The Electricity Act, 2003, mandates the State Electricity Regulatory Commissions to promote cogeneration and generation from renewable energy sources by providing suitable measures for connectivity with the grid, and also to specify for purchase of electricity from such sources, a percentage of the total consumption of electricity in the area of a distribution licensee.
The National Action Plan of Climate Change (NAPCC) has set the target of 5% renewable energy purchase for FY 2009-10 which will increase by 1% for the next 10 years. The NAPCC further recommends strong regulatory measures to fulfil these targets.
In this regard, the Gujarat Electricity Regulatory Commission has passed the regulation for promoting the sale of power from renewable energy sources to any person and for procurement of energy from renewable sources by distribution licensee within the State of Gujarat.
Further the regulations apply to the following:
(1) Distribution licensee
(2) Any other person consuming electricity
(i) generated from conventional Captive Generating Plant having capacity of 5 MW and above for his own use and / or (ii) procured from conventional generation through open access and third-party sale.
Each distribution licensee shall purchase electricity (in kWh) from renewable energy sources, at a defined minimum percentage of the total consumption of its consumers including T&D losses during a year. Similarly, Captive and Open Access user(s) / consumer(s) shall purchase electricity (in kWh) from renewable energy sources, at a defined minimum percentage of his/her total consumption during a year.
The defined minimum percentages are given below:
Given that the RPO for 2012-13 will continue after that until the regulation is modified, Torrent Power India has become the first power generator to invite Expression of Interest to supply Renewable Energy.
The company has a current generation capacity of 1647.5 MW and hence requires about 82MW equivalent of generated renewable energy capacity. This kind of policy enforcement and regulation with penalty clauses as intended by GERC will provide the much-needed impetus for the RPO market to flourish in India and provide an incentive for RE power producers.