Solar and non-solar targets and compliance
Notes on the state-wise RPO targets:
- Ministry of Power (MoP) targets: In July 2016, the Ministry came out with guidelines notifying the RPO trajectory for three years from 2016-17 up to 2018-19 to be uniformly applicable to all states and UTs. RPO was defined on the total consumption of electricity by an obligated entity excluding that met from hydro sources. The guidelines also specified that cogeneration from sources other than RE is not to be excluded from total consumption for calculating RPO compliance.
Further, in June 2018, MoP issued guidelines for subsequent years, up to FY2021-22, setting an RPO target of 21% RE by 2022, equally divided between solar and non solar power.
- Andhra Pradesh: It came out with RPO regulations in 2017 containing RPO targets from 2017-18 to 2021-22.
For FY2017-18 onwards, base electricity consumption for calculation of RPO excludes consumption met from hydro sources.
Under the regulations, the purchases made from solar roof-top projects (gross metering), the unutilized banked energy deemed to have been purchased by the Discoms from renewable energy projects under Open Access Regulations, purchases made at mutually agreed prices and all such other transactions for which the generator(s) does not claim RECs shall also be treated as fulfillment of the Renewable Power Purchase Obligation (RPPO) prescribed herein.
- Gujarat: The latest regulations are the (Procurement of Energy from Renewable Sources) (Second Amendment) Regulations, 2017. The Second Amendment provides RPO targets from FY2017 18 (targets for the previous financial years come from First Amendment in 2014).
In the regulations, targets are defined separately for Wind and Others (biomass, bagasse, hydro and MSW). For the portal, the total non solar RPO has been considered.
RPO is defined as share of “total purchase of electricity from RE sources, taken as the sum of all direct purchases from generating stations based on RE sources as well as the purchase from any other licensee.”
- Assam: The latest regulations are the AERC (Renewable Purchase Obligation and its Compliance) Regulations, 2010, (Second Amendment), 2017. These regulations provide targets for the period from FY2016-17 to FY2021-22.
For a distribution licensee, RPO is defined as percentage of total energy sold to consumers in its area.
- Haryana: In July 2017, a discussion paper for the 6th Amendment to the existing regulations, which provided RPO targets from FY2016-17 onwards. In July 2018, an order was passed to make the amendment official.
The RPO is on total consumption of electricity, excluding consumption met from hydro sources of power.
As per the regulations, the obligated entities can't be allowed to carry forward obligations from one financial to next.
- Himachal Pradesh: The latest regulations are the HERC (Renewable Power Purchase Obligation and its Compliance) (Third Amendment) Regulations, 2017, which provides targets from FY2016 17 to FY2018-19. Second amendment was made in 2016.
The RPO is on total consumption of electricity, excluding consumption met from hydro sources of power. The consumption of electricity will include the quantum of electricity purchased (including the T&D losses within the state).
- Karnataka: The latest regulations are the Fifth Amendment, 2017, which provide the RPO targets from FY2015-16 to FY2018-19. The amendment provided targets starting from FY16.
The RPO is on total consumption of electricity, excluding consumption met from hydro-electric sources of power.
Further, solar power purchase in excess of its RPO can be used to adjust against the shortfall in non solar power purchase.
- Kerala: The latest regulations are the KSERC (Renewable Energy) Regulations, 2015.
In case of a distribution licensee, RPO is defined as the percentage of energy supplied to consumers in its area.
Solar power purchase in excess of its RPO can be used to adjust against the shortfall in non solar power purchase.
- Madhya Pradesh: The latest regulations containing RPO targets are the Sixth Amendment to the MPERC (Co-generation and generation of Electricity from Renewable Sources of Energy) (Revision-I) Regulations, 2010, notified in 2017.
The RPO is on total consumption of electricity, excluding consumption met from hydro sources.
- Maharashtra: The latest regulations are the MERC (Renewable Purchase Obligation, its Compliance and Implementation of Renewable Energy Certificate Mechanism) Regulations, 2016.
The RPO is on total purchase of electricity from all sources.
- Odisha: The latest regulations are OERC (Procurement of Energy from Renewable Sources) Regulations, 2015. Odisha issued a draft amendment in 2016 to change the RPO to be in line with the MoP guidelines.
The RPO is on total consumption of electricity. (However, in the amendment proposed in 2016, which hasn’t been finalized, the RPO targets were revised upward and for solar, the RPO percentage was defined based on total consumption, excluding consumption met from from major hydro sources, both state and central.)
- Rajasthan: The state has multiple regulations setting RPO targets for the obligated entities. These include RERC (Power Purchase & Procurement Process of Distribution Licensee) Regulations, 2004, RERC (Renewable Energy Obligation) Regulations, 2007, and RERC (Renewable Energy Certificate and Renewable Purchase Obligation Compliance Framework) Regulations, 2010.
For distribution licensees, RPO targets for distribution licensees had been provided up to 2016-17 under the 2004 regulations. RPO targets for the subsequent years, FY2017-18 and FY2018-19, are in amendments proposed in 2016 and finalized in 2017. Further, in these amendments, RPO is on total consumption of electricity, excluding consumption met from hydro sources.
- Tamil Nadu: The latest regulations are the Amendment to the TNERC (Renewable Energy Purchase Obligation) Regulations, 2010, notified in 2016. They provide RPO targets for FY2015 16 to FY2017 18.
The RPO is on total consumption of electricity.
Further, excess solar can be used to offset non solar obligation.
- Uttarakhand: The latest regulations are the UERC (Tariff and Other Terms for Supply of Electricity from Renewable Energy Sources and non-fossil fuel based co-generating Stations) (Sixth Amendment) Regulations, 2017, which provide RPO targets from FY2013-14 to FY2018-19.
The RPO is on purchase from all energy sources; however, for FY2017-18 and FY2018-19, consumption met from hydro sources is excluded.
Further, draft regulations were notified recently in April 2018, providing targets from FY2018-19 to FY2022-23.
- West Bengal: The latest regulations are the Generation from Renewable Sources Regulations, 2013. The regulations also define Ultimate Target as 10%.
RPO is based on energy input in the system of the licensee after adjustment of the losses.
Notes on RPO compliance verification and implementation in the states analyzed:
- Maharashtra (MSEDCL): Maharashtra Energy Development Agency (MEDA) is designated as the state agency to verify RPO compliance of obligated entities in the state. Accordingly, RPO settlement data for FY2016-17 for the Discom MSEDCL was submitted by MEDA to the ERC in November 2017. MSEDCL is meeting its overall non-solar RPO (in the latest regulations in Maharashtra, a certain part of the non-solar RPO is reserved for purchase of electricity from micro and mini hydel projects; see REDP for more details), while there is a shortfall of 61.9% in solar RPO. Purchase of non-solar RECs has been done for compliance. A reason provided by MSEDCL for the shortfall in solar RPO was the suspension of solar REC trading by Supreme Court in May 2017 (see Chap. 6). In an order passed in July (MERC, 2018), the ERC directed the Discom to meet this shortfall my March 2019, even though the Discom had requested time till March 2020.
- Tamil Nadu (TANGEDCO): The true up exercise for FY2016-17 hasn’t taken place yet for the Discom. However, in the order on Generation and Transmission Tariff for FY2017-18 and ARR for FY2016-17 (TERC, 2017), FY2017-18 and FY2018-19, the Discom provided actual figures for FY2016-17 up to January. The approved power purchase for FY2016-17 has been used to estimate the solar and non solar RPO compliance. Only RE purchase made through PPA and purchase of banked energy have been considered for compliance.
- Gujarat (multiple Discoms): Gujarat Energy Development Agency (GEDA) provides annual compliance reports for the Discoms GUVNL, MPSEZ Utilities Ltd., Torrent Power Ltd. (Ahmedabad and Surat) and Torrent Power Ltd. (Dahej) on its website. For the compliance, the compliance of Torrent Power Ltd. has been considered as a whole. Purchase of RECs has been considered.
- Rajasthan (multiple Discoms): In the case of Rajasthan, the three Discoms’ compliance data has been estimated based on true-up petitions submitted for FY2016-17. Only RE purchase made through PPA has been considered.
- Karnataka (multiple Discoms): RPO compliance verification is done in the yearly tariff order itself in the state. RPO compliance for the year 2016-17 has been verified in the respective tariff orders for FY2018-19 for the Discoms (KERC, 2018). RE purchase including RECs, short-term purchase and purchase of banked energy is considered. All the five Discoms have complied with their obligations. And, any shortfall (after adjusting for excess solar, as applicable, as allowed under existing regulations) has been allowed by the ERC to be carried forward to the next financial year.
- Madhya Pradesh (multiple discoms): Collective RPO for all the four Discoms has been estimated based on the actual power purchase in FY2016-17 provided in the ARR and Tariff Petition for FY2018-19 submitted by the Discoms. Only RE purchase made through PPA has been considered.
- Telangana (multiple discoms): RPO compliance for the Discoms has been estimated based on the provisional true up of purchase of electricity from renewable sources (as a whole) for FY2016-17 provided in the tariff order for FY2017-18. The split between solar and non solar RE purchase is based on ARR filings of the Discoms for FY2018-19. Only RE purchase made through PPA has been considered.