Ministry of Power issues draft electricity rules 2021

18 Aug 2021 CW Team

The Draft Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2021, has been released by the Ministry of Power (MoP). The deadline for feedback submission is 15 September 2021.

The rules apply to the purchase and consumption of renewable energy, including energy generated by waste to energy projects. Except for captive consumption, all consumers with contracted demand or sanctioned load of 100 kW or more are subject to the rule.

According to the draft rules, all obligated entities, such as distribution licensees (DISCOMs), open access consumers, and captive power consumers, would be subject to a uniform Renewable Purchase Obligation (RPO). Any entity, whether obligated or not, has the option of purchasing and consuming renewable energy based on their needs through one or more avenues.

According to the draught rules, there is no capacity cap on behind the meter renewable energy power projects. The term behind the metre refers to electricity generated for personal use rather than to be fed into the power grid. DISCOMs are not obligated to buy this energy.

The Commercial and Industrial (C&I) consumer or a developer may install the power generating unit. A medium or long-term Power Purchase Agreement (PPA) can be reached between the consumer and the developer.

Renewable Energy Certificates can be purchased if the RPOs are met and the applicable regulations are followed. RPOs can come from anywhere as long as they follow the guidelines set forth by the government.

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