Government amends guidelines to export electricity 

Under the new guidelines by Ministry of Power, Indian power generation and distribution companies can now export electricity generated from coal, renewable energy, or hydropower plants. These exports can be made directly or through licensed traders, as long as they get approval from the designated authority.

The Indian Ministry of Power has revised the Guidelines for the Import/Export (Cross Border) of Electricity, which were first issued in December 2018 and previously updated in July 2019. The latest changes aim to improve the rules for exporting electricity to neighbouring countries.Under the new guidelines, Indian power generation and distribution companies can now export electricity generated from coal, renewable energy, or hydropower plants. These exports can be made directly or through licensed traders, as long as they get approval from the designated authority.

For coal-based electricity, exports are allowed only if the coal comes from imports, spot e-auctions, or suppliers approved by the government unless the transaction takes place through Indian power exchanges, where this restriction does not apply. Likewise, gas-based electricity exports are limited to power generated using imported gas or other sources specified by the government.

The new rules also allow Indian generating stations that serve foreign markets to build dedicated transmission lines connecting to the grids of neighbouring countries. This development requires approval and must comply with the Electricity Act of 2003, with financial terms agreed upon by the parties involved. These generating stations may connect to the Indian grid, either across state lines or within a single state, to sell electricity domestically if there are ongoing scheduling issues or defaults in Power Purchase Agreements (PPAs).

The updates aim to create a more resilient and flexible system for exporting energy, while the other rules from the original 2018 guidelines remain unchanged. The Ministry of Power (MoP), in consultation with the Ministry of External Affairs, has set these guidelines to support the import and export of electricity between India and its neighbouring countries, develop a strong electricity infrastructure for trade, and promote cooperation.