Himachal Pradesh RPO regulation’s first amendment

Honorable Himachal Pradesh Electricity Regulatory Commission (HPERC) declared its Renewable Power Purchase Obligation regulation’s first amendment.

Following are the key highlights of the regulation:

  1. Previously the RPPO was defined till financial year 2011-13, now they have changed and declared the new RPPO till financial year 2021-22
  2. Solar RPPO reduced from .1% to .01% for the FY 2011-12. Its 10.01 % ( 10 % Non Solar +0.01 % Solar ) for FY 2011-12

The regulation can be found here.


Try India’s First Online RPO Calculator here

CERC Declares New REC Floor and Forbearance Price for FY 2012-2017

Honorable Central Electricity Regulatory Commission (CERC) has declared new floor and forbearance price for REC (Solar and Non Solar) for the control period of FY 2012-2017 (the order is available here). The Commission has considered the comments of the stakeholders and their views at the public hearing on the proposed floor and forbearance prices for the control period 2012-2015.

The new floor and forbearance prices is shown below:

Non Solar REC ( Rs/MWh) Solar REC ( Rs/MWh)
Forbearance Price 3300 13400
Floor Price 1500


REC Trading Date for August and October 2011 Amended

Since the last Wednesday, the usual day for RECs trading, in August and October is a holiday, CERC has clarified that trading will take place on the next working day.

The order can be found here.


Delhi Draft RPO Published

Delhi published its draft RPO regulation recently. The highlights are:

  • 2% RPO in first year, increasing to 3.4% next year and going up to 9% by 2016-17
  • Obligation is on Distribution Licensees, Captive Consumers (>5MW capacity and using conventional sources of energy) and Open Access users (from conventional sources of energy)

RPO regulation from Delhi was long awaited, as it is a region with significant consumption, and also one of the last few states to come out with the regulation. Andhra Pradesh is the last remaining major state.

A quick analysis of the draft regulation suggests that it is primarily in line with the model regulations drafted by Forum of Regulators (FOR). However, certain things stand out:

  • Obligation is on captive users with >5MW of capacity – this is in contrast with most states, which have a 1MW limit
  • The obligation is on captive users “using other than renewable energy sources exceeding”. We believe this is in contrast to section 86(e) of the Electricity Act, which requires RPO on ‘consumers’ of electricity. Exempting one category of consumers (in this case RE consumers) will contradict the provisions of the act. This was also laid out the opinion given to FOR by the Solicitor General. Other states impose RPO on all consumers, and if the consumer happens to be generating power from RE sources then he is allowed to fulfill such an RPO from its own RE use.

The Draft regulation and SOR can be found by clicking on the respective links.


Try India’s First Online RPO Calculator here


TNERC’s Regulation on REC/RPO

Honorable Tamil Nadu Electricity Regulatory Commission (TNERC) declared its much awaited RPO/REC amendment regulation.

Following are the key highlights of the regulation:

  • RPO Reduced from 14% to 9% (8.95 Non-Solar + 0.05% Solar) for FY 2011-12
  • Eligibility Criteria for RE CPP as per CERC guidelines only.
  • RPO applicable on OA and Captive Consumers as well.

RPO to be implemented in phased manner:

  1. First Phase (till 31, March 2012): All CPPs/OA consumers having sanction demand of 2 MVA and above are under RPO
  2. Second Phase (FY-2012-13): All CPPs/OA consumers having sanction demand of 1 MVA and above
  3. Third Phase (1, April, 2014 onwards): All CPPs/OA consumers irrespective of sanctioned demand


Try India’s First Online RPO Calculator here

Green power producers find dealing with RECs unviable in Karnataka.

An article regarding Karnataka Electricity Regulatory Commission’s guidelines which is not in sync with those of the Central Electricity Regulatory Commission (CERC) was highlighted in The Hindu Business Line.

The KERC guidelines are also not clear in specifying eligibility criteria. “They do specify intra/inter state open access eligibility criteria for the Renewable Energy (RE) Generator when it sells RE power to a consumer,” says Mr. Santosh Kamat, Co-founder of Auromira Energy, a company that produces electricity from renewable sources.

RE producers see a mismatch between the KERC guidelines and those given by the CERC. With regard to eligibility of
captive generators for RECs, while the CERC says that captive generators who avail themselves of other benefits such
as preferential tariff are not eligible, the KERC guidelines say that such parties are eligible, says Mr Vishal Pandya of
REConnect Energy Solutions, a company which provides services in RECs, energy efficiency and electricity portfolio management. Read more…

India’s Biomass Scenario

In an article in the Business Standard on the current scenario of the biomass plants in India was reported. Burgeoning raw material costs and a mismatch between generation cost and pricing have led biomass power plants to function well below their capacity and, in some cases, end operations.

Against an estimated potential of 18,000 MW, the installed capacity of biomass plants in India is 2,664 MW. These plants are in Maharashtra (403 MW), Andhra Pradesh (363 MW), Karnataka (365 MW), Madhya Pradesh (7 MW), Tamil Nadu (488 MW), Punjab (74 MW), Haryana (35 MW), Rajasthan (73 MW), Uttar Pradesh (592 MW), West Bengal (16 MW) and Uttarakhand (10 MW), among others.

Industry sources said it was difficult to run these plants, as raw material like forest residue, agricultural waste and non-cattle feed was not available even at Rs 3,000 per tonne. Read more…

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