Key Facts of the Case:

Petitioner’s Argument:

Hydropower companies argued that the GEOA Rules infringed upon the authority of the Karnataka Electricity Regulatory Commission (KERC) under Sections 42(2) and 181 of the Electricity Act, 2003.

Centre’s Defense:

The Centre defended the rules, asserting its authority based on:

• Entry 14 (Union List)
• Entry 38 (Concurrent List)
• Section 176(1) of the Act

It also stated that the rules were crucial for fulfilling India’s international commitments, including those made at COP26.

Court’s Decision:

The court ruled that the CentrElectricityal Government could not override the Electricity Act’s provisions and the powers granted to State Regulatory Commissions. It clarified that Section 176(2) could not be used to infringe upon state regulatory authority.

Important Provisions of the Electricity Act 2003:

• Section 42(2): Grants State Commissions exclusive authority to regulate open access to electricity distribution.
• Section 181: Allows State Commissions to create rules aligned with the Act.
• Section 176(1): Empowers the Centre to create rules for implementing the Act.
• Section 176(2): Allows the Centre to frame rules for specific functions, such as those of the Central Electricity Authority.

GEOA Rules, 2022:

Objective: The rules aimed to promote renewable energy and ensure affordable, reliable, and sustainable energy through open access.

Key Features:

• Promotion of green energy, including waste-to-energy initiatives.
• Reduced open access threshold from 1 MW to 100 kW, allowing small consumers to buy renewable energy.
• Empowered consumers to demand green power from Distribution Companies (DISCOMs).
• A uniform Renewable Purchase Obligation (RPO) for all entities, covering green hydrogen and ammonia.
• Provided incentives like reduced surcharges and green certificates for renewable energy users.

Key Committees on Power Sector Reforms:

• Deepak Parekh Committee (2008): Suggested financing measures for power projects.
• Ashok Chawla Committee (2011): Studied resource allocation for power generation.
• Kirit Parikh Committee (2022): Recommended pricing reforms for power-related fuels.

India’s Updated Climate Targets (COP26, 2021):

• Achieve net-zero carbon emissions by 2070.
• Build 500 GW of energy capacity from non-fossil sources by 2030.
• Source 50% of India’s energy from renewables by 2030.
• Reduce carbon emissions by 1 billion tonnes by 2030.
• Cut the economy’s carbon intensity by 45% from 2005 levels by 2030.