Draft Amendment by CERC to Incentivize Green Hydrogen and Renewable Energy Sources
Key Ideas
  • CERC has introduced a draft amendment focusing on sharing of inter-state transmission charges and losses, emphasizing renewable energy sources like Green Hydrogen and wind energy.
  • The amendment provides specific waivers for Renewable Energy Generation Sources (REGS) based on wind or solar sources, incentivizing projects that achieve Commercial Operation Dates (COD) within certain timelines.
  • New provisions allow for waivers for offshore wind projects, hydro projects awarded contracts after June 30, 2025, and Battery Energy Storage Systems (ESS) operational before June 30, 2025.
  • Stakeholders can participate in the public consultation by submitting feedback to CERC via email or the SAUDAMINI Portal before the deadline of November 11, 2024.
The Central Electricity Regulatory Commission (CERC) has unveiled a draft amendment to the regulations governing the sharing of inter-state transmission charges and losses, with a specific focus on incentivizing renewable energy sources such as Green Hydrogen and wind energy. The amendment, titled “Draft Central Electricity Regulatory Commission (Sharing of Inter-State Transmission Charges and Losses) (Fourth Amendment) Regulations, 2024,” has been released for public consultation. One of the key highlights of the proposed amendments is the introduction of waivers for Renewable Energy Generation Sources (REGS) that are based on wind or solar sources. These waivers aim to encourage projects that achieve Commercial Operation Dates (COD) within specified timelines, offering financial incentives in the form of reduced transmission charges. For instance, a Green Hydrogen plant that commences COD on January 1, 2032, and sources power from a wind-based REGS operational since July 1, 2025, may be eligible for a 75% waiver on transmission charges. Similarly, projects declaring COD at certain intervals can benefit from varying degrees of waivers. The regulations also accommodate extensions for projects which are eligible for waivers and have scheduled CODs on or before June 30, 2025. Additionally, the amendment outlines waiver provisions for offshore wind projects, new hydro projects, and Battery Energy Storage Systems (ESS) operational before June 30, 2025. The incentives provided for ESS, including a 12-year waiver of transmission charges from the date of COD, serve as a boost for the adoption of energy storage technologies crucial for maintaining grid stability in renewable energy systems. Stakeholders have been encouraged to participate in the consultation process by sharing their feedback, suggestions, and objections with CERC via email or through the SAUDAMINI Portal. Feedback submissions are required to be made before the deadline of November 11, 2024, to be considered in the finalization of the regulations.
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