Policy

Early nod for transmission schemes under 66.5-GW renewable projects

Our Bureau New Delhi | Updated on July 18, 2019 Published on July 18, 2019

To fast track the deployment of renewable energy in the country, the government has approved a proposal to give early regulatory approval to transmission schemes identified for 66.5 GW National Renewable Energy Mission (NREM) projects by Central Electricity Regulatory Commission (CERC).

According to an official statement, Union Minister of State for Power and New & Renewable Energy (Independent Charge) and Skill Development & Entrepreneurship RK Singh has given his nod to the order.

The government has decided to set up 175 GW of renewable energy capacities in the country by 2022 as part of NREM. As of May, about 80 GW of renewable energy generation has already been commissioned and the remaining 95 GW will come up in the next three years.

In order to achieve these targets, the New & Renewable Energy Ministry, in consultation with the Central Electricity Authority and Central Transmission Utility (CTU), has identified transmission schemes for around 66.5 GW of renewable energy generation — around 28 GW under Phase-I and around 38.5 GW under Phase-II.

Gestation period

The gestation period of these projects is much shorter in comparison to the implementation period of the transmission facilities. As significant quantum of renewable capacity targeted to be tendered out in the current financial year, it is necessary that the present system of transmission planning and implementation for renewable projects need to be carried out in Mission Mode, the statement said.

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 the government. Thus, the government has decided to accord the identified transmission schemes for aforementioned 66.5 GW of renewable generation as projects of national importance.

Accordingly, exercising powers conferred under Section 107 of the Electricity Act, 2003, the government directed the CERC to accord regulatory approval for the transmission system associated with 12.5 GW of renewable capacity in Phase-I for which CTU has already applied to CERC for regulatory approval.

It also directed the Commission 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.

Prior requirement of Long Term Access applications and associated bank guarantees will be deferred for the interim period till the renewable energy project is awarded to successful bidder, it said. The government, however, clarified that the due regulatory procedure of LTA and connectivity will be followed by the successful bidder.

Published on July 18, 2019
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