New Regulations For Green Energy Open Access In Tamil Nadu: Streamlining Renewable Energy Integration

Posted On - 5 July, 2024 • By - King Stubb & Kasiva

Introduction

The Tamil Nadu Electricity Regulatory Commission (TNERC) is set to revolutionize the renewable energy landscape with its draft Tamil Nadu Electricity Regulatory Commission (Terms and Conditions for Green Energy Open Access) Regulations, 2024.[1] These regulations are poised to streamline the integration of green energy sources into the state’s power grid, fostering a more sustainable and environmentally friendly energy ecosystem. By providing a comprehensive framework for Green Energy Open Access (GEOA), the TNERC aims to promote the use of renewable energy and reduce reliance on fossil fuels.

Explanation

  • Objective and Definitions: The primary objective of these regulations is to establish a non-discriminatory open access framework for renewable energy sources. This framework will encompass both intra-state and inter-state transmission systems, including those incidental to inter-state electricity transmission. The regulations define key terms like “Green Energy,” encompassing various renewable sources such as wind, solar, hydro, and waste-to-energy plants. Additionally, it defines “Green Energy Open Access Consumer,” referring to entities eligible to participate in the open access system.
  • Scope and Applicability: The regulations explicitly outline their scope, covering open access for electricity generated from green energy sources. This includes energy derived from non-fossil fuel-based waste-to-energy plants. The regulations apply to the utilization of intra-state transmission systems (InSTS) or distribution systems, or both, when incidental to inter-state transmission of electricity.
  • Nodal Agencies and Application Procedure: To facilitate the GEOA process, the regulations designate the Central Nodal Agency (CNA) and State Nodal Agency (SNA) as pivotal entities. All GEOA applications are to be submitted through the CNA’s online portal, which then routes them to the SNA. The SNA, in turn, coordinates with transmission and distribution licensees to ensure the availability of relevant information to the public.
  • Eligibility Criteria and Allotment Priority: The regulations stipulate that both consumers and licensees, along with generating companies, are eligible for GEOA, subject to system availability and compliance with the regulations. Notably, open access is granted to all EHT (Extra High Tension) and HT (High Tension) consumers with a minimum contracted demand of 63 kVA and above. The regulations also prioritize distribution licensees in the allotment of GEOA, followed by GEOA consumers over normal open access consumers.
  • Energy Accounting, Billing, and Charges: A crucial aspect of the regulations is the detailed framework for energy accounting and billing. Energy accounting is conducted in 15-minute time blocks, and surplus energy is considered “banked” for future use. The regulations outline charges for GEOA consumers, including transmission charges, wheeling charges, cross-subsidy surcharges, additional surcharges, banking charges, standby charges, reactive energy charges, and other fees.
  • Banking Provisions: The regulations introduce banking provisions, allowing GEOA consumers to bank surplus green energy with the distribution licensee. This banked energy can be utilized later, subject to specific terms and conditions. Banking charges are adjusted in kind, calculated as a percentage of the banked energy.
  • Curtailment Priority and Metering: In situations necessitating curtailment of renewable energy generation, the regulations establish a clear priority order. Short-term open access consumers are curtailed first, followed by medium-term and then long-term consumers. Within each category, GEOA consumers are treated equally. The regulations also mandate the installation of meters at both the generator and consumer ends, adhering to the Central Electricity Authority’s regulations.
  • Additional Provisions: The regulations encompass various other provisions, including the treatment of existing entities, dispute resolution mechanisms, the Commission’s power to issue directions and make amendments, and saving clauses to ensure a smooth transition from previous regulations.

Conclusion

The draft Tamil Nadu Electricity Regulatory Commission (Terms and Conditions for Green Energy Open Access) Regulations, 2024, signify a significant stride towards a more sustainable energy future for Tamil Nadu. By establishing a transparent and non-discriminatory framework for Green Energy Open Access, these regulations are expected to incentivize the adoption of renewable energy sources. The comprehensive approach, covering aspects from definitions and scope to energy accounting and curtailment, demonstrates a commitment to creating a conducive environment for green energy growth. These regulations are poised to play a pivotal role in achieving Tamil Nadu’s renewable energy targets and contributing to India’s broader clean energy aspirations.

[1] http://www.tnerc.gov.in/PressRelease/files/PR-130620240316Eng.pdf