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In a significant move towards enhancing renewable energy adoption, the Delhi Electricity Regulatory Commission (DERC) has announced amendments to the guidelines governing Group Net Metering (GNM) and Virtual Net Metering (VNM) for Renewable Energy Systems. These amendments, termed the Delhi Electricity Regulatory Commission (Group Net Metering and Virtual Net Metering for Renewable Energy) (Fifth Amendment) Guidelines, 2024, are set to come into effect from April 1st, 2024.
The amendments primarily focus on refining definitions and updating provisions to streamline the implementation of GNM and VNM frameworks. One notable change is the clarification of terms such as “Group Net Metering” and “Virtual Net Metering.” Group Net Metering now refers to the arrangement where surplus energy from a Renewable Energy System is exported to the grid and adjusted across multiple electricity service connections of the same consumer. Meanwhile, Virtual Net Metering involves exporting energy generated from a Renewable Energy System to the grid and adjusting it across multiple electricity service connections of participating consumers.
Under the amended guidelines, Distribution Licensees are mandated to facilitate and bear the capital expenditure related to Service Line cum Development (SLD) and network augmentation for Renewable Energy projects under VNM and GNM modes. However, this waiver of SLD is applicable only for projects on networks of 11kV and below. Additionally, Distribution Licensees are required to submit quarterly progress reports for Net Metering, Group Net Metering, and Virtual Net Metering to the Commission and relevant authorities.
Another significant change pertains to the capacity limits for Ground Mounted Renewable Energy Systems under GNM or VNM frameworks. The capacity of these systems is now capped at five times the sanctioned load of participating consumers, with a maximum limit of 10 MW. However, there is no such capping on the capacity of Rooftop Solar Renewable Energy Systems under these frameworks.
Furthermore, the amendments address the applicability of charges for Renewable Energy Systems commissioned up to March 31st, 2027. These projects will be exempted from 100% payment of Wheeling Charge, Banking Charge, Cross Subsidy Surcharge, and other charges until the end of their useful life. Projects commissioned up to March 31st, 2030, will be subject to 25% of the mentioned charges/surcharge, gradually increasing every three years until reaching 100%.
In addition to these amendments, Distribution Licensees are required to display the available capacity under VNM/GNM Guidelines on their website, updating it quarterly. These measures aim to promote transparency and facilitate stakeholders’ access to relevant information regarding renewable energy projects.
Overall, the amendments introduced by the Delhi Electricity Regulatory Commission are geared towards fostering a conducive environment for the widespread adoption of renewable energy in the region. By addressing key definitions, provisions, and charging mechanisms, these amendments seek to streamline processes and incentivize investment in renewable energy infrastructure, ultimately contributing to India’s clean energy transition. |
