The Central Electricity Regulatory Commission (CERC) has issued the Fourth Amendment to the 2020 regulations governing the sharing of interstate transmission charges and losses. This amendment, notified on June 26, 2025, brings several key changes to transmission charge waivers and eligibility criteria across various types of renewable energy generating stations (REGS), energy storage systems (ESS), and green hydrogen and ammonia plants.
A significant revision was made to Regulation 9, affecting entities known as drawee DICs. Those located within the State control area but with separate General Network Access (GNA) not covered under the State distribution licensees’ GNA will now be apportioned transmission charges proportionately from the state’s total charges.
The amendment to Regulation 12 addresses projects having dual connectivity to both interstate and intrastate systems. In such cases, any deviation will be calculated based on net metered ex-bus injection beyond the combined GNA limits. It also mandates sharing access details with national and central transmission utilities.
Regulation 13 sees the most extensive updates. It now includes REGS based on offshore wind under the waiver provisions and revises the criteria and duration for transmission charge waivers across technologies. For REGS or RHGS based on solar and wind, projects commissioned by June 30, 2025, are eligible for a full 25-year waiver. For projects commissioned between July 2025 and June 2028, the waiver percentage reduces over time from 75% to 25%, with no waiver thereafter.
Energy storage systems (ESS) also receive a detailed framework. Hydro PSP ESS with construction awarded by June 30, 2028, qualifies for a 25-year waiver. Battery ESS projects receive up to a 12-year waiver, with eligibility varying based on connection type and energy source. Projects directly connected and charged from REGS get the highest benefits, with contingency provisions allowing up to 10% grid charging annually.
Hydropower projects have a separate waiver structure, with 100% waivers for 18 years if contracts are signed by June 2025. The waiver percentage drops similarly over the next three years, expiring after June 2028.
For offshore wind and green hydrogen or ammonia projects, the new regulations provide waivers based on their commissioning date. Offshore wind projects commissioned by 2032 get full benefits, reducing over the next three years and ending thereafter. Green hydrogen and ammonia plants are granted similar phased benefits, linked to their power sources and generation timelines.
Importantly, provisions are included to accommodate delays due to Force Majeure, allowing project COD extensions of up to one year in two six-month intervals without loss of waiver eligibility, provided such delays are certified by the appropriate authorities.
Other revisions include self-declaration of 51% renewable usage by ESS entities, which must later be verified by the NLDC. Incorrect declarations will lead to revised billing. Also, new provisions address terminal bay charges when generation COD is delayed, and how such charges will be treated under billing norms.
These amendments reflect a focused policy shift encouraging early commissioning of renewable and storage projects and ensuring transmission cost savings to eligible clean energy developers.
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