The Maharashtra Electricity Regulatory Commission (MERC) has announced amendments to the Maharashtra Electricity Regulatory Commission (Renewable Purchase Obligation, its Compliance and Implementation of Renewable Energy Certificate Framework) Regulations, 2019. These amendments come in line with the Electricity Act, 2003, and the Tariff Policy, 2016, aiming to promote renewable energy generation and ensure compliance with renewable purchase obligations.
Under the Electricity Act, 2003, state electricity regulatory commissions are tasked with encouraging renewable energy generation and setting minimum renewable purchase obligations for distribution licensees. These obligations consider the availability of renewable resources and their impact on retail tariffs. The MERC initially notified the regulations in 2019, and subsequent orders and notifications from the Ministry of Power (MoP) have necessitated amendments to align with national directives.
The amendments define various types of renewable purchase obligations, including Distributed RPO, Other RPO, and Wind RPO. Distributed RPO pertains to renewable energy generated from projects smaller than 10 MW, while Other RPO encompasses energy from renewable sources not covered under specific categories. Wind RPO specifically targets energy from wind power projects commissioned after March 31, 2024.
Additionally, the amendments introduce Hydro Purchase Obligation (HPO), focusing on energy from hydro projects commissioned after March 31, 2024. The regulations allow for meeting HPO through excess energy from certain hydro projects or imported hydropower, subject to central government approval.
The amended regulations also establish a renewable purchase obligation framework valid from April 1, 2020, to March 31, 2030. They specify renewable purchase obligation targets for different fiscal years and outline mechanisms for obligated entities to procure renewable energy. Incentives are provided for exceeding minimum renewable purchase obligations, encouraging entities to invest in renewable energy procurement.
Furthermore, the amendments introduce provisions for energy storage obligation, requiring a percentage of total electricity consumption to be stored using renewable energy sources. Energy storage obligation targets aim to foster the adoption of energy storage technologies alongside renewable energy generation.
To facilitate compliance with renewable purchase obligations, obligated entities have the option to purchase renewable energy certificates (RECs) or procure renewable energy directly. Incentives and penalties are outlined based on the fulfilment of renewable purchase obligations, with distribution licensees subject to a reduction in aggregate revenue requirements for non-compliance. Overall, the amendments to the Maharashtra Electricity Regulatory Commission regulations aim to streamline renewable energy procurement processes, incentivize compliance with renewable purchase obligations, and accelerate the transition to a cleaner and sustainable energy future in Maharashtra.
Please view the document here for more details.
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