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State of Himachal Pradesh - Section

Section 17 in Himachal Pradesh Electricity Regulatory Commission (Promotion of Generation from the Renewable Energy Sources and Terms and Conditions for Tariff Determination) Regulations, 2017

17. Capacity enhancement.

(1)Where, after the allotment of the original project, the capacity of a small hydro project is enhanced, with the approval of the State Government, the tariff for sale of net saleable energy from such projects, shall be governed by the relevant provisions of sub-regulations [(2) to (8)] [Substituted '(2) to (7)' by Notification No. No. HPERC/428, dated 28.1.2019.], as applicable.
(2)[ Where, prior to commencement of Himachal Pradesh Electricity Regulatory Commission (Promotion of Generation from the Renewable Energy Sources and Terms and Conditions for Tariff Determination) Regulations, 2017-
(a)any part of the original capacity as well as that of the additional capacity has been synchronized with the grid at least once; or
(b)joint petition(s) for the approval, whether under the REC mechanism or on long term basis, of PPA(s) in relation to the original capacity as well as of the supplementary PPA in relation to additional/enhanced capacity, has/have been filed before the Commission; or
(c)PPA(s), or the supplementary PPA, whether under the REC mechanism or on long term basis, for purchase of net saleable energy from the original capacity and the additional capacity or the enhanced capacity has/have been signed by the concerned developer with Distribution Licensee;
the tariff(s) for the original capacity and the additional capacity, or the composite rate for the enhanced capacity as the case may be, and the associated conditions for each of such tariffs, shall be regulated as per the provisions of Himachal Pradesh Electricity Regulatory Commission (Promotion of Generation from the Renewable Energy Sources and Terms and Conditions for Tariff Determination) Regulations, 2012.
(3)Where, prior to commencement of Himachal Pradesh Electricity Regulatory Commission (Promotion of Generation from the Renewable Energy Sources and Terms and Conditions for Tariff Determination) Regulations, 2017,-
(a)in relation to the original capacity of the project or a part thereof,- (i) either synchronization of the same with the Grid has taken place at least once, or (ii) a joint petition for the approval of PPA for purchase/sale of net saleable energy has been filed before the Commission, or (iii) the PPA for the sale/purchase of net saleable energy from the same, whether under REC mechanism or on long term basis, has been signed by the developer of the concerned project with the Distribution Licensee; and
(b)in relation to the additional capacity of the project or a part thereof,—(i) neither any synchronization of the same, with the Grid has taken place even once, nor (ii) any joint petition for approval of any PPA (or supplementary PPA), in relation for such additional/enhanced capacity, whether under REC mechanism or long term basis, has been filed before the Commission, nor (iii) any PPA, or supplementary PPA, for such additional/enhanced capacity has been signed by the developer of the concerned project with the distribution licensee for such additional/enhanced capacity;
the tariff for the net saleable energy in relation to the original capacity shall be determined as per the provisions of Himachal Pradesh Electricity Regulatory Commission (Promotion of Generation from the Renewable Energy Sources and Terms and Conditions for Tariff Determination) Regulations, 2012 and the same for the additional capacity shall be determined as per the provisions of Himachal Pradesh Electricity Regulatory Commission (Promotion of Generation from the Renewable Energy Sources and Terms and Conditions for Tariff Determination) Regulations, 2017 as applicable on the date on which the joint petition for approval of PPA in relation to the additional capacity/enhanced capacity is filed before the Commission or on the date on which such additional capacity, or a part thereof, is synchronized with the grid for the first time, whichever is earlier.
(4)Where, prior to commencement of Himachal Pradesh Electricity Regulatory Commission (Promotion of Generation from the Renewable Energy Sources and Terms and Conditions for Tariff Determination) Regulations, 2017,-
(a)no part of the original or enhanced capacity has been synchronized with the grid even once; and
(b)no joint petition for the approval of PPA(s), whether under REC mechanism or long term basis, in relation to any part of the enhanced capacity of the project, i.e. the original capacity and/or for the additional capacity and/or for the enhanced capacity, has been filed before the Commission; and
(c)no PPA, whether under the REC mechanism or on long term basis, for the original capacity or for the additional capacity or for the enhanced capacity or any part thereof has/have been signed by the developer of the concerned project developer with the Distribution Licensee; and
(d)the joint petition(s) for approval of PPA(s) or for the supplementary PPA, in relation to of the original capacity as well as for the additional capacity or for the enhanced capacity is filed before the Commission for the first time only after the commencement of Himachal Pradesh Electricity Regulatory Commission (Promotion of Generation from the Renewable Energy Sources and Terms and Conditions for Tariff Determination) Regulations, 2017;
the tariff for the net saleable energy for the relevant capacity/capacities for which PPA, or supplementary PPA, is sought to be approved shall be fixed in accordance with the norms and Generic Levellised rate and other conditions as per the provisions of Himachal Pradesh Electricity Regulatory Commission (Promotion of Generation from the Renewable Energy Sources and Terms and Conditions for Tariff Determination) Regulations, 2017 as applicable on the date(s) of filing such petition(s) or on the corresponding date(s) of synchronization of any such part capacity(ies) with the Grid for the first time, whichever is/are earlier:Provided that if separate joint petitions are filed on or after the commencement of Himachal Pradesh Electricity Regulatory Commission (Promotion of Generation from the Renewable Energy Sources and Terms and Conditions for Tariff Determination) Regulations, 2017, for approval of PPAs, or the supplementary PPA, before the Commission in relation to the original capacity and the additional capacity, the provisions of Himachal Pradesh Electricity Regulatory Commission (Promotion of Generation from the Renewable Energy Sources and Terms and Conditions for Tariff Determination) Regulations, 2017, as applicable on the respective dates of filing such petitions, or the respective dates of synchronization of the corresponding capacities, whichever are earlier, shall apply.
(5)Where different sets of Commission’s regulations as per sub-regulation 3 of this regulation, or different sets of provisions/norms of Himachal Pradesh Electricity Regulatory Commission (Promotion of Generation from the Renewable Energy Sources and Terms and Conditions for Tariff Determination) Regulations, 2017 as per the provisions under sub-regulations (4) of this regulation, are applicable for the net saleable energy corresponding to the original capacity and for the additional capacity, a composite rate shall be worked out, on normative basis, for the net saleable energy corresponding to the enhanced capacity, as follows, namely:-
(i)the generic levellised tariff applicable for the net saleable energy in relation to the original capacity as per the sub-regulation (3) or sub-regulation (4) as applicable, shall be considered for the net saleable energy in relation to the annual energy generation corresponding to 75% dependable year as per the Detailed Project Report for the original capacity, irrespective of the date of signing of the power purchase agreement for the original capacity;
(ii)for the net saleable energy in relation to the annual incremental energy generation due to enhancement of capacity i.e. the annual additional energy generation which is expected to take place in the 75% dependable year as per the detailed project report for the enhanced capacity, the generic levellised tariff applicable for the net saleable energy in relation to the additional capacity as per the provisions of sub-regulation (3) or sub-regulation (4), of this regulation, as applicable, shall be considered:
Provided that the tariffs considered for the respective energy quantums as per clauses (i) and (ii) of this sub-regulation shall be governed by the respective associated terms and conditions as per the respective power purchase agreements and the applicable provisions for respective capacities:Provided further that in case the applicable provisions for the respective capacities provide for any adjustment of the corresponding tariff, such adjustment(s) shall also be made only for the respective energy quantums as per clauses (i) and (ii) of this sub-regulation under this regulation and the adjusted composite rate shall be calculated accordingly:Provided further that while computing such composite rate, the free power (in percentage) shall, save as provided in sub-regulation (7) , be accounted for as follows, namely:-
A if no separate rates of free power (inpercentage) are provided in supplementary IA for the originalcapacity and for the additional capacity and only composite rateis provided for the enhanced capacity; composite rate of free power (in percentage),not exceeding the limits specified in regulation 36, for theentire capacity i.e. in relation to the original capacity as wellas additional capacity;
B if separate rates for original capacity and forthe additional capacity are provided in the supplementaryImplementation Agreement; Separate adjustments in accordance with thelimits specified in regulation 36 shall be made for the netsaleable energy in relation to the two capacities i.e. originalcapacity and additional capacity at corresponding rates of freepower (in percentage). In such cases the limits as per regulation36 shall be applicable separately for the two capacities:
Provided further that the composite rate for the entire net saleable energy shall, in no case, be higher than the generic levellised rate applicable under Himachal Pradesh Electricity Regulatory Commission (Promotion of Generation from the Renewable Energy Sources and Terms and Conditions for Tariff Determination) Regulations, 2017 as on the date of approval of the PPA for the additional/enhanced capacity or the date on which any part of additional capacity is synchronized, whichever is earlier, for the small hydro project category under which the enhanced capacity falls:Provided further that in cases where the incremental capacity is commissioned in phases, the tariff(s) during such interim stages shall be computed based on such incremental energy generation corresponding to the additional capacity actually installed from time to time.] [Substituted by Notification No. No. HPERC/428, dated 28.1.2019.]
(6)[] [Re-numbered '(5)' by Notification No. No. HPERC/428, dated 28.1.2019.] Where the power purchase agreement has been executed for the original capacity and the renewable energy generator sells energy from the additional capacity, under the relevant Regulations governing REC mechanism, to the distribution licensee with a provision to sell such energy to the licensee for the balance part of the tariff period after exit from the REC mechanism, the following provisions shall apply:-
(i)the tariff for the entire net saleable energy for the residual part of the tariff period shall be fixed/determined in accordance with sub-regulation [(2), (3), (4) or (5)] [Substituted '(2), (3) or (4)' by Notification No. No. HPERC/428, dated 28.1.2019.], as the case may be;
(ii)during the interim period when the energy is sold partly under the power purchase agreement for the original capacity and partly through the REC mechanism-
(a)unless provided otherwise in the power purchase agreement for the original capacity, the tariff applicable for the original capacity shall not be subject to any adjustment, on account of variation in free power, under sub-regulation [(7)] [Substituted '(6)' by Notification No. No. HPERC/428, dated 28.1.2019.].
(b)the total net saleable energy shall be apportioned in a firm ratio on the basis of original capacity and the enhanced capacity.
(7)[] [Re-numbered '(6)' by Notification No. No. HPERC/428, dated 28.1.2019.] In the cases covered by [sub-regulations (3), (4) (5) and clause (i) of sub-regulation (6)] [Substituted 'sub-regulations (3), (4) and clause (i) of sub-regulation (5)' by Notification No. No. HPERC/428, dated 28.1.2019.], the tariff shall be adjusted on account of variation in the free power in accordance with sub- regulations (2) and (3) of regulation 36:Provided that in case capacity enhancement is approved by the State Government, if the percentage rate of free power undergoes change due to-
(i)any change in general policy during the intervening period between the dates of execution of Implementation Agreement for the original capacity and the Supplementary Implementation Agreement for the enhanced capacity, e.g. on account of Local Area Development, change in basic rates, change in the category of the project based on the capacity etc; or
(ii)additional free power specifically for enhancement of capacity:- the variations in free power on account of item (i) shall only be considered for adjustment in tariff as per sub-regulations (2) and (3) of regulation 36, but additional free power for capacity enhancement as per item (ii) shall not be considered for tariff adjustment.
(8)[] [Re-numbered '(7)' by Notification No. No. HPERC/428, dated 28.1.2019.] Where the parties fail to arrive at an understanding for sale/ purchase of energy in the manner specified in sub-regulations [(3) to (7)] [Substituted '(3) to (6)' by Notification No. No. HPERC/428, dated 28.1.2019.], the right of the distribution licensee for the net saleable energy as per the original power purchase agreement, duly taking into account the data contained in the Detailed Project Report for the original capacity and power generation on real time basis, shall remain protected and the renewable energy generator shall be eligible to dispose off only the net incremental saleable energy (i.e. after duly adjusting the licensee's first right as aforesaid and the total quantum of free energy for the enhanced capacity of the project):Provided that in such a case, the renewable energy generator shall also arrive at an understanding with the distribution licensee about the modalities for energy accounting on real time basis as well as on monthly and annual basis and based on the same, the renewable energy generator shall also make the distribution licensee a party to any such agreement for disposal of such incremental energy:Provided further that in case the licensee and the renewable energy generator mutually agree to purchase/sell the net incremental saleable energy at a specific rate and jointly make an application to the Commission for determination of such rate, the Commission may determine the specific levellised rate for such net incremental saleable energy as per the provisions of this sub-regulation and by taking into account the provisions of the regulations/practices prevalent in the time frame during which the capacity enhancement was permitted by the State Government.
(9)[] [Re-numbered '(8)' by Notification No. No. HPERC/428, dated 28.1.2019.] Where, after the Commission has approved the power purchase agreement for sale of power from a project based on a renewable technology other than small hydro project, the capacity of the project is enhanced, the tariff for sale of net saleable energy from such project shall be governed by such terms and conditions as may be included by the Commission, to address such situations, in the terms and conditions fixed by it under regulation 18.