The Odisha Electricity Regulatory Commission (OERC) has introduced a new draft regulatory framework to accelerate the adoption of distributed renewable energy systems across the state. The commission has pre-published the draft Odisha Electricity Regulatory Commission (Grid Interactive Distributed Renewable Energy Sources) Regulations, 2026, under Section 181(3) of the Electricity Act, 2003. The draft regulations were issued on August 3, 2026, and aim to provide a structured approach for integrating grid-connected renewable energy projects while supporting technological advancements and evolving consumer requirements.
The latest draft replaces an earlier version released in April 2026. According to OERC, stakeholder feedback highlighted that Renewable Consumption Obligations and Distributed Renewable Energy Sources (DRES) are separate regulatory areas and require independent frameworks. The revised draft has been prepared by considering industry feedback, changes in renewable energy technologies, developments in net-metering practices, and the model guidelines issued by the Forum of Regulators.
The proposed regulations will apply across Odisha to grid-connected renewable energy systems with capacities up to 10 MW operating at voltage levels up to 33 kV. Under the framework, consumers will be allowed to install DRES projects either independently or through Renewable Energy Service Companies (RESCOs) for systems up to 500 kW capacity.
A key feature of the draft regulations is the integration of battery storage systems for improving grid reliability. Renewable energy systems above 10 kW capacity will be required to include Battery Energy Storage Systems (BESS) along with hybrid or grid-forming inverters. The batteries will primarily be charged during solar generation hours and discharged during peak demand periods, helping reduce grid stress and improve renewable energy utilisation.
To provide flexibility to consumers, OERC has proposed six different metering arrangements. Net Metering will be available for domestic consumers, government educational and healthcare institutions, local bodies, and agricultural consumers, with capacity limits ranging from 1 kW to 500 kW or the sanctioned load. Net Billing will be available for all consumer categories up to 500 kW, where imported and exported electricity will be accounted for at different tariffs.
Under Gross Metering, consumers can sell their entire renewable energy generation to distribution companies at a Feed-in Tariff approved by OERC for projects up to 10 MW. The draft also introduces Group Net Metering, allowing eligible consumers to adjust renewable energy generation from one location against multiple connections of the same category. Virtual Net Metering provisions will enable multiple consumers to collectively develop a DRES project up to 500 kW under a Lead Consumer arrangement.
The regulations also include a Behind-the-Meter option for self-consumption projects up to 10 MW. Such systems will require reverse power flow relays to prevent unwanted electricity injection into the grid.
Renewable energy systems installed within consumer premises under Net Metering, Net Billing, Gross Metering, and Behind-the-Meter arrangements will be exempt from wheeling charges, transmission charges, cross-subsidy surcharge, and additional surcharges.
OERC has directed distribution companies to establish dedicated online portals, simplify installation procedures, and upgrade billing systems within three months of the final notification of the regulations.
The commission has invited comments and suggestions from stakeholders, electricity sector participants, and the public on the draft regulations. Feedback can be submitted until August 31, 2026, following which the final regulations will be notified in the Official Gazette.
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