Consumers with a contracted or sanctioned load of 100 kW and above, including those combining multiple connections to reach 100 kW within the same electricity division of a power distribution company (DISCOM), can procure power through green energy open access (GEOA), according to Telangana State Electricity Regulatory Commission (Terms and Conditions of Open Access), Regulation, 2024.

The regulations align with the green energy open access regulations issued by the Ministry of Power last June.

Categorization of Green Energy Open Access

GEOA consumers are categorized based on how long they use the intra-state transmission or distribution system, both within the same distribution system and within the state but in different distribution systems or different states.

Long-term open access refers to the permission to utilize the state’s transmission and distribution system for more than seven years but not exceeding 25 years.

Medium-term refers to the permission to utilize the state’s transmission and distribution system for over a month but not more than seven years.

Short-term refers to the permission to utilize the state’s transmission and distribution system for less than one month.

Procedure for grant of access

GEOA applicants must submit a complete application using the central portal. The application is forwarded to the State Nodal Agency (SNA) by the Central Nodal Agency for verification.

Captive consumers must submit a security deposit by April 30 each year in the form of an unconditional and irrevocable bank guarantee. This deposit should be equivalent to 51% of their captive consumption for one year. It serves as a payment security mechanism for estimated charges like cross subsidy surcharge, additional surcharge, and any other charges as decided by the Commission.

The application fee is ₹5,000 (~$60) for long-term and medium-term transactions and ₹1,000 (~$12) for short-term transactions.

Those seeking long-term transactions must commission their projects or units within 12 months from the agreement date to prevent corridor blocking.

Applications for medium-term and short-term GEOA for power projects or generating units that have not yet been commissioned must be submitted no earlier than two months before the expected commissioning date to avoid unnecessary blocking of transmission or distribution corridors.

Applicants for long-term and medium-term transactions must accompany their application with a ₹5,000 (~$60)/ MW bank guarantee, which is returned upon signing the wheeling agreement but encashed if the application is withdrawn before this.

If there is a significant change in the injection point location or power quantity (more than 10%), a new application must be submitted for the entire capacity. Relevant documents, fees, and a bank guarantee for additional capacity are required for long-term access. The applicant retains access to their original allotment if the network cannot accommodate the extra capacity.

If an application is rejected due to deficiencies, any fees and guarantees submitted are returned, and the applicant may reapply after addressing the issues. Until GEOA is granted, applicants cannot inject energy into the licensee’s network.

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

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

Procedure for Applying for Day Ahead Transactions

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

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

The applicant must pay a non-refundable processing fee of ₹1,000 (~$12) for each transaction. However, the open access will only be implemented if the applicant pays the specified charges outlined in these regulations and orders issued by the Commission before 5:00 PM on the day before scheduling for day-ahead transactions.

Consumption criteria

For units marked for captive use, their consumption is checked based on the net electricity generated by the power station. This means the total electricity produced minus any extra electricity used for auxiliary purposes.

The net electricity generated will be determined annually at the end of the year.

Verification criteria for various types of captive consumers will be as follows:

• The electricity used for self-consumption should be at least 51% of the net electricity generated annually for single captive consumers, partnerships, and limited liability partnerships.
• For associations of persons, the electricity consumed for captive use should be at least 51% of the net electricity generated annually. Each member’s share should match their ownership in the power project, with a permissible variation of 10%.
• Members of a cooperative society must collectively consume not less than 51% of the net electricity generated annually.
• Special purpose vehicles must consume not less than 51% of the net electricity generated annually.

Shareholding criteria

A single captive consumer must hold at least 26% of the equity share capital with voting rights throughout the year. A certificate from the company secretary is required to support the shareholding.

For partnership firms or limited liability partnerships, the partners’ ownership in the captive project should be not less than 26% proprietary interest and control over the generating station or power project annually. They must have a certificate from the company secretary to support their shareholding.

In the case of associations of persons, the captive consumer should hold an aggregate of not less than 26% of the ownership or paid-up equity share capital with voting rights throughout the year. They must have a certificate from a registered chartered accountant to support their shareholding.

Members of cooperative societies should hold 26% of the ownership annually. They must have a certificate from the district registrar of the cooperative society to support their shareholding.

In the case of special purpose vehicles, the captive consumer must hold an aggregate of not less than 26% of the proportionate paid-up equity share capital with voting rights of the units identified for captive use. They must have a certificate from a registered chartered accountant to support their shareholding.

Solar and wind-based or mini-hydel open access generators of contracted capacity up to 5 MW shall not be required to provide a day-ahead wheeling schedule, and the actual electricity injected by them will be deemed to be the scheduled energy.

Open Access Charges

Charges

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

• Transmission Charges
• Wheeling Charges
• Cross-subsidy Charges (If a user purchases green energy from a renewable energy-based generating plant, the charges won’t increase by more than 50% for twelve years from the plant’s operation start date. This cross-subsidy charges limit remains even if the user switches to different green energy sources during this period. If power is drawn from non-green open access sources within twelve years, the 50% cross-subsidy charges increase limit will not apply. Cross-subsidy charges don’t apply to power from Waste-to-Energy plants or when green energy is used for green hydrogen and ammonia production. Captive users supplying electricity from their own generating plants for self-use are exempt from cross-subsidy charges)
• Additional Surcharges (Additional Surcharges will not apply to GEOA consumers if they pay fixed or demand charges. Additional Surcharges won’t apply if power comes from a Waste-to-Energy plant or if green energy is used for green hydrogen and ammonia production. AS also does not apply to electricity from offshore wind projects commissioned up to December 2032 for GEOA consumers. Additionally, Additional Surcharges don’t apply to open access consumers using their own captive power projects for power wheeling.
• Scheduling and State Load Dispatch Center charges
• Deviation and Reactive charges
• Standby Charges (if applicable)

Banking

Energy banking up to 30% of the total monthly consumption of electricity from DISCOM will be allowed.

The banking charges will be 8% of the energy banked by GEOA consumers with the DISCOM.

The banking period for energy will be one month, and any unused energy at the end of the month will expire. However, the GEOA consumer will receive renewable energy certificates for the unused energy. Energy credits will be adjusted based on the time slots designated by the Commission for tariff determination.

Energy banked during peak time slots can be used during both peak and off-peak times by paying banking charges, while energy banked during off-peak times can only be used during off-peak times.

If transmission and wheeling charges or losses were already applied when the energy was injected into the system, they will not be applied again when the energy is withdrawn.

Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.