Tata Power, RInfra defer RPO targets to the next year saying no RECs available

Private utilities Tata Power and Reliance Infrastructure (RInfra) have blamed inordinate delays in commissioning of solar projects for their failure to meet the solar renewable purchase obligation (RPO) targets for the last two completed fiscals.

The companies, in separate representations, informed the sectoral regulator MERC in October they could not meet the mandated power purchases for want of solar power availability.

On December 5, Maharashtra Electricity Regulatory Commission (MERC) allowed these firms to carry forward the shortfall to the current fiscal, considering their petitions expressing inability to meet the targets due to non- availability of solar power as well as RECs (renewable energy certificates).

While Tata Power will have to carry forward its remaining RPO target of 22.68 million units in FY2012-13, RInfra will have to procure 39.58 million units to meet the backlog of past two years, MERC had said.

RInfra has informed MERC, it could meet only 0.001 per cent of the FY11 target and 0.006 per cent for FY2011-12, while Tata Power said it met 0.001 per cent for FY2010-11, and 0.067 per cent of the mandated 0.25 per cent in FY2011-12.

Under the national tariff policy, MERC had made it mandatory for all utilities in the state, including RInfra, Tata Power, state-run Mahavitaran and BEST to procure 0.25 per cent their energy demand from solar projects annually for a period from 2010-11 to 2012-13. From 2013-14 to 2015-16, this would double to 0.5 per cent every year.

RInfra and Tata Power, in their representations, have blamed their failure to meet the RPO targets on delays in commissioning of various solar plants with whom they had entered into purchase agreements and non-availability of solar RECs for trading on the exchanges.

The tariff policy also allows a solar-specific renewable energy certificate (REC) mechanism to enable solar companies to sell certificates to the energy utilities to meet their purchase obligations.

According to the Electricity Act, 2003, both private utilities are liable for penalty if they do not meet their targets in this fiscal.

The central government aims to derive 15 per cent of the country’s energy requirements from renewable energy sources by 2020.

The RPO is the minimum amount of power to be purchased by states in order to meet the renewable (solar and non-solar) energy requirement.

Under these rules, distribution companies, open access consumers and captive consumers are obligated to buy a certain percentage of their power demand from renewable sources of energy.

Source: Economic Times

About Ritesh Pothan

Ritesh Pothan, is an accomplished speaker and visionary in the Solar Energy space in India. Ritesh is from an Engineering Background with a Master’s Degree in Technology and had spent more than a decade as the Infrastructure Head for a public limited company with the last 9 years dedicated to Solar and Renewable Energy. He also runs the 2 largest India focused renewable energy groups on LinkedIn - Solar - India and Renewables - India
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