{"id":4468,"date":"2021-12-27T01:11:01","date_gmt":"2021-12-26T19:41:01","guid":{"rendered":"https:\/\/ijpiel.com\/?p=4468"},"modified":"2021-12-27T01:23:14","modified_gmt":"2021-12-26T19:53:14","slug":"blowing-away-the-cobwebs-from-the-renewable-energy-sector","status":"publish","type":"post","link":"https:\/\/ijpiel.com\/index.php\/2021\/12\/27\/blowing-away-the-cobwebs-from-the-renewable-energy-sector\/","title":{"rendered":"Blowing Away the Cobwebs from the Renewable Energy Sector"},"content":{"rendered":"\n[et_pb_section fb_built=”1″ _builder_version=”4.5.1″ _module_preset=”default” min_height=”7858.7px” custom_padding=”||0px|||”][et_pb_row _builder_version=”4.5.1″ _module_preset=”default” min_height=”7706.2px” custom_padding=”||0px|||”][et_pb_column type=”4_4″ _builder_version=”4.5.1″ _module_preset=”default”][et_pb_text _builder_version=”4.5.1″ _module_preset=”default” min_height=”7833px” inline_fonts=”Molengo,Cormorant Garamond”]

“<\/span>Our dependence on<\/em><\/span>fossil fuels<\/em><\/a> amounts to global pyromania, and the only fire extinguisher we have at our disposal is renewable energy<\/em>.”<\/span><\/span><\/span>\u00a0<\/span><\/p>\n

\u2013<\/span>Hermann Scheer<\/a><\/span>\u00a0<\/p>\n

 <\/p>\n

Abstract<\/strong>\u00a0<\/span><\/p>\n

Given the poor quality of the air, the rise in global pollution, and an alarming climate change, a shift to a cleaner green energy source is an urgent necessity. Green energy substitutes environmentally friendly alternatives for the hazardous effects of fossil fuels. Keeping this in mind, the steps proposed by the Government of India in the “Draft Electricity (Promoting Renewable Energy through Green Energy Open Access) Rules, 2021” is commendable. By enacting the aforementioned proposed rules in 2021, India has paved the way to promote renewable energy through open access. This article begins by discussing climate change and the need to transition to green energy, following a discussion on the Draft Electricity (Promoting Renewable Energy through Green Energy Open Access) Rules, 2021, and finally, the authors give their suggestions and opinions on the draft electricity rules proposed by the Indian government.<\/span>\u00a0<\/span><\/p>\n

Keywords:\u00a0<\/strong>Renewable, Green energy, Transition, Electricity draft rules, 2021<\/em><\/span><\/p>\n

<\/span><\/strong><\/p>\n

Introduction<\/span><\/strong>\u00a0<\/span>\u00a0<\/span><\/p>\n

Climate change has gradually pushed the world from using the traditional non-renewable to renewable sources of energy. Countries across the globe have begun to sensitize themselves to this very issue. In a conference held by<\/span>United Nations Climate Change Conference\u00a0<\/a>(UNFCCC<\/strong>) in January 2021, the Global climate crisis was in discussion and the significance of a transition to sustainable energy was deemed important. Executive Secretary of UNFCCC<\/strong> Ms. Patricia Espinosa<\/span>stated<\/a> that: \u201cEnergy is at the heart of the climate change emergency and it must be at the heart of its solution. A swift and broad transition to renewable energy will be essential to achieve the emission reduction goals laid down by the\u00a0Paris Agreement<\/em>.\u201d<\/span><\/span>\u00a0<\/span><\/p>\n

Today, India is in rank<\/span>three<\/em><\/a> in renewable energy country attractive Index and keeping in mind the constant change, India has further started creating a pathway for promoting renewable energy through open access by the introduction of to “<\/span>Draft Electricity (Promoting Renewable Energy through Green Energy Open Access) Rules, 2021<\/a>” (\u201cDraft Electricity Rules, 2021<\/strong>\u201d).<\/span><\/span><\/p>\n

<\/strong><\/p>\n

Genesis of Draft Electricity Rules, 2021<\/strong>\u00a0<\/span><\/p>\n

Electricity Distribution Companies (\u201c<\/span>DISCOMs<\/strong>\u201d) are the backbone of the financial stability of the country. However, DISCOMs have been facing financial and infrastructure challenges – pre and post COVID-19. Despite such challenges, DISCOMs are trying to establish Non-Discriminatory Open Access to transmission lines.<\/span>\u00a0<\/span><\/p>\n

Open access is considered the backbone of the<\/span>Electricity Act, 2003\u00a0<\/a>(\u201cElectricity Act<\/strong>\u201d). Open access enables non-discriminatory access to \u201c<\/span>transmission lines or distribution system or associated facilities with such lines or system<\/a><\/em>\u201d by persons such as the licensee, consumer or, a person engaged in a generation.<\/span><\/span>\u00a0<\/span><\/p>\n

However, due to issues such as<\/span>Cross Subsidy Surcharge<\/a>, Additional Surcharge, Stand-By charges, and Tariff design and rationalisation, there appears to be an imbalance that impairs fair play between consumers and utilities on open access\/group captive.<\/span><\/span>\u00a0<\/span><\/p>\n

To strike an equilibrium, the<\/span>National Electricity Policy, 2005 <\/a>was introduced to promote a balance between open access to consumers and supporting DISCOMs.<\/span><\/span>\u00a0<\/span><\/p>\n

With the changing times, an inclination was witnessed towards the promotion and usage of renewable energy sources. Thus, the<\/span>National Tariff Policy for Electricity, 2016<\/a> (\u201cNational Tariff Policy<\/strong>\u201d)\u00a0 was introduced that supported the use of renewable energy.<\/span><\/span>\u00a0<\/span><\/p>\n

While we discuss the benefits derived from renewable energy sources, one cannot turn a side-eye to Draft Electricity Rules, 2021.<\/span><\/p>\n

<\/strong><\/p>\n

Renewable Purchase Obligation<\/strong>\u00a0<\/span><\/p>\n

Renewable Purchase Obligation (\u201cRPO<\/strong>\u201d) is a mechanism under<\/span>Section 86(1) (e)<\/a> of the Electricity Act and the National Tariff Policy that requires obligated entities to purchase a certain percentage of renewable energy sources to generate electricity.<\/span><\/span>\u00a0<\/span><\/p>\n

The Draft Electricity Rules, 2021, seeks to introduce distribution licenses, open access consumers, captive power consumers<\/span>to promote Renewable Purchase Obligations<\/a>. Entities may further have an option to purchase and consume Renewable Energy in accordance with their needs, using the methods stated below:<\/span><\/span>\u00a0<\/span><\/p>\n