ONGC Requests RPO Compliance Extension From GERC Amid Regulatory Ambiguities

The Oil and Natural Gas Corporation Limited (ONGC) has filed a petition with the Gujarat Electricity Regulatory Commission (GERC). The petition seeks permission to carry forward the Renewable Purchase Obligation (RPO) compliance from the financial year 2022-2023 to the next financial year, 2023-2024. The petition addresses the need for this extension due to pending clarifications regarding RPO targets.

ONGC is a public limited company engaged in oil exploration, drilling, production, sale, transmission, and allied activities. It has multiple assets, including the Hazira Plant in Surat and the Ankleshwar Asset. The company has decided to pursue the present petition through its Hazira Plant, and institute legal proceedings on its behalf.

The background of the petition lies in the regulatory framework set by the Central Electricity Regulatory Commission (CERC) and GERC. The CERC issued regulations in 2010 to promote renewable energy, introducing Renewable Energy Certificates (RECs) that could be traded to meet RPOs. Following this, GERC also notified its own regulations to promote renewable energy within Gujarat, imposing RPOs on distribution licensees and consumers of electricity from conventional captive generating plants.

The GERC regulations have undergone several amendments to update RPO targets and clarify compliance requirements. For instance, a 2015 notification by GERC brought captive and open access users under the RPO mandate, which required them to source a specified percentage of their energy from renewable sources. This mandate aimed to ensure a steady increase in the adoption of renewable energy.

However, ONGC’s compliance with these regulations has faced challenges. The company had previously filed petitions to carry forward RPO compliance for earlier financial years, which are still pending for final hearing. The current petition highlights that the RPO targets for the financial year 2022-2023 remain unascertained due to the lack of clarity from GERC.

In response to these challenges, ONGC has sought clarification from GERC on multiple occasions regarding the applicable RPO targets. Despite these efforts, the ambiguity persists, prompting the company to file the current petition to carry forward its RPO compliance. The petition emphasizes that this extension is necessary to avoid penalties and ensure that ONGC remains in compliance with regulatory requirements.

ONGC’s petition outlines the regulatory history and its ongoing efforts to meet RPO targets. It references various GERC notifications and government orders that have influenced the company’s RPO obligations over the years. These include the pegging of RPO levels based on the commissioning year of the captive power plants and subsequent amendments that have revised RPO targets.

The petition underscores the importance of resolving the RPO target ambiguity to facilitate ONGC’s compliance. It seeks interim relief to stay the RPO compliance requirement for the financial year 2022-2023 until the matter is clarified by GERC. Additionally, the petition requests any further relief that the commission deems just and proper in the interest of justice.

Overall, ONGC’s petition to GERC highlights the complexities involved in adhering to renewable energy regulations and the need for clear guidelines to ensure compliance. The company’s efforts to seek clarity and carry forward RPO compliance underscore its commitment to meeting regulatory requirements while addressing the practical challenges it faces.