[PPT] - MSEDCL is committed to MSEDCL is committed to Promotion of Green PowerPoint Presentation

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SUO-MOTU PROCEEDING ON THE POLICY REVIEW IN MATTERS RELATED TO WIND POWER IN MAHARASHRTRA

(CASE NO. 92 OF 2012 )

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MSEDCL is committed to MSEDCL is committed to Promotion of Green Promotion of Green (Renewable) Power (Renewable) Power

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SALES AND REVENUE MIX FOR FY 2012-13

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POWER: AVAILABLE SOURCE WISE

Source Unit As on 31st March As on 31st March 2013 Expected in 2013-14 2011 2012 Thermal (State+Pvt.) MW 9665 10366 12446 18836 (Mus) ( 54136 ) ( 61143 ) (67556) (90000) Renewable MW 3408 4198 4609 5164 (Mus) (2692) ( 3339 ) (3824) (4000) Hydro MW 3066 3066 3066 3066 (Mus) ( 6300) ( 6773 ) ( 5924 ) (6200) Natural Gas MW 2714 2740 2740 2740 (Mus) (7073 ) ( 6237) ( 5337 ) (5000) Central Sector Allocation MW 5376 5792 6307 6627 (Mus) ( 37435) ( 38489 ) ( 35978 ) (37800) Total MW 24229 26162 29168 36433 (Mus) ( 107636 ) (115981) (118619) (143000)

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TARIFFS OF ELECTRICITY IN 2012-13

 Average Power Purchase Cost - 3.39 Rs./unit  Cost of Supply

5.56 Rs./Unit
No. of

Consumer Amount Rs.Crs 2012-13 2012-13 1 Industrial (LT and HT) 347,262 6,363 2 Commercial (LT and HT) 1,265,407 1,933 3 Others * 2,567,279 1,210 4 Total 1,868,948 9,506

No. of

Consumer Amount Rs.Crs 2012-13 2012-13 1 Domestic (LT) 16,474,882 1,008 2 Agriculture (LT and HT) 3,459,790 6,935 3 Others $ 194,983 1,563 4 Total 20,129,655 9,506 Category Sr. No.

*Others include HT-Railway, LT Advertising, LT-Temporary and Standby charges DETAILS OF SUBSIDIZING CONSUMERS DETAILS OF SUBSIDIZED CONSUMERS

Category Sr. No.

$ Others include HT-PWW, HT-Bulk Supply, LT-Street Light, LT-PWW, Mula Pravara and Bhivandi Franchisee

B.P.L. Cost – 0.76 Rs/Unit
1-100 cost – 3.36 Rs/Unit
Agriculture in Gujrat. 2.52 Rs/ Unit

in Maharashtra 1.01 Rs/ Unit

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RE POWER DETAILS

Upto 31.03.2008 31.03.2009 31.03.2010 31.03.2011 31.03.2012 31.03.2013 Wind 1754 1932 2071 2310 2717 3006 Bagasse 320 393 422 620 893 1088 Biomass 87 95 115 155 155 170 Industrial / Municipal Solid Waste 11 11 11 16 20 24 Solar 1 20 175 Small Hydro Project 214 214 230 247 265 271 Total 2375 2634 2838 3348 4070 4734 Installed Capacity As on RE Source

2375 2634 2838 3348 4070 4734 500 1000 1500 2000 2500 3000 3500 4000 4500 5000

Upto 31.03.2008 31.03.2009 31.03.2010 31.03.2011 31.03.2012 31.03.2013

RE Installed Capacity as on(MW)

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PROMOTION OF RE GENERATION

 MSEDCL is bound by the National Tariff Policy, the Act, Rules and Regulations

related to Power Sector in India;

 GoM, MERC and MSEDCL committed to promotion of renewable power in the

State

 The policy, rule and any regulations of MERC related to harnessing of wind power

has been always supported by MSEDCL

 MSEDCL has pro actively participated in the development process by providing

necessary infrastructure and guarantee of purchase.

 MSEDCL has been executing EPAs with all RE Generators (except Solar) to promote

the RE Sources in the State.

 Need of more scientific and logical approach to establish correct wind zone;  RPO to be linked with actual potential of the State and achievement thereof  Tariffs to be determined based on realistic data to avoid huge profiteering to developers and

benefits to consumers

 Unrealistic Target Potential by MEDA and High Cost affecting the ARR of Licensee

Expensive Power gets passed through in ARR and ultimate sufferer is Common Consumer since burden borne by Common Consumers

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BACKGROUND: A BRIEF SUMMARY

 Daily Order dated April 27, 2012 in the matter of Case No. 8, 18, 20 and 33 of 2012;

 Hon’ble Commission discussed its view on policy review in matters related

to Wind Power in Maharashtra and highlighted certain illustrative issues that can be considered for Policy review:

 Power Purchase Agreement - provisions relating to the arrangement after the

expiry of tenure of Agreement, etc;

 Banking and Wheeling;  Obsolescence of wind Generation technology;  Objective of introducing REC mechanism, its intended beneficiaries  Whether discount on Cross Subsidy Surcharge available to open access

transactions from renewable energy generators is a preferential treatment

 Whether generators getting this discount should qualify for REC benefits also

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ISSUES COVERED

 Power Purchase Agreement  Banking & Wheeling  Obsolescence  REC  CD Reduction  15 Min accounting  Cross Subsidy Surcharge  Practical Issues

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ISSUES RELATED TO EXISTING EPAS

 Option of renewal of Agreement ;  No Regulatory obligation  Life-20 to 25 Yrs  EPA-13 Yrs--- At preferential tariff  Complete project cost with 19 to 24 % profit paid by Cons. Of

Maharashtra.

 After 13 yrs, project belongs to consumers of Maharashtra?  Post expiry of EPA :

There is should be a specific provision for Continuation of Sale to MSEDCL at discounted preferential or concessional (O&M) rate for the remaining life cycle.

Very High Profit Vs Wind Fall Profit (Burden on Consumers).

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EPA CONTINUATION WITH MSEDCL

 Regulated Environment  Distribution utility mandated to purchase certain quantity  This quantity mandated to be purchased at very high Feed in

tariff

 Life of Wind generator-20 to 25 yrs  EPA-13 yrs  Actual project cost recovery with profit -7 to 9 yrs

(Depending on wind availability)

 Balance 7 yrs- wind fall profit by moving to open access +

REC

Competitive market: High risk high gain
Partially protected market: Medium risk medium gain
Regulated Market: Low risk low gain

Present Situation : No risk & Highest gain

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PARALLEL EXAMPLE OF PAYBACK (GOVT. FUNDING)

 Koyna Hydel Station was set up in the year 1962  MSEDCL pays only 90 paise

to Koyna Hydel Power, while hydel power anywhere in the country is sold at above Rs.5/- per unit;

 MSEDCL pays Rs.1.65/- to 2.00/- per unit as power purchase cost

primarily to recover lease rent and O&M cost as the capaital cost of the Dam and Hydel station has already been paid by the people of Maharashtra;

 MSPGCL has no right to sell koyna hydel power in the open

market through Open Access.

 Conusmers in the State having paid for this investment now

have exclusive right over Wind Energy Assets and its generation at reasonable O&M cost.

 Express ways & Roads – BOT

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OBSOLESCENCE OF WIND GENERATION TECHNOLOGY

 Provisions about refurbishment : Absent  What benefits a WEG is eligible for after refurbishment;  When can a WEG go for refurbishment;  No provisions for EPA after refurbishment;  Present old inefficient machines may be refurbished with new

efficient machines to optimize wind generation and a single wind zone tariff to be determined so as to reduce the burden on common consumers.

 Refurbishment of old turbines may be allowed only when the WEG

agrees to enter EPA with MSEDCL for whole of plant life i.e. 20 Years;

 This is necessary since  Tariff is determined for a life cycle of 20 / 25 Yrs;  Benefits of Accelerated depreciation may have been availed in initial years.  Other benefits / concessions granted by GoM viz. in the matter of sales tax,

electricity duty etc. may have been availed.

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REC MECHANISM

 Objective of REC Mechanism is to promote renewable sources of energy and

development of market in electricity.



To encourage Renewable Energy (RE) capacity addition in the country



To address the mismatch between availability of RE sources and the requirement of

bligated entities to meet their RPO targets

 REC Mechanism to benefit both RE Generators and Obligated Entities (OA Consumers,

Discoms etc)

 Verification of Eligibility for REC Mechanism 

RE Generators availing concessional/promotional transmission or wheeling charges, waiver of electricity duty not eligible for REC Scheme



Discount on CSS for open access transactions from RE Generators should be treated as preferential treatment

 WEGs availing any form of concession from GoM/MERC should not be held eligible

for participation in REC Scheme

 Misuse of REC: Group II wind generators having covered full cost of investment are

now availing open access( instead of selling energy to MSEDCL at discounted price

Rs. 2.52 p.u. as determined by the Hon. Commission )as well as claiming REC
benefit. Auxiliary consumption should not be held eligible for REC.

Legitimate Profit Vs Windfall Profit need to be considered , REC to be restricted for new generators only?

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BANKING

 In terms of Open Access, the duty of Distribution Licensee (Section 42) is just to

provide a corridor for wheeling of electricity.

 Thus, the EA, 2003 does not contemplate “banking” in open access (injection at a

time and drawal at different time). Similarly, the MERC (Distribution Open Access) Regulations, 2005 does not provide for the same.

 The provision of banking is contradictory to Act & Regulations  The banking may be made available by mutual consent and it should not be

mandatory. The banking of energy

i.e. injection in monsoon and drawal in summer results in financial implications increasing burden on common consumers.

 Wind energy is infirm in nature and mostly depends on nature

 Difficult to predict the generation from wind for a particular period  Power Planning becomes complex

 With implementation of FBSM, difficult to match drawl and schedule with

provision of banking

 Provisions in Other States:



GERC has not provided banking facility in OA and ABT compatible interface metering system capable of energy accounting for each block of 15 minutes is compulsory



TNERC even though provided banking but no intra state ABT mechanism present in TN

Banking facility should not be allowed to Open Access consumers sourcing power from Wind Energy Generators

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OPTIONS WITH WEGS

Wind Energy EPA Route (Feed in ) Open Access Self Use REC Component @ Exchange Rates Sale to others @ mutually agreed price REC Component @ Exchange Rates Sale to Discom @ APPC REC Component @ Exchange Rates

Option of Open Access and APPC will have bearing on RPO compliance

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15 MINUTE TIME BLOCK ENERGY ACCOUNTING

 MERC Grid Code Regulations, 2006 mandates for scheduling

generation and consumption on the basis of 15 minutes time block

 No exemption in

Transmission as well as Distribution Open Access for renewable energy

 CERC has amended the CERC (Indian Electricity Grid Code)

Regulations 2010 making scheduling of wind power (and solar) compulsory

 The sum of generation capacity (of all the WTGs) is more than 10 MW and

connected to a common point of 33 kV

 A relaxation ceiling of 70% accuracy in such a way that if actual generation is

under +/- 30% variation of the schedule, no UI will be applicable

 Energy Accounting becomes difficult in absence of 15 minutes

energy accounting

 Consistent with the current FBSM Mechanism; 15 minutes of EA should be

made mandatory;

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NO CD REDUCTION : NO STANDBY CHARGES

 Existing Regulations (4.2.1 / 4.2.2) provide for Reduction of

Contract Demand.

 In case of failure of generation, the open access consumer has

to pay standby charges;

 Towards making available a back-up or reserve power pool in case of

any fault in the generator end;

 Wind being infirm source of power always a possibility of zero

r no generation during some point in time

 Obviously OA consumer will have to pay standby charges for the

consumption during no generation period

 In case of no reduction in contract demand, will never be liable

to pay the standby charges since allowed to draw the power from the grid to the extent of contract demand

 Against the principles and nature of open access as well as provisions

f the Act & NTP

Even after supplying standby power, Utility will never be able to recover the standby charges/temporary charges

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POWER AVAILABILITY (OCT 12 – JAN 13)

PPAs with Installed/ Contracted Quantum Expected Availability (MW) MW Oct 12 Nov 12 Dec 12 Jan 13 Existing Projects: Genco Coal 6980 5000 5000 5000 4500 Gas 672 300 300 300 300 Hydro (Koyna) 2344 800 800 1000 1000 JSW U1 (long term) 300 275 275 275 275 RGPPL 1940 600 600 600 600 Central Sector 4355 3290 3290 3290 3290 Wind 3152 100 100 100 100 Cogen 200 200 200 200 SSP 392 300 300 300 250 UMPP (Mundra U 1 & 2) 320 300 300 300 300 MTPP 475 475 475

STPP

748 748 748

Subtotal

21,678 12,388 12,388 11,365 10,815 Upcoming Projects: Genco (Bhusawal 4) 500

350

500 500 Central Sector (Mauda 1, Vin – IV-1 320

320

320 UMPP (Mundra 3) 160

160

160 Adani U1 125 125 125 125 125 IBPL (Amravati) U1 270

245

Subtotal 1,375 125 475 1105 1350 Grand Total (Day Time) 23,053 12,513 12,863 12,470 12,165 Night Availability 11,413 11,763 11,170 10,915

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DEMAND (OCT 12 – JAN 13)

Particulars Oct 12 Nov 12 Dec 12 Jan 13

a

Avg. Peak Demand during FY

2011-12 MW 13710 14673 14913 14534 b Less: Open Access MW 500 500 700 700 c Total Demand for FY 2011-12 (a – b) 13210 14173 14213 13834 d

Avg. Peak Demand for FY 12-13

(5% Growth) c *(1+ 5%) 13871 14882 14924 14526

Night Avg. Demand (Oct 12 – Jan 13)

Particulars Oct 12 Nov 12 Dec 12 Jan 13 a

Avg. Night Peak Demand during

FY 2011-12 MW 11517 12167 11954 11259 b Less: Open Access MW 500 500 728 728 c Total Demand for FY 2011-12 (a – b) 11017 11667 11226 10531 d

Avg. Night Peak Demand for FY

12-13 (2% Growth) c *(1+ x%) 11568* 11900** 11451** 10742** * 5% growth; ** 2% growth

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Thermal Generation Apr to Mar 2011-12

1600 1850 2100 2350 2600 2850 3100 3350 3600 3850 4100 4350 4600 4850 5100 5350 5600 5850 1-Apr 8-Apr 15-Apr 22-Apr 29-Apr 6-May 13-May 20-May 27-May 3-Jun 10-Jun 17-Jun 24-Jun 1-Jul 8-Jul 15-Jul 22-Jul 29-Jul 5-Aug 12-Aug 19-Aug 26-Aug 2-Sep 9-Sep 16-Sep 23-Sep 30-Sep 7-Oct 14-Oct 21-Oct 28-Oct 4-Nov 11-Nov 18-Nov 25-Nov 2-Dec 9-Dec 16-Dec 23-Dec 30-Dec 6-Jan 13-Jan 20-Jan 27-Jan 3-Feb 10-Feb 17-Feb 24-Feb 2-Mar 9-Mar 16-Mar 23-Mar 30-Mar Date MW

201 1

1

2 201 2-1 3

2012-13 2011-12

THERMAL GENERATION APR-MAR 2011-12

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Thermal Generation Jun to Oct 2010-11-12

1700 1950 2200 2450 2700 2950 3200 3450 3700 3950 4200 4450 4700 4950 5200 5450 2-Jun 6-Jun 10-Jun 14-Jun 18-Jun 22-Jun 26-Jun 30-Jun 4-Jul 8-Jul 12-Jul 16-Jul 20-Jul 24-Jul 28-Jul 1-Aug 5-Aug 9-Aug 13-Aug 17-Aug 21-Aug 25-Aug 29-Aug 2-Sep 6-Sep 10-Sep 14-Sep 18-Sep 22-Sep 26-Sep 30-Sep 4-Oct 8-Oct 12-Oct 16-Oct 20-Oct 24-Oct 28-Oct Date MW

201 201 1 201 2

2011 2012 2010

THERMAL GENERATION JUN TO OCT 2011-12

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RGPPL Generation Apr to Mar 11-12 & 12-13

400 500 600 700 800 900 1000 1100 1200 1300 1400 1500 1600 1700 1800

1-Apr 8-Apr 15-Apr 22-Apr 29-Apr 6-May 13-May 20-May 27-May 3-Jun 10-Jun 17-Jun 24-Jun 1-Jul 8-Jul 15-Jul 22-Jul 29-Jul 5-Aug 12-Aug 19-Aug 26-Aug 2-Sep 9-Sep 16-Sep 23-Sep 30-Sep 7-Oct 14-Oct 21-Oct 28-Oct 4-Nov 11-Nov 18-Nov 25-Nov 2-Dec 9-Dec 16-Dec 23-Dec 30-Dec 6-Jan 13-Jan 20-Jan 27-Jan 3-Feb 10-Feb 17-Feb 24-Feb 3-Mar 10-Mar 17-Mar 24-Mar 31-Mar

Date MW

2012-13 2011-12

RGPPL GENERATION

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Koyna Water Utilization

Water Year 01.06.12 to 31.05.13 Water Year 01.06.11 to 31.05.12

Koyna water utilisation Quantity Units Quantity Units Quotta allotted for water year 67.5 TMC 67.5 TMC Water utilised as per LD Kalwa's report as on 17oct 25.997 TMC 34.630 TMC Balance Water for period 18 oct to 31 May 41.503 TMC 32.870 TMC Balance days 226 Days

Ave. utilisation/day

0.184

17-Oct-12

Less utilization this year 8.633 TMC June-2011 to May 2012 June-2012 to May 2013

KOYNA WATER UTILISATION

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KOYNA WATER UTILISATION

2007-08 61.426 TMC 2008-09 67.998TMC2012-13 25.997 TMC 2011-12 34.63 TMC 2009-10 81.029 TMC 2010-11 74.94TMC Balance 41.503 TMC Balance 32.87 TMC 2011-12 68.082 TMC

Upto 17-Oct-12 Upto 17-Oct-11

8.633 TMC Less Utilization during this water year June July Aug Sept Oct Nov Dec Jan Feb March April May 2009-10 6.642 2.888 8.74 4.017 5.014 7.71 3.022 2.725 2.439 7.113 17.98 12.73 2010-11 4.774 4.549 2.305 1.809 2.012 1.512 2.365 10.06 10.69 10.54 12.64 11.67 2011-12 3.249 6.563 6.268 10.10 9.927 5.673 5.502 2.372 2.268 2.927 4.251 8.99 2012-13 7.697 4.988 5.463 5.327 2.522

2 4 6 8 10 12 14 16 18 20

TMC

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Wind Generation Jun to Oct 2011-2012

200 400 600 800 1000 1200 1400 1600 2

J

u n 6

J

u n 1

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u n 1 4

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u n 1 8

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u n 2 2

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u n 2 6

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u n 3

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u n 4

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u l 8

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u l 1 2

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u l 1 6

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u l 2

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u l 2 4

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u l 2 8

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u l 1

A

u g 5

A

u g 9

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u g 1 3

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u g 1 7

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u g 2 1

A

u g 2 5

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u g 2

S

e p 6

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e p 1

S

e p 1 4

S

e p 1 8

S

e p 2 2

S

e p 2 6

S

e p 3

S

e p 4

O

c t 8

O

c t 1 2

O

c t 1 6

O

c t 2

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c t 2 4

O

c t 2 8

O

c t Date MW

2 0 11 2 0 12

2012 2011

WIND GENERATION

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2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36

Date Rainfall in mm. 10000 10500 11000 11500 12000 12500 13000 13500 14000 14500 Peak Demand (MW)

State Avg. Rainfall Peak demand

State Avg. Rainfall & peak Demand for the period of June to Sep 2011

AV.RAINFALL VS DEMAND

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5 10 15 20 25 30 35 40 1

J

u n

1

2 6

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u n

1

2 1 1

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u n

1

2 1 6

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1

2 2 1

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u n

1

2 2 6

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u n

1

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1

2 6

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2 1 1

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u l

1

2 1 6

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1

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u l

1

2 2 6

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1

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u g

1

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1

2 1 5

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1

2 2

A

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1

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u g

1

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A

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1

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S

e p

1

2 9

S

e p

1

2 1 4

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e p

1

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S

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2 2 9

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c t

1

2 9

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1

2 1 4

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c t

1

2

Date Rainfall in mm.

10500 11500 12500 13500 14500 15500

Peak Demand (MW)

State Avg. Rainfall Peak demand

State Avg. Rainfall & peak Demand for the period of June to oct 2012

State Avg. Rainfall & peak Demand for the period of June to Oct 2012

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CONCESSIONAL 25 % CSS FOR RE

 The Hon’ble Commission has provided a concession of 75 % on the cross

subsidy surcharge to be payable to the Distribution Licensee by the open access consumer sourcing Renewable energy under open access.

 As per the Electricity Act, 2003, the cross subsidy surcharge has been

provided to compensate the Host Licensee to meet the current level of cross subsidy which is inbuilt in the tariff of the consumer seeking open access.

 If the average billing rate of a consumer category is Rs. 7.68 and the average

cost of supply is Rs. 5.56, the cross subsidy is Rs. 2.12.

 But the commission has adopted NTP formula and determined a CSS of Rs.

1.18. Therefore, against the cross subsidy of Rs. 2.12 the MSEDCL is getting compensated with CSS of Rs. 1.18 only.

 On the top of it, if the consumer is sourcing RE power, MSEDCL would get

CSS @ Rs. 0.30 only. The loss of Rs. 0. 78 to be recovered from whom?

 The compensation of Host Licensee through CSS has been mandated by the

Act. Therefore, the CSS should be made applicable to all open access

consumer uniformly.

Uniform CSS should be made applicable for all open access consumers

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PROMOTION OF INEFFICIENT RE GENERATION AT WHAT COST? ……CONTD

30 The Wind Tariff in other states is as below.

Maharashtra Tamilnadu Rajasthan Andhra Pradesh Gujarat

Rs. Per unit
Rs. Per unit
Rs. Per unit
Rs. Per unit
Rs. Per unit

Wind Tariff 5.81 3.51 4.76 4.70 4.61 Capacity Utilization Factor (CUF) 20 % 27.15 % 20 % 23 % 24 %

In Maharashtra more than 90 % wind generation in Wind Zone 1 i.e. CUF less than or equal to 20 %. But, tariff they are getting is the maximum. Maharashtra is the only state which is having Zoning arrangement For Wind

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PRACTICAL CHALLENGES FOR WIND POWER

 70 % of wind generation comes in monsoon season i.e. from June to

September when the state grid is already having surplus power and 30 % wind generation comes in remaining 8 months over the year

 Wind Power is Infirm Power, can not be contracted or supplied on RTC and not

controllable as per load requirement ;

 Wind energy is infirm in nature and mostly depends on climate

 Difficult to predict the generation from wind for a particular period  Power Planning becomes complex

 Difficult to plan Power Purchase diligently

 15 Min energy accounting not Mandatory  Banking Facility available

 With implementation of FBSM, difficult to match drawl and schedule with provision of

banking

 Huge financial implication on the Licensee related to deviation in their drawal schedule

 Non Reduction of CD inconsistent with the provisions of the Act as well as NTP

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100 200 300 400 500 600 700

Apr. May.Jun. July.Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.

CUF Mus

Particular Apr. May. Jun. July. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Total FY 2011-12 Mus 164 305 444 449 405 275 45 137 70 86 89 154 2625 CUF 11 20 29 29 26 18 3 9 5 6 6 10 14 FY 2012-13 Mus 196 392 503 589 547 326 131 166 2850 CUF 12 23 30 35 32 19 8 10 14

Practical Challenges :CUF attained by Wind projects

Note: The generation is 70% during 4 months from June – Sept and only 30% during remaining 8 months.

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PRACTICAL CHALLENGES

 If CD is not reduced; how can utility plan the power purchase ?  Utility has to contract excess power to the extent of CD for its wind OA

consumers

 Consumer may or may not use power from Utility  Utility will have to pay fixed charges (entire cost in case of take or pay) if not

consumed

 Maximum wind energy injected during night  If frequency is above 50 Hz; conventional generators has to back down to

accommodate wind energy;

 If situation is reversed, in absence of wind generation, consumer may draw

power from Grid

 Over drawal is not permitted since hefty penalty for overdrawal;  The absence of reliable meteorological data, historical wind pattern data,

sophisticated wind prediction technology coupled with inconsistent wind flow patterns prevalent in India results in improper scheduling of power.

 MSEDCL is accommodating the intermittent injection of wind energy for so

many years. But having crossed the 3000 MW mark, the wind energy is posing serious challenges for grid stability apart from financial implications.

Need to Manage the Wind Power with proper integration with Grid and planning of power

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POWER SCENARIO IN INDIA

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FACTS OF WIND POWER

 More than 95% of the nation’s wind energy development to date is concentrated in just

five states in southern and western India – Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra, and Gujarat

Sr. No.

State Cumulative Installed Capacity as on 31.03.2012 (MW) Capacity Addition During 2012-13 (MW) Cumulative Installed Capacity as on 31.03.2013 (MW) 1 Tamil Nadu 6987.70 174.60 7162.30 2 Gujarat 2966.60 208.30 3174.90 3 Maharashtra 2733.30 288.50 3021.80 4 Rajasthan 2070.90 614.00 2684.90 5 Karnataka 1933.60 201.70 2135.30 6 Andhra Pradesh 245.60 202.10 447.70 7 Madhya Pradesh 376.40 9.60 386.00 8 Kerala 35.10 0.00 35.10 9 Others 4.30 0.00 4.30 TOTAL 17353.5 1698.80 19052.30

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PROMOTIONAL REGULATORY POLICIES

Policy Incentives:

100 % Foreign Direct Investment in procuring in renewable energy sector allowed

through the automatic route.

A total of 35 % accelerated depreciation is allowed in the first year (effective from

1.04.12 ) : 15 % normal depreciation and 20 % additional depreciation for power sector projects.

Tax free income from sale of power for 10 years under section 80 I A of the Income

tax Act if renewable energy power plant starts generation before 31st March 2013.

Value Added Tax (VAT) at reduced rates from 12.5 % to 5.5 % in some states
Allotment & leasing of forest land for development of wind power projects.
Concessional customs duty (5%) on some of the components of wind power

machinery.

Institutionalization of sector financing through the Indian Renewable Energy

Development Agency

Wind sector is eligible for exemption from excise duty
Institutionalization of R&D, training, product certification, testing & resource

assessment via the establishment of the center for wind energy technology

Exemption of Electricity Duty by State Governments

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PROMOTIONAL REGULATORY POLICIES

Regulatory Incentives:

Preferential feed in tariff in 13 states for wind power
Favorable provisions for wheeling, banking and third party sale by wind power

producers

National level dynamic Renewable Purchase Specification of 5% (2009/2010)

increasing by 1 % every year to 15 % by 2020 mandated under national Action Plan

n Climate Change
Renewable Purchase Specification (RPS) announced in 26 states as mandated by the

Electricity Act, 2003.

Renewable energy Certificate (REC) mechanism introduced for inter state trading of

renewable power (solar and non solar separately)

Concessional levy of cross subsidy surcharge in the case of third party sale by wind

power producers

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IMPROVING WIND FORECASTING AND SCHEDULING

 According to the norms laid down in the 2010 Grid Code (IEGC),  Wind power generators are responsible for forecasting their daily generation

with accuracy up to 70%.

 In Europe this requirement is closer to 95%.  To overcome the lack of forecasting and scheduling:  To

improve the guidance to wind farm developers

n

scheduling requirements with suitable penal norms

 Wind power generators will have to work together with grid operators and

distribution companies to address issues related to grid stability and power quality in the immediate future

 Scheduling requirements will enable the generators to trade power and

compete with schedulable conventional power on the electricity trading platform, thereby ensuring reasonably higher revenues

 Important and positive for deficit country like India;

 Biggest advantage of forecasting wind power will be to make wind

farms appear more like conventional power stations bridging the ‘perception gap’ of system operators and policymakers.

SLIDE 39

39

SOLUTION TO GRID MANAGEMENT OF WIND POWER

RENEWABLE REGULATORY FUND

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40

IMPLEMENTATION OF RRF

 IEGC Regulations, 2010 notified on 28.04.2010 (Clause 5, 7 & 9 of

Annexure1):

 UI charges arrived at due to the variation of generation by wind and solar shall

be shared amongst all the states through ‘Renewable Regulatory Charge’ to be operated through ‘Renewable Regulatory Fund’.

 NLDC shall prepare a detailed procedure for implementation of the

mechanism of Renewable Regulatory Fund and submit the same for approval by the Commission.

 IEGC has made wind power scheduling mandatory w.e.f. 1st Jan 2012

for wind farms of a capacity over 10 MW and where all the wind turbines are connected to a common point of 33 kV.

 Wind power producers are required to forecast their daily generation

with an accuracy of up to 70%.

 Wind power producers will be liable to pay UI charges in the event that

generation is 30% more or less than the scheduled generation

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41

RRF – OBJECTIVE & APPROACH

 Objectives of RRF  Better prediction of generation by Wind/Solar generators and participation

in scheduling

 Generation from renewable to become more acceptable and market friendly  States already having met RPO targets may not find it averse to encourage

renewable generation further

 Better System Operation  Approach of RRF  Achieve better generation prediction using weather forecasting tools  Immune wind generators from paying deviation in UI charges upto a certain

level of variation

 No UI charges payable/receivable by Solar Generator  Socialize the deviation charges arrived due to variations amongst different

state utilities

 Develop a self sustaining mechanism towards better acceptance of

intermittent generation

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42

RENEWABLE REGULATORY FUND AND PLAN FOR EFFECTIVE

SCHEDULING OF WIND ENERGY

 As per the CERC order dated :18th Feb 2011:

“A Fund shall be opened by the National Load Despatch Centre (NLDC) on a national level known by the “Renewable Regulatory Fund (RRF) on the lines of UI Pool Account at the Regional level. All payments on account of Renewable Regulatory charges, as described in Para 5.2, levied under the Regulations, and interest, if any, received for late payment shall be credited to the RRF.”

 As per CERC order dated 16th Jan 2013, generation beyond ±30% shall attract

UI charges;

 The UI charges thus borne by the states shall be shared within them in the

ratio of their peak demand in the form of renewable regulatory charge;

 The mechanism is to be made effective from 1.7.2013 and it would be in

Maharashtra’s best interest to implement the scheme in order to promote effective scheduling and payment mechanism for renewable energy; MSLDC has initiated action in that direction.

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43

SUGGESTIONS

 Balancing Solar, Pump storage based hydro and wind can be

effectively planned in order to optimize generation -

 To achieve this end there will be a need for an independent study which

shall outline the load mix and future capacity addition planning to achieve effective load balance;

 Implement Renewable Regulatory fund which will help in better

infirm load management and cost recovery;

 Developing forecast models and adopting best practices in order to

have better wind generation forecasting

 The same can be implemented by a central agency and proportionate costs

could be borne by the wind developers

 Modelling and forecasting, as well as new communication technologies are

current research priorities and will further refine these options

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44

MSEDCL SUBMISSION

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45

MSEDCL SUBMISSION

 Provisions for continuation of EPA after expiry period required on same terms

and conditions but at discounted tariffs;



WEG enjoyed assured recovery of investment in 8/13 years with assured rate return of 16% (now19% - 24% on equity);



All investment has been recovered with preferential profit margin;



Consumers of MSEDCL has shared this burden since RPS is mandatory; RE power purchase is compulsory.



Even though life is 20 Years; considering possible slippage in loan repayment the tariff rate has been determined for 13 years (as against loan repayment period of 10 years) (MERC Order Dated 24th November 2003)

 Provisions for REC Mechanism, Open Access, Cross Subsidy Surcharge and other

important issues related to dynamic regulatory environment are required to be considered;

 REC Benefits to old generators may be restricted in case of third party sale/self

use;



Enjoyed all benefits at the expense of consumers of State Utility;



WEG can earn exorbitant profit margins in Open Access



Enjoying concession on certain charges / provisions for Open Access



Benefits may be allowed to new wind generators

 FBSM requirement needs to be considered.  Uniform CSS to be made applicable for all open access consumers

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46

MSEDCL SUBMISSION

 MSEDCL’s first priority is

to safeguard interest of common consumers;

 MSEDCL is bound by Act, Rules and Regulations related to OA

so also is the OA consumer bound to follow all the provisions of the Act/Regulations. (OA consumer cannot be granted any concession from statutory provisions)

 After expiry of EPA; sale to Utility at discounted rates should be

mandatory;

 Commission may allow repowering/refurbishment of old

turbines only when the wind energy generator agrees to enter EPA with MSEDCL;

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47

MSEDCL SUBMISSION

 MNRE has withdrawn the qualifying criteria of minimum wind power

density (WPD) of 200 W/m2 at 50m above ground level for establishment of wind power project; Need for change in procedure for classification of Wind Power Projects in Wind Zone Class by MEDA ;

 Considering the previous measurements and self declaration of WEGs, wind

zones are decided; Need of more scientific and logical approach to establish correct wind zone;

 Technological developments need to be considered and the benefit should

be passed on to common consumers. It is learned that Class C WTG which are now available in the market provide 26 % CUF even at flat terrain like Jath, Sangli. But, the generator continues to enjoy Zone 1 tariff instead of Zone 3 tariff.

 Considering inadequacy of data and efforts required for correct wind zone

determination, it would be better to have a single tariff for the entire State;

 States like Gujarat, Karnataka, Andhra Pradesh and Tamil Nadu having huge

wind energy potential have determined the single tariff only.

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48

MSEDCL SUBMISSION

 Balancing Solar, Pump storage based hydro and wind can be

effectively planned in order to optimize generation -

 To achieve this end there will be a need for an independent study which

shall outline the load mix and future capacity addition planning to achieve effective load balance;

 Implement Renewable Regulatory fund which will help in better

infirm load management and cost recovery;

 The RRF mechanism is to be effective from 1.7.2013 and it would be

in Maharashtra’s best interest to implement the scheme in order to promote effective scheduling and payment mechanism for renewable energy;

 Developing forecast models and adopting best practices in order to

have better wind generation forecasting

 The same can be implemented by a central agency and proportionate costs

could be borne by the wind developers

 Modelling and forecasting, as well as new communication technologies are

current research priorities and will further refine these options

SLIDE 49

49

MSEDCL SUBMISSION

THANK YOU!

SLIDE 50

50

WIND POWER VARIABILITY : A WIKIPEDIA OVERVIEW

SLIDE 51

51

Electricity generated from wind power can be highly variable at several different timescales: hourly, daily, or seasonally. Annual variation also exists, but is not as significant. Because instantaneous electrical generation and consumption must remain in balance to maintain grid stability, this variability can present substantial challenges to incorporating large amounts of wind power into a grid system. Intermittency and the non-dispatchable (Non-maneuverable) nature of wind energy production can raise costs for regulation, incremental operating reserve, and (at high penetration levels) could require an increase in the already existing energy demand management, load shedding, storage solutions or system interconnection with HVDC cables. Fluctuations in load and allowance for failure

f large fossil-fuel generating units require reserve capacity that can also compensate for variability
f wind generation.

Wind power is however, variable, but during low wind periods it can be replaced by other power

sources. Transmission networks presently cope with outages of other generation plants and daily

changes in electrical demand, but the capacity factor of intermittent power sources such as wind power, are unlike those of conventional power generation plants, being on average 70-90%, higher than winds, thus offering a challenge to the prospect of large wind power grid penetration. Presently, grid systems with large wind penetration require an increase in the frequency of usage of natural gas spinning reserve power plants to prevent a total loss of electricity in the event that conditions are not favorable for power production from the wind. At low wind power grid penetration, this is less of an issue.

VARIABILITY

SLIDE 52

52

POWER SCENARIO IN OTHER COUNTRIES

SLIDE 53

53

EXPERIENCE IN OTHER COUNTRIES AND INDIA

 Denmark, Germany and the United States have been able to meet their strict

forecasting guidelines through



availability of updated meteorological information and



employing various technical measures like energy assessments, use of a sufficient number of

nsite meteorological masts, wind flow modelling etc

 These technical measures are best suited to geographies with consistent wind patterns,

unlike India.

 These countries also have the benefit of professional forecasting agencies like Energy

and Me-teo GmbH (Previento) and AWS Truewind (eWind) which is not the case in India.

 No native organizations which provide the prediction facility except few international

rganizations present in India like AWS Truewind, 3Tier etc.



The concentration of error claimed by these companies across the range of countries where they have used their forecasting tool including India is between 20-30% for different type of terrain features.

 The current situations up till March 2012 was that only few farm developers like

Gamesa and GFL in Gujarat have started forecasting and providing the schedule to regional SLDC on trial basis



Others are working on acquiring and setting up of the requisite tools, instruments and data acquisition system in place to do forecasting and provide schedules to the SLDCs.

SLIDE 54

54

GERMANY EXPERIENCE

 Features of German System 

All wind power production and its deviations in Germany are combined virtually (on a 15- minute average basis), and then distributed to four Transmission System Operators (TSO);



The TSOs use the services of up to 10 wind forecast service providers at the same time, and then run algorithms selecting the best wind energy forecast in real time.



They forecast wind energy production 72 hours in advance for setting up their energy schedules, and then use short-term forecasts up to 8 hours in advance of Real-Time

perating decisions.



The TSOs communicate the data from the wind generation facilities every 15 minutes and update the 72 hour wind generation forecast twice a day. They do not receive data from all the wind farms, so they use modeling and scaling methods to fill in the missing data.



Wind production curtailments are possible in the case of jeopardized “security of supply.”



These events are rare in the transmission system, but happen frequently in the distribution networks.



German TSOs are looking for new technologies for energy storage and smart grids.



Special centre for managing the congestion problem on a wide-area basis has been built in

Munich. Its name is Central Allocation Office GmbH (CAO).

SLIDE 55

55

GERMANY ISSUE – IS INDIA MOVING ON SAME PATH?

 On September 14 2012, Britain’s 3,500 wind turbines broke all

records by briefly supplying just over 4 GW of electricity to the national grid.

 Three hours later, in Germany, that country’s 23,000 wind turbines

and millions of solar panels similarly achieved an unprecedented

utput of 31GW.

 Germany facing two technical problem:  Incredibly difficult to maintain a consistent supply of power to the grid as

wildly fluctuating renewable output has to be balanced by input from conventional power stations

 To keep back-up constantly available can require fossil-fuel power plants to

run much of the time very inefficiently and expensively

 Difficult to keep the grid balanced resulted into permanently at risk

f power failures

 Conventional Plants are threatening to close due to unprofitability at the

price of renewable energy

 Aggressively promotion of Renewable energy and providing subsidies

made the electricity costlier in Europe

Mighty battle is now developing in Germany between green fantasists and practical realists

SLIDE 56

56

ISSUES IN GERMAN WIND POWER

 Germany

is dumping electricity

n

its unwilling neighbors

 Central and Eastern European countries are

moving to disconnect their power lines from Germany’s during the windiest days

 The power grids in Czech are “stretched to

their limits” and face potential blackouts when output surges from wind turbines in northern Germany

 The Czechs plan to install security switches

near borders by year-end to disconnect from Europe’s biggest economy to avoid critical

verload.

 With an insufficient north-south connection,

Germany’s power network came close to a collapse last February when high winds in the Baltic sea flooded it with power and the Czech Republic and Poland threatened to disconnect their grids.

Wind Energy and Solar Energy fed into the Power Grid on May 25 and May 26, 2012

German wind turbines overloading European grid, highlighting problem of wind power oversupply

SLIDE 57

57

SPAIN – EXPERIENCE

 The large amount of integration of wind generation prompted the Spanish TSO “REE” to

develop a three-pronged strategy focusing on sophisticated wind forecasting tools, wind farm connection standards and dispatchability (manoeuvrability) of the wind farms.



Forecasting tools: Wind producers entitle to deliver electricity to grid via wholesale market or distributor. In either case, the wind parks are required to provide a wind forecast to REE. In 2002, REE started to develop an hourly forecasting system that delivered forecasts up to 48 hours in advance. Using data from the wind parks for the various areas throughout the peninsula, REE was able to create and use a high quality forecast system that could focus on any size region within the country.



Wind park connection standards: REE undertook a transient stability study of the response of wind energy to fault-caused voltage dips in order to determine the maximum wind production of the Iberian Power System in peak and off peak

conditions. The result of the study defined the voltage ride-through requirements and

the permissible active and reactive consumption values during voltage dip situations.



Dispatchibility: REE established a Wind Generation Control Center (WGCC) that was integrated with their Control Center. The WGCC is a dedicated desk that is available 24 hours a day, 7 days a week and is responsible for collecting and providing the Real-Time data on the wind facilities to the Control Center, and in turn, providing the dispatch instruction from the Control Center to the wind parks.

SLIDE 58

58

EUROPEAN TREATMENT – INTERCONNECTION WITH GRIDS

 Western Danish grid can handle a high proportion of wind power

very well - good interconnectors with the Swedish, Norwegian and German grid

 In 1996, Norway depending largely on hydropower, Sweden on a mix

f hydropower and nuclear power, Denmark on thermal power

plants and wind only emerging “Nord Pool Market”

 Denmark can trade wind power on the spot market in times of

excessive supply,

 if this cannot be used at the time of production elsewhere in the market, it

can be stored in hydropower storage facilities i.e. in Norway.

 In turn, Danish operators can purchase extra electricity on the 'Nord

Pool' market at times of low wind generation.

 The connection to the 'Nord Pool' market, together with the rather

unique situation of strong interconnections to Germany, allows Denmark to balance the high penetration of wind power

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59

CALIFORNIA, INDEPENDENT SYSTEM OPERATOR (ISO)

 California ISO carried out detailed study in 2007 and came out with following

recommendations:



Implement a state-of-the-art wind forecast service for all wind generator energy production within the California ISO-controlled Grid. This includes Day-Ahead, Hour- Ahead and Real-Time wind generation forecasts. These forecasts will be crucial for the unit commitment, scheduling and dispatch processes in the Day-Ahead, Hour-Ahead and Real- Time time frames.



Incorporate the Day-Ahead and Hour-Ahead wind generation forecasts (block energy schedules) into the California ISO’s and the SCs’ scheduling processes. The Day-Ahead and Hour-Ahead schedules must be based on the forecast wind generation values.



Integrate the Real-Time wind generation forecast (average wind generation for 5- minute dispatch intervals) with the Real-Time unit commitment and MRTU dispatching applications.



Implement a procedure where the California ISO dispatcher can send dispatch notices to wind generation operators and require them to implement pro-rata cuts in their energy

production. During over-generation periods, when dispatchable generation plants are

already operating at their minimum levels, the California ISO needs to have an ability to curtail wind generation on an as-needed basis.

Tamilnadu faces the similar problem. When wind generation floods the transmission system, the wind generation is cut off.

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POWER: AVAILABLE SOURCE WISE

Source Unit As on 31st March As on 31st March 2013 Expected in 2013-14 2011 2012 Thermal (State+Pvt.) MW 9665 10366 12446 18836 (Mus) ( 54136 ) ( 61143 ) (67556) (90000) Renewable MW 3408 4198 4609 5164 (Mus) (2692) ( 3339 ) (3824) (4000) Hydro MW 3066 3066 3066 3066 (Mus) ( 6300) ( 6773 ) ( 5924 ) (6200) Natural Gas MW 2714 2740 2740 2740 (Mus) (7073 ) ( 6237) ( 5337 ) (5000) Central Sector Allocation MW 5376 5792 6307 6627 (Mus) ( 37435) ( 38489 ) ( 35978 ) (37800) Total MW 24229 26162 29168 36433 (Mus) ( 107636 ) (115981) (118619) (143000)

SLIDE 61

61

TARIFFS OF ELECTRICITY IN 2012-13

 Average Power Purchase Cost - 3.39 Rs./unit  Cost of Supply

5.56 Rs./Unit
No. of

Consumer Amount Rs.Crs 2012-13 2012-13 1 Industrial (LT and HT) 347,262 6,363 2 Commercial (LT and HT) 1,265,407 1,933 3 Others * 2,567,279 1,210 4 Total 1,868,948 9,506

No. of

Consumer Amount Rs.Crs 2012-13 2012-13 1 Domestic (LT) 16,474,882 1,008 2 Agriculture (LT and HT) 3,459,790 6,935 3 Others $ 194,983 1,563 4 Total 20,129,655 9,506 Category Sr. No.

*Others include HT-Railway, LT Advertising, LT-Temporary and Standby charges DETAILS OF SUBSIDIZING CONSUMERS DETAILS OF SUBSIDIZED CONSUMERS

Category Sr. No.

$ Others include HT-PWW, HT-Bulk Supply, LT-Street Light, LT-PWW, Mula Pravara and Bhivandi Franchisee

B.P.L. Cost – 0.76 Rs/Unit
1-100 cost – 3.36 Rs/Unit
Agriculture in Gujrat. 2.52 Rs/ Unit

in Maharashtra 1.01 Rs/ Unit

SLIDE 62

62

RE POWER DETAILS

Upto 31.03.2008 31.03.2009 31.03.2010 31.03.2011 31.03.2012 31.03.2013 Wind 1754 1932 2071 2310 2717 3006 Bagasse 320 393 422 620 893 1088 Biomass 87 95 115 155 155 170 Industrial / Municipal Solid Waste 11 11 11 16 20 24 Solar 1 20 175 Small Hydro Project 214 214 230 247 265 271 Total 2375 2634 2838 3348 4070 4734 Installed Capacity As on RE Source

2375 2634 2838 3348 4070 4734 500 1000 1500 2000 2500 3000 3500 4000 4500 5000

Upto 31.03.2008 31.03.2009 31.03.2010 31.03.2011 31.03.2012 31.03.2013

RE Installed Capacity as on(MW)

SLIDE 63

63

SALES AND REVENUE MIX FOR FY 2012-13

SLIDE 64

64

MSEDCL SUBMISSION

Top 10 Countries’ Wind Power Installed Capacity (2012 year-end)

Country Wind Power % World Total Installed capacity (MW)

# provisional

China 75,564# 26.8 United States 60,007 21.2 Germany 31,332 11.1 Spain 22,796 8.1 India 18,421 6.5 United Kingdom 8,845 3.0 Italy 8,144 2.9 France 7,196# 2.5 Canada 6,200 2.2 Portugal 4,525 1.6 Rest of World 39,853 14.1 World Total 282,482 MW 100%

SLIDE 65

65

PUMPED-STORAGE HYDROELECTRICITY (PSH)

Pumped-storage hydroelectricity (PSH) is a type of hydroelectric power generation used by some power plants for load balancing. The method stores energy in the form of potential energy of water, pumped from a lower elevation reservoir to a higher elevation. Low-cost off-peak electric power is used to run the pumps. During periods of high electrical demand, the stored water is released through turbines to produce electric power. Although the losses of the pumping process makes the plant a net consumer of energy overall, the system increases revenue by selling more electricity during periods of peak demand, when electricity prices are highest.

 Pumped storage is the largest-capacity form of grid energy storage

available, and, as of March 2012, the Electric Power Research Institute (EPRI) reports that PSH accounts for more than 99% of bulk storage capacity worldwide, representing around 127,000 MW. PSH reported energy efficiency varies in practice between 70% and 80%,with some claiming up to 87%

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66

PUMPED-STORAGE HYDROELECTRICITY (PSH)

It takes 28 hours to fill the upper reservoir. During periods of high electric demand, water can be released from the reservoir through a tunnel drilled through the center of the mountain, driving electric generators in an underground hydroelectric plant. The plant has a capacity of 1600 megawatts of electricity and can generate for up to 22 hours. The plant is used most every day and serves as an important grid balancing in the TVA system. The plant was idled in March 2012 due to cracks in the generators' rotors. The TVA estimated that the plant will not return to full operation until 2014 or 2015. Raccoon Mountain Pumped-Storage Plant is a pumped-storage hydroelectric underground power station in Marion County, just west of Chattanooga in the U.S. state of Tennessee. The facility is owned and operated by the Tennessee Valley Authority (TVA). Construction was started in 1970 and was completed in 1978. Water is pumped from Nickajack Reservoir on the Tennessee River at the base of Raccoon Mountain to a storage reservoir built at the top of the mountain. But here wind generation is closely associated with monsoon when hydro generation is mostly used for flood control. Probably the water can not be pumped in the dam again.

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67

ENCOURAGING ENVIRONMENT FOR INVESTORS – AFFECTS CONSUMERS / MSEDCL

 Considering the investor friendly environment and assurance of

recovery of their investment; most of the new investors are willing and signing EPAs with MSEDCL.

 The draft order ensures that the wind projects in the State are

viable & profitable at the cost of consumers and MSEDCL

 However, promotion is at the cost of common consumers  Additional returns on investments than counter-parts in

ther states

Are we trying to support inefficient generation (Zone 1)

……… can we afford to pay for inefficiency

Choice needs to be considered to safeguard the interest of Consumers or Investors

SLIDE 68

68

UNTAPPED POTENTIAL

 As per MNRE Data, the State has huge potential of 5439 MW  So far State has achieved only 2954 MW  Assessment of the Potential and ground reality has huge

variation

 RPO needs to be on the realistic approach instead of the Potential

assessed by MEDA/MNRE

 Presently, the actual wind generation based on the installed

capacity for FY 2012 stood at about 3% of overall energy demand as compared to the recommended RPO level of 6.75%.

 It is unlikely that majority of the wind potential identified will

be developed

Realistic achievement against the Potential needs to be taken into account while deciding RPO

SLIDE 69

69

AFFORDABLE POWER

 National Electricity Policy envisages availability of reliable and

quality power at competitive rates

 National Tariff Policy envisages availability of electricity to

different categories of consumers at reasonable rates

 Section 73 of the Act provides for CEA to advise Government

for reliable and affordable electricity for all consumers

 Costly Power need to be attributed to subsidizing Consumers  Those who can afford to pay for luxury, should pay  A Petition on similar lines has been submitted to MERC

requesting to approve RE Charges for HT Industries generating green house gases/Pollution

Goal Should be “Inclusive Growth” by providing affordable, adequate and quality power for all consumers.