India’s high voltage regulator, KIRCHHOFF, has passed a law that will make it illegal for the government to buy surplus electricity generated from renewable sources and impose a penalty of up to Rs 10,000 per day.
The decision is a blow to the renewable energy sector and a major win for the private sector in the country.
The new law is expected to force the government into a drastic rethink of its policy of subsidising renewable energy, which is already under fire from many quarters.
It will also set a new target of increasing the renewable generation of electricity to 25% by 2022, up from the current level of 15%.
It comes just months after KIRCHROFF was criticised for a subsidy scheme that is seen to be in the process of collapsing due to low demand.
The scheme is expected, however, to be scaled back.
KIRCHROFONDA: The kathakor law, webers law, power tariff is all of this?
source The Indian Express article A bill to amend the Electricity Act has passed the Delhi Assembly, bringing it in line with the landmark Kirchhoff Voltage Law, weber law and power tariff.
The bill will make the state’s power market regulator the regulator of surplus electricity, and will enable the regulator to fine private companies that don’t buy surplus energy.
It also makes the regulator liable to a penalty if it fails to deliver surplus electricity in accordance with the law.
The Delhi government is likely to take up the bill as soon as it is passed, and is expected be given time to formulate a counter measure.
The power regulator’s draft bill, which has already been tabled in the legislature, has been criticised for giving too many exemptions to power companies.
The regulator has sought to strengthen the exemption rules.KIRCHOFONDRIVE: How will the new law affect the solar power sector?
source Quartz article India is the world’s second largest solar producer after China, but the sector is facing severe challenges.
Solar PV is now a highly fragmented market with no clear model, with some companies, like SunPower and Reliance Jio Infocomm, having launched large scale projects and launched multiple products.
With the introduction of the Kirchoff Voltage Law in April this year, a number of state governments have set up special bodies to monitor and regulate solar PV projects.
The legislation also makes it illegal to build solar plants, and it prohibits the sale of solar panels.
The Kirchoffs Voltage Law has also been seen as a key factor in the rapid growth of the solar industry in India, which was estimated at $11 billion in 2015, but now appears to have slumped to $4 billion.
The law also requires that new solar plants must be approved by the state government before being allowed to go into operation, and that they be built on a land where the plants would be visible from the air.
As per the Kirschoff Voltage law, any solar plant that is not approved will be given a 30-day notice to cease operations.
If the plant is approved, the company must make a payment of Rs 1.7 lakh, which would be a hefty penalty.
The government could also levy a penalty up to 10% of the gross profit of a solar power plant.
The KIRACHOFF Voltage Law is also a major blow to rooftop solar installations.
A large number of solar power plants are being built in residential areas and on private land, which have often been under-utilised by solar power users.
As a result, the government has seen a significant increase in solar power capacity in the last two years.
The Kirchenhoff Voltage law was originally introduced in 2013, but was amended in March this year to make it a criminal offence for solar power projects to be built without permission from the state, and a penalty for non-compliance.
In its draft bill submitted to the Delhi government last week, the regulator has also requested a revision to the Kirchenoff voltage law to ensure that it does not give too many incentives to solar power companies to build and operate solar power facilities.
A spokesman for the state energy department said the draft bill has been reviewed and passed, adding that it will be passed soon.