10 states under various stages of implementation of Green Open Access Rules (GOAR)

Green Open Access Rules (GOAR) were issued by Ministry of Power (MoP) in June 2022. The rules were hailed by the industry stakeholders as a landmark achievement which would catalyse the commercial & industrial (C&I) open access market in India.

Under the rules, the eligibility limit for availing green OA was reduced to 100 kW from 1 MW (prevalent across major states at the time), thereby increasing the OA consumer base multiple times over. In addition, GOAR provided clarity on open access charges and banking settlement. However, as electricity in India is a concurrent subject, approval and adoption of GOAR by states is also essential for its overarching impact.

Figure 1: Green OA rules adoption timeline

Source: JMK Research

Until 7th August 2023, a total of 4 states have completely adopted GOAR i.e., Karnataka, Madhya Pradesh, Haryana and West Bengal. Additionally, 5 more states (Telangana, Orissa, Rajasthan, Punjab, Gujarat) have issued draft open access regulations, in line with the original rules. Interestingly, despite not issuing any official regulations to adopt GOAR, Maharashtra Energy Regulatory Commission (MERC), while reviewing a petition in July 2023, directed all concerned authorities to comply with GOAR. MERC also notified that official regulations for the same will also be issued soon.

Figure 2: Green OA rules adoption status across states (as of 7th August 2023)

Source: JMK Research

As can be observed from the figure, 10 states (out of the total 28) are already under various stages of GOAR implementation. The implementation (or their draft issuance) of the green OA rules in big industrial states such as Maharashtra, Karnataka and Gujarat are an encouraging sign for the growth of the entire green OA market. In the coming months, it is likely that several other states will follow suit and issue their own OA guidelines in support of the GOAR.