CERC Issues New Regulation For Cross Border Trade of Electricity

India looks set to improve its position as an electricity exporting nation with new guidelines issued by CERC for seamless cross border trade of electricity.

The Central Electricity Regulatory Commission (CERC), in accordance with the guidelines on import and export of electricity issued by the Ministry of Power earlier this year, has issued new guidelines for the seamless cross border trade of electricity.

These regulations will apply to the participating entities in India and neighbouring countries which are engaged in cross-border trade of electricity with India. Cross-border trade of power between India and the neighbouring countries will be allowed through mutual agreements between Indian entities and entities of the neighbouring countries under the overall framework of CERC (Cross Border Trade of Electricity Regulations), 2019.

In case of tripartite agreements, the cross-border trade of electricity across India will be allowed under the overall framework of bilateral agreements signed between Government of India and the governments of the respective neighbouring countries of the participating entities.

The Ministry of Power will be responsible for designating an authority to facilitate the process of approval and laying down the procedure for import and export of electricity. The designated authority will coordinate with any authority nominated by the concerned neighbouring countries for all purposes related to cross border trade in electricity.

Other Key Highlights:

Transmission Planning Agency shall be responsible for the planning of transmission system for the purpose of facilitating cross border trade of electricity and may coordinate with the Transmission Planning Agency of the concerned neighbouring country, wherever necessary. For India, this function shall be discharged by the Designated Authority.

Settlement Nodal Agency shall be responsible for settling all charges pertaining to grid operations including operating charges, charges for deviation and other charges related to transactions with a particular neighbouring country in the course of cross border trade of electricity. The Settlement Nodal Agency shall be a member of the deviation pool, reactive energy pool and other regulatory pools for payment and settlement of the corresponding charges in the pool accounts of the region having connectivity with any neighbouring country.

National Load Dispatch Centre shall act as the System Operator for cross border trade of electricity between India and the neighbouring countries and shall be responsible for granting short-term open access and for billing, collection, and disbursement of the transmission charges for short-term open access transactions in accordance with the Sharing Regulations.

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