Government Notifies Green Open Access Rules 2022 to Promote Renewable Energy Projects

The government says there will be transparency in the approval process of open access applications.

By Press Trust of India | Updated: 8 June 2022 13:13 IST

Government Notifies Green Open Access Rules 2022 to Promote Renewable Energy Projects

Photo Credit: Unsplash/ Thomas Coker

The Green Open Access Rules 2022 were notified on June 6

Highlights

The government has notified the Green Open Access Rules 2022
The rules will accelerate renewable energy programs in India
Consumers can now demand green power from power distribution companies

The government on Tuesday said it has notified the Green Open Access Rules 2022 to further accelerate India's renewable energy programmes. These rules are notified for promoting generation, purchase and consumption of green energy including through waste-to-energy plants. It enables a simplified procedure for the open access to green power, the power ministry said in a statement.

"In order to further accelerate our ambitious renewable energy programmes, with the end goal of ensuring access to affordable, reliable, sustainable and green energy for all, Green Open Access Rules 2022 have been notified on June 6, 2022," the ministry said.

Consumers can now demand green power from discoms (power distribution companies), it said, adding, "Every consumer becomes stakeholder to contribute in achieving India's commitment of 500GW of non-fossil fuel by 2030." As per the rules, the green open access is allowed to any consumer and the limit of open access transaction has been reduced from 1MW to 100kW for green energy in order to enable small consumers also to purchase renewable power through open access.

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There will be transparency in the approval process of the open access applications. As per the rules, the approvals are to be granted in 15 days or else it will be deemed to have been approved subject to fulfilment of technical requirements. It will be through a national portal.

On the tariff, the statement said: "The tariff for the green energy shall be determined separately by the appropriate commission, which shall comprise of the average pooled power purchase cost of the renewable energy, cross-subsidy charges, if any, and service charges covering the prudent cost of the distribution licensee for providing the green energy to the consumers." The rules will help streamline the overall approval process for granting open access, including timely approval, to improve predictability of cash flows for renewable power producers. It will also bring uniformity in the application procedure.

The rules provide certainty on open access charges to be levied on green energy open access consumers, which includes transmission charges, wheeling charges, cross-subsidy surcharge and standby charges.

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Cap on increasing the cross-subsidy surcharge as well as the removal of additional surcharge not only incentivises the consumers to go green but also addresses the issues that have hindered the growth of open access in India.

Consumers will be given certificates if they consume green power. Cross subsidy surcharge and additional surcharge shall not be applicable, if green energy is utilised for production of green hydrogen and green ammonia.

Besides, there shall be a uniform renewable purchase obligation on all obligated entities in the area of a distribution licensees.

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