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TNERC amends renewable energy purchase obligation regulations

According to reports, the Tamil Nadu Electricity Regulatory Commission has amended the regulations relating to ‘renewable energy purchase obligation’, lowering the quantum of the obligation, but bringing in more ‘obligated entities’.

“It is extremely good for renewable energy producers,” commented Mr T. Shivaraman, Vice-Chairman, Orient Green Power Ltd, which produces electricity from windmills and biomass plants.

The ‘amendment regulations’ announced on Monday lowers the purchase obligation (to be fulfilled by the ‘obligated entities’) to 9 per cent from 14 per cent earlier of consumption where the obligated entity is a consumer or of sales, where the entity is a distribution company.

The obligation can be met either by buying ‘green power’ or by buying ‘renewable energy certificates’. Of the 9 per cent obligation, 0.05 per cent should be solar power.

While the quantum of obligated purchase is lower, TNERC has put the obligation on more entities. Under the head ‘obligated entities’, the Commission has brought in a) open access consumers (consumers, say a steel or a cement company, who buy power in the open market through power exchanges), and b) grid connected captive generating plants.

The RPO is to be implemented in a phased manner. In the first phase, till March 2012, all open access and captive consumers with sanctioned demand of 2 MVA and above are obligated. In the second, 2012-13, the sanctioned demand is lowered to 1 MVA and in the third (from April 2014) all open access and captive consumers are obligated irrespective of sanctioned demand.

One comment

  1. The drop in the demand due to the the numbers being revised from 14% to 9% will not be compensated by the addition of CPPs and OAs – both of which will get added only in phase-wise manner.

    TNEB would also be eying the sale of RECs for the RE above the RPO that it buys.

    – Kedar

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