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Madhya Pradesh Lays Out Banking SOP for Green Energy Open Access Consumers

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					</table>The Madhya Pradesh Electricity Regulatory Commission (<a href="https://mperc.in/" target="_blank" rel="noopener">MPERC</a>) has issued a standard operating procedure (SOP) governing the banking of power by green energy open access (GEOA) consumers in the state.
The SOP allows eligible consumers to bank surplus renewable energy monthly and utilize it during the following two months, creating a rolling three-month banking cycle. Any unutilized energy will lapse at the end of the applicable cycle unless an extension is approved.
The permissible banked energy in a month will be capped at 30% of the consumer&#8217;s total monthly electricity consumption from the distribution licensee, subject to technical feasibility. If surplus generation exceeds the ceiling, the eligible energy will be reduced proportionately across time blocks.
An 8% in-kind banking charge will be deducted from the eligible surplus energy. The distribution licensee (DISCOM) or MP Power Management Company (MPPMCL) can also recover additional monetary charges if the actual energy-related cost of returning the banked power exceeds the monetary value assigned to the energy eligible for banking.
The deducted energy becomes the property of the DISCOM or MPPMCL. Such additional costs will be subject to annual reconciliation and MPERC approval.
For long and medium-term open access, consumers must apply for banking at least 15 days before the proposed commencement date and submit prescribed documents, including connectivity agreements, applicable power agreements, meter testing reports, generator consent, and a no dues certificate. Short-term open access consumers must submit their banking request along with their open access application.
Banking will commence from the date the associated renewable energy generator starts injecting electricity into the state grid, as specified in the GEOA consumer&#8217;s application.
The DISCOM will calculate surplus energy for every 15-minute time block by comparing renewable electricity injected, after applicable transmission and distribution losses, with the GEOA consumer&#8217;s actual consumption.
Consumers may seek an extension of a single banking cycle once during a financial year. The request must be submitted within three days after the end of the second drawal month. Any extension requires technical feasibility approval and cannot continue beyond the end of the financial year.
Associated renewable energy generators will be entitled to Renewable Energy Certificates (RECs) to the extent of banked energy that lapses during the banking cycle. GEOA consumers availing the banking facility will not be eligible for net metering arrangements.
The Commission also established restrictions based on Time-of-Day periods. Energy banked during peak periods can be adjusted against peak or off-peak consumption. Energy banked during off-peak periods can only be used during off-peak periods.
The DISCOM must provide consumers with 15-minute block-wise banking information within the first three working days following the banking month. Consumers must schedule the utilization of banked electricity. When electricity from multiple banking cycles is available, energy from the earlier cycle will receive settlement priority.
After the first drawal month, the DISCOM must provide details of any remaining unadjusted banked energy within the first seven working days of the second drawal month. The consumer must then submit a 15-minute time-block-wise schedule for utilizing the remaining banked energy during that month.
MPERC also provided for an additional monetary banking cost. MPPMCL or the DISCOM must calculate the actual incremental energy-related cost attributable to arranging power for returning banked electricity. Fixed charges, sunk costs, avoidable penalties, inefficient procurement costs, and costs unrelated to returning banked electricity must be excluded.
The additional banking cost will equal the actual eligible cost of returning banked energy minus the monetary value assigned to the energy eligible for banking. If the difference is zero or negative, no additional charge will apply.
MPPMCL or the DISCOM must calculate the additional monetary charges for returning banked energy on a monthly basis. The charges will subsequently be reconciled at the end of each financial year based on the actual cost of power purchased to return banked energy.
The additional cost can be claimed through a separate petition along with the relevant true-up petition. The claim may also include applicable carrying cost, if any. Recovery from GEOA consumers will require the Commission&#8217;s approval and will correspond to the actual net banked energy returned during the financial year.
In February 2026, MPERC had <a href="https://www.mercomindia.com/madhya-pradesh-amends-open-access-rules-clarifies-billing-mechanism?" target="_blank" rel="noopener">amended</a> its intra-state open access regulations, introducing changes to the energy accounting and billing framework for open access consumers. The amendments clarified the priority for adjusting electricity from different sources, the treatment of surplus energy, and the billing mechanism applicable to consumers procuring power through open access.
Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.

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					</table>Himachal Pradesh State Load Dispatch Centre (<a href="https://hpsldc.com/" target="_blank" rel="noopener">HPSLDC</a>) has issued the draft procedure for the grant of short-term green energy open access (GEOA) through intrastate transmission systems.
Eligible entities must be consumers with a contracted demand or approved load of at least 100 kW, either through a single or multiple connections aggregating at least 100 kW. These multiple connections must be located in the same electricity division of a distribution licensee.
Captive consumers are exempt from the eligibility requirement for contracted demand or approved load, whether through a single or multiple connections.
HPSLDC, which will be the nodal agency for registration of entities intending to avail power, has submitted the draft procedure for short-term GEOA to the Himachal Pradesh Electricity Regulatory Commission (HPERC).
According to the draft procedure, HPSLDC must issue the no-objection certificate/standing clearance for entities to avail power from the intrastate GEOA projects.
All entities willing to avail of GEOA must be registered on the GEOA portal of the central nodal agency. They must also seek the concurrence of the transmission and/or distribution licensee for availing of GEOA on a short-term basis.
In the case of intrastate short-term open-access transactions, the injecting and drawee entities must be located within the state load dispatch center’s control area.
HPSLDC will process the application within seven working days for a new grid-connected entity and within three working days for an existing grid-connected entity.
Projects will be curtailed in the following order: Short-term open access, short-term green energy open access, medium-term open access, medium-term green energy open access, long-term open access, and long-term green energy open access.
The eligible entity must have the required communication/telemetry system in place to facilitate real-time, seamless data communications/orders/information from the SLDC.
The metering will be done in accordance with the provisions of the Central Electricity Authority (Installation and Operation of Meters) Regulations, 2006. The meter must communicate the various energy parameters to SLDC in real time via the Automatic Meter Reading facility.
Green Energy Open Access Charges
The application for scheduling short term open access green energy will be in accordance with the HPERC (Short Term Open Access) Regulations, 2010.
The operating charges will be as per the HPERC (Short Term Open Access) Regulations, 2010.
The cross-subsidy charge, additional surcharge, standby facility, and charges, and banking facility and charges will be as per the HPERC (Terms and Conditions for Green Energy Open Access and Banking) Regulations, 2024.
The Commission will determine the transmission and wheeling charges in its multi-year tariff/aggregate revenue requirement (ARR)/any other order.
If a dedicated transmission system is developed and used for GEOA, these charges will be worked out by the transmission licensee and must be approved by the Commission. GEOA consumers will bear the charges until the surplus capacity is allocated and used for any other persons/purposes.
The Commission will determine the intra-state transmission and distribution losses in its multi-year tariff (MYT)/ARR/any other order.
The Deviation Settlement charges will be as per HPERC (Deviation Settlement Mechanism and Related Matter) Regulations, 2024.
The reactive energy charges will be as per the Himachal Pradesh Electricity Grid Code.
Collection and Discharge of Charges
HPSLDC will raise the operating charges and transmission and wheeling charges to the concerned entities, and they must be deposited within seven days of the bill&#8217;s issuance.
The collected transmission and wheeling charges will be disbursed to the concerned transmission and/or distribution licensee.
To raise cross-subsidy charges, additional surcharges, standby charges, and banking charges, HPSLDC will also provide the distribution licensee with a monthly energy statement of consumers availing short-term GEOA.
The DISCOM must raise the cross-subsidy charges, additional surcharges, standby charges, and banking charges, as applicable, approved by the Commission from time to time in its MYT/annual performance review or any other order.
The Deviation Settlement Charges shall be raised and collected as per HPERC (Deviation Settlement Mechanism and Related Matters, Regulations, 2024.
The Reactive Energy Charges will be raised in accordance with the Grid Code.
Penalties
In case of default in payment of the application fee or the charges specified under these regulations, the nodal agency, either on its own or at the request of the distribution licensee, may not schedule the transaction, cancel the scheduling of already scheduled transactions, or refuse to enter any application of these entities in the future until the defaulted amount is paid off.
The entity that defaults on payment of the charges must pay a penalty of 0.04% for each day of default.
In January 2026, HPERC <a href="https://mercomindia.com/hperc-sets-levelized-tariffs-for-solar-projects-up-to-5-mw-capacity" target="_blank" rel="noopener">notified</a> a levelized tariff of ₹3.4 (~$0.037)/kWh for solar projects with a capacity of over 3 MW and up to 5 MW in urban and industrial areas for the financial year 2027.
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Himachal Proposes Short-Term Green Energy Open Access Through InSTS Systems

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					</table>Consumers with a contracted or sanctioned load of 100 kW and above, including those combining multiple connections to reach 100 kW within the same electricity division of a power distribution company (DISCOM), can procure power through green energy open access (GEOA), according to <a href="https://www.tserc.gov.in/" target="_blank" rel="noopener">Telangana State Electricity Regulatory Commission</a> (Terms and Conditions of Open Access), Regulation, 2024.
The regulations align with the green energy open access regulations <a href="https://www.mercomindia.com/no-load-limit-energy-open-access-captive-consumers" target="_blank" rel="noopener">issued</a> by the Ministry of Power last June.
Categorization of Green Energy Open Access
GEOA consumers are categorized based on how long they use the intra-state transmission or distribution system, both within the same distribution system and within the state but in different distribution systems or different states.
Long-term open access refers to the permission to utilize the state&#8217;s transmission and distribution system for more than seven years but not exceeding 25 years.
Medium-term refers to the permission to utilize the state&#8217;s transmission and distribution system for over a month but not more than seven years.
Short-term refers to the permission to utilize the state&#8217;s transmission and distribution system for less than one month.
Procedure for grant of access
GEOA applicants must submit a complete application using the central portal. The application is forwarded to the State Nodal Agency (SNA) by the Central Nodal Agency for verification.
Captive consumers must submit a security deposit by April 30 each year in the form of an unconditional and irrevocable bank guarantee. This deposit should be equivalent to 51% of their captive consumption for one year. It serves as a payment security mechanism for estimated charges like cross subsidy surcharge, additional surcharge, and any other charges as decided by the Commission.
The application fee is ₹5,000 (~$60) for long-term and medium-term transactions and ₹1,000 (~$12) for short-term transactions.
Those seeking long-term transactions must commission their projects or units within 12 months from the agreement date to prevent corridor blocking.
Applications for medium-term and short-term GEOA for power projects or generating units that have not yet been commissioned must be submitted no earlier than two months before the expected commissioning date to avoid unnecessary blocking of transmission or distribution corridors.
Applicants for long-term and medium-term transactions must accompany their application with a ₹5,000 (~$60)/ MW bank guarantee, which is returned upon signing the wheeling agreement but encashed if the application is withdrawn before this.
If there is a significant change in the injection point location or power quantity (more than 10%), a new application must be submitted for the entire capacity. Relevant documents, fees, and a bank guarantee for additional capacity are required for long-term access. The applicant retains access to their original allotment if the network cannot accommodate the extra capacity.
If an application is rejected due to deficiencies, any fees and guarantees submitted are returned, and the applicant may reapply after addressing the issues. Until GEOA is granted, applicants cannot inject energy into the licensee&#8217;s network.
Energy injected before agreement submission incurs an average power purchase cost rate of 75% of the generic tariff charges. Failure to execute the agreement within the specified time cancels the granted GEOA.
Application details and status are made public on the SNA&#8217;s website.
Procedure for Applying for Day Ahead Transactions
The applicant must apply to the central portal for day-ahead GEOA transactions.
SNA will review applications received from the central agency before 1:00 PM on the day before scheduling day-ahead transactions. It will check for system congestion and notify applicants via email or fax by 3:00 PM on the same day, confirming approval if there is no existing PPA for the requested capacity under open access.
The applicant must pay a non-refundable processing fee of ₹1,000 (~$12) for each transaction. However, the open access will only be implemented if the applicant pays the specified charges outlined in these regulations and orders issued by the Commission before 5:00 PM on the day before scheduling for day-ahead transactions.
Consumption criteria
For units marked for captive use, their consumption is checked based on the net electricity generated by the power station. This means the total electricity produced minus any extra electricity used for auxiliary purposes.
The net electricity generated will be determined annually at the end of the year.
Verification criteria for various types of captive consumers will be as follows:
<ul>
<li>The electricity used for self-consumption should be at least 51% of the net electricity generated annually for single captive consumers, partnerships, and limited liability partnerships.</li>
<li>For associations of persons, the electricity consumed for captive use should be at least 51% of the net electricity generated annually. Each member&#8217;s share should match their ownership in the power project, with a permissible variation of 10%.</li>
<li>Members of a cooperative society must collectively consume not less than 51% of the net electricity generated annually.</li>
<li>Special purpose vehicles must consume not less than 51% of the net electricity generated annually.</li>
</ul>
Shareholding criteria
A single captive consumer must hold at least 26% of the equity share capital with voting rights throughout the year. A certificate from the company secretary is required to support the shareholding.
For partnership firms or limited liability partnerships, the partners&#8217; ownership in the captive project should be not less than 26% proprietary interest and control over the generating station or power project annually. They must have a certificate from the company secretary to support their shareholding.
In the case of associations of persons, the captive consumer should hold an aggregate of not less than 26% of the ownership or paid-up equity share capital with voting rights throughout the year. They must have a certificate from a registered chartered accountant to support their shareholding.
Members of cooperative societies should hold 26% of the ownership annually. They must have a certificate from the district registrar of the cooperative society to support their shareholding.
In the case of special purpose vehicles, the captive consumer must hold an aggregate of not less than 26% of the proportionate paid-up equity share capital with voting rights of the units identified for captive use. They must have a certificate from a registered chartered accountant to support their shareholding.
Solar and wind-based or mini-hydel open access generators of contracted capacity up to 5 MW shall not be required to provide a day-ahead wheeling schedule, and the actual electricity injected by them will be deemed to be the scheduled energy.
Open Access Charges
Charges
The Commission has set the following charges for green energy open access:
<ul>
<li>Transmission Charges</li>
<li>Wheeling Charges</li>
<li>Cross-subsidy Charges (If a user purchases green energy from a renewable energy-based generating plant, the charges won&#8217;t increase by more than 50% for twelve years from the plant&#8217;s operation start date. This cross-subsidy charges limit remains even if the user switches to different green energy sources during this period. If power is drawn from non-green open access sources within twelve years, the 50% cross-subsidy charges increase limit will not apply. Cross-subsidy charges don&#8217;t apply to power from Waste-to-Energy plants or when green energy is used for green hydrogen and ammonia production. Captive users supplying electricity from their own generating plants for self-use are exempt from cross-subsidy charges)</li>
<li>Additional Surcharges (Additional Surcharges will not apply to GEOA consumers if they pay fixed or demand charges. Additional Surcharges won&#8217;t apply if power comes from a Waste-to-Energy plant or if green energy is used for green hydrogen and ammonia production. AS also does not apply to electricity from offshore wind projects commissioned up to December 2032 for GEOA consumers. Additionally, Additional Surcharges don&#8217;t apply to open access consumers using their own captive power projects for power wheeling.</li>
<li>Scheduling and State Load Dispatch Center charges</li>
<li>Deviation and Reactive charges</li>
<li>Standby Charges (if applicable)</li>
</ul>
Banking 
Energy banking up to 30% of the total monthly consumption of electricity from DISCOM will be allowed.
The banking charges will be 8% of the energy banked by GEOA consumers with the DISCOM.
The banking period for energy will be one month, and any unused energy at the end of the month will expire. However, the GEOA consumer will receive renewable energy certificates for the unused energy. Energy credits will be adjusted based on the time slots designated by the Commission for tariff determination.
Energy banked during peak time slots can be used during both peak and off-peak times by paying banking charges, while energy banked during off-peak times can only be used during off-peak times.
If transmission and wheeling charges or losses were already applied when the energy was injected into the system, they will not be applied again when the energy is withdrawn.
Subscribe to Mercom&#8217;s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don&#8217;t miss any critical updates from the renewable industry.

Telangana Allows Green Open Access for Consumers with 100 kW Load

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