Punjab State Power Corporation (PSPCL), the state distribution company (DISCOM) is permitted to carry over the renewable purchase obligation (RPO) shortfall for the fiscal years (FY) 2021–2022 and FY 2022–2023 to the fiscal year (FY) 2023–2024 by the Punjab State Electricity Regulatory Commission (PSERC).
The RPO objectives in the state for FY 2021–22 were previously set by the Commission at 8% for non–solar electricity and 6.5% for solar power. However, following the second wave of Covid-19, the RPO obligation was therefore set at 7.7% and 5%, respectively, for FY 2021–22.
The Commission acknowledged that even with the carryover of the RPO backlogs from FY 2021-22 and FY 2022-23, the DISCOM petitioner is projected to surpass the stipulated RPO objective of 27% in FY 2023–24.
PSPCL said that despite its best efforts, it was unable to meet the RPO requirements for FY 2021–2022. In Punjab, there were relatively few non-solar renewable energy resources, and hydel sources were practically completely employed.
In response, the Punjab Energy Development Agency (PEDA) claimed that PSPCL had been continuously changing the energy estimates and attempting to carry over the deficiency in RPO for several years under a variety of justifications.
According to PSPCL, all hydropower projects’ energy purchases would be taken into account for RPO compliance beginning in FY 2022–23 under the “other RPO” category, per a notification from the Ministry of Power.
Therefore, PSPCL revised its RPO compliance estimates, noting that even with the carryover of the FY 2021–22 shortfall, it would be excess in the “other RPO” category for FY 2022–23.
However, the Commission announced in December 2022 the Renewable Purchase Obligation and its Compliance Regulations, 2022, specifying the above provision, will take effect on April 1, 2023.
Henceforth, PSPCL realized that it would not be able to satisfy the RPO for FY 2022–2023
The Commission noted that the major reason it was unable to meet the RPO objectives for FY 2021–22 was Covid–19.
Further, PSPCL was not able to reach the RPO target, since the new RPO laws would only be applicable after FY 2022–23, and the advantage of having hydropower count as renewable electricity would only be effective starting on April 1, 2023.
In FY 2023–2024, PSPCL must reach an RPO objective of 27% of the total input energy, equal to 17,724.38 MU. Even with the carryover for the RPO shortage for the fiscal years 2021–22 and 2022–23, the petitioner stated that based on the forecasts, it is projected to be in RPO excess by 114.03 MU for FY 2023–24.
Thus, in light of the available information, the Commission chose to let the RPO shortfall be carried over to FY 2024.
