In a recent order, Central Electricity Regulatory Commission (CERC) has offered more relaxation with respect to waiver of ISTS-related transmission charges.
The order has given a six-month extension, from the original December 31, 2022 to the revised June 30, 2023, for waiver applicable to energy generation from renewable sources for the use of the interstate transmission system (ISTS).
It may be recalled that there is a waiver on transmission charges for use of ISTS, for a period of 25 years, applicable to renewable energy generation (solar and wind) for projects that have started commercial operations during the period December 31, 2018 to December 31, 2022.
There are other accompanying conditions such as the generation capacity eligible for ISTS waiver should be awarded through the tariff-based competitive bidding route, and that PPAs for the sale of electricity from such projects should be in place.
Background
The “Central Electricity Regulatory Commission Sharing of Inter-State Transmission Charges and Losses) Regulations, 2020” were notified on May 4, 2020, and came into effect from November 1, 2020.
One specific regulation — officially “Regulation 13(1)(c)” – provides for waiver of ISTS-related charges. The timeline envisaged under this regulation has now been revised to June 30, 2023, as discussed in this story.
Also read: CERC Issues Transmission Licence To Neemuch TBCB Project
Separate instrument
It is important to note that the above-mention timeline of December 31, 2022, is also under consideration for extension under a separate instrument called “Draft Central Electricity Regulatory Commission (Sharing of InterState Transmission Charges and Losses) (First Amendment) Regulations, 2022” that was notified on June 1, 2022, and a draft supplementary amendment dated August 18, 2022, to the First Amendment.
However, since this amendment and its notification is envisaged to take some more time, CERC came up with this extension to June 30, 2022 (as discussed in this story) as an interim measure.