Andhra Pradesh Empowers Renewable Energy Procurement with APERC’s Latest Amendments

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The Andhra Pradesh Electricity Regulatory Commission (APERC) has recently introduced amendments to the Renewable Power Purchase Obligation (RPO) Compliance by Purchase of Renewable Energy/Renewable Energy Certificates Regulations, 2022. These amendments, which took effect on July 14, 2023, have significant implications for consumers and entities in the state.


One of the key changes is that captive open access consumers can now count their purchases of renewable energy towards meeting their RPO. This means that entities have the flexibility to choose between purchasing renewable energy up to a certain percentage of their consumption or fulfilling their entire consumption through renewable sources. However, they must submit a request to the authority three months before the start of the financial year for procuring renewable energy, except for the current year.

The amendments also allow obligated entities to purchase additional renewable energy beyond their required percentage, up to 100%. However, the mandated percentage of renewable energy procurement should not fall below the specified RPO set by the government or APERC, whichever is higher.

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For consumers opting for renewable energy through the green tariff, a nominal ₹0.75 per unit will be added to the regular tariff. These consumers will be considered as using renewable energy supplied by the DISCOM.

Moreover, the minimum subscription duration for requesting renewable energy from DISCOMs is one year starting from the next financial year. Any surplus renewable energy purchased from DISCOMs, beyond the obligated entities’ RPO and non-obligated entities’ total procurement, will contribute to the DISCOMs’ RPO compliance.

Entities that exceed their RPO targets will receive Green Stars Certificates, which will be issued within three months after the end of the financial year. Consumers will also be awarded green star ratings based on their renewable energy consumption levels.

These amendments further expand the scope of renewable energy procurement, as even non-obligated entities, including domestic consumers at any voltage level, can now procure renewable energy. The changes reflect the state’s commitment to promoting renewable energy usage and achieving a greener and sustainable energy future.

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