DERC proposes GEOA amendment to expand green energy access in Delhi

Introduction

The Delhi Electricity Regulatory Commission (“DERC”) has proposed amendments to the Delhi Electricity Regulatory Commission (Green Energy Open Access) Regulations, 2024 (“2024 Regulations”) that, while narrow in drafting, could significantly expand access to green energy procurement in the National Capital Territory of Delhi.

The proposed amendment primarily seeks to remove the requirement that an eligible consumer must be connected at a voltage level of 11 kV or above in order to avail Green Energy Open Access (“GEOA”). If implemented, this change would broaden the scope of eligible consumers beyond those currently permitted under the existing regulatory framework.

The Regulatory Issue Addressed by the Amendment

Under the 2024 Regulations, consumers seeking access to GEOA were required to satisfy two eligibility conditions:

• a minimum contracted demand or sanctioned load of 100 kW; and
• connection at a voltage level of 11 kV or above.

The minimum load threshold was broadly consistent with the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022 (“GEOA Rules, 2022”) issued by the Central Government.

However, the voltage-level requirement was an additional condition introduced under the Delhi framework and was not expressly contemplated under the central rules. In practice, this requirement excluded a substantial category of consumers who otherwise satisfied the load threshold prescribed under the GEOA Rules, 2022.

Consumers operating through Low Tension (“LT”) connections generally below 1 kV were effectively excluded from participating in GEOA arrangements irrespective of their sanctioned load. This particularly affected:

• micro, small and medium enterprises (“MSMEs”);
• telecom infrastructure operators; and
• commercial establishments operating across multiple premises.

For many such consumers, LT connections are commercially and operationally standard despite having substantial aggregate electricity demand. As a result, the existing framework created a regulatory inconsistency between the central rules and the Delhi-specific implementation regime.

Key Changes Proposed by the Amendment

The proposed amendment seeks to address this inconsistency through a focused revision to the eligibility provisions under the 2024 Regulations.

1. Removal of the 11 kV Connectivity Requirement

The amendment proposes deletion of the phrase “connected at 11 kV or above” from the relevant definitions and eligibility provisions.

Consequently, the sole qualifying criterion for GEOA eligibility would become a contracted demand or sanctioned load of 100 kW or more. No voltage-level condition would apply.

This change would enable LT consumers meeting the load threshold to participate in GEOA arrangements subject to applicable technical and regulatory requirements.

2. Aggregation of Multiple Connections

The proposed framework also clarifies that consumers operating across multiple premises within the area of the same distribution licensee may aggregate their electricity connections in order to meet the 100 kW threshold collectively.

This clarification is particularly relevant for:

• retail chains;
• telecom tower operators;
• warehousing operators; and
• commercial enterprises with distributed operational footprints.

The aggregation mechanism may substantially improve access to renewable energy procurement for consumers whose individual connections fall below the threshold but whose combined demand exceeds it.

3. Captive Consumption Projects

The amendment further reiterates that consumers establishing captive green energy projects for self-consumption are not subject to any minimum load requirement.

This position remains consistent with the broader regulatory framework governing captive generation and open access arrangements under Indian electricity law.

Regulatory Alignment with Other States

In support of the proposed amendment, DERC has reportedly considered the experience of states such as Gujarat and Maharashtra, both of which have aligned their state-level green energy open access frameworks more closely with the central GEOA Rules, 2022.

These states have permitted participation by LT consumers while addressing operational and technical concerns through existing metering and settlement arrangements. Delhi’s proposed amendment appears intended to bring the local regulatory framework into closer conformity with these evolving practices.

Scope and Limitations of the Amendment

Importantly, the amendment is limited in scope and largely prospective in nature. The proposed changes do not alter:

• existing GEOA approvals;
• applicable tariffs;
• banking arrangements;
• cross-subsidy surcharge mechanisms;
• wheeling charges; or
• technical feasibility requirements.

The amendment primarily expands the pool of eligible consumers without modifying the broader commercial or operational structure governing open access transactions.

Legal and Practical Implications

From a legal and policy perspective, the amendment represents a significant rationalisation of Delhi’s GEOA framework by removing a technical eligibility restriction not expressly mandated under the central rules.

The principal beneficiaries are likely to include:

• MSMEs;
• distributed commercial consumers;
• telecom operators; and
• other LT consumers with substantial aggregate electricity demand.

The amendment may also support broader renewable energy adoption by enabling decentralised and medium-scale commercial consumers to directly procure green power through open access mechanisms.

However, the effectiveness of the revised framework will depend significantly on implementation by distribution licensees, particularly in relation to:

• metering infrastructure;
• energy accounting systems;
• load aggregation mechanisms; and
• operational integration of LT consumers into the open access ecosystem.

These issues assume additional importance given that updated metering regulations from the Central Electricity Authority (“CEA”) are reportedly still awaited.

Conclusion

The proposed amendment by Delhi Electricity Regulatory Commission represents a targeted but important regulatory correction. By removing a voltage-level restriction that was not required under the central GEOA framework, the amendment has the potential to significantly expand access to green energy procurement in Delhi.

The proposed changes are particularly relevant for MSMEs, telecom operators, and distributed commercial consumers operating on LT connections categories of consumers that the green open access framework was, in many respects, intended to support.

While the amendment broadens eligibility, its long-term effectiveness will depend on practical implementation, especially regarding metering, settlement, and operational integration by distribution licensees. These implementation developments will merit close attention once the amendment is formally notified in the Official Gazette.