Akademik Lomonosov floating

nuclear power plant

https://www.academia.edu/45089411/
Conservation_Voltage_Reduction?auto=download&emai
l_work_card=download-paper

Existing power plant barge at the Gowanus

generating station in Brooklyn
2
Changes in Power Delivery

3
 World’s biggest battery bound for NSW

The proposed battery will have up to 1200MW total capacity- 30 Years

Lease Hunter Eco Zone.
NSW battery would be the largest asset in planned network of four grid-
scale batteries across the country, with total capacity up to 2000MW.

Changes in Power Delivery

4
Video: Large
Solar Farm Video: Solar Panel
Cleaning

Video:
Transmission
Video :Smart Metering in India Tower
Installation

5
 5. Additional roles for National Load Dispatch Centre

• The ministry of power had in August emphasized for a strict payment mechanism by
electricity distributions companies, as payment delay led to operational and
financial issues for the generating companies.
NLDC to stop scheduling and dispatch of electricity in the absence of adequate
payment security by the obligated party

i. Amendment provides additional roles to the National Load Dispatch Centre that
include scheduling and dispatch of power across the country in accordance with
contracts.

ii. Bill Proposes no schedule or dispatch of electricity unless there is adequate

security of payment as per the contract. 9
 Electricity Tariff Ottawa Canada

Effective date Off-peak price (¢ Mid-peak On-peak

per kWh) price (¢ per price (¢ per
kWh) kWh)

Feb 8, 2022 8.2 11.3 17.0

Jan 18, 2022 8.2 8.2 8.2

Nov 1, 2021 8.2 11.3 17.0

May 1, 2021 8.2 11.3 17.0

 Electricity Tariffs in Sydney Australia 29.7.2022
sumo $1,288 15% less Variable Rates
sumo Freedom $1,314 13% less Variable Rates
AGL Value Saver $1,376 9% less Variable Rates
Red Energy Qantas Red Saver $1,465 3% less Variable Rates
Red Energy Living Energy Saver $1,465 3% less Fixed Rates
Red Energy Red Taronga Flex $1,465 3% less Variable Rates
Diamond Energy Everyday Renewable Saver $1,512 0% Variable Rates
Energy Locals Online Member 2022 GREEN $1,935 9% less Variable Rates
COMPANY
Dodo Power $1,307 13% less Variable Rates
Energy Locals Local Member $1,965 7% less Variable Rates
GREEN COMPANY

Typical prices for households with a general usage of 3900 kWh yearly on a single rate tariff.
Green Power Technologies- हरित ऊर्जा
Renewable Energy Trading -व्यापार अक्षय ऊर्ाा का
Renewable Purchase Obligations ( RPOs) दाययत्व अक्षय खरीद
Renewable Generation Obligations (RGOs) दाययत्व अक्षय उत्पादन का
Power Sector Transience to a Powerful, Resilient & Sustainable Future
Robust and Future-Ready Power Sector

Dr YP Chawla -Ex. Advisor JERC Ministry of Power, Sr Research

Fellow IIIT –Pune and a Visiting Faculty- Business Schools ;
[email protected]; +91-98107-08707 (Only WhatsApp
Calls and Messages) Time Difference: IST + 4:30 Hrs 14
Regulatory Framework on Carbon Markets in India
To meet India’s commitment to exceed its Paris agreement climate targets, the Centre plans to table
the Energy Conservation (Amendment) Bill 2022.
• About
• The Energy Conservation (Amendment) Bill seeks to increase India’s demand for renewable energy,
thereby reducing the nation’s carbon emissions.
• The Bill proposes to amend the Electricity Conservation Act 2001, last amended in 2010, to introduce
changes such as incentivising the use of clean energy by issuing carbon saving certificates.
• The proposed changes:
• Defining the minimum share of renewable energy to be consumed by industrial units or any
establishment. This consumption may be done directly from a renewable energy source or indirectly
via the power grid.
• Incentivising efforts to use clean energy by issuing carbon saving certificates
• Strengthening institutions set up originally under the Act, such as the Bureau of Energy Efficiency
• Facilitating the promotion of green Hydrogen as an alternative to the fossil fuels used by industries
• Considering additional incentives like carbon credits for the use of clean energy to lure the private
sector to climate action.
• Including larger residential buildings under energy conservation standards to promote sustainable
habitats. Currently, only large industries and their buildings come under the ambit of the Act.
• Objective of proposed amendments:
• The main objective of these proposed amendments is to reduce
India’s power consumption via fossil fuels and thereby minimize the
nation’s carbon footprint.
• The Centre aims to develop India’s Carbon market and boost
the adoption of clean technology.
• India aims to meet its Nationally Determined Contributions (NDCs),
as mentioned in the Paris Climate Agreement, before its 2030 target
date.
Energy Conservation Act 2001 is going to get amended (The Energy Conservation (Amendment) Bill, 2022) ,
hopefully during this Parliament’s monsoon session in India.

Energy Conservation (Amendment) Bill, 2022, which seeks to provide regulatory framework for Carbon Trading
in India, to encourage penetration of renewables in energy mix, and effective implementation and enforcement
of the Energy Conservation Act.

India’s climate change commitments

India has committed to reducing the carbon intensity of its economy by 33-35 per cent by 2030 from its 2005 levels as part
of its NDCs under the Paris Climate Agreement.
The nation has also promised to achieve over 40 per cent of its power generation from non-fossil-fuel energy resources by
2030.
In a bid to reduce its CO2 emissions to 550 metric tonnes (Mt) by 2030, India has committed to creating an additional
carbon sink for 2.5 -3 billion tonnes of CO2 by increasing its tree and forest cover.
India’s five new climate targets are:
To increase its non-fossil energy capacity to 500 GW by 2030
To meet 50 per cent of India’s power demand via renewable energy sources
To reduce the carbon intensity of the Indian economy by 45 per cent
To reduce India’s total projected carbon emissions by one billion tonnes from 2021 to 2030
To achieve a target net zero (for carbon emissions) by 2070
Network Distribution- Changing Profile

19
• AI in Generation

• AI in Transmission

• AI in Distribution
20
Decarbonization is mission-critical for the planet

The global energy landscape will change more in the next 10 years than in the previous hundred.
As the world’s energy sector moves away from fossil fuels toward renewable energy sources, I
Industrial companies are challenged with addressing this transition in transformative ways.
 Solving the energy transition trilemma

1. Reliable Energy Transition

As the industry converts to cleaner energy and variable
renewable sources like wind and solar become more
available, utilities must balance the power mix to ensure
electricity is available when and where it's needed.

2. Sustainable Energy Transition

GE and an increasing number of our
customers are committed to combating
climate change and reducing greenhouse gas
emissions while meeting industrial and
consumer demand for clean, reliable energy.
3 Affordable Energy Transition
The global demand for power is estimated to grow by 50%
by 2040, which means it’s imperative that energy is
affordable, even in a more complex and dynamic
environment.
Australia
• New Technologies
Tracking the sun ( Solar on Water Bodies)

Altitude Tracking
Solar +
Battery

At
Commercial
Business
Level

32
Source : World Bank RETHINKING POWER SECTOR REFORM IN THE DEVELOPING WORLD
New Technologies- Hydrogen - an energy vector or energy
carrier, rather than a true fuel
• Green Hydrogen- In 2020, Japan and Saudi Arabia unveiled the two largest green
hydrogen plants in the world, using solar and wind to power the electrolysis
process used to create hydrogen. UK’s largest electrolyser were announced in
2021, enabling the production of up to eight tonnes of green hydrogen daily.
• So what’s changed this time around? What is New
• Producing and distributing hydrogen comes with all kinds of challenges – and
there was a time when overcoming these was not worth the effort.
https://visme.co/blog/climate-change-facts/
 WHY IS GRID INTEGRATION AN IMPORTANT TOPIC?

Trends:
• Increasing energy demand Urbanization
• Climate change mitigation targets
• Need for grid modernization
Every power system has characteristics that
promote and inhibit integration of variable RE

Grid integration is the practice of developing

efficient ways to deliver high penetration
levels of variable RE to the grid
Source : “Renewable Energy Futures
INTEGRATING WIND AND SOLAR ENERGY RESOURCES REQUIRES AN EVOLUTION IN
POWER SYSTEM PLANNING

RE is variable, uncertain, and geographically dispersed

…raising new considerations for grid planning and
operations

Balancing requires more flexibility

Existing thermal assets used less frequently, affecting
cost recovery

More reserves
More transmission, better planning needed
Voltage control, inertia response come at added cost
 KEY LINKS BETWEEN VARIABLE RENEWABLE ENERGY,
POWER SYSTEM PROPERTIES

Non Frequency an Voltage

Required Power System

Synchronous Response
VRE Properties

Location

Properties
1. Voltage Control
Constrained 2. Transmission Capacity

Variability Flexibility

1. Flexibility
Uncertainty 2. Firm Capacity
 FREQUENTLY USED OPTIONS TO INCREASE FLEXIBILITY
• Numerous options
for increasing
flexibility are
Low capital cost options,
but may require significant available in any
changes to the institutional power system.
context • Flexibility reflects
not just physical
systems, but also
institutional
frameworks.
• The cost of
flexibility options
varies, but
institutional changes
may be among the
least expensive.
IMPACTS OF VRE GENERATED POWER AT VARIOUS TIME SCALES AND THE RELEVANT FLEXIBILITY SOLUTIONS
10 s ec … 1m in … 10 m in … 30 m in … 1 hour … 1 day … days …Time

Regulation Balancing Unit Com m itment

SYSTEM
Load following
OPERATIONS
Frequency s tability is s ues Increas ed need Increas ed cycling,
to high Rate of Change of for operating Increas ed net increas ed challenges to
Frequency res erves load ram ps dis patch inflexible units
VRE IMPACTS
Pooling of res ources
Intra-day m arket Co-optim ized hydro-therm al unit
com m itm ent
Im proved VRE forecas ting Operational flexibility

Dem and Res ponse EVs Power-to-Gas

Power-to Heat
Demand side flexibility Sector coupling

Retrofitting units , new flexible units

Synthetic inertia Down regulation by VRE
Geographic dis persion of VRE Supply side flexibility

Flywheels Batteries Pum ped Hydro

Electricity storage SOLUTIONS

Power system flexibility is the ability of a power system to reliably and cost-effectively … manage the
Renewable Integration in Generation
SYSTEM OPERATION-FASTER DISPATCH TO REDUCE EXPENSIVE RESERVES

Hourly dispatch and interchanges Sub-hourly dispatch

Source: NREL

Dispatch decisions closer to real-time (e.g., intraday scheduling adjustments; short gate closure) reduce uncertainty.
RENEWABLE INTEGRATION - OPTIONS & PILOT PROJECT IN INDIA

THE JOURNEY OF REFORMS

 RE? CAN GRIDS SUPPORT HIGH LEVELS (>20-
30% ANNUALLY ) OF VARIABLE
Country % Electricity from Wind Balancing
(Generation)
Denmark 47% in 2019 Interconnection, Flexible
Generation and good market
Portugal 27% in 2020 Interconnection to Spain, Gas,
Hydro and good market
Spain 21% in 2019 Gas Hydro and Good Market

Ireland 33% in 2019 Gas Hydro and Good Market

Many grids are operating with 20%–30% variable renewables.

Their experiences demonstrate that actions taken to integrate wind and solar are
unique to each system, but do follow broad principles.
 KEY TAKEAWAYS FOR RE INTEGRATION
• Wind and solar generation increase variability
and uncertainty
• Actual operating experiences from around the world have shown up to
39% annual penetrations are possible
• Often most the cost effective changes to the power system are
institutional (changes to system operations and market designs)
• Specific back-up generation is not required, but
additional reserves may be necessary
• Specific detailed analyses will help identify the most cost effective
measures to integrate RE in each power system
Solar Regulations roll down a Red Carpet in Seeking Green Technologies for its Blue
Economies. Let the Project developers propose a project with Energy Storage Solution to
replace Diesel Power Generation.

54
Ultra-high voltage transmission lines like this one in Anhui province are considered vital to the energy transition. They enable
the abundant renewable energy in China’s western provinces to connect with the power grids of populous coastal provinces
(Image: Alamy) Ref https://chinadialogue.net/en/energy/chinas-new-power-market-reforms-accelerate-energy-transition/
Reddy Kilowatt made his
first published appearance
on March 14, 1926
 https://8billiontrees.com/carbon-offsets-credits/

Scope 1 covers direct emissions from owned or controlled sources. Scope 2 covers indirect emissions from
the generation of purchased electricity, steam, heating and cooling consumed by the reporting company.
Scope 3 includes all other indirect emissions that occur in a company's value chain.
https://8billiontrees.com/carbon-offsets-credits/carbon-ecological-footprint-calculators/food/
Different mechanisms ensure that individuals and institutions can reduce their carbon footprints and environmental
impacts, like Renewable Energy Certificates (RECs) and carbon offset tree planting credits.

Although these mechanisms might sound like pretty much the same thing, many people wonder what is the
difference between renewable energy credits vs carbon offset credits?

RECs allow for the purchase of green electricity… but do not offer any guarantee that carbon emissions are avoided.
Carbon offsets, on the other hand, represent carbon emissions reduction or removals via different projects.

But how exactly do these mechanisms aid those interested in adopting a more environmentally-friendly lifestyle…
and how do updates in 2022 impact their effectiveness?
 What is your Carbon Foot Print
https://8billiontrees.com/carbon-calculator/

Many People Want to Know “What Is My Environmental Footprint?”

Calculating your footprint and understanding your ecological footprint
are crucial steps in lowering your carbon emissions.
It means taking responsibility for the ecological impact your daily life is having–the ecological footprint
we’re all contributing to. It’s a nasty consequence of modern life. T
o paint a clearer picture, the following list is only a handful of the many carbon-emitting processes some take
for granted in our daily lives:
Transportation (Car fuel is one of the biggest contributors to our climate crisis.)
Flights and Air Travel
Construction
Access to Water
Electricity
Natural Gas
Food and Goods
Medical Care
Internet (Did you know that sending emails and texts also creates a carbon footprint?)
NATIONAL PORTAL FOR (RPO)- Background
The Government of India’s Policy initiatives have led to a tremendous growth and
development of renewable energy (RE) sector in the country.

MNRE, Government of India, along with all the State Nodal Agencies (SNAs) have already
taken appropriate policy initiatives for achieving the target of 175 GW of renewable energy by
2022, with solar capacity of 100 GW.

India communicated its Intended Nationally Determined Contributions (INDCs) to the United
Nations Framework Convention on Climate Change (UNFCCC) committing amongst others,
mainly to reduce the emissions intensity of its GDP by 33 to 35 percent by 2030 from 2005
level and to achieve about 40 percent cumulative electric power installed capacity from non-
fossil fuel based energy resources by 2030.

https://rpo.gov.in/Home/Objective
Objectives - NATIONAL PORTAL FOR (RPO
•To establish a centralized monitoring mechanism for RPO compliance through a web-based portal for all states
and Union territories

•To enlist obligated entities and assess their RPO compliance

•To ease-out the process of monitoring the RE transactions of obligated entities

•To develop database which would become a tool for SERCs to audit RPO compliance

•To enhance transparency in RPO compliance process

•Create user interfaces for obligated entities to provide data on RE purchase

•Create user interfaces for monitoring agencies to cross-verify the data provided by obligated entities

•Prepare database for the system and analytics modules to analyze the effectiveness of the RPO regulations in
the states
In India and in Many other Countries power utilities are required to purchase or generate renewable solar
power.

These requirements are called solar carve-outs.

Moreover, many countries have a Renewable Portfolio Standard (RPS), which requires power services to
create a certain amount of renewable power that increases every year.

These RPS requirements are a significant driver of the Renewable Energy Certificate trades. A power
company may purchase these certificates from the homeowner to meet the state's renewable
requirement.
https://ec.europa.eu/eurostat/statistics-
explained/index.php?title=Renewable_energy_
statistics
Ref: Florence school of Regulations EU-India 6th Summit 20.6.2022
What Is a Renewable Energy Certificate (REC)?
Renewable Energy Certificates (RECs) are a market-based instrument that certifies the bearer owns
one megawatt-hour (MWh) and provide proof that the ownership of electricity generated from
a renewable energy resource. The certificate accounts for the amount of renewable energy that flows
through the power grid.

Once the power provider has fed the energy into the grid and not utilized for own use, the REC
received can then be sold on the open market as an energy commodity.

RECs earned may be sold for a price, can eventually be sold for profit , for example, to other entities
that are polluting as a carbon credit to offset their emissions and are moving towards Net Zero
Compliance to those looking to offset their carbon emissions, or speculators betting on the value of
energy credits.

REC swaps consist of trading RECs to profit from the disparity between the buy and sell price;
because many states have varying RPS standards, this increases opportunities to swap.

RECs can go by other names, including Green Tags, Tradable Renewable Certificates (TRCs),
Renewable Electricity Certificates, or Renewable Energy Credits.
How Renewable Energy Certificates Work
• A Renewable Energy Certificate (REC) acts as an accounting or tracking
mechanism for solar, wind, and other green energies as they flow into the power
grid.
• Since electricity generated from renewable energy sources is indistinguishable
from that produced by any other source, some form of tracking is required.

• This accounting and returning energy to the grid is necessary because electricity
is difficult and expensive to store in batteries as of now.
• So, most renewable-generated power, which is unused by the creator, is fed back
into the power grid for use by other customers.
• The provider of renewable electricity, such as a homeowner with rooftop solar
panels, will then receive a REC. Energy Certificates can be sold, but can also
typically be used as a credit against their own power usage.
What is RPO?
Under Section 86(1) (e) of the Electricity Act 2003 ("EA 2003") and the National Tariff Policy 2006, Renewable
purchase obligation (RPO), is a mechanism by which the obligated entities are obliged to purchase certain
percentage of electricity from Renewable Energy sources, as a percentage of the total consumption of electricity
• REC arbitrage is also called a REC swap. These trades involve the near-simultaneous
buying and selling of RECs with differing prices. Traders attempt to profit from the
disparity between the buy and sell price.
• For example, State A has a higher Renewable Portfolio Standard (RPS) requirement and
solar-carve outs than State B has. The higher requirement drives demand for the price of
Renewable Energy Certificates (RECs) in state A.
• The state A provider, who must meet the higher requirements would, therefore, have an
incentive to purchase less expensive state B certificates. The provider may then use
these credits to meet their requirements.
• Renewable Energy Certificates (RECs) are always the same one megawatt-hour (MWh) of
electricity, regardless of where production happened. However, the price may vary due
to supply and demand. In practice, broker intermediaries typically facilitate REC
arbitrage, but the market allows renewable energy providers to economize on energy
production, as well as reduce carbon emissions by encouraging more green energy
production.
• Looking for New Ways to Invest?
• If you are a player in the financial markets You can Diversify your portfolio
with alternative investments. Whether you’re looking to increase capital gains or offset
market volatility

• RECs have a validity.

https://www.oecd.org/coronavi
rus/policy-responses/building-
back-better-a-sustainable-
resilient-recovery-after-covid-
19-52b869f5/
 5%

95%

Incredibly light, energy-dense by mass, three times higher than diesel

75 million tons of H2 produced /year, ~ 284 GW of power but only < 0.1% is being used
Power generation capabilities useful to energy-intensive industries like iron, steel,
chemicals, refining, mining and cement. Power the activities on-site with fossil fuel-powered furnaces.
• Using hydrogen to power fuel cells -Hydrogen in e-fuels
• Applications in off-grid power systems
H2 Industry Characteristics
• Transform H2 into electricity, synthetic gas, synthetic diesel, or even “hydrogen carriers” such as methanol or
ammonia. Opening up a range of fuel options for the needs of project and site
• We’re not quite at the finish line yet. Lot more investment in infrastructure will be needed before hydrogen is
fully viable for substantial off-grid applications.
• Challenges?
• Make H2 practical to use, compress it to extremely high pressures or liquefy ( cooling it to -250°C). Creating
challenges for hydrogen storage and transportation, very expensive.
• Not yet possible to simply tap into a hydrogen pipeline like natural gas.
• H2 is a tiny molecule, it’s leak-prone. Investment in special provisions to ensuring existing pipelines and other
infrastructure for compatibility with H2.
• H2 -wide flammability range in air (approximately 4% to 75%) and low ignition energy. Burns with a colourless
flame , hard to detect until one gets close. Extremely care handling H2.
• Production costs vary widely. $0.90 per kg through reforming natural gas, not fixing the carbon emissions
problem. Green H2 costs significantly more. More investment and innovation needed to bring these costs down
and make green H2 feasible.
• Contingent on hydrogen production becoming a political priority. The political will to succeed.
• Maximising spare capacity of renewables- Falling cost of renewable electricity Final thoughts: The clock is
EU Parliament has declared climate emergency
 A2030 scenario aligned with EU decarbonisation in 2050

Source : Connecting the dots: Distribution grid investment to power the energy transition
Creation of a competitive wholesale power market including that of RE
Market-based reforms, privatization and elimination of cross subsidization might promote positive
competition and improve quality of electricity supply,
India’s energy future rests on four pillars – Energy Access, Energy Efficiency, Energy
Sustainability and Energy Security.
An integrated National Market would help in solving the price differences, give opportunities of
economies of scale and help in revising the power sector subsidies.

This requires combined efforts of legislative reforms and promotion of R&D for technological
improvement in power supply.
Investigate the role of Artificial Intelligence (AI) in detecting the transmission and distribution losses.

Promoting transparent inter-state and intra-state trading of electricity at viable market prices,
Smart grids and meters are some of the measures which would help in improving both physical and
digital infrastructure.
India’s continued efforts in bringing reformative measures for the upgrading of its electricity network
and incorporation of RE capacity in the power infrastructure.

As the grid gets smarter, increased demand for AI solutions to manage the complexity of operations, Enabling
greener operations in implementing predictive maintenance of solar and wind arrays.
 Hype Hope
Sustainable Development Goals (SDG), Delivering
energy access. Both the energy and emission
intensities of India’s gross domestic product (GDP)
have decreased by more than 20% over the past
decade.
Commendable progress even as total energy-related carbon dioxide (CO2) emissions
continue to rise. India’s per capita emissions today are 1.6 tonnes of CO2, well below
the global average of 4.4 tonnes, while its share of global total CO2 emissions is some
6.4%.

Recent IEA analysis India’s investment in solar PV was greater than in all fossil fuel
sources of electricity generation together

However, Real progress on the ground has so far been limited, with the deadline for
the enforcement of stringent air pollution standards for thermal power plants pushed
back from 2017 to 2021/22. Working on Round the clock Power from Renewables

India’s Energy planning to take into account the water–energy nexus

Towards more robust energy data and policy governance 87
https://www.ibef.org/industr
y/renewable-energy
 As economy grows, electricity consumption is projected
to reach 15.280 TWh in 2040 from 4926 TWh in 2012.
Most Demand will come from real estate and transport
sectors .RE will account for 55 % of the total installed
power capacity by 2030
RE received FDI in-flow of U$$ 9.22 bn between
April 2000 and March 2020. By 2028, India can
see renewable energy investment worth U$$
500 billion.
Government plans to establish renewable
energy capacity of 500 GW by 2030.
GoI ramped up its previous target to achieve
225 GW of renewable energy capacity by 2022.
.
India ranked 4th in wind power, 5th in solar power
and 5th in renewable power installed capacity -
https://www.i 2018. Ranked 3rd - EY Renewable Energy Country
bef.org/indust
ry/renewable- Attractive Index 2019. India has one of the lowest 89
energy.aspx
capital costs / MW for PV plants
90
91
 Power sector’s Sustainability through tariff reforms, industry
involvement and innovative business models and Transition to a Resilient
and a Profitable Future of Power Sector
Cost of Supply -Determining actual cost of supplying ( Cos) power to consumers category for cost reflective tariff
design by shifting to voltage/category-wise from Average CoS
Competitive Cost of Supply by Optimizing buildup in the value chain from Generation to Distribution.
Simplifying tariff structures and rationalizing these to reflect cost of supply across consumer categories
balancing the needs of all stakeholders and ensuring sector’s financial viability. Avoiding multiple and complex
tariff structures, high cross-subsidies, lack of embedded progressivity within consumption categories, etc. Clean
construct of tariff designed based on purpose of use and voltage levels
Framework for measuring ability to pay and quantifying costs of power outages for residential consumers and
competitive for industry and commerce, while maximizing quality of service.
Trading of PPAs
Disruptions for reduced dependency of customers on conventional grid, stiff competition from smaller power
players, innovative distribution channels, and changing government regulations for impacted segments of the
energy value chain.
Behind the meter segments- value shifting

92
 Take Aways And
for you from Now Over to You
this presentation - For Actions

• Awareness: Compulsions of Decarbonized / Renewable Energy : Action All of us

• Desire: Encourage or motivating factors to help arresting the Climate change ; Action All of us
• Knowledge: knowledgebase on how to contribute to making our planet Decarbonised
Action All of us
• Ability: Helping build our Skills, expertise, and attitude towards bringing change Action RECIPMT
• Reinforcement: Implement and sustain new processes Action RECIPMT

93
Action : All of US

94
But I have
a Question
!!

95
 96
Ref : PwC
 97
Ref : PwC
 98
Ref : PwC
 99
Ref : PwC
 100
Ref : PwC
 101
Ref : PwC
 102
Ref : PwC
 103
Ref : PwC
104
105
106
107
 Categorization for actual reflection of cost; voltage wise cost of supply
before transitioning to category-wise cost under a mature system of data

Harmonization &
Standardization
collection
ERP system to capture and allocate costs while Fixed Asset Register (FAR)
for linking /funding under a Govt. sponsored scheme
Regulatory accounting standards ensuring reconciliation with statutory
statements to avoid negative implications to the utility
Regulatory Assets related to the past must be treated as a part of tariff but
not of CoS framework
Capacity building for carrying out technical studies;
Important to decouple load research/demand forecasting studies from
Strengthening
Institutional

tariff determination;
Capacity building for Commission to review and validate the technical study
and data provided for CoS
Negative impact on quality as Commissions with contractual staff and
staffing and dependent on government discretion;
Separate Regulatory cadre may be created for effective working of ERC
Benchmark

Develop additional forms and formats for capturing the information for CoS
Templates

Necessity of accounts and reconciliation formats for Regulatory Accounts

&

and Statutory Accounts,

Central database repository of utility wise/ state wise benchmarks 108
Time for Electricity Tariff Reforms and National Electricity Tariff Policy
• Power Sector value chain in India has seen significant reforms, after the dawn of the
Electricity Act, 2003 and with amendments proposed. Renewed focus on efficiency,
encouraging competition and transparency to ensure availability of power at
reasonable prices.
• Empowering the consumer with a right of getting 24x7 power. Reduce the AT&C
losses to 15% and then to 10% in three years.
• Two-way metering, smart metering and prepaid metering at consumer end.
• Crediting the subsidized consumers direct into bank accounts and seeks to have two-
part pricing.
• Power Sector as most critical segment for economy to turn around, resulting in
holistic change in the fate of the complete Power value chain.

109
Indian Smart Grid Forum +IITK working on a Block chain Project for UP
Blockchain beyond the hype: Has a strategic business value

110
111
 Smarter Distribution- a necessity
• Rs 1 lakh crore worth of electricity not billed, Smart Metering is the
solution: EESL
• The billing efficiency of the power sector as a while is about 83 per cent,
which means that 17 per cent of the energy sold is never billed.
• Nearly 1,300 BUs was used last year and 17 per cent of this is around 200
BUs of electricity @ avg Rs 5.00 / Kwh= 1 Lakh Crs.
•

112
 AI application in utilities…….
Utilities industry-a great potential to embrace artificial intelligence
• Load forecasting. Short-term load forecasts are vital for utilities. Machine learning
could be used to forecast supply and demand in real time and optimize economic
load dispatch.
• Yield optimization. Optimize generation efficiency with real-time adjustments
across their assets
• Predictive maintenance with drones trained for asset inspections using deep
learning algorithms to automatically identify defects and predict failures without
interrupting operations, replacing time intensive and risky manual inspections. ( A
step towards Zero Breakdown) Transformers, Solar Fields
• Demand management can be automated and made smarter with machine learning.
Upside Energy UK uses machine learning to manage a portfolio of storage assets to
support the grid,
Open Energi controls devices with flexibility in their energy consumption to shift
demand in real time. Estimated that machine learning could help unlock up to 6GW of
demand-side flexibility which can be shifted during the evening peak without affecting
end users.
• Energy theft - Kundi Connection, AI detects usage patterns, payment history, and
other customer data to signal irregular behavior.
113
 With So much of Solar Power Coming up
Thermal imaging in Solar Farms by AI
•Anomalies detected thru high resolution thermal images, where naked eye fails
•Drones help with a thermal camera scan solar panels during normal operation
•Scan large areas with short time frame
•Potential problem areas can be detected and repaired
•Geo tagging - localize faulty modules easily in large areas
Speed of inspection time is greatly improved
Safety of personnel improves in the case of elevated arrays
Avoid Costly Mistakes
•Single malfunctioning cell compromises the entire system causing economic damage
•Effective system maintenance required for Optimal performance and better RoI

114
 ………AI application in utilities
Retail side, AI unleashes market forces as well as transform the user experience:
• Customer insights. Machine learning applications could allow utilities to craft
electricity prices that maximize their margins while minimizing customer churn.
• AI could be used to create individual offers and services to help utilities retain their
most profitable customers ( Not Yet in India where DISCOM change is not an
Option)
• Energy trading. Prosumer generating their own renewable energy and sending the
excess back into the grid, platforms are emerging to allow peer-to-peer trading
between producers and consumers. As supply and demand continuously fluctuate, AI
can be used to more quickly match producers with consumers.
• Virtual agents - revolutionized call centers Plus Natural language technologies
unlocking the capacity to fully automate customer service.
• Supplier selection (DISCOM)- Not yet in India (Wire and Content Business)
• Consumption insights

AI can deliver real value to serious adopters, but current uptake outside of the tech
sector remains low 115
116
AI has the Answer

117
AI Answers

118
Before we get into the working for the Sustainable Development Let’s
understand our Future of Work which has changed, so are the jobs
REC Institute of Power Management &
Training (REC IPMT) takes over a role of
Sharing knowledge with Professionals for
understanding the Skill Gaps by
Updating, Educating , Empowering and
for Elevation
Disconnect-Talent Supply and Demand
Now the Future of Higher Skills High
Universities is yet to be Skills
Shortage
decided ,and Skills - Demand
- Growth
What the Future Universities Tension
be like
Low
Skills
Supply-
Unemplo
yment
Skills - Supply 119
Lower Skills
Talent Cloud is the Government of Canada's experimental new hiring
platform for project-based or "gig" employment.

RECIPMT can create a Talent

Pool for various Utilities

120
• RECIPMT has the answer for Training
• RECIPMT is filling the Void of
Future University

121
 Future of Work
Sl Attributes Implications
• AI and Automation Rapid • Leaner Organization
infusion • Employment Recovery-
• Rebound in Global Demand Slow and Gradual
Digital
• Recovery Disruptions by • Talent Pool localized but
solutions to
1 Public Health, Political or for offshore work Global
Social
Official dislocations Talent
Distancing
• Innovation in Work Practices • Workforce Planning
Paradigms revision

• Widespread COVID practices • Digitalized World

• Changed Business Models • High Skills-Huge demand
with reduced human • Job Content level
interventions rewrite
Touch less
2 • Business Failure by • Pre-COVID Work place
Growth
Attenuations assembly- not likely
• Credential Proliferations • Working relations
Change
122
Work from Home ( WFH)
Work from Anywhere (WFA)
123
Enabling Provision
Tracking the sun

Altitude Tracking 126

Virtual Power Line
Virtual Transmission
 Akademik Lomonosov floating
nuclear power plant

https://www.academia.edu/45089411/
Conservation_Voltage_Reduction?auto=download&emai
l_work_card=download-paper

Existing power plant barge at the Gowanus

generating station in Brooklyn
132
Changes in Power Delivery

133
 World’s biggest battery bound for NSW

The proposed battery will have up to 1200MW total capacity- 30 Years

Lease Hunter Eco Zone.
NSW battery would be the largest asset in planned network of four grid-
scale batteries across the country, with total capacity up to 2000MW.

Changes in Power Delivery

134
Nitrogen
• “Post Covid-19, hydrogen has gained momentum and it is given priority in the green
recovery or sustainable energy plan in
• Australia, Canada, China, Germany, Japan, South Korea, Spain and USA.
• European Union recently issued a Hydrogen Strategy for a Climate-Neutral Europe.
• Spain also approved a Hydrogen Roadmap while one in Canada is expected soon.
• Germany fixed a target of 5 GW of electrolysers by 2030 and another 5 GW by 2040.

135
 Future of Work
Sl Attributes Implications
• Reluctance to Optional • High Skills in demand
interactions
• Accelerated evolution in • White Collared job-
demand and Customer disruptions
Disruptions On
3 expectations patterns • Premiums on Reskill /
Going
• Labour market flexibility- Upskilling (BoS to act)
Politically inhibited • Work processes Significant
• Working Relationships - Change
multiform
• Accelerated Deployment of 5 • New challenges for
G Workforce engagement
• Enabling Technologies- and alignment
Significant Innovation • Globalization to grow
4 New Paradigms
• Protectionism (Globalization) • Work practices –Flexible
impeded Politically • Talent Management-
• Inter-Enterprise Boundaries Significant Change
Blurred
136
 Impact COVID-19
Shifted Perceptions on Home Energy Use and Behaviors of Consumers ( survey in USA)
1. Half of all homeowners are concerned about energy bill affordability during
lockdown
• 33 % respondents- concerned about their energy use
• 55 percent % -at least somewhat concerned
• 25% -very concerned ( though the total is > 100%)
2. Homeowners - more interested in solar and energy storage
• 33% interested in Energy Saving
• 66% attempting Energy Saving
• 20% interested in Solar and Energy Storage
3. Sensitive to an energy-related issue in their home during the pandemic such as
discomfort, high energy bills, or poor indoor air quality
• 60% rspondents in discomfort due to high energy bill
• 33% become more sensitive to the issue of comfort/ discomfort - in their homes,
creating potential opportunities for energy companies to craft thoughtful solutions
and messaging around weatherization programs, energy storage, heat pumps, and
137
smart home technologies, as well as (safely executed) home energy assessments.
 ………….Impact COVID-19

4. Had energy-related home improvement project plans prior to the pandemic still plan
to complete their project this year, if they haven’t already.
• 75% will go in for energy related home improvement
• 26 % - Planning an energy-related home improvement project
Sights set on improving energy usage in their home are determined to get that done
this year. The most popular project either completed or planned? Weatherization,
followed by remodels.
5. Concern about having contractors in their home in the age of COVID-19, no matter
which type of safety precautions are taken.
20 % Respondents would like contractors to wear masks and gloves at all times while
also respecting social distancing guidelines (six foot separation between contractors
and customers).
Participants also noted that they would want contractors to clean and disinfect their
equipment and the area of the home undergoing work.

138
 Just a side Information ……
11 JUL 2020
NTPC Singrauli Exhibits exceptional operational efficiency
NTPC Singrauli Unit 1, has emerged as the top-performing Unit in the country
in the first quarter of the financial year, as per the data released by Central
Electricity Authority (CEA).
NTPC Singrauli is the oldest Unit and a flagship power station of NTPC Ltd.
Unit-1 started generating on February 13, 1982
Three units (1,4 & 5) of 200 MW have achieved PLF of 101.96%, 101.85% &
100.35% respectively in Q1 FY 20-21 among the Coal-fired Units, in the
country.
16.July 2020 NTPC Ltd, & National Investment and Infrastructure Fund
(NIIF), acting through National Investment and Infrastructure Fund
Limited (NIIFL), signed an MOU to explore opportunities for
investments in areas like renewable energy, power distribution
NTPC has 62110 MW, ( 70 Power stations) comprising of 24 Coal, 7
combined cycle Gas/Liquid Fuel, 1 Hydro, 13 Renewables along with 25
Subsidiary & JV Power Stations 139
Video: Large
Solar Farm Video: Solar Panel
Cleaning

Video:
Transmission
Video :Smart Metering in India Tower
Installation

140
Smart charging - a charging system where electric vehicles, charging stations and
charging operators share data connections. The charging stations may monitor,
manage, and restrict the use of charging devices to optimize energy consumption.
Smart charging as compared to uncontrolled charging, will flatten the electricity
usage peak by shifting the peak due to vehicle charging away from the peak due to
other consumption. 141
142
Both of these have impact on Power Sector 143
144
 Draft Amendment to EA
Object of Amendment
• Clause 2 of the statement of objects and reasons Bill of 2020
provides as under:

• “Electricity is one of the most critical components of

infrastructure which is essential for sustained growth of the
Indian economy and welfare of nations.
• The 2003 Act have brought in huge direct investments, public
private partnerships, market development, transparent tariff
mechanism etc.; which have enables several reforms, laws and
regulations, multifarious contracts and complex disputes. But
the electricity sector is seized with few critical issues which
have weakened the commercial and investment activities in the
electricity sector that needs to be addressed immediately to
ensure sustainable growth of the country.
• It has been felt that the few provisions of the Act are unable to
cope with the rapid development of the electricity.”
145
The power ministry has come up with a draft Electricity Amendment Bill, 2020,
which is the fourth draft of the Electricity (Amendment) Bill since 2014.

1. General
i. The amendments seek to remove the regulatory shortcomings , being
experienced in the functioning of the sector and to bring in investment and ease
of doing business in the power sector

ii. Provides for cross (power) border trade shall cover import or export of
electricity from India and any other country.

iii. Transactions related to passage of electricity through India would be treated as

transit between two other countries.

iv. Enables state as well as central power regulators to specify transmission charges
under open access. Earlier, both functions were with the central commission.

v. Renewable sector, the draft bill proposes to bring National Renewable Energy
Policy and may bring in a minimum percentage of the purchase for the 146
states from renewable sources.
 1. History and Compulsions of Amendments to EA
• Since year 2003 series of amendments have been made in the principal Act.
The amendments were both substantive and procedural.

• However, the latest amendment touches the basic regulatory and dispute
resolution structure under the Act.

• One of the objectives of the proposed amendment is to create a novel

dispute resolution forum ( about 1000 Cases are pending at APTEL, 375
resolved. i.e. 3-1/2 Years of Work pending , Needs about 7 benches)

Understood about 500-600 Stakeholders have been commented. Most common are
attempted to be covered over here.

India projecting itself as a preferred destination for FDI in Power Sector and other
sectors
Electricity is a public good as Social Responsibility and a Commercial Good for
Economic Growth ( rebooting the Economy after Pandemic Recession )
147
Kick-starting the RE deployment.
 Stakeholders’ Analysis of EA and Expectations
• S 26 Compliance of directions ( Govt.)
• S 62 Tariff Determination- Change of law Formula based as in CERC (Investors)
• S 62(1d) Determining Tariff without accounting for subsidy to be paid as DBT as in S 65
• S79 (1) f Functions of Central Commission (Govt.)
• S86 1 a Powers of the State Electricity Regulatory Commission ( Govt.)
• S111 Appeal to Appellate Tribunal-Condoning of delay in filing appeal. 45 days+ no capping
Respondent being public body) - (Investors)
• S 112 Composition of Appellate Tribunal (similar for ECEA)- (Govt.)
• S121 Power of Chairperson of Appellate Tribunal (Govt.)
• S 158 Arbitration ( Investors)
• Dispute Resolution- Quick disposal, Avoiding overlap of Regulatory and Adjudication. Role of
Dispute Resolution should include Tariff and Non Tariff Related –all)- (Investors)
• Discoms have intent for Disputes rather than Dispute Resolution and intend drag case up to
Supreme Court, contract enforcement to Supreme Court( Investor)
• Flow of Money even after Dispute is resolved ( due to appeals…Payment up to say 50 to 75%, like
in ED 20% IT 15% ) (Investors)
• Investor’s Plea ? Financial Institutions worry: Due to delays in Cash flow the Return on Equity is
working out to be (-) 5% , For PSUs it is 11.% Weighted Avg is 5.5%. Fis are getting their EMIs. It is
Liquidity Issue for the Investors in addition to PLN. Risk is not bearable. Issue of Concern to the
Foreign Investors ( several hundred of crores is locked up in the disputes). (Investors and Financial
Institutions)
• ERCs sympathy to Discoms as they have no money incl. for Rs 9,735 crore are pending for
renewable power generators (Investors)
148
• RE investments – challenges Investments not forthcoming due to uncertainties
(Investors)
• Adjudication body to be independent like Telecom- Foreign investors are happy
(Investors)
• Capacity Building of ERCs and APTEL- qualitatively and quantitatively to clear
backlog. Judicial, Technical and understanding of Economical impacts (Investors)
• Cost of delay in payments get loaded to Tariffs (Investors)
• Investors unable to payback load due to their delayed receipts . Tariffs are based on 2
months payables for Working capital basis, in actual 4-5 Months min. 11 months
general, Delayed payments are sadistic pleasure, Deep rooted in DISCOMs system
(Financial Institutions).
• National Company Law Tribunal (NCLT) cases will reduce for many projects on sale
shelf from 1-3 Crs/ MW with no guarantee of return (Financial Institutions).
• Even after imported coal prices(70%, 30% blend) no solution for 3 months( Investors)
• Govt announced 90,000 Crs for Discoms now they have to pay additional interest Fis
not consulted (Financial Institutions)
• Open access and Net Metering to stay with ERC ( Govt.)
149
• 10 July 2020 In a setback to Tata Power Mundra, Adani Power and Essar Power,
the Gujarat government has gone back on its earlier decision to revise power
purchase agreements (PPA), totalling 7,180 megawatt (Mw).
• According to state government sources, the earlier resolution allowing these
developers to charge higher tariffs, “now stands cancelled”. It will now sign
supplemental PPAs with these units on a “case-by-case basis” over and above the
existing PPAs. ( Investors are discouraged).
• These issues add inefficiencies to the Power Sector. To make world class economy,
India needs world class Power Sector. 17% Discom bills remain unbilled due to
delayed billing because of Smart Metering absence. Power Sector has more of
Political solution and distancing from Distribution sector. A project takes 7 Years from
planning to commissioning, 5-6 years from ordering to commissioning, 3-4 Years in
construction. Corrections are required now (Govt.)
• Concept of Cost of Power Supply for Tariff is being introduced under S 61 (g) “….that
the tariff progressively, reflects the cost of supply of electricity, and also, reduces and
eliminates cross-subsidies within the period to be specified by the Appropriate
Commission; “ ( Govt)
• Flue Gas Desulfurization (FGD) investments likely to add 20 to 50 P/kwh ( Govt)

150
• Privatization of Discoms / Franchise route- Starting with UTs is easier. DNH has split
Transmission and Distn.
• Distn Privatization is important for sustainabilty. Discoms are not in a hurry to push
privatization.
• Direct Benefit Transfer (DBT) like LPG is a good step but Tenant. Ownership and related
papers for subsidy could be a challenge (Consumers)
• Unviable Power Sector could lead us to Candle era Poor health of Discoms does not
allow Discom to handle damages of Cyclones. (Govt.)
• Base Capacity increase not envisaged up to 2024-25, Addl. Capacity thru RE ( Govt)
• Provisional Tariffs be issues if FGD is yet to come ref: SASAN ( Investor)
• Consultation Paper on FGD under issue by CERC ( Govt.)
• More Investments not likely as Power Sector is a black hole ( Investors)
• Discoms are still informally attached to state Govt., Political agenda disturbs viability.
• Agriculture ( Political) a big burden on Power Sector and figures are inflated
(Consumers)
• Franchise if introduced, will be for difficult area. Start with at least 1/3 of State( Govt)
• Power Surplus is a Myth- (Industry)
• Enforcement is important ( Investor)
• Merit Order is not Strictly enforced (Fis) 151
• Demand is about 1/3rd of Global demand.
• Affordability will make it important and Because of Universal Access demand will be met
if Payment is made.
• PPAs are not linked to Coal Mine
• PLFs of 50% is not healthy for Power Sector ( Investor)
• Losses of Discoms should be taken over by Govt. AT&C losses are on rise again, touching
about 23%. ( Investors)
• Liquidity Scheme is a part time concept not a solution, Prudential Norms reqd. (FI)
• Distancing of Govt from Discoms ( Investors)
• Consumer Forums are required to be educated ( Govt.)
• Intent is to get the Discoms back on track and Post COVID reboot the Industry

152
153
• Missing Definitions: ‘Tariff’, ‘Point of supply’, ‘Single point connection’, ‘Bulk supply
tariff’, ‘Merchant capacity’, ‘Village electrification’, ‘Household electrification’,
‘Renewable Energy’, ‘Net metering’, ‘Cogeneration’, ‘Storage’, ‘Energy banking’,
‘Must-run status’, ‘Renewable Energy Certificate’ are widely used in the Act and
associated rules and policies but are not defined in this specific Act leading to
multiple interpretations. All such terms to be clearly defined in the Act.

154
Delhi has increased the fixed charges and reduced variable charges

155
 Suggestion Share of Solar PV required in different states and the financial
status of Discoms in them.

156
 Other Suggestions Touched
• Subsidy provision and accountability
• Renewable Energy Promotion: Addition of section 3A for inclusion of a National
Renewable Energy Policy . What happens to the existing schemes and policies and
how will the state consultations be reflected in the final policy ?
• Distribution franchise and sub-licensee to not require any separate license from the
State Electricity Regulatory Commissions. Amendment of section 14 A new section
can be added mandating a Regulatory Impact Assessment study of existing sub-
licensee and franchise models operating in India (eg. Bhiwandi). Provisions can be
added in the new section regarding strengthening the consumer rights and
grievance redressal mechanisms in the distribution circles operating under franchise
or sub-licensee model.
• Amendment of sections 26- Empowering National Load Dispatch Centre-
• Phase-wise implementation of direct transfer of subsidy
• Reporting of subsidy payments..
• Cross-subsidy and associated surcharge
• Cross-subsidy reduction trajectory to be specified by SERCs
• Need to delink surcharge from cross-subsidy, remove additional surcharge
157
• Levy surcharge on new captive consumers
 …………………Other Suggestions Touched
• Legal framework towards level playing field for different generators and retail
competition
• Need to re-visit policy for stand-alone systems
• Re-assess need for RGO and bundling of thermal power with RE given potential risks
• Regulatory Functioning
• Selection process for ERCs
• Alternative procedures for timely filling-up of vacancies
• Powers of the Commission to make regulations
• Qualifications for appointment of members of ERCs
• Revoking formation of Electricity Contracts Enforcement Authority (ECEA)
• Review of ERCs by Forum of Regulators
• Strengthening of APTEL
• Consumer Protection
• Public hearing for crucial regulatory processes
158
 …………………Other Suggestions Touched
• Leveraging technology to improve quality of supply and service
• Addressing issues faced by a group of consumers
• Mandatory appointment of consumer representatives
• Clear differentiation between theft and un-authorised use of electricity
• Electricity Safety
• Consumer access to APTEL
• Data, public accountability and transparency
• Powers of CEA to require statistics and returns
• Increased accountability of crucial processes.
• Institutionalising a market monitoring committee

159
2. Electricity Contract Enforcement Authority
(ECEA)
Regulator Vs. Adjudicator
Centralization of the selection process for
Regulator and Adjudicator wings
A new part (Part XA) proposed in the principal act (Electricity Act, 2003) giving
details of establishment, composition, terms, and conditions, procedures and
powers, the functioning of ECEA. (Section 109 A to 109 N) and Definition under
Section 24 (a)
• Growing disputes among generators and licensee over the deferred payment of
contracted charges ( Trigger :Change in Law on Taxes, Imported Coal Costs –
DNH case decided by CERC on GST as change in Law but case drags on- 2years.
Coal Pass through- Change in Law SC, Tangenco case.. )
• Expected to improve confidence among investors, especially foreign investors for
establishing ease of doing business required for infrastructure up-gradation for
its growing energy consumption and future energy demands.
• PMO is not expected to interfere on delays of adjudication but delays are happening
Private Investments in Power Sector: 47% and 50 GW of Thermal Non Performing
Assets (NPAs ) in India) has 40% in Power Sector. Regulatory Issues, Power is Flowing
160
without flow of money
 …………2. Electricity Contract Enforcement Authority (ECEA)
• SERCs , CERC & APTEL are expert bodies looking after the intra and inter-state issues
of the power sector with limited legal support. Long pendency of cases is the motive
behind ECEA set up. Obligated party deferred the payments or even challenged the
tariff agreed. Andhra Challenges Solar PPA Tariffs

• ECEA will work in parallel with existing ERC’s but exclusively for adjudicating the
matters regarding the specific performance of contracts related to purchasing or
sale of power between a generating company and a licensee or between licensees.
i. Seeks to set up an ECEA, having the power of a civil court and the sole authority
to settle disputes related to power purchase agreement between Discoms and
Gencos.

ii. ECEA will deal with the issues of non-performance of contracts leading to
uncertainty and upsetting of investment decisions and ease of doing business in
the power sector.

iii. Decision of the ECEA can be challenged at the Appellate Tribunal For Electricity
161
(APTEL) and subsequently, at the Supreme Court.
 …………2. Electricity Contract Enforcement Authority (ECEA)
• Arbitration in disputes is an expensive route Takes about 18 Mths. No Arbitration
Institute, Adjudication is better ( Investors)
• Subsection (2) of the newly proposed section 109K empowers the chairperson of
ECEA to transfer any pending case before one bench to any other bench for disposal.
• Investors are looking for quick dispute resolutions. ECEA is quasi judicial. ERC are not.
• Adjudication and Regulatory matters to stay independent for faster resolution.
• Issues even if resolved the some Discoms are Litigant nature try avoiding payments
by going to appeals on the advise of Political masters
• SERCs are sometime biased because of appointing authority.
• Issues like Tariff indicated in PPA should be honored. Taxes if changed should be
under Change of Law.
• ECEA should not be overloaded ( Investors)
• There might be situations when the cases need to be transferred, however, it is not
clear and for what reasons the transfer should be done? The delays in dispute
resolution can be reduced if the number of transfers should be capped for each
case. Adding proviso explaining the conditions under which transfer should be done
(or not done) will strengthen the policy document and avoid any legal conflict that 162
may arise in the future.
• 109 A (2) : Notwithstanding anything contained in this Act or any other law in force,
the Electricity Contract Enforcement Authority shall have the sole authority and
jurisdiction to adjudicate upon matters regarding performance of obligations under a
contract related to sale, purchase or transmission of electricity, provided that it shall
not have any jurisdiction over any matter related to regulation or determination of
tariff or any dispute involving tariff.”

• ECEA set up required to Boost investors’ confidence in Indian Power Sector.

163
 3. Sub-licensing and franchisee models
i. Most Indian electricity Discoms are run by states and many
are under financial stress despite many reforms brought in by
the central government.

ii. Draft proposes to privatise discoms by way of sub-licensing

and franchisee models, which would not require a separate
licence from the state commission.

iii. Sub-licensing will allow states to choose a private company

for the distribution of electricity supply of a particular area to
help it bring down losses of both electricity and finances.

164
4. Subsidy not to be provisioned in tariffs
• Currently, the state regulators adjust many costs for future recovery which includes
subsidy commitment which eventually increases electricity tariff, resulting in
weakening of the financial health of discoms.

i. Bill proposes to restrict postponing of revenue recovery and reduction in cross-

subsidy to bring in a cost-reflective, simplified tariff.

ii. Amendment proposes to allow states to grant subsidy but without provisioning
it in the tariff determined by the state regulators.

iii. States/ UTs have to grant subsidy through a Direct Benefit Transfer (DBT) for the
consumers it plans to give relief.
(proposes some of the courageous policy interventions like DBT (Direct Benefit
Transfer)

165
 5. Additional roles for National Load Dispatch Centre

• The ministry of power had in August emphasized for a strict payment mechanism by
electricity distributions companies, as payment delay led to operational and
financial issues for the generating companies.
NLDC to stop scheduling and dispatch of electricity in the absence of adequate
payment security by the obligated party

i. Amendment provides additional roles to the National Load Dispatch Centre that
include scheduling and dispatch of power across the country in accordance with
contracts.

ii. Bill Proposes no schedule or dispatch of electricity unless there is adequate

security of payment as per the contract. 166
Virtual meeting of energy ministers of all states on July 3 to discuss the Bill 2020
with Union Energy Minister and only half-hour time has been allowed for
discussions The states had expressed their views on the bill during a state
energy ministers' conference chaired by Power Minister R K Singh on July
3, 2020.

167
 Issues / Reactions of Various Stake holders

• Union Ministry of Power notified the Draft Electricity (Amendment) Bill 2020 on 17th
April, and sought comments from stakeholders within 21 days.
• Stakeholders are apprehensive over various proposals of the bill,
a. Setting up another tribunal (EECA) for settling power disputes
b. introduction of a franchisee system for power distribution among other issues.
c. Grant subsidies, without provisioning for it in the tariff determined by the state
regulators. Experts caution that this would affect state-sponsored power
subsidies:
• to the agriculture and
• domestic sector.

Setting up of ERCs by Central Govt. (earlier by State )

Till 9th July 11 States and 1 UT has commented and some Professional Bodies
Kerala, Telangana, Tamilnadu, Andhra Pradesh, West Bengal, Jharkhand, Bihar,
Maharashtra, Chhattisgarh, Rajasthan and Punjab.
The union territory, which opposed the bill, is Puducherry
168
 Major Stakeholders who have Reacted :
• Telangana: subsidies and the privatisation of power distribution.
• All India Power Engineers’ Federation (AIPEF)- PadamJit Singh Chief Patron:
 giving payment security to private companies to enable them to profit, without
regard for the State distribution companies
• Discom privatisation, introduced as back door ( that similar experiments failed at Nagpur,
Ujjain, Bihar and Agra.
• power sector is a victim of repeated experimentation -tampering with the Statute, with clear
intent to help private parties to profit, while driving State Discoms into financial collapse
• urgency to push for the bill amidst a lockdown
• More difficulties in settling legal disputes, another tribunal (EECA)
• Electricity - a concurrent subject under the Constitution of India, the draft must be referred to
the Standing Committee of Parliament on energy, giving states adequate hearing opportunity
and also for Associations and Trade unions and consumers to submit their objections.

Independent Bloggers
Changes in the Draft may look as administration only (DBT) but going to affect a larger section of
society.
Deep Dive is required into the provisions to ensure minimum disturbance to social life due to
restructuring the power sector
Expertise needed to regulate the matters suggested for the ECEA is already available with existing regulatory
bodies. Hence it is not clear as to what is the rationale behind introducing altogether new regulatory body 169
 …………Major Stakeholders who have Reacted :

• Existing ERCs can be empowered to handle the matters by providing legal legitimacy
and other necessary support.
• Doing so would also avoid additional administrative expenses embodied with the
new regulatory authority
• NLDC & SLDC powers to stop scheduling in the absence of Payment security may
give birth to new implementation problems. Most of the obligated parties –Discoms
facing multifaceted problems are under severe financial burden due to inefficient
revenue collections, locked-in payments agreed in long-term PPAs, delays in grants
by governments, etc. The solution has to be multifaceted too, not like the one
proposed in the draft. (No specific Suggestion given)
• If Discom fails to secure the payment and faces load shedding due to power
shortage, that will fuel the financial loss cycle also impacting the local economy.
Despite the availability of electricity in the national grid. Provision needs revision by
factoring-in Discom’s financial conditions. ( How not suggested)
• State governments, being benevolent declare subsidies for vulnerable sections of
society. For the Power sector, residential and agricultural consumers are provided
subsidies by cross-subsidizing commercial and industrial consumers through tariff
orders. It could be challenging for the State Govt.s
170
 ……………..Major Stakeholders who have Reacted :
• DBT schemes being exclusionary in nature. These schems identify the whole set of
beneficiaries as defaulters and then try to filter out based on certain identification
criteria and link it with a benefits transfer mechanism.
• Punjab has objected to the proposal of doing away with free power to farmers and
replacing it with the direct benefit scheme.
• DBT is detrimental to poor consumers. Paying bills in advance and wait for the
subsidy will not be possible for many consumers

• Electricity is largest and almost universal consumer base compared to other energy
sources.
• High possibility of exclusion of the most vulnerable groups of society during
implementation. Like exclusion of people from the Public Distribution System (PDS)
schemes because of failed authentication in Biometrics, Adhaar.
• Implementation guidelines of DBT need scrutiny to avoid any unintended outcomes.
• Amendment mandates governments to begin such DBT schemes promptly.
• Alternative to the DBT scheme is embed the subsidy component in the tariff. This
Requires changes in tariff design and its judicious implementation ensuring its
profound social impact. 171
 ……………..Major Stakeholders who have Reacted :

• Rajasthan has termed the proposed Electricity (Amendment) Bill, 2020 against the
spirit of the Constitution and
contradictory to the decentralization of power for States in view of its emphasis on
the center’s control of the power sector despite its inclusion in the concurrent list
• Shiromany Akali Dal proposed Bill prohibits states from giving subsidies and cross
subsidies which was a 'direct attack' on the constitutional right of the state
governments to help vulnerable sections of society.
• many ongoing welfare schemes which provide subsidized power or free power to
different sections of society would be adversely affected.
• once it divests subsidized and free power from various sections of society including
Scheduled Castes, underprivileged sections and farmers
• states would have to deposit payment for purchase of power in advance following
which power would be given to the buyer.
• 'This is likely to cause great hardship to states which are revenue deficient besides
resulting in the burden being passed on to the consumer,' the SAD president said.
• 'The Bill, if passed in its present form, will take away the power of the state
governments to appoint chairman and members of the State Electricity Regulatory
Commissions,' he said.
172
 ……………..Major Stakeholders who have Reacted :

• He also said how the proposed Bill would also 'adversely affect' the distribution and
transmission companies established by various states as per their respective
Electricity Acts.
• He said the Bill proposed to give power to the generation companies to appoint
their own distribution and transmission franchisees without taking any permission
from the State regulatory authorities.

• has the propensity to cause social unrest once

• unitary in nature that will rob the states of their autonomy
• Jharkhand Chief Minister-issues of power distribution in parts of Jharkhand and
DVC. "The proposed draft should ensure that the interests of backward states are
protected

173
 ……………..Major Stakeholders who have Reacted :

• Maharashtra said the bill was violative of the constitutional mandate and
undermined the federal structure
• Bihar said since power is in the concurrent list, the states' consent is
required before making any amendment regarding policy matters.

• Clarification in respect of whether the purchase of REC by a person to fulfill

shortfall of the target capacity is treated as capacity fulfillment under this
subsection or not is required to be mentioned.
• Silence on the Provisions for the Electric Vehicles (EV) sector which is in the
nuance stage in the country at present. Strengthening legal support to EV’s
and charging stations is missing
• The area of dispute(s) arising out of or incidental to the matter related to
regulation or determination of Tariff may lead to possible overlap of
jurisdictions between ERCs and ECEA because here are circumstances where
one dispute has several limbs and one limb may enter into Tariff area and
other may remain in determination of contractual obligations of parties.

174
 ……………..Major Stakeholders who have Reacted :
• Bihar is not in favour of the privatization of power distribution companies.
• AIPEF, Rajasthan has termed the proposed Electricity (Amendment) Bill,
2020 against the spirit of the Constitution and contradictory to the decentralization
of power for States.
• Bengal, in its representation, said the new amendments to the Act are an
“infringement of sovereignty of the state
• Tamil Nadu has opposed the provisions of the direct benefit transfer scheme (DBT),
privatization/franchise, and renewal purchase obligation
• Kerala said that the privatization of the power sector will not be their agenda
• AIPEF power sector threaten to violate long-cherished principles of federalism
• Telangana opposes Electricity Amendment Bill, says it’s detrimental to farmers
and some sections of the domestic power consumers. The small domestic
consumers and the farmers would have to forego their power subsidy being provided
by the State government, if the Bill was adopted by Parliament, Reddy added. Reddy
also stated that the Bill was usurping the States’ rights and trying to take control over
power sector.

175
……………..Major Stakeholders who have Reacted :

• Interaction between Maharastra and Union Minister

• liquidity infusion up to Rs 90,000 crore for Discoms was being given under a
package announced by the Central Government recently for losses up to
March 31, 2020. The Union Minister said that against this demand of Rs
93,000 crore received from States/UTs and an amount of Rs 20,000 crore
had been approved, while the remaining demands were being processed
expeditiously
• Maharashtra State Electricity Distribution Company Limited (MSEDCL) had
suffered losses due to the COVID-19 outbreak and asked the Centre for a Rs
10,000 crore grant.
• He said grants should be released for the Pradhan Mantri Kisan Urja
Suraksha evam Utthan (PM-KUSUM) scheme under which the state
government will provide 1 lakh pumps per year to farmers over the next
five years

176
 ……………..Major Stakeholders who have Reacted :

• The farmers in the Lohian block on Monday staged a huge

protest at the Dana Mandi against the three ordinances and
the proposed Electricity Amendment Bill by the Modi
government. Terming these as steps that will land a heavy
blow on farming as an occupation in the country, hundreds of
farmers from Jalandhar, Kapurthala congregated to mark their
demands at the Lohian Khas.
• the farmers, both men and women, farm labourers and
activists condemned the move towards privatisation
• central government to force the state discoms to purchase
high-cost hydro energy under the disguise of RPO (Renewable
Purchase obligation).

177
• Possible Critique : Scope of Rethink
• The new adjudicatory forum is stated to be seated at New Delhi with six
members without any immediate provision of establishment of any Circuit or
regular benches all across the Country. The stress of adjuratory work and
cases pending before all the 26 ERCs may not be able to be contained by
single Forum, ie, ECEA. Adding to the problem is the difficulty of approach to
litigant/complainant/claimant as also the generating/transmission/
distribution companies, licensees and sub-licensees, as capital of the country
– New Delhi may still be “Too Far” for many situated at faraway places in the
Country which has length and breadth of 3214 and 2933 kms.
• without simultaneously creating PAN India infrastructure for various regional
benches of ECEA signposts hurried and hasty approach of the Government,
which will ultimately create a stalemate to the adjudication process in the
entire country for significant time period. This in-turn would affect the
industry and power sector on the whole with the problems of increase in
pendency of cases and non-determination of urgent issues thus, adversely
affecting the sector on the whole

178
• in place of introducing so many distinctions in the
jurisdictions and creating a completely novel mechanism of
dispute resolution, the objective of the government to
improve the functioning and performance of the power
sector could have been better served by granting and
ensuring more accountability to ERCs while safeguarding
their operational autonomy and independence.

179
The disputes emanating from the matter related to regulation or determination of Tariff may
lead to possible overlap of jurisdictions between ERCs and ECEA. This aspect needs emergent
clarification before the Bill of 2020 takes shape of and enacted provisions or this grey area
would open gates for litigation time and again, diluting the pious purpose of the proposed
amendment to create a better dispute resolution mechanism under the Act of 2003 by
addressing critical issues which have weakened the commercial and investment activities in the
electricity sector and which otherwise required immediately attention to ensure sustainable
growth of the country by the Government

180
Penalty for not purchasing renewable sources as per central government notification

A newly proposed subsection (2) of section 142 introduces penalty to any person for not purchasing
power from renewables or hydro sources as per the central government notifications. Right now,
many obligated entities including Discoms fulfill such renewable obligation by purchasing
Renewable Energy Certificates (REC).

181
 Positives of Proposed Amendments

• The amendments that have been proposed are seemingly progressive

and also intend to address some of the immediate concerns that have
been persistently bothering stakeholders of the power sector. ECEA

182
• Regulating the Regulator …….. Reforming the Reformer …….Can India's electricity
regulators successfully play the role envisaged for them?
• Eyes and Ears and the Regulators the Voice to Protect Consumer Rights
• Section 61 of the Electricity Act, 2003 which stipulates that the Commission shall
be guided by the factors which would encourage competition, efficiency,
economical usage of resources, grid performance and optimum investment in
specifying the terms and conditions for determination of tariff

183
 A Glimpse of Overseas

• Electricity comparison in Sydney and NSW

• Undertaking an electricity comparison in Sydney and New South
Wales - a challenging task.
• New South Wales electricity market heavily scrutinised by Australian
Electricity Regulator
• Australia’s electricity markets is complex with so many distributors
and retailers operating within the state.
• NSW has three distributors maintain the network and supply
electricity to homes and businesses.
• These are the companies that maintain the poles and the wires, and
are responsible for fixing the faults.
• NSW electricity distributors are:
• Ausgrid
• Endeavour Energy
• Essential Energy

184
• For each distributor, Each household , each business has a
different tariff and a different rate structure depending on
the type of meter. Various retailers operate within each
distribution area.
• Each of these retailers have their own plans with different
rates for peak, shoulder, or off-peak usage and various
discounts and other pricing arrangements.

185
• Electricity bill is made up of two main costs –
• the usage charge , and
• the supply charge.
• These rates can vary dramatically depending on location you live, and the
unfortunate truth is that residents closer to Sydney are charged less for their
electricity use than residents in rural NSW.
• This is due to the increased costs of supplying electricity to rural areas.
• The supply charge ( Fixed Charge as in India ) is the fee you pay to be
connected to the grid.
• This fee will normally stay around the same every bill (unless your supplier
changes their pricing).
• This “service to property” fee is charged in cents per day.
• A plan that has a surprisingly low supply charge, may be offset by a higher
usage fee.

186
• The usage charge is a fee the retailer charges for the amount of electricity. It
is charged in cents per kilowatt hour (abbreviated on the bill as c/kWh).
• Electricity usage rate varies according to the type of tariff selection, but is
generally made up of :
: peak and off-peak usage charges.
Time of Use Tariffs:
• Higher rates during peak times (A/N and evening)
• Slightly lower rates during the shoulder period (early morning), and
• then lower rates during off-peak times (generally overnight)
Single Rate Tarif : means one set rate for usage, no matter the time of day or
night of using electricity.
Generally higher than other tariffs and are less common with the introduction
of smart meters.
Controlled Load Tariff? Controlled load tariffs apply to single appliances that
generally with standalone own electricity meter.
Things like electric hot water systems, under floor heating, and your pool
pump are likely to be on a controlled load tariff.
Controlled load tariffs are often significantly lower than other usage rates.
187
• Block Rate Tariffs Electricity tariffs in ‘blocks’ of a certain
amount of kilowatt hours per day or per billing cycle.
• One rate for your first 1,000kWh each quarter, and a
different rate for subsequent blocks. (popular in India)
• GreenPower Tariff? Offering Green Energy plans allowing
consumers to choose carbon offsets or renewable energy
generators.
• Typically allow users to choose to have between 10% to
100% of their supplied energy generated from renewable
energy sources like wind, hydro, or solar. Means that
customers pay a few cents extra per kWh depending on the
amount of sustainable energy they want to use.
188
• Feed-in Tariffs For those feeding Renewable Power back to the electricity grid.
Adjustment in the bill of normal consumption.
• Fixed Rate Plan: can mean big savings if you’re prepared to sign up for a 1 year or 2
year contract. Not all companies offer fixed rate plans, and not all consumers are
happy to be locked into a long-term contract.
• Variable Rate Plan: Retailer charges for the electricity use varying according to
wholesale energy prices and even at suppliers’ discretion.
• Exit fees can apply to both fixed rate and variable rate plans.
Standing Offer default pricing structure published by energy retailers is usually their
highest priced plan.
Automatically allocated customers to an electricity company when New South Wales
was deregulated, Customers placed on a standing offer.
Market Rate: Competitive electricity industry, offers the potential to deliver huge
savings. A range of discounts depending on payment methods, paying on time,
bundled energy, or a range of other options ??. Energy users may find difference of
several hundred dollars between a company’s Standing Offer and their best Market
Rate. 189
190
• Electricity Suppliers
• There are a huge number of energy retailers to compare in Sydney and NSW
including:

1. 1st Energy 1. Mojo Power Pty Ltd

2. AGL 2. Momentum Energy
3. Alinta Energy 3. Next Business Energy
4. Click Energy 4. Origin Energy
5. Diamond Energy 5. Powerdirect
6. Dodo Power and Gas 6. Powershop
7. Energy Australia 7. QEnergy
8. ERM Power Retail 8. Red Energy
9. Lumo Energy 9. Simply Energy

191
192
Facilitating on Behind the meter :
Reduce the carbon emission and footprint of the building by generating electricity
from renewable sources.
Reduce the electricity bills costs or the amount of electricity purchased by the
building.
Take the building “off the grid” for some or all of the working day.
Provide power conditioning and uninterruptible power supply characteristics for the
entire building.
Eliminate blackouts to the building and provides uninterruptable power supply
during grid failures.
Eliminate the damaging effects of brownouts on the building.
Allow the owner to buy electricity at the lowest possible purchase rates

193
194
195
196
• बाबा फरीद ने पंर्ाबी में क्या खूब कहा है
वे ख फरीदा यमट्टी खुल्ली, (कबर) यमट्टी उत्ते यमट्टी डु ली; (लाश)

• यमट्टी हस्से यमट्टी रोवे , (इं सान) अंत यमट्टी दा यमट्टी होवे (यर्स्म)

• ना कर बन्दया मेरी मेरी, (पैसा) ना ऐह तेरी ना ऐह मेरी; (खाली र्ाना)

• चार यदना दा मेला दु यनया, (उम्र) यिर यमट्टी दी बन गयी ढे री; (मौत)

• ना कर एत्थे हे रा फेरी, (पैसे कारन झुठ, धोखे) यमट्टी नाल ना धोखा कर तू, (लोका
नाल फरे ब)

• तू वी यमट्टी मैं वी यमट्टी; (इं सान) र्ात पात दी गल ना कर तू,

• र्ात वी यमट्टी पात वी यमट्टी, (पाखंड) र्ात यसफा खुदा दी उच्ची,

• बाकी सब कुछ यमट्टी यमट्टी।

197
Unveil the Curtain for
answers to some of
the Q’s
 सूरर् दी यबर्ली एह तं I रुक्दी नहीं एह तं I मुकदी नहीं !!

डूबें हुए तारों का यह मातम नहीं करती,

चढ़ते हुए सूरर् की परस्तार है यह दु यनया I
Joint Electricity Regulatory Commission ( for Goa & Union Territories)
& National Joint Secretary IIPE
YP Chawla, Advisor +91 98107-08707 [email protected] 199
 EXPAND BALANCING FOOTPRINT
Broader balancing areas and geographic diversity can reduce variability and need for reserves.

Source: NREL/FS-6A20-63037
 INCREASE THERMAL PLANT CYCLING
0% wind and solar

33% annual wind and solar energy penetration

Generation dispatch for challenging spring week in the U.S. portion of WECC Source: WWSIS Phase 2 (2013)
 FLEXIBLE GENERATION FROM WIND
• Wind can provide synthetic inertial control and primary and secondary
frequency response
• Wind can follow economic dispatch signals, and can be incorporated into economic
dispatch or market operations
• This example shows how Public Service Company of Colorado improved
its Area Control Error using controllable wind energy during a period of
very high wind and low demand

Figure: Impact of wind power

controls regulation, dispatch,
and area control error

Public Service Company of

Colorado
 DO INDIVIDUAL RENEWABLE ENERGY PLANTS
REQUIRE BACKUP BY CONVENTIONAL PLANTS?
 Reserves are already a part of every system
 Individual plants do not require backup
‒ Reserves are optimized at system level.
 Wind and solar could increase need for operating reserves.
‒ But this reserve can usually be provided from other generation that
has turned down to accommodate wind/solar
‒ This reserve is not a constant amount (depends on what wind/solar
are doing)
‒ Many techniques are available to reduce needed reserves.
 Wind can also provide reserves; in both directions when curtailed, but it
may not be economic do obtain up-reserve from wind or solar.
 DOES VARIABLE RENEWABLE ENERGY GENERATION
REQUIRE STORAGE?
• Storage is always useful, but may not be economic.
• Detailed simulations of power system operation find no need
for electric storage up to 30% wind penetration (WWSIS,
CAISO, PJM, EWITS).
• 50% wind/solar penetration study in Minnesota found no
need for storage (MRITS, 2014)
• At higher penetration levels, storage could be of value.
-E3 integration study for 40% penetration in California: storage is one of
many options
 DOES VARIABLE RENEWABLE ENERGY GENERATION
STORAGE?
• Storage is always useful, but may not be economic.
• Detailed simulations of power system operation find no need for
electric storage up to 30% wind penetration (WWSIS, CAISO,
PJM, EWITS).
• 50% wind/solar penetration study in Minnesota found no need for
storage (MRITS, 2014)
• At higher penetration levels, storage could be of value.
-E3 integration study for 40% penetration in California: storage is one of many
options
 HOW EXPENSIVE IS INTEGRATING VARIABLE
RENEWABLE ENERGY GENERATION TO THE GRID?
All generation (and load) has an integration cost:
• Any generator can increase cycling for remaining
generation
Baseload coal
• E.g., Baseload nuclear can increase coal cycling, as
shown in lower figure
• Conventional plants can impose
variability and uncertainty costs
• Contingency reserves sized for largest plant, often Coal cycling with wind
thermal
• Operating reserves needed for plants that cannot
follow dispatch signals precisely
• Conventional plants can create conditions that
increase need for system flexibility Coal cycling with nuclear
• Must-run hydropower, must-run IPP contracts,
thermal plants that
Variability Uncertainability
TRANSMISSION LINE FLEXIBILITY
TRANSMISSION LINE FLEXIBILITY
221
Green Technologies – Specific to Islands
Diesel Power Generation in A&N and Lakshadweep

Sl. Parameters ( 2015-16) Tariff Order Andaman & Lakshadweep

Nicobar
1. Population -2011 Census 379,944 64,429
2 Electricity Consumers 128051 21695
3 Electricity Consumption Mn.Kwh/ 234.20 58.33.
Yr.
4 Average Cost of Supply Rs./ Kwh 28.02 21.23
5 Diesel & Lube – Fuel Cost Rs. Crs. 438.09 77.16
6 Landed Avg. Cost of Diesel Rs./ Liter 61.39 60.81
7 ARR Requirements 656.32 106.81
8 ARR Deficit / GoI Subsidy 539.05 93.55
9 Solar MWs Installed 5.3 ( 3 Plants) 2.2 ( 11 Plants)
10 Small Hydro 5.1 MW -
222
 The Solar Power Sector in India is a Pseudo mature Market- A market
that is highly competitive market and with less penetration.

Let the Mature Technology Providers, Project Developers give inputs for
developing ESS regulations and price parameters and come up with
innovative financing solutions and interact with JERC.

Battery Storage for Renewables

ESS - Applications Outlook- Our Perception
Islands and Off-grid Applications
Household Solar PV
RE Smoothing and Supply Shift
223 Fast Regulation
 Storage Technology Roadmap – Interaction Reqd.
Market & Policy Oriented
Aim: Identify key areas for market interaction to support the integration
of variable RE and the transition of power infrastructures -with Your
Inputs
Objectives:
Address key techno-economic questions by policy makers- MNRE
Explain relationship between policy & technology deployment- a
dialogue between Technology Providers and Regulator (s)
MNRE is looking for Support Technologies for up to 5 MWh ( major
Grid); Up to 100 kWh Rural Grid, Micro Grids – Comml. , Industry,
Defense etc. 100 kWh to 1 MWh for Priority Application areas
Provide platform for interaction between multiple stakeholders-
MNRE / CBIP ( Pilot Projects expected by Sept 2015)

PGCIL recd. 13 applications . TRAI for Transmission Towers is working

224
on the same.
 Key areas for Your Participation
• Storage for self-consumption
• In Union Territories with high Cost of Power Generation
• In States with high retail prices
• In areas with black-outs
• For SMEs
• Storage for renewable off-grid solutions
• Solution to be commercially viable
• Need for standards and innovative financing- Your inputs
• Storage for dispatch ability
• Located at generation side
• Value and price storage services and contracting mechanisms key
• Grid stability services
• Economically not viable yet in the short-term
• Ancillary services markets and grid codes would be needed
225
Solar Regulations – Issued by JERC
JERC has already issued Solar Power Generation Regulations which are
available at: http://writereaddata/Files/SPGREGULATIONFINALJUNE.pdf

The main features of the Regulation are

Gross Metering and Net Metering is allowed as per Projects Developers’
choice.

The Solar Regulation allows, Aggregate Net Metering, Free Open

Access, Banking, Third Party Ownership, Renting the Roof, Community
Metering etc.

The Tariff / kWh without any Subsidy for projects up to 500 kWh are
Rs.10.39 / kWh for Andaman & Nicobar and Lakshadweep, Rs.
8.51/kWh for other Territories of JERC
226
Skill Requirements for Creating local
value chains

227
Recommendations:
1. The GoI should again consider higher capital subsidy where
Distributed Power Generation is required and making Diesel reach is
expensive. Action GoI (Action: Min. of Home Affairs / Min. of
Power).
2. The Diesel Lobby in these Islands should be faced head on. (Action:
The Bureaucracy).
3. The Solar Roof Top is to be marketed not only by the Project
Developers, but by the Discoms, Nodal Agencies and the Regulator
( to attract investment in Electricity Sector and to promote
Renewable Energy (Action: by the Agencies indicated)
4. Skill Development (Surya Mitra programs for the Islands to be
undertaken -Action: MNRE).
5. Make in India Initiative to be expedited for Energy Solar Solution
that can be used for Battery Operated Vehicles. (Action: MNRE)
6. Skill standards are required to be developed faster.

228
https://www.oecd.org/newsroom/OECD-G7-Report-Fostering-Economic-Resilience-in-a-World-of-Open-and-Integrated-
Markets.pdf
Power , Utility and Renewable
Sector
Has a degree of Resiliency
Suggestion : Change should be implemented in a phased manner through
regulatory sandbox. Enabling DISCOMs adequate time for making certain
relevant changes and removing any regulatory uncertainty

A regulatory sandbox (RS) refers to live testing of new products or services in a controlled/test
regulatory environment for which regulators may (or may not) permit certain regulatory
relaxations for the limited purpose of the testing. 234
Coal India’s valuation eroding under climate transition

Indian Share Market

Coal India Share Price

235