Monetising Transmission: Forum of Regulators may establish process for generating predictable long term revenue

Power Ministry and the Central Electricity Authority (CEA) is expected to deliberate with the Forum of Regulators to establish a mechanism for creating a predictable long-term roadmap for generating revenues by monetising brownfield transmission projects with States. The development is part of a high-level workshop organised by the CEA on monetising transmission assets. Representatives from 24 States and Union Territories participated in the day-long deliberations.

Identifying private sector participation as “critical” in enhancing power infrastructure, the workshop emphasised that they should be encouraged to invest in transmission sector.

The Forum of Regulators may be approached to seek guidance on providing a uniform approach for monetisation of state transmission projects that belong to the Regulated Tariff Mechanism (RTM) asset category, it was suggested.

Siddartha Ramakanth Keshavadasu, Associate Director Power Sector Advisory at Nangia & Co, said the roadmap emphasises piloting monetisation initiatives, developing model bidding documents, and exploring tradable transmission rights to improve congestion management and planning.

“However, the document lacks operational examples or pilot case studies to enhance stakeholder confidence. Demonstrations before implementation and stronger Central-State coordination are needed. While GNA Regulations have advanced planning and congestion management, introducing tradable physical and financial transmission rights could further enhance market maturity. Additionally, leveraging technology for asset optimisation and post-monetisation monitoring is vital for modernising India’s transmission network,” he added

Publication – The Hindu Businessline 

By Siddartha Ramakanth Keshavadasu