Key Findings
The Green Energy Open Access (GEOA) Rules, 2022 brought in clarity on critical aspects like consumer eligibility, electricity banking and the various charges associated with open access, such as banking and standby charges.
The GEOA Rules have gained significant momentum, with almost all states in India having adopted them.
Poor coordination between state nodal agencies and DISCOMs hinders the functioning of the Green Open Access Registry portal.
Since the release of the GEOA Rules, the Commercial and Industrial (C&I) renewable energy open-access market in India has witnessed remarkable growth. The C&I open access market’s annual installed capacity grew by 90.4% between FY2023 and FY2024.
Executive Summary
The Green Energy Open Access (GEOA) Rules, implemented by the Ministry of Power in June 2022, introduced reforms to enhance access to renewable energy for India’s commercial and industrial (C&I) consumers. These rules clarified various aspects like the eligibility criteria, banking provisions and associated charges while providing exemptions from surcharges. The eligibility limit for open access was reduced from 1 megawatt (MW) to 100 kilowatts (kW), expanding access to smaller consumers.
Subsequently, the Ministry of Power issued two amendments in 2023 to strengthen the GEOA framework. These amendments enabled demand aggregation through multiple connections while also clearing the ambiguity surrounding banking charges and settlement periods.
As of November 2024, 28 out of 29 Indian states and Union Territories have adopted the GEOA initiative, either by implementing or drafting regulations. Kerala remains the only state without GEOA provisions, leaving a gap in the otherwise comprehensive rollout.
The GEOA market has attracted new developers such as Kalpa Power, JSW Energy and Ampyr Energy, in addition to established companies like ReNew Power and Avaada Energy. The regulatory support provided by GEOA has spurred rapid growth in the C&I open access market, achieving a compound annual growth rate of 46% from the fiscal year (FY) 2022 to FY2024, with cumulative capacity reaching 18.7 gigawatts (GW) by the end of FY2024. Gujarat and Rajasthan have been at the forefront of this growth, accounting for more than 70% of recent installations.
The GEOA Rules have made significant strides in expanding renewable energy access for C&I consumers in India. Yet, several challenges persist. State deviations from central GEOA Rules have created inconsistencies, particularly around the eligibility criteria, approval timelines and charges. While most states align with the central 100kW threshold for eligibility, states like Tamil Nadu, Karnataka and Uttar Pradesh do not adhere to this. Approval processes vary widely across regions due to procedural bottlenecks and the reluctance of electricity distribution companies (DISCOMs) to extend timelines beyond the specified 15-day approval period. Additional state-imposed charges, such as Karnataka’s facilitation fee and Rajasthan’s Renewable Energy Development Fund, further increase project costs.
The Green Open Access Registry (GOAR) portal, created as a single-window platform for open-access registration and applications, faces significant limitations that hinder its effectiveness. There is no synchronisation between State Load Dispatch Centers (SLDCs) and DISCOMs, leading to delays. Furthermore, the portal occasionally struggles to recognise group captive models.
Despite these challenges, the GEOA market offers opportunities in potentially untapped areas. In particular, micro, small and medium enterprises (MSMEs) are a potential market, given that GEOA’s revised eligibility threshold has opened the door for smaller enterprises. While interest from MSMEs is rising, adoption remains limited as the relatively small project sizes have attracted limited attention from developers.
To fully unlock GEOA’s potential, immediate recommendations include enhancing the GOAR portal by improving DISCOMs and SLDCs integration. Temporarily lifting the Approved List of Models and Manufacturers mandate would also reduce module costs and speed up project execution. In the near term, creating a more stable regulatory environment is crucial. This can be achieved by standardising policies on banking charges and settlement periods, and extending Inter-State Transmission System (ISTS) support for better connectivity. For long-term impact, expanding the energy exchange market through policy incentives can encourage participation, while innovative financing structures like infrastructure investment trusts (InvITs) and bonds can address funding gaps.
Additionally, the underutilised ISTS could help C&I consumers access affordable power in states with limited renewable energy options. Extending the ISTS waiver beyond 2025 would ensure that transmission costs remain competitive and attract new investments.
While the GEOA Rules have widened renewable energy access, overcoming challenges and seizing untapped opportunities are crucial for sustaining and accelerating growth. By implementing strategic recommendations and fostering a supportive regulatory and financial environment, GEOA can be pivotal in advancing India’s renewable energy goals and ensuring a greener, more sustainable future for businesses.
