IN Brief:
- Integrated renewable and battery systems could receive waivers lasting up to 25 years.
- Green Day Ahead Market purchases may count towards renewable-charging requirements.
- Eligible projects delayed by unavailable transmission infrastructure could retain waiver treatment.
India’s Central Electricity Regulatory Commission has proposed changes to inter-state transmission charging that would extend waiver treatment for qualifying renewable projects and integrated storage. The draft Fifth Amendment to the 2020 sharing regulations is open for comments until 31 August 2026.
The proposals address several areas where renewable generation, battery storage, pumped hydro, and General Network Access interact with transmission charges. CERC is seeking to clarify eligibility, waiver duration, charging-source accounting, and the treatment of projects delayed because transmission infrastructure is unavailable.
A battery energy storage system integrated with a renewable generating station or renewable hybrid generating station could qualify for an inter-state transmission charge waiver for up to 25 years. The period would run from the commercial operation date of the associated generating station and follow the applicable waiver trajectory.
The approach treats the renewable plant and integrated battery as one connection and scheduling arrangement for waiver purposes. A battery added later would not restart the clock, so augmentation or replacement during the asset life would remain tied to the original project timetable and commercial structure.
The draft also proposes separate accounting for battery charging cycles. Electricity charged directly from a co-located renewable source may qualify differently from energy drawn through the inter-state system. The National Load Despatch Centre would be expected to establish procedures covering metering, scheduling, source identification, and settlement.
That distinction matters because a storage plant consumes electricity before returning it. Its eligibility can vary according to the source of charging energy, even when the same battery and grid connection are used. Metering and certificates therefore become part of the commercial design rather than administrative tasks added after commissioning.
CERC proposes allowing electricity bought through the Green Day Ahead Market to contribute towards the requirement that at least 51% of a storage system’s annual charging energy comes from renewable sources. Operators would need certificates from the relevant power exchange to demonstrate the origin of the purchased electricity.
The provision would give storage projects another route to compliance when co-located generation is insufficient or unavailable. It also creates a requirement for accurate matching between market transactions, metered charging, and annual eligibility calculations.
For pumped-storage projects serving several beneficiaries, the regulator has proposed assessing compliance contract by contract where the complete plant misses the 51% renewable-charging threshold. Contracts meeting the requirement could retain waiver treatment, while non-compliant arrangements would remain chargeable. This avoids disqualifying the entire asset, although it increases scheduling and settlement complexity.
The amendment also addresses renewable projects delayed by unavailable inter-state transmission infrastructure. Eligible wind, solar, and hybrid developments could retain treatment based on their original firm connectivity date when the delay is attributable to the transmission system and the project satisfies the specified contracting and commissioning conditions.
The proposed protection is intended to prevent developers losing a time-limited benefit because the network connection arrives late. It would not provide an unrestricted exemption: waiver levels would remain linked to the original connectivity date, and projects would still have to meet contract-duration and commissioning requirements.
CERC is also revising transmission-deviation calculations for entities using General Network Access for Renewable Energy and temporary access. Further provisions cover regional entities connected to both the Central Transmission Utility and a State Transmission Utility, requiring information sharing so that access use and deviation charges can be calculated consistently.
The proposals reflect a system in which generation, storage, and network access no longer fit simple one-directional arrangements. A hybrid project may charge from its own renewable output, buy additional green electricity through a market, and discharge under a separate contract. The physical operation is manageable, but settlement rules must prevent double benefits and inconsistent charging.
Implementation will depend on detailed procedures issued after stakeholder consultation. Those procedures will have to define evidence requirements, meter configurations, certificate handling, scheduling, and the allocation of charges where several beneficiaries or charging sources are involved.
The amendment remains a draft, so developers cannot yet treat the 25-year waiver or delay protections as final. Consultation may change definitions, conditions, and implementation dates before notification.
The direction is nevertheless significant for India’s storage market. Longer waiver periods can improve project economics, while recognition of renewable electricity bought through organised markets gives operators greater flexibility. The practical value will depend on whether the final procedures remain clear enough for lenders, developers, system operators, and market participants to apply without prolonged settlement disputes.
