Govt floats draft green energy open access rules

The draft rules, for the first time, also state that renewable purchase obligations (RPO) of an industrial user can be met through green hydrogen as well.

To increase the use of renewable energy, the Union power ministry has circulated the “draft electricity (promoting renewable energy through green energy open access) rules, 2021”. The draft proposes that there shall be no capacity limit for industries and large power consumers for setting up solar power generation units for self-consumption.

The proposed rules also say that state power regulators will have to frame a mechanism to allow consumers wanting to procure green energy through the open access route, and all such applications for green energy open access will have to be cleared within 15 days.

The rules are seen to standardise the open access regulations all across the country, as currently different states have different norms regarding this. As power minister RK Singh recently said, to make it easier for industries to source all their electricity requirement from renewable energy (RE) based power sources, the Centre is planning to come up with a green tariff mechanism policy to enable discoms supply electricity sourced only from RE sources to interested users, and also levy separate tariffs on such consumers. The draft rules are seen to be a step in that direction as well. Stakeholders have to submit their comments on the draft rules within 30 days.

The draft rules, for the first time, also state that renewable purchase obligations (RPO) of an industrial user can be met through green hydrogen as well. Hydrogen produced with the help of electrolysers through electricity generated from renewable sources such as solar and wind plants is called green hydrogen. Prime Minister Narendra Modi, on August 15, has announced the National Hydrogen Mission.

The country currently consumes about around 6 million tonne of hydrogen annually and the government is looking for ways to increase the penetration of domestic green hydrogen in industries which otherwise import natural gas and ammonia to produce hydrogen. As FE reported earlier, the ministry on new and renewable energy has already circulated the draft ‘National Hydrogen Energy Mission’ document for inter-ministerial consultation, aiming to create a hydrogen value-chain in the country and bring down the costs of hydrogen production.