CleanTech/ Renewable Energy, Other, Wind

Wind bodies petition tribunal over non-enforcement of purchase obligations

According to reports, two associations of the wind industry — Indian Wind Energy Association and the Indian Wind Turbine Manufacturers Association — have jointly petitioned the Appellate Tribunal for Electricity against several State electricity regulatory commissions and the Central Electricity Regulatory Commission.

They have complained that the commissions have not been enforcing the ‘renewable purchase obligations.’

This comes in the wake of the very tepid demand for ‘renewable energy certificates,’ which the ‘obligated entities’ (electricity distribution companies and large consumers) are mandated to buy, unless they buy the (usually costlier) green power under the ‘Renewable Purchase Obligations,’ prescribed under the Electricity Act, 2003.

Trading of renewable energy certificates happens on the last Wednesday of each month on one of the two power exchanges in India — IEXL or PXIL — where the sellers are companies that produce electricity from wind, solar, small hydel or co-generation plants, and the buyers are the ‘obligated entities.’

Now, the situation is that the sellers are left without buyers. According to the wind associations, the buyers are in breach of their obligations and the various State electricity regulatory commissions are doing nothing about it.

For instance, in January, 17.41 lakh non-solar and 3,559 solar RECs were offered for sale, but only 1.93 lakh and 2,308 were bought.

The petitioners aver that the ‘obligated entities’ are not discharging their obligations and the Commissions, which are supposed to enforce the RPO, have not been doing so.

“Such non-compliance is continuing with the silent approval of various State Commissions, at the cost of the renewable energy generators. The petitioners fear that such non-compliance, if permitted to go unchecked, may ultimately lead in the failure of the renewable energy certificate market,” the petition says.

Industry sources have told Business Line that the petition has been admitted.



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