Bihar Draft Open Access Policy For Green Energy Reduces Limit To 100 kW

Bihar recently released a consultative paper on the draft Bihar Electricity Regulatory Commission (BERC) terms and conditions of green energy open access regulations, 2024. The draft aims to provide connectivity and open access to electricity generated from green energy sources. The rules include energy generated from non-fossil fuel-based waste-to-energy plants for use in an Intra-State Transmission System (InSTS) and/or distribution system in the state or both, including intra-state transmission or distribution systems incidental to the inter-state transmission of electricity.

The policy has reduced the limit to open access transactions from 1 MW to 100 kW capacity for green energy, to enable even small consumers to purchase renewable power through open access. Under the Draft policy, consumers can voluntarily purchase more renewable energy than obligated, to simplify implementation. The policy allows for increments of 25%, going up to 100%. The commission can determine the tariff for the green energy policy separately. It may comprise the average pooled power purchase cost of renewable energy, cross-subsidy surcharges (if any), and service charges covering the prudent cost of the distribution licensee for providing green energy.

Procedure for Grant of Green Energy Open Access

The draft states, “The detailed procedure for the grant of connectivity and Green Energy Open Access, including the application format, model banking agreement, and applicable Bank Guarantees/Fees/Charges, etc., would be prepared by the State Nodal Agency within 30 days from the date of notification of these regulations and filed with this commission for approval.”

The draft also specifies that if open access is for a minimum of twelve time blocks of 15-minute intervals during the day, the consumer shall not change the quantum of power consumed through open access. Additionally, the regulation mentioned other changes, “The Green Energy Open Access consumers are required to pay scheduling charge of Rs.2000/ day/approval for Short-Term Open Access and in the case of Long-Term Open Access and Medium-Term Open Access, the same can be applied as per Tariff Order of the Commission for the respective year.”

Cross-Subsidy Surcharge

In green open access, if the facility is availed of by a cross-subsidizing consumer of a distribution licensee of the state, such a consumer, in addition to transmission and wheeling charges, would pay a cross-subsidy surcharge determined by the Commission. The cross-subsidy surcharge, determined on a per-unit basis, is payable monthly by green energy open-access consumers based on the actual energy drawn during the month through open access. The surcharge amount can be paid to the distribution licensee of the area of supply from which the consumer was availing supply before seeking open access.

The draft stipulates that the cross-subsidy surcharge is expected to not exceed 20% of the Average Cost of Supply (ACoS) applicable to the category of consumers seeking Green Energy Open Access. The regulation adds, “Provided that the Commission may fix a lower surcharge in situations of shortages and load shedding by the distribution licensee.”

Standby Charges for Open Access

The Standby Charges for Green Energy Open Access for such standby arrangements can be 110% of energy charges, including FPPA charges, as applicable to the consumer tariff in the prevailing rate schedule specified in the relevant Tariff Order passed by the Commission. The standby charges are in addition to the applicable tariff on standby energy supplied by the Distribution Licensee to the Green Energy Open Access Consumer.