Capping RPO

Capping RPO Infra LIVE August 15, 2019 30 www.infralive.com back, it had agreed with MoP on this subject and an order was issued on February 1, 2019, on renewable purchase obligation (RPO) for captive power plants (CPPs). The order said, “RPO of the CPP may be pegged at the RPO level applicable in the year in which the CPP was commissioned. As and when the company adds to the capacity of the CPP, it will have to provide for additional RPO as obligated in the year in which new capacity is commis- sioned. There should not be an increase in RPO of CPP without any additional fossil fuel capacity being added” (see scan at pg 33). RPO is the obligation mandated by the State Electricity Regulatory Commission (SERC) under the Electricity Act, to purchase minimum level of renewable energy out of the total consump- tion in the area of a distribution licensee. In our June 15, 2019 issue, in a story titled, “RPO: Cap for CPPs is necessary & justified,” we had revealed, that how soon after the above order, certain groups started lobbying for the with- drawal of the order on the ground that it will be counterproductive to the target of 175 GW of capacity of renewable energy set by the government to be achieved by 2022. The lobbyists also said that capping RPO for CPP would mean C I P P (CPP) had impressed upon the Ministry of Power (MoP) their problems with respect to Renewable Power Obligation (RPO). Briefly these issues are: Large industries cannot install RE power as they require uniform reliable power 24x7, steam pressure requirements cannot be met by RE, discoms are not signing PPAs for RE at Average Power Purchase Cost (APPC) levels. MoP had taken a realistic view but is being stonewalled by the Ministry of Renewable Energy (MNRE). MNRE's change of stand is puzzling. Barely five months Capping RPO r Fresh RECs on decline but RPO targets doubled r MoP Feb’19 Order on CoD-linked RPO cap for CPPs needs to be implemented r RECs rates not adjusted in 3 years despite steep tariff decline in bids