The Meghalaya State Electricity Regulatory Commission (MSERC) has allowed Dalmia Cement to offset its renewable purchase obligation (RPO) with the power generated from its waste heat recovery boiler (WHRB).

Additionally, the Commission exempted Dalmia Cement from meeting its RPO target as long as the power generated and consumed from its WHRB exceeds the required RPO target.

Background

Dalmia Cement’s cement factory in Meghalaya is powered by a 25 MW thermal power plant located on its premises. The company is also installing a 5.6 MW WHRB to generate electricity from the waste heat produced during cement manufacturing.

Dalmia Cement has so far always satisfied its RPO by purchasing either renewable energy (solar and non-solar) or renewable energy certificates (REC).

The company is currently installing a WHRB and requested permission to fulfill its RPO using its electricity, as it is classified as a cogeneration power plant according to the Electricity Act.

The petitioner pointed out that Appellate Tribunal for Electricity and various state commissions have granted exemptions or allowed set-offs against the RPO requirement for obligated entities that consume power generated by WHRB.

Dalmia Cement argued that for RPO obligations, cogeneration plants should be treated the same as renewable energy plants. It claimed that obligated entities that generate electricity through waste heat recovery for their use and consumption are not required to fulfill RPO obligations as long as the generation from the waste heat recovery plant exceeds the total RPO needed by the company.

Meghalaya New and Renewable Energy Development Agency agreed to allow the company to offset its RPO with the electricity generated by its WHRB as long as all applicable regulations and laws are followed.

Commission’s Analysis

The Commission was convinced of the genuineness of the matter and relaxed the provisions of its RPO regulations to allow Dalmia Cement to offset its RPO with the power generated from its WHRB and extend the RPO exemption under the condition specified in the petition.

The respondent in the case, Director of Meghalaya New & Renewable Energy Development Agency, submitted its recommendation in favor of Dalmia Cement.

Last December, the Odisha Electricity Regulatory Commission exempted Dalmia Cement from RPO when its consumption from its cogeneration sources is higher than its RPO.

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