Tamil Nadu Likely to Set Solar RPO for FY 2020 at 6%

The Tamil Nadu Electricity Regulatory Commission (TNERC) has invited suggestions and comments on the proposed amendments to its Renewable Energy Purchase Obligations (RPOs).

The commission has been mandated to set RPOs for the financial years 2019-20, 2020-21, and 2021-22. The commission has already notified the RPO for the financial year 2017-18 in its RPO Regulations.

Open access consumers, distribution licensees, and captive power consumers are the entities obligated under the regulation.

All the obligated entities will have to abide by the notified RPO targets. However, the captive consumers and open access consumers will be exempted from the latest targets for the moment as several writ petitions have been filed in the Madras High Court, and the enforcement of the targets will be subject to the outcome of these cases filed before the judicial forum.



As per the amendment, the RPO for the financial year 2019-20 is 16.25%, of which the solar RPO is 6%. Similarly, for the financial year 2020-21, the RPO is set at 18.25%, out of which the solar RPO is 8%.

Tamil Nadu Renewable Purchase Obligation (RPO) Target

Earlier this year, Mercom had reported that as many as 27 Indian states and union territories in the country achieved less than 60% of their renewable purchase obligations last year. Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Madhya Pradesh, Mizoram, Nagaland, Rajasthan, Tamil Nadu, Tripura, Uttarakhand were the only states that have achieved at least 60% of RPO compliance.

RPO is the single most important policy driving renewable energy installations in India. However, due to the lack of enforcement of RPO regulations and the absence of penalties when obligations are not met, many of the state DISCOMs are not fully complying with their RPO targets.

Considering this, in May 2018, the MNRE created a compliance cell for RPOs. The cell will coordinate with states, the CERC, and state electricity regulatory commissions to ensure RPO compliance. The cell will work with these institutions to make monthly reports on RPO compliance. It will also take up non-compliance related issues with the appropriate authorities. The formation of this compliance cell is the culmination of efforts undertaken in 2017.