The Ministry of Power has clarified that energy obtained through open access arrangements, either through a third-party supplier or captive generation, will not constitute a part of the permissible capacity of banked energy.

The clarification, which relates to the banking provisions under the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022, addresses stakeholder queries about interpreting the permissible quantum of banked energy, particularly concerning the minimum requirement of 30% of total monthly consumption.

The calculation of the permissible quantum of banked energy, which must constitute a minimum of 30% of total monthly consumption, is limited to energy procured directly from the distribution licensee.

Energy obtained through open access arrangements, whether from a third-party supplier or through captive generation using the distribution network, is excluded from this calculation.

This clarification provides guidance to stakeholders, including energy departments of states, union territories, and regulatory commissions, on how to interpret and apply the banking provisions.

This clarification aims to ensure a uniform understanding and implementation of the Green Energy Open Access Rules, facilitating the promotion of renewable energy while maintaining clarity in energy banking practices.

The Ministry of Power recently instructed state electricity regulatory commissions to comply with the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules and align their states’ Open Access Regulations with the notified rules and all the amendments.

In May, the Andhra Pradesh Electricity Regulatory Commission adopted the Green Energy Open Access, Charges, and Banking Regulations, 2024, under which green energy open access consumers may bank up to 30% of their total monthly electricity consumption from the green energy source in a banking cycle.

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