Karnataka Drafts New Open Access Regulations After High Court Order on Green Energy

The Karnataka Electricity Regulatory Commission (KERC) has issued a new draft regulation on open access titled 'Karnataka Electricity Regulatory Commission (Terms and Conditions for Open Access) Regulations, 2025,; outlining the proposed framework for open access to the electricity transmission and distribution systems in Karnataka.

This initiative follows the Karnataka High Court's ruling in 2024, which invalidated the previous 'Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules 2022' by the Central Government and the 'Karnataka Electricity Regulatory Commission (Terms and Conditions for Green Energy Open Access) Regulations, 2022'.

The High Court had directed KERC to frame new regulations in line with national electricity policies and after proper consultation with stakeholders. The Court also allowed for the continuation of interim arrangements such as payment of reduced transmission charges and continued banking facilities for green energy until the new regulations are implemented.

The draft regulation seeks to replace the earlier GEOA rules and introduces a comprehensive set of regulations for all open-access consumers, including those procuring green energy. It covers both short-term and long-term open access, incorporating principles from the national electricity policy and tariff policy. For long-term open access, it will be granted based on transmission and distribution planning, ensuring grid capacity can accommodate the demand. Short-term and medium-term open access will be granted based on available system margins, power flow variations, and spare capacity in the transmission or distribution system.

The regulations will be applicable to all Open Access customers, including Green Energy Open Access applicants, who filed applications with the State Nodal Agency from January 13, 2023, for short-term open access (STOA), and from January 2, 2023, for long-term open access (LTOA) and medium-term open access (MTOA). These applications pertain to the use of intra-state transmission systems (InSTS) and/or distribution systems of licensees in the state, including those associated with inter-state transmission of electricity.

Key definitions in the draft include 'Green Energy, referring to energy derived from renewable sources like solar, wind, hydropower, biomass, and other clean technologies. 'Open Access Consumers' are entities with specific load or demand thresholds, such as those with contract demands over 100 kW, who are eligible for open access to the grid. The document also outlines the process for banking, where unused energy by open-access consumers can be stored for later use.

To facilitate transparency, the draft regulations also detail the procedure for granting open access. This includes the application submission process, timelines for processing applications, and requirements for processing fees and bank guarantees. Long-term and medium-term open access applications require a fee of INR 5000, while short-term applications require INR 1000. Additionally, a bank guarantee of INR 10,000 per MW is needed for long-term or medium-term open access. If a customer fails to utilise their allocated capacity for more than 4 hours in a short-term arrangement, they must inform the State Load Despatch Centre (SLDC), which may lead to the surrender of the capacity.

The draft also includes specific charges related to open access, such as transmission charges, wheeling charges, cross-subsidy surcharge, additional surcharge, banking charges, standby charges, and losses. These charges will be determined based on the system's capacity, the energy transmitted, and other factors, with special provisions for wind-solar hybrid projects and curtailment priorities during grid constraints.

In terms of information dissemination, the State Load Despatch Centre (SLDC) will maintain a dedicated web page with detailed reports on the status of open access customers, transmission losses, and other relevant data. These reports will be regularly updated, and all previous reports will be archived for public access.

The Commission has invited public consultation on the draft, providing a 30-day window for stakeholders to submit feedback. A public hearing is scheduled for February 25, 2025. The regulations aim to improve the integration of renewable energy into the State’s power grid while ensuring equitable and efficient access for consumers and generators.