Green open access policy 2022
In June 2022, the Ministry of Power in India published the Green Open Access (OA) Policy, also known as the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022. This policy aims to create a standardized framework for OA development in India and has received a positive response from all renewable energy (RE) stakeholders. Let’s take a closer look at the five key features of this policy.
- Mandatory Banking for C&I Consumers The Green OA Policy provides mandatory banking for Commercial and Industrial (C&I) consumers availing of renewable energy power under OA arrangements. This means that any excess power generated by the C&I consumer can be sold to the grid and banked for future use. The policy mandates a minimum settlement period of one month for this banking arrangement.
- Clarity on OA Charges One major component of OA charges is the additional surcharge (AS), which has been a source of confusion for consumers. The Green OA Policy provides clarity on OA charges by quashing the AS component. This will help consumers understand the charges better and promote greater transparency.
- Eligibility Limit Reduced The eligibility limit for availing of OA has been reduced from 1 MW to 100 kW. This will help smaller businesses and industries to take advantage of the OA policy and promote the use of renewable energy in the country.
- Fixed Approval Window The policy sets a fixed approval window of 15 days to clear OA applications. This will help in expediting the approval process and reduce delays, providing a more streamlined and efficient process for consumers.
- Positive Response from RE Stakeholders The Green OA Policy has been receiving a strong positive response from all RE stakeholders. The long-term clarity provided by the policy is considered welcoming, and it is expected to promote the use of renewable energy in the country.
However, the actual implementation of the policy is still awaiting a response from state regulators. It is essential for the state regulators to ensure the proper implementation of the policy to promote renewable energy and achieve the goal of a cleaner and sustainable future.
The Green OA Policy provides a standardized framework for OA development in India and aims to promote the use of renewable energy. The five key features of the policy – mandatory banking for C&I consumers, clarity on OA charges, reduced eligibility limit, fixed approval window, and positive response from RE stakeholders – provide a more streamlined and efficient process for consumers. However, the actual implementation of the policy will depend on the response of state regulators. If implemented correctly, this policy can go a long way in promoting a cleaner and more sustainable future for India.