Punjab State Power Corporation Introduces Clear Banking Draft Procedure To Support Green Energy Open Access Consumers In Punjab

The Punjab State Power Corporation Ltd. has introduced a detailed procedure to manage the banking of power for Green Energy Open Access consumers. This system works under the PSERC Open Access Regulations of 2011 and is designed to help consumers who use renewable energy while ensuring that the distribution network receives proper compensation. The procedure clearly states that if any part of the document conflicts with the Act, Rules, or Regulations, then those higher laws will take priority. The central idea of banking in this process refers to the green energy that a consumer injects into the grid and receives as a credit, which can be drawn later within a defined time frame. This allows consumers to manage their energy use more efficiently while supporting renewable energy generation.

A Green Energy Open Access consumer is defined as someone who has a sanctioned load or contract demand of 100 kW or more. This can be through a single connection or by combining multiple connections within the same distribution licensee’s area. The consumer must also be connected at 11 kV or higher. The banking facility is mainly available for these consumers. The amount of energy that can finally be drawn is calculated by taking the scheduled renewable energy generation and then subtracting transmission and wheeling charges or losses. These charges differ depending on whether the green energy source is located inside Punjab or outside the state.

The settlement of banked energy is done on a Time-of-Day basis and calculated in every 15-minute block. During any time block, if the consumer injects more energy than they use, the extra energy is added to their banked balance. However, this balance is not kept free of cost. A mandatory banking charge determined by the Commission applies to all unutilized energy that remains banked in that time block. This ensures that the distribution licensee recovers the cost of managing energy flow across the grid.

The procedure includes a firm rule that the banked energy cannot be carried forward to the next banking cycle. The banking cycle is the same as the consumer’s billing cycle, so the banked power has to be adjusted fully within that period. If any energy remains unused at the end of the cycle, it is treated as lapsed. But this unused renewable energy does not go to waste, as the renewable energy generator becomes eligible to receive Renewable Energy Certificates equal to the amount of lapsed energy. This provides a market-based benefit to the generator and encourages further renewable energy production.

To put these rules into action, a Model Banking Agreement has been drafted. It is a tripartite agreement involving PSPCL, PSTCL, and the generating company or consumer. This agreement sets out the commercial and legal responsibilities of each party. It covers scheduling, metering, accounting, and settlement of energy. It also includes a dispute resolution mechanism and states that future regulations issued by the Commission will automatically apply. Through these steps, the procedure aims to make the use and tracking of green energy more transparent and consistent, while supporting consumers and maintaining fairness for the distribution licensee.