DERC Approves Interim Relief For Waste-To-Energy Plants Under Green Energy Open Access Rules

Summary

The Delhi Electricity Regulatory Commission (DERC) issued a common order on June 25, 2024, addressing two petitions (Petition No. 54/2023 and Petition No. 13/2024) filed by East Delhi Waste Processing Company Ltd. (EDWPCL) and Timarpur Okhla Waste Management Company Ltd. (TOWMCL). [1]The petitions sought the adoption and implementation of the Electricity (Promoting Renewable Energy through Green Energy Open Access) Rules, 2022 (GEOA Rules) promulgated by the Government of India. The GEOA Rules aim to promote renewable energy generation and consumption, including energy from waste-to-energy (WtE) plants. The petitioners specifically requested interim measures to implement the GEOA Rules until the DERC formulated its regulations. The DERC, after considering the petitions and hearing the parties involved, granted interim relief in line with the GEOA Rules. This relief included allowing consumers with a load of 100 kW or above to access green energy open access and exempting them from cross-subsidy surcharges and additional surcharges on power purchased from WtE plants. The interim relief would remain in effect until the DERC notified its regulations for Green Energy Open Access.

Case Timeline

• June 6, 2022: The Ministry of Power, Government of India, notifies the Electricity (Promoting Renewable Energy through Green Energy Open Access) Rules, 2022 (GEOA Rules).
• 2023: EDWPCL files Petition No. 54/2023, and TOWMCL files Petition No. 13/2024 with the DERC, seeking the adoption and implementation of the GEOA Rules.
• January 29, 2024: The DERC hears Petition No. 54/2023 and allows EDWPCL officials to interact with DERC officers regarding the issues raised in the petition.
• February 21, 2024: A meeting is held between EDWPCL representatives and DERC officials to discuss the regulatory and financial challenges faced by EDWPCL in operating its WtE plant.
• May 7, 2024: EDWPCL submits additional information to the DERC, including data on power generation, plant load factor, and costs incurred.
• June 25, 2024: The DERC issues a common order disposing of both petitions and granting interim relief in line with the GEOA Rules.

Issues Raised

The main issues raised in the petitions were:

• The adoption and implementation of the GEOA Rules by the DERC.
• The grant of interim relief to WtE plants under the GEOA Rules, including:
  • Allowing consumers with a load of 100 kW or above to access green energy open access.
  • Exempting open access consumers from cross-subsidy surcharges and additional surcharges on power purchased from WtE plants.
  • Allowing consumers to procure renewable energy through open access beyond the applicable Renewable Purchase Obligation (RPO) levels.

Appellant’s Arguments

• The petitioners argued that the GEOA Rules are beneficial and should be implemented to promote renewable energy generation and consumption.
• They highlighted the financial and regulatory challenges faced by WtE plants and emphasized the need for interim relief under the GEOA Rules.
• They also pointed out that several other states had either adopted or were in the process of adopting the GEOA Rules.

Respondent’s Arguments

• The DERC acknowledged the GEOA Rules and initiated aligning its regulations with them.
• The DERC considered the petitioners’ submissions and the challenges faced by WtE plants.

Order

The DERC granted interim relief to the petitioners in line with the GEOA Rules, allowing consumers with a load of 100 kW or above to access green energy open access and exempting them from cross-subsidy surcharges and additional surcharges on power purchased from WtE plants. The interim relief would remain in effect until the DERC notified its regulations for Green Energy Open Access.

Analysis

The DERC’s decision to grant interim relief to the petitioners is a positive step towards promoting renewable energy generation and consumption in Delhi. By allowing consumers to access green energy open access and exempting them from certain charges, the DERC is incentivizing the use of renewable energy and supporting the growth of WtE plants. This decision also aligns with the broader national goal of promoting renewable energy and reducing carbon emissions. However, the interim relief is only a temporary measure, and the DERC needs to expedite formulating and notifying its regulations for Green Energy Open Access to provide a long-term regulatory framework for renewable energy in Delhi.

[1]https://www.derc.gov.in/sites/default/files/Order%20in%20Petition%20No.%2054_2023%20and%2013_2024%20-%2025.06.2024.pdf