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					</table><p>The Gujarat Electricity Regulatory Commission (<a href="https://gercin.org/" target="_blank" rel="noopener">GERC</a>) has released draft regulations for procuring energy from renewable sources. The &#8220;Gujarat Electricity Regulatory Commission (Procurement of Energy from Renewable Sources) Regulations, 2024&#8221; aim to align the state&#8217;s renewable energy targets with national goals and promote sustainable energy development.</p>
<p>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.</p>
<p>The draft regulations introduce a comprehensive renewable power purchase obligation (RPPO) framework for obligated entities, including distribution licensees and large consumers.</p>
<p>The RPPO targets are set to increase annually from 2024-25 to 2029-30, with specific percentages allocated to different renewable energy categories.</p>
<p>For instance, in 2024-25, the total RPPO target is set at 29.91%, which increases to 43.33% by 2029-30.</p>
<p>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.</p>
<p>The regulations clearly define the entities obligated to fulfill RPPO, which include:</p>
<ul>
<li>Designated consumers as defined under the Energy Conservation Act, 2001</li>
<li>Open access consumers</li>
<li>Captive power plant owners with installed capacity exceeding 100 KW based on conventional technology</li>
<li>Distribution licensees.</li>
</ul>
<p>Obligated entities can meet their RPPO through various means, including:</p>
<ul>
<li>Direct purchase of renewable energy</li>
<li>Generation from own renewable energy sources</li>
<li>Purchase of Renewable Energy Certificates (RECs)</li>
<li>Banking arrangements with renewable energy generators</li>
</ul>
<p>The regulations also allow inter-category adjustments in case of shortfalls or surpluses in specific RPPO categories.</p>
<p>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.</p>
<p>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.</p>
<p>The regulations are expected to boost the renewable energy market in Gujarat, creating opportunities for project developers, equipment manufacturers, and service providers.</p>
<p>Recently, GERC <a href="https://www.mercomindia.com/gerc-asks-wind-credit-benefits-with-utility" target="_blank" rel="noopener">ruled</a> 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.</p>
<p>Earlier, GERC <a href="https://www.mercomindia.com/gujarat-allows-net-metering-rooftop-1-kw-to-1-mw/" target="_blank" rel="noopener">allowed</a> 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.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.</p>


Gujarat Unveils Draft Regulations for Renewable Energy Procurement


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					</table><p>The Andhra Pradesh Electricity Regulatory Commission (<a href="https://aperc.gov.in/" target="_blank" rel="noopener">APERC</a>) has dismissed a petition filed by <a href="https://www.seml.co.in/smal.php" target="_blank" rel="noopener">Sarda Metals &amp; Alloys</a> seeking postponement of its Renewable Power Purchase Obligation (RPPO) and capping of RPPO rates.</p>
<p><strong>Background</strong></p>
<p>Sarda Metals, which operates an 80 MW captive power plant in Vizianagaram, had sought to carry forward its RPPO for FY 2017-18-FY 2022-23 to FY 2024-25-FY 2029-30.</p>
<p>The company cited financial distress and operational challenges as reasons for non-compliance with RPPO requirements.</p>
<p>APERC established RPPO for certain categories of consumers, including those owning captive generating plants with an installed capacity of 1 MW or above.</p>
<p>Sarda Metals has supplied power through open access to DISCOMs and other consumers since February 15, 2013.</p>
<p>As an &#8220;obligated entity&#8221; under the RPPO regulations, Sarda Metals was to fulfill its renewable energy purchase obligations by buying renewable energy or renewable energy certificates (RECs).</p>
<p>However, the company failed to meet these obligations for several years, citing financial distress and operational challenges.</p>
<p>APERC initiated proceedings against Sarda Metals for non-compliance, issuing show cause notices on December 27, 2021, for FY 2017-18 and FY 2018-19, and on October 4, 2023, for FY 2019-20.</p>
<p>The Commission had previously determined the company&#8217;s liability at ₹165 million (~$1.9 million) for FY 2017-18 and FY 2018-19 on May 30, 2023.</p>
<p>In response to these actions, Sarda Metals filed a petition seeking to postpone its RPPO obligations and requesting a cap on RPPO rates.</p>
<p><strong>Commission&#8217;s Analysis </strong></p>
<p>The Commission rejected the plea, stating the petitioner&#8217;s conduct was lethargic.</p>
<p>It noted that Sarda Metals had failed to approach it, seeking postponement either during or immediately after the relevant financial years.</p>
<p>Emphasizing the environmental importance of RPPO, APERC stated that unless the RPPO for each year is scrupulously followed, the objective of reducing fossil fuel consumption would be rendered ineffective. The damage in such cases could become irreversible.</p>
<p>The Commission also dismissed Sarda Metals&#8217; plea to cap RPPO rates as per the Ministry of Power&#8217;s clarificatory orders.</p>
<p>Citing recent Supreme Court judgments, the APERC clarified that while the National Tariff Policy is a material consideration, it does not bind the Commission&#8217;s tariff-setting powers.</p>
<p>Recently, APERC <a href="https://www.mercomindia.com/andhra-regulator-approves-7-gw-solar-power" target="_blank" rel="noopener">approved</a> a tripartite Power Supply Agreement allowing the Andhra Pradesh Green Energy Corporation, now known as AP Rural Agriculture Power Supply Company, to draw 7 GW of solar power from the Solar Energy Corporation of India.</p>
<p>Subscribe to Mercom&#8217;s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to stay informed about critical updates from the renewable industry.</p>


APERC Rejects Developer’s Plea for Delaying Renewable Purchase Obligations


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					</table><p>The Andhra Pradesh Electricity Regulatory Commission (<a href="https://aperc.gov.in/" target="_blank" rel="noopener">APERC</a>) has announced the renewable power purchase obligation (RPPO) targets until the financial year (FY) 2026-27.</p>
<p>The RPPO targets are 18% for FY 2022-23, 19% for FY 2023-24, 20% for FY 2024-25, 22% for FY 2025-26, and 24% for FY 2026-27.</p>
<p>The ‘Renewable Power Purchase Obligation Regulations, 2022’ have been put in place to specify the RPPO compliance targets and their fulfillment by purchasing renewable power and renewable energy certificates (RECs).</p>
<p>As per the new regulations, the purchase of renewable energy by a distribution licensee will qualify for the fulfillment of RPPO.</p>
<p>The electricity generated by a consumer from rooftop solar systems under the net metering arrangement will also qualify for meeting the RPPO targets of the distribution licensee.</p>
<p>The purchases made from rooftop solar projects under the gross metering program at mutually agreed prices and the renewable energy for which the generator has not claimed RECs will also be counted toward fulfilling RPPO targets.</p>
<p>Another clause states that the purchase of renewable energy by a distribution licensee from other distribution licensees and the purchase of RECs will also meet the requirement of RPPO compliance.</p>
<p>The Commission has clarified that distribution companies (DISCOMs) should procure 100% of the power from all waste-to-energy projects in their supply area.</p>
<p>The state regulator added that the renewable power procured by DISCOMs from renewable energy sources bundled with coal and lignite-based thermal generation would be counted for RPPO compliance.</p>
<p>The energy consumption of a renewable energy service company (RESCO) located in the area of the DISCOM will be considered for calculating the energy consumption of that DISCOM for RPPO compliance.</p>
<p><strong>Open access consumers</strong></p>
<p>According to the new RPPO regulations, every open access consumer in the state should purchase from renewable energy sources a minimum amount of electricity expressed as a percentage of the energy consumption through open access for different periods.</p>
<p>The quantity of electricity consumed by the open access consumer from power exchanges will also be taken into account for fulfilling RPPO.</p>
<p>Another clause states that the electricity consumed by the open access consumer from rooftop solar systems under the net metering arrangement, and from renewable energy sources bundled with coal and lignite-based thermal generation will also be counted for RPPO compliance.</p>
<p><strong>Captive generating projects</strong></p>
<p>A captive generator having a project of 1 MW or above and connected to the grid should purchase from renewable energy sources or consume from its captive renewable energy project a minimum quantity of electricity expressed as a percentage of the consumption of energy from such captive generating project for RPPO compliance.</p>
<p>The purchase of renewable energy by the captive consumer from power exchanges will also qualify for RPPO compliance.</p>
<p>Additionally, the renewable energy procured from renewable energy sources bundled with coal and lignite-based thermal generation will also be considered for RPPO fulfillment.</p>
<p>The purchase of RECs by the captive generator will also count toward RPPO fulfillment.</p>
<p>The obligated entities should submit the details of RPPO compliance for every month by the end of the succeeding month and for the entire financial year by the end of July of the succeeding financial year to the state agency.</p>
<p>If the obligated entities do not fulfill the RPPO targets during any year, the state agency will notify obligated entities to deposit into a separate fund an amount arrived at based on the shortfall in units of the RPPO and the maximum price traded through power exchanges during the year.</p>
<p>If the obligated entity fails to comply with the RPPO targets, it will be liable for a penalty decided by the Commission.</p>
<p>In March this year, APERC had <a href="https://mercomindia.com/andhra-new-rpo-targets/" target="_blank" rel="noopener">drafted</a> new regulations specifying the obligation to purchase renewable power and its compliance by purchasing renewable energy or renewable energy certificates for the next five years.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates </a>to ensure you don’t miss any critical updates from the renewable industry.</p>


Andhra Pradesh Sets Renewable Power Purchase Obligation Targets Until 2026-27

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