BHUBANESWAR: In an order that is bound to have far-reaching impact on captive generation plants (CGPs) with co-generating units in the state, the Appellate Tribunal for Electricity (ATE) has said captive power consumers are obligated to purchase renewable energy to the level fixed by the Odisha Electricity Regulatory Commission (OERC).
Co-generation of power through fossil fuel cannot be utilised for meeting renewable purchase obligation (RPO), the Tribunal said in its February 20, 2024 order.
Dismissing the appeal of Tata Steel against the February 1, 2023 order of OERC declining to treat its power consumption from 323 MW captive generating unit (including 258 MW of co-generation plant) at Meramundali in Dhenkanal district as RPO compliance, a two-member bench of ATE comprising chairperson Justice Ramesh Ranganathan and technical member Sandesh Kumar Sharma said, electricity generated from fossil fuel-based co-generation plants is not generation from non-conventional sources of energy or renewable sources of energy.
“RPO obligations can, therefore, be fastened on captive power consumers. Such RPO obligations, to procure and consume power from renewable sources of energy, can neither be adjusted nor set-off against the quantum of power consumed from co-generation plants based on fossil fuel,” said the order.
The Tribunal further said that Odisha Electricity Regulatory Commission (Procurement of Energy from Renewable Sources and its Compliance) Regulations, 2021 are in accordance with the National Tariff Policy made and amended by the Centre under section 3 of Electricity Act. “As the OERC has chosen to be guided by the Tariff Policy, in making the RPO Regulations which are in the nature of subordinate legislation, its validity cannot be examined in appellate proceedings under section 111 of the Electricity Act,” it said.
“The state commission has been conferred the power by section 86(1)(e) of Electricity Act, to frame regulations specifying a minimum percentage of renewable energy to be purchased, from out of the total consumption of electricity by captive power consumers, as such regulations promote generation of power from renewable sources protect the environment.”
