TNERC proposes new RE purchase obligations rules with more flexibility

CHENNAI: The Tamil Nadu Electricity Regulatory Commission (TNERC) has released a draft set of rules that will give users more options and flexibility in how they meet renewable purchase obligations (RPO) targets.

The proposed rules apply to power distribution companies, large industries with captive power plants, and other consumers who buy electricity through open access. They are required by law to buy a portion of their power from renewable sources like wind, solar and hydro.

According to the draft, Tamil Nadu's renewable energy obligation - the minimum amount of renewable power to be used - will rise each year, going from 29.91% in 2024-25 to 43.33% in 2029-30.

A key feature of the amendment is the introduction of greater flexibility in meeting RPO targets. Obligated entities - including distribution licensees, captive power producers and open access consumers - will be permitted to compensate for shortfalls in one category (such as wind or hydro) using surplus procurement from another. Excess procurement in these categories can also be counted under the "other renewable energy" component.

For example, if a company uses more wind power than required, it can use the extra quantity to make up for a shortfall in hydro power. The same applies the other way around.

Small solar power systems, like rooftop panels under 10 megawatts, will have their power output estimated using a standard formula if actual data is not available. This will help make it easier for users to report their solar energy use.

Companies can also buy Renewable Energy Certificates (RECs) to meet their renewable energy targets. These certificates will serve as proof that the company has paid for green power.

Free electricity received from certain hydro power projects - including some located outside India with central government approval - can also count toward the required renewable energy use.

The Tamil Nadu Green Energy Corporation Ltd (TNGECL) will check if companies are following the rules. It will send reports to the TNERC every three months. If a company does not meet its renewable energy target, it could face penalties under the Energy Conservation Act.

The TNERC clarified that the amendment reflects updated national policy directions and the Central Electricity Authority's resource adequacy assessments for Tamil Nadu. It replaces earlier guidance, including provisions that had been applicable to captive users and other designated consumers.

The commission is asking people and companies to send in their suggestions before the June 5 deadline. The public also has time until June 5 to send in their comments before these new rules come into effect.