SC order on RPO seen to boost clean energy sector

The Ministry of New and Renewable Energy today said the Supreme Court upholding renewable purchase obligation (RPO) will improve compliance and boost growth of the clean energy sector.
"The Supreme Court order is a positive development and will help in enhancing RPO compliance and further contribute to renewable energy growth in the country," the Ministry said in a press release.
The Supreme Court on May 13 in a case between Hindustan Zinc and Rajasthan Electricity Regulatory Commission on the applicability of RPO regulations had ruled that RPO on the captive consumer is justified.
The court ruling came against the backdrop of Article 51 A (g) that puts the onus on the citizen to protect natural environment and Article 21 that guarantees right to life.

The RPO, under which the regulatory commission in each state mandates a certain percentage of electricity to be from renewable sources or procurement of Renewable Energy Certificate (REC), mainly applies to power distribution companies (discoms), captive power plants (CPPs) and open access (OA) consumers.
In August 2012, the Rajasthan High Court had dismissed an appeal by Hindustan Zinc, Ambuja Cements, Grasim Industries, and 14 other companies that challenged RPO regulations laid down by the Rajasthan Electricity Regulatory Commission (RERC).
The key captive power plants and open access users had contended that RERC did not have the authority to pass the order on RPO and impose surcharge (penalty).