RE Technologies in Madhya Pradesh

The Centre for Regulation and Policy was appointed by the Madhya Pradesh Electricity Regulatory Commission (MPERC) in January 2021 for preparation of discussion paper and associated work for tariff determination of eight RE technologies – solar, wind, biomass, bagasse-based co-generation, small hydro, biogas, hybrid and waste-to-energy. The scope of work under each assignment includes:

A) Preparation of an approach paper with consideration of factors affecting the tariff for RE power projects which inter-alia includes (i) capital cost (ii) life (iii) plant load factor (iv) O&M charges (v) fuel cost related parameters, if applicable, and (vi) financial parameters like depreciation, interest on loan and working capital, loan repayment period, etc.

B) Attending the public hearing arranged by the Commission, analyse the suggestions/objections made by the stakeholders before and after public hearing and incorporate the same in subsequent documentation.

C) Final reasoned analysis and tariff order to be submitted before the Commission, incorporating the comments on approach paper.

WISE was assigned by the Bihar Electricity Regulatory Commission (BERC) to support the Commission for a year in various activities as detailed below.
i) Assist in various technical issues related to tariff, distribution, generation, transmission, trading, open access, renewables, etc.
ii) Formulate new regulations and review of existing regulations and amendments thereof in view of the Electricity Act, 2003, various policies and guidelines, etc.
iii) Compliance of various functions/provisions/ parameters under the Electricity Act, 2003.
iv) Monitor all the licensees of the state for compliance to the Electricity Act, 2003, directives of the Commission, compliance to rules, regulations of the Commission and compliance to state/central policies and rules.
v) Analysis of the compliance report on various directives given to the licensees/utilities in the Commission’s tariff order and assist in formulating consolidated fresh directives (considering the true-up and annual percentage rate tariff orders), suggesting ways and means to improve the functioning of the petitioner(s) and consumer services.
v) Consultation on other issues related to value chain of power sector, keeping dynamism of the sector in mind and new policies of the state/central government in mind.
vi) Capacity building and any other matters as specified by the Commission.
WISE has been working with the Commission since January 2022. This project will continue till next year.

In 2021-22, GERC engaged CRP to prepare an approach paper with consideration of factors affecting the tariff for biomass power projects which inter-alia includes
(i) capital cost
(ii) life
(iii) plant load factor
(iv) O&M charges
(v) fuel cost related parameters, if applicable, and
(vi) financial parameters like depreciation, interest on loan and working capital, loan repayment period, etc.

WISE attended public hearings arranged by the Commission, analyzed the suggestions/objections made by the stakeholders before and after public hearing, incorporated these in the tariff order and prepared final reasoned analysis and tariff order for submission to GERC.

The Centre collected the necessary primary and secondary data required for preparation of the approach paper after analyzing the relevant policy and regulations applicable in the state. The said study will be completed in 2023-24.

The Centre for Regulation and Policy was appointed by the Madhya Pradesh Electricity Regulatory Commission (MPERC) for the preparation of a discussion paper and associated work for tariff determination of eight RE technologies – solar, wind, biomass, bagasse-based co-generation, small hydro, biogas, hybrid and waste-to-energy. The scope of work under each assignment included, 1) Preparation of an approach paper with consideration of factors affecting the tariff for RE power projects which inter – alia includes (i) capital cost, (ii) life, (iii) plant Load factor, (iv) O&M charges, (v) fuel cost related parameters, if applicable, and (vi) financial parameters like depreciation, interest on loan and interest on working capital, loan repayment period etc. 2) Attending the public hearing arranged by the Commission, analyse the suggestions/objections made by the stakeholders before and after public hearing and incorporate the same in subsequent documentation. 3) Submission of final reasoned analysis and tariff order to the Commission.

On completion of the scope of activities, the aforesaid tariff orders will be issued during the next financial year.

WISE has been providing consultancy support to the Gujarat Electricity Regulatory Commission (GERC) for renewables in the technical, commercial, legal and regulatory areas since 2012-13.

In 2020-21, the Centre for Regulation and Policy provided support to GERC for:

1) Preparation of approach paper with consideration of factors affecting the tariff for wind-solar hybrid power projects which inter – alia include
(i) capital cost,
(ii) life,
(iii) plant load factor,
(iv) O&M charges
(v) fuel cost-related parameters, if applicable, and
(vi) financial parameters like depreciation, interest on loan and interest on working capital, loan repayment period etc.,

2) Attending the public hearing, arranged by the Commission, analyse the suggestions /objections made by the stakeholders before and after public hearing and incorporate the same in subsequent documentation, and

3) Preparation of final reasoned analysis and tariff order to be submitted before the Commission, incorporating the comments on approach paper.