Recent announced Policies and Regulations that promotes Solar Energy in India !!

MERC order on exempting grid support charges in Maharashtra

• No grid support charges (GSC) to be levied until rooftop solar capacity in Maharashtra reaches 2 GW.
• Consumers having sanctioned load up to 10 kW shall be exempted from GSC.
• Approved GSC charges are HT consumers- INR 1.45/ kWh and LT consumers- INR 2.33/ kWh. 50% concession applicable on these charges.
• Banking charges for HT Consumers will be 7% and for LT consumers to be 12%.
• Additional fixed charges on behind the meter rooftop solar exempted with emphasis on registering such installation primarily for grid security.

Extension of validity of Renewable Energy Certificates (RECs)

• To avoid demand supply imbalance in the REC market, CERC has decided to extend the validity of RECs which have expired or due to be expired between 1^stApril, 2020 and 30^th September, 2020 up to 31^st October, 2020.
• This includes about 1,30,500 RECs (34,768 Solar and 95,732 Non-Solar) which were issued prior to 01.04.2017, have expired as on 1^stApril 2020. Another 32,069 RECs (674 Solar RECs and 31,395 Non-Solar RECs) which were issued after 01.04.2017 and are due to expire within the next six months.

Clarification regarding timely payment and Must run status for RE plants

In the lockdown owing to Covid 19 pandemic all over India, MNRE issued “must run” status for renewable Energy generating stations. In addition to this, Ministry said that,

• MNRE clarified that the payment to RE generators needs to be done on the regular basis despite earlier notice of moratorium of three months to make payments.
• The must run status will remain same throughout the lockdown period and ministry reiterated that any curtailment but for grid safety reason will lead to deemed generation.
• Already DISCOMs have been given enough relief like moratorium period to make payment as per earlier notice of Power Ministry.

Off-Grid and Decentralized Solar PV Program Extended to March 31, 2021

The Ministry of New & Renewable Energy has extended the third phase of Off grid and Decentralized Solar Photovoltaic programme till the end of March 2021. This programme aims at installation of solar street lights in the region where there is no facility for street lighting systems through grid power.

• MNRE set the target of installation of 118 MW of solar power capacity under phase III of this programme.
• Financial outlay of Rs. 2760 million for installation of 50 MW in FY 2018-19 and Rs. 3800 million for installation of 68 MW in FY 2019-20 has been already approved.
• During this extension period FY 2020-21, sanction for the installation of solar street light projects will only be available in the northeast region.
• In addition to this, ministry will issue detailed guidelines for implementation and subsidy disbursement mechanism under RESCO model, separately.

MNRE grants blanket extension of Lockdown plus 30 days for RE projects

In order to provide relief to RE stakeholders on account of outbreak due to Covid 19, MNRE has granted blanket extension of lockdown plus 30 days for normalization of all RE projects. MNRE will treat this lockdown as Force Majeure and may grant suitable extension for RE projects. And further added that there will be no requirement of case to case examination and no need to ask for any evidence for an extension due to lockdown. Due to spread of corona virus in many countries across world, the supply chain of renewable energy implementing agencies is disrupted abruptly.

MNRE addresses Invoicing Issues faced by RE Generators due to Corona virus Pandemic

While addressing to the problems that are being faced by RE generators due to this Covid 19 pandemic situation, MNRE has issued guidelines for billing and invoicing for solar, wind, hybrid, small hydro, biomass power generating stations. And asked them to submit hard copies of invoices within 15 days of the lift of national lockdown.

MNRE provided guidelines for billing/invoicing for RE Power Generating Stations:

• For billing done through Regional Energy Account (REA) or State Energy Account (SEA), invoices may be accepted through email and due date may be calculated as per terms of PPA
• For billing done through Joint Meter Reading (JMR), if JMR is available, invoices may be accepted through email and due date may be calculated as per terms of PPA
• If in case, JMR cannot be signed due to lockdown, RE power developer should take photograph of meter reading and thus generated invoice may be accepted.
• Alternatively, DISCOM may opt to pay on the basis of invoice for the same month of previous year, if it is lower.
• And for newly commissioned projects, DISCOMs may opt to pay on the basis of invoice of previous month, if it is lower.

Implementation of CPSU scheme phase II for setting up 12 GW Grid connected Solar PV Projects

MNRE has appointed Indian Renewable Energy Developing Agency (IREDA) as the new implementing agency for setting up of 12GW Grid connected solar Photo Voltaic projects. The scheme was earlier being overseen by Solar Energy Corporation of India. Total capacity of 12 GW to be added in 4 years period, from FY 2019-20 to FY 2022-23. The amendments made under this scheme as follows:

• Usage charges under this scheme should not exceed Rs. 2.8/unit and will be exclusive of any other third-party charges like wheeling charges, transmission charges etc. Earlier this usage charge was Rs. 3.5/unit.
• The maximum Viability Gap Funding (VGF) allowed has been set at Rs. 0.7 Cr/MW. MNRE will timely review this VGF amount.
• The scheme has mandated to use domestically manufactured solar photovoltaic cells and modules as per the specifications fixed by MNRE.
• IREDA will be entrusted to conduct bidding amongst the government producers for allocation of solar power projects with VGF as a bidding parameter to select project proponent.
• For projects up to 500 MW capacity, time period for commissioning of solar power projects increased from existing 18 months to 24 months from the date of letter of award.
• In the projects more than 500 MW capacity, project up to 500 MW capacity needs to be commissioned within 24 months and remaining capacity needs to commission in next six months.
• An additional clause is involved in this scheme, IREDA can also allot solar power projects of up to 50 MW to the interested entity at L1 (lowest tariff bid) rate.