Renewable power purchase hits a wall in Gujarat
Once the flag-bearer of renewable energy in India, Gujarat has been defaulting on its renewable purchase obligation (RPO) for four years now. Adding to the woes of the renewable power producers, the Gujarat Electricity Regulatory Commission (GERC) has reduced the amount of RPO to be procured by the state.
Instead of increasing the RPO per cent for state’s two utilities – Gujarat Urja Vikas Nigam and Torrent Power, the GERC calculated the weighted average of RPO achieved by all distribution licensees and has waived off past default in purchase. For wind power it comes out to 4.15% down from original 5.5% and for solar it is 1% – which has not been increased further.
It also granted extension to the utilities for procuring renewable power. Wind power producers have challenged this order in Appellate Tribunal of Electricity (APTEL).
“We decide to revise the RPO of the distribution licensee of the State by adopting the weighted average formula in which the renewable energy available in the State and the energy procured by the distribution licensee is considered and based on it the weighted average renewable energy determine is considered as the RPO for FY 2012-13,” said the last year’s order of GERC.
Renewable purchase obligations or RPO makes it mandatory for the utilities to purchase a fixed portion of their requirement through renewable energy sources. It is divided into two parts – solar RPO and non-solar RPO which includes wind power.
While shortfall in solar power procurement was reduced post 2013, wind power continues to face tough times. Gujarat has faced similar issue in 2007-08 when the discoms stopped purchasing from wind power after their target was met.
Wind power producers are aggrieved that the state is not purchasing power from their units and they are likely to face payment issues. Gujarat has close to 3876 MW of installed win power generation capacity. Around 230 MW of new wind power capacity was added in the state during 2015-16. Gujarat had signed close to 28 MoUs in 2010 totalling 5,071 6 MW and entailing investment of $6.7 billion, as per industry estimates then.
