Assam Draft Policy Sets Solar RPO Target at 7.25% for FY 2019-20

The Assam Electricity Regulatory Commission (AERC) has issued a draft policy announcing its renewable purchase obligation (RPO) from 2019 to 2022. The draft policy has also amended certain sections of the principle regulation.

The regulations are part of AERC’s ‘Renewable Purchase Obligation and its Compliance Regulations, 2010, (Third Amendment), 2019’.

RPO for FY 2020, FY 2021, and FY 2022 will be 17.5%, 19%, and 21% respectively. The energy source-based RPO by year:

Assam - Proposed Renewable Purchase Obligation

The obligation will be considered based on the energy input in the system of the licensee after the adjustment of losses. According to the draft policy, the RPO will apply to the total consumption of electricity by an obligated entity, excluding the consumption met from hydropower.



Further, in case the entity achieves the solar RPO compliance to the extent of 85% and above, the remaining shortfall if any, can be met by excess non-solar energy purchased beyond the specified non-solar RPO for that particular year and vice versa.

The regulations will be applicable across the state of Assam.

Mercom recently reported that the state government of Assam aims to install 590 MW of solar energy projects which are to be developed across solar parks, rooftop, and off-grid segments by 2020.

In March 2019, the Assam Chief Minister Sarbananda Sonowal laid the foundation stone of the 70 MW Amguri Solar Park in Sivasagar district. The projects would be developed on a build-own-operate basis for the procurement of solar power by the Assam Power Distribution Company Limited (APDCL) for 25 years.

Recently, the Assam Power Generation Corporation Limited retendered 70 MW of grid-connected solar projects to be developed at Amguri Solar Park in Sivasagar district of the state. The tender was initially floated in January 2019, as reported previously by Mercom.

Assam is one of the least developed states in the country when it comes to the expansion of renewable energy sources. According to Mercom’s India Solar Project Tracker, the state currently has negligible solar capacity currently with nearly 100 MW under development.

Image credit: Assam Energy Development Agency