Over two and a half years have passed since power procurement through renewable sources of energy was made mandatory for Delhi’s distribution companies. But, none of the three power utilities have complied with the regulation so far.
The Delhi Electricity Regulatory Commission (DERC) in October 2012 had notified regulations making Renewable Purchase Obligation (RPO) compulsory for all discoms in the city. Since then, the power regulator has only carried it forward to the next financial year as a result of which the defaulting amount has risen up to almost 15 per cent of the total electricity procured by the companies.
However, the commission now claims the issue of RPO will be stringently taken up in the upcoming annual tariff revision. “We shall not be carrying forward the RPO for discoms this time. But, whether they will have to pay a penalty for defaulting in the previous years or a time limit should be given to them to achieve the pending targets has to be decided,” said PD Sudhakar, Chairman, DERC.
Sources told The Hindu that the power regulator, in all likelihood, is going to give a year’s time to discoms to procure at least 5-7 per cent of their total power purchase from renewable sources.
Even if it does so, the backlog shall continue as the RPO mandated for the year 2013-14 was 4.80 per cent while that for 2014-15 was 6.20 per cent. To add to this, the current fiscal (2015-16) has a target of 7.60 per cent which, again, is going to be largely unachieved.
The discoms maintain that renewable power is very expensive and that Delhi has limited scope for generation of the same. “We had floated several tenders but the response has not been very positive as they are offering power at a very high rate. The renewable power available in Delhi is limited. To meet the requirement, we will be forced to buy RECs (renewable energy certificates), which will be very expensive and will have a bearing on the tariff,” said a discom official.
However, disocm Tata Power has initiated the process of procuring renewable power this year.
Mr Sudhakar further said, “The cost of power through renewable sources, especially solar energy, has almost come down to the level of thermal energy or that from gas-based plants. Solar power is now available at Rs.5.5-Rs.6 per unit. So there is no reason not to push the regulation here onwards. But, the target of 3.40 per cent for 2012-13 will not be considered as the regulation itself was notified late in the middle of that fiscal.”
These regulations are called Delhi Electricity Regulatory Commission (Renewable Purchase Obligation and Renewable Energy Certificate Framework Implementation) Regulations, 2012.
The discoms maintain that renewable power is very expensive and that Delhi has limited scope for generation of the same
