Capping RPO

CERC rates (Rs/REC) CERC ref rate (Rs/kwh) Unsold/not retained Solar Non-Solar Solar Wind Solar Non Solar Floor Cap Floor Cap Lower Higher I=B-(E+G) J=C-(F+H) K L M N O P Q - 108 12,000 17,000 1,500 3,900 18.44 4.17 5.63 - 38,437 12,000 17,000 1,500 3,900 18.44 4.17 5.63 633 1,737,751 9,300 13,400 1,500 3,300 15.39 3.95 5.33 346,239 3,739,343 9,300 13,400 1,500 3,300 15.39 3.95 5.33 1,252,726 5,061,986 9,300 13,400 1,500 3,300 15.39 3.95 5.33 1,711,364 2,703,381 3,500 5,800 1,500 3,300 7.72 3.95 5.33 1,597,414 (354,703) 3,500 5,800 1,500 3,300 7.72 3.95 5.33 1,089,725 (11,432,119) 1,000 2,400 1,000 2,900 4.65 4.16 5.90 (5,662,944) 378,642 1,000 2,400 1,000 2,900 4.65 4.16 5.90 (77,144) 78,405 1,000 2,400 1,000 2,900 4.65 4.16 5.90 e previously unsold stock of RECs. Please n ote RECs remain valid for 3 years. Capping RPO www.infralive.com 35 Infra LIVE August 15, 2019 end price of all such products to the consumers. This will lead to avoidable inflation and slow down of the economy. Only such consumers, like discoms, can be made to fol- low RPO rules, which have wide range of consumption patterns throughout the day. The government should not carry away with the views of the lobbyists and it should continue with the RPO cap on the industry using CPPs. meet RPOobligation. 5. Capping of RPO for CPPs may not affect the overall develop- ment of Renewable Power in the country as today both solar and wind power cost has come down significantly. 6. In addition to the above diffi- culties, RPO liability will increase the cost of production of every product that an entity must be producing at their respective plants. There will be a cascading impact on the out wheeling and banking arrangement, it is almost impo s s i b l e t o c on s ume renewable power by any industry considering variabil- ity in generation of renewable power. Current RE Regula- tions are not in favour of Cap- tive Renewable Power or REC ba s ed r enewab l e powe r plants, as net metering is permitted only up to 1 MW. There is regulatory and tech- nical difficulty in CPPs to them to meet their RPO for solar, and non-solar certificates are sold to the obligated entities to enable them to meet their obligation for purchase from renewable energy sources other than solar. Revenue for a RE generator under REC scheme includes reve- nue from the sale of electricity component of RE generation and the revenue from the sale of envi- ronmental attributes in the form of RECs. RE generators will have two options: i) either to sell the renew- able energy at preferential tariff or ii) to sell electricity generation and environmental attributes associated with RE generations separately. A generating company engaged in generation of electricity from renewable energy sources is eligi- ble to apply for registration for issuance of and dealing in certifi- cates if it fulfils certain eligibility conditions. REC are issued to RE generators. The REC are also issued to the eligible distribution licensees, who have procured more power than their obligated RPO. Only grid connected RE tech- nologies approved by MNRE are eligible under this scheme. RE generators who fulfil the eligibility criteria can apply for the accreditation to concerned State Agency. A generating company having entered into a power purchase agreement for sale of electricity at a tariff determined under section 62 or adopted under section 63 of the Act by Appropriate Commis- sion shall not, in case of premature termination of the agreement, be eligible for participating in the REC scheme for a period of three years from the date of termination of such agreement or till the scheduled date of expiry of power purchase agreement whichever is earlier, if any order or ruling is found to have been passed by an Appropriate Commission or a competent court against the gen- erating company for material breach of the terms and condi- tions of the said power purchase agreement. REC once issued remains valid for 3 years from the date of issu- ance of such certificate. Validity of all solar and non-solar RECs that expired between March 31, 2017 and September 30, 2017 were extended up to March 31, 2018, whichever is later. This was because that time there were few takers of REC and its implementa- tionwas also not strictly enforced.