The C-Suite Intelligence

TGSPDCL and TGNPDCL have submitted proposals before the TGERC for amendment to model solar PPA

By  Ravi Shekhar
1 min read

The Telangana Electricity Regulatory Commission (TSERC) has received proposals from the Telangana distribution companies (TGDISCOMS), namely the Southern Power Distribution Company of Telangana Limited (TGSPDCL) and the Northern Power Distribution Company of Telangana Limited (TGNPDCL). These proposals seek amendments to the model solar Power Purchase Agreement (PPA) concerning the billing of imported energy from the grid by solar power developers.

Eninrac has conducted a comprehensive analysis of the proposed amendments to the model PPA and offers the following professional recommendations for each stakeholder, along with suggested course corrections to address potential challenges effectively.

Comments & Impacts on Model Solar PPA Draft for Telangana State:

Stakeholder

Impact

Course Correction Needed

Discoms (TGDISCOMS) (Contd.)

  • Administrative Complexity: Implementing billing adjustments could add administrative overheads and require enhanced IT systems for accurate tracking and invoicing.
  • Potential Backlash: Developers and consumers might resist the amendments, leading to prolonged negotiations or disputes.
  • Transparency: Share detailed methodologies with stakeholders to build trust and pre-empt resistance.
  • Regular Engagement: Conduct stakeholder consultations to address concerns and clarify benefits to the ecosystem, ensuring smooth implementation.

C&I Consumers

  • Higher Energy Costs: Changes to grid import charges could raise electricity bills, impacting the financial rationale for investing in solar energy.
  • Reduced Incentives: The amendment could dampen the attractiveness of solar investments, especially for businesses seeking to offset energy costs.
  • Operational Challenges: Large-scale C&I consumers may need to rework energy management strategies to optimize costs.

  • Cost Mitigation Mechanisms: Suggest policy revisions or subsidies to offset increased costs for C&I consumers.
  • Promote Self-Consumption: Encourage and incentivize solutions like energy storage and demand-side management to reduce grid dependency.
  • Advocacy for Flexibility: Advocate for a phased implementation of the amendments to allow businesses time to adapt.

Overall Market

  • Slower Solar Adoption: If costs rise significantly, the momentum for renewable energy adoption may slow down, affecting national renewable energy targets.
  • Increased Regulatory Oversight: The market might see heightened scrutiny and delays as stakeholders adjust to the new norms.
  • Investor Sentiment: Changes in the PPA could create uncertainty for investors, impacting the flow of capital into the sector.

  • Policy Alignment: Ensure that the amendments are aligned with broader national renewable energy goals to sustain market growth.
  • Clear Communication: Provide timely clarifications and justifications for the amendments to maintain investor confidence.
  • Proactive Issue Resolution: Create a grievance redressal mechanism for developers and consumers to address disputes arising from the new billing framework.

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NATIONAL ELECTRIC MOBILITY ROADMAP-GHANA

By 2035 Ghana aims to ensure that 60% of the government’s vehicle fleet is comprised of electric vehicles

ROADMAP FOR ELECTRIC BUSES IN GHANA

E-buses are one of the emerging technologies that offer opportunities to design an efficient transport system in terms of technology and fuel shift and economic incentives that can strongly contribute to economic transformation. The Ministry of Transport has proposed various targets for deployment and diffusion of the e-intracity bus technology.
The government has committed to introducing one-thousand (1,000) electric buses and related charging and maintenance infrastructure for intra-city (40%) and intercity (60%) transport services within the short term period.
The first phase involves the supply, operation and maintenance of five hundred (500) Complete Built Unit (CBU) electric buses for intra and intercity transport services which would be delivered in five (5) batches. The second phase involves the supply of five hundred (500) Semi-Knocked-Down (SKD) buses and assembly in Ghana in partnership with local assemblers.

In November 2024, Ghana rolled out its first batch e-Buses

Ghana made history with the commissioning of its first batch of electric buses for Metro Mass Transit Limited. The initiative marks a significant shift towards a more sustainable and innovative public transportation system.

Implementation Phases for the National Electric Mobility Plan:

Phase I: (2024-2026)- This phase will be the preparatory phase. The key focus will be on addressing the challenges & barriers to EV uptake

Key activities during this phase would include-

  • Establishment of the Climate Change Unit
  • Establishment of the regulatory framework
  • Development of standards & protocols for charging infrastructure to ensure inter-operability
  • Incorporating EVSE into Building Code Regulation
  • Establishment of incentives: financial & non-financial
  • Mobilization of funds to finance incentives
  • Development of human capital for the electric vehicles value chain
  • Building the capacity of Ghana National Fire Service to manage EV related fires
  • Addressing electricity supply issues including grid stability, grid congestion pressures etc.
  • Development of standards & regulations for converting internal combustion engine vehicles to electric vehicles
  • Public education & awareness creation
Phase II: (2027-2035)- The principal objective of this phase is to ensure a successful take-off & successful transition to EVs in Ghana. The target is that by the end of this phase EV penetration rate will be 35%.

Principle activities during this phase would include –

  • Provision of information on EVs & associated benefits
  • Ensuring secure, resilient & sustainable EV supply chains
  • Implementation of incentives for consumers & suppliers: low-interest loans
  • Implementation of incentives for electric vehicle supply equipment (EVSE). EVSE supplies electricity to an electric vehicles. EVSE systems include electrical conductors, related equipment, software &communications protocols that deliver energy efficiently & safely to the vehicle. These are classified as Level I (120 volts AC).Level 2 (240 volts AC) & DC fast charger (480 volts DC & higher)
  • Promotion of battery swapping stations
  • Procurement of EVs by the government institutions: 60% of the government vehicles fleet to be EVs by 2035.
  • Procurement of EVs by government institutions:60% of government vehicles fleet to be EVs by 2035
  • Procurement of EVSE by public institutions: 100% of MDAs & MMDAs have EVSE
  • Ensuring charging infrastructure roll out at homes & private workplaces
  • Promoting assembling of EVs in Ghana
  • Supporting production of lithium-ion batteries in Ghana
  • Promoting collaboration with countries in the sub-region for the adoption of EVs
  • Supporting electrifications of ICEs
  • Encouraging public transport operators to move to EVs
  • Promoting PPP investment for EV charging infrastructure
  • Data analysis & research to provide relevant information to support decision-making related EV transition
  • Phase III: (2036-2045)- During this phase, efforts will be made to ensure that by the year 2045 no new petrol or diesel vehicles would be sold or imported into Ghana
  • Gradually phase out the incentives for promoting EV uptake
  • Strengthen efforts to assemble EVs in Ghana
  • Consolidate Ghana’s position as the hub for the supply of lithium-ion batteries
  • Strengthen public education on plans to phase out the sale of ICE vehicles in Ghana
  • Ensure that the government vehicle fleet will be 100% EVs by the year 2040
  • Strengthen Customs Division to seal all potential loopholes for entry of ICEs into Ghana
  • Continue to support the electrification of ICEs into Ghana
  • Continue efforts to ensure a stable & adequate supply of electricity to support EV transition

Policy Goals and Prioritized Measures

Policy Goal Prioritized Policy Measures
Economic & fiscal measures Affordable financing mechanisms, incentives and targeted subsidies
Affordable and special electricity (energy) tariff for charging EVs
Infrastructural measures Installation of intra-city and inter-city charging points
Garages, maintenance workshops and training centres
Traffic management: Contraflow bus lanes and dedicated bus lanes
Technical measures More extended range and battery capacity
Skills development, retrofitting of ICEVs, and low-carbon technology transfer
Institutional framework, policy and regulatory measures Review of the Harmonized System (HS) Customs code
Standardization, licensing and certification of EVs and related components
Research, capacity building, assembly and manufacturing
Energy security/ renewable EV charging and battery storage facilities, recycling and end-of-life disposal systems
Social measures Procuring, piloting and testing EVs
Roadmap on EV awareness creation and campaigns
Local EV development measures to accelerate the uptake of EVs Review and adapt the Ghana Automotive Development Policy for ICEVs to provide enabling environment for local start-ups
Establish an assembling plant and ensure local content and automotive standards are enforced in the domestic industry
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TBCB GUIDELINES FOR PROCUREMENT OF STORAGE CAPACITY – INDIA

Analysis of Ministry of Power Resolution of TBCB Guidelines for Procurement Storage Capacity & Stored Energy from PHSP

DESCRIPTION OF THE RESOLUTION

Tariff-Based Competitive Bidding Guidelines for the procurement of storage capacity or stored energy from Pumped Storage Plants (PSPs), issued by the Ministry of Power (MoP), India aims to support India's energy transition by enhancing grid stability, integrating renewable energy sources, and reducing peak-time electricity costs. The guidelines establish a transparent, standardized framework for procurement, ensuring fair risk-sharing among stakeholders, including developers, procurers, financial institutions, and regulatory bodies.

Key provisions include bidding structures, financial eligibility criteria, performance guarantees, and contract terms. The document also outlines the technical requirements, project timelines, and tariff structures for PSP development. Additionally, it highlights environmental considerations, land acquisition policies, and social impact assessments. By defining clear regulatory processes and dispute resolution mechanisms, these guidelines aim to attract investment, improve energy security, and drive long-term sustainability in India's evolving power sector.

The policy supports the National Electricity Plan 2023, which projects a need for 27 GW of PSP capacity by 2031-32. It enables cost-effective peak load management, reduces carbon emissions, and encourages public-private partnerships (PPPs) to accelerate storage infrastructure development while balancing economic and environmental factors.

ENERGY FLOW & ECONOMIC BENEFITS OF PHSPs


FINANCIAL FLOW & INVESTMENT REQUIREMENT - PHSP

The policy supports the National Electricity Plan 2023, which projects a need for 27 GW of PSP capacity by 2031-32. It enables cost-effective peak load management, reduces carbon emissions, and encourages public-private partnerships (PPPs) to accelerate storage infrastructure development.

ENVIRONMENT & SOCIAL IMPACT

KEY IMPACTS

Pumped Storage Plants (PSPs) play a crucial role in reducing carbon emissions by integrating renewable energy and minimizing reliance on fossil-fuel-based power generation. However, their development comes with environmental and social considerations.

PSPs require large reservoirs, which can lead to land acquisition challenges, deforestation, and ecosystem disturbances. Water resource management is a key concern, as PSPs may alter river flows and affect aquatic biodiversity. Additionally, local communities near project sites may face displacement and livelihood disruptions, necessitating resettlement plans and fair compensation.

To mitigate these impacts, PSP projects must undergo environmental impact assessments (EIA), adhere to sustainability guidelines, and implement afforestation programs. Proper stakeholder engagement and community development initiatives are essential to balancing economic benefits with ecological and social responsibility.

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Why BESS for Commercial & Industrial (C&I) Consumers is required in India?

The contribution of Variable Renewable Energy (VRE) in addressing peak demand has shown steady growth, with India experiencing a shift in demand patterns from predominantly high nighttime peaks in 2019 to more pronounced daytime peaks by 2024. This adjustment in demand and the increasing influence of VRE, particularly solar energy (the focus of this analysis), is clear between 2019 and 2024 in India. We have analyzed the peak demand and the residual load on a specific day in July of both 2019 and 2024, along with the amount of solar generation on that day, and its role in meeting the peak demand. The peak demand shaving has grown nearly 10 GW in a time-span of 5 years from 2019 to 2024.


Source: POSCO, CEA, eninrac research & analysis

The business case for energy storage is thus strong in the India especially if the focus is upon the C&I consumers. The evening peak shift also indicate greater C&I consumer off-take in daytime apart from a shift observed in the agricultural load patterns in the last 5 years. India has shown considerable growth in demand from C&I consumers and the off-take through open access route has been on the rise in past few years. But the concern through OA route has been the reliability of RTC power which can be addressed through more reliable battery energy storage systems (BESS).  For behind-the-meter applications BESS can be adapted on wider scale as the cost of BESS systems have been going down despite the demand-fulfilment ratio (DFR) of 80%-90% being maintained. The use case of BESS for C&I consumers could be further enhanced due to lowering costs and the possibilities to reduce contracted demand from the distribution utilities thereby increasing their savings upon the demand charges in electricity bills. Furthermore, with growing RE capacity the increase in their utilization is anticipated in the country which can be best supported by ESS only.

Why can BESS be a game changer for C&I Consumers in India?

India has consistently seen the rise in power demand through 2019 to 2024 and interestingly despite the nighttime load shifts to daytime in 2024, the gap in the nighttime peak is whopping 41 GW. With the advent of electrification in the transportation mix the nighttime peak might rise faster than anticipated which may further put pressure on the must-run plants to run round-the-clock and thereby forcing the additions from fossil backed plants. This in turn shall lead to a cascading impact of low utilization of existing and upcoming renewable energies, amidst greening of the grid drive by GoI and higher contributions from fossil-based plants due to the lack of suitable energy storage systems whether standalone BESS, pumped hydro stations or any other form. The challenge is more prominent at nighttime when the evening ramp up is required at fast pace if the fossil plant is not under must run status, then acute power demand-supply gap can be witnessed which can be countered by energy storage systems aptly.

Source: POSCO, CEA, eninrac research & analysis


Moreover, with almost all the state’s where the manufacturing is on the rise the demand of power from C&I consumers are also rising consequently. Ideally, majority of these C&I consumers should have been grid connected by a shift is observed in the pattern with more C&I consumers preferring open access route from renewables at large due to savings and benefits of using green power. Particularly, the said route is gaining fast popularity among consumers in less than 10 MW size for which BESS solutions shall be ideal in behind-the-meter applications. For the BESS OEMs/developers the opportunity beckons in very large spectrum in states of Gujarat, Maharashtra, Tamil Nadu and Karnataka etc. Also, it is anticipated that the BESS would be suited for commercial and low voltage industrial consumers first and then gradually may see applications for the higher voltage industrial consumers.

[slug] => bess-market-potential-for-commercial-industrial-ci-consumers-in-india-is-huge [created_at] => 2024-10-11 07:46:30 [update_at] => 2024-10-14 07:46:30 [count] => 0 [post_object] => {"brief":"The key objective of the article is to understand the opportunity for BTM BESS application in India for C&I Consumers requirement from 30 kWh to 10 MWh and FTM application of more than 10 MWh. The growing penetration of variable renewable energy in GRID for energy transition shall be a challenge to cater for India in by 2032.","metaTitle":"BESS Market Size Identification for C&I Consumers in India","metaDescription":"The key objective of the article is to understand the opportunity for BTM BESS application in India for C&I Consumers","attachment":"fb27ec13e0.jpg","author":["1","2"],"support_author":["1","2"]} [type] => the-c-suite-intelligence [status] => 1 [approve] => 1 ) )
National Electric Mobility Roadmap Of Ghana

National Electric Mobility Roadmap Of Ghana

E-buses are one of the emerging technologies that offer opportunities to design an efficient transpo...

TBCB Guidelines For Procurement Of Storage Capacity

TBCB Guidelines For Procurement Of Storage Capacity

Tariff-Based Competitive Bidding Guidelines for the procurement of storage capacity or stored energy...

The BESS market potential for C&I consumers in India unlocks new growth opportunities

The BESS market potential for C&I consumers in India unlocks new growth opportunities

The key objective of the article is to understand the opportunity for BTM BESS application in India ...