Himachal Pradesh Proposes New Green Energy Open Access Regulations

The Himachal Pradesh Electricity Regulatory Commission (HPERC) has unveiled draft regulations aimed at advancing renewable energy within the state. The proposed regulations, titled 'Himachal Pradesh Electricity Regulatory Commission (Terms and Conditions for Green Energy Open Access and Banking) Regulations, 2024,' outline a framework designed to facilitate Green Energy Open Access (GEOA) and enhance the integration of green energy.

This proposal aligns with India's ambitious goal of carbon neutrality by 2070 and the target of installing 500 GW of renewable energy capacity by 2030. It may be noted that these objectives are supported by the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022, introduced by the Ministry of Power to provide regulatory clarity and streamline the process for granting Green Energy Open Access to various stakeholders.

To this end, HPERC's draft regulations are a step towards encouraging renewable energy investments and growth within Himachal Pradesh. The proposed regulations cover several critical aspects, including eligibility criteria for different types of Green Energy Open Access, which is categorised into long-term, medium-term, and short-term access based on duration. Consumers with a contracted demand of 100 kW or more, whether through single or multiple connections, are eligible for Green Energy Open Access, provided they meet the necessary conditions and system availability.

The regulations also set forth provisions for existing consumers, allowing them to continue their green energy use under existing agreements while applying for additional capacity under the new framework. A significant aspect of the draft regulations is the prioritisation of curtailment in cases of transmission or distribution constraints. Short-term non-Green Energy consumers will be curtailed first, followed by short-term Green Energy consumers, with similar prioritisation applied to medium-term and long-term consumers. This includes single or multiple connections within the same electricity division.

The Green Energy Open Access process is managed through the GOAR Portal, operated by the Central Nodal Agency. Obligated entities, such as distribution licensees and captive consumers, must comply with the Renewable Purchase Obligations as per the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022.

Green Energy Open Access is categorised into long-term (exceeding 12 years but not more than 25 years), medium-term (3 months to 5 years), and short-term (up to one month) access. Existing consumers can continue with their existing agreements, but any additional capacity sought beyond the contracted amount will require a new application. The regulations also detail the procedures for applying for access, including charges for transmission, wheeling, and standby arrangements.

In cases of transmission or distribution constraints, curtailment will follow a priority order, with short-term non-Green Energy consumers being curtailed first. Standby charges, set at up to 125 percent of the normal tariff, will apply if the distribution licensee provides standby power. Banking facilities will allow surplus green energy to be stored and used within the same cycle, with charges set at 8 percent of the banked energy.

Further, the GOAR Portal provides details like applicable charges for transmission, wheeling, cross-subsidy surcharges, and other fees. Additionally, the draft regulations address standby and banking facilities. Standby arrangements are provided by the distribution licensee to ensure continuous power supply in case of disruptions, with standby charges set to reflect actual costs. Surplus green energy can be banked on a monthly basis, subject to specific charges and conditions.

The regulations also establish a framework for dispute resolution, requiring the State Nodal Agency to provide reasons for any denied applications and allowing appeals to the Commission. The State Load Dispatch Centre (SLDC) is tasked with maintaining a dedicated web page for Green Energy Open Access information and providing regular reports on consumer status, load flows, and system losses.

Going forward, these proposed regulations are expected to foster the development of renewable energy in Himachal Pradesh, supporting national goals and providing a clear, structured approach to Green Energy Open Access. The draft regulations are open for public feedback, with stakeholders invited to submit their suggestions and objections within 30 days of publication before the finalisation of the regulations.