As industrial and commercial consumers across India look for sustainable and cost-effective energy solutions, Group Captive Renewable Energy has emerged as one of the most attractive models under the Green Open Access regime.

But what is it exactly—and why is it growing so fast?

🌿 What is a Group Captive Model?

Under the Electricity Act, a Group Captive model allows multiple consumers to collectively invest in a renewable energy project and use its power to meet their own consumption needs—without being considered third-party sale.

Key Criteria:

• Consumers must hold at least 26% equity in the generating project
• Must consume at least 51% of the power generated

This model helps companies unlock waivers on cross-subsidy surcharges (CSS) and gain a more predictable, long-term power cost.

⚡ Why Are Businesses Choosing Group Captive?

1. Cost Savings: Long-term RE procurement at lower tariffs
2. Regulatory Benefits: Exemptions on surcharge, losses, and duties in several states
3. Sustainability Reporting: Eligible for RE100 claims and carbon footprint reduction
4. Customization: Flexible structuring to fit different business scales

📘 Common Challenges

Despite its benefits, group captive models come with challenges like:

• Complex equity structuring
• State-wise differences in compliance norms
• SLDC and DISCOM approvals
• Legal clarity on shareholding and wheeling

🤝 How GEOAIC Helps

GEOAIC bridges the gap between consumers, developers, and regulators by:

• Providing expert legal and regulatory guidance
• Connecting you with experienced project developers
• Offering workshops on group captive structuring and compliance

We simplify the process so you can focus on your energy goals.

Thinking about going Group Captive? Join GEOAIC and get expert support.
[Link to Join] | [Link to People Directory]

Blog 3: Top Legal & Regulatory Hurdles in Green Open Access—and How to Overcome Them

Published on: [Insert Date]
Author: GEOAIC Legal & Regulatory Cell

The Green Open Access model has massive potential, but navigating the legal and regulatory landscape can be a real challenge—especially for new entrants.

Whether you’re a project developer or a commercial consumer, here are the top hurdles you might face—and how GEOAIC can help.

🧱 Common Challenges

1. Discom Resistance

Many DISCOMs are hesitant to allow open access migration due to revenue loss. This can lead to:

• Delayed or denied NOCs
• Excessive banking and wheeling charges

2. State-Wise Variations

Every state interprets open access rules differently. What’s allowed in Karnataka may be blocked in Maharashtra or Gujarat.

3. Captive Compliance Disputes

Equity structure, consumption proportion, and metering compliance are under strict scrutiny. Minor lapses can invalidate the entire captive claim.

4. Unclear SLDC Protocols

Load flow studies, connectivity approvals, and coordination between agencies often lack transparency or timelines.

5. Ambiguity in Group Captive Shareholding Rules

Interpretation of ‘beneficial ownership’ and equity dilution across states causes confusion and legal challenges.

🔍 How GEOAIC Adds Value

• Policy Interpretation Support: Access to our expert panel of legal advisors for state-specific clarity
• Templates & Documents: Ready formats for PPAs, SLDC letters, equity declarations, and more
• Regulatory Updates: Stay ahead of rule changes, deadlines, and tariff orders
• Dispute Assistance: Guidance on handling DISCOM or SLDC-related conflicts
• Capacity Building: Workshops and Q&As on regulatory do’s and don’ts

Don’t let complexity block your green energy transition.
Let GEOAIC be your legal and regulatory backbone.