Hydropower Purchase Obligation to be Added to Rajasthan’s RPO Targets

The Rajasthan Electricity Regulatory Commission (RERC) has issued a draft paper to amend the RERC (Renewable Energy Obligation) Regulations, 2007, to include the hydropower purchase obligation (HPO) until the financial year (FY) 2023-24.

The Commission has proposed to factor hydropower purchase obligation exclusively under the non-solar renewable purchase obligation (RPO). The last date to submit comments and suggestions before the Commission is September 23, 2021.

The RERC issued the fifth amendment to its regulations in January 2019 specifying the RPO targets.

The new renewable energy obligations notified under the amendment is as follows:


Rajasthan HPO
The RPO targets for solar, wind, and biomass remained unchanged. The percentage of hydropower purchase obligation to be met has now be added.

The hydropower purchase obligation would be met from power procured from eligible large hydropower projects, including pump storage projects with a capacity greater than 25 MW commissioned from 70% of the total generating capacity for 12 years. The date of commissioning must be on and after March 8, 2019, until March 31, 2030.

Free power provided under agreement with the state government, and the power provided for the local area development fund (LADF), are not included in the 70% limit.

As per the agreement, the state or DISCOM’s hydropower purchase obligation might be fulfilled from the free power given to the State by large hydropower projects commissioned after March 8, 2019. Free electricity not meant for local area development can be counted against the hydropower purchase obligation to the extent of the State DISCOM’s liability.

If the solar RPO compliance reaches 80% or above, the shortfall can be covered by excess non-solar energy consumed beyond the non-solar RPO for that year. Similarly, if non-solar RPO compliance reaches 80% or higher, then the shortfall can be covered by excess solar or eligible hydropower consumed above the stated solar RPO or hydropower purchase obligation for that year.

Furthermore, if the hydropower purchase obligation compliance reaches 80% or above, then the shortfall can be covered by excess solar or other non-solar energy consumed beyond the stated solar RPO or other non-solar RPO for that year. Hydropower sourced from outside India would not be considered for hydropower purchase obligation compliance.

In May this year, the Punjab State Electricity Regulatory Commission (PSERC) had invited comments, suggestions, and objections to the staff paper to revise the RPO regulations to factor in hydropower purchase obligation.

Early this year, the Ministry of Power issued a notification specifying RPO targets, including large hydropower projects commissioned after March 08, 2019.

Subscribe to our real-time Regulatory Updates to ensure that you don’t miss any critical updates from the renewable energy industry.