The Jharkhand State Electricity Regulatory Commission (JSERC) in a recent notification has proposes its RPO (Renewable Purchase Obligation) and its compliance regulations 2016. The regulations will come into force from the date of its publication in the Jharkhand gazette and shall remain in force upto 31st March 2020.

RPO applicable to following category:

  1. Distribution Licensee
  2. Grid Connected Captive Generating plant with installed capacity of 5 MW and above
  3. Open Access Consumer having contract demand of 1 MVA or consume electricity procured from fossil fuel based generation.

The draft notification proposes the minimum percentage of its total consumption for Obligated Entities during a year is shown below:

Minimum Quantum of purchase in (% ) from renewable energy sources (in terms of energy in KwH)
Year Solar Non Solar Total
2016-17 1.50% 3.50% 5.00%
2017-18 2.25% 4.25% 6.50%
2018-19 3.25% 5.25% 8.50%
2019-20 4.50% 6.50% 11.00%

 

Apart from the RPO Targets the commission has also proposed penalty for non-compliance by obligated entity which fails to meet its compliance during any year.

Commission has proposed penalty under Section 142 of the Act and forbearance price penalty on the basis of shortfall in units and may direct the obligated entity to deposit it in separate account and provided that as directed by commission funds may be used for purchase of certificates.  Distribution licensee shall be in breach of its license if it fails to deposit the amount within 15 days of the communication and penalty will not pass through in Aggregate revenue requirement.

Commission has proposed priority for open access and connectivity within distribution system or transmission system as case may be irrespective of installed capacity for RE Projects in the state.

Comments:

  • RPO% proposed is way lower than NAPCC RPO target which is 15% by 2020.
  • Solar RPO proposed is not in line with the National Tariff Policy 2016 which has defined Solar RPO % to be 8% by 2022
  • RPO for Open Access is only proposed on conventional consumption while it should be on all consumption
  • CGP installed capacity of 5 MW must be reduced to 1 MW for RPO Applicability
  • Commission should allow existing projects to participate in REC Mechanism after three years of prior termination of PPA as defined in CERC REC Regulations.

The order can be accessed here.