PSERC Issues Renewable Purchase Obligation Regulations Up To FY 2030

The proposed Punjab State Electricity Regulatory Commission (PSERC) (Renewable Purchase Obligation and its Compliance) Regulations, 2022, published by PSERC, outlines the state’s renewable purchase obligation (RPO) trajectory through the financial year (FY) 2029–2030.

The Commission has published the purchase obligations for wind, hydro, energy storage, and other renewable energy sources in accordance with the Ministry of Power’s most recent RPO trajectory.

On November 16, 2022, a public hearing will be conducted to discuss the proposed policy.

Energy generated from hydropower projects, including pumped hydro storage projects and small hydropower projects launched after March 18, 2019, must be used to satisfy Hydro Power Obligations (HPO). This includes free power delivered to the state.

Energy from all hydroelectric projects completed as of March 8, 2019, including any free electricity given to the state, shall be counted as RPO beginning in the financial year (FY) 2022–23 under the heading of other RPO.

Further, according to the proposed regulations, the wind RPO must be satisfied using energy generated by wind power projects put into service after March 31, 2022. Consumed wind energy must come from at least 7% of wind projects that have been operational as of March 31, 2022.

The Energy Storage Obligation (ESO) may only be considered satisfied when at least 85% of the energy stored in the energy storage system each year is generated from renewable energy sources. It must be satisfied by solar or wind energy and storage installations.

Any residual shortfall in attaining other RPO categories in a given year may be made up with the extra energy used by wind projects that are put into service after March 31, 2022, over the wind RPO for that year. It can also be satisfied by using extra energy from qualified hydropower projects that were put into service after March 8, 2019, beyond the HPO for that year. 

Additionally, any hydropower consumption that is above the HPO for that year can be used to make up any shortfall in meeting the wind RPO in that year and vice versa.

Punjab Energy Development Agency (PEDA) is the suggested state agency for accrediting qualified enterprises for the award of certificates and to carry out duties under these regulations.

The state agency is required to provide reminders to the defaulting obligated entities that have not completed the required RPO and have not paid the penalty, through monthly statements on a cumulative basis of RPO compliance by various entities on its website.

Further, in order to compute, reconcile, and monitor RPO compliance, the state agency must develop an acceptable procedure for gathering and validating data from numerous sources, such as renewable producing firms, state load dispatch centers, distribution companies, or any other agency.