New rules by the Centre will help solar power projects in Rajasthan
The Ministry of Power’s new guidelines will be a boon to the solar power sector; the open access system allows selling by generators to any consumer more lucrative
The new guidelines by the Ministry of Power are set to make open access systems more profitable by allowing generators to sell electricity to any consumer. that they find more lucrative.
The Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022, announced by the ministry, allows for banking of power along with reduced minimum contract quantities, cap cross-subsidy charges, and elimination of additional surcharges.
The new rules are expected to boost the sector, especially in Rajasthan, which is a country’s solar power hub.
Using open access, consumers can now have a minimum of 100 kilowatts of power. Consumer demand for solar power is likely to rise as a result.
“The measures will make open access power more lucrative for consumers,” said Sunil Bansal, president of the Rajasthan Solar Association. The industry or any other consumer today will not be able to take advantage of cheaper power because of the high levies and additional charges. Rajasthan stands to benefit most from these rules due to its geographical location and generational advantages,” he added.
By eliminating any limitations on contract demand, consumers could source their energy as per their needs. Additionally, there will be no additional surcharge for consumers who already pay fixed charges in their normal power bills.
Rajasthan charges additional surcharges, which have deterred consumers from using the open access market. With the additional surcharge gone, it makes economic sense to get power through open access.
The notification further adds that within twelve years of commissioning, cross-subsidy charges cannot be increased by more than 50 percent. Settlement blocks should not exceed 12 per day and the bank facility should be at least 30 days.
Another reason why green energy will be attractive to consumers is that they will be awarded certificates and ratings for using green energy, and this will lower their electricity costs. There will be no cross-subsidy and additional surcharge to encourage the use and generation of green hydrogen and ammonia.
The state-level electricity regulatory commissions will make the rules based on the guidelines by the MoP, that will be implemented in the state.
