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Stringent norms on Sharing ISTS Charges and Losses for Renewable Projects

Draft CERC Regulation has taken a tough stance on the utilization of the ISTS network for renewable projects. Draft regulation has made compliance more stringent on Mechanism for Sharing ISTS Charges and Losses from Renewable Projects, where any delay in commercial operation of a project will attract penalty in terms of transmission charges and also in case of payment default CTU will cease it to be as existing customer. This would enable timely execution of projects thus supporting discoms annual RPO compliance. On the other hand it has also waived off open access charges for long-term and medium-term open access for renewable projects being awarded through competitive bidding, have declared commercial operation between February 13, 2018, and March 31, 2022 and Power purchase agreements have been executed with all entities including distribution companies (DISCOMs) for compliance of their RPO. Thus reducing burden of transmission charges in excess, ensuring viability of renewable projects. Also transmission charges and losses for the use of ISTS will be waived off for Solar projects commissioned from July 1, 2011, to June 30, 2017 solar or wind projects for 25 years from the date of commercial operation, enabling improved cost recovery to the projects