Power projects should be granted connectivity on basis of PPAs: CERC

A staff paper suggests shifting from LoA-based approvals to PPA-linked or auctioned connectivity to ensure timely project execution and better use of grid assets

Power projects should be granted transmission connectivity based on power purchase agreements (PPAs) instead of letters of award (LoAs) for efficient utilisation of the transmission system, according to a staff paper uploaded by the Central Electricity Regulatory Commission on its website.

 

It has alternatively suggested following an auction mechanism to grant connectivity in the future with a firm commitment to implement the project by a specified date.

 

Around 31.8 gigawatts (GW) of capacity has been granted connectivity for which PPAs are yet to be signed, resulting in unused transmission lines.

 

“Generally, the RE (renewable energy) developers start implementing the project