Himachal Pradesh Introduces Draft Green Energy Open Access And Banking Regulations 2024
Introduction
The Himachal Pradesh Electricity Regulatory Commission (HPERC) has unveiled the draft regulations titled “Terms and Conditions for Green Energy Open Access and Banking Regulations, 2024,” designed to promote and regulate green energy initiatives within the state.[1] These rules are applicable throughout Himachal Pradesh and aim to facilitate the connection and access to electricity generated from renewable sources, including non-fossil waste-to-energy plants, through the state’s transmission and distribution systems. The draft regulations are a significant step toward advancing the use of green energy in the region and encouraging sustainable energy practices.
Explanation (Key Points)
The draft regulations focus on several critical areas of green energy access, connectivity, banking, and consumer rights:
- Eligibility and Connectivity Requirements: Entities looking for long-term, medium-term, or short-term open access to green energy must first ensure they are connected to the intra-state transmission or distribution system. Applicants can simultaneously apply for connectivity and open access. The new draft guidelines refer to existing HPERC regulations on connectivity, open access, tariff determination, and renewable power purchase obligations in areas not explicitly addressed.
- Restrictions Based on Existing Agreements: The draft regulations outline that entities with existing Power Purchase Agreements (PPAs) with distribution licensees cannot utilize the green energy open access for the capacities already covered under these agreements unless specified otherwise. Open access will only be available to them for additional capacity after paying the charges determined by the Commission.
- Captive Generators and Consumer Options: Captive generators, those producing electricity for their consumption, are entitled to green energy open access if they meet specific criteria, including having a contracted demand of 100 kW or more. These generators can either establish their plants or collaborate with developers through PPAs. Consumers can also choose to procure green energy for a portion of their energy needs or their entire consumption, with the option to request separate allocations for solar and non-solar energy. However, such requests must be made for a minimum duration of one year.
- Renewable Purchase Obligation (RPO) Compliance: Green energy consumed beyond the mandatory Renewable Purchase Obligation (RPO) of distribution licensees can still be counted towards fulfilling their RPO compliance requirements. This provision allows existing consumers and generators to continue using green energy under existing agreements or government policies, while any additional green energy capacity requested will be processed as a new application.
- Transmission and Distribution Capacity: Long-term and medium-term green energy open access will depend on the availability of transmission and distribution capacity. For short-term access, existing margins and spare capacities will be utilized. Within 30 days of these regulations’ implementation, the State Nodal Agencies will develop procedures, including application formats and charges, for granting connectivity and open access.
- Application Process and Approval: Entities seeking open access to green energy must first register on the GOAR portal. After registration, applications can be submitted through the central web-based GOAR portal. The State Nodal Agency is required to process and approve these applications within 15 days, on a first-come, first-served basis. Consumers must maintain consistent power consumption patterns.
- Communication and Metering: Green energy open access consumers must have a communication system in place for data exchange with the State Nodal Agency, and their metering must comply with relevant regulations, supporting real-time data communication.
- Dedicated Transmission/Distribution Systems and Charges: Charges for dedicated transmission or distribution systems required for green energy open access will be determined by licensees and approved by the Commission. Consumers using such dedicated systems will be responsible for the associated costs until the capacity is used by other entities. Cross-subsidy and additional surcharges will apply, except for non-fossil fuel-based waste-to-energy plants, green hydrogen, and ammonia production.
- Standby Power Arrangements: In the event of outages preventing green energy open access consumers from receiving power, the distribution licensee will provide standby power at reflective costs. Consumers must provide advance notice for standby arrangements to avoid being charged more than 125% of the normal tariff.
- Banking of Green Energy: Banking facilities for surplus green energy will be available on a monthly basis. Consumers can bank and draw surplus energy within the same cycle, with specific rules governing peak and off-peak slots. Unused surplus energy will be considered lapsed, though renewable energy certificates may be issued for such energy.
- Dispute Resolution and Regulatory Adjustments: Applications for green energy open access cannot be denied without a hearing opportunity. Disputes will be resolved either by the State Nodal Agency or the Commission. The Commission also reserves the right to make necessary adjustments to these regulations and address any challenges in their implementation.
Conclusion
The introduction of the draft Green Energy Open Access and Banking Regulations, 2024, by the HPERC is a forward-thinking move towards bolstering renewable energy adoption in Himachal Pradesh. These regulations are set to enhance the state’s capacity for green energy generation and consumption while providing clear guidelines for connectivity, access, and banking of surplus energy. By outlining provisions for different types of consumers, including captive generators and those with existing PPAs, the state is paving the way for a more sustainable energy future, ensuring that green energy becomes a cornerstone of the region’s energy strategy.
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