The Delhi Electricity Regulatory Commission (DERC) has released draft regulations to establish the threshold size for intrastate transmission system (InSTS) schemes developed under the tariff-based competitive bidding (TBCB) mechanism. The regulations, titled “Draft Delhi Electricity Regulatory Commission (Threshold Limit for the Development of Intra-State Transmission Projects under the Tariff Based Competitive Bidding) Regulations, 2024,” are open for public comments and suggestions.
A key aspect of the draft regulations is setting a Rs 1.5 billion threshold limit for InSTS schemes to be awarded under the TBCB modality. This threshold, which excludes land costs, has been formulated by the state transmission utility (STU), Delhi Transco Ltd (DTL), and approved by DERC. It applies to all new InSTS schemes not yet approved by DERC. The regulations stipulate that entire intra-state independent transmission projects, including any upstream or downstream projects, should be designed as a single project for bid invitations through TBCB.
The draft also allows for exceptions where the STU can implement schemes above the Rs 1.5 billion threshold under a “cost-plus” method with DERC’s prior approval. Exceptional cases may include projects of critical importance or those with ownership interface issues, where asset ownership cannot be separated from existing transmission assets. Conversely, TBCB can be applied to projects below the Rs 1.5 billion threshold if there are valid reasons, subject to DERC approval.