Partnership to Advance Clean Energy - Deployment (PACE-D) TA Program The IIIrd Knowledge Exchange Workshop for States Development of Solar Rooftop in Karnataka 30th June, 2016 Presented by The USAID PACE-D TA Program
Development of Solar PV Rooftop Framework in the State Targets Policy Framework for Solar Rooftop Incentives Defining Roles Net Metering Regulation for Solar Rooftop Framing Guidelines Gross Metering Possible Business Models for Solar Rooftop Net Metering Implementation Framework for Solar Rooftop Guidelines for State Utilities for Solar Rooftop List of Developers/ Equipment Suppliers/ Financial Institutions etc for Solar Rooftop
Development Stages and Key Stakeholders – Solar Rooftop Policy Regulation Implementation State Distribution State Electricity Department of Power & Company/ Consumers/ Regulatory Renewable Energy, System Providers/ Commission (SERC) State Government (No Channel Partners (Key (Minimal Role in Role in Role in Implementation) Implementation) Implementation) System Provider Utility Consumer Cost Benefit Analysis and System design Process design & integration Investment Meeting technical standards with utility business practices Application/ Identification of and utility requirements Formats and Forms system provider
Genesis of Solar PV Rooftop Development in the state of Karnataka – Policy Initial Development of Solar PV Rooftop in Karnataka: • Development of solar rooftops in Karnataka started in 2009 with the announcement of the Karnataka RE Policy 2009-14. • The policy set a target of deploying 25,000 solar rooftop installations with a capacity between 5 and 10 kWp using the Net Metering facility under the ‘Solar Karnataka Program’. • The policy covered individual homes and commercial establishments and provided a tariff of INR 3.40/kWh for export of power over and above the internal consumption under the Net Metering facility. • Program was not as successful due to the low export price provided under the Net Metering scheme as well as the higher cost of solar generation when compared to the cost of power from the distribution utility. • Karnataka Solar Policy 2014-2021: To add 2000 MW solar power by 2021 which would include a minimum of 400 MW by 2018 • National Solar Mission Target for the state of Karnataka: 2300 MW by 2022 4
Regulatory Intervention for Development of Solar PV Rooftop Development in the state of Karnataka • Karnataka Electricity Regulatory Commission (KERC) ON 10.10.2013 determined Tariff for Grid Connected Solar Roof Top power plants • Roof Top Solar PV plants (Without Subsidy) - Rs. 9.56/ kWh • Roof Top Solar PV plants (With Subsidy) - Rs. 7.20/ kWh • This tariff was applicable to all solar PV Rooftop plants entering into a PPA with the distribution utilities until 31st March, 2018. The settlement period was monthly • The Order allowed any consumer to set up solar PV rooftop plants upto a capacity of 1 MW • The distribution utility was made responsible for facilities to evacuate power from the interconnection point and was not allowed to charge augmentation fee as well. • The developer was responsible for providing evacuation facility up to the point of interconnection point.
The Process laid down very specific steps for BESCOM and the consumers CONSUMER’S ACTIVITIES DISCOM’S ACTIVITIES STEP 1: STEP 2: Submission of application for Screening and preliminary approval • General screening interconnection with: • Consumer information • Technical feasibility • PV system capacity • Approval • Other required information STEP 3: STEP 4: • • Installation of system Inspection and commissioning of PV • Testing of system system • • Call for inspection & interconnection Chief Electrical Inspector/ Third party inspection as applicable
Based on the directions of the Policy makers and Regulators, BESCOM developed a comprehensive Interconnection Process for Net Metering Applicant downloads the Application Formats and Guidelines from the BESCOM website. APPLICATION PROCESS Applicant submits the Application Form online or offline duly attaching copy of electricity bill, photo and necessary certificates. Registration Fee shall be paid at Sub-division. If offline application is received, Assistant Executive Engineer (AEE) converts it into online format. REVIEW Upon review at Sub-division, Assistant Executive Engineer issues approval letter for LT installations while Executive Engineer (EE) issues approval letter for HT installations. INSTALLATION After installation of PV system, Applicant pays Applicant takes corrective action and applies again. Facilitation Fee, procures bi-directional meter, gets it tested at MT division and submits test reports. AEE/ EE (O&M) of Sub-division signs PPA with Consumer. Utility provides suggestions and reasons for failure. Consumer requests for commissioning. FAILS COMM.* After request of Applicant, AEE/ EE (O&M) tests, PV system commissioning test. commissions and synchronizes PV system. PASSES BILLING File is sent to Revenue Section in O&M Sub-division Utility issues Certification of Synchronization to for billing. Applicant. *Note: ‘Comm.’ means ‘Commissioning’
The implementation framework also defined an institutional setup for solar rooftop deployment within the utility
Capacity Building - Imparting Training to Engineers of all ESCOM’s and developing Process and Technical Committees • BESCOM in association with USAID implemented three training programs for engineers of BESCOM and other ESCOMs • Between December 2014 and March 2015, BESCOM trained close to 250 engineers • The Technical and Process Committee have been constituted by BESCOM and have representatives from USAID PACE-D TA Program, GERMI, CPRI, etc. • These two committees meet once every two months and address issues related to the technical and process aspect of solar PV development • These two committees allow BESCOM to leverage external expertise and keep the utility updated on latest technology trends and issues impacting solar PV rooftop development
Facilitating efficient solar rooftop project development – through the Tripartite Agreement and Empanelment of Vendors for key components • BESCOM developed a Tripartite Agreement which allowed the pass through of all solar revenues to the investor in case of Third Party based investments • brought in investor confidence and also facilitated financing of solar projects • Developed very stringent empanelment procedures for inverters and Net Meters • Empanelment of these two critical components ensured the safety of the grid as well as the commercial transactions • However allowed a multitude of developers/ EPCs to provide services – enhanced competition
Educating the prospective applicants through Outreach • Through BESCOM website (www.bescom.org) • Through the BESCOM SOLAR HELPDESK: (Land line No: 080-2234-0816 & e mail id: solarhelpdesk@bescom.co.in) • Through Newspaper adds and Pamphlets. • Through Radio Jingles and T.V. • Through TV screens of Railway reservation and ticketing Counters. • By putting up stalls in Exhibition Centres • Through all the field staff of BESCOM • Through a Process Manual for all key Stakeholders which focusses on requirements of Consumer, System Installer etc.
Introduction of Gross Metering • It was found that a large majority of the consumers were not finding it worth their while to participate in the solar rooftop program • The DISCOMs serve approximately 20 million retail consumers in Karnataka • In terms of energy sale, Agriculture is the biggest (36%) consumer followed by Domestic (21%). • These categories were not benefiting from solar rooftop because of viability issues • At the same time the utility was losing out on high paying consumers and also not benefiting from distributed generation • Unless some new directions were provided, the utilities would continue to suffer from revenue reduction and not enjoy the benefits of distributed generation • BESCOM petitioned for Gross Metering for Solar Rooftop which was granted by the KERC 12
Key Issues Impacting Solar Rooftop Development – Administrative Processes and Regulation • Long and arduous Approval and Commissioning Process – Very happy with application process – efficient and timely – Approvals can take up to three months – suggestion to make the approval process automatic post a specific period of time like by Andhra Pradesh – Commissioning process is also very long – to much documentation required and is cumbersome • Grid Availability – Grid availability is good in urban areas but is a challenge especially in semi-urban and rural areas - • Adoption of Gross Metering for Domestic, Educational & Health – Domestic consumers not too happy with the reduction in tariff post introduction of FiT – Consumers/ developers feel that Gross FiT is very low for the health and educational sectors – does not meet RoI requirements – also they are hurt by the high cost of customer acquisition – Net metering option should be available for these segments as well – For health and educational institutions – interconnection at 11 kV level is a challenge – costs go up/ commissioning time increases 13
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