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Roundtable Conference on Policy on Net-metering for Solar Grid Interactive Roof-Top Plants in the State of Madhya Pradesh March 2015

Agenda Background Net-metering Policy – Key highlights Implementation Guidelines Technical issues

Source: MCAPL photo gallery, site photograph, Andhra Pradesh

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Agenda Background Net-metering Policy – Key highlights Implementation Guidelines Technical issues

Source: MCAPL photo gallery, site photograph, Andhra Pradesh

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Background

• New & Renewable Energy Department, Govt. of Madhya Pradesh (MPNRED) is the state nodal agency (SNA) for facilitating implementation of renewable energy projects in the state; • MPNRED, is preparing a policy for on Net-metering for Solar Grid Interactive Roof Top and small SPV Power Plants in the State of Madhya Pradesh; • The British High Commission (BHC) is supporting the MPNRED in matters pertaining to implementation of Solar Grid Interactive Roof-Top and small SPV Power Plants based on the concept of Net-metering; • The objective of the workshop is to reinforce the provisions of the State Net metering Policy, get feedback on the proposed policy, provide guidelines for implementation of the projects, address certain issues faces by stakeholders and provide recommendations for improvements.

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Conceptualise, Design and Implement Net Metering Based Solar Rooftop Scheme in various States in India - 5 -

• • • • • • •

The project is supported by the British High Commission

Purpose: To enable tapping of estimated 20-100 GW potential for solar roof-top PV system in India by successfully implementing a net metering based commercial model in various States in India Support is provided by MCAPL under the project to Andhra Pradesh, Madhya Pradesh and Uttarakhand Support is provided to relevant agencies towards formulation of policy, regulation, undertake bid process management, and Project Management Consultancy – Policy and regulation are being formulated in Madhya Pradesh – Projects are being implemented in Andhra Pradesh as well. – In Uttarakhand ~7 MW of solar roof top projects are being implemented Contribute to National policy for promotion of solar rooftop as envisaged in the JNNSM and SECI bids 386 MW of solar grid connected project in MP ~ 1400 MW in pipeline and 5 MW of solar roof top projects by Discoms

Agenda Background Net-metering Policy – Key highlights Implementation Guidelines Technical issues

Source: MCAPL photo gallery, site photograph, Andhra Pradesh

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Solar Rooftop Projects have two business models differentiated by mode of sale of power: FiT and Net Metering 7 - 7 There are two modes of power sale in Solar Rooftop Projects : FiT and Net Metering FiT Net Metering

Focus Area

Definition

Solar Power purchased from developer at a preferential tariff Consumer pays the utility after netting off consumption from self generation

Value Proposition offered Preferential Tariff for solar energy Ability to reduce utility bill apart from capital subsidy and other incentives Revenues Dependency on customer En. Chg.

Electricity Duty Business case for Developer/Consumer

From the sale of solar power to utility at the preferential tariff From Energy Savings No Yes; Higher the Tariff , better is the financial viability No Relaxation for certain years

Incentive Mechanism Capacity Target Mode of allocation Exemptions: Electricity duty

Prerequisites of Net metering

Regulation

Energy Accounting Max. Allowable capacity at DT level and at grid penetration Tariff for surplus generation

Technical

Interconnectivity norms Metering norms

9 - 9 -

Settlement Period Load Factor, ToD adjustment Eligible Consumer Category Exemptions: Banking, Wheeling and Cross Subsidy Surcharge RPO fulfilment of DISCOM

Basic Intent

Net-Metering Policy – Key Highlights

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To encourage consumers who intent to implement solar PV plants as an endeavour to encourage green energy

Applicability

Applicable for all consumer categories (self owned or third-party owned)

Where can the plants be set up Capacity Constraints Cumulative Capacity Cap for installed capacity in the State

Unutilized places on rooftops, buildings of individual households, industries, offices, institutions, shared premises in residential complexes etc.

• • Consumer to generate solar power for self consumption and feed excess power into the grid – Accordingly, the capacity of Solar PV plant restricted to the contract demand of the consumer.

Min. capacity allowed is 0.5 kW and maximum is 250 kW At present no such cap on cumulative capacity installed in the State is prescribed – Opportunity to encourage wide-spread implementation across the State

Net-Metering Policy – Key Highlights

Fiscal incentives (Central Government – MNRE) Fiscal incentives (State Government) Interconnectivity Norms Cost to be borne by the consumer Metering Standard - 11 -

Subsidy to the extent of 15% of the cost of the panel up to a capacity of 500 kW without battery support from MNRE – applicable for all consumers; • • • • • • Exemption from: Property tax for installation of solar rooftops Electricity duty and cess for 10 years from commissioning VAT and Entry tax Banking, wheeling, and cross-subsidy surcharge Interconnection of Solar Rooftop system, with the network of Distribution Licensee shall be as per technical standards for connectivity of distributed generated resources regulations notified by the CEA.

Norms for new service connection apply to interconnection of solar Rooftop systems.

Cost of the Roof-top system (net of subsidy received from MNRE); Cost of interconnection and metering arrangement including the accessories; MRI compliant Bi-Directional meters with accuracy class of Class 1.0 or better or as per specifications of CEA.

Net-Metering Policy – Key Highlights

- 12 Net Metering Process Energy Accounting Commercial Settlement Contract Demand Reduction

• • • Process records net energy between export of generated energy and import of DISCOM energy for a billing month; Meter, having the feature of recording both the import and export values can also be used for recording net energy.

Accounting procedure has been prescribed in proposed regulation • The computation of net energy shall be carried out on monthly basis and provision for carrying forward in subsequent month for a period of 12 months (settlement period) • Commercial settlement of excess energy injected into the grid by the end of settlement period at APPC.

• Consumers will be allowed for reduction in Contract Demand to the extent of 50% of Solar Rooftop systems installed under net metering mechanism.

Agenda Background Net-metering Policy – Key highlights Implementation Guidelines Technical issues

Source: MCAPL photo gallery, site photograph, Andhra Pradesh

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Implementation Guidelines Roles & Responsibilities of Key Stakeholders:

State Government

• Introduction of Policy to encourage Net-Metering in the State • Provide applicable incentives to the consumers

MPNRED

• Nodal Agency for facilitating implementation of net-metering projects in MP • Agency responsible for facilitating processing and routing the subsidy from MNRE to consumers / vendors.

DISCOM

• Conducting feasibility study based on applications of consumers and giving approvals • Inspection and approval of the system installed by consumers and allow synchronisation with grid • Testing of Bi-Directional meter sourced by consumer • Monthly metering and billing based on net-metering concept • Routine inspection of the plant at any time and otherwise in accordance with Electricity Act 2003

Consumer

• Filing of the application for approval of the Net-metering scheme • Procurement and installation of equipment as prescribed by relevant agency like MNRE, MPNRED, DISCOMS with all mandatory safety precautions / features

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Implementation Guidelines Infrastructure related requirements:

Space and Power Connection Requirements Metering and Safety Precautions Equipment Related - 15 -

A minimum vacant roof area of 10 Sq. mtr or 100 Sq. ft is required for installation of 1 KWp system A single bi-directional meters shall be installed for export and import Only standard equipment as per the norms of MNRE / MPERC/ CEA to be installed The consumer shall have 3 phase or single phase supply service connection Meter to be procured by consumer and tested by DISCOM Internal wiring should be approved by Class –A electrical contractor Mandatory safety precautions / features shall be installed as per the norms

CEIG certification is required as per Section 47A of the Indian Electricity Rules, 1956 for capacities beyond 10 kW

Implementation Guidelines

- 16 Approval Process: Sr. No .

Steps Responsi bility Timeframe

1.

Consumer will download application from DISCOM Website Consumer -

Comments

The DE / concerned officer from DISCOM to provide necessary assistance to the consumer 2.

Filing of application by the consumer along with application fee of Rs. 2000/ Consumer Application to be registered at the call centre and acknowledgement to be provided 3.

Concerned official from DISCOM to conduct feasibility analysis and provide necessary approval.

(Approval is valid for period of 3 months from the date of approval) Divisional Engineer / Operation Within 30 days from receipt of complete application • • • • Missing information to be sought to ensure the application is complete.

Approval needs to be communicated to consumer within prescribed timeline.

In case of dis-approval, the same should also be communicated to consumer with reasons thereof.

DISCOM will accord approval on first come first serve basis.

Implementation Guidelines

- 17 Approval Process: Sr. No .

Steps

4.

Consumer installation to select vendor for

Responsibility Time frame

Consumer

Comments

Needs to ensure that the system is installed within a period of 3 months which is the period for which the DISCOM approval is valid.

5.

Application for availing subsidy from MNRE and GoMP to be routed through MPNRED.

•

MNRE Subsidy:

Can be availed directly through the channel partners or by submitting proposal to MPNRED after obtaining DISCOM Approval.

Consumer / MPNRED In respect of capacities more than 50 KWp, the proposal for availing subsidy from MNRE shall accompanied by a Detailed Project Report.

MPNRED is the nodal agency for availing subsidy and will facilitate processing of requests.

Release of central subsidy is dependent on MNRE.

Implementation Guidelines

- 18 Sr. No .

Steps Responsibili ty Time frame Comments

6.

Installation of the system by the Vendor Vendor 7.

Request from consumer to concerned DISCOM official for inspection of the installation of the system in his premises DISCOM (Concerned DE / Operation) 8.

Procurement of the Meter and installation, calibration and sealing of the bi-directional meter at site.

DISCOM Needs to ensure that the system is installed within a period of 3 months which is the period for which the DISCOM approval is valid.

• • Suggested time frame for completing inspection is within 7 days from receipt of the request from the consumer.

Officials to confirm that the installation is as per the standard Supply Code guidelines of 2013 and/or issued by MNRE / MPNRED / DISCOM.

• Meter to be procured by consumer and to be tested by the DISCOM.

•

Suggested time frame:

Testing of meters procured by consumers: within 7 days after handing over meter to DISCOM after inspection by DISCOM officials & confirmation of satisfactory installation at the consumer’s premises .

The process of approval is complete and the energy exchange will initiate

Consumer

Summary of Approval Process

A

Downloading application format

B

Filling up application format Application submitted to DISCOM and necessary approval sought

A

Selection of Vendor

B

Submission of Application for subsidy to MPNRED Receipt of Subsidy Subsidy approval and disbursement by MNRE to MPNRED

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Installation of the system by Vendor Inspection of the system by DISCOM officials and approval Meter procurement by Consumer Testing of Meter procured by Consumer

Meter installation and commissioning of the system by DISCOM

Implementation Guidelines Metering and Billing Process:

Sr. No .

Steps Responsi bility Time frame Comments - 20 -

1.

Meter readings will be taken DISCOM on monthly basis as per the billing cycle. The bill raised will be for the net energy exchange during the month.

DISCOM Monthly • • • • Consumer will receive net import / export bill indicating either net export to the grid or net import from the grid on monthly basis.

In case of net import of electricity, the consumer to make payment as per the existing rules.

In case of net export, then credit energy shall be carried forward to next month for adjustment against next month import bill.

Excess energy remaining at the end of settlement period is settled at APPC determined by MPERC.

DISCOM to undertake necessary changes in billing software - The billing process will be undertaken on a monthly basis to provide necessary benefit to the consumers

Agenda Background Net-metering Policy – Key highlights Implementation Guidelines Technical issues

Source: MCAPL photo gallery, site photograph, Andhra Pradesh

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Rooftop Installation - Benefits for Discoms

 Better performance due to reduced technical losses  No capital investment by Discom  Savings in infrastructure costs and land requirement  Potential to enhance power quality (PF & Voltage improvements)  Reduced day peak demand stress on the network  Management of active and reactive power  Improve tail end voltage profile  Fulfillment of RPO  Issuance of policy has led to installation of almost 1 MW in AP in 18 months and in Uttarakhand 7.3 MW projects have been sanctioned till date since issuance of the policy in 2013.

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Challenges from Discoms’ perspective

 DG point of connection is not always close to load center  DG generation is non-dispatchable (can’t control own generation)  DG generation does not always coincide with demand, unavailability when the network is under stress  Discoms have to watch for reverse power flow conditions, Voltage profile of the concerned feeder  Due to injection of PV generation, distribution network/ lines may require strengthening  Injection of power from DG should not breach the security of supply/network

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Technical Issue

Technical Issues- Safety

Implication Short Term Solution 24 - 24 -

Unintended Islanding •Human life Safety issue •Equipment of customers within the island may get damaged •Damage to the RE plant after island network is reconnected to grid Passive anti islanding methods like voltage and current dip sensing, frequency dip/drift etc may be employed

Long Term Solution

Active anti islanding measures are taken like signal injection method, trip transfer scheme etc.

Technical Issues- Back feeding of DTR

Technical Issue Implication Short Term Solution 25 - 25 -

If the cumulative generation capacity of all the rooftop/other RE plants connected to a particular DTR is high and all of them are injecting power at the same time, the behavior of that LT feeder may be altered.

In some events, the DTR might be forced to back feed the excess power in the HT circuit. In such a case the DTR will be behaving like a step up transformer.

Safety of Equipment and personnel needs to be ensured Protection settings needs to be checked Endeavor should be made for ensuring that the DTR is not operating in reverse mode.

Allowable project capacity at each DTR to be decided by regulator (max. 15% of DTR capacity allowed initially)

Long Term Solution

Network study & simulation of behavior of the network under different operating conditions Move towards mesh/loop distribution system instead of radial systems DISCOM may update DTR level capacity availability regularly In case penetration is high feeder/DTR design may have to be reviewed

Technical Issues- Voltage Issue/Variation

Technical Issue Implication Short Term Solution 26 - 26 -

Radial feeder is designed keeping in mind that the load on the feeder and handled power get diminished towards the tail end.

The sizes of the conductor/cables are also gets reduced. Injection of power at these nodes of the feeder changes the loading profile of the feeder.

RE power is not stable all the time and therefore the voltage variation may be experienced.

Safety of Appliances and Equipment in neighborhood consumers may be impacted Load balancing of the feeder should be done.

Preferably 3 phase RE plant should be installed

Long Term Solution

Strengthening of network, Bifurcation of existing feeders, creation of separate feeder etc.

Network study & simulation of behavior of the network Move towards mesh/loop distribution system instead of radial systems

Single Line Diagram - LT Connectivity

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Single Line Diagram - HT Connectivity

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Interconnection Requirements for Grid Tied System

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• • • • • • • • • • • • Voltage Regulation Auto-synchronization Import & Export metering Anti-Islanding feature during grid failure Provision of isolation transformer Interconnection Integrity Manual lockable Disconnector Abnormal Voltage/ Frequency detection, correction and isolation Surge Withstand capability DC Injection, Flicker & Harmonics limiting Integration with Discom Grounding Conforming to the technical standards for connectivity of Distributed Generated resources regulations 2013 by CEA

Level of Overall Grid Penetration

• Factors for Overall Cap decision • Discom’s loss of revenue • Grid stability • Security & Protection of the grid

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Level of Grid Penetration

• Local (DT) level Cap in various states • Tamil Nadu • Karnataka • Delhi • Kerala • Uttarakhand • Andhra Pradesh 30% 15% 50% 50%

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THANK YOU

M e g h r a j C a p i t a l Ad v i s o r s P r i va t e L i m i t e d

Merg ers & Acq uisitions I Private Eq uity I Capital Mark ets I Inf rastructure Business Advisory

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2 nd Floor, 201, Rajan House, Appasaheb Marathe Marg, Prabhadevi, Mumbai 400 025, India Tel : +91 (0)22 6744 5100 Fax: +91 (0)22 6744 5150 Email: [email protected]

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Net Metering Policy/Regulatory overview Across States

33 - 33 Uttarakhand Kerala Tamil Nadu Delhi Observation Eligibility Target Capacity Fiscal Incentives All categories 5 MW Feed in Tariff for surplus injection All consumer Not Defined Not Defined Domestic and Non Domestic 350 MW All consumers Not Defined The vision of most states is participation from all consumer categories.

In states incentives where have fiscal been announced to subsidy.

by the state governments, it is necessary to put in place caps on maximum cumulative capacity to limit the government’s exposures Capital Subsidy up to Rs.

20,000 per KWp , Capped at 1 KWp individuals) for Residential Consumers, and 10 KWp for consumer group (only for common services and not for Subsidy is frontend through channel partners Not Defined GBI of up to 2 Rs./Kwh (reduced to 0.5 Rs/Kwh in successive states) for first 6 years years for for Domestic Consumers 0.5 Rs/Kwh in successive states) for first 6 Domestic Consumers Subsidies



should be so designed issues such that faced they ensure



Viability for all eligible consumers considering the applicable tariff.



Address affordability by individuals and small commercial consumers.

Ensure performance of the policy schemes implemented under the

Net Metering Policy/Regulatory overview Across States

34 - 34 Uttarakhand Kerala Tamil Nadu Delhi Observation Allocation Basis Competitive Bidding on Capital Subsidy First Come First Serve First Come First Serve First Come First Serve Exempted Exempted Exempted Not Defined Electricity Duty Settlement



Billing Period, Surplus to be settled at FiT Annually, Gross generation capped at 90% of annual consumption Annually, Gross generation capped at 90% of annual consumption Annually, Gross generation capped at 90% of annual consumption



Settlement Period should be such that it removes the effect of seasonality in generation and minimizes financial transaction for the licensee The cap on solar system generation should be such that it ensures viability for eligible consumer and minimizes impact on distribution licensee.

Grid Penetration Not Defined 50% DT Cap 30% DT cap 15% DT Cap To limit unforeseen impact of Solar PV on the distribution network, most states have limited cumulative solar system capacity at distribution level.

Solar Renewable Purchase Obligation Generation is Accounted towards solar RPO Generation Accounted towards RPO is solar Generation Accounted towards is solar RPO Generation Accounted towards RPO is solar To minimize financial burden on obligated entity and distribution licensee, gross generation may be accounted towards fulfilment of RPO.

Net Metering Policy/Regulatory overview Across States

35 - 35 Uttarakhand Cross Charges Banking Subsidy Exempted Allowed Wheeling Transmission Charges & Exempted Kerala Not Applicable Allowed Exempted Tamil Nadu Not Defined Not Defined Applicable Delhi Exempted Allowed Exempted Observation The systems must be exempt from open access charges to minimize impact on viability of the projects implemented in the scheme while at the same time simplifying scheme implementation Aggregate metering Net Not Applicable Applicable Not Applicable Not Applicable Aggregate provision allows offsetting of consumption of one premises with consumer.

Net generation premises owned by the same For metering at simplicity, aggregate net metering may be allowed once the rooftop markets have matured other Demand Cut Connectivity Metering Norms & Not Applicable Not Applicable Exemption capacity As per regulations CEA As per Central Electricity Authority (CEA) regulations As per regulations from Demand cut up to 100% of installed Not Applicable Provision of demand cut may increase complications as well as financial implications on revenue of licensee.

CEA As per regulations CEA CEA norms for connectivity of the India.

and Installation and operation of meters have been adopted by states in

Existing business models…..1

Solar installations owned by consumer

• Solar Rooftop facility owned, operated and maintained by the consumer(s).

• Solar Rooftop facility owned by consumer but operated and maintained by the 3

Solar installations owned, operated and maintained by 3 rd Party

rd party. • The 3 rd party implements the solar facility and provides services to the consumers. The surplus electricity may be injected to the electricity grid. The combinations could be: – –

Arrangement as a captive generating plant for the roof owners

• • The 3 rd party implements the facility at the roof or within the premise of the consumers; the consumer may or may not invest as equity in the facility as mutually agreed between them. • The 3 rd party may also make arrangement of undertaking operation and of maintenance of the facility. • The power is then sold to the roof owner.

Solar Lease Model, Sale to Grid

• • The 3 rd party implementing the solar facility shall enter into a lease agreement with the consumer for medium to long term basis on rent. The facility is entirely owned by the 3 rd party and consumer is not required to make any investment in facility • The power generated is fed into the grid and the roof top owner gets a rent. •

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Existing business models …..2

Solar Installations Owned by the Utility Ownership of

•

Solar installations owned operated and maintained by the DISCOM

– The DISCOM may own, operate and maintain the solar facility and also may opt to sub contract the operation and maintenance activity. – The DISCOM may recover the cost in the form of suitable tariff. The electricity generation may also be utilized by DISCOM for fulfilling the solar renewable purchase obligation. •

Distribution licensee provides appropriate viability gap funds

– The DISCOM may appoint a 3 rd party to implement the solar facilities on its behalf and provide appropriate funds or viability gap funds for implementing such facility.

– It may also enter into an agreement with the 3 rd party undertaking the operation and maintenance of the solar facilities.

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Feasibility of Solar roof top projects vis à-vis tariff

- 38 Category

LT Domestic LV 2 LT Industrial LT Commercial HT Commercial HT Industrial HT Shopping mall HT Residence

Energy Charge (Rs/kWh)

5.55

5.20

5.35

6.00

5.50

5.20

5.50

4.75

Existing tariff ED (Rs/kWh) Total (Rs/kWh)

0.83

0.78

0.80

0.90

0.83

0.78

0.83

0.71

6.38

5.98

6.15

6.90

6.33

5.98

6.33

5.46

With 10% increase Energy Charge (Rs/kWh) ED (Rs/kWh) Total (Rs/kWh)

6.11

5.72

5.89

6.60

6.05

5.72

6.05

5.23

0.92

0.86

0.88

0.99

0.91

0.86

0.91

0.78

7.02

6.58

6.77

7.59

6.96

6.58

6.96

6.01

Levelised Tariff Levelised Tariff Capital Cost Rs/Unit Rs/Unit Rs 78/Wp

7.77

6.6

Without Subsidy with 15% CFA CUF 18%

Additional incentives shall be required to propel Net metering

39

20 15

Project IRR

17.4

10 5 0 6 4 2 0 8 LT_Domestic

Project Payback Period

6.6

LT_Domestic 19.6

LT_Commercial 6.0

LT_Commercial 13.6

HT_Industrial 7.8

HT_Industrial 14.9

HT_Commercial 7.3

HT_Commercial

Meghraj DNA

About Us

Meghraj Capital Advisors Private Limited (“Meghraj”) is an investment banking firm offering advisory and execution services in Infrastructure Consulting, Mergers & Acquisitions, Funds Syndication and Capital Markets. We operate from offices in Mumbai, Ahmedabad and Gurgaon Meghraj is part of the British Isles head-quartered Meghraj Group

Corporate Objectives

Build credible

long-term relationships and partner

with our clients by providing innovative solutions and growth opportunities using our

global reach and local expertise Our Tradition

• Serve a diverse set of clients who retain us on multiple mandates • Identify synergies and growth opportunities for our clients • Offer customised solutions to cater to the entire business cycle of a client • Engage talented professionals with diverse industry and finance backgrounds

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Service Offerings

- 41 Infrastructure Advisory Meghraj Service Offerings Capital Syndication Capital Markets Mergers & Acquisitions Infrastructure Consulting Financial Advisory Equity Power Urban Transportation Debt Advisory Services Structured Products Domestic Cross border

Firm Experience: Power Consulting

Power Consulting: International Funding Institutions Institutional Capacity Building

Institutional capacity building including commercial, financial, corporate managerial, planning & regulatory activities in

Bihar State Electricity Board Organisation Review and Strengthening

Organisation strengthening

Odisha State Control Board

review study and for

Pollution PPP for Distribution

Background review, due diligence, bid process management and monitoring of implementation for

Nepal Electricity Authority - 42 Power Market Review

Developing innovative solutions to address the surplus power situation in Gujarat

Energy Efficiency in Urban local bodies MP Urban Infrastructure Investment Project

to promote EE & RE in urban areas to decrease their carbon footprint & make them more sustainable

Private Sector Assessment

Support to

Asian Development Bank

on Comprehensive Private sector assessment for Nepal Partnership from 2013-2017.

Country Strategy

Reform Process Review

Report on End-Term Evaluation of

Madhya Pradesh Power Sector Reform Program (MPPSR) Sustainable Development Plan Preparing Outer Islands (Maldives) for Sustainable Energy Development with a special focus on Solar Energy supported by the Asian Development Bank

Firm Experience: Power Consulting

Power Consulting: Public Sector Clients Regulatory Assistance BERC

Assistance in tariff determination, tariff orders and true up orders for

Bihar Electricity Regulatory Commission PPP for Generation GUVNL

Advisory services for bidding through Case – I power procurement for

Gujarat Urja Vikas Nigam Ltd Financial Appraisal GAIL

Bid advisory, financial modeling and sensitivity analysis for 5MW solar PV project for

GAIL (India) Ltd - 43 Utility Regulatory Filings UVJN & BSEB

Business Plan for

UJVN Ltd

. Filing of ARR & tariff, true-up, review petition for

Bihar State Electricity Board Business Process Review MPPMC

Preparation of As-Is report, delegation of powers, business manual for

MP Power Management Company Revalidation of Valuation HPGCL

Revalidation of valuation report for 3X60 MW coal based units No. I,II and III (BHEL make) at thermal power station, Faridabad for

Haryana Power Generation Company Ltd

Firm Experience: Power Consulting

Power Consulting: Public Sector Clients Budget approval for MSLDC

Assistance to MERC in Petition for

approval of the Budget of MSLDC

for FY 2013-14

True-up Petition NDMC

Appointment of Consultant for filing true-up petition for FY 2011-12 revised ARR and corresponding determination of tariff for FY 2013-14

New Delhi Municipal Council RE Tariff determination MERC

Assistance in tariff determination for a 4.87 MW municipal solid waste plant for

Maharashtra Electricity Regulatory Commission - 44 Generation Company Business Plan, ARR and MYT proposal

Assistance in review of MYT regulation, business plan and filing of ARR and tariff proposals to CSERC for

Chhattisgarh Power Generation Company Ltd Distribution Reforms FoR

Drafting the model Legislation On State Electricity Distribution Responsibility Bill for the

Forum of Regulators SLDC Regulations MERC

Preparation of Levy and Collection of Fees and Charges by SLDC Regulations, 2013 for

Maharashtra Electricity Regulatory Commission

Level of Local Cap

• It has been indicated by many experts that if cap % is crossed, the DTR may be replaced with higher capacity.

• The % Cap at DT level should not be decided as % of DT capacity but should dependent on peak day demand on the particular DT.

• The day peak load should be recorded & considered • Normally distribution 11 kV network is designed for radial feed in India and protection / DTR / other system equipment are designed for unidirectional flow. Excess solar generation may introduce reverse feed some time. • If flat percentage is taken irrespective of peak day loading of DT (say above 50%), the outcome may be catastrophic.

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Rooftop feed to the Discom Network

- 46 -

Limited DG Penetration Reduces Feeder Loading

- 47 -

Effect of High Penetration

- 48 -

Voltage Effect due to Rooftop Generation

- 49 -

Voltage Effect due to Rooftop Generation

- 50 -

Voltage Effect due to Rooftop Generation

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Effect of High Penetration of PV system on distribution system

- 52 -

• •   Implications of high penetration of intermittent DG systems are not understood Voltage variation of the feeder may be significant due to high PV penetration Reverse feeding issues Protection malfunctioning /Failure

Sympathetic Protection Tripping

Effect of High Penetration

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