KSERC Directs KSEB To Grant Open Access NOC For Solar Power Purchase By Industrial Consumer

The Kerala State Electricity Regulatory Commission (KSERC) issued an important order in a case filed by Carborundum Universal Limited (CUL), which manufactures abrasive and industrial products. CUL wanted to buy solar power from Grian Energy Private Limited, a company in Rajasthan, through an agreement signed in September 2024. The agreement was for 10 MW of solar power under the captive model for 25 years. To proceed, CUL had to apply for Temporary General Network Access (T-GNA) to transmit this power from outside Kerala into the state using the Inter-State Transmission System (ISTS).

For this, CUL needed a No Objection Certificate (NOC) or standing clearance from the Kerala State Load Dispatch Centre (SLDC), a part of Kerala State Electricity Board Limited (KSEBL). This certificate is a necessary step under national electricity regulations to allow the use of the grid. CUL submitted the application in October 2024. However, SLDC denied the NOC, claiming there was no automated system or approved Deviation Settlement Mechanism (DSM) in Kerala to handle such open access transactions.

CUL argued that KSEBL’s refusal was not valid, as open access is a legal right under the Electricity Act, 2003, and their request complied with all necessary rules. They also said other open access consumers in Kerala were already receiving NOCs for power from exchanges (collective transactions), even though those were more complex than their proposed bilateral agreement.

The Commission reviewed the issue and found that SLDC’s reasons for denial were not acceptable. The Commission noted that the delay in implementing software systems or DSM was not a valid excuse to deny open access. The petitioner had submitted all required details, and if any part of the application was incomplete, the SLDC was supposed to inform the petitioner clearly, but it did not.

KSERC emphasized that open access is a right and cannot be refused because of a lack of administrative systems or internal delays. It also reminded that SLDC has already been doing 15-minute interval accounting for other consumers since 2021. The Commission stated that SLDC and KSEBL must act as per the law and not deny open access unless there is a technical reason, such as a lack of transmission capacity.

In its order, the Commission directed SLDC to clearly inform the petitioner about any defects in their application within three days. After that, the petitioner must submit a corrected application with fees, and SLDC must grant the NOC within the time frame specified by national rules. If SLDC fails to respond, the permission will be considered granted.

KSERC also said that delays from KSEBL’s Co-ordination Committee in handling the dispute were unacceptable and must not happen in the future. The Commission clarified that even if the generator is considered an Independent Power Producer instead of a Captive Power Plant, SLDC should not delay the NOC, although additional charges might apply.

Finally, KSERC warned that future denials of open access by SLDC or KSEBL without valid legal reasons could lead to penalties. The petition was concluded with clear directions for compliance.