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					</table><p>The Central Electricity Regulatory Commission (<a href="https://cercind.gov.in/" target="_blank" rel="noopener">CERC</a>) recently issued an order clarifying issues raised by the Central Transmission Utility of India (<a href="https://www.ctuil.in/" target="_blank" rel="noopener">CTUIL</a>) and renewable developers under the GNA Regulations.</p>
<p>CTUIL, in its submission, highlighted the difficulties of implementing GNA Regulations and requested clarification on a few aspects.</p>
<p>Some of the key issues raised by CTUIL are as follows:</p>
<p><strong>Issue 1:</strong> Processing under Grant of Connectivity, Long-term Access, and Medium-term Open Access in Interstate Transmission and Related Matters Regulations, 2009 post-April 5, 2023.</p>
<p>CTUIL argued that scheduling and billing processes have not yet commenced as per the Grid Code and CERC (Sharing of intr-State transmission charges and losses) Regulations of 2020. Therefore, CTUIL has taken steps to address tasks such as finalizing allocation, fulfilling the Section-68 requirement for the dedicated line, and activating Long-term Access (LTA) after April 5, 2023. These measures are being implemented under the 2009 Connectivity Regulations to ensure a seamless process for granting, operationalizing, and scheduling cases without disruptions.</p>
<p><strong>Commission’s response</strong></p>
<p>The Commission noted that as of April 5, 2023, power scheduling was still governed by the Indian Electricity Grid Code Regulations of 2010 for Long-Term Access (LTA), Medium Term Open Access (MTOA), and Short-Term Open Access (STOA). The Indian Electricity Grid Code Regulations of 2023, pertaining to scheduling under GNA, will be effective from October 1, 2023. This means that there exists a period from April 5, 2023, to September 30, 2023, during which entities seeking power scheduling may rely on the effectiveness of LTA, MTOA, or STOA.</p>
<p>Considering that the 2009 Connectivity Regulations will be repealed from October 1, 2023, the Commission permitted CTUIL to carry out the necessary activities under the 2009 Connectivity Regulations. These activities are crucial for ensuring a smooth transition during the interim perio Following the implementation of the Grid Code 2023 and the initial modification to the Sharing Regulations 2020, all actions must adhere strictly to the GNA Regulations.</p>
<p><strong>Issue No.2:</strong> Retention of bank guarantee submitted under the 2009 Connectivity Regulations vs. submission of Conn-BGs (connectivity bank guarantee) under GNA Regulations.</p>
<p>CTUIL submitted that where two different bank guarantee amounts are required to be maintained under the 2009 Connectivity Regulations and the GNA Regulations, the higher of the bank guarantee amounts is being kept with CTUIL until the scheduling, billing, and relinquishment start as per the GNA Regulations.</p>
<p><strong>Commission’s response</strong></p>
<p>The Commission observed that the 2009 Connectivity Regulations will be repealed from October 1, 2023. For the transition period from April 5, 2023, to October 1, 2023, the Commission clarified that the higher bank guarantee under the 2009 Connectivity Regulations or the GNA Regulations would be considered by CTUIL for compliance. From October 1, 2023, bank guarantees will be modified in accordance with the GNA Regulations.</p>
<p><strong>Issue 3: </strong>Conn-BG1 for cases covered under GNA Regulations.</p>
<p>CTUIL stated that entities falling under Regulation 37.3(3) are obligated to provide a Conn-BG1 with a value of ₹5 million (~$60,162) and a Conn-BG3 at ₹200,000 (~$2,406)/MW when there has been no prior provision of a construction bank guarantee for LTA. However, if such an entity has already submitted a Conn-BG1 for connectivity under 2009 regulations, there would be a situation where two Conn-BG1s are in place if another Conn-BG1 is also acquired under Regulation 37.3(3) of the GNA Regulations. CTU has received numerous representations requesting an exemption from the requirement to submit a new Conn-BG1 under the GNA Regulations in cases where a Conn-BG1 has already been submitted under the 2009 Connectivity Regulations.</p>
<p><strong>Commission’s response</strong></p>
<p>The Commission observed that construction bank guarantees provided under the 2009 Connectivity Regulations must be transformed into Conn-BG1 and Conn-BG2 per the GNA Regulations. In cases where an entity has not submitted any construction bank guarantee to CTUIL under the 2009 Connectivity Regulations, they will be obligated to provide a Conn-BG1 valued at ₹5 million (~$60,162) and a Conn-BG3 at ₹200,000 (~$2,406)/MW.</p>
<p>However, situations may arise where an entity has already submitted a Conn-BG1 worth ₹5 million (~$60,162) but has not furnished any construction bank guarantee under the 2009 Connectivity Regulations. In such instances, providing an additional Conn-BG1 under the GNA Regulations will not be required.</p>
<p><strong>Issue 4: </strong>Conn-BG requirement for generating stations connected to the intrastate transmission system, which are not covered under Regulation 4.1 of the GNA Regulations.</p>
<p>CTUIL submitted that generating stations connected to the intrastate transmission system, whose LTA was granted on a target basis and became effective as of April 5, 2023, may be required to submit Conn-BG3 for ₹200,000 (~$2,406)/MW for the generating stations connected to the interstate transmission system.</p>
<p><strong>Commission’s response</strong></p>
<p>CERC observed that entities falling under Regulation 17.1(vi) of the GNA Regulations, for whom the LTA to the target region was already effective at the time of transition, will also be treated per the stipulations outlined in Regulation 37.6(2) of the GNA Regulations.</p>
<p><strong>Issue 5: </strong>Advancement of the terminal bay for start-up power or injection of infirm power.</p>
<p>CTUIL said that Regulation 10.8 of the GNA Regulations provides that elements of the Automatic Transmission System (ATS) can be identified for early commissioning for the requirement of start-up power/injection of infirm power. A bay at the ISTS end may also be required besides ATS. Accordingly, the same needs to be incorporated into the regulations.</p>
<p><strong>Commission’s response</strong></p>
<p>The Commission emphasized that an entity might require certain components of the ATS before the agreed-upon start date of connectivity as specified in the connectivity agreement agreed that to initiate start-up power withdrawal or infirm power injection, an entity can request the commercial operation date of the terminal bay to be before the agreed-upon connectivity start date specified in the connectivity agreement.</p>
<p><strong>Issue 6: </strong>Bifurcation of GNA as ‘within the region’ and ‘from outside the region’ under the application of GNA by entities covered under Regulation 17.1 (iii) of the GNA Regulations.</p>
<p>CTUIL suggested that GNA is to be applied in the case of entities, indicating bifurcation ‘within the region’ and ‘from outside the region’ as per Regulation 20.1. However, entities applying GNA for drawal of Round-the-Clock power have expressed difficulty in indicating the within and outside region GNA at the application stage due to scheduling of renewable power from different sources located in different regions during various points in time. Hence, GNA can be utilized solely for planning purposes for entities both ‘within the region’ and ‘from outside the region.’</p>
<p><strong>Commission’s response</strong></p>
<p>The Commission clarified that a drawee Designated Interstate Customer (DIC) can request a schedule from anywhere in India up to its GNA quantum, where such injection point may be ‘within the region’ or ‘from outside the region.’ Once such an entity has placed a scheduling request with the Regional Load Despatch Center (RLDC) and there is a constraint in the transmission system due to which a full schedule, as requested by all drawee DICs in the region cannot be accommodated, RLDC should allocate the transmission corridor as follows:</p>
<ul>
<li>In case of constraint in the transmission system ‘from outside the region,’ the transmission corridor will be allocated proportionately to the ‘outside the region’ bifurcation of all such drawee DICs.</li>
<li>In case of constraint in the transmission system ‘within the region,’ the transmission corridor will be allocated proportionately to the total GNA quantum for such drawee DICs.</li>
</ul>
<p><strong>Issue 7:</strong> Bifurcation of GNA as ‘within the region’ and ‘from outside the region’ for states.</p>
<p>CTUIL suggested that while bifurcating the GNA deemed for each state, if the proportionate GNA ‘from outside the region is less than outside LTA/MTOA contracts, then the GNA ‘outside the region’ may be made equal to outside LTA/MTOA contracts.</p>
<p><strong>Commission’s response</strong></p>
<p>The Commission accepted CTUIL&#8217;s proposal. Additionally, any required modifications will be executed within the deemed GNA capacity within the region to ensure that the overall balance remains intact.</p>
<p><strong>Issue 8: </strong>Timeline for processing new applications until October 1, 2023.</p>
<p>CTUIL submitted that the transition process needs to be completed before the fresh applications under GNA Regulations are processed due to their higher priority as per their original date of application. Accordingly, relaxation for processing new applications beyond the timelines specified in the GNA Regulations for an initial four months must be provided.</p>
<p><strong>Commission’s response</strong></p>
<p>The Commission noted that the transition of current applicants with connectivity, LTA, and MTOA to comply with the GNA Regulations involves multiple steps. To ensure the seamless implementation of the GNA Regulations, new applications can be handled once the transition cases are resolved. Recognizing that this transition process may span three to four months, the Commission extended the time for processing new applications received between April 5, 2023, and October 1, 2023. Beyond October 2023, these applications will be processed according to the timelines specified in the GNA regulations.</p>
<p><strong>Issue No. 9:</strong> Connectivity by entities under Regulation 4.1 of the GNA Regulations, which are renewable energy generating stations or renewable power park developers.</p>
<p><strong>Commission’s response</strong></p>
<p>The Commission noted that, given the nature of power purchase agreements (PPAs), which are to be executed between the procurer and the selected bidder, it is appropriate to regard the PPA signed by the procurer as a valid document per regulation 5.8(xi) of the GNA Regulations. The Commission instructed its staff to initiate the process of amending the regulations to enable a more considered view of projects falling under such guidelines. Until this modification is finalized, a renewable energy generation facility will be eligible to request connectivity by submitting the PPA or opting for either of the other options involving land or bank guarantees.</p>
<p><strong>Issue 10:</strong> Change in location by entities covered under Regulation 4.1 of the GNA Regulations, which are renewable energy generating stations or renewable power park developers.</p>
<p>CTUIL submitted that the provision for submission of registered title deeds or land documents was introduced in the GNA Regulations vide the First Amendment. Currently, the regulatory prescription is for submitting 50% of the land required for the project capacity for which connectivity is sought. Under the regulations, the remainder of the land required for the project is not required to be submitted to CTU at any stage post-grant of connectivity.</p>
<p><strong>Commission’s response</strong></p>
<p>The Commission recognized that, on occasion, adjustments to the designated land location for which connectivity has been approved may be necessary due to various factors. These factors could include alterations in the coordinates of the substation, proximity to the ISTS substation, a higher capacity utilization factor at different land locations, and unforeseen practical challenges in securing the complete land parcel near the initial land location. It said modifying the land parcel&#8217;s location while keeping the point of connectivity with the ISTS and the connectivity start date unchanged would be permissible and would not result in the cancellation of connectivity.</p>
<p><strong>Issue 11:</strong> Change in requirement of Conn-BG3 in view of the order dated September 5, 2023.</p>
<p>CTUIL submitted that generation projects that have completed five years from commissioning, their respective Conn-BG requirements shall become NIL per the said CERC order dated September 5, 2023.</p>
<p><strong>Commission’s response</strong></p>
<p>The Commission stated that the contention of CTUIL generation projects that have completed five years from commissioning, their respective Conn-BG requirements, should become nil is incorrect. The entities must submit Conn-BGs as per the GNA Regulations.</p>
<p>Recently, CERC <a href="https://www.mercomindia.com/pending-provisions-gna-regulations-effect-october-1-2023" target="_blank" rel="noopener">notified</a> that certain provisions of the GNA Regulations and the First Amendment to the GNA Regulations 2022 will come into effect from October 1, 2023.</p>
<p>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.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/rakesh-ranjan-parashar/" class="vcard author" rel="author"><span class="fn">Rakesh Ranjan</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Rakesh Ranjan,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener">More articles from Rakesh Ranjan.</a></p>
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<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="77" height="102" /><a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener"><strong style="color: #00b451">Rakesh Ranjan</strong></a> is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). <a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" rel="noopener noreferrer">More articles from Rakesh Ranjan.</a></p>
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CERC Resolves Difficulties in Implementing GNA Regulations

<p>The low landed cost for open access was identified as one of the primary factors contributing to the growth of open access installations across India, as per Mercom’s <a href="https://mercomindia.com/product/india-solar-open-access-market-report-q4-annual-2021/" target="_blank" rel="noopener">India Solar Open Access Market Report Q4 and Annual 2021</a>.</p>
<p>The landed cost of open access is defined as the cost including all open access charges, including wheeling charge, additional surcharge, cross-subsidy surcharge, and the tariff set in the power purchase agreement (PPA).</p>
<p>According to Mercom India’s report, the tariffs for long-term open access (LTOA) range from ₹3.50 (~$0.047)/kWh to ₹5 (~$0.067)/kWh in most states, and the landed open access cost ranges between ₹3.70 (~$0.049)/kWh to ₹7.14 (~$0.096)/kWh.</p>
<p>Open access installations are usually driven by demand from consumers wanting to procure power at a lower price in comparison to the power procured from the commercial and industrial (C&amp;I) retail supply.</p>
<p>In Uttar Pradesh, where the C&amp;I retail supply tariff is in the range of ₹7.94 (~$0.10)/kWh to ₹9.91 (~$0.13)/kWh, the comparatively lower landed open access cost is driving the growth of open access. The state also waived off additional surcharges, which led to developers getting considerable margins on the net landed cost. Uttar Pradesh spearheaded the open access solar capacity additions in Q4 2021 with 113 MW, accounting for 38% of the total capacity additions in the quarter. In 2021, 397.5 MW open access projects were installed in the state.</p>
<p>In Maharashtra and Tamil Nadu, the growth was primarily driven by energy-intensive industries such as cement, pharmaceutical, metals, and electrical equipment manufacturers, which set up open access projects via captive and group captive models. These industries find open access as an ideal solution to reduce costs as electricity contributes a significant amount to their operating costs. Tamil Nadu installed 217 MW of open access projects in 2021, while Maharashtra witnessed 213 MW.</p>
<p>The C&amp;I retail tariff in Tamil Nadu falls in the range of ₹6.35 (~$0.082)/kWh to ₹8.05 (~$0.105)/kWh. Although the difference between the landed open access cost, and the C&amp;I tariff is moderate, the state is witnessing a lot of upcoming projects under the group captive model.</p>
<p>Maharashtra has a C&amp;I retail tariff ranging from ₹6.96 (~$0.092)/kWh and ₹11.20 (~$0.146)/kWh, which is the highest in the commercial category among the top open access states. This makes open access solar the most viable option.</p>
<p>This year’s <a href="https://mercomindia.com/product/india-solar-open-access-market-report-q4-annual-2021/" target="_blank" rel="noopener">report</a> included an analysis of open access installations in two new states, Kerala and Himachal Pradesh, where the installation numbers haven’t increased much during the last year.</p>
<p>The report notes that the tariffs for LTOA in Kerala range between ₹3.50 (~$0.045)/kWh to ₹4.00 (~$0.052)/kWh, whereas in Himachal Pradesh, it is ₹3.50 (~$0.045)/kWh to ₹4.50 (~$0.058)/kWh.</p>
<p>On the other hand, the commercial and industrial retail tariff in Himachal Pradesh falls between ₹4.30 (~$0.057)/kWh to ₹4.85 (~$0.064)/kWh. Kerala has a C&amp;I retail tariff ranging from ₹5 (~$0.066)/kWh to ₹7.10 (~$0.094)/kWh.</p>
<p>The difference between the C&amp;I tariffs and open access landed cost was minimal, leading the consumers in these states to opt for the C&amp;I instead, thus reducing the open access projects commissioned in these states.</p>
<p><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-34100" src="https://mercomindia.com/wp-content/uploads/2022/04/Open-Access-Charges-as-a-percent-of-Landed-Open-Access-Cost.png" alt="Open Access Charges as a percent of Landed Open Access Cost" width="2152" height="795" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Open-Access-Charges-as-a-percent-of-Landed-Open-Access-Cost.png 2152w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Open-Access-Charges-as-a-percent-of-Landed-Open-Access-Cost-300x111.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Open-Access-Charges-as-a-percent-of-Landed-Open-Access-Cost-2000x739.png 2000w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Open-Access-Charges-as-a-percent-of-Landed-Open-Access-Cost-768x284.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Open-Access-Charges-as-a-percent-of-Landed-Open-Access-Cost-1536x567.png 1536w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Open-Access-Charges-as-a-percent-of-Landed-Open-Access-Cost-2048x757.png 2048w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Open-Access-Charges-as-a-percent-of-Landed-Open-Access-Cost-650x240.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Open-Access-Charges-as-a-percent-of-Landed-Open-Access-Cost-624x231.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Open-Access-Charges-as-a-percent-of-Landed-Open-Access-Cost-600x222.png 600w" sizes="(max-width: 2152px) 100vw, 2152px" /></p>
<p>Mercom’s analysis suggests that in Karnataka and Maharashtra, where the landed open access costs are very high, reducing these costs to meet the consumer needs could facilitate even more substantial growth of the segment. In Karnataka, open access charges account for 51% of the overall landed cost and 50% in Maharashtra.</p>
<p>In nine states, including Punjab, Madya Pradesh, and Uttarakhand, open access charges account for more than 40% of the overall landed cost.</p>
<p>In sharp contrast, with the lowest landed cost, Chhattisgarh is one the most attractive states for the growth of LTOA. In Chhattisgarh, which did away with additional surcharges and cross subsidy surcharges, open access charges contribute to a mere 5% of the landed cost. Chhattisgarh saw 47 MW of open access installation in 2021, the highest ever in a calendar year.</p>
<p>Telangana, where open access charges contribute to 44% of the landed cost, <a href="https://mercomindia.com/telangana-sets-additional-surcharge-for-open-access-power/" target="_blank" rel="noopener">increased</a> its additional surcharge by 20% to ₹1.15 (~$0.015)/kWh. Uttarakhand <a href="https://mercomindia.com/additional-surcharge-open-access-uttarakhand-2/" target="_blank" rel="noopener">reduced</a> its additional surcharge by 45% to ₹1.07 (~$0.014)/kWh.</p>
<p>The recently published <a href="https://mercomindia.com/product/india-solar-open-access-market-report-q4-annual-2021" target="_blank" rel="noopener">Mercom India Solar Open Access Market Report Q4 &amp; Annual 2021</a> reported a record growth of 222% year-over-year in open access installations in 2021. The report provides a detailed analysis of trading markets and their impact on the sector.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/arjun-joshi/" class="vcard author" rel="author"><span class="fn">Arjun Joshi</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Arjun-Joshi-1.png" width="50" /></p>
<p><strong style="text-decoration: underline">Arjun Joshi,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/arjun-joshi/" target="_blank" rel="noopener">More articles from Arjun Joshi.</a></p>
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<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Arjun-Joshi-1.png" width="86" height="102" /><a href="https://mercomindia.com/author/arjun-joshi/" target="_blank" rel="noopener"><strong style="color: #00b451">Arjun Joshi</strong> </a>is a staff reporter at Mercom India. Before joining Mercom, he worked as a technical writer for enterprise resource software companies based in India and abroad. He holds a bachelor’s degree in Journalism, Psychology, and Optional English from Garden City University, Bangalore. <a href="https://mercomindia.com/author/arjun-joshi" target="_blank" rel="noopener">More articles from Arjun Joshi.</a></p>
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Low Landed Cost – A Must to Boost Open Access Solar Installations

<p>The Haryana Electricity Regulatory Commission (<a href="https://herc.gov.in/" target="_blank" rel="noopener">HERC</a>), in a recent order, rejected the plea of a captive solar power generator to grant open access for the supply of 2 MW of power from the generators&#8217; captive solar power project.</p>
<p>KRBL Limited had filed a petition challenging the curtailment of capacity for the long-term open access (LTOA) granted to its project based on the contract demand of the consumer.</p>
<p><strong>Background</strong></p>
<p>KRBL has a 2 MW ground-mounted captive solar power project in the Bhiwani district of Haryana, in the solar park developed by Rays Power Experts.</p>
<p>Rays Power Experts submitted a proposal in 2018 to the Haryana Renewable Energy Development Agency (HAREDA) to set up a private solar park of 50 MW at the proposed site in Bhiwani.</p>
<p>Later in 2019, HAREDA informed KRBL that its proposal to set up a captive solar project of 2 MW capacity to be developed by Rays Power Experts Solar had been approved for waivers of wheeling charges subject to fulfillment of the conditions mentioned in the guidelines.</p>
<p>Then, the Haryana Vidyut Prasaran Nigam Limited (<a href="https://hvpn.org.in/#/" target="_blank" rel="noopener">HVPNL</a>), through a letter dated February 03, 2021, informed the petitioner that its request for extension of the LTOA from the existing load of 950 kW to 1,350 kW for drawl of solar power from its 2 MW project had been accepted.</p>
<p>The petitioner, in its submission, said that the curtailment of open access was for reasons extraneous to the Electricity Act, 2003 and ought to be set aside by this Commission. The petitioner added that it was incurring a considerable generation loss of around 170,000 units leading to a financial loss of around ₹1.13 million (~$14,680) every month.</p>
<p>The Uttar Haryana Bijli Vitran Nigam Limited (<a href="https://www.uhbvn.org.in/web/portal/home" target="_blank" rel="noopener">UHBVNL</a>), in its submission, said that the system design was based on the contracted capacity as a system parameter and the open access had to be restricted within that limit.</p>
<p>Also, such restrictions help the distribution companies (DISCOMs) and transmission licensees to plan and maintain grid discipline. If open access is allowed for a capacity beyond the contract demand, it would adversely affect the grid. Further, any variation in the scheduled energy drawl at the periphery attracts the deviation settlement mechanism, increasing the power procurement cost.</p>
<p><strong>Commission&#8217;s analysis</strong></p>
<p>The Commission noted that the grievance of the solar generator concerning the curtailment of the capacity for LTOA granted to its project based on the contract demand had already been adjudicated by the Commission in its earlier order.</p>
<p>The Commission said that it was evident that the generator cannot plead that the project&#8217;s viability was affected due to restrictions placed on drawl capacity under open access.</p>
<p>To avoid and discourage congestion in the intra-state transmission system, the state regulator added that it provided for a levy of peak load exemption charges for exceeding the contract demand.</p>
<p>Further, as generation is an unregulated activity, the captive users may set up a captive power project of a capacity they find feasible and then seek open access to carry the said power from the point of generation to the point of consumption, thereby leading to system constraints.</p>
<p>Citing the Supreme Court judgment in the case involving Maharashtra State Electricity Distribution Company and JSW Steel, the Commission noted that the Apex Court had reaffirmed that if open access were allowed for the capacity beyond the contract demand, it would adversely affect the grid. Such restrictions helped the DISCOMs and transmission licensees to maintain grid discipline.</p>
<p>Considering the facts, the State regulator said that it had already addressed the issue in its earlier order, and it was devoid of any merit.</p>
<p>Last month, HERC <a href="https://mercomindia.com/haryana-additional-surcharge-open-access-consumers/" target="_blank" rel="noopener">set</a> ₹1.08 (~$0.014)/kWh as the additional surcharge for the consumers of the UHBVN and DHBVN availing power under the open access mechanism.</p>
<p>Earlier, the Appellate Tribunal For Electricity had <a href="https://mercomindia.com/aptel-haryana-open-access/" target="_blank" rel="noopener">ruled</a> that HERC was not to blame for the delay in signing the grid connectivity agreement with an open access solar project developer. Therefore, the developer was not entitled to compensation for the claimed damages.</p>
<p>Subscribe to our real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure that you never miss any critical updates from the renewable energy industry.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/rakesh-ranjan-parashar/" class="vcard author" rel="author"><span class="fn">Rakesh Ranjan</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Rakesh Ranjan,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener">More articles from Rakesh Ranjan.</a></p>
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<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="77" height="102" /><a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener"><strong style="color: #00b451">Rakesh Ranjan</strong></a> is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). <a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" rel="noopener noreferrer">More articles from Rakesh Ranjan.</a></p>
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Captive Solar Generator’s Plea Challenging Curtailment of Long-Term Open Access Rejected

<p>The Andhra Pradesh Electricity Regulatory Commission (<a href="https://aperc.gov.in/" target="_blank" rel="noopener">APERC</a>) recently ruled that a wind project developer was liable to pay inter-DISCOM (distribution company) transmission charges for 8.8 MW out of the total capacity of 25.6 MW up to October 15, 2020, when the amendment to long-term open access (LTOA) was approved.</p>
<p>Blyth Wind Park had filed a petition requesting the Commission to direct the Transmission Corporation of Andhra Pradesh (<a href="https://aptransco.co.in/" target="_blank" rel="noopener">APTRANSCO</a>) to levy inter-DISCOM transmission charges only for 8.8 MW capacity from April 1, 2020, to May 30, 2020, and 1 MW capacity for the period of May 30, 2020, to November 6, 2020.</p>
<p><strong>Background </strong></p>
<p>Blyth Wind Energy owns and operates a captive wind power project of 25.6 MW capacity in Andhra Pradesh. The entire power generated from the captive power project is procured by captive users in the supply area of the Southern Power Distribution Company of Andhra Pradesh (<a href="https://www.apspdcl.in/index.jsp" target="_blank" rel="noopener">APSPDCL</a>) and the Andhra Pradesh Central Power Distribution Corporation Limited (<a href="https://apcpdcl.in/" target="_blank" rel="noopener">APCPDCL</a>).</p>
<p>APTRANSCO had entered into LTOA agreements with the wind developer on December 3, 2019, and November 6, 2020, for the transmission of electricity generated from the captive power project.</p>
<p>The 25.6 MW captive wind project in Andhra Pradesh was commissioned in four phases &#8211; 16 MW on September 29, 2014; 8 MW on January 2, 2015; 1 MW on April 17, 2015, and the balance 600 kW was commissioned on July 24, 2017.</p>
<p>The wind energy generator was first granted LTOA on November 29, 2019, to supply power to two of its consumers &#8211; SDV Steels with an allocation of 8.8 MW and 4.3 MW for Krishnapatnam Port Company.</p>
<p>Through a letter in April 2020, the developer had requested APTRANSCO to amend the original LTOA agreement for revised allocation and add new captive users.</p>
<p>The developer further said that by May 30, 2020, APTRANSCO should have communicated either that the LTOA sought could be allowed without further system strengthening or otherwise.</p>
<p>Subsequently, APTRANSCO executed the LTOA amendment agreement on November 6, 2020, with the developer, APSPDCL, and APCPDCL, after a delay of six months.</p>
<p>The developer said that it was liable to pay inter-DISCOM transmission charges only for 8.8 MW for the period from April 1, 2020, until May 30, 2020, i.e., 30 days from the date of closure of window, and for 1 MW from June 1, 2020, until November 6, 2020, i.e., the date of the amended LTOA agreement. The demand of APTRANSCO for the payment of inter-DISCOM transmission charges for 17.2 MW capacity was arbitrary and without any legal basis.</p>
<p>The wind energy generator further argued that if it were held liable to pay inter-DISCOM transmission charges for any capacity other than the revised capacities set out in the LTOA application, it would result in gross injustice and hardship.</p>
<p><strong>Commission’s analysis</strong></p>
<p>The Commission observed that the nodal agency should allow open access within 30 days from the window’s closure if it is determined that the LTOA sought can be allowed without further system strengthening. In cases where it cannot be allowed, the nodal agency should notify the applicant of the same within 30 days of the window’s closure.</p>
<p>The Commission noted that out of the total capacity of 25.6 MW, only 24 MW was commissioned by January 21, 2015, which preceded the date of February 13, 2015, when the new ‘Wind Power Policy 2015’ commenced. Thus, the petitioner fell outside the scope of the ‘Wind Power Policy 2015’ and consequently the amended Regulation of 2016.</p>
<p>Also, the state regulator added that the approval for LTOA was granted on October 15, 2020. However, the amended agreement was entered only on November 6, 2020.</p>
<p>“We do not find any justification for the levy of inter-DISCOM transmission charges beyond October 15, 2020. This means that the petitioner is liable to pay the inter-DISCOM transmission charges on the disputed capacity of 8.8 MW only until October 15, 2020, when the amendment to LTOA was approved,&#8221; the Commission added.</p>
<p>Recently, APERC, in order to simplify the short-term power procurement process, <a href="https://mercomindia.com/andhra-pradesh-short-term-procurement-regulations/" target="_blank" rel="noopener">issued</a> the &#8216;Terms and Conditions for Short-term Procurement and Sale of Power, Regulations, 2022.&#8217; The regulations will apply to the three DISCOMs of the state.</p>
<p>Subscribe to Mercom&#8217;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&#8217;t miss any critical updates from the renewable industry.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/rakesh-ranjan-parashar/" class="vcard author" rel="author"><span class="fn">Rakesh Ranjan</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Rakesh Ranjan,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener">More articles from Rakesh Ranjan.</a></p>
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<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="77" height="102" /><a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener"><strong style="color: #00b451">Rakesh Ranjan</strong></a> is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). <a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" rel="noopener noreferrer">More articles from Rakesh Ranjan.</a></p>
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Regulator Rules in Favor of Captive Wind Developer, Marks Down Transmission Charges

<p>Long-term open access (LTOA) solar offers an attractive proposition for high-tension (HT) industrial consumers. In most states, the tariffs for LTOA range from ₹3.50 (~$0.047)/kWh to ₹5 (~$0.067)/kWh.</p>
<p>India installed 935 MW of open access solar capacity during 9M 2021, a 143% increase compared to 385 MW installed during 9M 2020, according to Mercom’s <a href="https://mercomindia.com/product/india-solar-open-access-market-report-q3-2021/" target="_blank" rel="noopener">India Solar Open Access Market Report Q3 2021</a>.</p>
<p>The report notes that the landed open access cost is in the range of ₹3.70 (~$0.049)/kWh to ₹7.14 (~$0.096)/kWh in most states.</p>
<p>However, the exorbitant landed open access cost in Karnataka, Maharashtra, and a few other states has had a detrimental effect on the growth of open access.</p>
<p>Landed cost of open access is the total of all open access charges, including wheeling charge, additional surcharge, cross-subsidy surcharge, and the tariff set in the power purchase agreement (PPA). The wheeling and transmission charges vary according to the voltage parameters within the state.</p>
<p><img decoding="async" loading="lazy" class="aligncenter wp-image-31673 size-large" src="https://mercomindia.com/wp-content/uploads/2022/01/Open-Access-Charges-as-a-of-Landed-Open-Access-Cost-2000x755.png" alt="Open Access Charges as a % of Landed Open Access Cost" width="625" height="236" srcset="https://cms.mercomindia.com/wp-content/uploads/2022/01/Open-Access-Charges-as-a-of-Landed-Open-Access-Cost-2000x755.png 2000w, https://cms.mercomindia.com/wp-content/uploads/2022/01/Open-Access-Charges-as-a-of-Landed-Open-Access-Cost-300x113.png 300w, https://cms.mercomindia.com/wp-content/uploads/2022/01/Open-Access-Charges-as-a-of-Landed-Open-Access-Cost-768x290.png 768w, https://cms.mercomindia.com/wp-content/uploads/2022/01/Open-Access-Charges-as-a-of-Landed-Open-Access-Cost-1536x580.png 1536w, https://cms.mercomindia.com/wp-content/uploads/2022/01/Open-Access-Charges-as-a-of-Landed-Open-Access-Cost-2048x774.png 2048w, https://cms.mercomindia.com/wp-content/uploads/2022/01/Open-Access-Charges-as-a-of-Landed-Open-Access-Cost-650x246.png 650w, https://cms.mercomindia.com/wp-content/uploads/2022/01/Open-Access-Charges-as-a-of-Landed-Open-Access-Cost-624x236.png 624w, https://cms.mercomindia.com/wp-content/uploads/2022/01/Open-Access-Charges-as-a-of-Landed-Open-Access-Cost-600x227.png 600w" sizes="(max-width: 625px) 100vw, 625px" /></p>
<p>The cross-subsidy surcharge in the states is between ₹1.71 (~$0.023)/kWh and ₹2.23 (~$0.029)/kWh.</p>
<p>According to the report, BESCOM in Karnataka has a high cross-subsidy surcharge of ₹2.23 (~$0.029)/kWh, which is the reason for such a high landed open access cost. In contrast, a high additional surcharge in Maharashtra has been responsible for a high landed cost in the state.</p>
<p>Chhattisgarh, Odisha, and Gujarat are some of the states with the lowest landed cost and are attractive for the growth of LTOA.</p>
<p>Chhattisgarh has waived additional and cross-subsidy surcharge, which resulted in 45 MW of open access installations in 9M 2021. The open access charges as a percentage of landed cost is 5%. Uttar Pradesh and Odisha have also waived the additional surcharge.</p>
<p>In Odisha, the open access charges account for 22% of the overall landed cost. In Tamil Nadu, the open access charges amount to 42% of the total landed cost.</p>
<p>Recently, several states like <a href="https://mercomindia.com/telangana-open-access-additional-surcharge/" target="_blank" rel="noopener">Telangana</a>, <a href="https://mercomindia.com/delhi-increases-additional-surcharge-open-access-consumers/" target="_blank" rel="noopener">Delhi</a>, and <a href="https://mercomindia.com/additional-surcharge-open-access-increased-gujarat/" target="_blank" rel="noopener">Gujarat</a> have increased the additional surcharge for open access consumers.</p>
<p>Last month, the Central Electricity Regulatory Commission <a href="https://mercomindia.com/open-access-renewable-energy-generators/" target="_blank" rel="noopener">issued</a> a draft regulation – ‘Connectivity and General Network Access to the Interstate Transmission System (ISTS) Regulations, 2021.’ The proposed regulations provide the framework to facilitate open access power to consumers, generating companies, and distribution licensees for ISTS use through General Network Access (GNA). GNA is open access to ISTS connectivity granted under these regulations.</p>
<p>The <a href="https://mercomindia.com/product/india-solar-open-access-market-report-q3-2021/" target="_blank" rel="noopener">report</a> also gives insights into the short-term transactions, such as the day-ahead market, bilateral contracts, real-time market, and the green-term ahead market within the open access space.</p>
<p>According to the report, Uttar Pradesh <a href="https://mercomindia.com/uttar-pradesh-sold-the-highest-amount-of-electricity/" target="_blank" rel="noopener">sold</a> the highest amount of power in the day-ahead market in Q2 2021, accounting for 13.9% of all power sold in the quarter.</p>
<p><strong><em>For the complete report, visit:</em></strong> <a href="https://mercomindia.com/product/india-solar-open-access-market-report-q3-2021" target="_blank" rel="noopener">https://mercomindia.com/product/india-solar-open-access-market-report-q3-2021</a></p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/rakesh-ranjan-parashar/" class="vcard author" rel="author"><span class="fn">Rakesh Ranjan</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Rakesh Ranjan,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener">More articles from Rakesh Ranjan.</a></p>
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<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="77" height="102" /><a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener"><strong style="color: #00b451">Rakesh Ranjan</strong></a> is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). <a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" rel="noopener noreferrer">More articles from Rakesh Ranjan.</a></p>
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High Landed Cost Detrimental to the Growth of Open Access Solar in Some States

<p>The Telangana Electricity Regulatory Commission (<a href="http://www.tserc.gov.in/" target="_blank" rel="noopener noreferrer">TSERC</a>) directed the Transmission Corporation of Telangana Limited (<a href="https://www.tstransco.in/" target="_blank" rel="noopener noreferrer">TSTRANSCO</a>) and the Telangana State Southern Power Distribution Company Limited (<a href="https://www.tssouthernpower.com/" target="_blank" rel="noopener noreferrer">TSSPDCL</a>) to provide long-term intrastate open access (LTOA) to Ener Sol Infra Private Limited immediately. The Commission added that they should take immediate steps to make payments to the developer for the energy drawn from its 2 MW solar project.</p>
<p><strong>Background</strong></p>
<p>Ener Sol Infra had filed a petition requesting the Commission to direct both the DISCOM and the nodal agency to approve the tripartite agreement (open access) for its 2 MW solar project for third-party sale.</p>
<p>Ener Sol Infra had set up the project in the Nalgonda district of Telangana. The company had entered into a power purchase agreement (PPA) with NATCO Pharma Limited (a third-party consumer) for the sale of power for 25 years.</p>
<p>As per the technical approval accorded for the generation of energy, it applied to TSSPDCL for synchronization to the grid after completing the project. The project achieved the commercial operation date (COD) on May 18, 2018, which was certified by the DISCOM after conducting the necessary inspection.</p>
<p>In its submission, Ener Sol Infra said that both TSTRANSCO and TSSPDCL had not approved the LTOA, which had put the company in deep financial trouble even after repeated requests.</p>
<p>The DISCOM argued that it carried out the feasibility study only to accord approval for grid connectivity. The DISCOM noted that the processing criteria for open access were to be initiated by TSTRANSCO. So, the permission accorded for grid-connectivity does not amount to approval for availing open access facility.</p>
<p>The state DISCOM further noted that the LTOA transaction could not be processed due to the grid network&#8217;s overloading conditions.</p>
<p>The distribution company also said that it was not liable to pay for the energy injected from the date of synchronization to the open access agreement date at any mutually agreed price without any rate being fixed by the Commission.</p>
<p>On the other hand, TSTRANSCO noted that the feasibility report of the DISCOM was essential for processing the open access application, and it can process it only after the receipt of the technical feasibility report.</p>
<p><strong>Commission’s Analysis</strong></p>
<p>The Commission noted that both the DISCOM and the nodal agency didn&#8217;t let the petitioner undertake the third-party sale of energy generated from its project.</p>
<p>The state regulator observed that their actions in denying open access were uncalled for.</p>
<p>The Commission further pointed out that the energy fed into the grid from the date of synchronization until open access approval is to be treated as banked energy. The regulatory body stated that the DISCOM and the nodal agency have not allowed open access for two years and are liable to pay the charges for the energy drawn by it.</p>
<p>In its analysis, the Commission said that the petitioner applied for open access on July 18, 2018, whereas the respondents had stated that the applicant had applied on August 06, 2018. TSTRANSCO took one month to forward the application to the DISCOM for ascertaining the feasibility of providing open access to the petitioner. The order added that the nodal agency should have intimated about the feasibility of open access facility within 30 days from the date of the application.</p>
<p>Keeping all the facts in mind, the Commission directed both the respondents to immediately provide Ener Sol Infra with long-term intra-state open access. It also asked them to make the necessary payment to the petitioner.</p>
<p>Provisions around open access and banked energy are not consistent across states, leading to a slew of petitions to the state commissions revolving around these issues.</p>
<p>For instance, recently, the Tamil Nadu Electricity Regulatory Commission <a href="https://mercomindia.com/tamil-nadu-discom-wind-energy/" target="_blank" rel="noopener noreferrer">asked</a> the Tamil Nadu Generation and Distribution Company to pay for the unutilized banked energy to Arulmozhi Spinning Mills Private Limited. The Commission noted that the payment for unutilized energy and cross-subsidy surcharge collection were two different issues and cannot be linked together. The Commission stated that it was not fair on the part of TANGEDCO to withhold payment for unutilized banked energy on the grounds of non-payment of cross-subsidy surcharge.</p>
<p>&nbsp;</p>
<p>Mercom&#8217;s Renewable Energy <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener noreferrer">Regulatory Updates </a>cites a similar order passed recently in which the Joint Electricity Regulatory Commission for Goa and union territories <a href="https://mercomindia.com/electricity-regulator-rules-in-favor/" target="_blank" rel="noopener noreferrer">ruled</a> in favor of a solar company seeking connectivity and exemptions under the open access regulations.</p>
<p>&nbsp;</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/rakesh-ranjan-parashar/" class="vcard author" rel="author"><span class="fn">Rakesh Ranjan</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Rakesh Ranjan,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener">More articles from Rakesh Ranjan.</a></p>
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<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="77" height="102" /><a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener"><strong style="color: #00b451">Rakesh Ranjan</strong></a> is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). <a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" rel="noopener noreferrer">More articles from Rakesh Ranjan.</a></p>
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Telangana Regulator Asks DISCOM to Pay Up for Using Banked Energy from a 2 MW Solar Project

<p>Solar Energy Corporation of India (<a href="http://seci.co.in/" target="_blank" rel="noopener noreferrer">SECI</a>) has received bids totaling 1,200 MW capacity for setting up solar energy projects. The projects developed are to be connected with the interstate transmission system (ISTS) network under tariff-based competitive bidding (ISTS-VI). Once the projects are awarded, they will be developed on a build own operate (BOO) basis. Successful bidders in this tender will enter into Power Purchase Agreements (PPAs) with SECI for 25 years. The tariff for this tender had been initially capped at ₹2.65 (~$0.038)/kWh and later amended to ₹2.68 (~$0.037). Procuring land, connectivity, and long-term open access (LTOA) approval is within the scope of the project developer.</p>
<p>ReNew Power, UPC Renewables, Tata Power, and Avaada Energy were the participants in this tender. All of the companies submitted bids to develop 300 MW capacity each.</p>
<p><a href="https://mercomindia.com/wp-content/uploads/2019/10/SECI-1.2-GW-ISTS-VI-Solar-Tender.png"><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-15987" src="https://mercomindia.com/wp-content/uploads/2019/10/SECI-1.2-GW-ISTS-VI-Solar-Tender.png" alt="SECI - 1.2 GW ISTS -VI Solar Tender" width="358" height="238" srcset="https://cms.mercomindia.com/wp-content/uploads/2019/10/SECI-1.2-GW-ISTS-VI-Solar-Tender.png 358w, https://cms.mercomindia.com/wp-content/uploads/2019/10/SECI-1.2-GW-ISTS-VI-Solar-Tender-300x199.png 300w" sizes="(max-width: 358px) 100vw, 358px" /></a></p>
<p>In <a href="https://mercomindia.com/seci-extends-bid-deadline-solar-tenders/" target="_blank" rel="noopener noreferrer">September 2019</a>, SECI had extended the bid submission date for this project. Earlier, the tender was issued for the state of Madhya Pradesh only, but later, it was open to being developed pan-India.</p>
<p>SECI’s solar tenders are struggling to attract robust interest from developers.</p>
<p>SECI’s tender for setting up 1.2 GW of solar photovoltaic projects under ISTS-V had been <a href="https://mercomindia.com/seci-1-2-gw-solar-tender-undersubscribed/" target="_blank" rel="noopener noreferrer">undersubscribed</a> by 50%, receiving bids for only 600 MW of solar capacity. As the tender was undersubscribed, only 80% of the bid capacity could be awarded in line with the tender condition. Therefore, only a capacity of 480 MW was <a href="https://mercomindia.com/seci-auctions-solar-tender-lowest-tariff/" target="_blank" rel="noopener noreferrer">awarded</a> out of the 1.2 GW capacity tendered.</p>
<p>According to Mercom’s India Solar <a href="https://mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener noreferrer">Tender Tracker</a>, SECI has tendered ~11 GW under the ISTS program (Tranche I to Tranche VII); and 5.5 GW has been auctioned (under ISTS-I-V) so far. SECI has also tendered 2.4 GW ISTS wind-solar hybrid projects, of which 1.56 GW has been auctioned (Tranche-I and II).</p>
<p>Recently, SECI <a href="https://mercomindia.com/seci-tender-round-clock-renewables-energy-storage/" target="_blank" rel="noopener noreferrer">issued</a> a tender to procure 400 MW (2×200 MW) of renewable energy on round the clock basis. The energy procured through these projects will be supplied to the New Delhi Municipal Corporation (NDMC) and Dadra and Nagar Haveli. The projects developed under this tender can be constructed anywhere in India and will be connected to the ISTS network.</p>
<p>Image credit: Invenergy</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/shaurya-bajaj/" class="vcard author" rel="author"><span class="fn">shaurya</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><p><span style="font-family: Calibri"><span style="color: #000000"><span>Shaurya is a staff reporter at MercomIndia.com with experience working in the Indian solar energy industry for the past four years in various roles. Prior to joining Mercom, Shaurya worked with a renewable energy developer and a consulting company. Shaurya holds a Bachelors Degree in Business Management from Lancaster University in the United Kingdom. </span></span></span></p>
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SECI’s 1.2 GW Solar Tender Attracts Technical Bids from Four Developers

<p>In response to a petition by ACME Holding, the Central Electricity Regulatory Commission (<a href="http://www.cercind.gov.in/" target="_blank" rel="noopener noreferrer">CERC</a>) has asked Power Grid Corporation of India Limited (PGCIL) to notify ACME the date of operationalization of medium-term open access (MTOA) so that it can take appropriate steps for the synchronization of its solar project.</p>
<p>The commission has directed the respondent to file its reply <strong>by October 10, 2019.</strong> The PGCIL has also been directed by CERC to not take any coercive measures against the petitioners (ACME) until the next date of hearing, which is on October 15, 2019.</p>
<p><strong>Background</strong></p>
<p>ACME Solar Holdings Limited and ACME Chittorgarh Solar Energy Private Limited, jointly filed a petition seeking to quash the letter dated July 2, 2019, issued by PGCIL, directing the petitioners to open the letter of credit.</p>
<p>The first petitioner, ACME Holding, had participated in the bidding process <a href="https://mercomindia.com/msedcl-retenders-1-gw-solar-meet-rpo/" target="_blank" rel="noopener noreferrer">initiated</a> by Maharashtra State Electricity Distribution Company Limited (<a href="http://www.mahadiscom.in/" target="_blank" rel="noopener noreferrer">MSEDCL</a>) for 1 GW of solar power projects through competitive bidding. Later, it was <a href="https://mercomindia.com/l1-tariff-1gw-solar-auction-msedcl/" target="_blank" rel="noopener noreferrer">declared</a> a successful bidder to develop a 250 MW solar project, which is located at Badisid in Rajasthan.</p>
<p>The lowest tariff quoted was ₹2.71 (~$0.0401)/kWh in the auction held by MSEDCL to develop 1 GW of solar projects in the state. This was the lowest solar tariff for a grid-connected solar PV project in Maharashtra. ReNew Power and ACME Solar Holdings had <a href="https://mercomindia.com/l1-tariff-1gw-solar-auction-msedcl/" target="_blank" rel="noopener noreferrer">quoted</a> ₹2.72 (~$0.0402)/kWh to develop 250 MW each.</p>
<p>In 2018, PGCIL granted stage -I and stage-II connectivity to ACME Holdings.</p>
<p>On August 23, 2018, ACME Holdings made an application to PGCIL for granting long-term access (LTA). The PGCIL then requested ACME Holdings to apply for MTOA (medium-term open access) since the LTA was not ready to which the firm complied.</p>
<p>However, later in January 2019, PGCIL intimated ACME about the grant of MTOA against the already applied LTA for the evacuation of 250 MW of solar power.</p>
<p>Through its letter dated July 2, 2019, PGCIL informed ACME Holdings that it needs to furnish a letter of credit for ₹256.5 million (~$3.62 million) in favor of PGCIL towards payment security mechanism.</p>
<p>The petitioner has mentioned that, to date, PGCIL has not indicated the date of the operationalization of MTOA. As per the MTOA agreement, PGCIL is required to put into operation its assets by September 16, 2019.</p>
<p>According to the petition, “ACME Holdings is required to give at least 30 days’ notice to MSEDCL for synchronization, but due to non-responsiveness of PGCIL, ACME Holdings has been compelled to forego its right of early commissioning of its generating station.”</p>
<p>The petitioner has expressed apprehension that PGCIL may cancel the MTOA granted to ACME Holdings, which will have a “detrimental financial impact on the project.”</p>
<p>Based on these developments, the ACME Holdings and ACME Chittorgarh Solar Energy Private Limited filed a petition requesting the commission to quash the letter dated July 2, 2019, issued by PGCIL and hold that it is illegal and arbitrary. It has requested the commission to declare that the petitioner is not liable to open any letter of credit as a payment security mechanism.</p>
<p>The petitioners also requested the commission to direct PGCIL to allow the company to connect, synchronize, test, and commission its project without demanding the letter of credit and further direct it to not to take any coercive action, including the termination or cancellation of LTOA or MTOA.</p>
<p>After going through the petition, the commission has asked PGCIL to file its reply and in the meantime, not initiate any coercive action against ACME. It has also directed PGCIL to inform ACME about the likely date of operationalization of the MTOA so that it can make necessary preparations. It has provided 15 days for PGCIL to notify the date of operationalization of the MTOA.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/anjana/" class="vcard author" rel="author"><span class="fn">Anjana Parikh</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><p><img class="alignleft" src="https://mercomindia.com/wp-content/uploads/2019/06/Anjana2.png" width="112" height="121" />Anjana is a news editor at Mercom India. Before joining Mercom, she held roles of senior editor, district correspondent, and sub-editor for The Times of India, Biospectrum and The Sunday Guardian. Before that, she worked at the Deccan Herald and the Asianlite as chief sub-editor and news editor. She has also contributed to The Quint, Hindustan Times, The New Indian Express, Reader’s Digest (UK edition), IndiaSe (Singapore-based magazine) and Asiaville. Anjana holds a Master’s degree in Geography from North Bengal University, and a diploma in mass communication and journalism from Guru Ghasidas University, Bhopal.</p>
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CERC Rules in Favor of Solar Developer ACME, Asks PGCIL To Grant Medium-Term Open Access

<p>The Maharashtra Electricity Regulatory Commission (<a href="http://www.mercindia.org.in/" target="_blank" rel="noopener">MERC</a>) has announced open access charges for consumers in the state. These charges are applicable from September 1, 2018.</p>
<p>MERC fixed the open access charges in response to a petition filed by Maharashtra State Electricity Distribution Co. Ltd (<a href="https://www.mahadiscom.in/" target="_blank" rel="noopener">MSEDCL</a>) in the matter of mid-term review for aggregate revenue requirement (ARR) of financial year (FY) 2015-16 and FY 2016-17, provisional truing-up of ARR of FY 2017-18 and revised projections of ARR for FY 2018-19 and FY 2019-20.</p>
<p>In its petition, MSEDCL had proposed a processing fee as well as operating charges for open access. To justify the proposed hike in open access charges, the MSEDCL in its petition stated, “As per MERC Distribution Open Access Regulation 2016, an open access consumer can avail open access from multiple generators and multiple sources. Due to this, number of applications have increased. MSEDCL has developed online system for submission of application for availing open access.”</p>
<p><a href="https://mercomindia.com/wp-content/uploads/2018/09/open.png"><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-11316" src="https://mercomindia.com/wp-content/uploads/2018/09/open.png" alt="" width="464" height="207" srcset="https://cms.mercomindia.com/wp-content/uploads/2018/09/open.png 464w, https://cms.mercomindia.com/wp-content/uploads/2018/09/open-300x134.png 300w" sizes="(max-width: 464px) 100vw, 464px" /></a></p>
<p>“The number of consumers availing short term open access are more, the consumers apply every month and upload the required documents in the online system having 50 to 100 MB capacity. Thus, MSEDCL has to purchase additional storage space to save all the documents every month in the online system. A separate IT system is developed for proper operation of the online system for submission and processing of open access applications. MSEDCL has developed online system for paying the processing fees with the application. Thus, MSEDCL must pay service charges to the service provider of online payment system,” stated the petition.</p>
<p>While reviewing the petition, MERC was of the view that most of the above activities fall under normal activities of MSEDCL as a licensee. MERC also opined that there are a few services required to be provided by MSEDCL to open access consumers, where MSEDCL may incur some costs. The commission also noted that MSEDCL introduced various online facilities for the benefit of the open access consumers.</p>
<p><a href="https://mercomindia.com/wp-content/uploads/2018/09/open2.png"><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-11317" src="https://mercomindia.com/wp-content/uploads/2018/09/open2.png" alt="" width="470" height="206" srcset="https://cms.mercomindia.com/wp-content/uploads/2018/09/open2.png 470w, https://cms.mercomindia.com/wp-content/uploads/2018/09/open2-300x131.png 300w" sizes="(max-width: 470px) 100vw, 470px" /></a></p>
<p>In its final order, the MERC approved slightly lower charges of open access than what had been proposed by MSEDCL.</p>
<p><a href="https://mercomindia.com/merc-clarifies-terms-granting-open-access-solar/" target="_blank" rel="noopener">Recently</a>, in a ruling, the MERC had clarified that the nodal agency will grant medium-term open access (MTOA) or short-term open access (STOA) in the existing distribution system only if the resultant power flow can be accommodated.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/saumy/" class="vcard author" rel="author"><span class="fn">Saumy Prateek</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/saumy-edited-1.png" width="50" /></p>
<p><strong style="text-decoration: underline">Saumy Prateek</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/saumy/" target="_blank" rel="noopener">More articles from Saumy Prateek</a></p>
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<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/saumy-edited-1.png" width="79" height="102" /><a href="https://mercomindia.com/author/saumy/" rel="noopener"><strong>Saumy Prateek, </strong> </a>is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism &amp; Mass Communication from the Manipal Institute of Communication at Manipal University.<a href="https://mercomindia.com/author/saumy/">More articles from Saumy Prateek.</a></div>
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