IN THE MATTER OF

IN THE MATTER OF

I

-Vrs.-

5.I

6.7.8.9.

10.)1,1".LL. •

•

BEFORETHE ODISHA ELECTRICITYREGULA

BHUBANESWAR

•..

COMMISSION, '

Case No. -' 2014

•••

An application filed by Petitioner/ OREDA under Sec. 2 of the Electricity Act, 2003

for the non-compliance of OERC (Renewable and Co-

and its Compliance) Regulations, 2010 framed under

181 of the Electricity Act, 2003.

neration Purchase Obligation

61, 66, 86 (1) (e) and

AND

The Chief Executive, OREDA, 5-59, Mancheswar I ustrial Estate, Bhubaneswar-'-751010.

Petitioner

1. The Chairman-cum-Managing Director, GRIDCO, Ja h, Bhubaneswar-751022

2. Department of Energy, Govt. of Odisha

3. Office of the Chief Engineer (Project)- Cum-Chief cal Inspector (generation),

PO\.'JE'rHouse Square, Unit V, Odisha, Bhubaneswar-7 001

4. M::lnaging Director, Green Energy Development Cor n of Odisha Limited, OHPC

Corporate Office, OSPH & W Corporate Building, Jan th, Bhoinagar, Bhubaneswar-

751022

The Senior General Manager (PS), SLDC, Mancheswar ailway Colony, Bhubaneswar.

The CEO, CESlJ,2I1d Floor,mCOTowers, Bhubaneswar 751022

The Managing Director, WESCO, At/P.O. Burla, Dist. S mbalpur-768017

The Managing Director, SOUTHCO At/P.O. Courtpeta,

-:-he Managing Director, NESCO,At/P.O. Januganj, D'

/\artiSteel Ltd, Plot No. 1111B/41, Sector l1,C.D.A. B

N~C.Cement, Bargarh, Cement Nagar, At/Po Bardol Di

':H;.ti()r~ Ispat and Power Pvt. Ltd., HIG-32, BDA Col , Gangadhar Meher Marg,

mpur-760004

13.J,,:ydev Vihar, Bhubaneswar-13

I~dhunik Metaliks Ltd, 3rd floor, Annex. buildBhubaneswa~751022

IPICOL House, Janpath,

1

'~....~,.;.....:... .: .

I

31.

, 32.

33.34.

3~.

36.

37.

38.

39.

40.

41.

42.

•

14. Aryan Ispat& Power Pvt.Ltd., DGM (E & I) ViI/-B aloi, Tehsil- Rengali, Dist-

Sambalpur-768201

15. Bhaskar Ste~I&'rerro Alloy ltd. KK-44, Civil Twonship, url<ela, Odisha-769004

16. Bhusan Powel¢~ Steel, N-3/28, Navapalll, IRC Village, B ubaneswar-751015

17. BhusanSteel &Strips ltd. Post Kuspanga, Dist- Dhenka 1-759121

18. Silt Sewa Ballarpur Industries Ltd, 64 Forest Park, Bh neswar,Odisha-751009"

19. M!S Bindal Sponge Ltd, Sunakhani, Talcher-759100

20. Birla Tyres, 112A, Surya Nagar, Bhubaneswar~75l003

21. Deepak Steel &, Power ltd, Ispat Bhawan, Barbil, Keojha 758035

22. Yazdani Steel & Power ltd. (Formerly Dinabandhu el & Power ltd.) Yazdani

Steel & Power l td Nagar, Po- Arunodaya Market, Cutta 2

23. Easterrn Steel8~ Power Ltd. Lahandabud, Jharsuguda, Pi

24. FACOR, D.P. Nagar, P.O. Randia-756135, Dist. Bhadrak,

25. IHCO, Musadia, Paradeep, Jagatsinghpur-754142

27.

28.

!r-llFA.Ltd, Bomikhal, D.?CI "?:"Irh, Bhuo<1nesW;'lr.-1()

J. K. Paper, Plot No.1, Near Swosti Plaza, N 1, Nayapalli,

j.j,~dpl Stainless Ltd, Kalinga Nagar Industrial Campi

ubaneswar-751013

Front of MESCO, Post-

Danagari, Duburi-755026 Dist- Jajpur, Odisha

29. Jlndal.Steel f~ Power, Village- Nisha, SH-63, Chhendi

759130

30. IDCOl Kalinga Iron Works Ltd. Regd. Office & Works, P.O. Matkambeda-758036,

Road, Angul, Odisha-

Barbil, Keonjhar, Odisha

Maheswari lspat Ltd., 85, Surya Nagar, Bhubaneswar, 75

Maithan tspat Ltd. G.M. Co-ordination, HIG-17,B

Bhubaneswa~751013

MSP Metaliks {P) Ltd. Marakuta, Jharsuguda, Odisha-768

National Alluminium Company (Angul), NAlCO

Bhubaneswa~75l061

National Alluminium Company (Damanjodi), NAlCO Bhawan, Pll, Nayapalli,Bhubaneswar~751061

Jayadev Vihar,

wan, PIl, Nayapalli,

Nava Bharat Ventures Ltd.Kharagprasad Village, Dhenka

Narbheram Power & Steel Pvt. Ltd. (SCAW) 79, Surya N

Neelachallspat Nigam Ltd (NINl), Kalinga Nagar IndustriaBhubaneswar- 751003

Complex, Duburi-755026,Jajpur road

oel Cement, Rajgangpur (Odisha) Cement Works, Raj 770017 Odisha

Orissa Sponge Iron Ltd., Cattarjee International Centre, Jawahar Lal Nehru Road,Calcutta-7000?1

Orissa sponge Iron and Steel, Vill- lamloi, P:O. Garvene,

Paradeep Phosphate ltd, Bayan Bhawan, PT Jawaharlal N751001

ngpur, Odisha-7700l7

u Marg, Bhubaneswar-

2

I

43.

44.

45.- 46.

47.

48.49.

50.51.

52.

53.

54.

55.

56.

House Cuttack Road,

I

pattnaik Steels & Alloys Ltd., A/22, First Floor, Fa, '

8hubaneswa~751006Rana Sponge Ltd.HIG-31, Gangadharmeher marg, Bhuba swarRathi Steel 8.t Power Ltd, B-I07, Madhav Nil Apartment, Lewis Road,

Bhubaneswai:Ji4, - -Rourkela SteelPlant, Rourkela-769011, Odisha

Scan Steel ltd. Main Road, Rajgangpur, Sundargarh, -770017

Shri Mahavir i;erro Alloys Pvt. Ltd, Main Road Rajgangp ,Odisha-770031

5hY3i1~ Metalicl<s & Energy Ltd. (Formerly Shyam DRI Power Ltd.), A-17/10, Surya

Nagar, Bhubaneswar-751003SivlC Power Generation Pvt Ltd, 47, Madhusudan Nagar Bhubaneswar-751001

Sri Ganesh Metalicks 'Ltd. A-I, Znd Floor, Cammer I Complex, Civil TownshiP, '

Rourkela, Odi,sha-769004da Housing Board Colony,Tata Sponge lion Ltd. Gavatree Nivas, HfG, C-124, Bara

Bhuba n-eswar-75100:3Vedanta Allumtnurn Ltd., (Bhukhamunda, Jharsuguda) st Floor, City Mart Complex,

BaramundaBhubaneswar -751003

Vedanta Alluminum Ltd, (Langigarh, Kalahandi)

Baramunda ,ihubaneswar, -751003

Viraj steel & Energy, Gurupali, Sambalpur, Odisha

Visa Steel Ltd. Nagar Industrial Complex, At/Post, Jak

Floor, City, Mart Complex,

Respondents

Name & Address of.the Petitioner:

The Chief .Executive, OREDA, 5-59, Mancheswar Industrial Estate, Bhubaneswar-751010

I

I

1. 'Nature of Complaint:

Non-compliance to OERC (Renewable and Co-generat n Purchase Obligation and its

Compliance) Rf'gulations, 2010

2. Documents on which the petitioner is relying upon:

i. OERC (Renewable and Co-generation Purchase Obligation and its Compliance)

Regulations, 2010 framed under Section 61, 86 (1) (e) and 181 of the

Electricity Act, 2003. (Annexure I)

, ! . ' ii, OPTCL;_etter No 747(3) dated 28.92011 co

Odish~~~.(Annexure II)unicating the list of CGPs in

3

iii. Letter No 3938 dated 19.12.20111 of EObligated Entities in the State. (Annexure III)

I communicating the list of

I

lv, Letters of Chief Engineer (project)- cum- Chief Electrical Inspector•• (Generation) enlisted below communicating the etails ~f self-cons·umption by

obligated entities

a) E. O. P.- 2151 1111757 (WE) IDated.03.09.b) E.D. P.- 215/11/ 1591 -,WE)/ Dated 27.08.

2 (Annexure IV)3 (Annexure V) &

, c) E. D. P.- 215/ 11/ 1495 (WE)I Dated 28.07.2 4 (Annexure VI)

3. Commission's previous order/direction to OREDA,if a ,in the matter:

i. Letter No. 1046 dated 13.06.2011 (Annexu VII)ii. tetterNo. 4593 dated 24.12.2012 (Ann VIII)iii. Letter No. 1083 Dated 01.08.2014 (Annex IX)

4. Communlcation from OREDA to the Hon'ble Commission Regarding RPOCompliance

.,i. Letter No.1 dated 01.01.2013 (Annexureii. Letter No. 2875 dated 05.09.2013 (AnnexureHi. letter No. 1232 dated 21.08.2014 (Annex XII)

5. Communication of OREDAto All obligated entities

I i. Letter No. 743 dated 29.02.2012 (Anneii. Letter No. 2922 dated 22.08.2012Hi. Letter No. 1126 dated 26.03.2013iv. letter No. 300 dated 18.03.2014 (Annex

XIII)re XIV)

6. Is it a continuation of violation/ non-compliance?

Yes

7. A brief background

I

Section 86 of the Electricity Act 2003 which defi es the various functions of the

State Cornmlsslon at 86 1 (e) mandates the sta commissions to promote Co-

generation and generation of electricity from bl fnewa e sources 0 energy by

pr?viding suitable measures for connectivity with id and sale of electricity to any

4

person and alsospeclfv, for purchase of electricity from . ch sources a percentage of

l '

draft. After conducting a public hearing in case No 5 of 2010 OERe finalized the

Renewable and Cogeneration Purchase Obligation an its compliance Regulation -

2010 in its order dated 30.9.2010. The same was blished in the extraordinary

...a draft Renewable and

gulation-2010 in line with

Forum of Regulators (FOR)

ng a pre-publication of the

the totalconsumption of in the area of the distribution ee.

,8. Actions by the ,OERe:

••In compliance to the above mandate the OERCprep

Cogeneration Purchase Obligation and its Compliance

the draft Renewable PurchaseObligation circulated by t

and invited views of all stakeholders on the same by

I

Salient features of the Regulation:

i) The Regulation defined Obligated Entities as Distribution Licensees (or any

• entity procuring power on their behalf) and any other person consuming

electricity generated from conventional ve generating plant having

capacity of 5 MW and above for his 0 use and lor procure from

conventional generation through open access

ii} The regulation also specified the quantum of

"Every Obligated Entity shall purchase not Ie than 5% of its total annual

consumption of energy from co-generation d renewable energy sources

from 2011-12 on words with 0.5 percentage every year thereafter, till

2015-16 or as reviewed by the Commission e

Hi) The regulation further specified the qua equivalent

quantity of Renewable Energy Certificates (R ) to be purchased from solar

Iand non-solar sources and also the

consumed/purchased from cogeneration s

which has been tabulated below:

antum of· power to be

each year till 2015-16

5

· .· .

Quantum of Obligation as Specified by OERe

Minimum .quantum of purchase in percentage ( in terms f energy consumption in state inKWH)

Renewable

•

- Solar Non Solar

2010-11 1.00'

2011-1.2 0.10 1.20

2012 -13 0.15 1.40

2013 -14 O.?O 1.60

2014 -15 0.25 1.80

2015-16 O.3() 2.00I

7.00

-

4.70

4.50

5.00

5.50

6.00

6.50

iv) The regulation inter-alia also dealt with the manner of connectivity with the

of State Agencv ,Compliance Audit, ete.

licensee's system, manner of obtaining Renewable En

v) The Regulation also specified the effect of default as u

certificate, designation

"'f the obligated entity does not fUlfillthe RPOas in these.requlotions during

any year and also does not purchase the certificates, the mission may direst the

.1 obligated entit» to deposit in to a separate fund, to be ted and maintained by

such obligated entity, such amount as the commission m determine on the basis of

shortfall in units of RPO and the forbearance price decided by the Central

ICommission" .

The Effect of default further provided that

"the obligated,~ntity shaHbe in breach of its license can

amount directed by the commission within 15 days

direction"

It further provided that

"where any obligated entity fails to comply with the a

required perce-itaqe of power from renewable

I 6

I

if it fails to deposit the

communication of such

ation to purchase the

s or the renewable

I

••Commission designated

as State Agency for

for registration and

energy certificates, it shall be liablefor penalty as may decided by the commission

under section ~42 of the Act.;;

9. Designation of State Agency

I

••As per regulation 6 (1) of the aforesaid Regulations,

Odisha Renewable energy Development Agency (0

accreditation and recommending the Renewable Energy

to undertake functions under the said Regulations whic also formed a part of the

above gazette, notification.

10. Actions byOREDA

- After being deS;ignatedas the State AgencY,OREDA followrng initiatives: .;

a) It firmed up the list of obligated entities in the stat based on the information

received from GRIDCO,OPTCLand EIC( Elect)-cum-P. I

b) On 13-14 July 2011 letters were issued to all obI ted entities making them

aware of their obligations and requesting them to h the status of fulfillment

of their obligations in a pre-designed format (Annexure I Series).·. ,

c) In order to make the Obligated Entities further awa of the RCPORegulation

2010 and their respective roles and responsibilities wi regard to compliance of

the same; OREDAon za'" 'October 2011 organized a rkshops at Bhubaneswar

The lists of participants of the Workshops are annexed Annexure XVIII. '

I

d) Following the workshop for better and wider informa n of all obligated entities

OREDA posted the RCPOand Its Compliance Regul and other details on its

website and intimated the same through' Public N issued in 5 local News

Papers during February 2012. Photocopy of the publish d item in the Newspaper

is attached as Annexure XIX.

e) OREDA had also requested all the obligated entities de letter ,no. 743 dated

29.02.2012 (Annexure XIII) to designate a senior office of their organization as

nodal officer:(RCPO) and provide their contact details in prescribed format.

7

:.-.-.

f) In view of various developments in between OREDA rganized another workshop

at Bhubaneswar on 11. 09. 2012. The list of pa

annexed as-Annexure XXI.

ants of the Workshops is

, g) . As per the cornmunleation of OERC,OREDA su itted quarterly cornpllanes

report base'Cjon the self declaration for power consu ption by different obligated

entities.

I

h) Basedon the-annual consumption figures reported by EIC(Elect)-cllm.PCEIOREDA

calculated the quantum of solar, non-solar and neration obligations of

different obligated entities and computed the us of fulfillment of their

'\);:,

obligation based on the monthly reports provided

entities as-well' as the monthly trade reports' pro

The trade report from power exchange annexed as An

the respective obligated

by the power exchange.

i) OREDA also intimated the above status indicating

quantum of default in each category and the co

deposited by each entity in to a separate ace

regulation to the OERCseeking necessary direction in

intimations are enclosed in Annexure X,XI & XII.

entity-wise

amount to be

out under the

matter. Copies of such

11. Status of compliance

a) The status of compliance by different obligated

furnished bv OREDAto OERCand also pubJished in

under

No. of Fullycompliant entities compliant "n.:ln •••,

ities as per the reports

website of OREDAare as

entities for the yearFY Total No. of obligated

2011-12 'SO

No. of non- compliantentities

14 36

2012-13 50 17 33

2013-14 : 50 , 15 35

8

I

, ';

It may be mentioned that though adequate solar and non-solar RECswere

available in the power hange (table below) the obligated entitiesdid not care to

take any initiatives to pu ase the same and fulfill their respective obligations.

9

. .~

.F,urther more except

· FY. ,..... .~- '.. .~~

.rotal No of RECs available inthe power exchange

, ••

,~' .~,", "",",,",. ~-'.-"".

· 2011-12t._ . .:., ._.",.

Not Available 1053819

i Solar, . No-solar

I · 2012-13J.. 1 73826. 14646

2013-14 108830 207018

. created a separate

iFFCOno other Obligated Entity has reported to have

nt as per the OERCRCPORegulation 7 (I) and deposited

Iy, calculated on the basis of quantum of shortfall of

respective obligation ultiplied by the forbearance price of the respective REC.

The letter of IFFCOin is regard is enclosed as Annexure XXIII.

I Hindalco Industries l had filed a Writ Petition(C) No. 5243 of 2012 challenging

the RCPO~egulatio Notification dated 30.09.2010 issued by the Odisha

Electricity Regulatory Commission whereby the commission has directed the

captive generation pIa ts to mandatorily purchase renewable energy certificates.

Meanwhile 'the case is still pending at High Court of Odisha. The Hon'ble

Commission in letter n . law/HC-06/2012/4255 dated 18.10.2012 clarified OREDA

that lithe interim 0 er has its application to M/s. Hindalco Industries only.

(Petitioner in the writ application) and has no application to any other industry

(Annexure XXIV)." . ' ..~.'

,:. ,

It may be further

in Sou-Motu Case

oned here that in view of OERC'sOrder dated 13.02.2012

111 of 2011 (Annexure XXV) allowing fulfillment of

n through solar and non-solar sources and the subsequent

INo 54 & 59 of 2012 (Annexure XXVI & XXVII respectively)

stating that "The Commission by the impugned order, in order to remove

difficulties faced by e obligated entities, has clarified that the obligation in

I

I

can be met from solar arid non-solar sources but the

ase obligation has to. be met mandatorily. by the

obligated entities an' consuming electricity only from co-generation sources

10

•. f::-~I. !

•e

shall not relieve any•••

ted entity. When such relaxation has been made, the-followed in respect of consumers meeting electricity

captive co-generation power plant in excess of the

" Which has been contested by the OERe in the apex

court (Civilll.ppeal No 5466 and 5467 of 2013) while the two of the obligated

entities named Emam Paper Mills Ltd and Vedanta Aluminum Ltd. appellant in

the ATE in case No & 59 of 2012 had refrained from fulfilling their obligations

like NALCOhave approached the Hon'ble commission inaltogether while

Case ;~v. 21/2013 to i. them to ue :.imliarly !>ituattcidS Ernaml Paper Mii1sdu' . '.

and Vedanta Alurnin Ltd. and have stopped purchasing RECs. Though the

Hon'ble commission s given an order in case No. 21/2013 dated 21.11.2013

(Annexure XXVIII) s ng that the order of the ATE is applicable only to the

mi Paper Mills Ltd and Vedanta Aluminum Ltd) NALCOapplicant entities (

again resorted to file review petition on the same which has also been heard by

the Hon'ble Commissi in Case No. 09/2014 dated 15.09.2014 was adjourned

(Annexure XXIX) beca the the Counsel for NALCOsubmitted that the latest

judgment of Hon'ble inAppeal No. 53/2012 dated 02.12.2013 in Lloyd Metals

(Annexure XXX) is beyond their knowledge as the Hon'ble

to know whether their claim is justified in view of the

In view of the

above case.

mentioned facts it can be very clearly 'concluded that

have taken some initiatives to partially fulfill their

obligations none of t e other obligated entities have taken any effective step to

fulfill their-robligatio which exhibits is clear contravention and absolute

its compliance Regulation -2010 brought by this

noble intention of promoting cogeneration and

from renewable energy in Odisha in the greater interest

idisregard

Hon'ble

generation 'of

addressing issues like he energy crunch, climate change etc.

:.PRAYER

pleased to •• ••

•

•

In view of the aforernenti ned facts and invoking all the provisions under Effect of

Default the pl11:itionerhum Iyprays that the Hon'ble Commission may graciously be

1) inst all defaulting obligated entities at para 11 and punish

I of the direction of Hon'ble Commission under Section

142 of Electricity Act 2 and levy penalty for an amount Rs.l,oo,ooo.oo to each

of them.

.' I 2) direct the defaulting igated entities as per Annexure - IX to create a separate

accountand deposit e fund in the account as mentioned at Annexure-IX and

give adequate control

from the Power Exchange the required number of

nt of the shortfall in the fulfilment of the obligations, out

of the amount in the nd on behalf of the obligated entities.

. ~.... .....,' ;, .. d

Chief Executive, OREDAof the account so as to operate

the Fund and

3) appoint the complian auditor at the earliest as per the provision of Regulation

(8) of OERe(RCPOan its Compliance) Regulations,201o.

4) action against respondent obligated entities for non-I

the provision of OERC(RCPO)Regulation, zoio.

S) pass such other 0 lorders as this' Hon'ble Commission may deem fit and

proper andfor this a of kindness the Applicant Company shall as in duty boundI ever pray.

6) by the Petitioner is for a public purpose the Commission

may kindly refund fees paid as per Para 5 of Notification dt. 31. 08. 2009.

Place: 8~tt~w'.eac ·/f>·;)O/f1

~For Odisha Renewable Energy Development Agency

Chief Executive

Date:PETITIONER

11

-

BEFORE"THE ISHA ELECTRICITYREGULATORY COMMISSIONiyamal< Bhawan, Unit - VIII, Bhubaneswar

IN THE MATTER OF:

CaseNo. --' 2014

- .. .An application filed Petitioner / OREDAunder Sec. 142 of the Electricity Act, 2003for the non-cornplian eof OERC(Renewable and Co-generation Purchase Obligationand its Compliance) ulations, 2010 framed under Section 61, 66, 86 (1) (e) and181 of the Electricity 2003.

-" "I

IN THE MAnER OF

AND

The Chief Executive, EDA,S-59, Mancheswar Industrial Estate, Bhubaneswar-751010.

I

....•...•..Petitioner

-Vrs.-

ging Director, GRIDCO,Janpath, Bhubaneswar and others

00~l~~~\\~"

0396511-:2t,f57~IMl

I, Mr.w;l1joM 13, lr~,"OREDA; having registered 0

751010 do hereby solemnly

......... Respondents

2 0 OCT 2014"56 years, working as Chief Executive,Mancheswar Industrial Estate, Bhubaneswar-

rm and state as follows: -

..~...-'., "

1. That I am the Chiefon its behalf.

utive, OREDAandl am duly authorized to swear this affidavit

2. The statements made nthe petitioner are based on information and I believe themto be true.

PLACE: 13,.,uh fJt IIJ e S

DATE: z.o ·10· lotlJ.

"I

12

DEPONENT