The Uttarakhand Electricity Regulatory Commission (UERC) has announced significant amendments to its regulations concerning the supply of electricity from renewable energy sources and non-fossil fuel-based co-generating stations. This update aims to promote the development of renewable and non-conventional sources of energy in the state.
The newly amended regulations will be effective from April 1, 2024, and will remain in force for five years, unless reviewed or extended by the Commission. A key feature of these regulations is the establishment of a minimum quantum of electricity that distribution licensees, captive users, and open-access customers must purchase from renewable energy sources. This is defined as the Renewable Purchase Obligation (RPO).
The RPO specifies the percentage of total electricity requirements that must be sourced from renewable energy. For the fiscal year 2024-25, the minimum purchase requirements are set at 0.67% for wind energy, 0.38% for hydro energy, 0.75% for distributed renewable energy, and 28.10% for other renewable sources, totaling 29.91%. These percentages increase incrementally each year, reaching a total of 43.33% by 2029-30.
The amendments clarify that the wind energy obligation must be met through projects commissioned after March 31, 2022, while the hydro energy obligation applies to projects commissioned after March 8, 2019. Additionally, distributed renewable energy must come from projects under 10 MW, including various solar installations. The regulations also provide flexibility for meeting shortfalls in one category with excess energy from another, promoting a balanced approach to renewable energy sourcing.
An important aspect of the updated regulations is the emphasis on energy storage. Starting in 2024-25, there is an energy storage obligation that mandates a percentage of total energy consumption to be stored. This percentage starts at 1.5% in 2024-25 and increases annually to 4.0% by 2029-30. At least 85% of this stored energy must be sourced from renewable energy.
Further, the UERC has introduced amendments related to grid-interactive rooftop and small solar photovoltaic (PV) plants. The regulations detail technology-specific parameters for determining tariffs for solar PV projects commissioned on or after April 1, 2023. These include specific capital costs, operation and maintenance expenses, and capacity utilization factors for various project sizes.
The amendments also support the installation of rooftop and small solar PV plants by eligible consumers, including domestic users, with capacities of up to 1 MW. The energy generated from these installations will be settled on a net energy basis, allowing consumers to offset their electricity bills with the energy they generate. Additionally, the regulations provide for the virtual net metering framework for domestic consumers and government offices, facilitating broader access to solar energy benefits.
Distribution licensees are required to bear the costs of any necessary system augmentation to connect these solar installations. They are also responsible for facilitating the installation process and ensuring timely completion, including signing connection agreements, installing meters, and commissioning the systems within specified timeframes.
The UERC’s amendments reflect a comprehensive approach to enhancing the state’s renewable energy capacity, supporting sustainable development, and ensuring compliance with national energy policies. By setting clear targets and providing mechanisms for flexibility and support, the Commission aims to foster a robust and resilient renewable energy sector in Uttarakhand.
Please view the document here for more details.
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