CERC Issues Draft Cross Border Trade of Electricity Second Amendment Regulations, 2024

Posted On - 6 February, 2025 • By - King Stubb & Kasiva

Introduction

The Central Electricity Regulatory Commission (CERC) has issued the draft Central Electricity Regulatory Commission (Cross Border Trade of Electricity) (Second Amendment) Regulations, 2024, on December 31, 2024.[1] This amendment seeks to update the existing regulations governing the cross-border trade of electricity in India, primarily by incorporating changes related to General Network Access (GNA) and Temporary General Network Access (T-GNA). These updates align with the Central Electricity Regulatory Commission (Connectivity and General Network Access to the inter-State Transmission System) Regulations, 2022, ensuring a more structured and efficient mechanism for cross-border electricity trade.

Explanation (Key Points)

1. Changes in Terminology and Definitions

  • The amendment replaces “long-term access, medium-term open access, and short-term open access” with “GNA and T-GNA.”
  • Introduces new definitions, including “Communication Regulations,” “Cross Border Transmission Link (CBTL),” and “Dedicated Transmission System,” to ensure clarity in the cross border trade.
  • Removes redundant clauses and updates regulatory references to align with current laws.

2. Regulatory and Operational Changes

  • Allows Indian electricity trading licensees to participate in cross-border trade.
  • Introduces provisions for power transactions through Indian Power Exchanges.
  • Specifies the implementation process for the Cross Border Transmission Link (CBTL), including cost-sharing mechanisms and governmental approvals.
  • Introduces application fees and bank guarantee requirements for obtaining GNA and T-GNA.

3. Infrastructure and Transmission Regulations

  • Mandates that entities seeking connectivity must comply with technical standards and submit bank guarantees.
  • Defines procedures for entities to develop and maintain dedicated transmission systems.
  • Provides guidelines on the utilization of spare capacity in dedicated transmission systems.
  • Establishes transmission charges for cross-border trade, with different models for government-negotiated and open-access transactions.

4. Cybersecurity and Communication Systems

  • Requires participating entities to adhere to the Information Technology Act, 2000, and CEA (Cyber Security in Power Sector) Guidelines, 2021.
  • Stipulates that all communication systems must comply with CERC Communication Regulations, 2017, and CEA standards.

5. Curtailment, Charges, and Dispute Resolution

  • Specifies the order of curtailment in case of grid constraints, prioritizing T-GNA transactions over GNA.
  • Updates transmission loss computation, aligning it with the latest sharing regulations.
  • Revises dispute resolution mechanisms to include provisions for Commission intervention when required.

Conclusion

The Draft Cross Border Trade of Electricity (Second Amendment) Regulations, 2024, mark a significant step in streamlining cross-border electricity transactions in India. By integrating the GNA framework, enhancing infrastructure regulations, and reinforcing cybersecurity norms, the amendment aims to promote a transparent and efficient cross-border electricity trade mechanism. These changes are expected to facilitate greater regional energy cooperation, improve transmission planning, and enhance market accessibility for participating entities.

[1] https://cercind.gov.in/2024/draft_reg/DNA.pdf