Central Electricity Regulatory Commission (CERC), in an order dated January 10, 2022, has granted “Category 1” licence for interstate trading of electricity to SJVN Ltd. The company has also won 125 mw of solar capacity in Uttar Pradesh, under the TBCB mechanism.
In a release, SJVN Ltd said that this licence will give a big boost to the company’s business. The company will now be trading electricity generated by any public and private generating companies, including its own group companies like SJVN Arun-3 Power Development Company Ltd, SJVN Thermal Pvt Ltd, and other upcoming subsidiaries in the renewable energy sector.
SJVN aims to commence electricity trading operations in India by tying up contracts to the extent of 900 mw round the clock (RTC) or equivalent.
According to N.L. Sharma, CMD, SJVNL Ltd, “Efficient execution of electricity trading in a competitive environment will ultimately benefit consumers in the spirit of the open access regime brought about by the Electricity Act, 2003 and subsequent CERC & SERC regulations.”
Sharma added that SJVN aims to be a one-stop source for any generator and consumer wanting to trade power in the country and contribute to the evolution of a robust and competitive electricity market in India. SJVN will focus on fulfilling power supply deficiencies across various states while also addressing seasonal and regional variance of demand and supply. SJVN will also consolidate the power of small and medium power generators and trade into bulk power consumers.
Eligibility & Regulations
In accordance with Regulation 3(3) of the Trading Licence Regulations, a person applying for Category `I` trading licence should have net worth of Rs.50 crore and should have maintained minimum current ratio and liquidity ratio of 1:1, as on date of audited balance sheet accompanying the application.
A licensee is not permitted to engage in the business of transmission in electricity during the period of subsistence of the trading licence. Further, if a licensee fails to undertake trading in electricity within one year from the date of licence, the licence shall be liable for revocation.
Solar projects in UP
In an independent development, SJVN announced that it has won the development rights of 125 mw of solar power capacity in Uttar Pradesh. Two grid-connected projects – 75 mw (Gurhah, Jalaun district) and 50 mw (Gujrai, Kanpur Dehat district) – were won under the tariff-based competitive bidding (TBCB) mechanism. SJVN will sell power generated from these projects to Uttar Pradesh New & Renewable Energy Development Agency (UPNEDA) under a 25-year PPA, at a tariff of Rs.2.98 per kwh. SJVN has targeted a power generation portfolio of 25 GW by 2040.
Featured photograph for representation only