Captive Power Generator Directed to Purchase RECs to Meet RPO Targets
The power generator has to submit the RPO compliance report for FY 2018-19 to FY 2021-22
August 17, 2022
The Uttar Pradesh Electricity Regulatory Commission (UPERC) recently directed a captive power generator to provide details of the energy that had been procured through open access for the financial year (FY) 2018-19 to FY 2021-22, and the renewable purchase obligation (RPO) compliance report.
The Commission directed the petitioner to purchase the required renewable energy certificates (RECs) from the exchange within three months to fulfill its RPO targets.
Shree Cement had filed a petition to allow the carry forward of RPO compliance requirement for FY 2018-19 to FY 2021-22 due to difficulty in complying with RPO targets of its cement grinding unit in Uttar Pradesh.
Background
Shree Cement is engaged in manufacturing cement and electricity generation. It has its cement manufacturing units in Rajasthan, Uttarakhand, Haryana, Jharkhand, Bihar, Chhattisgarh, Odisha, and Karnataka. It has captive generating units in Karnataka, Rajasthan, and Chhattisgarh.
The petitioner also has a cement grinding unit in Uttar Pradesh, which avails 12.24 MW of power under open access.
Shree Cement said that for FY 2018-19, the solar RPO deficit was due to the limited availability of solar RECs, which resulted in pro-rata allocation. This led to the allocation of a lower number of RECs by the power exchange.
Citing Regulation 5.4 of the UPERC RPO Regulations 2010, the company requested the Commission to allow the carry forward of the deficit from FY 2018-19 to 2021-22. It added that there was genuine difficulty in meeting RPO targets due to the non-availability of power.
Commission’s analysis
The Commission noted that there was a long delay in filing the petition and wanted to know why no petition was filed during FY 2019-20 and FY 2020-21. It also sought details of the transactions that were made on power exchanges and other open access transactions to determine the RPO of the petitioner.
The petitioner submitted that the Appellate Tribunal for Electricity (APTEL) had ordered a stay on REC trading in FY 2020-21. It was one of the reasons for the petitioner’s inability to meet its RPO targets. It would be able to clear the deficit by FY 2022-23, it said.
Certain restrictions were also imposed in Karnataka on the sale of renewable power outside the state, which made it difficult to meet the RPO targets. It added that it would purchase the RECs required to meet its RPO requirements by the end of this year.
The Commission directed Shree Cement to provide the complete details of the energy procured through open access and the RPO compliance report.
It asked the captive power generator to purchase the required RECs within three months to meet its RPO targets or attract penalties.
Last June, UPERC directed Uttar Pradesh Power Corporation (UPPCL) to deposit ₹72.45 billion (~$978 million) in the RPO Regulatory Fund, including ₹14.59 billion (~$197 million) on account of a shortfall in RPO compliance until the FY 2020-21 and ₹57.85 billion (~$780.93 million) against projected RPO requirements for FY 2021-22.
Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.
Get the most relevant India solar and clean energy news.
RECENT POSTS
LATEST HEADLINES
Government Clarifies ALMM Enlistment Guidelines for Co-branded Solar Modules
Mar 24, 2023
Intra-State Sections of Evacuation Infrastructure for Renewables Delayed
Mar 24, 2023
EnBW Takes €2.4 Billion Final Investment Decision on Offshore Wind Project
Mar 24, 2023
India Missed 2022 Renewables Target as Rooftop Solar and Wind fell Short
Mar 24, 2023
Researchers Aim to Accelerate Delivery of Space-Based Solar Power to Earth
Mar 24, 2023
India added an impressive 2.5 GW open access solar capacity in 2022, registering a growth of 92% year-over-year (YoY), according to the 2022 Q4 & Annual Mercom India Solar Open Access Market Report. Karnataka emerged as the to...
March 23, 2023
Markets & Policy
Government Clarifies ALMM Enlistment Guidelines for Co-branded Solar ModulesThe Ministry of New and Renewable Energy (MNRE) has modified the Approved List of Models and Manufacturers (ALMM) guidelines and provided exceptions to broaden the qualification criteria for modules produced under agreements betwe...
March 24, 2023
C&I
In Bengaluru, a 100 kW Solar System Can Save C&I Entities ₹1 Million AnnuallyMercom India successfully concluded the C&I Clean Energy Meet 2023 in Bengaluru, where stakeholders in the solar sector and commercial and industrial entities converged to enthusiastically discuss the benefits of renewable ene...
March 24, 2023
Other
Gensol Acquires Solar Tracker Maker Scorpius for ₹1.35 BillionGensol Engineering, a part of solar engineering, procurement, and construction (EPC) company Gensol Group, has acquired India-based solar tracker manufacturer Scorpius Trackers for ₹1.35 billion ($16.4 million). Gensol said the ac...
March 23, 2023
Trending News
Mercom Focus
Researchers Find Solution to Manage Load in Solar PV & Storage Systems
February 28, 2023
February 27, 2023
February 24, 2023
January 17, 2023
Magazine
Latest News
The Ministry of New and Renewable Energy (MNRE) has modified the Approved List of Models and Manufacturers (ALMM) guidelines and provided exceptions to broaden the qualification criteria for modules produced under agreements...
March 24, 2023
The Ministry of New and Renewable Energy (MNRE) told the Parliamentary Standing Committee on Energy that the intra-state stretches of the Green Energy Corridor (GEC) have been delayed due to various reasons, including...
March 24, 2023
German electric utility company Energie Baden-Wuerttemberg (EnBW) has made its final €2.4 billion (~$2.6 billion) investment decision on He Dreiht, a major wind project in the German North Sea. The project has a capacity of 960...
March 24, 2023
The Parliamentary Standing Committee on Energy report has isolated underwhelming progress on rooftop solar and wind energy projects as the primary reason for India falling short of achieving its renewable energy capacity target...
March 24, 2023
Researchers at Northumbria University are studying ways of producing wireless electricity from space to Earth by harvesting the Sun’s energy. U.S.-based aerospace, defense, and information security organization Lockheed Martin...
March 24, 2023
The Maharashtra Electricity Regulatory Commission (MERC) recently directed Hindustan Petroleum Corporation (HPCL) and the Maharashtra State Electricity Distribution Company (MSEDCL) to recompute the delayed payment charge from...
March 24, 2023
The National Renewable Energy Laboratory (NREL) has devised a new way to produce perovskite solar cells that could speed its commercialization. Different layers are typically added sequentially to a conductive glass substrate to...
March 24, 2023
Saudi Arabia-based energy company ACWA Power has signed power purchase and investment agreements with National Electric Grid of Uzbekistan, and the Ministry of Investment, Industry, and Trade to develop new solar and battery...
March 24, 2023
The China Securities Regulatory Commission has approved the registration of CSI Solar, the engineering, procurement, and construction arm of solar module maker Canadian Solar, to issue an initial public offering (IPO). The...
March 24, 2023
Renewable capacity grew by 9.6% in 2022, adding a record 295 GW worldwide. This accounts for 83% of all power capacity added last year and brings the global renewable generation capacity to 3,372 GW by the end of last year, a...
March 24, 2023
Get the most relevant India solar and clean energy news.
POPULAR POSTS
Government Clarifies ALMM Enlistment Guidelines for Co-branded Solar Modules
Mar 24, 2023
Intra-State Sections of Evacuation Infrastructure for Renewables Delayed
Mar 24, 2023
EnBW Takes €2.4 Billion Final Investment Decision on Offshore Wind Project
Mar 24, 2023
India Missed 2022 Renewables Target as Rooftop Solar and Wind fell Short
Mar 24, 2023
Researchers Aim to Accelerate Delivery of Space-Based Solar Power to Earth
Mar 24, 2023