Draft Solar Regulations Jharkhand
Draft Solar Regulations Jharkhand
No. XX--In exercise of the powers conferred by Section 86 (1) (a), (b) and (c)
read with (e), Section 61(a to h), Section 62 (1), Section 63 and Section 181
(1) of the Electricity Act 2003 and all other powers enabling it in this behalf,
the Jharkhand State Electricity Regulatory Commission hereby makes the
following Regulations.
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g) “Day” means a continuous period starting at 00.00 hours and
ending at 24.00 hours;
h) “Distribution Licensee or Discom” means a Licensee authorised
to operate and maintain a distribution system for supplying
electricity to the consumers in his area of supply;
i) ‘Floating solar project’ or ‘FPV’ means a solar PV power project
where the arrays of photovoltaic panels on the structure of the
project float on top of a body of water, such as an artificial basin or
lake, with the help of a floater, anchoring, and mooring system;
j) “Grid” means the high voltage backbone system of inter-connected
transmission lines, sub-stations and generating plants;
k) “Grid Code” shall mean the JSERC (State Grid Code), Regulations,
2008 & its amendment from time to time;
l) “Infrastructure cost” means the cost of auxiliaries, cost of land,
site development charges and other civil works, transportation
charges, cost of evacuation up to interconnection point;
m) ‘Installed capacity' or 'IC’ means the summation of the nameplate
capacities of all the units of the generating station or the capacity of
the generating station (reckoned at the generator terminals). In the
case of Solar PV power projects and Floating solar projects, installed
capacity shall be the sum of nameplate capacities (Nominal AC
power) of the inverters of the project;
n) “Inter-connection Point” means interface point of renewable
energy generating facility with the transmission system or
distribution system, as the case may be;
(i) in relation to Solar PV power projects, Solar hybrid energy
projects and Solar with storage projects, inter-connection
point shall be line isolator on outgoing feeder on HV side of
the pooling substation;
(ii) in relation to Solar thermal power projects the, inter-
connection point shall be line isolator on outgoing feeder on
HV side of generator transformer;
o) “MNRE” means the Ministry of New and Renewable Energy of the
Government of India;
p) “Operation and Maintenance expenses’ or ‘O&M expenses”
means the expenditure incurred on operation and maintenance of
the project, or part thereof, and includes the expenditure on
manpower, repairs, spares, consumables, insurance and overheads;
q) 'Project' means a generating station or an evacuation system up to
an inter-connection point, as the case may be;
r) ‘Renewable energy’ or ‘RE’ means the electricity generated from
renewable energy sources;
s) ‘Solar energy project’ means a generating station that produces
electricity from Solar energy;
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t) ‘Other renewable energy source’ means and includes other
sources of renewable energy such as hydro and wind, including its
integration with combined cycle, biomass, biofuel cogeneration,
urban or municipal waste, and such other sources as recognised or
approved by the MoP/MNRE;
u) ‘Solar with storage project’ means a combination of Solar PV
power project(s) with storage at the same inter-connection point;
v) ‘Solar hybrid energy project’ means a project that produces
electricity from a combination of Solar and renewable energy
sources and/or storage connected at the same inter-connection
point;
w) ‘Solar PV power project’ means a project that uses sunlight for
direct conversion into electricity through photovoltaic technology
and is based on technologies such as crystalline silicon, thin film,
or any other technology as approved by MNRE;
Provided that the canal top based project which has ground
mounted support shall also be considered under Solar PV power
project
x) ‘Solar thermal power project’ means a project that uses sunlight
for direct conversion into electricity through concentrated solar
power technology and is based on line focus or point focus principle;
y) ‘Storage’ means energy storage system utilizing method and
technologies like, solid state batteries, flow batteries, pumped
storage, compressed air, fuel cells, hydrogen storage or any other
technology, to store various forms of energy and to deliver the stored
energy in the form of electricity;
z) ‘Tariff period’ for renewable energy projects will be same as their
Useful Life and tariff period shall be considered from the date of
commercial operation of such power projects.
aa) ‘Useful Life’ in relation to the project, including a dedicated
evacuation system, from the date of commercial operation of such
project, shall mean the following: -
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2.2 All other expressions used herein although not specifically defined herein,
but defined in the Act, shall have the meaning assigned to them in the Act.
The other expressions used herein but not specifically defined in this
Regulation or in the Act but defined under any law passed by the Parliament
applicable to electricity industry in the State shall have the meaning
assigned to them in such law.
3.1 These regulations shall apply to cases where tariff for a grid connected
generating station or a unit thereof commissioned during the Control Period
and based on Renewable energy sources, is to be determined by the
Commission under Section 62 read with Section 86 of the Act.
Provided that in cases of solar PV power projects, floating solar projects,
solar thermal power projects, Solar hybrid energy projects, Solar with
storage projects, these regulations shall apply subject to the fulfilment of
eligibility criteria specified in Regulation A4 of these Regulations.
4.1 Solar PV power project, Floating solar project and Solar thermal power
project – The project is based on technologies approved by MNRE.
4.2 Provided that floating solar projects installed with existing renewable energy
projects other than ground mounted Solar PV projects shall be treated as
Solar hybrid energy projects.
4.3 Solar hybrid energy project – The rated capacity of generation from one
renewable energy source is at least 33% of the total installed capacity of the
Solar hybrid energy project, which operates at the same point of
interconnection: Provided that energy is injected into the grid at the same
interconnection point and metering is done at such a common
interconnection point accordingly.
4.4 Solar with storage project – The Project that uses energy generated from
Solar PV power project to store energy in a storage facility, which is
connected at the same point of interconnection as such Solar PV power
project.
Chapter 1:
General Principles
5.1 The Control Period or Review Period under these Regulations shall last upto
31st March 2028 from the date of publication in Jharkhand gazette
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5.2 Provided that the tariff determined as per these Regulations for the solar
projects commissioned during the Control Period, shall continue to be
applicable for the entire duration of the Tariff Period as specified in
Regulation A6 below.
5.3 Provided further that the revision in Regulations for next Control Period
shall be undertaken six months prior to the end of the first Control Period
and in case Regulations for the next Control Period are not notified until
commencement of next Control Period, the tariff norms as per these
Regulations shall continue to remain applicable until notification of the
revised Regulations subject to adjustments as per revised Regulations.
6.1 The Tariff Period for Projects, eligible under A4 of the regulation, will be
same as their Useful Life as defined in Regulation A2 (2.1) (aa) of these
Regulations.
6.2 Tariff period under these Regulations shall be considered from the date of
commercial operation of the Projects, covered under clause A4 of these
regulations.
6.3 Tariff determined as per these Regulations shall be applicable for Solar
energy power projects, for the duration of the Tariff Period as stipulated
under Clause (6.1) and (6.2).
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(iii) Solar with storage projects;
7.3 Financial and operational norms specified in these regulations, except for
capital cost, shall be the ceiling norms while determining the project specific
tariff.
9.1 The tariff for Projects shall consist of the following components:
(i) Capital Cost;
(ii) Capacity Utilization Factor;
(iii) Auxiliary consumption;
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(iv) Return on equity;
(v) Interest on loan;
(vi) Depreciation;
(vii) Interest on working capital; and
(viii) Operation and Maintenance expenses;
9.2 The subsequent sections detail the terms and conditions of various
components set by the Commission for determination of tariff from the solar
PV and solar thermal power projects.
12.1 Norms for capital cost, as specified in relevant chapters of these regulations,
shall be inclusive of land cost, pre development expenses, all capital work
including plant & machinery, civil work, erection, commissioning, financing
cost, interest during construction and evacuation infrastructure up to an
inter-connection point.
12.2 Provided that for project specific tariff determination, the generating
company shall submit the break-up of capital cost items along with its
petition in the manner specified under Regulation A8.
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A13: DEBT EQUITY RATIO
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13.1 For determination of project specific tariff, the debt-equity ratio shall be
considered as 70:30: Provided that:
(i) The project specific tariffs, where the equity actually deployed is
more than 30% of the capital cost, equity in excess of 30% shall be
treated as a normative loan;
(ii) The project specific tariffs where equity actually deployed is less
than 30% of the capital cost, the actual equity shall be considered
for determination of tariff;
(iii) The equity invested in foreign currency shall be designated in Indian
rupees on the date of each investment;
(iv) The debt-equity ratio shall be considered after deducting the
amount of grant or capital subsidy received for the project for
arriving at the amount of debt and equity; and
(v) The premium, if any, raised by the generating company, while
issuing share capital and investment of internal resources created
out of its free reserve, for the funding of the project, shall be
reckoned as paid up capital for the purpose of computing return on
equity, only if such premium amount and internal resources are
actually utilized for meeting the capital expenditure of the renewable
energy project.
13.2 The project developer shall submit the resolution of the Board of the
company or approval of the competent authority in other cases regarding
the infusion of funds from internal resources in support of the utilization
made or proposed to be made to meet the capital expenditure of the
renewable energy project.
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(iii) For the purpose of computation of tariff, the normative interest rate
of two hundred (250 basis points above the average State Bank of
India Marginal Cost of Funds based Lending Rate (MCLR) (one-year
tenor) prevalent during the last available six months shall be
considered.
(iv) Notwithstanding any moratorium period availed by the project
developer, the repayment of the loan shall be considered from the
first year of commercial operation of the project and shall be equal
to the annual depreciation allowed.
A15: DEPRECIATION
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15.1 The value base for the purpose of depreciation shall be the Capital Cost of
the asset admitted by the Commission. The Salvage value of the asset shall
be considered as 10% and depreciation shall be allowed up to maximum of
90% of the Capital Cost of the asset.
15.2 Depreciation per annum shall be based on ‘Differential Depreciation
Approach' over loan period beyond loan tenure over useful life computed on
Straight Line Method’. The depreciation rate for the first 12 years of the
Tariff Period shall be 5.83% per annum and the remaining depreciation
shall be spread over the remaining useful life of the project from 13th year
onwards.
15.3 Depreciation shall be chargeable from the first year of commercial
operation.
Provided that in case of commercial operation of the asset for part of the
year, depreciation shall be charged on pro rata basis
16.1 The value base for equity shall be as determined under Regulation A13.
16.2 The normative Return on Equity for renewable energy projects other than
Solar with storage projects shall be 14%, and that for the Solar with storage
projects shall be 15%. The normative Return on Equity shall be grossed up
by the latest available notified Minimum Alternate Tax (MAT) rate for the
first 20 years of the Tariff Period and by the latest available notified
Corporate Tax rate for the remaining Tariff Period.
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(i) Operation and Maintenance expenses for one month;
(ii) Receivables equivalent to 45 days of tariff for the sale of electricity
calculated on the Capacity Utilisation Factor or Plant Load Factor,
as the case may be; and
(iii) Maintenance spares equivalent to 15% of Operation and
Maintenance expenses.
17.2 Interest on Working Capital shall be at an interest rate equivalent to the
normative interest rate of three hundred and twenty-five (325) basis points
above the average State Bank of India Marginal Cost of Funds based
Lending Rate (MCLR) (one-year tenor) prevalent during the last available six
months.
18.1 The number of hours in a year for calculation of the capacity utilization
factor and plant load factor, as the case may be, shall be considered as
8766.
19.1 Operation and Maintenance expenses shall be determined for the Tariff
Period of the project based on normative O&M expenses specified in these
regulations for the first year of the Control Period.
19.2 Normative O&M expenses allowed during the first year of the Control
Period, i.e. financial year 2025-26, under these regulations, shall be
escalated at the rate of 5.25% per annum for the Tariff Period.
A20: REBATE
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20.1 For payment of bills of the generating company through revolving and valid
letter of credit on presentation or through National Electronic Fund
Transfer (NEFT) or Real Time Gross Settlement (RTGS) payment mode
within a period of 5 days of presentation of bills, a rebate of 1.5% on bill
amount shall be allowed. Explanation: In case of computation of ’5 days’,
the number of days shall be counted consecutively without considering any
holiday. However, in case the last day or 5th day is an official holiday, the
5th day for the purpose of rebate shall be construed as the immediate
succeeding working day.
20.2 Where payments are made on any day after 5 days within a period of one
month from the date of presentation of bills by the generating company, a
rebate of 1% shall be allowed.
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A21: LATE PAYMENT SURCHARGE
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21.1 In case the payment of any bill for charges payable under these regulations
is delayed beyond a period of 45 days from the date of presentation of bills,
a late payment surcharge as specified in the Ministry of Power - Electricity
(Late Payment Surcharge and Related Matters) Rules, 2022 as amended
from time to time shall be levied by the generating company.
22.1 The Commission shall take into consideration any incentive, grant or
subsidy from the Central or State Government, including accelerated
depreciation benefit, availed by the project while determining the tariff
under these regulations:
22.2 Provided that the following principles shall be considered for ascertaining
income tax benefit on account of accelerated depreciation, if availed, for the
purpose of tariff determination:
(i) Assessment of benefit shall be based on normative capital cost,
accelerated depreciation rate and corporate income tax rate as per
relevant provisions of the Income Tax Act, 1961, as amended from
time to time; and
(ii) Capitalization of renewable energy projects during the second half
of the fiscal year.
(iii) Per unit benefit shall be derived on a levelized basis at a discount
factor equivalent to the weighted average cost of capital.
22.3 Any grant, subsidy or incentive availed by renewable energy project, which
is not considered at the time of determination of tariff, shall be deducted by
the beneficiary in subsequent bills after receipt of such grant, subsidy or
incentive in suitable instalments or within such period as may be stipulated
by the Commission.
22.4 In case the Central or State Government or their agencies provide any
generation- based incentive, which is specifically over and above the tariff,
such incentive shall neither be taken into account while determining the
tariff nor be deducted by the beneficiary in subsequent bills raised by the
particular Renewable energy project.
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Chapter 3:
PARAMETERS FOR Solar PV power projects, Solar thermal power projects
AND Floating solar projects
Chapter 4:
PARAMETERS FOR Solar hybrid energy projects
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the proportion of rated capacity of each renewable energy source, as the
case may be, and applicable capacity utilisation factor for such renewable
energy sources, as the case may be:
29.2 Provided that the minimum capacity utilization factor for Solar hybrid
energy projects shall be 30% when measured at the inter-connection point,
where the energy is injected into the grid.
A31: TARIFF
31.1 The tariff for a Solar hybrid energy project shall be a composite levelised
tariff for the project as a whole by factoring in the tariff components up to
the minimum of the useful life of the RE technologies combined for such
Solar hybrid energy projects:
31.2 Provided that, in case any of the RE technologies combined for the Solar
hybrid energy projects is left with a further useful life, the levelised tariff for
the remaining useful life of such RE technology shall be determined
separately by factoring in the tariff components for the remaining useful
life.
Chapter 5:
PARAMETERS FOR Solar energy with storage project
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34.1 The Commission shall determine only project specific O&M expenses
considering the prevailing market trends.
A35: TARIFF
35.1 The tariff for Solar energy with storage project shall be a composite tariff or
differential tariff based on the time of day, determined for energy supplied
from the Project, including the energy supplied from the storage facility:
35.2 Provided that such tariff may be determined for the supply of power on
round the clock basis or for time periods as agreed by the Project Developer
and Beneficiary.
Chapter 6:
A36: SCHEDULING
36.1 The Solar PV power projects and Solar thermal power projects with installed
capacity of 10 MW and above shall be treated as ‘MUST RUN’ power plants
and shall not be subjected to ‘merit order despatch’ principles.
36.2 Solar PV power projects with capacity of 5 MW and above and connected at
the connection point of 33 KV level and above shall be subjected to
scheduling and despatch code as specified under Central Electricity
Regulatory Commission (Indian Electricity Grid Code) Regulations, 2023,
as amended from time to time.
36.3 However, System operator may instruct the solar generator to back down
generation on consideration of grid security or safety of any equipment or
personnel is endangered and solar generator shall comply with the same.
For this, Data Acquisition System facility shall be provided for transfer of
information to concerned SLDC and RLDC.
36.4 The schedule of solar generation shall be given by the solar generator based
on availability of the generator, weather forecasting, solar insolation, season
and normal solar generation curve and shall be vetted by the RLDC in which
the generator is located and incorporated in the inter-state schedule. If
RLDC is of the opinion that the schedule is not realistic, it may ask the
solar generator to modify the schedule.
36.5 Concerned RLDC and SLDC shall maintain the record of schedule from
renewable power generating stations based on solar from the point of view
of grid security. While scheduling generating stations in a region, system
operator shall aim at utilizing available solar energy fully.
36.6 The despatch principles for electricity generated from Solar PV power
projects shall be as per the provisions of the Central Electricity Regulatory
Commission (Indian Electricity Grid Code) Regulations, 2023, as amended
from time to time, except where specific provision has been made under the
Jharkhand State Electricity Regulatory Commission (State Grid Code)
Regulations, 2008 and its subsequent amendments.
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A37: METERING AND BILLING
37.1 The metering and communication arrangements shall be provided in
accordance with the JSERC (Open Access in Intra-State Transmission and
Distribution) Regulations, 2016 and subsequent amendments thereof, Grid
Code and Central Electricity Authority (Installation and Operation of
Meters) Regulations, 2006 in consultation with Distribution Licensee/State
Transmission Utility. The periodicity of testing, checking, calibration etc.,
will be governed by the Central Electricity Authority (Installation and
Operation of Meters) Regulations, 2006 and regulations issued by the
Commission from time to time in this regard.
37.2 Main and Check Meters shall have facility to communicate its reading to
State Load Dispatch Centre on real time basis or otherwise as may be
specified by the Commission.
37.3 Meter reading shall be taken as per the procedure devised by the
Distribution Licensee/State Load Despatch Centre. The term ‘Meter’ shall
include Current transformers, voltage/potential transformers, wiring
between them and meter box/panel etc.
37.4 Billing of the metered energy shall be carried out on a monthly basis.
Chapter 7:
MISCELLANEOUS
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40.1 Tariff for electricity generated from a generating station based on renewable
energy sources, may also be agreed between the generating company and
beneficiary, in deviation from the norms specified in these regulations:
Provided that the levelized tariff of the project calculated on the basis of the
norms specified in these regulations shall be the ceiling levelized tariff.
A41: GUIDELINES OF COMPETENT AUTHORITY
41.1 Policy/guidelines issued by the Ministry of Power, Government of India,
MNRE, State Government and any other competent authority in this regard
from time to time shall prevail.
A42: POWER TO RELAX.
42.1 The Commission may by general or special order, for reasons to be recorded
in writing, and after giving an opportunity of hearing to the parties likely to
be affected may relax any of the provisions of these regulations on its own
motion or on an application made before it by an interested person.
A43: POWER TO REMOVE DIFFICULTIES
43.1 If any difficulty arises in giving effect to the provisions of these regulations,
the commission may, be general or specific order, make such provisions not
inconsistent with the provisions of the Act, as may appear to be necessary
for removing the difficulty.
A44: POWER TO AMEND
44.1 The Commission may from time to time add, vary, alter, modify or amend
any provisions of these regulations on its own motion or on any application
made before it by an interested person.
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