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Daily News Wrap-Up: APTEL Criticizes MERC for Denying Petitioner Relief

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					</table>The <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Ministry of Power</a> 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 <a href="https://www.mercomindia.com/submit-green-open-access-compliance-status/" target="_blank" rel="noopener">instructed</a> 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 <a href="https://www.mercomindia.com/andhra-pradesh-energy-access-rules-2024" target="_blank" rel="noopener">adopted</a> 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.
Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates </a>to ensure you don’t miss any critical updates from the renewable industry.

Green Energy from Open Access Exempt from 30% Minimum Banking Stipulation

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					</table>The Andhra Pradesh Electricity Regulatory Commission (<a href="https://aperc.gov.in/" target="_blank" rel="noopener">APERC</a>) has adopted the Green Energy Open Access, Charges, and Banking Regulations, 2024.
The regulations apply to granting open access for electricity generated from renewable energy sources for utilization within the state involving Intra-State Transmission Systems (lnSTS) and/or distribution systems of licensed entities.
In October, APERC <a href="https://www.mercomindia.com/andhra-pradesh-green-energy-open-access-regulations" target="_blank" rel="noopener">issued</a> the preliminary draft of the regulations and invited stakeholders&#8217; opinions.
The revisions to the final regulations are as follows:
Changes in Definitions 
Following a review of the suggestions received, the Commission revised the definitions as follows:
&#8216;Banking&#8217; refers to a facility wherein any unused energy (either not consumed by the consumer or generated more than the scheduled amount by the generator) from any Green Energy Sources during a billing month is stored separately. Such accrued energy will be managed per the conditions outlined in these regulations.
&#8216;Entity&#8217; refers to any consumer with a contracted demand or sanctioned load of 100kW or more, either through a single connection or via multiple connections totaling 100kW or more within the same electricity division of a distribution licensee, excluding captive consumers, provided that captive consumers are exempt from load limitations; and provided further that the entity may lack a supply agreement with the DISCOMs.
&#8216;Green Energy&#8217; has also been changed to denote electrical energy from renewable sources.
For &#8216;Renewable Sources of Energy,&#8217; the Commission said the definition must be understood alongside the definition of Green Energy. Storage is already included in the definition of Green Energy. However, considering the suggestion, the Commission amended the definition as follows:
&#8216;Renewable Sources of Energy&#8217; encompasses renewable energy sources such as small hydro, wind, solar, biomass, biofuel, cogeneration (including bagasse-based cogeneration), municipal solid waste, RE Hybrid, hydro, storage (if the storage utilizes renewable energy), and other sources or mechanisms recognized and approved by the Government of India or State Government.
&#8216;Rules&#8217; will refer to the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022.
Criteria for allowing GEOA
There should not be any design or system constraint for Open Access Capacity permission within the Contracted Maximum Demand with the DISCOMs.
The Commission accepted the suggestion and revised the draft as follows:
<ul>
<li>Long-term GEOA will be permitted per the transmission planning criteria and distribution planning code outlined in the state grid code.</li>
<li>Short-Term/Medium-Term open access will be permitted if the request can be accommodated by utilizing:</li>
</ul>
<ol>
<li>Inherent design margins</li>
<li>Margins available due to variation in power flows</li>
<li>Margins available due to in-built spare transmission system capacity and/or distribution system capacity created to cater to future load growth</li>
</ol>
Categorization of Open Access
The open-access consumers will be categorized into the following groups based on the duration of their utilization of the intra-state transmission and/or distribution system:
<ul>
<li>Long-term Open Access consumers &#8211; individuals utilizing or intending to utilize open access for a period equal to or exceeding five years</li>
<li>Medium-term Open Access consumers &#8211; individuals utilizing or intending to utilize open access for a period exceeding one year but less than five years</li>
<li>Short-term Open Access consumers &#8211; individuals utilizing or intending to utilize open access for up to one year</li>
</ul>
Provided that short-term open access consumers will be eligible for and can reapply for fresh reservations after the expiration of their term, such eligibility will be prioritized based on the date of application.
Eligibility Criteria for Green Energy Open Access
Any consumer or generator can utilize green energy open access for third-party sale or captive use. Power purchase agreements cannot be altered with the current regulations by granting deemed open access to generators with outstanding dues for more than two months of billing from the distribution/transmission licensee.
After reviewing other suggestions, the Commission modified the clause as follows:
Subject to the provisions of this regulation and system availability, all entities are eligible to procure power from any green energy generator through GEOA for third-party sale or captive use.
Entities or generators declared insolvent or bankrupt, or with undisputed outstanding dues exceeding two months of billing from the distribution/transmission licensee, or facing cases of undisputed unauthorized use of electricity/theft of electricity pending against them at the time of application are not eligible for open access.
Any entity/generator revived through the National Company Law Tribunal (NCLT) resolution process or any other legal process will also be eligible for open access.
Nodal agency and procedure for Granting Green Energy Open Access 
Applications received directly or through the central nodal agency by the state nodal agency (SNA) will be processed according to the procedures and formats devised by SNAs. SNAs will develop detailed procedures and timelines for green energy open access and submit them to the Commission within 30 days of the gazette notification date.
The procedures and timelines should be developed per the central agency and GEOA rules.
However, until the Commission finalizes the specific procedures and timelines for GEOA, the existing procedures under the Open Access Regulation 2005 of APERC will be followed in granting GEOA.
The timelines in the procedures notified by the central agency and the GEOA rules will supersede those specified in Regulation 2005 of APERC. The procedure specified for Long-Term Open Access may also be followed for Medium-Term Open Access.
Connectivity and Energy Settlements 
Connectivity for all new green energy generators will be granted per the APERC Regulation on Power Evacuation from Captive Generation, Cogeneration, and RE Source Power Plants (Regulation 3 of 2017).
The energy settlements of all intra-state GEOA generators/consumers will be conducted as per Regulation 2 of 2006 and its subsequent amendments.
All energy from GEOA generators will be settled in 15-minute block-wise intervals based on the day-ahead schedule. In cases where capacities are small and implementing the 15-minute block-wise schedule is challenging, the actual generation from the green energy generator during the month will be considered scheduled energy.
For settlement purposes regarding scheduled/QA consumers supplied by these OA GE generators, the actual generation during the month will be apportioned for each time block of the month if Time of Day (ToD) billing is applicable for consumers, with deviations reckoned accordingly.
If ToD billing is not applicable, the actual generation from the green energy generator during the month will be deemed scheduled energy and accounted for in settlement with such consumers. However, banking will be conducted as per this regulation in all cases.
The energy settlements of intra-state RE generators for interstate transactions will be conducted according to CERC Regulations. Deviations from intra-state wind and solar generators&#8217; schedules for interstate transactions will be settled in line with CERC DSM Regulations, 2022.
Treatment for Existing Entities 
The Commission will consider the suggestion of allowing additional Open Access capacity for existing OA Green Energy users under the present regulation.
After the completion of the term of the existing agreement, any renewal will be based on the parties&#8217; mutual agreement. Accordingly, the draft is modified as follows:
The existing consumers/generators will continue to utilize open access per the terms specified in their existing agreements or government policies for the duration outlined in those agreements or policies to the extent they are not inconsistent with the Act.
GEOA for the period following the expiration of the existing agreement concerning such consumer/generator will be governed by the provisions of these regulations.
Furthermore, the existing OA consumers may procure additional power through GEOA under the present regulation.
Levy of Charges 
Transmission charges: GEOA consumers must pay transmission charges as applicable and determined by the Commission in Multi-Year Tariff Orders for the relevant period, by APERC (Terms and Conditions for Determination of Transmission Tariff) Regulation, 2005, and its subsequent amendments.
Wheeling charges: GEOA consumers must pay wheeling charges as applicable and determined by the Commission in Multi-Year Tariff Orders for the relevant period, per APERC (Determination of Tariff for Wheeling and Retail Sale of Electricity) Regulation, 2005, and its subsequent amendments.
Cross-subsidy surcharge: GEOA consumers must pay the cross-subsidy surcharge as applicable and determined by the Commission in the Retail Supply Tariff Order.
Standby charges: The Standby Charges will be will120% of the standard tariff (for both demand and energy) of the consumer category without imposing any penalty for exceeding the Contracted Maximum Demand in the absence of notice from the parties concerned. The Maximum Demand charges will be based on the Recorded Maximum Demand registered in the meter for exceeding the maximum demand, and the energy charges will correspond to the open access demand.
If the DISCOMs receive notice from the parties concerned regarding the standby arrangement, and if such standby period extends beyond 72 hours from the time of notice, the Standby Charges will equate to 120% of the normal tariff on energy or the maximum tariff of energy purchased from the exchanges/market (during the standby period), whichever is higher. However, charges within 72 hours from the notice will be limited to only 120% of the average tariff on energy.
The Load Curtailment is not applicable if the GEOA consumers do not opt for a standby arrangement with the DISCOMs. In cases where a standby arrangement is requested, the LC for three days of the open access consumption may be obtained.
Reactive Energy Charges: Generators utilizing Green Energy Open Access must pay for reactive energy as per the provisions outlined in the State Grid Code notified by the Commission. When the Commission has not specified rates in the State Grid Code, the rates specified in CERC Regulations/Orders will be applicable.
Application fees are non-refundable. Following the examination of APTRANSCO&#8217;s submissions, the Commission has decided to modify the draft as follows:
The processing fee for Green Energy Open Access under Long-term, Medium-term, and Short-term arrangements will be ₹150,000 (~$1,796), ₹100,000 (~$1,197), and ₹50,000 (~$598), respectively.
Banking 
A banking facility will be provided to consumers utilizing GEOA, subject to the following conditions:
1) Banking will operate on a monthly billing cycle basis, with each calendar month considered one billing cycle. Banked energy must be utilized within the same billing cycle. At the end of the billing cycle, unused energy will be compensated at 75% of the last discovered SECI tender rate for the respective renewable energy source, as notified annually by APERC. The distribution licensee will benefit from the corresponding Renewable Purchase Obligation (RPO) for the unutilized banked energy.
2) Banking charges will be 8% of the energy banked at the consumer&#8217;s end. If Transmission/Wheeling Charges and Losses have already been levied on the total quantum to determine transmitted/wheeled energy, no further wheeling charges and losses will be applied to banked energy during drawl.
3) 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.
4) Banking and drawal are permitted throughout the billing cycle. Energy banked during peak Time of Day (ToD) slots may be drawn during peak and off-peak ToD slots. Conversely, energy banked during off-peak ToD slots may only be drawn during off-peak ToD slots. Drawal of banked energy during peak load hours, as specified in the ToD approved by the Commission in the Retail Supply Tariff Orders, is not permitted if R&amp;C measures are in force.
5) Settlement of open-access energy at the consumer end will follow this priority order:
<ul>
<li>Open Access Power through Exchange / Bilateral transactions</li>
<li>Captive Power/Third party (Non-RE)</li>
<li>RE generation after deduction of losses</li>
<li>Banked Energy</li>
<li>DISCOM&#8217;s power</li>
</ul>
Settlement of open-access energy for the generator will follow this priority order:
<ul>
<li>Open Access Power through Exchange / Bilateral transactions</li>
<li>Open Access Power through intrastate consumer transactions</li>
</ul>
6) The State Load Dispatch Center (SLDC) will manage energy accounts for all banking transactions. Model illustrations of energy settlements, banking methodology, banking charges, and banking settlements for different scenarios will be made available on the SLDC&#8217;s website for various stakeholders to understand easily.
Green Certificates 
The distribution licensee will annually provide a green certificate to consumers who have purchased green energy from them, in accordance with the APERC Renewable Power Purchase Obligation (Compliance by the purchase of Renewable Energy/Renewable Energy Certificates) Regulation, 2022, and its subsequent amendments. Obligated entities may be issued Renewable Energy Certificates (RECs) if their purchases from renewable energy sources other than from the DISCOMs exceed the Renewable Purchase Obligations specified by this Commission, as per the CERC REC Regulations 2022, following the stipulated procedure.
Collection and Disbursement of Charge 
The procedure outlined in APERC Regulation 2 of 2005 will be adhered to collect and disburse charges as per this Regulation from/to GEOA consumers.
The Commission adopted the remaining clauses proposed in the draft without alterations where stakeholders have neither submitted comments for modification nor proposed the same.
Mercom earlier <a href="https://www.mercomindia.com/andhra-pradesh-carry-solar-open-access-momentum-future" target="_blank" rel="noopener">reported</a> a revival of industry interest in sourcing solar energy through open access in Andhra Pradesh. Installations surged by 450% quarter-over-quarter to 75.3 MW in the third quarter of 2022.
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Andhra Pradesh Regulator Rolls Out Green Energy Open Access Rules 2024

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					</table>The Maharashtra Electricity Regulatory Commission (<a href="https://merc.gov.in/" target="_blank" rel="noopener">MERC</a>) has increased the banking charges for green energy open access consumers to 8% of the energy banked from 2%.
Following the Electricity Act, 2003 and the Tariff Policy, 2016, the Commission has enacted amendments to the Maharashtra Electricity Regulatory Commission (Distribution Open Access) Regulations, 2016.
These changes, outlined in the (Second Amendment) Regulations, 2023, address recent sectoral developments, including amendments to the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022.
The new regulations stipulate that any unutilized surplus banked energy will be considered lapsed at each banking cycle&#8217;s end.
However, the renewable energy generating station is entitled to receive Renewable Energy Certificates (REC) for the lapsed banked energy.
The regulations provide that if the consumer is a captive consumer, there won&#8217;t be any restrictions on the load.
Consumers with a contract demand of 100 kW or more, or as may be amended in the rules, or an entity with multiple connections aggregating 100 kW or more in the same electricity circle of a distribution licensee are eligible to obtain power from Green Energy through Open Access.
Green Energy Open Access will be permitted for consumers with a contract demand lower than 1 MW. This is based on a special energy meter for all high-tension consumers and a ToD meter for all eligible low-tension Consumers.
Provisions for the Captive Power Project
<ul>
<li>Captive consumers utilizing Green Energy Open Access will have no limit on power supply load.</li>
<li>The license area restriction applies exclusively to the Maharashtra State Electricity Distribution Company Limited (<a href="https://www.mahadiscom.in/en/home/">MSEDCL</a>). For all other distribution licensees, the area considered shall equal the entire license area.</li>
<li>Open Access consumers sourcing power from renewable energy generators are not subject to the capacity limit. However, they are subject to conditions related to the resultant power flow, as specified.</li>
<li>Additionally, in the scenario of having multiple connections before initiating Green Energy Open Access, consumers must notify the distribution licensee in advance about the percentage share of energy generation from the renewable energy projects allocated to each connection. This would ensure the distribution licensee can appropriately account for the energy distribution.</li>
<li>Green Energy Open Access consumers would not be allowed to alter the amount of power consumed through open access for a minimum of twelve-time blocks.</li>
<li>The provisions of Green Energy Open Access are valid only when the power is sourced along with the green attribute. This provision does not apply if the generator is separately selling RECs or the renewable component.</li>
</ul>
If the consumer meets the eligibility criteria, a consumer with rooftop renewable energy generating systems can simultaneously avail Open Access under these regulations.
During this simultaneous operation, the net drawal recorded on the net meter, adjusted for banking credit available under rooftop regulations, will be utilized for adjusting energy credit, following the priority stipulated in the principal regulations.
Central Nodal Agency
For Short-Term Green Energy Open Access, the Maharashtra State Load Despatch Centre, and for Medium/Long-Term Green Energy Open Access, the State Transmission Utility will perform the duties of the Nodal Agency as outlined by the Central Nodal Agency.
The relevant distribution licensee must provide the necessary details to the Nodal Agency for compliance with timelines specified in the rules and procedures for Green Open Access by the Central Nodal Agency.
Cross Subsidy Surcharge
The cross-subsidy surcharge will not be applicable if power is supplied to the Open Access Consumer from a non-fossil fuel-based waste-to-energy plant. It will also not be applicable if green energy is used to produce green hydrogen and green ammonia.
Additional Surcharge
No additional surcharge is applicable if power from a non-fossil fuel-based Waste-to-Energy plant is supplied to the Open Access Consumer. It will also not apply if green energy is utilized to produce green hydrogen and green ammonia.
No additional surcharge is applicable for electricity produced from offshore wind projects commissioned up to December 2032 and supplied to Open Access Consumers and for Green Energy Open Access consumers if fixed charges are paid by such consumers.
In a ruling, the MERC <a href="https://www.mercomindia.com/merc-green-open-access-waste-to-energy" target="_blank" rel="noopener">allowed</a> Pimpri Chinchwad Municipal Corporation to procure power through open access from a waste-to-energy plant developed by Antony Lara Renewable Energy without cross-subsidy and additional surcharges.
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Maharashtra Hikes Banking Charges to 8% Under New Open Access Rules

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					</table>The Andhra Pradesh Electricity Regulatory Commission (<a href="https://aperc.gov.in/" target="_blank" rel="noopener">APERC</a>) has issued a preliminary draft of the Green Energy Open Access, Charges, and Banking Regulations in 2023.
The regulation applies to granting open access for electricity generated from renewable energy sources for utilization within the state involving Intra-State Transmission Systems (lnSTS) and/or distribution systems of licensed entities.
It also encompasses those InSTS and/or distribution systems that are incidental to the Interstate Transmission of electricity.
Entities declared insolvent or bankrupt, those with outstanding dues exceeding two months from the distribution/transmission licensee&#8217;s billing, or those involved in cases of unauthorized electricity use or theft at the time of application will not be eligible for open access under the new regulations.
The draft regulation is scheduled to be finalized after 21 days from September 30, 2023. Stakeholders can submit their comments, suggestions, or objections by October 21, 2023.
Criteria for allowing Green Energy Open Access (GEOA) include:  
<ul>
<li>Long-term GEOA must align with the State Grid Code&#8217;s planning criteria.</li>
<li>Short-term/Medium-term GEOA can be granted if it fits within the system&#8217;s capacity, which includes available design margins, flexibility in power flows, and spare capacity for future growth.</li>
</ul>
Existing consumers and generators will retain their open access rights per their current agreements or government policies for the duration specified in those agreements or policies as long as these terms do not conflict with the Electricity Act.
Classification of Open Access Consumers
Open-access consumers will be categorized based on the duration of their use of the intra-state transmission and/or distribution system as follows:
<ul>
<li>Long-term Open Access Consumers: Individuals using or planning to use open access for five years or more.</li>
<li>Medium-term Open Access Consumers: Individuals using or planning to use open access for more than one year but less than five years.</li>
<li>Short-term Open Access Consumers: Individuals using or planning to use open access for one year or less.</li>
</ul>
Short-term open access consumers can reapply for access after their term expires, subject to availability. Priority for such access will be determined based on the application submission date.
Green Energy Open Access consumers will have priority over fossil-based open access consumers in terms of connectivity and general access. This preference also extends to situations involving system constraints and limited transmission/distribution system capacity when granting connectivity or open access.
Long-term GEOA consumers will receive preference, followed by medium-term and short-term consumers, with a first-come, first-served basis for decision-making.
Procedure for Granting Green Energy Open Access 
The Andhra Pradesh State Load Despatch Centre (APSLDC) will serve as the State Nodal Agency (SNA) for short-term green energy open access.
The State Transmission Utility (STU) will act as the nodal agency for granting long-term and medium-term green energy open access.
All applications related to green energy open access must be submitted to the respective State Nodal Agencies or through the centralized portal established by the Central Nodal Agency under the Green Energy Open Access Rules.
Applications received directly by the SNA or the Central Nodal Agency will be processed following established procedures and formats.
These SNAs will create comprehensive procedures and timelines for green energy open access, which will be submitted to the Commission within 30 days of this regulation&#8217;s publication in the Gazette. These procedures and timelines will align with those notified by the central agency and the Green Energy Open Access Rules.
The SNAs will collaborate with other relevant utilities to provide the public with access to all pertinent information regarding green energy open access via the Central Nodal Agency&#8217;s portal.
Applicable Charges 
<ul>
<li>Transmission charges: The Commission will determine these charges in line with APERC (Terms and Conditions for Determination of Transmission Tariff) Regulation, 2005, and its subsequent amendments.</li>
<li>Wheeling charges: The Commission will determine these charges according to APERC (Determination of Tariff for Wheeling and Retail Sale of Electricity) Regulation, 2005, and its amendments</li>
<li>Cross-subsidy surcharge: The Commission will determine this charge in Retail Supply Tariff Orders or other Commission orders as applicable.</li>
</ul>
Standby charges (if applicable): Standby Charges will be set at 120% of the normal tariff for both demand and energy within the consumer category. No penalty will be imposed for exceeding the contracted maximum demand due to open access, provided there is no notice from concerned parties. If such a standby arrangement extends beyond 72 hours from the notice time, Standby Charges will be 120% of the normal tariff on energy or the maximum tariff for energy purchased from exchanges/markets during the standby period, whichever is higher.
<ul>
<li>SLDC fees and charges: The Commission will determine these fees and charges following APERC (Levy and Collection of Fees and Charges by State Load Despatch Centre) Regulation, 2006, and any subsequent revisions.</li>
<li>Scheduling and Deviation settlement charges: Until the Commission establishes a comprehensive Regulation on Deviation settlement, charges will be collected per CERC DSM Regulations, 2022, and any amendments.</li>
<li>Reactive Energy Charges: The Green Energy Open Access consumer will pay for reactive energy in compliance with provisions outlined in the State Grid Code as notified by the Commission. If the Commission has not specified rates in the State Grid Code, rates specified in CERC (Indian Electricity Grid Code) Regulations or rates specified by CERC will apply.</li>
<li>Losses between entry and exit points of open access: Losses will be charged as applicable,           following the Commission&#8217;s Orders/Regulations.</li>
<li>Processing fee for Green Energy Open Access: Long-term: ₹100,000 (~$1,201), Medium-term: ₹25,000 (~$300.3) and Short-term: As determined by the commission.</li>
</ul>
The distribution licensee must issue an annual green certificate to consumers in line with the APERC Renewable Power Purchase Obligation (Compliance by the purchase of Renewable Energy/Renewable Energy Certificates) Regulation of 2022, including any subsequent amendments.
Banking Charges
Only wind, solar, and mini hydel power generators will be permitted to utilize the energy banking facility, subject to the following conditions:
<ul>
<li>Energy banking will occur on a monthly billing cycle basis. Any energy that is banked must be used within the same billing cycle. If not utilized, the unclaimed energy will expire at the end of the cycle, and no compensation will be provided for such unused banked energy.</li>
<li>A fee of 8% of the banked energy will be charged as banking charges at the consumer&#8217;s end.</li>
<li>GEOA consumers can bank up to 30% of their monthly electricity consumption from the distribution licensee.</li>
<li>Banking and withdrawal of energy are allowed throughout the billing cycle. However, if energy is withdrawn during peak load hours specified in the Time-of-Day approved by the commission in the retail supply tariff orders, 12% of the banked energy will be charged.</li>
</ul>
Additionally, energy withdrawal during peak load hours is not permitted if Restriction and Control measures are in effect.
Daily accounting will be used to calculate the monthly energy banking.
Settlement of open-access energy at the consumer&#8217;s end will follow this priority order:
<ul>
<li>Renewable energy generation after accounting for losses.</li>
<li>Captive power generation.</li>
<li>Banked energy.</li>
<li>Open Access Power through Exchange / Bi-lateral transactions.</li>
<li>Power from the distribution company (DISCOM).</li>
</ul>
The SLDC will maintain records of all energy banking transactions and provide model illustrations of energy and banking settlement for different scenarios on its website to facilitate understanding by various stakeholders.
Curtailment
Among GEOA consumers, preference is given to long-term GEOA consumers, followed by medium-term and short-term consumers, in that order. However, the decision to grant open access is determined on a first-come, first-served basis.
During transmission or distribution system constraints, curtailment priorities are as follows: first, short-term open-access consumers (excluding GEOA consumers) are curtailed, followed by medium-term open-access consumers (excluding GEOA consumers), and finally, long-term open-access consumers (excluding GEOA consumers) are curtailed before GEOA consumers.
Open access applications cannot be denied without giving applicants a chance to be heard. Disputes and complaints go to the nodal agency for resolution unless the agency is involved, in which case they go to the Consumer Grievances Redressal Forum.
Mercom earlier <a href="https://www.mercomindia.com/andhra-pradesh-carry-solar-open-access-momentum-future" target="_blank" rel="noopener">reported</a> a revival of interest from the industry in Andhra Pradesh to source solar energy through open access. Installations surged by 450% quarter-over-quarter to 75.3 MW in the third quarter of 2022.
Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.

Andhra Pradesh Regulator Issues Draft Green Energy Open Access Regulations

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					</table>Energy banking is an essential aspect of any open access project. The states with favorable energy banking policies are leading the way in open access installations.
Banking of energy or power is when the generator supplies power to the grid, not to sell to either the third party or a licensee but to withdraw it from the grid for its use later when needed.
Through banking, generators inject surplus energy into the grid, which can be withdrawn as and when needed. This helps the renewable energy developer avail surplus energy per requirement while the DISCOMs can generate additional revenue through banking charges.
Karnataka was the top state in terms of solar open access installations in Q1 2022, followed closely by Maharashtra, Gujarat, Chhattisgarh, and Tamil Nadu. The top five states accounted for 86% of the total installations during the quarter, according to <a href="https://mercomindia.com/product/india-solar-open-access-market-report-q1-2022/" target="_blank" rel="noopener">Mercom India Solar Open Access Market Report Q1 2022</a>.
Uttar Pradesh, Maharashtra, Madhya Pradesh, Rajasthan, Karnataka, Haryana, and Chhattisgarh have well-defined energy banking policies which have provided open access customers with a sense of energy security.
Haryana
Haryana Electricity Regulatory Commission allowed energy settlement on an annual basis with a <a href="https://mercomindia.com/26316-2/" target="_blank" rel="noopener">banking charge</a> of ₹1.5 (~$0.019)/kWh for 100% of the energy to be banked by captive customers. The time-of-day tariff approved by the Commission also mentions that the drawal of banked power will not be allowed during the peak months (May to September) and also during peak load hours.
Uttar Pradesh
The Uttar Pradesh Electricity Regulatory Commission, in its open access banking regulation for captive and renewable energy generation projects, implemented energy settlement on an annual basis with a banking charge of 6%. It also allowed 100% of the energy to be banked for captive customers.
Last December, UPERC <a href="https://mercomindia.com/peak-off-peak-hours-specified-energy-banking/" target="_blank" rel="noopener">declared</a> that peak hours for banking and withdrawal of energy would be from 18:00 to 24:00 and off-peak hours from 00:00 to 18:00. The Commission determined the peak and off-peak hours while disposing of a petition filed by an open access solar project developer.
Karnataka
The Karnataka Electricity Regulatory Commission (KERC) enacted an annual (April &#8211; March) energy settlement with a banking charge of 2%, allowing 100% of the energy to be banked for captive customers and third-party sales.
In March this year, KERC <a href="https://mercomindia.com/karnataka-approves-carry-forward-banked-renewable-energy/" target="_blank" rel="noopener">ruled</a> that the energy banked and unutilized as of March 31, 2021, including the carried forward banked energy for the financial year 2020 from all renewable sources, both the REC (renewable energy certificate) and non-REC route, should be utilized on or before August 31, 2022, by the companies wheeling energy under the wheeling and banking agreement.
Chhattisgarh
 The Chhattisgarh State Electricity Regulatory Commission’s (CSERC) Decentralized Renewable Energy Regulations in 2019 implemented energy settlement on an annual (April &#8211; March) basis with a banking charge of 2%. It also allowed 100% of the energy to be banked for captive customers and third-party sale. The Commission does not let banked energy be redeemed during peak months, i.e., June 25 to July 25, September 10 to October 10, March 15 to April 15, and peak hours (6 pm to 11 pm).
The CSERC has <a href="https://mercomindia.com/chhattisgarh-clarifies-banking-distributed-renewable-systems/" target="_blank" rel="noopener">clarified</a> the wheeling and banking regulations for independent distributed renewable energy systems. The settlement of energy at the consumer end should be in the following priority:
<ul>
<li>Solar energy injection after adjustment of transmission and wheeling losses</li>
<li>Captive energy from the captive generating projects located at a distant location after adjustment of transmission and wheeling charges and losses as applicable</li>
</ul>
<ul>
<li>Open access energy through exchange or any other source</li>
<li>Banked solar energy redemption, and after that, any excess consumption should be considered as energy of distribution licensee</li>
</ul>
Gujarat
 The Gujarat Electricity Regulatory Commission has allowed daily energy settlement for solar open access projects from 7 am to 6 pm. Captive and third-party generators can bank up to 100% of the energy. The banking charge is ₹1.5 (~$0.019)/kWh for HT consumers and ₹1.10 (~$0.014)/kWh for LT consumers.
Maharashtra
 The Maharashtra Electricity Regulatory Commission introduced regulations for distribution open access in 2019. It implemented energy settlement on a monthly basis with a banking charge of 2%, allowing 100% of the energy to be banked for captive customers and third-party sales.
Telangana
 The Solar Power Policy Framework for Telangana enforces energy settlement on an annual (April &#8211; March) basis with a banking charge of 2%, allowing 100% of the energy to be banked for all captive and open access customers. The Commission mandates that banked units cannot be consumed or redeemed in the peak months (Feb to June) and the peak hours (6 pm to 10 pm).
Rajasthan
 The Rajasthan Solar Policy 2019 <a href="https://mercomindia.com/rajasthan-solar-policy-target-achieving-25gw-capacity/" target="_blank" rel="noopener">allowed</a> annual energy settlements for captive and third-party open access projects. The drawal of banked energy will not be permitted during peak hours as determined by DISCOMs. The banking charge for energy settlement is 10% of the overall banked energy.
Recently, the Ministry of Power <a href="https://mercomindia.com/no-load-limit-energy-open-access-captive-consumers/" target="_blank" rel="noopener">issued</a> the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022.’ Banking will now be permitted at least every month on payment of charges to compensate additional costs to the distribution licensee. The allowed quantity of banked energy by the green energy open access consumers will be at least 30% of the total monthly electricity consumption from the distribution licensee.
‘Mercom India Solar Open Access Market Report Q1 2022’ is 116 pages and covers a detailed analysis and data on the market. For the complete report, please  visit:  <a href="https://mercomindia.com/product/india-solar-open-access-market-report-q1-2022" target="_blank" rel="noopener">https://mercomindia.com/product/india-solar-open-access-market-report-q1-2022</a>

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