Delhi regulator sets 9% renewables obligation for power suppliers

Oct 9, 2012 - The Delhi Electricity Regulatory Commission, the entity in charge of power in India’s second most populous metropolis, this month introduced a rule requiring a 9% renewables share in power supply, the Times of India said Saturday.

Under the renewable purchase obligation (RPO), which will be in place in the next five years, power distribution companies in Delhi will need to satisfy that amount in the financial year, starting in April 2013. For the period to end-March the companies have to source 3.40% of their power from green energy installations. The regulations include a solar component of 0.15%.

Times of India said that according to power distributors the RPO was too ambitious and would lead to higher power prices. The paper quoted Praveer Sinha, chief executive of Tata Power Delhi Distribution Ltd, as saying that the company would most probably need to contract green power coming from other states as project space in Delhi was limited. According to Sinha Tata Power Delhi’s last option would be renewable energy certificates (RECs).

Indian firms that produce green electricity but do not take advantage of the existing feed-in tariffs receive a REC per MWh generated. REC trading takes place on the last Wednesday of each month on the Power Exchange India Ltd (PXIL) and the Indian Energy Exchange.

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