How the government push to green energy notification can boost the RE sector

The government of India recently notified the green energy open access. So far the open access by Discoms was allowed only to the consumers who are 1 MW or above capacity, which has reduced 10 100 kW capacity to enable larger sections of C&I consumers to opt for the benefits of open access of renewables. Many commercial buildings are now eligible to get solar and wind power through open access even if their contact demand is less than 1 MW. some of the buildings wanted to achieve their net-zero targets on a voluntary basis, they can now buy the green power from Discom on a Voluntary basis. The consumers will be provided green certificates if they consume the green power.

Discoms generally charge about Rs. 2-4/kWh as cross-subsidy charge, additional surcharge, and standby charges. There is a cap now by MoP on these charges and there is no additional surcharge on the green power open access. There is going to be more transparency on these open access charges by the Discoms. Even though the approval process has been highly cumbersome, it has now been made simple, and the Discom has to grant open access within 15 days period, other it will be deemed as open access approval.

There have been hindrances on the banking of green power by the Discoms, it has now been mandated that Discoms will provide the banking of green power. In order to boost the green hydrogen, the GOI has provided additional benefits in terms of removing the open access charges if the green energy is used to generate hydrogen.

There has been a significant decline in the open-access capacity additions of solar and wind power due to the Discoms hindrances on availing the open access and slapping multiple charges and making it commercially unattractive. The introduction of green open access notification will streamline the Discoms on making the open access facilitation simple.