NEW DELHI: The Supreme Court ruled that renewable purchase obligations applicable to captive power consumers are justified.
The order came in the case between Hindustan Zinc and Rajasthan Electricity Regulatory Commission.
In August 2012, the Rajasthan High Court had dismissed an appeal by Hindustan Zinc, Ambuja Cements, Grasim Industries and 14 other companies that challenged the applicability of RPO regulations enacted by the Rajasthan Electricity Regulatory Commission on captive power plants.
The ministry of new and renewable energy said in a release on June 1 that the apex court interpreted the obligations in the context of Article 51A (g) of Constitution that casts a fundamental duty on the citizen to protect and improve the natural environment, and the mandate of Article 21 that guarantees right to live with healthy life.
“The Supreme Court order is a positive development and will help in enhancing RPO (renewable purchase obligations) compliance and further contribute to renewable energy growth in the country,” the ministry said, referring to the court’s order which came on May 13.
Under Section 86 (1) (e) of the Electricity Act 2003, state electricity regulatory commissions determine the RPO applicable to distribution companies, captive power plants and open access consumers.
