GERC Updates Rules for Wind-Solar Hybrid Projects to Enhance RE Viability
The Gujarat Electricity Regulatory Commission has updated regulations for wind-solar hybrid projects, enabling connection transfers and facilitating investments, thereby strengthening the State's commitment to sustainable energy development.
September 25, 2024. By EI News Network
This petition focussed on changing the current rules for how power is purchased from wind-solar hybrid projects, including those with storage systems. These rules were established in “Order No. 1 of 2024,” which was issued on January 7, 2023, to help integrate renewable energy projects into the State's electricity transmission system.
GETCO's petition responds to the changing needs in renewable energy generation and the challenges faced by hybrid power projects. The company believes that the current pricing and connection rules need to be updated to make these projects more viable and efficient. Specifically, GETCO requested to allow the transfer of electricity connections for renewable projects managed by a developer representing multiple renewable energy entities until these projects are operational. Currently, the rules do not allow for this transfer, which complicates the establishment and operation of these projects.
It may be noted that multiple stakeholders were invited to share their feedback on the proposed amendments, with public notices published in local Gujarati and English newspapers to encourage participation. While several stakeholders offered suggestions, others opposed the amendments, citing concerns over maintainability and the original non-transferable connectivity framework.
Some objectors raised concerns about their renewable energy (RE) projects, which were planned before January 7, 2023, under previous connectivity norms that allowed the transfer of permissions and connectivity by the Gujarat Energy Transmission Corporation Limited (GETCO) and the Gujarat Energy Development Agency (GEDA). They undertook various steps to implement their projects, including applying for connectivity grants, receiving approvals from GETCO, and making significant investments ranging from INR 450 crores to INR 1,500 crores for the development of approximately 275 MW of RE capacity.
By the time Order No. 01 of 2024 was issued on February 22, 2024, many of their projects were ready for commissioning or had already started injecting energy into the grid. However, despite their readiness, GETCO denied signing transmission agreements and granting open access, while GEDA denied transfer permissions after Order No. 01 of 2024, relying on the new connectivity procedures. The objectors believe this refusal is unjustified and significantly affects their projects, depriving them of revenue from electricity generation. They also pointed out that other similar projects, which were granted connectivity before the new procedures, were allowed to commission even after January 7, 2023, based on previously granted transfer permissions.
Furtther, GETCO argues that GERC has the authority to review this petition based on several sections of the Electricity Act, 2003. These sections focus on promoting competition, setting electricity tariffs, supporting renewable energy projects, and granting regulatory powers to the Commission. By tackling the connection transfer issue, GETCO aims to create a more favorable environment for investments in renewable energy, aligning with Gujarat's goals to boost renewable energy production and sustainability.
After reviewing the petition, the Commission approved GETCO's requests, leading to important updates in the rules for renewable energy projects. The ruling states that renewable energy projects with connections granted by GETCO before January 7, 2023, can now receive permissions for transferring connections, open access to the grid, and signing agreements for transmitting electricity. This means that the entities taking over these projects can move forward with their operations, as long as they have not already received permissions from GETCO or local electricity distribution companies (DISCOMs).
Additionally, the Commission has added new provisions to the existing rules to make them clearer, saying, " Provided that where a RE Park Developer (as declared in the application for connectivity) developing the infrastructure facilities for the RE Projects to be established in the RE Park obtains connectivity for evacuation of power from RE projects located in the RE Park, such arrangement between the RE Park Developer and the RE Projects shall not be in breach of the above, and the connectivity so taken by the RE Park Developer shall be deemed to be on behalf of the RE Projects also for all intents and purposes. The RE Park Developer shall be required to declare the intent at the time of filing the application for Connectivity.
Provided further that where under any scheme duly declared in the application for connectivity, the RE Developer develops the RE Projects in aggregate, with Connectivity to the Grid taken by the RE Developer with intent to allocate, transfer, and assign individual RE Projects to identified entities, such arrangement between the RE Developer and the RE Projects shall not be in breach of the above, and the connectivity so taken by the RE Developer shall also be deemed to be on behalf of the RE Projects also.”
The ruling clarifies that any new declaration requirements for developers will only apply to future applications. Those who applied before will not be affected by these new provisions. The updates will also apply to entities referenced in the newly enacted “Green Energy Open Access Regulations, 2024.”
The outcome of this petition will significantly impact the rules governing renewable energy in Gujarat, especially regarding how power is bought and priced for wind-solar hybrid projects
To sum up, the decisions made by the Commission regarding connections and their transfers will apply to all renewable energy projects, including wind, solar, and wind-solar hybrids. This comprehensive approach is intended to simplify the regulatory process and enhance the viability of renewable energy projects in Gujarat, reinforcing the State's commitment to sustainable energy generation.
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