Background
GERC (Terms and Conditions for Green Energy Open Access) Regulations, 2024 have been notified by the Gujarat Electricity Regulatory Commission (GERC) under the Electricity Act, 2003 and the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022 notified by the Ministry of Power, Government of India. These Regulations establish a comprehensive framework for Green Energy Open Access (GEOA) in Gujarat — enabling eligible consumers to procure green energy (electricity generated from renewable energy sources, including energy storage) from generators through the open access mechanism, bypassing the conventional distribution licensee supply route.
Applicability
These Regulations shall be applicable for Green Energy Open Access (GEOA) desire to avail by the Licensee, Green Energy Generator or Consumer who have contracted demand or sanctioned load of Hundred (100) KW or more, either through single connection or through multiple connections aggregating Hundred (100) kW or more located in same electricity division of a distribution licensee. Provided that there shall be no capacity restriction for setting up of RE projects for captive use with respect to the consumer’s contract demand/sanctioned load (kW/MW, KVA/MVA) with Discoms.
Compliance Requirements under the Regulations:
Every applicant seeking Green Energy Open Access (GEOA) must apply on the Central Nodal Agency portal in the prescribed format along with the required documents and the applicable non-refundable processing fee: ₹50,000 for Long-Term GEOA; ₹25,000 for Medium-Term GEOA; and ₹5,000 for Short-Term GEOA. The application must be complete in all respects as specified by the Central Nodal Agency, and the processing fee must be paid to the State Nodal Agency.
Before applying for Green Energy Open Access, the consumer must obtain a No Due Certificate and a certificate confirming the availability of the required metering infrastructure at the consumption premises from the respective Distribution Licensee. Both certificates must be submitted along with the GEOA application to the nodal agency.
A Green Energy Open Access consumer availing the banking facility must ensure that the quantum of banked energy in any billing period is at least 30% of the total electricity consumed from the Distribution Licensee during that billing period. Failure to maintain this minimum threshold affects the consumer’s entitlement to avail the banking arrangement under these Regulations.
A Green Energy Open Access consumer must enter into commercial agreements with the generator, generating company, trading licensee, or distribution licensee — as applicable — for the procurement and supply of green energy. Such agreements must include provisions for a payment security mechanism to ensure the financial obligations of the consumer are adequately secured.
A captive consumer or Captive Generating Plant (CGP) availing Green Energy Open Access must submit an affidavit to the Distribution Licensee by 31st October of the ensuing year, containing details of electricity generation, entity-wise consumption, and equity shareholding with voting rights for the completed financial year. Failure to meet the captive ownership and consumption criteria specified in Rule 3 of the Electricity Rules, 2005 — as determined on an annual basis — shall result in the loss of captive status for that year, and the consumer shall become liable for Cross Subsidy Surcharge, Additional Surcharge, and Late Payment Surcharge, as applicable.
Every Green Energy Open Access consumer must pay monthly transaction charges of ₹3,000 to the State Nodal Agency for the maintenance of GEOA transaction details. These charges are payable on a monthly basis regardless of the nature or quantum of green energy transactions undertaken during the month.
Every Green Energy Open Access consumer must pay monthly meter reading charges of ₹1,000 to the concerned licensee(s) who carry out meter reading for the purpose of Green Energy Open Access billing and energy accounting. These charges are payable monthly to each licensee performing meter reading for the consumer’s GEOA transactions.
Every Green Energy Open Access consumer availing Short-Term Open Access must pay scheduling charges of ₹2,000 per day per approval to the SLDC. These charges are applicable for each day and each approval granted for Short-Term Green Energy Open Access transactions, and are payable to SLDC in addition to other applicable open access charges.
Every Green Energy Open Access consumer with a contract demand of 1 MW and above must install four quadrant ABT-compliant meters at the generator end, at all interface points, and at the consumption premises, in conformity with the CEA (Installation and Operation of Meters) Regulations, 2006. The consumer must also install a Remote Telemetry Unit (RTU) to enable real-time monitoring by the SLDC, which must be certified by the relevant licensee.
A Green Energy Open Access consumer seeking open access for a load below 1 MW must install a Special Energy Meter (SEM) capable of recording energy consumption on a 15-minute time block basis at the consumption premises, as specified by the CEA in its Regulations. This meter is required for the purposes of billing and energy accounting for Green Energy Open Access, and its installation is to be permitted by the licensee at the consumer’s discretion.
All Green Energy Open Access meters must be maintained in good working condition at all times and must be kept available for inspection by any person authorised by the State Transmission Utility (STU), Distribution Licensee, or State Load Despatch Centre (SLDC). All GEOA consumers must comply with the metering standards prescribed by the Central Electricity Authority (CEA).
Every Green Energy Open Access consumer must have and maintain communication systems enabling seamless, real-time transfer of data, orders, and information between the generator and the State Nodal Agency (SLDC), Distribution Licensee, Sub-SLDC, Area Load Dispatch Centre (ALDC), Load Management Unit (LMU), and the consumer premises. Data of generators with collective capacity of 1 MW and above shall be utilised by the SLDC for energy accounting and real-time grid management. Data of GEOA consumers and generators with capacity between 100 kW and 1 MW shall be utilised by the ALDC/LMU for energy accounting and real-time load and grid management.
A captive consumer availing Green Energy Open Access from its own Intra-State Captive Generating Plant (CGP) must provide annual details (on a financial year basis) of equity shareholding with voting rights held in the CGP and the utilisation of energy generated from such CGP for captive use, to the Distribution Licensee in whose area the captive consumer is situated. Captive consumers having a rooftop solar power project up to 1 MW at their premises under the GERC Net Metering Rooftop Solar PV Regulations, 2016 are exempted from providing equity holding and consumption details for CGP criteria purposes; however, they are still required to submit the quantum of energy consumed for captive use from such projects to the Distribution Licensee annually.
Penalty & Consequences
The following penalty provisions apply across the compliance obligations covered in this blog. These have been consolidated and de-duplicated for ease of reference:
Section 146 of the Electricity Act, 2003 — Punishment for Non-Compliance of Orders or Directions
Whoever fails to comply with any order or direction issued under the Electricity Act, 2003, or contravenes — or attempts or abets the contravention of — any provision of the Act or any rules or regulations made thereunder, shall be punishable with imprisonment for a term which may extend to three months, or with a fine which may extend to one lakh rupees, or with both, in respect of each offence. In the case of a continuing failure, a further fine which may extend to five thousand rupees for every day during which the failure continues after conviction of the first such offence shall also be imposed.
Regulation 9(VI), Schedule I, Clause 4 — Loss of Captive Status
If a CGP or Captive Consumer/user fails to meet the criteria of ownership and consumption specified in Rule 3 of the Electricity Rules, 2005 — as determined on an annual basis — such CGP or Captive Consumer/user shall lose its captive status for that year. This shall result in the imposition of Cross Subsidy Surcharge, Additional Surcharge, Late Payment Surcharge, and such other charges as may be applicable under these Regulations and the orders of the Commission.
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