Andhra Pradesh Electricity Regulatory Commission (APERC) has issued the draft second amendment to the Andhra Pradesh Electricity Regulatory Commission (Green Energy Open Access, Charges, and Banking) Regulation, 2024 (Regulation No. 3 of 2024), to improve clarity regarding the treatment of hybrid renewable energy projects.

This draft amendment follows an earlier proposal to remove the requirement for single interconnection points for hybrid projects. It defines hybrid renewable energy projects and clarifies scheduling, metering, settlement, deviation treatment, and wheeling-charge applicability for non-co-located hybrid projects.

The Commission stated that clearly defining hybrid projects as scheduled, metered, and settled under the open access framework is necessary, as they are becoming increasingly common.

Once finalized and effective when published in the Gazette, the draft amendment will be enforced across the state.

Hybrid Projects

The draft amendment defines hybrid renewable energy projects as those that produce electricity from a combination of renewable sources connected at the same or different interconnection points.

The rated generation capacity of one renewable energy source must be at least 25% of the capacity of the other source operating at the same or different interconnection point. The draft amendment also mandates that every 1 MW of contracted wind-solar hybrid capacity have a minimum capacity utilization factor of 40%.

Non-Co-Located Hybrid Projects

The draft amendment will treat non-co-located hybrid renewable energy systems as a single generating project.

The capacity of the hybrid project will serve as the basis for scheduling each energy system, irrespective of individual capacity. Scheduling for each system will be furnished separately.

The combined scheduled energy of individual systems must not exceed the total capacity of the hybrid project at any time block. Any scheduled energy excess of the hybrid project’s capacity will be treated as inadvertent energy.

The injected energy from the hybrid project will be scheduled source-wise at the interconnection point for energy settlement, deviation, and forecasting deviations.

Connectivity for each source of the hybrid project can be granted in accordance with the regular technical feasibility requirements by transmission or distribution companies (DISCOMs).

Individual sources of the hybrid projects can be connected anywhere in Andhra Pradesh.

Metering Provisions

The interface meter for each individual non-co-located system in the hybrid projects will be installed at its respective interconnection point at the grid substation.

Distribution/Wheeling Charges Exemption

The draft amendment proposes exemptions from distribution and wheeling charges for eligible clean energy and renewable energy manufacturing projects availing open access under APERC Regulation No. 3 of 2024. The exemption also applies to projects commissioned or achieving financial closure within the approval-specified timelines and where energy injection or drawal occurs at the same voltage level within the state, regardless of DISCOM boundaries.

DISCOMs can claim the exempted charges from the state government under Section 65 of the Electricity Act.

However, wheeling charges and loss allocation will be applied separately for each component of the hybrid projects if they are connected at different voltage levels.

Recently, APERC issued the draft second amendment to the Terms and Conditions for Tariff Determination from Renewable Energy Sources Regulation, 2025, intended to remove the condition that renewable hybrid energy projects and renewable energy with storage projects be connected at a single interconnection point.

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