Bihar Promotes Green Energy with New Regulations
Key Ideas
- BERC in Bihar issued Green Energy Open Access Regulations, 2024, to boost green energy consumption, with a reduced minimum limit for open access transactions.
- Consumers can demand green energy from DISCOMs, who must procure and supply it, while existing consumers can continue under current agreements.
- The regulations cover aspects like RPO obligations, functions of SLDC, GEOA charges, cross-subsidy surcharge, standby charges, and banking facility charges.
- GEOA consumers have options for sourcing, must pay specific charges, and have guidelines for banking surplus energy with the distribution licensee.
The Bihar Electricity Regulatory Commission (BERC) has taken a significant step to promote green energy consumption in the state by issuing the Green Energy Open Access Regulations, 2024. These regulations aim to facilitate the generation, purchase, and consumption of green energy, particularly focusing on energy from waste-to-energy projects. One of the key changes introduced is the reduction of the minimum limit for open access transactions from 1 MW to 100 kW. This adjustment allows even small consumers to participate in buying renewable power.
Under the new regulations, consumers are granted the right to demand green energy from distribution companies (DISCOMs), which are then obligated to procure and supply the requested green power. The regulations also ensure that existing consumers and generators can continue operating under their current agreements or government policies for a specified period.
The regulations address various aspects such as Renewable Purchase Obligations (RPO) obligations, assigning functions to the State Load Distribution Centre (SLDC), setting GEOA charges, establishing guidelines for cross-subsidy surcharges, standby charges, and banking facility charges. These charges include transmission, wheeling, standby, and banking charges, among others.
One significant provision is the establishment of a Cross-Subsidy Surcharge, which is capped at 20% of the average cost of supply for consumers seeking Green Energy Open Access (GEOA). The surcharge may be reduced during shortages and load shedding situations. Additionally, the regulations outline specific charges for standby arrangements and banking of surplus energy with the distribution licensee.
The rules also allow for the sourcing of green energy through various means such as captive generation, renewable energy certificates, or even green hydrogen and ammonia. Consumers are provided with flexibility in placing requisitions for solar and non-solar power, with the Commission determining the tariff for green energy.
Overall, these regulations set a positive tone for the promotion of renewable energy adoption in Bihar, offering consumers more accessibility to green power and encouraging sustainability in the electricity market.