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State of Chattisgarh - Section

Section 10 in Chhattisgarh State Electricity Regulatory Commission (Renewable Purchase Obligation and REC framework Implementation) Regulations, 2011

10. Non Availability of Renewable Energy Certificate.

- 10.1 In the event of non compliance of the RPO by distribution licensees by any of the modalities as specified above as per the orders of the Commission, from non-solar renewable energy plants or solar power plants in the State, the distribution licensee whose purchase of renewable energy is maximum during the year shall be compensated by other distribution licensees so that percentage of renewable energy consumption by all the distribution licensees functioning in the State become equal.Explanation. - for the purpose of this Regulation, the compensation shall mean the sharing of differential of average cost of RE power purchase and average cost of Non RE power purchase of distribution licensee, which is to be compensated for the year under consideration calculated as per following example. For the example the year under consideration for RPO has been taken as year 2010-11;
Name of the licensee Annual energy consumption of FY 10-11, MUs Applicable RPO to be met including solar &non solar for FY 10-11, MUs RE actual purchased during FY 10-11, MUs RPO actually met for year 2010-11 during FY2011-12, MUs
  A B = A * 5% C D
Licensee-A 15000 750 600 5
Licensee-B 700 35 4 7
Licensee-C 210 10.5 2 3
Total 15901 795.5 606 15
Name of the licensee Total actual RPO purchase for the FY 2010-11 atthe end of FY 2011-12, MUs % RPO of year 2010-11 met by end of year 2011-12 Eq. MUs for differential cost computation Shortfall of actual purchase of RE consideringactual average RPO. MUs
  E = C + D F = E/A G = A* % of (∑E/∑A) H = G - E
Licensee-A 605.0 4.0% 585.5 -19.5
Licensee B 11.0 1.6% 27.3 16.3
Licensee-C 5.0 2.4% 8.2 3.2
Total 621.0 3.9% 621.0  
Annual energy consumption by three licensees for the year 2010-11 is 15910 MUs (total of three licensees A. B & C) and total actual RE purchased by all the licensees for the year 2010-1 1 is 621 MUs i.e. together all the licensees have met 3.9% RPO in the State, where as RPO percentage target for the Year 2010-11 is 5%. Individually licensee-A, B & C could finally make RPO as 4%, 1.6% & 2.4% respectively for the year 2010-11 by all the modes of RE purchase as specified above, which is well below the RPO target.Though none of licensee could meet the RPO for the year 2010-11, it will be proper that licensee-A. which has procured more than average RPO purchased during the year, should be paid differential cost by other licensee(s) who met RPO lesser than average during the year (3.9%). The sharing obligation will be (-) 19.5 MUs for licensee-A. 16.3 MUs for licensee-B and 3.2 MUs for licensee-C, Licensee-B will pay to licensee-A equivalent to 16.3 MUs at the rate of differential of average cost of RE power purchase and average cost of Non RE power purchase by licensee-A for year under consideration i.e. 2010-11. Similarly licensee-C will pay for 3.2 MUs to licensee-A at the rate of differential of average cost of RE power purchase and average cost of Non RE power purchase by licensee-A for year under consideration i.e. 2010-11.Further if average cost of RE purchase for the year 2010-11 in respect of distribution licensee-A is Rs. 5.40 per unit and average cost of non RE purchase by distribution licensee-A is Rs. 3.90 per unit than differential cost will be Rs. 1.50 per unit (5.40-3.90). Licensee-B will pay to licensee-A Rs. 244.83 lakh (16.3 MU x 1.5 Rs./kWh). Similarly licensee-C will pay to licensee-A Rs. 47.95 Lakh (3.2 MU x 1.5 Rs./kWh). In case the average cost of RE purchase in respect to licensee-A is lesser than the average cost of non-RE purchase, then no compensation will be payable to licensee-A by licensee-B and licensee-C.The above payments will be made as per the directions of the Commission and will be considered in Annual Revenue Requirement of concerned licensee.