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The Delhi Electricity Regulatory Commission (DERC) recently addressed the petitions filed by East Delhi Waste Processing Company Limited (EDWPCL) and Timarpur Okhla Waste Management Company Limited (TOWMCL). These companies sought the adoption and implementation of the Electricity (Promoting Renewable Energy through Green Energy Open Access) Rules 2022 (GEOA Rules) as promulgated by the Government of India on June 6, 2022. The primary goal of these petitions was to facilitate the promotion of renewable energy and ensure access to green energy through open-access provisions.
EDWPCL, operating a 12MW Waste to Energy (WtE) plant in Ghazipur, emphasized the need for regulatory alignment to ensure the project’s financial viability and sustainability. The company highlighted the unique nature of its operations, relying solely on revenue from electricity sales without any tipping fee. It stressed the importance of implementing the GEOA Rules to support its pioneering waste processing and energy generation efforts.
Similarly, TOWMCL, managing a WtE plant at Okhla, outlined its contributions to municipal solid waste management and green energy production. The company has processed over 7.7 million metric tons of waste and generated more than 1,800 million units of green energy. TOWMCL emphasized the dual benefits of its operations in waste management and renewable energy generation, underscoring the need for regulatory support to continue these efforts.
Both companies sought specific interim relief measures until DERC could finalize its own regulations to implement the GEOA Rules. These measures included allowing consumers with a 100kW load to avail open access, exempting WtE plants from cross-subsidy and additional surcharges, and enabling consumers to procure renewable energy beyond applicable Renewable Purchase Obligations (RPO).
The DERC, recognizing the GEOA Rules as beneficial subordinate legislation under the Electricity Act, 2003, initiated the process of aligning its regulations with these rules. The Commission acknowledged the significant benefits offered by the GEOA Rules, such as promoting green energy generation, reducing open access eligibility limits, and streamlining approval processes. The GEOA Rules aim to lower power costs for consumers and support India’s green energy initiatives in line with its Nationally Determined Contributions (NDC) targets for 2030.
In response to the petitions, the DERC held hearings and meetings with the petitioners, during which the regulatory and financial challenges faced by the WtE plants were discussed. The Commission reviewed data on power generation, costs, and surcharges provided by the petitioners, which highlighted the financial burdens imposed by existing open access regulations.
Acknowledging the petitioners’ concerns, the DERC approved interim relief measures aligned with the GEOA Rules. The Commission allowed consumers with a 100kW load to avail of green energy open access and exempted power purchased from WtE plants from cross-subsidy and additional surcharges. These interim measures will remain in effect until the DERC finalizes its regulations for green energy open access.
The DERC’s decision underscores its commitment to promoting renewable energy and supporting waste-to-energy initiatives. By aligning its regulations with the GEOA Rules, the Commission aims to provide a conducive environment for green energy projects, ensuring regulatory consistency and fostering sustainable development in the energy sector?. |
