The Union ministry has paved the best way for small customers to get entry to inexperienced energy by lowering the restrict of open entry transaction by 10 occasions to 100 kilowatt (kw) and curbing the surcharges to be constructed into tariffs. The ministry notified the Green Power Open Access Rules, 2022, on Tuesday.
The new norms additionally eased the method to use for inexperienced energy, beneath which approval might be granted by way of a nationwide portal in 15 days or else it is going to be deemed to have been granted.
Renewable energy is cheaper than thermal energy already, with the tariffs ranging round Rs 2.3-2.7/unit, whereas thermal energy beneath long-term contracts are principally offered at Rs 5-6/unit.
Under the brand new open entry guidelines, tariff for the inexperienced vitality might be decided by a separate fee, as a substitute of the facility regulators on the central and state ranges. The tariff will embrace common pooled energy buy value of the renewable vitality, wheeling and transmission costs, cross-subsidy costs, if any, and repair costs overlaying the prudent value of the distribution licensee.
Cross-subsidy surcharge received’t improve past 50% of the tariff for 12 years from the date of operation of the renewable plant. Also, no extra surcharge might be imposed on the customers. The two surcharges received’t be relevant, if inexperienced vitality is utilised for manufacturing of inexperienced hydrogen and inexperienced ammonia.
The ministry has additionally supplied for “banking” (storage) of surplus energy with discoms topic to a cap of 30% of the consumption by every open entry shopper of inexperienced vitality. “Banking shall be permitted at least on a monthly basis on payment of charges to compensate additional costs, if any, to the distribution licensee,” the ministry stated.
It prices roughly Rs 4 crore to arrange a renewable vitality unit of 1 MW capability. The discount within the restrict for open entry transaction will permit smaller gamers to enter the sector.
Rahul Raizada, govt director at PwC India, famous that cross-subsidy and extra surcharges collectively constituted roughly 70-75% of the open entry costs, thwarting the procurement of renewable vitality by way of open entry. “Incentives like capping of cross subsidy surcharge will aid open access purchases by large commercial and industrial consumers but even by small and medium enterprises (SMEs) and farmers,” he stated.
As per the eased norms, customers might be given certificates in the event that they eat inexperienced energy. Besides, there shall be a uniform renewable buy obligation on all obligated entities within the space of a distribution licensees.
Like in Europe and different superior nations, open entry might result in “peer-to-peer trading” amongst small customers in India too, analysts stated. It may even permit folks to borrow from industrial and business customers with giant rooftops. Besides, the adoption amongst residential customers with huge rooftops will see a pick-up attributable to sharp discount in transaction dimension, they famous.
Rupesh Sankhe, vice-president and energy analyst at Elara Securities, stated the brand new norms will scale back the minimal capital dimension of inexperienced vitality models and in addition make such energy way more inexpensive for small customers. It may even result in creation of micro-grids assembly the wants of far-flung areas and boosting last-mile entry, he added.
According to Kushagra Nandan, co-founder & MD of SolarSource Energy, the brand new guidelines are a shot within the arm for the inexperienced energy sector. This will let the inexperienced vitality market to develop manifold within the coning years, with elevated purchases by industrial customers which account for about 50% of electrical energy consumption within the nation.
Source: www.financialexpress.com”