MPSEZ Utilities Limited has filed a petition with the Gujarat Electricity Regulatory Commission regarding its Renewable Purchase Obligation compliance for the financial year 2023-24. The company has requested a revision of the targets due to various uncontrollable factors that affected its ability to meet the required renewable energy procurement levels. MPSEZ Utilities Limited is a company incorporated under the Companies Act, 1956, and is obligated to follow the GERC’s renewable energy regulations.
The GERC, under the Electricity Act, 2003, introduced regulations in 2010 to ensure the procurement of energy from renewable sources, promoting the use of clean energy across Gujarat. These regulations were amended in 2014, 2018, and 2022. For the financial year 2023-24, obligated entities were required to meet a total Renewable Purchase Obligation of 18.70%. This included 8.40% from wind energy, 9.50% from solar energy, and 0.80% from other renewable sources like biomass, bagasse, and small hydro.
According to the petition, MPSEZ Utilities Limited achieved an RPO of only 10.53% for the year, leading to a shortfall of 55.49 Million Units. The company managed to meet 8.74% of its non-solar RPO against the target of 9.20%, and only 1.79% of its solar RPO against the target of 9.50%.
The company attributes this shortfall to several challenges. One major reason was the reduced generation of renewable energy. MPSEZ Utilities Limited had expected 84.42 Million Units of energy from its Wind Turbine Generators based on earlier approvals. However, actual generation was lower by around 27.47 Million Units. This was due to a general reduction in wind generation by 16.09 Million Units and the delayed commissioning of a 5.2 MW wind project, resulting in an additional loss of 11.38 Million Units. Furthermore, solar generation at the consumer end was also lower than expected by 1.73 Million Units. In total, the shortfall in wind and solar generation came to 29.20 Million Units.
Another reason for the shortfall was the lack of new capacity additions in other renewable sources. Gujarat has not seen much growth in biomass and mini-hydro capacities in the last five years, and MPSEZ Utilities Limited did not receive any offers to procure power from these sources during the year.
The company also attempted to purchase renewable energy from the Indian Energy Exchange. However, the approved procurement rate was ₹3.68 per unit, while the actual market price averaged around ₹5.81 per unit, making it financially impractical to buy at such high rates.
Despite these challenges, the company emphasized that it made sincere efforts to meet its RPO. It has long-term agreements with wind energy providers and used solar attributes from consumer rooftop installations. It also procured solar power through exchanges and has entered into a Wind-Solar Hybrid agreement with SECI for 1,070 MW to help meet future RPO needs.
In light of these factors, MPSEZ Utilities Limited has requested the Commission to revise the RPO targets for the year and allow the shortfall to be carried forward, as permitted under clause 4.2 of the GERC regulations. The petition has been registered as Petition No. 2497/2025, and public notices have been issued inviting stakeholders to submit their views within 30 days.
