CERC Issues Draft Sharing of Inter-State Transmission Charges and Losses ,Fourth Amendment Regulations, 2024

The Central Electricity Regulatory Commission (CERC) on 9th October 2024 published a draft amendment, governing the sharing of inter-state transmission charges and losses, particularly focusing on renewable energy generation sources such as Green Hydrogen and wind energy. The “Draft Central Electricity Regulatory Commission (Sharing of Inter-State Transmission Charges and Losses) (Fourth Amendment) Regulations, 2024” is now open for public consultation.

The amendments introduce specific waivers for REGS based on wind or solar sources. For instance, a Green Hydrogen plant that achieves Commercial Operation Date (COD) on January 1, 2032, and schedules power from a wind-based REGS that has declared COD on July 1, 2025, will be eligible for a 75% waiver on transmission charges. Similarly, if the Green Hydrogen plant declares COD on January 1, 2030, and schedules power from a REGS that achieves COD on July 1, 2027, the draw schedule will be considered at 100%

A new sub-clause has been added to allow REGS based on wind or solar sources, which are eligible for waivers and have a scheduled COD on or before June 30, 2025, to receive an extension to achieve COD. The regulations specify that REGS based on offshore wind, which declare commercial operation on or after January 1, 2033, will have a tiered draw schedule consideration based on the year of COD. For example, projects achieving COD in 2023 will have a 75% draw schedule, which decreases to 0% after 2035

New hydro projects that have awarded construction contracts after June 30, 2025, will also be eligible for waivers, with specific percentages of draw schedules outlined

Battery ESS that declare commercial operation on or before June 30, 2025, will be eligible for a waiver of transmission charges for a period of 12 years from the date of COD. This is a significant incentive for the adoption of energy storage technologies, which are essential for balancing supply and demand in renewable energy systems.

Stakeholders are invited to submit their thoughts, suggestions, and objections. The comments can be sent to secy@cercind.gov.in and shilpa@cercind.gov.in.

Registered users can upload their feedback through the SAUDAMINI Portal, using the e-Regulation link on the e-filing Home Page. All submissions must be made by 11th November 2024. Feedback received after this date may not be taken into account during the finalization process.

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