Green Energy Open Access Rules, 2022

Source: The Hindu (Green Energy Open Access Rules)

Why in News?

The High Court of Karnataka, in a landmark decision, has struck down the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022, commonly referred to as the Green Energy Open Access (GEOA) Rules, 2022.

These rules were framed by the Union Government to promote the generation, purchase, and consumption of green energy, including waste-to-energy, as part of India’s commitment to achieving net-zero emissions by 2070.

Relevance with UPSC Syllabus

  • GS Paper 2: Governance and Federalism (Centre-State relations, regulatory competence)
  • GS Paper 3: Environment and Energy (renewable energy policies, climate commitments)

Key Takeaways:

  • Federalism in energy regulation under the Electricity Act, 2003.
  • Role of judiciary in ensuring adherence to legislative competence.
  • Implications for India’s renewable energy transition and net-zero targets.
  • Importance of clear legislative frameworks in meeting international climate commitments.

Key Judgement Highlights:

  1. Legislative Incompetence of the Centre:
    • The court held that the Centre lacked the legislative competence under the Electricity Act, 2003, to frame the GEOA Rules.
    • Sections 42(2) and 181 of the Act vest exclusive powers with the State Electricity Commissions to regulate transmission and other aspects of open access, leaving no room for the Centre to intervene in this domain.
  2. Residual Powers Misused:
    • The court noted that the Union Government, under Section 176(2) of the Act, cannot use its residual powers to frame rules for provisions already assigned to State Commissions. This, it stated, would amount to a transgression of the legislative framework set by the Act.
  3. Invalidation of Linked Regulations:
    • The Karnataka Regulatory Commission (Terms and Conditions for Green Energy Open Access) Regulations, 2022, based on the GEOA Rules, were also struck down for being founded on an invalid rule.
  4. Need for Legislative Amendments:
    • The court emphasized that the Centre can only frame such rules if the Electricity Act, 2003, is amended to empower the Union Government with this authority. Until then, commitments like achieving net-zero emissions cannot justify rules that contravene existing law.

Impact of the Judgment:

  1. State’s Exclusive Powers Reaffirmed:
    • The judgment reinforces the principle of federalism in energy regulation, highlighting the primacy of State Electricity Regulatory Commissions (SERCs) over matters related to open access, transmission, and determination of power within their jurisdictions.
  2. Setback to National Renewable Energy Goals:
    • The ruling poses challenges to the Centre’s efforts to promote renewable energy and green energy open access as part of its climate commitments.
    • India’s ambition of achieving net-zero emissions by 2070 may require alternate mechanisms to push for renewable energy expansion.
  3. Impact on Hydropower and Green Energy Projects:
    • The petitioners, including hydropower companies like Brindavan Hyderopower Pvt. Ltd., argued that the GEOA Rules adversely affected their wheeling and banking agreements with electricity transmission and distribution companies. This judgment safeguards their interests and agreements.
  4. Need for Policy Reforms:
    • The judgment underscores the necessity for legislative clarity. The Centre will need to pursue amendments to the Electricity Act if it intends to have a direct role in regulating open access and promoting green energy projects.

This case serves as a critical example of the interplay between the judiciary, executive, and legislative branches in implementing climate and energy policies within the constitutional framework.

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