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CERC Issues Draft Notification for Amendments to Inter-State Transmission Charges Regulations
CERC's draft notification outlines key amendments to enhance inter-state transmission charges and losses regulations. Changes include dual connectivity provisions, and extended waivers for renewable energy projects, aiming to improve efficiency, transparency, and cost-sharing in India's electricity market.
October 21, 2024. By EI News Network
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The Central Electricity Regulatory Commission (CERC) has announced a draft notification making the new regulations to amend the 'Central Electricity Regulatory Commission (Sharing of Inter-State Transmission Charges and Losses) Regulations, 2020'. The proposed amendments will be titled the 'Central Electricity Regulatory Commission (Sharing of Inter-State Transmission Charges and Losses) (Fourth Amendment) Regulations, 2024'.
The new regulations aim to refine the existing framework governing the sharing of inter-state transmission charges and losses. This is expected to enhance the efficiency and transparency of India’s electricity market.
The current regulations outlines how the costs associated with inter-state transmission of electricity are allocated among various stakeholders, including generating stations, distribution companies, and transmission licensees. One of the primary objectives of these regulations is to ensure a fair and transparent mechanism for cost allocation, promoting equity among all entities involved in the electricity supply chain.
The new regulations aim to refine the existing framework governing the sharing of inter-state transmission charges and losses. This is expected to enhance the efficiency and transparency of India’s electricity market.
The current regulations outlines how the costs associated with inter-state transmission of electricity are allocated among various stakeholders, including generating stations, distribution companies, and transmission licensees. One of the primary objectives of these regulations is to ensure a fair and transparent mechanism for cost allocation, promoting equity among all entities involved in the electricity supply chain.
A significant aspect of the proposed amendments is to provide further encouragement for the development of renewable energy projects in India. The amendments aim to create additional incentives for renewable energy generation, particularly in solar, wind, and hydroelectric sectors. For instance, the regulations propose waivers on transmission charges for Hydro Pumped Storage Projects (PSP ESS) that award contracts before June 30, 2025, offering a 25-year waiver from their commercial operation date (COD). Similarly, Renewable Energy Generating Stations (REGS) based on offshore wind that achieve COD before December 31, 2032, will also benefit from similar waivers.
The amendments also seek to enhance the regulations' adaptability to the evolving energy landscape. They introduce phased waivers for various types of renewable projects based on their COD or the awarding of construction contracts. This structured approach not only incentivizes timely project execution but also fosters a competitive environment in the renewable energy sector.
Also, the proposed changes address the need for clarity regarding the charges associated with Terminal Bays at inter-state transmission substations. The connectivity grantees and developers will be required to pay yearly transmission charges for terminal bays corresponding to connectivity capacity that has not yet achieved COD.
Moreover, the regulations also provide clarity on situations where renewable energy generation systems face delays due to force majeure events. If projects receive extensions due to circumstances beyond their control and achieve COD before the extended date, they will still qualify for the stipulated waivers.
The CERC's draft notification represents a proactive step in adapting India’s electricity regulations to support the growth of renewable energy and improve the efficiency of the inter-state transmission system.
It may be noted that the Stakeholders in the energy sector are encouraged to review the draft notification and participate in the consultation process as the CERC prepares to finalise these important amendments.
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