GERC Proposes Fifth Amendment to Extend Green Energy Open Access Banking Charges at ₹1.50/kWh Until August 31, 2026

The Gujarat Electricity Regulatory Commission (GERC), headquartered in Gandhinagar, has issued a draft fifth amendment to the Green Energy Open Access (GEOA) Regulations, 2024, along with a corresponding Draft Explanatory Memorandum. The proposal maintains the interim banking charge at ₹1.50/kWh until August 31, 2026, or until the notification of revised charges. This extension provides the Commission additional time to complete a comprehensive study involving the collection and scientific analysis of voluminous data from utilities.

Core Regulatory Update

The technical specifications of the proposed draft fifth amendment are as follows:

• Regulations Targeted for Amendment: Regulation 1(4) and Regulation 17.6(viii) of the GERC (Terms and Conditions for Green Energy Open Access) Regulations, 2024.
• Proposed Rate: ₹1.50 per unit.
• Proposed Expiration Date: August 31, 2026 (or an earlier date if the Commission notifies revised charges through a separate regulation).
• Effective Period: The charge remains effective from the date of the notification of the Principal Regulations.

Timeline for Stakeholder Consultation

Interested parties must submit comments or suggestions to the Commission in Gandhinagar in response to the released draft explanatory memorandum.

Upcoming Regulatory Deadlines

Context: Ongoing Banking Charge Framework Study

The Commission has commissioned a technical study to establish a long-term framework for banking charges. The GERC stated that the study remains in progress because the assignment requires the collection, compilation, and scientific analysis of voluminous data from utilities. The proposed extension to ₹1.50/kWh is intended to avoid a regulatory vacuum while this analysis is finalized. This approach mirrors the logic applied by the Coram—comprising Chairman Pankaj Joshi, Member Hiren Shah, and Member Jatin N. Thakkar—during the previous amendment cycle, which emphasized that the determination of a permanent framework requires a detailed study followed by public consultation.

Historical Context of Banking Charge Extensions

The operative period for the banking charge has been extended through several administrative milestones since the Principal Regulations were notified.

Scope and Limitations of the Amendment

The current proceedings for the fifth amendment are limited to extending the operative period of the interim charge and do not include a substantive review of the underlying methodology. The Commission stated that it will not “mechanically adopt” frameworks from other states, such as the 8% in kind of energy banked model recommended by the Forum of Regulators and supported by certain stakeholders.

Furthermore, the Commission has reserved judgment on broader issues, including technology-wise differentiation of charges. Stakeholders have argued that Wind-Solar Hybrid projects possess higher Capacity Utilisation Factor (CUF) and Plant Load Factor (PLF) characteristics compared to standalone solar projects, warranting separate rates. These technical considerations, along with the proposed 8% in kind methodology, are deferred to the separate exercise for the finalization of the banking charge framework.