Green energy refers to energy from renewable sources, including hydropower and storage

10 Jan 2023

India’s Ministry of Power recently notified the Green Energy Open Access Rules 2022 to give an impetus to the growth of the renewable energy (RE) sector and promote its production, purchase, and consumption.Under the open access system, eligible consumers – those with a contracted demand or sanctioned load of 100 kW or more – can purchase power from a green energy service provider of their choice. They can select such a service provider from among competing power companies (private and government-owned) in the open market. This system is a shift away from the closely regulated system where consumers had to use the services of only one service provider which usually had the monopoly in the particular region.The Green Energy Open Access Rules 2022 were notified on June 6 after receiving public feedback and comments to the August 2021 draft rules. Open access has so far been available for regular electricity supply, under the Electricity Act 2003 norms for consumers (mostly large commercial and industrial units) having a minimum of one megawatt of power requirement. The 2022 Rules are specifically for using green energy under an open access system, which, according to the notification, refers to “the non-discriminatory provision for the use of transmission lines or distribution system or associated facilities with such lines or system by any licensee or consumer or a person engaged in generation in accordance with the regulations.” Under these rules, green energy refers to energy from renewable sources, including hydropower and storage (if the storage uses renewable energy). The new rules also classify waste-to-energy projects as green energy and have made it available for open access trade. The rules also specify special incentives if green energy is used to produce green hydrogen and green ammonia.