Renewable Energy Regulatory Framework

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Renewable Energy Regulatory Framework

The development of grid interactive renewable power took off with the coming into force of the Electricity Act 2003 (EA 2003), which, among other things, provides for regulatory interventions for promotion of renewable energy (RE) sources through a) determination of tariff; b) specifying renewable purchase obligation (RPO); c) facilitating grid connectivity; and d) promotion of development of market.

The National Tariff Policy (NTP) 2006 requires the State Electricity Regulatory Commissions (SERCs) to fix a minimum percentage of Renewable Purchase Obligation (RPO) from such sources taking into account availability of such resources in the region and its impact on retail tariffs and procurement by distribution companies at preferential tariffs determined by the SERCs. NTP has further elaborated on the role of regulatory commission; mechanism for promoting renewable energy and timeframe for implementation, etc. The policy was amended in January 2011 to prescribe solar-specific RPO be increased from a minimum of 0.25 per cent in 2012 to 3 per cent by 2022. Further, the National Action Plan on Climate Change (NAPCC) suggests increasing the share of renewable energy in the total energy mix at-least up to 15 percent by 2020.

In view of the aforesaid provisions, regulatory framework for renewable power is evolving and all major States, Central Electricity Regulatory Commission (CERC), Central Electricity Authority (CEA) etc are declaring, revising, and modifying renewable power regulatory framework such as RE policy, RPOs, Feed in Tariffs (FiTs), Renewable Energy Certificate (REC) mechanism, grid connectivity and forecasting provisions etc. on a regular basis.

Ministry of New & Renewable Energy has initiated an exercise to track the evolving renewable power regulatory framework and develop a repository of information in a consolidated manner. This exercise is expected to help understand the dynamic nature of the renewable energy regulations and related issues and also create a platform to share information on pertinent issues.

The information is planned in the following two broad categories; 

 The consolidated data comprises of State-wise and CERC level regulations. Utmost care has been taken to compile the information, however, in case of any discrepancy or further clarification the primary source only may be treated as authentic.

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