RPO Target for 2022-23 to Continue in Absence of Clear Target for 2023-24: WBERC

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While most States have specified Renewable Purchase Obligation (RPO) targets for 2023 to 2024, West Bengal has not mentioned its RPO goal for said time period. The absence of a clear RPO target for the year 2023-2024 has been challenged before the WBERC (West Bengal Electricity Regulation Commission).

The WBERC had last specified the RPO target upto 2017 to 2018 for all the utilities under the Commission. It had further added that for the subsequent years (2018-2019) the increase in the RPO target shall be 1% each year till the ultimate target is reached by the distribution licensee.

The WBERC in its order dated December, 2020 had specified the RPO targets for 2020-21, 2021-22 and 2022-23. Bengal Energy Limited and Tata Power Limited had questioned whether fossil fuel based cogeneration can be accepted as renewable energy sources and qualified for RPO. The Commission, however, has maintained that it is not in a position to amend this renewable energy regulation.

The High Court at Calcutta, in its order passed in July, 2023 on this issue, said:

“The interim order, already granted, shall continue and it stands modified to the extent that the order of interim stay granted will be confined to the amendment made to the regulation qua industrial waste and cogeneration and in other respects including solar energy the order of stay shall not operate.”

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Thus, the order does not include solar energy under its ambit.

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Further, it has been indicated that distribution licensees are confronting a challenge to meet the RPO requirements in the absence of specified targets for 2023-24. The Commission is required to specify the year wise target of RPO for the distribution licensee. The WBERC, taking the matter under serious consideration, has said that the order will be reviewed to facilitate distribution licensees under predicament.

In its judgment on the order under stay, the Commission has said that the RPO target for 2022 to 2023 shall continue till further order of the Commission “in view of the decision of the High Court”.

A copy of the order will also be served upon SLDC (State Load Despatch Centre) and distribution licensees under the WBERC. The State Department of Power will also be served the order.