Forum of Regulators discusses Issues of RPO
Forum of Regulators (FOR) held its 41st meeting on 27th June 2014, in Delhi. The Ministry of New and Renewable Energy (MNRE), through a presentation, raised several issues concerning Renewable Purchase Obligation (RPO).
The Key issues highlighted in the presentations are as below:
- MNRE suggested that the validity REC’s should be extended by 6 months, arguing that a total of 50059 REC’s will expire in next six months.
- It was suggested that MNRE could consider purchasing the unsold REC’s by using National Clean Energy Fund.
- The Floor price of Solar REC’s can be reduced due to drastic change (reduction) in Solar PV tariffs over last three years.
- Giving “MUST RUN” status to RE generation, so that total RE generation could be evacuated, and have a provision of “Deemed Generation” in case SLDC asked RE generators to back down.
- Due to poor RPO compliance in all states, the members agreed upon the need of strong RPO enforcement.
- RPO compliance cost should be allowed in ARR (Average Revenue requirement).
- The issue of allowing DISCOM’s to purchase REC’s for procuring Renewable Energy beyond their RPO targets was also discussed.
- The forum suggested that a concept of Renewable Generation Obligation (RGO) for conventional Thermal power plants need to be introduced.
- Suggestions were given on considering power generated from Large Hydro Projects as Renewable Energy.
- The Forum also suggested that the concept of Hydro Power Obligation should be introduced.
From the issues discussed in the meeting it can be deduced that the regulators may come up with strong steps towards RPO compliance. Also, the regulators are set to promote RE generation by making provision for providing proper transmission network for RE generation.
More information can be accessed here.
Contributed by Dheeraj Babariya.