Gedcol seeks regulatory approval for considering rooftop solar generation as RPO

In Oct 2012, the state govt had decided to set up solar lighting systems in all govt establishments

Green Energy Development Corporation Ltd (Gedcol), the nodal body appointed by state government to generate renewable energy, has sought regulatory approval for considering solar power generated by rooftop projects towards meeting target for mandatory purchasing of green energy known as renewable purchase obligation (RPO).

"The quantum of solar rooftop electricity generated and consumed by consumer, who is not defined as an obligated entity under the RPO Regulations, as well as the quantum of surplus solar power exported to the distribution utility's network, be allowed to qualify as deemed solar RPO for the distribution licensee," Sangramjit Nayak, additional secretary with Energy Department said in a letter to Odisha Electricity Regulatory Commission (OERC).

In October 2012, the state government had decided to set up solar lighting systems on rooftop of all government establishments, including offices, agencies, directorates and state PSUs situated in Bhubaneswar and Cuttack, in order to trim power bills.

To implement the project, the government created Gedcol, a subsidiary of Odisha Hydro Power Corporation (OHPC). In its recent application, the green power agency asked the OERC to be treated as a provider of RPO power as the status is currently enjoyed by Odisha Renewable Energy Development Agency (OREDA).

According to the National Tariff Policy, each state's electricity regulatory commission specifies a certain amount of renewable energy purchase by the state in a time-bound manner.Though state-run Gridco meets most requirement under RPO target due to abundant availability of hydro power, it has been consistently falling behind target towards purchase of solar power.

For the current fiscal, Gridco is scheduled to buy at least 68 MU (million unit) solar power, which has been calculated on the basis of 0.25 per cent of total estimated electricity buying requirement of the bulk supplier in the year.

However, the bulk power trader has estimated to buy 105 MU solar power this year citing large availability from solar rooftop project. In its estimate for current fiscal, the power trader expects to buy around 63 MU power from various rooftop solar projects executed by Odisha Renewable Energy Development Agency (OREDA) and 42 MU from NTPC solar power projects.

Last year, it could not meet its mandatory purchase target of 45 million unit solar energy though it was confident of meeting its target expecting supplies from NTPC projects. As of now, the state-run trader has availability of 28 MU solar power supply.

The rooftop solar energy project would cost around Rs 50 crore for installing equipment to generate 5 Mw power. The Gedcol will be providing the money from loan assistance financed by International Finance Corporation (IFC).