DERC eases rules for businesses to buy green power | Delhi News


DERC eases rules for businesses to buy green power

New Delhi: Delhi Electricity Regulatory Commission (DERC) has relaxed the norms for commercial and industrial consumers seeking to source renewable energy, a move aimed at widening the adoption of green power in the capital.Under the revised regulations, consumers will no longer be required to be connected at 11 kV or above to procure renewable energy through the open access mechanism, which allows businesses to purchase electricity generated from renewable sources instead of depending entirely on conventional power supplied by their local distribution company.According to a gazette notification issued by DERC, commercial and industrial consumers with a sanctioned load or contracted demand of at least 100 kW will now be eligible for green energy open access, irrespective of the voltage level at which they receive power. This means that a factory can buy green energy even if its connection is below 11 kV, provided it has a sanctioned load or contracted demand of at least 100 kW.The amendments also make it easier for businesses to develop captive renewable energy projects for their own consumption. A captive renewable energy project is a solar or wind power plant that a business sets up to produce electricity for its own use, rather than mainly to sell electricity to other people.Earlier, the capacity of a captive renewable energy project was linked to the consumer’s sanctioned load. The revised rules have removed this restriction, allowing businesses to set up projects based on their energy requirements.For instance, a factory can now establish a solar power plant with a capacity higher than its sanctioned load without being constrained by the earlier limit.Officials said the changes would encourage greater investment in renewable energy, reduce dependence on conventional power sources and help lower greenhouse gas emissions. Increased access to green power could also help businesses manage energy costs over the long term.The amendments have been issued under the powers conferred on DERC by the Electricity Act, 2003, and will come into force from the date of publication in the official gazette.



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