India emerged as the third largest solar power generator in 2023, thanks to its ambitious policies and regulations
From the MNRE’s Surya-Ghar: Muft Bijli Yojana guidelines for residential rooftop solar to the adoption of green energy open access regulations by State regulators for the C&I sectors, proactive efforts are being made across all areas to make RE more accessible and adaptable. Let’s delve into a few of the recent government policies, regulatory changes, and judicial interventions that have significantly influenced this evolving sector.
Amendment to the Electricity Rules, 2005: The MoP has introduced a comprehensive set of amendments to the Electricity Rules, 2005. These new rules enable consumers with specified energy loads and ESS to establish, operate, and maintain their dedicated transmission lines without requiring a license. In cases where CGP is established by an affiliate company, the captive user must hold 51% ownership of that affiliate. This provision facilitates the establishment of group captive plants through subsidiaries, providing greater flexibility for companies to manage their energy needs.
Green Energy Open Access Rules: The GEOA Rules were notified in 2022 to streamline the overall approval process for granting OA. Time-bound processing by bringing uniformity and transparency in the application as well as approval of OA through a national portal has been mandated. Moreover, SERCs have been instructed to implement the GEOA Rules notified by the MoP and align with the State OA regulations. Accordingly, various SERCs including Gujarat, Haryana, Karnataka, Jharkhand, Orissa, Andhra Pradesh, and Telangana have issued their respective GEOA regulations.
Surya-Ghar:
The primary goal of this initiative is to help provide free or low-cost electricity to 10 million households with up to 300 units of electricity per month by installing rooftop solar. The scheme will be implemented until March 31, 2027.
State RE Policies: According to recent reports, Rajasthan is spearheading India’s transition to green energy with the production of 39,300 million units of green energy in early 2023-24. Gujarat, the second-largest RE producer, generated 36,184 million units during the same period, marking a doubling of its 2019-20 output and narrowing the gap with Rajasthan’s leadership position.
Judicial intervention
The court’s interpretation of the laws and governmental policies wields substantial influence, particularly in cases where legislative ambiguity or changing circumstances exist. In such cases, judicial authorities undertake broad interpretations to enhance the effectiveness of the laws.
Rule of Proportionality: After a conundrum on the issues surrounding ownership and consumption within captive power plants, the Supreme Court clarified that a captive user has to maintain unitary qualifying ratio throughout the year to meet the captive qualification.
GIB Order: The Supreme Court, vide a judgment dated March 21, 2024, recalled its earlier injunction order dated April 19, 2021, in M.K. Ranjitsinh & Ors. V. Union of India & Ors. whereby it imposed a general prohibition regarding the installation of overhead transmission lines in both Priority and Potential Areas. The court's decision helps stalled projects. Despite progress at the central level, states struggle to follow directives, causing regulatory divergence and exceeding legal boundaries.
These discrepancies, exemplified by GERC imposing restrictions on purchase and sale agreements in captive power transactions and escalating banking charges, are clearly at odds with the GEOA Rules. Therefore, ensuring uniformity in the adoption of laws and conducting thorough discussions and public hearings before formulating regulations are imperative steps to address the concerns of all stakeholders effectively and promote holistic development within the RE sector and its associated aspects.
(The writer is AGM- Legal at AMPIN Energy Transition; views are personal)
