MoP releases Draft Electricity (Promoting Renewable Energy through Green Energy Open Access) Rules, 2021

The Ministry of Power (MoP) has notifiedthe Draft Electricity (Promoting Renewable Energy through Green Energy Open Access) Rules, 2021.

These rules are proposed for purchase and consumption of green energy and coversubjectssuch as renewable purchase obligation (RPO), green energy open access, procedure for grant of green energy open access, nodal agencies, banking, and cross subsidy surcharge. It also has provisions for waste-to-energy (WtE) plants. Green hydrogen forms an important component of the draft rules as obligated entities including industries can meet their RPOs by purchasing green hydrogen. The quantum of green hydrogen to be purchased would be determined by considering the equivalence to the green hydrogen produced from one MWh of electricity from the renewable energy (RE) sources or its multiple. With respect to tariff, the draftproposes that the tariff for the green energy will be determined by the appropriate commission, and it may comprise of the average pooled power purchase cost of the RE, cross-subsidy charges (if any) and service charges covering all prudent cost of the distribution licensee for providing the green energy. The MoP has sought comments within 30 days.

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