The Haryana Electricity Regulatory Commission (HERC) has issued a regulatory directive instructing state distribution licensees—Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL) and Uttar Haryana Bijli Vitran Nigam Limited (UHBVNL)—to process renewable energy banking applications concurrently alongside Long-Term Open Access (LTOA) applications. Under this order, HERC determined that energy banking will become effective from the exact date that the LTOA becomes operational and the official Charging Code is allotted.
Detailed Breakdown: Parallel Application Processing and Effectiveness Conditions
Background & Regulatory Context
- Petition Overview: The regulatory order was issued on August 26, 2026, in Petition No. 34 of 2026 following an August 5, 2026 hearing in Panchkula. The petition was jointly filed against respondents DHBVNL and UHBVNL by the Distributed Solar Power Association (DISPA) and seven clean energy Special Purpose Vehicles (SPVs): CMES Power 2 Pvt. Ltd., Clean Max Maya Pvt. Ltd., Clean Max Terra Pvt. Ltd., Clean Max Sirius Pvt. Ltd., Clean Max Decimus Pvt. Ltd., Clean Max Nabia Pvt. Ltd., and Clean Max Arcadia Pvt. Ltd.
- Procedural Delays in Previous Framework: Under the legacy framework governed by Annexure-III of the HERC (Green Energy Open Access) Regulations, 2023, developers were subjected to a mandatory sequential approval path requiring complete LTOA approval prior to submitting a banking application. The LTOA approval process routinely spanned 60 to 90 days. During this intermediate period, power injection liabilities and associated transmission/wheeling charges commenced immediately upon LTOA operationalization, while banking authorization remained unapproved pending separate application review.
- Reported Financial and Energy Losses: The petitioners demonstrated that this sequential lag created substantial financial burdens, including approximately ₹3.40 crore in delayed refinancing costs across the SPVs. Additionally, developers documented revenue losses totaling approximately ₹5.07 crore resulting from over 1.33 crore units of un-banked renewable energy that lapsed during the intermediate administrative review periods. These figures provided the technical and financial basis for invoking the Commission’s authority to relax procedural bottlenecks.
Mechanics of Parallel Processing
- Simultaneous Submission Mandate: To eliminate intermediate operational delays, the Commission directed distribution utilities to permit renewable energy developers to submit green energy banking applications simultaneously with Open Access/LTOA applications, formally abolishing the sequential filing requirement.
Effective Date Conditions for Banking
- Cumulative Requirements: HERC established that green energy banking rights will take effect upon the fulfillment of two cumulative conditions:
- Formal operationalization of the Long-Term Open Access (LTOA).
- Official allotment of the system Charging Code.
Jurisdictional & Preliminary Objections Dismissed
- Statutory Authority Upheld: HERC dismissed preliminary objections regarding petition maintainability raised by DHBVNL and UHBVNL. The Commission affirmed its explicit regulatory powers under Sections 86(1)(e), (f), and (k) of the Electricity Act, 2003, read alongside the HERC (Conduct of Business) Regulations, confirming its jurisdiction to resolve implementation hurdles and relax procedural provisions without altering substantive statutory regulations.
- Role of Transmission Utility: HERC rejected DISCOM arguments regarding the non-joinder of Haryana Vidyut Prasaran Nigam Limited (HVPNL). The Commission ruled that HVPNL was neither a necessary nor a proper party to the proceeding, relying on written confirmation from HVPNL establishing that DHBVNL and UHBVNL are the designated state nodal agencies responsible for receiving and processing green energy banking requests.
| Previous Sequential Process | New Parallel Process |
| Trigger Mechanism: Governed by sequential filing requirements under Annexure-III of HERC GEOA Regulations, 2023. | Trigger Mechanism: Concurrent application filing permitted for both LTOA and green energy banking. |
| Approval Lag: Mandatory 60–90 day waiting period to obtain final LTOA approval before banking applications could be submitted. | Elimination of Lag: Banking applications are submitted and evaluated simultaneously alongside LTOA reviews. |
| Operational Impact: Power injection and transmission/wheeling liabilities commenced while banking remained pending, causing >1.33 crore energy units to lapse. | Operational Impact: Banking takes effect immediately upon LTOA operationalization and Charging Code allotment, preventing intermediate energy lapses. |
| Administrative Burden: Required repeated, redundant submissions of financial and legal documentation across multiple procedural stages. | Administrative Burden: Consolidated compliance process eliminating duplicate corporate and accounting documentation. |
Procedural Impact and Compliance Requirements
Mandates for DISCOMs (DHBVNL & UHBVNL)
- Concurrent Application Handling: Establish internal procedures to receive and process green energy banking applications concurrently with Open Access and LTOA filings.
- Timeline Adherence: Comply strictly with mandated regulatory timelines for processing grid connectivity, open access, and banking requests.
- Administrative Streamlining: Implement operational efficiency standards, specifically adopting a revolving file circulation mechanism among Whole-Time Directors—a Commission-sanctioned benchmark established across Haryana power utilities—to eliminate internal administrative delays and bureaucratic bottlenecks.
Streamlined Compliance for Developers
- Elimination of Duplicate Financial Statements: Removal of requirements forcing developers to submit original balance sheet documents across repeated procedural stages.
- Exemption from Specific Certifications: Rescission of demands for redundant Chartered Accountant (CA) certificates.
- Simplified Corporate Documentation: Removal of repetitive requirements for validating detailed Memorandum and Articles of Association filings.
- Reduction of Board Approvals: Exemption from submitting repeated Board Resolutions for incremental administrative steps within the same project application.
Following Petition No. 34 of 2026, the Haryana Electricity Regulatory Commission directed DHBVNL and UHBVNL to process green energy banking applications concurrently with Long-Term Open Access applications, establishing that banking rights take effect upon LTOA operationalization and Charging Code allotment while removing redundant documentation burdens for developers.
Official Source Citations & References
- Haryana Electricity Regulatory Commission (HERC) Official Web Portal
- Resource: Haryana Electricity Regulatory Commission Official Portal
- Description: Official state regulatory website hosting statutory notifications, tariff orders, petition proceedings, and green energy open access guidelines.
- HERC Green Energy Open Access Regulations Amendment Order, 2025
- Document PDF: HERC Order No. O2025025 PDF
- Details: Official amendment order (effective 25 February 2025) modifying the HERC (Green Energy Open Access) Regulations, 2023, expanding consumer eligibility (100 kW threshold), removing captive project capacity limits, clarifying DSM charges, and extending offshore wind exemptions.
- HERC Order in Case No. HERC/Petition No. 38 of 2026 & IA No. 28 of 2026
- Official Order: BEFORE THE HARYANA ELECTRICITY REGULATORY COMMISSION AT PANCHKULA (Order dated 21.09.2026)
- Parties: M/s BSL Casting v. Haryana Vidyut Prasaran Nigam Ltd. (HVPNL)
- Details: Statutory order mandating strict adherence to the 30-day timeline for grid connectivity, directing HVPNL to institute a revolving file circulation mechanism for Whole-Time Directors (WTDs), and reinforcing procedural compliance under Section 142 & 146 of the Electricity Act, 2003.
- HERC Order in Case No. HERC/Petition No. 34 of 2026
- Official Order: BEFORE THE HARYANA ELECTRICITY REGULATORY COMMISSION AT PANCHKULA (Order dated 26.08.2026)
- Parties: Distributed Solar Power Association (DISPA) & Ors. v. DHBVNL & UHBVNL
- Details: Regulatory directive clearing procedural bottlenecks in green energy banking, affirming DISCOM jurisdiction, and allowing parallel processing of open access and banking applications.
- HERC (Green Energy Open Access) Regulations, 2023 & Approved Procedures
- Statutory Framework: HERC Notification dated 24 April 2023; Procedure for Grant of Green Energy Open Access approved vide Order dated 29.11.2023 in Petition No. 35 of 2023.
- Official Portal: HERC Portal
- Details: Principal state framework establishing open access rights, banking guidelines, application workflows, and nodal agency responsibilities.
- Ministry of New and Renewable Energy (MNRE) Office Memorandum
- Government Notification: Office Memorandum No. 283/53/2026-GRID SOLAR dated 18.07.2026 (superseding O.M. No. 283/63/2025-GRID SOLAR dated 25.05.2026)
- Details: Central Ministry order extending the Approved List of Models and Manufacturers (ALMM) List-II exemption window for Open Access renewable energy projects up to 31 December 2026.
- The Electricity Act, 2003 (Central Act No. 36 of 2003)
Official Source Citations & References
- Haryana Electricity Regulatory Commission (HERC) Official Web Portal
- Resource: Haryana Electricity Regulatory Commission Official Portal
- Description: Official state regulatory website hosting statutory notifications, tariff orders, petition proceedings, and green energy open access guidelines.
- HERC Green Energy Open Access Regulations Amendment Order, 2025
- Document PDF: HERC Order No. O2025025 PDF
- Details: Official amendment order (effective 25 February 2025) modifying the HERC (Green Energy Open Access) Regulations, 2023, expanding consumer eligibility (100 kW threshold), removing captive project capacity limits, clarifying DSM charges, and extending offshore wind exemptions.
- HERC Order in Case No. HERC/Petition No. 38 of 2026 & IA No. 28 of 2026
- Official Order: BEFORE THE HARYANA ELECTRICITY REGULATORY COMMISSION AT PANCHKULA (Order dated 21.09.2026)
- Parties: M/s BSL Casting v. Haryana Vidyut Prasaran Nigam Ltd. (HVPNL)
- Details: Statutory order mandating strict adherence to the 30-day timeline for grid connectivity, directing HVPNL to institute a revolving file circulation mechanism for Whole-Time Directors (WTDs), and reinforcing procedural compliance under Section 142 & 146 of the Electricity Act, 2003.
- HERC Order in Case No. HERC/Petition No. 34 of 2026
- Official Order: BEFORE THE HARYANA ELECTRICITY REGULATORY COMMISSION AT PANCHKULA (Order dated 26.08.2026)
- Parties: Distributed Solar Power Association (DISPA) & Ors. v. DHBVNL & UHBVNL
- Details: Regulatory directive clearing procedural bottlenecks in green energy banking, affirming DISCOM jurisdiction, and allowing parallel processing of open access and banking applications.
- HERC (Green Energy Open Access) Regulations, 2023 & Approved Procedures
- Statutory Framework: HERC Notification dated 24 April 2023; Procedure for Grant of Green Energy Open Access approved vide Order dated 29.11.2023 in Petition No. 35 of 2023.
- Official Portal: HERC Portal
- Details: Principal state framework establishing open access rights, banking guidelines, application workflows, and nodal agency responsibilities.
- Ministry of New and Renewable Energy (MNRE) Office Memorandum
- Government Notification: Office Memorandum No. 283/53/2026-GRID SOLAR dated 18.07.2026 (superseding O.M. No. 283/63/2025-GRID SOLAR dated 25.05.2026)
- Details: Central Ministry order extending the Approved List of Models and Manufacturers (ALMM) List-II exemption window for Open Access renewable energy projects up to 31 December 2026.
- The Electricity Act, 2003 (Central Act No. 36 of 2003)
- Statutory Provisions: Sections 86(1)(e), (f), (k); Section 94; Section 142; Section 146.
- Details: Governing statutory legislation providing regulatory powers, dispute resolution mechanisms, and penal provisions for non-compliance with commission orders.
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