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Regulation Summary
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  • Andhra Pradesh
  • Arunachal Pradesh
  • Assam
  • Bihar
  • Chhattisgarh
  • Delhi
  • Goa and UTs (except Delhi)
  • Gujarat
  • Haryana
  • Himachal Pradesh
  • Jammu & Kashmir and Ladakh
  • Jharkhand
  • Karnataka
  • Kerala
  • Madhya Pradesh
  • Maharashtra
  • Manipur & Mizoram
  • Meghalaya
  • Nagaland
  • Odisha
  • Punjab
  • Rajasthan
  • Sikkim
  • Tamil Nadu
  • Telangana
  • Tripura
  • Uttar Pradesh
  • Uttarakhand
  • West Bengal
  • 2024, February MERC Regulations Renewable Purchase Obligation, its Compliance and Implementation of Renewable Energy Certificate Framework (First Amendment)
  • 2019, December MERC Regulations Renewable Purchase Obligation, its Compliance and Implementation of Renewable Energy Certificate Framework
  • Andhra Pradesh
  • Arunachal Pradesh
  • Assam
  • Bihar
  • Chhattisgarh
  • Delhi
  • Goa and UTs (except Delhi)
  • Gujarat
  • Haryana
  • Himachal Pradesh
  • Jammu & Kashmir and Ladakh
  • Jharkhand
  • Karnataka
  • Kerala
  • Madhya Pradesh
  • Maharashtra
  • Manipur & Mizoram
  • Meghalaya
  • Nagaland
  • Odisha
  • Punjab
  • Rajasthan
  • Sikkim
  • Tamil Nadu
  • Telangana
  • Tripura
  • Uttar Pradesh
  • Uttarakhand
  • West Bengal
  • 2024, February MERC Regulations Renewable Purchase Obligation, its Compliance and Implementation of Renewable Energy Certificate Framework (First Amendment)
  • 2019, December MERC Regulations Renewable Purchase Obligation, its Compliance and Implementation of Renewable Energy Certificate Framework

 

  • All
  • General Net Consumption, Obligated Entities, etc.
  • Target Related Category of Targets, Target Revision, etc.
  • Data Reporting Details and Timelines for Obligated Entities and State Agency
  • Compliance Data Verification, Compliance Process
  • Carry Forward Provisions related to Shortfall / Surplus
  • Penalty Penalty, Regulatory Fund, etc.
  • Incentive Provisions related to Incentives
  • Misc Additional Sources Considered for RPO, etc.

 

Composite RPO

Clause: 7.5, 1st, 2nd and 3rd Proviso of 7.5
Distribution Licensee with peak demand less than 10 MW, a Captive User of a Captive Generating Plant with installed capacity of 1 MW and above, and Open Access Consumers with Contract Demand of 1 MW and above, shall be required to meet only their composite RPO target.

Clause: 7.5, 1st, 2nd and 3rd Proviso of 7.5
Distribution Licensee with peak demand less than 10 MW, a Captive User of a Captive Generating Plant with installed capacity of 1 MW and above, and Open Access Consumers with Contract Demand of 1 MW and above, shall be required to meet only their composite RPO target.

Definition of RE

Clause: 2.1(l), 4.1, 4.2, 1st Proviso of 4.3
The renewable sources such as mini hydro, micro hydro, small hydro, wind, Solar, biomass including bagasse, bio fuel cogeneration, urban or municipal waste and such other sources as are recognized or approved by MNRE; generation from off-grid RE sources setup by Distribution Licensee for meeting its universal service obligations, shall be considered as generation from eligible RE sources.

Clause: 2.1(l), 4.1, 4.2, 1st Proviso of 4.3
The renewable sources such as mini hydro, micro hydro, small hydro, wind, Solar, biomass including bagasse, bio fuel cogeneration, urban or municipal waste and such other sources as are recognized or approved by MNRE; generation from off-grid RE sources setup by Distribution Licensee for meeting its universal service obligations, shall be considered as generation from eligible RE sources.

Net Consumption

Clause: 1st Proviso of 3.1
Total consumption excluding large hydro

Clause: 1st Proviso of 3.1
Total consumption excluding large hydro

Obligated Entities

Clause: 5.1, 5.1(a), 5.2(b)
DISCOM, Open access consumer with Contract demand not less than 1 MW and electricity procured from conventional fossil fuel-based generation, owner of Grid connected Captive Generating Plant with installed capacity of 1 MW and above and consumes electricity generated from such plant for his own use.

Clause: 5.1, 5.1(a), 5.2(b)
DISCOM, Open access consumer with Contract demand not less than 1 MW and electricity procured from conventional fossil fuel-based generation, owner of Grid connected Captive Generating Plant with installed capacity of 1 MW and above and consumes electricity generated from such plant for his own use.

Operating Period

Clause: 6
The Operating Period of the RPO framework specified under these Regulations shall commence from 1 April, 2020 and shall be valid until 31 March, 2025.

Clause: 6
The Operating Period of the RPO framework specified under these Regulations shall commence from 1 April, 2020 and shall be valid until 31 March, 2025.

Fungibility

Clause: 7.3, 1st Proviso of 7.3, 1st Proviso of 8
Allowed for both solar and non-solar RE power (in case surplus energy is up to 15% of total RPO target); no fungibility allowed in case of REC procurement.

Clause: 7.3, 1st Proviso of 7.3, 1st Proviso of 8
Allowed for both solar and non-solar RE power (in case surplus energy is up to 15% of total RPO target); no fungibility allowed in case of REC procurement.

Category of Targets

Clause: 7.1
Solar, Non Solar

Clause: 7.1
Solar, Non Solar

Details of Provision for Data Reporting (Distribution Licensee)

Clause: 10.3, 10.4, 13.4, 13.2
Each Distribution Licensee shall furnish a summary statement of energy procured from different RE sources on a monthly basis to the State Agency. Within 60 days of close of the financial year, each Distribution Licensee shall submit a detailed statement of energy procurement from various RE sources, duly certified by the statutory auditor. Every Obligated Entity shall submit its electricity consumption and details of RE procured in a month within 30 days from end of the month on the Web based portal. Within one month of development of RPO Web-portal, all Obligated Entities shall register themselves on RPO Web-portal and submit requisite information monthly or for any other specified period to State Agency through this Web-portal only.

Clause: 10.3, 10.4, 13.4, 13.2
Each Distribution Licensee shall furnish a summary statement of energy procured from different RE sources on a monthly basis to the State Agency. Within 60 days of close of the financial year, each Distribution Licensee shall submit a detailed statement of energy procurement from various RE sources, duly certified by the statutory auditor. Every Obligated Entity shall submit its electricity consumption and details of RE procured in a month within 30 days from end of the month on the Web based portal. Within one month of development of RPO Web-portal, all Obligated Entities shall register themselves on RPO Web-portal and submit requisite information monthly or for any other specified period to State Agency through this Web-portal only.

Details of Provision for Data Reporting (Captive & Open Access User)

Clause: 11.1, 13.4, 13.2
Captive Users and Open Access Consumers shall submit details of their consumption of electricity and power purchase from RE sources towards fulfilment of their respective RPO on a monthly basis to the State Agency. Every Obligated Entity shall submit its electricity consumption and details of RE procured in a month within 30 days from end of the month on the Web based portal. Within one month of development of RPO Web-portal, all Obligated Entities shall register themselves on RPO Web-portal and submit requisite information monthly or for any other specified period to State Agency through this Web-portal only.

Clause: 11.1, 13.4, 13.2
Captive Users and Open Access Consumers shall submit details of their consumption of electricity and power purchase from RE sources towards fulfilment of their respective RPO on a monthly basis to the State Agency. Every Obligated Entity shall submit its electricity consumption and details of RE procured in a month within 30 days from end of the month on the Web based portal. Within one month of development of RPO Web-portal, all Obligated Entities shall register themselves on RPO Web-portal and submit requisite information monthly or for any other specified period to State Agency through this Web-portal only.

Details of Provision for Data Reporting (State Agency)

Clause: 9.3, 13.6, 13.9
The State Agency shall submit to the State Commission the quarterly status of compliance of RPO by the Obligated Entities in the stipulated format. Within 60 days from end of each quarter, State Agency shall publish RPO compliance status of Obligated Entities on RPO Web-portal. Subsequent to completion of verification process, State Agency shall publish RPO compliance of each of Obligated Entity on RPO Web-portal.

Clause: 9.3, 13.6, 13.9
The State Agency shall submit to the State Commission the quarterly status of compliance of RPO by the Obligated Entities in the stipulated format. Within 60 days from end of each quarter, State Agency shall publish RPO compliance status of Obligated Entities on RPO Web-portal. Subsequent to completion of verification process, State Agency shall publish RPO compliance of each of Obligated Entity on RPO Web-portal.

Provision for Data Reporting (Distribution Licensee)

Clause: 10.3, 10.4
Each Distribution Licensee shall furnish a summary statement of energy procured from different RE sources on a monthly basis to the State Agency. Within 60 days of close of the financial year, each Distribution Licensee shall submit a detailed statement of energy procurement from various RE sources, duly certified by the statutory auditor.

Clause: 10.3, 10.4
Each Distribution Licensee shall furnish a summary statement of energy procured from different RE sources on a monthly basis to the State Agency. Within 60 days of close of the financial year, each Distribution Licensee shall submit a detailed statement of energy procurement from various RE sources, duly certified by the statutory auditor.

Provision for Data Reporting (Captive & Open Access User)

Clause: 11.1
Captive Users and Open Access Consumers shall submit details of their consumption of electricity and power purchase from RE sources towards fulfilment of their respective RPO on a monthly basis to the State Agency.

Clause: 11.1
Captive Users and Open Access Consumers shall submit details of their consumption of electricity and power purchase from RE sources towards fulfilment of their respective RPO on a monthly basis to the State Agency.

Provision for Data Reporting (State Agency)

Clause: 9.3, 13.6, 13.9
The State Agency shall submit to the State Commission the quarterly status of compliance of RPO by the Obligated Entities in the stipulated format and may suggest appropriate measures as may be necessary for compliance of such Obligation. Within 60 days from end of each quarter, State Agency shall publish RPO compliance status of Obligated Entities on RPO Web-portal. Subsequent to completion of verification process, State Agency shall publish RPO compliance of each of Obligated Entity on RPO Web-portal.

Clause: 9.3, 13.6, 13.9
The State Agency shall submit to the State Commission the quarterly status of compliance of RPO by the Obligated Entities in the stipulated format and may suggest appropriate measures as may be necessary for compliance of such Obligation. Within 60 days from end of each quarter, State Agency shall publish RPO compliance status of Obligated Entities on RPO Web-portal. Subsequent to completion of verification process, State Agency shall publish RPO compliance of each of Obligated Entity on RPO Web-portal.

Timeline for Data Reporting (Distribution Licensee)

Clause: 10.3, 10.4, 13.4
Each Distribution Licensee shall furnish a summary statement of energy procured from different RE sources on a monthly basis to the State Agency. Within 60 days of close of the financial year, each Distribution Licensee shall submit a detailed statement of energy procurement from various RE sources, duly certified by the statutory auditor.

Clause: 10.3, 10.4, 13.4
Each Distribution Licensee shall furnish a summary statement of energy procured from different RE sources on a monthly basis to the State Agency. Within 60 days of close of the financial year, each Distribution Licensee shall submit a detailed statement of energy procurement from various RE sources, duly certified by the statutory auditor.

Timeline for Data Reporting (Captive & Open Access User)

Clause: 11.1, 13.4
Captive Users and Open Access Consumers shall submit details of their consumption of electricity and power purchase from RE sources towards fulfilment of their respective RPO on a monthly basis to the State Agency.

Clause: 11.1, 13.4
Captive Users and Open Access Consumers shall submit details of their consumption of electricity and power purchase from RE sources towards fulfilment of their respective RPO on a monthly basis to the State Agency.

Timeline for Data Reporting (State Agency)

Clause: 9.3, 13.6, 13.9
The State Agency shall submit to the State Commission the quarterly status of compliance of RPO by the Obligated Entities in the stipulated format and may suggest appropriate measures as may be necessary for compliance of such Obligation. Within 60 days from end of each quarter, State Agency shall publish RPO compliance status of Obligated Entities on RPO Web-portal. Subsequent to completion of verification process, State Agency shall publish RPO compliance of each of Obligated Entity on RPO Web-portal.

Clause: 9.3, 13.6, 13.9
The State Agency shall submit to the State Commission the quarterly status of compliance of RPO by the Obligated Entities in the stipulated format and may suggest appropriate measures as may be necessary for compliance of such Obligation. Within 60 days from end of each quarter, State Agency shall publish RPO compliance status of Obligated Entities on RPO Web-portal. Subsequent to completion of verification process, State Agency shall publish RPO compliance of each of Obligated Entity on RPO Web-portal.

RE Quantum for the Ensuing Year (Distribution Licensee)

Clause: 10.1, 10.2
Each Distribution Licensee shall indicate, with evidence, the estimated quantum of purchase from RE sources for each year of the Operating Period in its Multi Year Tariff Petition and shall accordingly enter into arrangements to meet its RPO.

Clause: 10.1, 10.2
Each Distribution Licensee shall indicate, with evidence, the estimated quantum of purchase from RE sources for each year of the Operating Period in its Multi Year Tariff Petition and shall accordingly enter into arrangements to meet its RPO.

Data Collection Provision

Clause: 9.2, 13.1
The State Agency shall devise an appropriate protocol for collection of information from various sources such as RE Generating Companies, Obligated Entities, MSLDC, etc., and compute the compliance of RPO targets by Obligated Entities. Within three months from notification of this Regulations, State Agency shall develop RPO Web-portal for RPO compliance monitoring and reporting.

Clause: 9.2, 13.1
The State Agency shall devise an appropriate protocol for collection of information from various sources such as RE Generating Companies, Obligated Entities, MSLDC, etc., and compute the compliance of RPO targets by Obligated Entities. Within three months from notification of this Regulations, State Agency shall develop RPO Web-portal for RPO compliance monitoring and reporting.

Penalty for Data Reporting

Clause: 13.8, 13.11
Any delay in performing activities (which include development of RPO portal by State agency; registration, data submission and document upload/ submission by obligated entities; registration of SLDC and CEI; data verification by SLDC and DISCOM; and publishing RPO compliance status by State agency) shall attract penalty of Rs. 100 per day of delay. Continuous or repeated default or delay in performing these activities or non-payment or non-submission of details shall be treated as non-compliance of the Regulations and may attract action under Section 142 of the EA.

Clause: 13.8, 13.11
Any delay in performing activities (which include development of RPO portal by State agency; registration, data submission and document upload/ submission by obligated entities; registration of SLDC and CEI; data verification by SLDC and DISCOM; and publishing RPO compliance status by State agency) shall attract penalty of Rs. 100 per day of delay. Continuous or repeated default or delay in performing these activities or non-payment or non-submission of details shall be treated as non-compliance of the Regulations and may attract action under Section 142 of the EA.

Compliance / Verification Process

Clause: 13.5
Details of electricity consumption of Distribution Licensee shall be verified by MSLDC and that of other Obligated Entities shall be verified by concerned Distribution Licensee or Electrical Inspector. Verification of the web based data shall be completed within 45 days from end of the month.

Clause: 13.5
Details of electricity consumption of Distribution Licensee shall be verified by MSLDC and that of other Obligated Entities shall be verified by concerned Distribution Licensee or Electrical Inspector. Verification of the web based data shall be completed within 45 days from end of the month.

Data Verification

Clause: 13.7
At the end of Financial Year, Obligated Entities shall upload/submit documentary evidence of procurement of RE or REC to State Agency through RPO Web-portal; such document shall be submitted within 45 days from end of Financial Year. The State Agency shall complete verification process within 60 days from end of Financial Year.

Clause: 13.7
At the end of Financial Year, Obligated Entities shall upload/submit documentary evidence of procurement of RE or REC to State Agency through RPO Web-portal; such document shall be submitted within 45 days from end of Financial Year. The State Agency shall complete verification process within 60 days from end of Financial Year.

Carry Forward / Surplus Provision

Clause: 7.4
Any variation in the fulfilment of RPO targets by the Obligated Entity within a band of +/- 5% of the applicable RPO target (in terms of Energy Units or MWh) for the respective years shall be allowed for carry forward to subsequent year under exceptional circumstances subject to detailed scrutiny.

Clause: 7.4
Any variation in the fulfilment of RPO targets by the Obligated Entity within a band of +/- 5% of the applicable RPO target (in terms of Energy Units or MWh) for the respective years shall be allowed for carry forward to subsequent year under exceptional circumstances subject to detailed scrutiny.

Carry Forward / Shortfall Provision

Clause: 7.4, 12.3, 1st, 2nd, 3rd and 4th Proviso of 12.3, 12.4
Any variation in the fulfilment of RPO targets by the Obligated Entity within a band of +/- 5% for the respective years shall be allowed for carry forward to subsequent year. Any shortfall in meeting the minimum percentage of RE as specified may be carried forward from FY 2020-21 and FY 2021-22 to FY 2022-23 and from FY 2023-24 to FY 2024-25 and Obligated Entity shall meet such shortfall on cumulative basis by 31 March 2023 and 31 March 2025, respectively. Any cumulative shortfall in RE procurement as on 31 March 2023 and/or 31 March 2025 shall not be carried forward for next year.

Clause: 7.4, 12.3, 1st, 2nd, 3rd and 4th Proviso of 12.3, 12.4
Any variation in the fulfilment of RPO targets by the Obligated Entity within a band of +/- 5% for the respective years shall be allowed for carry forward to subsequent year. Any shortfall in meeting the minimum percentage of RE as specified may be carried forward from FY 2020-21 and FY 2021-22 to FY 2022-23 and from FY 2023-24 to FY 2024-25 and Obligated Entity shall meet such shortfall on cumulative basis by 31 March 2023 and 31 March 2025, respectively. Any cumulative shortfall in RE procurement as on 31 March 2023 and/or 31 March 2025 shall not be carried forward for next year.

Penalty

Clause: 1st, 2nd, 3rd and 4th Proviso of 12.3, 12.4 , 12.5, 13.11
The Discom shall be subjected to reduction in ARR at a rate of Rs 0.10 per kWh and other Obligated Entities shall be subjected to penalty of Rs. 0.10 per kWh for cumulative shortfall in total RE procurement target for each year. Any cumulative shortfall in RE procurement as on 31 March 2023 and/or 31 March 2025 shall not be carried forward for next year and be adjusted by imposing reduction in ARR for Distribution Licensees and imposing penalty for other Obligated Entities, at rate of floor price of respective REC as on that date. Commission may reduce penalty if the Obligated entity is able to demonstrate that it has taken all the necessary measures to fulfil RPO including procurement of RECs. Non-payment of penalty or non-submission of required details by Obligated Entity shall be treated as non-compliance of Regulations and the Commission on suo motu or on the recommendation from the State Agency may initiate action against such Entity under Section 142 of the Act.

Clause: 1st, 2nd, 3rd and 4th Proviso of 12.3, 12.4 , 12.5, 13.11
The Discom shall be subjected to reduction in ARR at a rate of Rs 0.10 per kWh and other Obligated Entities shall be subjected to penalty of Rs. 0.10 per kWh for cumulative shortfall in total RE procurement target for each year. Any cumulative shortfall in RE procurement as on 31 March 2023 and/or 31 March 2025 shall not be carried forward for next year and be adjusted by imposing reduction in ARR for Distribution Licensees and imposing penalty for other Obligated Entities, at rate of floor price of respective REC as on that date. Commission may reduce penalty if the Obligated entity is able to demonstrate that it has taken all the necessary measures to fulfil RPO including procurement of RECs. Non-payment of penalty or non-submission of required details by Obligated Entity shall be treated as non-compliance of Regulations and the Commission on suo motu or on the recommendation from the State Agency may initiate action against such Entity under Section 142 of the Act.

Regulatory Fund

Clause: 12.5, 1st Proviso of 12.5
Penalties for other Obligated Entities shall be collected by the State Agency through RPO Web-portal; The State Agency shall maintain separate account in the name of RPO Fund for this purpose.

Clause: 12.5, 1st Proviso of 12.5
Penalties for other Obligated Entities shall be collected by the State Agency through RPO Web-portal; The State Agency shall maintain separate account in the name of RPO Fund for this purpose.

Regulatory Fund - Details

Clause: 2nd and 3rd Proviso of 12.5
The State Agency may utilise RPO Fund amount for meeting its expenses for creating and maintaining RPO Web-portal, and any surplus left thereafter shall be deposited in to the State Deviation Pool Account created as per MERC (Deviation Settlement Mechanism and Related Matters) Regulations, 2019 on quarterly basis. At the end of each Financial Year, State Agency shall submit certified details of all transaction under RPO Fund.

Clause: 2nd and 3rd Proviso of 12.5
The State Agency may utilise RPO Fund amount for meeting its expenses for creating and maintaining RPO Web-portal, and any surplus left thereafter shall be deposited in to the State Deviation Pool Account created as per MERC (Deviation Settlement Mechanism and Related Matters) Regulations, 2019 on quarterly basis. At the end of each Financial Year, State Agency shall submit certified details of all transaction under RPO Fund.

Penalty - Determination Process

Clause: 13.10
Based on RPO compliance status within 60 days from end of Financial Year, State Agency shall compute incentive or penalty to be levied to Obligated Entity using RPO Web-portal, the incentive or penalty shall be comminicated to DISCOM through RPO Web-portal for adjustment in Annual Revenue Requirement. The penalty payable by Other Obligated Entity shall be communicated through RPO Web-portal and shall be deposited within 15 days in RPO fund. The non-payment of penalty within 15 days shall attract delayed payment charges on simple interest basis at the one-year Marginal Cost of Funds-based Lending Rate (‘MCLR’) as declared by the State Bank of India applicable as on 1st of the respective month plus 350 basis points per annum on the penalty amount for the period of delay.

Clause: 13.10
Based on RPO compliance status within 60 days from end of Financial Year, State Agency shall compute incentive or penalty to be levied to Obligated Entity using RPO Web-portal, the incentive or penalty shall be comminicated to DISCOM through RPO Web-portal for adjustment in Annual Revenue Requirement. The penalty payable by Other Obligated Entity shall be communicated through RPO Web-portal and shall be deposited within 15 days in RPO fund. The non-payment of penalty within 15 days shall attract delayed payment charges on simple interest basis at the one-year Marginal Cost of Funds-based Lending Rate (‘MCLR’) as declared by the State Bank of India applicable as on 1st of the respective month plus 350 basis points per annum on the penalty amount for the period of delay.

Incentive

Clause: 12.2, 1st and 2nd Proviso of 12.2, 12.4
Distribution Licensee shall endeavour to achieve total RPO target notified by the Central Government and for doing so it will get incentive of Rs 0.25 per kWh for RE procured above the minimum percentage specified upto the percentage notified by the Central Government as under or as may be notified from time to time. Incentive will not be applicable if Distribution Licensee have not fulfilled Renewable Purchase Obligations on cumulative basis. RE procured during the year for meeting RPO of previous years shall be deducted while determining eligible RE quantum for incentives. Incentives and Penalties for Distribution Licensees shall be determined and approved/levied by the Commission in ARR determination process.

Clause: 12.2, 1st and 2nd Proviso of 12.2, 12.4
Distribution Licensee shall endeavour to achieve total RPO target notified by the Central Government and for doing so it will get incentive of Rs 0.25 per kWh for RE procured above the minimum percentage specified upto the percentage notified by the Central Government as under or as may be notified from time to time. Incentive will not be applicable if Distribution Licensee have not fulfilled Renewable Purchase Obligations on cumulative basis. RE procured during the year for meeting RPO of previous years shall be deducted while determining eligible RE quantum for incentives. Incentives and Penalties for Distribution Licensees shall be determined and approved/levied by the Commission in ARR determination process.

Incentive - Determination Process

Clause: 13.10
Based on RPO compliance status within 60 days from end of Financial Year, State Agency shall compute incentive or penalty to be levied to Obligated Entity using RPO Web-portal, the incentive or penalty shall be comminicated to DISCOM through RPO Web-portal for adjustment in Annual Revenue Requirement.

Clause: 13.10
Based on RPO compliance status within 60 days from end of Financial Year, State Agency shall compute incentive or penalty to be levied to Obligated Entity using RPO Web-portal, the incentive or penalty shall be comminicated to DISCOM through RPO Web-portal for adjustment in Annual Revenue Requirement.

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