The Odisha Electricity Regulatory Commission has introduced new draft regulations aimed at boosting the use of renewable energy within the state. These proposed regulations, named the Odisha Electricity Regulatory Commission (Procurement of Energy from Renewable Sources and its Compliance) Regulations, 2024, are designed to promote the use of renewable energy by various entities and ensure compliance with set targets.
Under these regulations, all obligated entities in Odisha, including distribution licensees, conventional captive users, and open-access customers, are required to meet their renewable purchase obligations (RPO). These obligations can be fulfilled through several methods.
Entities can meet their obligations by generating renewable energy at their facilities. This can be achieved either by setting up their renewable energy plants or by entering into agreements with developers. Alternatively, they can procure renewable energy through open access from developers directly or through trading licensees and power markets.
Consumers also have the option to purchase renewable energy through their distribution licensee or GRIDCO. They can choose to buy up to 100% of their energy needs from renewable sources, with the possibility of purchasing green energy in increments of 25%. The tariff for this green energy will be determined separately by the Commission, and such procurement must be done for at least one year.
Entities with captive power plants can meet their obligations by consuming energy from renewable sources within their plants. Additionally, they can fulfill their RPO by purchasing green hydrogen, green ammonia, or their derivatives, with the amount calculated based on equivalency to renewable energy.
Another option available is to buy Renewable Energy Certificates (RECs) to meet their renewable purchase obligations. These certificates serve as a way to prove that a certain amount of energy has been generated from renewable sources.
The introduction of these draft regulations marks a significant step towards increasing the use of renewable energy in Odisha, supporting the state’s efforts to enhance sustainability and reduce reliance on non-renewable energy sources. By setting clear guidelines and providing various methods for compliance, the regulations aim to facilitate the transition to a greener and more sustainable energy future for the state.
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