KERALA STATE ELECTRICITY REGULATORY COMMISSION

Thiruvananthapuram

NOTIFICATION

No. 609/D(T)/2018/KSERC Dated, Thiruvananthapuram, 07-02-2020

Preamble,- In exercise of the powers conferred by sub-section (1) of Section 181

of the Electricity Act, 2003 (Central Act 36 of 2003) read with clause (e) of
subsection (1) of Section 86 thereof and all other powers enabling it in this behalf
and after previous publication, the Kerala State Electricity Regulatory Commission
hereby makes the following Regulations, namely:-

Kerala State Electricity Regulatory Commission (Renewable

Energy and Net Metering) Regulations, 2020

Chapter – I

Preliminary

1. Short title, application, extent and commencement.-

(1) These Regulations may be called the ‘Kerala State Electricity

Regulatory Commission (Renewable Energy and Net Metering) Regulations,
2020’.
(2) These Regulations shall apply to all the existing and new, Grid
Interactive Renewable Energy Systems, consumers, prosumers, captive
consumers, captive generating plants, generating companies, distribution
licensees and obligated entities, in the matter of Determination of Tariff of
Renewable Energy, Renewable Purchase Obligation, Net Metering, Banking,
GenerationBased Incentives and related matters.

(3) These Regulations shall extent to the whole State of Kerala.

(4) It shall come into force from the date of publication in the Official
Gazette.

2. Definitions and Interpretations.-

(1) Definitions,-In these Regulations, unless the context otherwise
requires,

(a) ‘Act’ means the Electricity Act, 2003 (Central Act 36 of 2003);

(b) ‘Application’ means a request for connectivity of Renewable

Energy System to the State transmission and/or distribution grid,
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 as the case may be and, as per the application form duly filled in
all respect, as required by the distribution licensee, along with the
copy of the receipt as proof of payment of necessary charges
and accompanied by all necessary documents including copies
of approvals from statutory or other authorities;

(c) ‘Application form’ means the application form complete in all

respects in the appropriate format by the distribution licensee,
before the payment of applicable charges;

(d) 'Auxiliary energy consumption' or 'AUX' in relation to a period

in case of a generating station means the quantum of energy
consumed by auxiliary equipment of the generating station and
transformer losses within the generating station, expressed as a
percentage of the sum of gross energy generated at the
generator terminals of each unit of the generating station;

(e) ‘Banking facility’ means such facility whereby the prosumer or

the captive generator of Renewable Energy System injects
energy into the grid during a time block or period and have a
right to draw back the energy from the grid at a subsequent
different time block or period, subject to the terms and conditions
specified in these Regulations;

(f) ‘Beneficiary’ with respect to these Regulations means a licensee

who has an agreement with a Renewable Energy Generator for
purchase of power from the plant at the tariff approved by the
Commission;

(g) ‘Billing period’ means the period as approved by the

Commission for which electricity bills are regularly prepared by
the licensee for different categories of consumers;

(h) ‘Capital cost’ means the capital cost as defined in the

Regulations under Chapter V;

(i) ‘Captive consumer’ means a consumer owning and consuming

electricity generated from a captive generating plant including
from the captive renewable energy sources or captive co-
generation, as the case may be;

(j) ‘Captive Generating Plant’ means a power plant including the

renewable energy plant or co-generation plant, set up by any
person to generate electricity primarily for his own use and
includes a power plant set up by any co-operative society or
association of persons for generating electricity primarily for use
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 of its members and as specified in Electricity Rules, 2005
published by the Government of India and amended from time to
time;

(k) ‘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 for the purpose of
implementation of the scheme relating to issuance of renewable
energy certificate and performance of other duties as assigned
under the provisions of 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;

(l) ‘Central Commission’ means the Central Electricity Regulatory

Commission referred to in sub-section (1) of Section 76 of the
Electricity Act, 2003;

(m) ‘Certificate’ means the Renewable Energy Certificate issued by

the Central Agency in accordance with the procedures approved
under the provisions of 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;

(n) ‘Co-generation’ means a process which simultaneously

produces two or more forms of useful energy (including
electricity);

(o) ‘Commission’ means the Kerala State Electricity Regulatory

Commission;

(p) ‘Conduct of Business Regulations’ means the Kerala State

Electricity Regulatory Commission (Conduct of Business)
Regulations, 2003 as amended from time to time;

(q) ‘Connected load’ expressed in kW or kVA means aggregate of

the rated capacities of all energy consuming devices or
apparatus which can be simultaneously used, excluding stand-by
load if any, in the premises of the consumer, which are
connected to the service line of the distribution licensee;

(r) ‘Connection agreement’ means an agreement between State

Transmission Utility (STU), and / or distribution licensee and an
eligible entity, for connecting the renewable energy system to the
intra-state transmission system and / or distribution system, as
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 per the provisions of the KSERC (Connectivity and Intra-state
Open Access) Regulations, 2013;

(s) ‘Consumer’ means any person who is supplied with electricity for
his own use by a licensee or the Government or by any other
person engaged in the business of supplying electricity to the
public under Electricity Act, 2003 or any other law for the time
being in force and includes any person whose premises is, for the
time being, connected for the purpose of receiving electricity with
the works of a distribution licensee, the Government or such
other person, as the case may be;

(t) ‘Contract Demand or Contracted Demand’ means the

maximum demand in kW or kVA, agreed to be supplied by the
distribution licensee and indicated in the agreement executed
between such licensee and the consumer; or the contracted load
or contract demand duly revised thereafter;

(u) ‘Control Period’ or ‘Review Period’ means the period during

which the norms for determination of tariff for renewable energy
specified under these Regulations shall remain valid;

(v) “Eligible consumer” means a consumer getting supply of

electricity from the distribution licensee in its area of supply, who
intends to use a grid connected Renewable Energy system
installed in his premises to offset a part of or all of the consumer's
own electrical energy requirements as per the provisions of these
Regulations;

(w) “Energy and Power’’. ‘Energy’ is the ability to do work, where as

the ‘Power’ is the rate of doing work. In SI units, the unit of Power
is ‘watt’, ‘kilo watt’ or ‘Mega watt’ and the Energy is measured as
‘‘kilowatt hour (kWh)’;

(x) ‘Financial Year’ means the period beginning from first of April in
a Gregorian calendar year and ending on the thirty first of March
of the next calendar year;

(y) ‘Forbearance Price’ means the ceiling price for the Certificate for
each category of renewable energy, as determined by the Central
Commission in accordance with the REC Regulations, within
which only, the certificate can be dealt in the power exchange;

(z) ‘Generic tariff’ means the tariff determined in these Regulations

for the electricity generated from the Renewable Energy Plants
as per the norms and parameters specified in these Regulations;
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(aa) ‘Grid Interactive Renewable Energy System’ means a
Renewable Energy System which is connected to the
transmission or distribution system of the licensee, and is
capable of injecting energy into such system;

(ab) ‘Grid Support Charges’ means the charges to be paid by the

prosumers, captive consumers and other users, but excludes
consumers availing net metering facility having ‘Grid
Interactive Renewable Energy Systems’, for facilitating energy
injection into the transmission system and/or distribution system
irrespective of their connected load or contract demand;

(ac) ‘Gross calorific value’ or ‘GCV’ in relation to a fuel used in a

generating station means the heat produced in kCal by complete
combustion of one kilogram of solid fuel or one litre of liquid fuel
or one standard cubic meter of gaseous fuel, as the case may be;

(ad) ‘Gross station heat rate’ or ‘SHR’ means the heat energy
input in kCal required to generate one kWh of electrical energy at
the generator terminals of a thermal generating station;

(ae) ‘Hybrid Solar Power Plant’ means the solar powerplant that
uses other forms of energy input sources along with solar energy
for electricity generation;

(af) ‘Infirm Power’ means the power injected by a generation project

into the grid before the Date of Commercial Operation (COD), for
testing, trial run & commissioning of the project. Since power
from renewable energy sources is non firm in nature, the tariff
fixed by the Commission post COD shall also be applicable for
the power injected into the licensee system prior to CoD, subject
to the condition that the RE generator enters into an agreement
with the licensee to supply power from the RE plant at the tariff
determined by the Commission.

Provided that, if energy injected into the system by the RE

generator prior to CoD without identifying a buyer or if there is no
agreement with the licensee regarding the sale of power, SLDC
shall settle the transactions at the Deviation Settlement Rates.

(ag) ‘Installed capacity' or 'IC’ means the summation of the name

platecapacities of all the units of the generating station or the
capacity of the generating station (reckoned at the generator
terminals), approved by the Commission from time to time;

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(ah) ‘Inter-connection Point’ shall mean interface point of renewable
energy generating facility with the transmission system or
distribution system, as the case may be:
(i) the interface of the renewable energy system with the
outgoing terminals of the meter/distribution licensee’s cut-
outs/ switch gear fixed in the premises of the prosumer.
(ii) In relation to wind energy projects and solar photovoltaic
Projects, inter-connection point shall be line isolator on
outgoing feeder on High Voltage side of the pooling
substation;
(iii) In relation to small hydro power, biomass power and non
fossil fuel based cogeneration power projects and solar
thermal Power Projects the inter-connection point shall be
line isolator on outgoing feeder on HV side of generator
transformer;

(ai) ‘Invoice’ means either a bill or a supplementary bill or an

invoice or a supplementary invoice raised by the distribution
licensee relating to the billing cycle or billing period;

(aj) ‘kW’ means kiloWatt;

(ak) ‘Licensee’ means a person who has been granted license under
Section 14 of the Act and includes a person deemed to be a
licensee under Section 14 of the Act;

(al) ‘MNRE’ means the Ministry of New and Renewable Energy of the
Government of India;

(am) ‘Municipal solid waste’ or ‘MSW’ means and includes

commercial and residential waste generated in municipal or
notified areas in either solid or semi-solid form excluding
industrial hazardous wastes but including treated bio-medical
waste;

(an) ‘Net meter’ means the bi-directional meter, along with allied metering
equipment, to be installed and maintained by the licensee, for reading
the net import or export of electrical energy by the prosumer from/ to
the distribution system and the corresponding import/export of power
from/to the distribution system, and shall be an integral part of the net
metering system;

(ao) "Net metering" means an arrangement under which renewable

energy system installed at the premise of the prosumer receives or
delivers electricity, if any, to the distribution licensee, after off-setting
the electricity supplied by distribution licensee during the applicable
billing period;
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(ap) ‘Non fossil fuel based co-generation’ means the process in
which more than one form of energy (such as steam and
electricity) are produced in a sequential manner by use of
biomass, provided the project may qualify to be a co-generation
project if it fulfills the eligibility criteria as specified in these
Regulations;

(aq) ‘Non-firm power’ means the power generated from renewable

sources, the hourly variation of which is dependent upon
nature’s phenomenon like sun, cloud, wind, etc., that cannot
be accurately predicted;

(ar) ‘Non-solar Certificate’ means the certificate issued in respect of

the electricity generated from renewable sources of energy other
than solar source;

(as) ‘Normal Hours or Normal Period’ means the period from 06.00
hours to 18.00 hours on the same day;

(at) ‘Obligated Entity’ means the distribution licensee or the captive

consumer or the open access consumer in the State of Kerala,
who is mandated to fulfill renewable purchase obligation under
these Regulations;

(au) ‘Off-peak Hours or Off Peak Period’ means the period from
22.00 hours to 06.00 hours on the next day;

(av) ‘Open Access’ means the non-discriminatory provision for the

use of transmission lines or distribution system or associated
facilities with such lines or system by any licensee or consumer
or a person engaged in generation in accordance with the
Regulations specified by the Appropriate Commission;

(aw) 'Operation and maintenance expenses’ or ‘O&M expenses'

means the expenditure incurred on operation and maintenance of
the renewable energy system or part thereof, and includes the
expenditure on manpower, repairs, spares, consumables,
insurance and overheads;

(ax) ‘Peak Hours’ means the period from 18:00 hours to 22:00 hours
on the same day;

(ay) ‘Power Exchange’ means any licensed entity operating as an

exchange for transaction of electricity in terms of the orders
issued by the Central Commission;
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(az) ‘Preferential Tariff’ or ‘Feed in Tariff’ means the tariff determined
by the Commission for purchase of energy from a generating
station using renewable energy sources by a distribution
licensee;

(ba) ‘Premises’ includes any land, building, structure or roof top or

part or combination thereof; which is included in the details and
sketches specified in the application or in the agreement for grant
of electric connection or in such other records relating to revision
of connected load or contract demand;

(bb) 'Project' means a generating station and the evacuation

system up to inter-connection point, as the case may be, and in
case of a small hydro generating station, includes all components
of generating facility such as dam, intake water conductor
system, power generating station and generating units of the
scheme as apportioned to power generation till the Date of
Commercial Operation (COD) and shall be known as ‘Station’
after the declaration of COD;

(bc) ‘Prosumer’ means a captive consumer, having a renewable

energy system installed at the same premise of the consumer
who generates and consumes the electricity generated from such
renewable energy system and who can also inject the surplus
power from the renewable energy system into the grid using the
same network;

(bd) ‘REC Regulations’ means 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;

(be) ‘Renewable Energy’ means the electricity generated from any

renewable sources of energy;

(bf) ‘Renewable Energy Meter’ refers to a unidirectional energy

meter, installed and used solely to record the renewable energy
generation from renewable energy system installed at the
consumer’s premises;

(bg) ‘Renewable Energy System’ means the power plant and

connected systems other than the conventional power plant,
generating grid quality electricity from renewable energy
sources;

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(bh) ‘Renewable Purchase Obligation’ or RPO means the
obligation of an entity to purchase electricity generated from a
renewable source of energy as per these Regulations;

(bi) ‘Renewable Source of Energy’ means the source for the

generation of electricity from renewable sources such as small
hydro, large hydro with capacity above 25 MW commissioned
after 08.03.2019, wind, solar including its integration with
combined cycle, biomass, bio fuel cogeneration, urban or
municipal solid waste and such other sources approved by the
MNRE as renewable source;

(bj) ‘Seller Licensee’ means a distribution licensee which sells

electricity to other licensees;

(bk) ‘Settlement Period’ means, the periods for the purpose of

accounting of electricity from the following categories of
renewable sources,-

(i) from solar sources, the period from the first day of October in
a Gregorian calendar year to the thirtieth day of September in
the next calendar year; and

(ii) from non-solar sources, the period from the first day of April in
a Gregorian calendar year to the thirty first day of March in the
next calendar year;

(bl) ‘Small Hydro’ means Hydro Power projects with a station capacity
upto and including 25 MW;

(bm) ‘Solar Certificate’ means the certificate issued in respect of

electricity generated from solar source;

(bn) ‘Solar Meter’ means a unidirectional energy meter installed

as an integral part of the net metering system, at the point at
which the electricity generated by the solar energy system is
delivered to the main panel of the prosumer;

(bo) ‘Solar PV power’ means the Solar Photo Voltaic power project
that uses sunlight for direct conversion into electricity through
Photo Voltaic technology;

(bp) ‘State Agency’ means the agency in the State of Kerala

designated by the Commission to act as the agency for
accrediting and recommending the renewable energy system for
registration and for undertaking the functions assigned by the
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 Commission under these Regulations;

(bq) ‘Supply Code’ means the ‘Kerala Electricity Supply Code, 2014’,
as amended from time to time;

(br) ‘Tariff Order’ in respect of a licensee means the order issued

from time to time by the Commission, stipulating the rates to be
charged by the licensee from various categories of consumers for
supply of electrical energy and for other services;

(bs) ‘Tariff Period’ means the period for which the tariff is determined
by the Commission on the basis of the norms specified under
these Regulations, for the sale of electricity from a renewable
energy system. The Tariff period under these Regulations shall
be determine with the useful life as defined in Regulation 2.1(bu).

(bt) ‘Time block’ means the period/ duration in a day specified for the
purposes of these Regulations.

(bu) ‘Useful Life’ in relation to a unit of a generating station

including evacuation system shall mean the following duration
from the date of commercial operation (COD) of such generation
facility, namely:-
(a) Wind energy power project 25 years
(b) Bio mass power project with
Rankine cycle technology 20 years
(c) Non-fossil fuel cogeneration project 20 years
(d) Small Hydro Electric Plant 35 years
e) Municipal Solid Waste (MSW)/ and
Refuse Derived Fuel (RDF) based
Power project 20 years
f) Solar PV/Solar thermal power project 25 years

(2) Interpretations,-

(a) These Regulations shall be interpreted and implemented in

accordance with, and not at variance from, the provisions of the Act and the
Rules and Regulations made thereunder.

(b) Words, terms and expressions as defined in the Electricity Act,

2003 and in the Rules made thereunder by the Central Government,
Government of Kerala, Regulations issued by the Central Electricity Authority,
the Central Electricity Regulatory Commission and the Commission which are
used in these Regulations shall have and carry the same meanings as defined
and assigned to them in the said Act, Rules and Regulations, unless it has
been defined in this Regulation.
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 (c) In the interpretation of these Regulations, unless the context
otherwise requires:-
(i) Words in the singular or plural term, as the case may be,
shall also be deemed to include the plural or the singular
term, respectively;
(ii) Reference to any Statute, Rule, Regulation or Guideline
shall be construed as including all statutory provisions
consolidating, amending or replacing such Statute, Rule,
Regulation or Guideline referred to, as the case may be;
(iii) terms “include” and “including” shall be deemed to be
followed by“ without limitation” or “but not limited to”,
regardless of whether such terms are followed by such
phrases or words of like import.

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 Chapter - II
Renewable Purchase Obligation and Renewable
Energy Certificates
3. Obligation to purchase renewable energy.-

Distribution licensees, Captive Consumer and Open access

consumer in the State of Kerala shall have the obligation to generate and/or in
the alternative to purchase the quantum of renewable energy as specified in
the Table below;
Table-1
Financial Quantum of generation and/or purchase from
Year Renewable Energy Sources as a (%) of total
consumption (in terms of energy in kWh)
Non Solar Solar Total
2019-20 8.00 4.00 12.00
2020-21 9.00 5.25 14.25
2021-22 10.25 6.75 17.00
2022-23 * * *
2023-24 * * *
*Will be notified by the Commission later.

4. Renewable Purchase Obligation (RPO) of the Distribution licensee.-

(1) Every distribution licensee shall meet the renewable energy
obligation at the percentage specified in Table 1 above. For the purpose of
computing the total energy consumption within the area of the distribution
licensee, the quantum of energy met from large hydro sources of power with
capacity above 25 MW, commissioned on or before 08.03.2019 shall be
deducted.
Provided that the energy, if any, generated by the distribution licensee
from the renewable sources of energy and supplied to its consumers shall be
accounted towards its renewable purchase obligation.

Provided further that the solar energy generated or purchased in

excess of solar renewable purchase obligation may be accounted towards
meeting the non-solar renewable purchase obligation.

(2) The quantum of electricity generated by a person who is not an

obligated entity but utilizing the grid interactive renewable energy system of
the distribution licensee shall be accounted towards the renewable purchase
obligation of the distribution licensee, provided that the distribution licensee,-

(i) purchases such electricity at preferential tariff; or at a tariff

discovered through competitive bidding process;
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 or

(ii) afford to such person the benefit of banking facility for the
renewable energy generated by him.

(3) The quantum of electricity generated by a person who is an

obligated entity, using grid interactive renewable energy system and
consumed by him in excess of his renewable purchase obligation, may be
accounted towards the renewable purchase obligation of a distribution
licensee, provided the distribution licensee affords to such person, the benefit
of banking facility for such electricity.

(4) Any purchase of renewable energy under the power purchase

agreements entered into by the distribution licensee and approved by the
Commission, shall not be terminated till the expiry of the validity of such power
purchase agreements, on the ground that the total quantity of renewable
energy purchased including the quantity of renewable energy purchased
under such agreements exceeds the renewable purchase obligation of such
distribution licensee.

(5) The distribution licensee shall submit to the Commission, the

proposed quantum of purchase of renewable energy from the solar sources
and from the non-solar sources, separately in its petition for the approval of
the Aggregate Revenue Requirement and Expected Revenue from Charges,
for each financial year of the control period.

(6) A distribution licensee which is engaged in bulk purchase of

electricity from another licensee shall not have separate obligation for
purchase of renewable energy if,-
(i) the seller licensee meets the renewable purchase obligation for
the energy sold to the licensee or
(ii) The licensee reimburses to the seller licensee the additional cost
incurred as approved by the Commission by the seller licensee for
the generation or purchase of renewable energy to meet the
renewable purchase obligation of the licensee.

5. Renewable Purchase Obligation of the Captive consumer.-

Every captive consumer who owns a captive generating plant based
on conventional fossil fuel, (except the consumers having standby
generating sets, having capacity of and below 100 kW, or having stand by
generating sets with plant load factor less than 10% irrespective of
capacity of generating set)shall meet the quantum of renewable energy
not less than the percentage specified in Table 1 above, of its total captive
consumption.

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 Provided that the renewable energy, if any, generated and
consumed by the captive consumer shall be accounted towards its
renewable purchase obligation.
Provided further that the solar energy generated and consumed by
the captive consumer in excess of solar renewable purchase obligation
may be accounted towards its non-solar renewable purchase obligation.
Provided also that a captive consumer who produces and consumes
energy from his co-generation plant, is not required to meet their
Renewable Purchase Obligation, for the quantum of energy generated and
consumed from such co-generation plant.

6. Renewable Purchase Obligation of the Open Access consumer.-

(1) Every open access consumer shall meet the quantum of
renewable energy not less than the percentage specified in Table 1 above,
of the total energy availed by it through open access.
Provided that the renewable energy, if any, generated and consumed
by the open access consumer shall be accounted towards its renewable
purchase obligation.
Provided f u r t h e r that the solar energy, if any, generated and
consumed by the open access consumer in excess of solar renewable
purchase obligation may be accounted towards its non-solar renewable
purchase obligation.
(2) The renewable purchase obligation of an open access
consumer shall be based on the total energy purchased through open
access including the energy purchased from renewable sources, if any.

7. Preference for the purchase from the renewable energy generating

units within the State.-
Every distribution licensee shall purchase the quantum of renewable
energy required to meet its renewable purchase obligation preferentially from
the renewable energy generating units within the State if available, with the
prior approval of the Commission, and at the tariff approved by the
Commission.

Provided that, considering the environmental concerns, the

distribution licensee shall necessarily purchase the electricity generated
from municipal solid waste, with the prior approval of the Commission at the
tariff approved by the Commission.

8. Purchase of Renewable Energy Certificates under the REC

Regulations,-
(1) If any obligated entity fails to satisfy its renewable purchase
obligation during any financial year, it shall purchase Certificates to make
good such short fall.Subject to the terms and conditions in these Regulations,
the certificates shall be the valid instruments for the discharge of the
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mandatory renewable purchase obligation of an obligated entity.

(2) If the quantum of renewable energy generated or purchased from

solar sources by an obligated entity falls short of its solar renewable purchase
obligation during any financial year, such obligated entity shall purchase the
solar certificates, to make good such shortfall.

(3) If the quantum of renewable energy generated or purchased by

an obligated entity falls short of its non solar renewable purchase obligation,
during any financial year, such obligated entity shall purchase non-solar
certificates or solar certificates, to make good such short fall.

(4) Subject to such direction as the Commission may issue from time
to time, the obligated entity shall be bound to act consistent with the
provisions of the REC Regulations, for the procurement of the certificates for
fulfillment of the renewable purchase obligation under these Regulations.

(5) The obligated entity, shall within two months after the end of
every financial year, report the compliance of its Renewable Purchase
Obligation of the respective year, including the details of the renewable energy
certificates, if any, purchased for meeting the RPO and if directed by the
Commission produce the same for verification and ascertaining the
compliance.

9. State Agency and its functions. -

(1) A State Agency for accreditation and recommending the
renewable energy projects for registration and for undertaking the functions
under these Regulations shall be designated by the Commission.

(2) The State Agency shall function in accordance with the directions
issued by the Commission and the procedures and Regulations specified by
the Central Agency under the REC Regulations.

(3) The State Agency shall submit quarterly reports to the

Commission in respect of compliance of renewable purchase obligation by the
obligated entities in the format as approved by the Commission and may
suggest to the Commission, appropriate action if any required, for the
compliance of the renewable purchase obligation by the obligated entity.

(4) The Commission may from time to time fix the remuneration and
charges payable to the State Agency for the discharge of its functions under
these Regulations.

(5) If the Commission is satisfied that the State Agency is not able to
discharge its functions efficiently, it may by order with reasons in writing,
designate any other agency to function as the State Agency.
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10. Effect of default. -
(1) In case any obligated entity who is a distribution licensee fails to
comply with its renewable purchase obligation as provided in these
Regulations during any financial year and fails to purchase the required
number of certificates, the Commission may by order, direct such obligated
entity to deposit into a separate fund, to be created and maintained by such
entity in accordance with the directions issued by the Commission, such
amount as the Commission may determine on the basis of the shortfall in the
renewable purchase obligation and the forbearance price thereof.

Provided that in case of an obligated entity other than a distribution

licensee, such entity shall deposit such amount in a fund to be maintained and
administered by the State Agency or as may be directed by the Commission.

(2) The fund so created shall be utilized in such manner as may be

directed by the Commission for the purchase of Certificates or for such other
purposes for promoting the renewable energy within the State.

(3) The Commission may authorize the State Agency to procure, out
of the amount in the fund, the required number of Certificates from the power
exchange, to make good the shortfall in the renewable purchase obligation of
such obligated entity.

11. Power to review the RPO and to grant permission to carry forward
the short fall in renewable purchase obligation.-
(1) The Commission may review the renewable purchase obligation
of the obligated entities and all matters incidental thereto periodically.

(2) The obligated entity which fails to meet its renewable purchase
obligation in full in any financial year due to any genuine difficulty may apply to
the Commission for permission to carry forward to the next financial year, the
short fall in its renewable purchase obligation.

(3) The Commission shall issue appropriate orders on such

application with reasons thereof and communicate the same to the obligated
entity within a period of sixty days from the date of receipt of such application;

Provided that the application under Regulation 11.2 shall not be

rejected without affording to the obligated entity, an opportunity of being
heard.
(4) Where the Commission has granted permission to carry forward
to the next financial year, the short fall in its renewable purchase obligation
during that financial year, as per orders issued under Regulation 11.3 above,
no proceedings for noncompliance of RPO under these Regulations shall be
initiated against such Obligated Entity.
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 Chapter III
Grid Interactive Renewable Energy System under Net
Metering Facility

12. Scope and application.-

(1) The Regulations under this Chapter are applicable to the

following grid interactive renewable energy systems with net metering facility
installed by a prosumer at his premise, subject to other conditions specified
under Regulation 13.

(i) Grid interactive Distributed Solar Energy Systems.

(ii) Ground mounted solar energy systems.
(iii) Hybrid solar power plant.
(iv) Renewable energy system with battery storage facility.
(v) Any other Renewable Energy Systems, installed at the premises
of a eligible consumer.

13. General Conditions.-

(1) The distribution licensee shall provide the net metering

arrangement to the prosumer, who intends to install Grid Interactive
Renewable Energy Systems at his premise on non-discriminatory and first
come first serve basis, within 10 days from the date of submission of the
approval of Renewable Energy System from the Electrical Inspector. In case
the distribution licensee is not able to provide the net meters within the above
mentioned 10 days, the eligible consumer after intimating the licensee can
purchase the net meters at his own cost conforming to the specifications to be
notified by the licensee at their website.

(2) The Grid Interactive Renewable Energy Systems, installed by a

prosumer at his premise under this chapter shall be:

(a) of not less than one kW and not exceeding 1000 kW capacity on
AC side of the invertor connected to the net meter of the
distribution system, limited to the sanctioned connected load or
contract demand as applicable to the prosumer, with the
distribution licensee.

Provided that the domestic consumers with connected load

up to 20 kW is permitted to install ‘Renewable Energy System’ of
capacity up to 20 kW, irrespective of their connected load.

17
 Provided further that the above limit of 20 kW connected
load shall not apply in the case of group housing societies and
residential flats, for common services such as lift, common lighting,
club house, car parking, common areas etc.

Provided also that, prosumers including those prosumers

mentioned above are also permitted to install Renewable Energy
System in excess of their connected load or contract demand as
applicable. However, the benefit of net metering shall not be
allowed to such prosumers and such prosumers shall be treated at
par with the prosumers having RE capacity more than 1 MW, as
detailed in Chapter IV of these Regulations.

Provided also that, the Renewable Energy Systems installed

by the prosumers under net metering as on the date of notification
of these Regulations shall be allowed to continue irrespective of
their contract demand or connected load.

(b) located within the premises of the prosumer;

(c) interconnected and operate safely in parallel with the distribution
system of the licensee.

(3) The grid interactive renewable energy system under net metering
installed at the premise of the eligible individual prosumer shall utilize the
same service line and installation for injection of excess power into the grid.

Provided that, when a prosumer install Renewable Energy System in

excess of the connected or contract demand as applicable, the expense for
the augmentation of the distribution system required for connectivity shall be
borne by the prosumer.

Provided also that the maximum capacity that can be installed by a

single phase consumer shall be limited to 5 kW.

A prosumer having electric connections in different premises owned by

him shall be eligible to install separate renewable energy system in each of
such premises subject to the provisions of these Regulations.

(4) The specifications, capacity and output of the renewable energy

system shall be in conformity with the provisions relating to the connected
load or contract demand permissible at each voltage level as specified in the
Kerala Electricity Supply Code, 2014, as amended from time to time.

18
14. Connectivity.-
(1) The distribution licensee shall, without any delay or
discrimination, provide net metering arrangements to the prosumer, subject to
other provisions and technical limits specified in these Regulations.

(2) The cumulative capacity of distributed energy systems allowed to

be interconnected with the distribution network shall not exceed 75 % of the
distribution transformer capacity as the case be.

Provided that the distribution licensee shall publish the individual

transformer capacities and the Renewable Energy Systems connected to their
respective transformers, section wise, not later than 5th of every month in the
distribution licensees respective section offices and also in the licensee’s
website. The Commission may review these provisions after completion of two
years from the date of notification of these Regulations.

15. Inter connection with the Grid, technical Standards and Safety.-
(1) The interconnection of the renewable energy system with the
distribution system of the licensee shall conform to the specifications and
standards as provided in the Central Electricity Authority (Technical Standards
for connectivity of the Distributed Generation Resources) Regulations, 2013
and to the relevant provisions of the Central Electricity Authority (Measures
relating to Safety and Electric Supply) Regulations, 2010, as amended from
time to time;

(2) The Net meter and Renewable energy meter installed shall
conform to the standards, specifications and accuracy class, as provided in
the Central Electricity Authority (Installation and Operation of Meters)
Regulations, 2006, as amended from time to time and be installed in such a
manner that they are accessible for reading.

(3) The licensee shall, while intimating the feasibility as per these
Regulations, inform the prosumer, the specifications and such other details of
the components, if any, to be installed along with the renewable energy
system as per the provisions of these Regulations.

(4) The prosumer shall comply with the specifications and standards
as provided by the licensee and shall install manually operated isolating
switch and grid-tied inverter/ associated equipment with sufficient safeguards
to prevent injection of electricity from the renewable energy system to the
distribution system of the licensee when the distribution system is de-
energized.

16. Metering arrangement.-

(1) The net meter shall be installed at the interconnection point of the
prosumer with the net work of the distribution licensee.
19
 (2) All meters installed shall comply with the CEA (Installation and
Operation of Meters) Regulations, 2006 and subsequent amendments thereof.

Provided that, consumers having ABT compliant meters with net

metering facility shall not be required to install additional Net meter.

(3) The distribution licensee shall make available correct Net meter
and Renewable energy meter to the eligible consumer who proposes to install
a renewable energy system in his premises.

Provided that, if the eligible consumer elects to purchase the said

meter(s), he may procure and present them to the distribution licensee for
testing and installation.

Provided further that, the licensee shall complete the testing and
installation of the renewable energy meter and the net meter purchased by the
eligible consumer, within a period of 14 calendar days from the date of
presentation of such meters for testing.

(4) The distribution licensee shall undertake the testing of meters

before installation to ensure accuracy of the meter. The meter(s) shall be
jointly inspected by both the eligible consumer and the distribution licensee,
and shall be sealed by the distribution licensee.

Provided that, the meters shall be tested, installed and sealed by the
distribution licensee in accordance with the provisions of Central Electricity
Authority (Installation and Operation of Meters) Regulations, 2006, as
amended from time to time, and also as per the procedure specified in the
Electricity Supply Code.

(5) The licensee may collect from the eligible consumer, the security
deposit and rent for the renewable energy meter and net meter, if provided by
the licensee, at the rates approved by the Commission from time to time.

(6) The distribution licensee, shall within three months of the date of
notification of these Regulations, modify its existing billing infrastructure to
facilitate the metering arrangements as envisaged under these Regulations.

17. Use of excess electricity generated from renewable sources in

another premise.-
(1) The prosumer shall have the right for wheeling the excess electricity
during a billing period to another premises owned by him within the area of
supply of the distribution licensee subject to the following conditions:-
(i) the right of wheeling and consumption of excess electricity shall be
available to the prosumer irrespective of the category of tariff in the
20
 other premises;
(ii) such right for wheeling the excess electricity shall be available for
the use in his second premises only after the prosumer meets his
full demand in the premises, where the electricity is generated using
renewable energy system;
(iii) The quantum of excess electricity wheeled shall be calculated
based on sub-Regulation (5) below and accounted in subsequent
bills of the other premise.

(2) The prosumer shall apply to the licensee for availing the wheeling
facility as per the sub-Regulation (1) above, with necessary particulars of such
other premises where, such excess electricity generated by the renewable
energy system installed in one of his premises, is proposed to be used.

(3) The licensee shall after due verification of the application

submitted under sub-Regulation (2) above and after satisfying about its
genuineness, grant the permission to use the excess electricity in such other
premises owned by the prosumer, within 7 calendar days of receipt of the
application.

(4) The modifications, if any, required in the metering system in such

other premises of the prosumer where the excess electricity is proposed to be
used, shall be made by the distribution licensee at the cost of the prosumer.
Alternatively the prosumer can make such modifications to the metering
system at his own cost, subject to the compliance of the distribution licensee
standards and technical specifications.

(5) The prosumer has to bear the applicable wheeling charges, and
distribution losses, as approved by the Commission from time to time for the
quantum of excess renewable energy wheeled from one of his premise to
another premise.

(6) The electricity generated by a prosumer using the renewable

energy system installed in his premises and wheeled to another premise
under this Regulations, shall be exempted from payment of cross subsidy
surcharges.

18. Procedure for grant of feasibility certificate to the renewable

energy system to be connected with the distribution system.

(1) Any eligible consumer who proposes to install a renewable

energy system in his premises shall apply in the form in Annexure-A to the
21
local office of the distribution licensee, to issue feasibility certificate to connect
the renewable energy system to the distribution system of the licensee along
with the application fee as specified in the Schedule to these Regulations:

(2) The licensee shall acknowledge the receipt of the application

form and register the applications immediately and shall process the
application in the chronological order of its receipt.

(3) The distribution licensee shall maintain a separate Application

Register for reference and records.

(4) On receipt of the application form for the feasibility certificate to

connect the renewable energy system to the grid, the distribution licensee
shall undertake technical feasibility within 15 days of the date of receipt of the
application and intimate the applicant the feasibility or otherwise as the case
may be.

(5) While intimating the feasibility for connecting the renewable

energy system, the distribution licensee shall furnish to the applicant;
(i) the details of documents to be submitted by the applicant along
with the scheme for installation of renewable energy system to the
distribution system;
(ii) the technical specifications as well as other particulars of the grid-
tied inverter/equipment and manually operated isolating switch to
be installed by the applicant;
(iii) the technical specifications and other particulars of the
Renewableenergy meter and Net meter.

19. Procedure for grant of connectivity to the renewable energy

system.-

(1) The eligible consumer shall, within 30 days from the date of
receipt of the intimation regarding feasibility and capacity of the RE system
proposed to be connected to the distribution system, as specified in sub
Regulations 18(4) and 18(5) above, submit a formal application in the format
specified in Annexure-B for the registration of his scheme for installing the
renewable energy system, along with the documents and technical
specifications as stipulated in Regulation 18(5).

(2) The distribution licensee shall, within seven working days from
the date of receipt of the application, scrutinize the documents and intimate
the following:
(i) The particulars of defects, if any, in the application along with the
instructions to cure such defects.

22
 (ii) The fee for registration of the scheme for installation of the
renewable energy system as specified in this Regulation.

(3) The distribution licensee shall, on receipt of the fee amount as

per the sub Regulation (2) above and on curing the defects, if any, noticed in
the application and the documents submitted under sub Regulation (1) above;
(i) Register the scheme and assign a Registration number with in
seven days of receipt of completed application in all respect.
(ii) The registration given under clause (i) above shall be valid for a
period of one year from the date of registration, unless the validity
period is extended by the distribution licensee under clause (iii)
below.
(iii) The distribution licensee may on application from an eligible
consumer, for good and sufficient reasons beyond the control of
the applicant, extend the validity of registration for a period not
exceeding another six months, if no other application for
connectivity is pending for want of the distribution transformer
capacity or the feeder capacity, as the case may be.
(iv) The distribution licensee may allot to other applicants, based on
the date of their application seniority and in accordance with the
provisions of these Regulations, such capacity for connectivity of
renewable energy system, if the eligible consumer whose
scheme has been registered does not avail the connectivity
within the period of validity of registration.
Provided that, the registration fee remitted in such cases shall
not be refundable.
(v) The distribution licensee may, on receipt of a written request from
the eligible consumer before the expiry of the validity of his
registration, allow him to withdraw his application, on satisfaction
of the condition that he is not able to install the renewable energy
system within the period of validity of the registration, due to
reasons beyond his control. In such a case the distribution
licensee shall refund eighty percent of the registration fee to the
applicant.
(vi) The registration fee shall be forfeited, if the applicant fails, to
install the renewable energy system within the period of validity of
his registration or to withdraw the application as per clause (v)
above.
(vii) The distribution licensee shall refund to the eligible consumer
eighty percent of the registration fee collected by it, if the eligible
consumer has installed the renewable energy system within the
23
 period of validity of the registration.

(4) The applicant shall, within the period of validity of registration,

procure the renewable energy system conforming to the technical
specifications and get it installed by a licensed Electrical Contractor.

(5) The eligible consumer shall obtain from the Electrical Inspector
having jurisdiction over the area, necessary sanction for commissioning the
renewable energy system, in accordance with the provisions of the Central
Electricity Authority (Technical Standards for Connectivity of Distributed
Generation Resources) Regulations, 2013 and produce the sanction to the
distribution licensee.

(6) The Electrical Inspector, shall undertake the inspection and safety
checks, within 10 working days from the submission of the work completion
report, and issue safety certificate.

(7) The distribution licensee shall, within seven days from the date of
submission of approval of the Electrical Inspector, test the renewable energy
system in accordance with the provisions of the Central Electricity Authority
(Technical Standards for Connectivity of Distributed Generation Resources)
Regulations, 2013.

(8) On successful completion of the test as specified in sub

Regulation (7) above, the distribution licensee and the eligible consumer shall
execute a connection agreement in the format containing the general and
specific conditions, as approved by the Commission, in accordance with the
provisions of the Central Electricity Authority (Technical Standards for
Connectivity of the Distributed Generation Resources) Regulations, 2013.

(9) The licensee shall, within seven days from the date of execution
of the agreement as specified in Sub Regulation (8) above, connect the
renewable energy system to the distribution system.

20. Banking facility for prosumers.-

(1) In case the energy injected by the prosumer from his renewable
energy system exceeds the energy consumed by him from the distribution
licensee during the billing period, such excess energy is allowed to be banked
with the distribution licensee and to be carried forward to the subsequent
billing periods of the settlement period.

(2) The distribution licensee is permitted to account the energy generated

from above such renewable energy system installed by the prosumer towards
24
its RPO.

21. Net metering, Energy Accounting, Banking and Settlement.-

(1) The distribution licensee shall take the meter reading of the
‘renewable energy system’ regularly for each ‘billing period’ and record the
readings of both the renewable energy meter and the net meter.

(2) For each billing period, the distribution licensee shall make the
following information available in its bill to the prosumer:
(i) Time period wise (normal hours, peak hours and off-peak hours)
Renewable energy generation recorded in the energy meter for
the prosumer with connected load above 20 kW, and total
generation from the RE system for the prosumers with connected
load ‘of and below 20kW’.
(ii) Time period wise electricity consumption of the prosumer with
connected load above 20 kW, and total consumption in the case
of the prosumer with connected less than 20 kW.
(iii) Net billed electricity, if any, for which payment is to be made by
the prosumer;
(iv) Excess energy brought forward from the last billing period;
(v) Excess energy carried forward to the next billing period.

(3) The energy accounting, banking and settlement of energy

generated, drawn and injected by a prosumer with connected load of and
below 20 kW shall be done as below;

(i) The distribution licensee, during a billing period shall extend the
facility to the prosumer having connected load of and below 20
kW under net metering arrangements, to draw back from the
grid, the electricity injected during a time block at a different time
period without any restriction.

(ii) In case the electricity supplied by the distribution licensee during

any billing period exceeds the electricity injected in to the grid by
the prosumer from his renewable energy system, the distribution
licensee shall raise a bill for the net electricity consumption at the
prevailing tariff, after adjusting any excess electricity banked
from the previous billing period;

(iii) In case the electricity injected by the prosumer’s renewable

energy system exceeds the electricity consumed from the
25
 distribution licensee during the billing period, such excess energy
shall be allowed to be banked and be carried forward to the
next billing period as specified under Regulation 20(1) above.

(4) Accounting and settlement of energy generated, drawn and

injected by the prosumer having connected load above 20 kW;
(i) The electricity injected from the renewable energy system in a
time period during a billing period shall be first set off against the
electricity consumed during the same time period.

(ii) Any excess generation over consumption in that time period

during the billing period shall thereafter be set-off against other
time period, subject to the following.
(a) 80% of the net energy injected in time periods other than
peak hours, be allowed to adjust against peak hour
consumption.
(b) The net energy injected during peak hours shall be allowed
to be adjusted 100% during the peak hour and the balance
shall be allowed to be adjusted 120% during other time
blocks.
(c) At all other time periods, except energy injection during
peak hours, 100% of the net energy injected in any time
periods will be allowed to adjust against the consumption,
during the time period other than peak hours.

(iii) Any excess generation during a billing period, after adjusting

against the consumption during the same billing period as per
clause (i)&(ii) above shall be banked and carried forward, to the
next billing period as specified under Regulation-20(1) above.

(iv) Such surplus energy carried forward to the next billing period
after accounting for the banking charges specified therein shall
be, accounted along with the renewable energy generation during
the subsequent billing period, and the same shall be settled
against the energy drawn in the subsequent billing period as per
the procedures specified under clause (i) & (ii) above.

(v) If the electricity injected into the system by the prosumer as

measured in the net meter, is less than the total electricity drawn
from the licensee, during any billing period, the licensee shall
recover from such prosumer, the electricity charges at the rates
26
 applicable as per the tariff order issued by the Commission, for
the net quantum of electricity drawn by him from the distribution
system, after taking into account any balance electricity banked in
the previous billing period.

(5) The licensee shall pay to the prosumer for the net electricity
balance in his account at the end of the settlement period, at the Average
Power Purchase Cost (APPC) approved by the Commission;

Provided that, in case of delay in payment of the net amount due to the
prosumer beyond 30 days from the settlement date, the licensee shall pay
interest to the prosumer at the FBIL rate +200 base points prevailing on 1st
April of the settlement year.

(6) The prosumer is exempted from the payment of transmission

charges, wheeling charges, cross subsidy surcharges for the electricity
generated and consumed at the same premises from the renewable energy
system under net metering facility.

(7) The quantum of electricity generated from the renewable energy

system of the prosumer, shall qualify for accounting towards the Renewable
Purchase Obligation (RPO) of the distribution licensee, as specified elsewhere
in these Regulation.

27
 Chapter – IV
Prosumers having capacity more than 1 MW, Captive Consumers
and Independent Power Producers

22. Scope and applications.-

(1) The provisions under the Regulations 22 to 29 are applicable to the
following grid interactive renewable energy systems;
(i) A prosumer having Renewable Energy Systems with installed
capacity more than 1 MW at his premise for his own use,
including a prosumer not covered under net metering specified in
Chapter-III of these Regulations.
(ii) Renewable Energy Systems installed by a Captive consumer, at
a location different from the location of its usage, but within the
State for his own use, and,
(iii) Renewable energy system installed by a Renewable Energy
Generator as an Independent power producer, for third party sale
using the transmission and/or distribution system of the utility.

(2) Prosumers and captive consumers including those

prosumers mentioned in third proviso to sub Regulation (2) of
Regulation 13 under these Regulations are permitted to install
Renewable Energy Systems, irrespective of their connected load or
contract demand as the case may be, to offset their energy
consumption on annual basis, subject to the terms and conditions
specified in this Chapter.

23. Connectivity.-
(1) The distribution licensee or the State transmission utility, as the case
may be, shall on demand, provide connectivity for the renewable energy
generation system, as per the provisions, specified in KSERC (Connectivity
and Intra State Open Access) Regulations, 2013, as amended from time to
time.

Provided that, if the distribution licensee delays granting connectivity

with reference to the time lines specified in KSERC (Connectivity and Intra
State Open Access) Regulations, 2013, as amended from time to time, the
Commission may take action against the licensee as per the provisions of the
Electricity Act, 2003.

(2) The interconnection of the renewable energy system with the

transmission and/or distribution system shall conform to the provisions under
the Central Electricity Authority (Technical Standards for Connectivity of
Distributed Generation Resources) Regulations, 2013 and Central Electricity
Authority (Measures Relating to Safety and Electric Supply) Regulations,
2010, and other applicable regulations dealing with connectivity and safety, as
amended from time to time.
28
24. Metering system.-
(1) The Renewable Energy Generator/ Captive Generating plant, the
captive consumer and the open access customer as the case may be, shall
install Special Energy Meters (SEM) as specified in the Central Electricity
Authority (Installation and Operation of Meters) Regulations, 2006 as
amended from time to time, for accounting the quantum of energy generated,
the quantum of energy injected into the transmission and/or distribution
system and the quantum of energy consumed.

Provided that, if the RE generator/ consumer, elects to purchase his

own special energy meter, he shall purchase the same from the firms
empaneled by the STU/ distribution licensee, as specified in the Central
Electricity Authority (Installation and Operation of Meters) Regulations, 2006
as amended from time to time:

(2) Special Energy Meters installed shall be capable of measuring the 15

minutes time-block-wise ‘active energy and reactive energy’, in accordance
with the Central Electricity Authority (Installation and Operation of Meters)
Regulations, 2006 as amended from time to time and the provisions of State
Grid Code. The metering system shall have remote terminal unit (RTU) to
facilitate real time monitoring by the SLDC as and when specified by the
Commission.

(3) Special Energy Meters shall be open for inspection by any person
authorized by the STU or the State Load Despatch Centre or the distribution
licensee, as the case may be.

25. Open Access.-

(1) Any person generating electricity from renewable sources of
energy, shall have the right for open access to the distribution system/
transmission system of the licensee/ STU in the State, for transmitting and/or
wheeling the renewable energy, subject to the terms and conditions specified
as follows,-
(i) Open Access shall be granted as per the provisions under
KSERC (Connectivity and Intra State Open Access) Regulations,
2013.
(ii) Open Access charges such as application fee, SLDC/ NLDC
charges, Transmission/ distribution losses, transmission/
wheeling charges, reactive energy charges, deviations and grid
support charges, surcharges etc., as per Electricity Act, 2003/
Kerala State Electricity Regulatory Commission (Connectivity and
Intra State Open Access) Regulations, 2013 and the Tariff orders
issued by the Commission from time to time, as the case may be,
applicable to the persons availing open access.

29
 (2) The Renewable Energy Generator shall follow the Indian
Electricity Grid Code 2010, Kerala State Grid Code and the relevant CERC/
KSERC Regulations and procedures for forecasting, scheduling and dispatch
of renewable energy, as amended from time to time.

26. General Conditions and charges applicable for the use of the
transmission and distribution system by a prosumer, having a
Renewable Energy System with capacity more than 1 MW at the
same premise for his own use.-

(1) 5% of the energy injected into the grid of the transmission and/or the
distribution licensee shall be accounted towards ‘grid support charges’ and the
balance 95% shall be treated as net energy.

(2) If the net energy during a time period (normal hours, peak hours and
off-peak hours) in a billing period is fully consumed by the captive consumer
during the same time period (normal hours, peak hours and off-peak hours) in
that billing period itself, for such quantum of renewable energy, the prosumer
is exempted from the payment of transmission charges, wheeling charges
and, losses in transmission system and distribution system approved by the
Commission.

(3) The prosumer is permitted to account the renewable energy injected in

a time period (normal hours, peak hours and off-peak hours) during the billing
period, against the consumption in a different time period during the same
billing period, subject to the following conditions,-
(i) 80% of the net energy injected in time periods other than
peak hours, be allowed to be adjusted against peak hour
consumption.
(ii) The net energy injected during peak hours shall be allowed
to be adjusted 100% during the peak hour and the balance
shall be allowed to be adjusted at 120% during other time
blocks.
(iii) At all other time periods, except energy injection during
peak hours, 100% of the net energy injected in any time
periods will be allowed to be adjusted against the
consumption, during the time period other than peak hours.

(4) The excess energy, if any, available at the end of the billing period is
allowed to be banked and carried forward to the subsequent billing period of
the settlement period, subject to the following,-

(i) 95% of the energy so banked only will be allowed to be adjusted

in the subsequent billing period of the settlement period and 5%
30
 of the banked energy shall be accounted towards banking
charges of the distribution licensee.

(ii) Time period wise adjustment of the energy generated in a time

period and accounted against the consumption in different time
period during the billing period shall be followed as detailed under
clause (3) above.

Note: The 5% banking charges on the energy banked at the end of billing
period shall not be cumulative, i.e., once 5% energy is deducted as banking
charges during a billing period, no further banking charges will be applicable
for this excess energy, if any arising out of such banked quantum of energy in
the subsequent billing periods.

Clarification: For example, in the month of April, 50000 units is the surplus
energy with the prosumer after making the adjustments as detailed under
Sub Regulation (3) above. The energy banked in the month of April after
accounting for banking charges shall be (50000x0.95) 47500 units.
Thereafter in the month of May, 20000 units is the surplus energy with the
prosumer after making the adjustments as detailed under Sub Regulation (3)
above. Here the energy banked in the month of May shall be (20000x 0.95)
19000 units, and the total energy so banked at the prosumer account at the
end of the month May shall be 47500+19000 = 66500 unit.

(5) The licensee shall pay, within one month, for the net surplus energy
available at the credit of the prosumer at the end of the settlement period as
per sub Regulation (4) above, at the Average Pooled Power Purchase Cost
(APPC) of the licensee approved by the Commission, from time to time.

(6) The prosumer, who installed the Renewable Energy System at the
same premise is exempted from the payment of transmission charges,
wheeling charges, transmission losses and distribution loss for the quantum
of energy generated from the RE plant and adjusted against his consumption
during the settlement period, in the same premises.

(7) The quantum of energy generated from the Renewable Energy System
by a prosumer at his premise after meeting his renewable purchase obligation,
if any, shall be permitted to be accounted towards the RPO of the distribution
licensee, in accordance with the REC Regulations and its amendments from
time to time.

27. General Conditions and charges applicable, for the use of the
transmission and distribution system by a Captive Consumer.-
(1) Any captive consumer, using the transmission and/or distribution
system of the licensee for wheeling the energy generated from the Renewable
Energy System to a different location within the State, shall pay the following
charges approved by the Commission from time to time,-
31
 a. Transmission charges
b. Wheeling charges
c. Transmission losses and Distribution losses, and
d. Any other charges approved by the Commission.

(2) Captive consumers who maintain the contract demand with

the distribution licensee are required to pay transmission charges only on per
unit basis at the rates as approved by the Commission from time to time.

(3) Captive consumers under these Regulations are permitted to

install Renewable Energy System at their premise irrespective of their
connected load or contract demand, to offset their energy consumption on
annual basis, subject to the terms and conditions specified in these
Regulations.

Provided that, as a promotional measure, such consumers are

permitted to inject energy into the grid during any time period and to draw
back the energy during any other time period subject to the condition specified
in sub-Regulation (5) below and without enhancing the connected
load/contract demand up to the RE capacity.

Provided further that such consumers shall be required to pay 5% of the

energy injected into the grid from the RE plant as ‘grid support charges’.

(4) If the net energy, after deducting the approved transmission and/or
distribution loss, injected from the renewable energy system during a time
period (normal hours, peak hours and off-peak hours) in a billing period is fully
consumed by the captive consumer during the same time period (normal
hours, peak hours and off-peak hours) in that billing period itself, for such
quantum of electricity, the captive consumer is exempted from the banking
charges.

(5) The captive consumer is permitted to consume the electricity injected

from the Renewable Energy System during a time period (normal hours, peak
hours and off-peak hours), in a different time period (normal hours, peak
hours and off-peak hours) during the same billing period, subject to the
following conditions,-
(i) 80% of the net energy injected in time periods other than
peak hours, be allowed to adjust against peak hour
consumption.

(ii) The net energy injected during peak hours shall be allowed
to be adjusted 100% during the peak hour and the balance
shall be allowed to be adjusted 120% during other time
blocks.

32
 (iii) At all other time periods, except energy injection during peak
hours, 100% of the net energy injected in any time periods
will be allowed to adjust against the consumption, during
the time period other than peak hours.

(6) The excess energy, if any, available at the end of the billing
period is allowed to be banked and carried forward to the subsequent billing
period of the settlement period, subject to the following,-

(iii) 95% of the energy so banked only be allowed to be adjusted in

the subsequent billing period of the settlement period and 5% of
the banked energy shall be accounted towards banking charges
of the distribution licensee.

(iv) Time period wise adjustment of the energy generated in a time

period and accounted against the consumption in different time
period during the billing period shall be followed as detailed under
clause (5) above.

Note: The 5% banking charges on the energy banked at the end of billing
period shall not be cumulative, i.e., once 5% energy is deducted as banking
charges during a billing period, no further banking charges will be applicable
for this excess energy, if any arising out of such banked quantum of energy in
the subsequent billing periods.

Clarification: For example, in the month of April, 50000 units is the surplus
energy with the prosumer after making the adjustments as detailed under
Sub Regulation (3) above. The energy banked in the month of April after
accounting for banking charges shall be (50000x0.95) 47500 units.
Thereafter in the month of May, 20000 units is the surplus energy with the
prosumer after making the adjustments as detailed under Sub Regulation (3)
above. Here the energy banked in the month of May shall be (20000x 0.95)
19000 units, and the total energy so banked at the prosumer account at the
end of the month May shall be 47500+19000 = 66500 unit.

(7) The licensee shall pay, within one month, for the net surplus
energy available at the credit of the prosumer at the end of the settlement
period as per sub Regulation (4) above, at the Average Pooled Power
Purchase Cost (APPC)of the licensee approved by the Commission, from time
to time.
(8) The quantum of energy from the Renewable Energy System
generated and consumed by the captive consumer during the settlement
period after accounting for its RPO, if any, shall be permitted to be accounted
towards the RPO of the distribution licensee.
(9) The above accounting shall be valid only till the time intra
state deviation settlement mechanism put in place.

33
28. General Conditions and charges applicable, for usage of the
transmission and distribution system by an independent
renewable power generator/ open access consumer.-

(1) A consumer purchasing power from an independent renewable power

generator or a Renewable Power Generator supplying power to a third party
by availing open access of the distribution system of a licensee shall pay to
the licensee the following charges approved by the Commission from time to
time,-
(i) Transmission charges;
(ii) Wheeling charges;
(iii) Cross subsidy surcharges;
(iv) Transmission losses and Distribution losses; and
(v) Any other charges approved by the Commission.

(2) All other terms and conditions specified in the KSERC (Connectivity and
Intra State Open Access) Regulations, 2013 is applicable for the IPPs and
open access consumers who intent to avail open access in the transmission
system and/or distribution system of the licensee.

(3) The distribution licensee is not obliged to extend the time period wise
adjustment, banking facilities or any such other facility under these
Regulations for open access consumers and Independent Renewable Energy
Generators.

29. Accounting and settlement of Renewable Energy consumed by

prosumer/ captive consumer under Regulation 26 and 27 above.-
(1) For each billing period, the distribution licensee shall, record the
reading at the ‘renewable energy meter’ and the ‘consumer meter’ regularly
for each of the time period.

(2) For each billing period, the distribution licensee shall make the
following information available on its bill to prosumer/ captive consumer under
these Regulations,-
(i) Time period wise details of the electricity consumption of the
prosumer/ captive consumer.
(ii) Time period wise details of the electricity injected from the
Renewable Energy System.
(iii) The net energy banked from the previous billing period (closing
balance of the net surplus renewable energy if any available at
the end of the previous billing period).
(iv) Detailed calculation statement of the time period wise
adjustments, if any.
(v) Net billed electricity, if any, for which a payment is to be made by
34
 the prosumer/ captive consumer;
(vi) Excess electricity, if any, to be carried forward to the next billing
period.

(3) In case the energy drawn by the prosumer/captive consumer is

more than the net energy injected from the RE plant after the adjustments for
charges specified in these Regulations, the distribution licensee shall raise a
bill for the energy drawn from the grid at the prevailing tariff, after taking into
account any excess electricity carried forward from the previous billing period;

(4) The licensee shall pay for the net electricity banked by the
prosumer/ captive consumer at the end of the settlement period, at the
Average Power Purchase Cost (APPC) approved by the Commission;

Provided that, in case of delay in payment of the net amount due to the
consumer beyond 30 days from the settlement date, the licensee shall pay
interest to the consumer at the FBIL + 200 base points for the period of
delay.
(5) No carry forward of banked electricity shall be done beyond the
settlement period.
(6) Captive consumers under these Regulations shall pay applicable
transmission charges and/or wheeling charges, transmission losses and
distribution losses and other levies, as approved by the Commission from time
to time.
(7) Open access consumers and independent Renewable Power
Generators shall be liable to pay transmission charges and/or wheeling
charges, transmission losses and distribution losses, cross subsidy
surcharges and other levies, as approved by the Commission from time to
time.
(8) The distribution licensee/ STU/SLDC shall raise separate bill for
transmission charges, wheeling charges, transmission and distribution losses
or any other charges payable by such consumers, as detailed under
Regulations 26 and 27 above.

30. Renewable Energy Certificate Scheme.-

Any person generating electricity from renewable sources of
energy is eligible for the benefits of ‘Renewable Energy Certificate
mechanism (REC)’ as provided under REC Regulations.

35
 Chapter V
Determination of Tariff for the Electricity Generated from
Renewable Energy Sources

31. Scope and extent of application.-

The provisions under these Regulations shall be applicable for
determining the project specific tariff/ generic tariff as determined by the
Commission for the electricity generated from Renewable Sources of Energy
plants commissioned during the control period specified in these
Regulations, under Section 62 read with Section 86 of the Electricity Act,
2003.

32. Norms for determination of tariff.-

(1) The principles, norms and parameters specified in these
Regulations are applicable for determination of tariff for the electricity
generated from the Renewable Source of Energy plants that have declared
commercial operation during the control period specified in these Regulations.

Provided that, while determining the principles, norms and parameters

for determination of tariff, the Commission have considered appropriate
operational and financial parameters of each category of renewable source of
energy and to the extent possible, provides an allowance, based on
technology, fuel, market risk, social and environmental benefits and other
relevant factors.

Provided further that, the Commission, while formulating and notifying

the principles, norms and parameters for determination of tariff for the
renewable energy from various categories of renewable source of energy, is
guided by the National Electricity Policy and Tariff Policy published under
Section 3 of the Act and the principles, norms and parameters specified by
the Central Commission for this purpose.

Provided also that, until separate principles, norms and parameters are
specified by the Commission for the control period, the principles, norms and
parameters specified by the Central Commission for the purpose of
determination of tariff for the electricity generated from various categories of
renewable sources of energy, as specified in the Central Electricity Regulatory
Commission (Terms and Conditions for Tariff Determination from Renewable
Energy Sources) Regulations, 2017, as amended from time to time, shall be
adopted by the Commission for the purpose of determination of tariff under
these Regulations.

(2) The norms and parameters specified in this Regulation shall be

the ceiling norms and shall not prevent the generator and the distribution
licensee from mutually agreeing for more economic norms than that specified
in these Regulations.
36
33. Control Period or Review Period.-
(1) The Control Period or Review Period under these Regulations
shall be for five (5) years, starting from the financial year 2019-20.

Provided that the tariff determined as per these Regulations for the
Renewable Energy Projects commissioned during the Control Period, shall
continue to be applicable for the entire duration of the Tariff Period as
specified in Regulation 34 below.

(2) In case the Regulations for the next Control Period are not
notified until the commencement of next Control Period, the Commission may
provisionally adopt the principles, norms and parameters notified by the
Central Commission for the period concerned.

Provided that if the principles, norms and parameters for the next
control period are not notified until the commencement of the next control
period by the Commission or by the Central Commission, the norms as
applicable for the just concluded control period shall be provisionally adopted
for determination of tariff.

Provided further that, as soon as the principles, norms and parameters

are notified for the next control period, the Commission shall be firmed up the
tariff for such renewable projects which have declared commercial operation
in the next control period. The firmed up tariff shall be applicable from the date
of commercial operation of such projects, for which provisional tariff is
assigned as per the above proviso.

34. Tariff Period.-

(1) The Tariff Period for Renewable Energy power projects will be
same as their Useful Life as defined in Regulation 2(1).

(2) Tariff period for a renewable energy generating station under

these Regulations shall be applicable from the date of declaration of
commercial operation (CoD) of the renewable energy generating stations.
However considering the non firm nature of renewable energy, power injected
into the grid prior to the CoD of a project shall also continue to be paid the
same tariff as determined post CoD.

(3) Tariff determined for a Renewable Energy Project, which

declared CoD during the current control period as mentioned in Regulation 33,
shall be applicable for the entire Tariff period of the RE project.

37
35. Generic Tariff for the Electricity Generated from Renewable
Sources of Energy.-

(1) The Commission may, if considered necessary determine, , the

generic tariff for each financial year of the control period, for the electricity
generated from the following categories of renewable sources of energy in
accordance with the principles, norms and parameters specified or adopted by
the Commission in these Regulations and considering the normative values of
capital cost, rate of interest and other parameters notified under these
Regulations, by an order published in the official Gazette.

(i) Solar Photo Voltaic (PV) of capacity of and below 5 MW at a

location,
(ii) Wind Energy of capacity of and below 25 MW at a location,
(iii) Small Hydro Electric plants having capacity of and below 5 MW.

Provided that, the generic tariff so determined shall be the upper ceiling
limit and shall not prevent the generator and distribution licensee from
agreeing to a lower tariff than the generic tariff determined by the
Commission.

Provided further that, the generic tariff so determined by the

Commission as mentioned above shall not prevent the right of the generator
to get a project specific tariff determined, if they so desire, by the Commission
as per the provisions of these Regulations. However, the distribution licensee/
purchaser of electricity from RE sources under these Regulations shall pay
only the lower of the ‘generic tariff of the year of CoD or the project specific
tariff’ as determined by the Commission.

Provided also that, the generic tariff determined by the Commission shall
also not prevent the right of the distribution licensee to procure power from the
renewable energy sources through competitive bidding route as per Section
63 of the Electricity Act, 2003.

(2) The generic tariff determined by the Commission for a financial

year under these Regulation, shall be applicable to the renewable energy
projects which declares commercial operation (COD) during that financial
year.

Provided that the generic tariff determined by the Commission for a

financial year shall be applicable provisionally to the renewable energy
projects which are commissioned after the close of that financial year, till such
time, the tariff is revised by the Commission:

Provided further that, as soon as the generic tariff is revised by the

Commission for the financial year in which the renewable energy project is
38
commissioned, the revised generic tariff shall be assigned to such renewable
energy projects, for which provisional tariff is assigned as per the above
proviso from the date of declaration of its Commercial Operation.

(3) For claiming the generic tariff applicable to the wind energy
projects in a wind zone, the project developer shall submit necessary and
sufficient details for classification of the project into a particular Capacity
Utilization Factor (CUF) based on Annual Mean Wind Power Density (W/m2)
validated by the National Institute of Wind Energy.

(4) Notwithstanding anything to the contrary contained in these

Regulations, the normative parameters and the generic tariff applicable to
Small Hydro projects having capacity of and below 5 MW, Wind Energy
having capacity of and below 25 MW and Solar PV plants having capacity of
and below 5 MW, for the financial year 2019-20 is specified in Annexure I to III
attached.

36. Project Specific Tariff for the Electricity Generated from

Renewable Sources of Energy.-

(1) The Commission may, based on a petition for determination of

tariff as per the provisions of Electricity Act 2003, determine by an order the
project specific tariff, on a case to case basis, for the Renewable Energy
projects. This shall be done in accordance with the principles, norms and
parameters specified or adopted by the Commission as per these
Regulations.

(2) Provided that the financial norms as specified under these

Regulations, shall be ceiling norms while determining the project specific tariff
for such Renewable projects.

(3) A petition for determination of project specific tariff shall be

accompanied by such fee as may be determined by Regulations and be
accompanied by:

a) Detailed Project Report outlining technical and operational

details, site specific aspects, premise for capital cost, financing
plan, project economic viability etc.;
b) Estimates of cost of all major components for the project with
evidence to its reliability.
c) A statement indicating the project completion cost, evidence for
all major expenditures incurred, sources of financing with its
terms/ conditions etc for the period, for which tariff is to be
determined;
d) A statement containing full details of any subsidy and incentive
available, claimed and received, due or assumed to be due
39
 from the Central Government and/or the State Government;
e) Any other information as decided by the Commission, for
determining the project specific tariff for the project.

(4) For the determination of project specific tariff, the generating

company shall submit the break-up of all the capital cost items accompanied
by relevant paid vouchers/ tax receipts and other verifiable documents with its
petition in the manner specified above.
Provided that, the project specific tariff so determined shall be
limited to the generic tariff determined by the Commission for the particular
year of CoD, if it exceeds the generic tariff for that year and shall be based on
the norms and parameters specified in these Regulations.

37. Tariff Structure & Design.-

(1) The tariff for renewable energy technologies shall be a single part
tariff consisting of the following cost components:
(a) Return on equity; wherein maximum equity allowable for RoE
shall be limited to 30% of the capital cost;
(b) Interest on loan capital;
(c) Depreciation;
(d) Interest on working capital;
(e) Operation and maintenance expenses.

(2) The generic tariff or the project specific tariff, as the case may
be, shall be determined from the year of commercial operation of the project,
on levelized basis.

Provided that, the levelisation shall be carried out over the ‘useful life’ of
the Renewable Energy project, specified under these Regulations.

Provided further that, for the purpose of levellised tariff computation, the
discounting factor equivalent to Pre Tax weighted average cost of capital shall
be considered.

38. Principles for the dispatch for Electricity Generated from

Renewable Energy Sources.-

(1) All the renewable energy power plants, unless and otherwise
exempted, shall be treated as ‘MUST RUN’ power plants and shall not be
subjected to ‘Merit order Dispatch’ principles.

(2) Scheduling of Renewable Energy plants shall be governed by

KSERC (Forecasting, Scheduling, Deviation Settlement and Related Matters of Solar and
Wind Generation Sources) Regulations, 2019 and its amendments from time to time.

40
 Financial Principles

39. Capital Cost.-

The norms for the capital cost, specified in these Regulations, shall be
inclusive of the costs for all capital works including plant and machinery, civil
works, erection and commissioning charges, financing and interest costs
during construction, and evacuation infrastructural costs up to the licensees
inter-connection point.

40. Debt Equity Ratio.-

(1) For all renewable energy projects, the debt-equity ratio shall be
70:30 of the capital cost as approved by the Commission as on the date of
commercial operation shall be considered for tariff determination.

Provided that, while determining the project specific tariff under these
Regulations, if the equity actually deployed is more than 30% of the capital
cost, equity in excess of 30% shall be treated as normative loan:

Provided further that, if the equity actually deployed is less than 30% of
the capital cost, the actual equity deployed shall be considered for
determination of project specific tariff:

(2) The equity invested in foreign currency shall be designated in

Indian Rupees on the date of each investment. The overnight MIBOR notified
by FBIL for that particular date shall be exchange rate for such conversion to
Indian Rupees.

41. Loan and Finance Charges.-

(1) Loan Tenure : A normative loan tenure of 13 years shall be
considered for the purpose of determination of tariff under these Regulations.

(2) Interest Rate: (i) The loans arrived at under Regulation 40 shall
be considered as the gross normative loan for calculation of interest on loan.
The normative loan outstanding as on April 1st of every year shall be worked
out by deducting the cumulative depreciation up to March 31st of previous year
from the gross normative loan.

(ii) A normative interest rate of two hundred (200) basis points above
the average State Bank of India Marginal Cost of Funds based Lending Rate
prevalent during the last available six months shall be considered for allowing
interest during loan tenure.

(i) Notwithstanding any moratorium period availed by the generating

company, the repayment of loan shall be considered from the first year of date
of commercial operation of the project.

41
 42. Depreciation.-
(1) The Capital Cost of the asset approved by the Commission shall
be the basis for calculation of depreciation. The salvage value of the asset
shall be considered as 10% and depreciation shall be allowed up to a
maximum of 90% of the capital cost of the asset.

(2) Depreciation rate of 5.28% per annum for first 13 years and
remaining depreciation to be spread over the remaining useful life of the RE
assets considering the salvage value of the project as 10% of project cost
shall be considered.
(3) Depreciation shall be charged from the first year of commercial
operation.
Provided that if the commercial operation of the asset was only for part
of the first year of commercial operation, depreciation shall be charged on pro
rata basis.

43. Return on Equity.-

The normative Return on Equity shall be 14% on the normative equity
under Regulation 40 above. Income Tax/ Minimum Alternate Tax (MAT) on
ROE if any, paid by the generator, shall be reimbursed separately by the
distribution licensee on production of documentary evidence of remittance,
annually for the entire useful life of the project.

44. Interest on Working Capital.-

(1) The Working Capital requirement in respect of Wind energy
projects, Small Hydro Power, Solar PV and Solar thermal power projects,
projects based on Municipal Solid Waste shall be computed in accordance
with the following:

a) Normative Operation & Maintenance expenses for one month;

b) Receivables equivalent to two months energy charges for sale
of electricity calculated on the normative Capacity Utilization
Factor (CUF);
c) Maintenance spare @ 15% of operation and maintenance
expenses.

(2) Interest on Working Capital shall be at interest rate equivalent to

the normative interest rate of three hundred (300) basis points above the
average State Bank of India MCLR (One Year Tenor) prevalent during the
last available six months for the determination of tariff.

45. Calculation of CUF/PLF .-

The number of hours for calculation of CUF/PLF (wherever applicable)
for various RE technologies shall be 8760 in an year.
46. Operation and Maintenance Expenses.-
42
 (1) ‘Operation and Maintenance or O&M expenses’ shall comprise
of, repair and maintenance (R&M), establishmentcosts including employee
expenses and administrative and general expenses.

(2) Operation and maintenance expenses shall be determined for

the Tariff Period based on normative O&M expenses specified by the
Commission in these Regulations for the first Year of Control Period.

(3) Normative O&M expenses allowed during first year of the

Control Period (i.e. FY 2019-20) under these Regulations shall be escalated
at the rate of 5.72% per annum over the Tariff Period.

47. Rebate.-
(1) If the payment of bills for charges payable under these
Regulations is made by the distribution licensee to the renewable generator
within five calendar days of presentation of bills by the renewable generator,
a rebate of 2% shall be allowed to the licensee.

(2) Where payments are made by the distribution licensee to the RE

generator within a period of one month of presentation of bills by the
generating company, a rebate of 1% shall be allowed to the licensee.

48. Late payment surcharge.-

In case the payment of any bill for charges payable under these
Regulations is delayed beyond a period of 60 days from the date of billing, a
late payment surcharge at the rate of 1.25% per month shall be levied by the
renewable energy generator.

49. Sharing of Clean Development Mechanism (CDM) Benefits.-

(1) The proceeds of carbon credit from approved CDM project shall
be shared between generating company and concerned beneficiaries in the
following manner, namely:

a) 100% of the gross proceeds on account of CDM benefit to be

retained by the project developer in the first year after the date of
commercial operation of the generating station;

b) In the second year, 10% of the CDM benefit shall be shared with
the beneficiaries and the balance 90% of the benefit shall be
retained by the project developer.

c) In the third year onwards, the share of the beneficiaries shall be

progressively increased by 10% every year till it reaches 50%,
thereafter the proceeds shall be shared in equal proportion, by
the generating company and the beneficiaries.

43
 50. Subsidy or Incentive by the Central / State Government.-
(1) The Commission shall take into consideration any incentive or
subsidy offered by the Central or State Government, including accelerated
depreciation benefit if availed by the generating company, for the renewable
energy power plants while determining the tariff under these Regulations.

Provided that the following principles shall be considered for

ascertaining income tax benefit on account of accelerated depreciation, for
the purpose of tariff determination:

i) Assessment of benefit shall be based on the Commission

approved capital cost, accelerated depreciation if availed by
the developer at the rate as per relevant provisions under
Income Tax Act and corporate income tax rate.

ii) Capitalization of RE Projects for the full financial year;

iii) Per unit benefit shall be derived on levellized basis at a

discounting rate equivalent to weighted average cost of capital.

51. Taxes and Duties.-

Tariff determined under these Regulations shall be exclusive of
taxes and duties as may be levied by the appropriate Government:

Provided that the taxes and duties levied by the appropriate

Government shall be allowed as “pass through” on actual incurred basis,
subject to proof of payment.

Technology Specific Parameters

52. Wind Energy Project.-

(1) Capital Cost, - The Commission shall determine the capital cost
and tariff based on prevailing market trends for wind energy project of
capacity of and below 25 MW at a location. The Commission has fixed the
normative capital cost for wind projects of capacity of and below 25 MW
which declares commercial operation for the first year of the control period
at Rs 5.75 crore/MW,

(2) Capacity Utilization Factor (CUF). The normative CUF for the
control period specified in this Regulation shall be as follows:

Annual Mean Wind CUF %

44
 Power Density
(W/m2)
1 upto 220 22
2 221-275 24
3 276-330 28
4 331-440 33
5 > 440 35

Provided that, on completion of two years from the commercial

operation date, if the actual CUF varies by (+) or (-) 5 % for that project, then
the annual mean wind power density specified above shall be measured at
100 meter hubheight and the tariff shall be re-determined for the CUF
corresponding to the measured wind power density.

Provided further that, for the purpose of classification of wind energy

project into particular wind zone class, as per MNRE guidelines for wind
measurement, wind mast either put-up by NIWE or a private developer and
validated by NIWE, would normally be extended 10 km from the mast point in
all directions for uniform terrain and limited to appropriate distance in
complex terrain with regard to complexity of the site.

(3) Operation and Maintenance (O&M) Expenses,- The

Commission shall determine the O&M Expenses based on the prevailing
market information, and allowing an escalation rate of 5.72% over the
previous year.

Normative O & M rates for the financial year 2019-20 is taken as Rs

8.00 lakh per MW, based on the prevailing market information.

The generic tariff applicable for the Wind projects of capacity of and
below 25 MW for 2019-20 is given as Annexure-II.

45
 53. Small Hydro Project.-

(1) Capital Cost,- The normative capital cost ceiling for small hydro
projects during first year of the Control Period shall be as given below:

Project Size Capital Cost

(Rs. lakh/ MW)
Below 5 MW 779
5 MW to 25 MW 707

Provided further that, the Capital Cost for SHP as specified for first year of
control period will remain valid for the entire duration of the control period, unless
reviewed by the Commission.

(2) Capacity Utilization Factor,- The capacity utilization factor (CUF) for
the small hydro projects shall be 30%.

Provided that, on completion of three years from commercial operation date,

if the actual average CUF varies by (+) or (-) 10 % of the normative CUF, the
Commission may revise the tariff at the actual average CUF on a petition filed by
the RE generator of the distribution licensee with relevant supporting details.

(3) Auxiliary Consumption: Normative Auxiliary Consumption for the

small hydro projects shall be 1%.

(4) Operation and Maintenance Expenses,-

(i) Normative O&M expenses for the first year of the Control period
shall be as given below.

O&M Expenses for the first

Project Size year of the controlperiod (Rs.
Lakh/MW)
Below 5 MW 32.41
5 MW to 25 MW 23.47

(ii) Normative O&M expenses of the first year of the control period as
above shall be escalated at the rate of 5.72% per annum for the tariff period
for the purposes of tariff determination.

(iii) The generic tariff applicable for SHEP < 5 MW capacity for the
FY 2019-20 is given as Annexure-I.

46
 54. Solar PV Power Project.-

(1) Technology Aspects,- Norms for Solar Photovoltaic (PV) power

projects under these Regulations shall be applicable for grid connected PV systems
that directly convert solar energy into electricity and are based on technologies such
as Crystalline Silicon, Thin Film etc. as may be approved by MNRE.

(2) Capital Cost,- The Commission shall determine capital cost and tariff,
based on prevailing market trends for Solar PV projects of capacity of and below 5
MW at a location. The normative capital cost for Solar PV project commissioned
during the control period shall be limited to Rs 4.00 crore/ MW.

(3) Capacity Utilization Factor,-The Capacity Utilisation Factor for Solar

PV project shall be 19%.

(4) Operation and Maintenance Expenses,-The Commission shall

determine O&M expenses based on prevailing market trends for Solar PV project,
and allowing an escalation rate of 5.72% over the previous year.

Provided that, normative O & M rates for the first year of the control period
specified in this Regulation is taken as Rs 6.00 lakh/MW.

(5) Auxiliary Consumption,-The auxiliary consumption factor shall be

0.25% of gross generation.
(6) The generic tariff for solar projects having capacity of and below 5 MW
for the FY 2019-20 are provided in Annexure III

47
 55. Power Projects using Municipal Solid Waste/Refuse Derived
Fuel and based on Ranking Cycle Technology.-

(1) Technology Aspect,- The norms for tariff determination specified

hereunder are for power projects which use Municipal Solid Waste (MSW)
technologies for power generation.

(2) Capital Cost,- The Commission shall determine only project

specific capital cost and tariff based on prevailing market trends for MSW
projects.

(3) Plant Load Factor,- Threshold PLF for determining fixed charge
component of tariff for the power projects which use MSW shall be:

Particulars PLF
a) During the first year from the date of CoD 65%
c) From 2nd year onwards 75%

Provided that, the stabilization period shall not be more than 6 months
from the dateof commissioning of the project.

(4) Auxiliary Consumption,-The auxiliary power consumption for

MSW/RDF based power projects shall be 15%.

(5) Operation and Maintenance Expenses,-The Commission shall

determine only project specific O&M expenses based on prevailing market
trends for MSW/RDF projects.

48
 CHAPTER- VI
MISCELLANEOUS PROVISIONS

56. Norms specified shall be ceiling norms.-

The norms specified in these Regulations are the ceiling norms and
shall not preclude the generating company and distribution licensees from
agreeing to the improved norms other than the one specified in these
Regulations. In case the improved norms results in better economy and lower
tariffs are agreed to, such improved norms shall be applicable for
determination of tariff.

57. Utility driven schemes.-

These Regulations do not preclude the right of a Distribution licensee to

undertake RE projects as per the schemes/ policies of the State and Central
Government with the prior approval of the Commission.

58. Generation based incentives for off-grid solar schemes.-

Generation based incentives as per the order of the Commission dated

11.11.2019 is available to the off-grid captive solar plants upto 30.09.2021.

59. Deviation from Norms.-

(1) As stated above the tariff determined under these Regulations
shall be a ceiling tariff. The renewable generator and the distribution licensee
may mutually agree to charge a lower tariff than the tariff determined on the
basis of norms and parameters specified in these Regulation, with the prior
approval of the Commission.

60. Renewable Energy Advisory Committee.-

(1) In order to facilitate and encourage the implementation of
Renewable Energy Systems in the State under these Regulations, the
Commission shall, notify the Renewable Energy Advisory Committee with the
following members, for discharging the functions detailed under sub
Regulations (2) below;

(i) Secretary to the Commission, Chairman of the Committee;

Director (Technical) of the Commission;
(ii) Representative from the Power Department, in State
Government;
(iii) Representative from the Chief Electrical Inspector;
(iv) Representative from State Transmission Utility;
(v) Representative from SLDC;
(vi) Chief Engineer RE cell KSEB Ltd;
49
 (vii) Each zonal Distribution Chief Engineers of KSEB Ltd, as
representative;
(viii) One representative among the small licensees on rotational
basis;
(ix) Representative from ANERT as State Nodal Agency;
(x) One representative, each from representing domestic category,
commercial category and Industrial category among their
consumer associations, protesting consumer interests;
(xi) One representative from Renewable Energy Generators
(xii) One representative each from Small Scale Industries
Associations, manufacturing RE companies, HT&EHT Electricity
Industrial Consumers Associations and KREEPA..

(2) The Renewable Energy Committee constituted under sub

Regulation (1) above, shall discharge the following functions, -

a) Address the various difficulties and issues concerning

connectivity faced by the State Transmission Utility and/or
distribution licensee(s) in the State.
b) Address and to develop common procedures for registering
and processing the applications by the STU and /or
distribution licensees.
c) Advise the distribution licensee(s) to develop consumer
friendly procedures, billing systems etc.;
d) Develop technical standards for assessing the impact of the
Renewable Energy in the Kerala power system.
e) Develop standards for data exchange between Renewable
Energy System and the distribution licensee;
f) Promote cross-learning among the distribution licensees and
other stakeholders;
g) Assist in developing common programs for facilitating
Renewable Development by the incumbent distribution
licensee.

61. Renewable Energy Cell.-

(1) The incumbent distribution licensee shall, within one month from
the date of notification of these Regulations constitute an in-house RE Cell, to
promote Renewable Energy deployment in the State, to execute the functions
assigned to the Distribution Licensee under these Regulations.

(2) RE Cell shall be headed by an officer in the rank of Chief

Engineer or equivalent.

50
 (3) RE Cell shall be provided with necessary authority and resources
so as to execute the functions assigned to the Distribution Licensee under
these Regulations.

(4) The RE cell shall carry out the following functions on behalf of the
distribution licensee.
a) Design interconnection processes and procedures;
b) Ensure and Manage web based application system for
processing DRE applications;
c) Develop and monitor mechanism for online monitoring of RE
Systems by the distribution licensee control centre;
d) Obtain regulatory approvals;
e) Guide persons desirous of setting up RE Systems in the State;
f) Facilitate training of field officers on RE;
g) Appraise field officials about the changes in processes and
procedures;
h) Ensuring modifications billing procedures/ systems to account
for provisions in theseRegulations;
i) Undertake monitoring and reporting as envisaged under these
Regulations;
j) Coordinate with RE Advisory Committee and attend meetings
of the same;
k) Prepare standard documents, such as expression of interest,
RFP, energy purchase and energy sale agreement, tripartite
agreement etc., if the distribution licensee decides to procure
power under through competitive bidding;
l) Preparation of plan for procurement of energy from DRE
sources;
m) Undertake analysis of data collected from DRE systems.

62. Penalty or compensation for non compliance by the distribution

licensee.-
(1) In case of failure to meet timelines prescribed under these
Regulations, penalty of Rs. 1000 per day for each day of delay shall be
levied on the distribution licensee.

(2) The penalty accrued during the year under these Regulations
will be deducted from the Return on Equity of the distribution licensee for
that year.

63. Procedure for getting approval of the detailed procedure for

implementing the provisions of these Regulations.-

(1) KSEB Ltd, as the incumbent distribution licensee, shall within

one month from the date of notification of these Regulations in official Gazette,
51
shall prepare and submit to the Commission, in co-ordination with STU the
detailed procedure for implementing the provisions of these Regulations,
including the following;

(i) procedure for getting feasibility certificate for getting connectivity

for RE systems.
(ii) Filing applications for connectivity including format and fees to
be remitted.
(iii) Procedure for availing banking facility including the draft banking
agreement.
(iv) Billing procedure under net metering facility provided under
Chapter-III,
(v) Accounting and billing procedures for prosumer having RE plant
with capacity more than 1 MW and captive use specified under
Chapter-IV.

64. Power to give directions.-

The Commission may from time to time issue such directions and
orders as considered appropriate for implementation of these Regulations.

65. Power to relax.-

The Commission may by general or special order, for reasons to be
recorded in writing, and after giving an opportunity of hearing to the
parties likely to be affected, relax any of the provisions of these
Regulations on its own motion or on an application made before it by an
interested person.

66. Power to amend.-

The Commission may from time to time add, vary, alter, suspend,
modify, amend or repeal any provisions of these Regulations.

67. Power to remove difficulties.-

If any difficulty arises in giving effect to any of the provisions of these
Regulations, the Commission may, by an order, make such provisions, not
inconsistent to the provision of the Act and these Regulations, as may appear
to be necessary for removing the difficulty.

68. List of Annexure and Forms

Annexure Details

A Application for connectivity of Renewable Energy System

B Application for the registration of the scheme for Renewable

Energy System

52
 I Generic Tariff for SHEP having station capacity of and below 5
MW- for the FY 2019-20

Generic Tariff for Wind Energy Projects having capacity less than
II of and below 25 MW with CUF 24%- for the FY 2019-20 .

III Generic Tariff Solar PV Projects having capacity of and below 5

MW –for FY 2019-20.

69. Repeal and Savings.-

(1) Save as otherwise provided in theseRegulations, the following
Regulations are hereby repealed;
a. Kerala State Electricity Regulatory Commission (Renewable Energy)
Regulations, 2015.

b. Kerala State Electricity Regulatory Commission (Renewable Energy)

Amendment Regulations, 2017.

c. Kerala State Electricity Regulatory Commission (Grid Interactive

Distributed Solar Energy Systems) Regulations, 2014.

d. Kerala State Electricity Regulatory Commission Grid Interactive

Distributed Solar Energy Systems) Amendment Regulations, 2016.

(2) Notwithstanding such repeal, anything done or any action taken

under the said Regulations shall be deemed to have been done or taken
under the corresponding provisions of these Regulations.

By the order of the Commission

Secretary
Kerala State Electricity Regulatory Commission

53
 Explanatory Note
(This does not form part of the Notification, but in intended to achieve its general
purport).

Section 86(1)(e) of the Electricity Act, 2003 authorizes the State Electricity
Regulatory Commission to promote co-generation and generation of electricity from
Renewable Source of Energy by providing suitable measures for connectivity with
the grid and sale of electricity to any person and specify for the purchase of
electricity from such sources a percentage of the total consumption of electricity
within the area of the distribution licensee. Accordingly Kerala State Electricity
Regulatory Commission had, for achieving the above purposes issued various
regulations viz. Kerala State Electricity Regulatory Commission (Grid Interactive
Distribution Solar Energy System) Regulations, 2014 and Kerala State Electricity
Regulatory Commission (Renewable Energy) Regulations, 2015. In the recent past,
there are lot of developments, technological advancement in all type of renewable
energy technologies to reduction of tariff. Further the capital cost of solar PV plants
wind energy systems etc has reduced drastically. Due to reduction in capital cost of
installation of renewable energy especially wind and solar and improved capacity
utilization, tariff of these sources become much less, even less than electricity
generated from conventional coal based power stations. Considering the these
aspects, the Commission has decided to issue a comprehensive regulation on the
Renewable Energy in suppression of existing Regulations. Kerala State Electricity
Regulatory Commission had formulated the draft Kerala State Electricity Regulatory
Commission (Renewable Energy & Net Metering) Regulations, 2019 & had
previously published in the website of the Commission on 14.08.2019 for eliciting the
opinion and suggestions of general public. Further Commission had conducted the
public hearing on the draft Regulation at Thiruvananthapuram on 24.01.2019 and at
Ernakulam on 31.10.2019. After considering all suggestions and objections received
directly and in the public hearing, the Commission approved the final Kerala State
Electricity Regulatory Commission (Renewable Energy) Regulations, 2020 and
decided the same in the official gazette.

This Notification is intended to achieve the above purpose.

54
 Annexure-A
APPLICATION TO SEEK CONNECTIVITY OF RENEWABLE ENERGY
SYSTEM
[Regulation 18(1)]
1. Name and Full Address
of Consumer
2. Telephone No. Res: Mob:
3. E-mail address
4. Consumer No. &
Category
5. Sanctioned Connected Load/ Contract
Demand
6. Whether the Consumer is under ToD billing
system
7. Capacity of Renewable Energy System
proposed to be connected
8. Type of Renewable Energy Systemproposed
(Solar, Wind, Biomass etc.)
9. Location and address of proposed
Renewable Energy System
(roof top/ ground mounted/ any other).
10. Preferred mode of communication
(Post/ By Hand/Electronic)
Place:
Date: Signature of Consumer
Acknowledgement
Application Registration Number………
Name................................................. Consumer
No…………………………….
Date……………………………………. Time……………………………………….
Application fee paid Rs……………… by Cash/Cheque/DD/RTGS
RE Plant Capacity………… kW

Name of Officer Signature

Office Seal (Designation)

55
 Annexure-B
APPLICATION FOR REGISTRATION OF THE SCHEME FOR RENEWABLE
ENERGY SYSTEM [Regulation 19(1)]
1. Name
2. Telephone No.
3. E-mail
4. Consumer No.
5. Connected Load/ Contract Demand of Consumer
6. Application No. & Date
7. Renewable Energy Source

8. Capacity of Renewable Energy System to be

connected
9. Technical specifications and other particulars of
Renewable Panel, Grid Tied Inverter and Yes/No
Interlocking System etc. proposed to be installed-
whether attached
10. Technical specifications and other particulars of Yes/No
Renewable energy meter and Net meter to be
installed- whether attached.
11. Whether consumer opts to purchase meter himself
or from Distribution Licensee
12. Drawings for installing the Renewable Energy Yes/No
System- whether attached
13. Proposed date of completion of the installation
Place:
Date: Signature of consumer
Acknowledgement
Receivedthe applicationfor registrationofthe scheme forRenewableEnergySystem
Name&Address: ……………………………………………………………………
……………………………………………………… Date ………………………
Registration Number: …………………………… Consumer Number:
………………………………
RenewablePlantCapacity&Type: ……………................
Modeofpayment(Cheque/DD/NEFT/RTGS)………………Amount Rs………….
Detailsof Cheque/DD/RTGS/NEFT……………………………
Name ofOfficer Signature
Seal (Designation of Officer)

56
 Annexure-I
Small Hydro Electric Projects having installed capacity of and below 5 MW
(2019-20)
Sl Head Sub Head Detailed Head Unit Norm
No 1 Power Capacity (i) Installed Power MW 1
Generation Generation
(ii) CapacityCapacity
Utilisation % 30
factor
(iii) Auxiliary consumption % 1
(iv) Useful life Years 35

2 Project cost Capital cost Power plant cost Rs .Cr 7.79

3 Source of Fund /MW Tariff period Years 35
Debt- equity Debt % 70
Equity % 30
Debt
component Loan amount/MW Rs.Cr 5.45
Moratorium Years 0
Repayment period (include
moratorium) Years 13
Interest rate (MCLR+2)% 10.41
Equity
component Equity amount/ MW Rs.Cr 2.34
Normative RoE % 14.00
4 Financial
Assumptions Depreciation rate for first
Depreciation 13 years 5.28
depreciation rate for next
22 years 0.97
For Fixed
5 Working capital charges O&M charges Months 1
% of O&M
Maintenance spare expenses 15
Receivable for debtors Months 2
Interest on working capital (MCLR+3)% 11.41

Operation and O&M Rs.

6 Maintenance expenses O&M 2019-20 Lakh/MW 32.41
O&M expense escalation % 5.72
O&M expense for 2019- Rs.
20 Lakh/MW 32.41
Generic Tariff - for 35 years without
the benefit of accelerated
depreciation 5.91 Rs/unit
Accelerated depreciation
0.38 Rs/unit
Generic Tariff for 35 years with the
benefit of accelerated depreciation 5.53 Rs/unit
 Annexure-II
Wind Energy Generation Projects located in wind zone with CUF 24% (capacity < 25 MW
at a location)(2019-20)
Sl
No Head Sub Head Detailed Head Unit Norm
Power (i) Installed Power
1 Generation Capacity Generation Capacity MW 1
(ii) Capacity Utilisation % 24
factor
(iii) Auxiliary consumption % 0
(iv) Useful life Years 25
Capital cost
2 Project cost /MW Power plant cost Rs .Cr 5.75
3 Source of Fund Tariff period Years 25
Debt- equity Debt % 70
Equity % 30
Debt
component Loan amount/MW Rs.Cr 3.85
Moratorium Years 0
Repayment period (include
moratorium) Years 13
Interest rate (MCLR+2)% 10.41
Equity
component Equity amount/ MW Rs. Cr 1.65
Normative RoE % 14.00
Financial
4 Assumptions
Depreciation rate for first 13
Depreciation years 5.28
depreciation rate for next 12
years 1.78
For Fixed
5 Working capital charges O&M charges Months 1
% of O&M
Maintenance spare expenses 15
Receivable for debtors Months 2
Interest on working capital (MCLR+3)% 11.41
Operation and O&M
6 Maintenance expenses O&M 2019-20 Rs. Lakh/MW 8.00
O&M expense escalation % 5.72
O&M 2019-20 Rs. Lakh/MW 8.00
Generic Tariff - for 25 years without
the benefit of accelerated depreciation 4.10 Rs/unit
Accelerated
depreciation 0.35 Rs/unit
Generic Tariff for 25 years with the
benefit of accelerated depreciation 3.75 Rs/unit
 Annexure-III
Solar PV projects with capacity < 5 MW at a location
(2019-20)
Sl
No Head Sub Head Detailed Head Unit Norm
(i) Installed Power
1 Power Generation Capacity Generation Capacity MW 1
(ii) Capacity Utilisation % 19
factor
(iii) Auxiliary consumption % 0.25
(iv) Useful life Years 25
2 Project cost Capital cost Power plant cost Rs .Cr 4.00
3 Source of Fund /MW Tariff period Years 25
Debt- equity Debt % 70
Equity % 30
Debt Loan amount/MW Rs.Cr 2.80
component Moratorium Years 0
Repayment period
(include moratorium) Years 13
Interest rate (MCLR+2)% 10.41
Equity
component Equity amount/ MW Rs. Cr 1.20
Normative RoE % 14.00
Financial
4 Assumptions
Depreciation rate for first
Depreciation 13 years 5.28
depreciation rate for next
12 years 1.78
For Fixed
5 Working capital charges O&M charges Months 1
% of O&M
Maintenance spare expenses 15
Receivable for debtors Months 2
Interest on working
capital (MCLR+3)% 11.41
Operation and Rs.
6 Maintenance O&M expenses O&M expense 2019-20 Lakh/MW 6.00
O&M expense
escalation % 5.72
O&M expense for 2019- Rs.
20 Lakh/MW 6.00
Generic Tariff - for 25 years without the
benefit of accelerated depreciation 3.66 Rs/unit
Accelerated depreciation 0.31 Rs/unit
Generic Tariff for 25 years with the
benefit of accelerated depreciation 3.35 Rs/unit
 SCHEDULE
(See Regulations 18.1 & 19.3)
Sl. No Description Amount

1 Application Fee Rs1000.00

2 Registration Fee Rs 1000/kW or part thereof