RERC Approves Amended Norms On RE Tariff Determination

The Rajasthan Electricity Regulatory Commission (RERC), in its latest suo motu order, notified the first amendment to the tariff determination regulations for renewable energy. It came after the Commission received responses from the stakeholders over its draft regulation on the issue. 

The new regulation has been named RERC (Terms and Conditions for Tariff Determination from Renewable Energy) (First Amendment) Regulations, 2023. The Commission, while approving the same, has asked the authorities concerned to publish the same in the official gazette. 

In its order, the Commission deliberated upon several issues raised by the stakeholders. The RERC said in its draft paper that it had proposed a project-specific tariff based on the minimum CUF norms. RVUN, in its plea before the RERC, asked the panel to consider the inclusion of state GENCO under the project-specific tariff provision and to add a new provision regarding ceiling norms for the production of green hydrogen and green ammonia. However, the RERC said the provision was adequate and required no changes.

Another issue raised by the stakeholders was related to the transmission, wheeling and other charges. The original document had said that cross subsidy surcharge and additional surcharge should be applicable for waste-to-energy plants under open access and that renewable power is used for green hydrogen/green ammonia production. Based on the feedback, the Commission amended Sub Regulation 91.4.1 to allow the extension of charges for renewable projects. 

Another draft proposal discussed the peak AC capacity of renewable power captive powers and claimed that their generation should not exceed the AC capacity agreed upon by the discoms. It also said that the corresponding excess generation would lapse in such cases. However, it included more amendments in the section to clarify the case of inverter capacity. 

The finalized norms said, “The peak AC capacity (inverter capacity on AC side) of the renewable energy captive generating plant shall not exceed the contracted AC capacity. In case during any time block, if the peak AC capacity exceeds the contracted AC capacity, the corresponding excess generation of a 15-Minute or 30-Minute block, as applicable, shall lapse.”

The Commission also amended some of the draft norms related to banking. It came after some of the stakeholders pointed out ambiguities and requested clarity on several aspects. “Stakeholders have requested for specifying the banking charges varying from 2% to 10%. The Commission, after considering the suggestions, deems it appropriate to specify the banking charges @ 8% in line with the FoR Model Regulations,” the order said.

It also added, “As regards the suggestion of allowing drawl of banking during the peak hours on payment of additional banking charges, Commission is of the view that looking to the present demand profile during the peak and off-peak hours over the various seasons, presently it would not be appropriate to allow such drawl during the peak hours.”

The Commission also allowed banking facilities for consumers sourcing their power from ISTS plants located within or outside Rajasthan only for captive consumers where both the injection and drawl points are located within the state.