Maharashtra Raises Banking Fees under New Open Access Rules
POWER & RENEWABLE ENERGY

Maharashtra Raises Banking Fees under New Open Access Rules

The Maharashtra Electricity Regulatory Commission (MERC) has revised its open access regulations, introducing higher banking fees for renewable energy projects in the state. The move aims to address concerns raised by electricity distribution companies (DISCOMs) about the financial burden caused by banking provisions.

Under the revised regulations, effective from April 1, 2022, electricity consumers in Maharashtra seeking open access will have to pay a higher fee for banking power. Banking power refers to the system where surplus electricity generated by a consumer can be injected into the grid and withdrawn later as per requirements.

Previously, Maharashtra had imposed a banking fee of INR 0.05 ($0.0007) per unit on surplus electricity. However, the revision increases the banking fee to INR 0.45 ($0.006) per unit, marking a substantial rise. The higher fees are expected to ensure the financial sustainability of the DISCOMs while promoting renewable energy generation.

The move comes as a result of DISCOMs' concerns that the lower banking fees were causing an increase in the cost of power for non-open access consumers. DISCOMs argued that open access consumers were enjoying significant benefits due to the current minimal banking fees. By increasing the fees, the state intends to strike a balance and alleviate the financial stress on DISCOMs.

Moreover, the MERC has also addressed the concerns of small-scale consumers by allowing them to fully offset their total energy consumption against generation from renewable energy sources. This provision aims to encourage smaller consumers to adopt renewable energy solutions and contribute to the state's clean energy goals.

The revised open access regulations align with the state's commitment to renewable energy growth and the reduction of carbon emissions. Maharashtra has set a target to achieve 40% of its electricity generation from renewable energy sources by 2030. The state is already one of the leaders in India's clean energy transition, with significant investments in solar and wind power projects.

While the higher banking fees may pose challenges for renewable energy generators, it is hoped that the revised regulations will create a more balanced and sustainable framework for open access in Maharashtra. The state aims to strike a balance between promoting renewable energy and ensuring the financial viability of the DISCOMs, enabling a greener and more resilient electricity sector.

The Maharashtra Electricity Regulatory Commission (MERC) has revised its open access regulations, introducing higher banking fees for renewable energy projects in the state. The move aims to address concerns raised by electricity distribution companies (DISCOMs) about the financial burden caused by banking provisions. Under the revised regulations, effective from April 1, 2022, electricity consumers in Maharashtra seeking open access will have to pay a higher fee for banking power. Banking power refers to the system where surplus electricity generated by a consumer can be injected into the grid and withdrawn later as per requirements. Previously, Maharashtra had imposed a banking fee of INR 0.05 ($0.0007) per unit on surplus electricity. However, the revision increases the banking fee to INR 0.45 ($0.006) per unit, marking a substantial rise. The higher fees are expected to ensure the financial sustainability of the DISCOMs while promoting renewable energy generation. The move comes as a result of DISCOMs' concerns that the lower banking fees were causing an increase in the cost of power for non-open access consumers. DISCOMs argued that open access consumers were enjoying significant benefits due to the current minimal banking fees. By increasing the fees, the state intends to strike a balance and alleviate the financial stress on DISCOMs. Moreover, the MERC has also addressed the concerns of small-scale consumers by allowing them to fully offset their total energy consumption against generation from renewable energy sources. This provision aims to encourage smaller consumers to adopt renewable energy solutions and contribute to the state's clean energy goals. The revised open access regulations align with the state's commitment to renewable energy growth and the reduction of carbon emissions. Maharashtra has set a target to achieve 40% of its electricity generation from renewable energy sources by 2030. The state is already one of the leaders in India's clean energy transition, with significant investments in solar and wind power projects. While the higher banking fees may pose challenges for renewable energy generators, it is hoped that the revised regulations will create a more balanced and sustainable framework for open access in Maharashtra. The state aims to strike a balance between promoting renewable energy and ensuring the financial viability of the DISCOMs, enabling a greener and more resilient electricity sector.

Next Story
Infrastructure Transport

Railway stations in Prayagraj undergo major passenger facility expansion

The Railway Board Chairman and CEO, Satish Kumar, conducted an extensive inspection on Saturday alongside the General Manager of Northern Railway and the officiating General Manager of North Central Railway. Their visit focused on various ongoing projects at multiple stations across the Northern and North Central Railway zones, with particular attention to enhancing facilities for the upcoming Maha Kumbh. During the inspection, Chairman Kumar reviewed the construction of a vital bridge over the River Ganga, specifically between Jhunsi and Prayagraj Rambagh. This bridge is expected to significa..

Next Story
Infrastructure Transport

Madurai-Thoothukudi broad gauge line works under review

The construction of the Madurai-Thoothukudi broad gauge line, which includes the crucial Melmarudur-Tiruparankundram project, is currently under careful review. This update comes from Southern Railway's assistant public information officer, J Kumarasubramanian, following an RTI inquiry made by a concerned citizen, Dayanand Krishnan. The new broad gauge line is projected to cover a total length of 143.5 km, with the initial 18 km stretch between Milavittan and Melmarudur completed and sanctioned by the Commission of Railway Safety on March 8, 2022. While substantial progress has been made on t..

Next Story
Real Estate

DLF expects Rs 26,000 cr from super luxury project in Gurugram

Realty giant DLF is projecting impressive revenue of Rs 26,000 crore from its newly unveiled super-luxury project, The Dahlias, situated in the heart of Gurugram. Ashok Tyagi, the Managing Director of DLF, shared these insights during a recent conference call with market analysts, highlighting the project's potential amidst rising demand for high-end residential properties. The Dahlias project spans an expansive 17 acres and is set to feature approximately 420 ultra-luxury apartments, each boasting a minimum size of 10,300 square feet. This ambitious development has already garnered significan..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000