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					</table>Maharashtra State Electricity Distribution (<a href="https://www.mahadiscom.in/en/home/" target="_blank" rel="noopener">MSEDCL</a>) has introduced new guidelines for the state to implement Green Energy Open Access (GEOA). These rules apply to both existing and new consumers.
The Green Open Access Rules, 2022 allows consumers to generate, purchase, and consume green energy, including energy from waste-to-energy plants, through open access.
Under the new guidelines, consumers with a contract demand or sanctioned load of 100 kW or more can access green energy through open access, provided they meet specific metering requirements. This equitable approach, mandating a Special Energy Meter for High Tension Consumers and a ToD meter for Low Tension Consumers, ensures fairness for all.
However, the access will be restricted with specific conditions for multiple connections within the same electricity circle.
There are special provisions for captive consumers and conditions for open-access consumers sourcing power from renewable energy generators.
MSEDCL plans to introduce specific procedures and formats devised by the National Load Dispatch Centre to seek GEOA.
The Maharashtra State Load Despatch Center has been appointed as the nodal agency for short-term open access, and the State Transmission Utility has been appointed for Medium-Term and long-term open access.
The regulations also exempt power sourced from non-fossil-based waste-to-energy plants and green energy used to produce green hydrogen and ammonia from cross-subsidy and additional surcharges. Additional exemptions for offshore wind projects commissioned up to December 2032, and GEOA consumers who pay fixed charges have been extended.
Banking charges have been set at 8% of the energy banked. Any unutilized surplus banked energy will lapse at the end of each banking cycle, and they will be eligible to receive renewable energy certificates for the lapsed energy.
In 2023, the Maharashtra Electricity Regulatory Commission (<a href="https://merc.gov.in/" target="_blank" rel="noopener">MERC</a>) included GEOA in the Maharashtra Electricity Regulatory Commission (Distribution Open Access) (Second Amendment) Regulations, 2023.
In February 2024, the Ministry of Power <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. These rules aim to promote the use of renewable energy and align the states’ open access regulations with the notified rules and the amendments.
The regulations pertain to long/medium/short-term access to green energy through transmission lines or associated facilities of the intra-state transmission system and distribution lines or related facilities of the distribution system.
The regulations will apply to all types of renewable energy sources. Any mechanism that uses green energy to replace fossil fuels, including green hydrogen and green ammonia.
In July 2024, MERC <a href="https://www.mercomindia.com/merc-msedcl-procure-solar-thermal-power" target="_blank" rel="noopener">approved</a> MSEDCL’s petition to procure 5,000 MW of solar and 1,600 MW of thermal power.

MSEDCL Issues New Guidelines for Green Energy Open Access in Maharashtra

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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.
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.

Maharashtra Hikes Banking Charges to 8% Under New Open Access Rules

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					</table>Consumers with a contracted or sanctioned load of 100 kW and above will be eligible to procure power through green energy open access, according to the draft Green Energy Open Access Regulations, 2023, issued by the Odisha Electricity Regulatory Commission (<a href="https://www.orierc.org/(S(tgtthycwn2w5bkbohmypdbyr))/default.aspx" target="_blank" rel="noopener">OERC</a>).
There will be no load restriction for captive consumers procuring power under green energy open access.
The draft regulations align with the green energy open access regulations <a href="https://www.mercomindia.com/no-load-limit-energy-open-access-captive-consumers" target="_blank" rel="noopener">issued</a> by the Ministry of Power last June.
Stakeholders can submit feedback until August 28, 2023.
The State Load Despatch Center (SLDC) will be the nodal agency for the grant of intrastate green energy open access on a short-term basis, and the State Transmission Utility (STU) will be the nodal agency for the grant of intrastate green energy open access for medium and long-term access.
A central nodal agency will be notified by the Union government to set up and operate a single-window green energy open access system for the interstate transmission system (ISTS).
Green Energy Open Access Charges
Transmission Charges
Green energy open access consumers will pay a charge for the use of intrastate transmission system (InSTS) and ISTS as follows:
<ul>
<li>For the use of ISTS: The charges will be specified by the Central Electricity Regulatory Commission.</li>
<li>For the use of InSTS: The transmission charges applicable during the relevant period will be set by the Commission. These charges will amount to ₹/MW for long-term and medium-term open access, while for short-term open access, they will be ₹/kWh. In the case of renewable energy production within the state, transmission charges, and losses will be calculated at ₹/kWh for all open access durations (long, medium, and short-term). However, For renewable energy generation located outside the state, consumers will be responsible for covering the intrastate transmission charges and losses, adhering to the relevant regulations.</li>
</ul>
Wheeling Charges
The determination of wheeling charges will fall under the Commission&#8217;s purview. These charges, applicable to consumers utilizing open access for green energy, will be calculated at ₹/kWh and will be levied based on the actual wheeled energy. Apart from the wheeling charge, consumers pursuing green energy open access will also be subject to wheeling losses, which will be determined and approved by the Commission as outlined in the tariff order of the respective year.
Cross-Subsidy and Additional Surcharge
Consumers will pay a cross-subsidy surcharge as determined by the Commission in the tariff order for the relevant year.
Consumers must make monthly payments for the cross-subsidy surcharge based on the energy consumed via open access during the month. The surcharge amount will be remitted to the jurisdictional distribution company (DISCOM) from which the consumer was procuring electricity before opting for open access.
The Commission can determine a lower surcharge in the case of shortages and load shedding by the DISCOM.
The cross-subsidy surcharge will not be levied if the consumer is availing green power from its own captive generating project.
Also, cross-subsidy surcharge and additional surcharge will not be applicable in case of power produced from a non-fossil fuel-based waste-to-energy project is supplied to the open access consumer.
The additional surcharge will not be applicable if electricity is produced from offshore wind projects, commissioned up to December 2025, and supplied to the open access consumer.
Further, cross-subsidy surcharge and additional surcharge will not be applicable if green energy is used for the production of green hydrogen and green ammonia.
Standby Facility and Charges
In situations where a consumer cannot secure or schedule power from the agreed-upon generating sources due to outages in the generator or transmission systems, or both, the standby charges will become relevant per the standby arrangement outlined by the respective DISCOM or GRIDCO.
However, these standby charges will not apply if the consumer provides advance notice at least one day before the Day-Ahead Market (DAM) closure time.
The standby charges imposed for green energy open access will not exceed 25% of the normal tariff corresponding to the consumer&#8217;s specific category.
The calculation of standby charges will be based on the actual energy consumed by the consumer from the DISCOM during the standby period, particularly in cases where there is an outage in the renewable energy generator under the green energy open access arrangement.
Other Charges
The consumer availing of green energy open access will have to pay applicable SLDC charges, scheduling charges, and deviation settlement charges as per the regulations of the Commission.
Banking of Power
According to the proposed regulations, the SLDC will formulate a mechanism for scheduling of injection and drawl of energy linked to the banking of renewable energy.
The quantum of energy banked will be limited to 30% of the total monthly generation (within the state) or consumption of electricity from DISCOM by the consumer.
The energy banked by a generator or consumer located within the state will be constrained to 200 MW for all open access consumers, with the exception of consumers utilizing power for green hydrogen or green ammonia production.
Consumers who draw renewable energy from within or outside the state to produce green hydrogen or green ammonia can take advantage of the banking facility. They may avail banking facility limited to 10% of the energy injected by their renewable sources during the month or an energy amount equivalent to 200 MW (144 MUs), whichever is lower.
The total capacity for renewable energy banking with GRIDCO under the above categories must not surpass 400 MW or the corresponding energy equivalent at any given time.
The banking charge for solar generation will be 10% of the energy banked. The banking charge for wind or solar and wind hybrid generation will be 5% of the energy banked.
The charges associated with the banking of renewable energy used to produce green hydrogen and green ammonia will be within the limits of the cost difference between the average tariff of renewable energy procured by GRIDCO in the preceding fiscal year and the average market clearing price in the Day-Ahead Market for the respective month in which the renewable energy has been banked.
The banking of energy will be permitted only on a monthly basis. The credit for banked energy will not be permitted to be carried forward to subsequent banking cycles or month.
The banked energy, whether accrued during peak or off-peak Time of Day (TOD) intervals, will be exclusively available for withdrawal during off-peak TOD periods. This withdrawal will be subject to the payment of specified banking charges. The specific TOD slots will be determined periodically by the Commission in their tariff orders.
Upon the conclusion of the banking cycle, any unused banked energy will be treated as deemed purchase by GRIDCO. The purchase price will be lower than GRIDCO&#8217;s lowest renewable energy procurement price or the minimum price established through the Solar Energy Corporation of India&#8217;s competitive bidding process in the preceding fiscal year. Payment for this deemed purchase by GRIDCO will be restricted to 10% of the total banked energy.
The banking of energy and the withdrawal of banked energy will be contingent upon day-ahead scheduling. The settlement for energy transactions will occur in real-time, based on 15-minute time blocks.
Other Points
The consumer may purchase, on a voluntary basis, more renewable energy than they are obligated to. For ease of implementation, this may be in steps of 25% and going up to 100%.
Any requisition for procurement of green energy from a DISCOM or GRIDCO will be for a minimum period of one year.
Procedure for Grant of Green Energy Open Access
The nodal agency will approve applications pertaining to open access for green energy within 15 days of receiving the application. Short-term and medium-term open access will be permitted, provided there is surplus capacity in the transmission system without the need for expansion.
However, the transmission or distribution system might be augmented based on a load flow analysis if deemed necessary for long-term open access.
Challenges to a decision by the nodal agency can be raised with the Commission within 30 days from the date of receiving the decision. The Commission will resolve the appeal within three months.&#8221;
The Maharashtra Electricity Regulatory Commission recently <a href="https://www.mercomindia.com/maharashtra-green-energy-open-access-consumers-100-kw" target="_blank" rel="noopener">proposed</a> amendments to the Distributed Open Access Regulations, 2016, in line with the Ministry of Power&#8217;s Green Energy Open Access Rules.
Subscribe to Mercom&#8217;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&#8217;t miss any critical updates from the renewable industry.

Odisha Proposes Green Energy Open Access for Consumers With Load of 100 kW

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					</table>The Gujarat Electricity Regulatory Commission (<a href="https://gercin.org/" target="_blank" rel="noopener">GERC</a>) has issued the draft Terms and Conditions for Green Energy Open Access Regulations 2023 to include rules for banking and other open access charges applicable for clean energy open access consumers.
The regulations will be applicable for power generated through the open access model from green energy sources, including the energy from non-fossil fuel-based municipal solid waste-to-energy projects.
The draft proposal comes days after the Ministry of Power <a href="https://www.mercomindia.com/regulators-comply-green-open-access-rules" 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&#8217; Open Access Regulations with the notified rules.
The Gujarat State Load Despatch Center will be designated as the state nodal agency for the grant of short-term green energy open access, and the state transmission utility will act as the state nodal agency for the grant of long-term green energy open access and medium-term green energy open access.
The green energy open access consumers will be classified into the following categories:
<ul>
<li>Long-term green energy open access: Consumers will have the right to use the intrastate transmission system or the distribution system for a period exceeding 12 years but not exceeding 25 years.</li>
<li>Medium-term green energy open access: Consumers will have the right to use an intrastate transmission system or distribution system for a period exceeding three months but not exceeding three years.</li>
<li>Short-term green energy open access: Consumers can procure power through open access for one month at a time.</li>
</ul>
Allotment Priority
Distribution companies (DISCOMs) will have the highest priority over other green energy open consumers.
Green energy open access consumers will have a preference over normal open access consumers.
Long-term green energy open access consumers will have a preference over medium-term and short-term green energy open access consumers.
Eligibility Criteria
Any entity that has constructed a captive generating project will have the right to open access.
The consumers who have rooftop solar projects up to 1 MW in their premises under net-metering for captive use will be exempted from providing the details of equity holding and energy consumption to fulfill the criteria for captive generating projects with the DISCOM.
Also, consumers (except captive consumers) with a sanctioned load of 100 kW and above will be eligible for open access for sourcing green energy under these regulations.
Procedure for Grant of Green Energy Open Access
The new draft proposed the applicants pay a non-refundable processing fee of ₹50,000 (~$609.81) for the long-term, ₹25,000 (~$304.91) for the medium-term and ₹5,000 (~$60.98) for short-term green energy open access to the state nodal agency.
To prevent unnecessary congestion in the energy corridor, green energy projects applying for long-term open access and wheeling agreements must complete their commissioning within 24 months from the date of application submission. Failure to do so would result in the cancellation of the granted green energy open access.
Banking 
The new regulations extend the banking facility for the consumers availing green energy open access. The permitted quantum of banked energy by the green energy open access consumers will be at least 30% of the total monthly consumption of electricity from the DISCOM by the consumers.
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 get renewable energy certificates (RECs) to the extent of the lapsed banked energy.
Transmission Charges
Green energy open access consumers will have to pay transmission charges for the use of interstate transmission system (ISTS) as determined by the Commission from time to time.
Whereas the intrastate transmission charges for long-term, medium-term, and short-term open access will be determined as per the prevailing provisions of the GERC Multi Year Tariff (MYT) Regulations from time to time.
Wheeling Charges
Wheeling charges payable to DISCOMs by the green energy open access consumer will be determined by the Commission in the tariff orders issued from time to time.
In addition to wheeling charges, the wheeling loss will apply to consumers or generators on a case-to-case basis, as determined by the Commission.
Cross-Subsidy Surcharge
The green energy open access consumer will be required to pay a cross-subsidy surcharge as provided in the relevant tariff order issued by the Commission. The cross-subsidy surcharge will be payable on a billing cycle basis, calculated according to the actual energy consumed during the billing period.
The cross-subsidy surcharge for consumers purchasing green energy will not be increased, during 12 years from the date of the commercial operation of the generating project using renewable energy sources, by more than 50% of the surcharge fixed for the year in which open access is granted.
If power generated from a municipal solid waste-to-energy project is supplied to an open access consumer, the cross-subsidy surcharge will not be applicable.
The cross-subsidy surcharge will be waived if green energy obtained through open access is used to produce green hydrogen and green ammonia.
Additional Surcharge
The additional surcharge will not apply to green energy open access consumers if such consumers pay the fixed charge to DISCOM for the quantum of green energy availed within the sanctioned load.
If the green energy availed by the consumer is more than the sanctioned load, and the consumer is paying no fixed charge, then an additional surcharge, as approved by the Commission, will be applicable for the additional quantum availed.
There will be no additional surcharge for captive power projects, and  the green energy is used to produce green hydrogen and ammonia.
Standby Charges   
If a green energy open access consumer cannot obtain power from the agreed-upon generating sources, a standby arrangement will be made available to the consumer by the DISCOM.
The DISCOM will have the right to collect standby charges, amounting to 25% of the energy charges applicable to the consumer&#8217;s tariff category. These charges will align with the prevailing rate schedule specified in the relevant tariff order approved by the Commission.
Scheduling Charges
The green energy open access consumers will be required to pay ₹2,000 (~$24.39)/MW/day basis scheduling charges to the SLDC or as decided by the Commission.
Deviation Settlement Charges
The consumers procuring power from renewable generators (wind and solar) will be governed by the Forecasting, Scheduling, Deviation Settlement, and Related Matters of Solar and Wind Generation Sources Regulations, 2019. At the same time, other renewable energy technology-based generators will be governed by the provision of relevant technology-based tariffs determined by the Commission.
Reactive Energy Charge
The payment for the reactive energy charges will be per the provisions stipulated in the tariff orders passed by the Commission from time to time. If the green energy open access consumer is procuring power from a DISCOM and simultaneously wheeling the power from a green energy supplier, in that case, the reactive energy charge will be as per the applicable tariff orders for the relevant class of consumers.
Procedure for Applying for Day-ahead Green Energy Open Access Transactions 
For the applications received by the state nodal agency before 13:00 hours of the day immediately preceding the day of scheduling for day-ahead green energy open access transaction, the state nodal agency will check for congestion in the system and grant approval no later than 15:00 hours.
The applicant will have to pay a fee of ₹5,000 (~$60.95) for each transaction to the state nodal agency.
Energy Accounting
Interstate transactions
For green energy open access carried out under interstate transactions, energy accounting will follow the Central Electricity Regulatory Commission (CERC) regulations.
However, if a generator is connected to the state grid and sells power outside the state, the energy accounting for settling deviations will be determined based on either the reference charge rate or the normal rate of charges for deviation, whichever is greater.
Intrastate Transactions
The generator will be required to pay the deviation charges for intrastate transactions according to the regulations outlined in the Forecasting and Scheduling and Related Matters for Solar and Wind Generation Sources Regulations of 2019.
However, green energy projects (other than solar, wind, and wind-solar hybrid) commissioned under the respective tariff orders approved by the Commission and currently operational will be governed by the provisions stated in the relevant orders issued by the Commission.
Recently, the Punjab State Electricity Regulatory Commission <a href="https://www.mercomindia.com/punjab-clarifications-green-open-access" target="_blank" rel="noopener">amended</a> its intra-state open access regulations according to the center&#8217;s Green Energy Open Access Rules to encourage open access installations in the state.
Subscribe to Mercom&#8217;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&#8217;t miss any critical updates from the renewable industry.

Gujarat Regulator Proposes Green Energy Open Access Regulations

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					</table>The Karnataka Electricity Regulatory Commission (<a href="https://kerc.karnataka.gov.in/en" target="_blank" rel="noopener">KERC</a>) has clarified various rules in the state&#8217;s Terms and Conditions for Green Energy Open Access Regulations 2022.
The clarifications were issued in response to the requests from the stakeholders who sought the Commission to simplify specific regulations, including time of day (ToD) settlement and open access charges.
KERC <a href="https://www.mercomindia.com/karnataka-draft-green-energy-open-access-regulations" target="_blank" rel="noopener">issued</a> the draft &#8216;Green Energy Open Access Regulations, 2022 in August last year.
Implementation of Time-of-Day Settlement for Energy Injected and Drawn 
In accordance with the guidelines set by the Forum of Regulators, the Commission has now declared that the energy banked during the peak time-of-day (ToD) periods can be utilized both during peak and off-peak periods.
However, the drawal of off-peak ToD banked energy during off-peak slots will attract banking charges, and drawal from off-peak ToD slots to peak ToD slots, will attract additional charges on top of the banking charges.
The banking charges are calculated at 8% of the banked energy, and the additional charge is 2% of the banked energy.
The morning peak slot is scheduled from 6 am to 10 am, and the evening peak hours will be from 6 pm to 10 pm.
Settlement Priority for Different Generation Sources 
As per the existing provisions, the power delivered by the company through wheeling is to be prioritized for billing, and the residual demand was deemed to have been met by the electricity supply company (ESCOM) serving the consumer&#8217;s area.
The bill was prepared after deducting the consumption by the consumer from various open access sources, ensuring that power procured in any 15-minute time block should not exceed the contract demand.
The Commission has now clarified the following priority for adjustment of energy purchased from various sources while preparing the bills:
<ul>
<li>Power market purchase</li>
<li>Short-term purchases other than power market</li>
<li>Medium-term purchases other than the licensee</li>
<li>Long-term purchases other than the licensee</li>
<li>Distribution licensee</li>
</ul>
In cases where consumers purchase power under the new Green Open Access rules and the older regulations, they must have separate meters for energy accounting. In the absence of separate meters, the energy allocation will be done proportionally based on the contracted capacity under and outside of the Green Open Access Rules. For billing purposes, the energy under the new Green Energy Open Access rules will be settled first, followed by the power consumed under the older regulations with annual banking.
Charges to be paid by new consumers added to the existing WBA
The generators will continue to have the authority to include or remove consumers from the current wheeling and banking agreement (WBA).
However, the open access charges must be paid per the new regulations for new and existing consumers who wish to increase their capacity. The new rules will also bind the banking facility provided to these consumers.
Transmission charges for Intrastate Wheeling of Energy  
The Commission has clarified that if the wheeling of power involves using the transmission network or networks of more than one licensee, the charges will vary for different scenarios.
Below are the scenarios listed in the clarifications &#8211;
<ul>
<li>If only a transmission network is used, transmission charges, including losses determined by the Commission, will be payable to the transmission licensee.</li>
<li>In cases where the transmission network and the ESCOM&#8217;s network are used, transmission charges will be payable to the transmission licensee. The transmission and distribution licensee&#8217;s technical losses and wheeling charges will be payable to the ESCOM, where the power is drawn. Wheeling charges for the power drawn will be shared equally among the ESCOMs whose networks are used.</li>
<li>If only ESCOM&#8217;s network is used, wheeling charges will be payable to ESCOM after deducting the technical losses.</li>
</ul>
Charges applicable under the Green Energy Open Access Rules 
According to the provisions of KERC Green Energy Open Access Regulations, 2022, the determination of open access charges will be carried out by the Commission using the methodology specified by the Forum of Regulators.
Considering the delay in the adoption of this methodology, the Commission has listed the following collection method for the Karnataka Power Transmission Corporation, State Load Despatch Center, and ESCOMs will be implemented:
<ul>
<li>The transmission charges and losses determined by the Commission in its tariff order will apply to all transactions under the Green Energy Open Access.</li>
<li>The wheeling charges and losses, additional surcharge, and cross-subsidy surcharge will be determined by the Commission in its tariff order. Additional surcharge will not be applicable if the fixed charges of the licensee are being recovered through a retail supply tariff and such fixed charges are paid by the open access consumers.</li>
<li>Standby charges will apply per the rules specified by the Ministry of Power.</li>
<li>Banking charges will be as set by the Forum of Regulators (8% of the banked energy)</li>
</ul>
Other charges
<ul>
<li>Since the consumers are not paying full fixed charges as per the present tariff structure, an additional surcharge as determined by the Commission in its tariff order from time to time will apply.</li>
<li>A monthly transaction charge of ₹3,000 (~$36.39) will apply for maintaining transaction details.</li>
<li>A monthly meter reading charge of ₹1,000 (~$12.13) will be applicable.</li>
</ul>
Similarly, load despatch center fees, scheduling and system operation charges, applicable parallel operation charges, reactive power charges, deviation settlement charges, and other charges as determined by the Commission will also apply.
Recently, KERC <a href="https://www.mercomindia.com/karnataka-proposes-changes-open-access" target="_blank" rel="noopener">released</a> the draft of the KERC (Terms and Conditions for Open Access) (Fifth Amendment) Regulations, 2023. The proposed amendments aim to align with Karnataka&#8217;s draft Green Energy Open Access Regulations released last August.
Last month, the Ministry of Power <a href="https://www.mercomindia.com/regulators-comply-green-open-access-rules" 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&#8217; open access regulations with the notified rules.
Subscribe to Mercom&#8217;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&#8217;t miss any critical updates from the renewable industry.

Karnataka Issues Clarifications for Green Energy Open Access Rules

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					</table><a href="https://mercomindia.com/union-budget-substantial-capital-expedite-green-energy-transition/" target="_blank" rel="noopener">The Union Finance Minister Nirmala Sitharaman laid out an expansive budgetary outlay for expediting green transition as she identified ‘Green Growth’ as one of the seven pillars for Budget 2023.</a> The budget proposed capital investments of ₹350 billion (~$4.28 billion) for green energy transition, net-zero objectives, and energy security. Additionally, it extended the Basic Customs Duty exemptions on several items, including lithium-ion batteries for electric vehicles, to help scale up the adoption of green mobility.
<a href="https://mercomindia.com/government-amends-green-energy-open-access-rules/" target="_blank" rel="noopener">The Ministry of Power has issued the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Amendment Rules, 2023, under which it has added provisions for the banking</a> settlement cycle, introduced new charges, and exempted offshore wind projects from paying the additional surcharge. Additionally, it also allowed consumers to purchase green energy based on their consumption. Most of the changes are intended to align the existing rules with newly approved regulations and provide flexibility to the consumer to promote renewable energy open access.
<a href="https://mercomindia.com/rec-q3-net-profit-rises-on-improved-asset-quality/" target="_blank" rel="noopener">Government-owned power sector lender REC India posted the highest-ever quarterly net profit at ₹28.78 billion (~$351.37 million) in the third quarter (Q3) of the financial year (FY) 2022-2023</a>, up 3.8% year-over-year. The company said that the improving asset quality and resolution of stressed assets primarily drove the growth in the net profit. REC said that none of its accounts has turned into non-performing assets during the April-December 2023 period.
<a href="https://mercomindia.com/railways-empanel-3-mw-rooftop-solar-systems/" target="_blank" rel="noopener">Danapur railway division of the East Central Railway has invited bids for state-wise empanelment of agencies to implement 3.252 MW of grid-connected rooftop solar projects in Bihar and Uttar Pradesh</a>. The projects include 446 kW of rooftop solar systems ranging from 10 kW to 100 kW, 2.755 MW of rooftop solar systems between 100 kW and 500 kW in Bihar, and 51 kW of rooftop solar systems with a capacity of greater than 10 kW and up to 100 kW in Uttar Pradesh.
<a href="https://mercomindia.com/anert-issues-rfs-to-implement-1-mw-solar-in-kerala/" target="_blank" rel="noopener">The Agency for New &amp; Renewable Energy Research and Technology has issued a request for selection (RfS) for an agency to implement a 1 MW grid-connected solar photovoltaic power project</a> at a government medical college campus in Thiruvananthapuram. The scope of the work includes design, supply, engineering, erection testing, and commissioning of the project, along with ten years of operation &amp; maintenance. The last date for submission of bids is February 15, 2023. Bids will be opened the next day.
<a href="https://mercomindia.com/seci-pays-7-billion-solar-wind-developers-november/" target="_blank" rel="noopener">The Solar Energy Corporation of India has released ₹7.91 billion (~$96.6 million) in payments to solar and wind power generators for the power purchased in November 2022.</a> The disbursal accounted for nearly 94.6% of the total amount paid by the nodal agency during the month. The amount is marginally lower than the payments made in October. The agency had released ₹8.04 billion (~$98.34 million) against power purchases. The agency disbursed a total of ₹8.35 billion (~$102.13 million), including payments towards solar and wind power purchases, reimbursements to developers, and duties in November.
<a href="https://mercomindia.com/regulator-rejects-wind-developers-adjustment-banked-units/" target="_blank" rel="noopener">Maharashtra Electricity Regulatory Commission has ruled that a wind power generator was not entitled to an adjustment of banked units from the generating project as the banked units injected</a> into the grid and the open access availed during the same financial year were from different generating stations. However, the Commission directed the Maharashtra State Electricity Distribution Company to refund wheeling and transmission charges recovered from the petitioner in energy bills with interest within one month from the date of the order.
<a href="https://mercomindia.com/electric-vehicle-chargers-hit-200-billion-2026-bnef/" target="_blank" rel="noopener">Total investment in electric vehicle chargers is set to cross $100 billion in 2023, and the next $100 billion of spending is expected to be achieved within the next three years, a new BloombergNEF study found.</a> Annual spending on electric vehicle charging infrastructure almost doubled to $62 billion during the previous year. There are currently more than 12 million active EV plug points globally, with the number of home chargers exceeding public chargers.

Daily News Wrap-Up: Union Budget 2023 Focuses on Green Energy Transition

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					</table>The Ministry of Power (<a href="https://powermin.gov.in/" target="_blank" rel="noopener">MoP</a>) has issued the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Amendment Rules, 2023, under which it has added provisions for the banking settlement cycle, introduced new charges, and exempted offshore wind projects from paying additional surcharge.
Additionally, it also allowed consumers to purchase green energy based on their consumption.
Most of the changes are intended to align the existing rules with newly approved regulations and provide flexibility to the consumer to promote renewable energy open access.
The amendments were notified on January 27, 2023, and came into effect on the same day.
The ministry had <a href="https://mercomindia.com/no-load-limit-energy-open-access-captive-consumers/" target="_blank" rel="noopener">notified</a> the Green Energy Open Access Rules 2022 in June last year.
The amended rules have changed the term related to banking from ‘month’ to ‘cycle,’ which further provides flexibility to states with different banking settlement periods and would be crucial to renewable energy generators.
However, the states would have to wait until the ministry comes out with a definition for the term ‘cycle’ notified in the new amended rules.
The notification clarified that the credit for banked energy will not be allowed to be carried forward to subsequent banking cycles and must be adjusted during the same cycle.
Any surplus banked energy will be considered lapsed at the end of each banking cycle. The renewable energy generator will be entitled to Renewable Energy Certificates for the lapsed banked energy.
The amendments also revise the charges levied on Green Energy Open Access, adding banking and standby charges wherever applicable. It also includes Load Despatch Centre fees, scheduling charges, and deviation settlement charges per the Commission&#8217;s relevant regulations.
The new rules exempt non-fossil fuel-based ‘Waste-to-Energy’ projects which supply to open access consumers from additional surcharge along with cross subsidy surcharge, which was previously notified.
Offshore wind projects commissioned up to December 2025 and supplying to open access consumers will be exempted from paying the additional surcharge.
The new provision substitutes older rules which exempted green energy utilized to produce green hydrogen and green ammonia.
The green open access consumers will have to pay standby charges wherever applicable and specified by the state regulators. The standby charges should not exceed 25% of the energy charges applicable to the consumer tariff category.
The consumers who provide a notice at least a day before delivery of power for standby arrangement to the distribution licensee before the Day Ahead Market closure time will be exempted from such charges.
The new rules state that any consumer can purchase green energy up to a certain percentage of the consumption or its total consumption. They can place a requisition for this with their distribution licensee, who will procure the requested green energy capacity and supply it to them. The consumers will also have the flexibility to give separate requests for solar and non-solar.
In a recent ruling, the MERC <a href="https://mercomindia.com/maharashtra-regulator-rejects-petition-seeking-changes-to-open-access-policy/" target="_blank" rel="noopener">turned</a> down an individual consumer petition requesting certain crucial amendments to rooftop solar and green energy open access regulations.
According to the <a href="https://mercomindia.com/product/india-solar-open-access-market-report-q3-2022/" target="_blank" rel="noopener">Mercom India Solar Open Access Market Report Q3 2022</a>, India installed around 1.9 GW of open access solar capacity in the first nine months (9M) of the calendar year (CY) 2022, an increase of 96% year-over-year (YoY).

Government Amends Green Energy Open Access Rules to Align with Regulations

The Ministry of Power (<a href="https://powermin.gov.in/" target="_blank" rel="noopener">MoP</a>) has issued the Draft Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2021. The last date for submission of feedback is September 15, 2021.
The rules are applicable for the purchase and consumption of green energy, including the energy from waste-to-energy projects. The entities covered under the rule are all consumers who have contracted demand or sanctioned load of 100 kW or more, except for captive consumption.
As per the draft rules, a uniform Renewable Purchase Obligation (RPO) would apply to all obligated entities &#8211; distribution licensees (DISCOMs), open access consumers, and captive power consumers. Whether obligated or not, any entity may choose to purchase and consume renewable energy based on their requirements through one or more avenues.
Self-Generation from Renewable Energy Sources
There is no capacity capping on &#8216;behind the meter&#8217; renewable energy power projects according to the draft rules. &#8216;Behind the meter&#8217; refers to electricity generated for self-use and not meant for injecting into the electricity grid. DISCOMs are not liable to purchase such energy.
Meanwhile, the power generating unit may be set up by the commercial and industrial (C&amp;I) consumer or by a developer. The consumer and the developer can enter into a medium or long-term power purchase agreement (PPA).
Renewable Energy Certificates can be purchased after following the applicable regulations to meet the RPOs. RPOs can also be through other sources, as prescribed by the Union Government.
Requisition from DISCOMs
The obligated entities can also procure renewable energy through open access from any developer by entering into an agreement.
The entity may decide to purchase green energy up to a certain percentage or for its entire consumption. The entity may also place a requisition with their DISCOM to procure green energy for consumption.
Similarly, green energy can be purchased against RPO on consumption from the captive power project or energy availed through open access from sources other than renewable energy sources.
The consumer may voluntarily purchase a larger share of renewable energy than obligated. For ease of implementation, this may be a minimum of 50% of consumption from green energy, which can go up to 100% through 25% increments (i.e., 50%, 75%, 100%).
The appropriate commission would determine the green energy tariff, including the average pooled power purchase cost of the renewable energy, cross-subsidy charges (if any), and service charges covering all prudent costs of the distribution licensee for providing the green energy.
Any requisition for green energy from a DISCOM would be for a minimum of one year, and the capacity of green energy would be pre-specified for at least a year.
Green energy purchased from DISCOMs would be counted towards their RPO compliance. Accounting for renewable energy supplied at DISCOMs level would be done every month.
Purchase of Green Hydrogen
The obligated entity, including industries, can meet their RPO by purchasing green hydrogen. The quantity of green hydrogen would be computed by considering the equivalence to the green hydrogen produced from 1 MWh of electricity from the renewable sources or its multiple. The Central Commission would notify the norms.
Green Energy Open Access
The appropriate commission would formulate the regulations by following the draft rules to provide &#8216;green energy open access&#8217; to consumers willing to consume the green energy. All applications for open access green energy would be approved within a maximum of 15 days.
Consumers who have contracted demand or sanctioned load of 100 kW and above can procure power through green energy open access. There is no limit on the power supply for the captive consumers buying power under green energy open access.
To avoid high variation in demand to be met by the DISCOMs, reasonable conditions are imposed &#8211; such as the minimum number of time blocks for which the consumer will not change the capacity of power consumed through open access.
Nodal Agency
The Union Government would notify the central nodal agency, which would operate a single-window green energy open access system for renewable energy. The agency would set up a &#8216;centralized registry&#8217; for all green energy open access consumers.
All the green energy open access applications would be submitted on the portal set up by the agency. The application will then get routed to the nodal agency notified by the appropriate commission for green energy open access approval.
The commission would notify the load despatch center as the nodal agency to authorize the green energy open access for a short term. Meanwhile, the state or Central Transmission Utility (CTU) would be notified as the nodal agency to approve green energy open access for the medium and long term. The commission would define the terms.
Procedure for Grant of Green Energy Open Access
The &#8216;forum of regulators&#8217; would prepare a common application format for green energy open access in 60 days, which would be adopted by the appropriate commission.
The application would be approved within 15 days, failing which it will be deemed approved subject to the fulfillment of the technical requirement specified by the appropriate commission. Short-term and medium-term open access will be allowed if there is sufficient spare capacity in the transmission system without any augmentation.
For long-term open access, the transmission system may be augmented. Priority will be given to the long-term applications in the existing system if spare capacity is available.
Further, open access for non-fossil fuel sources would be given priority over open access from fossil fuel. No application for open access would be denied without a written order after giving the applicant an opportunity of being heard.
Appeals against a nodal agency order remain with the appropriate commission.
Banking
Banking may be permitted every month on payment of charges to compensate the DISCOMs for any additional costs; the appropriate commission would determine these charges. The quantity of banked energy by the green energy open access consumers would not be more than 10% of the consumers&#8217; total annual consumption of electricity from the DISCOMs.
Cross Subsidy Surcharge
Cross subsidy surcharge will be levied on open access consumers as per the provisions of the tariff policy under the Electricity Act 2003.
The surcharge for open access consumers purchasing energy from renewable energy projects would not be increased during the 12 years from the date of commissioning of the project. The surcharge will not be increased by more than 50% of the surcharge set for the year in which open access is granted.
The additional surcharge is not applicable for green open access consumers. Cross subsidy surcharge and an additional surcharge are not applicable if the energy generated from a waste-to-energy project is supplied to the open access consumer.
Cross subsidy surcharge payable by a consumer would meet the current level of cross-subsidy within the DISCOMs supply area. The state commission would specify standby charges if required.
The DISCOM would issue green certificates every year to consumers for the green energy supplied by the DISCOM on the consumer&#8217;s request beyond its RPO.
State Commission may rate the DISCOMs&#8217; consumers based on the percentage of green energy purchased. The forum of regulators would prepare a model regulation on methodology for calculating open access charges for open access consumers in four months from the date of notification of the draft rule.
In June this year, the MoP had <a href="https://mercomindia.com/ministry-of-power-restructuring-renewable-energy-certificates/" target="_blank" rel="noopener">released</a> a discussion paper on redesigning the renewable energy certificate (REC) mechanism for stakeholder comments.
Subscribe to Mercom&#8217;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&#8217;t miss any critical updates from the renewable industry.

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