Green Open Access Rules, 2022

Context

Recently, the Ministry of Power has notified Green Open Access Rules, 2022 in order to further accelerate our ambitious renewable energy programmes in India.

Key-points

• These rules are 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 consumers, Applicability of OA charges etc.
• Commercial and Industrial consumers are allowed to purchase green power on voluntarily basis.
• Captive Consumers can take power under Green Open Access with no minimum limitation.

About Green Open Access Rules 

• Green Energy 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. 

• This will enable small consumers to purchase renewable power through open access. 
• Charges levied on Open Access green energy consumers include-
• Transmission charges
• Cross-subsidy surcharge
• Wheeling charges
• Standby charges 
• There is a scope for incentivising the consumers to go green by addressing the issues that obstructed the open access to green energy in India. 
• The approval to grant open access will take 15 days or else it will be deemed to have been approved subject to fulfilment of technical requirements. 
• The approval will be provided through a national portal to ensure transparency. 
• The tariff for green energy will be determined by the appropriate commission. 
• These rules will streamline the approval process for granting open access to green energy and improve the predictability of cash flows for renewable power producers. 
• Banking of surplus green energy with distribution licensees is mandated.
• There shall be uniform renewable purchase obligations of all obligated entities in the area of distribution licensees. 
• Green certificates will be given to the consumers.
• Cross subsidy surcharge and additional surcharge shall not be applicable if green energy is utilised for the production of green hydrogen and green ammonia. 

Significance

• The Green Energy Open Access rules will boost the ambitious renewable energy programmes and will facilitate India to step closer to its climate change targets set during COP 26. 
• The rules are notified for promoting the generation, purchase and consumption of green energy including the energy from Waste-to-Energy plants. 
• Under the Green Energy Open Access rules, every consumer becomes a stakeholder to contribute in achieving India’s commitment of 500 GW of non-fossil fuel by 2030.