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The Gujarat Electricity Regulatory Commission (GERC) has issued a draft notification outlining its regulations for the procurement of energy from renewable sources for the year 2024. These regulations are a revision of previous rules, adapting to recent developments in the energy sector, especially concerning renewable energy and its consumption.
The primary focus of these regulations is to establish a structured approach to Renewable Power Purchase Obligations (RPPO). This requirement mandates that specific entities, including power distributors and consumers of non-renewable energy sources, fulfill a percentage of their energy consumption from renewable sources. These obligations are designed to promote the use of renewable energy like wind, hydro, and solar power, aligning with the country’s broader goals of reducing reliance on fossil fuels and promoting sustainability.
The regulations specify the percentage of energy that should come from different types of renewable sources over the next few years, gradually increasing each year. For instance, in the fiscal year 2024-25, 29.91% of the total energy consumed should come from renewable sources, including wind, hydro, and distributed renewable energy systems. This percentage increases annually, reaching 43.33% by the fiscal year 2029-30. The focus is not just on the amount of renewable energy but also on its sources, ensuring that energy generation from distributed, small-scale renewable projects is prioritized.
An important feature of the new regulations is the inclusion of storage as part of the energy procurement obligations. The rules state that by 2024-25, 1% of the energy consumed should be stored energy, which will rise to 3.5% by 2029-30. Storage plays a crucial role in managing renewable energy supply, especially when generation from sources like wind and solar fluctuates due to weather conditions.
The regulations also provide flexibility for obligated entities. If there is a shortfall in achieving the renewable energy targets in a particular category, excess energy consumption from another category can be used to offset the deficit. This flexibility allows entities to adjust their energy procurement strategies without being penalized for not meeting exact targets in specific categories.
Furthermore, the regulations emphasize compliance monitoring and penalties for non-compliance. Entities that fail to meet their RPPOs will face penalties, which will be deposited into a fund. This fund will be utilized for further investments in renewable energy infrastructure and transmission. The penalties are calculated based on the shortfall in renewable energy consumption, ensuring that there is a financial incentive for compliance.
The regulations also allow the use of Renewable Energy Certificates (REC), which are tradable certificates representing the generation of renewable energy. These certificates enable obligated entities to meet their RPPO by purchasing them, adding flexibility in fulfilling their obligations. The new rules ensure that any renewable energy consumed beyond the obligated amount can count toward compliance for future obligations or be traded in the form of certificates.
The draft regulations introduced by the Gujarat Electricity Regulatory Commission for 2024 lay a robust foundation for promoting the use of renewable energy in the state. By setting clear targets and offering mechanisms for compliance, the regulations encourage a transition towards cleaner energy while supporting the infrastructure required for large-scale adoption of renewable sources. |
