CERC Sanctions NTPC Category ‘I’ License for Inter State Trading of Electricity

The Central Electricity Regulatory Commission (CERC) in May had sanctioned the application filed by NTPC Ltd. to award the PSU with an electricity trading license in the country. The central commission has recommended permitting the power utility with a trading license, to help it in execution of renewable energy projects, particularly solar power projects in India and left the proposal open to oppositions and recommendations from recurring stakeholders.

In its order, the commission had specified, “we are of the view that in case of NTPC, despite the fact that it does not meet the current ratio and liquidity ratio criteria of the regulations, is financially sound with respect to liquidity for carrying out electricity trade. It meets other criteria for grant of trading license as required under the Trading License Regulations. Keeping in view the facts and circumstances of the case, we, relax the current ratio and liquidity ratio requirement in public interest in view of the policy of the Government of India for promoting renewable energy. Accordingly, the Commission proposes to grant Category-I trading license to the Petitioner.

And now, after no recommendations or objections were established in response to the notice issued. The commission after deliberation of the materials on record and its outcome in its previous order has directed that NTPC Limited be issued a Category ‘I’ license for inter-State trading in electricity in India.

NTPC had appealed the CERC pursuing a grant of Category I license for inter-state trading in electricity in all states and Union Territories. In its petition, the utility emphasized that it had been asked by the Ministry of New and Renewable Energy (MNRE) to implement 15 GW of solar PV projects, under the National Solar Mission.

The company conveyed that a trading license would help in setting up this capacity. It had stated that being an intermediate buyer, NTPC would be required to aggregate the solar power purchased from different solar power generators and sell it to the discoms. In such cases, the intermediary procurer will be playing the role of a trader, namely buying power from the developers and selling the same to one or more discoms.

Business | News published on 11/07/2019 by Moulin

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