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BIHAR ELECTRICITY REGULA

COMPLIANCE AND REC

No. BERC-Regl-01/

66, 86(1)(e) and 181 of the E

behalf, and after previous p

(hereinafter referred to as

regulations namely:

1.

Short Title and Comm

1.1

These regulations m

(Renewable Purcha

Implementation) Reg

1.2

These regulations sha

Bihar Gazette.

1.3

These Regulations sh

2.

Definitions and Interp

2.1

In these regulations, u

(a)

‘Act’ means th

amendment th

(b)

'Area of Supp

authorized to s

REGISTERED

Bihar Gazett

Bihar Gazett

Bihar Gazett

Bihar Gazett

XTRA ORDINARY

SHED BY AUTHORITY

27 KARTIK (S)

TNA, THURSDAY, 18TH NOVEMBER

CTRICITY REGULATORY COMMISSION

ATORY COMMISSION (RENEWABLE PURCHASE OBLI

C FRAMEWORK IMPLEMENTATION) REGULATIONS,

—————

NOTIFICATION

The 16th November 2010

/10–05–In exercise of powers conferred under

Electricity Act, 2003 and all other powers enab

publication, the Bihar Electricity Regulatory

'BERC' or 'Commission') hereby makes th

mencement

may be called the Bihar Electricity Regulatory

ase Obligation, its Compliance and REC

gulations, 2010.

all come into force from the date of their publi

all extend to the whole of the State of Bihar.

pretation:

unless the context otherwise requires,

he Electricity Act, 2003 (Act No.36 of 2003) an

hereof;

ply' means the area within which the distributio

supply electricity;

NO. PT.-40

tetetete

2010

IGATION, ITS

2010.

r sections 61,

bling it in this

Commission

he following

Commission

Framework

ication in the

nd subsequent

on licensee is

2

BIHAR GAZETTE (EXTRA) 18TH NOVEMBER 2010

(c)

‘Central Agency’ means the agency operating the National Load Dispatch

Centre or such other agency as the Central Commission may designate

from time to time;

(d)

‘Central Commission’ means the Central Electricity Regulatory

Commission referred to in sub section (1) of section 76 of the Act;

(e)

‘Certificate’ means the renewable energy certificate issued by the Central

Agency in accordance with the procedures prescribed by it and under the

provisions specified in the Central Electricity Regulatory Commission

(Terms and Conditions for recognition and issuance of Renewable Energy

Certificate for Renewable Energy Generation) Regulations, 2010;

(f)

‘Commission’ means the Bihar Electricity Regulatory Commission;

(g)

'Distribution Licensee' means a licensee authorized to operate and

maintain a distribution system for supplying electricity to the consumers in

his area of supply;

(h)

‘Floor Price’ means the minimum price as determined by the Commission

in accordance with these regulations at and above which the certificate can

be dealt in the power exchange;

(i)

‘Forbearance Price’ means the ceiling price as determined by the Central

Commission in accordance with the Central Electricity Regulatory

Commission (Terms and Conditions for recognition and issuance of

Renewable energy Certificate for Renewable Energy Generation)

Regulations 2010 as amended from time to time, within which only the

Certificate can be dealt in power exchange;

(j)

‘MNRE’ means the Ministry of New and Renewable Energy; Government

of India;

(k)

‘Obligated Entity’ means the distribution licensee, consumer owning the

captive power plants and open access consumer in the state of Bihar which

is mandated to fulfill renewable purchase obligation under these

Regulations;

(l)

'Person' shall include any company or body corporate or association or

body of individuals, whether incorporate or not, or artificial juridical

person;

(m)

‘Power Exchange’ means any exchange operating as the power exchange

for electricity in terms of the orders issued by the Central Commission;

(n)

‘Preferential Tariff’ means the tariff fixed by the Appropriate Commission

for sale of energy from a generating station based on renewable energy

sources to a distribution licensee;

(o)

'Quantum of Purchase' means percentage share of total purchase of

electricity from renewable energy sources as specified in these

Regulations. The quantum would be the sum of all direct purchases from

generating stations based on renewable energy sources and purchase from

any other licensee, which would arise from renewable energy sources;

(p)

‘Renewable Energy Sources’ means non-conventional, renewable

electricity generating sources such as small/mini/micro/hydel, wind solar,

biomass and bagasse based cogeneration, urban/municipal waste, or such

other sources, (which are generally inexhaustible and can be replenished

in a short period of time) as approved by the Ministry of New and

Renewable Energy, Government of India or by the state of Bihar;

(q)

'State' means the state of Bihar;

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BIHAR GAZETTE (EXTRA), 18TH NOVEMBER 2010

(r)

‘State Agency’ means the agency in the State of Bihar as may be

designated by the Commission to act as the agency for accreditation and

recommending the renewable energy projects for registration and to

undertake functions under these regulations;

(s)

'Supply', in relation to electricity, means the sale of electricity to a licensee

or a consumer;

(t)

‘Year’ means a financial year.

2.2

The words and expressions used and not defined in these regulations but defined

in the Act shall have meanings assigned to them in the Act. Expression used

herein but not specifically defined in these Regulations or in the Act but defined

in any other regulations issued by the Bihar Electricity Regulatory Commission

shall have the same meaning assigned to them.

3.

Applicability of Renewable Purchase Obligation

3.1

These regulations shall be applicable to :

(i)

Distribution licensee

(ii)

Any other person consuming electricity (a) generated from conventional

Captive Generating Plant having capacity of 5MW and above for his own

use and or (b) procured from conventional generation through open access

and third party sale.

4.

Renewable Purchase Obligation

4.1

Every obligated entity shall purchase not less than 1.5%, 2.5%, 4%, 4.5% and 5%

of its total energy consumption (total energy input minus T&D losses) during

2010-11, 2011-12, 2012-13, 2013-14 and 2014-15 respectively from renewable

energy sources under the Renewable Purchase Obligation or until reviewed by the

Commission.

Provided that 0.25% out of the renewable purchase obligation so specified

in the year 2010-11 shall be procured from generation based on solar as

renewable energy source and shall be increased at a rate of 0.25% every year

thereafter till 2014-15 or until reviewed by the Commission.

Provided further, such obligation to purchase renewable energy shall be

inclusive of the purchases, if any, from renewable energy sources already being

made by concerned obligated entity.

Provided also that the power purchases under the power purchase

agreements for the purchase of renewable energy sources already entered into by

the distribution licensees and consented to by the Commission shall continue to be

made till their present validity, even if the total purchases under such agreements

exceed the percentage as specified hereinabove.

4.2

The Licensee shall generally source the mandatory percentage purchase from

renewable sources within the State. If, however, they are not able to meet the

purchase obligation from such sources located in the State, they shall have the

option of purchase, the shortfall from outside the State. The energy generated

from renewable sources in the State which is used by generator itself or sold to

third party under open access, the same will be considered under the mandatory

minimum percentage of power purchase.

4.3

The Licensee or its successor entities shall submit half yearly progress report on

the capacity addition, purchase of electricity from such projects and the energy

generated from renewable sources in the State which is used by generator itself or

sold to third party under open access to the Commission and also post them on

their website.

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BIHAR GAZETTE (EXTRA) 18TH NOVEMBER 2010

4.4

The Commission may, suo-motu or at the request of licensee, revise the

percentage targets for a year as per clause 4.1 of these Regulations keeping in

view supply constraints or other factors beyond the control of the licensee.

5.

Certificates under the Regulations of the Central Commission

5.1

Subject to the terms and conditions contained in these regulations the Certificates

issued under the Central Electricity Regulatory Commission (Terms and

Conditions for recognition and issuance of Renewable Energy Certificate for

Renewable Energy Generation) Regulations, 2010 shall be the valid instruments

for the discharge of the mandatory obligations set out in these regulations for the

obligated entities to purchase electricity from renewable energy sources.

Provided that in the event of the obligated entity fulfilling the renewable

purchase obligation by purchase of certificates, the obligation to purchase

electricity from generation based on renewable energy other than solar sources

can be fulfilled by purchase of non-solar certificates and the obligation to

purchase electricity from generation based on solar as renewable energy sources

can be fulfilled by purchase of solar certificates only. If solar certificates are not

available in a particular year, then in such cases, additional non-solar certificate

shall be purchased for fulfillment of the Renewable Purchase Obligation (RPO).

5.2

Subject to such direction as the Commission may give from time to time, the

obligated entity shall act consistent with the Central Electricity Regulatory

Commission (Terms and Conditions for recognition and issuance of Renewable

Energy Certificate for Renewable Energy Generation) Regulations, 2010 notified

by the Central Commission in regard to the procurement of the certificates for

fulfillment of the Renewable Purchase Obligation under these regulations.

5.3

The Certificates purchased by the obligated entities from the power exchange in

terms of the regulation of the Central Commission mentioned in clause (5.1) of

this Regulation shall be deposited by the obligated entities to the Commission

within a month of the purchase of the certificate.

6.

State Agency

6.1

The Commission shall designate an agency as the State Agency for accreditation

and recommending the renewable energy projects for registration and to

undertake functions under these regulations.

6.2

The State Agency shall function in accordance with the directions issued by the

Commission and shall act in consistent with the procedures/rules laid by Central

Agency for discharge of its functions under the Central Electricity Regulatory

Commission (Terms and Conditions for recognition and issuance of Renewable

Energy Certificate for Renewable Energy Generation) Regulations, 2010.

6.3

The State Agency shall submit quarterly status to the Commission in respect of

compliance of renewable purchase obligation by the obligated entities in the

format as stipulated by the Commission and may suggest appropriate action to the

Commission if required for compliance of the renewable purchase obligation.

6.4

If the Commission is satisfied that the State Agency is not able to discharge its

functions satisfactorily, it may by general or special order, and by recording

reasons in writing, designate any other agency to function as State Agency as it

considers appropriate.

7.

Distribution Licensee

7.1

Each distribution licensee shall indicate, along with sufficient proof thereof, the

estimated quantum of purchase from renewable energy sources for the ensuing

year in tariff/annual performance review petition in accordance with Regulations

5

BIHAR GAZETTE (EXTRA), 18TH NOVEMBER 2010

notified by the Commission. The estimated quantum of purchase shall be in

accordance with clause 4.1 of these Regulations. If the distribution licensee is

unable to fulfill the obligation, the shortfall of the specified quantum of that year

would be added to the specified quantum for the next year. However, credit for

excess purchase from renewable energy sources would not be adjusted in the

ensuing year.

7.2

Despite availability of renewable energy sources, if distribution licensee fails to

fulfill the minimum quantum of purchase from renewable energy sources, it shall

be liable to pay compensation as per clause 9 of these Regulations.

8.

Captive and Open Access User(s) / Consumer(s)

8.1

The quantum of RPO mentioned in clause 4.1 shall be applicable to captive and

open access user(s) / consumer(s) also.

8.2

Every Captive and Open access consumer(s) / user(s) shall have to submit

necessary details regarding total consumption of electricity and purchase of

energy from renewable sources for fulfillment of RPO on yearly basis on or

before 30th April to the State Agency.

8.3

Captive and Open Access Consumer(s) / User(s) shall purchase renewable energy

as stated in clause 4.1 of these Regulations. If the Captive user(s) and Open

Access consumer(s) are unable to fulfill the criteria as specified in clause 7.2 of

these Regulations the shortfall of the targeted quantum would attract payment of

regulatory charge as pre clause 9.

8.4

Captive / Open Access consumer(s) / User(s) may fulfill its RPO through the

renewable energy certificate as provided in clause 5 above.

9.

Effect of Default

9.1

If an obligated entities does not fulfill the renewable purchase obligation as

provided in these regulations during any year and also does not purchase the

certificates, the Commission may direct the obligated entity to deposit into a

separate fund, to be created and maintained by such obligated entity, such amount

as the Commission may determine on the basis of the shortfall in units of RPO

and the forbearance price decided by the Central Commission:

Provided that the fund so created shall be utilized as may be directed by

the Commission, partly for purchase of the certificates and partly for development

of transmission/sub-transmission infrastructure for evacuation of power from

generating stations based on renewable energy sources.

Provided further that the obligated entities shall not be authorized to use

the fund created in pursuance of the above, without prior approval of the

Commission.

Provided further that the Commission may empower an officer of the State

Agency to procure from the Power Exchange the required number of certificates

to the extent of the shortfall in the fulfillment of the obligations, out of the amount

in the fund.

Provided further also that if the obligated entities fails to deposit the

amount directed by the Commission within 15 days of the communication of such

direction, the obligated entities shall be in breach of its licence condition.

9.2

Where any obligated entity fails to comply with the obligation to purchase the

required percentage of power from renewable energy sources or the renewable

energy certificates, it shall also be liable for penalty as may be decided by the

Commission under section 142 of the Act.

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BIHAR GAZETTE (EXTRA) 18TH NOVEMBER 2010

Provided that in case of genuine difficulty in complying with the

renewable purchase obligation because of non availability of power in the State,

the obligated entity can approach the Commission for carry forward of

compliance requirement to the next year.

Provided further that where the Commission has consented to carry

forward of compliance requirement, the provision of clause (9.1) of the

Regulation or the provision of section 142 of the Act shall not be invoked.

10.

Appointment of Compliance Auditors & Monitoring Committee

10.1

The Commission may appoint from time to time Compliance Auditors to inquire

into and report on compliance of these Regulations. The Auditor shall also certify

the fund operated by the State Agency and created under Regulation (9.1) of these

Regulations.

10.2

The Commission may appoint Monitoring Committee to ensure compliance of

these regulations from time to time.

11.

Overriding Effect

Notwithstanding anything contained contrary to -

(a)

the BERC (Terms and Conditions for Determination of Tariff)

Regulations, 2007; and

(b)

the BERC (Terms and Conditions for Open Access) Regulations. 2006;

and

(c)

the order dated 21st May, 2009 and review order dated 29th June, 2010 in

respect of Determination of Tariff for Bagasse based Cogen Plants and

Biomass Power Plants, the terms and conditions stated therein.

(d)

the BERC (Terms and Conditions for Tariff Determination from Solar

Energy Sources) Regulations 2010 and any other relevant regulations.

notified by the Commission under section 181 of the Electricity Act 2003; these

regulations will have overriding effect.

12.

Power to Remove Difficulties

If any difficulty arises in giving effect to any of the provisions of these

regulations, the Commission may, either suo motu or on an application made to it,

by general or special order, direct the licensee/ generator or any other person to

take suitable action, not being inconsistent with the Act, which appears to the

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BIHAR GAZETTE (EXTRA), 18TH NOVEMBER 2010

Commission to be necessary or expedient for the purpose of removing the

difficulty.

13.

Issue of Orders and Directions

Subject to the provisions of the Act and these regulations, the Commission may,

from time to time, issue orders and practice directions with regard to the

implementation of these regulations and procedure to be followed for such

implementation and matters incidental or ancillary thereto.

14.

Saving of Inherent Powers of the Commission

Nothing contained in these Regulations shall limit or otherwise affect the inherent

powers of the Commission to adopt a procedure, which is at variance with any of

the provisions of these regulations, if the Commission, in view of the special

circumstances of the matter or class of matters and for reasons to be recorded in

writing, deems it necessary or expedient to depart from the procedure specified in

these regulations.

15.

Power to Amend

The Commission may from time to time add, vary, alter, suspend, modify, amend

or repeal any provision of these regulations.

By the order of the Commission,

Sd./- Illegible,

Secretary.

————

PUBLISHED AND PRINTED BY THE SUPERINTENDENT,

BIHAR SECRETARIAT PRESS, PATNA.

Bihar Gazette (Extra) 753—571+400—D.T.P.

Website: http://egazette.bih.nic.in