Excess power bottled up in power surplus Gujarat...

 

It is a paradox that a little bit of planning can easily address. Gujarat, a power surplus state, is forced to shut down power units for there are no buyers for the power it generates.

On the other hand, power deficit states such as Karnataka and Tamil Nadu, with capacity to buy power they badly need are not able to tap in to this surplus in the absence of west-south grid, the commissioning dates of which are being pushed further ahead.

Explaining this dilemma that his government faces on daily basis, Saurabhbhai Patel, minister for power, government of Gujarat, said Gujarat government sold 30 million units on December 6 at an average rate of Rs 3.28/unit. But the following statistics was more alarming. It could not sell 45 million units for lack of power evacuation means. And Gujarat pays fixed costs to the power generating companies.

In an informal chat with select media here on Saturday, Saurabhbhai Patel said Gujarat has stated generating capacity of around 21,000-MW.

"But if one keeps out of this equation, power from renewable energy sources such as wind and solar, and the nearly 4,000-MW of power that can be generated through gas based units, we are still left with a surplus. The gas based units are closed due to gas pricing policy and variable costs," he explained.

Selling this excess energy either through Indian Energy Exchange or Power Exchange of India Limited or by floating tenders, Patel said, the biggest problem is to get remunerative price. "Most of the northern states are not in a position to pay for power, and states that can do so are unable to get the same due to logistics reason." This situation has arisen due to lack of planning on part of union government which is fully aware of power projects.

The Gujarat government on the other hand is now aggressively promoting industries to set up base in that state so that this surplus power can be tapped into. "We are also striving to attract textile industries without textiles policy so that not only do the cotton growers in the state benefit, but also these industries are able to feed on the power surplus," he said, adding South can benefit if the West-South grid is commissioned at the earliest.

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Another milestone in Gujarat's power sector; to launch India's First Smart Grid at Naroda & Deesa...

 

Like cell-phone users, people may be able to pick a plan for electricity consumption. The Uttar Gujarat Vij Company Ltd (UGVCL) will roll out India's first modernized electrical grid, or the smart grid, in Naroda and Deesa in north Gujarat by April 2014.

The pilot project will study consumer behaviour of electricity usage and propose a tariff structure based on usage and load on the power utility. Eventually, it will be rolled out across the state to disincentivize power consumption during peak hours.

New meters embedded with SIM cards will be installed in 20,000 residential and industrial units in Naroda to monitor data every 15 minutes on how a particular consumer uses power.

The smart grid was first implemented in the US for efficient transmission of electricity. Like the internet, the smart grid consists of controls, computers, automation, and new technologies and equipment working in unison. These technologies work with the grid to respond digitally to the consumer's dynamic electricity demand.

"The smart grid will work on the 'time of day' concept, based on which tariffs will be set. For example if the demand is at peak during 7pm to 11pm, the tariffs will be higher for that period," said Nityanand Srivastava, and managing director, UGVCL on the sidelines of the 6th India Energy Conclave organized by CII.

"This will help us curb power theft substantially," said energy minister Saurabh Patel. In a 50-50 partnership, UGVCL, along with the Central government, will invest Rs 48 crore in the project to set up new infrastructure, meters, servers and analytic systems for smart grid.

The process of inviting tenders for the project will begin on December 17 and after a month of evaluation the companies will be selected. "Once we get data, we will submit a proposal for tariffs based on the data," added Srivastava.

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Power Surplus Gujarat to sell 2,100 MW power to the southern statues by Jan '14...

 

The  state-owned electric transmission company — Power Grid Corporation of India (PGCI) — is all set to connect western power grid and southern power grid by the end of January 2014. A transmission line, connecting Raichur in Karnataka and Solapur in Maharashtra, will allow power-surplus states like Gujarat to sell power to southern states.

Till now, Gujarat was not able to sell power directly to the southern power grid as the western and southern grids were not connected. By covering the distance of up to 300 km by next month, PGCI transmission lines will allow Gujarat to sell about 2,100 MW of power.

This project is already under implementation and the company will commercially launch the transmission line next month, said B Mishra, executive director (corporate planning & IT), PGCI. “It is a single line electric transmission of 765 kv having the capacity to transmit 2,100 MW of power.

Till now, the southern power grid was not connected with the entire country. But with this transmission line, the whole country will have a single power grid,” he added.

This means that any western, northern and eastern state will be able to sell or buy power from the southern states. “At present, only Gujarat is the surplus western state which can sell power to other regions, including southern states,” said Mishra, adding that because of various power projects such as solar, wind and others in the state, Gujarat is able to generate surplus power.

“Gujarat has been demanding connectivity between southern and western power grids. We will be ready with the infrastructure. Now, it is up to the state to decide whether it wants to buy or sell power,” he contended

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GUVNL, Gujarat Discoms want to avail RECs For Solar Power Purchased by them from the Gujarat Solar Park Developers...

 

The Gujarat Discoms have filed an petition with CERC to grant Renewable Energy Certificates for the amount of solar power purchased by them from the Gujarat Solar Park Developers in excess of the Renewable Purchase Obligations; however the CERC has disposed off the petition stating that petition requires the amendment of the REC Regulations which can be persuaded only after a detailed consultation on the same.

GUVNL and the Gujarat Discoms have filed a petition to CERC stating the below arguments:

• Subsequent to the notification of the Solar Power Policy by Government of Gujarat, GERC has determined the tariff for purchase of power from Solar Power Projects for the control period from 29.1.2012 to 31.3.2015. Pursuant to the GERC order the Discoms have entered into Power Purchase Agreements for an aggregate capacity of 971.5 MW (946.5 MW of solar PV projects and 25 MW solar thermal projects) with total 88 project developers. As on the date of filing the application, aggregate solar capacity of 857 MW has been commissioned and has commenced injection of power into the grid.

• As against the solar capacity tied up by the Discoms, the RPO for solar power on the part of the distribution licensees as per the regulation notified by GERC is 1% for the year 2012-13 which works out to 380 MW. The Discoms have tied up significant excess solar capacity for procurement of solar power at the promotional tariff as against the requirement of 380 MW to meet 1% RPO.

• As per the Central Electricity Regulatory Commission (Terms and Conditions for recognition and issuance of Renewable Energy Certificate for Renewable energy Generation) Regulations, 2010 (REC Regulations), the eligibility for REC does not extend to the distribution licensees procuring solar power from the solar power developers at the promotional tariff for the quantum in excess of the Renewable Purchase Obligations of such distribution licensees specified by the State Commission.

• While the Discoms have been paying promotional tariff in respect of solar power purchases including in excess of the quantum of the RPO, they are not getting any benefit of solar power purchased in excess of the quantum specified as RPO. Such quantum of power purchased in the State of Gujarat gets completely excluded from the scheme of Renewal Energy Certificate (REC) or for any other benefit. On the other hand, the solar power developers, who have generated electricity and are consuming the same as CPP or selling through open access, are entitled to the benefit of REC and trading the same in the Power Exchange.

• As per the scheme envisaged in the REC Regulations, the distribution licensees shall purchase solar power from the Solar Developers to the extent of the Renewable Purchase Obligations and thereafter, Solar Power Developers may sell further solar power quantum to the distribution licensees at the pooled power purchase cost of the licensee and become entitled to the Renewable Energy Certificates to be issued by the appropriate agency under the REC Regulations. If such solar power developer sells solar power to the distribution licensees at the same promotional tariff as applicable to the quantum of solar power sold to the distribution licensees towards fulfillment of the Renewable Purchase Obligations, the solar power developers will not get the Renewable Energy Certificates and at the same time the distribution licensees venturing to purchase excess solar power at the promotion tariff as in the case of the State of Gujarat are also not getting any benefit either in the form of the Renewable Energy Certificate or otherwise. The Discoms have submitted that this scheme creates a disincentive for the distribution licensees in the State of Gujarat who have taken initiative to promote solar power without restricting the purchase by the distribution licensees to the extent of the RPO only and also causes a financial impact on the consumers of the State who are required to pay higher tariff in regard to such purchase from solar power projects.

• The local distribution licensees of the area where the Non-Conventional Power Projects including Solar Power Projects are established are best suited to purchase solar power generated from the solar project as compared with any other person including any obligated entities other than the local distribution licensees. In that event, all complications relating to open access, transmission, wheeling, system constraints, evacuation issues as well as dealing with various authorities get avoided. It would be in the interest of all concerned if the power is sold by the Solar Power Developers to the local distribution licensees of the area after fulfilling the RPO, provided such distribution licensees are issued with RECs.

• The CERC may evolve a mechanism where under the distribution licensees in the State are recognized as eligible entities under Regulation 5 of the REC Regulations in regard to any quantum of renewable power purchased by them in excess of the RPO, allowing them to exchange the REC with the distribution licensees who are in deficit in the fulfillment of the RPO in regard to solar power.

Thus the Discoms have prayed as below:

"(a) Initiate a proceeding in pursuance to the above petition for inquiring into and deciding on varies matters concerning the solar power development as detailed herein above;

(b) Declare that the distribution licensees shall also be made as 'Eligible Entities' for the Renewable Energy certificate under the REC Regulations in respect of the purchase of solar power by them on promotional tariff in excess of the stipulated Renewable Purchase Obligation;

(c) Advise the Central Government on the issue of fixing uniform Renewable

Purchase Obligation of solar power across all the States;

(d) Other matters concerning the solar power development as mentioned herein above so as to implement an uniform policy across all the States; and

(e) Pass any such further order or order as this Hon'ble CERC may deem just and proper in the circumstances of the case."

However as said by the CERC:

After going through the contents of the petition, it appears that the Discoms are seeking amendments to certain provisions of the REC Regulations in order to make the distribution licensees eligible for grant of REC for the power purchased by them in excess of their RPO.

According to the Discoms, this would enable the distribution licensees to meet their RPO and also encourage them to buy solar power in excess of the RPO. The Commission is of the view that the existing provisions of eligibility in the REC Regulations which is limited to generating companies is adequate at this stage of development of REC market. Without going into the merit of the issues raised, we intend to clarify that filing of the petition is not the proper process for initiating the amendment to the existing regulations.

The Commission under Section 178 of the Act has been vested with the power to make, amend and repeal the regulations on the subjects which have been authorized under various provisions of the Act. Action to make or amend the regulations is initiated when the Commission is satisfied that there is need for such regulations or amendment to the existing regulations. However, the Commission has taken note of the submissions and concerns of the Discoms regarding issuance of solar RECs to the distribution licensees in excess of their RPO. We direct the staff to examine the issues and submit a proposal to address the problems, if any, for consideration of the Commission.

With regard to Discoms' prayer for rendering advice to the Central Government on the issue of fixing uniform RPO of solar power across all the States, it is clarified that the Commission vide its letter dated 28.12.2011 has already given its statutory advice to the Ministry of power in terms of Section 79 (2) of the Electricity Act, 2003.

The complete order can be downloaded from here.

Source: CERC

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