Grid access: Power regulator seeks to lower hydel project size

Under pressure from hydro electricity developers, the apex power regulator has moved a proposal to amend its regulation that stipulates a minimum installed capacity of 250 MW for projects seeking connectivity with the Inter-State Transmission System (ISTS).The minimum size requirement is now proposed to be brought down to 50 MW by the Central Electricity Regulatory Commission or CERC.

The restrictive clause, which also faced opposition from the Central Electricity Authority (the statutory body looking at broader policy and operational issues), is currently applicable even if the project developer is prepared to lay a dedicated line up to the grid pooling point.

The decision to lower the size limit is in line with the Government's stated objective to harness smaller sized hydro projects in view of the lower environmental impact and reduced rehabilitation concerns against large hydel projects.The move would help a bevy of small hydro stations, including a number of private run-of-the-river projects coming up in Himachal Pradesh, Uttarakhand, Sikkim and Arunachal Pradesh.

The changes in the clause have been proposed by the CERC after “considering the problems of the hydro generating companies and to bring more power to the National Grid.”Subsequent to the regulations coming into effect, a number of private hydro project developers in the North-East and the Himalayan States had made representations to the CERC that their projects were being deprived of connectivity to the ISTS purely on account of the size restriction.

In Himachal Pradesh, a number of hydro projects having capacities of less than 250 MW are been planned to be connected directly to inter-State transmission system. These include the 70-MW Budhil hydroelectric project (HEP), the 192-MW Allain Duhangan project and the 100-MW Malana II station.

In Sikkim, a large number of HEPs below 250 MW are planned to be connected to inter-State transmission system pooling points, including the 118-MW Chujachen HEP, the 96-MW Rongichu HEP, the 54-MW Bhasmey HEP, the 99-MW Tingting HEP and the 120-MW Rangit IV HEP.

Currently, under Clause 2 (1) (b) of the CERC's regulations on grant of connectivity, medium- and long-term access in inter-State transmission, an applicant seeking connectivity to the grid could only be a generating station of installed capacity of 250 MW and above.

The CERC's “Eligibility for connectivity to inter-State Transmission System” regulations, dated August 7, 2009, had been operationalised from January 1, 2010.

Hydel power
Minimum size proposed to be brought down from 250 MW to 50 MW
Move likely to help a bevy of small hydro stations
Some of the private projects are coming up in Himachal Pradesh, Uttarakhand, Sikkim and Arunachal Pradesh