MoP Issues Draft Electricity Rules 2021 for Green Energy

The Ministry of Power has released the “Draft Electricity (promoting renewable energy through Green Energy Open Access) Rules, 2021,” seeking comments from stakeholders within 30 days.

The draft rules can be accessed here.

These rules are proposed for the purchase and consumption of green energy, including the energy from ‘Waste-to-Energy’ plants. The draft rules address the following counts: renewable purchase obligation (RPO); green energy open access; nodal agencies; procedure for the grant of green energy open access; banking; and cross subsidy surcharge.

With regard to tariff, the draft rules propose: “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.”

The drat rules regarding green hydrogen, which is hydrogen produced using electricity from renewable sources, state that the obligated entity, including industries, can meet their RPO targets 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 renewable sources. The norms will be notified by the Central Commission, said the ministry.

These draft rules also propose the guidelines for green energy open access and state that, “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,” says MoP.