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Merchant renewable energy plants get fillip from CERC

Merchant renewable energy plants get fillip from CERC


NEW DELHI|BENGALURU: Power regulator Central Electricity Regulatory Commission (CERC) has paved way for serious merchant renewable power plants by issuing guidelines for long-term transmission access while prescribing stringent rules against squatting and line underutilisation.

The commission has issued detailed procedure for grant of long- and medium-term transmission access to renewable energy project that has acquired half of its land requirement and achieved financial closure. The bank guarantee amount for granting grid connectivity has also been raised.

The connectivity procedure had became as because earlier renewable energy projects were connected to state transmission units and not directly to the inter-state transmission system. Developers had last week strongly urged that forthcoming NTPCNSE -1.71 % and Solar Energy Corporation of India auctions be postponed till such guidelines were finalised. There were also concerns a large numbers of applicants are squatting on connectivity bays allotted at power evacuation substations.CERC has now put safeguards to ensure connectivity with the grid is granted only to serious players who are in possession of land and have achieved financial closure.

Experts hailed the move and said it will encourage setting up merchant renewable plants and sale of electricity in the open market, particularly at a time when spot power prices are higher at over Rs 3 per unit against tariff-based auction discovered Rs 2.4 – 2.8 per unit.

“This a significant reform to weed out non-serious applicants of grid connectivity making a mockery of open access,” said Ravinder, former chairperson of Central Electricity Authority and consultant on renewable energy and transmission planning.

Source: economictimes.indiatimes
Anand Gupta Editor - EQ Int'l Media Network


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