Karnataka Extends Renewable Purchase Obligation Compliance for FY 2020 to August

The extension has been provided in view of the ongoing coronavirus crisis


Amid the ongoing coronavirus (COVID-19) crisis and the nationwide lockdown, the Karnataka Electricity Regulatory Commission (KERC) has decided to extend the time for complying with the Renewable Purchase Obligation (RPO) for the financial year (FY) 2020. The extension has been provided for three months.

Now, the obligated entities such as the distribution licensees, grid-connected captive consumers, and open access consumers can meet their RPO for the FY 2020 by August 31, 2020.

The Commission added that if any entity fails to meet the RPO or a part of it within the extended time period of three months, then it will have to purchase the renewable energy certificates (RECs) to the extent of 110% of the amount of the RPO shortfall. Failing to do so will call for legal action against the entity.

As per the provisions, the obligated entities have to comply with the RPO for FY 2020 by May 31, 2020, without any penalty and by June 30, 2020, with 10% excess REC purchase.

“Most of the industries in India, including Karnataka, were shut down due to the lockdown, which has resulted in the loss of revenue to the obligated entities. Keeping in view the unprecedented condition, the Commission decides to extend the time for compliance of RPO by FY20 by three months,” KERC stated.

Various states have announced relaxations for distribution companies and power consumers. Find out all the developments related to the pandemic in the renewable industry here.

Mercom has written earlier on the importance of RPOs in driving the growth of renewable energy installations in India. Over the past couple of years, states have only scrambled to fulfill their RPOs. While cumulative installation figures for solar and wind energy have increased exponentially, compliance will be a challenge, which, if not overcome, can thwart the growth of installations.

Anjana is a news editor at Mercom India. Before joining Mercom, she held roles of senior editor, district correspondent, and sub-editor for The Times of India, Biospectrum and The Sunday Guardian. Before that, she worked at the Deccan Herald and the Asianlite as chief sub-editor and news editor. She has also contributed to The Quint, Hindustan Times, The New Indian Express, Reader’s Digest (UK edition), IndiaSe (Singapore-based magazine) and Asiaville. Anjana holds a Master’s degree in Geography from North Bengal University, and a diploma in mass communication and journalism from Guru Ghasidas University, Bhopal.