GUJARAT URJA VIKAS NIGAM LIMITED Vs. UNION OF INDIA, THROUGH MINISTRY OF POWER, UNION OF INDIA, MINISTRY OF NEW AND RENEWABLE ENERGY SOURCES, POWER SYSTEM OPERATION COMPANY LTD. (POSOCO) AND STATE OF GUJARAT THROUGH ENERGY AND PETROCHEMICALS DEPT.

JUDGEMENT

(1.) THE petitioners, Gujarat Urja Vikas Nigam Limited and distribution licensees of Gujarat, namely Paschim Gujarat Vij Company Limited, Dakshin Gujarat Vij Company Limited, Uttar Gujarat Vij Company Limited and Madhya Gujarat Vij Company Limited have filed the present petition inter -alia for issuance of solar Renewable Energy Certificate (RECs) in respect of solar power purchased in excess of quantum of solar purchase obligation. The petitioners have submitted that the Electricity Act, 2003, National Tariff Policy and National Electricity Policy provide for preparation of renewable sources of energy. The Government of Gujarat considering the vast potential for growth of power took the initiative for development of solar power by notifying the Solar Power Policy, 2009. Government of India has also launched the Jawaharlal Nehru National Solar Mission which envisages an installed capacity of 20,000 MW by the end of the thirteenth Five Year Plan i.e. 2022. It has been submitted that Government of Gujarat has focused on the development of solar power generation in pursuance of the Mission of the Government of India and Solar Policy of the Government of Gujarat.

(2.) THE petitioners have submitted that subsequent to the notification of the Solar Power Policy by Government of Gujarat, a Suo -Motu proceeding was initiated by the Gujarat Electricity Regulatory Commission (GERC) through Case No. 2/2010 for procurement of power by the distribution licensees in the State of Gujarat from solar energy projects. GERC in its order dated 29.1.2010 decided the tariff terms and conditions (for a period ending 28.1.2012) for purchase of solar power by the distribution utilities in the State for fulfilling Renewable Purchase Obligation relate to solar power. Subsequently, GERC in its order dated 27.1.2012 has determined the tariff for purchase of power from Solar Power Projects for the control period from 29.1.2012 to 31.3.2015. Pursuant to the GERC order dated 29.1.2010, the petitioners have entered into Power Purchase Agreements for an aggregate capacity of 971.5 MW (946.5 MW of solar PV projects and 25 MW solar thermal projects) with total 88 project developers. As on the date of filing the application, aggregate solar capacity of 857 MW has been commissioned and has commenced injection of power into the grid.

(3.) THE petitioners have submitted that in terms of Regulation 5 of the Central Electricity Regulatory Commission (Terms and Conditions for recognition and issuance of Renewable Energy Certificate for Renewable energy Generation) Regulations, 2010 (REC Regulations), the eligibility for REC does not extend to the distribution licensees procuring solar power from the solar power developers at the promotional tariff for the quantum in excess of the Renewable Purchase Obligations of such distribution licensees specified by the State Commission.