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HIMACHAL PRADESH ELECTRICITY REGULATORY COMMISSION SHIMLA

NOTIFICATION

Shimla, the 6th August, 2011

No. HPERC/438.—WHEREAS regulation 4 of Himachal Pradesh Electricity Regulatory

Commission (Renewable Power Purchase Obligation and its Compliance) Regulations, 2010,

specifies the quantum of Renewable Power Purchase Obligations (RPPO), for FY 2010-11 to FY

2012-13 for Non-Solar and Solar energy, for the distribution licensee as well as Captive and Open

Access users/consumers;

AND WHEREAS the distribution licensee has expressed difficulty in fulfillment of Solar

RPPO, as the distribution licensee had entered into MOU with Himachal Pradesh Power

Corporation Ltd. (HPPCL) to procure 3 MW of Solar energy, under Jawahar Lal Nehru National

Solar Mission, but the final allotment of these projects could not be made in favour of the Himachal

Pradesh Power Corporation Ltd and, therefore, projects could not be initiated;

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AND WHEREAS the distribution licensee, though, through private developer has initiated

the process of identification of suitable sites for Solar projects in its own hydro generating stations,

sub-stations and other land sites owned by the distribution licensee, yet installation of these Solar

projects is likely to take some time; more so because the Commission in its MYT Order for FY

2011-12 to FY 2013-14 has directed the distribution licensee to follow the bidding process to allot

Solar generating plants;

AND WHEREAS the Govt. of Himachal Pradesh is yet to finalise the State Solar Policy

and, therefore, the distribution licensee has no Policy framework to meet the Solar RPPO of 0.1%

for FY 11-12 as specified in the said regulations;

AND WHEREAS as per the estimates of MYT Order for FY 11-12 to FY 13-14, the

consumption is increasing and, therefore, with the distinct possibilities of many of IPPs opting for

REC mechanism, distribution licensee may barely meet the RPPO in the coming years;

AND WHEREAS the National Action Plan for Climate Change (NAPCC) has set a target

of 5% renewable energy purchase for FY 2009-10 with an increase of 1% per annum for next 10

years, thereby envisaging 15% energy purchase from renewable sources by 2020. As per National

Tariff Policy the target for Solar RPPO is .25% by FY 2013 and which shall go upto 3% by 2022;

AND WHEREAS as per the target set in by NAPCC the distribution licensee is required to

have minimum RPPO of 7% and 8% for FY 2011-12 and FY 2012-13 respectively;

AND WHEREAS a long term trajectory of RPPO is always desirable to promote

investment in renewables and market stability by providing the regulatory certainty;

AND WHEREAS in view of the above, it has become necessary to amend the existing

RPPO regulations and also to specify the long term RPPO trajectory upto 2022;

NOW, THEREFORE, in exercise of the power conferred by subsection (1) of section 181,

read with sub-section (1) of section 62, section 66, clauses (a), (b) and (e) of section 86 and clause

(zi) of sub-section (2) of section 181 of the Electricity Act, 2003 (36 of 2003), and all other powers

enabling it in this behalf, the Himachal Pradesh Electricity Regulatory Commission proposes to

amend the Himachal Pradesh Electricity Regulatory Commission (Renewable Power Purchase

Obligation and its Compliance) Regulations,2010, published in the Rajpatra, Himachal Pradesh,

dated 29th May, 2010 and draft of the proposed amendment, as required by sub-section (3) of

section 181 of the said Act, read with rule 3 of the Electricity (Procedure for Previous Publication)

Rules 2005, is hereby published for the information of all the persons likely to be affected thereby;

and notice is hereby given that the said draft amendment will be taken into consideration after the

expiry of thirty days from the date of its publication in the Rajpatra, Himachal Pradesh, together

with any objections or suggestions which may within the aforesaid period be received in respect

thereto.

The objections or suggestions in this behalf should be addressed to the Secretary, Himachal

Pradesh Electricity Regulatory Commission, Keonthal Commercial Complex, Khalini, Shimla-

171002.

DRAFT REGULATIONS

Short title and commencement.—(1) These regulations shall be called the Himachal

Pradesh Electricity Regulatory Commission (Renewable Power Purchase Obligation and its

Compliance) (First Amendment) Regulations, 2011.

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(2) These regulations shall come into force from the date of their publication in the

Rajpatra, Himachal Pradesh.

Amendment of Regulation 4.—In regulation 4 of the Himachal Pradesh Electricity

Regulatory Commission ((Renewable Power Purchase Obligation and its Compliance) Regulations,

2011, hereinafter called the said regulations,-

(i)

for sub-regulation(1), the following sub regulation(1) shall be substituted, namely.-

“(1) As specified in the Table below,-

(a) the distribution licensee shall purchase electricity (in kWh) from renewable

sources, at a minimum percentage of the total consumption including

transmission and distribution losses, within area of the distribution

licensee, during a year; and

(b) the Captive and Open Access User(s)/Consumer(s), shall purchase

electricity (in kWh) from renewable sources, at a minimum percentage of

his total consumption during a year;

Table-Minimum percentage for Power Purchase Obligation

Minimum Quantum of Purchase (in %*) from renewable sources(in terms of

energy in kWh) of total consumption.

Year

Total RPPO %age.

Non –Solar RPPO

%age

Solar RPPO %age

2011-12

11.01

11.00

0.01

2012-13

11.25

11.00

0.25

2013-14

10.25

10.00

0.25

2014-15

10.25

10.00

0.25

2015-16

11.25

11.00

0.25

2016-17

12.25

12.00

0.25

2017-18

13.5

13.00

0.50

2018-19

14.75

14.00

0.75

2019-20

16.0

15.00

1.00

2020-21

17.5

15.5

2.00

2021-22

19.00

16.00

3.00

* The estimated Minimum Quantum of Purchase (in MU(s) from renewable sources is given

in Annexure-I to these regulations.

Provided that the solar power purchase obligation shall be fulfilled from the generation

based on solar sources only:

Provided further that such obligation to purchase renewable energy shall not include the

power purchased at pooled cost as specified in Central Electricity Regulatory Commission (Terms

and Conditions of Renewable Energy Certificate for Renewable Energy Generation) Regulations,

2010, but shall be inclusive of -

(i)

purchases from generating stations based on renewable energy sources,

(ii) purchases from any other distribution licensee, which would arise from renewable

sources,

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(iii) the energy generated from its own renewable sources, if any, by the obligated entity;

Provided further that the power purchases under the power purchase agreements for the

purchase of renewable energy sources already entered into by the distribution licensees shall

continue to be made till their present validity, even if the total purchases under such

agreements exceeds the percentage as specified hereinbefore”; and

(ii) in sub-regulation (2), for the words “for a year as per”, the words “specified under”

shall be substituted.

(iii) the sub-regulation(3) shall be omitted.

Addition of Annexure-I.- At the end of the said regulations following Annexure-1,

shall be added, namely:-

Annexure-I

Estimated RPPO (in MUs) from renewable sources

Financial year

Years

Total Energy

Requirement

in MU

including

T&D Losses

Non-Solar

Energy

Requirement

in MU

Solar Energy

Requirement

in MU

Total

Renewable

Energy

Requirement

in MU

FY 12

2011-12

8244

906.84

0.82

907.66

FY 13

2012-13

8748

962.28

21.87

984.15

FY 14

2013-14

9168

916.80

22.92

939.72

FY 15

2014-15

9353

935.30

23.38

958.68

FY 16

2015-16

99313

1090.43

24.78

1115.21

FY 17

2016-17

10506

1260.72

26.27

1286.99

FY 18

2017-18

11128

1446.64

55.64

1502.28

FY 19

2018-19

11787

1650.18

88.40

1738.58

FY 20

2019-20

12482

1872.30

124.82

1997.12

FY 21

2020-21

13217

2048.64

264.34

2312.98

FY 22

2021-22

13994

2239.04

419.82

2658.86

By the order of the Commission,

Secretary.

________

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