Karnataka Proposes Reduction in BESCOM’S RPO Target from 13% to 12%

KERC has set RPO targets for all distribution licensees for 2019-20, 2020-21, and 2021-22


The Karnataka Electricity Regulatory Commission (KERC) has proposed changes to the regulations passed in 2011 with regards to the procurement of energy from renewable sources.

The regulation will extend to the entire state of Karnataka and will come into effect from the date of notification via the official gazette of Karnataka. The following amendments have been made in the regulation.

Under Renewable Purchase Obligation (RPO), the Bangalore Electricity Supply Company Limited (BESCOM) must purchase minimum of 12 percent of its total energy procurement from renewable sources of energy. The slab has been reduced by 1 percent, with the earlier RPO being set at 13 percent.

Karnataka Proposes Reduction in BESCOM’S RPO Target from 13% to 12%

The minimum renewable energy purchase by every distribution licensee in Karnataka has been set for 2019-20, 2020-21, and 2021-22.

Under Solar RPO, while the commission has not made any changes for 2018-19, it has set RPO targets for all the distribution licensees in the state for 2019-20, 2020-21, and 2021-22.

Karnataka Proposes Reduction in BESCOM’S RPO Target from 13% to 12%

According to the proposal, any distribution licensee that fails to achieve the specified non-solar RPO but has complied with 85 percent of the non-solar RPO, will be permitted to meet the shortfall through excess solar energy or RECs purchased beyond the specified solar RPO for that relevant year.

Mercom has written earlier on the importance of RPOs in driving 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 needed to realize the 100 GW solar goal set for 2022.

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Garima is a staff reporter with MercomIndia.com covering renewable energy news. Prior to Mercom, Garima worked as a journalist with The Times of India and The New Indian Express. She received her Master’s degree in Environmental Science from the University of Nottingham and PG Diploma degree in journalism from the Times School of Journalism.