MPERC issues SOP for renewable energy banking under GEOA
The Madhya Pradesh Electricity Regulatory Commission (MPERC) has issued a Standard Operating Procedure (SOP) for banking of surplus renewable energy by Green Energy Open Access (GEOA) consumers in Madhya Pradesh, effective August 17, 2026. The framework sets out rules for banking, scheduling, utilisation and settlement of surplus power.
The SOP follows a directive issued by MPERC on August 18, 2025, under which Madhya Pradesh Power Management Co. Ltd. (MPPMCL) was asked to prepare a procedural draft in consultation with state distribution companies (Discoms), the State Load Despatch Centre (SLDC) and Madhya Pradesh Power Transmission Company Limited (MPPTCL). MPERC reviewed the draft submitted by MPPMCL on July 22, 2026, and approved the final procedure as Annexure-1 to its order.
Banking rules
The SOP introduces a three-month banking cycle. Energy banked during month n can be utilised during the immediately succeeding two months, n+1 and n+2. Any energy remaining unused after this period will normally lapse.
Banking is capped at 30% of a consumer’s monthly Discom consumption, subject to technical feasibility. An in-kind banking charge of 8% is deducted from surplus energy at the time of banking, leaving 92% as net banked energy.
The procedure also provides for an additional monetary charge where the actual cost incurred by the Distribution Licensee to arrange the return of banked energy exceeds its benchmark value. The applicable amount is subject to annual reconciliation.
Time-block settlement
Banking and drawal will be accounted for in 15-minute time blocks. Surplus energy will be determined based on generation, applicable losses and consumer consumption during each time block.
The SOP distinguishes between peak and off-peak banked energy. Energy banked during peak periods can be utilised during either peak or off-peak periods, while energy banked during off-peak periods can be utilised only during off-peak periods.
Consumers must schedule the utilisation of banked energy in 15-minute blocks. The settlement mechanism also prioritises older banked energy for adjustment.
One banking cycle may be extended once in a financial year, subject to technical feasibility and approval.
Compliance
The SOP specifies events of default and provides a seven-day cure period for non-compliance. If the default is not rectified within the prescribed period, the concerned Discom may terminate the banking arrangement.
MPERC has also directed that the order and SOP be prominently displayed on the web portals of the relevant state power entities, including the MP Discoms, MPPTCL, SLDC and MPPMCL. Copies of the order have been served on the respective managing directors and the Chief Engineer of SLDC Jabalpur.
The SOP will remain in force until it is superseded or amended by MPERC. It also provides for grievance redressal through Nodal Officers designated by the respective Discoms to address disputes arising from its implementation.
The framework gives renewable energy developers and engineering, procurement and construction (EPC) companies clearer parameters for project sizing and forecasting, while increasing the importance of consumer load profiles and 15-minute energy matching. For commercial and industrial (C&I) consumers, the rules provide greater clarity on banking economics, but require timely scheduling and utilisation to avoid the lapse of banked energy.
The featured photograph is for representation only.
