Vidyut Niyamak Bhawan, Near I.S.B.T., P.O.-Majra, Dehradun-248171
Shri Subhash Kumar
Chairman
Shri C. S. Sharma
Member
Statement of Reasons for the “UERC (Tariff and Other Terms for Supply of Electricity from Renewable Energy Sources and non-fossil fuel based Co-generating Stations) (Third Amendment) Regulations, 2015”.
Last date of submission of the comments / suggestions / objections was kept as 29.05.2015. The list of stakeholders who submitted comments is enclosed as Annexure-I. The Commission also held a hearing in the matter on 23.06.2015, list of participants is enclosed as Annexure-II.
“(c1) Billing cycle or billing period” means the period for which regular electricity bills are prepared for eligible consumers by the licensee;”
UPCL has further requested that in case of net export/injection of electricity by these eligible consumers then UPCL may allowed payment of bills to these eligible consumers once in three months to facilitate the administrative ease. In this regard, representations from various eligible consumers were made during the
hearing opposing UPCL's submissions where the eligible consumers stated that they would be required to make repayment of loans and other expenses are to be incurred on a monthly basis so it would not be viable for them if the payment is made, for the power they sell, once in three months. Moreover, parity should also be maintained between the solar generators and other generators providing power to UPCL. Therefore, basic principle of recovery of monthly expenses by eligible consumers having solar rooftop plant/small solar PV should be ensured by UPCL for financial sustainability of their projects.
In this regard, Regulation 35(3) of RE Regulations, 2013 specifies as under:
“(3) Such injection from roof-top solar PV sources of the above mentioned consumer(s) shall be settled on net energy basis at the end of each billing period.”
(Emphasis Added)
Thus, from the above reading it is clear that injections from eligible consumers have to be cleared by the end of each billing period. Furthermore, reference may also be made to Regulation 45 of RE Regulations, 2013 which deals with the provisions regarding Purchase of Electricity by the Generating station/Start up Power which also provides for monthly settlements of the net energy supplied during the month. Further, considering these developers as having limited resources with them any delay in receiving the legitimate dues/payments may jeopardise their financial health. Besides such generators are also not large in number, which might cause administrative issues as pointed by UPCL, and can be monitored easily.
Based on the above discussion, the Commission decides to specify the relevant provision of the amendment regulations as under:
“(c1) Billing cycle or Billing period” means a period of one month for which electricity bills shall be prepared for each Eligible Consumers by the licensee;”
“(cc1) “Premises” means rooftops or/and elevated 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;”
requirement of power, such consumer shall purchase the same from UPCL. With respect to UREDA's suggestion that if new adjacent areas to existing consumer premises are allowed and electricity connections are taken on such areas and thereafter, solar PV plants are set up, these plants shall not be covered under Rooftop/small solar PV net metering scheme as per the RE Regulation. Therefore, the Commission denies the request of UREDA.
““Premises” for the purpose of these Regulations means land or building or part or combination thereof in respect of which a separate meter or metering arrangement have been made by Licensee for supply of electricity;”
The definition of premises specified in the proposed draft amendment Regulations is as under:
““Premises” means rooftops or/and elevated 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;”
Thus, a premise for which a connection has been provided by UPCL can be utilized for any purpose including generation of electricity in the unutilised space or even at elevated rooftops if it is within the premise for which the consumer already has a connection.
Therefore, the Commission rejects the comments and suggestions submitted by UREDA and UPCL. However, to provide more clarity, the Commission decides to modify the definition proposed in the draft Amendment Regulation as under:
“(cc1) “Premises” means the land, building or infrastructure or part or combination thereof including the rooftops or/and elevated areas owned by the Eligible Consumer;”
“Provided that in case of implementation of a grid interactive roof top and small Solar PV plant, within the premises of a consumer of the Distribution Licensee, by a third party who is willing to have a direct commercial relationship with such Distribution Licensee for sale of net energy injected into the grid (i.e. after adjustment of consumption by owner of the premise), a
tripartite agreement will have to be entered into among the third party, the consumer at whose premises the solar plant is installed and such Distribution Licensee."
(b) Moreover, UPCL's submission of specifying in the definition that the third party although does not own the premises but is the owner of the plant is also not accepted as Regulation 3(1) (mm1) already defines 'Third Party Owner' and it is amply clear from the definition itself that third party owner means a developer who is generating solar energy from a plant established in the premises but does not own the premises, and who has entered into a lease/commercial agreement with the premises owner. Therefore, the Commission rejects the request and does not find any reason to amend the proposed Proviso except word "it" may replace "a" in the sentence as the word "its" shall depict ownership of the plant in the definition of third party owner. The word "its" is being inserted to make the definition unambiguous and provide clarity.
(2) "Roof-top Solar PV sources can be installed for injecting into the distribution system of a licensee by any eligible consumer.
Provided, the maximum Rooftop PV Solar Power Plant capacity to be installed at the premises of any Eligible Consumer shall not be more than 80% of the sanctioned connected load/contract demand of such eligible consumer.
(3) Such injection from roof-top solar PV sources owned by the consumer(s) or by third party shall be settled on net energy basis at the end of each billing period.
(4) The tariff, as per tariff orders of the Commission, in respect of the supply of electricity to the consumers by the distribution licensee shall be applicable for the net energy supplied by the licensee in a billing period if the supplied energy by the licensee is more than the energy injected by the roof-top solar PV sources of the consumer(s) or by third party.
(5) If in a billing period the supplied energy by the licensee is less than the energy injected by the roof-top solar PV sources of the consumer(s) or the third party, the licensee would be billed at the generic tariff as may be specified by the Commission for excess energy supplied to it."
(a) UREDA requested the Commission to remove the ceiling of up to 80% of the sanctioned connected load/contract demand of eligible consumer on the maximum capacity of Rooftop and Small Solar PV power plant as such a ceiling
would make the project financially unviable for the consumers and removing such a ceiling is necessary in order to encourage consumer for installation of rooftop and small solar power plant in the State of Uttarakhand. The energy charges in states which have fixed the ceiling on the maximum capacity of the rooftop solar plant are nearly equal to the per unit generation cost of solar PV power plant. However, in the State of Uttarakhand, energy charges are substantially lower than the per unit generation cost of solar PV power plant.
“PTW Consumers can opt for a Solar PV plant wherein solar panels can be installed in the agricultural land. Let some eligible Consumer opt for a Generation plant of 80 kW but has a sanctioned load of 5 HP only under PTW category for irrigation needs of the land. As per the requirement proposed in draft amendment, for installing an 80 kW small Solar PV plant Consumer is required to have a connected load of 100 KW. Now as per the prevalent Rules and Regulations a Consumer is free to seek 100 KW under PTW category and for that UPCL needs to provide a separate 250 KVA transformer. It is certain that self consumption in this case would be negligible compared to the generation and hence the net off of energy would be pretty much one sided. It is quite clear that misuse of above amendment is very much expected in the light of Commercial mentality
and hence the basic guiding principle of leftover power after self use or net off power would be mocked off.
To curb this misuse a nominal, i.e. 20% self use minimum energy clause needs to be added as it will not hurt the genuine consumers considering their self use energy would be much higher than just 20% of generating energy in case their generating capacity would be 80% of the genuine sanctioned load.”
guideline dated 26.06.2014 has prescribed the maximum capacity of grid-connected rooftop solar plants as following:
“3.2 The grid connected rooftop solar photovoltaic power generation plants up to a maximum capacity of 500 kWp per project/system to generate electricity/power would be eligible under the Programme. The minimum capacity of 1.0 kW would be eligible under this programme. The programme may be implemented in Urban and Rural Areas as well. The programme encourages installation of rooftop solar photovoltaic power generation plant for self-consumption as well as supply/sale of electricity to the grid.”
In view of the above provision specified by MNRE the Commission also decided to limit the capacity of such plants as 500 kWp so as to ensure eligibility of plants to avail benefits of the MNRE's scheme.
energy generated) shall be paid at the lowest base slab of energy charges prescribed in the Rate Schedule for the said Eligible Consumer.
Amendment of Regulation 35 of the Principal Regulation: sub-regulations (2), (3), (4) & (5) of Regulation 35 shall be amended as under:
“(2) Roof-top Solar PV sources can be installed for injecting into the distribution system of a licensee by any Eligible consumer.
Provided, the maximum installed capacity of rooftop PV solar power plant & small solar PV plant at the premises of eligible consumer shall not be more than 500 kW.
(3) Injection from roof-top solar PV sources owned by the Eligible consumer(s) or by third party shall be settled on net energy basis at the end of each Billing period.
Provided, such net energy shall not be more than 95% of the actual energy generated in the said Billing Period.
Provided, where the net energy injected exceeds 95% of the actual energy generated in a Billing Period, such excess net energy (net energy - 95% of actual energy generated) shall be paid at the lowest base slab of energy charges prescribed in the Rate Schedule for the said Eligible Consumer.
(4) The tariff, as per tariff orders of the Commission, in respect of the supply of electricity to the consumers by the distribution licensee shall be applicable for the net energy supplied by the licensee in a billing period if the supplied energy by the licensee is more than the energy injected by the roof-top solar PV sources of the consumer(s) or by third party.
Provided that such eligible consumer shall, however, be exempted from payment of monthly minimum charges or monthly minimum consumption guarantee charges or any other charges.
Provided further that no open access charges including surcharges shall be leviable on such eligible consumers for the captive use of power.
(5) If in a billing period the supplied energy by the licensee is less than the energy injected by the roof-top solar PV sources of the consumer(s) or the third party, subject to provisions in sub-Regulation (3) above, the licensee would be billed at the generic tariff as may be specified by the Commission for such net energy supplied to it."
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supply is off. Hence, it will be the duty of the consumer to compensate for the cost of not only the damages to the material of the licensee but also compensate for the life of any human being/ animals in case of such accidents.
(1) Roof-top Solar PV sources shall be allowed connectivity at the following voltage level in the distribution system of the licensee:
(2) If any dispute arises about connectivity of such sources with the grid, the matter shall be referred to the Commission whose decision in this regard shall be final.
(3) Supply of electricity to the consumer(s) from the licensee's sources and that to the licensee's distribution system from the roof-top Solar PV sources shall be measured either by two separate meters, the readings of which shall be used in each billing period for settlement on net basis or alternatively by an export-import type meter suitable for directly measuring the net exchange.
(4) The cost of switch gear, metering and protection arrangement at generator end shall have to be borne by the owner of solar generators. However, Check Meter with same specification as that of Main Meter shall be provided by distribution licensee.
Provided, Check Meter and related equipments can be procured by such plant owner. However, the cost of Check Meter shall be refunded by the licensee to such plant owner.*
(5) In the interconnection of roof top PV solar energy generator with the local distribution licensee's grid, the relevant provisions of the Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 2010 as amended from time to time shall apply.
(6) The roof top PV solar energy generator shall be responsible for safe operation, maintenance and rectification of defect of its system up to the interconnection point beyond which the responsibility of safe operation, maintenance and rectification of any defect in the system including the net meter shall rest with the distribution licensee.
(7) The eligible consumer shall be solely responsible for any accident to human being/ animals whatsoever (fatal/nonfatal/departmental/non-departmental) that may occur due to back feeding from the solar plant when the grid supply is off and shall bear the cost of not only the damages to the material of the licensee but also compensate for the life of any human being/ animals in case of such accidents. The distribution licensee reserves the right to disconnect the consumer's installation at any time in the event of such exigencies to prevent accident or damage to man and material."
UREDA requested the Commission to also clarify the applicability of open access on grid interacted rooftop and small solar PV power plant in the proposed amendment of principal regulations.
rooftop or small solar PV power plants, the Commission decides that no open access charges shall be leviable on such consumers including cross subsidy surcharge. Moreover, such consumers shall also be exempted from payment of monthly minimum charges or monthly minimum consumption guarantee charges or any other charges as their entire energy requirement would be met out of their generation.
Hence, the following provisos have been inserted after sub-Regulation 4 of Regulation 35:
“Provided that such eligible consumer shall, however, be exempted from payment of monthly minimum charges or monthly minimum consumption guarantee charges or any other charges.
Provided further that no open access charges including surcharges shall be leviable on such eligible consumers for the captive use of power.”
(a) UREDA requested the Commission to increase the Solar Renewable Purchase Obligation. However, the Commission observes that vide the existing RE Regulations, 2013 having control period of five years, wherein, RPO targets have been specified for the control period to be complied by the obligated entities. Upward revision of the RPO targets for distribution licensee and other obligated entities in the State shall not be a plausible measure keeping in view of the ground reality that these obligated entities are not able to meet the present targets of RPO. Accordingly, the Commission is of the opinion that revising the said targets would create an extra burden on the obligated entities. Furthermore, the proviso to sub-Regulation 1 of Regulation 9 specifies that if the energy from renewable and non-conventional sources of energy becomes available, over and above the specified RPO, the generator or the obligated entity shall approach the Commission. Hence, the Commission may review the RPO's when such situation comes.
By the order of the Commission
(Neeraj Sati)
Secretary
| Sr. No. | Name | Designation | Organisation | Address |
|---|---|---|---|---|
| 1. | Sh. M.A. Khan | General Manager (F) |
Uttarakhand Power Corporation Ltd. |
Victoria Cross Vijeta Gabar Singh Bhawan, Kanwali Road, Dehradun. |
| 2. | Sh. A.K. Tyagi | Chief Project Officer |
Uttarakhand Renewable Energy Development Agency |
Urja Park Campus, Industrial Area, Patel Nagar, Dehradun |
| Sr. No. | Name | Designation | Organisation | Address |
|---|---|---|---|---|
| 1. | Sh. M.A. Khan | General Manager (RM) | Uttarakhand Power Corporation Ltd. | Victoria Cross Vijeta Gabar Singh Bhawan, Kanwali Road, Dehradun. |
| 2. | Sh. Pravesh Kumar | Executive Engineer (Comm.) | Uttarakhand Power Corporation Ltd. | Victoria Cross Vijeta Gabar Singh Bhawan, Kanwali Road, Dehradun. |
| 3. | Sh. Mahendra Kumar | Sr. Law Officer | Uttarakhand Power Corporation Ltd. | Victoria Cross Vijeta Gabar Singh Bhawan, Kanwali Road, Dehradun. |
| 4. | Sh. Anurag Sharma | Advocate | Uttarakhand Power Corporation Ltd. | Victoria Cross Vijeta Gabar Singh Bhawan, Kanwali Road, Dehradun. |
| 5. | Sh. A.K. Tyagi | Chief Project Officer | Uttarakhand Renewable Energy Development Agency | Urja Park Campus, Industrial Area, Patel Nagar, Dehradun |
| 6. | Sh. Ishant Choudhary | Project Engineer | Uttarakhand Renewable Energy Development Agency | Urja Park Campus, Industrial Area, Patel Nagar, Dehradun |
| 7. | Sh. Pramod Kumar | Sr. Project Officer | Uttarakhand Renewable Energy Development Agency | Urja Park Campus, Industrial Area, Patel Nagar, Dehradun |
| 8. | Sh. Abhishek Pandey | Sr. Project Engineer | Uttarakhand Renewable Energy Development Agency | Urja Park Campus, Industrial Area, Patel Nagar, Dehradun |