GERC to Amend RPO Regulations

Changes to (Procurement of Energy from Renewable Sources) (Third Amendment) Regulations Have Been Proposed

The Gujarat Electricity Regulatory Commission (GERC) has proposed changes to regulations regarding procurement of energy from renewable energy generating sources; these will be the “Third Amendments in the GERC (Procurement of Energy from Renewable Sources) Regulations, 2010”.

In the GERC proposal, the amended regulations have been named the (Procurement of Energy from Renewable Sources) (Third Amendment) Regulations, 2020. The GERC has put the draft proposal up for comments. A public hearing will; be held on August 7, 2020.

The state electricity regulatory commission (SERC) has proposed the changes keeping in view the fact that the compensation rate for surplus energy injected into grid needed to be re-calibrated according to reflect present-day changes.

Key Points

• Each distribution licensee will purchase a percentage of total electricity demand in its area (in kWh) from renewable energy sources. This percentage will include transmission and distribution losses.
• Captive and Open Access consumers will also purchase electricity (in kWh) from renewable energy sources, at a defined minimum percentage of total consumption.
• While defining/calculating the percentage, power demand met through large hydro projects will be excluded.
• For captive projects commissioned on or after April 1, 2016, the renewable purchase obligation (RPO) target will be equal to the target applicable for the year in which project was commissioned.
• In case of any augmentation of the captive generating plant, the RPO target for augmented capacity will be equal to the RPO target applicable for the year in which such augmented capacity has been commissioned.
• If the minimum quantum of power purchase either from solar or wind (including Biomass, Bagasse, Biogas, Hydro and MSW) is not available in a particular year of FY 2017-18 to 2021-22, then in such cases, additional renewable energy available either from solar or wind will be utilized for fulfillment of RPO.
• If the captive and open access consumers are unable to fulfill the criteria of RPO, the shortfall of the targeted quantum would attract payment of regulatory charge.
• For renewable energy projects set up under the renewable energy certificate (REC) mechanism that supply power to third party consumers or use it for captive utilization, the distribution licensee will pay a per unit rate determined by GERC for surplus power that the distribution licensee uses.

The GERC has also proposed that it will decide the applicability of cross subsidy surcharge and other commercial terms for different sources of renewable energy from time to time.

Recently the APTEL had cautioned GERC regarding delay in revisiting open access regulations.