The Central government, through a gazette notification dated July 8, 2022, has nominated POSOCO as the Central nodal agency to set up and operate a single window green energy open access system for renewable energy.
The notification has been made under Rule 6 (1) of “Electricity (Promoting Renewable Energy through Green Energy Open Access) Rules, 2022”.
It may be recalled that the aforementioned rules were notified on June 6, 2022, with a view to accelerate India’s ambitious renewable energy programmes, with the end goal of ensuring access to affordable, reliable, sustainable and green energy for all.
These rules were notified for promoting generation, purchase and consumption of green energy including the energy from waste-to-energy plants.
The notified rules enable simplified procedure for the open access to green power. It will enable faster approval of Green OA, Uniform Banking, Voluntary purchase of RE power by commercial & industrial (C&I) consumers, Applicability of OA charges, etc.
C&I consumers are allowed to purchase green power on voluntarily basis. Further, captive consumers can take power under Green Open Access with no minimum limitation. Discom consumers can demand for supply of green power to them, according to the rules.
Salient features of “Electricity (Promoting Renewable Energy through Green Energy Open Access) Rules, 2022” are:
- The Green Open access is allowed to any consumer and the limit of Open Access Transaction has been reduced from 1 MW to 100 kW for green energy, to enable small consumers also to purchase renewable power through open access.
- 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. Cap on increasing of cross-subsidy surcharge as well as the removal of additional surcharge, not only incentivise the consumers to go green but also address the issues that have hindered the growth of open access in India.
- Transparency in the approval process of the open access application. Approval 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.
- Determination of green tariff: 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 to streamlining 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.
- Banking of surplus green energy with the distribution licensee mandated.
There shall be a uniform renewable purchase obligation, on all obligated entities in area of a distribution licensees. It has also included the Green Hydrogen/Green Ammonia for fulfilment of its RPO. - Consumers will be given the green certificates if they consume green power.
- Cross subsidy surcharge and additional surcharge shall not be applicable if green energy is utilized for production of green hydrogen and green ammonia.
Also read: TERI And POSOCO Sign MoU For Power Sector Research
Background on POSOCO
POSOCO (Power Systems Corporation of India Ltd) represents the hiving off of the country’s grid management operations that were earlier in the domain of Power Grid Corporation of India Ltd (PGCIL). POSOCO was initially a subsidiary of PGCIL and was later made into an independent Central PSU under the Union power ministry.