Determination of green tariff under electricity (promoting renewable energy through green energy open access) rules, 2022 and implementation of the rules

The Ministry of Power (MoP) has conveyed to all state electricity regulatory commissions (SERCs) to take appropriate action for determination of green tariff, implement the green open access rules notified by the central government and align open access regulations in accordance with the notified rules, at the earliest. MoP has noted that only a few states have determined the green tariffs, and such tariffs have been set at a rate much higher than the average power purchase cost of renewable energy procured by the discoms. For incentivising the use of renewable energy, the MoP has clarified that in no case the green tariff should be higher than the sum of average power purchase cost of renewable energy, surcharge at the rate of 20 per cent of averge cost of supply, and a reasonable margin of Re 0.25. Further, MoP noted that some SERCs which have notified the green energy open access regulations have not completely aligned the regulations in accordance with the rules notified by it. In this regrad, MoP has directed that regulations by SERCs should be in consistent with the act and rules. Meanwhile, the SERCs which have not yet notified green energy open access regulations, have been directed to notify the same in a time bound manner.