative until it is revised. RPO framework shall be valid untill 31st marhc 2021.

State agency: Meghalaya Non‐Conventional and Rural Energy Development Agency Commission

(MNREDA)

Who are obligated entity?

Distribution licensee, a consumer owning a captive power plant and open access consumer in state, which is mandated to fulfil RPO under these regulations.

Captive consumers are subjected to following conditions: o Any person who owns a Captive generating plant with installed capacity of 5 MW and

above and consumes electricity generated from such plant for his own use; shall be

subjected to minimum percentage of RPO to the extent of his consumption met through

such captive source, excluding the captive power consumers who consume power from renewable energy based captive plants.

Any person having a contract demand of not less than 1 MVA and who consumes electricity procured from conventional fossil fuel based generation through open access as per Section 42 (2)

of the Act shall be subjected to minimum percentage of RPO (specified in Clause 5.2 of these Regulations) to the extent of his consumption met through such open access source.

Which RE sources are included?

“Renewable Energy Sources” means renewable electricity generating sources such as small hydro, wind, solar, biomass, bio fuel, cogeneration (including biogases based co‐generation),

urban or municipal waste and such other sources as recognized or approved by MNRE or State

Government.

FY Min. quantum of purchase in % from RE sources (in terms of energy in kWh)

Solar Non-Solar Total

2018-19 0.75 3.25 4.00 2019-20 1.00 4.00 5.00 2020-21 1.25 4.75 6.00

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In case of Distribution Licensee as an Obligated Entity, the RPO target percentage shall be applicable on

the Energy Input for concerned Distribution Licensee (i.e. Energy Sales grossed up for transmission and distribution losses).

In case of any other Obligated Entity, the RPO target percentage shall be applicable on the actual

Electricity Consumption (excluding consumption supplied by Distribution Licensee) recorded at Drawal point or Consumption point of such Obligated Entity.

Under any scheme for promoting generation from renewable energy sources is made through generation from off‐grid renewable generation in the State, the same may be accounted for RPO of the distribution

licensee, if Commission so permits.

The quantum of electricity consumed by an Obligated Entity from Grid‐ connected Roof‐top Solar PV System shall qualify towards compliance of its Solar RPO.

The quantum of electricity generated by the any Non‐Obligated Entity from the Grid‐connected Roof‐top Solar PV System shall qualify towards meeting the Solar RPO of the Distribution Licensee. To get this

energy counted towards RPO, distribution licensee shall install a solar generation meter to measure such energy at its own cost.

Verifying Agency shall be responsible to bring to the notice of State Agency in case of default, wrong

submission, and errors in the data submission by the Obligated Entity.

Penal provisions for non-compliance with RPO by obligated entities: There will be a separate RPO fund

to deposit such penalty.

The penalty enforced by the Commission on the obligated entity shall not be a pass through in the Aggregate Revenue Requirement in case the obligated entity is a Distribution Licensee.

Meghalaya State Electricity Regulatory Commission (Electricity Supply Code)

Regulations 2018

Final regulation dated 24.10.18

This Code details the obligation of the Licensee and consumers vis -à-vis each other and specifies the set of practices that shall be adopted by the Distribution Licensee to provide efficient, cost effective and

consumer friendly services to the consumers.

It specifically details the following:

The procedure for new connection, wiring in consumer premises, service connection matters, procedure for enhancement and reduction of load, meters, procedure for replacement of defective meters, billing, disconnection, reconnection, assessment of load, changes in existing connection,

matters related to unauthorized use/theft of electricity and Licensee‟s complaint handling system.

Sample of different formats for new connection, agreement for supply of electricity, test reports, etc.

This Code shall apply to all distribution licensees and the consumers of electricity in the State of

Meghalaya and shall also apply to all other persons who are exempted under Section 13 of the Electricity Act, 2003.

It includes chapters on following:

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System of supply and classification of consumers

New service connection

Wiring and apparatus in consumer premises

Point of supply and Licensee’s equipment in Premises

Service connection related matters

Meters

Billing

Payment of bills, disconnection due to non payment of bill and restoration of service

Unauthorised use and theft of electricity, malpractices and compensation

Licensee’s complaint handling procedure

Miscellaneous, including provisions related to force majeure and restrictions on supply of power, service of notice, electricity supply code review panel, etc.

Rajasthan

Staff paper on Renewable Energy Projects registered under REC mechanism in

Rajasthan Draft Staff Paper by RERC. Last date to comment: 6.11.18

Earlier, there were many RE projects in Rajasthan which opted for REC mechanism for power generated and power generated was given to State discoms at pooled cost of power purchase under PPAs.

Rajasthan is experiencing rising trend in pooled cost in recent years. On the other hand, there is

decreasing trend in solar and wind energy prices in recent auctions, which have gone even below pooled cost notified for discoms. So, state discoms may prefer to purchase renewable energy itself instead of

continuing to purchase only electricity component (i.e., brown energy) from such projects (REC

mechanism being availed by project owner). Now, PPAs executed by Discoms with such projects for brown energy due to expire on 31.03.2019 and in view of the situation described above, the Discoms may

be reluctant to extend their executed PPAs beyond 31.03.2019.

If the executed PPAs are not extended further, the capacity of such projects would get stranded and huge investments made in above projects would be put at stake.

Suggested Solutions under Staff Paper 1. RE projects to sell RE power to discoms under RPO mechanism, hence helping state utilities to

optimising their future investments to be made in addition/ upgradation of transmission system. 2. RE projects to remain in REC mechanism and extend PPAs with Discoms for their balance useful

life at lowest of pooled cost notified by RERC since 2010, i.e. Rs. 2.67/ kWh.

In the matter of petition filed by M/s V.S. Lignite Power Private Ltd., under Section

86(1)(f) for adjudication of dispute.

Order by RERC on 12.10.18

Review of Commissions order dt. 28.05.2018

Order by RERC on 12.10.18

Approval of Additional Investment Plan for FY 2018-19

Order by RERC on 5.10.18

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Order in the matter of adjudication of dispute under Section 86 (1) (f) of the

Electricity Act, 2003. Order by RERC dated 25.10.18

Punjab

Review Petition under Section 94 (1) (f) of the Electricity Act, 2003 read with Order

47 Rule of the Code of Civil Procedure, 1908 and Regulation 64 of the Punjab State

Electricity Regulatory Commission (Conduct of Business) Regulations, 2005 for

seeking review of the Tariff Order dated 19.04.2018 passed by the Commission in

Petition 65 of 2017 for FY 2018-19.

Order by PSERC on 11.10.18

INFORMATION BROCHURE & APPLICATION FORM FOR INSTALLATION OF SOLAR

PUMPS (Capacity 3 and 5 HP) FOR IRRIGATION IN PUNJAB Document dated 29.09.18

Petition seeking compliance of clause 10.1.5 of Power Purchase Agreement under

applicable provisions of the Electricity Act, 2003 read with Regulation 69 (Saving of

inherent power of the Commission), 71 (Power to remove difficulties) and 73

(Extension or abridgement of time allowed) of the Punjab State Electricity Regulatory

Commission (Conduct of Business) Regulations, 2005

Order by PSERC dated 31.10.18

Telangana

Order for Determination of Generic Tariff for Wind Power Plants for control period

2018-20

Order dated 6.10.18

Why tariff determination when all latest guidelines by MNRE or CERC or MoP prescribe competitive bidding route for wind power projects?

For the projects sanctioned before the notification of the bidding guidelines, a feed in tariff that reflects the prevailing market price is necessary for the State.

Applicability of order: From date of its issuance and is valid upto 31.03.2020.

Applicable projects:

The determination of the tariff is being undertaken in the case of projects which are sanctioned by the state nodal agency and not commissioned up to this date, which are likely to be

commissioned during the above stated control period.

such new wind power projects, which are commissioned during the control period of this order Important points:

Capital cost: Rs. 5.75 crore/ MW (including cost of evacuation and implementation of connectivity standards of CEA)

CUF for wind projects: 27.5%

Interest on term loans: 10.25% p.a. (loan tenure being 13 years)

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Interest on working capital: 11.25%

Rate of depreciation: 5.28% for first 13 years and rest till 90% for remaining useful life (i.e., 25 years) of project

O&M expenses: Rs. 6 lakhs/ MW with escalation of 5.72% per annum

Return on equity (pre-tax): 17.60%

Discount rate:9.29%

Working capital: 1-month O&M and 2 months receivables and maintenance spares @ 15% of

O&M expenses Levelised tariff (Rs./unit): INR 3.61

R83) Order for Determination of Generic Tariff for Bagasse based Power Plants for FY

2018-19 & 2019-20

Order by TSERC dated 20.10.18 Tariff shall be applicable to all bagasse based co-generation plants commissioned during control period

specified in this order i.e., 2018-20.

The order now being passed is also adoptable those projects whose commercial operation date happened

to be after the year 2009 for which they have obtained sanctions and permissions from the competent nodal agencies in the combined state of Andhra Pradesh and later in the state of Telangana. However for

such projects the respective tariff will be at year levelized and relevant for the current year onwards. This order is also made applicable to those projects which have obtained sanctions and permissions from the

competent nodal agencies in the combined state of Andhra Pradesh and later in the state of Telangana but have not yet commissioned the project and are likely to commission the same during the control period

2018-2020.

Tariff methodology: Cost-plus tariff determination

Commission determines levellised fixed cost and notifies actual fuel price escalation and consequent variable cost every year based on indexation methodology.

Important points:

Capital Cost: Rs. 4.35 crore/ MW (including evacuation cost upto interconnection point)

PLF: 55%

Debt-equity ratio: 70:30

Interest rate: 10.25% p.a. for term loan and 11.25% p.a. for working capital

Return on equity: 17.60%

Useful life of plant: 20 years

Depreciation: 5.28% for 13 years and 3.05% from 14th year onwards

O&M expenses: Rs. 22.18 lakhs

Normative Station Heat rate (SHR): 3600 kcal/kWh

Gross calorific value (GCV): 2250 kcal/kg

Fuel cost: Rs. 1743/ MT with escalation of 5% from 2nd year onwards (indexation methodology for fuel price escalation)

Auxiliary consumption: 9%

Levellised fixed cost: Rs. 2.23/ unit

Variable cost: Commission to notify actual fuel cost escalation and consequent variable cost every year based on indexation methodology.

For FY 2018-19: Variable cost will be Rs. 3.06/unit.

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Uttarakhand

UERC (Tariff and Other Terms for Supply of Electricity from Renewable Energy

Sources and non-fossil fuel based Co-generating Stations) Regulations, 2018

Click here for Final regulation by UERC on 22.09.18

Click here for Statement of Reason

Applicability: 5 years, unless reviewed earlier or extended.

Which fuel sources?: Wind, small hydro , biomass power based on rankine cycle, non-fossil fuel based cogeneration projects, solar PV, thermal power projects, grid interactive rooftop and small solar pv

plants, biomass gasifier and biogas, MSW and refuse derived fuel based power projects

Normative levelised tariff of 12 paise/ unit over and above generic tariff for solar thermal/ PV generating

stations shall also be applicable to such stations commissioned prior to coming into effect of these regulations.

Existing projects can opt for switching over to supply to discoms at generic tariffs as was applicable at

time of commissioning of their projects or seek determination of project specific tariff from commission. Option shall be for balance life of project and shall not be allowed to be charged once it is exercised.

UREDA can invite tariff based competitive bids for wind, solar PV and solar thermal projects, with tariff less than that prescribed under these regulations.

Non-discriminatory Open access in state transmission/ distribution system shall be allowed to all RE

based generating stations and co-generating stations for captive use; open access subjected to availability of surplus capacity in state transmission/ distribution system and payment of transmission/ wheeling

charges and adjustment of average transmission/ distribution losses in kind.

RPO of obligated entities

Year RPO- Non solar RPO- Solar

2018-19 10.25% 6.75%

2019-20 10.25% 7.25%

2020-21 10.25% 8.75%

2021-22 10.50% 10.50%

2022-23 11.00% 11.00%

Distribution licensee shall be eligible to utilise gross solar energy generated from rooftop or small solar

power plants of non-obligated entities for meeting its solar RPO compliance based on gross energy generated meter reading of such rooftop or small solar power plant.

Option of seeking projects specific tariff shall not be available to grid interactive rooftop and small solar

pv plants, solar pv power plants, canal top and canal bank based solar pv power plants, solar thermal plants, wind energy power plants and other RE based power projects having installed capacity upto 1

MW.

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CDM benefits allowed for the projects, while benefits sharing between generating companies and

beneficiaries.

Incentives:

Only 75% of capital subsidy for financial year of commissioning as per applicable scheme of MNRE shall be considered for tariff determination.

Taxes, duties and cess levied by appropriate govt other than direct taxes shall be allowed as pass through on actual incurred basis.

Banking of power will be applicable only in case of captive RE sources generating plants and non-fossil

fuel based co-generation stations, with power drawal allowed only during period other than peak hours. Upon introduction of intra-state ABT in state, banking as well as withdrawal of banked energy shall be

subject to day ahead scheduling.

Banked power remaining unutilized on expiry of financial year would be treated as sale and financial

settlement shall be made at tariff determined by commission in its tariff order for the year during which power was banked or at generic tariff specified by commission in case of non-fossil fuel based co-

generating stations. No banking charges shall be deducted from such unutilized banked energy.

Banking charges shall be 12.5% of energy banked.

In case of non-fossil fuel based co-generating stations, which is not captive generating plant, facility of

banking shall apply only if it has a PPA with discom in the state.

Deemed generation is applicable only in case of small hydro generating plants and solar pv and solar thermal projects. Reasons attributed for loss of generation to be counted towards deemed generation:

Non availability of evacuation system beyond interconnection point

Receipt of backing down instruction from SLDC

Exceptions being:

Loss due to force majeure event(s)

Loss due to interruptions/ outages attributed to aforesaid factor(s) during period in which total duration of such outages/ interruptions, other than excluded under above, is within limit of :

o 48 hours in a month in case of small hydro project

o 50 hours in a year in case of solar PV and solar thermal project

o Provided that for working out ceiling of 50 hours in a year for solar pv and solar thermal projects, interruptions/ outages occurring during 18:00 hours in evening to 6:00 hours in

morning shall not be counted o Provided further that till 1.04.19, above limit for solar pv and solar thermal projects shall

remain at 60 hours in a month

Any loss in generation due to variations in voltage beyond limits specified above shall be reckoned as deemed generation provided such loss of generation results in reduction of more than 25% of capacity

output.

Application seeking approval of the Commission on the Draft Power Purchase

Agreement for short term power purchase between Uttarakhand Power Corp. Ltd.

and M/s Mittal Processors (P) Ltd. (MPPL), M/s PTC India Ltd., M/s Tata Power

Trading Company Ltd. (TPTCL), M/s Sembcorp Gayatri Power Ltd. (SGPL) and M/s

GMR Energy Trading Ltd

UERC order dated 31.10.18

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Application seeking approval of the Power Purchase Agreement between

Uttarakhand Power Corporation Ltd. and M/s Aglar Power Ltd. for Rayat SHP UERC order dated 26.10.18

Uttar Pradesh

Concept Paper on amendment of UPERC (Captive and Renewable Energy Generating

Plants) Regulations, 2014

Click here for Draft concept paper dated 12.10.18

Some points to ponder as the draft are as follows:

Duration of control period of regulation- 3 or 5 yrs

Tariff for the projects based on different RE sources- Competitive or preferential (due to recent

decline in tariff for RE projects) o Is there need to go for project specific tariff for SHP and Waste to energy plants?

o Need to change tariff of Rooftop solar projects on gross metering

Tariff structure of captive and RE generation o Revising feed-in tariff structure considering less economic efficiencies

o Changes in Scheduling of RE power under merit order operation

o 3 part tariff structure for RE generation o For existing captive and RE projects, for their fixed cost component, a levelized tariff for

their remaining useful life can be set. Whereas, the variable/ fuel cost component may be specified on coal equivalent basis - weighted average coal price of pit head plants of

UPRUVNL for last Quarter of previous FY which shall be applicable for that FY.

Reviewing parameters for RE power

For captive power plant based on conventional fuel, it is proposed that GSHR shall be kept at 2840 Kcal, Specific oil consumption at 0.25 ml and Auxiliary Power Consumption (APC) at 9.5%.

Implementing ABT mechanism to remove different deviation settlement mechanisms for renewables at inter-state and intra-state levels

Changing existing provisions of banking under CRE regulation

Order dated 25/10/18 for Application for Grant of Intra State Transmission License.

in Petition no 1331/2018

UPERC has granted transmission license to M/s Ghatampur Transmission Ltd. for a period of 25 years.

The applicant shall not enter into contract or otherwise engage on business of trading in electricity during

period of subsistence of transmission license. The petitioner shall provide non-discriminatory open access to its transmission system for use by any other licensee, including distribution licensee or electricity

trader or generating company or any other person.

UTs except Delhi

FPPCA CALCULATION FOR THE SECOND QUARTER OF 18-19 Calculation for FPPCA for UT of Dadra & Nagar Havelli.

The calculated FPPCA is Rs. 0.28 per unit.

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Update from Web

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Upcoming Events

SolarRoofs Punjab 2018

November 09, 2018

Event main focus is on the Latest Technology

Advancements and Improvements In Solar Rooftop Project and Business Strategies.

The conference will offer platform to discuss the policy framework while providing an unparalleled networking

opportunity for representatives from Installers, Consumers, Government authorities etc. Event has been developed to

focus on growth through discussion, Q&As and leading keynote presentations from the forerunners of Solar

Rooftop Industry.

Workshop on "C-Si Solar Cells &

Modules: Theory,Fabrication & Characterization"

November 15-17, 2018

The Workshop will cover the following topics in detail:

Introduce the participant to the physics, technology and characterization of silicon solar cells. Al-BSF solar cells

(which presently has a market share of about 80%) would

be covered in detail along with PERC and other advanced and futuristic device architectures. The course would

include hands on sessions on simulation of solar cells, and loss analysis for Al-BSF solar cells and visits to NCPRE cell

fabrication and characterization labs.

E-Vehicle Show & BV TECH EXPO INDIA

November 22-24, 2018

The India E-Vehicle Show & BV TECH EXPO INDIA platform offers an unrivalled opportunity for companies in

the Electric Vehicle (EV) industry to showcase their latest products, services and innovations. The India E-Vehicle

Show & BV TECH EXPO INDIA is the best place to meet

and network with your customers, business prospects, targeting the future market and showcasing the potential of

the eco-friendly EV technology. This action-packed event will bring together in one large showcase, electric vehicles,

hybrid vehicles, clean energy technology, and advancements in alternative transport options.

The 19th Regulators & Policymakers Retreat 2018

November 22-24, 2018

The Regulators & Policymakers Retreat (RPR), is an interactive platform where thought leaders and experts

from the regulatory, policy, industry, financial and consumer arenas in the power and allied sectors converge

to deliberate on current issues and challenges, the implications for the future and the strategies that can be

adopted to address them.

SolarRoofs Uttar Pradesh 2018

November 23, 2018

Event main focus is on the Latest Technology Advancements and Improvements In Solar Rooftop Project

and Business Strategies.

The conference will offer platform to discuss the policy framework while providing an unparalleled networking

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opportunity for representatives from Installers, Consumers, Government authorities etc. Event has been developed to

focus on growth through discussion, Q&As and leading keynote presentations from the forerunners of Solar

Rooftop Industry.

Workshop on "State-of-the-art Power Electronics Technologies

and Future Trend in Solar PV Integration"

November 26-27, 2018

The Workshop will cover the following topics in detail:

Power electronics-based converters play a vital role in efficient evacuation of power generated from solar Photo-

voltaic (PVs). The major roles includes: to interconnect PV panels in series-parallel configurations and operate at MPP;

and to act as an interface between the DC output of PV

panel and the AC grid or the loads.

Bengaluru Renewable Energy Expo

November 28-30, 2018

The scope of exhibition is to stimulate the growth of renewable in the region through collaboration of

technology and product sharing. This event will be

bringing together businesses, sustainable energy industry trade associations, government agencies, and energy policy

research organizations to showcase the status and potential of the cross-section of renewable energy (bio

fuels/biomass, geothermal, solar, wind) and energy efficient technologies.

Workshop on "Energy Storage for Solar PV"

November 28-30, 2018

Batteries, Types of batteries.

Characteristics of batteries, Battery Datasheet.

Energy storage in batteries. Battery capacity. Charging rate. Cutoff voltage. Depth of discharge

(DOD), etc.

Maintenance of batteries. Effect of temperature. Combining batteries. Battery selection criteria.

Installation requirements. Life expectancy of

batteries.

Factors that affect the life of batteries. Cost of batteries

System Controllers Introduction: Purpose of controller. The charge/discharge cycle.

Overcurrent protection. Types of controllers

Inverters Introduction: Purpose of inverter, Types of inverters.

AC system: frequency, rms, peak value, voltage, current, harmonic distortion. Power factor.

System Sizing Introduction. Resource assessment. Average daily energy usage. Total Ah demand per day.

Sizing the controller. Sizing the battery charger. Sizing the fuel generator set. Generator set run

time.

Economics Introduction. Basic economics: simple payback period, Life Cycle Costing.

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For more events click http://www.inergystat.com/events.php and get info of all the

latest upcoming events. We have big list of events which is upcoming in future.

If you like to share any event not covered by us or you are organizing any event,

please mail us the details on [email protected]