Solar Opportunity in Haryana

Overview of Solar Open Access

Market Structure of Indian Power Sector Transaction After Electricity Act-2003

Opportunity 1: Solar Open Access

Non-discriminatory provision for the use of transmission lines or distribution system or

associated facilities with such lines or system by any licensee or consumer or a person

engaged in generation in accordance with the regulations specified by the Appropriate

Commission.

Under open access provision of the Electricity Act 2003, IPP/CPPs and bulk consumers

(1 MW and above) are allowed to use the transmission and distribution networks to

buy and sell their power without any discrimination.

Even National Electricity Policy, 2005 envisioned that by allowing open access to

generators and consumers, the power price would be determined by market and make

the sector more competitive and efficient.

What is Open Access

Haryana Solar Policy, 2016

HREDA (Department of Renewable Energy, Govt. of India) recently notified Haryana Solar Policy, 2016 dated 14th March, 2016

Benefit of Solar Open Access: (As per Clause 4.3 of the Policy) CLIENT (Industrial Consumer) and its associate companies can procure Solar

Power to optimize their power procurement costs.i. Exemption of Electricity Duty & Electricity Taxes and CESSii. Exemption of Transmission and Distribution Chargesiii. Exemption of Cross Subsidy charges, surcharges and Reactive Power Charges.iv. The Banking facility shall be allowed for a period of one year (Clause 4.6 of

Policy)

•The withdrawal of Banked power should not be allowed during peak and Time of Day (TOD) hours.•If the banked energy is not utilized with in a period of 12 months, it will automatically lapse and no charges shall be paid in lieu of such power.•The Banking facility shall be allowed for the Grid connected Roof Top power projects on the same pattern.

Energy Settlement/Accounting

Note- If Monthly generation exceed monthly consumption then excess unit will be banked and can be settled in the next months during off-peak time/hours. Extra units can be banked up to 1 year.

Case-1

Total Consumption 1,00,000

Solar Generation/Supply 80,000

DISCOM Supply 20,000

Unit Banked 00

Case-2

Total Consumption 1,00,000

Solar Generation/Supply 1,20,000

DISCOM Supply 00

Unit Banked 20,000

Concept of Solar Open Access Power

XXX Consumer

DISCOM

Central/ Sate GENCO/IPP

Solar power Producer Tariff Fixed by

Government Long Term PPAMutually Agreed Tariff < DISCOM tariff

Existing vs. Open Access Solar

Power Exchange

Dynamic Market,Price discovered on exchange.

Consumer having contract demand of more than 1 MW are free to procure power from open

market.

Price of solar power is lower than DISCOM tariff and Exchange price.

Process is very smooth.

Solar power is green power so organization can put this subject in its sustainability and CSR

reporting

Overall reduction in companies carbon foot print along with monetary savings

Central/Sate Generation Unit

 

Solar Power Producer

Sate Transmission Network  

Sate Transmission Network

 

State Distribution network

 

State Distribution Network

 

DISCOM – Circle Distribution Substation 

Normal Utility Meter

Dedicated / Common Feeder

 

Dedicated / Common Feeder 

Consumer Distribution Panel Consumer Distribution Panel Load

ABT Meter

Circle Distribution Network/Substation 

Power Flow and Metering in case of Solar Open access

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Metering Arrangement- There is no major change in metering arrangement for solar power procurement. The only requirement is instead of normal utility meter a ABT meter will be installed.

Opportunity 2: Solar Roof Top Arrangement

HERC (Rooftop Solar Grid Interactive System based on Net Metering) Regulations, 2014

HERC (Haryana Electricity Regulatory Commission) notified the regulation dated on 25th Nov, 2014 to promote Grid Connected Solar Roof Top in the State.

Applicability:(Clause 3.1 of the Regulation)The eligible consumer may install the rooftop solar system under net metering arrangement which:i. Shall be located in the consumer premisesii. Shall interconnect and operate safely in parallel with the licensee’s network.iii. Shall be with in the permissible rated capacity as defined in the regulation

Concept of Gross Metering: (Clause 3.4 of the Regulation)i. The Minimum power to be generated is 250 KW and aboveii. The Generator may enter into PPA with the Distribution Licensee serving that area oriii. Even go for third party sale through Open Accessiv. The generator shall inject the entire power generated into the system of the licensee at a

single point.v. The cost of the additional equipment required for connectivity shall be borne by the

generator.vi. The rate of the PPA is limited to or lower than the feed in tariff of Solar Energy.

Procedure for Application:Eligible Consumer

Application to the Licensee for seeking permission for installation of rooftop solar system under Net Metering

arrangement

Application Fees: Rs. 1000

Verification by Licensee with in 15 days

As per Annexure -II

of the Regulation

Connection Agreement with the Licensee of that area

Clause 3.5 of the Regulation: For Open Access Consumers, the facility of Net Metering shall not be available.

As per Annexure -I

of the Regulation

Individual Project Capacity

As per Clause 7.1 of the Regulation:i. The maximum roof top solar system capacity to be installed at any eligible

consumer premises shall not exceed his connected load.ii. Provided that the maximum installed capacity shall not exceed 1 MWp for a

single eligible consumer.iii. Provided further that a variation in the rated capacity of the system with in a

range of 5% shall be allowed.

Clause 8.6 of the Regulation:•The Licensee shall have the right to disconnect the rooftop solar system at any time in the event of possible threat/damage, to its distribution system, to prevent any accident or damage, without any notice

Energy Accounting

i. Electricity generated from a rooftop solar system shall be cumulatively capped at 90% of the electricity consumption by the consumer.

ii. The consumer shall receive a net import/export bill indicating either net export to the grid or net import from the gird.

iii. During any billing period, the export of energy exceeds the import of energy, such surplus energy injected by the consumer shall be carried forward to the next billing period as energy credit.

iv. No interest shall be payable on this energy credit.

Opportunity 3: Solar Roof Top Arrangement

Self/In House Consumption

Bullet Points:i. Real Time Consumption of Solar Powerii. Suitable for replacing base load of consumeriii. No requirement of Installing ABT Meteriv. Power can be availed only in day time i.e. No Banking facility is available

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