India amends guidelines for cross-border electricity trade

Now, electricity export will only be permitted if it was generated using imported coal.

The Ministry of Power has issued updated guidelines on the import/export of electricity.

Under the amended rules, electricity export from coal-based power plants “shall be allowed only if such electricity is generated utilising imported coal or spot e-auction coal or coal obtained from commercial mining or from any other source as specified by Government of India.”

If the electricity was generated from gas-based plants, export shall only be allowed if this was generated from utilising imported gas or gas from any other sources as specified by the government. 

The amended guidelines also state that “Indian Generating Station(s) supplying electricity exclusively to neighbouring countries may be allowed to build dedicated transmission lines for connecting to the transmission system of neighbouring countries keeping in view technical and strategic considerations.”

The construction of dedicated transmission line shall be allowed subject to approval of the Designated Authority, in accordance with the provisions under the Electricity Act, 2003 at the cost inbuilt in the contract agreement.

India may also permit connection of such generating stations to its grid to facilitate sale of power within the country in case of sustained non-scheduling of full or part capacity or default notice issued by the generator for any default including delayed payment under the power purchase agreement.