J&K and Ladakh Issue Regulations for Power Procurement and Planning

LegalitySimplified

The Joint Electricity Regulatory Commission for the Union Territory (UT) of Jammu & Kashmir and the UT of Ladakh has introduced the “Guidelines for Load Forecasts, Resources Plans, and Power Procurement Process” Regulations, 2023. These regulations were published on November 9, 2023 and come into force from that date.

Key Highlights of the Regulations:

1. Applicability:

  • The regulations apply to Jammu and Kashmir Power Corporation Ltd (JKPCL) and all Distribution Licensees in the territories of UT of Jammu & Kashmir and UT of Ladakh. They also apply to all inter/ intra state purchases of power from conventional and renewable sources made by JKPCL or any Distribution Licensees.

2. Power Procurement Plan:

  • Distribution Licensees, in collaboration with JKPCL, are mandated to prepare a comprehensive power procurement plan for a period of five years.
  • The plan encompasses long-term, medium-term, and short-term sources of power purchase, aligning with demand-supply dynamics.

3. Demand and Energy Forecast:

  • The regulations necessitate an in-depth assessment of power demand and energy requirements based on historical data, future projections, and business plan outcomes.
  • Distribution Licensees may adopt methodologies like those recommended by the Central Electricity Authority (CEA) for forecasting.

4. Resource Plan for Renewable Energy (RE) Integration:

  • The Distribution Licensees, in collaboration with JKPCL, are tasked with developing a resource plan considering scenarios for RE integration with conventional power sources.
  • This includes the adoption of different storage technologies to meet peak load during high-demand seasons.

5. Monthly Power Procurements Transparency:

  • Distribution Licensees and JKPCL are required to publish monthly/weekly/day-ahead/intraday power procurements and sale data on their websites within 30 days of such transactions.
  • The State Load Dispatch Center (SLDC) will also publish the monthly Merit Order Dispatch (MoD) stack along with per unit variable cost of each generating station.

6. Dedicated Cell for Power Procurement:

  • JKPCL will establish a dedicated cell for power procurement within three months of the regulations coming into force.
  • The cell, equipped with forecasting tools, will have the authority to purchase/sell energy in real-time through Power Exchanges or other means.

7. Guidelines for Dedicated Cell:

  • JKPCL is directed to formulate guidelines for the functioning of the dedicated cell, aligning with the regulations’ objectives.
  • These guidelines are to be submitted to the Commission within 45 days of the regulations coming into effect.

The introduction of these regulations aim at achieving a sustainable, transparent, and resilient power procurement framework in the Union Territories of Jammu & Kashmir and Ladakh. The guidelines are expected to streamline processes, enhance energy security, and encourage the integration of renewable energy sources into the power mix.

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