DERC drafts green power obligations for discoms

18 Jun 2024 CW Team

The draft regulations for renewable purchase obligation (RPO) have been released by the DERC, mandating a 29.91 per cent purchase of green energy this year for all stakeholders, including discoms. It was stated that RPOs require all electricity distribution licensees to buy energy from renewable sources.

According to officials, the Draft Delhi Electricity Regulatory Commission (Renewable Purchase Obligation and Renewable Energy Certificate Framework Implementation) Regulations, 2024 have been issued by the DERC. They informed that the DERC is inviting public comments until July 2.

As per the draft regulations issued by the DERC, stakeholders, including discoms, are obliged to meet specified RPO targets as a percentage of their total annual consumption.

It was mentioned that the DERC has set an RPO target of 29.91 per cent for the fiscal year 2024-25 and 30.01 per cent for 2025-26, according to the draft regulation.

Officials noted that failure to meet the RPO targets would lead to a penalty of 10 paise per unit for all obligated entities.

They further explained that the distributed RPO targets align with the Ministry of Power's notification under Section 14 of the Energy Conservation Act, 2001, dated October 20, 2023. Officials added that distributed RPO can be fulfilled through installations like solar rooftop net metering.

The RPOs encompass various renewable energy sources such as wind, hydro, and others.

According to them, eligible consumers have the option to choose green power from multiple sources, including purchasing from power exchange via open access, requisitioning from discoms, utilising captive power plants, purchasing renewable energy certificates, self-generation, and other means.

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