No Transmission Charges For Use of ISTS Network For Solar and Wind Projects : CERC

Network Planning Group under PM Gati Shakti Gives Nod to Infra Project on Renewable Energy

CERC amends regulations for sharing of Inter-state Transmission Charges & Losses to levy no charges for use of the ISTS-Network for Solar and Wind projects.

The Central Electricity Regulatory Commission (CERC) has issued an amendment for the Central Electricity Regulatory Commission (Sharing of Inter-State Transmission Charges & Losses) Regulations, 2010.

According to the latest amendment, which is now the sixth amendment to the Regulations which were first formulated in 2010, “No transmission charges and losses for the use of the ISTS network will be payable for the generation based on solar and wind power resources for a period of 25 years from the date of commercial operation.”

This exemption from payment of transmission charges is hinged upon the fulfilling of the following conditions by the projects:

Firstly, the generation capacity of the solar and wind projects should have been awarded through a competitive bidding process in accordance with the guidelines issued by the Central Government;

Secondly, the generation capacity should have been declared under commercial operation between February 13, 2018, till March 31, 2022.

And finally, the Power Purchase Agreement(s) should have been executed for sale of such generation capacity to all entities including Distribution Companies.

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Recently, CERC, in accordance with the guidelines on import and export of electricity issued by the Ministry of Power earlier this year, has issued new guidelines for the seamless cross border trade of electricity.

These regulations will apply to the participating entities in India and neighbouring countries which are engaged in cross-border trade of electricity with India. Cross-border trade of power between India and the neighbouring countries will be allowed through mutual agreements between Indian entities and entities of the neighbouring countries under the overall framework of CERC (Cross Border Trade of Electricity Regulations), 2019.

In case of tripartite agreements, the cross-border trade of electricity across India will be allowed under the overall framework of bilateral agreements signed between Government of India and the governments of the respective neighbouring countries of the participating entities.