MERC asks BEST to meet shortfall in RPO by March 2014
Electricity Regulator of Maharashtra (MERC) on 6th March 2014 released 3 separate orders with regards to verification of RPO compliance of state discoms; namely Reliance Infrastructure Limited – Distribution (RIL-D), Tata Power Company – Distribution (TPC-D) and Brihan Mumbai Electric Supply and Transport (BEST).
Maharashtra currently has the following defined RPO targets in its relevant regulations.
Further, the Distribution Licensee(s) are also mandated to procure 0.1% per year of their Non-Solar (other RE) RPO obligation for the period from FY 2010-11 to FY 2012-13 and up to 0.2% of their Non-Solar (other RE) RPO obligation for the period from FY 2013-14 to FY 2015-16 by way of purchase from Mini Hydro or Micro Hydro power project.
Recently there were updates that Govt. is mulling to introduce hydro-tradable certificates. More on this can be read here
Order w.r.t RIL – D:
In an order dated 5th Dec 2012, MERC had waived/relaxed the shortfall in RPO compliance for FY11 & FY12 and had ordered cumulative compliance of this shortfall along with RPO targets of FY13. Subsequent to this, it was reported that RIL-D had complied with all RPO targets (Non-Solar + Solar) before the deadline of 31st March 2013, except that in case of Mini/Micro Hydel Power projects.
RIL-D fulfilled solar RPO targets with a surplus of 2.13 MUs and non-solar RPO targets with a surplus of 9.29 MUs.
In the present order (refer), MERC has relaxed RPO shortfall in terms of hydro power RPO to FY16, thereby declining the prayer of Reliance to completely waive off such targets. MERC was of strong view that such waive off will be against the intent of having a specific RPO targets from Mini/Micro hydel projects.
RIL-D has now been directed to fulfil shortfall in hydel RPO cumulatively by 31st March 2016.
Order w.r.t Tata Power – D:
Regarding solar RPO compliance, MERC had already directed TPC-D, through an order dated – 20th Dec 2013, waived/relaxed the shortfall in solar RPO till FY16.
Non-solar RPO has been complied by TPC-D with a surplus of 1,2 MUs, except hydro RPO targets.
Current Order waives/relaxes this hydel power purchase requirement by allowing TPC-D to meet the same by FY16.
Order can be read here.
Order w.r.t BEST:
In case of BEST, solar RPO targets were relaxed in an order in Case NO. 30 of 2013. Shortfall in solar RPO is to be met cumulatively by FY16.
MERC noted that BEST has fulfilled its RPO targets w.r.t hydro power cumulatively by FY13.
However, the shortfall in meeting non-solar RPO targets till FY13 is 4.23 MUs which is to be cumulatively met along with RPO target of FY14. This is to be positively complied before 31st March 2014 to repel any regulatory charges, meaning BEST may have to purchase equivalent amount of RECs from the Market in the last trading session of this fiscal. In our analysis, the approximate requirement in terms of RECs comes down to 4,64,230 non-solar RECs (For gross consumption in FY14 – Refer Page No. 157 – T.O FY13-16 BEST).
Order in case of BEST can be read here.
Our past blog-posts on RPO in Maharashtra can be accessed here –