Renewable Energy

The Central Electricity Regulatory Commission (CERC) has already asked state counterparts to notify Renewable Energy Certificate (REC) regulations in order for utilities to meet their renewable purchase obligation (RPO).

The REC mechanism is expected to be an effective tool for meeting RPO and to some extent this tool will also address the problem of renewable energy potential being specific to certain states and regions. States have been allotted different renewable energy purchase obligations because of differences in potential.  

“Some of the SERCs (state electricity regulatory commissions) haven’t specified RPO guidelines so far primarily because of three reasons,” said a renewable energy analyst, who did not wish to be identified. “Firstly, yes, there is relatively lower potential in some states and the SERCs need to ensure that the RPO trajectory specified by them is achievable. Secondly, the SERCs need to assess the impact of the RPO on the retail tariffs. Thirdly, the delay is also due to the REC mechanism, which is in the final stage of implementation.”