JSW Steel’s Dolvi Cogeneration Projects Exempted from RPO
Mercom India reported that the Appellate Tribunal for Electricity, in a recent order, ruled that JSW Steel be exempted from the Renewable Purchase Obligation compliance regarding its Dolvi unit in Maharashtra for the period between financial year 2010-11 and FY 2015-16, as long as the power generated from the cogeneration projects was more than the RPO target. The Tribunal also exempted the generator from meeting the RPO targets for the subsequent years as long as the power generated from the cogeneration projects was more than the RPO target.
JSW Steel had filed an appeal with the APTEL, challenging the earlier order passed by the Maharashtra Electricity Regulatory Commission, in which the Commission had rejected the power generator’s request seeking exemption from the applicable RPO regulations for FY 2010-11 to FY 2013-14 and subsequent years concerning its manufacturing unit located at Dolvi in Maharashtra.
JSW Steel is a manufacturer of steel and allied products in India and owns a steel manufacturing unit at Dolvi in Maharashtra. JSW Steel has two captive power projects at Dolvi, including a gas expansion turbine of 14 MW capacity (previously 6.5 MW) and a waste-gas-based cogeneration project of 53.5 MW capacity. In September 2013, JSW Steel had filed a petition before the Commission seeking to declare the electricity produced and consumed from its cogeneration projects of 6.5 MW and 53.5 MW would meet the corresponding RPO target of its units in Maharashtra. The company, in its submission, said that its project at Dolvi, being a cogeneration project, ought to have been treated at par with renewable sources of energy, even though the heat generated in the steel-making process was derived from fossil fuels.
Maharashtra Energy Development Agency submitted that JSW’s cogeneration project was a fossil-fuel-based project, which was not recognized as a source of renewable energy by the Ministry of New and Renewable Energy and could not be considered for the fulfillment of RPO.