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<p>Himachal Pradesh Electricity Regulatory Commission (<a href="http://hperc.org/" target="_blank" rel="noopener">HPERC</a>) has directed the Himachal Pradesh State Electricity Board Limited (<a href="https://www.hpseb.in/" target="_blank" rel="noopener">HPSEBL</a>) to offset the net deficit of 103.97 MUs as per its solar renewable purchase obligation (RPO) by March 31, 2022.</p>
<p>Himachal Pradesh State Electricity Board is the state’s power distribution company.</p>
<p>The Commission decided to adjust the cumulative deficit of 120.53 MUs up to the financial year (FY) 2018-19 with a surplus of 16.56 MUs of solar procured by the STATE DISCOM in FY 2019-20. DISCOM also said that the surplus non-solar renewable energy for FY 2019-20 of 1389.63 MUs may be considered for issuing non-solar renewable energy certificates (RECs) for FY 2019-20.</p>
<p>If Himachal Pradesh State Electricity Board fails to offset the deficit by March 31, 2022, it will not only be penalized but may also have to face action from the Commission.</p>
<p><strong>Background</strong></p>
<p>DISCOM had procured power from renewable sources (non-solar and solar) to meet its obligation of 10.25% from non-solar and 7.25% from solar energy for FY 2019-20. For FY 2020-21 and 2021-22, the solar obligation was 8.75% and 10.5%, respectively.</p>
<p><strong><a href="https://mercomindia.com/wp-content/uploads/2021/09/The-Renewable-Power-Purchase-Obligation-for-FY-2019-20-to-FY-2021-22.png"><img decoding="async" loading="lazy" class="aligncenter wp-image-29165 size-full" src="https://mercomindia.com/wp-content/uploads/2021/09/The-Renewable-Power-Purchase-Obligation-for-FY-2019-20-to-FY-2021-22.png" alt="The Renewable Power Purchase Obligation for FY 2019-20 to FY 2021-22" width="457" height="238" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/09/The-Renewable-Power-Purchase-Obligation-for-FY-2019-20-to-FY-2021-22.png 457w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/09/The-Renewable-Power-Purchase-Obligation-for-FY-2019-20-to-FY-2021-22-300x156.png 300w" sizes="(max-width: 457px) 100vw, 457px" /></a></strong></p>
<p><strong>DISCOM</strong><strong>&#8216;s </strong><strong>Contentions</strong></p>
<p>In its petition, DISCOM submitted that it had reported a surplus procurement of 1389.63 MUs of non-solar renewable energy for FY 2019-20. It requested the Commission to recommend the issue of non-solar RECs for the same.</p>
<p>DISCOM also reported a surplus power purchase of 16.56 MUs from solar power projects for FY 2019-20. It sought the surplus to be adjusted against the shortfall in the solar RPO compliance during FY 2018-19.</p>
<p>DISCOM agreed to furnish the quarterly compliance reports to the Directorate of Energy (DoE) in the future.</p>
<p><strong>Respondents&#8217; Submissions</strong></p>
<p>The respondents – Additional Chief Secretary (Power), Department of Energy, and Himurja, the state&#8217;s renewable energy development agency, alleged that the DISCOM had submitted its RPO compliance status directly to the Commission instead of the required quarterly submissions to the department of energy. As a result, the data could not be verified.</p>
<p>The Additional Chief Secretary also contended that any penalty on account of the RPO shortfall of the DISCOM could burden consumers.</p>
<p><strong>Commission&#8217;s Analysis</strong></p>
<p>The Commission noted the non-solar RPO compliance status of DISCOM from FY 2015-16 to 2018-19 and the solar RPO compliance status from FY 2017-18.</p>
<p><a href="https://mercomindia.com/wp-content/uploads/2021/09/Non-Solar-RPO-Compliance-Status-of-Himachal-Pradesh-Electricity-Board-from-FY-2015-16-upto-FY-2018-19-1.png"><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-29162" src="https://mercomindia.com/wp-content/uploads/2021/09/Non-Solar-RPO-Compliance-Status-of-Himachal-Pradesh-Electricity-Board-from-FY-2015-16-upto-FY-2018-19-1.png" alt="Non-Solar RPO Compliance Status of Himachal Pradesh Electricity Board from FY 2015-16 upto FY 2018-19" width="661" height="232" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/09/Non-Solar-RPO-Compliance-Status-of-Himachal-Pradesh-Electricity-Board-from-FY-2015-16-upto-FY-2018-19-1.png 661w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/09/Non-Solar-RPO-Compliance-Status-of-Himachal-Pradesh-Electricity-Board-from-FY-2015-16-upto-FY-2018-19-1-300x105.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/09/Non-Solar-RPO-Compliance-Status-of-Himachal-Pradesh-Electricity-Board-from-FY-2015-16-upto-FY-2018-19-1-650x228.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/09/Non-Solar-RPO-Compliance-Status-of-Himachal-Pradesh-Electricity-Board-from-FY-2015-16-upto-FY-2018-19-1-624x219.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/09/Non-Solar-RPO-Compliance-Status-of-Himachal-Pradesh-Electricity-Board-from-FY-2015-16-upto-FY-2018-19-1-600x211.png 600w" sizes="(max-width: 661px) 100vw, 661px" /></a></p>
<p>&nbsp;</p>
<p><a href="https://mercomindia.com/wp-content/uploads/2021/09/Solar-RPO-Compliance-Status-of-HPSEBL-from-FY-2017-18-upto-FY-2018-19.png"><img decoding="async" loading="lazy" class="aligncenter size-full wp-image-29190" src="https://mercomindia.com/wp-content/uploads/2021/09/Solar-RPO-Compliance-Status-of-HPSEBL-from-FY-2017-18-upto-FY-2018-19.png" alt="Solar RPO Compliance Status of HPSEBL from FY 2017-18 upto FY 2018-19" width="559" height="170" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/09/Solar-RPO-Compliance-Status-of-HPSEBL-from-FY-2017-18-upto-FY-2018-19.png 559w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/09/Solar-RPO-Compliance-Status-of-HPSEBL-from-FY-2017-18-upto-FY-2018-19-300x91.png 300w" sizes="(max-width: 559px) 100vw, 559px" /></a></p>
<p>The Commission confirmed that DISCOM had a net surplus of 1389.63 MUs of non-solar and 16.56 MUs of solar energy. For  FY 2019-20, the Commission decided to offset the cumulative deficit (up to FY 2018-19) of non-solar RPOs of 83.52 MUs with a surplus of 1389.63 MUs of non-solar renewable energy of FY 2019-20.</p>
<p>The Commission also certified that DISCOM had satisfied the eligibility criteria recommended for issuing RECs to the distribution licensees after considering the non-solar RPO compliance status of the previous three financial years. The DISCOM was found to have a net surplus of 1306.11 MUs of non-solar energy for FY 2019-20.</p>
<p>Regarding the solar RPO compliance for FY 2019-20, the Commission decided to offset the cumulative deficit of solar RPOs of 120.53 MUs with surplus solar renewable energy of 16.56 MUs for FY 2019-20.</p>
<p>With this adjustment, DISCOM had a net deficit of solar RPO of 103.97 MUs. The Commission directed DISCOM to offset this deficit by March 31, 2022, through any of the following options:</p>
<ul>
<li>adjusting against surplus for the FY 2020-21</li>
<li>procuring solar RECs</li>
<li>buying additional power during the remaining part of the current financial year dedicated for adjustment of this deficit</li>
<li>adjusting against the REC inventory, if feasible, or by any other viable options.</li>
</ul>
<p>The Commission directed the DISCOM to plan its solar RPO judiciously by procuring in advance through preferential tariffs to avoid any deficit.</p>
<p>In 2020, HPERC <a href="https://mercomindia.com/himachal-pradesh-issues-order/" target="_blank" rel="noopener">issued</a> an order for DISCOMs in the state regarding their RPO backlogs.  It directed DISCOM to purchase power from renewable sources to meet its obligation of 9.5% from non-solar and 4.75% from solar energy for FY 2018.</p>
<p>Subscribe to our real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure that you never miss any critical updates from the renewable energy industry.</p>
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Himachal Pradesh DISCOM Directed to Offset Solar RPO Deficit

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