PIB Summary- 20th May, 2023 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Green Energy Open Access Rules 2022

Why in News?
Ministry of Power & NRE (New and Renewable Energy), Government of India has chaired a meeting on Green Energy Open Access Rules 2022.

Green Energy Open Access Rules 2022

• Objective: The rules are designed to accelerate India’s renewable energy programs and contribute to the country’s target of reducing emissions by 45% by 2030, as stated in its updated Nationally Determined Contributions (NDC).
• Promotion of Green Energy: The rules facilitate the generation, purchase, and consumption of green energy, including energy from Waste-to-Energy plants.
• Uniform Renewable Purchase Obligation (RPO): A uniform Renewable Purchase Obligation (RPO) is established, and it includes the inclusion of Green Hydrogen and Green Ammonia to fulfill the RPO requirements.
• Green Open Access: Green Open Access is allowed for any consumer, enabling them to access renewable power through open access arrangements.
• Reduced Transaction Limit: The transaction limit for green energy through open access is reduced from 1 MW to 100 kW, making it accessible for small consumers to procure renewable power.
• Captive Consumers: The transaction limit would be a minimum of 100 KW for non-captive consumers.
  • There is no transaction limit for captive consumers, who are individuals with limited or no choice but to purchase a specific product or service due to market conditions, lack of alternatives, or contractual obligations.
• Supply of Green Power: Consumers have the right to demand the supply of green power from Distribution Companies (Discoms). Discoms are obligated to procure and supply green power to eligible consumers.
• Timely Approval: Approval for Green Open Access must be granted within 15 days. If not granted within this timeframe, it will be deemed to have been granted.
• Voluntary Purchase of Green Power: Commercial and industrial consumers have the option to voluntarily purchase green power.
• Green Certificates: Consumers who consume green power will be awarded Green Certificates, and they will be provided with necessary facilitation.

Significance of the Green Energy Open Access Rules 2022

• The rules are expected to encourage smaller industries, commercial consumers, and large households to transition to green energy sources.
• By facilitating access to green energy, more consumers can contribute to sustainable development.

Rapid Growth in Solar Open Access Installations

• In 2021, India witnessed a significant increase in solar open access installations, adding 1.2 GW of capacity.
• This growth continued in the first quarter of 2022, with an additional 513 MW.
• The Green Open Access Rules 2022 are expected to further accelerate this momentum.

Contribution to Renewable Energy Targets

• The implementation of these rules aligns with India’s commitment to achieving 500 GW of non-fossil fuel energy by 2030.
• By promoting green energy adoption and expanding the use of open access arrangements, the rules play a crucial role in meeting these ambitious targets.

Indian Renewable Energy Development Agency (IREDA)

Why in News?
The Ministry of Finance recently invited bids to select an advertising agency for listing and partial disinvestment in the Indian Renewable Energy Development Agency (IREDA).

Indian Renewable Energy Development Agency (IREDA)

• IREDA was established in 1981 as a specialized non-banking finance agency.
• It is a Public Limited Government Company functioning as a Non-Banking Financial Institution.
• Recognized as a “Public Financial Institution” under section 4 ‘A’ of the Companies Act, 1956.
• Registered as a Non-Banking Financial Company (NBFC) with the Reserve Bank of India (RBI).

Purpose and Scope

• IREDA focuses on promoting, developing, and providing financial assistance for projects related to renewable energy sources and energy efficiency/conservation.

Objectives

• Financial Support: IREDA aims to provide financial assistance for specific projects and schemes involved in electricity and/or energy generation through new and renewable sources.
• Leading Role: IREDA strives to maintain its position as a leading organization in offering efficient and effective financing for renewable energy and energy efficiency/conservation projects.