Rajasthan Mandates BESS for Captive Projects Exceeding 100% Contract Demand

Consumers with a 100 kW sanction load can avail green energy open access

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The Rajasthan Electricity Regulatory Commission (RERC) has issued the Rajasthan Electricity Regulatory Commission (Terms and Conditions for Green Energy Open Access) Regulations, 2025.

Captive renewable energy projects, including behind-the-meter installations, can have a capacity of up to 200% of the consumer’s contract demand. If the installed capacity of a captive power project exceeds 100% and goes up to 200% of the contract demand, a battery energy storage system (BESS) is required. The BESS must be capable of storing at least 20% of the energy generated by the additional capacity, that is, the portion of the capacity above 100% of the contract demand.

There is no lower limit on the contracted or sanctioned load for captive users opting for green energy open access. However, such access will be subject to applicable charges and terms and conditions as determined by the Commission.

Specific technical conditions are mandated to support grid stability and efficient renewable integration. New renewable energy projects connected to the state transmission utility (STU) network, excluding hydro projects, with an installed capacity greater than 5 MW must install energy storage systems capable of storing at least two hours of energy, or 5% of the project’s installed capacity.

Consumers with a contract demand or sanctioned load of 100 kW or more, either through a single connection or multiple connections and located in the same electricity division of a distribution company (DISCOM), can procure green energy through open access under these regulations.

Green open access categories

Green energy open access is categorized into three types based on the duration of access. Long-term green energy open access covers the right to use the intra-state transmission systems for more than 12 years but not exceeding 25 years.

Medium-term green energy open access covers a period exceeding three months but not exceeding three years. Short-term green energy open access refers to access for up to one month at a time.

Upon the expiry of short-term access, consumers must submit a fresh application, which will be considered on a first-come, first-served basis based on the date of application.

Nodal Agency

All green energy open access applications must be submitted through the centralized portal established by the central nodal agency (CNA). Once submitted, the CNA will route these applications to the appropriate state nodal agency (SNA) for processing. Applications received by the SNA through the CNA must be processed under the procedures and formats specified by the STU. The SNA must dispose of each application within 15 days from the date of receipt from the CNA.

For different types of open access, the designation of the SNA varies. The Rajasthan STU will function as the SNA for granting long-term and medium-term green energy open access. The Rajasthan SLDC will act as the SNA for granting short-term green energy open access.

The STU must submit detailed procedural documents for the operation of green energy open access to the Commission for approval within 30 days of the notification of these regulations.

The SNA must coordinate with transmission licensees, including the STU and DISCOMs, to ensure that all essential information regarding green energy open access is available to the public. This information will be accessible through the portal maintained by the CNA.

Allotment Priority

DISCOMs will receive the highest priority in all cases. Within the open access framework, green energy open access consumers will be given preference over normal open access consumers, but this preference will apply only within the same access category.

Among green energy open access consumers, the priority will be long-term green energy open access consumers, medium-term green energy open access consumers, and finally, short-term green energy open access consumers. This priority structure will apply at any given time, subject to the availability of surplus capacity in the transmission systems.

Transmission Charges

The Central Electricity Regulatory Commission will determine transmission charges for the interstate transmission system. For the intrastate transmission system, charges will be determined by RERC.

RERC will also determine wheeling charges payable to DISCOM through its tariff orders, subject to the same renewable energy tariff regulations. If both extra high voltage and the distribution network are used, the consumer must pay both transmission and wheeling charges and the associated losses.

Transmission charges will be levied on the contracted transmission capacity for co-located wind-solar hybrid power projects. In the case of non-co-located hybrid projects where solar and wind components are injected separately, charges must be paid separately for each based on their contracted capacities.

Generation from hybrid projects must not exceed the contracted capacity. Any energy injected beyond the contracted amount will be considered inadvertent and will neither be paid for nor settled by DISCOM. The SLDC may curtail such additional injection to ensure grid reliability.

Transmission and wheeling charges will be exempted for power supplied from BESS during peak hours or non-solar hours for a total capacity of 2000 MW or until such capacity is installed by 2030, whichever is earlier.

Renewable energy projects with a BESS of at least 5% of the renewable energy capacity will receive a 75% exemption on these charges for seven years. For each additional 1% of BESS capacity up to 30%, a further 1% exemption will be granted.

Projects with BESS exceeding 30% of the renewable capacity will receive a full exemption. Standalone BESS projects and those connected to 11 kV or 33 kV substations will also be fully exempt for seven years. In addition, projects supplying green hydrogen or ammonia and commissioned before 2030 will receive a 50% waiver on intrastate transmission and wheeling charges. However, the losses will be determined by the Commission.

Cross subsidy surcharge (CSS) applies in addition to transmission and wheeling charges, based on the energy consumed under open access and as specified in the RERC tariff orders. The DISCOM operating in the consumer’s supply area must pay the surcharge.

The Commission may limit any increase in CSS for consumers purchasing renewable energy during the first twelve years of the project’s operation to no more than 50% of the surcharge set in the year of commissioning. CSS will also not exceed 20% of the average cost of supply.

Additional surcharge is not applicable for the quantum of green energy consumed under open access if the consumer pays fixed charges to the DISCOM for that amount within the contract demand or sanctioned load. However, if the consumer avails green energy open access more than their contract demand and does not pay fixed charges for the excess quantum, the additional surcharge, as determined by the Commission, will apply to the additional consumption.

Banking

For renewable energy projects with a capacity of up to 100% of the contract demand, banking is allowed only for captive use within the state. The maximum banking limit is the higher of 25% of the monthly energy injected by the project or 30% of the total monthly consumption from DISCOM.

To avail of this facility, the renewable energy captive projects must be installed with ABT-compliant special energy meters capable of 15-minute block energy accounting and enter into a wheeling and banking agreement with the DISCOM. Banking will be allowed on an annual basis, subject to scheduling requirements.

In any given month, energy injected after accounting for losses will be set off against energy drawn from the distribution licensee during the same month, except during peak hours defined by the licensee. Excess energy may be carried forward to the next month, within the specified limits, after adjusting for banking charges. The Commission may also allow banking based on time-of-day tariff slots through a separate order.

Similar provisions apply for renewable energy projects with a capacity between 100% and 200% of the contract demand. Banking is allowed up to 30% of the total monthly consumption from the DISCOM and is limited to captive consumption within the state. No banking is permitted for renewable energy projects supplying power to third parties or installed behind the meter. These plants must also install ABT-compliant special energy meters and enter a wheeling and banking agreement.

In this case, banking is allowed on a billing cycle basis and must be scheduled. Energy injected after losses will be adjusted against energy drawn in the same billing cycle. The credit of banked energy cannot be carried forward beyond the billing cycle. A set-off is allowed each month except for excess energy drawn during peak hours.

Unutilized banked energy at the end of the billing cycle will lapse. Still, the project will be eligible to receive renewable energy certificates equivalent to the lapsed energy, subject to applicable rules and regulations.

Banking charges will be 8% of the banked energy, payable in kind and adjusted before withdrawal.

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