The Central Energy Regulatory Commission (CERC) proposes to spread the renewable power purchase obligation of states staggered over one year and at specified intervals.
The proposal comes as a move to make renewable power trading on the exchanges more vibrant and gain volumes. Officials explained that states have to take five per cent of their entire annual power requirement from renewable resources, a mandatory obligation, called as renewable power purchase obligation (RPO).
States, they said, are seen usually buying power at the end of the financial year, which is why the first session of renewable energy trading (REC) in March witnessed 424 non-solar RECs traded at a clearing price of Rs 3,900 per REC. In contrast, the second trading session in April saw 150 RECs traded at a clearing price of Rs 1,500 per REC.
He further aid this was no way for any market to develop. “It is not only detrimental to the market and price discovery but also for the renewable energy generators who could not even recover cost this way.
Thus, the proposal envisages making the five per cent RPO staggered twice or four times annually. “It is proposed to make it mandatory for the states to meet a certain percentage of their entire five per cent RPO biannually or four times a year. Discussions are underway with various stakeholders right now,” said an official.
Besides, CERC has also decided to audit the price discovery mechanism being used at the country’s two power exchanges — Indian Energy Exchange and Power Exchange of India.
