We’re proud to co-author this policy paper with the Mahindra Group. Transition to renewable energy is inevitable, an accelerated trajectory would reap benefits across environment, commercial & energy security. In alignment with this, many corporates in India including Mahindra have publicly committed to a reduction in operational emissions, and faster renewable energy (RE) procurement is critical to meeting that goal. Yet, state-level regulations continue to limit the pace at which business units can replace grid power with renewable energy, especially as they aim to get closer to the 100% renewable energy mark. Eligibility thresholds do not permit small and less energy-intensive locations to access RE due to restrictions and implementation inconsistencies with India’s Green Open Access Regulations. Further impediments to the energy transition are high banking fees that make renewable projects financially unviable, and curtailment rules that reduce lender confidence.
This paper identifies the key policy changes that would unlock the largest block of electricity from RE sources for corporates in the near term. We have examined in detail the regulations affecting the procurement of renewable energy in the states of Maharashtra, Karnataka, Tamil Nadu and Telangana. Each barrier identified was assessed for its potential impact, the presence of an active regulatory window, alignment with national policy, and the likelihood of industry support.
Our key suggestions are:
- A complete rollout of Green Energy Open Access regulations
- Permission for Group Net Metering or Virtual Net Metering for all types of consumers so that rooftop surplus can be shared across campuses
- Adoption of curtailment compensation mechanisms
- Permitting the co-existence of net-metering and open access connections
- Ensuring fair valuation and RoW compensation
