Gujarat discoms miss RPO target, buy costlier solar power

Power distribution companies operating in the state failed to buy adequate wind power to fulfil their Renewable Purchase Obligation (RPO) target of last year while exceeding the target of costlier solar power. “GUVNL put an additional burden of Rs76.5 crore on its consumers by purchasing costlier solar power over wind power. Both GUVNL and Torrent Power were mandated to meet 10% of their total power requirement through renewable power sources, of which RPO for wind power was 8.25% and 1.75% for solar power. GUVNL purchased 82 Million Units (MUs) of solar power more than the RPO target, and Torrent 76 MUs more. To make up for the shortfall of wind power, they purchased additional solar power, putting burden of nearly Rs112 crore on power consumers,” energy and regulatory expert KK Bajaj, said in a letter to the Commission.

Power distribution companies operating in the state failed to buy adequate wind power to fulfil their Renewable Purchase Obligation (RPO) target of last year while exceeding the target of costlier solar power.

The Gujarat Urja Vikas Nigam Limited (GUVNL) and Torrent Power have filed petitions before the Gujarat Electricity Regulatory Commission (GERC) for approval of RPO of 2016-17.

“Both the utilities failed to meet the RPO target set by GERC. To make up for the shortfall of wind power, they purchased additional solar power, putting burden of nearly Rs112 crore on power consumers,” energy and regulatory expert KK Bajaj, said in a letter to the Commission.

Both GUVNL and Torrent Power were mandated to meet 10% of their total power requirement through renewable power sources, of which RPO for wind power was 8.25% and 1.75% for solar power. Both failed to meet the 10% RPO target.

Bajaj said that GUVNL sourced 6.73% power from wind projects, and 1.86% from solar projects. On similar lines, wind power accounted for 4.80% of Torrent’s total electricity supply, and solar energy 2.86%.

GUVNL purchased 82 Million Units (MUs) of solar power more than the RPO target, and Torrent 76 MUs more. According to Bajaj, there is a difference of Rs9.33 per unit in the price of solar and wind power.

“GUVNL put an additional burden of Rs76.5 crore on its consumers by purchasing costlier solar power over wind power. The amount is over Rs35 crore for consumers of Torrent Power,” he said.

Bajaj urged GERC against approving the petitions filed by the discoms.

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