Delhi Electricity Regulatory Commission (DERC) has issued draft regulations to fix the threshold size for intrastate transmission system (InSTS) schemes to be developed under the tariff-based competitive bidding (TBCB) mechanism.
Known as “Draft Delhi Electricity Regulatory Commission (Threshold Limit for the Development of Intra-State Transmission Projects under the Tariff Based Competitive Bidding) Regulations, 2024,” DERC is currently seeking public comments and suggestions to the same.
Threshold limit set at Rs.150 crore
A major component of these regulations is the fixing of Rs.150 crore as the minimum threshold limit for InSTS schemes to be awarded under the TBCB modality. This limit represents the cost of the scheme, excluding land cost, which has been formulated by the state transmission utility (STU) and approved by DERC. The STU, in this case, is Delhi Transco Ltd (DTL).
This threshold limit will be applicable to all new InSTS scheme that have not yet been approved by DERC.
The draft regulations also state that the entire intra-state independent transmission projects, including any upstream/downstream projects, shall be designed as a single project for inviting bids for the development of the project through TBCB.
Exceptional cases
The draft regulations also allow the STU to implement any InSTS scheme above the threshold limit (of Rs.150 crore) to be implemented under the “cost-plus” method in exceptional cases, but with prior approval from DERC. Such exceptional cases could arise for specific reasons like the project is of critical nature or there are ownership interface issues. Ownership interface issues typically arise when the ownership of assets to be created under a proposed InSTS scheme cannot be delineated from the existing transmission assets.
Conversely, the STU could also deploy the TBCB mode for InSTS schemes costing below Rs.150 crore if there valid reasons to do so and with prior approval from DERC.
Also read: DERC grants regulatory approval to commercial-scale BESS project
Featured photograph (source: Tata Power Delhi Distribution Ltd) is for representation only.
