In a major development, the Power Ministry of India has rolled out a wide set of new regulations aimed at fostering ease of doing business, particularly for industries engaged in the production of green hydrogen. These groundbreaking rules are created to facilitate the establishment of energy storage capacity and play a critical role in promoting energy transition and security.

Under the newly introduced guidelines, consumers with a specified load capacity and Energy Storage Systems (ESS) have been granted the authority to independently establish, operate, and maintain dedicated transmission lines without the burden of acquiring a license. This transformative provision, previously exclusive to generating companies and captive generating stations, now paves the way for a new category of bulk consumers. This strategic move is expected to unlock more accessible electricity and strengthen grid reliability, bringing substantial benefits to various industries and commercial establishments.

Clarifying the complexities of the regulations, the Ministry of Power asserted, "The new rule mandates that a generating company, an entity setting up a captive generating plant, or a consumer with a load of not less than 25 megawatts for interstate transmission systems and 10 megawatts for intrastate transmission systems, shall be exempt from obtaining a license for establishing, operating, or maintaining a dedicated transmission line, provided they adhere to the regulations, technical standards, guidelines, and procedures stipulated under the Act."

The announcement also addressed a longstanding concern related to Open Access, a fundamental feature of the Electricity Act, of 2003. The Ministry underscored the barrier posed by excessive Open Access charges imposed by certain State Regulators, limiting the effective utilization of this facility by consumers, especially commercial establishments and industries. Responding to this challenge, the new regulations incorporate provisions to rationalize open access charges, introducing detailed procedures for determining wheeling charges, state transmission charges, and additional surcharges.

Elaborating on the gradual reduction of additional surcharges, the Ministry of Power emphasized that consumers benefiting from General Network Access or Open Access will witness a linear reduction, with complete elimination within a four-year timeframe from the date of the grant. Importantly, this additional surcharge will apply exclusively to consumers who are or have been consumers of the concerned Distribution licensee, providing relief to those who have never been affiliated with the Distribution licensee from this financial responsibility.

All these groundbreaking regulations from the Power Ministry mark a significant step towards facilitating a conducive environment for businesses, driving energy sustainability, and facilitating a transition towards a powerful and reliable energy landscape in the country.

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References: 

• https://powermin.gov.in
• https://www.aninews.in
• https://twitter.com/MinOfPower