Prosumers, Vendors Criticize Draft Renewable Energy Rules

Rapid Summary:

• Event: Stakeholders criticized Kerala State Electricity Regulatory Commission’s (KSERC) draft renewable energy regulations during a public hearing that began on July 8, 2025.
• Proposals Criticized:

– Restricting Net Metering System (NMS) to 3 kW.
– Imposition of ₹1/unit grid support charge for energy exported to the grid.
– designation of peak hours from 6 p.m. to 11:30 p.m., contrary to existing tariff order limits (6 p.m. to 10 p.m.).

• Stakeholder Demands:

– Postpone proposed regulations by five or ten years due to industry readiness concerns.
– Retain existing net metering mechanisms for affordability adn encourage future investments in renewable energy solutions.- Avoid introducing costly battery storage mandates until more affordable systems become available over the next five years.
– Prevent unilateral revisions affecting previously committed projects based on earlier tariffs and rules.

• Major Voices Raised:

– Kerela Renewable Energy entrepreneurs Association suggested freezing clauses related to expensive battery requirements.
– Cochin airport raised objections against exorbitant charges, leading them to pause their planned Battery Energy Storage System project.
– Industrial electricity consumers requested adherence to earlier peak-hour norms in tariff orders dating back December 2024.

• The new regulations will replace older ones expiring after the financial year of 2024-25 and remain effective until FY2030.

Indian Opinion Analysis:

The criticisms surrounding KSERC’s draft regulations highlight significant challenges for Kerala’s drive toward renewable energy integration. Proposals such as restricting net metering capacity or imposing supplementary costs like grid support charges could discourage both prospective investment and usage growth within the sector. This reluctance comes at a time when affordability of advanced technologies like battery storage is still evolving globally, indicating premature enforcement might burden smaller players disproportionately.

moreover, stakeholders’ demand for protecting prior investments under old frameworks is valid, emphasizing regulatory stability as an essential factor in fostering confidence among entrepreneurs.

The high engagement level at hearings-both from industries such as Cochin Airport Ltd., associations like KREEPA/CONSORTIUM & smaller individual prosumers-suggest broader policy impacts requiring thorough examination given renewables’ critical role ahead amidst national commitments pushing Paris-agreement goal compliance reforms forward meaning These complexities collectively exhibit nationwide importance toward cautiously balancing aspiring eco-transition agreements adhering-headed equitable designing roadmap clarity further grassroots ensuring grassroots Inputs awaiting writes next few dates visibility upcoming continued adequately adapting path-forward situated basis consultation about completed UN objectives grounded fairness-&negative-outcomes-mitigating .

Read more here.