The power distribution companies will now have to purchase at least three per cent power from renewable energy sources. However, starting financial year 2013, the distribution companies will have to increase their power procurement from three per cent to 10 per cent.

While the New Delhi Power limited (NDPl) has already started producing 1.65 megawatt of power and will be inviting tenders for the same next month, the BSES is in the process of signing an agreement with the municipal waste energy plants. The BSES meanwhile has also written to the Delhi Electricity Regulatory Commission (DERC) to implement the provision from the next financial year.

The DERC has asked all the three discoms to purchase atleast three per cent power from renewable energy sources. The discoms have also been asked to increase their purchase from three per cent to 10 per cent in the next three fiscal years. “The idea is to shift to cleaner fuel. Since coal and natural gas reserves are limited, the move has been taken to encourage discoms to move to efficient fuel,” said the DERC Chairman, PD Sudhakar.

The Tata Power Delhi Distribution Company which supplies power to North Delhi, has set up about 18 solar panel units in various locations across north and north east Delhi and is producing 1.65 megawatt plants. The company will also be inviting tenders next month for procuring cleaner fuel.

Meanwhile, the BSES which supplies power to South and East Delhi has written to the DERC seeking time for making purchases in the renewable sources. “The new provision was made by the DERC after the announcement of tariff order in the month of August last year. As a result there was no provision of the same was made in the Aggregate Revenue Requirement,” said an official of the BSES. The company has now written to the DERC to implement the order from the new financial year after the new tariff order and the AAR is in place.

However the company has now initiated the process of getting into an agreement with the South Delhi Municipal Corporation and the East Delhi Municipal Corporation for purchasing power from the waste to energy plant set up at Okhla and Ghazipur. The two plants will be generating power from the waste lying in the land fill sites. “The Okhla Power Plant that is currently producing 16 megawatt of power is supplying eight megawatts to BRPl. A deal with BSES is awaited after the Ghazipur plant becomes operational,” said the official.

While the power produced from thermal or gas based plant comes at an average cost of `5.50 per unit, the power produced from the renewable source will come at a price of `10 to 16 per unit. “The power generated from renewable sources of energy is expensive for atleast three to four years, since the cost of setting up these units in high. However over the years as the cost gets recovered, the production cost becomes cheaper. Also with the technology becoming cheaper and cost effective the over all cost of producing power through clearer means will be getting cheaper,” added the officer.