HERC revises its RPO policy

The Haryana Electricity Regulatory Commission (HERC) has revised its renewable purchase obligation (RPO) policy to include wind energy and move solar energy to the ‘other RPO’ category. The modifications are made in accordance with the Ministry of Power’s (MoP) regulations. The new RPO trajectory will take effect starting with 2024 because the RPO targets for the financial year 2023 are based on the existing trajectory mentioned in the HERC’s 2021 renewable regulations.

According to the regulator, wind energy RPOs will be met by energy generated by wind projects completed after March 31, 2022. The excess wind energy consumed above 7 per cent of total energy consumption from wind projects completed before March 31, 2022 may also satisfy the RPO. Furthermore, any shortfall in meeting other RPOs in a year can be made up with excess energy consumed by wind power projects that are completed after March 31, 2022. This wind power must be greater than the wind RPO for the year. 

According to the regulator, the hydropower purchase obligation (HPO) could only be met by energy generated by large hydro projects, including pumped hydro projects, that were completed after March 8, 2019. The other RPO obligation can also be met by using excess energy from eligible projects, including PHP that were completed after March 8, 2019, in excess of the HPO for that year, or by combining the two. Any shortfall in achieving wind RPO in a given year can be made up for by consuming more energy from hydropower plants than the HPO for that year, and vice versa. The hydropower imported from outside of India will not be considered for HPO compliance.

The Energy Storage Obligation (ESO) will be estimated in energy terms as a percentage of total electricity consumption and considered fulfilled only when at least 85 per cent of total energy stored in the energy storage system is procured annually from renewable energy sources. The ESO will be reviewed on a regular basis.