Karnataka Unveils New Open Access Regulations 2025

The Karnataka Electricity Regulatory Commission (KERC) has unveiled new terms and conditions for Open Access Regulations, 2025.

This move follows the Karnataka High Court decision to strike down the Green Energy Open Access Rules, 2022, issued by the Central Government, and the KERC Green Energy Open Access Regulations, 2022, following multiple writ petitions. Consequently, the draft KERC GEOA (First Amendment) Regulations, 2024, were withdrawn, requiring fresh regulations in line with central policies.

The new regulations, called the Karnataka Electricity Regulatory Commission (Terms and Conditions for Open Access) Regulations, 2025, aim to streamline open access for electricity transmission and distribution across the state while ensuring compliance with national energy policies.

The regulations apply to all open access consumers, including those who applied for short-term open access from January 13, 2023, and those seeking long-term or medium-term access from January 2, 2023. It covers renewable energy projects, conventional power generators, and captive consumers. A significant change introduced in the 2025 regulations is the adoption of a monthly banking mechanism for renewable energy sources such as solar, wind, and mini-hydel projects. Under this system, any excess energy injected into the grid must be utilised within the same month, as no carry-forward is permitted. Any unutilised energy will lapse, although generators may still claim Renewable Energy Certificates (RECs) for it. Banking charges have been fixed at 8 per cent of the banked energy, payable in kind.

The regulations define three types of open access: long-term access for five years or more, medium-term access ranging from one to five years, and short-term access for up to one year. To qualify, consumers must have a minimum contract demand of 100 kW for high-tension connections or an aggregated load of 100 kW for low-tension connections. In a bid to support electric vehicle (EV) adoption, EV charging stations have been granted a two-year relaxation on low-tension load aggregation requirements.

Applications for open access must be submitted through the State Nodal Agency (SNA) portal, with a mandatory approval timeline of 15 working days. If no response is provided within this period, the application will be deemed approved. To ensure financial security, a bank guarantee of INR 10,000 per megawatt is required for long-term and medium-term open access applications. Additionally, consumers reserving or using the network must pay various open access charges, including transmission charges, wheeling charges, cross-subsidy surcharge (CSS), additional surcharge (ASC), and banking charges in kind, where applicable. Other charges include standby charges, system losses in kind as determined by KERC, and fees related to scheduling, system operations, grid support, load dispatch, deviation settlement, meter reading, and reactive power use. Standby charges have been fixed at 125 percent of normal energy charges, but consumers can seek waivers by providing advance notice.

The new regulations also introduce a curtailment priority system for grid constraints. If the grid faces congestion, non-renewable short-term open-access consumers will be curtailed first, followed by renewable short-term users. Priority will be given to distribution licensees, ensuring they face curtailment only as a last resort. Agreements signed under the 2022 GEOA Regulations will remain valid but must align with the updated framework. As an interim measure, banking charges have been set at 4 percent, as per the High Court’s directive. Non-REC projects that applied before 2023 will continue under previous terms until a final court ruling is issued.

To improve transparency and monitoring, the regulations mandate the installation of special energy meters or smart meters with 15-minute granularity and time-of-day recording. Any tampering with these meters will lead to the immediate withdrawal of open access rights. Disputes related to open access will initially be handled by the State Nodal Agency, with unresolved cases escalated to KERC under the Electricity Act, 2003. The commission retains the authority to amend the regulations after consulting stakeholders.

The new framework is expected to enhance transparency, facilitate renewable energy integration, and ensure efficient grid management across Karnataka. By simplifying processes and introducing clear guidelines on charges, approvals, and dispute resolution, KERC aims to create a more robust and investor-friendly electricity market in the state.