Renewable Energy Compliance in Gujarat: Progress and Challenges in Meeting RPO Targets

MPSEZ Utilities Limited, also known as MUL, is a power supplier in Gujarat. They have tried to meet the Renewable Power Purchase Obligation (RPO) set by the Gujarat Electricity Regulatory Commission (GERC). These regulations mandate that a certain percentage of power should come from renewable sources such as wind, solar, and others.

For the 2022-23 fiscal year, RPO targets have been set to ensure that 17% of total energy procured comes from renewable sources. This target includes 8.25% from wind energy, 8.00% from solar energy and 0.75% from other sources such as biomass and small hydroelectric plants.

MUL has reported RPO compliance for fiscal year 2022-23, where it achieved an overall RPO of 12.38% as against the mandatory 17%. Specifically, it achieved 9.16% for non-solar RPO and 3.21% for solar RPO. This resulted in a shortfall of 18.53 MU (million units) in the overall RPO implementation this year.

To meet its non-solar RPO requirements, MUL entered into long-term power purchase agreements with wind turbine generators and settled non-solar attributes allocated by Gujarat Urja Vikas Nigam Limited (GUVNL) under its Waste to Energy Policy. This enabled it to achieve compliance of 9.16% against the required 9%.

For solar RPO, MUL leveraged renewable attributes from rooftop solar projects installed by consumers as per Gujarat Solar Policy 2015 and procured solar power through exchanges. Despite these efforts, they only managed to achieve 3.21% of the solar RPO compared to the required 8%.

The insufficient implementation of the general objective of the ROP was attributed to factors beyond the control of MUL. The report does not detail specific challenges, but they often include project delays, regulatory hurdles and market conditions affecting the availability and cost of renewable energy.

GERC has set targets for the RPO to promote the use of renewable energy and reduce dependence on fossil fuels. These rules have evolved with amendments in 2014, 2018 and 2022 to adjust the targets and extend the compliance period. The third amendment in 2022 has set the targets for the period from FY 2022-23 to FY 2024-25.

The MUL compliance status for FY2022-2023 reflects both their efforts and the ongoing challenges of transitioning to renewable energy. While progress has been made, shortcomings indicate the need for further efforts and possibly further support and adjustments to the regulatory framework to achieve the desired results.

Overall, the report highlights MUL’s commitment to renewable energy mandates and the practical difficulties encountered during this transition. It highlights the importance of continuously improving and adapting regulatory policies to support energy suppliers in achieving these key environmental and sustainability goals.

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