Assam Mandates Increased Renewable Energy Consumption

Posted On - 7 January, 2025 • By - King Stubb & Kasiva

Introduction

The Assam Electricity Regulatory Commission (AERC) issued a draft notification outlining new Renewable Purchase Obligation (RPO) targets for the state.[1] This regulation aims to significantly increase the consumption of renewable energy sources by designated consumers in Assam, aligning with the national push towards a cleaner energy future.

Explanation (key points)

  • Increased Renewable Energy Targets: The notification sets specific and escalating targets for the consumption of various renewable energy categories. These include:
    • Wind Renewable Energy: Targets for wind energy will increase gradually from 0.67% in 2024-25 to 3.48% in 2029-30.
    • Hydro Renewable Energy: Hydro energy targets will also rise, starting at 0.38% in 2024-25 and reaching 1.33% in 2029-30.
    • Distributed Renewable Energy: This category, which includes solar installations of less than 10 MW capacity, has specific targets and guidelines for compliance.
    • Other Renewable Energy: This category encompasses all other renewable energy sources and has a significant share in the overall RPO targets.
  • Flexibility in Meeting Obligations: The notification provides flexibility for designated consumers to meet their RPO obligations. They can:
    • Directly Purchase Renewable Energy: Consumers can directly purchase renewable energy from renewable energy generators.
    • Acquire Renewable Energy Certificates (RECs): RECs represent the environmental attributes of renewable energy. Consumers can purchase RECs to fulfill their RPO obligations.
  • Specific Requirements for Certain Sources:
    • Wind Energy: The notification specifies that wind energy must be sourced from projects commissioned after March 31, 2024.
    • Hydro Energy: Hydro energy can be met through various sources, including hydro power projects commissioned after March 31, 2024, free power received from such projects, and even hydro projects located outside India with Central Government approval on a case-to-case basis.
    • Distributed Renewable Energy: Detailed guidelines are provided for meeting distributed renewable energy targets, including provisions for capacity-based calculations and specific configurations of solar installations.
  • Compliance and Monitoring:
    • The State Load Despatch Centre (SLDC) will continue to act as the nodal agency for monitoring compliance with RPO targets.
    • The Bureau of Energy Efficiency (BEE) will maintain data on compliance and submit reports to the Central Government.
    • Non-compliance with RPO targets will result in penalties as per the Electricity Act, 2003.

Conclusion

The Assam Electricity Regulatory Commission’s new RPO regulations represent a crucial step towards increasing the state’s reliance on renewable energy sources. By setting clear targets, providing flexibility in meeting obligations, and establishing a robust monitoring framework, these regulations will drive the transition to a cleaner and more sustainable energy future in Assam.

[1] https://aerc.gov.in/regulations/1733311808.pdf