Odisha Electricity Regulatory Commission (OERC) Seeks Feedback on Draft Renewable Energy Procurement Regulations 2024

Introduction

The Odisha Electricity Regulatory Commission (OERC) has taken a significant step towards enhancing the state’s renewable energy landscape by inviting public feedback on its newly drafted regulations titled “Odisha Electricity Regulatory Commission (Procurement of Energy from Renewable Sources and its Compliance) Regulations, 2024.”[1] These regulations are a key part of Odisha’s ongoing efforts to promote the use of renewable energy sources and ensure compliance with the state’s Renewable Purchase Obligations (RPO).

The draft regulations have been framed in accordance with various provisions of the Electricity Act, 2003, particularly Section 61, 66, 86(1)(e), and 181. They aim to streamline the procurement of energy from renewable sources by distribution licensees, conventional captive users, and open access customers within the state. The regulations are intended to replace the existing 2021 regulations, reflecting the latest advancements and priorities in renewable energy procurement.

Key Provisions of the Draft Regulations

The draft regulations cover a broad range of topics critical to the procurement and compliance of renewable energy sources:

1. Renewable Purchase Obligations (RPOs):
   • Obligated entities, including distribution licensees, captive users, and open access consumers, are required to meet their RPO targets through various methods, such as own generation from renewable sources, procuring renewable energy through open access, and purchasing Renewable Energy Certificates (RECs).
   • The regulations outline the minimum share of electricity consumption from renewable sources, setting targets that gradually increase each year from 2024 to 2030. For instance, the total RPO target for 2024-25 is 29.91%, which includes contributions from wind, hydro, distributed, and other renewable energy sources.
2. Energy Storage Obligations:
   • The regulations introduce an Energy Storage Obligation (ESO), which mandates that a certain percentage of total energy consumed must be stored using energy derived from renewable sources. This obligation starts at 1.5% for the financial year 2024-25 and increases to 4.0% by 2029-30.
3. Hybrid Renewable Energy Projects:
   • The regulations recognize the role of hybrid renewable energy projects, which combine multiple renewable sources (e.g., wind and solar) to enhance efficiency and balance energy supply. Obligated entities can meet their RPO by sourcing energy from these hybrid projects.
4. Incorporation of Green Hydrogen and Ammonia:
   • A novel aspect of the draft regulations is the inclusion of Green Hydrogen (GH) and Green Ammonia (GA) in the RPO framework. Obligated entities can meet their RPO by purchasing GH or GA, with the equivalent renewable energy considered based on their production from renewable sources.
5. Flexibility in Meeting RPO Targets:
   • The draft regulations provide flexibility in meeting RPO targets by allowing the substitution of shortfalls in wind energy with excess hydro energy and vice versa. Similarly, excess energy from one category of renewable energy can be used to fulfill shortfalls in another.
6. Role of GRIDCO:
   • GRIDCO, the designated state entity responsible for power purchase and bulk supply, plays a crucial role in the implementation of these regulations. It is tasked with estimating the quantum of renewable energy to be procured each year and ensuring that distribution licensees meet their RPO targets.

Call for Public Feedback

The OERC has emphasized the importance of public participation in finalizing these regulations. Stakeholders, including consumers, energy producers, and industry experts, are invited to submit their suggestions, opinions, and objections to the commission by September 13, 2024. This feedback will be carefully considered, and any necessary modifications will be made before the regulations are finalized and published in the official gazette.

Implications for Odisha’s Renewable Energy Future

The proposed regulations mark a significant milestone in Odisha’s renewable energy journey. By setting ambitious targets for renewable energy procurement and introducing innovative measures like energy storage obligations and the inclusion of green hydrogen, the OERC aims to accelerate the state’s transition to a sustainable and low-carbon energy future.

The successful implementation of these regulations will require coordinated efforts from all stakeholders, including government agencies, energy producers, and consumers. As Odisha continues to embrace renewable energy, these regulations will play a pivotal role in shaping the state’s energy landscape, contributing to national and global efforts to combat climate change.

Conclusion

The Odisha Electricity Regulatory Commission’s draft Renewable Energy Procurement Regulations, 2024, represent a forward-thinking approach to energy governance. By encouraging public input, the OERC ensures that these regulations are not only comprehensive but also reflective of the diverse perspectives and needs of the state’s energy stakeholders. As the deadline for feedback approaches, it is crucial for all interested parties to engage with the process, helping to shape the future of renewable energy in Odisha.

[1] https://www.orierc.org/UploadData/LatestUpdates/f5ef5310-f86f-40ef-bdb8-50c4d9bed23d.pdf