21st Meeting of State Advisory Committee: Maharashtra Electricity Regulatory Commission Renewable Open Access; Perceived Concerns & Way Out By Mr Harry Dhaul March 30 2012

1. 21st Meeting of State Advisory Committee:
Maharashtra Electricity Regulatory Commission
Renewable Open Access;
Perceived Concerns & Way Out
By:
Harry Dhaul
Director General
IPPAI
March 30, 2012
Harry Dhaul - Director General, IPPAI

2. My
Money?? My U.S.O ??
Status ??
DISTRIBUTION
COMPANY
Harry Dhaul - Director General, IPPAI

3. Renewable Energy: Generator’s Concerns
In-firm Nature
Risk of loosing out on
excess generation; no
commercial benefit to
generator
Ui
Exposure to UI
Harry Dhaul - Director General, IPPAI

4. Renewable Energy: Consumer’s Concerns
Reduced Contract
Incentives ?
Demand
Tariff
Implications ?
Regulatory
Gap ?
Temporary
Tariff ?
Harry Dhaul - Director General, IPPAI

5. Renewable Energy OA:
DISCOM’s concern due to perceived Revenue Loss
Outsider’s
View
Planned ARR
in vain Unscheduled Power Buying
System burden due to Universal Service
constant flip-flop Obligation
Harry Dhaul - Director General, IPPAI

6. Perceived Concern:
 Open Access of Renewable Energy
 Banking of Renewable Energy
 Contract Demand reduction
 Stand-by supply
 Scheduling of Renewable Energy
Harry Dhaul - Director General, IPPAI

7. What may be done:
 Open Access of Renewable Energy
 Establish transparent process for grant of RE Open Access
including defined time-frames, consumer change options,
energy credit settlement etc.
 Need for determination of suitable Admin/
Operating & wheeling charges linked to generating
capacities
 Setting up of a “Special Cell” under aegis of
MERC for fast-track redressal
Harry Dhaul - Director General, IPPAI

8. What may be done:
 Banking of Renewable Energy
 Inevitable for In-firm, unpredictable, uncertain generation
 Must be allowed for units upto 10MW
 Could be made optional, provided RE developers ready to
pay a mutually agreed “Banking Charge” blessed by MERC
 Differential energy between over-generated and under-
consumed must be considered as “Deemed Banked unit”
 Deemed Banked units must be paid to generators @ APPC by
host DISCOM
Harry Dhaul - Director General, IPPAI

9. What may be done:
 Contract Demand Reduction
 Need to link contract demand with CUF
 Protocols may be formulated for Contract Demand restoration
upon completion of OA Tenure without any documentation
 Reduced Contract Demand
may be kept under suspension
during approved OA tenure
Harry Dhaul - Director General, IPPAI

10. What may be done:
 Stand-by Supply
 Temporary tariff as concept is universally acceptable
 Needs to be rationalized i.e 1.5 times of applicable HT Tariff.
 Option for arranging back-up power may also be allowed
from Intra/Inter state or Intra state DISCOM by paying a
mutually agreed rate to host DISCOM
Harry Dhaul - Director General, IPPAI

11. What may be done:
 Scheduling of Renewable Energy
 Must be allowed as per TOD band instead of 15mins block
 Settlement procedure's to be made in lines with CERC
proposed mechanism
 Clarity on “legal entity” responsible for scheduling must be
provided i.e
 Who will be held responsible for
scheduling- Project Developer, O&M
Operator, Owner or Pooling Sub-
Station operator ????
Harry Dhaul - Director General, IPPAI

12. Harry Dhaul - Director General, IPPAI