UERC Notifies Comprehensive Amendments To Renewable Energy And Co-Generation Tariff Terms In Uttarakhand (2024)

Introduction

The Uttarakhand Electricity Regulatory Commission (UERC) issued a notification on June 20, 2024, amending the UERC (Tariff and Other Terms for Supply of Electricity from Renewable Energy Sources and non-fossil fuel based Co-generating Stations) Regulations, 2023.[1] These amendments, referred to as the UERC (Tariff and Other Terms for Supply of Electricity from Renewable Energy Sources and non-fossil fuel based Co-generating Stations) (First Amendment) Regulations, 2024, introduce significant changes to promote renewable energy adoption and energy storage in Uttarakhand.

Explanation (Key Points)

• Renewable Purchase Obligation (RPO): The amendments revise the Renewable Purchase Obligation (RPO) targets for obligated entities (distribution licensees, captive users, and open-access customers) in the state. The RPO mandates that these entities procure a specified minimum percentage of their total electricity requirement from eligible renewable energy sources. The revised RPO targets are set for each year from 2024-25 to 2029-30, with specific percentages for wind, hydro, distributed renewable energy, and other renewable sources.
• Energy Storage Obligation: The amendments introduce an Energy Storage Obligation, requiring a certain percentage of total energy consumption to be met through energy storage systems. This obligation is set to increase gradually from 1.5% in 2024-25 to 4.0% in 2029-30. To fulfill this obligation, at least 85% of the total energy stored in the Energy Storage System (ESS) must be procured from renewable energy sources.
• Grid Interactive Roof-top Solar PV Plants (GRPV)/Grid Interactive Small Solar PV Plants (GSPV): The amendments provide technology-specific parameters for determining generic tariffs for GRPV/GSPV commissioned on or after April 1, 2023. These parameters include capital costs, O&M expenses, and capacity utilization factors for different project sizes. The amendments also outline regulations for the installation, injection, and settlement of energy from GRPV/GSPV.
• Other Provisions: The amendments include various other provisions, such as the exemption of eligible consumers from monthly minimum charges for GRPV/GSPV installations, the non-applicability of deemed generation on GRPV/GSPV, and guidelines for connecting GRPV/GSPV to the grid.

Conclusion

The UERC (Tariff and Other Terms for Supply of Electricity from Renewable Energy Sources and non-fossil fuel based Co-generating Stations) (First Amendment) Regulations, 2024, represent a significant step towards promoting renewable energy and energy storage in Uttarakhand. The revised RPO targets and the introduction of the Energy Storage Obligation are expected to drive the growth of renewable energy generation and enhance grid stability. Additionally, the provisions related to GRPV/GSPV aim to encourage the adoption of rooftop solar power by consumers, contributing to a more sustainable and decentralized energy system in the state.

[1]https://uerc.gov.in/Rules%20and%20regulation/UERCRegulations/2024/RE%20First%20Amendment%20Reg.,%202024/RE%20First%20Amend.%20Reg.,%202024.pdf