The Delhi Electricity Regulatory Commission (DERC) has introduced new draft regulations governing the development of intra-state transmission projects in Delhi. Named the “Delhi Electricity Regulatory Commission (Threshold Limit for the Development of Intra-State Transmission Projects under Tariff Based Competitive Bidding) Regulations, 2024,” these rules will be effective from the date they are published in the official Gazette.
Under these new regulations, a threshold limit of ₹150 crores, excluding land costs, has been set for new intra-state transmission projects. Any new project exceeding this cost, as formulated by the State Transmission Utility (STU) and approved by the Commission, must be awarded through a Tariff-Based Competitive Bidding (TBCB) process. This process will be managed by Bid Process Coordinators according to guidelines provided by the Central Government.
The regulations apply to all new intra-state transmission projects for which approval has not yet been granted by the Commission. For the bidding process, all related independent transmission projects, including upstream and downstream projects, must be treated as a single project.
If the STU needs to implement any transmission system exceeding the threshold limit through a cost-plus approach under Section 62 of the Electricity Act, this requires prior approval from the Commission. This approach is reserved for projects deemed critical, such as those serving defense, railways, or airports, or where ownership issues make it difficult to separate new assets from existing ones. Conversely, if a project is below the threshold limit but the STU has specific reasons for wanting to use TBCB, prior Commission approval is also necessary.
The Commission has the authority to relax or waive any of these regulations if needed. This can be done by issuing a general or special order, provided that all affected parties are given a chance to be heard. Additionally, the Commission may issue further orders or practice directions regarding the implementation of these regulations and procedures.
In case any difficulties arise in implementing the regulations, the Commission is empowered to take necessary actions to resolve these issues. This may include issuing further orders or directing the STU to undertake specific actions. Finally, the Commission retains the right to modify, add, or amend any provisions of these regulations at any time.
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- Source: https://solarquarter.com/2024/08/31/derc-sets-%e2%82%b9150-crore-threshold-for-intra-state-transmission-projects-under-new-2024-regulations/