The Punjab State Power Corporation (PSPCL) has issued a draft procedure governing the banking of renewable energy for green energy open access (GEOA) consumers under the PSERC (Terms and Conditions for Intra-State Open Access) Regulations, 2011.

Applicability

The banking procedure applies to all GEOA consumers of PSPCL connected to Punjab’s intrastate transmission or distribution network, including those availing both intrastate and interstate open access. It also applies to captive users who draw power from renewable energy-based captive generating plants located in Punjab, subject to additional compliance under the PSERC Captive Power Generation Regulations and earlier banking orders applicable to CGPs.

The procedure clarifies that banked energy cannot be used for third-party sale under any circumstances.

Prerequisites for Availing Banking

Before banking can be availed, consumers must secure connectivity from PSPCL or PSTCL, enter into a connectivity agreement and obtain open access permissions from the nodal agency, which may be SLDC or PSTCL. The application for banking must be submitted at least one month before the intended date of commencement or at the same time as the open access application.

All applications are to be submitted to the office of the Chief Engineer, Power Purchase and Regulations (PP&R), PSPCL, in Patiala. Documentsincluding connectivity approvals, open access sanctions, authorization letters, PEDA approvals where relevant and certificates establishing compliance with Rule 3 of the Electricity Rules, 2005, for captive entities must be submitted along with the application. Captive consumers must submit the verification certificate of captive status for the previous year when seeking continuation.

The nodal office reviews each application and communicates any deficiencies within ten days. Applicants are then given a further ten days to rectify these deficiencies.

Tripartite Banking Agreement

Once approval has been granted, the GEOA consumer must execute a tripartite agreement with PSPCL and PSTCL. This agreement incorporates the terms of the feasibility clearance and the open access approval, and its validity extends for the entire duration of the open access permission unless mutually extended. The agreement stipulates that the metering and protection equipment must remain accessible for inspection.

The agreement may be terminated when the consumer fails to remedy notified defaults or when PSERC withdraws the banking facility. Upon termination, all banked units accumulated for that period lapse, and no compensation is payable. For captive consumers, failure to maintain captive status during any contract year may result in the forfeiture of the security deposit, in addition to the lapse of banked energy.

Charges and Financial Obligations

GEOA consumers will be allowed to be bank power with PSPCL, subject to the condition that 10% of the power banked will be deducted in kind towards banking charges. However, the procedure also allows PSERC to approve monetary banking charges in the future. Beyond this, GEOA consumers remain responsible for paying the applicable tariff for energy drawn from PSPCL, any demand surcharge that may arise due to exceeding sanctioned or admissible demand, and all charges associated with open access.

These include transmission charges, wheeling charges, SLDC fees, cross-subsidy surcharge, additional surcharge and standby charges where applicable. Consumers must seek open access for the entire quantum of energy expected to be drawn, including the banked component, because open access charges apply to the total contracted capacity.

Banked Energy and Carry-Forward Limits

The procedure allows banked energy to be carried forward from one month to the next, but it imposes a limit on the amount that can be carried forward. This monthly carry-forward is capped at 30% of the consumer’s monthly consumption from PSPCL. Any banked energy that exceeds this limit is classified as dumped energy and cannot be carried forward. When adjusting consumption, older banked energy from previous months is utilised first, and such older banked energy is not subject to the 30% restriction.

However, the procedure expressly prohibits the drawal of banked energy during the paddy/peak seasonal period, currently June 1 to September 30, and also during peak load hours notified by PSERC. During non-paddy months, PSPCL must use accumulated banked units to adjust the consumer’s consumption. At the end of the financial year, all unutilized banked energy automatically lapses. Under the GEOA Rules, lapsed units may qualify for renewable energy certificates (RECs) where applicable.

Priority of Energy Adjustment

The order in which different forms of energy are adjusted is clearly defined. The consumer’s real-time drawal from the renewable generator is always accounted for first. If consumption exceeds this immediate supply, the adjustment proceeds to banked energy. If further energy is required, any non-green open access power is considered, and finally, the remaining requirement is met through PSPCL’s supply. This prioritisation ensures that real-time renewable energy is fully utilised before drawing on stored or conventional sources.

Metering, Testing and Communication Requirements

Accurate metering is critical for the functioning of the banking mechanism. Both the renewable energy generator and the GEOA consumer must install ABT-compatible special energy meters with an accuracy class of 0.2S at their respective interconnection points. These meters must record energy import and export data for every fifteen-minute interval and store at least forty-five days of information. They must be synchronised with GPS timing and integrated with an Automated Meter Reading (AMR) system for real-time communication with SLDC.

Until complete AMR integration and SAMAST implementation occur, monthly meter data must be supplied manually. Any tampering with metering equipment empowers PSPCL to withdraw the banking facility, lapse the banked units for the period in question and impose applicable penalties.

Forecasting, Scheduling, Accounting and Settlement

Renewable energy generators must comply with the appropriate forecasting and scheduling regulations depending on their capacity and configuration. Projects of 5 MW and above, specifically solar and wind projects and associated pooling stations, must follow PSERC’s Forecasting and Scheduling Regulations, while the deviation settlement depends on whether they fall under the State Grid Code or the Deviation Settlement Mechanism.

SLDC is responsible for producing detailed time-block wise energy statements, calculating banked energy after accounting for technical losses and banking charges, and forwarding adjustment sheets to PSPCL for billing purposes. The procedure provides mathematical formulas to calculate banked energy for both intrastate and interstate open access scenarios. If the resulting banked energy for any time-block is negative, it is treated as zero, and deviation at the drawal end is settled in accordance with applicable DSM or imbalance settlement provisions.

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