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Gujarat Reduces Green Energy Open Access Banking Charge to INR 1/kWh

GERC has reduced the green energy open access banking charge from INR 1.50/kWh to INR 1/kWh for the period from September 1, 2026 to March 31, 2027, under the sixth amendment to the green energy open access regulations. From April 1, 2027, the banking charge will be determined annually based on the actual financial impact on Discoms.

August 27, 2026. By Mrinmoy Dey

The Gujarat Electricity Regulatory Commission (GERC) has reduced the banking charge for green energy open access consumers from INR 1.50/kWh to INR 1/kWh under the sixth amendment of green energy open access regulations.

While the INR 1/kWh charge will remain applicable from September 1, 2026 till March 31, 2027, banking charges for each financial year beginning April 1, 2027, will be determined in accordance with the amended regulations using data from the immediately preceding calendar year or another period specified by the Commission, mentioned the GERC notification.

Under the new methodology, banking charges will be calculated by assessing the distribution licensee's aggregate net revenue impact against the total banked energy during each monthly billing cycle. The calculation will use actual 15-minute block data on renewable energy injection and consumer consumption, along with market prices, variable generation costs, transmission charges and applicable transmission and distribution losses. The banking period will remain one calendar month, with banked energy credits not carried forward to the next billing cycle.

For each 15-minute interval, the framework will compare renewable energy injected into the grid, after adjustment for distribution losses, with the consumer's actual consumption. Where adjusted renewable injection is higher, the difference will constitute net surplus energy, while consumption exceeding adjusted injection will be treated as net drawal. The surplus and deficit will subsequently be assessed according to whether the period is peak or off-peak and based on the prevailing economics of power exchange transactions, thermal generation and battery storage.

For surplus renewable energy, GERC has provided for its potential sale on the Indian Energy Exchange (IEX), utilisation by the distribution licensee's own consumers through backing down of marginal thermal generation, or charging of BESS during off-peak periods. The treatment will depend on whether the IEX Market Clearing Price is higher or lower than the variable cost of marginal thermal generating stations plus applicable inter-state transmission charges. Where exchange prices are attractive, a defined share of surplus can be sold on IEX; during off-peak periods, a portion can also be allocated to BESS charging.

The methodology also provides for deficit energy when green energy open access consumers draw more power than their adjusted renewable injection. Depending on the relationship between the IEX price, transmission charges and the variable cost of marginal thermal generation, the deficit may be met through the distribution licensee's own generation, power exchange procurement or BESS discharge. During peak periods, BESS can be used to meet a defined share of the deficit, while the balance may be supplied through thermal generation or exchange procurement depending on prevailing market economics.

GERC has retained the existing 30 percent banking limit, under which cumulative peak and off-peak banked energy at any point cannot exceed 30 percent of the consumer's total monthly energy consumption from the distribution licensee during the billing cycle. Energy banked during off-peak periods cannot be used during peak periods, although energy banked during peak periods can be used in both peak and off-peak periods. Any banked energy remaining at the end of the monthly banking period, as well as surplus injected beyond the permitted banking threshold, will be treated as lapsed.

To provide greater certainty to open access consumers and distribution licensees, the Commission may consider limiting future variations in banking charges to a floor of INR 0.50/kWh and a ceiling of INR 1.50/kWh.

BESS has been incorporated as an explicit component of the future banking charge calculation. The BESS charge will be based on the average landed cost of energy derived from BESS bids without the viability gap funding component during the preceding year or another period specified by GERC.

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