Bihar Electricity Regulatory Commission (BERC) has allowed South Bihar Power Distribution Company (SBPDCL) and North Bihar Power Distribution Company (NBPDCL) to carry forward their Renewable Purchase Obligation (RPO) shortfalls from fiscal years 2022-23 and 2023-24 to the fiscal year 2024-25.

Background

Most of Bihar’s RPO fulfillment comes from energy sourced through agencies such as Solar Energy Corporation of India and NTPC. However, the petitioner DISCOMs cited delays in commissioning certain renewable energy projects and contract terminations as significant roadblocks to meeting their RPO requirements. For instance, out of a contracted 1,250 MW of wind power, only 699.5 MW has been commissioned, with the remaining 550.5 MW canceled.

This is not the first time the Bihar DISCOMs have faced challenges fulfilling their RPOs. The BERC had previously allowed the carry-forward of RPO shortfalls from the fiscal year 2019-20 to 2020-21, permitting the DISCOMs to meet their obligations by purchasing solar power or Renewable Energy Certificates (REC). Following this directive, the two companies procured 2,552,980 RECs, divided between NBPDCL (1,140,720 RECs) and SBPDCL (1,412,260 RECs), to cover their shortfall.

The two DISCOMs told the Commission they had explored procuring green power through energy exchanges. However, they encountered difficulties due to the limited availability of renewable energy in these exchanges and high prices during certain periods.

One of the critical issues the petitioners highlighted was the REC market disruption. A directive from the Appellate Tribunal for Electricity had halted REC trading for a considerable period, making it impossible for DISCOMs to procure RECs promptly. Despite these challenges, the companies tried to meet their RPOs by participating in future trading sessions and procuring certificates as they became available.

BERC’s Decision

After reviewing the petition and hearing the arguments presented by the representatives of SBPDCL and NBPDCL, the Commission allowed the companies to carry forward their RPO shortfalls from fiscal years 2022-23 and 2023-24 to 2024-25.

This decision aligns with the amended provisions of the BERC (Compliance of Renewable Purchase Obligation, its compliance and REC Framework implementation) Regulations, 2010, which allow for the carry-forward of RPO shortfalls under certain circumstances.

The amended regulation also permits the aggregation of shortfalls across multiple years, allowing the DISCOMs to meet their cumulative obligation through available means such as renewable energy procurement or REC purchases.

The Commission also clarified that the companies need not seek additional permission to participate in the upcoming trading sessions for REC procurement. However, they must meet the aggregated RPO requirement for 2024-25, which includes the shortfalls from the previous two fiscal years and the current year’s obligation.

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