Department of Industrial and Management Engineering (IME) Indian Institute of Technology Kanpur
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Renewable send Renewable Power Procurement


TNERC Releases Consultative Paper for Procurement of Solar and Wind Power by Distribution Licensee and Related Issues2020-03-26 11:14:26


The TNERC notified consultative paper for procurement of solar and wind power through competitive bidding by DISCOM, and to levy 100% transmission and wheeling charges, line losses, and cross-subsidy surcharge. Further, it proposes to impose stand by charges, grid availability charges, charges for higher harmonics, reactive power charges, power factor disincentives, and capping of contracted capacities for open access consumers including captive users. Additionally, multiple energy banking options are proposed for wind projects according to their commissioning dates.

 CER Opinion:

1. Removal of exemptions for wheeling and intrastate transmission charges would only reduce the cost advantage for Captive and OA consumers but would not eliminate it.


2. Withdrawing exemptions is not likely to contribute to the financial gap and may not enhance the 'financial performance' of the utilities.


3. The intermittency issues of RE can be addressed by tightening the state's grid code and regulations for forecasting and deviation settlement.


4. Capping excess generation for OA consumers including captive users can be addressed by allocating equivalent RECs or by paying equivalent REC price. 

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Renewable send Open Access and Captive Generation


APERC 2nd Draft Amendment to Open Access Regulation 2020-03-23 17:59:36

APERC notified a draft for 2nd amendment to its Open Access Regulation 2005 and proposes to substitute provisions of the first amendment to Open Access Regulation 2016. A brief summary is below:
1. Captive use or third-party sale within the state for wind and solar power projects are proposed to pay transmission and wheeling charges.  
2. Removal of exemption from distribution losses for solar power projects injecting power at 33 kV or below is proposed. 
3. Solar projects supplying power under third party sale to pay 100% cross-subsidy surcharge and additional surcharge. 

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