Under the Electricity Act (2003), the governing legislature for the Indian power sector, State Electricity Regulatory Commissions (SERCs) are mandated to promote renewable energy (RE) through the setting of Renewable Purchase Obligations (RPOs). Under these policies, certain parties (obligated entities) are obligated to purchase a minimum share of their electricity from renewable energy sources. WeCompli India Pvt. Ltd. helps the Obligated entities in meeting their Renewable Purchase Obligation (RPO). The specific services offered by WeCompli India Pvt. Ltd. are as follows.

• Calculation of Renewable Purchase obligation.
• Dealing with the State Nodal Agency & State Load dispatch centre.
• Buying Renewable Energy Certificates from Power Exchange India Limited.

 

Penalty Mechanism:
If obligations are not met, the OE can be directed by the state regulator to create a fund, equivalent to the RPO shortfall at the forbearance price. Such funds could be used to purchase Renewable Energy Certificates (RECs) from this account. RPO targets are set on an annual basis and need to be met in the same year. There is a provision for carry-over of obligations to the next fiscal year in case of “genuine difficulty”, but this is not defined.

 

Options for Compliance:

Obligated Entities can meet their obligations in three ways: 1. Generating RE power for self consumption 2. Buying power from RE generator 3. Buying Renewable Energy Certificates (RECs) To meet RPO using Option 3, the OE can buy RECs on the Indian Energy Exchange (IEX) or Power Exchange India Limited (PXIL). To participate in trading, the OE needs to be registered with the exchange; in case, it is not registered, it can purchase RECs through traders who are registered on the exchange(s). There are two types of RECs: solar and non-solar and the Central Electricity Regulatory Commission (CERC) has set price bands within which RECs can be traded.

 

Floor and Forbearance Prices for RECs:

	Till 31st March 2012		From 1st April 2012 (Applicale till 31st March 2017)
	Non-solar	Solar	Non-solar	Solar
Forbearance Price(Rs./REC)	3,900	17,000	3,300	13,400
Floor Price (Rs./REC)	1,500	12,000	1,500	9,300
1 REC is equivalent of 1MWhr(1000KWhr)