KERC Introduces Time Of Day Settlement For Green Energy

The Karnataka Electricity Regulatory Commission (KERC) has issued an order dated 08.06.2023, outlining the implementation of Time of Day (TOD) settlement for energy injected and drawn. The order aligns with the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022, and the methodology developed by the Forum of Regulators (FoR).

Key highlights of the order include:

TOD Settlement: To ensure a common methodology for calculating open access charges and banking charges, TOD settlement for energy injected and drawn has been introduced. Energy banked during peak TOD slots can be drawn during both peak and off-peak slots, while energy banked during off-peak TOD slots can be drawn during off-peak slots by paying only the banking charges. For drawing off-peak energy during peak hours, an additional 2% of the banked energy will be charged.

Applicability to LT Consumers: The TOD slots and settlement procedures will also apply to Low Tension (LT) consumers with a contract demand of 100 kW and above, enabling a broader spectrum of consumers to benefit from this system.

The KERC has provided stakeholders with a draft procedure for the implementation of TOD settlement and has invited objections, suggestions, and views within 15 days from the date of publication. The move towards TOD settlement reflects the Commission’s commitment to promoting green energy open access and aligning with national policies and regulations.

An illustrative example provided in the order showcases the monthly settlement of energy and daily settlement of charges. It demonstrates how banking charges and additional charges for drawing energy during peak hours are calculated, ensuring transparency and adherence to the rules. The KERC emphasizes that any net drawl during peak hours must first be set off against the net banked energy during off-peak hours, with additional charges applied only to the extent of such energy set off.

The introduction of TOD settlement is expected to further boost the renewable energy sector and provide incentives for businesses and consumers to engage in sustainable energy practices. As the draft procedure undergoes review and stakeholders offer their insights, the KERC’s commitment to enhancing the efficiency and viability of green energy in Karnataka is evident.

Please view the document below for more details.