CERC Strikes Down The Review Petition Filed By The Rajasthan DISCOMs On Transmission Charges

In Clean Facts, Clean Truth, News, Renewable Energy

To meet the national target of 175 GW of solar capacity by 2022, Power Grid Corporation of India Limited (PGCIL) had planned transmission capacity for 66.5 GW of renewable energy in the seven renewable energy-rich states.

It had earlier approved ₹25.8 billion (~$358 million) to develop a transmission system for solar energy zones in Rajasthan. Out of this capacity, PGCIL was involved in the execution of the transmission system associated with 8.9 GW of renewable energy potential in solar energy zones in Rajasthan.

The DISCOMs in Rajasthan are concerned with the adverse financial implications in terms of load flow and transmission charges because the solar projects are located in Rajasthan even though there is no consumption within the state.

The DISCOMs further noted they should not be bearing the burden of transmission charges or load flow, resulting in a higher point of connection charges for facilitating the transmission of power to other states.

The DISCOMs demanded a proper mechanism to share the transmission charges of interstate transmission system (ISTS) assets created for evacuating power from solar rich states.

The Central Electricity Regulatory Commission (CERC) has however dismissed this review petition and stated that this had been dealt with under the Central Electricity Regulatory Commission (sharing of ISTS charges and losses) Regulations, 2010.

The CERC had recently issued a draft regulation for sharing inter-state transmission charges and losses for 2019.

According to the draft, the transmission charges would be shared among the designated ISTS customers, so that the yearly transmission charges are fully covered, and any adjustment on account of the revision of transmission charges are recovered.

Reference- Mercom India, Economic Times

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