Solar Regulations Grid Connected, Ground Mounted and Solar Roof Top & Market Policies

सौर ऊर्जा – ग्रिड कनेक् टेड िजउंड मजउंटेड और सोलर रूफटॉप एवं मीटररगं ववननयम और बजर्जर की नीनियों

Joint Electricity Regulatory Commission ( for Goa & Union Territories) www.jercuts.nic.in

YP Chawla, Advisor +91 98107-08707 ypchawla@gmail.com

DISTRIBUTION TECH INDIA

15th May 2015

Session 3d Market Policies & Regulations

Power Generation Exhibition & Seminar for India & Central Asia 2015 PGICA 2015

14-16th May 2015 – Pragati Maidan , New Delhi

Power Market – Emerging Trends

Installed Capacity in India as on 28 ’ Feb-2015

Coal, 158496 MW,

60.72%

Gas , 22971 MW, 8.80%

Diesel , 1199 MW,

0.46%

Nuclear , 5780 MW,

2.21%

Hydro, 40867 MW,

15.66%

Renewable, 34351 MW,

12.14% Coal

Gas

Diesel

Nuclear

Hydro

Renewable

Total = 261

GW Source :- CEA

Wind Power (22,645MW),

66%

Small Hydro Power (4,025 MW), 11.7%

Biomass Power & Bagasse

Cogeneration (4,299MW),

12.5%

Solar Power (3,383MW),

9.8%

Wind PowerSmall Hydro PowerBiomass Power & Bagasse CogenrationSolar Power

Renewable Generation Installed Capacity as on 28’ Feb-2015

Source: MNRE

Green Energy Technologies, the journey till 2022- giz presentation

GoI has embarked upon a Massive Solar Power Generation Target along with Solar Roof Top Targets for 2022

Electricity Regulatory Commissions could be obliged for 8% of power generation from solar sources by March 2019, up from original target of 3% by 2022, - a proposed policy amendment.

Electricity Regulator’s Challenge is to balance The Electricity Act The Renewable Energy Act when amalgamated The Electricity Policy The Tariff Policy Renewable Energy Policy National Action Plan on Climate Change State Policy on Renewable Energy Electricity Grid Health Metering Market Policies towards: Economical Power to the Consumers Due return on the investment by Discoms Encourage Investments in Renewable Energy Sector

No Power Generation in the Territories of JERC Except : A small gas turbine in Puducherry A small Hydro in A&N Smaller Solar Plants in Lakshadweep & 1x5 MW Solar Plant in A&N A&N and Lakshadweep is depending on Diesel Power Generation.

Actions Levels are:

• Adjudicative- Act by Parliament

• Executive- Ministry ( MNRE / Power) - & Regulator

• Judiciary- Regulator / Appellate Tribunal/ Supreme Court

Institutional Framework

10

Regulator

Power Flow

Money Flow

Regulation

Market

Generation: Public,

Private

Transmission:

Public, Private

Distribution: Public,

Private, Bulk consumers

Caveats : Solar Energy Targets • Funding • Unhealthy Distribution Sector (State Owned) • Private Sector – Payback Period • High Targets 100 GW need 1095 Sq Kms Land + 650 Sq Kms Roof Top • Investment in Infrastructure – Rs. 45 Lac Crore = USD 700 Bn. • Capital Investment – Challenge Banks having advances Rs. 63 Lac

Crs= USD 984 Bn. • Lines of Credit Stitched: EIB Euros 200 Mn.

• AFD Euros 100 Mn. • JICA Yen 20 Bn. • US Exim USD 1 Bn.

Manufacturing : 15 GW / Year ( Present Domestic Prodn 2.5 GW/ Year PPAs for Discoms 21/29 Discoms Debt laden 1 Mn. Technically Trained Manpower

010002000300040005000600070008000

Per-Capita Consumption 2013-14 (Based on Approved Consumption) in JERC , Other data as per CEA (kwh)

Puducherry : 5910

Lakshadweep : 2100

National : 884

Bulk Power Generation Based on Diesel DNH : 79510

Daman Diu : 34470

Goa : 5000

Chandigarh : 7400

Andaman/ Nicobar : 1900

JERC also faces a very wide Consumer base and Per Capita Electricity Consumption, Four Territories peaking highest in India .

Challenges are compounded by small land base with almost nil Waste land, Poorer CUF compared to many areas.

Sl. Location Latitude Longitude

1. Goa 15.4989° N 73.8278° E

1. Andaman & Nicobar 11.68° N 92.77° E

1. Chandigarh 30.75° N 76.78° E

1. Dadra & Nagar Haveli 20.27° N 73.02° E

5.a Daman 20° 25' N 72°.53° E

5.b Diu 20° 42' N 71.01° E

6.a Puducherry- Puducherry 11.93° N 79.83° E

6.b Karaikal- Puducherry 10° 55' N 79. 52° E

6.c Mahe- Puducherry 11.7011° N 75.5367° E

6.d Yanam- Puducherry 16.7333° N 82.25° E

7. Lakshadweep 10° 00' N 73.00° E

Every State has its own Challenges for Solar Power Generation

Joint Electricity Regulatory Commission for Goa & Union Territories faces more changes for Solar Power Generation for its widely physical diversification of its constituent territories.

Andaman & Nicobar Islands Important from National Security Angle, need to be lighted up. Not connected to National Grid. Have own micro grids at each Island. Power Generated is mainly by Diesel.

Population : 380581 ( 2011 Census), 8249.00 Sq. Kms.

Area 32 sq. km

Population 64,429

Lakshadweep Islands also equally Important from National Security Angle needs to be lighted up. The Islands are not connected to National Grid. Have own micro grids at each Island. Power Generated is mainly by Diesel.

Sl Location Avg. Cost

of Power

Purchase

Solar REC Total

Cost of

RPO

Solar Tariff

a b c d e f

Rupees / kWh

1 Goa 4.13 3.50 7.63 6.95-5.46

2 Andaman & Nicobar 32.73 3.50 36.23 7.62-6.93

3 Chandigarh 4.76 3.50 8.26 6.95-5.46

4 Dadra & Nagar Haveli 3.74 3.50 7.24 6.95-5.46

5 Daman 4.99 3.50 8.49 6.95-5.46

6 Puducherry 3.39 3.50 6.89 6.95-5.46

7 Lakshadweep 21.32 Enough

Solar gen.

21.32 7.62-6.93

Col. “f” is Solar Tariff for FY 2015-16 by JERC Higher Tariff for Plants up to 500 kWp. JERC welcomes Battery Stored Power for A &N and Lakshadweep

with different Tariff

Merits of Solar Generating in own state rather than buying RECs

Technology Maturity

Budgetary Constraints

Regulatory Changes

Utility Architecture

Customer’s Interests Regulatory

Directives

Economics

Customer Choice

Technology

Location

Ref: TCS Metering Presentation

Challenges the Commissions face:

Solar Regulations to cater for… • Defining who can be a Project Developer

• Defining Eligible Consumers (For Roof Top)

• Defining interconnection Voltage with Grid

• Project developed on Net Metering or Gross Metering.

• Meter Specifications

• Commercial arrangements

• Benefits to Solar Generator

• Smart Utility and the changing Power System Network

• Regulations for Stored Solar Power Supply

• Regulators to sensitize the Stakeholders- Market Part

Sl. Particula

rs

Description

1

Eligible

Entities

Any person / Any Electricity consumer of the territory of JERC

/ Corporate body/ Company/ Government Body / Institution/

PSUs /State / Departments / Local Governments/Municipal

Corporations/National Housing Board/ Individual’s / factory

owner / Ware house owner / / Resident Welfare Associations/

Market Associations / Group Housing Society/ Panchayat

Bhavan / Canal owners / Ports / Vehicle Parking Sheds or any

other similar entity or a place etc.

2

Control

Period

Up to end of FY 2016-17 or till it is revised. The present control

period will be from the date of notification which shall

continue till the same is revised. Broad Parameters will remain

unchanged till revision is affected. Tariff will be reviewed every

Financial year based on market Capital Cost Changes.

Solar Regulations of JERC

3

Nodal /

Accredit

ed

agency

For advising the applicants, the Nodal agency is as notified by

the Commission for each of the territory under its jurisdiction

and for RECs. Ref these regulations

4 Approval

Agency

The Distribution Licensee of the area concerned

5 Motivati

on

By State Nodal agency / Distribution Licensee with Regulators’

Support.

6

Metering Solar Power Generation including Roof Top being promoted,

under Gross Metering / or Net Metering as opted by the Solar

Power Generator.

7

Solar

Power

Generati

on Plant

Targets

Up to the limit to meet the RPO requirements of the territories

in the territories under the jurisdiction of the Commission.

However, for Lakshadweep as well Andaman & Nicobar, there

is no restriction as of now. JERC welcomes Proposals on

Battery Stored Solar Power for Andaman & Nicobar and

Lakshadweep.

Solar Regulations of JERC……. Contd.

8

Financial

Assistance

State bodies or Public Institutions might get the financial

Assistance from the State Government or Utility

Administration if announced by them

9 Subsidies Respective Nodal Agencies will help in guiding for the

Subsidies from MNRE

10

Connecting

Voltage as

per the

System

capacity

1 kWp to 10 kWp Single Phase , 220 V

11 >10 kWp to 25 kWp Three Phase , 415 V

>25kWTo 100 kW Three Phase , 415 V

>100kWpTo 4 MWp 6.6/11 KV as per availability on the

Site 12

13 >4 MW to any size 11KV / 22 KV /33 KV as per

availability on the Site

14

Meter

Specification

As specified by CEA. The meter will be arranged by the

Solar power Generator from approved vendor of the

Licensee. The meter shall be installed by the licensee.

Solar Regulations of JERC……. Contd.

Provisions of JERC Solar Regulations a. Solar PV Roof Top and Ground Mounted also to cover Solar panels

mounted on the Structures ( like Parking Sheds), Co–operative housing societies.

b. Higher Tariffs for Solar PV due to Costs higher than considered by the Commission & Lower CUF.

c. Higher Tariff for Small Solar Plants due to higher Capital Costs on per MW basis for small size projects.

d. Additional Cost of Sea freight to be considered for A&N and Lakshdweep.

e. Cost of Civil Works in A&N is higher due to import of River sand from main land.

f. Higher Costs of Structures in A&N due to sloping waste land

g. The financial Electricity bill adjustment to be on gross metering basis.

h. RPOs to be counted if generated Solar power is metered, even if consumed by the consumer by self.

Allowed for Parking lots

AGGREGATED NET METERING(ANM)- Aggregated net metering allows for a property owner with multiple meters on one property or adjacent properties to implement net metering, such as with a group of university buildings or adjacent farm properties .

16 plus state in USA are running with (ANM) are Arkansas, California, Colorado, Connecticut, Delaware, Maine, Maryland, Minnesota, Nevada, New Jersey, New York, Oregon, Rhode Island, Utah, Washington , West Virginia , Australia

Basic Meter Aggregation Tenant Meter Aggregation

Multi-Site Meter Aggregation

Meter Aggregation

Virtual Net metering (VNM)

VNM refers to when an electricity customer with on-site generation is allowed to assign their ‘exported’ electricity generation to other site/s. The other site/s may be owned by the generator or other electricity customers. The term ‘virtual’ is used to describe this sort of metering arrangement as the exported electricity generation is not physically transferred to the consumer, but rather transferred for billing reconciliation purposes

Community Net Metering

• A third concept, community net metering (also known as neighborhood net metering, community-based renewable energy or community solar) allows for multiple users to purchase shares in a single net metered system, either located on-site or off-site. For example, this could take the form of residents in a community or condominium buying shares in a medium-sized solar array.

At least 10 states in USA and Washington, D.C., have authorized community net metering or pilot projects: California, Colorado, Delaware, Illinois, Massachusetts, Maine, Minnesota, Rhode Island, Vermont and Washington.

Challenges of JERC in Metering , Goa and UTs are still continuing with vintage Meters. Solar Metering to gel with new Metering likely.

• Service level norms

• Renewable integration • RPO Compliance

• Solar Generation growth forecasting

• DSM & EE

• RGO when introduced.

• Cash box

• Theft control

• Revenue cycle

• Network health & availability

• Network Planning

• Outage management

• Fault prediction

• Supply quality

• Field team efficiency & Safety

• Tariff compliance

• SLA compliance

• Information to customer

• Supply quality

• Billing dispute

Customer And

Regulator

Utility Operations

Govt. Future Policy

Utility Balance Sheet

Solar Power Generation Effects All the Stakeholders

• Solar Energy accounting in the Grid

• It is an interval-wise and month-wise accounting for

–Gross/ Net energy entering the system

–Energy exported from the Solar Generation System

–Net energy drawn by the Consumer

Wheeling, and wheeling

loss- Solar These red dots are the boundary

locations (meters) defining utility

boundary for a transmission utility

Say, a State or a Union

Territory

These are inter-utility lines (inter-state lines and intra-

state)

Transmission system of

State or a Union Territory

Regulator Challenge increases if there are more than 1 Discom in the state

Discom

Standardization

Customer:

•Assurance of the quality of

Power Supply and services

received.

•Provide better value for

money.

•Convenient for settling

disputes, if any, with the

Discoms.

Customer Regulations to help Build

Trust between the Stake

Holders

Discom:

•Rationalize the

Distribution process.

•Reduce Commercial

Losses.

•Reduce the T& D

losses

• To meet RPO

economically.

Conclusions

• Electricity being concurrent subject, the policies and regulations on Solar Power Generation change depending on the Solar Insolation of each area, availability of Waste land etc.

• Power deficit in the State

Recommendations

• Solar Energy now made a priority sector, Banks to support .

• The Commercial & Industry Consumers having power to invest are not getting any subsidy ( in new scheme). The payback period of Solar Plant is still higher than their prime business. They need to be motivated.

• A huge trained manpower is required to install and maintain these Solar Plants, an immediate action is required in this regard.

Joint Electricity Regulatory Commission ( for Goa & Union Territories) www.jercuts.nic.in

YP Chawla, Advisor +91 98107-08707 ypchawla@gmail.com

Back Up Slides

THE POWER SECTOR AT A CROSSROAD

38

39

Capacity Additions in Renewables

ELECTRICITY STORAGE ROADMAP

40

PLANNING

FOR INTEGRATION

Electricity Storage Studies Largely Technology Oriented

41

Organisation Focus Output

IEA Global Recommendations for action; IC

EASE/EERA EU RD&D priorities

NEDO Japan Performance indicators

ADEME France R&D priorities, barriers

CFLCF UK R&D priorities, barriers

NAATBatt US Survey

NY_BEST New York Policy proposals

Fraunhofer ISI Electric Mobility Performance indicators, R&D

U.S. DRIVE Electric Mobility Performance indicators, capacity

RECHARGE Electric Mobility Policy proposals

Storage Technology Roadmaps Market & Policy Oriented

Aim: Identify key areas for international cooperation to support the integration of variable RE and the transition of power infrastructures

Objectives:

– Address key techno-economic questions by policy makers

– Explain relationship btw policy & technology deployment

– Provide platform for interaction btw multiple stakeholders

– Allow for prioritization of activities

42

Conclusions of Dusseldorf Workshop:

Key areas for international cooperation

43

• Storage for self-consumption

– In countries with high retail prices

– In countries with black-outs

– For SMEs

• Storage for renewable off-grid solutions

– Near commercial viability

– Need for standards and innovative financing

• Storage for dispatchability

– Located at generation side

– Value and price storage services and contracting mechanisms key

• Grid stability services

– Economically not viable yet in the short-term

– Ancillary services markets and grid codes would be needed

Battery Selection

Ambient

Conditions/

Temperature

Depth/Length

of dischargeEfficiency

Application

Maintenance

Requirements/

Costs

Installation

Infrastructure

Battery Cell

and Module

CostPolicy/

Regulatory

Treatment

Power

Component

Availability and

CostEnergy

Density

Space

Limitations

Calendar and

Cycle Life

Safety

Technology and

Company Track

Record

Company Warranty

/ Performance

Guarantee

Performance

Requirements

Grid / Utility

Requirements

Battery Storage for Renewables

Battery Storage for Renewables 12 case studies with data on technical/economic specifications

45

Application Outlook

Islands and Off-grid Applications

Household Solar PV

RE Smoothing and Supply Shift

Fast Regulation

Battery Selection

Ambient

Conditions/

Temperature

Depth/Length

of dischargeEfficiency

Application

Maintenance

Requirements/

Costs

Installation

Infrastructure

Battery Cell

and Module

CostPolicy/

Regulatory

Treatment

Power

Component

Availability and

CostEnergy

Density

Space

Limitations

Calendar and

Cycle Life

Safety

Technology and

Company Track

Record

Company Warranty

/ Performance

Guarantee

Performance

Requirements

Grid / Utility

Requirements

Renewables are Increasingly Cost-Competitive

46

47

Production Estimates

Solar

Additional Back Up Slides

The most successful countries in net metering

and Feed in Tariff (FiT) are USA, German, and

Japan. Germany is well-known example of FiT .

Japan and several states in the United States, on

the other hand, have implemented net-metering

Additional Back Up Sides : Courtesy Mr. Vinoth CPRI

Gross metering In gross metering arrangement, the entire energy generated by rooftop solar PV system is fed directly into the electrical grid and the system owner is benefited by feed-in-tariff based on sale of power to the utility.

Gross metering

Net metering In a net-metering arrangement, the focus is primarily on self-consumption of electricity generation by the consumer. The excess/surplus is either sold to or banked with the local utility.

Net metering

Net meter system

The metering system consists of two meters namely

Utility Net meter

solar generation meter.

The utility meter (Net-meter) has to be bi-directional meter to register both import as well as export.

The solar meter is an optional and it shall be unidirectional to record the total electricity generated by solar.

Net metering arrangements generally do not require that customers have two separate meters. Customers may be required with separately meter for solar generation with (Time of Use) TOU option.

1 Panels

Sunlight falls on Solar panels that converts the Sun’s energy into direct current

2 Inverter

Inverter converts the direct current into alternating current

3 Meter

Surplus Power Produced is sent to power grid

4 Consumer

Gets Solar Energy of high quality with minimal chance of fluctuation

5 Net Metering

Solar Power Plant is connected to power grid. Discom will raise bill for “net power” consumed

Net metering Configuration

Net metering connection without storage (Source: Deloitte Research)

Net Meter And Configuration In India

Net metering connection with storage (Source: Deloitte Research)

Interconnection Requirements • Distributed systems in India have been connected to the grid adhering to CEA

(Technical Standards for Connectivity of the Distributed Generation Resources) Regulations 2013.

• Metering Standards The meter shall adhere the Central Electricity Authority (Installation and Operation of meters) (Amendment) Regulations 2010. As per CEA regulation, the accuracy class up to 650 volts is 1.0 or better, Above 650 volts and up to 33 kV is 0.5 or better, Above 33 kV is 0.2 or better.

• Harmonics Standard As per the standard of IEEE 519, the permissible individual harmonics level shall be less than 3% (for both voltage and current harmonics) and Total Harmonics Distortion (THD) for both voltage and current harmonics of the system shall be less than 5%. Inverter should comply with IEC 61683/IS 61683.

• Inverter should supervise the grid condition continuously and in the event of grid failure (or) under voltage (or) over voltage, Solar System should be disconnected by the circuit Breaker / Auto switch provided in the inverter.

• DC Injection The distributed generating resource shall not inject DC current greater than 0.5% of the full rated output at the interconnection point.

State wise net metering policies in India

Eligible consumers and

interconnection Voltage Meters

Commercial arrangements/

benefit

HT tariff II-A, HT tariff III, LT

tariff I-A, LT tariff I-C, LT tariff

II-A, LT tariff II-B (1) and LT

tariff V

Inter connection Voltage:

240V – single phase or 415V

– three phase at the option

of the consumer

upto 4KW

415V – three phase -Above

4kW and upto 112kW.

At HT/EHT level - Above

112kW

2 meters: 1 for measuring

solar power generation and

other for import/export

measurement.

Solar generation meter is

optional for the eligible

consumers

For installations size of less

than or equal to 20 kW, the

solar check meters would be

optional.

injected into the licensee’s grid

shall be capped commercially

at 90% of the electricity

consumption by the eligible

consumer at the end of a

settlement period. Excess

treated as lapsed.

If solar power < electricity

consumption, consumer pays

for balance electricity; Solar

power > electricity

consumption, carry forward

excess power to next billing

cycle for 12 months (from July-

August).

Tamilnadu

State wise net metering policies in India

Eligible consumers and

interconnection Voltage Meters Commercial arrangements/ benefit

Either owned by them or by any third party.

Interconnection Voltage

240 V(single phase) for 5 kW

415V(three phase) from 5KW to

upto100 kVA 100kVA

11 kV upto 3000 kVA

22kV maximum upto 6000 kVA

33 kV maximum upto 12000kVA

66 kV maximum upto 20000kVA

110 maximum upto 40000kVA

220 kV >40000 kVA

The solar meter and net meter shall be compatible with meter reading instrument (MRI) or with wireless equipment for recording meter readings: Check meter shall be installed for the solar energy system having capacity more than 20kW

Time of use (TOU) concept. If solar power < electricity consumption, consumer pays for balance electricity First offset for Peak period then off peak.

Solar power > electricity

consumption, excess electricity shall

be carried forward to the next

billing period as electricity credit

and shall be accounted and used to

settle the electricity consumed by

him in the future billing periods

Kerala

State wise net metering policies in India

Eligible consumers and

interconnection Voltage Meters

Commercial arrangements/

benefit

Installation of upto 3kW rooftop solar pv for single phase consumers in domestic sector. Interconnection Voltage 230V upto 3KW 3 Phase for >3KW

A single bi-directional meters shall be installed for export and import

Surplus energy injected by Solar

Roof Top/Small Solar PV generator

shall be considered for payment

by concerned APDISCOMs at

pooled cost as may be decided by

APERC for that year.

The payment of pooled cost will

be made effective for a period of

7 years from the date of

establishment of such SPV plant.

The settlement of registered

surplus energy will be carried out

on a half yearly basis.

Andhra Pradesh

Eligible consumers and

interconnection Voltage Meters Commercial arrangements/ benefit

Institutional consumers like government departments, academic institutions, etc. The system size not less than 5 kW, Connectivity is allowed at Low Voltage or Medium Voltage, or 6 KV or 11 KV, of the distribution system of the licensee.

2 meters: 1 for measuring solar power generation and other for import/export

measurement. Solar generation meter is optional for the eligible

consumers

Solar injection is permitted only up-to

90% of the annual electricity

consumption, and the net energy

supplied by the utility would be billed

as per existing slab tariffs.

West Bengal

State wise net metering policies in India

Eligible consumers and

interconnection Voltage Meters

Commercial arrangements/

benefit

The Roof Top Grid

connected solar KWp level

projects of 5 KWp to 100

KWp will be allowed

connecting at 415 V, 3

phase, 11 KV level of

distribution system of the

licensee in such a manner

that the maximum energy

injection will not be more

than 70% of the

consumption from the

distribution licensee‘s

source by the Solar Roof

Top consumer.

2 meters: 1 for measuring solar power generation and other for import/export measurement. Solar generation meter is optional for the eligible consumers

Roof Top Grid connected solar

power quantum fed to the

Grid will be eligible for a Tariff

of Rs 3.40 per KWh along with

Net Metering facility. If any

incentives available from

Ministry of New and

Renewable Energy

Government of India, it will be

passed on to the Developer.

Karnataka State wise net metering policies in India

Eligible consumers and

interconnection Voltage Meters

Commercial arrangements/

benefit

All the consumers of the State

Distribution licensee will be

eligible with project capacity

ranging from minimum 1 KWp

upto 1MWp (AC side) with/

without battery back-up

support.

Interconnection Voltage

Single Phase LT 230 V upto

7 KW.

Three Phase LT 400 V More

than 7KW & up to 25 KW.

Three Phase LT 400 V more

than 25 KW & up to 100 KW.

Three Phase

HT (11 KV) More than 100 KW

Third party is allowed

Single Phase 10-60A,

whole current Class-I.

3 Phase 10-60 A, whole

current Class-I.

LT AC 3-Phase 4-Wires CT

operated static DLMS

compliant energy meter

Class- 0.5s or better

HT Meter, DLMS Compliant

& AMR Compatible, Class-

0.5s or better.

The utility meter (Net-

meter) has to be bi-

directional meter to

register both import grid

electricity amount as well

as export solar electricity

amount.

The maximum capacity of the

Roof Top Solar PV system, as

mentioned on AC side at the

output of inverter based on rated

inverter capacity, shall not be

more than 80% of the Sanctioned

Connected Load/Contract

Demand (in KVA converted to KW

at normative Power Factor of

0.90) of the consumer and the

minimum capacity shall not be

less than 1 KW

Punjab’s commercial and

industrial tariff range between 6.5

to 7.50 Rs/unit, whereas the tariff

provided for Solar PV is 7.72

Rs/unit.

Punjab State wise net metering policies in India