Himachal Proposes Green Energy Open Access for Consumers with 100 kW Load

Banking charges will be adjusted at 8% of the energy banked at the consumer's end

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Consumers with a minimum contract demand or sanctioned load of 100 kW can access Green Energy Open Access, according to the Draft Himachal Pradesh Electricity Regulatory Commission (Terms and Conditions for Green Energy Open Access and Banking) Regulations, 2024.

There is no maximum power supply limit for captive consumers.

The regulations align with the green energy open access rules issued by the Ministry of Power in June 2022.

Categorization of Green Energy Open Access

  • Long-term green energy open access consumers can avail the green energy open access for more than 12 years but not exceeding 25 years
  • Medium-term green energy open access consumers can avail the green energy open access for more than three months but not exceeding five years
  • Short-term green energy open access consumers can avail green energy open access for one month at one time

Eligibility Criteria

Consumers, licensees, and generating companies can apply for green energy open access to the intra-state transmission system of the State Transmission Utility (STU) or the distribution system of the local distribution licensee.

Green energy generating companies with existing power purchase agreements (PPA) with a distribution licensee are not eligible for green energy open access for the renewable capacity covered by the PPA or any capacity already granted open access unless specified.

Green energy open access is available upon periodic payment of charges determined by the Commission.

Entities with a captive generating project are entitled to green energy open access, provided they have a contracted demand or sanctioned load of 100 kW or more through a single connection or multiple connections totaling 100 kW or more in the same electricity division of the distribution licensee.

The generating project can be established by the entity itself or by a developer with whom the entity has a power purchase agreement.

Consumers can purchase green energy up to a certain percentage of their total or entire consumption through a request to the distribution licensee. The licensee will then procure and supply the specified quantity of green energy, with the option to make separate requisitions for solar and non-solar energy.

Any requisition for green energy must be for a minimum of one year, and the quantity of green energy must be specified for at least one year.

Green energy purchased from a distribution licensee or other renewable energy sources beyond the obligated entity’s Renewable Purchase Obligation (RPO) will count towards the distribution licensee’s RPO compliance. Renewable energy supplied at the distribution licensee level will be accounted for monthly.

Existing Green Energy Open Access Consumers

Existing consumers and generators can continue to utilize green energy open access as per their current agreements or government policies. They must continue to pay the applicable charges specified in their agreements or as determined by the Commission from time to time.

Green energy open access for subsequent periods, including any renewals after the completion of the initial wheeling and banking agreement, will be governed by these regulations.

Any request for additional renewable energy capacity by existing consumers or generators beyond their current contracted capacity will be treated as a new application for green energy open access.

Criteria for Granting Green Energy Open Access

Long-term green energy open access will be granted according to the transmission planning criteria and distribution planning code outlined in the State Grid Code.

Short-term and medium-term green energy open access will be considered based on:

  • Inherent design margins
  • Margins available due to variations in power flows
  • Margins created by spare transmission and distribution system capacity designed for future load growth

Curtailment Priority

In the event of transmission or distribution system constraints, the order of curtailment priority is as follows:

  • Short-term open access consumers (excluding green energy open access consumers) will be curtailed first, followed by short-term green energy open access consumers.
  • Medium-term open access consumers (excluding green energy open access consumers) will be curtailed next, followed by medium-term open access consumers.
  • Long-term open access consumers (excluding green energy open access consumers) will be curtailed last, followed by long-term green energy open access consumers.

Within each category, green energy open access consumers will have equal curtailment priority and be curtailed pro-rata. The distribution licensee will be curtailed only as a last resort.

Procedure for Granting Green Energy Open Access

State nodal agencies are responsible for preparing the detailed procedure for granting connectivity and green energy open access, including application formats, bank guarantees, fees, and charges.

This procedure must be developed in consultation with the distribution licensee within 30 days of the notification of these regulations and submitted to the Commission for approval.

The nodal agencies should follow the guidelines established by the Power System Operation Corporation and the National Load Despatch Centre for green energy open access.

Entities wishing to apply for green energy open access must first register on the GOAR portal. Green energy open access applications can only be submitted once the registration process is completed. Registration is valid for three years and can be renewed for additional three-year periods.

Registered entities seeking open access to green energy must submit a complete application using the format specified by the Central Nodal Agency on the central web-based GOAR Portal. The Central Nodal Agency will forward the application to the relevant State Nodal Agency for verification and approval.

The State Nodal Agency must approve or reject the green energy open access applications in writing within 15 days of receiving the application. If no decision is made within this period, the application is considered approved, provided it meets the technical requirements set by the Commission.

Applications will be processed on a first-come, first-served basis. Additionally, the quantum of power consumed through open access cannot be changed for twelve time blocks to avoid significant demand fluctuations for the distribution licensee.

Short-term and medium-term Green Energy Open Access will be granted if sufficient spare capacity exists in the transmission system without augmentation. Long-term open access may require transmission system augmentation. If spare capacity is available, long-term open access will be prioritized, and priority will be given to non-fossil fuel sources over fossil fuel sources.

Green Energy Open Access Charges

The Commission will determine the following charges:

  • Transmission charges
  • Wheeling charges
  • Cross-subsidy surcharge
  • Additional surcharge
  • Standby charges, where applicable
  • Banking charges
  • Other fees and charges include application fees, SLDC fees, scheduling charges, UI & deviation settlement charges, and reactive energy charges.

Banking Facility and Charges

Banking facilities for green energy open access consumers will be allowed monthly, with applicable charges to compensate the distribution licensee for additional costs.

Surplus energy from green energy generators will be banked with the distribution licensee, subject to scheduling. Banked energy must be used within the same banking cycle; unused energy will lapse, and Renewable Energy Certificates will be issued accordingly.

Banking charges will be adjusted at 8% of the energy banked at the consumer’s end. The distribution licensee will create a detailed banking procedure and model agreement within 30 days of the regulations’ notification.

Green Certificates

Distribution licensees will issue green certificates annually to consumers requesting green energy supplied beyond their renewable purchase obligations.

Collection and Disbursement of Charges

Green energy open access charges will be paid directly to the State Nodal Agency, which will disburse the collected amounts to the licensees, including transmission charges to the STU or transmission licensee and distribution network charges to the distribution licensee.

Reporting and Information System

The SLDC will provide the following information on a dedicated “Green Energy Open Access Information” webpage and issue a monthly report, updated with each status change. Previous reports will also be accessible in the web archives:

  • Status updates on long-term, medium-term, and short-term green energy open access consumers
  • Peak load flows on extra high voltage and high voltage lines
  • Monthly average loss data for both the transmission and distribution systems, as determined by the respective licensees

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