Changes To Cross-Border Electricity Trade Guidelines

The Ministry of Power (MoP) has amended the Guidelines for Import/ Export (Cross Border) of Electricity, 2018, to regulate the export of electricity from India. An Office Memorandum (OM) on the amendment was issued on August 12, 2024.

The key changes include:

Generating companies or distribution licensees can now export electricity generated from coal-based plants only if the coal used is imported, procured through spot e-auction, or obtained from other sources specified by the government. However, this restriction does not apply to electricity traded through power exchanges.

Similarly, generating companies or distribution licensees can export electricity from gas-based plants only if the gas used is imported or sourced from other specified sources.

Indian generating stations exclusively supplying electricity to neighboring countries can now build dedicated transmission lines with government approval. However, the government reserves the right to connect such generating stations to the Indian grid in case of non-scheduling of full or partial capacity or payment defaults.

These amendments aim to optimize the utilization of domestic resources and ensure the security of India’s power supply while facilitating cross-border electricity trade.

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