The Andhra Pradesh Electricity Regulatory Commission (APERC) has approved a tripartite Power Supply Agreement (PSA) allowing the Andhra Pradesh Green Energy Corporation (APGECL), now known as AP Rural Agriculture Power Supply Company (APRAPSCOM), to draw 7 GW of solar power from the Solar Energy Corporation of India (SECI).

The APERC also weighed in on concerns that state power distribution companies (DISCOMs) raised about potential challenges in securing a complete waiver of inter-state transmission system (ISTS) charges provided to renewable energy suppliers.

The introduction of new Grid Network Access (GNA) Regulations by the Central Electricity Regulatory Commission (CERC) after the PSA signing had raised concerns among state DISCOMs that these regulations might jeopardize the anticipated 100% waiver of ISTS charges for the solar power drawal.

The GNA Regulations aim to make accessing the national power grid easier and more inclusive for all producers.

During a recent meeting, CERC officials clarified that applying for GNA-RE status by an agency exclusively involved in renewable energy power supply could be a viable option to secure the 100% ISTS charge waiver for the 7 GW solar power from Rajasthan, as per the GNA Regulations.

Given this information, APERC said that if SECI does not take responsibility for the ISTS charge waiver, APRAPSCOM should consider applying for GNA-RE status under clause 20.4 of the GNA Regulations. This application would require obtaining a No Objection Certificate from the State Transmission Utility to schedule the 7 GW solar power from Rajasthan.

The APERC’s guidance ensures that the project secures a 100% waiver of ISTS charges for the entire agreement period, as initially envisioned.

Back in 2021, the Ministry of Power announced an extension to ISTS charges waiver on solar and wind energy projects commissioned up to June 30, 2025.

Last year, the minister extended the ISTS charges waiver to offshore wind, green hydrogen, and green ammonia projects to facilitate the implementation and expansion of these projects.

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