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India notifies Green Open Access Rules, 2022, to promote green energy

08 Jun '22
2 min read
Pic: Shutterstock
Pic: Shutterstock

The Indian ministry of power recently notified the Green Open Access Rules, 2022, to promote generation, purchase and consumption of green energy, including that from waste-to-energy plants. The rules enable simplified procedure for and faster approval of open access to green power, uniform banking, and voluntary purchase of renewable energy by commercial and industrial consumers.

Captive consumers can take power under Green Open Access with no minimum limitation. Discom consumers can demand for supply of green power to them.

Green Open Access is allowed to any consumer and the limit of open access transaction has been reduced from 1 MW to 100 kW for green energy, to enable small consumers to purchase renewable power through open access.

The rules will offer certainty on open access charges to be levied on green energy open access consumers. This includes transmission charges, wheeling charges, cross-subsidy surcharge and standby charges, an official release said.

The cap on increasing of cross-subsidy surcharge as well as the removal of additional surcharge not only incentivise consumers to go green, but also address issues that have hindered the growth of open access in India.

Approval, to be carried out through a national portal, will be granted in 15 days or else it will be deemed to have been approved subject to fulfilment of technical requirements.

The tariff for green energy shall be determined separately by the appropriate commission, which shall comprise of the average pooled power purchase cost of renewable energy, cross-subsidy charges, if any, and service charges covering the prudent cost of the distribution licensee for providing the green energy to the consumers.

The rules will help streamline the overall approval process for granting open access to improve predictability of cash flows for renewable power producers. It will also bring uniformity in the application procedure.

There shall be a uniform renewable purchase obligation on all obligated entities in area of a distribution licensees. It has also included green hydrogen and green ammonia for fulfilment of its recovery point objective.

Consumers will be given the green certificates if they consume green power. Cross subsidy surcharge and additional surcharge shall not be applicable if green energy is utilised for production of green hydrogen and green ammonia.

Fibre2Fashion News Desk (DS)

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