CERC Grants Transmission License For 400kv Project At Parli Substation

Posted On - 1 August, 2024 • By - King Stubb & Kasiva

Summary

POWERGRID Parli Transmission Limited (PPTL) sought a separate transmission license from the Central Electricity Regulatory Commission (CERC) to establish a 400kV line bay at the 765/400kV Parli (New) substation. This project aimed to connect renewable energy projects through the Regulated Tariff Mechanism (RTM). The estimated cost was Rs. 18 crore, with a proposed completion date of December 31, 2025.

Case Timeline

  • July 10, 2015: CERC granted PPTL a transmission license for the “Transmission System associated with Gadarwara STPS (2X800 MW) of NTPC (Part-B)” project.
  • January 2, 2024: The Central Transmission Utility of India Limited (CTUIL) approved and nominated PPTL to implement the 400kV line bay project.
  • June 25, 2024: CERC considered PPTL’s application and proposed granting a separate transmission license for the project.
  • June 29, 2024: A public notice was issued inviting objections or suggestions to the proposed license grant.
  • July 11, 2024: A hearing was conducted, and no objections were received.
  • July 15, 2024: CERC issued the order granting the transmission license to PPTL.

Issues Raised

The primary issue was whether PPTL, not initially fulfilling all the eligibility criteria, should be granted a separate transmission license for the project.

Appellant’s Arguments

PPTL argued that the project was approved by CTUIL under the RTM mode and that denying the license would contradict the government’s policy objectives. They emphasized their experience as an existing transmission licensee and their capability to execute the project effectively.

Respondent’s Arguments

CTUIL supported PPTL’s request, confirming their recommendation for granting the transmission license and highlighting the project’s alignment with the RTM framework.

Order

The CERC, after evaluating the arguments and the absence of public objections, granted the transmission license to PPTL. Despite PPTL not meeting all initial eligibility requirements, the CERC exercised its power under Regulation 24 of the Transmission License Regulations to relax the provisions, considering the project’s strategic importance and CTUIL’s approval. The license was granted with specific conditions, including adherence to technical standards, compliance with regulations, and timely project execution.

Analysis

The CERC’s decision demonstrates a balanced approach that considers both regulatory compliance and the practical need to promote renewable energy projects. By relaxing eligibility criteria and granting the license to PPTL, the CERC prioritized the project’s timely implementation, aligning with broader government policy goals. This decision underscores the importance of flexibility in regulatory decision-making, especially when dealing with projects of strategic significance. It also highlights the CERC’s commitment to facilitating the growth of renewable energy in India while ensuring adherence to technical and regulatory standards.