Workshop on "Open Access through Power Exchange in Maharashtra“ Venue : Conference Hall, Vidarbha Industrial Association, Nagpur. Date: Organised jointly by Indian Energy Exchange Limited & Vidarbha Industrial Association

Welcome Presentation on MERC’s Distribution Open Access Regulations Dt At Nagpur

Presentation By: T. N. Agrawal & Co. Accredited Energy Auditors & Consulting Engineers, Nashik.

Brief about past Dist. OA Regulations Dist. OA reg.-2005: Allowed OA through power exchange till Dist. Open access Regulation published in June Week ahead - though power Exchange permitted. No scope for day ahead- power Exchange. Not a single consumer could avail OA through power exchange due to non-availability of week ahead market with power exchanges. Power trading in Maharashtra through power exchange was discontinued completely from onwards. Hence, some of the Industries initiated action for amendment in OA regulations 2014.

Who initiated action for change in Dist. OA reg Industries initiated action for amendment in OA Reg UP Twiga Fiberglass Ltd., Ambernath 2. Videocon Industries Ltd, Aurangabad 3. Piaggio Vehicles Pvt. Ltd., Baramati 4. Jindal Poly Films Ltd., Nasik 5. Nagreeka Exports Ltd., Kolhapur 6. Jawahar Shetkari Sahakari Soot Girni Ltd., Dhule 7. KTST Engineers Pvt. Ltd. Nashik. & supported by Indian Energy Exchange Limited.

21 st May-2015 at World Trade Centre, Mumbai

Brief about past action by Group of Industries 1. Letter to MERC sent by the Industries in April 2015 for amendment of OA Reg Highlighted OA regulation deficiencies during public hearing for fixation of tariff conducted by MERC at Vashi (17 th March-15), Nashik (1 st April-15), Aurangabad (6 th April- 15). 3. Group met with Chairperson, MERC on 21 st May-15 & discussed difficulties of trading through energy exchange. The MERC advised to submit data of other states on day ahead transactions. 4. All necessary data as provided by IEX submitted with joint signature of Industries to MERC on 10 th June MERC published new draft distribution open access regulations-2015 on Meeting for comments on draft OA regulation-2015 held at Nasik on and submitted comments to MERC on

Distribution Open access Regulations-2016.

Imp. Definitions-1

Imp. Definitions-2

Imp. Definitions-3

Salient Features of OA Reg ): Eligibility Criteria for OA: Retained same as 1.0 MW. 1. Source of OA: Multiple OA sources now allowed.

Section 3.1 of OA Reg Maximum Demand of OA consumer in each financial year Should be =/> 70% of the threshold level at which he has become eligible for OA. If the consumers fails in achieving MD in 3 consecutive months, the Distribution Licensee shall be entitled to levy a penalty equal to 2 x wheeling charges for the financial year or part thereof for which he had failed to achieve such MD & initiate action for reassessment / reduction of CD.

Section 4.0: Processing of application for Dist. O.A. Application to be made with Nodal Agency as per format provided Annexure-I The distribution co. to issue procedure within 30 days on issue of regulations. In case procedure is not issued, the old procedure to folllow to commence open access.

4.2 Revision of Contract demand

Reduction of CD Reduction of CD in case of partial open access consumers. No separate section appears in OA regulations for CD reduction. However as per defn. of billing demand, CD needs to be reduced. MSEDCL to declare about CD reduction in the procedure to be laid down. Advantage : Lesser demand charges payable to consumer. Disadvantage: Risk of Temp. tariff imposition exists.

7.2 Duration of Open Access

Application submission time for intra-state open access (within MH.), section-9, 10 & 11 Application time for MTOA: The Application to be made between 3 to 12 months prior. Earlier it was 5 to 12 months period. Application time for STOA: The Application can be made 4 months advance, but not later than 10 th day of the preceding month.

Inter-state open access (Out of MH): OA reg. Section 8.3 reads as:

Table of OA reg. section 8.3 for Short term OA through power exchange

11.9: Renewal of STOA Upon expiry of the period of Short-term Open Access, the Consumer, Generating Station or Licensee, as the case may be, shall not be entitled to any priority for renewal of the term.

13. Allotment Priorities In case of STOA & MSEDCL anticipate congestion in network, wheeling chargers shall be decided by bidding process.

29. Curtailment Priority Because of grid problem or any other issue

Over-drawal: Over-drawal by an Open Access Consumer shall be settled at the higher of the following: (i) the System Marginal Price (‘SMP’) plus other incidental charges (Net Unscheduled Interchange (‘UI’) charges, additional UI charges) or any other intra-State Availability-based Tariff (‘ABT’) settlement charges as identified under the mechanism operating in Maharashtra from time to time or, (ii) the Energy charge or Variable Charge of temporary Tariff category, whichever is applicable, as determined by the Commission in respect of the Distribution Licensee.

Under-drawal: In the event of under-drawal, the Open Access Consumer shall not be paid any charges by the Distribution Licensee:

Over-drawal/ Under-drawal of Power 1010 Overdrawal of power To be charged by temp. tariff to consumer No change 1 Under drawal Units goes as waste, no compensation payable by MSEDCL to the consumer No change

20. Banking of Renewable Energy generation Regulation 19.3 (over inj. & under-inj.) shall not be applicable in case an Open Access consumer obtains supply from a Renewable Energy Generating Station identified as ‘non firm power’ The surplus energy from a ‘non-firm’ Renewable Energy Generating Station after setoff shall be banked with the distribution licensee The banking year shall be the financial year from April to March.

20. Banking of Renewable Energy generation, contd Banking of energy shall be permitted during all 12 months of the year: Provided that the credit for banked energy shall not be permitted during the months of April, May, October & November. Energy banked during peak TOD slots may also be drawn during off-peak TOD slots, but the energy banked during off-peak TOD slots may not be drawn during peak TOD slots.

20. Banking of Renewable Energy generation, contd Banking charges shall be adjusted in 2% of the energy delivered at the point of drawal The unutilised banked energy at the end of the financial year limited to 10% of actual generation shall be purchased by the Distribution Licensee at its Pooled Cost of Power Purchase.

Power to remove Difficulties in OA Reg.2016.

MERC’s RPO Regulations, 2016 Now the consumer having contract demand < 5 MW is not required to fulfill RPO obligation for the period from to (4 years).

THANKS T.N. Agrawal & Co., Nashik Cell No