Jharkhand State Electricity Regulatory Commission (JSERC) has introduced new regulations to encourage the generation of electricity from renewable sources.

Called the Jharkhand State Electricity Regulatory Commission (Terms and Conditions for Green Energy Open Access) Regulations, 2024, these rules outline the measures for grid connection and the sale of green energy.

Categorization of Green Energy Open Access

Green Energy Open  Access (GEOA) consumers are categorized based on how long they use the intra-state transmission and/or distribution system:

Long-term open access refers to the permission to utilize the state’s transmission and distribution system for more than 12 years, up to the useful life of the plant, whichever comes first.

Medium-term refers to the permission to utilize the state’s transmission and distribution system for a duration longer than three months but not more than three years.

Short-term refers to accessing the system for up to one month at a time.

Short-term open access consumers can reapply after their term ends, with priority given based on the application date.

Eligibility Criteria

Consumers can access the intra-state transmission and distribution systems for green energy, subject to regulations and system availability. However, renewable energy companies with valid power purchase agreements (PPAs) with distribution licensees (DISCOM) can use open access only for the capacity specified in the PPA. Open access will incur charges set by JSERC.

Those who have built captive generating plants also have the right to open access. However, consumers cannot avail of renewable energy through open access to more than twelve time blocks a day to avoid high demand variation for the DISCOM.

Nodal Agency

All applications for open access to green energy must be submitted to the portal managed by the Grid Controller of India, which operates the open access registry for green energy. These applications will then be forwarded to the state nodal agency (SNA) by the central nodal agency. Until the Central Nodal Agency devises procedures and formats, existing ones may be followed.

For long-term open access transactions, the state transmission utility will handle application processing. Short-term open access transactions will be managed by the State Load Dispatch Centre (SLDC), which will consult the relevant transmission utility or the DISCOM before approval. However, for transactions lasting less than one week, the SLDC may permit them without consulting the DISCOM, with coordination procedures to be devised.

The Jharkhand SLDC serves as the SNA for granting both long-term and short-term open access to green energy. The SNA coordinates with transmission licensees, including the STU and DISCOM, to provide all relevant information on green energy open access through the central nodal agency’s portal.

Procedure for grant of Green Energy Open access

GEOA applicants must submit a complete application on the central portal as specified by the Central Nodal Agency. The application is forwarded to the SNA by the Central Nodal Agency for verification.

The applicant must pay a non-refundable processing fee to the nodal agency, and fees must be paid within one working day of application.

Short-term GEOA applications for upcoming power plants must be made at least two months before their commissioning date. Long-term/medium-term GEOA applications must include a bank guarantee of ₹10,000 (~$120) per MW, which will be returned upon agreement signing. The bank guarantee must be submitted within three working days from the date of intimation by the SNA.

If there is a significant change in the injection point location or power quantity (more than ten percent), a new application must be submitted for the entire capacity. Relevant documents, fees, and, for long-term access, a bank guarantee for additional capacity are required. If the network cannot accommodate the extra capacity, the applicant retains access to their original allotment.

Rejected applications can be resubmitted after addressing deficiencies. During the application process, no energy injection or charges apply.

Energy injected before agreement submission incurs an average power purchase cost rate or 75% of the generic tariff charges. Failure to execute the agreement within the specified time cancels the granted GEOA.

New plants must be commissioned within twelve months to avoid cancellation of granted GEOA.

Application details and status are made public on the SNA’s website.

Procedure for Applying for Day Ahead GEOA Transactions

The applicant must apply to the central portal for day-ahead GEOA transactions.

SNA will review applications received from the central agency before 1:00 PM on the day before scheduling day-ahead transactions. It will check for system congestion and notify applicants via email or fax by 3:00 PM on the same day, confirming approval if there is no existing PPA for the requested capacity under open access.

A non-refundable processing fee of ₹3,000 (~$36) for each transaction must be paid by the applicant. However, the open access will only be implemented if the applicant pays the specified charges outlined in these regulations and orders issued by the Commission before 5:00 PM on the day before scheduling for day-ahead transactions.

Non-utilization of Green Energy Open Access

If a short-term green open-access consumer cannot use its allocated capacity for more than four hours, it must inform the SLDC of the reasons and may surrender the capacity. However, it will still have to pay full transmission and/or wheeling charges based on the original reserved capacity and the reserved period.

The extra capacity freed up from a short-term open access consumer giving up its allocation or from the SLDC reducing or canceling capacity can be given to another short-term open access consumer based on their application order and where they are injecting and drawing power from.

A medium-term or long-term consumer cannot give up or transfer their rights and obligations in the open access agreement without approval from the nodal agency. If a long-term consumer wants to give up or transfer these rights, it must pay compensation as per the agreement terms.

The SLDC can cancel or decrease the capacity given to a short-term open-access consumer if it is not used enough. This happens if it underutilizes the capacity more than twice a month, with each underutilization lasting more than 2 hours, or if it does not inform the DISCOM about its inability to use the allocated capacity. The SLDC will give notice before doing this.

Charges

The Commission has set the following charges for green energy open access:

• Transmission Charges
• Wheeling Charges
• Cross-subsidy Charges
• Additional Charges
• Standby Charges (if applicable)
• Banking Charges
• Other charges like Load Dispatch Center fees and scheduling charges, deviation settlement charges as per Commission regulations

Consumers must also pay SLDC fees, scheduling charges, and renewable energy deviation settlement charges.

The consumer must pay a monthly transaction fee of ₹10,000 (~$120) to the SNA for maintaining transaction details. Additionally, they need to pay meter reading charges of ₹1,000  (~$12) to the concerned DISCOM for meter reading services. However, if the consumer has an automated meter reader with remote readings, no meter reading charges will apply.

Charges Exemptions

Grid-connected solar projects with storage systems selling power intra-state will have a 100% exemption from wheeling and transmission charges for ten years from the date of commissioning of the project.

Additional and cross-subsidy surcharges will be exempted for the solar projects set up for third-party sale within the state (less than 25 MW) and captive solar projects through open access.

Banking

Energy banking up to 100% will be allowed throughout the financial year on payment of banking charges, subject to technical feasibility regarding evacuation, on a first-come-first-serve basis.

Banking will be permitted on a monthly basis on payment of applicable charges. The banking charges will be 10% of the energy banked by the captive power producer with the DISCOM.

The withdrawal of banked energy will  be allowed on a slot-to-slot basis during the financial year only as per the following system:

• Peak-hour banking with peak-hour withdrawal
• Peak-hour banking with off-peak-hour withdrawal
• Off-peak-hour banking with off-peak-hour withdrawal

The withdrawal of power in peak hours will not be allowed against power banked in off-peak hours. The withdrawal of banked power should not be more than the power banked as per the slot-to-slot system.

The credit for banked energy will not be permitted to be carried forward to subsequent banking cycles and will be adjusted during the same banking cycle. The unutilized surplus banked energy will be considered as lapsed at the end of each banking cycle, and the renewable energy generating station will be entitled to renewable energy certificates to the extent of the lapsed banked energy.

The payment for the banked energy remaining unutilized will be as per the actual banked energy, limited to 30% of the consumption during the month from DISCOM. The DISCOMs must pay 75% of the generic tariff determined by the Commission for such renewable sources for such relevant period.

Jharkhand had announced the  ‘Jharkhand Solar Policy 2022’, aiming to deploy a cumulative capacity of 4 GW in the state by 2026.

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