The Rajasthan Electricity Regulatory Commission (RERC) recently dealt with a petition filed by three distribution companies (Discoms) seeking amendments to regulations governing renewable energy captive power plants. These Discoms argued that the current limit on the maximum permissible capacity for such plants—set at 100% of a consumer’s contract demand—should be raised to 200%, aligning with the Rajasthan Chief Minister’s 2024-25 budget announcement aimed at encouraging renewable energy generation.
The petition also proposed revisions to banking regulations. Presently, renewable energy plants may bank up to 25% of the energy injected into the grid or 30% of their monthly electricity consumption, whichever is higher. The petitioners sought to simplify this, allowing banking up to 30% of total monthly consumption while retaining restrictions for plants supplying power to third parties or those without bi-directional meters.
The petition emphasized that these amendments would not apply to net-metering or net-billing systems under different regulatory frameworks. It also highlighted the need for system studies by transmission and distribution utilities to ensure grid compatibility. Consumers would bear costs for any necessary grid upgrades to accommodate increased capacity.
While the Commission recognized the petitioners’ intent to implement the Chief Minister’s renewable energy vision, it determined that such amendments require adherence to the formal rule-making process prescribed under the Electricity Act, 2003. Furthermore, the issues raised are already being considered under draft regulations for Green Energy Open Access, which are in the public consultation stage.
Ultimately, the Commission decided to treat the petition as input for these broader regulatory efforts. The petition was dismissed, with the Commission emphasizing the importance of a structured and inclusive process for amending regulations.
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