Discoms and States Pivotal to Making Renewable Energy via Open Access a Success in India

Environmental News from India:

  • India’s power ministry recently came up with a set of rules to extend renewable energy’s open access to different sets of consumers and also to make the process faster and with fewer barriers.
  • The new norms allow consumers with up to 100 kilowatts of energy requirements to voluntarily opt for open access to green energy. This is lower than the earlier cap of a one-megawatt requirement and opens up the market to newer consumers.
  • Experts say although the rules aid in green energy penetration in Micro, Small, and Medium Enterprise consumers, the role of power distribution companies (discoms) and states would be crucial to increasing the use of renewable energy.

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.

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Source: Mongabay

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