DERC removes voltage restriction for green energy access, opening doors for more Delhi businesses

New Delhi: The Delhi Electricity Regulatory Commission (DERC) has relaxed eligibility conditions for commercial and industrial consumers seeking to purchase renewable electricity, removing a voltage-related restriction that had limited access to green power in the national capital.

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The regulator has amended the DERC (Terms and Conditions for Green Energy Open Access) Regulations, 2024, allowing consumers with a contracted demand or sanctioned load of at least 100 kilowatts (kW) to procure green electricity irrespective of the voltage level of their existing power connection.

The amendment removes the earlier requirement that eligible consumers must be connected at 11 kilovolts (kV) or above, potentially enabling more businesses to source renewable energy directly from generators.

Wider access for businesses

Under the revised regulations, commercial and industrial consumers meeting the 100 kW threshold can access renewable electricity through a single connection or multiple connections within the service area of the same distribution company (discom).

“The Consumer who has a contracted demand or sanctioned load of 100 KW or more, either through a single connection or through multiple connections located in the area of the same discom, will be eligible for Open Access for sourcing Green Energy under these Regulations," the DERC notification stated.

The change is particularly significant for businesses that meet the prescribed electricity demand threshold but operate on connections below 11 kV.

Previously, such consumers faced restrictions on accessing green electricity through the open-access mechanism despite having sufficient power requirements.

Captive power projects get relief

The amendment also relaxes conditions for captive renewable energy generation, allowing consumers greater flexibility in developing green power projects for their own use.

According to the revised provisions, there will be no load limitation linked to a consumer's sanctioned load with the discom for setting up green energy projects for captive consumption.

A corresponding relaxation has been introduced for consumers with captive generating plants seeking green energy open access.

These changes could encourage businesses to invest in their own solar and other renewable energy installations rather than relying entirely on electricity supplied by distribution companies.

What changes for Delhi's power consumers?

The Green Energy Open Access Rules, 2022, provide a framework for eligible consumers to procure renewable electricity directly from generators instead of sourcing their entire electricity requirement through conventional discom supply arrangements.

DERC's latest amendment removes an important eligibility barrier, potentially expanding participation among commercial establishments, offices, institutions and industrial units that meet the prescribed demand threshold.

However, removing the voltage restriction does not automatically guarantee cheaper electricity or unrestricted access to renewable power. Consumers will still need to comply with applicable open-access procedures, network availability requirements and relevant charges.

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The financial attractiveness of green energy procurement will depend on factors including transmission and wheeling charges, applicable surcharges and the cost of renewable electricity.

For Delhi, where space constraints can limit large-scale renewable generation within the city, easier access to externally generated green electricity could provide businesses with another route to reduce their dependence on conventional power.

The amendment represents a regulatory step towards wider renewable energy adoption. Its actual impact, however, will depend on how efficiently eligible consumers can secure approvals, access the electricity network and obtain competitively priced green power.

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