Indian Government Urges Compliance with Green Tariff Determination and Renewable Energy Rules

The Indian government has urged state electricity regulatory commissions (SERCs) to adhere to the guidelines outlined in the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022. The rules were introduced to promote the use of renewable energy (RE) and accelerate the country’s RE programs. However, it has been observed that only a few states have determined the Green Tariffs, and in some cases, these tariffs have been set higher than the average power purchase cost of renewable energy.

To incentivize the adoption of renewable energy, the government has clarified that the Green Tariff should not exceed the average power purchase cost of RE, along with a surcharge of 20% of the average cost of supply and a reasonable margin of 25 paisa. This ensures that tariffs are in line with the regulations.

Furthermore, it has been noted that some SERCs have not fully aligned their regulations with the rules notified by the Ministry. The government has reminded these SERCs of Section 181 of the Act, which mandates that their regulations should be consistent with the Act and Rules. It has emphasized that the SERCs which have not yet notified Green Energy Open Access regulations must do so within a specified timeframe.

The government expects all SERCs to take appropriate action to determine the Green Tariffs, implement the Green Open Access Rules, and align their Open Access Regulations with the notified Rules promptly. SERCs have been requested to provide the status of compliance within 15 days of receiving this directive.