Net Metering implementation in Indian States for Rooftop Solar Deployment - State in Focus : Madhya Pradesh

Transcription

1 Net Metering implementation in Indian States for Rooftop Solar Deployment - State in Focus : Madhya Pradesh 23 September 2015 Partnership to Advance Clean Energy - Deployment (PACE-D) Technical Assistance Program

2 Program Overview USD 20 million, five year bilateral program between the U.S. and India to accelerate clean energy deployment ( ) Being implemented by Nexant Inc. and a consortium of Indian and U.S. partners. Energy Efficiency Renewable Energy Cleaner Fossil 2

3 Program Objective 3

4 Program Snapshot 4

5 Tasks under Renewable Energy Component Institutional Development and Strengthening of State Policy & Regulatory Framework for RE Deployment Improve capacity of SNAs and SERCs, and develop enabling policy and regulatory environment for market deployment of RE Market-driven RE Technology Deployment Create a RE market via demonstration of technocommercially viable pilots in the off-grid/storage domain and develop a national level apex RE institution Technical Assistance and Capacity Building to Develop and Implement Innovative Finance Mechanisms Identify and design innovative financing mechanisms to facilitate deployment of marketdriven RE Capacity Building, Training, Outreach, Dissemination and Sharing of Best Practices Improve capacities of stakeholders on policy, regulatory and technical aspects for large-scale RE deployment Regulator Partnership Build partnerships between regulators in India & the U.S. to bolster institutional capacity & practices in market Microfinance Support Program Enhance microfinance lending for RE technologies - particularly for women and energy access in rural areas 5

6 Key Outputs under Renewable Energy Component 6

7 Key Achievements under Renewable Energy Component 7

8 PACE-D TA Program - Renewable Energy Achievements Solar Rooftop BESCOM s Solar PV Rooftop Program launched [1.5 MW (16.5 MW- pipeline)] Solar rooftop program for Rajasthan designed IOCL 5MW Rooftop deployment at 3 refineries Policy Directive by IOCL - all buildings to deploy rooftop solar Proposed 30 MW rooftop deployment on refineries, petrol pumps etc. Indian Railways : 50 MW Solar Rooftop Program Solar Rooftop Evaluation Tool launched for use by Banks and Developers 4 Solar Rooftop Training Programs Training & Capacity Building Solar Energy Training Network (SETNET) Launched with 35 partners National Workshop on Clean Energy Regulations & Policies Organized Solar Pumping Grid Connected Solar Pumping with BESCOM: Design of Pilot under Surya Raitha Scheme : 2 MW (256 pumps; INR 21 Cr) Shared Service Model for Decentralized Solar Water Pumping: 0.05 MW Microfinance Support Program Clean Energy Lending Program launched with 7 MFIs Pilot lending projects initiated with 2 MFI s solar products sold in 3 months 1,234 person hours of training delivered Renewable Energy Financing Decentralized Distributed Generation Debt Fund with The Climate Group (corpus Rs. 2.5 Crore) Green Bonds - IIFCL (500 Cr.), IREDA & Yes Bank Infrastructure Debt Fund (IDF-MF) with IIFCL ~ Rs Cr. Distributed Renewable Energy Community Fund with CREDA

9 India s solar rooftop journey has just started - the sector has the potential for rapid scale up right now the sector is still in infancy India s solar rooftop market potential ~124 GW India has set an ambitious target of 40 GW by States have notified Solar Policy s supporting grid connected rooftop systems 19 states/ UTs have notified regulations for net metering/feed-in-tariff mechanisms Sector Installed by SECI (MW) Installed by States (MW) Total installed (MW) Commercial Government Hospital Institutional (Schools, Collages) Religious institution Residential Total

10 Programmatic approach : working on policy advisory, program and process design, capacity building of key stakeholders and knowledge creation Policy and Regulation Rajasthan and Karnataka Program Design Indian Oil & Indian Railways Process Design and Standardization BESCOM & JVVNL Financing (IREDA & TATA Cleantech) Capacity Building NISE/ BESCOM/ JVVNL Knowledge Creation MNRE & GERMI

11 We have been using the programmatic approach to address a number of diverse yet critical solar rooftop eco-system areas for sola rooftop deployment the most critical of which have been Program Design and Process Design Program Design & Development Identifying opportunities (IOCL & IR - Refineries, retail outlets and stations/ workshops) Defining potential/ location of sites 3 refineries (IOCL), 4 workshops/ stations (IR)/ 500 retail outlets Feasibility Analysis and Business Case Development (IOCL/ IR) Allotment of Incentives/ deployment support (IOCL) Bid design and financial feasibility analysis Implementation Support (5 MW (IOCL) / 50 MW (IR)) Process Design Mapping process for interconnection for state utilities (BESCOM & JVVNL) Designing forms, formats, systems and procedures for rooftop for BESCOM & JVVNL Identifying Best Practices for Implementation & assisting adoption of standards and empanelment of suppliers

12 However we feel that designing the appropriate incentive structures and backing these up with the right tools like training and knowledge management are equally important in the medium to long term Policy & Regulation Designing the Net Metering Framework for Solar Rooftop Program Roll out (Rajasthan) Supporting Utility Petition for rooftop & release of regulation (Rajasthan) Designing Alternate Incentive Structures for Rooftop Promotion (e.g. Feed in Tariffs for Karnataka) Capacity Building/ Financing & Knowledge Management Best Practices Guide for Promotion of Solar Rooftop Solar Rooftop Evaluation Tool for FI s Training Program design for Utilities and key stakeholders on solar rooftop

13 Broad Objectives Energy Security Reduction of Losses Reducing burden from Utilities Optimizing Infrastructure Investment Development of Solar Rooftops Defining Roles Framing Guidelines Gross Metering Rooftop Policy/Regulations Market Models Setting Targets Incentive/ Subsidy Net Metering Self Owned or 3 rd Party Owned Implementation Framework by Utilities Self Owned or 3 rd Party Owned Case to case basis On available capacity 13

14 Development Stages & Key Stakeholders Policy Regulation Implementation Department of New & Renewable Energy, Government of Madhya Pradesh (No Role in Implementation) Madhya Pradesh State Electricity Regulatory Commission (Minimal Role in Implementation) State Distribution Company/ Consumers/ System Providers/ Channel Partners (Key Role in Implementation) Consumer Cost Benefit Analysis and Investment Application/ Identification of system provider System Provider System design Meeting technical standards and utility requirements Utility Process design & integration with utility business practices Formats and Forms

15 Broad requirements for designing Implementation Framework Phase -1 Information Access Phase-2 Application Process Phase-3 Application Screening Phase-4 Installation/ Inspection Phase -5 Post Installation To develop information bank for Consumers to educate them with respect to solar rooftop, Connectivity requirement, safety etc. To develop Multi User Application form required for availing net metering facility/ connectivity Developing process to examine and Shortlist the application based on technical and safety parameters To Approve & Inspect the rooftop facility before interconnectio n with the grid To perform period checks/ inspections Metering, and monitoring of technical parameters and Network Condition 15

16 Installation and Commissioning Utility Review Process Application Process Process flow diagram Applicant collects the application form and other key documents (Web portal, Sub Division) Yes Applicant submits the duly filled Application form (sub division ) Yes If, Application form fails to clear general screening Utility shall provide suggestions and reasons for rejection of application Utility performs general screening of application form Yes Utility performs technical screening of application form Yes Utility approves the Interconnection Application Yes Applicant installs rooftop facility and Informs utility for commissioning test Yes Utility conducts the commissioning test and authorizes operations No No If, Application clear general screening, utility signal go-a-head No If, Application clear technical screening, utility signal go-a-head Yes Utility shall provide suggestions and reasons for failure If the rooftop facility fails to clear the Commissioning test If, Application form fails to clear technical screening - seek relevant information If required, Utility will sign Interconnection agreement with consumer Inspection by CEI The serviced RR docket will be sent to S.Div. for Billing

17 Eligibility for Fast Track Process Fast Track eligibility is determined based upon the following : Electrical System Conditions System Capacity Voltage level (location, type of line at the Point of Interconnection) Network Condition (Feeder Capacity, DT loading, Sub Station ) Code, Standards, Certification Requirements The capacity of solar rooftop generating facility should not exceed the particular limit fixed by the utility (Generally system below 10 kw capacity) Pre-approved modules, Inverter and other key components are utilised by the system installer For Fast Track Process empanelment of specific vendors is key 17

18 Utility HQ Division Institutional Setup Required for the Utility Framing Guidelines, Information Manual, Forms/Formats, Agreements Approving Equipment suppliers/vendors, Equipment models, Meters etc.???? Managing the overall implementation framework Organising training programmes for utility staff and key stakeholders Establishing multiple communication channels for consumers Signing of agreements??? Like commercial agreements / PPA Monitoring Grievance/Complaints registered by the consumer Recording and managing operations of the grievance handling cell Sub-Division Metering and billing of energy supplied to or injected from the SRT facility Records of Net Metering applications and consumers Application screening and interconnection approvals Monthly invoice for net energy billed to consumer/ payment to consumers Status update of application forms/complaints Providing information to consumers about the process, forms, formats Sub Station General and technical feasibility study of application form Pre and post installation Inspection of solar rooftop facility Commissioning and synchronisation of solar rooftop facility Meter reading and maintenance of safety of the network 18

19 Issues faced by Utilities Who signs the PPA - ESCOM HQ or the Divisions? Identifying certified inverters and meters Who does that/ at what level/ what is the process/ how does this information trickle down or up to the operations? PPA How is the PPA rate decided if subsidy has not been committed to? Overall institutional structure and roles and responsibilities at different levels Training, capacity building and technical backstopping for utility personnel Customer interactions and awareness generation 19

20 Application Form Application Register Feasibility Report format Approval Letter Typical Net Metering Framework Application form for Eligible consumers to apply for Net metering facility Application register for utility to make record of net metering applications Feasibility report format for utility to record technical feasibility parameters of project Approval letter for consumers on approval of technical feasibility of their project Commissioning Letter Synchronizing Report format Commissioning letter for consumers on commissioning of their project Synchronizing letter for successful synchronisation of the project with the utility grid Bill format Bill format for consumers opting for net metering facility from Utility PPA Guidelines for Utility Schematic diagram PPA between the Utility and consumers for sale/purchase of surplus solar energy Guidelines for Utility staff for implementation of net metering Schematic diagram for net metered system for utility and consumer reference FAQs Frequently asked questions for providing clarification to Interested/eligible consumers 20

21 Typical Issues Availability, Testing and Procurement of Net Meters Guidelines for Consumers Online Submission of fees with application form Consumers should be able to apply and pay fees / deposits online Capacity building of implementation staff Ground staff s competency to be built to resolve day to day consumers queries Promotion of Scheme reach of scheme will be restricted if only through web portal Grievance Handling Solar help desk Empanelment of implementing agencies Publishing one time standard approved drawings by CEI instead of insisting on approved drawings for every SRTPV installation. 21

22 22 PACE-D comments on MP draft Net Metering Policy...(1/2) Target Capacity adopt specific targets with clear timelines for achieving these targets. Gross Metering include Gross Metering i.e. FIT route as an alternative option for eligible consumers to develop and implement solar rooftops Business Models include different business models for the promotion of solar rooftops in the final policy document. Eligibility and other Conditions also cover eligible consumers, mechanisms for identifying suitable locations, advice on permissible system size for different consumer categories, connectivity levels, equipment standards etc.

23 PACE-D comments on MP draft Net Metering Policy...(2/2) Registration and Post registration process project registration process should be covered in detail with technical conditions, Interconnection requirements to avail Net Metering facility by consumers Promotional Incentives provide more incentives for rooftop developers for at least first five years of policy operation. Sale of Surplus power Sale of Surplus Power should be replaced with surplus power generated after fulfilling captive consumption requirements shall be purchased by the distribution utility at APPC 23

24 PACE-D comments on MP draft Net Metering Regulations...(1/2) Scope and Application to primarily focus on developing solar distributed generation through net metering. The draft regulation allows other RE technologies also to take part under the Net metering scheme Target Capacity specify the target capacity under the regulations Capacity of distribution transformer allow maximum of 50-75% of available distribution transformer capacity for net metering arrangement. Individual project capacity specify project capacity (Max/Min) for an individual consumer under the net metering arrangement to be in-line with the sanctioned load or contracted load or contracted demand of the consumer. 24

25 PACE-D comments on MP draft Net Metering Regulations...(2/2) Energy Accounting and Settlement the settlement of energy credits that remain un-utilized at the end of the financial year should be settled and credited as per the Solar Feed in Tariff determined by the Commission on annual basis.. Provisions for Safety add provisions with respect to safety in the final regulations Interconnect ion Process add detailed process for Interconnection of Solar PV Rooftop Systems Fees and Timelines the timelines for processing the application and fees/charges to be paid by consumers should also be included in the final regulation. 25

26 PACE-D Assistance to MP DISCOMs developing the overall implementation framework required for implementation of net metering establishment of institutional framework required to implement Net Metering Scheme training, capacity building and technical backstopping for utility personnel developing capacity of key personals by holding Stake holder consultations, knowledge exchange programs with other State utilities and regulatory bodies sharing of key information, notes, inputs etc. as and when required for implementation of Net Metering. 26

27 Yuvaraj Dinesh Babu, Chief of Party, USAID PACE-D Key Partners: RE Component Capacity to design and implement supportive policies and regulations Implementation of techno-commercially viable pilots Design and development of innovative financing mechanisms Thank You! Microfinance Partners

28 Key Stakeholders 28

29 Issue net metering regulations Amending existing regulations Drafting/ approving Model PPA/Net Metering agreement Interconnection agreement approval Approving tariff for Net export Clarity on OA charges, wheeling, Banking etc. Regulatory Commission Key Stakeholders of Net Metering Eligible Consumer Accessing Information Evaluating potential Opportunity Meeting & engaging utility Engaging system provider/technical expert Cost benefit Analysis Filling application forms and formats Preparing relevant documents Financing the system System design Network layout design Preparing Line diagrams Following technical standards Following utility guidelines Meeting with utility (if required) Assisting consumer in getting clearances /Approvals Educating/supportin g consumer System Installer Distribution Utility Information manual Establishing multiple channels Drafting forms, formats etc. Invite/ Accept applications System Study, load flow study Inspection, Monitoring Changes in metering and billing system Safety and Protection 29

30 Interconnection Process 30

31 Step-1 Step-2 Step-3 Step-4 Information Access Major Steps for Interconnection Application General Filling & Application Submission Screening Technical Application Screening 1. Utility will develop information channel to disseminate information to Eligible Consumers 2. Consumer will collate information and will evaluate other potential opportunities 3. Once consumer is convinced, will proceed to next stage of filling application 1. Consumer provides all the required information 2. Consumer submits the application form (online or in person) 3. Upon receiving utility provides acknowledgemen t receipt 4. Consumer tracks application status 1. Utility performs general screening based on information provided by the consumer 2. On clearing general screening consumer is required to provide details for technical screening 3. If general screening is not cleared, application will be rejected 1. Technical information provided by the consumer shall be evaluated 2. If utility finds it feasible it clears the application to next level 3. If utility find some complication it will suggest other possible options to consumers to proceed further 31

32 Step-5 Step-6 Step-7 Step-8 Document Submission Major Steps for Interconnection Modification Interconnection required for Approval & interconnection Project Installation Inspection & Commissioning 1. To evaluate the feasibility of interconnection, Utility will require additional Information from applicant 2. Electrical line diagram, Cert. from structural Engr., Ownership proof, Safety measures, grounding protection etc. 1. In case the application fails the technical screening, utility will suggest possible modification to accommodate the proposed interconnection 2. On acceptance of modification, The cost of modification shall be borne by the applicant 1. On finalising the modification in the proposed application utility shall approve the interconnection 2. Utility shall give go-a-head signal to consumer for project installation 3. Applicant will install the SRTPV facility on utility guidelines 1. On Completion of project installation, applicant will inform the utility for final inspection & Commissioning 2. Utility will perform final inspection clears the inspection test 3. Utility will synchronies and commission the plant 32

33 Procedure for Interconnection Approval Fast track process Steps Eligibility Application Review Interconnection Agreement/PPA (if Required) Fast Track Process Consumer are eligible to take part in fast track process based on the following conditions System Capacity Module (type, Model, Standard, Manufacturers etc.) Inverter (Model, Make, Technical specification etc.) Voltage level (location, type of line at the Point of Interconnection) Network Condition (Feeder Capacity, DT loading, Sub Station ) Code, Standards, Certification Requirements Screening Location of Interconnection, Equipment to be installed Aggregate generation on proposed line including the proposed SRTPV Proposed SRTPV, Inverter Specifications and Operation Parameters Study of maximum fault current of distribution circuit Study of impact on protective device and other equipment connected on the same network Study of type of Interconnect (Single or 3 phase) including line configuration and transformer connections Checking of phase imbalance, if Interconnection is single phase Checking the limit of cumulative generation capacity on the network On passing the screening process, the utility approves the interconnection application and will sign interconnection agreement (depends on utility regulatory requirements for different consumer categories) If the application fails the screening, then the utility may provide another opportunity to make system modification and suggest way forward 33