Punjab State Electricity Regulatory Commission (Renewable Purchase Obligation and its Compliance) Regulation, 2022 notified; provisions slated to gain effect from 1st April, 2023

The Punjab State Electricity Regulatory Commission has notified the Punjab State Electricity Regulatory Commission (Renewable Purchase Obligation and its Compliance) Regulation, 2022 (“Regulation”) in supersession of the Punjab State Electricity Regulatory Commission (Renewable Purchase Obligation and its Compliance) Regulation, 2011. The Regulations will gain effect from 1st April, 2023.

 Key Highlights:

 Definitions:

“Obligated Entity” means the entities mandated, under clause (e) of sub- section (1) of section 86 of the Act, to fulfill the Renewable Purchase Obligation, which includes distribution licensee, open access consumer and captive user,

 ‘captive user’ refers to any person who owns a grid-connected Captive Generating Plant based on conventional fuel with installed capacity of 1 MW and above, or such other capacity as may be specified by the Commission from time to time, and consumes electricity generated from such Plant for his own use.

And the “open access consumer” refers to any person having a contract demand of 1 MW and above, or such other capacity as may be specified by the Commission from time to time, and who consumes electricity procured from conventional fuel-based generation through open access.

“Renewable Energy Source” means renewable energy sources MNRE [i.e., Ministry of New and Renewable Energy] such as solar, wind, biomass/biogasse, municipal solid waste and other such sources.

“Renewable Purchase Obligation (RPO)” means the requirement specified by the Commission under clause (e) of subsection (1) of Section 86 of the Act [i.e., Electricity Act, 2003], for the obligated entity to purchase electricity from renewable energy sources.

1. The Regulations prescribed the year-wise RPO targets which are to be met by the obligated entities :

2. The Regulation specifies the acceptable methods of procuring renewable energy by the obligated entities which are :

• Own / Captive Generation
• Through Open Access
• By requisition from distribution licensee, subject to certain conditions.
• By purchasing green hydrogen or green ammonia.
• By purchasing certificates in accordance with the applicable regulations.
• Any other sources, as may be determined by the Central Government.

3. The Regulations has prescribed an obligation on the part of obligated entities regarding the submission of the details of consumption of electricity and the compliance towards the fulfillment of RPO on a quarterly / yearly basis to the State Agency, as per the Schedule and in the manner prescribed by the State Agency from time to time. Further, it has also been stated that a late fee of Rs. 1000 per day will be imposed in case of any delay in submission of such data.

Source: Punjab State Electricity Regulatory Commission