JERC to Allow Banking of Renewable Energy up to 20% of the Total Generation

Banking charges at the rate of 5% of the banked energy will be applicable

December 16, 2020


The Joint Electricity Regulatory Commission (JERC) for the state of Goa and union territories has issued amendments to the intrastate open access transmission and distribution regulations 2017.

In the amendments, a new chapter titled ‘Banking of Energy’ has been introduced, which deals with provisions for handling banked energy.

These regulations will apply to the state of Goa and the union territories of Andaman and Nicobar Islands, Chandigarh, Dadra & Nagar Haveli and Daman & Diu, Lakshadweep, and Puducherry.

Earlier in October, JERC had issued draft amendments to the open access transmission and distribution regulations 2017.

As per the amendments, the distribution licensee will allow the banking of energy to all the captive renewable energy-based generating stations and renewable energy generators supplying power to third-party consumers through open access in the state of Goa and union territories.

Limit for Banked Energy

The banking of energy up to 20% of the total power generated by the renewable generator will be allowed every month. The withdrawal of banked power will be permitted only during the same financial year in which the energy has been banked. The unbanked energy, limited to 20% of the total generation at the end of the financial year, will be considered as a deemed purchase by the distribution company (DISCOM) at average power purchase cost or the feed-in-tariff for that year, whichever is lower.

Further, the unutilized banked energy at the end of the financial year, more than 20% of the renewable generator’s total energy, will lapse. No compensation will be available for such energy.

Banking Energy Charges

The new clause states that the banking charges at the rate of 5% of the banked energy will be applicable. For unutilized banked energy at the end of the financial year limited to 20% of total generation, the DISCOM will make the payment for unutilized banked power after adjusting the banking charges.

This banking facility will be available to captive renewable projects and renewable projects, supplying power to a third party under open access. The captive power project and the DISCOM or transmission licensee will have to enter into a wheeling, transmission, and banking agreement.

Settlement of Banking

For each billing period, the DISCOM should show the amount of electricity injected by the renewable generator, the electricity withdrawn by the captive consumer or third-party consumer, and the net carried-over electricity to the next billing period separately.

Suppose the electricity injected exceeds the electricity withdrawn during the billing period. In that case, such a quantum of electricity will be carried forward to the next billing cycle subject to the maximum of 20% of the total electricity generated and will be used to calculate the net energy withdrawn in the future billing cycles.

Suppose the electricity withdrawn exceeds the electricity injected. In that case, DISCOM should raise an invoice for the net electricity withdrawn by the captive consumer or the third-party consumer after taking into account banking charges and any electricity credit balance remaining from the previous billing period.

The net energy withdrawn during the billing period after adjusting the electricity credit from the previous billing period shall be treated as consumed by the captive consumer, or third-party consumer and will be billed by the DISCOM at the tariff rates approved by the Commission.

In September, the Chhattisgarh Electricity Regulatory Commission also proposed modalities for renewable energy banking, accounting, and wheeling of power to provide more clarity on the distributed renewable energy regulations 2019.

Earlier, the Government of Karnataka had held a meeting to discuss the banking and wheeling charges for grid-connected renewable projects in the state. In the meeting, the government decided that for grid-connected captive solar projects, the consumer would be required to agree to the wheeling and banking charges.

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