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

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

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

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 the solar RPO, MUL harnessed renewable energy sources from rooftop solar projects installed by consumers as per the Gujarat Solar Policy 2015 and procured solar power through exchange. Despite these efforts, they only managed to meet 3.21% of the solar RPO compared to the required 8%.

The shortfall in achieving the overall RPO goal was attributed to factors beyond MUL’s control. Specific challenges were not detailed in the report, but such challenges often include delays in project completion, regulatory hurdles, and market conditions affecting the availability and cost of renewable energy.

GERC set RPO targets to promote the use of renewable energy and reduce dependence on fossil fuels. These regulations have evolved, with changes in 2014, 2018 and 2022, to align objectives and extend the compliance period. The Third Amendment of 2022 established goals for the period from fiscal year 2022-23 to fiscal year 2024-25.

MUL’s compliance status for fiscal year 2022-23 reflects both their efforts and the ongoing challenges in transitioning to renewable energy. While they have made progress, the shortfall indicates the need for continued efforts and perhaps further support and adjustments in the regulatory framework to achieve the desired results.

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

Related