Uttar Pradesh Commission Sets Transmission Charge Rebates To Boost Solar Energy Integration

The Uttar Pradesh Electricity Regulatory Commission has recently issued an order that sets out the framework for tariffs and revenue requirements for the state’s power transmission corporation. A key focus of this framework is the integration and promotion of solar energy within the state’s electricity grid. The order refers to the Uttar Pradesh Solar Energy Policy of 2022, which plays an important role in determining intra-state transmission charges, particularly by providing for exemptions and rebates.

According to the policy, the energy eligible for a rebate, which mainly comes from solar sources and other policy-specified sources, is considered when calculating transmission charges. The cost associated with transmission usage for this rebate-eligible energy is added to the Total Transmission System Cost (TTSC). This combined figure results in what is called the Adjusted TTSC. The Adjusted TTSC is then allocated among the various distribution licensees in the state and the Indian Railways. The allocation is done based on their approved Base Transmission Capacity Rights for the respective year.

Distribution licensees and the Indian Railways are required to submit their projected energy procurement on an annual basis to the State Transmission Utility (STU). These projections must include a breakdown of energy procured from solar and non-solar sources. The commission’s order notes that the projected breakdown of total energy for the fiscal year 2025-26 has already been prepared, with separate figures for solar and non-solar sources.

The order also specifies that the rebate on transmission charges applies only to power procured from intra-state generators. The monthly rebate is calculated based on the transmission tariff and in accordance with the policy. Once calculated, the rebate is credited in the monthly transmission charge invoices issued to the distribution licensees and the Indian Railways. This mechanism ensures that the financial benefits of using solar power are passed on to the entities that procure and use it, promoting renewable energy adoption in the state.

Additionally, the order includes a table listing planned solar projects in Uttar Pradesh, reflecting the state’s commitment to expanding its solar energy capacity. This step aligns with broader policy objectives to increase the share of renewable energy in the state’s power mix, reduce dependence on conventional sources, and provide cost benefits to consumers and institutions that utilize solar energy. By linking policy provisions to financial mechanisms like rebates, the commission aims to encourage more entities to integrate solar power into their energy procurement strategies.

Overall, the order provides a structured approach to promoting solar energy within the state, ensuring that transmission charges are fairly adjusted and that the benefits of renewable energy are effectively passed on to distribution licensees and other key stakeholders.