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					</table>The Central Electricity Authority (<a href="https://cea.nic.in/?lang=en" target="_blank" rel="noopener">CEA</a>) has proposed a national framework to rationalize fixed charges and redesign retail tariffs to improve the recovery of fixed costs incurred by distribution companies (DISCOM).
The report, titled “Report on Rationalising Consumer Fixed Charge to Reflect Fixed Costs of DISCOM,” was prepared after deliberations with stakeholders and has been suggested for placement before the Forum of Regulators for implementation.
The report states that fixed costs account for 38% to 56% of the annual revenue requirement of DISCOMs across the states studied. However, fixed charges currently contribute only 9% to 20% of total retail tariff revenue in several states.
According to the report, this gap causes DISCOMs to recover fixed costs through energy charges. This creates tariff distortions, increases volume risk for DISCOMs, and shifts infrastructure costs across consumer categories.
Fixed-Cost Recovery
The report identifies fixed-cost components as power purchase fixed costs, transmission charges, load despatch centre charges, and distribution costs. Distribution costs include return on equity, interest on loans, depreciation, operations and maintenance expenses, and interest on working capital.
It recommends that states adopt a uniform framework for calculating fixed costs to improve consistency, transparency, and cost reflectivity.
The report proposes that fixed charges for retail tariffs be progressively increased to target levels over the next five years, by 2030. It recommends a phased approach that accounts for existing tariff frameworks, regulatory decisions, metering infrastructure, and consumer capacity to absorb the increase.
For domestic and agricultural consumers, the report recommends fixed-cost recovery of 25% by 2030, followed by a higher target of 50% by 2035.
For industrial, commercial, and institutional consumers, it recommends fixed-cost recovery of 100%.
Tariff Redesign
The report recommends standardizing two-part tariffs for all consumer categories. For low-tension residential consumers, fixed charges should be levied at ₹/kW/month. For high-tension categories, including industrial, commercial, and institutional consumers, fixed charges should be levied at ₹/kVA/month.
It notes that many states currently levy flat monthly charges for residential consumers, independent of consumer demand. It says this creates a weak link between consumer load and the fixed cost imposed on the system.
It recommends linking fixed charges to consumer demand where possible.
Billing Demand
The report says fixed charges for industrial consumers are levied on a per kVA basis, but the definition of billing demand varies across states.
In most of the states studied, billing demand is defined as the higher of the maximum demand recorded during the month or a specified percentage of contract demand. The report notes that this percentage varies across states, creating scope for distortion and a lack of uniformity.
It recommends standardizing billing demand across states by linking it to the higher of a percentage of contract demand, the actual maximum demand, or the maximum peak demand.
kVAh Billing
The report recommends shifting to kVAh billing for consumers above 50 kW or other state-specified thresholds. It says replacing separate power factor incentives and penalties with kVAh billing would simplify tariffs and reflect power costs more directly. The report notes that inefficiencies are inherently reflected in higher kVAh consumption.
Open Access and Captive Consumers
The CEA report states that open access and captive consumers reduce DISCOM energy sales but remain connected to the grid for outages, maintenance, and peak demand.
Without standby charges, the report says DISCOMs procure power, incur fixed costs, and maintain infrastructure for such consumers, while recovering little or no cost from them when they source power from other suppliers.
It recommends separate standby charges for open access and captive consumers. These charges may include a fixed commitment charge per kW of contracted capacity per month, with separate charges for planned and unplanned standby.
Stranded capacity can arise when DISCOMs procure power under power purchase agreements and invest in infrastructure, while consumers reduce drawal from the grid through open access or captive options.
Residential and Small Consumers
The report cautions against a blanket increase in fixed charges for all consumers. It says small consumers with lower appliance use and lower motive loads contribute less to fixed costs. A move toward cost-reflective fixed charges may disproportionately affect low-income and rural consumers, especially those with poor supply quality and network access.
It recommends differentiated tariff treatment for both small and large consumers. It notes that Maharashtra, Tamil Nadu, Rajasthan, Andhra Pradesh, and Gujarat have differentiated tariffs for small and larger consumers.
Net Metering Consumers
The report recommends separate tariff categories for net metering consumers. It says net-metered consumers import power from the grid during non-solar hours and export power during solar hours. In states where net-metered consumers are billed mainly on net energy consumption, even wheeling costs may not be recovered if fixed charges remain low.
It also recommends separate fixed, variable, and time-of-day tariff components for net metering consumers.
Time-of-Day Tariffs and FPPAS
The CEA report says increasing fixed charges and reducing energy charges can affect time-of-day tariff signals. Several states apply time-of-day rebates or surcharges as a percentage of energy charges. If energy charges fall, the same percentage rebate or surcharge will have a lower rupee value.
Time-of-day tariff differentials may need to increase from 20% of energy charges to 30%-35% to retain the same price signal.
It also flags a similar issue for Fuel and Power Purchase Adjustment Surcharges (FPPAS). If fixed charges are increased and energy charges are reduced, FPPAS would take up a larger share of the revised energy charge.
International Practice
The report says that advanced economies such as the U.S., the UK and European countries generally use two-part retail electricity tariff structures comprising fixed or standing charges and variable per-kWh charges.
Residential fixed charges are usually lower than industrial fixed charges. Household fixed charges are typically 10% to 25% of total bills, while industrial consumers may have fixed shares of 25% to 45%.
This approach reflects the higher-capacity infrastructure required to serve industrial consumers.
Impact on Consumers
The report notes that the impact of higher fixed charges will vary across consumer categories and states. For industrial consumers with low load factors, increasing fixed charges could raise total electricity bills even if average tariffs remain unchanged. The report says consumers with low utilization may see a higher fixed-charge share in their bills.
Higher fixed charges may reduce energy charge arbitrage but may not fully prevent migration to captive power or open access. Large fixed-charge liabilities may encourage consumers to reduce contract demand through solar and storage investments.
Tariff redesign must therefore be phased and supported by category-specific approaches.
The framework concludes that recovering fixed costs through fixed or demand charges is essential to the financial viability of DISCOMs and to fair cost allocation among consumers. It says a shift toward fixed-cost recovery can help reduce cross-subsidy distortions and make retail tariffs more transparent and cost-reflective.
To make distribution companies more financially viable, the Ministry of Power has <a href="https://www.mercomindia.com/government-proposes-cost-reflective-power-tariffs-in-draft-amendment-bill" target="_blank" rel="noopener">proposed</a> an amendment to the Electricity Act, 2003, mandating electricity regulators to issue cost-reflective power tariffs.
Last August, the Supreme Court <a href="https://www.mercomindia.com/supreme-court-orders-pay-dues-discoms-four-years">directed</a> the states to clear the pending dues of approximately ₹1.74 trillion (~$19.72 billion) owed to DISCOMs within four years. New dues created after April 1, 2024, must be liquidated within three years.
Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates </a>to ensure you don’t miss any critical updates from the renewable industry.

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					</table>The Telangana Electricity Regulatory Commission (<a href="https://www.tgerc.telangana.gov.in/" target="_blank" rel="noopener">TGERC</a>) has determined that no additional surcharges will be levied on open access power consumers for the second half (2H) of the financial year (FY) 2026.
Previously, the Commission determined an additional tariff of ₹1.45 (~$0.016)/kWh in 1H FY 2026.
The new nil surcharge approved by the Commission will be applicable from October 1, 2025, to March 31, 2026.
TGERC stated that it decided not to impose the surcharge because the Telangana distribution companies (DISCOMs) had no recoverable stranded charges.
Background 
The Southern Power Distribution Company of Telangana and the Northern Power Distribution Company of Telangana had filed petitions for the determination of an additional surcharge to be levied on open access consumers for 2H FY 2026.
As per the Commission&#8217;s directions, the DISCOMs issued public notices regarding the additional surcharge for this period in two newspapers.
The DISCOMs approached the Commission to approve an additional surcharge of ₹0.35/kWh for 2H FY 2026.
The petitioners informed the Commission that stakeholders did not file any objections or suggestions in response to the public notice.
Commission’s Analysis
The Commission observed that the DISCOMs followed the approved methodology for calculating the additional surcharge by averaging the 15-minute time-block data over the entire six-month period.
It also agreed with the DISCOMs’ claim that open access sales for the period were 254.72 million units (MU).
Reviewing the DISCOMs’ 15-minute time block data, the Commission found that in certain periods, the scheduled capacity exceeded the available capacity due to the allotment of un-requisitioned surplus to them.
TGERC also noted that the DISCOMs considered gross deficit/surplus for the 15-minute time block period as nil.
Additionally, the Commission stated that the DISCOMs purchased energy under short-term arrangements and sold power in the market during specific time blocks when surplus capacity was available.
It added that these short-term purchases during surplus capacity periods cannot be attributed to stranded capacity from open access consumers.
Therefore, the Commission held that the stranded capacity must be calculated after deducting short-term purchases from the gross (deficit)/surplus in the corresponding time block.
It approved the stranded capacity for open access as 92.26 MW against the DISCOMs’ claim of 93.02 MW.
The DISCOMs computed the fixed charges for stranded capacity as ₹533.7 million (~$6 million), based on 92.96 MW of stranded capacity at a rate of ₹5.74 million (~$64,655)/MW.
The transmission charges per unit have been worked out as ₹0.56 (~$0.006)/kWh, while the distribution charges for the high-tension network have been calculated at ₹0.11 (~$0.001)/kWh.
The Commission determined the transmission and distribution charges payable by open access consumers at ₹1.28 billion (~$14.4 million).
It also determined that the demand charges recovered by the DISCOMs from open access consumers were approximately ₹632.9 million (~$7.12 million).
The Commission observed that since there were no net stranded charges recoverable from open access consumers, the demand charges would be adjusted to ₹632.9 million (~$7.13 million), exceeding the fixed charges of ₹533.7 million (~$6 million) for stranded capacity.
The Commission approved a nil additional surcharge after considering that the DISCOMS had no recoverable stranded charges.
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Open access developers in Telangana say that despite <a href="https://www.mercomindia.com/policy-uncertainty-a-barrier-for-solar-open-access-in-telangana" target="_blank" rel="noopener">growing</a> demand from energy-intensive industrial sectors, solar open access projects are not seeing much traction in the state due to a lack of policy clarity.
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Telangana Drops Additional Surcharge for Open Access Consumers in 2H FY 2026

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					</table>The Telangana State Electricity Regulatory Commission (<a href="https://tserc.gov.in/" target="_blank" rel="noopener">TSERC</a>) has increased the additional surcharge for open access consumers to ₹1.98 (~$0.0237)/kWh for the second half (2H) of the financial year (FY) 2023-24.
The new rate, effective from October 1, 2023, to March 31, 2024, is a 408% increase from ₹0.39 (~$0.0046)/kWh <a href="https://www.mercomindia.com/telangana-regulator-cuts-open-access-levy-by-72-1h-fy24">set</a> by the Commission for the first half (1H) of the year.
The Southern Power Distribution Company of Telangana (<a href="https://www.tssouthernpower.com/" target="_blank" rel="noopener">TSSPDCL</a>) and the Northern Power Distribution Company of Telangana (<a href="https://tsnpdcl.in/" target="_blank" rel="noopener">TSNPDCL</a>) had filed petitions for the determination of the additional surcharge to be levied on open access consumers for 2H of FY 2023-24.
Background
In 2020, the Commission had issued an order to implement a mechanism for the determination of stranded capacity and framing the terms and conditions for the levy of additional surcharge on open access consumers.
The state DISCOMs, as directed by the Commission, published a public notice in daily newspapers on July 11, 2023. It was also notified in the public notice that objections or suggestions, if any, on the filings may be filed before August 2, 2023.
In response to the public notice issued by the DISCOMs, 17 stakeholders submitted their comments.
Based on the revised methodology, the state DISCOMs submitted that the additional surcharge proposals for 2H of FY24 were made by considering the actual parameters pertaining to 2H of FY23.
The DISCOMs added that the additional surcharge in all other states was higher than the approved additional surcharge for 1H of FY24 in Telangana by 92% to 380%.
Commission’s analysis
The Commission&#8217;s examination of the DISCOMs&#8217; 15-minute time-block data for the period spanning from October 2022 to March 2023 revealed that the DISCOMs had calculated the average data on a daily and monthly basis, as well as over a six-month period. This approach of averaging data at intermittent intervals was not in line with the approved methodology.
Consequently, the Commission approved the long-term available capacity by averaging the 15-minute time-block data over the entire six-month period, resulting in a capacity of 9,198.60 MW, which differed from the claimed 9,191.58 MW.
It noted that the DISCOMs had engaged in short-term energy purchases and the sale of surplus power in the market during specific time blocks when surplus capacity was available.
Consequently, the calculation of stranded capacity was determined by netting these short-term purchases and surplus power sales during each time block. As a result, the approved stranded capacity due to open access was determined to be 46.22 MW, which differed from the initial claim of 47.42 MW.
Charges for Stranded Capacity
The state DISCOMs had initially reported fixed charges of ₹65.74 billion (~$789.41 million) were paid from October 2022 to March 2023. However, the Commission took note of the total fixed charges incurred by the DISCOMs for FY 2022-23, which amounted to ₹112.89 billion (~$1.36 billion). The Commission had already factored in ₹55.89 billion (~$671.13 million) of these charges when determining the additional surcharge for the first half of FY 2023-24.
As a result, the balance of ₹56.99 billion (~$684.34 million) was allocated towards covering the fixed costs of the DISCOMs for 2H of FY 2023-24. This calculation yielded an average fixed charge of ₹6.2 million (~$74,450)/MW.
Consequently, the Commission calculated the average fixed charges to be ₹286.4 million (~$3.44 million).
Transmission Charges 
The state DISCOMs had submitted a request for transmission charges amounting to ₹24.84 billion (~$298.28 million) covering the period from October 2022 to March 2023. The Commission approved this amount.
During this period, the scheduled energy claimed by the DISCOMs was 39.635 BU. The Commission, however, observed that the total energy scheduled for DISCOMs for the FY 2022-23 was 75.311 BU. When calculating the additional surcharge for the first half of fiscal year 2023-24, the Commission had already factored in 35.288 BU of this energy. Consequently, the balance of 40.022 BU was considered the scheduled energy of DISCOMs for the second half of FY 2022-23.
As a result of this calculation, the Commission determined the transmission charges to be ₹0.62 (~$0.0075)/kWh, which differed from the initial claim of ₹0.63 (~$0.0076)/kWh.
Distribution Charges 
The Commission worked out the distribution charges of ₹0.18 (~$0.0022)/kWh by considering the distribution charges of the HT network, i.e., 11 kV and 33 kV.
The total transmission and distribution charges per unit worked out to be ₹0.80 (~$0.0096)/kWh.
Accordingly, the transmission and distribution charges payable by open access consumers worked out to be ₹1.376 billion (~$16.57 million).
Demand Charges
The state DISCOMs had collected demand charges amounting to ₹1.863 billion (~$22.37 million) from open access consumers. The Commission noted that it was reasonable to exclude the revenue recovery related to the Low-Tension (LT) network because the distribution charges for the LT network are not factored into the expenditure calculations. Consequently, the Commission has determined that ₹1.401 billion should be considered the demand charges, excluding the LT network cost recovery portion.
The regulator instructed the state DISCOMs to calculate the total demand charges recovered for the HT network only, excluding the LT network cost recovery, in their future filings for additional surcharges.
Open Access Sales
Initially, in the filings, the DISCOMs had claimed the open access sales as 129.14 MU. However, in the additional information, the DISCOMs had furnished the open access sales, other than captive transactions, from October 2022 to March 2023 as 132.30 MU. The Commission found this to be in order.
Considering the above factors, the Commission approved the additional surcharge for 2H of FY 2023-24 as ₹1.98 (~$0.0237)/kWh.
Last month, TSERC <a href="https://www.mercomindia.com/telangana-draft-intrastate-open-access-regulations" target="_blank" rel="noopener">issued</a> the draft Intrastate Open Access Regulations 2023, allowing consumers with a contracted demand or sanctioned load of 100 kW or higher to avail of green energy open access.
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Telangana Increases Additional Surcharge for Open Access by 408% for Second Half of FY24

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					</table>The Telangana State Electricity Regulatory Commission (<a href="https://tserc.gov.in/" target="_blank" rel="noopener">TSERC</a>) has approved a reduced additional surcharge of ₹0.39 (~$0.0047)/kWh for open access consumers who avail power from any source other than the distribution companies (DISCOMs) of the state.
This is a 72% drop from the additional surcharge of ₹1.38 (~$0.017)/kWh applicable from October 1, 2022, to March 31, 2023.
The Southern Power Distribution Company of Telangana (<a href="https://www.tssouthernpower.com/" target="_blank" rel="noopener">TSSPDCL</a>) and the Northern Power Distribution Company of Telangana (<a href="https://tsnpdcl.in/" target="_blank" rel="noopener">TSNPDCL</a>) filed petitions for the determination of an additional surcharge to be levied on open access consumers for the first half (1H) of the financial year (FY) 2023-24
Background
The DISCOMs’ petitions proposed to recover an additional surcharge of ₹9.81 (~$0.119)/kWh from the open access consumers, calculated on the basis of slot-wise surrendered power and slot-wise open access power.
Later, the Commission issued a public notice inviting suggestions and objections from the stakeholders.
The state DISCOMs requested the Commission to consider any variation in fixed charges in the ensuing filings of the additional surcharge as and when the final audited accounts are available.
One of the stakeholders, in its submission, said that the DISCOMs’ proposal of the additional surcharge was very high. In fact, the proposal was more than the retail supply tariff and was against the interest of the consumers.
Another stakeholder said that the fixed charge claimed by the petitioners was incorrect. The DISCOMs had claimed the fixed cost for 1H of FY 2022-23 of ₹55.89 billion (~$683.46 million). The stakeholder had worked out the allowable fixed charges as ₹54.14 billion (~$662.06 million) against ₹55.89 billion (~$683.46 million).
The DISCOMs, in their response, said that they had already provided the complete breakup of the individual fixed cost of each generating station that has been considered in the determination of additional surcharge for 1H of FY 2023-24. All the details regarding plant availability and schedules and respective calculation sheets were provided, and the details were hosted on the DISCOMs’ website for access to the stakeholders.
Another stakeholder pointed out that the DISCOMs’ proposal was against the Ministry of Power’s Green Energy Open Access Rules, 2022.
The DISCOMs argued that removing the additional surcharge would result in licensees bearing excessive fixed costs associated with the power purchase agreement (PPA) signed for a long-term duration (25 years) on account of stranded capacity due to the switching of existing consumers. The additional surcharge helps in assuaging financial worries. Removal of such charges would put DISCOMs under pressure.
Commission’s analysis
On examination of 15-minute time-block data from April 2022 to September 2022, the Commission noted that the DISCOMs had averaged the 15-minute time-block data for the entire six-month period per the approved methodology.
Further, the Commission observed that the DISCOMs had purchased the energy under short-term purchases during certain time blocks when surplus capacity was available. The Commission opined that the short-term purchases during the availability of surplus capacity could not be attributed to stranded capacity due to the open access consumers. Accordingly, the Commission approved the capacity stranded due to open access as 64.87 MW against 78.10 MW provided by the DISCOMs.
The Commission said that average fixed charges worked out to be ₹6.5 million (~$79,487)/MW. Accordingly, the fixed charges for stranded capacity worked out to be ₹419.3 million (~$5.13 million).
Also, the Commission computed the transmission charges as ₹0.67 (~$0.008)/kWh.
Additionally, the DISCOMs had claimed open access sales of 213.29 MU pertaining to open access other than captive transactions from April 2022 to September 2022.
Considering the above parameters, the Commission arrived at the additional surcharge of ₹0.39 (~$0.0047)/kWh for six months from April 1, 2023, to September 30, 2023.
The Gujarat Electricity Regulatory Commission recently <a href="https://www.mercomindia.com/gujarat-additional-surcharge-open-access-2" target="_blank" rel="noopener">approved</a> an additional surcharge of ₹0.76 (~$0.0092)/ kWh, which will apply to consumers availing power through open access from April 1, 2023, to September 30, 2023 period.
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Telangana Regulator Cuts Open Access Levy by 72% to ₹0.39/kWh for 1H FY24

The Punjab State Electricity Commission (<a href="http://pserc.gov.in/" target="_blank" rel="noopener noreferrer">PSERC</a>) has invited comments, objections, and suggestions for a proposal by the state government to lower the renewable purchase obligations (RPOs) of power establishments for the year to alleviate the financial burden on distribution companies (DISCOMs) and consumers due to the ongoing COVID-19 crisis.
The Punjab government, on April 7, 2020, had written a letter to the state commission asking it to reduce RPOs by 1.5% and 2% for the years 2019-20 and 2020-21, respectively, to help the power sector operate smoothly in these difficult times.
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In its response, the Punjab State Power Corporation Limited (PSPCL) shed some light on the shortages caused by delays arising due to the COVID-19 pandemic and said that these delays would continue.
The PSPCL listed out some delayed projects which included 30 MW of solar rooftops projects commissioned in August 2019, 300 MW of large-scale solar, and 200 MW of wind power projects assigned by the National Thermal Power Corporation (NTPC) in March 2019. It also added that the delayed commissioning of 40 MW of cogeneration projects would only be done in the financial year (FY) 2021-22. There are nearly 110 MW of solar projects which are under litigation due to the pandemic, it further added. It also noted that the commissioning of 26 MW of a 150 MW wind project has not been completed and may get extended further.
The DISCOM said that because of these issues, the shortfalls of solar and non-solar RPOs were by 140.71 million units (MU) and 495.67 MU, respectively, for the FY 2019-20. The renewable energy certificates (RECs) for these shortfalls would cost ₹1 billion (~$13.15 million), it added.
The tentative shortfall in FY 2020-21 is expected to be around 899.26 MUs and would lead to ₹2.2 billion (~$28.93 million) in corresponding REC expenditure. Overall, reducing RPOs for these two years would lead to savings of ₹3.2 billion (~$42.08 million).
The DISCOM noted that unless RPO targets are reduced, the financial burden on PSPCL’s consumers will increase.
The state government had also asked the Commission for the exemption of fixed charges for medium supply (MS) and large supply (LS) industrial consumers for two months, starting March 23, 2020, and for energy charges to be fixed only to the extent of the amount reduced by waiving fixed charges (single rate).
The proposal implies that MS and LS consumers would only be billed based on the actual meter reading (AMR). Adding to this proposal, the PSPCL said that after two months of exemptions, fixed charges for the period could be recovered from medium and large supply consumers through arrears paid over ten months. The DISCOM noted that the financial relief consumers would receive on account of the exemptions would amount to ₹2.47 billion (~$32.48 million).
Recently, the PSPCL <a href="https://mercomindia.com/punjab-discoms-receives-%e2%82%b9350-million-advance-payment/" target="_blank" rel="noopener noreferrer">introduced</a> an innovative plan calling on all its consumers to make payment in advance towards their estimated electricity bills up to March 2021. The customers can pay to the extent they can through digital modes and earn interest @1% per month on the advance payment. The DISCOM has stated that it has received an advance payment of ₹350 million ($4.61 million) in less than a week.
Previously, Mercom <a href="https://mercomindia.com/punjab-reduce-late-payment-surcharge-discoms/" target="_blank" rel="noopener noreferrer">reported</a> that due to the ongoing lockdown as a result of the Coronavirus (COVID-19) outbreak, the Punjab State Electricity Regulatory Commission has provisionally reduced the rate of late payment surcharge to 6% per annum if the due date falls between March 24, 2020, and June 30, 2020.
Earlier, the PSPCL <a href="https://mercomindia.com/days-after-invoking-force-majeure-punjab/" target="_blank" rel="noopener noreferrer">allowed</a> Prayatna Developers Private Limited, a solar power special purpose vehicle of Adani Power Limited, to inject solar power into the grid with immediate effect. The PSPCL had <a href="https://mercomindia.com/punjab-curtailing-power-force-majeure-coronavirus/" target="_blank" rel="noopener noreferrer">issued</a> a force majeure notice several days ago, stating that it has been forced to curtail power purchase and generation due to the ongoing nationwide lockdown.

Punjab Mulls Reducing Renewable Purchase Obligations Amid COVID-19 Crisis

The month of August saw some important headlines from India’s renewable energy space, with Andhra Pradesh’s ongoing debacle making the biggest headlines. Here is a snapshot of some of the most interesting developments that took place in the sector throughout the month.
Amidst the ongoing tussle between the newly-formed government in Andhra Pradesh and renewable developers regarding the <a href="https://mercomindia.com/aptel-no-public-hearing-solar-tariffs-competitive-bidding/">tariff</a> of wind and solar projects, the Appellate Tribunal for Electricity (APTEL) has directed the Andhra Pradesh Electricity Regulatory Commission (APERC) not to allow the state DISCOMs to withdraw their petitions. The tribunal has also restrained the commission from holding a public hearing for the approval of solar tariffs that had duly followed the competitive bidding process.
In <a href="https://mercomindia.com/mnre-bis-certification-solar-modules/">another development</a>, the Ministry of New and Renewable Energy (MNRE) issued a notification regarding BIS (Bureau of Indian Standards) certification for the replacement of solar modules in old projects.  According to the latest notification, two modules per MW will be exempted from BIS certification instead of two modules per project as specified in the previous notification.
The Environment Ministry has taken a step forward to encourage investments in wind power projects and to provide clean energy at affordable prices. The Ministry of Environment, Forest and Climate Change has decided to relax the lease rent of <a href="https://mercomindia.com/environment-ministry-lease-rent-wind-projects/">₹30,000 (~$417)/MW</a> charged for wind projects. According to the government, at present, to establish wind power project over forest land, the existing procedure requires payment of mandatory charges for compensatory afforestation and net present value. In addition to the mandatory charges, the wind power companies had to pay an additional lease rent of ₹30,000 (~$417)/ MW. However, this additional cost is not mandatory for other renewable energy projects such as solar power and hydroelectric projects.
Orix, a financial services group, headquartered in Tokyo, has announced that it will acquire a <a href="https://mercomindia.com/ilfs-sells-wind-subsidiaries-orix-japan/">51% stake</a> in seven wind power generating subsidiaries which it jointly owns with Infrastructure Leasing &amp; Financial Services Wind Energy Ltd (IWEL). Orix has held 49% of the shares of seven special purpose vehicles with the aim of developing its wind power generation business in India. These seven SPVs operate wind power projects with a combined capacity of 873 MW in seven states mainly in the southern and western parts of India, where wind conditions are particularly favorable.
The Minister for Power R. K. Singh has <a href="https://mercomindia.com/india-import-duty-solar-equipment/">announced</a> that the import duty that’s currently being levied on solar equipment will be raised in the coming years. He also announced that a storage policy would be unveiled soon which would provide tax incentives, especially for solar equipment manufacturing in India. Singh assured that the rise in import duty would not impact the solar energy bidding process in India.
The Central Electricity Authority (CEA) is planning to maintain the <a href="https://mercomindia.com/cea-dues-discoms-solar-wind-developers/">database</a> of all outstanding dues by distribution companies to renewable energy generators. Several developers are in a tight spot due to the non-payment of their dues by various state distribution companies. In its letter dated August 5, 2019, the CEA has asked renewable generators to provide the details of such dues every month. They have also been asked to submit their contact details so that they can have access to the PRAAPTI portal.
The MNRE has issued a letter to the chief secretaries of all states and union territories, asking them to ensure that ‘<a href="https://mercomindia.com/mnre-states-solar-wind-energy/">must run</a>’ status has been accorded to both wind and solar power projects in the states in line with the Indian Electricity Grid Code 2010 and the Electricity Act 2003. “According to existing instructions, solar and wind power can be curtailed only for reasons of grid safety and security and that too after communicating reasons of curtailment in writing to generators,” states the letter dated August 1, 2019.
Also, it has issued a clarification regarding <a href="https://mercomindia.com/mnre-renewables-fixed-charge-payment-security-mechanism/" target="_blank" rel="noopener noreferrer">fixed charges</a> in the newly issued payment security mechanism regulations. The ministry has stated that in the case of solar, wind, and small hydro projects, the fixed charge will be the tariff at which power is purchased by the distribution company. It has also clarified on how energy will be charged during the non-dispatch of power.
According to central government estimates, Karnataka has emerged as the <a href="https://mercomindia.com/karnataka-tops-government-rooftop-solar-attractiveness-index/" target="_blank" rel="noopener noreferrer">best state</a> in India for rooftop solar projects. Minister of Power R.K. Singh recently released a survey report titled ‘The State Rooftop Solar Attractiveness Index’ (SARAL) which reveals that after Karnataka, Telangana, Gujarat and Andhra Pradesh, have taken the second, third and fourth positions respectively. Karnataka’s score stands at 78.8 and has been assigned A++.  Telangana scored 72.2, followed by Gujarat which scored 67.9 and 66.1 was assigned to Andhra Pradesh.
Distribution companies in the top renewable energy generating states of the country are the <a href="https://mercomindia.com/discom-top-renewable-states-biggest-defaulters/" target="_blank" rel="noopener noreferrer">biggest defaulters</a> when it comes to paying dues for the power procured from renewable projects (wind power, solar, and hydro). According to the Central Electricity Authority (CEA), up to July 31, 2019, 376 renewable energy generating projects across India had dues totaling ₹68.72 billion (~$960.7 million). These 376 projects account for 17,897 MW of renewable energy generating capacity.
To promote clean mobility in public transportation, the Department of Heavy Industry under the Ministry of Heavy Industry and Public Enterprises has granted the approval for <a href="https://mercomindia.com/electric-buses-deployed-indian-cities/" target="_blank" rel="noopener noreferrer">5,595 electric buses</a> to be deployed in 64 cities under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II) program.  The buses will run four billion kilometers during their contract period and are expected to save nearly 1.2 liters of fuel over the contract period which will help in reducing 2.6 million tons of carbon dioxide emissions.
Uber, the world’s largest personal mobility company, has signed a pact with SUN Mobility, a leading energy infrastructure, and services provider, to deploy <a href="https://mercomindia.com/uber-sun-mobility-deploy-e-autos/" target="_blank" rel="noopener noreferrer">electric autos</a> (E-Autos) which would help provide an affordable and clean commuting option to its riders. Under the partnership, SUN Mobility will offer its unique energy infrastructure platform, which includes swappable smart batteries and quick interchange stations to select original equipment manufacturers (OEMs) for building E-autos.
The University of Birmingham and the International Solar Alliance (ISA) will collaborate to help farmers in countries with abundant and <a href="https://mercomindia.com/isa-birmingham-university-solar-hybrid/" target="_blank" rel="noopener noreferrer">perennial sunshine</a>. The effort is to help farmers capitalize on chilled food distribution systems powered by solar and solar-hybrid technologies. Birmingham University is the research partner of the ISA in its Solar Cooling Initiative.
Last but not least, New Delhi has decided to challenge <a href="https://mercomindia.com/india-us-solar-dcr-delhi-wto-ruling/" target="_blank" rel="noopener noreferrer">specific sections</a> of the recent ruling given by the Dispute Settlement Body (DSB) of the World Trade Organization (WTO). The dispute between India and the United States started when the former won the solar power case against the U.S.
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