Karnataka has now entered the regime of Renewable Energy Certificate (REC) System where the grid-connected green energy generators can trade these certificates with Escoms of the States which do not have adequate renewable energy potential to comply with Renewable Purchase Obligation (RPO), which stipulates the minimum quantum of green energy to be bought by them annually.
To create awareness in this regard among green energy generators, a workshop was held in Bangalore on Thursday by the Karnataka Renewable Energy Development Limited in association with Karnataka Power Transmission Corporation Limited.
Speaking to mediapersons on the sidelines of the workshop, Karnataka Electricity Regulatory Commission (KERC) Chairman M.R. Sreenivasa Murthy explained that all the States have been mandated to buy renewable energy that is equivalent of 10 per cent of their total power procurement in a bid to reduce emission of green house gases.
But procurement of green energy in States such as Karnataka had already touched 12 per cent of total procurement of power as they had abundant potential to tap this energy while there were States which hardly had any potential in green energy.
This mechanism identifies two components in renewable energy —Electricity component and environment or green component. The generators could trade the green component to other states while the electricity component would be sold to the States with which they have signed a power purchase agreement.
Explaining the mechanism involved in getting REC for the excess power, he said such generators' power would be procured at a rate which is the average of total cost of procurement of all sources of power by the utility. The average procurement cost is presently Rs. 2.73 in Karnataka, he said. The generator would make additional profit by selling the certificate towards the green component to other States at a market price, he said.
Mr. Murthy welcomed the allocation of subsidy to the tune of Rs. 4,600 crore to the power sector in the State Budget presented by Chief Minister D.V. Sadananda Gowda on Wednesday. He said about 4,156 crore was the subsidy for the coming financial year while the remaining amount was related to the backlog of subsidies towards earlier years. Effort to commence the process of clearing backlog of earlier subsidies is a god development, he said.
KPTCL Managing Director Ravi Kumar said the total outlay of Rs. 10,289 crore made to the power sector in the State Budget included equity component of different government-held entities in power sector. This would help them to borrow more and invest more on various projects, he noted.
He said the summer power supply situation so far was satisfactory in the State. “We have faced problems only when the generation units face technical snags. Otherwise, the supply situation has not been affected.”