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<p>The Central Electricity Regulatory Commission (<a href="https://cercind.gov.in/" target="_blank" rel="noopener">CERC</a>) has granted an inter-state trading license to ReNew Energy Markets to trade power across India.</p>
<p><strong>Background</strong></p>
<p>ReNew Energy Markets, a ReNew Power group company, filed a petition with the Commission seeking approval for an inter-state electricity trading license.</p>
<p>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.</p>
<p>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.</p>
<p>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.</p>
<p><strong>Commission&#8217;s analysis</strong></p>
<p>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.</p>
<p>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.</p>
<p>However, the grant of license is subject to fulfilling the following conditions throughout the term of the license.</p>
<ul>
<li>The company should comply with the Electricity Act, 2003, Trading License Regulations, orders, and directions issued by the Commission.</li>
<li>The company must not engage in power transmission during the period of subsistence of the license.</li>
<li>The trading margin should be charged strictly in line with Trading License Regulations as amended from time to time.</li>
<li>The licensee should regularly pay the annual license fee as per the provision of the CERC Regulations, 2012.</li>
<li>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.</li>
<li>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.</li>
</ul>
<p>In 2019, CERC <a href="https://mercomindia.com/ntpc-trading-license-electricity/" target="_blank" rel="noopener">granted</a> a &#8216;Category I Electricity Trading License&#8217; to the National Thermal Power Corporation (NTPC) for electricity trading.</p>
<p>CERC had <a href="https://mercomindia.com/central-regulator-introduces-license-regulations/" target="_blank" rel="noopener">issued</a> 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 <a href="https://mercomindia.com/cerc-regulations-electricity-trading-license/" target="_blank" rel="noopener">issued</a> a notification to address the procedure, terms, and conditions for granting licenses for electricity trading.</p>
<p>Subscribe to Mercom&#8217;s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don&#8217;t miss any critical updates from the renewable industry.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/harsh-shukla/" class="vcard author" rel="author"><span class="fn">Harsh Shukla</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><p><img class="alignleft" src="https://mercomindia.com/wp-content/uploads/2022/02/Harsh-Shukla-293x300-1-new.jpg" width="99" height="102" /><a href="https://mercomindia.com/author/harsh-shukla/" target="_blank" rel="noopener"><strong style="color: #00b451">Harsh Shukla</strong> </a>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.</p>
<p><a href="https://mercomindia.com/author/harsh-shukla/">More articles from Harsh Shukla.</a></p>
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ReNew Energy Receives License for Inter-State Electricity Trading Across India

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