CERC Approves Transmission License to Evacuate 3 GW of Renewable Energy in Gujarat

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The Central Electricity Regulatory Commission (CERC) recently granted a transmission license to Khavda-Bhuj Transmission to establish the 3 GW of renewable energy injection network at the Khavda pooling station under Phase-I.

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

Khavda-Bhuj Transmission had filed the petition to grant the transmission license to establish the transmission program to e evacuate 3 GW of renewable energy injected at the Khavda pooling station under Phase-I on a build, own, operate, and maintain basis.

Background


Based on the competitive bidding carried out by PFC Consulting, Khavda-Bhuj Transmission emerged as the successful bidder with the lowest levelized transmission charges of ₹1 billion (~$12.83 million) per annum.

The provider was directed to file an affidavit that the transmission project execution should not be delayed due to the time taken to obtain statutory clearances required under the request for proposal (RfP) and the transmission service agreement.

Khavda-Bhuj Transmission had submitted that claim, if any, would be in accordance with the provisions of the RfP documents.

Commission’s analysis

The Commission observed that the petitioner should provide a monthly progress report along with the likely completion date of each project element and its likely execution to CEA. A random inspection may be carried out by CEA and the central transmission utility (CTU) as and when deemed necessary.

The central regulator noted that it was satisfied that the transmission service provider met the requirements under regulations for granting a transmission license. It directed that the transmission license be granted to Khavda-Bhuj Transmission to establish the transmission program to evacuate 3 GW of renewable energy.

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

  • The transmission license should, unless revoked earlier, remain in force for 25 years from the date of issue.
  • The transmission licensee should comply with the provisions of the transmission license regulations and the terms and the conditions of the transmission service agreement
  • Since the expiry as per the transmission service agreement is 35 years, the licensee may make an application, two years before the expiry of the license period, for the grant of license for another term.
  • The licensee should comply with the directions of the National Load Despatch Center or the Regional Load Despatch Center.
  • The licensee should provide non-discriminatory open access to its transmission system for use by any other licensee, including a distribution licensee, an electricity trader, a generating company, or any other person.
  • The licensee should not undertake any other business for optimum utilization of the transmission system without prior intimation to the Commission.
  • The licensee should ensure the execution of the project within the timeline specified in the transmission service agreement and as per the CEA’s technical and grid standards.
  • The licensee should submit information as required under the transmission license regulations, the standard of performance regulations, transmission service agreement, or any other regulation.

Last December, CERC approved the execution of the transmission system for the evacuation of 8 GW of power from solar energy zones and wind energy zones in the southern region.

Earlier, CERC granted a transmission license to Bikaner-II Bhiwadi Transco, a special purpose vehicle of Power Grid Corporation of India, to establish a transmission system strengthening program for evacuation of power from solar energy zones in Rajasthan (8.1 GW) under Phase II-Part F, on build, own, operate, and maintain basis.

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