The Central Electricity Regulatory Commission (CERC) has quashed transmission charge invoices of ₹21.97 million (~$229,483) raised by the Central Transmission Utility of India (CTUIL) on JSW Renewable Energy and directed it to recalculate charges proportional to the company’s delayed 100 MW wind-solar hybrid capacity.

The Commission held that JSW could not be billed for Karur Transmission’s 1,000 MW transmission system but rejected its claim for a complete waiver before the hybrid project achieved commercial operation.

Background

In September 2020, JSW Solar received a letter of award for a 310 MW interstate transmission system-connected wind-solar hybrid project.

In December 2020, JSW Solar received Stage-II connectivity from CTUIL for this capacity at the Karur pooling station in Tamil Nadu.

JSW received long-term access (LTA) from CTUIL in May 2021.

In June 2021, the Solar Energy Corporation of India (SECI) signed a power sale agreement with WBSEDCL for 100 MW of power from JSW’s hybrid project. In July 2021, SECI signed a power sale agreement with Chhattisgarh distribution companies for 170 MW of hybrid power. SECI signed a power purchase agreement with JSW later that month.

In November 2021, JSW signed a transmission service agreement with Karur Transmission (KTL).

In February 2022, CTUIL revised the LTA date for the 100 MW capacity to July 18, 2023. It also granted LTA for an additional 170 MW with a tentative start date of January 31, 2024.

In July 2022, KTL invoked the force majeure clause under the transmission service agreement for delays in setting up the transmission system. JSW rejected the claim.

In February 2023, CTUIL revised the LTA start date from January 31, 2024, to July 16, 2024.

In July 2023, SECI extended the scheduled commercial operation date (SCOD) for JSW’s 170 MW capacity because the related transmission system was not operational.

In September 2023, CTUIL converted the LTA for the total 270 MW capacity into deemed general network access (GNA).

KTL declared a deemed commercial operation date for its transmission system from September 24, 2023. It informed JSW and CTUIL that actual power transmission commenced on October 24, 2023.

CTUIL operationalized JSW’s 100 MW GNA from October 31, 2023.

In October 2023, SECI extended the SCOD for the full 270 MW capacity to 60 days after the actual LTA operationalization date.

CTUIL raised invoices of ₹3.67 million (~$38,303) and ₹18.3 million (~$191,149) for transmission charges on December 6, 2023, and January 1, 2024, respectively.

JSW approached CERC on behalf of JSW Solar to challenge CTUIL’s transmission charge invoices. It submitted that it was not liable to pay transmission charges because SECI had extended the project SCOD.

JSW argued that, under the Ministry of Power’s orders, the LTA and GNA commencement should also be delayed once the SCOD is extended.

JSW contended that the 100 MW GNA was wrongly operationalized from October 31, 2023, despite the extended SCOD. The GNA for the remaining 170 MW was not operationalized because the downstream transmission system was not ready.

JSW added that CTUIL wrongly billed it for the entire 1,000 MW KTL transmission system, although charges could at most apply to 100 MW of operationalized capacity.

CTUIL argued that JSW must pay the charges until its hybrid project achieves commercial operation, as SCOD extensions do not defer LTA and GNA liability. KTL submitted that its transmission system was commissioned on September 24, 2023, entitling it to full recovery under the transmission service agreement and the sharing regulations.

Commission’s Analysis

The Commission held that JSW was not entitled to a waiver from transmission charges before its generating station achieved commercial operation.

However, it noted that JSW could not be charged for KTL’s entire 1,000 MW transmission system when its operationalized GNA stood at 100 MW.

CERC determined KTL’s deemed commercial operation date as December 7, 2023. It quashed CTUIL’s invoices for ₹3.67 million (~$38,303) and ₹18.3 million (~$191,149).

The Commission directed CTUIL to recalculate the charges proportional to JSW’s delayed 100 MW capacity and reduce the liability as the hybrid project achieved commercial operation. It also directed CTUIL to adjust the transmission charges already paid by JSW.

This May, CERC proposed changes to the framework governing deviation settlement, infirm power injection, and payment timelines.

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