Delhi Electricity Regulatory Commission Solar RPO

The Delhi Electricity Regulatory Commission (DERC) has issued the Draft DERC (Renewable Purchase Obligation (RPO) and Renewable Energy Certificate (REC) Framework Implementation) Regulations 2017. The DERC has asked stakeholders to provide suggestions, comments, or objections by August 15, 2017.

The RPO-REC Regulations 2017 will apply to any captive users and open access consumers in Delhi. In the draft order, the DERC has specified a solar RPO of 4.75 percent for financial year (FY) 2017-18, 6.75 percent for FY 2018-19, and 8.75 percent for FY 2019-20.

In the draft order, the DERC has specified, if any obligated entity does not fulfill the RPO specified during a financial year, it will be liable to pay a penalty to the distribution licensee in its area. The penalty will be computed by multiplication of the shortfall in the RPO and the floor price of the solar REC for the shortfall of the relevant year.

This is a good move by DERC. In the past, rather than imposing a penalty on defaulters, the DERC allowed DISCOMs to carry the shortfall forward to the next year. As a result, the exemption did not include a penalty.

Recently, the Delhi Lt. Governor directed the power department to prepare a standard operating procedure (SOP) as well as a roadmap for promoting installation of solar power panels in the city.

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