Introduction of Green Energy Open Access Charges Regulations 2024 by JERC for Manipur and Mizoram

Introduction

The Joint Electricity Regulatory Commission for Manipur and Mizoram (JERC) has recently introduced regulations aimed at determining Green Energy Open Access Charges.[1] These regulations, effective from April 9, 2024, are pivotal in promoting the utilization of renewable energy sources in the states of Manipur and Mizoram. The regulations outline a comprehensive methodology for determining charges applicable to consumers opting for green energy open access, thereby facilitating the transition towards a more sustainable energy landscape.

Explanation (key points)

• Objective: The primary objective of these regulations is to provide a structured methodology for determining open access charges and banking charges for consumers opting for green energy open access. By establishing clear guidelines, the regulations aim to encourage the uptake of renewable energy sources, thereby reducing dependency on fossil fuels and promoting environmental sustainability.
• Scope: The regulations apply to the utilization of electricity generated from renewable sources, including hydro and storage, for intra-state transmission or distribution. This encompasses energy from non-fossil fuel-based Waste-to-Energy plants, further broadening the scope of renewable energy adoption.
• Charges for Green Energy Open Access: The regulations outline various charges applicable to green energy open access consumers, including transmission charges, wheeling charges, cross-subsidy surcharge, standby charges, banking charges, and other fees and charges such as SLDC fees and scheduling charges.
• Transmission Charges: Transmission charges are determined based on the type of open access (long-term, medium-term, or short-term) and are calculated either as a monthly charge per kW or a daily charge per MW, depending on the duration of access.

• Wheeling Charges: Wheeling charges, applicable to the transportation of electricity through distribution networks, are computed based on the energy wheeled during the year and approved Wheeling ARR. Separate charges may apply for high-tension (HT) and low-tension (LT) networks where applicable.
• Cross Subsidy Surcharge: Consumers availing green energy open access may be subject to cross subsidy surcharge if they were cross-subsidizing consumers of a distribution licensee. The surcharge is determined based on a specified formula and is payable monthly based on actual energy consumption.
• Standby Facility and Charges: Standby arrangement is provided to consumers in case of outages, with standby charges applicable if prior notice is not given. These charges are 125% of the normal tariff of the consumer category and are levied on the actual energy drawn during standby.
• Banking Facility and Charges: Consumers can bank surplus energy with the distribution licensee, subject to scheduling. Banking charges are adjusted at 8% of the banked energy and are applicable on a monthly basis.

Conclusion

The introduction of these regulations by the JERC signifies a significant step towards promoting renewable energy adoption in Manipur and Mizoram. By providing a clear framework for determining charges related to green energy open access, the regulations facilitate the transition towards a more sustainable and environmentally friendly energy ecosystem. It is anticipated that these regulations will not only incentivize consumers to opt for renewable energy but also contribute to the overall reduction of carbon emissions and dependence on conventional fossil fuels.

[1] https://jerc.mizoram.gov.in/uploads/attachments/2024/04/5df8a7602d5fdea879a6dafd70e50d47/methodology-for-determination-of-green-energy-open-access-charges-regulations-2024.pdf