Rajasthan’s Renewable Energy Compliance: RERC’s Streamlined Approach to RPOs

The Rajasthan Electricity Regulatory Commission (RERC) has laid out regulations regarding Renewable Purchase Obligations (RPOs) for obligated entities in the state. These regulations specify targets for the fiscal years from 2024-25 to 2029-30. For Distribution Companies (Discoms), the targets are categorized into ‘Wind RPO’, ‘HPO’, and ‘other RPO’. Similarly, for Captive Power Plants/Open Access (CPP/OA) consumers with a capacity of 1 MW and above, single RPO targets have been set.

In previous periods, up to FY 2023-24, RPO targets were defined under the RERC (Renewable Energy Obligation) Regulations, 2007, and its subsequent amendments. These earlier regulations specified technology-specific targets for wind, solar, and biomass for Discoms. CPP/OA consumers with an installed capacity of 10 megawatts and above had separate solar and non-solar RPO targets, while those with less than 10 MW capacity had combined targets.

Additionally, the RERC has outlined the Renewable Energy Certificate and Renewable Purchase Obligation Compliance Framework Regulations, 2010. These regulations provide guidelines for meeting RPO targets through Renewable Energy Certificates (RECs).

Recently, the Central Electricity Regulatory Commission (CERC) introduced the CERC REC Regulations, 2022, replacing their previous regulations from 2010. Under these new regulations, distinctions between solar and non-solar RECs have been eliminated, and a multiplier concept has been introduced. This allows obligated entities to fulfill any category of RPO by procuring RECs according to the CERC Regulations, 2022.

Recognizing the national scope of the REC mechanism and the shift towards single technology-agnostic RECs in energy exchanges, the RERC has received requests to address the challenge of fulfilling technology-specific RPOs when only generic RECs are available. In response, the Commission, empowered by Regulation 15 of the RERC REC Regulations, 2010, has directed obligated entities to meet their RPOs by procuring RECs under the CERC REC Regulations, 2022.

This decision ensures consistency in RPO fulfillment across the state and aligns with national-level regulations. By adapting to the changes in the REC market and simplifying the compliance process, the RERC aims to facilitate the transition towards renewable energy while maintaining regulatory coherence.

Please view the document below for more details.