Indian wind market update

India's wind energy potential estimated at 302 GW

India’s installable wind energy potential has been estimated to be 302 GW with towers of a height of 100 metres. This has been estimated by the National Institute of Wind Energy and the new findings were released in the form of a wind atlas launched by the Minister of State (Independent Charge) Power, Coal and New & Renewable Energy, Piyush Goyal. (Source: Business Line)

Government developing framework for repowering wind farms: Piyush Goyal

With a view to ensure better capacity utilisation of wind energy projects, the Union Power Ministry is developing a framework for repowering wind farms from 200-300 watt units to 2-5 MW that are available in the market, Minister for Power, Coal, and New and Renewable Energy, Piyush Goyal said at an Assocham event held in New Delhi. (Source: The Hindu)

Andhra Pradesh Electricity Regulatory Commission (APERC) Proposes Amendments in Open access regulations & Interim Balancing & Settlement Code

APERC proposed 1^st amendments of APERC (Terms and Conditions of Open Access) Regulation, 2005 (Regulation No.2 of 2005) and IIIrd Amendment of APERC (Interim Balancing and Settlement Code) Regulation, 2006 in the same line of of A.P. Wind Power Policy, 2015 vide G.O.Ms.No.9, dated 13-02-2015.

The major proposed amendments are:

APERC (Term and Conditions of Open Access) (First Amendment) Regulation, 2015       

• Amendments to Para 17.1 of Principal Regulation: Transmission and wheeling charges shall be exempted for wheeling of power generated from Wind Power Projects and for such period as mentioned in Wind Policy for only captive use/third party sale within the State.
•  Amendment to Para 10.6 of Principal Regulation: Provided that in the absence of any response or intimation from the Nodal Agency to the generator within 30 days of closure of a window, then such application shall be considered to be deemed Open Access.

APERC (Interim Balancing and Settlement Code) (Third Amendment) Regulation, 2015.

• Banking allowed during all the 12 months.
• The Energy injected into the grid from Wind Power Projects as as per Wind Policy 2015, from the date of synchronization to the COD shall be considered as deemed banked energy.
• Drawls are subject to the following conditions:
  • The Banking year shall be from April to March.
  • Banking charges shall be in kind @ 2% of the energy delivered at the point of drawl.
  • Drawls from banked energy shall not be permitted during the five (5) month period from 1^st April to 30^th June and 1^st February to 31^st March of each financial year.

MNRE issued National Offshore Wind Energy Policy

India is already among the world's top producers of electricity from windmills on land, with a capacity of more than 23,000 mw, but extending the success to offshore regions has not made much progress so far.

Under the new policy, the ministry for new and renewable energy will be the nodal authority for offshore wind power, while the National Institute of Wind Energy (NIWE) will be the nodal agency to allocate offshore blocks for Wind Energy and coordinate with other ministries.

"The approval paves way for offshore wind energy development, including setting up of offshore wind power projects and research and development activities, in waters, in or adjacent to the country, up to the seaward distance of 200 nautical miles (exclusive economic zone or EEZ of the country) from the base line," a government statement said.

The major findings of the Policy are;

• This policy document is the primary policy decision-making document for offshore wind energy development, including, setting up of offshore wind power projects and research & development activities, in waters, in or adjacent to the country up to the seaward distance of 200 nautical miles (EEZ of the country) from the base line.
• The Research & Development activities would also be carried out up to 200 nautical miles from the base line.
• The policy may support the development of offshore wind energy through fiscal incentives, allowing Foreign Direct Investment (FDI) participation, Public Private Partnership, and international collaborations.
• A preliminary assessment suggests potential to establish around 1 GW capacity wind farm each along the coastline of Rameshwaram and Kanyakumari in Tamil Nadu.
• Ministry of New & Renewable Energy (MNRE) will be the Nodal Ministry for development of Offshore Wind Energy.
• National Institute of Wind Energy (NIWE) will act as the Nodal Agency for the development of offshore wind energy in the country. NIWE will accept applications for Clearances/NOCs from the project developers and coordinate with concerned Ministries/Departments for the Clearances/NOCs.
• Preliminary wind resource assessment, oceanography & bathymetric surveys etc. will be carried out by NIWE for demarcation of offshore wind energy blocks and private players having proven expertise in offshore studies may also be granted permissions for survey on case to case basis.
• NIWE will take in-principle clearance from the Ministries of Defence, Home, External Affairs, Environment & Forests and Department of Space before notifying the offshore wind energy blocks for International Competitive Bidding (ICB) (Stage-I Clearances).
• On allocation of block, the successful bidder/developer will have to take Clearances/NOCs from various Central and State Government Ministries/Departments  as given below (Stage-II Clearances)
  • Ministry of Environment and Forests
  • of Defence
  • Ministry of External Affairs
  • Ministry of Home Affairs
  • Ministry of Civil Aviation
  • Ministry of Petroleum & Natural Gas
  • Ministry of Shipping
  • Department of Space
  • Department of Telecommunication
  • Ministry of Mines
• The certificate for commencement of operation of the Wind farm shall be issued by NIWE.
• The security of the offshore wind energy installations will be responsibility of the developer/operator who must carry out a vulnerability assessment.

Maharashtra Electricity Regulatory Commission (MERC): Draft Distribution Open Access Regulation 2015

MERC has notified draft Distribution Open Access Regulations 2015. Some of the points related to renewable energy are mentioned below.

Banking for RE

As per the proposed regulations yearly banking will be allowed from April – March. Credit for banked energy shall not be permitted during the months of October, November and March, and the credit for energy banked in other months shall be as per the energy injected in respective TOD slots determined by the Commission in the relevant Orders determining the Tariffs of the Distribution Licensees.

Banking charges shall be adjusted in kind @ 2% of the energy delivered at the point of drawal.

The unutilised banked energy at the end of the financial year shall be considered as deemed purchase by the Distribution Licensee at its Pooled Cost of Power Purchase for that year:

Provided that such deemed purchase may be counted towards the Renewable Purchase Obligation of the Distribution Licensee, at its option, in which case the Generating Station would not be entitled to Renewable Energy Certificates to that extent.

Cross-Subsidy Surcharge for RE

For purchase of power from a renewable source of energy, the Cross-Subsidy Surcharge shall be 25% of the Charge stipulated by the Commission for an Open Access Consumer, or Licensee purchasing power from conventional sources.

Scheduling

Renewable Energy generating plants identified as ‘non-firm power’ under the Commission’s Regulations governing Renewable Energy Tariff shall be exempted from scheduling till such time as the Commission stipulates or specifies otherwise.

Settlement of deviations from schedule

Shall not be applicable in case an Open Access consumer obtains supply from a Renewable Energy Generating Station identified as ‘non firm power’ by the Commission in its Regulations governing the Tariff for Renewable Energy.

Grant of Connectivity

Non-refundable fee of 1 Lakhs for RE compared to a normal fee of 2 lakhs.

Bank Guarantee:

A Bank Guarantee, in favour of the Nodal Agency, for the following amounts,  or such other amounts as  may be stipulated by the Commission, shall accompany the Application