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Gujarat Cuts Green Energy Open Access Banking Charge To Rs One Per kWh
POWER & RENEWABLE ENERGY

Gujarat Cuts Green Energy Open Access Banking Charge To Rs One Per kWh

On 16 September 2026 the Gujarat government reduced the green energy open access banking charge to Rs one per kWh, the state said. The revision lowers the banking fee applied when renewable energy is injected to the grid for consumption at a later time and aims to streamline costs for open access consumers. The change was announced as part of measures to improve the viability of renewable power transactions.

The reduced charge is intended to decrease transaction costs for industrial and commercial buyers that procure renewable power through open access arrangements, and to provide clearer price signals for project developers. By lowering the banking fee, the state seeks to encourage better utilisation of solar and wind generation across diurnal cycles without imposing large additional levies on consumers. Distribution utilities will retain responsibility for accounting and settlement under existing procedures.

Energy analysts described the move as a practical adjustment that addresses a common barrier to short term energy banking, noting that lower fees can improve project economics for smaller scale developers and aggregators. Market participants will review contractual terms to reflect the revised charge and align scheduling, metering and settlement practices with the new rate. Regulators will monitor the operational impacts to ensure system stability and fair access.

The reduction complements other policy steps aimed at strengthening renewable energy uptake and making open access a more accessible route for offsite procurement. Officials indicated that the measure forms part of a broader effort to balance grid integration with affordable supply for industry and to support investment in flexible resources. The state will publish implementation guidance and updates for stakeholders ahead of the effective date.

On 16 September 2026 the Gujarat government reduced the green energy open access banking charge to Rs one per kWh, the state said. The revision lowers the banking fee applied when renewable energy is injected to the grid for consumption at a later time and aims to streamline costs for open access consumers. The change was announced as part of measures to improve the viability of renewable power transactions. The reduced charge is intended to decrease transaction costs for industrial and commercial buyers that procure renewable power through open access arrangements, and to provide clearer price signals for project developers. By lowering the banking fee, the state seeks to encourage better utilisation of solar and wind generation across diurnal cycles without imposing large additional levies on consumers. Distribution utilities will retain responsibility for accounting and settlement under existing procedures. Energy analysts described the move as a practical adjustment that addresses a common barrier to short term energy banking, noting that lower fees can improve project economics for smaller scale developers and aggregators. Market participants will review contractual terms to reflect the revised charge and align scheduling, metering and settlement practices with the new rate. Regulators will monitor the operational impacts to ensure system stability and fair access. The reduction complements other policy steps aimed at strengthening renewable energy uptake and making open access a more accessible route for offsite procurement. Officials indicated that the measure forms part of a broader effort to balance grid integration with affordable supply for industry and to support investment in flexible resources. The state will publish implementation guidance and updates for stakeholders ahead of the effective date.

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