CERC notifies norms for inter-state transmission schemes of Powergrid

In what could be a fillip to the development of interstate transmission networks in the country, the Central Electricity Regulatory Commission (CERC) has formulated separate norms for granting approval to the proposed interstate transmission schemes (ISTS) of Power Grid Corporation of India Limited (PGCIL). These norms will apply to all the ISTS proposed by the central utility for which power project developers have sought long-term access, as per the CERC (Grant of Connectivity, Long-Term Access and Medium-Term Open Access to the Inter-State Transmission and Related Matters) Regulations, 2009, and for which consultations among the Central Electricity Authority (CEA) and project beneficiaries have been held.
Further, these regulations, called the CERC (Grant of Regulatory Approval for execution of Inter-State Transmission Scheme to Central Transmission Utility) Regulations, 2010, will also apply to the system strengthening ISTS, identified by PGCIL to enable reliable, efficient, coordinated and economical flow of electricity within and across the regions of the country. However, these regulations will not apply to the transmission schemes, for which all the beneficiaries have signed bulk power transmission agreements (BPTA) for sharing the transmission charges.
As per the newly-prescribed norms, before according regulatory approval, the apex regulator will evaluate the ISTS on the basis of three criteria-- firstly, the need for the transmission scheme, including the technical justification, urgency and prudence of the investment, secondly, cost assessment and possible phasing of implementation and, thirdly, cost-benefit analysis with respect to the users of the proposed ISTS.