CERC Power plants can now save on transmission cost

Press Trust of India / New Delhi August 7, 2009,

In a development that would help private power producers save significantly in constructing a dedicated transmission line, power regulator CERC today said that power plants with a capacity above a certain level will be directly connected to the central grid.

According to estimates, private power producers can save up to Rs 500 crore provided they are generating at least 250 Mw hydro power or 500 Mw thermal power.

According to the notifications released by the power sector regulator Central Electricity Regulatory Commission today, any generating plant having an installed capacity of at least 250 Mw can seek connectivity with the inter-state transmission system.

In order to encourage private players in the power sector, CERC Chairperson Pramod Deo said, "Private firms have always complained that public sector companies have access to PowerGrid Corporation whereas they have to build the transmission network on their own."

After these notifications, 500 Mw thermal plants and 250 Mw hydro power plants and any bulk consumer having at least a load of 100 Mw can seek connectivity with the inter-state transmission system, which is handled by PowerGrid.

All the grid-connected entities can seek connectivity for any period between three months and three years, to be given if transmission capacity is available in the existing system, an official statement said.