The Karnataka Electricity Regulatory Commission (KERC) has issued an order addressing concerns raised by stakeholders regarding the imposition of grid support charges on Captive Power Plants (CPPs), including Solar Rooftop Photovoltaic (SRTPV) plants. Various stakeholders had submitted representations to the Commission, expressing their concerns that such charges could potentially discourage investment in captive power generation and were not in line with the provisions of the Electricity Act, 2003.
The Electricity Act, 2003, specifically under Section 9, provides individuals with the right to establish, operate, and maintain captive generating plants. This section also encourages the growth of captive generation, which is seen as a way to enhance energy security, improve supply reliability, and reduce dependence on the grid. The Commission acknowledged these concerns and stated that it is still reviewing the matter of levying grid support charges and parallel operation charges. As of now, the Commission has not finalized any decision regarding these charges.
In response to the representations, the KERC has clarified that no grid support charges will be imposed on captive power plants, including SRTPV plants, as long as they comply with the provisions of Section 9 of the Electricity Act, 2003, and the Electricity Rules, 2005. This directive will remain in effect until the Commission has made a final determination regarding the grid support charges. The Commission has instructed distribution and transmission licensees to follow this directive and refrain from imposing any such charges on captive generating plants, including SRTPV plants, until further notice.
This order was signed and issued by the Karnataka Electricity Regulatory Commission on January 15, 2025.
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