Resolving Disputes In Wind Energy: MERC’s Directive On Metering And Safety Standards

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In a notable legal proceeding before the Maharashtra Electricity Regulatory Commission (MERC), M/s. Rajlakshmi Minerals (RM) contested a notice from the Maharashtra State Electricity Distribution Co. Ltd (MSEDCL). This dispute centered on allegations of RM’s non-compliance with a Wind Energy Purchase Agreement (WEPA) dated August 20, 2014. The contentious notice, dated January 5, 2023, accused RM of not installing individual meters at each wind turbine location, failing to maintain individual generation records, and not installing a circuit breaker at individual wind energy generators (WEG).

RM, a wind energy generator, argued that the WEPA did not require individual meters at each WEG, asserting that group metering was accepted and meter readings were taken from a common meter since the commissioning of its wind farms. RM further contended that it had always maintained the necessary operational records in an electronic format at a central location and that the requirement for a circuit breaker did not apply to its WEGs, each having a capacity below the 1 MW threshold where such installation becomes mandatory.

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MSEDCL’s response refuted RM’s claims, insisting on the installation of individual meters for accurate energy accounting and billing, maintenance of operational records at the facility, and the necessity of circuit breakers for grid safety. MSEDCL highlighted these measures as critical for ensuring grid integrity and preventing undue payment for energy generated.

The Commission’s detailed analysis addressed the core issues of meter installation, maintenance of operational records, and circuit breaker requirements. It underscored the historical context of group metering practices in Maharashtra’s wind energy sector, emphasizing the need for clear and fair implementation of such practices. The Commission ruled that if wind turbines shared a common evacuation system but had different owners or tariff rates, individual metering was necessary to apportion generated energy accurately.

On the matter of operational records, the Commission found that RM had maintained necessary records but acknowledged RM’s argument that MSEDCL’s inspection lacked prior notice. Regarding circuit breakers, the Commission noted the absence of a specific mandate for their installation on individual WEGs under the capacity of 1 MW but recognized their importance for grid safety at the pooling substation level.

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Ultimately, the Commission partly allowed RM’s petition, directing RM to install individual meters and circuit breakers (if applicable) within specified timelines. The Commission’s decision highlighted the importance of adherence to contractual obligations and regulatory standards in the renewable energy sector, balancing the need for grid stability with the practicalities of wind farm operations. This ruling sets a precedent for resolving similar disputes in the sector, underscoring the Commission’s role in upholding fair practices while advancing Maharashtra’s renewable energy goals.

Please view the document here for more details.

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