Tamil Nadu Electricity Regulatory Commission (Power Procurement from new and Renewable Sources of Energy) Regulations, 2008
Published vide Notification No. TNERC/NCES Regn./16/1 dated. 8.2.2008
(a) "Act" means the Electricity Act, 2003 (Central Act of 36 of 2003)
(b) "Cogeneration" means a process, which simultaneously produces two or more forms of useful energy (including Electricity)
(c) "Commission" means the Tamil Nadu Electricity Regulatory Commission;
(d) "Government" means the Government of Tamil Nadu;
(e) "Firm Power" means injecting of at least 700 units in to the grid by the generator per hour per scheduled MW. [This calculation is based on a normative load factor of 70% (i.e. 1000 kWh 0215 W 70% Load Factor = 700 units per hour)];
(f) "Infirm Power" means the energy supplied that is not firm power, which is interruptible on a very short notice;
(a) in relation to wind energy projects and solar photovoltaic projects, inter connection point shall be line isolator on outgoing feeder on HV side of the pooling sub station;
(b) in relation to small hydro power, biomass power and non fossil fuel based cogeneration power projects and Solar Thermal Power Projects, the inter connection point shall be line isolator on outgoing feeder on HV side of generator transformer;
(f2) "Interface line" means the electric line between the interconnection point and the nearest point at which the electric line could technically be connected to the existing grid or distribution system;]
(g) "New and renewable sources" means the non-conventional, renewable electricity generating sources such as mini/micro hydel, wind, solar, biomass, biogases based cogeneration, urban/municipal waste, or other such sources as approved by the Government of India or Government of Tamil Nadu [or Commission] which are generally inexhaustible and can be replenished in a short period of time;Words or expressions occurring in these Regulations and not defined herein but defined in other Regulations published by the Commission or in the Act shall bear the same meanings respectively assigned to them in the Act / Regulations. 3. Promotion of new and renewable sources of energy. - (1) 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. (2) A maximum of 25% of conventional fuel only is permitted to be used out of the total fuel used in a year, for start-up, stabilization and extended operational days in a year by the bagasse/biomass based generating plants. (3) Evacuation facilities shall be provided by the State Transmission Utility (STU)/Distribution licensee as per the Commission's Intra State Open Access Regulations, 2005, Central Electricity Authority (Technical Standards for connectivity to the Grid) Regulations, 2007 and Tamil Nadu Electricity Grid Code. 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. [Provided that, in the case of sale of entire power to the distribution licensee by any new and renewable source based generator, the cost of interfacing lines up to the interconnection point shall have to be borne only by the STU/ distribution licensee. Provided further that in case where the new and renewable source based generator referred to in the first proviso who has entered into an ERA with the distribution licensee referred to therein for the sale of entire power to the said distribution licensee decides to use such power agreed to be sold to the said distribution licensee, for his captive use or for sale of such power to a third person or to a distribution licensee other than the distribution licensee referred to above before the expiry of the period referred to in such EPA, then he shall be bound to reimburse the [depreciated (Written down value) cost of interfacing lines] to the distribution licensee with whom he has executed such EPA, before the wheeling of power to his captive use or sale to third person or distribution licensee other than the distribution licensee with whom the said EPA has been executed by him.] (4) The Commission may consider appropriate banking mechanism for generation of power from a particular kind of renewable source depending upon the inherent characteristics of such source. [(5) The Commission may specify appropriate procedure for payment to the generators by the distribution licensee and payment to the distribution licensee by the captive / third party user.] 4. Determination of tariff. - (1) The Commission shall follow the process mentioned below for the determination of tariff for the power from new and renewable sources based generators, namely:
(a) initiating the process of fixing the tariff either suo motu or on an application filed by the distribution licensee or by the generator.
(b) inviting public response on the suo motu proceedings or on the application filed by the distribution licensee or by the generator.
(d) issuing general / specific tariff order for purchase of power from new and renewable sources based generators.(2) While deciding the tariff for power purchase by distribution licensee from new and renewable sources based generators, the Commission shall, as far as possible, be guided by the principles and methodologies specified by:
(a) Central Electricity Regulatory Commission
(b) National Electricity Policy
(c) Tariff Policy issued by the Government of India
(d) Rural Electrification Policy
(e) Forum of Regulators (FOR)
(f) Central and State Governments(3) The Commission shall, by a general or specific order, determine the tariff for the purchase of power from each kind of new and renewable sources based generators by the distribution licensee. In case of small hydro projects with a capacity of more than 5 MW but not exceeding 25 MW capacities, Commission decide the tariff on case to case basis. Provided where the tariff has been determined by following transparent process of bidding in accordance with the guidelines issued by the Central Government, as provided under section 63 of the Act, the Commission shall adopt such tariff. (4) While determining the tariff, the Commission may, to the extent possible consider to permit an allowance / disincentive based on technology, fuel, market risk, environmental benefits and social impact etc., of each type of new and renewable source. (5) While determining the tariff, the Commission shall adopt appropriate financial and operational parameters. (6) While determining the tariff the Commission may adopt [appropriate tariff methodology]. 5. Charges for adjustment of wheeled energy. - The Commission may levy appropriate charges for adjustment of wheeled energy based on the load factor, power factor, voltage, total consumption of electricity during any specified period or the time at which the supply is required or the geographical position of any area of generation/supply, the nature of supply and the purpose for which the supply is adjusted. 6. Agreement and Control period. - The tariff determined by the commission in the tariff order shall be applicable for the power purchase agreement period of twenty years. The control period [may ordinarily be two years]. When the Commission revisits the tariff and allied issues, the revision shall be applicable only to the generator of new and renewable energy sources commissioned after the date of such revised order. 7. Energy Purchase Agreement (EPA) and Energy Wheeling Agreement (EWA). - [The format of the Energy Purchase Agreement (EPA) and Energy Wheeling Agreement (EWA) shall be evolved by the Commission after discussion with the generators and the distribution licensee]. Before 10th of succeeding month, the licensee / generator shall furnish the list of [Energy Purchase Agreements] executed during the preceding month and pay applicable fees as stipulated in the Tamil Nadu Electricity Regulatory Commission's Fees and Fines Regulations, 2004. The distribution licensees/STU shall sign an Energy Wheeling Agreement taking cognizance of the energy wheeling principles elaborated in the general or special tariff order. 8. Issues related to captive use and third party sale. - While issuing the general or specific tariff order, the Commission may consider appropriate criteria/ procedure/parameters/charges for each type of new and renewable source, on the following issues, for sale of power to distribution licensee, captive use and third party sale of power by the new and renewable source generators.
(1) Applicable demand charges
(2) Applicable energy charges
(3) Grid availability charges
(4) Scheduling and system operation charges
(5) Transmission & wheeling charges and line losses
(6) Reactive power charges
(7) Adjustment of peak and off peak power
(8) Power factor incentive / disincentive
(9) Payment of security deposit by the captive/third party user
(10) Billing and payment to the generators by distribution licensee
(11) Applicable open access registration fee and open access agreement fee
(12) Any other related issues.9. Power to remove difficulties. - If any difficulty arises in giving effect to any of the provisions of these regulations, the Commission may, by general or special order, take action for removing the same consistent with the provisions of the Act. 10. Power to amend. - The Commission may, at any time add, modify, delete or amend any of the provisions of these Regulations.