Torrent Power Ltd., based in Ahmedabad, has filed a petition with the Gujarat Electricity Regulatory Commission (GERC) asking for a revision in its Renewable Purchase Obligation (RPO) targets for the financial year 2023-24. The petition is made under Regulation 4.1 and 4.2 of the GERC (Procurement of Energy from Renewable Sources) Regulations, 2010.
As a distribution licensee for the Dahej SEZ area, Torrent Power is required to meet a minimum percentage of power procurement from renewable sources, including wind, solar, hydro, and other categories. The total RPO target for FY 2023-24 is 18.70%, which includes 8.40% for wind, 9.50% for solar, 0.05% for hydro, and 0.75% for other sources such as biomass and bagasse.
The company states it has made sincere efforts to fulfill these obligations through direct purchase of renewable energy and Renewable Energy Certificates (RECs). Despite this, Torrent Power has reported an overall shortfall of 69.12 million units (MUs) in meeting its RPO targets.
For hydro energy, the company has reported a surplus. It achieved 4.78% compliance, which is far above the required 0.05%. This was accomplished through the procurement of 38.11 MUs of hydro energy from the Power Exchange. Torrent Power explained that hydro capacity available in Gujarat is limited and mostly allocated to state-owned discoms. Moreover, no suppliers came forward to offer hydro power to the company during the year.
In the case of solar power, Torrent Power fell significantly short. It achieved only 1.67% compliance against a target of 9.50%. The company was receiving solar power from a 6 MW long-term Power Purchase Agreement and also utilized 2.33 MW from rooftop solar projects. However, a large 450 MW solar project, of which 15 MW was designated for Dahej, did not supply any power during FY 2023-24 due to force majeure conditions. This contributed to the shortfall.
For the non-solar category, Torrent Power managed a 3.70% compliance. This included power from a 10.50 MW wind project and 0.21 MUs of renewable energy attributes sourced from a Waste-to-Energy plant. A 15 MW Municipal Solid Waste (MSW) project that was expected to be commissioned in March 2021 was delayed and was actually commissioned on October 13, 2024, and thus did not contribute to the FY 2023-24 RPO.
The company emphasized that there has been no notable increase in installed capacity in the biomass, bagasse, and mini hydro segments, although the RPO targets in the “others” category have increased. Due to these issues, Torrent Power is seeking a revision of the target for the “others” category for the fiscal year.
The company has also proposed to adjust the surplus in the hydro RPO against the shortfall in non-solar RPO, which is allowed under Regulation 4.1. Torrent Power has underlined that all its actions were taken in good faith and that the circumstances were beyond its control. It has requested GERC to admit the petition, allow the revision of percentage targets, permit the RPO adjustment, and grant a hearing. The petition is supported by an affidavit sworn by Jignesh Langalia, Vice President of Torrent Power Ltd., dated December 2, 2024.
