Case No. 35 of Shri V.P. Raja, Chairman Shri Vijay L. Sonavane, Member Smt. Chandra Iyengar, Member

Transcription

1 Before the MAHARASHTRA ELECTRICITY REGULATORY COMMISSION World Trade Centre, Centre No.1, 13th Floor, Cuffe Parade, Mumbai Tel. No /65/69 Fax Website: Case No. 35 of 2013 In the matter of Petition filed by M/s. Bajaj Finserv Ltd. seeking clarification from MERC s RPO-REC Regulations, 2010 and CERC s REC Regulations CORAM: Shri V.P. Raja, Chairman Shri Vijay L. Sonavane, Member Smt. Chandra Iyengar, Member M/s. Bajaj Finserv Ltd.. Petitioner V/s 1. Maharashtra State Load Dispatch Centre (MSLDC) 2. Maharashtra State Electricity Distribution Company Ltd. (MSEDCL). 3. Maharashtra Energy Development Agency (MEDA).Respondents Advocate/ Representative for the Petitioner : Shri. S. P. Shinde Advocate/ Representative for the Respondent No. 1 : Shri. Jayant Kulkarni Representative for the Respondent No. 2 : Shri. D.H. Kulkarni ORDER Date: 19 July, 2013 M/s. Bajaj Finserv Ltd ( Petitioner ) submitted a Petition on 07 March 2013 before the Commission for seeking clarification from MERC s RPO-REC Regulations, 2010 and CERC s REC Regulations 2010, in the matter of reduced recommendation of quantum of Renewable Energy (RE) to Central Agency i.e. NLDC-Delhi by MSLDC, for issuing RECs to accredited entity i.e. Bajaj Finserv Ltd than their actual injected RE in DISCOM s network. Page 1 of 11

2 2. Main Prayers of the Petitioner i. Hon ble Commission is humbly requested to direct SLDC of Maharashtra to execute their work related to REC, strictly as per their jurisdiction, without deviating from MERC s RPS framework and CERC s REC regulations/ procedures Also direct them, do not forward reduced quantum of BFS s inject RE in Discom s grid to Central Agency, by reducing injected RE to the extent of drawal of conventional energy from the grid by the same project in absence of RE generation. ii. iii. Direct MSLDC to compensate loss of REC so far due to their unilateral action till today. Suitable action may be initiated against incumbent of MSLDC responsible for deliberate misinterpretation of Hon ble Commission s orders, regulations, procedure, etc and causing reduction in REC creation leading to the financial loss to the accredited RE project. 3. Petitioner submitted that as per Wind energy policy 1998 of Maharashtra, Bajaj Auto has invested in installation of 7 wind energy projects having gross capacity of 65.2 MW in Maharashtra State particularly for captive use. However, in the year 2008, demerger of erstwhile Bajaj Auto took place and Bajaj Finserv Ltd (BFS) became the owner of the project and Bajaj Auto and others became third party users of wind energy under open access. 4. Petitioner submitted that MSEDCL approves injected energy by wind power projects recorded on Interface meter for third party sale/ self use / sale to DISCOM at Average Power Purchase Cost (APPC). However, MSLDC manually reduces same approved RE quantum to the extent of drawal of conventional energy from grid, thus wind energy generators (WEGs) of BFS receives lesser quantum of RE for REC, thereby causing losses. 5. Petitioner submitted that wind energy generators of Petitioner are connected to the 33kV distribution system through approved interface meters to the MSEDCL. As per the CERC s REC procedure 2010 (u/s E: Metering details), while accreditation took place for the Month of Feb-2011, the Petitioner declared the location, specification etc. of Interface Meters installed on MSEDCL s 33 kv system for accounting Net energy injection to grid. Petitioner submitted that as per REC Regulation of CERC, Page 2 of 11

3 DISCOM is responsible for Joint Meter Reading (JMR), Energy Injection Reports (EIR) etc and this is not in the domain of the SLDC. 6. Since March-2011, nodal officers of DISCOM were taking JMR for injected RE in the grid for third party sale under open access and forwarding the same to MSLDC for further accounting and recommending to NLDC for issuing RECs. Accordingly, Petitioner was receiving RECs from central agency as per 100% injected, recorded, certified RE quantity by DISCOM till July, However from Aug-2012, MSLDC started deducting the quantum of injected RE to the extent of conventional energy drawal from the grid by the WEG in absence of RE generation and recommending lesser REC thereby causing financial loss to the Petitioner. 7. Petitioner submitted that it approached MSLDC to seek guidelines for submission of documents etc for REC purpose. MSLDC handed over protocol/ format to Petitioner for submitting pro-forma and RE injection report through DISCOM for further recommendation to NLDC for issuance of RECs. Petitioner brought to their notice that protocol-format etc for wind energy projects connected to DISCOM are erroneous and difficult to fill up and submit to MSLDC through DISCOM for the following reasons : a. RE generator are required to submit pro-forma and EIP on DISCOM s letter head certified and signed by both RE generator and DISCOM b. Monthly copies of JMR sheet and energy credit report issued by DISCOM are required to be submitted. 8. Petitioner submitted the following difficulties for filling columns of Pro-forma: a. Metering of Gross RE generation: DISCOM never records RE generation of individual WEG in project. Therefore Gross Generation of pro-forma sheet is not applicable to WEG project. b. Metering of Auxiliary consumption: In case of RE Co-generator / CPP, it may require to work out self consumption i.e. deemed injection out of Gross generation of RE in grid for REC purpose but not applicable to WEG project. c. Metering of self consumption from own source: WEG is not co-gen plant or embedded CPP; hence measurement of self consumption for industrial/ commercial purpose before injection in grid is not applicable. d. Metering of units injected in grid: Since there is no self consumption and no recording of Auxiliary consumption from WEG before injection is required, Page 3 of 11

4 entire generated RE is getting injected in DISCOM s grid through single interface meter for each project. Hence, DISCOM is recording monthly injected RE on interface meter as such this column of format is useful for DISCOM s certification. 9. The Commission vide its Notice dated 25 March 2013, scheduled a hearing in the matter on 12 April, Shri. S. P. Shinde and Shri. S. M. Pathak was present on behalf of the Petitioner (BFS Ltd.). Shri. Jayant Kulkarni was present on behalf of the Respondent (MSLDC) and Shri. Amit Bute was present on behalf of the MSEDCL. Petitioner made a presentation in the matter. After hearing the Petitioner and Respondent the Commission directed that a Committee consisting officers of Commission, Representatives of MSLDC, MSEDCL and Petitioner be constituted to study various technical issues involved in the matter in line with relevant Regulations. The Commission also directed MSLDC to file parawise reply to the Petition. 10. MEDA s Submission dated 10 th April, 2013: MEDA submitted that under CERC s REC Regulations / procedures,2010, RE Generator is eligible for issuance of REC in lieu of entire RE injected into grid after deducting quantum of auxiliary consumption from total energy generated from said RE generating station. In case of Wind Energy Project auxiliary consumption is nil when grid is available. However in case of non availability of grid, drawal of energy from grid is chargeable & being paid by WEG to MSEDCL separately. Therefore, in MEDA s view, quantum of auxiliary consumption for which generator has paid charges to DISCOM should not be deducted from net energy injected into grid for issuance of energy injection report under REC mechanism. Matter of issuance of energy injection report under REC mechanism to RE generator is the concern of MSLDC. 11. MSLDC s submission dated 25 April, 2013: i. As per CERC (REC) regulations, 2010, it is SLDC s responsibility to verify the Energy Injection Report (EIR) received from DISCOMs and send to NLDC which in turn issues RECs. ii. For WEGs, MSEDCL deducts the aux consumption from the injection to work out the net energy in its EIR. Page 4 of 11

5 iii. iv. In case of M/s BFL, MSEDCL is not deducting aux consumption, so to bring all WTGs on par, MSEDCL has deducted its aux. Consumption from injection based on Generation Credit Note ( GCN) issued by MSEDCL. MSLDC is following CERC (REC) Regulations, according to which auxiliary consumption of a generator is not eligible for REC. v. The energy drawn by WEG from the grid is mainly its start up power consumption plus step-up transformer losses (as per MERC RE Tariff Regulation, 2010) and other consumption such as aux. Supply for control panels, machine / control lighting etc. This drawal of energy by WEG from the grid is its auxiliary consumption. vi. vii. Energy drawn from the grid during start up and other auxiliary consumption is conventional energy. CERC (REC) regulations statement of Objects and reasons dtd. 27-Sept-2010 ( 1 st Amendment) Objection In case of CPP - Whether Auxiliary Consumption energy will also be made eligible along with self consumption while calculating energy entitlement for getting REC benefit. Clarification: The Commission would like to clarify that Auxiliary Consumption energy consumption of generator and same shall not be considered for REC. Only net energy shall be considered for REC viii. Definition of Auxiliary Consumption as per MERC ( RE Tariff ) Regulations Auxiliary energy consumption' or 'AUX' in relation to a period in case of a generating station means the quantum of energy consumed by auxiliary equipment of the generating station, and transformer losses within the generating station, expressed as a percentage of the sum of gross energy generated at the generator terminals of all the units of the generating station; ix. Merely because the WEG pays to the local distribution utility for this conventional energy drawn by it from grid, does not put a tag of green energy on the entire generation. Any conventional energy used by the generator and its allied equipment should be deducted from its gross generation. Page 5 of 11

6 12. Proceedings of the Committee: 12.1 First Meeting of Committee: First meeting of the Committee was held on 18 th April Following issues were discussed during the meeting: a. Existing set up of Wind Power Evacuation with the help of Single Line Diagram ( SLD) prepared by Petitioner. b. Existing procedure of joint meter reading by MSEDCL and Petitioner. c. Existing procedure adopted by MSLDC for recommending Energy Injection Report to Central Agency for issuance of RECs to Petitioner. Committee identified the following issues: 1. Definition of Auxiliary Consumption for RE Generation specifically for Wind power station 2. Requirement of Start up Power for Wind Generator 3. Requirement of Power to meet Auxiliary power consumption during Wind power generation and no wind power generation period 4. Existing Metering system for measuring Import and Export Energy w.r.t. Grid. 5. Is there any double accounting taking place? 12.2 The Committee further visited the Wind Power Project site at Supe on 6 May, 2013 to understand the above issues in detail and 2 nd meeting of Committee was held at Supe site to discuss the above issues inline with site visit. Following issues were discussed in 2 nd meeting: a. Definition of Auxiliary Consumption for RE Generation as per MERC RE Tariff Regulations, b. Operation of Wind Generator during freewheeling condition. c. Different types of load requirement at Wind Generating station. 13. The Commission vide its Notice dated 18 April 2013, scheduled a hearing in the matter on 15 May, Shri. S. P. Shinde was present on behalf of Petitioner. Shri. Jayant Kulkarni was present on behalf of the Respondent (MSLDC) and Shri. Amit Bute was present on behalf of the MSEDCL. During the hearing, Committee made a Page 6 of 11

7 presentation in the matter. Further, the Petitioner also made a presentation in the matter. Observations of the Committee are summarised as below: 1. Wind Turbine requires power from the grid to meet mainly the following load requirement. i. To meet Transformer Losses during no wind power generation ii. iii. iv. Startup power to overcome the rotational and frictional losses and develop rotating magnetic field in Induction Generator and to charge capacitors in control panel. Safety Lighting on Wind Turbine Blades and lighting requirement in the Control room. Power requirement of controlling gear mechanism which remains in service during no generation period also. 2. The Generation Transformer and Control gear remains connected to Grid during no generation period also. Same ABT meter is used to measure Import and Export power w.r.t. Grid by WEG during generation and standstill conditions. 3. MSEDCL while submitting JMR report to MSLDC indicates total units injected into the grid during the month and mentioning Auxiliary consumption as Zero. 4. Energy drawal from grid by WEG in absence of wind generation is charged by MSEDCL separately. 5. MSLDC reduces injected RE units in Grid to the extent of energy drawn from the grid by WEG and balance units are being recommended for issuance of RECs as per the procedure laid down by MSLDC and clarification given by CERC. 6. The energy drawn by WEG in absence of wind power generation is supplied by MSEDCL. 7. There is double accounting of energy consumed by WEG from Grid. MSLDC is deducting auxiliary consumption from net energy injection and MSEDCL is also charging for the same energy at temporary tariff. Page 7 of 11

8 The Commission further directed the Committee to study 25 sample proformas for each Renewable projects, for which MSEDCL is forwarding Joint Meter Reading (JMR) reports to MSLDC for further processing of RECs and to prepare a reference on the matter for seeking advice from Central Electricity Authority (CEA) under section 73(n) of the Electricity Act, Findings of the Committee on sample proforma study 14.1 Findings of the Committee on sample proforma study are as below: o Total 26 RE generators are considered for sampling. Out of which 21 are Wind generators, 1 is Biomass Power Plant, 1 is Solar Power Plant and 3 are Bagasse based Co-gen power plants. o Out of these 26 samples cases, in 23 cases MSEDCL has deducted energy drawn by RE generator from the total energy injected into the Grid and same is mentioned in column of aux. consumption. Further net energy excluding aux. consumption has been forwarded to MSLDC for issuance of RECs Petitioner submitted its views on the sample study carried by the committee vide its mail dated 21 May, 2013 wherein Petitioner stated that: A) For Sugar Factories MSLDC have not reduced injected RE in Grid for RPO of MSEDCL/Third Party sale to the extent of drawal from Grid- B) For Wind Generators MSLDC have reduced injected RE in Grid for Third Party sale/self use under open access to the extent of drawal from Grid. C) MSLDC is incorrectly implementing MERC/CERC s regulation for RPO/REC 14.3 Respondent MSLDC has submitted its replies on Petitioner s views vide dated 27 May, A) As there is a separate meter provided to measure aux consumption by the generator, there is no need of deducting the drawal of energy from the Grid by the RE generator from its injection of RE. The aux consumption measured by the meter is deducted from the gross generation as per CERC Regulations. B) As there is no separate meter provided to measure aux consumption by the wind generator, the drawal of energy from the Grid by the generator is deducted by MSEDCL/MSLDC from its injection of RE. In the opinion of Page 8 of 11

9 MSLDC all drawal of energy by the wind generator from the Grid is used for support of generation activities and hence it is its aux consumption. Hence it is deducted from its injection. C) For Sugar Factories, the energy Injection Reports are to be issued on monthly readings only as per CERC provisions. Thus there is no question of measurement of aux consumption separately i.e. when generation is stopped and when generation is on. There is no breach of any MERC/CERC RE regulations by MSLDC. 15. Commission s Observations and Ruling: 15.1 The Commission vide notice dated 15 May 2013, scheduled a hearing in the matter on 28 May, Shri. S. P. Shinde was present on behalf of Petitioner. Shri. Jayant Kulkarni was present on behalf of the Respondent (MSLDC) and Shri. D.H. Kulkarni was present on behalf of the MSEDCL. Having heard the parties and material placed on the record, Commission observed that as per CERC s REC Regulations,2010, its amendment and its statement of Objects and Reasons, RE Generator is eligible for issuance of REC in lieu of entire RE injected into Grid after deducting quantum of auxiliary consumption from total energy generated from said RE generating station. In this case, during wind energy generation, transformer losses and auxiliary power requirement of wind generating station are met out by its own generation before injecting wind power into the grid However, when there is no generation from Wind turbine (Freewheeling condition), Wind generator remains connected to grid and it draws some power from the grid to meet the load requirement such as transformer losses, power requirement of control gear, lighting load of control room and safety lighting on wind turbine blades. This power drawn from grid is measured through the same ABT meter. This energy drawn by WEG during absence of wind energy generation is treated as standby power and charged by DISCOM separately at temporary tariff The Commission is of the view that the issue of auxiliary consumption for wind may be referred to CEA for seeking technical advice under section 73(n) of the Electricity Act, The Commission directed the office of the Commission to make Page 9 of 11

10 a reference to CEA for seeking advice under Section 73(n) of the Electricity Act, 2003 based on the issues stated after the following facts: Facts 1. The MERC has notified MERC (RPO-REC) Regulations, 2010 on 7 th June, 2010 in line with CERC (Terms and Conditions for recognition and issuance of REC for RE Generation) Regulations, MSLDC has prepared detailed procedure for submission of data to SLDC for Renewable Energy Certificate. In accordance with REC procedure of Maharashtra SLDC, Distribution Licensee and the Wind energy generator take Joint Meter Reading for Wind Energy injected in to the grid for third party sale under open access and submit the JMR to SLDC for further accounting and recommending to NLDC for issuing RECs. 2. During wind energy generation, transformer losses and auxiliary power requirement of wind generating station are met out from the grid before injecting wind energy into the grid. Whenever there is no generation from Wind turbine, Wind generator s HT breaker remains connected to grid and wind power station draws some power to meet the load requirement such as transformer losses, power requirement of control gear, lighting load of control room and safety lighting on wind turbine blades. This power drawn from grid is measured through the same ABT meter. This energy drawn by WEG during absence of wind energy generation is treated as standby power and charged by DISCOM at temporary tariff as per the provision under section of national tariff policy and MERC s ruling in Case No. 78 of The energy drawn by WEG during absence of wind power generation is treated as Auxiliary consumption of wind power plant by MSLDC and MSLDC while recommending injected renewable Energy to NLDC for issuance of RECs to wind generator, Maharashtra SLDC is deducting the energy drawn by WEG from the grid as auxiliary consumption and the same is not considered for RECs as per statement of reasons and objections for CERC REC regulations-2010 dated 27 September, Page 10 of 11

11 In this connection, the Commission has decided to seek advice from CEA on following issues: Issues i. Whether power drawn by wind generating station during no generation ( freewheeling) period is treated as Auxiliary consumption of that wind generating station? ii. Requirement of Start up Power for Wind Generator connected to grid. iii. Requirement of Power to meet Auxiliary demand during Wind power generation and no wind generation period. iv. Practices being followed by other States with respect to conventional energy drawl by WEG) period from the grid during no generation (freewheeling) for issuance of REC. In the Commission s daily order dated 28 May, 2013, MSLDC was directed not to deduct the quantum of energy drawn from the grid by Petitioner, during no generation period from the net Renewable Energy injected into the grid on the proforma received from MSEDCL before recommending to NLDC for issuance of RECs. This direction shall continue for a period of six months from the date of the said daily order. The Commission will revisit the aforesaid issue once the advice is received from the CEA. With the above, this case stands disposed of. Sd/- Sd/- Sd/- (Chandra Iyengar) (Vijay L. Sonavane) (V. P. Raja) Member Member Chairman Page 11 of 11