Power Regulator CERC Boosts Merchant Renewable Energy Plants

The detailed procedure that commission has issued would grant long and medium-term transmission access to the renewable project that has achieved financial closure and has already acquired land for the project.

While proposing stringent rules against line underutilization, Power regulator Central Electricity Regulatory Commission (CERC) has issued guidelines that would pave way for serious merchant renewable power plants for long-term transmission access.

The detailed procedure that commission has issued would grant long and medium-term transmission access to the renewable project that has achieved financial closure and has already acquired land for the project.

The connectivity procedure had become as because earlier renewable energy projects were connected to state transmission units and not directly to the inter-state transmission system. Developers had last week strongly urged that forthcoming NTPC and Solar Energy Corporation of India auctions be postponed till such guidelines were finalized.

There were also concerns a large numbers of applicants are squatting on connectivity bays allotted at power evacuation substations. CERC has now put safeguards to ensure connectivity with the grid is granted only to serious players who are in possession of land and have achieved financial closure.

The move was welcomed by experts who believe it will encourage setting up merchant renewable plants and sale of electricity in open market. It would mean huge relief at the time when spot power prices are higher at over Rs 3 per unit against Rs 2.4 – 2.8 per unit of auction based tariff.

Ravinder Kumar, former chairperson of Central Electricity Authority and consultant on renewable energy and transmission planning said,  “This a significant reform to weed out non-serious applicants of grid connectivity making a mockery of open access.”

Source: ET