In a significant development within India’s electricity sector, Fatehgarh IV Transmission Limited has successfully petitioned for the grant of an inter-State transmission license for the establishment of the “Transmission system for evacuation of power from REZ in Rajasthan (20 GW) under phase III-Part A1” on a Build, Own, Operate, and Transfer (BOOT) basis. This move, conducted under Sections 14, 15, and 79(1)(e) of the Electricity Act, 2003, seeks to facilitate the efficient transmission of renewable energy from Rajasthan.
The initiative, governed by the Central Electricity Regulatory Commission (CERC), marks a significant step towards bolstering India’s renewable energy infrastructure. The project aims to harness Rajasthan’s abundant renewable energy potential, further contributing to the nation’s sustainable energy transition.
The process commenced with competitive bidding conducted by PFC Consulting Limited (PFCCL), serving as the Bid Process Coordinator (BPC), in adherence to guidelines issued by the Ministry of Power, Government of India. Apraava Energy Private Limited emerged as the successful bidder, offering the lowest quoted annual transmission charges of ₹248.67 million per annum.
Following the bidding process, Fatehgarh IV Transmission Limited petitioned the Commission for the grant of an inter-State transmission license, adhering to the regulatory framework outlined in the Electricity Act, 2003, and the Transmission Licence Regulations of 2009.
After thorough deliberation, the Commission proposed to grant the transmission license to Fatehgarh IV Transmission Limited, subject to regulatory compliance and public scrutiny. A public notice was duly issued, inviting suggestions and objections, yet no responses were received, indicating a favorable reception from the public.
However, concerns arose regarding the approval of the Central Government, as mandated by the Ministry of Power’s order dated 28.10.2021. Fatehgarh IV Transmission Limited sought clarification from the Ministry of Power, though a response is still pending at the time of reporting.
Despite the pending clarification, the Commission proceeded with the grant of the transmission license to Fatehgarh IV Transmission Limited to ensure the timely commencement of construction activities, thereby preventing delays in the project timeline.
The Commission’s decision underscores Fatehgarh IV Transmission Limited’s compliance with regulatory requirements and its capacity to undertake the transmission project efficiently. The granted license is valid for 25 years from the date of issue, subject to adherence to regulatory provisions and license conditions.
Under the license agreement, Fatehgarh IV Transmission Limited is mandated to comply with various regulations, including the Central Electricity Regulatory Commission (Standard of Performance of inter-State transmission licensees) Regulations, 2012, and subsequent enactments thereof.
Furthermore, the licensee is obligated to provide non-discriminatory open access to its Transmission System, facilitate revenue sharing, and ensure compliance with technical standards specified by the Central Electricity Authority.
The Commission’s decision heralds a significant milestone in India’s renewable energy landscape, reinforcing the nation’s commitment to clean energy initiatives. Fatehgarh IV Transmission Limited’s project is poised to enhance renewable energy transmission infrastructure, fostering sustainable energy development across the country. As Fatehgarh IV Transmission Limited embarks on this transformative journey, stakeholders anticipate substantial contributions to India’s renewable energy goals, paving the way for a greener and more sustainable future.
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