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Andhra Pradesh Electricity Regulatory Commission Proposes Revisions to Green Energy Open Access Framework

The Andhra Pradesh Electricity Regulatory Commission (APERC) has released the draft second amendment to the Andhra Pradesh Electricity Regulatory Commission (Green Energy Open Access, Charges, and Banking) Regulation, 2024 (Regulation No. 3 of 2024). The proposed changes aim to provide greater clarity on the regulatory treatment of hybrid renewable energy projects, particularly as such projects become more prevalent across the state.

The draft follows an earlier proposal that sought to eliminate the requirement for a single interconnection point for hybrid systems. It introduces clearer definitions and outlines provisions related to scheduling, metering, settlement, deviation handling, and the applicability of wheeling charges for non-co-located hybrid renewable projects. Once finalized and notified in the Gazette, the amendments will come into force across Andhra Pradesh.

Definition and Capacity Norms

Under the draft, hybrid renewable energy projects are defined as those generating electricity from a combination of renewable sources connected either at the same or different interconnection points. At least one renewable source must have a rated capacity of no less than 25% of the other source. Additionally, every 1 MW of contracted wind-solar hybrid capacity must achieve a minimum capacity utilization factor (CUF) of 40%.

Treatment of Non-Co-Located Hybrid Projects

Non-co-located hybrid systems will be considered a single generating project for regulatory purposes. The total hybrid capacity will form the basis for scheduling, although each source must submit separate schedules. The combined scheduled generation from individual components cannot exceed the total project capacity during any time block. Any excess scheduling beyond the approved capacity will be treated as inadvertent energy.

Energy injected from the hybrid project will be scheduled source-wise at respective interconnection points for settlement, deviation accounting, and forecasting purposes. Connectivity for each source will be granted based on standard technical feasibility assessments by transmission utilities or DISCOMs, and individual components may be located anywhere within Andhra Pradesh.

Metering and Charges

The draft mandates that interface meters for each non-co-located component be installed at its respective grid substation interconnection point.

APERC has also proposed exemptions from distribution and wheeling charges for eligible clean energy and renewable manufacturing projects availing open access under Regulation No. 3 of 2024. The exemptions will apply to projects commissioned or achieving financial closure within approved timelines and where energy injection or drawal occurs at the same voltage level within the state, irrespective of DISCOM jurisdiction.

Distribution companies (DISCOMs) will be permitted to seek reimbursement of exempted charges from the state government under Section 65 of the Electricity Act. However, if different components of a hybrid project are connected at varying voltage levels, wheeling charges and loss allocations will be applied separately to each component.

Through these proposed amendments, APERC aims to establish a clearer, more structured regulatory framework for hybrid renewable energy projects operating under the green energy open access regime.