The Rajasthan Electricity Regulatory Commission (RERC) has dismissed a petition filed by three distribution companies (Discoms) seeking amendments to the regulations governing renewable energy captive power plants. The Discoms had requested an increase in the maximum permissible capacity for these plants, currently capped at 100% of a consumer’s contract demand. They proposed raising it to 200%, in line with the Rajasthan Chief Minister’s budget announcement for 2024-25, which aims to boost renewable energy generation.
The petition also called for revisions to banking regulations. Currently, renewable energy plants are allowed to bank up to 25% of the energy they inject into the grid or 30% of their monthly electricity consumption—whichever is higher. The Discoms suggested simplifying this by permitting banking up to 30% of total monthly consumption, while maintaining restrictions for plants supplying power to third parties or lacking bi-directional meters.
However, the petition specified that the proposed amendments would not apply to net-metering or net-billing systems, which are governed by different regulations. The Discoms also emphasized the need for transmission and distribution utilities to conduct system studies to ensure grid compatibility. Consumers would be responsible for covering any costs for grid upgrades necessary to accommodate the increased capacity.
While the Commission acknowledged the petitioners’ alignment with the Chief Minister’s renewable energy goals, it determined that such changes must follow the formal rule-making process outlined in the Electricity Act, 2003. Moreover, the issues raised are already under consideration as part of draft regulations for Green Energy Open Access, which are currently in the public consultation phase.
The Commission ultimately treated the petition as a contribution to the ongoing regulatory discussions and dismissed it. It stressed the importance of a structured and inclusive process for amending energy regulations.
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