KSERC Orders Grant Of Open Access For Interstate Renewable Energy Amid Regulatory Delays In Kerala

M/s Carborundum Universal Limited (CUL), part of the Murugappa Group, filed a petition with the Kerala State Electricity Regulatory Commission seeking directions for the grant of a No Objection Certificate (NOC) or standing clearance from the Kerala State Electricity Board Ltd (KSEB Ltd), specifically its State Load Dispatch Centre (SLDC). This clearance is essential for CUL to access power under the Temporary General Network Access (T-GNA) route from a solar power plant in Rajasthan, owned by Grian Energy Private Limited, with whom CUL signed a long-term Power Purchase Agreement (PPA) for 10 MW under captive mode.

CUL stated that it has complied with all necessary regulatory requirements by applying on 16 October 2024, including all relevant technical and contractual details. However, the SLDC denied the request on 1 November 2024, citing the absence of a formal deviation settlement mechanism (DSM) and a lack of automated systems for managing such open access transactions.

CUL argued that these reasons are invalid since existing procedures under the 2013 KSERC regulations already allow for such transactions, and open access has been granted in similar cases for collective transactions through power exchanges. The company emphasized that the denial was causing significant financial loss and was discriminatory in nature.

KSEB Ltd, in response, stated that CUL had not submitted a proper application with the requisite fees and raised doubts about the captive status of the solar plant. They also pointed to the lack of scheduling infrastructure and proper DSM regulations in the state. KSEB warned that allowing such bilateral transactions without these systems could compromise grid stability and lead to financial burdens on other consumers.

The Commission reviewed the case and noted that open access is a right under the Electricity Act, 2003. It clarified that SLDCs could only deny standing clearance based on the non-existence of infrastructure or lack of surplus transmission capacity—neither of which applied in this case. It was found that SLDC failed to point out specific defects in CUL’s application and did not follow proper timelines as mandated by the regulations.

The Commission directed SLDC to communicate any application defects and fees required within three days. CUL must then re-submit the application within two days, after which SLDC must act within the timeline specified in the regulations. If SLDC fails to respond within the prescribed time, the clearance will be deemed granted.

Additionally, the Commission warned KSEB and SLDC that denial of open access on procedural grounds, such as the lack of a DSM, would be seen as non-compliance and could invite action. It also criticized the Co-ordination Committee for failing to act on the dispute in time and asked for improved accountability.

Finally, while not ruling on whether the plant qualifies as a Captive Power Plant (CPP) or Independent Power Producer (IPP), the Commission noted that such classification only affects charges, not the obligation to grant access. It ruled that no banking or power would be allowed for interstate transactions.

The petition was disposed of with directions to ensure compliance and uphold the consumer’s rights under existing laws.