Arunachal Pradesh Drafts Amendment to Renewable Purchase Obligation Regulations to Boost Clean Energy

The Arunachal Pradesh State Electricity Regulatory Commission (APSERC) has issued a draft notification for the Third Amendment to the Renewable Purchase Obligation (RPO) and its Compliance Regulations, 2025, following the Ministry of Power’s notification dated October 20, 2023.

This amendment outlines the minimum share of consumption of renewable energy from non-fossil sources that designated consumers, including electricity distribution licensees, open access consumers, and captive users, must meet. These shares vary for different types of renewable sources and consumer categories, applying to electricity consumed both from distribution licensees and from other sources.

The amendment applies across the entire state of Arunachal Pradesh and will come into effect upon publication in the state’s official Gazette. The regulation revises Regulation 4 of the Principal Regulation and the earlier 2016 amendment, specifying a renewable energy consumption trajectory for the fiscal years 2024-25 through 2029-30.

The targets cover wind renewable energy, hydro renewable energy, distributed renewable energy, and other renewable energy sources. Notably, the distributed renewable energy component for Arunachal Pradesh is set at half the national figure, with the remaining share included in other renewable energy categories to keep the total renewable energy target consistent with the Ministry of Power’s directives.

Wind energy obligations must be fulfilled through power generated from Wind Power Projects commissioned after March 31, 2024. Similarly, the hydro energy component is to be met by energy from Hydro Power Projects, including Pump Storage and Small Hydro Projects commissioned after the same date. This component may also include free power supplied to the state or the distribution company from these newer hydro projects.

Distributed renewable energy obligations are to be met by energy generated from renewable projects below 10 MW, covering all government-notified solar configurations such as net metering and behind-the-meter installations. Compliance with distributed renewable energy is generally measured in kilowatt-hour units, and in cases where actual generation data is unavailable, capacity can be converted to estimated energy generation using a fixed multiplier.

The ‘other renewable energy’ category includes power from all renewable projects not covered in wind, hydro, or distributed energy components, including projects commissioned before April 1, 2024. The amendment allows for flexibility, permitting any shortfall in wind energy obligations to be met with excess hydro energy, and vice versa. Excess energy consumption under wind or hydro components can also be counted toward the other renewable energy component. Moreover, excess consumption in other renewable sources can compensate for shortfalls in wind or hydro energy obligations.

Designated consumers who are open access users or have captive power plants must meet the total renewable energy target regardless of the specific non-fossil fuel source. Obligations may be fulfilled directly through renewable energy consumption or via Renewable Energy Certificates, in accordance with the Central Electricity Regulatory Commission’s 2022 regulations. Failure to meet the specified targets will be treated as non-compliance, attracting penalties as per the Electricity Act, 2003.

APSERC has reaffirmed the Arunachal Pradesh Energy Development Agency (APEDA) as the designated State Agency responsible for accrediting and recommending renewable energy projects for registration, as well as monitoring RPO compliance within the state. APEDA is required to submit quarterly compliance reports to the Commission. Additionally, the Bureau of Energy Efficiency will maintain data on renewable energy utilization by designated consumers and report to the Central Government.

The renewable energy consumption trajectory established in this amendment will remain effective through the fiscal year 2029-30. Any future changes or new notifications to the RPO trajectory will align with directives issued by the Ministry of Power.