The Central Electricity Regulatory Commission (CERC) has introduced the draft fourth amendment to its 2020 regulations, expanding the eligibility for transmission charges waiver by adding Renewable Energy Generation Systems (REGS) based on offshore wind to the list of energy sources, which already includes hydropower generation.

The CERC has invited feedback on the Sharing of Inter-State Transmission Charges and Losses (Fourth Amendment) Regulations, 2024, by November 11, 2024.

By another amendment, the CERC has removed the reference to “Hydro Pumped Storage Plant (PSP) Energy Storage Systems (ESS),” refining the criteria for projects that qualify for transmission charge exemptions.

Additionally, two new sub-clauses have been added. One provides a 25-year waiver on transmission charges for pumped hydro energy storage projects that secure contracts by June 30, 2025.

Similarly, the other sub-clause offers a 25-year waiver for offshore wind REGS that begin commercial operations by December 31, 2032. Battery energy storage systems that achieve commercial operation on or before June 30, 2025, will be eligible for a 12-year waiver on transmission charges. The waiver will begin from the date of commercial operation of the energy storage system.

Waivers will apply to REGS or Renewable Hybrid Generation Systems (RHGS) based on wind or solar sources, ESS, new hydro projects, green hydrogen, and green ammonia plants.

Specifically, the amendment indicates that REGS or RHGS that rely on wind or solar energy and battery ESS projects declared commercial operation after June 30, 2025, or hydro-pumped storage projects with construction contracts awarded after the same date will be eligible for a waiver. The waiver of ISTS charges will be calculated based on the methodology detailed under Annexure-III of the CERC document.

ISTS charges waiver for new hydropower projects for which the award of construction work and power purchase agreement is signed after June 30, 2025, will be considered detailed in the table below.

REGS based on offshore wind that begins commercial operations on or after January 1, 2033, will be evaluated as follows:

ISTS charges of waiver for REGS, RHGS (based on wind or solar), ESS, new hydropower projects, green hydrogen, or green ammonia plants will be calculated as follows:

Green hydrogen or green ammonia projects that have a drawal schedule from the following sources will be eligible for a waiver:

Another amendment states any REGS based on wind or solar sources that qualify for a waiver of ISTS charges and has a scheduled commissioning date on or before June 30, 2025, may receive an extension of time to achieve the commercial operation date (COD).

The extension applies to projects with PPAs established with a renewable energy implementing agency, a distribution licensee, or an authorized agency on behalf of a distribution licensee, following tariff-based competitive bidding.

If the extension is due to a force majeure event, such as the unavailability of transmission or other reasons not caused by the REGS, and if the project achieves COD before the extended date, it will be eligible for a waiver of ISTS charges as if it had achieved COD on June 30, 2025.

The extension period will not exceed six months at a time and can be granted a maximum of two times.

A new clause has been introduced under which the transmission deviation will be calculated as the net metered ex-bus injection in a time block that exceeds the sum of the general network access (GNA) to the inter-state transmission system and the connectivity to the state transmission utility (STU) system.

In February, CERC authorized a shadow pilot on power systems and cost optimization through the market coupling of various segments of all three energy exchanges: the Indian Energy Exchange, Power Exchange India, and the Hindustan Power Exchange.

Early last year, the CERC approved the introduction of the Tertiary Reserve Ancillary Services market segment on all three power exchanges.

The article has been updated