Regulatory Initiatives

Renewable Regulatory Fund: The creation of the Renewable Regulatory Fund (RRF) was envisaged under the CERC IEGC 2010, wherein scheduling and forecasting was proposed to be initiated for the wind power projects. As per the prescribed procedure formulated by NLDC, wind generators will not have to bear any implication for deviation within +/- 30 per cent of the scheduled generation; beyond this, the wind generators will directly face the UI implication. The States shall be compensated through RRF. There were certain operational hurdles in the implementation of the RRF procedures such as its applicability on captive/third party wind power plants, applicability on existing sub-stations having a mix of wind power plants with different commissioning dates, demarcation of responsibility between “wind generator” and “wind farm developer”, and clarification regarding multiple contracted rate(s) etc. InWEA had filed a petition before CERC seeking clarification on these issues. The CERC took cognizance of the matter and created a task force under the chairmanship of CEO, POSOCO and members from MNRE, MoP, CEA, NIWE etc. to deliberate on the matter. InWEA played an active role in representing the issues to the task force. After obtaining recommendations from the task force, CERC issued its final order on January 16, 2013 and directed SLDCs to initiate mock exercise for a period of 3-6 months, and thereafter begin implementation of the RRF mechanism from July 1, 2013.

REC Mechanism: In 2009-10, when the Central Electricity Regulatory Commission (CERC) notified REC Regulations in order to promote renewable energy sources and to develop the electricity market, InWEA played a crucial role. The association provided comments on the REC regulations in which the most critical comment was the inclusion of floor price for RECs. The floor price reduces the risks and provides comfort to the investors to invest their money in the wind projects under the REC mechanism.

Tariff: InWEA has consistently worked towards the revision of wind energy tariffs at the Central and the State level. It regularly engages with the State Electricity Regulatory Commissions and also, files petitions with the intention of helping the wind farm developers to get an appropriate tariff. The association has worked extensively in several states such as Andhra Pradesh, Karnataka, Tamil Nadu, Rajasthan, etc. In Andhra Pradesh, InWEA played a major role in the finalisation and notification of new wind tariff which was notified in November 2012. In view of the declining wind capacity installations in Karnataka, InWEA petitioned the KERC for the determination of new wind tariff. After a prolonged hearing, the matter has been admitted by the Hon’ble Commission and a public hearing in the matter is expected to be conducted soon. In Tamil Nadu, InWEA successfully challenged the TNERC Wind Tariff 2012 in APTEL, wherein the Commission has been directed to determine the tariff again considering the time value of money and also the banking, transmission and wheeling charges for wind generators availing open access. 

Competitive Bidding: The Rajasthan Electricity Regulatory Commission (RERC) had proposed competitive bidding for the wind energy projects in the State of Rajasthan. To the Commission, InWEA presented a critical evaluation on the introduction of the tariff-based competitive bidding procurement mechanism for wind energy. The Commission was convinced and withdrew the directions issued related to the introduction of the competitive bidding guidelines within the State. Similarly, due to InWEA initiative, the Union government brought out Notification for wind power competitive bidding in 2018 after one and a half year of first auction of wind power held in February 2017.

Apart from regulatory and policy initiatives, we have also conducted several feasibility studies.  

• In 2005, we prepared a detailed feasibility report of wind project for Shri Abhyankar Brothers, Mumbai. We covered the aspects of description of wind speeds in different regions of the country; technology options for the project; regulatory environment and buy back tariff in each State; risk assessment; energy calculations; financial feasibility; sensitivity analysis for technology, cost, different wind regimes corresponding to different States and buy back tariff; our recommendations with three alternative project options and a standard enquiry to be floated by the party for procurement of equipment and materials and then, implementation of the project.
• In 2007, the Aurangabad Municipal Corporation (AMC) wanted services of the Indian Wind Energy Association in setting up a wind farm and hence, a proposal was made to them to undertake a pre-investment study. The main purpose of the pre-investment study was to help AMC in taking a ‘Go’ or ‘No Go’ decision; evaluation of different possible strategy options; recommendation of the best three options; and, recommendation of a model or framework under which these projects can be taken up.
• In 2007, the Indian Wind Energy Association prepared a report on the utilisation of wind energy for the Indian Railways. The salient features of the report were the prevailing global trends; possible benefits to the Railways from wind energy; buy back rate; transmission and wheeling charges; banking charges; reactive energy charges; cross subsidy charges; open access charges; demand charges; grid availability, etc. The report was well received by the Ministry of Railways and therefore, it set up wind farm projects in four southern states.