The Andhra Pradesh Electricity Regulatory Commission (APERC) has issued clarifications to Andhra Pradesh Power Transmission Corporation (APTRANSCO) on the applicability and implementation of its “Regulation on Power Evacuation from Captive Generation, Cogeneration and Renewable Energy Source Power Plants.”

The order addressed three specific queries raised by APTRANSCO on whether the regulation applies to non-renewable captive generation and cogeneration, the ownership and maintenance of certain transmission assets, and the applicability of Clause 16(2) on operation and maintenance responsibilities.

Applicability of Rules to Non-RE Captive and Cogeneration Projects

The Commission confirmed that Regulation 3 of 2017 applies to all captive generating plants and cogeneration projects, irrespective of whether they use renewable or non-renewable energy sources.

This conclusion was based on provisions of the Electricity Act, 2003, including Sections 30, 86(1)(e), and 181, along with relevant clauses of the National Electricity Policy (NEP) and National Tariff Policy (NTP).

The Commission referred to Section 2(8) of the Act, which defines a captive generating project as one primarily generating electricity for its use, and noted that the statutory and policy framework promotes both renewable and non-renewable captive generation and cogeneration.

It highlighted Clause 5.2.26 of the NEP, which emphasises priority grid interconnection for captive generators, and Clause 5.12 of the NTP, which underlines the role of captive generation in providing reliable and cost-effective power to industries, particularly small and medium enterprises.

Ownership and Transfer of Transmission Assets

Regarding which projects are to be transferred to APTRANSCO and which remain with the generators or developers, APERC cited Section 30 of the Electricity Act, 2003, Clause 5, and the relevant portion of Clause 14 of the regulation.

It reiterated 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 (33 kV or EHT), will remain the power producers’ property. These producers must operate and maintain them in compliance with applicable technical and safety standards and grid codes.

However, the transmission lines or distribution lines from the common metering point of the pooling sub-station or pooling bus to the APTRANSCO or the relevant distribution company (DISCOM) grid must be owned and maintained by them, irrespective of who funded their construction.

The Commission directed APTRANSCO/DISCOMs to take over such assets immediately if not already done, following due procedures. Any modifications to these lines by power producers must not affect approved evacuation capacity or cause generation loss.

O&M Responsibilities

Regarding whether Clause 16(2) of the regulation applies irrespective of asset transfer, the Commission clarified that the provision is undeniable. APTRANSCO/DISCOMs must maintain the lines and substations under their ownership or control.

Additionally, the associated operation and maintenance costs will be treated as pass-through expenses by the Commission when determining wheeling and transmission charges for the relevant licensee or the state transmission utility.

Recently, APERC determined connection charges for new or additional loads up to 150 kW to streamline electricity connections for small and medium consumers.

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