The Odisha Electricity Regulatory Commission (OERC) issued a public notice in August 2024 to inform the public about proposed regulations concerning the procurement of energy from renewable sources and its compliance. These draft regulations are framed under the Electricity Act of 2003, specifically under Section 181, along with related sections. The notice invites the public to submit their views, suggestions, or objections regarding these regulations by September 13, 2024. Following the review of the responses, the Commission may make changes to the draft regulations before officially publishing them.
The draft regulations focus on promoting the procurement of energy from renewable sources within Odisha. They apply to distribution licensees, conventional captive users, and open-access customers. The regulations aim to replace the previous guidelines, set in 2021 and will come into effect once they are published in the official gazette.
Key terms defined within the regulations include “Renewable Energy Certificate (REC),” “Captive Generating Plant,” “Hybrid Sources,” and “Obligated Entity.” The goal is to ensure compliance with renewable purchase obligations (RPOs), which require obligated entities to procure a specific percentage of their energy from renewable sources. The regulations specify how these obligations can be met, including through self-generation, open-access procurement, or the use of renewable energy certificates.
The regulations also highlight the importance of distributed renewable energy sources, such as small-scale solar and wind projects. For entities using energy storage systems, the regulations set targets for storing and discharging renewable energy back into the grid. Starting in 2024-25, obligated entities must procure at least 1.5% of their total energy consumption from energy storage systems, with this requirement gradually increasing to 4% by 2029-30.
To monitor compliance, the state nodal agency, appointed by the Commission, will be responsible for collecting data, verifying RPO compliance, and reporting to the Commission. The agency will track renewable energy procurement and compliance through an online portal, where obligated entities are required to submit their monthly data. Failure to comply with the RPO will result in penalties, which will be deposited into an RPO fund that will be used to further develop renewable energy infrastructure in Odisha.
The regulations also address connectivity to the grid, ensuring that renewable energy generators, regardless of size, have access to the transmission and distribution systems. The development of power evacuation infrastructure, beyond the interconnection point, is the responsibility of transmission and distribution licensees, with the cost borne by the developer.
In case of any issues with compliance or grid connectivity, disputes will be referred to the OERC for final resolution. The Commission also holds the authority to amend, interpret, or relax any part of the regulations if needed, ensuring flexibility in addressing future challenges or changes in the energy sector.
The Commission has invited the public and other stakeholders to share their thoughts on the proposed regulations, as part of a collaborative effort to enhance Odisha’s renewable energy landscape. The overall objective is to increase the use of renewable energy sources, reduce reliance on conventional power generation, and help the state meet its energy needs in an environmentally sustainable manner.
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