The Gujarat Electricity Regulatory Commission (GERC) has released draft regulations for procuring energy from renewable sources. The “Gujarat Electricity Regulatory Commission (Procurement of Energy from Renewable Sources) Regulations, 2024” aim to align the state’s renewable energy targets with national goals and promote sustainable energy development.

The GERC has invited stakeholders to submit feedback on the draft regulations by October 18, 2024. A public hearing to discuss the draft regulations further is scheduled for October 25, 2024.

The draft regulations introduce a comprehensive renewable power purchase obligation (RPPO) framework for obligated entities, including distribution licensees and large consumers.

The RPPO targets are set to increase annually from 2024-25 to 2029-30, with specific percentages allocated to different renewable energy categories.

For instance, in 2024-25, the total RPPO target is set at 29.91%, which increases to 43.33% by 2029-30.

The regulations also introduce an Energy Storage Obligation, starting at 1% in 2024-25 and increasing to 3.5% by 2029-30. This obligation is calculated as a percentage of total electricity consumption and is considered fulfilled only when at least 85% of the energy stored in the energy storage system is procured from renewable sources.

The regulations clearly define the entities obligated to fulfill RPPO, which include:

• Designated consumers as defined under the Energy Conservation Act, 2001
• Open access consumers
• Captive power plant owners with installed capacity exceeding 100 KW based on conventional technology
• Distribution licensees.

Obligated entities can meet their RPPO through various means, including:

• Direct purchase of renewable energy
• Generation from own renewable energy sources
• Purchase of Renewable Energy Certificates (RECs)
• Banking arrangements with renewable energy generators

The regulations also allow inter-category adjustments in case of shortfalls or surpluses in specific RPPO categories.

The Gujarat Energy Development Agency is designated as the State Agency responsible for monitoring RPPO compliance. The agency is tasked with developing a web portal for registration, compliance monitoring, and reporting of RPPOs.

The draft regulations outline penalties for non-compliance with RPPO targets. The penalty is calculated based on the shortfall in units of RPPO, with a rate of ₹3.72 (~$0.04)/kWh of unmet RPO.

The regulations are expected to boost the renewable energy market in Gujarat, creating opportunities for project developers, equipment manufacturers, and service providers.

Recently, GERC ruled that wind power developers must share the benefits of selling all types of carbon credits with Gujarat Urja Vikas Nigam, not just those from the Clean Development Mechanism.

Earlier, GERC allowed net metering for rooftop solar systems with a capacity of 1 kW and up to 1 MW. Gross metering was permitted for rooftop solar systems with 10 kW and up to 1 MW capacity.

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