ReNew Energy Receives License for Inter-State Electricity Trading Across India
The company must comply with the regulations during the subsistence of the trading license
The Central Electricity Regulatory Commission (CERC) has granted an inter-state trading license to ReNew Energy Markets to trade power across India.
ReNew Energy Markets, a ReNew Power group company, filed a petition with the Commission seeking approval for an inter-state electricity trading license.
The company said it had published a public notice in line with the Trading License Regulation on September 3, 2021. However, it had not received any objections.
According to the Trading License Regulation, the company applying for a Category IV trading license must have a net worth of ₹100 million (~$1.33 million) and a liquidity ratio of 1:1 as on the date of the audited balance sheet accompanying the application. The volume of electricity proposed to be traded in a financial year will not be more than 2,000 million units.
The company also said that it would comply with all the requirements specified in the Trading License Regulations during the subsistence of the trading license if granted.
After analyzing submissions made by ReNew Energy Markets, the Commission observed that the company possessed the required net worth, current ratio, and liquidity ratio for grant of an inter-state trading license.
It said that the company was qualified for the grant of Category IV license for inter-state trading in electricity. ReNew had published a notice in newspapers seeking suggestions or objections but had received none.
However, the grant of license is subject to fulfilling the following conditions throughout the term of the license.
- The company should comply with the Electricity Act, 2003, Trading License Regulations, orders, and directions issued by the Commission.
- The company must not engage in power transmission during the period of subsistence of the license.
- The trading margin should be charged strictly in line with Trading License Regulations as amended from time to time.
- The licensee should regularly pay the annual license fee as per the provision of the CERC Regulations, 2012.
- Suppose the company fails to undertake trading in electricity within a year from the date of the license, it will be liable for revocation in line with the provision of the Act and Trading License Regulations.
- The company must submit all reports or information required under Trading License Regulations or any other regulation of the Commission as issued from time to time.
In 2019, CERC granted a ‘Category I Electricity Trading License’ to the National Thermal Power Corporation (NTPC) for electricity trading.
CERC had issued amendments to its previous regulations for the payment of fees for electricity trading. The regulations came into effect on April 01, 2020. Earlier, CERC had issued a notification to address the procedure, terms, and conditions for granting licenses for electricity trading.
Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.
Harsh Shukla is a staff reporter at Mercom India. Previously with Indian Express, he has covered general interest stories. He holds a Masters Degree in Journalism from Symbiosis Institute of Media and Communication, Pune.