Government Grants License Exemption for Captive Power & Energy Storage

The Central government has introduced a significant policy change by granting exemption to captive power generators and consumers with a minimum load of 25 kW for interstate transmission, along with energy storage systems. This exemption allows them to establish, operate, and maintain dedicated transmission lines without the need for a license. The recent amendment by the Power Ministry to the Electricity Rules extends this privilege to consumers with a load of at least 10 kW for intrastate transmission systems.

This policy adjustment holds particular significance for industries, notably the burgeoning green hydrogen sector, which relies on renewable energy and necessitates dedicated transmission lines. The exemption streamlines the regulatory process and contributes to the ease of doing business for these industries.

It's worth noting that while generating companies and captive generating stations already enjoy the license exemption for transmission lines, this move expands the scope to encompass a new category of bulk consumers. This strategic shift is anticipated to not only make electricity more affordable for these consumers but also enhance grid reliability.

Additionally, the government has introduced new rules to rationalize open access charges, encompassing wheeling charges, state transmission charges, and additional surcharge. These measures are aimed at fostering a more conducive environment for the energy sector, aligning with broader objectives of promoting sustainability and ensuring reliable access to power resources.

News by Rahul Yelligetti