The renewable purchase obligation (RPO) set by Uttar Pradesh means power distribution companies and other large electricity consumers in the state are likely to have to source at least 32% of their energy from renewables in 2021-22.
The Uttar Pradesh Electricity Regulatory Commission has set 2% as its solar RPO for this fiscal year with the figure set to rise to 5% by 2023-2024.
That requirement comes on top of the national RPO targets set by the Ministry of Power last week.
The Uttar Pradesh electric commission set a solar RPO of 2% which will rise to 3% in the new financial year, 4% in 2022-23 and 5% in 2023-24. The RPO for other, non-solar renewable energy generation will be 6% in this fiscal year and 8% in 2020-21.
The state regulatory body also mandated companies file an annual return with details about their purchase of renewable energy by April 30 of the following financial year.
The Ministry of Power last week set the national solar RPO for this year at 7.25%, with a figure of 8.75% for next year and 10.5% in 2021-22. This year, the national non-solar RPO has been set at 10.25% and will be pegged at that level until 2021-22, when it will inch up to 10.5%.
The National Tariff Policy notified in 2016 mandated an 8% solar RPO for every state in order to achieve the target of 100 GW of installed solar generation capacity across India by 2022. The guidelines notified an RPO trajectory for three years – from 2016-17 to the last fiscal year – which was to be applied uniformly across all states and union territories.
Last year, the Ministry of New and Renewable Energy created a national Renewable Purchase Obligation Compliance unit. The body was established to act as a bridge between states, the Central Electricity Regulatory Commission and state level counterparts with the specific purpose of meeting previously poorly-enforced RPO targets.
Though the ministry has been aggressively pushing solar RPO compliance, 24 of India’s 29 states and seven union territories have been unable to meet even 60% of their RPO targets. Only five states – Karnataka, Himachal Pradesh, Andhra Pradesh, Nagaland and Meghalaya – plus the union territory of the Andaman and Nicobar Islands, have met their targets.
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