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First Amendment to the APERC (Green Energy Open Access, Charges, and Banking) Regulation, 2024 (Regulation No. 3 of 2024) – EQ

First Amendment to the APERC (Green Energy Open Access, Charges, and Banking) Regulation, 2024 (Regulation No. 3 of 2024) – EQ

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Summary:

## **1. Background and Purpose**

The amendment is introduced to align the **Green Energy Open Access (GEOA) Regulation, 2024** (Regulation No. 3 of 2024) with the **Integrated Clean Energy (ICE) Policy, 2024** released by the Government of Andhra Pradesh on **16.10.2024**.

**Key goals of ICE Policy 2024:**
– Make Andhra Pradesh a leader in clean energy
– Achieve **50% non-fossil fuel capacity by 2030**
– Achieve **net-zero emissions by 2047**
– Attract investment (~₹10 lakh crores) and create ~7.5 lakh jobs
– Promote **Green Hydrogen**, RE manufacturing, and circular economy

The **GoAP invoked Section 108 of the Electricity Act, 2003** to propose amendments to the GEOA Regulation to support policy implementation.

## **2. Key Amendments Introduced**

### **A. Banking Definition (Clause 2)**
– **Banking** now explicitly includes **unutilized energy** from green sources (wind, solar, hybrid, mini-hydel) during a billing month.
– Banked energy is to be treated as per conditions laid down in the regulation.

### **B. EV Charging Stations (Clause 7)**
– **EV charging stations** are now permitted to procure input power through **Green Open Access generators**.

### **C. Energy Settlement (Clause 9)**
– **Day-ahead scheduling** is mandatory for GEOA generators.
– **Settlement** is done on a **15-minute block-wise basis**.
– If generation/consumption data blocks differ (15-min vs 30-min), aggregation is allowed for matching.
– **Excess energy** injected beyond schedule is **banked**; energy beyond approved OA quantum is **inadvertent**.
– Existing generators (pre-2024 regulation) continue under **Regulation 2 of 2006** until their agreement/policy period ends.

### **D. Treatment of Existing vs. New Entities (Clause 10)**
– **Existing GEOA consumers/generators** (pre-2024 regulation) continue under old agreements/policies.
– **Projects under construction** continue under old regulations until completion.
– **New applications, additional capacity, or renewals** come under the **amended GEOA Regulation**.
– **Effective date** of amendment: first day of next billing cycle after Gazette notification.

### **E. Metering (Clause 11)**
– **Smart meters mandatory** for LT consumers/prosumers under GEOA.
– Check/standby meters not mandatory for LT consumers.

### **F. Standby Charges (Clause 12)**
– **Standby arrangement** provided if OA source fails.
– **Standby charges** = **120% of normal tariff** for up to **72 hours cumulative** in a billing month.
– Beyond 72 hours: **120% of normal tariff or max exchange tariff**, whichever higher.
– **Letter of Credit (LC)** required for 3 days of OA consumption; dynamic enhancement needed if standby extends beyond 72 hours.
– Standby not applicable during **R&C (Relief & Control) measures**.
– Standby tariff valid until **31.03.2026**; to be determined in RST Orders thereafter.

### **G. Surcharge Exemptions (Clause 13)**
– **Green Hydrogen & derivatives projects**: **exempt from Cross Subsidy Surcharge (CSS) & Additional Surcharge (AS)**.
– **Solar Module & Wind Turbine manufacturing**: **exempt from CSS**.
– **Battery manufacturing**: **exempt from AS**.
– Exemptions valid for **10 years from commissioning**, as per **GO.Ms.No.37 dated 30.10.2024**.
– DISCOMs to claim waivers from GoAP under **Section 65 of Electricity Act, 2003**.

### **H. Banking Mechanism (Clause 14)**
#### **14.1: Monthly Banking Cycle**
– Banking on **monthly billing cycle**.
– **Unutilized banked energy at month-end** paid at **75% of last SECI tender rate** (or APERC-notified rate).
– **Fixed rates for FY 2025–26**:
– Solar: ₹2.25/unit
– Wind: ₹2.98/unit
– Hybrid: ₹2.44/unit
– Mini-hydel: ₹2.43/unit

#### **14.3: Banking Limit**
– Only **30% of monthly consumption** from DISCOM can be banked.
– Excess banked energy is **lapsed**.
– Lapsed energy eligible for **RECs**; if not claimed, DISCOM can use for **RPO/RCO compliance**.

#### **14.4: Time-of-Day (ToD) Banking Rules**
– **Banking & drawal allowed throughout billing cycle**.
– **ToD slots**:
– **Peak**: 5 AM–9 AM, 7 PM–11 PM
– **Off-peak (Solar)**: 9 AM–5 PM
– **Normal**: 11 PM–5 AM, 5 PM–7 PM

**Drawal rules:**
– **Peak-banked energy**: Can be drawn in **peak, normal, or off-peak** slots.
– **Off-peak-banked energy**: Only in **off-peak slots**.
– **Normal-banked energy**: Only in **normal & off-peak slots**.

**Grid-level banking cap:**
– **APSLDC** to conduct annual grid study.
– **Banking limit = 5% of state peak demand** (increasing yearly).
– **SLDC to notify max generation capacity** for banking by **1st March each year**.
– Existing OA capacities (pre-2024) **excluded** from this cap.

For more information please see below link:

Anand Gupta Editor - EQ Int'l Media Network