Regulator Allows Himachal DISCOM to Bridge Wind RPO Shortfall with Excess HPO

The Commission also allowed HPSEBL to issue RECs for the excess energy procured


Himachal Pradesh Electricity Regulatory Commission (HPERC) has allowed Himachal Pradesh State Electricity Board (HPSEBL) to meet its wind power purchase obligation (Wind RPO) with surplus hydropower generated in the state.

The Commission approved the HPSEBL’s overall compliance for Wind RPO, hydro purchase obligation (HPO), and other renewable purchase obligations (Other RPO) for the financial year 2022-23.

The Commission also allowed HPSEBL to issue renewable energy certificates (RECs) for the excess energy procured.


HPSEBL filed a petition seeking authentication of its Renewable Energy Purchase for the fiscal year 2023. The petition focuses on the compliance of wind RPO, HPO, and other RPO under the Himachal Pradesh Electricity Regulatory Commission (Renewable Power Purchase Obligation and its compliance) Regulations, 2023 (RPPO Regulations, 2023).

HPSEBL computed its total annual consumption as 12,174.167 MUs and set the targets for RPPOs, including 0.81% for Wind RPO, 0.35% for HPO, and 23.44% for Other RPO.

The distribution company procured renewable energy to fulfill these obligations. However, there was a shortfall of wind power by 43.049 Mus to meet the wind RPO compliance. The DISCOM purchased RECs through the Indian Energy Exchange and also sought to adjust the wind RPO shortfall with excess hydro energy procured beyond HPO.

Regarding HPO compliance, HPSEBL procured energy from eligible hydroelectric projects (HEPs). It proposed adjusting the shortfall in Wind RPO with this excess energy purchase. For Other RPO compliance, HPSEBL procured energy from various sources, including hydroelectric, solar photovoltaic, and solar rooftop projects. It exceeded the Other RPO target and sought to issue certificates for the surplus energy purchase.

In additional submissions, the HPSEBL details the reworked RPO calculation, energy procurement and sale, solar RPO compliance, authenticated energy data, and the inclusion of Sawra Kuddu HEP energy for HPO benefits. They also presented supporting documents to substantiate their claims.

Commission’s Analysis

The Commission noted that HPSEBL is eligible for RECs if it fulfills the conditions specified in the Central Electricity Regulatory Commission’s (CERC) REC Regulations, 2022.

The RPO Regulations, 2023 require the distribution licensee to purchase a minimum percentage of renewable energy based on total consumption. The specific targets for Wind RPO, HPO, and Other RPO are outlined in the regulations.

  • Wind RPO can be met by energy produced from wind power projects commissioned after March 31, 2022, and by consuming wind energy above 7% from projects commissioned before that date.
  • HPO should be met only with energy produced from hydropower and small hydropower projects commissioned after March 8, 2019.
  • Other RPO can be fulfilled by energy produced from any other renewable power project not mentioned in Wind RPO and HPO.
  • Hydropower projects commissioned before March 8, 2019, are considered part of ‘Other RPO’ category, while hydro projects commissioned after that date are considered for HPO.
  • HPO obligations can be met by free power provided by Hydro Power Projects (excluding local area development fund projects) commissioned after March 8, 2019, within the state. Additional hydropower or corresponding RECs may be purchased if the free power is insufficient.
  • Shortfalls in Other RPO can be offset by excess energy consumed from Wind or Hydro Power Projects, and vice versa.
  • Certificates issued under the CERC REC Regulations, 2022, are valid for fulfilling mandatory obligations under the RPO Regulations, 2023.

The Commission analyzed the consumption data provided by HPSEBL and calculated the surpluses/deficits for Wind RPO, HPO, and Other RPO. It noted that HPSEBL did not generate or purchase any wind power during the specified period and did not allow the adjustment of wind RPO shortfall with RE certificates. The deficit in Wind RPO was allowed to be adjusted against surplus hydropower eligible for HPO.

The regulator found that HPSEBL purchased power from eligible hydro projects to fulfill HPO obligations and surplus power was considered for Other RPO compliance. The power purchased from Sawra Kuddu HEP was credited to HPSEBL, but HPO benefits were passed to HPPCL.

The Commission did not consider the energy of Kashang HEP for HPO compliance as it was commissioned before March 8, 2019.

However, the Commission found that HPSEBL exceeded the targets for Other RPO and is eligible for the issuance of RECs for the surplus energy.

Therefore, the Commission approved HPSEBL’s compliance for Wind RPO (adjusted with HPO energy), HPO, and Other RPO for FY 2022-23. RECs were allowed to be issued for the excess energy procured by HPSEBL.

The income from the sale of RECs will be adjusted in HPSEBL’s true-up for the retail business, and the company must submit quarterly status reports for RPPO compliance.

The Commission had allowed HPSEBL to compensate for its HPO deficit with surplus non-solar power it purchased for the financial year 2021-22.

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