Partnership to Advance Clean Energy- Deployment (PACE-D) (PACE-D) “Strategy for Development of RE Hybrids in Karnataka” September 11, 2015
Jan 16, 2016
Partnership to Advance Clean Energy-Deployment (PACE-D)(PACE-D)
“Strategy for Development of RE Hybrids in Karnataka”
September 11, 2015
• Background
• Technical Aspects of RE Hybrids
• Commercial/Financial Aspects of RE Hybrids
• Regulatory Aspects of RE Hybrids
• Potential Policy & Regulatory Intervention Measures
2
Content
Background
3
• With deployment of over 23 GW of Wind Power installations and over 4 GW
Solar Power, we have a matured market for Wind and Solar
• Government has announced ambitious target of over 100 GW of Solar and 60
GW of Wind capacity addition by 2022
• However, development of standalone Solar and Wind power projects have
following limitations : Limited scope for optimization of Land & harnessing of RE resource Higher capital cost and higher project development time Separate connectivity & evacuation infrastructure High cost of interconnection & evacuation infrastructure and lower utilisation Variable power generation profile with seasonal variation in power output
4
Driving Factors for Utility Scale Hybrid RE (Wind-Solar)
Large scale deployment of Wind Solar RE Hybrid can be preferred solution to achieve the
ambitious plans to accomplish RE capacity targets of 100 GW Solar and 60 GW Wind by 2022
This is crucial as vast requirement for land acquisition (procurement/lease) for 100 GW Solar can
be optimized and PE infrastructure available at existing wind farms can be exploited
• Karnataka is bestowed with vast Renewable Energy potential. Parts of the State is blessed with Wind and Solar Energy resources, ideal sites for implementation of utility scale Hybrid RE (Wind-Solar) Projects
• However, no utility scale Hybrid RE Project (Wind-Solar) has been implemented in any State across India
• In this context, a Comprehensive study for development of suitable framework for promotion of Wind-Solar Hybrid RE Projects in the state is necessary
• Study initiated by PACE-D TA program to comprehensively cover technical, commercial and regulatory aspects of RE Hybrid development :– Identifying challenges for deployment of RE Hybrids in the state of Karnataka
– Formulating suitable regulatory intervention measures and policy framework necessary to address the challenges
– Enabling framework for existing Wind / Solar Power Developers in the state to explore options for development of Brownfield & Greenfield Hybrid RE projects in the State
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Background to Hybrid RE Study in Karnataka
Assessment of RE Hybrid potential in Karnataka
6
• Progress in RE development in Karnataka (As of July 2015, KREDL):
• While 65% of the state RE potential has been allocated for RE Project development,
only about 25% of such allotted RE project capacity has been commissioned so far
• Several high wind resource rich sites have not been exploited despite allotment.
• Difficulty in establishing sustainable supply chains has resulted in stranded investments
• Land acquisition is the biggest challenge to the deployment of RE in the state*
*Climate Parliament Nov’14 Report on Re-Energizing Karnataka7
RE Potential & Assessment in Karnataka
RE SourcePotential Capacity
(MW)Capacity Allotted
(MW)
Capacity Commissioned
(MW)Wind 13,983 13,245 2,686
Small Hydro 3,000 3,001 811
Solar Grid 10,000 1,100 101
Co-generation 2,000 1,779 1,191
Biomass 1,000 370 113
Municipal Solid Waste 135 26 0
TOTAL 30,118 19,521 4,902
8
Typical Load and Wind Generation Profile in Karnataka
Maximum Generation from Wind Energy at any point was ~ 1200 MW as against installed Wind Power Plant capacity of 2686MW in Karnataka. Thus, surplus capacity in existing Evacuation/Transmission N/W can be exploited
This presents an opportunity to improve Utilization factor for Grid/Tx network through Solar Power
and combination of Wind-Solar Hybrid RE installations
Source: Karnataka SLDC : Sample Daily Load-Wind Generation Profile
Wind & Solar Potential in Karnataka
Wind Power Potential in Karnataka
Potential (MW) Allotment (MW) Commissioned (MW)
Solar Radiation (kWh/m2/day) in Karnataka
< 5.0 5.31-5.40 5.0-5.10 5.41-5.50
5.11-5.20
5.50 & above
5.21-5.30
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RE resource (Solar & Wind) potential mapping for Karnataka
Solar Radiation (kWh/m2/day) in Karnataka
Below 5.0
5.01-5.10
5.11-5.20
5.21-5.30
5.31-5.40
5.41-5.50
Above 5.50
Total No. of Substations (Belgaum)
124
220 kV 7
110 kV 53
33 kV 64
Total No. of Substations (Bagalkot)
64
220 kV 3
110 kV 36
33 kV 25
Total No. of Substations
(Chitradurga)
42
220 kV 3
110 kV 39
Total No. of Substations (Gadag)
22
220 kV 1
110 kV 14
33 kV 7
Total No. of Substations (Karnataka)
1401
Mapping of Solar & Wind Resource Potential suggests ideal location for Wind Solar Hybrids RE are Chitradurga, Bagalkot, Gadag and Belgaum
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Voltage-wise Line Loading Capacity of substations – 1/2
However, CEA has published Manual for Transmission Planning
Criteria, 2013 which outlines special dispensation and additional criteria for
Wind and Solar Projects.
Sr. No.
Voltage (kV) Line Loading Capacity (MW)Sub-station Capacity (MVA)
as per CEA Technical Standards
1 400 450 1500 MVA
2 220 250 500 MVA
3 132 90 150 MVA
4 66 27 75 MVA
• CERC in its Regulations for ‘rates and charges for intervening transmission facility’ has specified the voltage-wise line loading capacity.
• Further, CEA (Technical Standards for Construction of Electrical Plants and Electric Lines) Regulations, 2007 and amendment in 2010, outline conditions for design of Substation Capacity and Transmission Lines
CEA’s Transmission Planning Criteria (Manual, 2013)
•The capacity factor for the purpose of maximum injection to plan the evacuation system, both for immediate connectivity with the ISTS/Intra-STS and for onward transmission requirement, may be taken as under:
•The ‘N-1’ criteria may not be applied to the immediate connectivity of wind/solar farms with the ISTS/Intra-STS grid i.e. the line connecting the farm to the grid and the step-up transformers at the grid station.
•As the generation of energy at a wind farm is possible only with the prevalence of wind, the thermal line loading limit of the lines connecting the wind machine(s)/farm to the nearest grid point may be assessed considering 12 km/hour wind speed.
12
Voltage-wise Line Loading Capacity of substations – 2/2
Additional Wind & Solar Generation capacity at Existing Grid S/S can be absorbed
without significant augmentation requirement.
13
Typical Generation Curve for Hybrid RE (Wind & Solar)
Typical Daily Solar Power Generation Pattern
Karnataka Typical Daily Wind Generation Pattern
Solar generation results in flattening
of the generation curve of Wind farm
and increases its predictability
Simulation of Energy Mix of Wind & Solar (1/2)
Wind Generation
Profiling
Solar Generation
Profiling
Simulation of Hybrid RE Gen.
at Pooling S/S
Sample data for Wind Power Project•3 days for 3 months•June to August•Time-blocks
Sample data for Solar Power Project•3 days for 3 months (same sample days)•June to August•Time-blocks
Extrapolation for 100 MW Wind PP
Extrapolation for Solar PP Capacities( 20/ 30 / 35 / 40 / 45 MW)
Boundary Conditions•Evacuation Capacity• Minimizing Generation curtailment
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Simulation of Energy Mix for Wind & Solar (2/2)
Exploring the appropriate Wind – Solar Mix for Brownfield as well as for Greenfield
projects is the key for Optimum Utilization of the Evacuation system & cost saving
In the above scenarios, utilization of PE system up to 30-35% of existing Wind Capacity
is possible without constraint
Thus, additional Solar capacity upto 30% - 35% is feasible for RE Hybrid Projects 16
Simulation results forWind & Solar Generation Scenario
Technical Aspects of RE Hybrids
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I. Interconnection Point
II. Metering Point
III. Transmission and Evacuation
IV. Energy Accounting
V. Scheduling and Forecasting
18
Key Technical Aspects for RE Hybrid
Interconnection & Metering Point: (1/2)
Solar Capacity to be added in existing wind farm through separate feeders
Interconnection & Metering Point: (2/2)
0
SG
0
SGSG SGProposed Solar installation (SG+ feeder+feeder bay)
WTG
Feed
ers
SGFeed
ers
To be JMR point for
Hybrid RE
Existing JMR point
Level of Metering Description0 Individual WTG/SG level
1 & 2 33 kV feeder level3 EHV side of pooling S/S at site4 Grid Substation of KPTCL
• Clear demarcation of Solar Generation and Wind Power Generation is important from perspective of energy accounting, scheduling requirement and RPO compliance
• Rules for Interconnection, Metering arrangement for RE Hybrids need to address these requirements
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Interconnection Point
Presently Grid substation to which the Wind project is connected
Metering Point
Presently Grid substation
Existing framework not suitable for Hybrid
Existing framework considers single metering point for entire wind farm
Single metering point cannot account for Wind & solar generation separately for RPO
From perspective of RPO compliance Wind and Solar need to be separately metered
Interconnection point to be defined as HV side of Pooling substation
Metering points to be defined as either feeder level or individual generator level
(i.e., level ‘0’ or ‘1’)
As a pre-condition, incoming feeders of pooling station to have all solar or all WTGs connected to it
Existing Practice Challenges Recommendation for Hybrid
Technical Aspects-Interconnection & Metering Point
22
JMR conducted at grid substation
Energy credit on account of individual generator arrived at based on JMR reading & WTG controller data
Loss apportioning done among WTGs based on JMR reading & WTG controller data
Separate energy credit for Solar generators is not possible with no separate feeder metering at pooling station
Separate loss apportionment for Solar generator is not possible
JMR to be done at HV side as well as at incoming feeder level of the pooling substation Additional Metering infrastructure to be in place at each incoming feeder level
Energy accounting and loss apportionment to individual generator to be based on JMR reading at new metering point at pooling substation and the controller reading
Existing Practice Challenges Recommendation for Hybrid
Technical Aspects-Energy & Loss accounting
23
Entity for connectivity & planning -STU /Utility
Responsibility of setting up evacuation facility up to grid S/S – by Generator
Cost of setting up evacuation facility up to grid S/S – by Generator
Evacuation infrastructure in RE pockets to be strengthened
Evacuation infrastructure planning - no specific consideration for RE evacuation
No mechanism in place for sharing cost of evacuation with Utility
Transmission infrastructure planning to strengthen grid at wind-solar pockets of State
State level planning code to give priority for grid planning for RE Hybrid
SNA to assess & notify Hybrid Potential areas to STU to enable timely grid strengthening
Existing Practice Challenges Recommendation for Hybrid
Technical Aspects-Transmission & Evacuation
Brownfield project Upstream evacuation infrastructure
need not be upgraded – avoided cost for Utility
Green field project Optimum capacity evacuation
substation to be planned depending on Wind-Solar Hybrid potential in the region
Scheduling & Forecasting
• Forecast: Composite tool to be deployed for forecasting both wind and solar
at the same site
• Generation schedule: Schedule to be generated at pooling station level
• Challenge: Treatment for deviation settlement for wind and solar is still
evolving.
• IEGC/SEGC: Grid codes to have special provisions of deviation settlement
of RE hybrid projects
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Technical Aspects -Scheduling & Forecasting
Commercial/Financial Aspects of RE Hybrids
25
Case I- Wind (Existing) & Solar (New) - Brownfield
• Existing PE facilities could be shared, however some augmentation would be required
like in transformers/Bays at the pooling stations for Dynamic loading
• Additional land would be required avoiding the area falling under zone of shadow
• Savings in O&M Cost (Common manpower for managing SCADA, security etc);
O&M is panel cleaning, which requires water and such are not common to wind O&M
Case-2: Wind & Solar (Both New) – Greenfield
• The infrastructure will be utilised optimally by the Hybrid RE system
• The general facilities like approach roads and logistical support will be shared.
• Allocation of common costs and shared infrastructure cost between wind and solar
could be challenge.26
Cost Benefit Parameters
Impact on CUF
Shear Effect
• Defined as the variation of
wind speed with height above
ground level
• Have significant impact on
wind turbine performance,
aerodynamics and structural
loads
Wake Effect
• Depends on the thrust and the turbulence level at the turbine
• Generally considered in the design of a wind farm in order to maximize the energy output & lifetime of machines
• Main effects are reduction in wind speed & increase in wind turbulence
Shadow Effect
• Bullet
• Alternating changes in light intensity that can occur at times when the rotating blades of wind turbines cast moving shadows on the ground or on structures
• Dependent upon wind direction and time of day
• Result in 1% to 2% loss in Solar CUF
Additional Impacts: •Decrease in wind PLF due to roughness factor of surface area by 0.5% if the solar panels are installed betn two turbines•Turbine Blades flicker to impact the CUF of Solar
COG & Tariff Workings
Assumptions
• Capital cost savings in terms of
– Land Cost and site development cost
– Cables and Transformers
– Evacuation Infrastructure
• Savings in terms of O&M expense
– (Sharing of common O&M contract)
• Reduction in CUF of Wind and Solar owing to
– Shear Effect
– Wake Effect
– Shadow Effect
COG & Tariff Workings
• Capital Cost (Considering W:S capacity ratio of 70:30)
S. No ParticularsSolar (Rs.
Lakh/MW)
Wind (Rs.
Lakh/MW)
Total Cost (Rs.Lakh/2MW)
Total Cost (Rs.
Lakh/MW)
Total Cost (Rs. Lakh
/2MW)Remarks
Total Cost (Rs.
Lakh/MW)
A+B
Wind+Solar (without cost
saving)Hybrid (A, B) Hybrid (A, B)
Capacity 1MW 1 MW 2MW 1MW 2MW 1MW
1 Cost of Module per MW 356 330 686 343 686 343
2 Land and Site development cost 25 30 55 28 46 20% reduction 23
3 Civil and Ground works 50 30 80 40 80 40
4 Mounting Structure/tower 50 60 110 55 110 55
5 Power Conditioning Unit 45 0 45 23 45 23
6 Cables and Transformers 43 42 85 43 805% reduction @pooling S/S
40
7Preliminary and operative expense IDC etc. (10% of total capital cost)
49 60 109 54 109 54
8 Evacuation transmission charges 10 42 52 26 5220% reduction on Evacuation cost
26
9 Connectivity Charges 2 6 8 4 8 4
10 Total capital cost 630 600 1230 615 1216 608
COG & Tariff Workings
• Capital Cost scenario analysis for various Wind Solar Mix
602 605 608 611 614
600 L/MW
630 L/MW
615 L/MW
580
590
600
610
620
630
640
Case 1(W:S=50:50)
Case 2(W:S=60:40)
Case 3(W:S=70:30)
Case 4(W:S=80:20)
Case 5(W:S=90:10)
Rs L
/MW
Capital Cost
Hybrid Capital Cost Stand alone Wind Stand alone Solar Wind+Solar
COG & Tariff Workings
• CUF scenario analysis for various Wind Solar Mix
22% 23% 24% 24% 25%
26%
20%
0%
5%
10%
15%
20%
25%
30%
Case 1(W:S=50:50)
Case 2(W:S=60:40)
Case 3(W:S=70:30)
Case 4(W:S=80:20)
Case 5(W:S=90:10)
% C
UF
CUF
Hybrid CUF Stand alone Wind Stand alone Solar Wind+Solar
COG & Tariff Workings
• COG scenario analysis for various Wind Solar Mix
5.76 5.62 5.50 5.37 5.26
4.82 Rs/kWh
6.94 Rs/kWh
0.001.002.003.004.005.006.007.008.00
Case 1(W:S=50:50)
Case 2(W:S=60:40)
Case 3(W:S=70:30)
Case 4(W:S=80:20)
Case 5(W:S=90:10)
Rs/
kWh
CoG
Hybrid CoG Stand alone Wind Stand alone Solar Wind+Solar
Estimated Benefit for Utility
No. of Districts with predominant RE-hybrid potential in Karnataka
Chitradurga, Bagalkot, Gadag & Belgaum
Installed capacity of wind farms in each such Districts
Chitradurga 726 MW
Bagalkot ~50 MW
Gadag 716 MW
Belgaum 317 MW
Total 1809 MW
Solar capacity that could be added to existing Wind farms without PE infrastructure augmentation
30% of 1800 MW = 540 MW (considering 30% additional of existing wind installed capacity)
Avoided cost for KPTCL of setting up of evacuation infrastructure for 540 MW (including transmission substation and line cost for 400 kV or 220 kV level)
Rs. 540 Crore - Rs 650 Crore(Considering expected per MW cost of 1 Cr to 1.2 Cr for PE infrastructure)
Regulatory Aspects of RE Hybrids
34
35
Tariff Aspects
Separate FIT for Wind & Solar generation. Actual generation for Wind & Solar need to be metered
separately
Every unit of generation whether from wind or solar will receive the same tariff. Capacity share of Wind &
Solar shall be the key determinant
For each hybrid project separate tariff order depending on case specific parameters
will have to be issued
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Tariff Aspects: A Comparison
Separate Wind/Solar FIT Composite Tariff Case Specific Tariff
Limited Regulatory Process Regulatory Process required to get tariff
approved Regulatory Process required to get Tariff
Approved for every project
Flexibility for choosing the most economical wind: solar ratio will be
highest
Flexibility for choosing the most economical wind: solar ratio will be low. The regulators are unlikely to determine
tariff for a range of ratios.
Flexibility for choosing the most economical wind: solar ratio will be retained. But the rationale behind the
ratio may have to be explained before the Commission during the proceedings
For commercial purposes, wind and solar units will be operating separately
Commercially and technically, the plant will be identified as a single source of
energy
Commercially and technically, the plant will be identified as a single source of
energy
Suitable for Greenfield as well as Brownfield project since it does not
require revision of existing PPA
Suitable for Greenfield projects since the existing PPA will not be
applicable for and tariff is re-determined
Suitable for Greenfield projects since the existing PPA will not be applicable for and tariff is
determined for every project
•Exploring appropriate Tariff Model for Wind-Solar Hybrid is need of the hour
•Ease of implementation with separate accounting of Wind/Solar is important for RPO compliance
•Selected tariff model to be suitable for both Greenfield and Brownfield Projects
•Considering the above benefits, Separate Wind/Solar FiT Tariff is recommended
Potential Policy & Regulatory Intervention Measures
37
38
Required Intervention Measures
• Enabling Regulatory
environment for RE
Hybrid by KERC
• Facilitative
framework of FiT,
RPO and REC
regulations and grid
connectivity for RE
Hybrids to be in
place
• Guidelines & Eligibility
Criteria for recognition
of Hybrid RE
• Funding Support to
STU/CTU through
NCEF
• Provisioning of Fiscal
Incentives/Benefits
• Amendment to
Metering
Procedure/Protocol
• Simplified procedures
for Energy Accounting
& Commercial
Settlement
• Priority of preference
in Transmission
/Evacuation Planning
39
Potential Policy Interventions
• Guidelines & Eligibility Criteria for recognition of Hybrid RE
– MNRE to formulate suitable policy guidelines for promoting Hybrid RE
– Eligibility criteria for Brownfield/Greenfield RE hybrids and eligible technology options to be
framed;
– Potential for Hybrid RE to be assessed or SNA to be identified for the same
• Funding Support to STU/CTU through NCEF
– Funding support to STUs/CTUs through NCEF for augmenting Evacuation infrastructure
development for Greenfield/Brownfield Wind-Solar Hybrid projects
– Soft funding for Hybrid RE project developers from IREDA/REC/PFC
• Fiscal Incentives/Benefits
– To attract wind farm owners to set up hybrid RE projects (brown field/green field) in the form of
VAT exemptions, Tax benefits (Brownfield), continuation of AD benefits etc.
– Concession/ Exemption on stamp duties, local taxes/entry taxes etc.
– To compensate Loss of revenue to Wind farm owners due to loss of generation during
construction & commissioning of Solar Power in case of Brownfield Hybrid RE project
40
Potential Regulatory Interventions
• Grid Code provision for RE Hybrid
– Planning Code to be amended to add provision for consideration of strengthening of Evacuation
Infrastructure in RE pockets of the State
– Grid connectivity framework to be in place
– Planning standards for Pooling S/S and Transmission Line Loading conditions to be modified to
address RE Hybrid Installed Capacity requirements.
• FiT framework
– Notifying norms for composite tariff for Greenfield Hybrid RE project & Hybrid RE tariff
determination
– Provision for Brown field & Green field projects : project specific tariff and separate Solar – wind
tariff to be continued to be applicable for Brownfield Hybrid RE projects
• Modification to RPO and REC regulations for RE Hybrid
– Separate RPO target for hybrid RE projects
– Alternately, multiple Factor for RECs for Wind/Solar Generation by Hybrid RE project
41
Potential Utility Process Interventions
• Amendment to Metering Procedure/Protocol
– JMR to be carried out at incoming feeder of LV side of pooling station
– Additional JMR to be carried out at HV side of Pooling substation
• Simplified procedures for Energy Accounting & Commercial Settlement
– Generation credit notes to be issued based on new JMR practice separately for Solar and Wind
for hybrid RE projects
• Priority of preference in Transmission /Evacuation Planning
– Transmission planning to consider potential RE hybrid pockets in the State
– SNA to undertake hybrid RE potential assessment at clusters and intimate STU for grid
strengthening in the region
– Cost of strengthening of evacuation infrastructure beyond pooling substation (inter-connection
point) to be borne by STU/Utility
42
Way Forward
• Model Policy Guidelines for Hybrid RE Project development
– Brownfield Hybrid RE projects
– Greenfield Hybrid RE projects
• Model Regulatory Framework for RE Hybrid
– FIT Framework and norms for hybrid RE
– Modifications for Grid connectivity, Metering Code and Planning Code
• Development of Pilot Hybrid RE project scheme
– Support in development of Brownfield hybrid RE project scheme and
implementation support through regulatory process
Thank You
43
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Potential Regulatory Interventions
Grid Code
Part 5 of the Karnataka Electricity Grid Code cover the transmission system planning and security standard. Clause 1.0 under Part 5 of the Grid Code provides the scope of the standards which currently focus on conventional generation sources based transmission planning. The said scope to be amended for including ‘additional criteria for evacuation planning for Wind-Solar Hybrid projects’
Provisions for consideration: The ‘N-1’ criteria may not be applied to the immediate connectivity of wind/solar farms with the grid i.e. the line connecting the farm to the grid and the step-up transformers at the grid station. The thermal line loading limit of the lines connecting the wind machine(s)/farm to the nearest grid point may be assessed considering average annual wind speed of the region. Transmission infrastructure shall be planned on priority to evacuate power from RE pockets (wind-solar resource rich area) of the States...
45
Potential Regulatory Interventions
FIT frame work
RPO framework
GreenfieldKERC to issue the Composite FIT for RE-Hybrid projects specifying tariff norms Tariff norms under Composite FIT order could act as ceiling norms for projects wanting ‘project specific tariff’ in the StateBrownfieldKERC Wind tariff order dated Feb 24, 2015 and Solar tariff order dated July 30, 2015 may be extended to hybrid technology such that Brownfield hybrid projects can avail separate FIT for wind and solar Similar to model PPA for wind & solar technologies, model PPA for hybrid RE projects to be approved by KERC
KERC RPO Regulation, 2011 to is up for amendment (third)Definition of ‘Renewable sources of energy’ in the said regulations, to be amended as below:“Renewable sources of energy means non-conventional, renewable electricity generating sources such as mini hydel, micro-hydel, wind, solar, biomass, urban/municipal waste, hybrid non-conventional sources or such other sources as approved by the MNRE, Govt. of India or Govt. of Karnataka”
46
Potential Utility Process Interventions
PPA for RE
Hybrid
Model PPA for Wind-Solar hybrid projects approved by KERC to
provide clarity on following aspects which shall be considered by
Utility while executing PPA with Hybrid RE projects :
Interconnection Point : HV side of pooling substation
Metering points: at interconnection point as well as at individual
incoming feeders at LV side of the pooling substation and wind
generation and solar generation shall be separately metered.
Joint Meter Reading (JMR) to be carried out both the metering
points (at interconnection point as well as at individual incoming
feeders at LV side of the pooling substation); Utility may be paid
additional administrative charges as approved by the Commission
Generation Credit Note shall be issued separately for wind and
solar generation and separately accounted for.