Power Minister approves proposal for early regulatory approval of transmission schemes identified for 66.5 GW Renewable Energy projects

In a major decision to fast track the deployment of Renewable Energy (RE) in India, power minister RK Singh has approved a proposal for early regulatory approval by Central Electricity Regulatory Commission (CERC) for transmission schemes identified for 66.5 GW National Renewable Energy Mission projects.

Accordingly, the Ministry of Power has issued the following order –

As a part of the steps necessary to fulfill the commitment made by India under the Nationally Determined Contribution pursuant to the Paris Agreement on Environment, Government of India have decided to set up 175 GW of RE capacities in the country by the year 2022. As of May 2019 about 80 GW of RE generation has already been commissioned and the balance 95 GW has to come up in the next 3 Years. In order to achieve above targets, MNRE in consultation with CEA and Central Transmission Utility (CTU) has identified transmission schemes for around 66.5 GW of RE generation, comprising around 28 GW under Phase-I and around 38.5 GW under Phase-II as part of National Renewable Energy Mission of setting up of 175GW of RE capacity.

As the gestation period of RE projects is much shorter in comparison to the implementation period of the transmission facilities, and significant quantum of RE capacity targeted to be tendered out in the current financial year, it is necessary that the present system of transmission planning and implementation for RE projects need to be carried out in Mission Mode. The transmission activities need to be started much ahead of the generation so that both of them are completed in matching time-frame to achieve the target set by Govt. of India. Thus, in the said background, it has been decided by the Government to accord the identified transmission schemes for aforementioned 66.5 GW of RE generation, comprising around 28 GW under Phase-I and 38.5 GW under Phase-II as “Projects of National Importance”. Accordingly, the Central Government, in exercise of the powers conferred under Section 107 of the Electricity Act, 2003 hereby issues following directions to the Central Electricity Regulatory Commission in respect of these projects of national importance:-

i. To accord Regulatory approval for the transmission system associated with 12.5 GW of RE capacity in Phase-I for which CTU has already applied to CERC for regulatory approval.

ii. To give regulatory approval expeditiously, for balance 15.5 GW under phase-I and 38.5 GW under phase-II on submission of the application by CTU for the regulatory approval.

iii. Prior requirement of Long Term Access (LTA) applications and associated Bank Guarantees, to be deferred for the interim period till the RE project is awarded to successful bidder, for taking up the implementation of associated transmission systems for balance RE Capacity under 66.5 GW of RE. It is however, clarified that the due regulatory procedure of LTA and Connectivity will be followed by the successful bidder.

Source: Energy Next