HERC Amends Green Energy Open Access Rules 2025 To Boost Renewable Adoption In Haryana

Introduction

The Haryana Electricity Regulatory Commission (HERC) has moved in a reform direction to push the adoption of renewable energy in the state by amending the Green Energy Open Access (GEOA) Regulations, 2023.^[1] The initial amendment, which came into effect from 25th February 2025, brings the regulations into line with the central government’s Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022, and its further amendments. The new rules seek to make it easier for consumers to get access to green energy, promote captive generation, and eliminate ambiguities that have held back the development of renewable energy in Haryana. The step is likely to give a boost to the state’s shift towards cleaner sources of energy and assist it in achieving its renewable energy goals.

Explanation (Key Points)

1. Eligibility Criteria for Green Energy Open Access:
   • The amendment modifies the eligibility criteria for consumers to avail green energy open access. Consumers with a contracted demand or sanctioned load of 100 kW or more, either through a single connection or multiple connections aggregating 100 kW or more within the same electricity division of a distribution licensee, are now eligible.
   • The term “consumers” has been replaced with “consumer” to bring clarity, and the phrase “electricity division” has been replaced with “electricity operation division” to avoid confusion with other types of divisions within distribution companies (DISCOMs).
2. No Capacity Restrictions for Captive Consumers:
   • The amendment clarifies that there will be no capacity restrictions for captive consumers setting up renewable energy (RE) power plants. This means that captive consumers can install RE plants of any capacity, provided their total drawl from open access and the distribution licensee does not exceed their sanctioned contract demand.
   • This provision is in line with the Electricity Act, 2003, which promotes the delicensing of generation activities and encourages the growth of renewable energy without imposing unnecessary restrictions.
3. Extension of Surcharge Exemption for Offshore Wind Projects:
   • The amendment extends the exemption of additional surcharges for electricity produced from offshore wind projects commissioned up to December 2032. This move is expected to incentivize investments in offshore wind energy projects and support the growth of this sector in Haryana.
4. Clarification on Deviation Settlement Mechanism (DSM) Charges:
   • The amendment addresses the ambiguity surrounding DSM charges for long-term open access consumers of renewable energy. It clarifies that DSM charges (imbalance charges) will not apply to long-term open access transactions for solar and wind energy. Instead, any over-drawl due to unforeseen circumstances should be classified as standby charges, capped at 25% of the energy charges applicable to the consumer category.
   • This clarification is crucial for green energy open access consumers, as it prevents double jeopardy where consumers are penalized for over-drawl caused by under-injection from their captive RE plants.
5. Banking of Energy:
   • The amendment allows for the banking of energy generated from captive RE plants. Consumers can draw banked energy within the same time-of-day (ToD) or lower ToD at a charge of 8%. However, drawing banked energy in a higher ToD will incur an additional 2% charge.
   • This provision provides flexibility to consumers in managing their energy consumption and encourages the use of renewable energy during peak demand periods.
6. Streamlining Approval Processes:
   • The amendment emphasizes the need for timely approvals and clear documentation for green energy open access applications. It directs DISCOMs to adhere to stipulated timelines for granting approvals, failing which the application will be deemed approved.
   • This move is expected to reduce delays in project implementation and improve the overall efficiency of the green energy open access process.

Conclusion

The HERC’s amendment to the Green Energy Open Access Regulations, 2025, is a landmark step in Haryana’s renewable energy journey. Simplifying eligibility conditions, eliminating capacity limits for captive consumers, and making DSM charges clearer, the amendment overcomes major hurdles to the adoption of renewable energy. The extension of surcharge waivers for offshore wind projects and enabling energy banking encourage investments in clean energy even more. Such revisions are anticipated to enhance the renewable energy capacity of the state, lower carbon emissions, and aid India’s larger climate objectives. As Haryana increasingly incorporates green energy, the revised rules will be instrumental in creating a sustainable energy future for the state.

^[1] https://herc.gov.in/WriteReadData/Orders/O2025025.pdf