MSEDCL filed petition to MERC for waiver of FY12-13 RPO

On 07^th Aug 2013, the Maharashtra State Electricity Distribution Company Limited (MSEDCL/ Mahavitaran) filed a petition with Maharashtra Electricity Regulatory Commission (MERC) for waiver of its Renewable Purchase Obligations (RPO) target for the financial year 2012-13.

MSEDCL has filed this petition soon after the MERC order dated 22^nd July 2013, stating mandatory compliance to RPO targets for four years starting from FY 2010-11 to FY 2013-14 cumulatively by 31^st March 2014 or face requisite fines that could be as high as Rs. 13.40/unit. (Read more here)

As per RPO regulations, obligated entities such as electricity distribution company (like MSEDCL), open access customers with total electricity demand of 1 MVA or more, etc  have to buy a certain percentage of their total electricity consumption from renewable energy sources.

MSEDCLs petition includes following points on the basis of MSDCL seeks waiver in RPO (The main prayers of the Petitioner);

1. The RE being infirm in nature, the RPO target may be considered as per the actual contracted RE capacity and not as per the actual units injected.

2. The surplus units while meeting the Non- solar RPO target for FY 2010-11 and FY 2011-12 of MSEDCL may be allowed to be considered and adjusted in meeting shortfall of the non-solar RPO for FY 2012.

3. The remaining shortfall be waived in the interest of the common consumers.

4. If MSEDCL is required to procure RECs for fulfilling the RPO target, it will lead to financial burden on common consumers of MSEDCL. Thus, MSEDCL may not be compelled to procure RECs.

5. MSEDCL has contracted more than sufficient quantum of RE power so as to meet the RPO target on the basis of CUF decided by MEDA and approved by MERC. In case, if penalty is levied for non compliance of RPO, the same may be recovered from the RE generators by MERC.

6. The Solar Power procured at APPC rate, as a promotional activity may be allowed to be considered for meeting the solar RPO target of MSEDCL.

7. Pass any other order as may be deemed fit in the interest of justice and in the interest of promoting Non Conventional Energy Sources, at the same time, protecting MSEDCL’s commercial interest and to save common consumers of MSEDCL from financial burden.

Similar case was reported in Gujarat in this year. Gujarat Urja Vikas Nigam Limited (GUVNL) too has filed a petition at Gujarat Energy Regulatory Commission (GERC) for the waiver of RPO. Surprisingly, the petition of GUVNL has approved by GERC on 8^th August 2013.  GERC approved GUVNL’s petition on the basis of insufficient availability of renewable power in the market.

If MERC allows RPO waiver to MSEDCL (similar to GERC), it would impact Renewable Energy Certificates (REC) sell overall.

Read original Petition of MSEDCL in the matter Compliance of Renewable Purchase Obligation at MERC website.

You might be interested in reading Renewable Purchase Obligation for the State of Goa and UTs

Image credit: Maximilian Dorrbecker