APERC Proposes First Amendments To Green Energy Open Access And Banking Regulations 2024

The Andhra Pradesh Electricity Regulatory Commission (APERC) has proposed the First Amendment to the Andhra Pradesh Electricity Regulatory Commission (Green Energy Open Access, Charges, and Banking) Regulation, 2024. The draft amendment aims to introduce key changes to the existing regulatory framework to address emerging industry needs, stakeholder feedback, and evolving challenges. This move comes after the Government of Andhra Pradesh unveiled its Integrated Clean Energy (ICE) Policy, 2024, which aims to position the state as a leader in clean energy. This policy includes ambitious goals such as achieving 50% of the state’s electric power capacity from non-fossil fuel sources by 2030 and reaching net-zero emissions by 2047.

The amendment, which will build on Regulation No. 3 of 2024, seeks to refine several aspects of the regulation, including compliance, technical standards, and procedural adjustments. The goal is to make the regulation clearer and more efficient for stakeholders involved in the renewable energy sector. One of the major changes in the proposed amendment is the inclusion of electric vehicle (EV) charging stations within the Green Energy Open Access (GEOA) framework. This amendment would allow EV charging stations to procure power through Green OA generators, a significant shift towards integrating clean energy into the growing EV infrastructure.

Moreover, the amendment proposes clear provisions related to energy banking. It specifies timeframes for energy supply during peak, off-peak, and normal hours, with an emphasis on grid stability and equity in banking. The proposed timeframes include off-peak hours from 9 AM to 5 PM, peak hours from 5 AM to 9 AM and 7 PM to 11 PM, and normal hours from 11 PM to 5 AM and 5 PM to 7 PM. Energy banking is expected to operate on a monthly billing cycle, ensuring that banked energy is used within the same cycle.

The amendment also introduces key measures to facilitate investments in green hydrogen and its derivatives. The exemption of cross-subsidy surcharges and additional surcharges for Green Hydrogen production projects is one of the notable changes. Solar module and wind turbine manufacturing projects are similarly exempt from the cross-subsidy surcharge, while battery manufacturing projects will be exempt from the additional surcharge for sourcing renewable energy through third-party open access within the state. These exemptions will remain in place for ten years from the commissioning of these projects. This is intended to attract investments in the clean energy sector and help Andhra Pradesh achieve its long-term sustainability goals.

To further enhance the regulatory framework, the amendment also addresses the issue of grid stability by introducing annual grid-level studies to assess peak demand. The Andhra Pradesh State Load Dispatch Center (APSLDC) will be responsible for conducting these studies and will allow up to 5% of the peak demand to be used as a banking limit. The limit will increase incrementally by 5% each year, depending on grid constraints. This provision is aimed at ensuring the efficient use of renewable energy while maintaining the stability of the state’s grid.

Additionally, the amendment proposes changes to the settlement of energy produced by green energy generators. Energy generated by these generators will be settled on a block-wise basis in 15-minute intervals. In cases where it is not possible to implement 15-minute block-wise energy settlements, the energy generated during the month will be considered as scheduled energy. This energy will then be adjusted against the consumers’ consumption. The amendment also aims to simplify the process for new green energy generators to connect to the grid by aligning with the APERC Regulation on Power Evacuation from Captive Generation, Co-generation, and Renewable Energy Source Power Plants (Regulation No. 3 of 2017).

The regulatory changes are designed to streamline the compliance process, improve technical standards, and address concerns raised by industry stakeholders. These adjustments reflect best practices from other regulatory frameworks while ensuring that the APERC maintains a transparent and effective regulatory system. The consultation process for the amendment has been extensive, with multiple rounds of discussions held with industry representatives and experts. The input received during these consultations has been instrumental in shaping the final version of the draft amendment.

Stakeholders are encouraged to review the proposed changes and provide feedback to APERC. After considering the comments and suggestions from stakeholders, the final version of the amendment will be published and come into effect. The regulatory body has emphasized the importance of technological advancements and digital solutions in compliance, encouraging stakeholders to adopt digital tools to improve the accuracy and efficiency of compliance processes.

This amendment to Regulation 3 of 2024 is a significant step in creating a more effective and transparent regulatory environment for green energy in Andhra Pradesh. By addressing the evolving needs of the industry, it aims to strike a balance between ensuring regulatory compliance and promoting the ease of doing business in the clean energy sector. The proposed changes are expected to have a positive impact on the renewable energy sector, fostering greater investment, technological advancement, and the successful implementation of Andhra Pradesh’s clean energy policies.