Green energy open access and captive power advisory

What makes the decision hard

• Savings depend on charges you do not control. GERC revises several of them by order or by regulation.
• The captive rules changed in 2026. A group captive structure that was set up years ago may need a fresh check.
• The commitment is long. A buyer needs its own reading of the rules, and its own numbers, before it signs up for years.

Two routes to green power

Open access: you buy renewable power from a generator or trader, and it is carried to you over the transmission and distribution network for a set of charges. Under the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022, consumers with 100 kW or more of contracted demand can seek green energy open access.

Captive: you, or a group of consumers, own a share of a generating plant and use its output. The Electricity Act, 2003 provides for captive generation (section 9), and the 2022 Rules set no load limit for captive consumers.

The routes differ in ownership, commitment, charges and risk. The right one depends on your load, sites, appetite for equity and how long you want to commit.

Open access in Gujarat

In Gujarat, green energy open access is governed by the GERC (Terms and Conditions for Green Energy Open Access) Regulations, 2024, Notification No. 08 of 2024, dated 20 February 2024. GERC has amended these regulations several times, most recently in 2026. Any assessment has to use the regulations as amended.

Banking is allowed under the central rules and the GERC regulations. GERC sets and revises the banking charge by regulation. The limits on banked energy are currently the subject of proceedings before GERC, so we check the position at the time of your assessment.

For a Gujarat consumer, the practical questions are: is each site eligible, which charges apply, how banking suits your consumption pattern, and what the application involves.

Captive and group captive rules

Rule 3 of the Electricity Rules, 2005 sets the captive test: captive users own at least 26% of the plant and consume at least 51% of its yearly output. A 2023 amendment brought holding and subsidiary companies into the rule.

The Ministry of Power notified the Electricity (Amendment) Rules, 2026 on 13 March 2026, replacing the captive rule. The 26% ownership and 51% consumption tests continue. The new rule changed how group companies and associations of persons are tested. Any captive or group captive structure, existing or planned, should now be checked against the rule as amended. Captive status is verified each year under a prescribed procedure.

Captive status matters because, under the Electricity Act, captive use is exempt from the cross-subsidy surcharge (proviso to section 42(2)). Group captive questions usually turn on ownership, consumption and the evidence for both.

Charges that decide savings

Whether green power saves money depends as much on the charges added to it as on the generator's price. Several are revised from time to time, so we do not print figures here. We use the charges in force at the time of your assessment, and show how sensitive your savings are to a change. Depending on the route, they can include:

• transmission and wheeling charges, and losses;
• cross-subsidy surcharge under section 42(2) of the Electricity Act, unless an exemption applies;
• additional surcharge under section 42(4), which GERC fixes by half-yearly order;
• standby charges;
• banking charges, set by GERC under the green energy open access regulations, as amended;
• scheduling and other fees in the applicable regulations and orders.

When GERC revises one of these charges, a policy impact simulation can show what the change means for each of your sites, with base, better and worse cases.

What makes up landed cost

The landed cost of open access power is the cost of one unit delivered to your premises. We build it up from the price paid to the generator or trader, then add each charge above that applies, the energy lost on the way, and banking and standby costs based on how you use the power. The total is compared with your current tariff on the same basis. For a model that runs this over the life of a contract, see financial modelling and regulatory risk.

How we help

Our work on open access and captive power covers:

• Eligibility: a site-by-site note on whether each site qualifies, and on what basis.
• Route comparison: open access, captive and group captive, compared on cost, commitment and regulatory risk.
• Structure review: ownership and consumption checked against the 2026 rule, with a list of the evidence to keep.
• Landed cost: a build-up with its sources, to test against your current tariff.
• Applications: an application pack for your review, followed through to a decision.
• Ongoing review: rechecking the arrangement when charges or rules change.

Related: power sector regulatory advisory (tariffs and petitions), renewable energy regulatory advisory (the generating project), BESS regulatory advisory (storage).

How we work

We agree the question, read the current rules and orders, note whether each is notified, draft or under petition, and apply them to your sites, bills and structure. We do not promise savings. Read more about how we work.

Practical uses

• A manufacturer with several Gujarat sites checks which ones qualify.
• A group of companies tests a group captive structure against the 2026 rule.
• A finance head compares landed cost with the current tariff before signing a long-term contract.