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Telangana Regulatory Commission Revises Renewable Purchase Obligation (RPO) Target

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In a recent order Telangana State Electricity Regulatory Commission (TSERC) amended previous regulation named Telangana State Electricity Regulatory Commission Renewable Power Purchase Obligation (Compliance by purchase of renewable energy/ renewable energy certificates) Regulation, 2018. The new Renewable Purchase Obligation (RPO) regulation named “Telangana State Electricity Regulatory Commission Renewable Power Purchase Obligation Regulation, 2022”. As the old regulation was substituting for solar four years till 31.03.2022, the new regulation will come into force from 1st April, 2022.

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RPO Target : The objective of RPO target is to promote renewable sources of energy including co-generation by providing suitable measures for connecting with the grid and sale of electricity to any person, as also specify the percentage of total consumption to be purchased in the area of distribution licensee.

To achieve the above objective, TSERC amended the RPO target for Telangana state till FY26-27 as follows.

Year/RPPO (%)2022-232023-242024-252025-262026-27
Solar (%)7.508.009.0010.0011.00
Non-Solar (%)1.001.251.501.752.00
Total (%)8.509.2510.5011.7513.00

The % RPO will be on total energy consumption of an obligated entity excluding consumption met from RE sources and large hydro sources.

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Any obligating entity who has achieved 85% of its solar RPO of a particular year, remaining shortfall can be met by excess non-solar energy purchased beyond specified non-solar RPO for that particular year.

Any obligating entity who has achieved 85% of its non-solar RPO of a particular year, remaining shortfall can be met by excess solar energy purchased beyond specified solar RPO for that particular year.

Contribution of rooftop solar in RPO compliance :

Any non-obligating entity, generating excess solar power on its rooftop, under net metering arrangement, can qualify towards meeting the solar RPO of the distribution licensee by selling the excess solar power.

For the purpose of measuring total solar generation of a rooftop system, DISCOM should install a dedicated solar generation meter at consumer’s location for calculating RPO contribution from the excess rooftop solar energy. The cost for the meter should be born by DISCOM.

The purchases made from solar roof-top projects (gross metering), the unutilized banked energy deemed to have been purchased by the Distribution Licensees from renewable energy projects under open access regulations, purchases made at mutually agreed prices and all such other transactions for which the generator(s) does not claim RECs shall also be treated as fulfilment of the RPO.

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Obligating Entities :

There are mainly two obligating entities responsible for RPO compliance namely Distribution Licensee and Captive User & Open Access Consumer.

a. Distribution licensee :

Every Distribution Licensee shall, on a yearly basis on or before 15th March, submit to the State Agency under intimation to the Commission, the details of the estimated quantum of purchase from renewable energy sources for the ensuing year.
Despite availability of power from renewable energy sources and certificates, if the Distribution Licensee fails to fulfil its commitment towards minimum purchase from renewable energy sources, it shall be liable to deposit amount into a separate fund as per default clause.

b. Captive User & Open Access Consumer :

Every captive user and open access consumer shall have to submit in advance necessary details regarding total estimated consumption of electricity and the quantum of power proposed to be purchased from renewable energy sources for fulfilling its RPPO. The details shall be submitted to the State Agency on a yearly basis on or before 15th March.
The captive user and open access consumer shall submit quarterly status to the State Agency in respect of compliance of RPO. Captive user and open access consumer shall purchase power from renewable energy sources in accordance with the new Regulation. They may also fulfil their RPO through purchase of RECs.

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Consequences of default :

If the obligated entity does not fulfil the RPO target as provided in for the particular year under the duration of the regulation, the Commission may direct the obligated entity to deposit into a separate fund, to be created and maintained by the State Agency. The quantity of amount for the shortfall in units of the RPO and the Forbearance price would be decided by commission.



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