M Thimma Reddy Peoples Monitoring Group on Electricity Regulation Jaipur 29112013 Statutory and Policy Provisions The Electricity Act 2003 National Electricity Policy 2005 National Tariff Policy 2006 ID: 1037115
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1. Solar Energy Policy in Andhra Pradesh (AP)M. Thimma ReddyPeople’s Monitoring Group on Electricity RegulationJaipur – 29/11/2013
2. Statutory and Policy ProvisionsThe Electricity Act, 2003National Electricity Policy, 2005National Tariff Policy, 2006Integrated Energy Planning, 2006National Action Plan on Climate Change, 2008
3. Jawaharlal Nehru National Solar MissionLaunched in November 2009To establish India as a global leader in solar energyTo focus on setting up an enabling environment for solar technology penetration in the country both at a centralized and decentralized levels.To create an enabling policy framework for deployment of 20,000 MW solar power by 2022
4. Jawaharlal Nehru National Solar MissionSegmentTarget Phase I (2010-2013)Target Phase II(2013-2017)Target Phase III(2017-2022)Solar Collectors7 million sq meters15 million sq meters20 million sq metersOff grid solar applications 200 MW1000 MW2000 MWUtility grid power including roof top1,000 – 2,000 MW4,000 – 10,000 MW20,000 MWRoad Map
5. Jawaharlal Nehru National Solar MissionKey driver – Renewable Power Purchase Obligation (RPPO) with a solar specific component RPPO may start with 0.25% in phase I and go up to 3% in 2022, complimented with solar specific Renewable Energy Certificate (REC)Bundle solar power with unallocated power from central generating stationsNTPC Vidyut Vyapara Nigam (NVVN) to be the nodal agencySoft refinance facility through IREDA with budgetary support
6. APERC - Solar RPPOO.P. No. 10 of 2010 dated 6th July, 2010A quantum of 0.25% out of 5% quantum of RPPO shall be purchased as Solar RPPOPower is to be sourced from bundled power from NVVN, and Roof Top and other Small Solar Power PlantsTariff for power from bundled power as per CERC regulated price, and from Roof Top Solar plants @ Rs. 5.50 per kWh with escalation factor of 3% per annum, applicable for 25 years
7. APERC - Renewable Energy CertificateRegulation 1 of 2012 dated: 21st March, 2012Compliance of RPPO by purchase of Renewable Energy or Renewable Energy Certificates 0.25% Solar RPPOSolar RECPooled cost of Rs.2.Default: Deposit in to separate fund amounts decided by the Commission which will be used for purchase of solar REC from Power ExchangePenalty as decided by the Commission
8. AP Policy ObjectivesTo promote solar power generationTo attract investment in solar power plantsTo promote investments in manufacturing facilitiesTo promote off-grid solar applicationsTo contribute to overall economic development by provision of electrical energy for various needsTo encourage decentralized, distributed generation system to reduce T&D losses
9. Phase 1 – Captive useG.O. Ms. No. 39 Dated 26-09-2012G.O. Ms. No. 44 Dated 16-11-2012
10. Phase 1 – Captive useCaptive use or sale of powerREC mechanismOpen accessBanking
11. Phase 1 – Captive useApplicable to plants commissioned by June 2014 & will be in force for seven years No wheeling and transmission chargesCross subsidy surcharge not applicableElectricity duty exemptionVAT RefundRefund of stamp duty and registration charges
12. Phase 1 – Captive useLand is the responsibility of the developerNREDCAP is the Nodal AgencyProject monitoring by “High Level Committee”High Level Committee to issue clarificationsThe Policy is applicable up to 2017Policy to be reviewed after two years
13. Phase 1 – Captive useG.O. Ms. No. 44 Dated 16-11-2012Developers to decide on utilizing incentivesInter-State Open Access clearance will be granted within 15 days of application
14. Phase 2 - BiddingG.O. Ms. No. 46 – Energy (RES) Department, Date:27-11-2012Procure 1000 MW of Solar PV through biddingAPTRANSCO is the nodal agency Solar Plants to connect to nearby electricity sub-stationsList of sub-stations was released Plants to be set up within 12 months of signing PPAPPA valid for20 years
15. Phase 3 - RooftopG.O. Ms. No.22 Energy (RES) Department, Dated 25-03-2013Rooftop SolarNet meteringSurplus power will be fed in to the gridSubsidy: 30% by the central government and 20% by the state governmentSale to the grid at pooled cost (Rs. 3.00 to Rs. 3.50 per unit) Monthly billing
16. Neglect of solar water heatersSimple technologyHelps to address morning peakIf 2,50,000 households install solar water heaters 270 MW can be saved5.23 lakh households consume more than 300 units per month13.6 lakh households consume more than 200 units per monthSolar water heater usage – India: 3.53 million square meters collection capacity China: 125 million square meters collection capacity
17. Progress – Phase 1Interest shown to set up 2,500 MWApplications received to set up 750 MWCapacity reported to be ready 300 MWCapacity connected to the grid 0 MWWant of clarity on policy issues and clearances
18. Progress – Phase 2184 bidders filed 331 bids with aggregate capacity of 1,780 MWNo clarity on how to select successful biddersDelay at arriving at benchmark pricePrice quoted in the range of Rs. 6.49 to Rs. 15.40 per unit.The Ministers Committee chose Rs. 6.49 per unit as the priceBidders were given one month time to accept the priceLater, even those who did not participate in the bidding were allowed if they accept the price35 bidders came forward to set up plants with a capacity of 418 MW
19. Status of Solar Energy in APScheme Sanctioned (MW)Executed (MW)RTSS10.59.5Batch I - PV15.012.0 Solar Thermal50.0Under ExecutionBatch II20.0Under ExecutionTotal95.521.5
20. Procurement of Solar Power in APParticulars2011-122012-132013-14Solar (MU)2.434.10569.33Solar (Rs/U)5.435.435.50Total NCE (MU)1598.631575.003473.24Total NCE (Rs/U)3.223.244.44
21. Issues in AP PolicyLack of comprehensive, integrated approachLack of clarity
22. Issues in AP PolicyLack of Political and Administrative leadershipPresent power crisis might have forced the decision on the policyLack of relation between objectives and proposed action
23. Role & Responsibility/Institutional capacityEnergy DepartmentNew and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP)Electricity Distribution Companies (DISCOMs)Andhra Pradesh Electricity Regulatory Commission (APERC)
24. CoordinationPolicy formulation – Time taken in coming out with the policy AmendmentCM’s announcement of bidding for 1000 MW solar plantsImplementation – Nodal agency and Utilities
25. Stakeholder engagementGroup of Ministers on Renewable EnergyInvolvement of DevelopersLack of consumer or Civil Society Organisations’ involvement
26. TransparencyLack of awarenessDoubts or concerns on the policy
27. Finance for implementationUnder funded nodal agency - NREDCAPNeed capacity building of NREDCAP and DISCOMs
28. Finance for investmentPolicy has implicationsREC vs PPAs through biddingFacilitation/Providing comfort particularly for small investorsInitiatives to tap resources including external/multilateral sources
29. Compliance & EnforcementAPERC’s responsibility APERC’s institutional capacityProactive steps
30. Monitoring, reporting and revisionProvision for High Level CommitteeAmendment to GO within two months
31. ConclusionLeadershipCoordinationTransparency
32. Thank you