The draft regulation rolled out by the DERC calls for all stakeholders, including electricity distribution licensees, to adhere to the RPO target.
The Delhi Electricity Regulatory Commission (DERC) recently released draft regulations for renewable purchase obligation (RPO). According to the official announcement made on Monday, all power distributors and other stakeholders are required to purchase 29.91% of energy from renewable sources.
As per the draft regulation, DERC has specified the RPO target of 29.91% for 2024-25 and 30.01% for 2025-26. The draft further mandates all involved parties, including distribution companies (discoms), to meet designated RPO targets as a proportion of their overall annual energy consumption.
The official statement of DERC also states that all entities obligated to comply will be fined 10 paise per unit for non-compliance with the RPO targets.
The ‘Draft Delhi Electricity Regulatory Commission (Renewable Purchase Obligation and Renewable Energy Certificate Framework Implementation) Regulations 2024′ is open for public comment until July 2.
According to the DERC officials’ statements in the Economic Times, the decentralised Renewable Purchase Obligation (RPO) targets align with the Ministry of Power’s directive issued under Section 14 of the Energy Conservation Act, 2001, on October 20, 2023.
These targets can be fulfilled through the installation of solar rooftop systems with net metering capabilities. This system will allow entities to generate renewable energy locally and offset their consumption obligations.
The RPOs consist of wind, hydro, solar and other sources of renewable energy.
The officials further said that consumers eligible for green power have various options available to them. This includes purchasing through power exchanges via open access, requesting supply from distribution companies (discoms), sourcing from captive power plants, buying renewable energy certificates, generating their own renewable energy, and more.
Decentralised RPO aims to conserve energy locally, aligning with India’s renewable goals. It focuses on reducing the burden on traditional power. The flexibility provided by DERC also seeks to empower consumers with eco-friendly choices for diverse renewable energy adoption.
