The Delhi Electricity Regulatory Commission will strictly enforce renewable purchase obligation (RPO) and will send out the message ‘loud and clear’, said Krishna Saini, Chairman of the Commission.

Addressing a seminar on renewable energy policies, organised by the Confederation of Indian Industry – Southern Region, Saini said distribution companies have an obligation to procure a part of the power from renewable sources. This is a prerequisite for the success of the concept of renewable energy certificates (REC), he said.

Those States with low renewable energy generating potential can meet RPO norms by buying REC units. But if the RPO norms are not enforced, the whole system falls apart, Saini added.

Delhi has the potential for solar energy generation, but there is little option for other renewable sources such as wind. Even in solar power generation, only rooftop units are possible as land is at a premium, he said.

Wind energy

Ramesh Kymal, Chairman, Renewable Energy Council, CII-Godrej Green Business Centre, said the current feed-in tariffs for wind energy needs to be revised as in many States, the tariffs are not in tune with the capital costs for installation.

Access to financing remains a top concern among all the stakeholders. Innovative financing methods and mechanisms – including green bonds, interest subvention schemes, credit enhancement mechanisms must be introduced.

Bankability of power purchase agreements with utilities are a major concern as most utilities are in a bad financial health and there is inordinate delay in payments to the RE developers in many states.

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