In a recent development, the Chhattisgarh State Electricity Regulatory Commission has taken a significant step forward in addressing the complexities associated with renewable energy banking, accounting, settlement, and wheeling processes. This initiative, outlined in a draft order dated May 14, 2024, focuses on refining the modalities for independent distributed renewable energy systems (IDRES) that exceed the first 500 MW or have commenced operations by December 27, 2023.
The 2019 Distributed Renewable Energy (DRE) Regulations, along with their amendments, originally set the stage for this regulatory evolution. These regulations aim to bolster investment in renewable energy within the state by establishing a framework for prosumer and independent energy systems. A critical component of these regulations is the provision for banking energy, which allows energy produced to be stored and used later, thereby enhancing the flexibility and economic viability of renewable energy.
Under the new proposals, any banked energy, after accounting for a 2% banking charge, can be carried forward only within the same month or to the subsequent month within the same banking cycle, which runs from April to March of the following year. Importantly, if the banked energy exceeds 30% of the total monthly consumption from the distribution licensee, the surplus is forfeited for that month. At the end of the banking cycle, any unutilized banked energy lapses and is considered the energy of the distribution licensee. Solar generators, however, may receive renewable energy certificates for this lapsed energy.
These revised modalities are a response to various representations from stakeholders interested in setting up renewable energy (RE) based plants and those desiring to procure energy from such setups. The draft details the processes for calculating banked energy, ensuring energy injections and withdrawals from the grid are accounted for in real-time, and prioritizing the use of different energy sources at the consumption end.
For consumers, the proposed system intends to streamline the settlement of banked energy along with energy from other sources like open access or wheeled power and retail supply power. The adjustments and billing for banked energy are meticulously structured to prioritize solar energy, followed by other sources such as captive energy from conventional plants and open-access energy.
Moreover, the commission has opened the floor for comments and suggestions on these modalities, with a deadline set for June 5, 2024. A hearing is scheduled for June 7, 2024, which will further discuss these proposals.
This proactive approach by the Chhattisgarh State Electricity Regulatory Commission signifies a pivotal move towards refining the regulatory landscape for renewable energy in India. It aims to address the practical difficulties encountered in the renewable energy sector, making green energy more accessible and manageable for producers and consumers alike.
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