APRIL 2023, ISSUE 39
IEX BULLETIN
IN THIS ISSUE...
REGULATORY NEWS
NTPC Vidyut Vyapar Nigam (NVVN) Issues | |||||
Request for Supply for Procurement of | 1 | ||||
Electricity from Gas Based Power Plants | |||||
CERC Issues Draft of 2nd Amendment to CERC | |||||
(Sharing of Inter State Transmission Charges | 2 | ||||
and Losses) Regulations, 2020 | |||||
Telangana | State | Electricity | Regulatory | ||
Commission Issues Additional Surcharge Order | 2 | ||||
for H1 FY '24 | |||||
Uttarakhand Electricity Regulatory Commission | |||||
Issues (Tariff & Other Terms for Supply of | |||||
Electricity from Renewable Energy Sources & | 3 | ||||
Non-Fossil Fuel based Cogenerating Stations) | |||||
1st Amendment Regulations, 2023 | |||||
Ministry of Power (MoP) Issues Draft 3rd | |||||
Amendment to the Electricity (Rights of | 3 | ||||
Consumers) Rules, 2020 | |||||
Gujarat State Electricity Regulatory Commission | |||||
(GSERC) Issues Additional Surcharge Order for | 4 | ||||
H1 FY '24 | |||||
Delhi | Electricity | Regulatory | Commission | ||
Issues (Renewable Purchase Obligation and | |||||
Renewable | Energy | Certificate | Framework | 4 | |
Implementation) 1st Amendment Regulations, | |||||
2023 | |||||
Ministry of New and Renewable Energy | |||||
(MNRE) Issues Bidding Trajectory for RE Power | 5 | ||||
Projects | |||||
CERC Issues Order on Price Cap of Rs. 10/unit | 5 | ||||
Various | State Electricity Boards | Issued Tariff | 6 | ||
Orders | |||||
RECENT REGULATORY REFORMS | |||||
AND ITS IMPLICATIONS | |||||
ON FUTURE ELECTRICITY | |||||
TRANSACTIONS | |||||
By Jogendra Behera, Vice President, Market | |||||
Design & Economics, Indian Energy Exchange, | 8 | ||||
appeared in T&D India on March 15th 2023 | |||||
POWER INSIGHTS | |||||
Power Insights: February 2023 | 10 | ||||
MARKET NEWS | |||||
Market News 2023 | 11 | ||||
TRADE INSIGHTS | |||||
Day-Ahead Power Market | 13 | ||||
Term-Ahead Power Market | 13 | ||||
Real-Time Electricity Market | 15 |
REGULATORY NEWS
NTPC Vidyut Vyapar Nigam (NVVN) Issues Request for Supply for Procurement of Electricity from Gas Based Power Plants
On 10th March 2023, NTPC Vidyut Vyapar Nigam (NVVN) issued a request for supply (RFS) for procurement of electricity from gas- based power plants. The key points of the RFS were as follows:
Objective:
Facilitate supply of 4 GW power from GBP plants during 10th April '23 to 16th May '23 barring holidays to ensure sufficient supply in
DAM
NVVN Bid Process:
- Minimum bid quantity 50 MW
- Bidder should be owner of power station
- Gas based power plant connected to gas pipeline/grid are only eligible
- Bidder will inform the PPA beneficiaries for bidding of the power
Minimum Guaranteed Offtake
- Shall be 1,209.6 MU (8 hours at 4,000 MW & 1,600 MW for 16 hours per day; for 21 days)
- Shall be applicable to individual selected bidders
-
Expected generation profile for a day shall be as identified by
NLDC
Tariff Structure - Variable charges linked to gas price (VCG) and other called Variable Charge not linked to gas price (VCNG)
- VCNG - To be quoted by the seller in Rupees/kWh
- VCG - Seller entitled to receive VCG @ Rs. 8.80/kWh which shall be linked to the price of Gas in INR/MMBTU and USD Exchange rate
- Selection of generators - Based on Technical and price bids
Green Market | 16 |
Bid by NVVN at Power Exchange
- NVVN shall bid the accepted quantum by GBP Plant in Day-Ahead Market.
- NVVN shall bid in DAM at zero price bid.
- Selected Gas Based Plant will offer capacity through NVVN on any Power Exchange (PX), which has operated DAM consecutively for last 30 days for each time block.
- Capacity not offered in DAM can be sold in other power exchange segments like RTM etc provided that, the Nodal Agency shall not carry out other sale at a price lower than applicable VCGA
- No change in law allowed
CERC Issues Draft of 2nd Amendment to CERC (Sharing of Inter State Transmission Charges and Losses) Regulations, 2020
On 17th March 2023, Central Electricity Regulatory Commission (CERC) issued the draft of the 2nd amendment to the CERC (Sharing of Inter State Transmission Charges and Losses) Regulations 2020. The following are the key points of the draft:
- Defined "Deemed COD" (Commercial Operation Date) for cases of transmission system where it is not able to declare COD due to delay in some other generating/transmission system
-
Proposed to amend Regulation 11 (3) to reimburse T-GNA charges to drawee Designated ISTS Customers
(DICs) in proportion to their share in the first bill, after adjustment in RE waiver and making payment in ISTS cases of "deemed COD" - Regulation 12 (3) is proposed to be amended to use the TDR charges for making payment in ISTS cases of
"deemed COD" - Regulation 13 (12) is proposed to be amended to include the mode of recovery of Yearly Transmission Charge (YTC) of the ISTS licensees with 'deemed COD'. It proposes to add that their payments shall be done through the charges collected under the TDR, T-GNA, and the DSM/AS Pool Account, in that order
Telangana State Electricity Regulatory Commission Issues Additional Surcharge Order for H1 FY '24
On 20th March 2023, Telangana State Electricity Regulatory Commission (TSERC) issued an order on Additional Surcharge for H1 FY '24 approving ASC @Rs. 0.39/unit against the claim of Rs. 9.86/unit.
Existing ASC | Claimed ASC | Approved ASC | Reduction in ASC |
(Rs./unit) | (Rs./unit) | (Rs./unit) | (Rs./unit) |
1.38 | 9.86 | 0.39 | -0.99 |
TSERC issued following direction in the ASC Order:
- TSDISCOMs in their future ASC filings are directed to reflect the stranded capacity after netting off short- term purchases (block wise)
-
TSDISCOMs in their future ASC filings are directed to reflect the distribution charges for only HT network viz.,
11 kV and 33 kV
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Uttarakhand Electricity Regulatory Commission Issues (Tariff & Other Terms for Supply of Electricity from Renewable Energy Sources & Non-Fossil Fuel based Cogenerating Stations) 1st Amendment Regulations, 2023
On 21st March 2023, the Uttarakhand Electricity Regulatory Commission Issued the 1st Amendment to the UERC Regulations 2023.
The RPO trajectory defined in line with MoP notification is as follows:
Year | Wind RPO | HPO | Other RPO | Total RPO | Storage RPO |
2022-23 | 0.81% | 0.35% | 23.44% | 25.60% | |
2023-24 | 1.60% | 0.66% | 24.81% | 27.08% | 1% |
2024-25 | 2.46% | 1.08% | 26.37% | 29.91% | 1.50% |
2025-26 | 3.36% | 1.48% | 28.17% | 33.01% | 2% |
2026-27 | 4.29% | 1.80% | 29.86% | 35.95% | 2.50% |
2027-28 | 5.23% | 2.15% | 31.43% | 38.81% | 3% |
2028-29 | 6.16% | 2.51% | 32.69% | 41.36% | 3.50% |
2029-30 | 6.94% | 2.82% | 33.57% | 43.33% | 4% |
- Wind RPO - Met from Wind Power Projects (WPPs) commissioned after March 31st, 2022
- HPO - Met from LHPs (including PSPs & SHPs), COD after March 8th, 2019
- Other RPO met from any RE power project not mentioned above
- UERC specified that Discom will be eligible to utilise gross Solar energy generated from rooftop or small solar power plants of non-obligated entities for meeting its 'Other RPO' compliance
- Storage RPO - Percentage of energy consumed from solar/wind with storage
- FY 2022-23 onwards, energy from all Hydro Power Projects (HPPs) will be considered as part of RPO
Ministry of Power (MoP) Issues Draft 3rd Amendment to the Electricity (Rights of Consumers) Rules, 2020
On 24th March 2023, the Ministry of Power (MoP) issued the draft of the 3rd amendment to the Electricity (Rights of Consumers) Rules, 2020. The changes proposed are mostly related to smart metering and read as follows:
- ToD tariff to be effective immediately after installation of smart meters, for the particular category of consumers with smart meters
- ToD tariff for C&I consumers having Maximum Demand up to 10 kW shall be made effective from a date not later than 1st April 2024 and for other consumers except agricultural consumers, it shall be made effective not later than 1st April 2025
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-
ToD Tariff specified by the State Commission for C&I consumers during peak period shall be ≥ 1.20 times and for other consumers, it shall be ≥ 1.10 times the normal tariff:
o Tariff for solar hours of day, specified by the State Commission shall be at least 20% less than the normal tariff for that category of consumers
o Provided also that the duration of peak hours shall not be more than solar hours as notified by the State
Commission or SLDC
Gujarat State Electricity Regulatory Commission (GSERC) Issues Additional Surcharge Order for H1 FY '24
On 29th March 2023, Gujarat State Electricity Regulatory Commission (GSERC) issued an order on Additional Surcharge for H1 of FY '24 with the following details:
- GERC has worked out an Additional Surcharge at Rs. 0.76/unit (existing 0.31/unit).
- New ASC applicable from 1st April, 2023
Delhi Electricity Regulatory Commission Issues (Renewable Purchase Obligation and Renewable Energy
Certificate Framework Implementation) 1st Amendment Regulations, 2023
On 29th March 2023, the Delhi Electricity Regulatory Commission (DERC) issued the first amendment to Renewable Purchase Obligation and Renewable Energy Certificate Framework Implementation Regulations 2023.
- The RPO trajectory defined in line with MoP notification up to FY 2025-26:
Sr. No. | RPO Targets | FY 2023-24 | FY 2024-25 | FY 2025-26 |
1. | Wind RPO | 1.60% | 2.46% | 3.36% |
2. | Other RPO | 24.81% | 26.37% | 28.17% |
3. | HPO Target (Only for Distribution Licensee) | 0.66% | 1.08% | 1.48% |
4. | Total RPO Target | 27.07% | 29.91% | 33.01% |
- DERC approved computation of RPO only on total consumption during the year and removed the part
"excluding consumption from hydro" - DERC allowed large hydro plants, pump storage plants and small hydro plants commissioned after 8th March 2019 towards HPO compliance
- DERC in the draft regulation had included a proviso to limit the procurement of RECs for fulfilment of 15% RPO shortfall this proviso has been omitted in the final regulation
-
DERC has approved computation of penalty on weighted average REC price discovered at Power Exchange
(IEX) and not on floor and forbearance price - In case of shortfall in RPO, DERC has provided to consider RECs as per the CERC Regulations
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Ministry of New and Renewable Energy (MNRE) Issues Bidding Trajectory for RE Power Projects
On 31st March 2023, the Ministry of Renewable Energy (MNRE) issued the bidding trajectory for renewable energy projects in the country:
- As on 28th February 2023, India's RE installed capacity stood at 169 GW
- Considering the target of 500GW from non-fossil sources by 2030, following trajectory is prescribed for RE power bids to be issued by RE Implementing Agencies (REIAs):
o Bids for RE capacity of 50 GW/annum, with at least 10 GW/annum of Wind Energy capacity, to be issued each year from FY 23-24 to 27-28
o Timeline for 50 GW RE capacity for FY 23-24 - Q1 & Q2: At least 15GW of RE capacity in each quarter
- Q3 & Q4: At least 10GW of RE capacity in each quarter
- Bids for a fore said trajectory may consist of vanilla Solar, vanilla Wind, Solar-Wind Hybrid, RTC Renewable Energy power etc with or without storage, or any other combination
CERC Issues Order on Price Cap of Rs. 10/unit
On 31st March 2023, the Central Electricity Regulatory Commission (CERC) issued a price cap of INR 10 on the following:
- CERC has issued order directing all Power Exchange (PXs) to re design their bidding software for the period from April 4th, 2023 until further orders, in such a way that the members can quote the price in the range of (Rs. 0/kWh to Rs. 10/kWh for all contracts, viz DAM (including GDAM), RTM, ITD, DAC and TAM (including GTAM) and (Rs. 0/kWh to Rs. 20/kWh in the HP DAM segment
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Indian Energy Exchange Ltd. published this content on 26 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2023 08:06:03 UTC.