Telangana Sets Renewable Power Purchase Obligation Targets for FY23 to FY27

The regulations came into force on April 1, 2022


The Telangana State Electricity Regulatory Commission (TSERC) has issued the ‘Renewable Power Purchase Obligation Regulations, 2022.’

The regulations came into force on April 1, 2022.

The state regulatory body had earlier passed the ‘Renewable Power Purchase Obligation Regulations’ in 2018, which expired on March 31, 2022.

RPO target

The renewable purchase obligation (RPO) target set by the Commission ranges from 8.5% for the financial year (FY) 2022-23 to 13% in FY 2026-27.

Telangana RPO Final

If solar RPO compliance is above 85%, the shortfall can be met by the excess non-solar energy purchased beyond specified non-solar RPO.

On achieving non-solar RPO compliance above 85%, the shortfall can be met by the excess solar energy purchased beyond the specified solar RPO for that particular year.

Rooftop solar systems

The quantum of electricity generated by the consumer from the rooftop solar systems under the net metering arrangements will, if such consumer is not an obligated entity, qualify towards meeting the solar RPO of the distribution licensee.

The distribution licensee should install, at its own cost, a solar generation meter to measure the energy generated from the rooftop solar system if it desires that such energy be counted towards meeting its RPO.

The purchases made from rooftop solar projects (gross metering), the unutilised banked energy deemed to have been purchased by the distribution licensee from renewable energy projects under open access regulations and all other transactions for which the generator does not claim RECs will also be considered for the fulfilment of the RPO.

Other points

The distribution companies (DISCOMs) should purchase power from renewable energy sources at the tariff determined by the Commission. The purchase of renewable power by a DISCOM from other DISCOMs in the state will also be considered for computing the fulfilment of RPO.

The purchase of renewable energy certificates (RECs) will also be considered for RPO compliance.

The DISCOMs should compulsorily procure 100% power produced from all waste-to-energy plants in the state. The renewable power procured by the obligated entity from renewable energy generating stations bundled with coal or lignite-based thermal generation will be considered as fulfilment of RPO.

Obligated entities


Every DISCOM should submit the details of the estimated quantum of purchase from renewable energy sources for the ensuing year before March 15.

Despite the availability of power from renewable energy sources and certificates, if the DISCOM fails to fulfil its commitment toward a minimum purchase from renewable energy sources, it will be liable to deposit an amount into a separate fund.

Captive users and open access consumers

Every captive user and open access consumer will have to submit the details regarding the estimated consumption of electricity and the quantum of power proposed to be purchased from renewable energy sources for fulfilling its RPO.

The captive user and open access consumer may also fulfil their RPO by purchasing RECs. If the captive user or open access consumer cannot fulfil the minimum purchase criteria, it will have to deposit an amount into a separate fund.

Eligibility and registration for certificates

The CERC Regulations 2010 will govern the eligibility and registration of certificates.

The DlSCOMs should submit a petition for computation of pooled cost of power purchase to the Commission by April 30. The Commission will issue an order relating to the pooled power purchase cost for the particular year.

After the issue of the Commission’s order for the pooled cost, the difference between the provisional pooled cost and the final pooled cost of power purchase will be paid or recovered in equal instalments in the bills for the next two months.

Where there is a general power purchase agreement (PPA), and such PPA involves or extends the situation of payment of the pooled cost of power purchase, then the DISCOMs should endeavour to prepare a draft amendment to such agreement on a generic basis and submit the same for the Commission’s approval.

If the obligated entity does not fulfil the RPO requirements during any year, the Commission may direct the obligated entity to deposit an amount into a separate fund to be created and maintained by the state agency.

This year, TSERC revised the additional surcharge to ₹1.15 (~$0.015)/kWh for consumers sourcing power through open access from April 1, 2022, to September 30, 2022. This is a 20% increase from the additional surcharge of ₹0.96 (~$0.013)/kWh, which was applicable from January 1, 2022, to March 31, 2022.

Recently, Karnataka Electricity Regulatory Commission issued amendments to the KERC (Procurement of Energy from Renewable Sources), Regulations 2011 to specify the RPO target for 2022-23 to 2029-30.

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