Bonanzafor businesses MERC reduces open access limit from 1 MW to 100 Kw

 

 

 

In another bonanza for the industry sector in State, Maharashtra Electricity Regulatory Commission (MERC) has amended the rules to open access (OA) of power, wherein the demand has now been scaled down to 100Kw. The new rule is applicable in terms of purchase of power from renewable energy sources, and it could provide stimulus to tapping the solar energy given the abundance of sunny days in the region. With State-run Maharashtra State Power Generation Company Limited (MSPGCL) also helping stimulate investments in renewable energy parks, the sunny days are here to cheer up the industry. Under OA facility, any consumer can buy power from any source other than the power distribution company.

 

The new policy of OA, Green Energy Open Access Regulations, was notified by MERC which also allows consumers to set-up their own solar power park or any other non-conventional energy generation like wind, waste to energy, bio mass etc. However the stipluation is that the power generaiton sources should be located within Maharashtra and the consumers must utilise the power for self-consumption at his place of work. Further, the limit for OA power ealier was of 1 Mw or more and so it was useful only for large power consumers. Now, with minimum limit reduced to 100 Kw or more, all consumers within this sanctioned load are eligible for OA power, said Saket Suri, Director, All India Renewable Energy Association. With the new policy, consumer can also go for their own non-renewable energy (solar) with own investment or under Group Captive mode, which is another attractive feature.

 

This would help in reducing the overhead charges for OA, as now cross subsidy charge and additional surcharge is not applicable for such consumers, said Sudhir Budhay, Advisor, AIREA, while talking to The Hitavada. Budhay felt that due to reduction in OA power demand to 100 Kw, it stands to benefit the mid-sized power consumers who would happily opt for the same. Especially, Hotels, Multi-speciality hospitals, Radiology & CT Scan centres, Malls, factories, cold storages, pumping stations, STP, jack wells, street lights, IT companies, Data Centres, large showrooms, workshops, EV charging stations are likely to benefit with reduction in OA power demand as their sanctioned load in within the notified new range. To make the policy further attractive, MERC has further liberalised policy to accommodate consumers less than 100 KW also by way to aggregating multiple locations of the same consumer. The only condition under this is that aggregate total of sanctioned load should exceed 100 KW. In such a case, OA charges will be per application and not per consumer as was the rule in the earlier case.

 

As and when multiple locations are connected to single source of solar power generation i.e. in case of OA with multiple connections of the same consumer, the priority and ratio of power adjustment needs to be specified in the application. This provision can be used by chain of stores, multiple branches of the same entity/company/bank. Means within a short term, the chain stores can slash their power bills substantially and this can bring down their overhead charges significantly. These savings on power bills will help in faster turnaround for big investors and would greatly benefit the economy further. Lighted hoardings owned by same company at multiple locations can also be benefited from this. Now sanctioned load is not the limit if consumer availing OA from non-conventional sources and they can draw power more than the sanctioned load also subject to resultant power flow. Generation of OA is adjusted simultaneously at the consumption end. In case excess generation takes place, it can be banked and availed to offset his power consumption in night from 10 pm to 6 am next day after deducting 8 % banking charges. Excess unutilised bank energy will laps at the end of banking period, states the notification of MERC.

 

The notification also covers existing Net metered consumers and they can also opt for OA and cover their additional consumption. Consumers with 100 Kw and above should make a separate application and those with less than 100 KW connections can form a group to qualify the 100 kw sanctioned load criteria and they needs to apply separately. Single connection with 100 Kw or above cannot club his less than 100 Kw consumption locations in single application, Budhay mentioned.