GREEN ENERGY OPEN ACCESS RULES, 2022 – POLITY

Green Energy Open Access Rules, 2022 – POLITY

NEWS: The Karnataka High Court struck down the Green Energy Open Access Rules, 2022 introduced by the Union Government, citing legislative overreach.

 

WHAT’S IN THE NEWS?

The court ruled that the central government overstepped its authority in framing the rules, as they should have been enacted through parliamentary legislation or by state regulatory bodies under the Electricity Act, 2003.

 

Key Points of the Judgment:

  • Violation of Federal Structure: The court found that the rules infringed on the powers of state regulatory bodies, particularly the Karnataka Electricity Regulatory Commission (KERC), and contradicted the federal structure of governance mandated by the Constitution.
  • Legislative Overreach: The central government could not bypass parliamentary law-making and directly frame such rules. The Electricity Act requires the framing of regulations by state regulators, and it was inconceivable that the government could sidestep this requirement.
  • Delegation of Legislative Power: The court highlighted the principle of legislative delegation and pointed out that the Electricity Act assigns specific roles to various authorities. The central rules, by instructing state commissions to amend their own regulations, encroached upon the independent regulatory functions of the state.

Green Energy Open Access Rules, 2022

  • The Green Energy Open Access Rules, 2022 were introduced by the Government of India on June 6, 2022, to accelerate the country's renewable energy agenda and provide access to affordable, reliable, sustainable, and green energy for all.
  • These rules are a key component of India's strategy to achieve its Nationally Determined Contribution (NDC) target of reducing emissions by 45% by 2030.
  • Key Objectives and Benefits:
    • Promotion of Green Energy: The rules aim to promote the generation, purchase, and consumption of green energy, including energy from Waste-to-Energy plants.
    • Inclusive Access: The rules allow any consumer (including smaller ones) to purchase renewable energy via open access. The threshold for open access transactions has been lowered from 1 MW to 100 kW, enabling small consumers (e.g., small businesses or residential areas) to access green power.
    • Mandatory Green Energy Supply: Consumers have the right to demand green power from DISCOMs (Distribution Companies), which are obligated to procure and supply this power to eligible consumers.
    • Streamlined Approval Process: A simplified, time-bound approval process has been introduced. The approval process for green energy open access applications is streamlined through a national portal, and approvals must be granted within 15 days or they will be deemed approved.
    • Voluntary Adoption for Industries: Commercial and industrial consumers have the option to voluntarily purchase green power at favorable rates.
  • Features of the Rules:
    • Open Access for Small Consumers: The rules lower the open access transaction limit from 1 MW to 100 kW, enabling smaller consumers to access renewable energy.
    • Mandatory Green Power Supply: Consumers are entitled to demand green power from their DISCOMs, who are obligated to procure and supply it.
    • Transparency and Efficiency: The approval process for open access is streamlined with uniformity and transparency. This includes national-level processing through the Green Energy Open Access Registry (GOAR) portal. All stakeholders can track approvals, rejections, revisions, and curtailments.
    • Cost Certainty for Consumers: The rules provide clarity on the charges to be levied on green energy consumers, which include transmission, wheeling, cross-subsidy surcharges, standby charges, and others as applicable.
    • Cross-subsidy and Incentives: A cap is placed on increasing cross-subsidy surcharges and additional surcharges are removed to incentivize green energy adoption.
    • Renewable Purchase Obligations (RPO): A uniform RPO applies to all obligated entities, including the inclusion of green hydrogen/green ammonia for fulfilling RPOs.
    • Green Certificates: Consumers who purchase green energy are entitled to Green Certificates, helping to verify their renewable energy consumption.
  • Tariff Determination: The tariff for green energy will be determined by the Appropriate Commission based on the average pooled power purchase cost of renewable energy. This will also account for cross-subsidy charges, if applicable, and the distribution licensee’s costs for delivering green power.

Green Energy Open Access Registry (GOAR): To streamline the process, the Ministry of Power has notified the Grid Controller of India Limited as the Central Nodal Agency to manage the GOAR portal. This portal acts as a single window for all green energy open access applications.

 

What are the Other Initiatives Related to Green Energy Transition?

  • Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA)
  • Green Energy Corridor (GEC)
  • National Smart Grid Mission (NSGM) and Smart Meter National Programme
  • Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME)
  • International Solar Alliance (ISA)
  • PM- KUSUM (Pradhan Mantri-Kisan Urja Suraksha evam Utthaan Mahabhiyan)

India’s Status

  • India is contributing only 3.5 percent to the global emission despite having about 17 percent of the world population.
  • India is leading the clean energy transition globally and has the fastest growth of RE capacity addition.

 Source: https://indianexpress.com/article/cities/bangalore/karnataka-high-court-green-energy-open-access-rules-9768477/