To facilitate better access to the national electricity transmission network to power generation companies, the government has notified the Electricity (Transmission System Planning, Development and Recovery of Inter-state Transmission Charges) Rules 2021.
As per the new rules, while seeking transmission access, power plants will not have to specify their beneficiaries, rather, state power distribution and transmission companies will be able to buy electricity from short term and medium term contracts and optimise their power purchase expenses.
The new rules, apart from providing generation companies access to electricity transmission network, will also lead to an overall change of the transmission system, a statement issued by the power ministry said.
As of now, power generation companies apply for long term access (LTA) with transmission companies, depending on their supply agreements. Depending on the LTA application, additional or incremental transmission capacity is provided to them.
With the government’s increasing thrust on renewable energy, the need for changing the current transmission system was realised and therefore the new rules were introduced, official sources said.