INDIA Law and Practice Contributed by: Anupam Varma, Poonam Verma Sengupta, Sakshi Kapoor and Rajesh Jha, JSA
(b) Grid connectivity and commercial arrangements
sion or adopted where discovered through com- petitive bidding. • Project development and operation : Generation facilities are also subject to regulations, notifica- tions, procedures and directions issued by the MoP, the MNRE, the Department of Atomic Energy, the CEA, CERC and the SERCs. 3.2 Obtaining Approvals to Construct and Operate Generation Facilities Required Approvals Obtaining approvals to site, construct and operate a commercial generation facility in India involves a multi- layered regulatory process involving central, state and local authorities. The approvals required vary depend- ing on the nature, size and location of the project. Broadly, the approvals may be categorised as follows. (a) Pre-establishment (land, environment and project development) • Land use : Developers must secure rights over the project land and ensure that it can be lawfully used for the proposed purpose. Where applicable, approvals for land conversion, diversion of for- est land and other land-related permissions must also be obtained. For example, agricultural land may require conversion for industrial use under the applicable state laws, while projects proposed on forest land require prior approval for diversion of such land under the applicable legal framework. • Environmental approvals : Conventional generation projects, including thermal, nuclear and specified hydroelectric projects, are subject to a comprehen- sive environmental approval process. Depending on the nature of the project, this may include an Environmental Clearance from the Ministry of Envi- ronment, Forest and Climate Change (MoEFCC) or the State Environment Impact Assessment Author- ity (SEIAA), Consent to Establish and Consent to Operate from the relevant State Pollution Control Board, and other approvals prescribed under applicable environmental laws. Renewable energy projects are generally subject to a comparatively simplified environmental approval framework, although project-specific approvals may still be required depending on the nature and location of the project.
• Grid connectivity : Generation projects must obtain connectivity to the ISTS or the intra-state trans- mission system, as applicable. Connectivity to the ISTS is governed by the CERC (Connectivity and General Network Access to the Inter-State Trans- mission System) Regulations, 2022, including the General Network Access (GNA) framework. • Power off - take and open access : Depending on the project structure, developers may be required to obtain tariff adoption or procurement approvals, where applicable, and approvals relating to open access. Electricity may be supplied under PPAs, through open access arrangements or on power exchanges. (c) Construction and safety approvals • Construction approvals : Depending on the project, additional approvals may be required for laying associated transmission infrastructure, rights of way, groundwater extraction, highway and railway crossings, aviation clearance and other project- specific requirements. • Fire and safety approvals : Developers must also comply with applicable fire safety, labour and building requirements during construction. (d) Pre-operation and commissioning • Electrical safety : Prior to energisation, approval must be obtained from the Chief Electrical Inspec- tor to Government or the competent electrical inspector. • Commercial operation : Before commercial opera- tion, the project must also obtain complete testing and grid synchronisation approvals in accordance with the applicable Grid Code and the procedures prescribed by the RLDC or the SLDC, as applica- ble. Environmental Impact Assessment Projects requiring prior environmental clearance are subject to an environmental impact assessment and public consultation under the Environmental Impact Assessment Notification, 2006, unless specifically exempt. Public consultation comprises a public hear- ing conducted by the relevant State Pollution Control Board and consideration of written representations
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