Coal news and updates

CERC notifies key waivers, transmission reforms to boost RE, storage projects

The Central Electricity Regulatory Commission (CERC) has released the fourth amendment to the Sharing of Inter-State Transmission Charges and Losses Regulations, 2020.

This amendment brings key changes to streamline the integration of renewable energy and energy storage systems into the national grid.

Regulation 13 introduces major waivers for renewable energy generating stations (REGS), renewable hybrid generating stations (RHGS), and energy storage systems (ESS). Wind and solar projects are eligible for a 100 percent waiver if commissioned by June 30, 2025. The percentage of waivers reduces in steps for projects commissioned annually until June 2028, after which no waiver is granted.

Hydro-based pumped storage projects will get a 25-year waiver if construction begins before June 2028. Battery storage systems will also receive up to 100 percent waiver depending on their connection to renewable sources and date of commissioning.

Hydropower projects will also get waivers for 18 years from the date of commercial operation, depending on when their construction contracts and power purchase agreements were signed. Offshore wind and green hydrogen or ammonia projects also receive defined waivers based on commissioning year, ranging from 100 percent to 0 percent, with full benefit available if commissioned before 2033 and 2034, respectively.

The amendment also allows for waiver extensions of up to six months (twice) in case of delays due to force majeure, including transmission unavailability, for projects initially eligible for waivers. Extensions can be granted by agencies like MNRE or recommended by a CERC committee, depending on the PPA structure.