+
Maharashtra Raises Banking Fees under New Open Access Rules
POWER & RENEWABLE ENERGY

Maharashtra Raises Banking Fees under New Open Access Rules

The Maharashtra Electricity Regulatory Commission (MERC) has revised its open access regulations, introducing higher banking fees for renewable energy projects in the state. The move aims to address concerns raised by electricity distribution companies (DISCOMs) about the financial burden caused by banking provisions.

Under the revised regulations, effective from April 1, 2022, electricity consumers in Maharashtra seeking open access will have to pay a higher fee for banking power. Banking power refers to the system where surplus electricity generated by a consumer can be injected into the grid and withdrawn later as per requirements.

Previously, Maharashtra had imposed a banking fee of INR 0.05 ($0.0007) per unit on surplus electricity. However, the revision increases the banking fee to INR 0.45 ($0.006) per unit, marking a substantial rise. The higher fees are expected to ensure the financial sustainability of the DISCOMs while promoting renewable energy generation.

The move comes as a result of DISCOMs' concerns that the lower banking fees were causing an increase in the cost of power for non-open access consumers. DISCOMs argued that open access consumers were enjoying significant benefits due to the current minimal banking fees. By increasing the fees, the state intends to strike a balance and alleviate the financial stress on DISCOMs.

Moreover, the MERC has also addressed the concerns of small-scale consumers by allowing them to fully offset their total energy consumption against generation from renewable energy sources. This provision aims to encourage smaller consumers to adopt renewable energy solutions and contribute to the state's clean energy goals.

The revised open access regulations align with the state's commitment to renewable energy growth and the reduction of carbon emissions. Maharashtra has set a target to achieve 40% of its electricity generation from renewable energy sources by 2030. The state is already one of the leaders in India's clean energy transition, with significant investments in solar and wind power projects.

While the higher banking fees may pose challenges for renewable energy generators, it is hoped that the revised regulations will create a more balanced and sustainable framework for open access in Maharashtra. The state aims to strike a balance between promoting renewable energy and ensuring the financial viability of the DISCOMs, enabling a greener and more resilient electricity sector.

The Maharashtra Electricity Regulatory Commission (MERC) has revised its open access regulations, introducing higher banking fees for renewable energy projects in the state. The move aims to address concerns raised by electricity distribution companies (DISCOMs) about the financial burden caused by banking provisions. Under the revised regulations, effective from April 1, 2022, electricity consumers in Maharashtra seeking open access will have to pay a higher fee for banking power. Banking power refers to the system where surplus electricity generated by a consumer can be injected into the grid and withdrawn later as per requirements. Previously, Maharashtra had imposed a banking fee of INR 0.05 ($0.0007) per unit on surplus electricity. However, the revision increases the banking fee to INR 0.45 ($0.006) per unit, marking a substantial rise. The higher fees are expected to ensure the financial sustainability of the DISCOMs while promoting renewable energy generation. The move comes as a result of DISCOMs' concerns that the lower banking fees were causing an increase in the cost of power for non-open access consumers. DISCOMs argued that open access consumers were enjoying significant benefits due to the current minimal banking fees. By increasing the fees, the state intends to strike a balance and alleviate the financial stress on DISCOMs. Moreover, the MERC has also addressed the concerns of small-scale consumers by allowing them to fully offset their total energy consumption against generation from renewable energy sources. This provision aims to encourage smaller consumers to adopt renewable energy solutions and contribute to the state's clean energy goals. The revised open access regulations align with the state's commitment to renewable energy growth and the reduction of carbon emissions. Maharashtra has set a target to achieve 40% of its electricity generation from renewable energy sources by 2030. The state is already one of the leaders in India's clean energy transition, with significant investments in solar and wind power projects. While the higher banking fees may pose challenges for renewable energy generators, it is hoped that the revised regulations will create a more balanced and sustainable framework for open access in Maharashtra. The state aims to strike a balance between promoting renewable energy and ensuring the financial viability of the DISCOMs, enabling a greener and more resilient electricity sector.

Next Story
Technology

Six ways a smarter workflow leads to faster, more accurate bids

In today’s fast-paced civil construction environment, estimators need more than just solid numbers. They need smart, streamlined processes. This article explores six key ways connected workflows can transform the estimated approach, help in minimising risk, move faster, and improve accuracy. By integrating tools, data, and teams, one can produce stronger bids with less rework, fewer surprises, and more confidence. As an estimator, the job goes beyond producing numbers. They are responsible for delivering bids that are fast, accurate, and built to win. In today’s civil construction ind..

Next Story
Real Estate

Experion Launches Women-Only Co-Living Project in Greater Noida

Experion, part of Singapore-based AT Capital Group, has launched its first co-living space under its managed rental housing brand, VLIV, in Greater Noida. The all-women residence features 730 twin-sharing beds with a strong focus on safety, comfort, and well-being. VLIV has committed a $300 million investment to create a structured, service-led rental housing ecosystem in India. The brand aims to scale up to 20,000 beds in the next few years, with a long-term target of 100,000 beds nationwide. “India’s rental housing is fragmented. VLIV is our way of building long-term, dependabl..

Next Story
Infrastructure Urban

Officine Maccaferri Acquires CPT to Bolster Tunnelling Tech

Ambienta’s platform company, Officine Maccaferri S.p.A., has acquired CPT Group, a leading Italian developer of robotic prefabrication systems and digital control technologies for mechanised tunnelling. The move positions Maccaferri as a global player in integrated tunnelling solutions, blending traditional and advanced mechanised systems. Based in Nova Milanese, CPT serves major global contractors across Europe, Southeast Asia, and Australia. The company offers robotic prefabrication (Robofactory), productivity-monitoring software for Tunnel Boring Machines (TBMs), and eco-designed spa..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?