Common industry terms, explained
The vocabulary you'll run into while evaluating a switch to renewable power, in plain language.
Electricity generated from renewable sources such as solar and wind, as distinct from conventional fossil-fuel-based grid power.
The contract between a power buyer and a generator, setting out tariff, term, delivery and performance obligations, typically 15–25 years for RE.
The regulatory right for an eligible consumer to buy electricity from a generator other than their local DISCOM, using the shared grid to transport it.
The state-licensed utility responsible for distributing and billing electricity to consumers in a given area.
The state-level regulator that sets tariffs for utilities, approves open access applications, and oversees electricity distribution within a state.
The ratio of actual energy a plant generates over a year to what it would generate running at full rated capacity 24/7. Indian solar plants typically run at 19–22% CUF.
The use of the shared electricity grid to transport power from a generator to a buyer located elsewhere, in exchange for a wheeling charge.
A provision allowing a consumer to export surplus solar generation to the grid during the day and draw an equivalent amount back later (e.g. at night), subject to state-specific rules and charges.
A binding requirement for designated large consumers, DISCOMs and captive users to source a rising share of their electricity from renewables, the successor to the older RPO framework.
The older procurement-focused mandate that RCO has largely superseded; RPO required DISCOMs to purchase a share of renewable power, with lighter enforcement at the individual consumer level.
The central rules that lowered the minimum load eligible for open access from 1 MW to 100 kW, and simplified the application process.
An ownership model where a consumer (or a group of consumers) holds at least 26% equity in the generating plant and consumes a minimum share of its output, which can unlock certain regulatory and charge exemptions.
A charge levied on a consumer moving to open access, compensating the DISCOM for the subsidy revenue it would otherwise have collected from that consumer.
A charge in some states covering the DISCOM's stranded fixed costs when a large consumer shifts load away to open access.
A billing arrangement (typically for smaller rooftop systems) that nets a consumer's exported solar generation against their grid consumption.
A tradeable certificate representing proof that one unit of electricity was generated from a renewable source, separable from the underlying power itself.
India's domestic carbon market framework, under which obligated entities can generate and trade carbon credit certificates for emissions reductions.
SEBI's mandatory ESG disclosure framework for India's largest listed companies, requiring reporting on emissions including Scope 1 and 2.
Shorthand for commercial and industrial electricity consumers: offices, retail, hospitality, manufacturing, and similar large non-residential loads.