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					</table><p>Chhattisgarh, which has traditionally relied on coal sources for its energy requirements, has recently seen a surge in solar capacity additions, accounting for about 5% of the 13.6 GW installed capacity in the state as of September 2023.</p>
<p>The state has witnessed a dramatic increase in open access solar from 3 MW in the second quarter (Q2) of 2023 to 28 MW in Q3 2023, according to <a href="https://www.mercomindia.com/product/q3-2023-mercom-india-solar-open-access-market-report" target="_blank" rel="noopener">Q3 2023 Mercom India Solar Open Access Market Report</a>.</p>
<p>By the end of September 2023, Chhattisgarh&#8217;s cumulative open access solar capacity reached 380.7 MW, making it the ninth highest in the country, accounting for 3.5% of the country’s total.</p>
<p>The state&#8217;s recent policy adjustments, particularly certain exemptions for open access, have decisively boosted Chhattisgarh&#8217;s overall solar capacity.</p>
<p>The Chhattisgarh State Electricity Regulatory Commission (<a href="https://cserc.gov.in/" target="_blank" rel="noopener">CSERC</a>) <a href="https://www.mercomindia.com/distributed-solar-projects-chhattisgarh-exempted-transmission-charges" target="_blank" rel="noopener">amended</a> the Grid-Interactive Distributed Renewable Energy Sources Regulations 2019 to provide financial incentives for the development of open access solar projects.</p>
<p>The amendments exempt the first 500 MW of such projects from transmission, wheeling, state load dispatch center (SLDC) charges, and the cross-subsidy surcharge for the entirety of their operational life.</p>
<p>This exemption was applicable to projects that achieved commercial operation by December 27, 2023.</p>
<p><strong>Policy Reboot Driving Renewables</strong></p>
<p>The exemptions granted on surcharge accelerated solar capacity additions under open access.</p>
<p>Ashish Verma, Vice President of Business Development at <a href="https://www.gensol.in/" target="_blank" rel="noopener">Gensol</a>, confirmed the positive impact of the policy changes on the market. “With Chhattisgarh being home to numerous heavy industries, including steel and metal, and the emergence of decarbonization plans, the state is witnessing a positive shift.”</p>
<p>Taking advantage of Chhattisgarh&#8217;s favorable open access policy, developers are actively exploring the state&#8217;s potential for renewable energy projects. According to Mercom India’s research, a 20% quarterly increase in the state&#8217;s open access solar capacity by the end of the fourth quarter of 2023 is likely.</p>
<p>The regulations also aim to democratize access by reducing the minimum power contract requirement from 500 kW to 100 kW, making it possible for even smaller consumers to adopt solar.</p>
<p>Surajit Chanda, AVP of Business Development of <a href="https://www.adityabirlarenewables.com/" target="_blank" rel="noopener">Aditya Birla Renewables</a>, said, “Incentives are pivotal to attracting developers to a state, ensuring savings on the project cost. Karnataka&#8217;s success with similar measures five years ago serves as a testament to the effectiveness of such approaches. The state is experiencing growth, and with increasing confidence in the market, more relaxations are welcome, which will catalyze a boost. Chhattisgarh has had a promising start and is poised to become a prime destination for open access developers to sell power.&#8221;</p>
<p>The state&#8217;s exemptions on open access charges have also prompted commercial and industrial (C&amp;I) customers to consider transitioning to solar through open access models, with the aim of achieving significant cost savings on their energy expenses.</p>
<p>The C&amp;I consumers stand to benefit substantially, with industrial consumers expected to save ₹3.55 ($0.04)/kWh and commercial consumers ₹4.75 ($0.05)/kWh. The state extends exemptions on charges for all open access models, including third-party arrangements.</p>
<p><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-62275" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/01/Chhattisgarh-Net-Savings-For-OA-with-Exemption.png" alt="Chhattisgarh Net Savings For OA with Exemption" width="698" height="447" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/01/Chhattisgarh-Net-Savings-For-OA-with-Exemption.png 698w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/01/Chhattisgarh-Net-Savings-For-OA-with-Exemption-300x192.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/01/Chhattisgarh-Net-Savings-For-OA-with-Exemption-650x415.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/01/Chhattisgarh-Net-Savings-For-OA-with-Exemption-624x400.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/01/Chhattisgarh-Net-Savings-For-OA-with-Exemption-600x384.png 600w" sizes="(max-width: 698px) 100vw, 698px" /></p>
<p>Chhattisgarh&#8217;s distribution companies (DISCOMs) have also been instrumental in promoting open access projects with their robust energy banking policy.</p>
<p>The energy banking policy includes the provision for annual energy banking, accompanied by a reduction in banking charges from 5% to 2%. Additionally, all open access consumers are now permitted to bank 100% of their surplus energy annually.</p>
<p>Collectively, these measures present an attractive and financially favorable opportunity for both renewable energy developers and consumers.</p>
<p>Operational solar projects in the state and those slated for commissioning in the coming quarters may find benefits in the favorable energy banking policy outlined in the amended regulations.</p>
<p>With the aim of streamlining calculations and improving transparency for intra-state open access participants, CSERC has imposed a 20% ceiling on the cross-subsidy surcharge applicable to open access power consumers, determined by the average power supply cost.</p>
<p>Effective from April 1, 2024, this modification offers stakeholders a more defined and predictable long-term outlook regarding their net landed energy costs.</p>
<p>For projects commissioned after December 2023, the amendments offer long-term visibility by determining cross-subsidy surcharges for twelve years from the project&#8217;s operation date.</p>
<p><strong>Current Challenges</strong></p>
<p>The introduction of the incentives is a response to the historical underutilization of open access markets for renewables in Chhattisgarh. But challenges still remain.</p>
<p>Verma highlighted the unique challenges of the state and why Chhattisgarh had remained a dormant open access market. He said many projects, especially captive ones, received approvals before 2019. However, the onset of the COVID-19 pandemic presented a new dynamic for Chhattisgarh, disrupting planned price structures and rendering them unviable.</p>
<p>“In response, developers adopted a &#8216;wait and watch&#8217; approach, navigating the uncertainties brought about by the pandemic for the state&#8217;s developmental trajectory,&#8221; he said.</p>
<p>Nilesh Mahajan, Director at <a href="https://roofsol.com/" target="_blank" rel="noopener">Roofsol Energy</a>, however, noted that there is currently more momentum for rooftop solar among C&amp;I consumers compared to open access. Mahajan noted that open access projects require a well-established infrastructure, without which developers are likely to encounter challenges in executing projects in this domain.</p>
<p>“We have seen an acceleration in recent years. Earlier, Chhattisgarh was not a good market. I believe the lack of infrastructure is still prominent. For instance, in other states like Maharashtra and Madhya Pradesh, open access is robust. Maharashtra has the highest generating capacity and caters to 20-25 GW of power. But this isn’t the case with Chhattisgarh. There are limitations in its generating capacity in order to ensure that the grid remains stable.”</p>
<p>Verma emphasized the importance of thorough preparation for the anticipated growth in renewables and that DISCOMs need to adapt to the higher percentage of renewables in the system. According to him, managing 1 GW of projects compared to managing a substation, which would support those 1 GW projects, presents a distinctly different challenge.</p>
<p>Rahul Mishra, Sr VP &amp; Head C&amp;I at <a href="https://blupineenergy.com/" target="_blank" rel="noopener">BluPine Energy</a>, said, &#8220;The recent amendments in Chhattisgarh&#8217;s electricity regulations will not significantly impact our solar projects; incentives were expected to be temporary triggers. We foresee continued scalability with the new policy. We believe that the projects in Chhattisgarh will continue to be economically viable, provided that land challenges are successfully managed and that banking provisions for 100% generation are adhered to. There may be short-term impacts, but stability is anticipated.&#8221;</p>
<p>Chanda spoke about another crucial roadblock stemming from the amendment. &#8220;While the initial policy lacked caps on transmission or wheeling charges, rendering the market highly attractive, the amendment introduced a 500 MW cap, causing policy uncertainty and adversely affecting investor confidence.”</p>
<p>Without the exemption of charges on captive and group captive green open access models would result in substantial savings for industrial consumers. While industrial consumers would save ₹3.55 ($0.04)/kWh with the exemption on charges, the savings would fall to ₹2.91 ($0.035)/kWh without the exemptions.</p>
<p>For commercial consumers, savings under the third-party model would fall from ₹4.75 ($0.05)/kWh with exemptions to ₹1.76 ($0.021)/kWh without. Under the captive and group captive model, without the exemption of charges, the savings would still be substantial at ₹4.11 ($0.049)/kWh.</p>
<p><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-62276" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/01/Chhattisgarh-Net-Savings-For-OA-without-Exemption.png" alt="Chhattisgarh Net Savings For OA without Exemption" width="693" height="440" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/01/Chhattisgarh-Net-Savings-For-OA-without-Exemption.png 693w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/01/Chhattisgarh-Net-Savings-For-OA-without-Exemption-300x190.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/01/Chhattisgarh-Net-Savings-For-OA-without-Exemption-650x413.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/01/Chhattisgarh-Net-Savings-For-OA-without-Exemption-624x396.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/01/Chhattisgarh-Net-Savings-For-OA-without-Exemption-600x381.png 600w" sizes="(max-width: 693px) 100vw, 693px" /></p>
<p>Chanda said this underscores the need for clearer timelines in project planning. Despite concerns expressed in public hearings and applications to the government, the Commission&#8217;s decisions have not been favorable. Stakeholders are advocating for waivers for projects in advanced stages of development, particularly those that have procured materials outside the 500 MW allotted capacity.</p>
<p>According to Mercom sources, there is no further update if the deadline of December 27, 2023 will be extended or if the project capacity cap (500 MW) eligible for exemption will be increased.</p>
<p>While the policy has played a favorable element in boosting the open access capacity in the state, a more simplified and clearer approach to these policies would help the open access market grow further.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/gautamee-hazarika/" class="vcard author" rel="author"><span class="fn">Gautamee Hazarika</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
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<p><strong style="text-decoration: underline">Gautamee,</strong> Staff reporter at Mercom India<br />
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<a href="gautamee@mercomindia.com" target="_blank" rel="noopener">gautamee@mercomindia.com</a></p>
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<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Picture1.jpg" width="102" height="102" /><a href="https://mercomindia.com/author/gautamee-hazarika/" rel="noopener">Gautamee</a> is a reporter at Mercom India. Prior to Mercom, Gautamee was working as a multimedia news journalist at ThePrint in New Delhi. She has received her Bachelors in English Honors and Masters in English Literature from St.Stephen&#8217;s College, University of Delhi.<a href="https://mercomindia.com/author/gautamee-hazarika/" rel="noopener">More articles from Gautamee</a></div>
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Chhattisgarh’s Open Access Solar Projects Surge With Policy Boost


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					</table><p><a href="https://www.adanigreenenergy.com" target="_blank" rel="noopener">Adani Green Energy</a>, <a href="https://ntpcrel.co.in/" target="_blank" rel="noopener">NTPC Renewable Energy</a>, <a href="https://www.upcrenewables.com/" target="_blank" rel="noopener">UPC Renewables</a>, <a href="https://sprngenergy.com/" target="_blank" rel="noopener">Sprng Energy</a>, and <a href="https://www.adityabirlarenewables.com/" target="_blank" rel="noopener">Aditya Birla Renewables</a> emerged as the top utility-scale solar project developers in the first half (1H) of the calendar year (CY) 2023, according to Mercom’s newly released <a href="https://www.mercomindia.com/product/mercoms-india-solar-market-leaderboard-1h-2023-market-shares-profiles" target="_blank" rel="noopener"><em>India Solar Market Leaderboard 1H 2023</em></a>.</p>
<p>The report covers market shares and rankings across the Indian solar supply chain and provides the most accurate and comprehensive coverage of India’s solar industry leaders.</p>
<p>Adani Green Energy topped with a market share of 21.4%, followed by NTPC Renewable Energy and UPC Renewables with 6.3% and 5.5%, respectively. Sprng Energy and Aditya Birla Renewables had a market share of 4.4% each.</p>
<p>The top five utility-scale solar developers accounted for almost 42% of the market share.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/Utility-scale-2023.png"><img decoding="async" loading="lazy" class="aligncenter wp-image-59989 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/Utility-scale-2023.png" alt="Utility scale 2023" width="650" height="436" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/Utility-scale-2023.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/Utility-scale-2023-300x201.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/Utility-scale-2023-624x419.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/11/Utility-scale-2023-600x402.png 600w" sizes="(max-width: 650px) 100vw, 650px" /></a></p>
<p>Adani Green signed a UN Energy Compact, committing to develop and operate a renewable energy generation capacity of 25 GW by 2025 and 45 GW by 2030.</p>
<p>In 1H 2023, Adani Green Energy commissioned a 525 MW solar project in Rajasthan as part of a new hybrid power plant comprising 600 MW solar and 510 MW wind capacity.</p>
<p>During the same period, the company commissioned 62.5 MW of SECI’s 1.2 GW ISTS tranche III project in Rajasthan. Adani had commissioned 900 MW of the same project in the last year.</p>
<p>NTPC Renewable Energy aims to commission 60 GW of renewable energy capacity by 2032.</p>
<p>During the first half of 2023, NTPC Renewable Energy signed contracts to supply 1.8 GW of round-the-clock renewable power.</p>
<p>During the same period, NTPC also commissioned 150 MW of solar project in Rajasthan.</p>
<p>UPC Renewables has a 593 MW portfolio of jointly-owned operating and under-construction assets in Indonesia, India, and Vietnam.</p>
<p>The company commissioned 150 MW of SECI’s 960 MW ISTS-VI projects in Madhya Pradesh during 1H 2023.</p>
<p>Mercom’s India Solar Market Leaderboard report covers the market landscape across the entire supply chain. For the detailed and comprehensive report, <a href="https://www.mercomindia.com/product/mercoms-india-solar-market-leaderboard-1h-2023-market-shares-profiles" target="_blank" rel="noopener"><em>click here</em></a>.</p>
<p>Also, the <a href="https://www.mercomindia.com/product/mercoms-india-solar-market-share-tracker" target="_blank" rel="noopener"><em>Market Share Tracker</em></a>, which gives data insights into your competitors and their growth rates on a quarterly basis, is now available.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/arjun-joshi/" class="vcard author" rel="author"><span class="fn">Arjun Joshi</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Arjun-Joshi-1.png" width="50" /></p>
<p><strong style="text-decoration: underline">Arjun Joshi,</strong> Staff reporter at Mercom India<br />
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<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Arjun-Joshi-1.png" width="86" height="102" /><a href="https://mercomindia.com/author/arjun-joshi/" target="_blank" rel="noopener"><strong style="color: #00b451">Arjun Joshi</strong> </a>is a staff reporter at Mercom India. Before joining Mercom, he worked as a technical writer for enterprise resource software companies based in India and abroad. He holds a bachelor’s degree in Journalism, Psychology, and Optional English from Garden City University, Bangalore. <a href="https://mercomindia.com/author/arjun-joshi" target="_blank" rel="noopener">More articles from Arjun Joshi.</a></p>
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Adani Green, NTPC and UPC Top Utility-Scale Solar Developers in 1H 2023

<p>The Government of Odisha has approved four industrial projects, including three grain-based ethanol plants and one solar project estimating ₹15.84 billion (~$213 million) in investments. These projects together are expected to create more than 1,000 jobs in the state.</p>
<p>The projects were approved during the 102<sup>nd</sup> meeting of the State-Level Single Window Clearance Authority held last week.</p>
<p>The Odisha government approved an 18.75 MW solar project by Aditya Birla Renewables against an investment of ₹894 million (~$12 million) to be set up at Saintala, Balangir district, which could create 28 new jobs.</p>
<p>In 2018, Aditya Birla Renewables had <a href="https://mercomindia.com/l1-tariff-2-79-gridco-200-mw-solar-auction/" target="_blank" rel="noopener">won</a> the bid to develop 75 MW of solar projects in Odisha quoting ₹2.79 (~$0.0406)/kWh in an auction held by the Grid Corporation of Odisha (<a href="http://www.gridco.co.in/View/Home.aspx" target="_blank" rel="noopener">GRIDCO</a>). The projects are operational since 2020.</p>
<p>Aditya Aluminium, a unit of the <a href="https://www.adityabirla.com/" target="_blank" rel="noopener">Aditya Birla Group</a>, has also set up a 24 MW solar project at Lapanga in the Sambalpur district of Odisha.</p>
<p>The state government also approved a 500-kilo liter per day (KLPD) grain-based ethanol plant and an 8 MW co-generation (co-gen) power project by the Indian Oil Corporation (<a href="https://iocl.com/" target="_blank" rel="noopener">IOCL</a>) against an investment of ₹8.7 billion (~$117 million). The plant would be set up in Balgopalpur Industrial Estate, Balasore, which will generate over 194 potential employment opportunities.</p>
<p>The government also approved Hindustan Petroleum Corporation’s (<a href="https://www.hindustanpetroleum.com/" target="_blank" rel="noopener">HPCL</a>) ethanol plant (in two phases) against an investment of ₹5 billion (~$67.2 million) to be set up in Umerkote, in Nabarangpur district, expected to generate about 240 new employment opportunities.</p>
<p>Lastly, the state-approved Newalt Energy’s 100 KLPD grain-based ethanol plant along with compressed biogas plant of 12 tons per day capacity and 2.20 MW co-gen power project against an investment of ₹1.25 billion to be set up at Nuakheta, Bantala, in Angul district, generating over 650 new jobs.</p>
<p>In a press release, the state government has stated that the Government of India has fixed a target of 10% blending of fuel-grade ethanol with petrol by 2022 and 20% blending by 2025.</p>
<p>The Ministry of Road Transport and Highways had <a href="https://mercomindia.com/government-approves-ethanol-gasoline-automotive-fuel/" target="_blank" rel="noopener">greenlit</a> the use of E20 – a blend of 20% ethanol and 80% gasoline – as an automotive fuel. Mass emission standards for the use of E20 have also been notified in the Central Motor Vehicles (Fourth Amendment) Rules, 2021, which came into force on March 8, 2021.</p>
<p>The <a href="https://dfpd.gov.in/index.htm" target="_blank" rel="noopener">Department of Food &amp; Public Distribution</a> has <a href="https://mercomindia.com/government-financial-ethanol-production/4" target="_blank" rel="noopener">announced</a> that it would extend financial assistance to project proponents to enhance their ethanol distillation capacity. The move is in line to achieve 20% blending with crude oil by 2025 and enhancing ethanol production capacity in the country.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/rahul-nair/" class="vcard author" rel="author"><span class="fn">Rahul Nair</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><p>Rahul is a staff reporter at Mercom India. Before entering the world of renewables, Rahul was head of the Gujarat bureau for The Quint. He has also worked for DNA Ahmedabad and Ahmedabad Mirror. Hailing from a banking and finance background, Rahul has also worked for JP Morgan Chase and State Bank of India. <a href="https://mercomindia.com/author/rahul-nair/" rel="noopener noreferrer">More articles from Rahul Nair.</a></p>
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Odisha Government Invests ₹15.84 Billion for Ethanol Cogeneration and Solar Projects

<p>The Andhra Pradesh Electricity Regulatory Commission (<a href="http://www.aperc.gov.in/" target="_blank" rel="noopener">APERC</a>), in a recent order, ruled in favor of a solar power generator, stating the Southern Power Distribution Company of Andhra Pradesh Limited (<a href="https://www.apspdcl.in/index.jsp" target="_blank" rel="noopener">APSPDCL</a>) was not entitled to recover wheeling charges and losses regarding the connectivity of a 20 MW solar project with 132/33 kV Sambepalli substation of Transmission Corporation of Andhra Pradesh (<a href="https://aptransco.co.in/" target="_blank" rel="noopener">APTRANSCO</a>).</p>
<p>The Commission said that the petitioner had erected the dedicated transmission line and connected it to the 132/33 kV Sambepalli substation of APTRANSCO without any pooling station connected to the grid substation.</p>
<p>The Commission further noted that wheeling charges were liable to be paid if the open access users used the transmission or distribution system and associated facilities. The regulator added that APTRANSCO was entitled to collect other charges permissible in law.</p>
<p>Aditya Birla Renewables had filed a petition seeking a declaration that APSPDCL was not entitled to recover wheeling charges and losses from the petitioner regarding the connectivity of the petitioner’s project with 132/33 kV Sambepalli substation of APTRANSCO through the 33 kV dedicated transmission line.</p>
<p><strong>Background</strong></p>
<p>Aditya Birla is developing the 20 MW captive solar power project in the Kadapa district of Andhra Pradesh, and the generator plans to avail open access to supply power from its 20 MW solar project to the two cement projects of the Ultratech Cement Limited located in Andhra Pradesh.</p>
<p>Aditya Birla Renewables had initially requested APTRANSCO to accord connectivity approval and grant long-term access to a 20 MW solar project at Kadapa district for evacuating power at 33 kV voltage level at 132/33 kV Rayachoti grid substation. Later, the petitioner applied to APTRANSCO to grant connectivity at the alternate grid substation, i.e., Sambepalli, in light of the mutual discussions regarding 132/33 kV Rayachoti grid substation having been already connected to a 30 MW project.</p>
<p>The solar generator argued that as per Clause 14 of APERC Regulation on power evacuation from captive generation and co-generation and renewable energy-based power projects, the ownership of 11 kV or 33 kV network and the pooling substation should remain with the power producer.</p>
<p>The petitioner further pleaded that while developing the 33 kV DTL connecting the project to the 132/33 kV Sambepalli substation, it was not required to pay supervision, engineering, and other charges to APTRANSCO.</p>
<p><strong>Commission’s analysis</strong></p>
<p>The Commission observed that APTRANSCO was not entitled to levy supervision charges on their internal works within the solar or wind farm site and up to the pooling substation. It was the obligation of the developer to execute the power evacuation work.</p>
<p>The regulator noted that it was abundantly clear from Clause 14 that the ownership of the entire network up to and including the pooling substation would be with the power producers who were also responsible for maintaining it.</p>
<p>Further, the Commission added that there was no doubt that the petitioner erected the dedicated transmission line in question at its own cost.</p>
<p>The Commission said that wheeling charges were liable to be paid only if the open access users used the transmission or distribution system and associated facilities. Claiming wheeling charges and line losses without lending its system by APSPDCL is confiscation, which was not permissible in law.</p>
<p>The case on hand is different where the petitioner established its captive plant and laid its own dedicated transmission line for evacuation of its power without using any part of APSPDCL’s network.</p>
<p>The Commission stated that it emerged from the stand of APSPDCL that it was claiming ownership of a dedicated transmission line on a misreading of Clause 14 and a misconception of facts. As the petitioner is the owner of the dedicated transmission line and no part of the distribution network of APSPDCL was involved in evacuating power from its generating station to 132/33 kV Sambepalli substation belonging to APTRANSCO.  Therefore, only APTRANSCO was entitled to collect wheeling and other charges permissible under law.</p>
<p>In March this year, the Andhra Pradesh Energy Department<a href="https://mercomindia.com/amendments-solar-wind-hybrid-andhra-pradesh/" target="_blank" rel="noopener"> clarified</a> that the amendments made to policies on the wind, solar, and wind-solar hybrid projects would apply to projects commissioned after November 18, 2019. The Andhra Government had formulated renewable energy policies to promote widespread renewable energy by providing incentives to meet the twin objectives of energy security and clean energy.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/rakesh-ranjan-parashar/" class="vcard author" rel="author"><span class="fn">Rakesh Ranjan</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Rakesh Ranjan,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener">More articles from Rakesh Ranjan.</a></p>
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<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="77" height="102" /><a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener"><strong style="color: #00b451">Rakesh Ranjan</strong></a> is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). <a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" rel="noopener noreferrer">More articles from Rakesh Ranjan.</a></p>
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