On 20th November 2013, in petition no. 35/ 2013, MPERC took serious note on the issue of non-compliance of solar RPO by state utilities/discoms. It can be read in the order as:

Notwithstanding the aforesaid, the Commission is constrained to express serious concern on the lack of effort on the part of the utilities in fulfilling their respective RPOs. More than four months of the current financial year still remain and the respondents are directed to pursue renewable energy procurement to the maximum so that the shortfall against the RPO is minimized. Continuous failure on the part of utilities in this regard cannot be allowed to go unpunished.

MPERC also asserted that the petitioner & other such parties have never had any intention of selling power to discoms, despite being located within the state, as for such parties, opting  for REC mechanism brings exorbitant profits. This act is depriving the state discoms from solar power procurement as the same quantum of power (claimed by solar generators for REC) cannot be claimed by discoms towards fulfillment of their solar RPO targets.

However, MPERC shied away from taking a stern decision. Although, MP’s likelihood for solar RPO compliance has been estimated as high.

Previously, in September 2013, MPERC, through a fresh directive, had offered to account additional cost with regards to RPO compliance in true-up exercise.  More on this directive can be found by following this link.

The present order can be accessed here.