Purchase of Electricity Generated from Renewable Sources

Section 86(1) (e) of the Electricity Act, 2003 and Tariff Policy notified there under by the Central Government on 06.01.2005, inter alia, provides that the Appropriate Commission shall fix minimum percentage for purchase of electricity from renewable sources taking into account availability of such resources in the region and its impact on retail tariffs. The Act and Policy do not apply any restriction on procurement of power by an obligated entity in excess of the minimum Renewable Purchase Obligation (RPO) fixed by the Appropriate Commission.

As per the information made available by CERC some issues including the one highlighted by Gujarat Government regarding treatment of purchase of renewable energy more than RPO requirement have been raised by some stakeholders which can be addressed through amendment in the relevant Regulations. Amendment to the Regulations is a quasi-judicial process and the Commission takes a final view after following due process of law including public hearing.

Central Government does not procure electricity generated through non-conventional energy resources.

As per the provision of the Electricity Act and policies made thereunder promotion of generation of electricity from renewable sources and fixation of RPO and its review based on availability of resources in the region and its impact on retail tariff are functions of the Appropriate Commission.

The above information was given by Shri K.C.Venugopal, Minister of State for Power in Rajya Sabha today in a written reply.

UM/ska