Aptel sets aside TNERC’s 2018 wind tariff order restricting power banking facility
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The facility allowed wind power turbines to promote surplus power for distribution
The Appellate Tribunal for Electricity (Aptel), New Delhi has set aspect wind tariff order issued by Tamil Nadu Electricity Regulatory Commission (TNERC) in 2018, which imposed restrictions on use of power banking facility and elevated many different fees.
In the tariff order issued on April 2018, TNERC had restricted using banking facility for one month for wind initiatives commissioned on or after April 1, 2018. For initiatives commissioned on or earlier than March 2018, the banking facility was allowed to proceed for 12 months.
The banking facility allowed captive wind power turbines to promote surplus power to distribution firms. Through the facility, wind power producers feed the electrical energy generated by their windmills into the State grid and draw the power for captive use throughout the banking interval. In its 2018 tariff order, the TNERC additionally elevated the banking fees from 12% to 14% and in addition withdrew the banking facility for all wind vitality stations promoting power to 3rd occasion. It additionally effected a rise in cross subsidy surcharge from 50% to 60%, whereas the wheeling and transmission fees had been elevated to 50% from 40% of what was relevant for typical power.
The TNERC had fastened fee-in-tariff at ₹2.86 per unit with out accelerated depreciation (AD) and ₹2.80 with AD on the market of power to the State utility and in addition diminished the delayed fee levy to 1% curiosity from 1.5%.
In the current case, Tangedco had moved Aptel in opposition to TNERC permitting the banking facility to proceed for present captive initiatives, whereas Tamil Nadu Spinning Mills Association, Indian Wind Power Association, Watsun Infrabuild Pvt. Ltd had been aggrieved by the restrictions on banking facility for future initiatives and in addition improve in fees.
Aptel famous that a number of State Commissions have been struggling to search out truthful and equitable options to the vexed points arising from power banking and mentioned advert hoc method is extra guilty for such state of affairs.
“The Regulations framed by TNERC [which have the force of law] do envisage banking facility. While we are very clear in our mind that so long as the preferential treatment for renewable sources of electricity is mandated by law and public policy, the benefit of power banking cannot be taken or wished away,” it added.
Aptel additionally requested the Central authorities to name upon the Central Electricity Authority to undertake the required examine and advocate truthful and equitable options on the problem, balancing the curiosity of all stakeholders. It additionally mentioned orders on the problem prevailing earlier than the 2018 order shall stand restored and TNERC shall guarantee all vital consequential orders are handed and its instructions are scrupulously complied with by all involved. Aptel directed that the State Commission shall not result in adjustments within the guidelines for power banking by any additional order with out enterprise a examine primarily based on information.
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