Karnataka Regulator Issues Draft RPO Target Until 2029-30

Karnataka Electricity Regulatory Commission (KERC) has issued amendments to the KERC (Procurement of Energy from Renewable Sources), Regulations, 2011 to specify the Renewable Purchase Obligation (RPO) target for 2022-23 to 2029-30.

The KERC (Procurement of Energy from Renewable Sources) (Eighth Amendment), Regulations, 2011, came into force on April 1, 2022.

In the previous amendment, the Commission had specified the renewable purchase obligation (RPO) target for compliance by the distribution licensees, including deemed licensees in the state, until 2021-22.

Stakeholders can submit their objections and suggestions by May 12, 2022. The Commission has scheduled a public hearing on May 20, where stakeholders can submit their views.


Non-solar RPO

Under the new regulations, Bangalore Electricity Supply Company (BESCOM) has a non-solar RPO target of 14% for the year 2022-23. Mangalore Electricity Supply Company (MESCOM) and Gulbarga Electricity Supply Company (GESCOM) have a target of 15 and 11%.

Hubli Electricity Supply Company (HESCOM) and Hukeri Rural Electric Co-operative Society (HRECS)  have a non-solar RPO target of 13%.

Non solar RPO target Karnataka

Solar RPO

Under the new regulations, all distribution licensees, including deemed licensees, have a solar RPO target of 11.50% for 2022-23.

Solar RPO target Karnataka

Captive and other open access consumers

The RPO target will apply to all grid-connected captive consumers, which are units of a single legal entity but located in more than one location in Karnataka. The combined RPO of all the units in the state will be considered to meet the RPO target.

Captive consumers and other open access consumers who have achieved a non-solar RPO of 85% will be permitted to meet the shortfall by excess solar, hydropower, or renewable energy certificates (REC) purchased beyond the specified solar RPO or hydropower purchase obligation (HPO) for the year.

Captive consumers and other open access consumers who have achieved a solar RPO of 85% will be permitted to meet the shortfall by excess non-solar, hydropower, or renewable energy certificate purchased beyond the specified non-solar RPO or HPO for the year.

Captive & Open Access RPO trajectory

Hydropower purchase obligation

Captive consumers, other open access consumers, and distribution licensees, including deemed licensees, must procure hydropower from large hydro projects with more than 25 MW capacity and have a commercial, operational date after March 8, 2019, and up to date March 31, 2030.

Karnataka Hydropower Purchase Obligation

HPO target will be trued up annually based on revised commissioning of hydro projects. Hydropower imported from outside India will not be considered for HPO.

Entities that have achieved an HPO target of 85% and above can meet their shortfall through excess solar and non-solar RPO for that particular year. If an entity cannot meet the HPO target due to the non-availability of hydropower of hydro-REC, the entity will be deemed to have met the HPO.

The Ministry of Power issued a notification specifying RPO targets, including large hydropower projects commissioned after March 08, 2019. The government also issued policy measures to promote the hydropower sector and declared that large hydropower projects, including pumped storage projects with over 25 MW capacity which achieved commercial operation after March 08, 2019, are eligible to be classified as renewable energy sources.