Introduction:
In a significant move aimed at fostering a vibrant renewable energy ecosystem, Karnataka Electricity Regulatory Commission (KERC) has officially announced the Karnataka Open Access Regulations, 2025. These new open access regulations come after the Karnataka High Court’s decision to strike down the previous rules from 2022, signaling a fresh start aligned with national energy policies and the interests of all stakeholders.
For businesses and individuals in Karnataka looking to embrace renewable energy sources like solar energy, these open access regulations are a crucial development. They outline the framework for accessing the state’s transmission and distribution networks to source clean power, potentially leading to greater energy independence and cost savings.
Why New Open Access Regulations?
The Karnataka High Court’s directive necessitated the creation of these new open access regulations. The court emphasized the need for rules that are in harmony with the National Electricity Policy and the tariff policy, while also taking into account the diverse needs and interests of all players in the energy sector.
This includes renewable energy generators, open access consumers, and distribution licensees in Karnataka.
Who Can Benefit from These Regulations?
Eligibility Criteria
The Karnataka Open Access Regulations 2025 apply to all open access customers, including those specifically seeking renewable energy through green energy open access. Importantly, these regulations cover applications submitted on or after specific dates in 2023 for short-term, medium-term, and long-term open access.
Subject to system availability and the provisions of these regulations, the following entities are eligible for open access in Karnataka:
- Customers seeking to use the intra-state transmission system managed by the State Transmission Utility (STU).
- Customers looking to utilize the distribution systems of distribution licensees within Karnataka.
- Entities with completed captive generating projects, as per Section 9 of the Electricity Act, 2003.
- Non-captive consumers meeting the following criteria:
- High-Tension (HT) Consumers: A contract demand of 100 kW or above in Karnataka.
- Low-Tension (LT) Consumers: A sanctioned load of 100 kW or above, either through a single connection or multiple connections aggregating to 100 kW or more within the same electricity division in Karnataka.
It’s important to note that generating companies with existing power purchase agreements (PPAs) with a distribution licensee generally cannot avail open access for the capacity covered under the PPA, except as explicitly permitted by the terms of that agreement in Karnataka.
What Happens to Existing Open Access Users?
The Karnataka Open Access Regulations 2025 provide clarity for existing consumers and generators already utilizing open access in Karnataka. They can continue under their current agreements or government policies for the specified duration, as long as these don’t conflict with the Electricity Act or the new regulations. They will also remain subject to the charges outlined in their existing agreements.
However, for any subsequent periods, including renewals after the initial term, the new regulations will apply in Karnataka. Any requests for additional open access capacity beyond their previous contract will be treated as a new application under these 2025 rules in Karnataka.
How to Get Open Access: The Application Process
The Karnataka Open Access Regulations 2025 outline a clear procedure for granting open access, with specific timelines for each step in Karnataka:
- Application Submission: Complete applications must be submitted to the state nodal agency in the prescribed format. The date of application is considered the “zero date” in Karnataka.
- Initial Review: The state nodal agency will review the application within three working days in Karnataka. Incomplete applications will be rejected with reasons for deficiency.
- Revised Application: Applicants with rejected applications must submit a revised application in Karnataka.
- System Availability Check: Accepted applications are forwarded to the STU or relevant licensees within five working days for system availability checks and verification of existing PPAs in Karnataka.
- Concurrence: The STU or licensee must provide their concurrence within 10 working days in Karnataka. System studies may not be required for cases involving existing consumers or generators without additional load.
- Grant or Rejection: The state nodal agency must notify the applicant about the grant or rejection of open access within 15 working days in Karnataka. If rejected, reasons and a probable date for grant must be provided.
- Agreement Submission: Applicants granted open access must submit signed agreements within 20 working days, failing which the open access will be canceled in Karnataka.
- Licensee Agreement Submission: The STU or licensee must submit signed agreements to the state nodal agency within 25 working days, failing which the agreement will be deemed approved in Karnataka.
- Wheeling Commencement: Wheeling of electricity will begin the day after the state nodal agency receives the signed agreement in Karnataka. The same effective date applies to banking for eligible renewable energy projects.
Day-Ahead Open Access Transactions: A Quick Guide
For those looking for shorter-term open access in Karnataka, the Karnataka Open Access Regulations 2025 also detail the procedure for day-ahead transactions:
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- Applications must be submitted via the state portal before 1:00 PM on the day preceding the scheduling day in Karnataka.
- The state nodal agency will review applications for system congestion and verify the absence of subsisting PPAs for the requested capacity in Karnataka.
- Approval or rejection will be communicated to the applicant by 3:00 PM the same day via email or fax in Karnataka.
- A non-refundable processing fee of ₹1,000 per transaction is applicable in Karnataka.
- Open access will be operationalized after payment of charges by 5:00 PM before the scheduling day in Karnataka.
- Reasons for rejection will be provided if open access is denied in Karnataka.
What Happens if Open Access Capacity Isn’t Used?
The regulations also address the non-utilization of open access service in Karnataka:
- Short-Term Customers: If a short-term customer cannot utilize the full or substantial part of the allocated capacity for more than four hours, they must notify the State Load Dispatch Centre (SLDC) and provide reasons in Karnataka. They may also surrender the capacity but will still be liable for full transmission and/or wheeling charges. Repeated underutilization can lead to capacity cancellation or reduction by the SLDC after due notice in Karnataka.
- Long or Medium-Term Customers: These customers cannot relinquish or transfer their rights and obligations without approval from the state nodal agency and may be subject to compensation payments equivalent to three months of open access charges in Karnataka.
Understanding the Costs: Charges Overview
The Karnataka Open Access Regulations 2025 provide an overview of the applicable charges in Karnataka:
- Transmission Charges: Determined by the Central Commission for inter-state transmission and a formula based on the Total Transmission System Charges and Total Contracted Capacity for intra-state long-term and medium-term open access in Karnataka. Short-term charges are based on energy transmitted.
- Wheeling Charges: As determined by the Commission in tariff orders issued periodically in Karnataka.
- Cross-Subsidy Surcharge (CSS): Calculated based on the tariff policy notified by the Central Government, considering factors like tariff payable, power purchase cost, losses, and transmission/distribution charges in Karnataka.
- Additional Surcharge: Determined as the cost of stranded power per unit of open access energy in Karnataka.
- Banking Charges: Allowed monthly for eligible renewable energy projects in Karnataka, subject to Commission-determined charges (currently 8% of banked energy). Unutilized banked energy at month-end cannot be carried forward but is eligible for renewable energy certificates.
- Standby Charges: Applicable for outages of generators supplying open access consumers in Karnataka, set at 125% of the applicable energy charges.
Conclusion:
The Karnataka Open Access Regulations 2025 mark a significant step forward in promoting the adoption of renewable energy in the state. By providing a clear framework for accessing the power grid, these regulations empower businesses and individuals to choose cleaner energy sources like solar energy. Novergy is committed to being your trusted partner in navigating these regulations and helping you unlock the economic and environmental benefits of renewable energy in Karnataka.
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