Interstate transmission of renewable capacity: Revised guidelines from CERC
Renewable energy is the way forward, and the government’s push towards it has been visible in recent years. The capacity of renewable energy in India has grown at a compound annual growth rate (CAGR) of 17.33% from 2009-10 to 2020-21. However, the transmission of renewable energy to other states has been a challenge. To address this issue, the Central Electricity Regulatory Commission (CERC) has come up with revised guidelines for “Grant of connectivity to projects based on renewable energy sources to inter-State transmission system.”
The revised guidelines aim to facilitate the smooth transmission of renewable energy from one state to another. Let’s take a closer look at the salient features of the revised procedure:
Relaxation in Bank Guarantee
Under the new guidelines, provisions related to Bank Guarantee have been relaxed. The Conn-BG2 amount shall be forfeited, and any excess amount submitted as Conn-BG under the Pre-revised Procedure shall be refunded.
Updated Status of Allocation of Bays
The Central Transmission Utility (CTU) shall display the updated status of allocation of bay(s) at the existing or the proposed ISTS sub-stations on its website on a weekly basis. This would enable the applicants to make informed decisions while applying for Stage-II Connectivity.
Change in the Location of the Project
Change in the location of the project keeping the connectivity with ISTS substation same shall not be construed as material change in location under the first proviso to Regulation 8(1) of Connectivity Regulations.
Separate Stage-II Connectivity for Each Location
An entity implementing the Renewable Hybrid Generating Station(s) including Round the Clock Hybrid Project, shall be eligible to apply for separate Stage-II Connectivity for each location based on the same Letter of Approval (LOA) or Power Purchase Agreement (PPA), for the capacity of the project not exceeding the quantum of power for which LOA has been awarded or PPA has been signed.
Rearrangement or Shifting of Stage-II Connectivity
On a specific request of Stage-II Connectivity grantees and for the purpose of optimal utilization of transmission infrastructure, CTU may, after consultation with the Stage-II Connectivity grantees concerned, carry out rearrangement or shifting of the Stage-II Connectivity across different bay(s) of the same ISTS sub-station.
Common Bay Connectivity
Two or more applicants may apply for Stage-II Connectivity at a common bay along with an agreement duly signed between such applicants for sharing the Dedicated Transmission Line. The Stage-II Connectivity shall be granted to such applicants subject to the availability of capacity in the Dedicated Transmission Line.
The revised guidelines for “Grant of connectivity to projects based on renewable energy sources to inter-State transmission system” are a step towards a greener future. The guidelines aim to facilitate the smooth transmission of renewable energy from one state to another. By making the process more accessible and efficient, the government is providing a boost to the renewable energy sector in India. It is a welcome move and is likely to encourage more companies to invest in renewable energy projects.
Table: Summary of CERC Guidelines for “Grant of Connectivity to Projects Based on Renewable Energy Sources to Inter-State Transmission System”
|Relaxation in Bank Guarantee||Conn-BG2 amount shall be forfeited, and any excess amount submitted as Conn-BG under the Pre-revised Procedure shall be refunded.|
|Updated Status of Allocation of Bays||CTU shall display the updated status of allocation of bay(s) at the existing or the proposed ISTS sub-stations on its website on a weekly basis.|
|Change in the Location of the Project||Change in the location of the project keeping the connectivity|