APERC Issues Key Clarifications On Captive, Cogeneration, And Renewable Energy Power Evacuation Rules In Andhra Pradesh

The Andhra Pradesh Electricity Regulatory Commission (APERC) issued clarifications on the applicability and operational details of Regulation No. 3 of 2017, which governs power evacuation from captive generation, cogeneration, and renewable energy source power plants. APTRANSCO had sought guidance on specific clauses, and the Commission, after review, issued its orders. On the first issue, APERC confirmed that Regulation 3 of 2017 applies to both renewable energy (RE) and non-renewable energy-based captive generation and cogeneration facilities. The decision was based on provisions in the Electricity Act, 2003, the National Electricity Policy, and the National Tariff Policy, which promote both captive and cogeneration projects for a reliable, quality, and cost-effective power supply. The Commission clarified that “captive generating plant,” as defined under Section 2(8) of the Act, covers all such plants irrespective of whether they use RE or non-RE resources, and the regulation is applicable to all captive and cogeneration plants as stated in clause 3(c).

On the second issue, concerning the ownership and maintenance responsibility of certain project components, APERC referred to clauses 5 and 14 of the regulation. It ruled that internal works within solar or wind farm sites up to the pooling sub-station, including the 11 kV or 33 kV network and pooling sub-station, will remain under the ownership and maintenance of the power producers. However, transmission or distribution lines from the pooling sub-station’s common metering point to the APTRANSCO or DISCOM grid will be owned and maintained by APTRANSCO/DISCOMs, regardless of who bore the construction costs. The Commission directed APTRANSCO/DISCOMs to take over such lines immediately, following due procedures, and maintain them. Any modifications to these lines must not reduce evacuation capacity or cause generation loss to producers.

On the third issue, regarding Clause 16(2) of the regulation, APERC clarified that the clause applies to all cases where APTRANSCO/DISCOMs own or control the lines and substations, not only to projects transferred to them. Under this clause, the licensee responsible for a line or substation must maintain it, and associated operation and maintenance costs will be considered a pass-through when determining wheeling and transmission charges. The Commission reiterated that APTRANSCO/DISCOMs must maintain all such assets under their control.

These clarifications aim to ensure smoother operational responsibilities between project developers and transmission/distribution utilities, avoid disputes over ownership and maintenance, and safeguard uninterrupted power evacuation.