The Central Electricity Regulatory Commission (CERC) recently granted a transmission license to Gadag II-A Transmission to establish a transmission system for the solar energy zone in Gadag (1.5 GW).

It directed the Central Electricity Authority (CEA) to monitor the execution of the project and bring to its notice any lapse on the licensee’s part to meet the project’s completion schedule.

Gadag II-A Transmission, a special purpose vehicle of ReNew Transmission Ventures, had filed a petition to develop a transmission system for the solar energy zone on a build, own, operate, and transfer basis.

Background

In February last year, REC Power Development and Consultancy (RECPDCL) issued a tender to build an interstate transmission (ISTS) project on a build, own, operate, and transfer basis to evacuate 1.5 GW of renewable energy in Gadag.

Based on the competitive bidding carried out by RECPDCL, ReNew Transmission was declared the successful bidder with the lowest quoted annual transmission charges of ₹2.45 billion (~$29.59 million).

 After considering the application of the transmission licensee in light of the provisions of the Electricity Act and the Transmission License Regulations, the Commission proposed to grant the transmission license to the petitioner.

Gadag II was directed to furnish information about the quality control mechanism available or to be put in place to ensure compliance with the requirements per the provisions of the Transmission Service Agreement.

The company clarified it had coordinated with both the transmission licensees, i.e., Koppal-Narendra Transmission and Gadag Transmission, regarding the availability of required space for the substation, bays, and augmentation works to be done by Gadag II-A Transmission. It had also visited both the Koppal and Gadag substations and was aware of their layout.

Commission’s analysis 

The Commission observed that the transmission provider met the requirements of the Electricity Act and the Transmission Licence Regulations for the grant of a transmission license.

Accordingly, the Commission granted the transmission license to Gadag II-A Transmission to establish the transmission system.

The Commission noted that the grant of the transmission license would be subject to the following conditions:

• The transmission license will remain in force for 25 years from the date it is issued.
• The transmission licensee should comply with the provisions of the transmission license regulations.
• The TSA specifies that the expiry date for the project is 35 years from its scheduled commercial operation date. Therefore, if the initial license period is nearing expiration, the licensee can apply for another term by applying two years before the expiry date.
• While holding the transmission license, the licensee is prohibited from engaging in any electricity trading business or entering into related contracts.
• The licensee should comply with the directions of the National Load Despatch Center or the Regional Load Despatch Center.
• The licensee should remain bound by the Central Electricity Regulatory Commission (Standard of Performance of Interstate Transmission Licensees) Regulations, 2012.
• The licensee must offer unbiased and unrestricted open access to its transmission system to any other licensee, including distributors, electricity traders, generating companies, and individuals.
• The licensee should not undertake any other business for optimum utilization of the transmission system without prior intimation to the Commission.
• The licensee should remain bound by provisions of the Central Electricity Regulatory Commission (Sharing of Interstate Transmission Charges and Losses) Regulations, 2020.
• The licensee should remain bound by the provisions of the Electricity Act, the Transmission Licence Regulations, the Grid Code, and the standards specified by CEA.
• The licensee should ensure the execution of the project within the specified timeline.
• The licensee should submit all information as may be required under Transmission Licence Regulations, Standard of Performance Regulations, TSA, or any other regulation of the Commission or as per the directions of the Commission issued from time to time.

In June last year, CERC had granted a transmission license to Karur Transmission to evacuate 1,000 MW of renewable power from the Karur/Tiruppur wind energy zone in Tamil Nadu under Phase-I.

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