Rajasthan Issues Draft Regulations on Green Energy Open Access

Stakeholders can submit suggestions and comments by October 18, 2024

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The Rajasthan Electricity Regulatory Commission (RERC) has released draft regulations titled “RERC (Terms and Conditions for Green Energy Open Access) Regulations, 2024” to promote renewable energy adoption and streamline green energy open access in the state.

The RERC has invited stakeholders to submit suggestions and comments on the draft regulations by October 18, 2024.

The draft regulations propose that consumers with a minimum contract demand or sanctioned load of 100 kW are eligible for green energy open access. There is no load limit for captive consumers.

The regulations cover various renewable energy sources, including hydro, pumped storage, energy storage systems, municipal solid waste-to-energy, biomass, and bagasse-based cogeneration.

The draft outlines three categories of green energy open access based on duration:

  • Long-term: Between 12 and 25 years
  • Medium-term: Three months to three years
  • Short-term: Up to one month

All applications must be submitted through a central portal set up by the central nodal agency.

The Rajasthan State Transmission Utility (STU) will be the state nodal agency for long-term and medium-term access. The Rajasthan State Load Despatch Center (SLDC) will handle short-term access.

Applications must be processed within 15 days of receiving them from the Central Nodal Agency.

Open access consumers will pay various charges, including transmission, wheeling, cross-subsidy surcharge, and additional surcharge.

Cross-subsidy surcharge is waived for captive plants, municipal solid waste-to-energy plants, and green hydrogen/ammonia production.

An additional surcharge will not apply if fixed charges are paid up to the contracted demand.

Banking of up to 25% of energy injected monthly or 30% of total monthly consumption is allowed for captive renewable energy projects. Banking is permitted on an annual basis for the financial year.

Unutilized banked energy at year-end will lapse, but generators can claim Renewable Energy Certificates for the lapsed energy. Banking charges of 8% will be deducted from the banked energy.

Distribution licensees have the highest priority, followed by long-term, medium-term, and short-term green energy open access consumers. If system constraints occur, curtailment will be applied in reverse order.

Standby charges of 25% of applicable energy charges will apply if green energy is unavailable.

Consumers can purchase green energy for their entire consumption or a portion thereof.

The surplus green energy procured from a distribution licensee or renewable energy sources other than the distribution licensee beyond the obligated entity’s Renewable Purchase Obligation will be credited toward the distribution licensee’s Renewable Purchase Obligation compliance.

The regulations align with India’s target of achieving 500 GW of non-fossil energy capacity by 2030 and net-zero carbon emissions by 2070.

Last November, RERC approved a ceiling tariff of ₹3.55 (~$0.043)/ kWh for solar projects to be set up under Component C of the PM-Kusum program.

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