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Key Policy Developments in India, Sep-Oct. 2021

Government invites EOI for installation of 1000MWh BESS

The government has given go-ahead for inviting the expression of interest for the installation of 1000MWh Battery Energy Storage System (BESS) as a pilot project. In this regard, SECI has called for the expression of interest for the procurement of 1000 MWh BESS. SECI has published the RFS bid document and the draft comprehensive guideline for procurement and utilization of BESS as a part of a generation, transmission, and distribution assets and with all ancillary services.

Comprehensive policy on energy storage in the power sector

The government of India is planning to bring out a comprehensive Policy on Energy Storage in Power Sector and has invited suggestions from the stakeholders and interested persons. The policy would broadly focus on regulatory, financial & taxation, demand management, and technological aspects to speed up the implementation of storage capacity, driven by the need to have increased flexibility in the Indian Power System to absorb the large-scale integration of renewable energy into the system during the coming years

Draft Electricity (Rights of Consumers) Amendment Rules, 2021

Because of the increasing pollution level, particularly in the metros and the large cities, Distribution Licensee shall ensure 24x7 uninterrupted power supply to all the consumers, so that there is no requirement of running the Diesel Generating sets. The State Commission shall give the trajectory of System Average Interruption Frequency Index (SAIFI) and System Average Interruption Duration Index (SAIDI) for the cities. Consumers, who are using the Diesel Generating sets as essential backup power, shall endeavor to shift to cleaner technology such as RE with battery storage, etc. in five years from the date of the publication of this amendment or as per the timelines given by the State Commission for such replacement, based on the reliability of supply by the distribution company in that city.

MoP redesigns Renewable Energy Certificate (REC) mechanism

Union Minister of Power and New & Renewable Energy, R K Singh has given his assent to amendments in the existing Renewable Energy Certificate (REC) mechanism. The salient features of changes proposed in revamped REC mechanism include the validity of REC would be perpetual i.e., till it is sold, floor and forbearance prices are not required to be specified, CERC to have monitoring and the surveillance mechanism to ensure that there is no hoarding of RECs. The RE generator who are eligible for REC will be eligible for issuance of RECs for the period of PPA as per the prevailing guidelines. The existing RE projects that are eligible for REC would continue to get RECs for 25 years.

Electricity (Transmission System Planning, Development and Recovery of Inter-State Transmission Charges) Rules 2021

The Union Ministry of Power has promulgated the Electricity (Transmission System Planning, Development and Recovery of Inter-State Transmission Charges) Rules 2021. This paves the way for overhauling of transmission system planning, towards giving power sector utilities easier access to the electricity transmission network across the country. The rules underpin a system of transmission access which is termed as a General Network Access in the inter-state transmission system. This provides flexibility to the States as well as the generating stations to acquire, hold and transfer transmission capacity as per their requirements. Thus, the rules will bring rationality, responsibility, and fairness in the process of transmission planning as well as its costs.

CESL's Grand Challenge to deploy e-buses

The Grand Challenge has invited State Transport Undertakings (STUs) to express their demand for electric buses and access the FAME II subsidy, for which a total of 3472 subsidised buses are available. The cities to be covered under the Grand Challenge are Mumbai, Delhi, Bangalore, Hyderabad, Ahmedabad, Chennai, Kolkata, Surat, and Pune. CESL intends to enhance its support to State governments in achieving their e-mobility targets and further build an infrastructure for e-mobility in the country. The Grand Challenge aims for a faster transition to green mobility across the country while creating a synergy between private operators and state governments.

Production Linked Incentive (PLI) scheme for automobile, auto component, and drone manufacturers

Taking steps forward towards the vision of an 'Aatmanirbhar Bharat', the government of India has approved the PLI Scheme for the Automobile Industry and Drone Industry with a budgetary outlay of Rs. 26,058 crore. The scheme has two components viz. Champion OEM Incentive Scheme and Component Champion Incentive Scheme. The Champion OEM Incentive scheme is a 'sales value linked' scheme, applicable on battery electric vehicles and hydrogen fuel cell vehicles of all segments. The Component Champion Incentive scheme is a 'sales value linked' scheme, applicable on advanced automotive technology components of vehicles, completely knocked down (CKD)/ semi-knocked down (SKD) kits, vehicle aggregates of 2-wheelers, 3-wheelers, passenger vehicles, commercial vehicles, and tractors, etc.

Author : ETN
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