RERC Resolves Hurdles Of Technology-Agnostic RPO Compliance

RERC Resolves Hurdles Of Technology-Agnostic RPO Compliance India Issued 69GW+ Renewable Tenders In FY24, Says IEEFA Report

The Rajasthan Electricity Regulatory Commission (RERC) in its latest suo motto order has tried to allay the apprehensions of the obligated entities towards the government mandate of technology-agnostic Renewable Purchase Obligations (RPOs). 

The Union government and CERC had earlier mandated the compliance of RPOs through procurement of renewable power through different fuel specific (technology agnostic) mechanisms. This included procurement of different quantums of solar power, wind power, hydro power and others.

At the same time, in 2022 the Central Electricity Regulatory Commission (CERC) had also allowed fulfilment of the RPOs through procurement of Renewable Energy Certificates (RECs) which are trade at the Indian Power Exchanges. However, some apprehensions and concerns remained unanswered as at the power exchanges only a single technology RECs are available.

As per the norms, the obligated entities like the discoms and the state electricity bulk procuring agencies can buy RECs to meet their RPOs. The Ministry of Power has now also made a trajectory of RPOs till 2030 to boost the growth of renewable energy in the country. 

In an attempt to resolve the issue, the RERC in its latest order said, “It is observed the REC Mechanism specified by CERC is having a national character and therefore, consistency has to be maintained at the state level in implementation of this mechanism,”

It also added, “Considering the orders issued by CERC and the fact that only single technology agnostic RECs are now available in the Energy Exchange, the Commission in exercise of its power conferred under regulation 5(2) and regulation 15 of the RERC REC Regulations,2010 directs the obligated entities of the State to fulfil their any category of RPO by procuring RECs as per the CERC REC Regulations, 2022.”

RPO is a mechanism where the obligated entities are bound to procure a portion of their total procured power only through renewable sources. The quantum of RPO is defined by the government entities. 

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