Maharashtra electricity body rejects plea to offset renewable RPO

In a recent order, the Maharashtra Electricity Regulatory Commission (MERC) rejected the plea of BILT Graphic Paper Products to balance the renewable purchase obligation (RPO) for its Bhigwan unit from the energy produced from its biomass project in Ballarpur. The Commission informed that it would begin the generator’s RPO compliance verification proceedings only after receiving the information for the RPO compliance from the financial year (FY) 2014-15 to FY 2019-20 from the Maharashtra Energy Development Agency (MEDA). BILT Graphic Paper Products, a subsidiary of Ballarpur Industries (BILT), is a paper and forest products firm with manufacturing units placed at Ballarpur, Ashti and Bhigwan in Maharashtra. The company had filed a petition, asking that the Commission declare it had reached its RPO targets from FY 2014-15 to FY 2019-20. BILT Graphic Paper Products holds grid-connected captive power projects involving cogeneration captive projects, located at its manufacturing facilities Bhigwan in Pune district and Ballarpur in Chandrapur district, Maharashtra. The Ballarpur unit located in Chandrapur was commissioned on August 15, 2009. It is a composite project that works on fossil fuel and biomass, with a total installed capacity of 67.5 MW. The Maharashtra State Electricity Distribution Company issued a certificate for the Bhigwan unit in Pune, certifying that the 60 MW (2 x 30 MW) coal-based captive power project was synchronized with the grid. On May 13, 2016, the company obtained accreditation from MEDA for its renewable energy generating project at Ballarpur, with effect from May 13, 2016, to May 12, 2021. The biomass production from the project from FY 2016-17 to FY 2019-20 was more than the RPO demand during the corresponding years. Additionally, the company said that the biomass generation at the Ballarpur project was more than enough to meet its RPO demand. Since the company owned and managed both the projects (Ballarpur and Bhigwan), it requested the Commission to approve the RPO requirement of the Bhigwan project to be considered against the balanced quantity of biomass production at the Ballarpur project. The firm argued that as the RPO compliance verification proceedings for the captive generation projects and open access consumers for FY 2016-17 and subsequent years were yet to be started, it could not get any opportunity to make submissions before the Commission to consider RPO requirement of the grid-connected cogeneration captive power projects located at Bhigwan and Ballarpur. Image Source Also read: UP electricity body asks UPPCL to pay Rs 7,244 cr in regulatory fund Also read: Surplus solar power by Gujarat discoms to be compensated at Rs 2.25/kWh