The Government of India has set ambitious targets to transform its energy landscape, aiming for a non-fossil energy capacity of 500 GW by 2030, with solar power contributing 280 GW. Additionally, India targets producing 5 million tons of green hydrogen annually by 2030 and achieving net-zero carbon emissions by 2070. In line with these goals, the Ministry of Power notified the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022, on June 6, 2022. These regulations aim to streamline the generation, purchase, and consumption of green energy, encompassing all renewable sources, including waste-to-energy power plants.
Green Energy Open Access Regulations in India are designed to facilitate the integration and promotion of renewable energy sources within the commercial and industrial (C&I) sectors and other segments of the economy. These regulations aim to create a more sustainable energy landscape by enabling easier access to green energy and encouraging investment in renewable energy projects.
Key Developments and Initiatives
Establishment of Central Nodal Agency
On July 8, 2022, the Central Government appointed the Power System Operation Corporation Limited (POSOCO), now Grid Controller of India Ltd., as the Central Nodal Agency. POSOCO is responsible for setting up and operating a single-window green energy open access system. According to Rule 7 of the Green Energy Open Access Rules, 2022, POSOCO, in consultation with the Forum of Regulators (FOR), prepared a common format for the administration and grant of green energy open access, submitting the procedure to FOR on November 17, 2022.
Model Regulations for Open Access Charges
Rule 12(1) of the Green Energy Open Access Rules, 2022, mandated FOR to develop model regulations for calculating open access and banking charges uniformly across the country. After extensive deliberations, a working group formed by FOR finalized the draft model regulations on September 16, 2022. These regulations were then submitted to the Ministry of Power, which issued amendments to the Green Energy Open Access Rules on January 27, 2023, and May 23, 2023, incorporating several recommendations to align the rules with the Electricity Act 2003 and National Tariff Policy 2016.
Salient Features of the Green Energy Open Access Rules
The Green Energy Open Access Regulations have been implemented to streamline the process of procuring renewable energy for various segments, including C&I consumers, small and medium enterprises (SMEs), and other end-users. The primary objectives of the Green Energy Open Access Rules, 2022, along with the subsequent amendments on Jan 27, 2023 (First Amend) & May 23, 2023 (Second Amend), include several key features:
1. Promotion of Green Energy: The rules aim to promote the generation, purchase, and consumption of green energy, including energy from waste-to-energy plants.
2. Lowering Open Access Threshold: The rules reduce the minimum capacity requirement for open access transactions from 1 MW to 100 kW, allowing even small consumers to purchase renewable power through open access.
3. Discoms Obligation: Distribution companies (Discoms) are now obligated to procure and supply green power to eligible consumers, who can demand green power from Discoms.
4. Streamlined Approval Process: The rules establish a time-bound, transparent approval process for granting open access through a national portal, with approvals deemed granted if not processed within 15 days.
5. Voluntary Green Power Purchase: Commercial and industrial consumers can voluntarily purchase green power, promoting wider adoption of renewable energy.
6. Certainty on Charges: The rules provide clarity on the charges for green energy open access consumers, including transmission, wheeling, cross-subsidy surcharge, and standby charges. It caps the cross-subsidy surcharge and removes the additional surcharge to incentivize green energy consumption.
7. Uniform Renewable Purchase Obligation (RPO): A uniform RPO is enforced on all obligated entities within a distribution licensee's area, with green hydrogen and green ammonia included for fulfilling RPO requirements.
8. Green Certificates: Consumers using green power can receive Green Certificates, incentivizing the shift towards renewable energy.
Possibilities and Opportunities
Cost Savings and Energy Security
By sourcing renewable energy directly from producers, C&I consumers can achieve significant cost savings and enjoy stable energy prices. Renewable energy contracts often feature long-term fixed pricing, providing predictability and protection against volatile fossil fuel prices. Additionally, diversifying the energy mix with renewable sources enhances energy security.
Sustainability and Corporate Responsibility
Adopting green energy helps businesses reduce their carbon footprint, contributing to environmental sustainability. Companies utilizing renewable energy can bolster their brand image and demonstrate corporate responsibility, appealing to environmentally conscious consumers and investors.
Regulatory Incentives
Various incentives and subsidies are available from both central and state governments, including tax benefits, grants, and streamlined approval processes, encouraging investment in renewable energy projects. Compliance with Renewable Purchase Obligations (RPO) by procuring renewable energy can help businesses avoid penalties.
State-Level Initiatives
Various states in India have implemented distinct regulations and policies to encourage the uptake of renewable energy through the Green Energy Open Access Regulations. Currently, only 19 states have introduced measures to support GEOA. Bihar, Delhi, and Tamil Nadu have recently released draft regulations in this regard. However, states such as Rajasthan, Uttar Pradesh, Kerala, Punjab, among others, are yet to establish rules and regulations concerning this matter.
Conclusion
The Green Energy Open Access Rules, 2022, mark a significant milestone in India's journey towards a sustainable energy future. With supportive policies and regulatory frameworks in place, the possibilities and opportunities for C&I consumers and other segments to leverage renewable energy are vast. As India progresses towards its ambitious energy targets, the collective efforts of the government, industry, and consumers will play a crucial role in achieving a greener, more sustainable energy landscape.
These regulations in India present a significant opportunity for C&I consumers and other segments to leverage renewable energy for cost savings, energy security, and sustainability. With supportive policies and incentives from various states, businesses can navigate the transition to green energy more effectively. By capitalizing on these opportunities, India can move closer to achieving its renewable energy targets and contributing to global climate goals.
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Detailed Regulations issued by Ministry of Power:
State-wise regulations are available in the links given with name of states.
State |
Andhra Pradesh |
Arunachal Pradesh |
Bihar |
Chhattisgarh |
Delhi |
Gujarat |
Haryana |
Manipur |
Mizoram |
Jharkhand |
Karnataka |
Maharashtra |
Madhya Pradesh |
Meghalaya |
Odisha |
Punjab |
Sikkim |
Tripura |
Tamil Nadu |
Telangana |
Uttarakhand |
West Bengal |
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