In exercise of the powers conferred by Section 178 of the Electricity Act 2003 (36 of 2003) read with Section 66 thereof and the Guidelines on Import /Export (Cross Border) of Electricity, 2018 issued by the Ministry of Power, Government of India, and all other powers enabling it in this behalf, the Central Electricity Regulatory Commission hereby makes the following regulations to amend the Central Electricity Regulatory Commission (Cross Border Trade of Electricity) Regulations, 2019. As per the draft regulation the CBTE Regulations 2019 shall now be known as CERC (CBTE) Regulations, (Second Amendment), 2024. This regulation shall lead to following key changes as indicated below which Eninrac has analysed to develop an impact matrix consisting of both positive and negative impacts for the stakeholders relevant for this draft notification:
- Enhanced Market Integration: The regulation promotes structured frameworks for cross-border electricity trade, opening doors for enhanced market participation, especially for developers and utilities.
- Financial Obligations: Across stakeholders, the requirement for bank guarantees and connectivity charges poses financial challenges but ensures commitment and discipline in transactions.
- Focus on Grid Stability: The emphasis on cybersecurity, communication, and operational readiness across borders supports grid reliability but adds to compliance costs.
- Collaborative Opportunities: Hydro and renewable developers may find synergies in exporting clean energy, aligning with regional decarbonization goals.
Eninrac’s Impact Matrix for Draft Notification on Stakeholders:
|
Stakeholder |
Key Changes/Provisions |
Positive Impacts |
Negative Impacts |
Description |
|
Renewable Power Developers |
Introduction of GNA and T-GNA; Transmission charges; Dedicated infrastructure |
Simplified access mechanisms; Transparent cost structures |
Higher upfront costs due to bank guarantees and dedicated infrastructure |
Renewable developers can benefit from streamlined processes but need to manage additional financial and technical obligations. |
|
Stakeholder |
Key Changes/ Provisions |
Positive Impacts |
Negative Impacts |
Description |
|
Renewable Power Developers |
Provisions for cross-border trade of renewable power |
Potential market expansion via exports |
Competition from neighbouring countries with abundant renewable capacity |
Opens new revenue streams but may intensify price pressures. |
|
Conventional Power Developers |
Focus on renewables and cross-border access mechanisms |
Potential collaboration for hybrid solutions |
Reduced demand for conventional power |
Conventional developers must innovate (e.g., blending renewable integration) to remain competitive. |
|
Stranded asset risks |
Opportunities for transitioning to cleaner tech |
Economic risks if transition delays |
Conventional developers must innovate (e.g., blending renewable integration) to remain competitive. |
|
Stakeholder |
Key Changes/ Provisions |
Positive Impacts |
Negative Impacts |
Description |
|
Hydro Developers |
Dedicated transmission system and GNA mechanisms |
Enhanced export opportunities for hydro-rich regions |
Higher upfront investment and operational costs |
Hydro projects stand to gain, particularly in exporting surplus to neighbouring countries. |
|
One-time connectivity charges and guarantees |
Access to predictable revenue models |
Capital cost burdens |
Conventional developers must innovate (e.g., blending renewable integration) to remain competitive. |
|
|
Transmission Utilities |
CBTL development and GNA-based framework |
Additional revenue from access charges |
Increased operational and planning complexity |
Utilities will see growth but need robust planning for seamless integration and operations. |
|
Requirement to manage dedicated systems |
Opportunities to collaborate with neighbouring grids |
Disputes over cost-sharing |
Effective collaboration can minimize conflicts and drive regional energy integration. |
|
Stakeholder |
Key Changes/ Provisions |
Positive Impacts |
Negative Impacts |
Description |
|
Electricity Traders |
Licensing provisions and cross-border trading facilitation |
Expanded role in international transactions |
Higher entry barriers for smaller traders |
Larger traders can capitalize on opportunities, but smaller entities may face challenges. |
|
Fee structures and bank guarantee requirements |
Increased market activity benefiting well-capitalized traders |
Additional costs for small-scale players |
Encourages market consolidation, potentially increasing efficiency but reducing competition. |
