Daily News Wrap-Up: Odisha Issues Draft Green Energy RPO Rules

MERC rules that developers be compensated for the increased cost of the project

August 28, 2024

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The Odisha Electricity Regulatory Commission has proposed new regulations to promote energy procurement from renewable sources within the state until the financial year 2029-30. These regulations are titled the “Odisha Electricity Regulatory Commission (Procurement of Energy from Renewable Sources and its Compliance) Regulations, 2024.” Stakeholders can submit their comments and suggestions by September 13, 2024. The new regulations will apply to all obligated entities in Odisha, ensuring they meet their Renewable Purchase Obligation (RPO) targets by sourcing energy from renewable sources.

The Maharashtra Electricity Regulatory Commission (MERC) has ordered the Maharashtra State Electricity Distribution Company (MSEDCL) to compensate a developer for the increased cost of the project due to the basic customs duty on solar cells and modules. The Commission ruled that any event can be considered a ‘Change in Law’ event if it is categorically mentioned in the power purchase agreement. If a project cost increases due to such events, it must be compensated. In May 2021, MSEDCL issued a request for selection to procure 500 MW wind-solar hybrid power on a long-term basis through a competitive bidding process from grid-connected inter-state and intra-state projects.

The Western Railway has floated a tender to install 1.1 MW rooftop solar systems at various locations in Bhavnagar. The late date to submit bids is September 19, 2024. The tender has been floated for an advertised value of ₹54.67 billion (~$651,377). Bidders must submit an earnest money deposit of ₹423,400 (~$5,044). The project must be completed within six months. The scope of the tender covers the design, supply, erection, testing, and commissioning of the grid-connected rooftop solar systems. It also involves repairs, replacements, and comprehensive maintenance of the power supply system for five years.

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