The Andhra Pradesh Electricity Regulatory Commission (APERC) has issued a preliminary draft of the Green Energy Open Access, Charges, and Banking Regulations in 2023.

The regulation applies to granting open access for electricity generated from renewable energy sources for utilization within the state involving Intra-State Transmission Systems (lnSTS) and/or distribution systems of licensed entities.

It also encompasses those InSTS and/or distribution systems that are incidental to the Interstate Transmission of electricity.

Entities declared insolvent or bankrupt, those with outstanding dues exceeding two months from the distribution/transmission licensee’s billing, or those involved in cases of unauthorized electricity use or theft at the time of application will not be eligible for open access under the new regulations.

The draft regulation is scheduled to be finalized after 21 days from September 30, 2023. Stakeholders can submit their comments, suggestions, or objections by October 21, 2023.

Criteria for allowing Green Energy Open Access (GEOA) include: 

• Long-term GEOA must align with the State Grid Code’s planning criteria.
• Short-term/Medium-term GEOA can be granted if it fits within the system’s capacity, which includes available design margins, flexibility in power flows, and spare capacity for future growth.

Existing consumers and generators will retain their open access rights per their current agreements or government policies for the duration specified in those agreements or policies as long as these terms do not conflict with the Electricity Act.

Classification of Open Access Consumers

Open-access consumers will be categorized based on the duration of their use of the intra-state transmission and/or distribution system as follows:

• Long-term Open Access Consumers: Individuals using or planning to use open access for five years or more.
• Medium-term Open Access Consumers: Individuals using or planning to use open access for more than one year but less than five years.
• Short-term Open Access Consumers: Individuals using or planning to use open access for one year or less.

Short-term open access consumers can reapply for access after their term expires, subject to availability. Priority for such access will be determined based on the application submission date.

Green Energy Open Access consumers will have priority over fossil-based open access consumers in terms of connectivity and general access. This preference also extends to situations involving system constraints and limited transmission/distribution system capacity when granting connectivity or open access.

Long-term GEOA consumers will receive preference, followed by medium-term and short-term consumers, with a first-come, first-served basis for decision-making.

Procedure for Granting Green Energy Open Access

The Andhra Pradesh State Load Despatch Centre (APSLDC) will serve as the State Nodal Agency (SNA) for short-term green energy open access.

The State Transmission Utility (STU) will act as the nodal agency for granting long-term and medium-term green energy open access.

All applications related to green energy open access must be submitted to the respective State Nodal Agencies or through the centralized portal established by the Central Nodal Agency under the Green Energy Open Access Rules.

Applications received directly by the SNA or the Central Nodal Agency will be processed following established procedures and formats.

These SNAs will create comprehensive procedures and timelines for green energy open access, which will be submitted to the Commission within 30 days of this regulation’s publication in the Gazette. These procedures and timelines will align with those notified by the central agency and the Green Energy Open Access Rules.

The SNAs will collaborate with other relevant utilities to provide the public with access to all pertinent information regarding green energy open access via the Central Nodal Agency’s portal.

Applicable Charges

• Transmission charges: The Commission will determine these charges in line with APERC (Terms and Conditions for Determination of Transmission Tariff) Regulation, 2005, and its subsequent amendments.
• Wheeling charges: The Commission will determine these charges according to APERC (Determination of Tariff for Wheeling and Retail Sale of Electricity) Regulation, 2005, and its amendments
• Cross-subsidy surcharge: The Commission will determine this charge in Retail Supply Tariff Orders or other Commission orders as applicable.

Standby charges (if applicable): Standby Charges will be set at 120% of the normal tariff for both demand and energy within the consumer category. No penalty will be imposed for exceeding the contracted maximum demand due to open access, provided there is no notice from concerned parties. If such a standby arrangement extends beyond 72 hours from the notice time, Standby Charges will be 120% of the normal tariff on energy or the maximum tariff for energy purchased from exchanges/markets during the standby period, whichever is higher.

• SLDC fees and charges: The Commission will determine these fees and charges following APERC (Levy and Collection of Fees and Charges by State Load Despatch Centre) Regulation, 2006, and any subsequent revisions.
• Scheduling and Deviation settlement charges: Until the Commission establishes a comprehensive Regulation on Deviation settlement, charges will be collected per CERC DSM Regulations, 2022, and any amendments.
• Reactive Energy Charges: The Green Energy Open Access consumer will pay for reactive energy in compliance with provisions outlined in the State Grid Code as notified by the Commission. If the Commission has not specified rates in the State Grid Code, rates specified in CERC (Indian Electricity Grid Code) Regulations or rates specified by CERC will apply.
• Losses between entry and exit points of open access: Losses will be charged as applicable,           following the Commission’s Orders/Regulations.
• Processing fee for Green Energy Open Access: Long-term: ₹100,000 (~$1,201), Medium-term: ₹25,000 (~$300.3) and Short-term: As determined by the commission.

The distribution licensee must issue an annual green certificate to consumers in line with the APERC Renewable Power Purchase Obligation (Compliance by the purchase of Renewable Energy/Renewable Energy Certificates) Regulation of 2022, including any subsequent amendments.

Banking Charges

Only wind, solar, and mini hydel power generators will be permitted to utilize the energy banking facility, subject to the following conditions:

• Energy banking will occur on a monthly billing cycle basis. Any energy that is banked must be used within the same billing cycle. If not utilized, the unclaimed energy will expire at the end of the cycle, and no compensation will be provided for such unused banked energy.
• A fee of 8% of the banked energy will be charged as banking charges at the consumer’s end.
• GEOA consumers can bank up to 30% of their monthly electricity consumption from the distribution licensee.
• Banking and withdrawal of energy are allowed throughout the billing cycle. However, if energy is withdrawn during peak load hours specified in the Time-of-Day approved by the commission in the retail supply tariff orders, 12% of the banked energy will be charged.

Additionally, energy withdrawal during peak load hours is not permitted if Restriction and Control measures are in effect.

Daily accounting will be used to calculate the monthly energy banking.

Settlement of open-access energy at the consumer’s end will follow this priority order:

• Renewable energy generation after accounting for losses.
• Captive power generation.
• Banked energy.
• Open Access Power through Exchange / Bi-lateral transactions.
• Power from the distribution company (DISCOM).

The SLDC will maintain records of all energy banking transactions and provide model illustrations of energy and banking settlement for different scenarios on its website to facilitate understanding by various stakeholders.

Curtailment

Among GEOA consumers, preference is given to long-term GEOA consumers, followed by medium-term and short-term consumers, in that order. However, the decision to grant open access is determined on a first-come, first-served basis.

During transmission or distribution system constraints, curtailment priorities are as follows: first, short-term open-access consumers (excluding GEOA consumers) are curtailed, followed by medium-term open-access consumers (excluding GEOA consumers), and finally, long-term open-access consumers (excluding GEOA consumers) are curtailed before GEOA consumers.

Open access applications cannot be denied without giving applicants a chance to be heard. Disputes and complaints go to the nodal agency for resolution unless the agency is involved, in which case they go to the Consumer Grievances Redressal Forum.

Mercom earlier reported a revival of interest from the industry in Andhra Pradesh to source solar energy through open access. Installations surged by 450% quarter-over-quarter to 75.3 MW in the third quarter of 2022.

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