The Jharkhand State Electricity Regulatory Commission (JSERC) has confirmed that Bokaro Steel's (BSL), a Steel Authority of India (SAIL) company, cogeneration plants meet the renewable purchase obligations (RPO) due to their environmental benefits, including reduced emissions and fossil fuel conservation. Consequently, the captive power project at Bokaro Steel is recognised for RPO compliance from FY 2013-14 to FY 2020-21. SAIL/BSL had requested exemption from RPO compliance for fiscal years 2013-14 through 2020-21. Bokaro Steel Plant holds a distribution license to supply power in its designated area under Section 14 of the Electricity Act, 2003. According to the JSERC (Renewable Purchase Obligation and Compliance) (1st Amendment) Regulations, 2012, a distribution licensee must fulfill RPO obligations. Currently, Bokaro Steel's power supply comes from two sources: captive generation from BPSCL, a joint venture between SAIL and Damodar Valley Corporation (DVC), and energy imported from DVC. The petitioner also sought recognition of Bokaro Power Supply Company (BPSCL), a 338 MW captive power plant, as a generation power project and exemption for Bokaro Steel from RPO obligations since its captive power project is a cogeneration project. The Commission defined ?cogeneration? as a process that simultaneously produces two or more forms of useful energy, including electricity and heat. This process can involve both fossil and non-fossil fuels. According to Section 86(1)(e) of the Electricity Act, 2003, the Commission is responsible for promoting cogeneration and renewable energy generation.

The Commission acknowledged the details provided by the petitioner regarding steam utilisation for heating, power generation, and fuel savings, which demonstrated the environmental benefits of BSL's cogeneration projects. These projects reduce the emission of harmful pollutants such as carbon monoxide and carbon dioxide, contributing to environmental conservation by minimising the use of conventional fossil fuels.

The Commission concluded that BSL's cogeneration project fulfilled the RPO requirements as specified in the JSERC (Renewable Purchase Obligation and its Compliance) (First Amendment) Regulation, 2012, and the JSERC (Renewable Purchase Obligation and its Compliance) Regulation, 2016. Consequently, the energy generated by the cogeneration plant will count towards the RPO Obligation for FY 2013-14 to FY 2020-21.

Recently, JSERC issued the Jharkhand State Electricity Regulatory Commission (Verification of Captive Generating Plants and Captive Consumers) Regulations, 2024.