DERC announces (Renewable Purchase Obligation and Renewable Energy Certificate Framework Implementation) Regulations 2018 along with draft order for Renewable Purchase Obligation (RPO)

The Delhi Electricity Regulatory Commission recently issued a Renewable Purchase Obligation and Renewable Energy Certificate framework Implementation, regulations 2018 along with a draft order prescribing Renewable Purchase Obligation (RPO). The draft order will be applicable to any captive user, open access consumers and discoms in the state.

  • The RE projects will have an option of adopting either the tariff pricing service or the REC mechanism for pricing.
  • The projects opting for a tariff under the above-mentioned mechanisms will continue with the same tariff pricing structure until the period of validity of Power Purchase Agreement.
  • For all the obligated entities the aggregated RPO compliance of all the gross purchase from various generating stations will be considered for the quantum of renewable energy purchased towards compliance of Renewable Purchase Obligation.
  • Any surplus electricty generated after RPO compliance of such obligated entity will qualify towards RPO compliance of the Discoms.
  • All the obligated entity can purchase REC for any shortfall in their RPO targets for any fiscal year within 3 months or three trading sessions, provided that in case the obligated entity procures excess renewable power over and above its RPO target in any year, the obligated entity shall be allowed to set off in the following order: (i) against past accumulated shortfall in RPO compliance, if any, (ii) carry forward excess quantum of renewable power after set off against a past accumulated shortfall in RPO compliance up to three succeeding years and shall be set off against the quantum of Renewable Purchase Obligation of such succeeding year(s).

According to the draft order, the annual target for RPO in terms of the RPO-REC regulations for the obligated entities other than the discoms for FY 17-18 to FY 19-20 which will be considered as the percent of the total consumption by the obligated entities excluding of power through hydroelectric plants.

The commission has asked for the stakeholders to send in their comments, suggestions, and opinions to the Draft Delhi Electricity Regulatory Commission (Renewable Purchase Obligation and Renewable Energy Certificate Framework Implementation), Regulation 2018 & draft order by 2nd February 2019.

DERC announces draft guidelines for group and virtual net metering

Delhi Electricity Regulatory Commission (DERC) announced the draft guidelines under the draft guidelines under DERC (Net Metering for Renewable Energy) Regulations, 2014 for implementation of Group Net Metering and Virtual Net Metering Framework under Delhi Solar Policy 2016. The comments & suggestions on guidelines are accepted till 1st January 2019.

The key points of the guidelines are as below:

  • Group net metering: Group Net Metering is an arrangement where the surplus energy exported to the grid from a solar plant at the location of the solar plant can be adjusted in any other (one or more) electricity service connection(s) of the consumer within the NCT of Delhi, provided these connections are in the same DISCOM territory.
  • Virtual net metering: Virtual Net Metering is an arrangement to give access to the Solar Net Metering facility for consumers who do not have a suitable roof for installing a solar system (e.g. residential consumers who live in apartments, consumers with shaded rooftops) there will be the facility of Virtual Net Metering.
  • In the initial phase, only the government entities will be applicable for utilizing Group and Virtual net metering.
  • The provisions for providing land space shall be governed as per provisions Delhi Electricity Regulatory Commission (Supply Code and Performance Standards) Regulations, 2017 as amended & Orders issued under these Regulations from time to time.

Framework for group net metering:

  • Distribution Licensees shall facilitate Group Net metering, whereby surplus energy exported to the grid from a solar plant at the location of the solar plant can be adjusted in any other (one or more) electricity service connection(s) of the consumer within the same distribution licensee area.
  • Smart meters shall be installed at Generation point(s) and the cost shall be borne
    by the distribution licensee
  • The Distribution Licensee shall show, separately, the energy units exported, the energy units imported, the net energy units billed and/or the energy units carried forward, if any, to the consumer in their bill for the respective billing period.

Framework for Virtual net metering:

  • Consumer(s) can collectively own a solar system under the arrangement of virtual net metering.
  • The adjustment of energy generated from solar plant shall be credited in the electricity bill of each participating consumer on the basis of the share of beneficial ownership in the solar plant at the time of application for connectivity under Virtual Net Metering framework.
  • Under Virtual Net Metering, there is no restriction on intra DISCOM or inter DISCOM transfer of surplus energy as per Delhi Solar policy, 2016. Therefore, in case of inter DISCOM transfer of power due to the physical location of either of Generation plant or Consumer in different DISCOM area, normative distribution losses on account of the transfer of power shall be borne by the consumer.


The DERC has released draft RPO regulations in an order dated 28/07/2017. Following are the salient features of the regulation:


  1. RPO Compliance:

  • Aggregate from the gross purchases from generating stations by Obligated entities shall be considered as the quantum of RE purchase for RPO compliance.

  • All the power produced from Waste-to-energy plants shall be procured by the distribution licensee. This will also contribute towards RPO compliance.

  • Quarterly reports shall be submitted by the obligated entities which will include parameters such as capacity addition, generation and purchase of electricity from RE sources. The same shall also be posted on their website.

  1. Role of SNA:


  • Protocol development for regular information collection from RE generating companies, obligated entities, SLDC, chief electrical inspector, ets.

  • RE procurement and RPO compliance reports on a monthly basis by obligated entities which shall also go on their websites. This shall be done by the 10th of the next month.

  • It shall also receive information on or before 30th April from captive users who are consuming electricity generated from captive generating plants about electricity consumption and purchase from RE sources.

  • The same shall be applicable for open access consumers.

This regulation isn’t very different from the previous RPO regulation which was released in October 2012.

The order can be accessed here. The public notice can be accessed here.


DERC has released an order determining the terms and conditions for open access charges for FY 2017-18. Following are the salient features of the order:


  • Eligibility: Short Term Open Access (STOA) is applicable to consumers having a contract demand of 1 MW and above connected at 11 kV or above.

  • Metering Arrangements: The distribution licensee shall provide check meters of the same specifications as the check meters. The distribution licensee shall provide ABT compliant special energy meters at the point of drawal. The formats for availing open access approvals have also been notified

  • The 60 day timeline has also been defined for the procurement, testing and installation of ABT meters.

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The previous open access policy was announced in 2005. As of now, there are close to 60 clients in Delhi in Open Access which are trading power. As per the last policy, the quantum of energy traded had to be constant which is not the case anymore.

Earlier, an undertaking used to be taken in case of a mixed feeder which is still the case. Also, the SNAs asked for Bank Guarentee which included open accessed charges which is also still the case.

The order can be accessed here.

APTEL Directs DERC to adjust the PPAC (Hike in Tariff)

The Appellate Tribunal for Electricity (APTEL) in its judgment dated 25th May 2015 has directed the DERC (Delhi Electricity Regulatory Commission) to determine the Power Purchase Adjustment Cost (PPAC) for the 3rd and 4th quarter of the previous financial year (FY 14-15).

The Judgement came after Tata Power Delhi Distribution Ltd. Filed a petition in the tribunal requesting for directing the DERC to implement the PPAC for 3rd and 4th quarter of Financial Year 2014-15 immediately.

The tribunal after hearing both the parties, in its summary stated that:

“In the hierarchy of the Courts, there is a committing of discipline and such discipline should be maintained by all, otherwise that would lead to chaos in the whole Country particularly, in the Power Sector if such trend of slackness or arbitrariness is allowed to the State Commission like DERC in the present case”.

And the judgment:  

“We direct the Delhi Commission to determine the PPAC for the above said 3rd and 4th quarter within three weeks from today otherwise face the consequences and action will be taken by this Tribunal”.

This decision of APTEL has come as a relief for the distribution licensees, who have been facing financial crunches and revenue gaps. This move will result in increase in tariff hike in the state. The capital is likely to see tariff hike of 5% to 20%.

The order can be reached here.

Related article on Indian Express and NDTV

Report on Delhi Net Metering Policy

DERC Finalizes Net Metering Regulations, 2014

Delhi Electricity Regulatory Commission (DERC) in its notification dated 2nd Sep 2014, has announced net metering regulations for Renewable Energy, which will in turn allow many households and organizations in Delhi to generate and supply power to the grid and avail the benefits of units supplied in their electricity bills.

A brief summary of the Regulation is given in table below:

The new regulation is definitely a major initiative taken by DERC to promote the Solar Energy Generation in the state. It will help DISCOM’s to fulfill their RPO, which they were not able to meet in the previous years.

In a state like Delhi, this policy may bring positive changes, where the tariff for non-domestic consumers varies between 7-8 Rs. Per unit, such consumers may come forward and avail the benefits of the new regulation.

The tariffs for procuring power has not been defined yet, but it is expected to come out soon. When that happens, consumers will be able to determine viability of the projects.

The Net Metering Regulation can be accessed here.

Our previous blog post on DERC Tariff hike can be read here.

Contributed by Chetan Adhikari.

DERC to Finalize Solar Tariff Soon

According to an article in Times of India, it is expected that the DERC (Delhi Electricity Regulatory Commission) may soon finalize Solar Tariff Regulation, by the end of this month. It will define the regulation for net metering and solar rooftop in the state.

This will allow private entities and individuals to setup rooftop solar for their use and feed the excess power to the grid, with settlement done using Net Metering.

The net metering proposal is at an advanced stage. It’s likely to be released this month. It’s meant for anyone who plans to supply renewable energy to the grid. For large private players, the tariff will be decided on a case-by-case basis depending on capital cost and the solar regulations we have. For individuals, the energy they produce can offset their electricity bills“, said DERC chairperson P D Sudhakar.

DERC is also working on the subsidies and the incentives to be given.

According to our analysis, in a state like Delhi, where RE generation is still lacking, this regulation will fuel up the RE generation and may bring a positive changes. Also recent tariff hike in Delhi may lead to domestic and commercial consumers to switch to Rooftop Solar, with Net Metering. This Regulation may also help Discom’s, which are currently suffering from poor RPO compliance. We expect the Solar Tariffs to be equivalent to the tariffs prescribed by CERC, or maybe higher, so as to encourage small consumers to go for solar rooftops.

The Media article can be read here.

Our previous blog on DERC tariff hike can be read here.

DERC hikes power tariff in Delhi

DERC in its order dated 17th July, 2014, approved a tariff hike of 8.32% for three DISCOMs, namely BSES Yamuna Power (BYPL), BSES Rajdhani Power (BRPL) and Tata Power Delhi Distribution Ltd (TPDDL), while the tariff for NDMC has been hiked by 9.52%. Since Delhi has recently notified the open access charges in December, 2013 the tariff hike would increase the leverage to an open access consumer (1 MW and above) to procure cheaper power from the open market.

The other major features of the order include:

  • As a move to help DISCOMs to liquidate the principal of their accumulated deficit, DERC has decided to continue with the surcharge of 8% for all the four DISCOMs including NDMC.

ToD tariff extended for all consumers. This would enable utilities to adopt various DSM measures that would help in lowering the peak demand and thereby reducing costly power purchase.

  • Also an additional surcharge, varying from Rs 0.30/kWh to Rs 3.00/kWh has been levied on purchase of power through open access, there is still potential for an open access consumer in Delhi to purchase power through Power Exchanges such as IEX for six months in a year.
  • The purchases of energy from renewable sources through open access has been exempted from wheeling, transmission and additional surcharge. Thus, the open access consumers can avail green power to procure cheaper power. Many large consumers in Delhi have already started filing open access applications for availing open access.
  • It is anticipated that the recent tariff hike would act as a catalyst in promoting open access in Delhi and large industrial and commercial consumers would flock to PXs and bilateral transactions to reduce the impact of the tariff hike.

The orders can be accessed here.

Contributed by Mithun Dubey

Delhi discoms request to waive RPO of FY13

Delhi discoms have requested to DERC, to waive RPO targets of FY13. This request was put forward by discoms in their respective ARR petitions for FY15. The discoms contend that RPO regulations were introduced in Delhi only in October 2012 and as such there was little time in that year to meet the targets. The request can be read as (Petitioner – Delhi discom)-

“In this regard the Petitioner would like to submit that since the Regulations were issued in the mid of FY 2012-13 and the Renewable Energy Generation in Delhi was not fully developed, it was not possible to meet the RPO Targets during FY 2012-13. The Petitioner appreciates the fact that the energy generation through Renewable Energy Sources is required to be promoted by achieving the RPO Targets but at the same time the Renewable Energy Sector is also required to be developed in Delhi for fulfilment of RPO. The Petitioner has invited competitive bids for procurement of Renewable Power for both Solar and Non-Solar plants. The details about the bidding process and shortlisted bidders have already been submitted to the Hon’ble Commission. The Hon’ble Commission would appreciate the fact that RE Generation in Delhi is at nascent stage and will gradually develop in the coming years. The Petitioner in the meeting with the Hon’ble Commission held on October 9, 2012 also highlighted the difficulty in mobilising resources to meet the RPO announced by the Hon’ble Commission.”

Delhi discoms BYPL and BRPL mde reference to MERC’s order dated 7th August 2009, where the RPO targets from FY08 to FY10 were exempted due to shortfall in projected RE capacity addition.

While it is left on DERC to decide on this matter, any decision in favour of the request would further dent the ongoing positive enforcement efforts in other states.

The ARR petitions are available on DERC’s website.

Our recent blog-post highlighting projections by discoms for meeting RPO of Fy15 can be read here.

Relevant media article – Times of India.

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