Rajasthan To Have Mandatory Energy Storage Obligation From Next Year

RERC's new RPO regulations to come into force from April 1, 2024. Photo by-Pexels

The Rajasthan Electricity Regulatory Commission (RERC), in its latest suo motu order, ordered the finalization of its new regulations related to Renewable Purchase Obligations (RPO)s for the obligated entities in the state. It came after the Ministry of Power earlier made a trajectory of RPOs of different clean sources. The new regulations have batted for a mandatory obligation for energy storage systems.

RERC’s new RPO regulations to come into force from April 1, 2024. Photo by-Pexels

The new regulations have been named RERC (Renewable Purchase Obligation Regulations 2023. This will come into effect from April 1, 2024, after its publication in the official gazette. This new regulation will be applicable to electricity distribution companies (discoms), open access consumers, and captive power plant (CCP) entities with an installed capacity of 1 Megawatt (MW) or more. 

It comes after the RERC issued its draft norms on the matter and sought a response from the public and the stakeholders. It also held its public hearing on April 20 this year. Most RPO targets prescribed in the Rajasthan rules are aligned with the Ministry of Power trajectory. 

As per the new RPO targets, there will be a dedicated RPO target for wind energy and hydro energy, while other forms of renewable power like solar and biomass have been included broadly under the ‘other RPO’ segment. The new regulations have mandated the regulated entitled to have a total RPO of 29.91 percent in 2024-25, whereas these entities would have to take this RPOs up to 43.33 percent by the end of 2029-30. 

Meanwhile, Different stakeholders urged the RERC to consider separate solar and biomass RPOs. Some stakeholders had also asked for a cumulative RPO target rather than yearly RPO targets. However, the RERC rejected all these arguments and stuck to its draft regulations. In its order, it said that most of these targets were set by the Ministry of Power. 

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The new regulations also have set an RPO of 29.91 percent for 2024-25 and mandate to increase it year-wise to up to 43.33 percent by 2029-30. The new rules also have earmarked a dedicated Energy Storage Obligations (ESO). As per the breakup of the details, RERC has fixed the storage (on an energy basis) at 1.5% for 2024-25, whereas it wants to increase it to 4 percent by the end of 2029-30. 

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RERC also said that till April 1, 2024, all the compliance of RPO and related rules would be governed by the RERC (RPO) Regulations 2007 and other relevant regulations. 

“Before parting with this memo, the Commission would like to note that Rajasthan has a very high potential for RE, and Discoms should buy the maximum power available within the state so as to reap benefits for cost-effectiveness and scalability. The procurement by Discoms for RPO should be through competitive bidding in accordance with guidelines issued by GoI under Section 63 of the Electricity Act, 2003 and where such guidelines have not been issued,” the order said.