Electricity(Promoting renewable energy through Green Energy Open Access) Rules, 2021 - Draft

Electricity(Promoting renewable energy through Green Energy Open Access) Rules, 2021

No. 23/09/2021-R&R 

Government of India 

Ministry of Power 

Shram Shakti Bhawan, Rafi Marg

New Delhi, 16th August, 2021 

To

1. Secretary, MNRE, New Delhi 

2. The Chairperson, Central Electricity Authority, SewaBhavan, R.K. Puram, New Delhi 

3. The Secretary, Central Electricity Regulatory Commission (CERC), New Delh

4. Principal Secretaries/Secretaries (Power/Energy) of all State Governments/UTs 

5. Secretaries of All State Electricity Regulatory Commissions/JERCs.

6. Chairman/CM Os of all PSUs under administrative control of Ministry of Powe

7. CMD, SECI, New Delhi 

8. CMDs/MDs of Discoms/Gencos of all State Governments 

9. CMD, lEX LTD New Delhi & MD/CEO, PXIL , Mumbai 

10. DG, Association of Power Producers, New Delhi

11. President, FICCI, House No. 1,Tansen Marg New Delhi 

12. President, CII, New Delhi 

13. President, PHDCCI, New Delhi 

14. ASSOCHAM, Chanakyapuri, New Delhi 

15. Member, PRAYAS Energy Group, Pune 

16. DG, Electric Power Transmission Association (EPTA), New Delhi

17. Chairman Indian Wind Power Association, New Delhi 

18. Chairman, Indian Wind Turbine Manufacturers Association, New Delhi

19. Director General, National Solar Energy Federation of India (NSEFI), New Delhi

Sub:- Draft Electricity(Promoting renewable energy through Green Energy Open Access) Rules, 2021 - Reg 

Sir/Madam

I am directed to forward herewith the Draft Electricity (Promoting renewable energy through Green Energy Open Access) Rules, 2021, with the request to provide your comments, if any, to this Ministry within 30 days from the date of this letter i.e. by 15.09.2021. The comments may also be emailed at debranjan.chattopadhyay@nic.in

2. This issues with the approval of Competent Authority

Encl: as above 

Yours faithfully 

(Debranjan Chattopadhyay) 

Deputy Secretary to the Govt. of India 

Ph: 011-2371 5250 

Copy for information to: PS to Hon'ble Minister for Power and NRE, Sr. PPS to Secy.(P), Sr. PPS to JS(R&R, OM), Ministry of Power 

Copy to: Technical Director, NIC Cell for uploading on MOP's website under "Current Notices" with the heading of "Seeking comments onDraft Electricity(Promoting renewable energy through Green Energy Open Access) Rules, 2021"

Electricity (promoting renewable energy through Green Energy Open Access) Rules, 2021 

G.S.R. …… (E).- In exercise of the powers conferred by sub-section (1) read with clause  (z) of sub-section (2) of section 176 of the Electricity Act, 2003 (Act 36 of 2003), the  Central Government hereby makes the following rules, namely:- 

1. Short title and commencement 

(a) These rules may be called the Electricity (promoting renewable energy through Green Energy Open Access) Rules, 2021.  

(b) They shall come into force on the date of their publication in the Official Gazette. 

2. Definitions – In these rules, unless the context otherwise, requires: - (a) “Act” means the Electricity Act, 2003 (36 of 2003); 

(b) “Entity” means any consumer who have contracted demand/sanctioned load of  100 kW or more except for captive consumers. 

(c) “Green energy” means electrical energy generated from renewable sources of  energy;  

(d) The words and expressions used and not defined herein but defined in the Act  shall have the meaning assigned to them in the Act. 

3. Applicability – This rule shall be applicable for purchase and consumption of green  energy including the energy from Waste-to-Energy plant. 

4. Renewable Purchase Obligation (RPO) 

(1) There shall be uniform Renewable Purchase Obligation, on all obligated entities that is - the distribution licensees, open access consumers and captive power  consumers, from the date of notification of these Rules. 

(2) Any entity-whether obligated or not - may elect to purchase and consume  Renewable Energy as per their Requirements by one or more of the following  methods.  

(A) Own Generation from renewable energy sources: - 

There shall not be any capacity limit for installation of power plants from  Renewable Energy sources, behind the meter. “Behind the meter” means the  electricity generated for their own use and not for injection of such power into  the electricity grid. Distribution licensee shall not be liable to purchase such  energy. The Generating plant may be set up by the Entity itself or by a  Developer with which the Entity enters into a Medium/Long Term Power  Purchase Agreement.

(B) By procuring Renewable Energy through Open Access from any Developer  with which the entity enters into an agreement. 

(C) By requisition from distribution licensee:- 

(a) Any entity may elect to purchase green energy only upto a certain  percentage of the consumption or its entire consumption and they may  place a requisition for this with their Distribution Licensee, which shall  procure such quantity of green energy and supply it. 

(b) Green energy can be purchased against Renewable Purchase Obligation  on consumption from captive power plant or energy availed through open  access from sources other than Renewable Energy sources; 

(c) Consumer may purchase - on a voluntary basis - a larger quantity / share  of renewable energy than he is obligated to do. For ease of  implementation this may be a minimum 50% of consumption from green  energy, which can go upto 100% in step of 25% (i.e. 50%, 75%, 100%). 

(d) The Tariff for the Green Energy shall be determined by the Appropriate  Commission, which may comprise of the average pooled power purchase  cost of the renewable energy, cross-subsidy charges (if any) and service  charges covering all prudent cost of the distribution licensee for providing  the green energy. 

(e) Any requisition for green energy from a distribution licensee shall be for a  minimum period of one year. The quantum of green energy shall be pre specified for at least one year. 

(f) Green energy purchased from distribution licensee shall be counted  towards Renewable Purchase Obligation compliance of the distribution  licensee. 

(g) Accounting of renewable energy supplied at distribution licensee level will  be on monthly basis. 

(D) Purchase of renewable energy certificates; 

To meet the Renewable Purchase Obligation, Renewable Energy  Certificates can be purchased in accordance with the applicable regulations. 

(E) Purchase of green hydrogen;  

“Green hydrogen” is the hydrogen produced using electricity from the  renewable sources. The obligated entity including the Industries can also  meet their Renewable Purchase Obligation by purchasing green hydrogen.  The quantum of green hydrogen would be computed by considering the  equivalence to the Green hydrogen produced from one MWh of electricity  from the renewable sources or its multiple. The norms shall be notified by the  Central Commission. 

(F) Any other sources, as may be, prescribed by the Central Government.  

5. Green energy Open Access.- The Appropriate Commission shall put in place  regulations in accordance with this Rule to provide Green Energy Open Access to  consumers who are willing to consume the Green energy. All applications for open  access of Green Energy shall be granted within a maximum of 15 days.

Provided that only Consumers who have contracted demand/sanctioned load of hundred kW and above shall be eligible to take power through green energy open  access. There shall be no limit of supply of power for the captive consumers taking  power under green energy open access. 

Provided further that reasonable conditions such as the minimum number of time  blocks for which the consumer shall not change the quantum of power consumed  through open access may be imposed so as to avoid high variation in demand to  be met by the distribution licensee. 

6. Nodal Agency

(1) A Central nodal agency shall be notified by the Central Government which will  operate a single window green energy open access system for renewable energy.  The Central nodal agency shall set up a Centralised Registry for all green energy  open access consumers. All the applications related to green energy open access  shall be submitted on the portal set up by Central Nodal Agency. The application  will then get routed to the concerned nodal agency notified by the Appropriate  Commission for grant of green energy open access.  

(2) The Appropriate Commission shall notify the appropriate Load Despatch Centre as  the Nodal Agency for grant of Green energy open access for short term, to be  defined by the Appropriate Commission, and, the State or Central Transmission  Utility, as the case may be, as the Nodal Agency for grant of Green energy open  access, for medium and long term, to be defined by the Appropriate Commission. 

(3) The Nodal Agencies shall make available all relevant information regarding green  energy open access to the public on the portal of the Central nodal agency. 

7. Procedure for grant of Green Energy Open Access.

(1) The Forum of Regulators shall prepare in sixty days a common application format  for the Green energy open access which shall be adopted by the Appropriate Commission. This format shall also be used in the online portal for making  application for green energy open access.  

(2) Applications complete in all respects, as specified by the State Commission, for  green open access shall be submitted on the portal set up by Central Nodal  Agency. The application shall be approved within fifteen days failing which it will  be deemed approved subject to the fulfilment of the technical requirement  specified by Appropriate Commission. 

(3) Short term and medium term open access shall be allowed if there is sufficient  spare capacity in the transmission system without any augmentation whereas for  long term open access, the transmission system may be augmented. However,  priority shall be given to the long term in the existing system if spare capacity is  available. Further, open access for non-fossil fuel sources shall be given priority  over the open access from fossil fuel.  

(4) No application for open access shall be denied without a written order after giving  the applicant an opportunity of being heard. 

(5) Appeals against an order of the Nodal Agency, as referred to in subrule (4) shall  lie with the Appropriate Commission. 

8. Banking 

(1) Banking may be permitted on a monthly basis on payment of charges to  compensate additional costs, if any, to the distribution licensee by the Banking. The appropriate Commission shall fix the applicable charges. 

(2) The quantum of banked energy by the green open access consumers shall not be  more than ten percent of the total annual consumption of electricity from the  Distribution licensee by the consumers. 

9. Cross Subsidy Surcharge 

(a) Cross Subsidy Surcharge shall be levied on consumers who are permitted open  access as per the provisions of Tariff policy notified by the Central Government  under the Electricity Act 2003: 

Provided that the surcharge for green open access consumer purchasing green  energy, from a generating plant using renewable energy sources, shall not be  increased, during twelve years from the date of commissioning of the generating  plant using renewable energy sources, by more than fifty percent of the surcharge  fixed for the year in which open access is granted. 

Provided further that Additional surcharge shall not be applicable for green open  access consumers; 

Provided further that Cross Subsidy Surcharge and Additional Surcharge shall not  be applicable in case power produced from a Waste-to-Energy plant is supplied to  the open access consumer. 

(b) The Cross Subsidy Surcharge payable by a consumer shall be such as to meet  the current level of cross subsidy within the area of supply of the distribution  licensee. 

(c) Standby charges, if required, shall be specified by the State Commission. 

10. The distribution licensee shall give green certificate on yearly basis to the consumers  for the green energy supplied by the licensee to consumer on his request beyond the  Renewable Purchase Obligation of the consumers. 

11. The State Commission may introduce the concept of rating/labelling of the consumer of the  distribution licensee, based on the percentage of green energy purchased by such a company. 

12. In order to have a common methodology for calculation of all the open access charges,  Forum of Regulators shall prepare a model regulation on methodology for calculation  of open access charges for open access consumers in four months from the date of  notification of this Rule. 

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