Uttarakhand Electricity Regulatory Commission (Renewable Power Purchase Obligation and its Compliance)

The Ministry of Power (MoP) had recently declared the national RPO trajectory.  The order had enlisted the yearly RPO trajectory for both non-solar and solar power purchase from 2016-17 till 2018-19. Following the steps of MoP RPO trajectory and other states Uttarakhand has also notified its amendment to the Renewable Power Purchase Obligation and its Compliance, regulations.
The regulation will be applicable to:

• The distribution licensee
•  Or any person, consuming electricity procured from conventional sources through open access third party sale,
• Or person who installs Captive Generating Plant, with an installed capacity exceeding 5 MVA, requirements also.

The table below shows the Minimum Quantum of Purchase in percentage (%) from renewable sources (in terms of energy in kWh) of total consumption:

The said obligations will be applicable on total consumption of electricity by an obligated entity, excluding consumption met from hydro electric sources of power.
Analysis:

• RPO to be applied on co-generation power
•  Consumption from hydro sources to be excluded
• RPO % is proposed to increase steeply – from 11.50% in 2016-17 to 14.25% in 2017-18 line with the MoP Trajectory. However, in effect the overall RPO of the UK will fall as 70% of the power consumed in the state comes from hydro sources.
• In year 2013, UERC had come up with a five year long RPO Trajectory ranging from 6.05% (including both solar & non solar) in 2013-14 to 10.50% in 2017-18. The commission now proposes to increase its RPO target in comparison to its earlier trajectory, though the commission has not defined the RPO% FOR 2018-19 unlike other states. The graph given below gives a comparison between the MoP recent RPO Trajectory and UERC’s earlier RPO Trajectory.

Since Uttarakhand mostly thrives on the energy produced through Hydro Power, the state could be a beneficiary since RPO is excluded from RPO obligation as per the regulation.
The graph below shows the total and type of energy consumption by the state of Uttarakhand. The data has been derived from CEA Report.