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Renewable Energy ministry seeks changes in Electricity Act

According to reports, to ensure that both private and state-run power distributors abide by the renewable purchase obligations (RPOs), the Union Ministry of New and Renewable Energy has called for amendments to the Electricity Act.

“We have realised that some private companies and state discoms are not complying with the RPO. To make it mandatory, we have proposed an amendment to the Electricity Act,” joint secretary Tarun Kapoor told reporters on the sidelines of a Solar Energy Summit here.

The ministry has already submitted its proposal to the committee appointed by the power ministry for suggesting the needed amendments, he said.

The government aims to derive 15 per cent of its energy from renewable energy sources by 2020.

The RPO is the minimum amount of energy to be purchased by states to meet their renewable energy requirements.

Under these rules, distribution companies, open access consumers and captive consumers are obligated to buy a certain percentage of their power requirements from renewable energy sources.

He also said that in some states there is no enforcement of RPOs by state electricity regulators.

“At times, state regulators tend to postpone enforcement of these obligations. But if the law is amended, SERCs will have to strictly enforce it and a penalty could be imposed for non-compliance, which in turn would put pressure on discoms to meet their quota,” Kapoor added.

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