ITC Limited Overcomes Hurdles For Inter-State Wind Energy Open Access, Secures Approval For Captive Consumption

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ITC Limited has filed a petition seeking registration in the National Open Access Registry (NOAR) for inter-state short-term open access to the energy generated by its 46 MW wind power project in Anantapur District, Andhra Pradesh. The company aims to use this energy for captive consumption at its factories in Bollaram and Bhadrachalam, Telangana.

The wind power project in Anantapur District has three 33 kV feeders that converge at the 33 kV bus in a 100 MW pooling substation at Tagguparthi village. The energy is then stepped up to 132 kV and connected to the APTRANSCO 220/132/33 kV substation at Kalyandurg. The electricity is further distributed to the industrial units in Telangana.

ITC Limited has established an industrial unit in Bhadrachalam, Telangana, for the production of paperboards. This unit is a consumer of the North Power Distribution Company of Telangana Ltd with a Contracted Maximum Demand (CMD) of 5000 kVA. The electricity needs are met partially from captive co-generation plants, partly from the Anantapur wind generation plant through short-term inter-state open access, and partly through power purchases from exchanges and the CMD with the distribution licensee.

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Similarly, the Bollaram unit, engaged in the manufacture of poly-coated paperboard, is a consumer of the South Power Distribution Company of Telangana Ltd with a CMD of 2501 kVA. The electricity requirements are fulfilled partly from the Anantapur wind generation plant through short-term inter-state open access and partly or wholly from the CMD with the distribution licensee.

ITC Limited has faced challenges in obtaining registration in the NOAR, with delays attributed to procedural issues with the Telangana State Load Dispatch Centre (TS-SLDC). The company highlights the importance of open access for its wind energy, emphasizing that denial could lead to stranded energy and significant harm.

The company submitted all required documents, including NABL test reports, for the registration process. The TS-SLDC raised concerns related to an Open Access Undertaking, which is typically applicable to consumers drawing power over contracted amounts through open access. ITC Limited argues that this undertaking is not relevant to its case, as it seeks short-term inter-state open access for energy generated at its captive wind generation plant.

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The petition outlines the necessity of securing open access for the company’s wind energy to avoid irreparable harm and injury. The registration issues have been ongoing since December 2021, prompting ITC Limited to approach the regulatory commission for resolution.

During the hearing, the State Load Dispatch Centre (SLDC) raised queries about drawal capacity, leading to clarifications and corrections by ITC Limited. The company emphasized that it has fulfilled all requirements and submitted the necessary documents for NOAR registration.

In July 2022, the Telangana SLDC approved the registration applications for ITC Limited’s Bollaram and Bhadrachalam units, confirming that the registration had been approved and reviewed by both Telangana SLDC and Southern Regional Load Dispatch Centre (SRLDC). ITC Limited’s petition sheds light on the challenges faced by industries seeking inter-state short-term open access to renewable energy. The resolution underscores the importance of harmonizing procedures and documentary requirements for intra-state components of inter-state open-access transactions.

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Please view the document below for more details.

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