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

The Central Electricity Regulatory Commission (CERC) has made a significant amendment to the Central Electricity Regulatory Commission (Cross Border Trade of Electricity) Regulations, 2019. The amendment, known as the Second Amendment Regulations, 2024, was issued under the powers conferred by the Electricity Act, 2003, specifically Section 178 and Section 66. It also takes into account the Guidelines on Import/Export (Cross Border) of Electricity, 2018, issued by the Ministry of Power, Government of India. The new regulations aim to strengthen the framework governing cross-border electricity trade between India and its neighboring countries.

One of the major changes in this amendment is the replacement of the term “long-term access” with “General Network Access (GNA)” throughout the regulations. GNA, introduced in the Central Electricity Regulatory Commission (Connectivity and General Network Access to the inter-State Transmission System) Regulations, 2022, is now the standard terminology used in the context of cross-border electricity trade. This update is crucial in aligning the regulatory framework with the broader transmission system’s access rules and streamlining the process for electricity trade across borders.

The amendment also introduces changes to various definitions. A key revision is the inclusion of a new definition for “Communication Regulations,” referring to the Central Electricity Regulatory Commission (Communication System for inter-State transmission of electricity) Regulations, 2017. This change underscores the importance of communication systems in facilitating cross-border electricity transactions. Furthermore, a new term, “Temporary General Network Access (T-GNA),” has been introduced, which is aligned with the GNA regulations. The addition of T-GNA allows for temporary access to the network for cross-border electricity trade, offering more flexibility for shorter-term transactions.

The definition of “Cross Border Transmission Link” has also been updated. A CBTL now includes the transmission link from the pooling station within India to the pooling station of a neighboring country. This expanded definition ensures that all relevant transmission infrastructure is covered under the cross-border electricity trade framework. Additionally, the regulations now clarify the role of “Dedicated Transmission Systems,” which are developed by participating entities for transactions between generating stations or drawee facilities in neighboring countries and India.

Amendments to Regulation 3 and Regulation 4 introduce changes to the process of obtaining access for cross-border trade. Regulation 3, which covers the eligibility for participation in cross-border electricity trade, now includes provisions for transactions through Indian Power Exchanges as per Regulation 6. Meanwhile, Regulation 4 emphasizes the need for GNA and T-GNA, replacing the older system of long-term access, medium-term open access, and short-term open access.

Moreover, the amendment makes provisions for the development and maintenance of transmission infrastructure by participating entities. For instance, a participating entity with a generating station or drawee facility in a neighboring country can now develop a dedicated transmission system to facilitate cross-border electricity trade. This system must be approved by the respective governments, ensuring that international standards are met while promoting regional cooperation.

The Second Amendment Regulations, 2024, enhance the legal and regulatory framework for cross-border electricity trade between India and its neighboring countries. By incorporating provisions for GNA, T-GNA, and expanded infrastructure responsibilities, the regulations provide a more robust and flexible approach to facilitating electricity trade, which will likely contribute to better energy integration in the region.