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Delhi Electricity Regulatory Commission sets guidelines for turning power consumers into producers

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Saturday, October 04, 2014: Delhi Electricity Regulatory Commission (DERC), the power regulator, has set guidelines for consumers to ensure minimum transformer-level capacity aiming at better connectivity with the renewable energy system. Last month DERC initiated the process that consumers of power must generate renewable energy.

On solar power generation, tariffs were also declared by the commission, which would be estimated as the average power purchase costs for the entire year. As per DERC norms, not less than 20 per cent of the rated capacity should be offered, in order to ensure that the discom connects to the renewable energy system for net metering by the distribution transformer. Hence, the transformer should have minimum 20 per cent connectivity. The consumer’s interest will be protected as the DT level capacity will be assessed by an independent agency. As per the transformer’s capacity, according to an official, solar power connectivity will be decided.

The solar tariffs, which will be the average cost of power for the entire year, will be Rs 4.75-Rs 5 per unit for the fiscal year, 2014-15. Power procured from all sources including thermal and gas will be covered in this scheme. DERC chairman P D Sudhakar said, most generators of renewable energy will use solar power for personal use and if any power is actually exported to the grid then the consumer will be paid by the discom, as per the tariff rate, which has been set as the annual average cost of power. Due energy credits will be recorded in the next power bill and when the financial year ends, pending energy credits will also be paid to the consumer. But in Delhi, chances of selling solar power is less, as solar generation will be possible in sunny days only.

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The new guidelines, as per The Times of India, state, “The connectivity shall be provided on a first-come-first-served basis subject to a feasibility analysis, including operational and capacity constraints. For initial application, a fee of Rs 500 has been prescribed. With this, consumers can set up their own solar panels and either supply directly to the grid or use it partially. Whatever you supply to the grid, you can draw back whenever you need it.” Regulations on the net metering system also outline how people can generate renewable energy on their own premises and reduce electricity bills. With the new system, consumers will be independent power producers too.

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