Karnataka Amends RPO Norms To Align With Centre’s Trajectory

Karnataka Amends RPO Norms To Align With Centre's Trajectory

The Karnataka Electricity Regulatory Commission (KERC), in its latest order, has proposed amending its state regulation on Renewable Purchase Obligations (RPOs). This proposal arises at a time when the RPO trajectory released by the Ministry of Power contradicts the state’s regulations on the matter.

KERC issued the KERC (Procurement of Energy from Renewable Sources) (Eighth Amendment) Regulations in 2022, which outlined the RPO trajectory for the obligated entities in Karnataka up to 2024-25.

Meanwhile, the Energy Conservation (Amendment) Act of 2022, notified on October 20, 2023, established the minimum share of renewable energy consumption by obligated entities. Clause 8 of the Union government’s notification specifies that the RPO trajectory will come into effect from April 1, 2024.

In its order, KERC stated that the RPO targets specified in its regulations differ from those outlined in the Union government’s notification. Under KERC’s provisions, the RPO target for each ESCOM (Electricity Supply Company) is distinct, whereas the Union government’s RPO target applies to the state as a whole.

KERC also highlighted other differences, including the renewable energy sources, fungibility, net consumption calculation for RPO, penalty provisions for non-compliance, and other related factors. The state power regulator expressed concerns that implementing both KERC’s regulations and the Union government’s notification simultaneously would be challenging.

In its final order, KERC stated, “The RPO target and related matters applicable for the years 2024-25 (FY25) for all the ESCOMs and HRECs, deemed licensees, the designated consumers including captive and open access consumers shall be as per the provisions of the Energy Conservation (Amendment) Act 2022 (Act No 19 of 2022) and Government Of India notification No S.o 4617 (E) dated 20.10.2023. The directions given in the tariff order for FY25 dated 28-2-2024 stand modified to this effect.”

It further added, “Accordingly, the Office is directed to propose necessary amendments to the KERC (Procurement of Energy from Renewable Sources) Regulations duly following the procedure.”