It is reported that the central power regulator has made it mandatory for all power utilities to purchase 6% green power even though the country doesn’t have enough electricity generated through renewable energy sources.

What’s adding to the woes of the utilities is a hefty penalty that follows if they fail to procure green power.

In a notification the Central Electricity Regulatory Commission to ensure its compliance has made it clear that power companies need to buy a minimum 6% of their total installed capacity from renewable energy sources. These sources include solar, wind, mini and micro hydro projects along with electricity generated by using bagasse and biomass.

Each category has been given a separate weightage. For example for the Maharashtra state power distribution company it is necessary to buy 140 MW of solar power and 10 MW of electricity generated by mini and/ or micro hydro projects. Against this the state has just about 1 MW of solar electricity available whereas the electricity from mini/micro projects available is 1.5 MW.

A top official from the Union energy ministry said that the option given to power utilities in case of a failure to procure green electricity is to buy ‘Renewable Energy Certificates’. Designed on the lines of carbon credits these certificates can be bought from utilities that generate green power. To oversee the transactions CERC has designated certain agencies. He said that “This is nothing but a ploy to help certain players who have made huge investments in renewable energy.”

(Sourced from Business Standard)