DERC Proposes Net Metering 1st Amendments to Boost Renewable Energy Adoption

Posted On - 2 August, 2024 • By - King Stubb & Kasiva

Introduction

The Delhi Electricity Regulatory Commission (DERC) has proposed amendments to the Delhi Electricity Regulatory Commission (Net Metering for Renewable Energy) Regulations, 2014.[1] These amendments, called the Delhi Electricity Regulatory Commission (Net Metering for Renewable Energy) (First Amendment) Regulations, 2024, aim to streamline the integration of renewable energy systems into the electricity grid, particularly for systems with capacities up to 10 kW. The key changes focus on exempting smaller systems from technical feasibility studies, mandating distribution licensees to carry out necessary infrastructure upgrades, and setting a clear timeline for larger systems’ technical feasibility assessments.

Explanation (Key Points)

  1. Exemption from Technical Feasibility Studies (Up to 10 kW): Renewable energy systems with capacities up to 10 kW will no longer require technical feasibility studies. This exemption aims to simplify the installation process for smaller-scale renewable energy projects, reducing bureaucratic hurdles and encouraging their adoption. This change is expected to make it easier and faster for consumers to install rooftop solar panels and other small-scale renewable energy systems.
  2. Distribution Licensee’s Role in Infrastructure Upgrades: Distribution licensees (DISCOMs) will be responsible for upgrading the distribution infrastructure, including distribution transformer (DT) capacity, to accommodate renewable energy systems up to 10 kW. The costs incurred for these upgrades will be included in the Aggregate Revenue Requirement (ARR) and will be subject to prudence checks by the Commission. This provision ensures that the necessary infrastructure is in place to support the integration of renewable energy without burdening consumers directly. This is a significant step as it places the onus on DISCOMs to ensure grid readiness, thereby facilitating a smoother transition to renewable energy sources.
  3. Timely Technical Feasibility for Larger Systems (Above 10 kW): For renewable energy systems exceeding 10 kW in capacity, distribution licensees must complete technical feasibility studies within 15 days of receiving a complete application. This measure aims to expedite the assessment process for larger projects, preventing unnecessary delays and promoting the timely integration of renewable energy into the grid. This provision provides a clear timeline, ensuring that larger renewable energy projects are not held up due to bureaucratic delays.

Conclusion

The proposed amendments to the DERC (Net Metering for Renewable Energy) Regulations, 2014, represent a significant step towards facilitating the adoption of renewable energy in Delhi. By simplifying procedures for smaller systems, ensuring grid readiness through infrastructure upgrades, and setting clear timelines for larger projects, these amendments create a more conducive environment for renewable energy integration. This move aligns with broader efforts to promote sustainable energy sources and reduce reliance on conventional power generation, ultimately contributing to a cleaner and greener energy landscape in the region. These amendments are expected to encourage greater participation from consumers and businesses in adopting renewable energy, thereby contributing to Delhi’s sustainability goals.

[1]https://www.derc.gov.in/sites/default/files/DERC%20Net%20Metering%20for%20Renewable%20Energy%20%28First%20Amendment%29%20Draft%20Regulations%2C%202024.pdf