Bihar Electricity Regulatory Commission Proposes Draft Green Energy Open Access Regulations 2024

The Bihar Electricity Regulatory Commission (BERC) has published a consultative paper on the Draft BERC Green Energy Open Access Regulations for 2024. This paper outlines new regulations aimed at promoting the generation, purchase, and consumption of green energy in Bihar. It supports India’s ambitious target to achieve a non-fossil energy capacity of 500 GW by 2030, with solar power accounting for 280 GW. Additionally, the country aims to produce 5 million tons of green hydrogen annually by 2030 and achieve net-zero carbon emissions by 2070.

The new regulations seek to streamline the approval process for green energy open access, making it more transparent and efficient. One of the significant changes proposed is reducing the minimum capacity requirement for open access from 1 MW to 100 kW, enabling smaller consumers to participate in green energy procurement. This adjustment is expected to encourage broader adoption of renewable energy sources across various consumer categories.

Consumers who opt for green energy will be able to demand green power supply from their distribution companies (Discoms). The Discoms will be obligated to procure and supply the requested green power, ensuring that consumers’ needs are met. The regulations also provide a framework for determining the charges associated with open access, such as transmission charges, wheeling charges, and cross-subsidy surcharges. These charges are essential for maintaining the financial viability of the power distribution system while promoting the use of renewable energy.

To further incentivize the adoption of green energy, the regulations propose issuing green certificates to consumers who consume green power. These certificates can serve as a recognition of their contribution to environmental sustainability and can be used to fulfill Renewable Purchase Obligations (RPOs). The RPOs require obligated entities, such as large power consumers, to source a specified percentage of their energy from renewable sources.

The regulations also address the banking of surplus green energy. Consumers generating excess green energy can inject it into the grid, which will be credited to their account. This surplus energy can then be utilized at a later time, ensuring efficient use of generated green power and providing flexibility to consumers in managing their energy needs.

In addition to promoting green energy, the regulations aim to ensure grid stability and reliability. Green energy open-access consumers will need to comply with various grid codes and standards, including the State Grid Code and the Indian Electricity Grid Code. These measures are necessary to maintain a stable and reliable power supply as the share of renewable energy in the grid increases.

The BERC has invited comments, suggestions, and objections from the general public and stakeholders on the consultative paper. The draft regulations have been made available on the BERC website, and interested parties can submit their feedback until June 27, 2024. A public hearing is scheduled for July 9, 2024, where stakeholders can present their views in person.

This initiative by the BERC is part of a broader effort by the Indian government to align state-level regulations with national policies promoting renewable energy. By adopting these regulations, Bihar aims to contribute to the national goal of increasing the share of renewable energy in the country’s energy mix, reducing dependence on fossil fuels, and mitigating the impacts of climate change.

Please view the document here for more details.