Sikkim, Himachal, Chandigarh Top Performers In RPO Compliances

With Lowest New Additions, Sept Proved To Be The Worst For India's RE Sector 

A latest data from the Ministry of Power claimed that Sikkim, Himachal Pradesh, Chandigarh and Uttarakhand emerged as the best performing states in terms of their compliances towards Renewable Purchase Obligations (RPOs). The data was shared today by Union Minister of Power RK Singh today before the Lok Sabha.

According to the data shared by the minister, Sikkim reported 88.4 percent compliance of RPO by the end of 2022-23. It was followed by Himachal Pradesh (78.7%), Chandigarh (76.2%) and Uttarakhand (60.4%). The lowest RPO compliance was reported by states like Lakhadeep (0.2%), Daman and Diu (2.9%) and Puducherry (6.6%).

Renewable Purchase Obligation (RPO) mandates all electricity distribution licensees to purchase or produce a minimum specified quantity of their requirements from Renewable Energy Sources, as per the Indian Electricity Act, 2003. The order suggests that, the States shall meet a certain percentage of their energy consumption from energy produced from Wind, Hydro, or Other Renewable Power sources. Of course, it must be noted that both Sikkim and HP are essentially hill states with very hydro power resources. That ensures a very high share or even surplus green energy for both these states, something that is becoming an issue now as they seek to levy a charge on the use of water originating in their territory or power generation using that. The Power Ministry has already stepped in once to declare any such charge illegal.

Pursuant to above, the government has been prescribing RPO from time to time. In the latest order dated 22nd July 2022, the RPO trajectory has been prescribed for the States from 2022-23 until 2029-30. As per the order, the States shall meet a certain percentage of their energy consumption from energy produced from Wind, Hydro, or Other Renewable Power sources.

The government meanwhile allows defaulting states to fulfil their RPO compliances by buying Renewable Energy Certificates (RECs). Government norms also mandate penalties for defiance of RPO norms. The minister in his reply also said that it imposed a total of Rs 26.97 crore of penalty in total for four obligated entities in Delhi alone.

Year-wise trajectory of different Purchase Obligations. Source: Ministry of Power