Home India Central Electricity Regulatory Commission In exercise of powers conferred under Section 178 of the Ele...
Date: 2016-03-30 Category: Extra Ordinary State: Union Government Country: India

In exercise of powers conferred under Section 178 of the Electricity Act

Issued by Central Electricity Regulatory Commission · Not Applicable

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Executive Summary & Key Takeaways

Executive Summary: This document outlines the Central Electricity Regulatory Commission's (CERC) Fourth Amendment Regulations of 2016 regarding the recognition and issuance of Renewable Energy Certificates (RECs) for renewable energy generation. The regulations address eligibility criteria for renewable energy generators and captive generating plants (CGP) participating in the REC scheme, particularly concerning open access sales to third parties and self-consumption. It also clarifies the treatment of concessional benefits and banking facility benefits. The regulations took effect on March 30, 2016. Key Points / Main Content: REC Scheme Eligibility: * Third-Party Sales: Renewable energy generators selling electricity to third parties via open access are eligible for REC participation if they do not avail concessional transmission/wheeling charges or banking facility benefits. * Forfeiture of Benefits: Generators who forgo concessional benefits become eligible for REC participation from the date of forfeiture. * Benefit Withdrawal: The condition regarding concessional benefits does not apply if such benefits are withdrawn by the State Electricity Regulatory Commission or State Government. * Dispute Resolution: Disputes regarding the availing of concessional benefits will be referred to the Appropriate Commission. * Banking Facility Benefit: Banking facility benefit is defined as utilizing banked energy at any time, including peak hours, even if injected during off-peak hours. Captive Generating Plants (CGP): * Eligibility Based on Commissioning Date: CGPs based on renewable sources are ineligible for REC participation for self-consumed energy if commissioned before September 29, 2010, or after March 31, 2016, or not registered with the Central Agency under the REC scheme by June 30, 2016. * Conditional Eligibility: CGPs commissioned between September 29, 2010, and March 31, 2016, and registered by June 30, 2016, are eligible if they do not avail concessional benefits. * Forfeiture Period: If a CGP forgoes concessional benefits to meet REC eligibility, it becomes eligible only after three years from the date of forgoing such benefits. * Withdrawal of Benefits: The condition regarding concessional benefits does not apply if such benefits are withdrawn by the State Electricity Regulatory Commission or State Government. * Banking facility benefit definition applies to CGPs as well. Offsetting Renewable Purchase Obligation: * Eligible renewable energy generators, including captive generating plants, can retain certificates for offsetting their renewable purchase obligation as a consumer, subject to certification and verification by the concerned State Agency. Impact Analysis: Renewable Energy Generators: * Impact: New conditions applied to REC eligibility based on third-party sales through open access and availing concessional benefits. * Action Required: Assess current REC eligibility and adjust practices to comply with new conditions, including potential forfeiture of concessional benefits. Captive Generating Plants (CGP): * Impact: Eligibility criteria for REC participation are clarified based on commissioning dates, registration, and availing of concessional benefits. * Action Required: Review commissioning date and registration status. Ensure compliance with conditions related to concessional benefits to maintain or gain REC eligibility. State Electricity Regulatory Commissions and State Governments: * Impact: Authority to withdraw concessional benefits, impacting REC eligibility for renewable energy generators and CGPs. * Action Required: Review and potentially withdraw concessional benefits if necessary, and address any disputes regarding the availing of concessional benefits. State Agencies: * Impact: Responsible for certification and verification of eligible renewable energy generators and captive generating plants who retain certificates for offsetting their renewable purchase obligation. * Action Required: Perform certification and verification for eligible generators and captive generating plants.

Key Entities Referenced

Central Electricity Regulatory Commission: The central regulatory body for the electricity sector in India. It is responsible for regulating inter-state transmission of electricity, determining tariffs, and promoting competition. Electricity Act, 2003: An act of the Parliament of India enacted to consolidate the laws relating to generation, transmission, distribution, trading and use of electricity and generally for taking measures conducive to development of electricity industry. Renewable Energy Certificate: A market-based instrument to promote renewable energy and to help entities meet their renewable purchase obligation. Renewable Energy Generation Regulations, 2010: Regulations established by the Central Electricity Regulatory Commission regarding the recognition and issuance of Renewable Energy Certificates (RECs) for renewable energy generation. Central Agency: An agency that is registered under REC scheme. Captive Generating Plant: A power plant set up by a company to generate electricity primarily for its own use. Electricity Rules, 2005: Rules pertaining to the electricity sector in India. State Electricity Regulatory Commission: The state regulatory body for the electricity sector
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fo|rq fofu;ked vk;ksx vkSj@;k jkT; ljdkj }kjk okil fy, tkrs gaSa% c'krsZ ;g Hkh fd ;fn dksbZ fookn mRiUu gksrk gS fd lhthih ;k fdlh vU; uohdj.kh; ÅtkZ mRiknd us bl izdkj dh fj;k;r@mUuk;d ykHk izkIr fd, gSa rks mUgsa fu.kZ; ds fy, mi;qDr vk;ksx dks Hkstk tk,xkA Li"Vhdj.k% bl fofu;e ds iz;kstu ds fy,] vfHkO;fDr ÞcSafdax lqfo/kk ykHkß dk vFkZ dsoy bl izdkj dh cSafdax lqfo/kk gksxh ftlds }kjk dksbZ lhthih ;k fdlh vU; uohdj.kh; ÅtkZ mRiknd fdlh Hkh le; ¼ihd ?k.Vksa lfgr½ cSad dh ÅtkZ ds mi;ksx dk ykHk izkIr djrk gS Hkys gh tc blus vkWQ ihd ?k.Vksa ds nkSjku fxzM esa var{ksfir fd;k gSAß 3333 eeeewwyywwyy ffffooooffffuuuu;;;;eeeekkkksasa sasa ddddss ss ffffooooffffuuuu;;;;eeee 8888 ddddkkkk llllaa''aa''kkkkkkkkss//ss//kkkkuuuu%%%% ewy fofu;eksa ds fofu;e 8 ds [k.M¼3½ dks fuEukuqlkj izfrLFkkfir fd;k tk,xk% Þik= dSIVso mRiknu la;a= lfgr ,d ik= uohdj.kh; ÅtkZ mRiknd dks lacaf/kr jkT; ,tsUlh }kjk vf/kizek.ku vkSj lR;kiu ds v/;k/khu miHkksDrk ds :Ik esa bldh uohdj.kh; Ø; ck/;rk dh vkWQ lsfVax ds fy, izek.ki=ksa dks izfr/kkfjr djus dh vuqefr gksxhAß Vh- jkmr] çeq[k ¼fof/k½ [foKkiu-III@4@vlk-@-415@¼150½] ffffVVVVIIIIiiii....kkkkhhhh%%%% dsUnzh; fo|qr fofu;ked vk;ksx ¼uohdj.kh; ÅtkZ mRiknu ds fy, uohdj.kh; ÅtkZ izek.ki= dh ekU;rk vkSj tkjh djus ds fy, fuca/ku ,oa 'krsZ½ fofu;e 2010 dks Hkkjr ds jkti= ¼vlk/kkj.k½ fnukad 18-01-2010 ds Hkkx III] [k.M 4 Ø-la- 26 esa vf/klwfpr fd;k x;k vkSj fuEufyf[kr ds ek/;e ls la'kksf/kr fd;k x;k% ¼d½ izFke la'kks/ku fofu;e Hkkjr ds jkti= ¼vlk/kkj.k½ 01-10-2010 ds Hkkx III, [k.M 4] la- 249 esa izdkf'kr fd;kk x;kA ¼[k½ f}rh; la'kks/ku fofu;e Hkkjr ds jkti= ¼vlk/kkj.k½ 11-07-2013 ds Hkkx III, [k.M 4] la- 192 esa izdkf'kr fd;kk x;kA ¼x½ r`rh; la'kks/ku fofu;e Hkkjr ds jkti= ¼vlk/kkj.k½ 31-12-2014 ds Hkkx III, [k.M 4] la- 380 esa izdkf'kr fd;kk x;kA ¼?k½ 'kqf)i= fnukad 27-01-2015¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3 CENTRAL ELECTRICITY REGULATORY COMMISSION NOTIFICATION New Delhi, the 23rd March, 2016 F. No. L-1/12/2010-CERC.– In exercise of powers conferred under Section 178 of the Electricity Act, 2003 (36 of 2003) and all other powers enabling it in this behalf, and after previous publication, the Central Electricity Regulatory Commission hereby makes the following regulations to amend the Central Electricity Regulatory Commission (Terms and Conditions for recognition and issuance of Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2010 (hereinafter referred to as “the Principal Regulations”), namely: 1. Short title and commencement (1) These regulations may be called the Central Electricity Regulatory Commission (Terms and Conditions for recognition and issuance of Renewable Energy Certificate for Renewable Energy Generation) (Fourth Amendment) Regulations, 2016. (2) These regulations shall come into force with effect from the date of their publication in the Official Gazette. 2. Amendment to Regulation 5 of the Principal Regulations: (1) Second, third, fourth, fifth and sixth proviso including the explanation under sub-clause (c) of Clause (1) of Regulation 5 of the Principal Regulations shall be deleted. (2) The following provisos shall be added after the first proviso under sub-clause (c) of Clause (1) of Regulation 5 of the Principal Regulations: “Provided further that a renewable energy generator selling electricity component to third party through open access shall be eligible for the entire energy generated from such plant for participating in the REC scheme subject to the condition that such generator does not avail or does not propose to avail any benefit in the form of concessional/promotional transmission or wheeling charges or banking facility benefit: Provided also that if such a renewable energy generator forgoes on its own, the benefits of concessional/promotional transmission or wheeling charges or banking facility benefit, it shall become eligible for participating in the REC scheme only after the date of forgoing such benefits: Provided also that the above mentioned condition for renewable energy generator selling electricity component to third party through open access for participating in the REC scheme shall not apply if the benefits given to such renewable energy generator in the form of concessional transmission or wheeling charges and/or banking facility benefit are withdrawn by the concerned State Electricity Regulatory Commission and/or the State Government: Provided also that if any dispute arises as to whether a renewable energy generator has availed such concessional/promotional benefits, the same shall be referred to the Appropriate Commission for decision. Explanation: For the purpose of this Regulation, the expression “banking facility benefit” shall mean only such banking facility whereby any renewable energy generator gets the benefit of utilizing the banked energy at any time (including peak hours) even when it has injected into grid during off-peak hours.” (3) A new Clause shall be inserted after Clause (1A) as under: “(1B) A Captive Generating Plant (CGP) based on renewable energy sources, including renewable energy generating plant not fulfilling the conditions of CGP as prescribed in the Electricity Rules, 2005 but having self-consumption, shall not be eligible for participating in the REC scheme for the energy generated from such plant to the extent of self-consumption, if such a plant: a) has been commissioned prior to 29th September 2010 or after 31st March 2016; or4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III —SEC. 4 b) is not registered with Central Agency under REC scheme on or before 30th June 2016. Provided that a CGP based on renewable energy sources, including renewable energy generating plant not fulfilling the conditions of CGP as prescribed in the Electricity Rules, 2005 but having self-consumption, and fulfilling both the following conditions: a) having date of commissioning between 29th September 2010 and 31st March 2016; and b) registered with Central Agency under REC scheme on or before 30th June 2016 shall be eligible for the entire energy generated from such plant for participating in the REC scheme subject to the condition that such plant does not avail or does not propose to avail any benefit in the form of concessional/promotional transmission or wheeling charges and/or banking facility benefit: Provided further that if such plant meeting the eligibility criteria for REC, forgoes on its own, the benefits of concessional transmission or wheeling charges and/or banking facility benefit, it shall become eligible for participating in the REC scheme only after a period of three years has elapsed from the date of forgoing such benefits: Provided also that the above mentioned condition for participating in the REC scheme shall not apply if the benefits given to such plant in the form of concessional transmission or wheeling charges and or banking facility benefit are withdrawn by the concerned State Electricity Regulatory Commission and/or the State Government: Provided also that if any dispute arises as to whether a CGP or any other renewable energy generator has availed such concessional/promotional benefits, the same shall be referred to the Appropriate Commission for decision. Explanation:- For the purpose of this regulation, the expression ‘banking facility benefit’ shall mean only such banking facility whereby the CGP or any other renewable energy generator gets the benefit of utilizing the banked energy at any time (including peak hours) even when it has injected into grid during off-peak hours.” 3. Amendment to Regulation 8 of the Principal Regulations: Clause (3) of Regulation 8 of the Principal Regulations shall be substituted as under: “An eligible renewable energy generator including an eligible captive generating plant shall be permitted to retain the certificates for offsetting its renewable purchase obligation as a consumer subject to certification and verification by the concerned State Agency:” T. ROUT, Chief (Legal) [ADVT.-III/4/Exty./415./(150)] Note: The Central Electricity Regulatory Commission (Terms and Conditions for Recognition and Issuance of Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2010 were notified in Part III, Section 4, No. 26 of the Gazette of India (Extraordinary) dated 18.1.2010 and amended vide:- (a) First Amendment Regulations published in Part III, Section 4, No. 249 of the Gazette of India (Extraordinary) dated 01.10.2010. (b) Second Amendment Regulations published in Part III, Section 4, No. 192 of the Gazette of India (Extraordinary) dated 11.7.2013. (c) Third Amendment Regulations published in Part III, Section 4, No. 380 of the Gazette of India (Extraordinary) dated 31.12.2014. (d) Corrigendum dated 27.1.2015. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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