Welcome to our tri-monthly edition of the Energy Newsletter comprising energy updates from June to August 2024. From policy shifts to court decisions, we have got all the news you need to stay ahead in the energy law landscape. Dive in to stay updated on the latest developments in India’s vibrant energy sector.
CENTRAL REGULATORY UPDATES
- New Tariff Regulations for Renewable Energy by Central Electricity Regulatory Commission (CERC)
CERC vide notification dated July 16, 2024, notified CERC (Terms and Conditions for Tariff Determination from Renewable Energy Sources) Regulations, 2024. The said regulations have come into force on July 01, 2024, and shall remain in effect till March 31, 2027. The regulations shall apply to cases where the tariff, for a grid-connected generating station or a unit thereof commissioned during the aforesaid period and based on renewable energy sources is to be determined by CERC.
- CERC notifies Second Amendment to Connectivity and General Network Access Regulations
CERC vide notification dated July 01, 2024, notified CERC (Connectivity and General Network Access to the Inter-State Transmission System) (Second Amendment) Regulations, 2024 with effect from July 15, 2024. The regulations among others introduced Renewable Energy Implementing Agency.
- CERC notifies Fees and Charges Regulations for Regional Load Despatch Centre
CERC vide notification dated August 01, 2024, notified CERC (Fees and Charges of Regional Load Despatch Centre and other related matters) Regulations, 2024. The regulations shall be applicable during the control period from April 01, 2024 to March 31, 2029. The regulations shall be applicable for the determination of fees and charges to be collected by Regional Load Despatch Centres from the generating companies, distribution licensees, bulk consumers, inter-State transmission licensees, buyers, sellers, inter-State trading licensees, Settlement Nodal Agency and any other users.
- CERC published Draft Third Amendment to Connectivity and General Network Access Regulations
CERC vide notification dated July 31, 2024, published draft CERC (Connectivity and General Network Access to the Inter-State Transmission System) (Third Amendment) Regulations, 2024. The draft regulations among others, introduced Regulation 4.4 which provides for grant of connectivity to renewable energy generating station seeking to get connected to transmission network of Bhakra Beas Management Board and Regulation 11C which provides for reallocation of the terminal bay(s) falling vacant due to the surrender or revocation of the connectivity granted to another entity.
- CERC notifies Deviation Settlement Mechanism and Related Matters, Regulations
CERC vide notification dated August 21, 2024, notified CERC (Deviation Settlement Mechanism and Related Matters) Regulations, 2024. The regulations seek to ensure, through a commercial mechanism, that grid users do not deviate from and adhere to their schedule of drawl and injection of electricity in the interest of security and stability of the grid. The regulation shall be effective from September 16, 2024.
- Draft Amendments to the Indian Electricity Grid Code by CERC
CERC vide notification dated June 12, 2024, introduced draft CERC (Indian Electricity Grid Code) (First Amendment) Regulations, 2024. Key amendments include extension provisions for the injection of infirm power for Renewable Energy Generating Stations and Energy Storage Systems. Infirm power means the electricity injected into the grid prior to the date of commercial operation of a unit of the generating station.
- CERC Published Amendment to Terms and Conditions of Tariff
CERC published draft CERC (Terms and Conditions of Tariff) (First Amendment) Regulations, 2024. The regulations among others, have introduced the definition of Bank Rate, and proposed amendment to regulation 51 which provides for Adjustment on account of Shortfall of Overburden Removal.
- Central Electricity Authority (CEA) Published a Draft Amendment to the Transmission Planning Criteria Manual
CEA on July 23, 2024, published draft Amendment-I to the CEA (Manual on Transmission Planning Criteria), 2023. The draft introduced Chapter 7, which provides for the procedure for planning of electric power transmission system.
- CEA Published Draft Cyber Security in Power Sector Regulations, 2024
CEA on August 19, 2024, published draft CEA (Cyber Security in Power Sector) Regulations, 2024. The object of the regulations is to establish measures to ensure robust cyber security in India’s power sector. These regulations mandate the protection of critical assets, cyber resilience, and coordinated responses to cyber threats within the power infrastructure.
- Ministry of Power (MoP) Issues New Right of Way (RoW) Compensation Guidelines for Transmission Lines
MoP has released guidelines to streamline RoW compensation for transmission lines of 66 kV and above, excluding sub-transmission and distribution lines below 66 kV. Compensation is determined based on land value, with 200% for tower base areas and 30% for RoW corridors. The guidelines also outline the procedures for compensation determination, payment, and landowner identification, promoting efficient transmission line construction and completion. States may adopt or modify these guidelines as needed.
- Draft Guidelines for Electric Vehicle (EV) Charging Infrastructure Released
MoP has issued draft guidelines for EV charging infrastructure to accelerate EV adoption and create a robust charging ecosystem. The guidelines, applicable to various settings, outline timelines for electricity connections, tariffs, safety requirements, and infrastructure standards. Key provisions include financial assistance for setting up charging stations, minimum infrastructure requirements, and the involvement of the Bureau of Energy Efficiency (BEE) as the Central Nodal Agency. The ministry has invited stakeholder comments before finalizing the guidelines.
- Streamlining EV Charging: BEE Drafts Single Window System for Electricity Connections
BEE on June 10, 2024, published a draft Standard Operating Procedure for a single window system to expedite the grant of electricity connections by distribution companies to EV charge point operators with minimum documentation.
- BEE Issues Compliance Mechanism Procedures under Carbon Credit Trading Scheme, 2023
BEE on July 22, 2024, published Detailed Procedure for Compliance Mechanism under CCTS. Under the Carbon Credit Trading Scheme, 2023, compliance mechanism is defined as a mechanism, whereby the obligated entities shall comply with the greenhouse gas emission norms as may be notified by the Ministry of Environment, Forest and Climate Change.
- BEE Releases Accreditation Procedure for Carbon Verification Agencies
BEE on July 22, 2024, published Accreditation Procedure and Eligibility Criteria for Accredited Carbon Verification Agency. The document provides for- the minimum eligibility requirements that any agency shall fulfil to get accreditation to perform activities as an Accredited Carbon Verifier Agency and procedure for accreditation of any eligible any agency as an Accredited Carbon Verifier Agency to undertake validation and/or verification activity under Indian Carbon Market as specified by the BEE from time to time.
- Union Budget 2024-25: Key Measures for the Power Sector
The Union Budget 2024-25 introduced several measures for the power sector, including the release of an “Energy Transition Pathways” policy, promotion of pumped storage projects, and a shift in industrial targets from energy efficiency to emission targets. Custom duties on solar glass and tinned copper will no longer be exempt. The PM-Surya Ghar: Muft Bijli Yojana has been allocated ₹62.50 billion for 10 million rooftop solar installations. Budget allocations for the Ministries of Power and New and Renewable Energy are set at ₹205.02 billion and ₹191 billion, respectively.
- Operational Guidelines for Model Solar Village under PM-Surya Ghar: Muft Bijli Yojana
The government has issued guidelines for implementing the ‘Model Solar Village’ component of the PM-Surya Ghar: Muft Bijli Yojana. The initiative aims to create one model solar village per district, promoting solar energy and self-reliance in energy needs. A financial outlay of ₹800 crore has been allocated, providing ₹1 crore per selected village through a competitive process. Villages will be assessed based on their installed renewable energy capacity. The scheme is part of a larger effort to boost solar rooftop adoption and will run until 2026-27 with an overall budget of ₹75,021 crore.
- MNRE Guidelines for Green Hydrogen Production Incentives
The Ministry of New and Renewable Energy (MNRE) has released guidelines for disbursing incentives for producing up to 450,000 metric tonnes (MT) of green hydrogen annually under the SIGHT program. Incentives will be provided over three years, starting at ₹50 per kg and decreasing by ₹10 per kg each year. The Solar Energy Corporation of India (SECI) will oversee the bidding process. The program includes two auction categories: technology-agnostic pathways (410,000 MT) and biomass-based pathways (40,000 MT), with specific capacity limits per bidder.
- MNRE Launches Portal for Domestic Content Requirement (DCR) Verification of Solar PV Modules
MNRE has launched an online portal to verify DCR compliance for domestically manufactured solar PV cells and modules. The portal will be the primary tool for verifying DCR in solar projects under MNRE programs. Manufacturers listed in the Approved List of Models and Manufacturers must register their facilities and enter data into the portal. Non-compliance may result in MNRE taking corrective actions.
- Ministry of Heavy Industries Extends and Expands Electric Mobility Promotion Scheme 2024
The Ministry of Heavy Industries has extended the Electric Mobility Promotion Scheme 2024 (EMPS 2024) until September 30, 2024, and increased its budget from ₹5 billion to ₹7.78 billion. The scheme aims to support 560,789 electric vehicles, including 500,080 electric two-wheelers and 60,709 electric three-wheelers, with incentives available only for EVs with advanced batteries.
- Central Government issues Guidelines for Green Hydrogen Testing Facilities
Central Government has issued guidelines under the National Green Hydrogen Mission to fund testing facilities, infrastructure, and institutional support for developing standards and regulatory frameworks. With a budget of ₹200 crores until FY 2025-26, the scheme will address gaps in testing facilities for Green Hydrogen and its derivatives. The National Institute of Solar Energy (NISE) will implement the scheme, aiming to ensure quality, safety, and sustainability in Green Hydrogen production.
- New Safety Guidelines for EV by the Bureau of Indian Standards (BIS)
BIS has issued two new guidelines, dated June 22, 2024; IS 18590: 2024 and IS 18606: 2024, to enhance the safety of electric vehicles in categories L (two-wheelers), M (four-wheelers), and N (goods trucks). These regulations focus on critical components like the powertrain and battery performance. Additionally, BIS introduced IS 18294: 2023, setting safety standards for e-rickshaws and e-karts, covering various aspects from construction to functionality to ensure driver and passenger safety.
- Government Sanctions Rs 74.53 Billion for Offshore Wind Energy Projects
The government has approved a Rs 74.53 billion Viability Gap Funding (VGF) scheme for offshore wind energy, allocating Rs 68.53 billion for installing 1,000 MW capacity off Gujarat and Tamil Nadu coasts. An additional Rs 6 billion will enhance port infrastructure for project logistics. Private developers will implement projects via transparent bidding, while Power Grid Corporation will build power infrastructure. MNRE will oversee implementation in collaboration with other ministries to support offshore wind development, aiming to generate 3.72 billion units annually and reduce CO2 emissions by 2.98 million tonnes per year over 25 years, while also fostering a robust offshore wind ecosystem.
- SOPs for Sale of CBG-based Fertilizers Issued
The Ministry of Chemicals and Fertilizers has introduced standard operating procedures (SOPs) for stock verification and quality checking of bulk/packaged fermented organic manure (FOM), liquid FOM (LFOM), and phosphate rich organic manure (PROM) under the Market Development Assistance scheme. These SOPs streamline sales processes, mandating state agriculture departments to issue B1 (quantity) and B2 (quality) certificates every two weeks based on batch-wise inspections at CBG units. Units must notify authorities before selling, with LFOM sales contingent on storage capacity, aligning production with gas output from CBG units to ensure compliance.
- SEZs Authorized for Solar Installations
The Ministry of Commerce (MoC) has approved SEZ developers and units within SEZs to install solar systems for internal use, responding to requests from Export Promotion Council for EOUs and SEZs (EPCES) and SEZ stakeholders. Solar equipment installations, including panels, will be treated as capital goods, eligible for duty benefits under Section 26 of the SEZ Act, provided the generated power remains within SEZ boundaries. MoC has directed SEZ development commissioners to evaluate requests for establishing non-conventional power plants as infrastructure, with fiscal benefits not extended to O&M costs.
- Pipeline Infrastructure for CBG Injection in CGD Networks
Ministry of Petroleum and Natural Gas (MoPNG) has released guidelines for DPI to facilitate the injection of compressed biogas (CBG) into city gas distribution (CGD) networks, allocating Rs 9.945 billion for FY 2024-25 to 2025-26. The initiative aims to enhance CBG transport efficiency via pipelines, ensuring optimal CBG utilization and reducing carbon emissions. Financial assistance covers up to 50% of project costs for laying steel/Medium density polyethylene (MDPE) pipelines up to 75 km, depending on materials used and location, with detailed procedures outlined for application, approval, and scheme monitoring.
- Major Reforms in Draft Mining Plan Guidelines 2024 by the Ministry of Coal
The Ministry of Coal has revised the framework for preparing Mining Plans and issuing draft guidelines for consultation. These guidelines aim to regulate and advance India’s coal mining sector, providing a strategic blueprint for effective planning, execution, and monitoring while maintaining high environmental, social, and safety standards. The primary goal is to optimize coal resource extraction through sustainable practices, minimizing waste, enhancing efficiency, and integrating advanced technology for environmental and economic sustainability.
- Ministry of Coal’s Action Plan for 2024-25
The Ministry of Coal has released its action plan for the fiscal year 2024-25, outlining key initiatives to enhance coal production and management. The plan focuses on increasing coal output, modernizing mining practices, and improving efficiency across the sector. It includes specific targets for new mine development, infrastructure upgrades, and environmental compliance measures. The action plan aims to ensure a stable coal supply, support energy security, and promote sustainable practices within the coal industry.
- Extension and Budget Increase for Electric Mobility Promotion Scheme 2024
The Ministry of Heavy Industries has extended the Electric Mobility Promotion Scheme 2024 until September 30, 2024, with the total budget increased from ₹5 billion to ₹7.78 billion. The scheme aims to support 560,789 electric vehicles, including 500,080 electric two-wheelers and 60,709 electric three-wheelers. Incentives will only be provided for EVs with advanced batteries to promote advanced technologies.
- Revised Guidelines for Cross-Border Electricity Trade
MoP has amended the 2018 guidelines for cross-border electricity trade, allowing exports from coal, gas, renewable, and hydropower plants to neighboring countries, with specific conditions for coal- and gas-based stations. Indian generating stations that exclusively supply electricity to neighboring countries can construct dedicated transmission lines and connect to the Indian grid if necessary. These revisions aim to facilitate energy trade, enhance grid infrastructure, and promote regional energy cooperation in South Asia, amidst growing cross-border electricity exchanges and ongoing interconnection discussions.
- Model Solar Village Scheme under PM-Surya Ghar: Muft Bijli Yojana
MNRE has introduced the ‘Model Solar Village’ component under the PM-Surya Ghar: Muft Bijli Yojana, aiming to create one solar-powered village per district across India. With a budget of ₹800 crore, the scheme provides ₹1 crore per selected village based on a competitive assessment of their renewable energy capacity. The winning village in each district will receive central financial assistance to transition into a solar-powered community. The initiative is part of a broader scheme to promote solar energy adoption and self-reliance in rural areas, with an overall outlay of ₹75,021 crore until FY 2026-27.
STATE-WISE REGULATORY UPDATES
- Madhya Pradesh Electricity Regulatory Commission (MPERC) Notified Guidelines for Generation Tariff Determination
MPERC on August 02, 2024, notified MPERC (Terms and Conditions for Tariff determination of energy from Renewable Energy Sources) (Revision- I) Regulations, 2024. The said regulations shall remain in force up to March 31, 2027. The regulations shall apply in all cases of determination of tariff for a generating station or a unit thereof (other than generating stations based on renewable sources of energy) for the supply of electricity to a distribution licensee but shall not apply to generating stations whose tariff has been discovered through tariff based competitive bidding in accordance with the guidelines issued by the Ministry of Power (MoP).
- MPERC Notified Generation Tariff Determination Regulations
MPERC on July 05, 2024, notified MPERC (Terms and Conditions for determination of Generation Tariff) Regulations, 2024. The regulations shall apply in all cases of determination of tariff for a generating station or a unit thereof (other than generating stations based on renewable sources of energy) for supply of electricity to a distribution Licensee, but shall not apply to generating stations whose tariff has been discovered through tariff based competitive bidding in accordance with the guidelines issued by the MoP.
- MPERC Notified Revised Transmission Tariff Regulations
MPERC on June 28, 2024, notified MPERC (Terms and Conditions for determination of Transmission Tariff) (Revision – V), Regulations, 2024. The said regulations have come into force from April 01, 2024, and remain in force upto March 31, 2029. The regulations shall apply in all cases of determination of intra-state transmission tariff to be charged by the transmission licensee to distribution licensees/ open access customers, to whom the capacity of the transmission system has been allotted under MPERC (Terms & Conditions of Intra-State Open Access in MP) Regulations, 2005, as amended from time to time. However, the tariff of all new intra-state transmission projects costing above a threshold limit of Rs. 400 crores shall be determined through a transparent bidding process in accordance with the guidelines issued by the MoP.
- Karnataka Electricity Regulatory Commission (KERC) Notified New Regulations for Merit Order Dispatch and Power Purchase Cost Optimization
KERC vide notification dated June 26, 2024, notified KERC (Merit Order Despatch and Optimization of Power Purchase Cost) Regulations, 2024. The said regulations shall be applicable to the state load dispatch center, all the distribution licensees, and generating companies including captive generating plants supplying power to the distribution licensees. Merit Order Despatch is defined as the order of ranking of available electricity generation in ascending order from least energy charge to highest energy charge to be used for deciding despatch instructions to minimize the overall cost of generation of electricity.
- KERC Notified New Multi Year Tariff Regulations for Transmission, Distribution, and Retail Supply
KERC vide notification dated July 04, 2024, notified KERC (Multi Year Transmission, Distribution and Retail Supply Tariff) Regulations, 2024. KERC shall determine the aggregate revenue requirement, tariff and charges, including terms and conditions thereof, in accordance with the said regulations.
- KERC Notified Peer to Peer Solar Energy Transaction Regulations
KERC vide notification dated August 21, 2024, notified KERC (Implementation of Peer to Peer Solar Energy Transaction) Regulations, 2024. The regulations aim to establish a framework for peer-to-peer energy trading, allowing prosumers to sell surplus solar energy directly to consumers through the approved platform.
- Delhi Electricity Regulatory Commission (DERC) Issues Guidelines for Secure Peer-to-Peer Electricity Transaction
DERC on June 24, 2024, released DERC (Peer to Peer Energy Transaction) Guidelines, 2024, enabling prosumers and consumers with up to 200 kW sanctioned load to engage in secure peer-to-peer (P2P) electricity trading. Participants can choose between virtual net metering, group net metering, or P2P transactions annually, with renewable energy system capacity capped at 500% of their sanctioned load. Time-of-day compliant meters are mandatory, with transactions exempt from certain charges until March 31, 2027, and contributing to renewable purchase obligation compliance for non-obligated entities under DERC regulations.
- DERC Notified Amendments to Net Metering Regulations for Renewable Energy
DERC vide notification dated August 02, 2024, notified DERC (Net Metering for Renewable Energy) (First Amendment) Regulations, 2024. New provisos are added in sub regulation 3 of regulation 5 (General Conditions), which provides that Renewable Energy Systems up to 10 kW are exempt from technical feasibility studies and related load enhancements, which will be managed by the Distribution Licensee. Infrastructure upgrades for these systems are allowed in the Aggregate Revenue Requirement. Renewable Energy Systems above 10 kW require a feasibility study within 15 days of receipt of application complete in all aspects. The Regulations shall come into effect from the date their publication in the official gazette.
- DERC Published Draft Sixth Amendment to Supply Code and Performance Standards Regulations
DERC vide notification dated July 05, 2024, published draft DERC (Supply Code and Performance Standards) (Sixth Amendment) Regulations 2024. The draft regulations, among others, have added sub regulation 7 (power to disconnect supply of electricity in certain cases) and 8 (obtaining fire clearance certificate) in regulation 10 which provides for new and existing connections. Suggestions/comments /objections on the draft regulations were invited till August 05, 2024.
- DERC Notified Compensation Regulations for Victims of Electrical Accidents
DERC vide notification dated July 26, 2024, notified DERC (Compensation to Victims of Electrical Accidents) Regulations, 2024. These Regulations shall be applicable to all Generating Companies as well as transmission and distribution licensees in their respective licensed areas in the National Capital Territory of Delhi.
- DERC Published Regulations on Renewable Energy and Performance Standards
DERC vide notification dated July 16, 2024, published DERC (Supply Code and Performance Standards) (Fifth Amendment) Regulations, 2024.One of the major amendments in the regulation is the amendment to regulation 11(4)(i) of the DERC (Supply Code and Performance Standards) Regulations, 2017, which talks about the Energization of connection. It specifies longer time frames for providing new or modified electrical connections.
- DERC Published Draft Green Energy Open Access Regulations
DERC vide notification dated June 07, 2024, published draft DERC (Terms and Conditions for Green Energy Open Access) Regulations, 2024. Comments on the draft regulations were invited till July 02, 2024. The regulations aim to ensure non-discriminatory open access for renewable energy within state transmission and distribution systems, including inter-state transmission, and to establish the methodology for determining associated open access and banking charges.
- New RPO and REC Framework Regulations by the DERC
DERC has issued the draft DERC (Renewable Purchase Obligation and Renewable Energy Certificate Framework Implementation) Regulations, 2024, applicable to all obligated entities within Delhi, including distribution licensees, open access consumers, and captive users. The regulations outline various methods to fulfill RPO, such as open access procurement, requisition from distribution licensees, captive power plants, and purchasing RECs. The draft sets an RPO target of 29.91% for 2024-25 and 30.01% for 2025-26, with a penalty of Rs 0.10 per kWh for non-compliance. Comments on the draft regulations were invited till July 02, 2024.
- DERC Issues Draft Regulations for Threshold Limit for the Development of Intra-State Transmission Projects under Tariff Based Competitive Bidding
DERC vide notification dated August 29, 2024, published draft DERC (Threshold Limit for the Development of Intra-State Transmission Projects under Tariff Based Competitive Bidding) Regulations, 2024. The regulations sets a threshold of ₹150 crore for intra-state transmission projects in Delhi to be developed via Tariff Based Competitive Bidding. Projects exceeding this limit must follow competitive bidding guidelines unless specific exemptions are granted by DERC.
- Draft Tamil Nadu Electricity Regulatory Commission (TNERC) (Terms and Conditions for Green Energy Open Access) Regulations, 2024
TNERC vide notification dated June 13, 2024, published draft Tamil Nadu Electricity Regulatory Commission (Terms and Conditions for Green Energy Open Access) Regulations, 2024, aimed at ensuring equitable access to green energy via intra-state and inter-state transmission and distribution systems. It outlines charging mechanisms for transmission, wheeling, and various surcharges, mandates stringent metering standards, and prioritizes renewable energy curtailment protocols based on consumer duration categories. Metering requirements include installation of main and check meters at designated points, ensuring compliance with state and CEA guidelines.
- Draft Regulations on Captive Generating Projects (CGP) Verification
TNERC vide notification dated June 24, 2024, published draft TNERC (Verification Of Captive Status Of Generating Plants / Consumers) Regulations, 2024, to enhance verification processes for captive generating projects (CGP) in Tamil Nadu. The regulations mandate annual verification by distribution licensees to ensure compliance with ownership and consumption criteria. CGPs must maintain a minimum 26% ownership and ensure that captive users collectively consume at least 51% of generated electricity annually. Detailed reporting requirements and the need for security deposits are also outlined to bolster transparency and compliance.
- Maharashtra Electricity Regulatory Commission (MERC) Notifies Framework for Resource Adequacy Regulations
MERC vide notification dated June 21, 2024, notified MERC (Framework for Resource Adequacy) Regulations, 2024. The objective of these Regulations is to enable the implementation of Resource Adequacy framework by outlining a mechanism for planning of generation and transmission resources for reliably meeting the projected demand in compliance with specified reliability standards for serving the load with an optimum generation mix.
- MERC Notified First Amendment to Forecasting, Scheduling and Deviation Settlement Regulations for Solar and Wind Generation
MERC vide notification dated July 3, 2024, notified MERC (Forecasting, Scheduling and Deviation Settlement for Solar and Wind Generation) (First Amendment) Regulations, 2024. The amendment regulations, among others, have introduced Regulation 5.20A which mandates that after the Trial Mode, the State Load Despatch Centre must re-submit an updated Detailed Procedure with revised plans for data telemetry and forecast submission. This includes stakeholder consultation with the Maharashtra State Power Committee before MERC approval within 15 days.
- Uttar Pradesh Electricity Regulatory Commission (UPERC) Publishes Draft Framework for Resource Adequacy
UPERC vide public notice dated July 03, 2024, published UPERC (Framework for Resource Adequacy) Regulations, 2024. The draft regulations once notified shall apply to the generating companies, distribution licensees, State Load Despatch Centre, State Transmission Utility, and other grid-connected entities and stakeholders within Uttar Pradesh. Comments on the draft regulations were invited till July 25, 2024.
- UPERC Releases Draft Amendment to Open Access Regulations
UPERC vide public notice dated July 29, 2024 published draft UPERC (Terms and Conditions for Open Access) (First Amendment) Regulations, 2024. The draft regulations, among others, provide for Renewable Energy, Green Energy Open Access, Lead Green Energy Open Access Consumers. It has also suggested changes in the tenure for Short term open access, Medium term open access and Long term open access. Comments on the draft regulations may be sent by the stakeholders on or before August 29, 2024.
- Arunachal Pradesh State Electricity Regulatory Commission (APSERC) Notified Regulations for Grant of Distribution Licence
APSERC vide notification dated July 3, 2024, notified APSERC (Procedure, Terms and Conditions for grant of Distribution Licence and other related matters) Regulations, 2024. Any person intending to apply for licence shall require to fulfill the Capital Adequacy, credit worthiness and other conditions laid out by Ministry of Power, Government of India.
- APSERC Notified Demand Side Management Regulations
APSERC vide notification dated July 3, 2024, notified APSERC (Demand Side Management) Regulations, 2024. Demand Side Management involves actions by a Distribution Licensee to modify electricity usage at the consumer level. This can include increasing or decreasing demand, shifting usage to off-peak times, accommodating more renewable energy, and managing intermittent loads, all aimed at reducing the licensee’s costs.
- Odisha Electricity Regulatory Commission (OERC) published Procurement of Energy from Renewable Sources and its Compliance Regulations
OERC published draft OERC (Procurement of Energy from Renewable Sources and its Compliance) Regulations, 2024. The regulations aim to promote the procurement of energy from renewable sources by Distribution Licensee (or any entity procuring power on their behalf), conventional captive users and Open Access customers within the State of Odisha and compliance thereof.
- Gujarat Electricity Regulatory Commission (GERC) Notified Multi Year Tariff Regulations
GERC on dated August 06, 2024, notified GERC (Multi Year Tariff) Regulations, 2024. The regulations shall be applicable to all existing and future Generation Companies supplying power, Transmission Licensees, Distribution Licensees, State Load Despatch Centre, and their successors, if any, for determination of Aggregate Revenue Requirement, Tariff, and Fees and Charges of State Load Despatch Centre in all matters covered under the regulations from April 01, 2025 up to March 31, 2030, unless otherwise reviewed/extended.
- Tamil Nadu Repowering, Refurbishment and Life Extension Policy for Wind Power Projects
The Government of State of Tamil Nadu approved Tamil Nadu Repowering, Refurbishment and Life Extension Policy for Wind Power Projects- 2024. The Policy aims to promote optimum utilization of wind energy resources by providing a supportive framework to the wind energy generators for the repowering, refurbishment and life extension policy.
- Himachal Pradesh Electricity Regulatory Commission (HPERC) Publishes draft Green Energy Open Access and Banking Regulations
HPERC on dated August 02, 2024, published draft HPERC (Terms and Conditions for Green Energy Open Access and Banking) Regulations, 2024. The Regulations shall be applicable for allowing connectivity and Open Access to electricity generated from the Green/Renewable Energy Sources (including the energy generated from non-fossil based waste to energy plant) for use of Intra-State Transmission System or distribution system of licensee/s in the State or both, including when such Intra-State Transmission and/or distribution system/s, is used in conjunction with the Inter-State Transmission system.
- Draft Guidelines for Tariff-Based Bidding for Pumped Storage Projects
The Ministry of Power has released draft guidelines for tariff-based competitive bidding to procure stored energy from Pumped Storage Projects (PSPs). The procurement can be from projects developed on sites identified by the procurer or the bidder, with different terms and models for each. The guidelines outline eligibility criteria, financial requirements, contract terms, and provisions for transmission, compensation, and force majeure. Stakeholders have until September 6, 2024, to submit comments and suggestions.
JUDICIAL UPDATES
- MERC Recognizes GST Rate Hike as “Change-in-Law” Event for TPSL
MERC, vide its order in T.P. Saurya Limited (“TPSL”) v. Maharashtra Electricity Distribution Co. Ltd (“MSEDCL”), dated June 20, 2024, held that an increase in the rate of Goods and Services Tax (GST) shall constitute a “change-in-law” event, as the “change-in-law” clause contained in the power purchase agreement, specifically covers any statutory change in tax structure occurring after the last date of bid submission, which in this case was June 23, 2021. The GST rate change was notified after the bid submission date, thereby qualifying as a “change-in-law” event.
- MERC Orders Refund of Excess Charges to ICC Reality
MERC, vide its order in ICC Reality India Private Limited (“ICC”) and others v. MSEDCL, dated June 18, 2024, held that ICC and others are entitled to a refund of excess wheeling and transmission charges collected from them, along with applicable interest, as the levy of such charges always has to be based on the actual energy drawl at consumption point, i.e., units adjusted against open access, and not on the basis of energy transmitted through the grid from the generator to the consumer.
- Appellate Tribunal for Electricity (APTEL) Affirms Inclusion of Transportation Costs in Imported Coal Pricing
The Hon’ble APTEL in its judgement, Adani Power Maharashtra Limited (“Adani”) v. MERC & MSEDCL, dated July 09, 2024, held that the landed cost of imported coal, would include the normative land transportation costs of such coal, from the nearest sea port, up to the power plant of Adani. It was further observed that when MSEDCL is willing to pay the cost of imported coal, which is notionally deemed to have been utilized at the Adani’s power plant, it should not have a problem paying the notional transportation cost of such coal from the nearest seaport to Adani’s power plant.
- APTEL Rules on Billing Based on Actual Power Drawn in Wind Power Case
In a significant decision, Orange Bercha Wind Power Private Limited v. MPERC & Ors., dated July 09, 2024, APTEL ruled that billing should not be based on assumptions, but should be done on the basis of actual power drawn, and set aside the order of MPERC, which had allowed billing to be done retrospectively at a temporary connection rate.
- APTEL affirms that imposition of Safeguard Duty (SGD) is a “Change in Law” Event
The Hon’ble APTEL, in its judgement, Fortum Solar Plus Private Limited (“Fortum”) v. RERC & 2 others, dated August 14, 2024, ruled that imposition of Safeguard Duty (SGD) will be a “Change in Law” event, and enabled Fortum to claim relief in accordance with the provisions under their respective Power Purchase Agreements.
DISCLAIMER
The content provided in this newsletter is intended for general awareness and should not be considered as legal advice. Readers are advised to consult with a qualified legal professional regarding any specific issues mentioned herein. If you have any questions about any of these developments or would like to see something different next month, reach out to us at knowledge@sarthaklaw.com.
We will be back next month with another update. Thank you for reading!