APERC Approves 7,000 MW Solar Power Agreement And Addresses ISTS Charge Waiver Issues

In its recent Order dated April 12, 2024, the Andhra Pradesh Electricity Regulatory Commission (APERC) approved a Tripartite Power Sale Agreement (PSA) dated December 1, 2021, between the Andhra Pradesh Green Energy Corporation Ltd. (APGECL), recently renamed AP Rural Agriculture Power Supply Company (APRAPSCOM), the Solar Energy Corporation of India (SECI), and the Government of Andhra Pradesh (GoAP). This agreement involves the drawal of 7,000 MW of solar power under the said contract.

The Commission’s Order highlights that the inter-state power supply under this agreement will commence soon. However, it has come to the Commission’s attention that there are concerns about the full waiver of Interstate Transmission System (ISTS) charges for the drawal of this solar power. The apprehension stems from the new Grid Connectivity Regulations (GNA Regulations) issued by the Central Electricity Regulatory Commission (CERC) after the signing of the PSA.

This issue was discussed at length during the Southern Electricity Regulators Forum (SERF) meeting held in Kurnool on August 2, 2024. The forum deliberated on the applicability of the ISTS charge exemption concerning the SECI power drawal by the Distribution Companies (DISCOMS). The matter was then referred to a working group on “Renewable Energy Related Policy and Regulatory Matters,” of which the Hon’ble Chairman of APERC is a member.

The working group met in New Delhi on August 9, 2024, to further discuss this issue. Officers from the CERC, including Dr. S.K. Chatterjee, Chief of Regulatory Affairs, and Smt. Shilpa Agarwal, Joint Chief of the Engineering Division, was present. They informed the working group that applying for GNA-RE under the GNA Regulations might offer a 100% waiver of ISTS charges for drawing 7,000 MW of solar power, given the agency’s exclusive focus on renewable energy power supply.

Considering the importance of the issue, the Commission believes that if SECI does not take responsibility for the ISTS charges waiver, APRAPSCOM may need to apply for GNA-RE under Clause 20.4 of the GNA Regulations. This application should include obtaining a No Objection Certificate (NOC) from the State Transmission Utility (STU) to schedule the 7,000 MW of solar power from Rajasthan, ensuring a complete waiver of ISTS charges for the duration of the agreement as initially planned.