The Central Electricity Regulatory Commission (CERC) has issued the Central Electricity Regulatory Commission (Sharing of Inter-State Transmission Charges and Losses) (Fourth Amendment) Regulations, 2025. These regulations modify the existing Central Electricity Regulatory Commission (Sharing of Inter-State Transmission Charges and Losses) Regulations, 2020 (Principal Regulations of 2020). They aim to adapt to the evolving energy landscape and provide clarity on the sharing of inter-state transmission charges and losses, particularly for renewable energy and energy storage systems. The amendments will come into effect upon their publication in the official Gazette.
Key Amendments Introduced by the New Regulations
New Definitions
The regulations introduce new definitions for “Tariff Regulations” (referring to CERC (Terms and Conditions of Tariff) Regulations, 2024) and “Terminal Bay” (as defined in the GNA Regulations), providing clearer terminology for the sector.
Apportionment of Transmission Charges
For drawee Distribution Interconnection Companies (DICs) (excluding state distribution licensees) that have obtained a separate General Network Access (GNA) and are not included in the state’s overall GNA, their share of transmission charges will now be apportioned from the aggregate AC-UBC (Area of Control – Unscheduled Bilateral Contracts) charges for the State in proportion to their GNA.
Transmission Deviation for Dual Connectivity
Generating stations with dual connectivity to both inter-state and intra-state transmission systems will have their transmission deviation calculated as net metered ex-bus injection exceeding the sum of their GNA to the inter-state system and their Access with State Transmission Utility (STU) system. STUs are now mandated to share these Access with STU details with the National Load Despatch Centre (NLDC) and Central Transmission Utility (CTU).
Revisions to Waiver of Inter-State Transmission Charges (Regulation 13)
The regulations introduce substantial changes to the waiver of transmission charges for various energy sources and storage systems:
A. Offshore Wind Inclusion
Renewable Energy Generating Stations (REGS) based on Offshore wind are now explicitly included in the eligibility criteria for transmission charge waivers.
B. Phased Waiver for Wind/Solar REGS/RHGS
For new wind or solar-based REGS or Renewable Hybrid Generating Stations (RHGS), a 100% waiver on transmission charges will be applicable for projects with a Commercial Operation Date (COD) on or before June 30, 2025, lasting 25 years from COD. This waiver percentage will gradually reduce to 75%, 50%, 25%, and eventually 0% for projects commissioning after June 30, 2028.
C. Energy Storage Systems (ESS) Waivers:
- Hydro Pumped Storage Projects (PSP) ESS: Eligible for a 100% waiver for 25 years from COD if construction work was awarded on or before June 30, 2028.
- Battery ESS:
- Battery ESS connected at a substation with a co-located REGS and charged from it will receive a 100% waiver for 12 years from COD (for CODs on or before June 30, 2028). A 10% annual contingency charging from the grid is permitted.
- Other Battery ESS (e.g., charged from the grid or without co-located REGS) will also see a phased reduction in waiver similar to wind/solar REGS, applied over 12 years from COD.
D. Hydro Generating Stations
Hydro projects signing PPAs or awarding construction work on or before June 30, 2025, will receive a 100% waiver for 18 years from COD. This waiver also phases down for later projects.
E. Green Hydrogen/Ammonia and Offshore Wind Specific Waivers
New tables provide specific waiver percentages and durations for REGS based on Offshore Wind, and for Green Hydrogen or Green Ammonia Plants when acting as drawee DICs. These plants can avail the higher of their own waiver or the waiver of the RE source they draw electricity from (provided they meet a 51% annual RE electricity requirement).
F. Force Majeure Extensions for Waiver
REGS, RHGS, or Battery ESS projects with a Scheduled Commercial Operation Date (SCOD) on or before June 30, 2025, can retain their 100% waiver if COD is delayed due to force majeure (including transmission non-availability), provided COD is achieved by the extended date. Such extensions, granted by REIA/DISCOM/MNRE or CERC, are limited to two periods of six months each.
G. Verification of RE Consumption by ESS
For monthly billing, a self-declaration is accepted from ESS entities claiming the 51% annual RE electricity requirement for charging. This will be verified at the financial year-end, with revised bills issued if the criteria are not met.
H. Terminal Bay Charges
Clarifications are provided regarding the payment of Yearly Transmission Charges for Terminal Bay(s) by Connectivity Grantees if their generation capacity has not achieved
COD by the connectivity start date.
Transmission System Availability Factor
The calculation of the Transmission System Availability Factor for a transmission system or element will now be as specified in the relevant Tariff Regulations.
Missing Yearly Transmission Charges
If Yearly Transmission Charges for corresponding elements are unavailable, the CTU will calculate them by apportioning approved integrated project costs.
