NTPC Gets Category I License for Inter-State Trading of Electricity

In a significant development for the country’s power sector, the Central Electricity Regulatory Commission (CERC) has granted a ‘Category I Electricity Trading License’ to the National Thermal Power Corporation (NTPC) for electricity trading.

This license will help the NTPC in implementing renewable projects, especially solar and wind, across the country.

The central commission has issued the trading license keeping in mind the Ministry of New and Renewable Energy (MNRE)’s plan to implement 20 GW of solar PV projects for which the NTPC has been identified as the nodal agency.

In May 2019, the CERC had proposed granting NTPC an interstate electricity trading license. Given the government’s policies toward promoting renewable energy, the CERC had relaxed the current ratio and liquidity ratio requirement in public interest and had invited comments on the proposal.

At the same time, the NTPC had submitted to the commission that during the period allowed in the trading license, it would not apply for any transmission license before any concerned authority without surrendering the trading license granted to it.

Since no suggestions or objections were submitted, the Central Commission decided to issue ‘Category I Trading License’ to the NTPC. In its order, the CERC has stated that the NTPC will not trade electricity generated by it based on this license, but it can purchase and sell power involving other entities.

Further, if the NTPC fails to undertake to trade in electricity within one year from the date of grant of this license, it will be revoked.

According to Mercom’s India Solar PV Project Tracker, the NTPC has 873 MW of solar PV projects under operation and 268 MW of solar PV project under various stages of development. In line with the MNRE’s plan, it has already selected wind and solar power project developers for the implementation of projects and procurement of a cumulative capacity of 1,150 MW wind power and 2,000 MW solar PV.