Last week, the Karnataka High Court quashed an order issued by the Karnataka Electricity Regulatory Commission (KERC) relating to an increase in wheeling charges for open access power consumers in the state. The high court order has provided relief to renewable energy generators trading power through open access in the southern state.
Wheeling is the transportation of electric power over transmission lines of the grid. A solar plant owner wanting to sell power needs only a connection to the network or grid. He then pays the company owning the transmission line based on how much power is being moved and how congested the line is, and these charges are called wheeling charges.
The move could make the case stronger for captive solar power producers on one hand and for rooftop solar power producers on the other, for reasons explained further in this article. Read More