Energy Deviation Settlement Guidelines & Solar Energy Banking Update

MP. NO. 22(Energy Deviation Settlement Guidelines)

The adjustment of energy at the consumer end based on actual energy injected by the generator/seller will not be appropriate and therefore, the Commission withdraws the earlier instruction issued to the TANGEDCO/TANTRANSCO vide Lr.No. TNERC/D/E/DDEI/F.DVSM /D. No. 423 /2024, dt. 27.03.2024 and decides that adjustment of energy at the user end based on the scheduled energy given by the generator.

Deviation volume limit for the generators will be applicable as per the existing TNERC (Deviation Settlement Mechanism and related matters) Regulations, 2019;

Order:

Deviation volume limit for the generators will be applicable as per the existing TNERC (Deviation Settlement Mechanism and related matters) Regulations, 2019;

The Scheduled generation by the Generator/seller available at the consumer end shall be considered for adjustment with the consumption at the consumer end. If the consumer consumes more than the scheduled generation (excluding losses in kind) by the generator, the consumer shall be charged at the appropriate tariff rates of the respective category for the consumption over and above the scheduled energy by the generator as per the Tariff orders issued by the Commission from time to time.

Further, if the consumer consumes over and above his sanctioned demand, penal levy shall be made as per the Supply Code/tariff orders issued by the Commission from time to time. The under consumption by the consumer over the scheduled generation by the generator will get lapsed.

At the generator end, the generator shall be charged / paid deviation charges in respect of under injection/over injection made over the scheduled generation as per the TNERC (Deviation Settlement Mechanism and related matters) Regulations, 2019 without any cap limit in order to protect the grid stability, grid security and the interest of all the stakeholders.

Regarding adjustment of energy at the consumer end, energy accounting shall be done in 15 minutes time block basis. Block wise/day wise scheduled generation/purchase shall be adjusted against the same block wise/day wise consumption. The surplus energy, if any, available after adjustment in the respective same 15 minutes time block basis will be lapsed and the consumer will be charged at appropriate tariff rate for any over drawal over the scheduled generation by the generators.

           

This order will be applicable with effect from 01-04-2024, i.e. date of implementation of TNERC (Deviation settlement mechanism and related matters) Regulations, 2019 as ordered by the Commission vide Order No. 1 of 2024, dated 22-01-2024. The commission also directs that the billing software for adjustment of energy at the consumer end for block wise/day wise generation against block wise/day wise consumption shall be made ready within 6 months from the date of issue of this order. Till such time, adjustment of energy at the consumer end shall be made as per the relevant tariff orders issued by the Commission from time to time.

 

 

As the concept of Deviation Settlement Mechanism is being implemented in the State of Tamil Nadu is in the initial phase, for the first time, the Commission may revisit the TNERC (Deviation settlement mechanism and related matters) Regulations, 2019 after obtaining the feedback on post implementation issues.

 

Order Link: Click Here

 

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MP. NO. 23(Solar Energy Banking Update)

There is no stay granted by any of the courts to the 2024 Regulations and its implementation procedure initiated by the Commission.

As per the Order No. 8 of 2020 dated 07-10-2020 issued by the Commission for procurement of wind power and related issues, the distribution licensee shall make block wise adjustment of energy once the deviation settlement mechanism is implemented.

Energy banked can be adjusted during any block period other than peak hour blocks during the banking cycle. In the case of the Pumped Storage System/Battery Energy Storage System (BESS), energy injected can be adjusted in any time block including peak hour blocks.

 

Commission also directs that the billing software for adjustment of energy at the consumer end for block wise/day wise generation against block wise/day wise consumption shall be made ready within 6 months from the date of issue of this order. Till such time, adjustment of energy at the consumer end shall be made as per the relevant tariff orders issued by the Commission from time to time.

 

The Commission in its order No. 8 of 2020 dated 07-10-2020 issued for procurement of wind power and related issues had decided to allow the banking period of 12 months (from 1st April to 31st March) for the WEGs commissioned on or before 31-03-2018 along with the banking charges of 14% in kind. For the WEGs commissioned on or after 01-04-2018 under normal or under REC scheme, the facility of banking of energy shall be for a period of one month and there shall be no banking charges. Further, the Commission had decided that there shall be no facility of banking of energy for 3rd party power purchase.

The un-utilised surplus banked energy at the end of the banking cycle shall be sold to the Distribution Licensee at the rate of 75% of respective RE tariffs applicable as per the orders of the Commission and where no tariff is determined, at 75% of the latest discovered bid tariff, for normal RE generators. If there are more than one tariffs discovered through bidding process, the weighted average tariff shall be considered for payment.

 

Order:

 

Regarding solar generation, the banking period is continued to be one month billing period without any banking charges till banking charges are fixed by the Commission under proposed Green Energy Open Access (GEOA) Regulations.

 

In respect of solar generation, the credit for banked energy shall not be permitted to be carried forward to subsequent months and the credit for energy banked during the month shall be adjusted during the same month as per the energy injected in the respective time block. As stated already, energy banked can be adjusted during any block period other than peak hour blocks during the banking cycle. In the case of the Pumped Storage System/Battery Energy Storage System (BESS), energy injected can be adjusted in any time block including peak hour blocks.

 

The un-utilised surplus banked energy at the end of the banking cycle shall be sold to the Distribution Licensee at the rate of 75% of respective RE tariffs applicable as per the orders of the Commission and where no tariff is determined, at 75% of the latest discovered bid tariff, for normal RE generators. If there are more than one tariffs discovered through bidding process, the weighted average tariff shall be considered for payment. For the RE generators under REC scheme, the excess generation/unutilized banked energy at the end of the banking cycle may be encashed at the rate of 75% of the Average Pooled Cost of Power Purchase (APPC) for the respective financial year notified by the Commission under the TNERC (Renewable Energy Purchase Obligations) Regulations. When the Average Pooled cost of Power Purchase (APPC) of the Distribution Licensee exceeds the preferential rate fixed by the Commission to that category/sub-category of RE generators for the corresponding year, 75% of the preferential tariff rate fixed by the Commission for the respective year of commissioning of RE generators shall be paid. 

Order Link: Click Here

 

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