Himachal Pradesh Introduces Green Energy Open Access and Banking Regulations

The Himachal Pradesh Electricity Regulatory Commission (HPERC) has introduced the 'Himachal Pradesh Electricity Regulatory Commission (Terms and Conditions for Green Energy Open Access and Banking) Regulations, 2024,' aimed at streamlining the integration of renewable energy in the State.

These regulations apply statewide and provide connectivity and open access to electricity generated from green or renewable energy sources. They apply to both intra-state and inter-state transmission systems, with the key condition that applicants must ensure connectivity. Eligibility is open to consumers or generators with a contracted demand of at least 100 kW.

All applications must be made through the Green Open Access Registry (GOAR) portal, with approvals to be processed within 15 days; if the technical requirements are met, the application is deemed approved if not processed in time.

The regulations categorise open access into three types viz.long-term access, which is valid for 12 to 25 years; medium-term access, which lasts from three months to five years; and short-term access, which is available for up to one month and can be renewed. Short-term access applications are managed by the Himachal Pradesh State Load Despatch Centre (HPSLDC), while medium and long-term applications are managed by Himachal Pradesh Power Transmission Corporation Ltd. (HPPTCL).

In cases of grid congestion, the regulations provide a curtailment priority order viz. short-term non-green open access consumers will be curtailed first, followed by green open access consumers, and long-term consumers last. Within each category, pro-rata curtailment ensures equitable treatment of green energy consumers.

Consumers are required to maintain a communication system to interact with the State Nodal Agency, and metering must comply with the Central Electricity Authority (CEA) and relevant state regulations. The real-time data communication with the State Load Despatch Centre (SLDC) is mandatory. The regulations also establish several charges, including transmission and wheeling charges determined by the Commission.

These charges are fully borne by consumers using exclusive systems unless there is shared capacity. Cross-subsidy surcharge applies to cross-subsidizing consumers, with exemptions for captive generation, non-fossil waste energy, and green hydrogen or ammonia production. There is also an additional surcharge for long and medium-term consumers, with similar exemptions as the cross-subsidy surcharge. Standby charges, up to 125 percent of the normal tariff, apply to standby supply, but exemptions are allowed for pre-notified outages. Banking charges are also imposed at 8 percent of the banked energy, with unutilised energy lapsing at the end of the cycle, though renewable energy certificates are issued for the lapsed energy.

Distribution licensees will issue Green Certificates for energy supplied beyond the Renewable Purchase Obligation (RPO) upon request. The State Nodal Agency is responsible for collecting all relevant fees, such as SLDC fees, application fees, and deviation settlement charges, and disbursing them to the appropriate entities, including transmission or distribution licensees. Any disputes arising from denied applications or other issues will be resolved in accordance with the Electricity Act, ensuring that all parties are granted a fair hearing.

The SLDC will be responsible for providing transparency by publishing operational data related to open access transactions. These regulations mark a significant step towards furthering Himachal Pradesh’s renewable energy agenda, establishing a clear and efficient framework for consumers to access and utilize green energy.