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Nagaland Electricity Regulatory Commission |
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Nagaland Electricity Regulatory Commission |
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| DRAFT OFFICE OF THE
Old MLA Hostel Complex, N
O T I F I C A T I O N
Dated
Kohima, (1)
These regulations may be called the Nagaland Electricity
Regulatory Commission (Renewable
Purchase Obligation and its Compliance) Regulations,
2010. (2)
These Regulations shall come into force from the date of their publication in the Official
Gazette of Nagaland. (3)
These Regulations shall extend to the whole of the State of II
Definitions
and Interpretation: (1)
In these Regulations, unless the context otherwise requires, a)
“Act”
means the Electricity Act, 2003 (36 of 2003); b)
“Central
Agency”
means the agency operating the National Load Dispatch Centre or such other agency as the
Central Commission may designate from time to time; c)
“Central
Commission”
means the Central Electricity Regulatory Commission referred to in sub-section
(1) of section 76 of the Act; d)
“Certificate”
means the renewable energy certificate issued by the Central Agency in accordance with the
procedures prescribed by it and under the provisions specified in the Central Electricity
Regulatory Commission (Terms and Conditions for recognition and issuance of Renewable
Energy Certificate for Renewable Energy Generation) Regulations, 2010; e)
“Cogeneration”
means a process, which simultaneously produces two or more forms of useful energy
(including Electricity); f)
“Commission”
means the Nagaland Electricity Regulatory Commission (NERC) Kohima; g)
“Eligible
Entity”
means the entity eligible to receive the certificates under these Regulations; h)
“Forbearance
Price”
means the ceiling price as determined by the Central Commission in accordance with the
Central Electricity Regulatory Commission (Terms and Conditions for recognition and issue
of Renewable energy Certificate for Renewable Energy Generation) Regulations, 2010, as
amended from time to time, within which only the Certificate can be dealt in power
exchange; i)
“Interconnection
facilities”
means all the facilities which shall include, without limitation, switching equipment,
control, protection and metering devices etc. for the incoming bay(s) for the project(s),
to be installed and maintained by the licensee at the Inter-Connection Point at the cost
of the generator to enable evacuation of electrical output from the Project; j)
“Interconnection
Point”
means the physical touch point where the project line(s) and the allied equipment forming
a part of the interconnection facilities are connected to the licensee’s power
system; k)
“MNRE”
means the Ministry of New and Renewable Energy; l)
“Obligated
Entity”
means the distribution licensee, consumer owning the captive power plants and open access
consumer in the state of Nagaland, which is mandated to fulfill renewable purchase
obligation under these Regulations; m)
“Person”
shall include any company or body corporate or association or body of individuals, whether
incorporated or not, or artificial juridical person; n)
“Power
Exchange”
means any exchange operating as the power exchange for electricity in terms of the orders
issued by the Central Commission; o)
“Preferential
Tariff”
means the tariff fixed by the Nagaland Electricity Regulatory Commission for sale of
energy from a generating station based on renewable energy sources to a distribution
licensee; p)
“Project
Line(s)”
means the transmission line(s) from the generating station to the interconnection point
which shall be constructed, operated and maintained as a part of the project by the
generator, but shall not include the interconnection facilities; q)
“Renewable
Energy Sources”
means renewable sources such as small hydro, wind, solar including its integration with
combined cycle, biomass, bio fuel cogeneration, urban or municipal waste and such other
sources as recognized or approved by MNRE; r) “State
Agency”
means the agency in the State of s) “Year”
means a financial year. (2)
Words
and expressions used in these Regulations and not defined but defined in the Act or the
regulations issued by the Central Commission or any other regulations issued by the
Commission, shall have the same meaning assigned to them respectively in the Act or such
regulations issued by the Central Commission or such other regulations issued by the
Commission. 1.
Promotion of Generation of
Electricity from RE Sources 1.1
Any person, public or private,
generating electricity from renewable sources of energy, irrespective of installed
capacity, shall have mandatory open access to any licensee’s transmission system
and/or distribution system or grid, as the case may be under the NERC (Terms and Conditions for Open Access) Regulations. 1.2
The minimum percentage of electrical
energy which each distribution licensee shall purchase from new and renewable sources
generators shall be as stipulated in the Commission’s order issued from time to time,
subject to the availability of such power. The distribution licensee shall furnish the
quantum of purchase of energy from new and renewable sources and cogeneration for the
ensuing year in the Annual Revenue Requirement (ARR) filing. 1.3 Evacuation facilities shall be provided
by the State Transmission Utility (STU)/ Distribution licensee as per the NERC (Grid Code)
Regulations. The cost of interfacing lines, switch gear, metering, protection arrangement
and related other equipments up to the interconnection point shall have to be borne by the
generators, but the work shall be executed by STU/ distribution licensee. 1.4
The licensee shall provide adequate
payment security mechanism to the generators for purchase of power. 1.5
The licensees shall provide
interconnection of the project line(s) at its nearest control sub-station; Provided
that where it is not feasible for the licensee to provide inter-connection at the nearest
control sub-station, it shall propose to the generator, other feasible interconnection
sub-station(s) and the said proposal, alongwith the reasons for not allowing
interconnection at the nearest sub-station, shall be submitted by the licensee for
approval of the Commission. 1.6
Where
there are right of way problems or there are space limitations at the substations of the
licensee or where the generator opts on his own, the generator may, with the approval of
the Commission, enter into a suitable arrangement for joint project lines for two or more
projects and inject power into the grid through the joint evacuation system. 1.7
For evacuation of power from renewable
sources and co-generation beyond the interconnection point, the licensee shall, prepare a
comprehensive plan for augmenting and establishing the transmission/ sub-transmission
system corresponding to the commissioning of the projects indicating therein, the
year-wise time lines to match the commissioning of the project with the establishment of
the related evacuation system. The plan for the projects expected to be commissioned
during the subsequent years shall be prepared by the licensee at least one year in
advance. Provided
that where the time lines laid down in the plan approved under this sub-regulation are not
adhered to, the defaulting licensee or the generator, as the case may be, shall be liable
to pay such penalty as the Commission may, after affording opportunity, impose. 1.8
The plan prepared under the above
sub-regulation (1.7)
shall
be submitted by the licensee for the approval of the Commission and any expenditure on
account of such plan shall be a pass through to the licensee. 1.9
The generators may, in consultation with
the licensee and with the prior approval of the Commission, augment or establish, on
behalf of the licensee, the transmission system beyond
interconnection
point, on build and transfer basis, and the expenditure so incurred by the generators
shall be repaid by the licensee alongwith interest in five equal instalments, spread over
a period of 5 years commencing from one year after the date of commissioning of the
project, and such expenditure shall be allowed as a pass through to the licensee. 2.
Renewable Purchase
Obligation 2.1
Minimum
quantum of electricity to be purchased by the licensees from renewable energy sources,
expressed as percentage of their total consumption of electricity in a year shall be as
per the schedule, given below:
For
subsequent years, the Commission will separately specify the purchase obligation as the
Commission deems fit; Provided
that 0.25% percentage point out of the total consumption shall be procured from generation
based on solar as renewable energy source only; Provided
further, that such obligation to purchase renewable energy shall be inclusive of the
purchases, if any, from renewable energy sources already being made by concerned obligated
entity; Also
provided that the power purchases/produces by the Licensee from its own renewable energy
sources shall be included in the obligation as specified hereinabove. 2.2
Purchase obligation for licensee as
specified above are mandatory minimum percentage of purchase to be maintained by the
Licensee. The licensee shall have the option to purchase higher percentage with the prior
approval of the Commission. 2.3
The licensee shall indicate the proposed
quantum of purchase from respective cogeneration and renewable sources of energy for a
year in the ARR filing. 2.4
While indicating the proposed quantum of
purchase from renewable sources, the licensee shall indicate the sources from which it
plans to purchase the specified quantum of purchase. The licensee, to the extent possible,
shall source the proposed quantum of electricity from renewable sources within his Area of
supply. 2.5
In a situation where licensee is unable
to purchase the required quantum within Area of supply due to shortage or non availability
of such sources in any given year, to the extent of shortfall, the licensee may purchase
the quantum from renewable sources outside the licensee’s area of supply and
the
licensee shall make best efforts to strengthen the system and provide open access to
transmit power from renewable sources. 2.6
While contracting power purchase from
new sources, priority shall be given to the date of commercial operation of such
generating stations. 2.7 The Commission may review the quantum of purchase from renewable sources by a licensee once in every 3 years or at lesser intervals as may be necessary. 2.8
The Commission may waive the above
minimum quantum targets for the year as per clause 2.1 of this Regulation subject to
supply constraints or any other uncontrollable factor in the opinion of the Commission, at
the request of the licensee. 2.9
The Regulations shall apply to (a)
Distribution Licensee; (b)
Any other person consuming
electricity of 1MW and above (i)
generated from conventional Captive
Generating Plant for his own use and/or; (ii)
procured from conventional generation through
open access / third party sale. 3.1
Subject
to the terms and conditions contained in these regulations, the Certificates issued under
the Central Electricity Regulatory Commission (Terms and Conditions for recognition and
issuance of Renewable Energy Certificate for Renewable Energy Generation) Regulations,
2010 shall be the valid instruments for the discharge of the mandatory obligations set out
in these regulations for the obligated entities to purchase electricity from renewable
energy sources; Provided
that in the event of the obligated entity fulfilling the renewable purchase obligation by
purchase of certificates, the obligation to purchase electricity from generation based on
solar as renewable energy source can be fulfilled by purchase of solar certificates only,
and the obligation to purchase electricity from generation based on renewable energy other
than solar can be fulfilled by purchase of non-solar certificates. 3.2
Subject to such direction as the
Commission may give from time to time, the obligated entity shall act consistent with the
Central Electricity Regulatory Commission (Terms and Conditions for recognition and issue
of Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2010
notified by the Central Commission in regard to the procurement of the certificates for
fulfillment of the Renewable Purchase Obligation under these regulations. 3.3
The Certificates purchased by the
obligated entities from the power exchange in terms of the regulation of the Central
Commission mentioned in clause (1) of this Regulation shall be deposited by the obligated
entities to the Commission in accordance with the detailed procedure issued by the Central
Agency. 4.
State Agency 4.1
The Commission shall designate from time
to time an agency as State Agency for accreditation and recommending the renewable energy
projects for registration and to undertake functions under these regulations. 4.2
The State Agency shall function in
accordance with the directions issued by the Commission and shall act in consistent with
the procedures/ rules laid by Central Agency for discharge of its functions under the
Central Electricity Regulatory Commission (Terms and Conditions for recognition and
issuance of Renewable Energy Certificate for Renewable Energy Generation) Regulations,
2010. 4.3
The State Agency shall submit quarterly
status to the Commission in respect of compliance of renewable purchase obligation by the
obligated entities in the format as stipulated by the Commission and may suggest
appropriate action to the Commission if required for compliance of the renewable purchase
obligation. 4.4
The Commission may from time to time fix
the remuneration and charges payable to the State Agency for discharge of its functions
under these regulations. 4.5
If the Commission is satisfied that the
State Agency is not able to discharge its functions satisfactorily, it may, by general or
special order, and by recording reasons in writing, designate any other agency to function
as State Agency as it considers appropriate. 5.
Determination of Tariff for
electricity from Renewable sources and Cogenerations 5.1
Tariff for purchase of electricity from
renewable energy sources shall be mutually agreed by the licensees and the suppliers at
a level not above the price cap
specified
by the Commission. 5.2
To facilitate examination of
reasonableness of price at which a licensee shall procure energy from renewable energy
sources, the prospective purchaser may require the seller to submit all cost data and
financial charges to the purchaser. MOU/ PPA as agreed between the seller and the
purchaser shall be submitted to the Commission. The
Commission at this stage does not debar a licensee from agreeing to a negotiated price
within the capped price. However, competitive price within the capped level will be the
preferred alternative. 5.3
In case the parties are unable to agree
mutually, the matter shall be referred to the Commission by filing a petition by either or
both the parties for settlement. 5.4
The Commission shall determine the
Tariff separately for each category of renewable source mentioned in clause II(q)
as per NERC (Terms and Conditions for Tariff Determination from Renewable Energy Sources)
Regulations; Provided
that the Tariff so determined by the Commission is subject to review after 5 years and
such revised tariff shall be applicable to agreements entered into after that date. 6
Effect of default 6.1
If the obligated entities does not
fulfill the renewable purchase obligation as provided in these regulations during any year
and also does not purchase the certificates, the Commission may direct the obligated
entity to deposit into a separate fund, to be created and maintained by such obligated
entity, such amount as the Commission may determine on the basis of the shortfall in units
of RPO and the forbearance price decided by the Central Commission; Provided
that the fund so created shall be utilised, as may be directed by the Commission, for
purchase of the certificates; Provided
further that the Commission may empower an officer of the State Agency to procure from the
Power Exchange the required number of certificates to the extent of the shortfall in the
fulfilment of the obligations, out of the amount in the fund; Provided
also that the distribution licensee shall be in breach of its licence condition if it
fails to deposit the amount directed by the Commission within 15 days of the communication
of the direction. 6.2
Where any obligated entity fails to
comply with the obligation to purchase the required percentage of power from renewable
energy sources or the renewable energy certificates, it shall also be liable for penalty
as may be decided by the Commission under section 142 of the Act; Provided
that in case of genuine difficulty in complying with the renewable purchase obligation
because of non-availability of certificates, the
obligated entity can approach the Commission for carry forward of compliance requirement
to the next year; Provided
that where the Commission has consented to the carry forward of compliance requirement,
the provision of clause (2) of the Regulation or the provision of section 142 of the Act
shall not be invoked. 7.
Overriding Effect Notwithstanding
anything contained contrary – (1)
In the Nagaland Electricity Regulatory
Commission (Terms and Conditions for Determination of Tariff) Regulations 2010;
and (2)
In the NERC (Terms and Conditions for Open Access) Regulations. framed
by the Commission under Section 181 of the Electricity Act, 2003, these
Regulations
shall
have
overriding effect in so far as Generation & Purchase of power
from
RE sources is concerned. 8.
Power to Remove
Difficulties If
any difficulty arises in giving effect to any of the provisions of these Regulations, the
Commission may, either sou
moto or
on an application made to it, by general or special order, direct the Licensee/ Generator
or any other person to take suitable action, not being inconsistent with the Act, which
appears to the Commission to be necessary or expedient for the purpose of removing the
difficulty. 9.
Issue of Orders and
Directions Subject
to the provisions of the Act and these Regulations, the Commission may from time to time,
issue orders and practice directions with regard to the implementation and matters
incidental or ancillary thereto. 10.
Saving of Inherent Powers of the
Commission Nothing
contained in these Regulations shall limit or otherwise affect the inherent powers of the
Commission to adopt a procedure, which is at variance with any of the provisions of these
Regulations, if the Commission, in view of the special circumstances of the matter or
class of matters and for reasons to be recorded in writing, deems it necessary or
expedient to depart from the procedure specified in these Regulations. 11. Interpretation All
issues arising in relation to interpretation of these Regulations shall be determined by
the Commission and the decision of the Commission on such issues shall be final. P. SANI |
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Nagaland
Electricity Regulatory Commission (NERC) |
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