Section 5 in Jammu and Kashmir State Electricity Regulatory Commission (Mini Grid Renewable Energy Generation and Supply) Regulations, 2016
5. Models for Business Operations.
- 5.1 The Mini Grid Operator may implement the Mini Grid Projects for supply of electricity in the Mini Grid Areas under following operational models or any subsequent model(s) as approved by the Commission in future.5.1.1Model A: No existence of Grid.-(i)The Mini Grid Operator shall build, commission, operate and maintain the Mini Grid Project for generation and supply of electricity through the Project Distribution Network in areas where the Distribution Licensee's System doesn't exist.(ii)The Mini Grid Operator shall be entitled to supply entire quantum of electricity generated from the Mini Grid Projects to the consumers at mutually agreed tariff or the tariff for the Mini Grid Projects with the subsidy as may be approved by the State Government. Upon the grid arrival, the Mini Grid Operator may opt for one of the following options for electricity supply :-(a)Continue to supply entire quantum of electricity generated to the consumers through the Project Distribution Network as per the Standard Operating Procedure. The Mini Grid Operator shall supply to the consumers at mutually agreed tariff or tariff for the Mini-Grid Projects with subsidy as may be approved by the State Government ;(b)Generate and supply electricity to the consumers as per the Standard Operating Procedure. The Mini Grid Operator shall supply to the consumers at mutually agreed tariff or the tariff for the Mini-Grid Projects with the subsidy as may be approved by the State Government and sell excess/surplus electricity to the Distribution Licensee at the inter-connection point at the applicable FIT ; or(c)Generate and supply entire electricity generated to the Distribution Licensee at the inter-connection point at the applicable FIT.(iii)The Mini Grid Operator shall have the option to transfer the ownership of the Project Distribution Network, provided the Project Distribution Network conforms to the standards of the Distribution Licensee's system, to the Distribution Licensee with mutual consent on depreciated value of assets. The depreciated value shall be determined by applying the Straight Line Method on the book value of the Project Distribution Network as per Cost Data Book of the Distribution Licensee for the year of commissioning of the Mini Grid Project ;(iv)Provided the Distribution Licensee purchases the Project Distribution Network from the Mini Grid Operator at an amount less than the depreciated value of the assets, the differential amount shall be paid by the Distribution Licensee to the Mini Grid Operator against the RPO availed, if applicable, from the Mini-Grid Project. The differential amount shall be computed based on the applicable floor price of REC, as per the applicable technology of the MRES.(v)The Mini Grid Operator may migrate to any of the options in this model after completing the due process in accordance with clause 19 of these Regulations.(vi)If the Distribution Licensee refuses to enter into the PPA with the Mini Grid Operator, the Distribution Licensee shall pay the Mini Grid Operator an amount based on the renewable energy technology specific applicable floor price of REC equivalent to the RPO quantum availed by the Distribution Licensee against the Mini-Grid Project capacity intimated by the Mini Grid Operator.(vii)In the event of Mini Grid Operator intending to exit from the Mini-Grid Area upon the Grid Arrival, it may opt to sell the Project Distribution Network to the Distribution Licensee, conforming to their existing standards and shall intimate the Distribution Licensee regarding the sale of the Project Distribution Network. If the Distribution Licensee refuses to purchase the Project Distribution Network, the RPO availed of by the Distribution Licensee against the Mini-Grid Project capacity intimated by the Mini Grid Operator to the Distribution Licensee till the date of receipt of intimation from the Mini Grid Operator to exit from Mini-Grid Area shall stand withdrawn.(viii)The Distribution Licensee may allow the Mini Grid Operator to undertake role of the distribution franchisee in the Mini-Grid Area.5.1.2Model B: Grid Pre-exists. - (i) The Mini Grid Operator shall build, commission, operate and maintain the Mini-Grid Projects for generation and supply of electricity through the Project Distribution Network in the Mini-Grid Areas where the Distribution Licensee's System pre-exists. Capacity of the MRES shall be based on capacity declared and intimated to the Commission, the State Nodal Agency and the concerned Distribution Licensee by the Mini Grid Operator.(ii)The Mini Grid Operator shall be entitled to supply entire quantum of electricity generated from the Mini-Grid Project to the consumers through the Project Distribution Network at mutually agreed tariff or tariff for the Mini-Grid Projects with the subsidy as may be approved by the State Government. After supplying electricity to the consumers for a minimum term period of six (6) months, which may be reviewed further by the Commission, the Mini Grid Operator may opt for one of the following electricity supply options :-(a)Continue to supply entire electricity generated to the consumers through the Project Distribution Network as per the Standard Operating Procedure. The Mini Grid Operator shall supply to the consumers at mutually agreed tariff or tariff for the Mini-Grid Projects with subsidy as may be approved by the State Government.(b)Generate and supply electricity to the consumers as per the Standard Operating Procedure. The Mini Grid Operator shall supply to the consumers at mutually agreed tariff or tariff for the Commission Projects with subsidy as may be approved by the State Government and sell excess/surplus electricity to the Distribution Licensee at the inter connection point at the applicable FIT ; or(c)After supplying electricity based on either of the above options for at least three (3) years, the Mini Grid Operator may opt to generate and supply entire electricity to the Distribution Licensee at the interconnection point at the applicable FIT. The Mini Grid Operator may utilize the existing Project Distribution Network for its own use or the same may be taken over by the Distribution Licensee at mutually agreed price, provided the Distribution Licensee so desires.(iii)The Mini Grid Operator shall be allowed to migrate to any of the options in a model upon intimating the Commission, as per clause 19 of these regulations.(iv)If the Distribution Licensee refuses to enter into the PPA with the Mini Grid Operator, the Distribution Licensee shall pay the Mini Grid Operator an amount based on the Renewable Energy technology specific applicable floor price of REC equivalent to the RPO quantum availed by the Distribution Licensee against the Mini-Grid Project capacity intimated by the Mini Grid Operator.Unit-IV Technical Framework
