RIL Seeks RPO Relief From Gujarat Regulator Amid REC Shortage And COVID Impact

Reliance Industries Limited filed a petition before the Gujarat Electricity Regulatory Commission (GERC) seeking permission to revise and carry forward its Renewable Purchase Obligation (RPO) compliance for the financial year 2020-21. This was due to the unavailability of Renewable Energy Certificates (RECs) in the market, caused by a stay order on REC trading issued by the Appellate Tribunal for Electricity (APTEL) and further impacted by the COVID-19 pandemic and national lockdown in March 2020. The company argued that these were factors beyond its control.

The petition was made under various provisions of the GERC’s RPO regulations. Reliance Industries requested the Commission to either relax or waive certain provisions of these regulations. They cited Ministry of Power (MoP) letters issued in 2019, which allowed capping of RPO levels for captive power plants at the levels applicable during the year of commissioning. Reliance sought that these central guidelines be implemented to avoid additional burdens on captive plants at their Hazira and Dahej facilities.

The company also informed the Commission that public notices regarding the petition were issued in newspapers and posted on its website to seek stakeholder comments. Only the Indian Wind Power Association (IWPA) responded, but no one from IWPA attended the hearing.

Reliance stated that it had been complying with RPOs by purchasing RECs for its coal-based power plants and open access units. However, the trading of RECs had been suspended since July 2020, and there was a lack of sufficient RECs in the market. As a result, the company failed to procure the necessary RECs for the 2020-21 RPO target.

Reliance also challenged some of the regulations in the Gujarat High Court, arguing that the inclusion of all captive power users as obligated entities was unfair, especially those using cogeneration. The High Court initially rejected their petition, but the matter remains sub judice following an appeal.

Further, the company explained that other states like Maharashtra, Rajasthan, and Uttar Pradesh had amended their own RPO rules to align with MoP’s clarification letters. Reliance insisted that Gujarat should do the same to allow flexibility in compliance.

In response, the Commission acknowledged that the company had followed the procedural requirements and noted the challenges mentioned. The Commission granted two weeks’ time to Reliance to submit data on its RPO compliance for Hazira and Dahej plants. The IWPA was also given an opportunity to respond within two weeks after receiving the data.

The Commission stated that the next date of hearing will be communicated separately. The matter remains open pending further submissions and review.