MPSEZ Utilities Limited (MUL), an electricity distribution licensee in Gujarat, has approached the Gujarat Electricity Regulatory Commission (GERC) seeking a revision of its Renewable Purchase Obligation (RPO) target for the financial year 2024-25. The company has requested the Commission to reduce its target after achieving only 15.39 percent renewable energy compliance against the prescribed target of 29.91 percent under the GERC Renewable Purchase Obligation Regulations, 2025.
In its petition, MUL stated that the shortfall was not due to any lack of effort but resulted from factors beyond its control. According to the utility, the biggest reason for missing the target was the delay in commissioning a 1,070 MW Wind-Solar Hybrid project being developed through the Solar Energy Corporation of India (SECI). The project was expected to begin commercial operations by January 11, 2025, but experienced significant delays because of slow tariff adoption by regulatory authorities and grid connectivity issues involving the Central Transmission Utility of India Limited (CTUIL).
MUL said these delays prevented the project from supplying renewable electricity as planned during the financial year. As a result, the company estimated that it lost around 631 million units (MUs) of clean energy generation, which significantly affected its ability to meet the required renewable energy target.
The utility also pointed to lower-than-expected generation from another renewable energy project. Under a long-term agreement with Adani Renewable Energy (KA) Limited, a 12 MW wind power project was expected to generate 45.23 MUs of electricity. However, the project produced only 37 MUs during the year, further increasing the gap between the required and achieved RPO levels.
Apart from these project-related issues, MUL informed the Commission that renewable energy options such as biomass and mini-hydro power remained largely unavailable in Gujarat. According to state data, there have been almost no new capacity additions in these sectors over the past five years. As a result, the company received no supply offers from these renewable sources, limiting its options for meeting the RPO requirement.
The company also argued that the timing of the revised regulations created an additional challenge. MUL noted that the GERC RPO Regulations, 2025, introducing higher renewable energy targets, were officially notified only in August 2025, after the financial year 2024-25 had already ended. It stated that this left no practical opportunity to modify its power procurement plans to meet the revised targets.
Despite these difficulties, MUL said it made several efforts to increase renewable energy procurement. The company purchased additional wind and solar power through power exchanges, utilized renewable energy attributes from consumer rooftop solar installations under state policies, and included electricity generated from municipal solid waste projects. Through these measures, it achieved a wind RPO of 8.46 percent, a solar RPO of 6.66 percent, and an ‘other’ renewable RPO of 0.27 percent. Referring to Regulation 4(9) of the GERC framework, MUL stated that the Commission has the authority to reduce or revise RPO targets when a distribution licensee faces genuine supply shortages or circumstances beyond its control. The company has requested GERC to consider these exceptional circumstances and revise its Renewable Purchase Obligation target for 2024-25 to match its achieved compliance level of 15.39 percent.
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