KERC Introduces Draft Regulations for Rooftop Aero Turbines with Solar Integration in Karnataka

Posted On - 5 November, 2024 • By - King Stubb & Kasiva

Introduction

The Karnataka Electricity Regulatory Commission (KERC) has recently introduced draft regulations to facilitate the installation and operation of rooftop aero turbine (RAT) plants with or without solar integration in the state.[1] These regulations aim to promote renewable energy generation, reduce carbon emissions, and enhance energy efficiency. The KERC (Implementation of rooftop aero turbine with solar or without solar) Regulations, 2024, provide a comprehensive framework for eligible consumers to install and connect RAT plants to the grid.  

Explanation (Key Points)

The draft regulations outline several key aspects of rooftop aero turbine implementation in Karnataka:

Definitions and Interpretations:

  • RAT Plant: A small-scale wind energy plant installed on rooftops to generate electricity.  
  • Eligible Consumer: A consumer who has installed or proposes to install a RAT plant.  
  • Gross Metering: An arrangement where the entire electricity generated is supplied to the distribution licensee.
  • Net Metering: An arrangement where surplus electricity is supplied to the distribution licensee after offsetting consumption.

General Principles:

  • Distribution licensees shall provide gross or net metering arrangements to eligible consumers.  
  • Consumers must install RAT plants within specified capacity limits.  
  • Interconnection with the distribution network must comply with relevant regulations.

Conditions for Installation of RAT:

  • Eligible consumers can install RAT plants with or without solar.  
  • Installed capacity limits are specified based on the sanctioned load.  
  • The cumulative capacity of RAT plants cannot exceed a state-determined limit.  

Procedure for Implementation and Reporting:

  • Distribution licensees shall adopt a transparent procedure for installation and connection.
  • Upon application, the distribution licensee shall issue approval based on feasibility.  
  • Consumers must commission RAT plants within 180 days.
  • Distribution licensees shall monitor the installation process and submit quarterly reports.

Technical Parameters:

  • Interconnection with the distribution system is specified based on installed capacity.
  • Technical standards must comply with relevant regulations and codes.
  • Safety measures must be adhered to, including anti-islanding protection and automatic synchronization.

Filing of Application and Proceedings for Determination of Tariff:

  • The Commission shall determine the generic tariff for RAT plants.
  • Tariff determination parameters include capacity utilization factor, tariff structure, tariff period, capital cost, debt-equity ratio, loan and finance charges, depreciation, return on equity, interest on working capital, operation and maintenance expenses, and taxes on income.

Metering System:

  • Metering shall be as per specified standards.
  • Bi-directional meters shall be installed for both gross and net metering arrangements.
  • Meter readings shall be taken monthly or as per the billing cycle.

Energy Accounting and Settlement:

  • Meter readings shall be taken and recorded.
  • Electricity exported or imported shall be accounted for and billed accordingly.
  • Net electricity consumption or generation shall be determined for net metering arrangements.

Power Purchase Agreement (PPA):

  • Distribution licensees and eligible consumers shall enter into PPAs.  
  • PPAs shall be in the standard format approved by the Commission.
  • Approval for PPAs may be required from the Commission for certain capacity levels.  

Redressal Mechanism:

  • Grievances arising from the implementation of the regulations shall be addressed through appropriate dispute resolution mechanisms.

Conclusion

The KERC’s draft regulations provide a comprehensive framework for the implementation of rooftop aero turbine plants in Karnataka. By addressing various aspects such as installation procedures, technical requirements, tariffs, and metering, these regulations aim to promote renewable energy adoption and contribute to the state’s energy goals.

[1] https://kerc.karnataka.gov.in/uploads/media_to_upload1728560017.pdf