GERC Proposes Lower Banking Charges for Green Energy Open Access
The Gujarat Electricity Regulatory Commission (GERC) has proposed reducing banking charges for Green Energy Open Access (GEOA) consumers in the state to ₹1 per unit from September 1, 2026 to March 31, 2027,. . .
The Gujarat Electricity Regulatory Commission (GERC) has proposed reducing banking charges for Green Energy Open Access (GEOA) consumers in the state to ₹1 per unit from September 1, 2026 to March 31, 2027, while introducing a new methodology for annual determination of banking charges based on actual data submitted by distribution companies. The proposal forms part of the draft GERC (Terms and Conditions for Green Energy Open Access) (Sixth Amendment) Regulations, 2026, which have been released for stakeholder consultation. The Commission has also published a detailed consultation paper outlining the methodology for determining banking charges for renewable energy open access consumers. After Detailed StudyThe move comes after GERC conducted a detailed study to assess the financial impact of providing banking facilities to renewable energy open access consumers. Based on an analysis of data from around 165 renewable energy open access consumers between April 2025 and January 2026, the Commission estimated banking charges at ₹1. 06 per unit and has proposed an interim charge of ₹1 per unit considering data limitations and the relatively small consumer base covered by the study. Banking of renewable energy allows consumers to inject surplus electricity generated from renewable sources into the grid and draw it back later, thereby helping manage the intermittency of solar and wind power. Under the Ministry of Power's Green Energy Open Access Rules, consumers are permitted to bank at least 30% of their monthly electricity consumption from the distribution licensee. GERC noted that the existing banking charge of ₹1. 50 per unit, which was initially introduced until September 30, 2024, had been repeatedly extended through successive amendments due to delays in completing the study and challenges in obtaining accurate data from distribution companies. The charge currently remains in force until August 31, 2026. Framework For Banking ChargesThe draft regulations also propose a framework for determining banking charges from FY28 onwards based on actual data submitted by distribution licensees for the preceding calendar year. All distribution companies would be required to submit complete and accurate information through a sworn affidavit, with the Commission retaining the authority to verify the data through the State Load Despatch Centre (SLDC) or other means. In a significant provision aimed at ensuring compliance, the Commission has proposed that if a distribution licensee fails to provide adequate data within the specified timelines, banking charges for that utility would be considered as 'Nil' until satisfactory information is submitted and approved by the Commission. To provide regulatory certainty to both renewable energy consumers and utilities, GERC has also proposed introducing a floor and ceiling mechanism for banking charges, with rates capped between ₹0. 50 per unit and ₹1. 50 per unit, subject to proper data submission by the distribution licensees. The consultation paper highlights that Gujarat has witnessed significant growth in renewable energy open access and industrial consumption, necessitating a more scientific methodology for determining banking charges that balances grid management requirements, financial implications for distribution companies and the state's broader renewable energy investment landscape. GERC has invited comments, suggestions and objections from stakeholders on the draft regulations by July 20, 2026, and will hold a public hearing on July 21, 2026, in hybrid mode at its office in GIFT City, Gandhinagar.