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Delhi’s new tariff order to mandate use of 2% green energy

According to reports, alongside the revised  domestic tariff for financial year 2012-13,  Delhi Electricity Regulatory Commission (DERC) is all set to start the process for  green energy. In the upcoming tariff order, the regulator is going to announce a 2%  renewable energy obligation for  Delhi discoms, a move which has already been delayed considerably and has many consumers worried about the costs involved.

It means that discoms will be obliged to procure a mandatory 2% power through renewable energy sources like sun, wind, geo-thermal,  municipal waste, among others. Out of this 2%, procuring 0.1%  solar power is mandated and  the rest can be from various sources. Already, many states in the country like Gujarat, Maharashtra and Rajasthan are harnessing a considerably quantum of renewable energy.
Apart from views on domestic tariff, the regulator had also sought opinions and  feedback from consumers on solar tariff as it is all set to become a reality.

While some consumers expressed worry that the 2% RPO could become a costly proposition for them, the consensus in the hearing was in favour. “Stakeholders more or less realized that renewable energy has to be promoted and is part of  the national policy. The cost is also coming down and solar energy, for example, is becoming competitive and has gone down from Rs 18 per unit to about Rs 8-9 per unit,” an official said.

Discoms said that while they were all for renewable energy, procurement of 0.1%  solar energy could be a problem depending on availability, and should be done in phases. They asked the regulator to urge the government to bring out a rooftop policy.

The draft renewable energy proposal was brought out last year, with mounting pressure from several quarters to encourage more production of renewable energy. Delhi is one of the few states that do not have an RPO and sources said there was a lot of pressure on the government to announce the RPO for discoms from the new financial year.

Gujarat, Maharashtra, Mumbai, Rajasthan,  Tamil Nadu are some of the states that have RPOs in place. In USA, California has the largest RPO of 25%. REC trading started in India last year. While Tata Delhi Power has taken the lead in solar power generation in the city, BSES officials insisted they were not far behind.

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