The document discusses regulations related to connectivity, open access, and long-term access in India's inter-state transmission system. It provides background on the relevant regulations and amendments. It describes the key aspects of connectivity, open access (short-term, medium-term, long-term), and long-term access applications and agreements. It also notes some concerns raised regarding generators over-relying on connectivity and short-term open access instead of long-term agreements.
1. Grant of Connectivity, Long-term Access and Medium-
term Open Access in Inter-State Transmission and
related matters Regulations, 2009
Sunil Kumar
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3. Background
Provided that the date for the coming into force of these
regulations shall be after the ‘detailed procedure’ of the Central
Transmission Utility has been approved by the Commission.
The Commission approved the detailed procedure on 31.12.2009.
First Amendment came into existence w.e.f. 7.9.2010.
Second Amendment came into existence w.e.f. 22.3.2012
Third Amendment came into existence w.e.f. 26.3.2013
Fourth Amendment came into existence w.e.f. 12.8.2014
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4. Open Access Regulations, 2004
Earlier the Regulations governing long term access were the
Central Electricity Regulatory Commission (Open Access in
Inter-state Transmission) Regulations, 2004, which governed the
long-term access and short-term open access in the inter-State
transmission system.
There was no separate provision for connectivity. Connectivity
was implied.
There was no category such as medium-term open access.
Long-term customers - The persons availing access to the inter-
state transmission system for a period of twenty five years or
more.
5. Open Access Regulations, 2004
Existing beneficiaries of a regional transmission system owned or
operated by the Central Transmission Utility were deemed to be
the long-term customers of the particular regional system owned
or operated by the Central Transmission Utility.
Short-term access allowed, by utilising -
(a) Inherent design margins,
(b) Margins available due to variation in power flows, and
(c) Margins available due to in-built spare transmission capacity
created to cater to future load growth
6. Open Access Regulations, 2004
“A long-term customer shall not relinquish or transfer his rights
and obligations specified in the Bulk Power Transmission
Agreement, without prior approval of the Commission and subject
to payment of compensation, as may be determined by the
Commission.”
“Allotment priority of a long-term customer shall be higher than
reservation priority of a short-term customer.”
“The nodal agency for arranging the long-term transmission
access shall be the Central Transmission Utility if its system is
used, otherwise the nodal agency shall be transmission licensee in
whose system the drawal point is located.”
7. Section 38 of the Electricity Act, 2003
•Central Transmission Utility (CTU)
•to ensure development of an efficient, co-ordinated and economical system
of inter-State transmission lines for smooth flow of electricity from generating
stations to the load centres;
to provide non-discriminatory open access to its transmission system for use
by
•any licensee or generating company on payment of the transmission
charges; or
•any consumer as and when such open access is provided by the State
Commission under sub-section (2) of section 42, on payment of the
transmission charges and a surcharge thereon, as may be specified by the
Central Commission.
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8. Basis objective of Connectivity
• In view of Developer’s finding it difficult to firm up beneficiaries at
the time of application for LTOA and therefore to develop
dedicated lines up to nearest point of connection (Pooling Point),
concept of Connectivity was introduced.
• These regulations provide for procedures and requirements for
obtaining connectivity to inter-state transmission system, availing
medium-term open access and availing long term access.
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9. Who can Connectivity to the inter-State transmission System?
◦ A generating station with installed capacity of 250 MW and above,
including a captive generating plant of exportable capacity of 250 MW
and above or
◦ A Hydro Generating station or generating station using renewable
source of energy, of installed capacity between 50 MW and 250 MW.
◦ One of the Hydro Generating stations or generating stations using
renewable sources of energy, individually having less than 50 MW
installed capacity, but collectively having an aggregate installed capacity
of 50MW and above, and acting on behalf of all these generating
stations, and seeking connection from CTU at a single connection point
at the pooling sub-station under CTU, termed as the lead generator, or;
◦ A bulk consumer who intends to avail supply of a minimum load of 100
MW from the Inter-State Transmission System.
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10. Steps involved in getting Connectivity
Filing of Application-
Regulation 5
Application Fee-
Regulation 6
Processing of Application-
Regulation 7
Grant of Connectivity-
Regulation 8
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11. Salient Features
Application
• Geographical location of the applicant, quantum of Power to be
interchanged.
• Filing of new application if there is change in location of applicant or
change in quantum of power to be interchanged more than 100MW .
System Study
• Nodal agency shall, in consultation and through coordination involved in
ISTS to be used, including STU, if state network is to be utilized.
• CEA (Technical Standards for Connectivity to the Grid) Regulations,
2007.
Connectivity
details
• While granting connectivity, the nodal agency shall specify the name of the sub-station or
pooling station or switchyard where connectivity is to be granted
• In case connectivity is to be granted by looping-in and looping-out on an existing or
proposed line, the nodal agency shall specify the point of connection and name of the line
at which connectivity is to be granted. The nodal agency shall indicate the broad design
features of the dedicated transmission line and the time frame for completion of dedicated
line
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12. Salient Features
Technical
Standard
• The applicant and all Inter-State Transmission Licensees including the
Central Transmission Utility shall comply with the provisions of Central
Electricity Authority (Technical Standards for Connectivity to the Grid)
Regulations, 2007.
Connection
Agreement
• The applicant or inter-State transmission licensee, as the case may be, shall
sign a connection agreement with the Central Transmission Utility or inter-
State transmission licensee owning the sub-station or pooling station or
switchyard or the transmission line as identified by the nodal agency where
connectivity is being granted:
Triparitate
agreement
• In case connectivity of a generating station, including captive generating plant or
bulk consumer is granted to the inter-State transmission system of an inter-State
transmission licensee other than the CTU, a tripartite agreement as provided in the
CEA (Technical Standards for Connectivity to the Grid) Regulations, 2007 shall be
signed between the applicant, the CTU and such inter-State transmission licensee.
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13. Salient Features
The grant of connectivity shall not entitle an applicant to
interchange any power with the grid unless it obtains long-term
access, medium-term open access or short-term open access,
except to undertake testing including full load testing by
injecting its infirm power into the grid before being put into
commercial operation, with the permission of the Regional Load
Despatch Centre, which will keep grid security in view while
granting permission.
Construction of dedicated line by CTU.
Bank Guarantee to be paid by applicant if dedicated line is
constructed by CTU as per Detailed Procedure 7 (3)
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14. Open Access
“Open access” means the non-discriminatory provision for the
use of transmission lines or distribution system or associated
facilities with such lines or system by any licensee or
consumer or a person engaged in generation in accordance
with the regulations specified by the Appropriate Commission;
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Open Access
Short Term Open Access
(1day to 1 month)
Medium Term Open
Access
(3 months to 3 years)
Long Term Access
(12 years to 25 years)
CTURLDC
15. Long-Term and Medium-Term Open Access
Regulation 9- Criteria for granting long-term access or medium-term
open access
◦ Before awarding LTA, the CTU shall have due regard to the
augmentation of inter-State transmission system proposed under the
plans of CEA
◦ MTOA shall be granted if the resultant power flow can be
accommodated in the existing transmission system or the transmission
system under execution:
◦ No augmentation shall be carried out to the transmission system for
the sole purpose of granting medium-term open access:
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16. Long Term Access
Regulation 12 - Application for Long-term Access
To contain name of the entity or entities to whom electricity is proposed
to be supplied or from whom electricity is proposed to be procured along
with the quantum of power
Where Augmentation of transmission system is required for granting
Open Access, and if quantum of power has not been identified in respect
of person to whom it is to be supplied or source from where electricity is
to be procured, quantum of power and target region(s) need to be
identified.
The Applicant to bear the transmission charges for such augmentation till
identification of source of supply or off-take points (beneficiaries)
Applicant i.e. Long term customer to bear transmission charges in
accordance with prevailing CERC Terms and Condition of Tariff
Regulations (subsequently substituted by Sharing Regulations, i.e. Point16
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17. Long Term Access
A generator would have an option to firm up the States in which
supply is to be made any time but at least three years in advance
before the commencement of long term access, or such time as
estimated by CTU, whichever is lesser, so that the transmission
service provider can construct necessary last mile connectivity.
The application for LTA shall be accompanied by a bank guarantee
of Rs 10,000/- (ten thousand) per MW of the total power to be
transmitted.
The bank guarantee shall be kept valid and subsisting till the
execution of the long-term access agreement, in the case when
augmentation of transmission system is required, and till
operationalization of long-term access when augmentation of
transmission system is not required
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18. Long Term Access
The bank guarantee may be encashed by the nodal agency, if the
application is withdrawn by the applicant or the long-term access
rights are relinquished prior to the operationalisation of such rights
when augmentation of transmission system is not required.
Will stand discharged with the submission of bank guarantee
required to be given by the applicant to the Central Transmission
Utility during construction phase when augmentation of
transmission system is required.
The CTU shall carry out the necessary system studies to evaluate if
additional augmentation of the transmission system is required.
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19. If it is required, the applicant would have to provide a bank guarantee
during construction phase shall not exceeding Rs. 5 lakh per MW of the
total power to be transmitted by that applicant through inter-State
transmission system.
Regulation-13- System Study by Nodal Agency
System will be conducted by CTU after the receipt of application in
consultation with STU, if State Network is to be used.
Based on System study, the nodal agency shall specify the inter-State
transmission system that would be required to give LTA.
System Strengthening elements for LTA may be established in
accordance with competitive bidding through Empowered Committee.
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Long Term Access
20. Regulation-14-Communication of Estimation of Transmission Charges:
Nodal agency will communicate the date from which long-term access shall
be granted and an estimate of the transmission charges likely to be payable
based on the prevailing cost, prices and methodology of sharing of
transmission charges.
Regulation-15- Execution of Long-term Access Agreement
Applicant shall sign an agreement in case LTA is granted by CTU in
accordance with the provisions made in the Detailed Procedure.
While seeking LTA to an inter-state transmission licensee, other than the
CTU, the applicant shall sign tripartite agreement with CTU and the inter-
State transmission licensee.
Agreement includes details like date of commencement of LTA, Point of
injection of into the grid and point of drawal from the grid and details of
dedicated line.
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Long Term Access
21. Regulation-16- Information to RLDC and SLDC
Immediately after grant of LTA, the nodal agency shall inform the
RLDCs and the SLDCs so that they can consider the same while
processing the grant of short-term open access.
Regulation-17- Renewal for Long-term Access
Long term access can be extended further by giving a written request to
CTU mentioning the period of extension, at least six months prior to
the date of expiry of the long-term access.
Provided further that in case no written request is received from the
long-term customer within the timeline specified above, the said long-
term access shall stand with drawn.
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Long Term Access
22. Regulation-18- Relinquishment of Access Rights
An LTA customer may relinquish the lon-term rights fully or partly
before the expiry of the full term of long-term access.
Long-Term Customer who has availed rights for at least 12 years:
◦ Notice of one (1) year: It will be possible to exercise exit option from
long term access without any financial liability if the access has been
availed for at least 12 years and an advance notice is given at least
one year before such exit.
◦ Notice of Less than One year: If a customer submits an application to
the CTU at any time lesser than a period of 1 year prior to the date
from which customer desire to relinquish the access rights, such
customer shall pay an amount equal to 66% of the estimated
transmission charges (net present value) for the stranded
transmission capacity period falling short of a notice period of one
year. 5/7/2015 22
Long Term Access
23. Long-Term Customer who has not availed rights for at least 12
years:
The regulations provide for exit option even before the period of
12years at a notice of one year but subject to payment of specified
charges if it is likely that the transmission capacity being vacated
will remain idle. Only in case the transmission capacity is likely to
be stranded, the concerned entity shall be required to pay 2/3rd of
the net present value of the estimated transmission charges for the
remaining period falling short of 12 years.
The compensation paid by the long-term customer for the stranded
transmission capacity shall be used for reducing transmission
charges payable by other long-term customers and medium-term
customers in the year in which such compensation payment is due
in the ratio of transmission charges payable for that year by such
LTA and MTOA customer
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Long Term Access
24. Medium Term (3 months to 3
years)
Step-5
Exit Option- MTOA customer may relinquish rights, fully or partly, by giving at least 30 days prior notice to nodal agency
Step-4
Depending upon available ATC/TTC, CTU shall grant MTOA within 40 days-Detailed Procedure 16
Step-3
CTU will send this to RLDC & SLDC for comments within 15th day and 25th day of 2nd month respectively
Step-2
Application received in a particular month, Application with longer time period have highest preference
Step-1
Filing of Application (Quantum, Region, Time Period, PPA/SPA)-Regulation 19
25. Relative Priority
Applications for long-term access or medium-term open access
shall be processed on first-come-first-served basis separately for
each of the aforesaid types of access:
Provided that applications received during a month shall be
construed to have arrived concurrently;
Provided further that while processing applications for medium-
term open access received during a month, the application seeking
access for a longer term shall have higher priority;
Provided also that in the case of applications for long-term access
requiring planning or augmentation of transmission system, such
planning or augmentation, as the case may be, shall be considered
on 30th of June and 31st of December in each year in order to
develop a coordinated transmission plan
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26. CERC
Concerns raised in connection with Connectivity and Long-
Term Open Access
1. The generators are mainly resorting to only Connectivity
2. The generators applying for LTA(even for part capacity) on target
regions basis with no long term tie-up for power supply
3. Commitment towards payment of transmission charges as per LTA.
4. Generators resort to STOA
5. Generators approaching CTU/CEA for transmission requirement
without permitting adequate time for development
resulting in sub-optimal development of the grid
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27. Cases Related to Issues:
440/MP/2014-Essar Power Limited-Issue related to
Connectivity
93/MP/2013 and 96/MP/2013 –Corporate Power Limited-
Change of Injection Point
311/MP/2013- East Coast Energy Limited – Construction of
Dedicated Line
153/MP/2012-PPN Power Gen. Co. Pvt Limited–Encashment
of Bank Guarantee by nodal agency due to unavailability of
gas.
92/MP/2014- Kerala State Electricity Board- Denial of MTOA
and Inter-se priority of MTOA and LTA
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The transmission network has been planned in accordance with LTA, large quantity of STOA cannot be accommodated cannot be planned.
Consequential impact of unplanned grid usage.
Tremendous pressure on the RLDCs/SLDCs which are last mile players in the entire chain.