India tightens rules on cross-border electricity exports, sets new conditions for coal and gas-based power, ET EnergyWorld


New Delhi: The ministry of power announced amendments to the “Guidelines for Import/Export (Cross Border) of Electricity – 2018” to regulate and streamline the export of electricity generated from coal and gas-based plants in India. According to the revised guidelines, electricity exports from coal-based plants are now permitted only if the coal used is sourced through imports, commercial mining, or spot e-auction. For gas-based plants, the gas must be imported or obtained from specified approved sources.

“Export of electricity from India by a generating company/distribution licensee directly or through trading licensee shall be allowed only if such electricity is generated utilizing imported coal or spot e-auction coal or coal obtained from commercial mining or from any other source as specified by the Government of India from time to time; provided that such restrictions shall not be applicable for collective transactions through power exchange(s) in India,” said notification dated August 12.

The guidelines, amended with the approval of the Minister of Power, also include provisions for Indian generating stations that exclusively supply electricity to neighbouring countries. These stations may construct dedicated transmission lines subject to approval by the Designated Authority under the Electricity Act, 2003. The costs associated with these constructions are to be included in the contracts signed with the neighbouring nations.

In addition to regulating exports, the new guidelines allow for the connection of these stations to the Indian grid. This connection can be utilized to sell power within India in scenarios of sustained non-scheduling or payment defaults by the neighbouring countries, ensuring optimal use of generated capacity.

The ministry of power has communicated these changes to all relevant stakeholders, including the energy secretaries of all states and union territories, to ensure compliance with the new regulatory framework. The updates aim to enhance the management of cross-border electricity trade while safeguarding India’s energy resources and economic interests.

  • Published On Aug 14, 2024 at 04:18 PM IST

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