“Draft Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2021” Circulated

The Ministry of Power has circulated the “Draft Electricity (promoting renewable energy through Green Energy Open Access) Rules, 2021”. They have placed them on the Ministry of Power website – https://powermin.gov.in/   and sought comments within 30 days.

These rules are proposed for purchase and consumption of green energy including the energy from Waste-to-Energy plants. The draft rules have the following subheads within which details are provided: Renewable Purchase Obligation (RPO); Green energy open access; Nodal Agencies; Procedure for grant of green energy open access; banking; and cross subsidy surcharge.

These draft rules with regard to tariff propose that “The Tariff for the Green Energy shall be determined by the Appropriate Commission, which may comprise of the average pooled power purchase cost of the renewable energy, cross-subsidy charges (if any) and service charges covering all prudent cost of the distribution licensee for providing the green energy.”

The draft rules regarding green hydrogen state “Green hydrogen” is the hydrogen produced using electricity from the renewable sources. The obligated entity including the Industries can also meet their Renewable Purchase Obligation by purchasing green hydrogen. The quantum of green hydrogen would be computed by considering the equivalence to the Green hydrogen produced from one MWh of electricity from the renewable sources or its multiple. The norms shall be notified by the Central Commission.

These draft rules also propose guidelines for green energy open access and state that “The Appropriate Commission shall put in place regulations in accordance with this Rule to provide Green Energy Open Access to consumers who are willing to consume the Green energy. All applications for open access of Green Energy shall be granted within a maximum of 15 days. Provided that only Consumers who have contracted demand/sanctioned load of hundred kW and above shall be eligible to take power through green energy open access. There shall be no limit of supply of power for the captive consumers taking power under green energy open access. Provided further that reasonable conditions such as the minimum number of time blocks for which the consumer shall not change the quantum of power consumed through open access may be imposed so as to avoid high variation in demand to be met by the distribution licensee.”