Green Energy Open Access Rules,2022: Open access: A game changer for green energy?

What is the News?

The Ministry of Power has notified the Green Energy Open Access Rules, 2022.

Background

What are the key provisions of Green Energy Open Access Rules,2022?

Lower Limit for green energy open access: The limit of open access transactions has been reduced from 1 MW (megawatt) to 100 kW for green energy in order to enable small consumers also to purchase renewable power through open access.  

Setting up of Central Nodal Agency: The rules provide for the setting up of a central nodal agency for operating a single-window green energy open access system through a centralized registry. 

Faster Application Process: The decision to grant green energy open access or not would have to be taken in 15 days failing which it would be treated as deemed permission.

What are the implications of these rules?

Firstly, open-access rules for green power, though helpful to the consumers, will put the discom finances under further strain. 

Note: If India really wants to reach 500 GW of non-fossil capacity, the financial health of the discoms needs to improve by taking the following actions: Retail tariffs need to be raised, the discoms need to bring down their commercial losses and the government needs to pay the promised subsidy to the discoms.

Secondly, the states will still be able to thwart open access by citing technical issues, meaning a lack of transmission capacity. 

Source: The post is based on the article “Open access: A game changer for green energy?” published in Business Standard on 23rd June 2022.