West Bengal Electricity Regulatory Commission Addresses Renewable Purchase Obligation Challenges For 2023-24

In response to challenges faced by distribution licensees in meeting Renewable Purchase Obligation (RPO) targets for the year 2023-24, the West Bengal Electricity Regulatory Commission (WBERC) has taken a suo-motu initiative to address the issue. The predicament arises from the absence of a specified RPO target by the commission for the 2023-24 fiscal year.

The regulatory landscape for RPOs in West Bengal has evolved over the years. The WBERC, through a notification dated March 22, 2013, introduced the WBERC (Cogeneration and Generation of Electricity from Renewable Sources of Energy) Regulation 2013. This regulation outlined RPO targets up to 2017-18 for all utilities under the commission. Subsequently, for the years from 2018-19 onward, it mandated an annual increase of one percent in RPO targets until the ultimate goal was achieved by distribution licensees.

However, challenges surfaced when Bengal Energy Limited and Tata Power Limited contested the Renewable Energy (RE) First Amendment Regulation 2021. The key point of contention was whether fossil fuel waste co-generation could be considered a renewable energy source and qualify for RPO. The Kolkata High Court delivered a judgment on March 15, 2022.

In response to the court’s decision, the commission filed a petition seeking a review of the order dated March 15, 2022. The High Court, admitting the review petition, issued an interim order that stayed the original decision. Later, on July 24, 2023, the Calcutta High Court issued a partial stay on the matter.

Given the ongoing legal proceedings and the fact that the RE First Amendment Regulation remains sub judice, the commission finds itself unable to amend the principal RE regulation. However, following regulation 19.1 of the principal RE regulation, the commission has the authority to review and address any difficulties in implementing the provisions of these regulations either suo-motu or upon application from relevant stakeholders.

Under Section 86(1)(e) of the Electricity Act 2003, the commission is mandated to specify RPO targets for distribution licensees. The current predicament stems from the absence of a specified RPO target for the fiscal year 2023-24, leaving distribution licensees in a challenging situation.

To provide clarity and continuity, the commission, without intervening in the regulation under stay, has declared that the RPO for 2022-23 will persist until further orders are issued by the commission, taking into account the decision of the Calcutta High Court. This decision aims to ensure that distribution licensees can continue their operations without disruption while the legal proceedings unfold.

Please view the document below for more details.