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CERC proposes to grant trading licence to NTPC for executing RE projects

NTPC had approached the CERC to get a Category `I` license for inter-state trading in electricity in all states and Union Territories of India

CERC proposes to grant trading licence to NTPC for executing RE projects
CERC proposes to grant trading licence to NTPC for executing RE projects

New Delhi: The Central Electricity Regulatory Commission (CERC) has proposed to grant electricity trading license to state-run National Thermal Power Corporation (NTPC) in order to allow it to in implementing renewable energy projects, especially solar and wind energy projects across the country. NTPC had approached the CERC to get a Category `I` license for inter-state trading in electricity in all states and Union Territories of India.

NTPC’s petition

The thermal power company had said in its petition that it had been asked by the Ministry of New and Renewable Energy (MNRE) to implement 15 GW of solar PV projects. It said that it needed the trading licence to set up this capacity. It added that since it was an intermediary procurer, NTPC would be required to aggregate the solar power purchased from different generators and sell it to the distribution licensee/company (DISCOM). Therefore, in this scenario, it will be playing the role of a trader.

CERC’s observation

After scrutinising the request, the CERC was of the opinion that even though NTPC did not meet the current ratio and liquidity ratio criteria, it has a strong balance sheet and the trust of shareholders. The regulatory body added that the PSU, however, does meet other criteria for grant of trading license as required under the ‘Trading License Regulations’ and is financially sound with regard to liquidity for carrying out electricity trade.

CERC also said that in keeping with the policy of the government for promoting renewable energy, it would relax the current ratio and liquidity ratio requirement in public interest and proposes to grant Category-I trading license to NTPC. Currently, NTPC has 873 MW of solar PV projects under operation and 268 MW of solar PV project under various stages of development.

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