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					</table>The Gujarat Electricity Regulatory Commission (<a href="https://gercin.org/" target="_blank" rel="noopener">GERC</a>) has reduced the banking charge for green energy open access consumers to ₹1 (~$0.011)/kWh from September 1, 2026, to March 31, 2027.
GERC had <a href="https://www.mercomindia.com/gerc-extends-banking-charge-for-green-open-access-until-june-2026" target="_blank" rel="noopener">set</a> banking charges of ₹1.50 (~$0.0159)/kWh under the state’s green energy open access framework until June this year.
From April 1, 2027, the banking charge will be determined annually using a new methodology that calculates the net revenue impact of banking renewable energy on distribution companies (DISCOMs).
If the Commission cannot determine banking charges under the prescribed methodology, it may issue a separate order continuing the existing charge until the revised charge is determined.
Banking Charges Computation
Under the Gujarat Electricity Regulatory Commission (Terms and Conditions for Green Energy Open Access) (Sixth Amendment) Regulations, 2026, from April 1, 2027, the Commission has determined banking charges for each financial year using data for the immediately preceding calendar year or another period specified by GERC.
The methodology calculates the banking charges as the ratio of the aggregate net revenue impact of renewable energy banking on the DISCOM relative to the total energy banked by green energy open access consumers.
The calculation will use actual injection and consumption data for every 15-minute time block, along with power exchange prices, variable generation costs, and transmission charges,
The regulations require banked energy to be computed separately for each open access consumer on a 15-minute time-block basis over the monthly billing cycle, and to derive the cumulative banked energy during peak and off-peak hours and lapsed energy.
Slot-wise Computation
Scenario 1
When the adjusted renewable energy injection exceeds consumption, the difference will be treated as surplus energy and virtually banked in the grid.
How the distribution licensee utilizes this surplus will depend on the prevailing Indian Energy Exchange (IEX) market clearing prices (MCP), the variable cost of marginal thermal generating stations, interstate transmission charges, and whether the surplus occurs during peak or off-peak periods.
Scenario 1A
If the IEX MCP is higher than the variable cost of marginal thermal generation plus interstate transmission charges, selling surplus power on the exchange is considered economically viable.
During peak periods, if a percentage of surplus energy is assumed to be sold on the exchange, the balance will be used to serve the distribution licensee&#8217;s consumers by backing down marginal thermal generation.
During off-peak periods, if some surplus energy is sold on the exchange, and some is utilized to charge battery energy storage systems (BESS), the remaining energy will be absorbed by backing down marginal thermal generation.
Scenario 1B
If the IEX MCP is lower than the variable cost of marginal thermal generation plus interstate transmission charges, selling the surplus on the exchange will not be considered economical.
In such cases, the entire surplus during peak periods will be used to serve the distribution licensee&#8217;s consumers by backing down marginal thermal generation.
During off-peak periods, a portion of the surplus energy will be used to charge BESS, with the remaining surplus accommodated through backing down marginal thermal generation.
Scenario 2
When consumption exceeds adjusted renewable energy injection, the difference will be treated as a deficit and supplied from the grid.
The source used to meet this deficit will similarly depend on exchange prices, interstate transmission charges, marginal thermal generation costs, and whether the deficit occurs during peak or off-peak periods.
Scenario 2A
If the IEX MCP, after deducting interstate transmission charges, is higher than the variable cost of marginal thermal generation, ramping up the distribution licensee&#8217;s thermal generation will be more economical.
During off-peak periods, the entire deficit will be assumed to be met by ramping up marginal thermal generating stations. During peak periods, a portion of the deficit will be supplied through BESS, with the remainder met by ramping up marginal thermal generation.
Scenario 2B
Conversely, if the IEX MCP, after deducting interstate transmission charges, is lower than the variable cost of marginal thermal generation, procuring power from the exchange will be more economical.
During peak periods, if a percentage of the deficit is procured from the exchange and a portion is met through BESS, the balance will be met by ramping up marginal thermal generation.
During off-peak periods, if a portion of the deficit power is assumed to be procured from the exchange, the remaining deficit will be supplied by marginal thermal generating stations.
Banking Charges (BC) = Aggregate Net Revenue (ANB) / Total Banked Energy (TBE)
Where,
TBE: Total energy permitted to be banked is calculated as the summation of net surplus energy after deducting lapsed energy for all 15-minute time slots across the billing cycle.
ANB: The summation of the net banking cost for all 15-minute time slots across the billing cycle. The net banking cost for each slot is calculated as the cost incurred by the distribution licensee minus the benefit accrued to the distribution licensee,
Banking Limits
The Commission has limited the total cumulative banked electricity at any point during a billing cycle to up to 30% of the consumer&#8217;s total monthly electricity consumption from the DISCOM.
Surplus electricity banked during off-peak periods must not be utilized during peak periods. However, electricity banked during peak periods can be utilized during both peak and off-peak periods.
Any banked electricity remaining at the end of the monthly banking period will be deemed as lapsed energy. Any surplus electricity injected beyond the permitted cumulative banking limit will also be treated as lapsed energy.
GERC has also limited the annual banking charge calculated under the methodology to a floor banking charge of ₹0.50 (~$0.0052)/kWh and a ceiling banking charge of ₹1.50 (~$0.0157)/kWh.
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