India: HSA | Projects, Energy & Infrastructure Monthly Newsletter | July 2023

Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 2023

• The Central Electricity Authority (CEA) on June 8, 2023 issued the CEA (Measures relating to Safety and Electric Supply) Regulations, 2023.
• By way of these Regulations, CEA has provided general safety requirements pertaining to the construction, installation, protection, operation and maintenance of electric supply lines and apparatus; and general conditions relating to the supply and use of electricity.
• The Regulations provide safety provisions for electrical installations and apparatus of voltage above and below 650 V, for overhead lines and underground cables, for renewable generating stations, electric vehicle charging stations, for high voltage direct current, among others.
• Key aspects:
• • These Regulations shall be applicable to electrical installations, including electrical plants and electric lines, and persons engaged in generation, transmission, distribution, trading, supply, or use of electricity.
  • The Regulations provide that the supplier, consumer, owner of the electrical installation, owner or agent or manager of a mine, agent of any company operating in an oil field, owner of a drilled well in an oil field, or a contractor who has entered into a contract with a supplier or consumer, owner of the electrical installation, owner or agent or manager of a mine, or agent of any company operating in an oil field, shall perform the duties incidental to the generation, transformation, transmission, conversion, distribution, or use of electricity.
  • The Regulations also state that the supplier, consumer, owner, or agent shall maintain a record, in paper or electronic form, wherein the names of the designated person and the purpose for which they are designated, shall be entered.
  • All suppliers of electricity including generating companies, transmission companies, and distribution companies shall designate an Electrical Safety Officer for ensuring observance of safety measures specified under these Regulations in their organization for the construction, operation, and maintenance of an electrical system of all generating stations, transmission lines, substations, distribution systems, and supply lines.
  • Whenever a licence is granted by the Appropriate Commission, two sets of maps specifying the particulars for which the licence is granted, shall be signed and dated corresponding to the date of notification of the licence by an officer designated by the Appropriate Commission.
  • Within 30 days of the grant of the licence thereof the licence holder must have physical or digital copies of the licence and maps showing the area of supply as specified in the licence to exhibit the same for public inspection at all reasonable times at its head office, local offices, if any, and at the office of every local authority within the area of supply.

Rajasthan Electricity Regulatory Commission (Renewable Purchase Obligations) Regulations, 2023

• Rajasthan Electricity Regulatory Commission (RERC) notified the Rajasthan Electricity Regulatory Commission (Renewable Purchase Obligations), Regulations 2023 (RPO Regulations, 2023), which will be applicable from April 1, 2024 onwards to the following:
• • Distribution Licensee including deemed licensee.
  • Open Access (OA) consumer.
  • Captive Power Plant (CPP) of installed capacity 1 MW and above.
• The Renewable Purchase Obligations have been stipulated for aforesaid entities under different categories as under:
• • Distribution Licensee including Deemed Licensee.
  • Wind RPO, which is required to be met from power generated by (i) Wind Power Projects (WPPs) which came into operation after March 03, 2022 (ii) in case of energy consumption over and above 7%, from WPPs commissioned till March 03, 2022. Wind RPO rises from 2.46% in 2024-2025 to 6.94% in 2029-30.
  • Hydropower RPO (HPO), which is required to be met from Hydro Power Projects (HPP) (inclusive of Pumped Hydro Storage Project (PSP) and Small Hydro Pumps (SHPs), that started operations after March 8, 2019. HPO of the State/DISCOM may possibly be fulfilled, out of the free power being given to the State from HPPs commissioned after March 8, 2019. However, to avail HPO benefit, the respective free power should not have been contributed for local area development. Pertinently, the hydro power imported from outside the territorial jurisdiction of India will be not accounted towards HPO. HPO rises from 1.08% in 2024-2025 to 2.82% in 2029-2030.
  • Other RPO, which is required to be met by energy produced from any RE based/green energy-based power projects not included within Wind RPO and HPO. Notably, from FY 2024-2025 onwards power from all other HPP, inclusive of free power from HPP commissioned before March 08, 2019, would form part of 'Other RPO'. Other RPO rises from 26.37% in 2024-2025 to 43.33% in 2029-2030.
  • The entity to purchase the additional hydro power to meet its HPO/ Renewable Energy Certificate (REC), in case the free power is insufficient to meet the criteria.
  • If obligate is unable to meet 'Other RPO' category in a particular year, the same can be met with surplus power consumed from appropriate HPP provided it is beyond 'HPO' for that year or partly from both. Similarly, the HPP with excess HPO can compensate the gap in accomplishment of 'Wind RPO' in a particular year and vice versa.
• CPP & OA Consumers with 1 MW and above:
• • There are no sub-categories of RPO in case of CPPs and OA Consumers. The RPO obligation rises from 29.91% in 2024-2025 to 43.33% in 2029-2030.
  • CPPs operationalized before April 1, 2016, need to meet the RPO level as directed by RERC for FY 2015-2016, and those operationalized after April 1, 2016, will have to meet the level as stipulated for the corresponding year of commissioning of such CPP.
  • In case of any augmentation of capacity, the RPO obligation of such CPP shall correspond with the year of such augmentation.
  • After meeting RPO, if there is surplus power by CPP, the same can be sold to distribution companies or in power exchange.
• Energy Storage Obligation (ESO):
• • Energy Storage Systems (ESS) by Distribution Licensee (including deemed licensee) are required to are required meet ESO (from solar/wind energy along with/through storage) which rises from 1.5% in 2024-2025 to 4% in 2029-2030.
  • ESO shall be computed in energy terms as a percentage of total consumption of electricity, thereby treating it as 'met' when at least 85% of entire energy gathered in the on yearly basis.
  • Energy stored from RE source would be considered as part of fulfilment of total RPO.
  • ESO requirements will be reviewed periodically in order to accommodate any new commercially viable energy storage technology and/or as per change in cost of battery ESS.

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