Small consumers gain access to green energy through open access

Open access transaction limits for green energy reduced from 1 MW to 100 kW

Hyderabad: The central government has simplified the regulation of direct purchase of green energy from the open market (open access) to benefit small consumers. The limit on open access transactions for green energy was reduced from 1 megawatt to 100 kilowatts. Currently, only those consumers with a load of 1000 kW are allowed to buy green energy from the open market.

Now with the new amendment, electricity consumers who have one or more electricity connections within the same electricity subdivision (equivalent to the Ministry of Revenue) can buy solar and wind energy under the open access model and save a lot on their electricity bills. However, the contract load of the electricity connection of the concerned consumer shall be at least 100 kW or more.

The Ministry of United Electricity issued a communiqué on May 27 notifying the Second Amendment to Electricity (Promoting Green Energy through Open Access to Green Energy)-2023, which allows consumers with a load of 100 kW and above to purchase green energy from anywhere in the country. The move is expected to prompt small industries, commercial consumers and large households to switch to green energy.

Currently, most of the electricity in the state is supplied to consumers by Telangana Southern Power Distribution Company (TSSPDCL) and Telangana Northern Power Distribution Company (TSNPDCL). Discoms charge consumers an additional surcharge of up to 50 paise per unit, although large industries derive energy from open access for their needs and such purchases, in addition to purchasing power from Discoms. However, under the new specification, discoms will not be allowed to charge any additional fees for the purchase of green energy through open access.

Large residential buildings, commercial and industrial consumers with loads of 100 kilowatts will benefit from the new program, according to DOE officials. However, they claim that the Telangana Electricity Regulatory Commission (TSERC) needs to make certain changes to the existing rules to implement the new central norms.

Telangana is at the forefront of solar power generation in the country with a contracted installed capacity of 5,741 MW and a total renewable energy capacity of 6,151 MW.

Under current open access regulations, large consumers (typically with a minimum load of 1 MW) can buy power from third parties (by signing bilateral PPAs) or establish their own (captive/group captive) utilities. They can use state/central transmission and distribution networks to provide this power. Under current regulations, consumers can purchase electricity on a short-term (up to one month), medium-term (three months to three years) or long-term (12-25 years) basis.