RPO Compliance Issues in order approved by JSERC


According to the ARR filing of M/s Tata Steel Limited (TSL) for the year 2012-13, it is seen that the solar RPO target of 6.40 MU for M/s Tata Steel Limited in 2011-12 has been set-off by the excess purchase compliance of non-solar RPO of 46.88MU instead of 44.77 MU by the Jharkhand State Electricity Regulatory Commission as per the order dates June 2012. The excess non-solar power purchase has been adjusted for 2011-12 and only 4.28 MU has been carried forward instead of 6.40 MU.

Further, the commission has clearly mentioned in the ARR that from next year no interchange of Solar v/s Non-Solar will be allowed.

The exact abstract of the order is as below:

According to the ARR filing of M/s Tata Steel Limited (TSL) for the year 2012-13, it is seen that the solar RPO target of 6.40 MU for M/s Tata Steel Limited in 2011-12 has been set-off by the excess purchase compliance of non-solar RPO of 46.88MU instead of 44.77 MU by the Jharkhand State Electricity Regulatory Commission as per the order dates June 2012. The excess non-solar power purchase has been adjusted for 2011-12 and only 4.28 MU has been carried forward instead of 6.40 MU.

Further, the commission has clearly mentioned in the ARR that from next year no interchange of Solar v/s Non-Solar will be allowed.

The exact abstract of the order is as below:

(e) The Commission noted that against the total target of non-solar RPO of 44.77 MU (i.e. 1.75% of approved energy requirement in previous Tariff Order for FY 2011- 12), the Petitioner has met its target entirely through purchase of non-solar RECs of 46.88 MU and is slightly higher than the target for non-solar RECs. However, against the solar RPO target of 6.40 MU (i.e. 0.25% of approved energy requirement in previous Tariff Order for FY 2011-12), no purchase of RECs could be made due to non-availability of solar RECs at the IEX. Thus the total RPO obligation met comes to 92% (46.88 / 51.17).

(f) The Commission takes note that even though the Petitioner has made efforts to purchase RECs to meet its RPO obligation, the entire RPO target could not be met  due to non-availability of Solar RECs at the IEX. There is a gap of 8% or 4.28 MU. Even though the Commission recognises that targets for Solar RECs could not be met during FY 2011-12, there is positive indication in the market that such RECs are now available from May 2012 onwards. Moreover many Solar & other RE developers are in the process of setting up their plants in Jharkhand; the  Commission is of the opinion that the Petitioner shall be able to meet the  remaining gap for FY 2011-12 along with the target for FY 2012-13. Thus the Commission carries forward the remaining gap of 4.28 MU in RPO obligation for FY 2011-12 to be added to the FY 2012-13 targets for Solar RPO.

(g) From next year onwards the Commission will Endeavour not to interchange the obligation of Solar vs. Non-solar RPO. This year the Commission has considered the interchange and allowed it because of non-availability of Solar Power.

(e) The Commission noted that against the total target of non-solar RPO of 44.77 MU (i.e. 1.75% of approved energy requirement in previous Tariff Order for FY 2011- 12), the Petitioner has met its target entirely through purchase of non-solar RECs of 46.88 MU and is slightly higher than the target for non-solar RECs. However, against the solar RPO target of 6.40 MU (i.e. 0.25% of approved energy requirement in previous Tariff Order for FY 2011-12), no purchase of RECs could be made due to non-availability of solar RECs at the IEX. Thus the total RPO obligation met comes to 92% (46.88 / 51.17).

(f) The Commission takes note that even though the Petitioner has made efforts to purchase RECs to meet its RPO obligation, the entire RPO target could not be met  due to non-availability of Solar RECs at the IEX. There is a gap of 8% or 4.28 MU. Even though the Commission recognises that targets for Solar RECs could not be met during FY 2011-12, there is positive indication in the market that such RECs are now available from May 2012 onwards. Moreover many Solar & other RE developers are in the process of setting up their plants in Jharkhand; the  Commission is of the opinion that the Petitioner shall be able to meet the  remaining gap for FY 2011-12 along with the target for FY 2012-13. Thus the Commission carries forward the remaining gap of 4.28 MU in RPO obligation for FY 2011-12 to be added to the FY 2012-13 targets for Solar RPO.

(g) From next year onwards the Commission will Endeavour not to interchange the obligation of Solar vs. Non-solar RPO. This year the Commission has considered the interchange and allowed it because of non-availability of Solar Power.

Above article contributed by Mr.Harsh Kanani

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One response to “RPO Compliance Issues in order approved by JSERC

  1. I am a researcher and I have been trying to follow the REC market on a state wise basis but states don’t seem to be putting out the information on the website. The CERC needs to regulate this and bring in live information about the status of RPOs so that we know how discoms, captive power producers etc., are performing in various states.

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