The Odisha Electricity Regulatory Commission (OERC) has released the draft Odisha Electricity Regulatory Commission (Grid Interactive Distributed Renewable Energy Sources) Regulations, 2026, inviting objections and suggestions from interested persons under Section 181(3) of the Electricity Act, 2003.
The draft regulations have been prepared for the smooth integration and adoption of distributed renewable energy sources by electricity consumers in the state. The proposed regulations will apply to Distributed Renewable Energy Systems (DRES) installed within the distribution licensee’s area of supply. A DRES is defined as an electricity generation system having an installed capacity of not exceeding 10 MW, using a distributed renewable energy source with or without energy storage, and connected to the transmission or distribution network at a voltage level of 33 kV or below.
Under the draft Regulations, an eligible consumer who owns or intends to own or develop a DRES individually or with a Renewable Energy Service Company (RESCO) will be required to enter into an agreement with the distribution licensee under any applicable metering mechanism. The proposed framework provides for six metering mechanisms: net metering, net billing, gross metering, group net metering, virtual net metering and behind the meter.
The draft also specifies requirements for DRES systems of different capacities. An eligible consumer owning or intending to own a DRES of 10 kW and above will be required to install a hybrid inverter or GRID Forming Inverter and a Battery Energy Storage System (BESS) along with the DRES. The minimum BESS capacity is specified at 10% for DRES capacity of more than 10 kW and up to 100 kW, 20% for more than 100 kW and up to 500 kW, and 30% for more than 500 kW and up to 10,000 kW.
The draft regulations also set out provisions for different metering arrangements. Under Net Metering, eligible consumers include domestic consumers, educational and training institutions managed by the government, certain government-managed healthcare facilities, buildings belonging to local authorities and agricultural consumers. The minimum DRES capacity under this mechanism is 1 kW, and the maximum capacity is 500 kW or the sanctioned load or contract demand of the prosumer, whichever is lower.
Under Net Billing, consumers of all categories will be allowed to establish DRES, with a minimum capacity of 1 kW and a maximum capacity of 500 kW or the sanctioned load or contract demand of the prosumer, whichever is lower. Under Gross Metering, consumers of all categories will be allowed to install DRES, with a minimum capacity of 1 kW and a maximum capacity of 10 MW.
The draft further provides for Group Net Metering and Virtual Net Metering. Under Group Net Metering, the minimum size of DRES will be 5 kW, while the maximum capacity will not exceed the combined sanctioned load or contract demand of all participating service connections or 500 kW, whichever is lower. Under Virtual Net Metering, the minimum DRES size will also be 5 kW, with the maximum capacity limited to the combined sanctioned load or contract demand of participating consumers or 500 kW, whichever is lower.
The Behind-the-Meter mechanism will allow consumers of all categories to install DRES within their premises for self-consumption only and not to sell the electricity generated by the DRES to the distribution licensee. The minimum capacity under this mechanism will be 1 kW, while the maximum capacity will not exceed the sanctioned load or contract demand of the consumer, subject to a maximum of 10 MW.
The proposed Regulations also contain provisions for energy accounting under Net Metering, Net Billing, Gross Metering, Group Net Metering and virtual net metering. They specify how electricity generated, imported and exported through DRES will be accounted for, including provisions relating to excess electricity, energy credits, feed-in tariffs and settlement periods.
The draft Regulations specify hosting capacity provisions for DRES connected to the distribution network. The cumulative capacity of DRES allowed to be interconnected with the distribution network or system will not exceed the rated capacity of the feeder or Distribution Transformer. The cumulative DRES capacity allowed to be interconnected with a distribution transformer will not exceed 90% of its capacity, while the DRES system on each phase of the transformer will not exceed 30% of the transformer’s capacity.
The proposed framework also includes technical and safety requirements for interconnection of DRES with the grid. The interconnection will be subject to the Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 2023, as well as the applicable provisions of the Central Electricity Authority (Technical Standards for Connectivity of the Distributed Generation Resources) Regulations, 2013 and amendments thereof.
For the application process, the distribution licensee will facilitate the setting up of DRES systems. The draft provides that the distribution licensee shall prepare and submit separate guidelines for DRES projects under different metering mechanisms within one month of the date of notification of the Regulations in the Official Gazette. It will also create or update a web-based portal for receiving applications for installation, interconnection and metering of DRES within three months from the date of notification.
The Odisha Electricity Regulatory Commission stated that it had earlier published the draft Odisha Electricity Regulatory Commission (Renewable Consumption Obligation, Distributed Renewable Energy Sources and Renewable Energy Linked Concepts) Regulations, 2026, on April 10, 2026, inviting suggestions and comments. Following verification of stakeholder suggestions, the Commission observed that Renewable Consumption Obligation and Distributed Renewable Energy Sources are two distinct matters with differences in their applicability, and that separate Regulations would provide greater clarity.
The Commission also noted its earlier Order dated August 19, 2016, concerning Net-Metering/Bi-Directional Metering and connectivity with respect to Solar PV Projects, which has been amended from time to time. In view of developments in distributed renewable energy integration and metering mechanisms, along with the Model Regulation published by the Forum of Regulators (FOR), the Commission said there was a need to accommodate the existing provisions of the Net-Metering Order with recent developments in the power sector. Accordingly, the Commission withdrew the previously published draft Regulations.
Interested persons may furnish their views and suggestions on the draft Regulations to the Commission by August 31, 2026. After considering the views and suggestions received from stakeholders, the Commission may, where appropriate, modify the draft Regulations and finalise them for publication in the Official Gazette.
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