TBCB and RTM projects approved by India's Power Ministry

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An update on new power projects approved by power ministry

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TBCB and RTM projects approved by India's Power Ministry

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  • The story: The Union power minister approved 23 new inter-state transmission system projects of worth Rs 15,893 crore. Out of the 23 ISTS project, 13 have an estimated cost of Rs 14,766 crore. These will be developed under Tariff Based Competitive Bidding (TBCB). Ten projects at an estimated cost of Rs 1,127 crore will developed under Regulated Tariff Mechanism (RTM).
  • Goal: The new transmission projects will facilitate - (i) Evacuation system for 14 GW of renewable projects in Rajasthan, (ii) 5 GW of RE projects in Gujarat, (iii) 1 GW Neemuch Solar Park in Madhya Pradesh and (iv) Feeding areas near Akhnoor & Jammu region by setting up a Siot Substation in Jammu.
  1. The new projects were approved after examining the recommendations of National Committee on Transmission. Approval was given in accordance with the National Tariff Policy 2016, which provides that ISTS project is developed through TBCB.
  2. Transmission network expansion under these projects will provide for seamless transfer of power from power surplus regions to power deficit regions. Thus, it will optimise the use of generation resources and meet the demands of end consumers without any transmission limitations. It would further assist the growth of renewable energy-based capacity.
  • Tariff-based competitive bids: TBCB are the best way to transmit green energy at minimum cost to the masses. Under these norms, developers with lowest average electricity tariffs from a proposed project get to set it up, as opposed to “cost-plus model” in which projects were set up through pacts with distribution utilities.
  • National Tariff Policy 2016: The National Tariff Policy 2016 provides for imposition of penalties on the distribution companies for power cuts. However, it provides exceptions in case of Acts of God or technical faults. As per the policy, the State Electricity Regulatory Commissions (SERC) and Joint Electricity Regulatory Commissions (JERC) have been mandated not to consider Aggregate Technical and Commercial (AT&C) losses of more than 15% for determination of tariff. It also brought cross subsidy between ±20% of the average cost of supply.
  • EXAM QUESTIONS: (1) Explain the concept of 'net metering'. (2) Explain the structure of India's national power grid. (3) What is grid failure or power blackout? Why does it happen? Explain.
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                    PT's IAS Academy: TBCB and RTM projects approved by India's Power Ministry
                    TBCB and RTM projects approved by India's Power Ministry
                    An update on new power projects approved by power ministry
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