CERC Takes Into Account PSPs, Offshore Wind, Changes Transmission Rules

CERC Takes Into Account PSPs, Offshore Wind, Changes Transmission Rules

The Central Electricity Regulatory Commission (CERC) has made changes to the rules about how costs are shared for using the Inter–State Electricity Transmission System (ISTS) These new rules have been named CERC (Sharing of Inter-State Transmission Charges and Losses) (Fourth Amendment) Regulations, 2024.

For power plants that connect to both the national (inter-State) and local (intra-State) electricity grids, the new CERC rule explains how extra power flows (called transmission deviations) will be calculated. These deviations will now be measured as the amount of power sent to the grid that goes beyond the agreed limits for both the national and local grids.

The new CERC Regulation proposed to make amendments to Section 12 of the principal regulation to bring more clarity on the issue of power plants having dual connections-ISTS and Intra State Transmission System. The new regulations added a new provision in the Section. Section 12 of the principal act taled about transmission deviation. The original rule talked about the transmission deviation in MW and its calculation.

Subsection (a) of the original regulation said, “For a generating station, net metered ex-bus injection, in a time block in excess of the sum of Long Term Access, Medium Term Open Access and Short Term Open Access: Provided that for a hydro-generating station, overload capacity of 10% during peak season shall be taken into account”

The new regulation added a new provision to the same. It added, “Provided also that for a Generating Station having dual connectivity to both inter- 2 State transmission system and intra-State transmission system, the transmission deviation shall be computed as net metered ex-bus injection, in a time block in excess of (GNA to the inter-State transmission system + Connectivity with STU system).”

The amendment also offers big benefits for certain types of energy projects. Hydro power projects using Pumped Storage (Hydro PSP ESS) and offshore wind farms that start working by certain deadlines will get major reductions in the costs they pay for using the interstate electricity grid. The new regulations proposed to include waiver of transmission charges for hydro PSP energy storage systems and offshore wind

For instance, Hydro PSP ESS awarded by June 2025 and offshore wind projects operational by December 2032 will enjoy 25 years of waived transmission charges. Battery energy storage systems (BESS), critical for stabilizing renewable energy supply, will get a 12-year waiver if operational by mid-2025. These provisions are expected to attract more investment into large-scale renewable projects, which require considerable upfront costs but can benefit from reduced long-term operational expenses under these new rules.

There are more benefits for renewable energy projects, like wind and solar farms, hydro projects, and battery systems, depending on when they start operating. Green Hydrogen and Green Ammonia plants will also get transmission cost breaks if they meet certain deadlines. Additionally, the changes include new rules on how costs for terminal bays (connection points to the grid) will be shared if projects are delayed.