Punjab Issues Detailed Procedure for Banking of Power and Model Agreement for GEOA Consumers

Punjab has rolled out a comprehensive framework governing the banking of renewable energy for Green Energy Open Access (GEOA) consumers, aligning the mechanism with the Punjab State Electricity Regulatory Commission’s Open Access Regulations, 2011.

The new procedure standardises how consumers can bank surplus renewable power within the state grid and formalises the process through a model tripartite agreement involving PSPCL and PSTCL.

According to the document, the banking procedure is intended to streamline the utilisation of surplus renewable energy, with provisions for periodic review once implementation begins. In case of any conflict, the Electricity Act and PSERC regulations will prevail.

Under the new rules, GEOA consumers must submit their banking applications using the prescribed form at least a month before availing the facility. Applications are to be filed with the Chief Engineer (Power Purchase & Regulations), PSPCL, in Patiala, along with mandatory self-attested documents such as connectivity approval, open access approval, authorisation letters, and captive status certificates where applicable. Any deficiencies must be rectified within 10 days of receiving intimation from the nodal office.

Once approved, consumers are required to execute a tripartite Banking Agreement with PSPCL and PSTCL within 30 days. The model agreement, provided as Annexure-2, lays out obligations, charge structures and technical requirements for banking transactions.

The procedure also specifies key operational norms. Banking charges are fixed at 10 percent of the banked energy, deducted in kind. Withdrawal of banked energy will not be permitted during peak load hours or peak seasonal periods as defined by the Tariff Order. Further, monthly carry-forward of banked energy is capped at 30 percent of a consumer’s monthly consumption; any surplus beyond this limit is treated as dumped. All unutilised energy standing at the end of the financial year will lapse without compensation.

Consumers are also liable to pay all applicable open access charges, including wheeling, transmission, SLDC, cross-subsidy surcharge and additional surcharge, as per prevailing regulations. Captive users must furnish a security deposit, which may be encashed if captive status is not maintained.

On the technical front, GEOA consumers must install ABT-compliant Special Energy Meters with AMR functionality at both injection and drawal points. Real-time data must be transmitted to SLDC through redundant communication channels. SLDC will also handle energy accounting and issue monthly statements for billing purposes. Renewable energy generators must adhere to the state’s forecasting, scheduling and deviation settlement norms.

The Model Banking Agreement outlines detailed clauses covering charges, metering responsibilities, communication protocols, banking methodology, force majeure conditions, termination grounds, and dispute resolution. Disputes must first be referred to the Commercial & Metering Committee before being escalated to the Commission.

The procedure places strong emphasis on maintaining captive status for consumers sourcing power from captive renewable plants. Any lapse in captive compliance results in forfeiture of the security deposit and dumping of all banked energy for the year. Default events such as non-payment, meter tampering or submission of false documents may also lead to termination of the agreement, with all accumulated banked units lapsing immediately.

The newly issued procedure and model agreement set the compliance framework for renewable energy banking in Punjab, giving open access consumers a structured, rule-based mechanism to manage surplus green power within the state grid.