The Gujarat Electricity Regulatory Commission (GERC) has ruled on a petition concerning the use of land for Battery Energy Storage System (BESS) projects. The case involved the Gujarat Energy Transmission Corporation Limited (GETCO), which sought approval to allow the use of its substation land for setting up BESS projects. These systems are vital for storing energy generated from renewable sources and releasing it when needed, thus helping manage electricity supply efficiently.
GETCO filed the petition to obtain permission to use its land, specifically land not required for licensed transmission activities. It emphasized that only surplus land at various substations would be used, ensuring that no critical transmission infrastructure would be affected. This land, situated near substations, offers direct access to the electrical grid, making it a practical location for energy storage projects. The intention is to support the grid by storing energy during periods of excess generation and releasing it during peak demand.
The petitioner, GETCO, stated that the BESS projects would not interfere with its core business of electricity transmission. It was noted that while transmission assets like towers and lines would not be involved, the land could still serve as a base for BESS development. This move aligns with national guidelines on the procurement and use of Battery Energy Storage Systems, which were issued to help optimize the use of renewable energy resources.
The respondent in the case, Gujarat Urja Vikas Nigam Limited (GUVNL), did not object to the proposal. GUVNL had already initiated a process to set up BESS projects through competitive bidding. In fact, some tenders had already been issued for pilot projects at various substations. The commission reviewed these submissions, particularly noting that the proposed use of land would not involve significant capital investment from GETCO beyond the land itself.
A key aspect of the proposal is that BESS projects are not seen as a revenue-generating venture for GETCO. Instead, the benefits are expected to accrue to the public and other users of the transmission and distribution system. By storing energy from renewable sources, such as solar or wind power, these systems would ensure a more stable and reliable energy supply. This would be particularly useful during times when renewable energy generation is lower or when demand peaks.
The commission’s decision was in favor of GETCO’s request. It approved the use of surplus land at substations for BESS projects on a “right to use” basis. This means the land would be made available to BESS developers without altering the ownership or affecting the licensed transmission operations of GETCO. The approval was granted based on the understanding that the projects would support the energy grid without compromising GETCO’s transmission business.
The commission also noted that the BESS projects should comply with all technical standards and safety protocols. This includes ensuring that the installations do not pose any risk to the existing transmission system. Furthermore, GETCO was instructed to maintain separate accounts for the BESS activities, ensuring that no cross-subsidization occurs between the transmission business and the storage projects.
The decision allows for the optimal use of land at substations for a significant public benefit. The development of BESS projects is seen as crucial for stabilizing the energy grid, particularly in managing the intermittent nature of renewable energy. Through this initiative, the commission has taken an important step toward enhancing energy reliability in Gujarat while ensuring that the state’s transmission infrastructure remains unaffected.
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