In Karnataka, Renewable Energy (RE) capacity has grown from 1 GW in March 2007 to 15.9 GW (52% of total) by March 2022, while RE generation has increased from 9.7 TWh in FY 2014-15 to 28.6 TWh in FY 2021-22. Similarly, wheeling and banking transactions have increased from 222 MU in FY 13 to 5,770 (energy wheeled) for FY 2020-21. RE capacity with Wheeling and Banking (WBA) agreements has increased from 182 MW to 3,492 MW from FY 11 to FY 22 while the number of generators with WBA agreements has risen from 36 to 316 in the same time period. This clearly brings out the success of Renewables in the state.

One of the notable supporting policy and regulatory framework for this growth in RE based Open Access and Captive capacity was the promotional banking framework and concessional charges on wheeling and banking.

Over the last few years, there have been quite a few regulatory and judicial processes on the issue of appropriate banking framework and charges for the same. As part of these, KERC directed that a detailed study has to be carried out by a third party to assess the impact on the finances of KPTCL/ESCOMs due to concessional wheeling and banking charges. In compliance with these directions, Prayas (Energy Group) was appointed to conduct this study by PCKL. This study examines this issue.

KERC is currently having a public consultation on this issue and public comments are invited until 31st August, 2022.