The Delhi Electricity Regulatory Commission (DERC) on July 2nd 2024 has taken a significant step forward in promoting renewable energy through a draft amendment to the DERC (Net Metering for Renewable Energy) Regulations, 2014. The amendment aims to streamline and enhance the integration of renewable energy systems within the state’s electricity framework.
Key Highlights of the Draft Amendment:
Amendments to Regulation 5 (3) of the Principal Regulations
The proposed amendments introduce new provisos to Sub-clause (3) of Regulation 5, focusing on the technical feasibility and infrastructure requirements for renewable energy systems:
1. Exemption from Technical Feasibility Studies for Systems up to 10 kW
- Provision: Renewable energy systems up to 10 kW are exempted from technical feasibility studies.
- Implication: This simplifies the process for consumers installing smaller renewable energy systems, encouraging more widespread adoption.
2. Enhancement of Sanctioned Load
- Provision: Any necessary enhancement of the sanctioned load for the consumer will be carried out by the Distribution Licensee.
- Implication: This ensures that consumers do not face bureaucratic hurdles or delays in upgrading their energy systems to support renewable energy installations.
3. Infrastructure Upgradation for Systems up to 10 kW
- Provision: Upgradation of distribution infrastructure, including Distribution Transformer (DT) capacity to facilitate the installation of renewable energy systems up to 10 kW, will be carried out by the Distribution Licensee.
- Financial Implication: The costs incurred for these upgrades will be allowed as a pass-through in the Aggregate Revenue Requirement (ARR), subject to a prudence check by the Commission.
- Impact: This provision removes financial barriers for distribution companies, ensuring they have the support needed to upgrade infrastructure without compromising their financial stability.
4. Technical Feasibility for Systems Above 10 kW
- Provision: The technical feasibility for renewable energy systems above 10 kW must be completed by the Distribution Licensee within fifteen (15) days from the date of receiving a complete application.
- Implication: This sets a clear and swift timeline for processing applications, reducing wait times for consumers and promoting quicker deployment of larger renewable energy systems
The new regulations will come into effect from 26th July 2024
