Alongside a draft proposal to streamline the regulatory framework for the nation’s energy transmission, new connectivity laws launched by the electrical energy regulator CERC are being red-flagged by market gamers.
The regulatory framework — referred to as Normal Community Entry (GNA) laws — seeks to dispose of pre-determined point-to-point transmission entry to as a substitute allow each entry or drawal on your complete transmission hall in a method that it offers mills and procurers the pliability of each injection and drawal.
Whereas the brand new framework is being seen as a quantum leap in tiding over the issue of transmission constraints and fostering open entry to assist develop a seamlessly built-in electrical energy market, consultants say there are loopholes within the accompanying connectivity laws issued subsequently by the regulator. The priority is that these connectivity laws may doubtlessly find yourself favouring the larger gamers within the sector.
The largest shortcoming within the accompanying connectivity laws pertains to the perceived dilution of the pre-conditions set for grant of connectivity. It’s again to a full circle in some sense, on condition that laws had been tightened after the Renewable Power (RE) builders, significantly the larger gamers, took benefit of the liberal grant of connectivity by the CERC in 2016 with none stringent pre-conditions. The foundations had been then tweaked in 2018 to include strict circumstances just like the letter of award (LOA), monetary closure standing, the acquisition of fifty per cent land to counter the squatting of grid connectivity by gamers and so on. A number of gamers that The Indian Categorical spoke to mentioned an analogous danger has once more arisen as within the new connectivity laws, these preconditions have been diluted or eliminated.
“Massive RE builders will find yourself doubtlessly capturing essentially the most profitable RE pooling stations with a number of functions and apply for a staggered date of completion relying on anticipated funding sources. Those that should not have deep pockets to pay the connectivity financial institution ensures concurrently for big numbers of functions may very well be the losers,” an knowledgeable who previously served in a regulatory position mentioned. The brand new connectivity regulation, notified in July, is slated to be opened from December 1, 2022.
The CERC had, in December final 12 months, come out with a draft proposal to facilitate regulatory framework for GNA. At current, an influence generator has to work out how the electrical energy might be wheeled to the patron beneath the point-to-point entry idea. GNA will allow them to produce from any level, so long as the quantum contracted for is met.
The GNA as a transmission service offers extra flexibility and the potential of open entry to the patrons and sellers of energy when it comes to scheduling, topic to grid constraints, and doesn’t undergo from the rigidity of the present point-to-point open entry mechanism. At present, customers should pay long-term expenses beneath the point-to-point connectivity regime, and shell out short-term expenses for any deviations from the agreed path. All that adjustments with GNA, the place there’s full flexibility provided to gamers on injection and drawal.
In line with the GNA draft, the entities eligible as candidates for grant of GNA or for enhancement of the quantum of GNA embody state transmission utilities on behalf of distribution licensees related to intra-State transmission system (ISTS) and different intra-State entities; a shopping for entity related to intra-State transmission system; Draft Central Electrical energy Regulatory Fee (Connectivity and Normal Community Entry to the inter-State transmission System) Laws, 2021; a distribution licensee or a bulk shopper, in search of to hook up with ISTS, immediately, with a load of fifty MW and above; buying and selling licensees engaged in cross-border commerce of electrical energy when it comes to the Cross Border Laws; transmission licensee related to ISTS for drawal of auxiliary energy.
Different entities not coated by these laws however are related to the inter-State Transmission or for whom connectivity granted beneath connectivity laws has grow to be efficient, shall be eligible for making use of for grant of GNA to the inter-State transmission system for the quantum equal to the quantum of connectivity.