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

Context: Electricity (Transmission System Planning, Development and Recovery of Inter-State Transmission Charges) Rules 2021 promulgated by Power Ministry.

Details

  • The promulgation of the Rules paves the way for overhauling the transmission system planning, towards giving power sector utilities easier access to the electricity transmission network across the country.
  • As per the new rules, while seeking transmission access, power plants will not have to specify their beneficiaries, rather, state power distribution and transmission companies will be able to buy electricity from short term and medium-term contracts and optimise their power purchase expenses.
  • As of now, power generation companies apply for long term access (LTA) with transmission companies, depending on their supply agreements. Depending on the LTA application, additional or incremental transmission capacity is provided to them.
  • With the government’s increasing thrust on renewable energy, the need for changing the current transmission system was realised and therefore the new rules were introduced.
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FAQs on PIB Summary- 3rd October, 2021 - PIB (Press Information Bureau) Summary - UPSC

1. What are the Electricity (Transmission System Planning, Development and Recovery of Inter-State Transmission Charges) Rules 2021?
Ans. The Electricity (Transmission System Planning, Development and Recovery of Inter-State Transmission Charges) Rules 2021 are a set of regulations that govern the planning, development, and recovery of inter-state transmission charges in the electricity sector. These rules provide guidelines for the efficient and reliable transmission of electricity across different states in India.
2. What is the purpose of the Electricity (Transmission System Planning, Development and Recovery of Inter-State Transmission Charges) Rules 2021?
Ans. The purpose of the Electricity (Transmission System Planning, Development and Recovery of Inter-State Transmission Charges) Rules 2021 is to ensure the smooth operation of the inter-state transmission system in India. These rules aim to facilitate the planning and development of a robust transmission infrastructure, as well as establish a mechanism for the recovery of transmission charges from the entities using the inter-state transmission network.
3. How will the Electricity (Transmission System Planning, Development and Recovery of Inter-State Transmission Charges) Rules 2021 impact the electricity sector?
Ans. The Electricity (Transmission System Planning, Development and Recovery of Inter-State Transmission Charges) Rules 2021 are expected to have a positive impact on the electricity sector. These rules will promote efficient transmission system planning and development, leading to improved reliability and stability in the transmission of electricity across different states. Additionally, the rules will ensure a fair and transparent mechanism for the recovery of inter-state transmission charges, which will contribute to the financial sustainability of transmission infrastructure.
4. What are the key provisions of the Electricity (Transmission System Planning, Development and Recovery of Inter-State Transmission Charges) Rules 2021?
Ans. The key provisions of the Electricity (Transmission System Planning, Development and Recovery of Inter-State Transmission Charges) Rules 2021 include guidelines for the preparation of a national electricity plan, the identification of transmission projects, the determination of inter-state transmission charges, and the establishment of a transmission planning committee. These provisions aim to streamline the transmission planning process and ensure the optimal utilization of transmission infrastructure.
5. How will the Electricity (Transmission System Planning, Development and Recovery of Inter-State Transmission Charges) Rules 2021 contribute to the growth of renewable energy in India?
Ans. The Electricity (Transmission System Planning, Development and Recovery of Inter-State Transmission Charges) Rules 2021 will play a crucial role in supporting the growth of renewable energy in India. These rules will facilitate the integration of renewable energy projects into the national electricity grid by ensuring the availability of adequate transmission infrastructure. Additionally, the rules will provide a transparent mechanism for determining inter-state transmission charges, which will encourage the development of renewable energy projects in different states and promote the efficient transfer of renewable power across state boundaries.
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