Description

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Context:

The Karnataka High Court struck down the central government's major green energy legislation, noting that the union government was not empowered to frame rules under the Electricity Act.

About the judgment

Karnataka HC decided that the regulation of open access was the exclusive domain of the State Power Station according to Section 42 (1) and 181 of the Electricity Act of 2003.
The court stated that without the amendment of the Electricity Act, the Center cannot create rules that would prevail over the powers of the State Commission, even to fulfill international climate obligations.

About Electricity Policy, 2005

Aspect	Details
About	It places the responsibility for facilitating open access on State Regulatory Commissions.
Electricity Act, 2003
Section 42(2)	Assigned the Appropriate Commission exclusive authority over open access to distribution licensees.
Section 181	Allows State Commissions to issue regulations consistent with the Electricity Act, 2003, and its rules to implement its provisions.
Section 176(1)	Grants the Central Government the authority to make rules for carrying out the provisions of the Electricity Act, of 2003.
Section 176(2)	Provides for framing rules for specific purposes, such as functions and duties of the Central Electricity Authority.
Constitutional Provisions
Entry 14 of the Union List	This pertains to entering into and implementing treaties, agreements, and conventions with foreign countries.
Entry 38 of the Concurrent List	Electricity is a concurrent subject at Entry 38 in List III of the Seventh Schedule of the Constitution of India.
Ministry of Power	The Ministry of Power is primarily responsible for developing electrical energy in the country.

Green Energy Open Access Rules, 2022

Feature	Description
Objective	Provide affordable, reliable, sustainable, and green energy for all, promoting clean and green energy in India.
Eligibility for Open Access	Any consumer with a connected load of 100 kW can obtain renewable energy through open access from any renewable energy plant.
Open Access to Stakeholders	Available to traders, energy exchanges, national/regional/state load dispatch, and central/state transmission services.
Timeline for Open Access	Open access must be granted within 15 days, or it will be considered granted.
Consumer Green Power Supply	Consumers may require the supply of green power from Discoms (distribution companies).
Voluntary Purchase	Commercial and industrial consumers can buy green energy voluntarily.
Renewable Purchase Obligation (RPO)	There must be a uniform RPO. Green Hydrogen/Green Ammonia is also included to meet the RPO.
Promotion of Green Energy	Promotes the generation, purchase, and consumption of green energy, including energy-wasting plants.
Procedure for Open Access	Provides a transparent, simplified, uniform, and efficient procedure for granting open access to green energy.
Grid Integration	Facilitates the deepening of electricity markets and enables the integration of renewable energy sources into the grid.
India’s Contribution to Global Emissions	India contributes only 3.5% to global emissions despite having about 17% of the world's population.
India’s Role in Clean Energy	India is leading the clean energy transition globally and has the fastest-growing capacity additions.

Important Facts about India’s Power Sector

India is the third largest producer and consumer of electricity in the world with an installed capacity of 442.85 GW by 30 April 2024. A growing population along with increasing electrification and per capita usage will provide further impetus.
India's power consumption in FY23 grew by 9.5% to 1,503.65 billion units (BU). India has committed to increasing its installed alternative fuel electricity generation capacity to over 5,00,000 MW. 100% FDI in the power sector boosted FDI inflows into the sector.
Schemes like Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY) are expected to spread electrification across the country.
PM-Surya Ghar: Muft Bijli Yojana to install rooftop solar panels in Home Crore. According to the National Gas Pipeline Infrastructure 2019-25, energy projects accounted for the highest share (24%) of the total expected RS investment expenditures.
111 million crowns (1.4 trillion dollars). Total foreign direct investment inflows in the energy sector between April 2000 and March 2024 reached USD 18.28 billion 18.24. India's power sector is expected to attract RS investment. 17 Lakh Crore ($205.31 Billion) in the next 5-7 years.

READ ABOUT

GREEN OPEN ACCESS RULES, 2022

National Geospatial Policy, 2022

Source:

INDIAN EXPRESS

PRACTICE QUESTION

Discuss the current challenges and opportunities in India’s power sector. In your answer, highlight the role of renewable energy, the need for infrastructure modernization, and the policy initiatives aimed at ensuring energy security. How can the government balance the growth of the power sector with environmental sustainability? (250 words)