This question was asked inGPSC Deputy Executive Engineer (Electrical) Class-2 Master Paper 2026Question 161 of 195 published · Gujarat Public Service CommissionOpen paper
Q161ModerateRenewable Energy Policy

With reference to "Energy Banking," consider the following:
1. It allows a renewable energy generator to "deposit" surplus power into the grid and "withdraw" it later.
2. Banking is typically allowed on a monthly or yearly basis as per State Electricity Regulatory Commission (SERC) norms.
3. The grid owner usually charges a "banking fee" in the form of a percentage of the energy stored.
Which of the statements given above is/are correct?

Answer & step-by-step solution
Correct answer: C. 1, 2 and 3
Quick explanation

Energy banking is a regulatory arrangement in which eligible renewable generation exported at one time can be adjusted or withdrawn against consumption in another permitted period. The settlement period, banking charge/loss and eligibility are set by the applicable electricity-regulatory framework, so exam questions should distinguish the concept from the exact state-specific percentages.

Exam focus: Separate the concept of banking from the current regulatory rate. Common trap: Do not assume banking is free or unlimited.

Statement-wise Verification

  • Statement 1 - Correct.
    It allows a renewable energy generator to "deposit" surplus power into the grid and "withdraw" it later.
    Energy banking is a regulatory arrangement in which eligible renewable generation exported at one time can be adjusted or withdrawn against consumption in another permitted period.
  • Statement 2 - Correct.
    Banking is typically allowed on a monthly or yearly basis as per State Electricity Regulatory Commission (SERC) norms.
    The settlement period, banking charge/loss and eligibility are set by the applicable electricity-regulatory framework, so exam questions should distinguish the concept from the exact state-specific percentages.
  • Statement 3 - Correct.
    The grid owner usually charges a "banking fee" in the form of a percentage of the energy stored.
    Banked energy is settled subject to the permitted period, charges/losses and regulations.

Core Concept

Energy banking is a regulatory arrangement in which eligible renewable generation exported at one time can be adjusted or withdrawn against consumption in another permitted period. The settlement period, banking charge/loss and eligibility are set by the applicable electricity-regulatory framework, so exam questions should distinguish the concept from the exact state-specific percentages.

Formula / Key Relationship

Banked energy is settled subject to the permitted period, charges/losses and regulations.

Why the Other Options Are Wrong

Option A is incorrect because it omits correct statement(s) 3. Option B is incorrect because it omits correct statement(s) 1. Option D is incorrect because it omits correct statement(s) 1, 2.

Exam Shortcut / Approach

Separate the concept of banking from the current regulatory rate.

Common Mistake

Do not assume banking is free or unlimited.

Quick Revision

Banking Settlement and Charges is linked with Energy Banking, Renewable Energy and Energy Management. Separate the concept of banking from the current regulatory rate.

Exam tipSeparate the concept of banking from the current regulatory rate.
Verified · SRO editorial desk Report
Try it before reading the solution — tap an option.0/1✓ 0✗ 0

More Renewable Energy Policy questions